Document:

exv10w1

 

Exhibit 10.1

TAX SHARING AGREEMENT

BY AND BETWEEN

HILLENBRAND INDUSTRIES, INC.

AND

BATESVILLE HOLDINGS, INC.

DATED AS OF FEBRUARY 5, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS AND INTERPRETATION	 	 	2	 
	 
	 	Section 1.1	 	Definitions	 	 	2	 
	 
	 	Section 1.2	 	References to Time	 	 	13	 
	 
	 	Section 1.3	 	Effective Time	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II RESPONSIBILITY FOR PAYMENT OF TAXES	 	 	14	 
	 
	 	Section 2.1	 	Income Taxes and Other Taxes	 	 	14	 
	 
	 	Section 2.2	 	Allocation of Taxes	 	 	15	 
	 
	 	Section 2.3	 	Timing of Payments of Taxes	 	 	17	 
	 
	 	Section 2.4	 	Credit or Refund of Estimated Payments by SpinCo	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III PREPARATION AND FILING OF TAX RETURNS	 	 	17	 
	 
	 	Section 3.1	 	Preparation of Returns	 	 	17	 
	 
	 	Section 3.2	 	Procedures Relating to the Preparation and Filing of Tax Returns	 	 	18	 
	 
	 	Section 3.3	 	Tax Information Exchange and Tax Services	 	 	19	 
	 
	 	Section 3.4	 	Reasonable External Costs and Expenses	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV REFUNDS, CARRYBACKS AND AMENDED TAX RETURNS	 	 	20	 
	 
	 	Section 4.1	 	Refunds	 	 	20	 
	 
	 	Section 4.2	 	Carrybacks	 	 	20	 
	 
	 	Section 4.3	 	Amended Tax Returns	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V DISTRIBUTION TAXES	 	 	21	 
	 
	 	Section 5.1	 	Representations	 	 	21	 
	 
	 	Section 5.2	 	Covenants	 	 	22	 
	 
	 	Section 5.3	 	Supplemental Rulings and Restrictions on SpinCo	 	 	24	 
	 
	 	Section 5.4	 	Liability for Undertaking Certain Actions	 	 	25	 
	 
	 	Section 5.5	 	Liability Not Attributable to Fault	 	 	26	 
	 
	 	Section 5.6	 	Cooperation	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI INDEMNIFICATION	 	 	26	 
	 
	 	Section 6.1	 	Indemnification Obligations of RemainCo	 	 	26	 
	 
	 	Section 6.2	 	Indemnification Obligations of SpinCo	 	 	27	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII PAYMENTS	 	 	27	 

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Table of Contents

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 7.1	 	Payments	 	 	27	 
	 
	 	Section 7.2	 	Treatment of Payments made Pursuant to Tax Sharing Agreement	 	 	28	 
	 
	 	Section 7.3	 	Treatment of Payments made Pursuant to Distribution Agreement and Judgment Sharing Agreement	 	 	29	 
	 
	 	Section 7.4	 	Payments Net of Tax Benefit Actually Realized	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII AUDITS	 	 	29	 
	 
	 	Section 8.1	 	Notice	 	 	29	 
	 
	 	Section 8.2	 	Audits	 	 	29	 
	 
	 	Section 8.3	 	Payment of Audit Amounts	 	 	33	 
	 
	 	Section 8.4	 	Correlative Adjustments	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX ALLOCATION OF TAX ATTRIBUTES, DUAL CONSOLIDATED LOSSES AND OTHER TAX MATTERS	 	 	36	 
	 
	 	Section 9.1	 	Allocation of Tax Attributes	 	 	36	 
	 
	 	Section 9.2	 	Third Party Tax Indemnities and Benefits	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE X DEFAULTED AMOUNTS	 	 	36	 
	 
	 	Section 10.1	 	General	 	 	36	 
	 
	 	Section 10.2	 	Subsidiary Funding	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI ARBITRATION; DISPUTE RESOLUTION	 	 	37	 
	 
	 	Section 11.1	 	Agreement to Arbitrate	 	 	37	 
	 
	 	Section 11.2	 	Escalation	 	 	37	 
	 
	 	Section 11.3	 	Demand for Arbitration	 	 	38	 
	 
	 	Section 11.4	 	Arbitrators	 	 	39	 
	 
	 	Section 11.5	 	Hearings	 	 	39	 
	 
	 	Section 11.6	 	Discovery and Certain Other Matters	 	 	40	 
	 
	 	Section 11.7	 	Certain Additional Matters	 	 	40	 
	 
	 	Section 11.8	 	Continuity of Service and Performance	 	 	41	 
	 
	 	Section 11.9	 	Law Governing Arbitration Procedures	 	 	41	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XII MISCELLANEOUS	 	 	41	 
	 
	 	Section 12.1	 	Complete Agreement	 	 	41	 
	 
	 	Section 12.2	 	Other Agreements	 	 	41	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 12.3	 	Expenses	 	 	41	 
	 
	 	Section 12.4	 	Governing Law	 	 	41	 
	 
	 	Section 12.5	 	Notices	 	 	41	 
	 
	 	Section 12.6	 	Amendment and Modification	 	 	42	 
	 
	 	Section 12.7	 	Successors and Assigns: No Third Party Beneficiaries	 	 	42	 
	 
	 	Section 12.8	 	Counterparts	 	 	42	 
	 
	 	Section 12.9	 	Interpretation	 	 	42	 
	 
	 	Section 12.10	 	Legal Enforceability	 	 	42	 
	 
	 	Section 12.11	 	Performance Standard	 	 	43	 
	 
	 	Section 12.12	 	Authority	 	 	43	 
	 
	 	Section 12.13	 	Joint Authorship	 	 	43	 
	 
	 	Section 12.14	 	References; Interpretation	 	 	43	 

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LISTING OF ATTACHMENTS

AND ATTACHED SCHEDULES

	 	 	 
	Schedule 1.1(c)

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

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

	 	List of Qualified Tax Counsel
	 
	 	 
	Schedule 3.1(c)

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

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

	 	Schedule of Illustrative List of Documents
	 
	 	 
	Schedule 8.2(e)(ii)

	 	Illustrative Estimate of Internal Costs
	 
	 	 
	Schedule 8.2(g-1)

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

	 	Activities Requiring Representative Signature
	 
	 	 
	Schedule 9.1

	 	Listing and Allocation of Tax Attributes
	 
	 	 
	Schedule 9.3

	 	Identified Tax Attributes Utilized by SpinCo.

 

 

TAX SHARING AGREEMENT

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

WITNESSETH:

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

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

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

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

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

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

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

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

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

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

ARTICLE I

DEFINITIONS AND INTERPRETATION

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          (ff) “Employee Matters Agreement” means the Employee Matters Agreement dated as of
______, 2008 among RemainCo and SpinCo.

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

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

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

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

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

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

               (ii) a final settlement with the IRS, a closing agreement or accepted offer in compromise
under Sections 7121 or 7122 of the Code, or a comparable agreement under the Laws of other
jurisdictions, which resolves the liability for the Taxes addressed in such agreement for any
taxable period;

               (iii) any allowance of a refund or credit in respect of an overpayment of Tax, but only after
the expiration of all periods during which such refund may be recovered by the jurisdiction
imposing the Tax; or

               (iv) any other final disposition, including by reason of the expiration of the applicable
statute of limitations.

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

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

          (nn) “Income Taxes” mean:

               (i) all Taxes based upon, measured by, or calculated with respect to (i) net income or profits
(including, but not limited to, any capital gains, minimum tax or any Tax on items of tax
preference, but not including sales, use, real, or personal property, gross or net receipts, value
added, excise, leasing, transfer or similar Taxes), or (ii) multiple bases (including, but not
limited to, corporate franchise, doing business and occupation Taxes) if one or more bases upon
which such Tax is determined is described in clause (oo)(i) above;

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

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

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

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

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

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

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

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

          (tt) “Judgment Sharing Agreement” means the Judgment Sharing Agreement dated as of
______ ___, 2008 among RemainCo, SpinCo and Batesville Casket Company, Inc.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          (kkk) “Pre-Distribution Non-Income or Non-U.S. Tax Audit” means any Audit related to
any (a) U.S. federal, state, or local Taxes other than Income Taxes, or (b) any non-U.S. Taxes, in
each case with respect to a Tax Return filed, or allegedly required to be filed, for any
Pre-Distribution Tax Period or Straddle Period; provided, however, this term shall not include any
Audit that is a Pre-Distribution Transfer Pricing Tax Audit, a Pre-Distribution Payroll Tax Audit,
or a Pre-Distribution RemainCo Qualified Plan Tax Audit.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          (yyyy) “Tax” or “Taxes” whether used in the form of a noun or adjective, means
taxes on or measured by income, franchise, gross receipts, sales, use, excise, payroll, personal
property, real property, ad-valorem, value-added, leasing, leasing use or other taxes, levies,
imposts, duties, charges, or withholdings of any nature. Whenever the term “Tax” or “Taxes” is used
it shall include penalties, fines, additions to tax and interest thereon.

          (zzzz) “Tax Attributes” mean for U.S. federal, state, local, and non-U.S. Income Tax
purposes, earnings and profits, tax basis, net operating and capital loss carryovers or carrybacks,
alternative minimum Tax credit carryovers or carrybacks, general business credit

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carryovers or carrybacks, income tax credits or credits against income tax, disqualified
interest and excess limitation carryovers or carrybacks, overall foreign losses, research and
experimentation credit base periods, and all other items that are determined or computed on an
affiliated group basis (as defined in Section 1504(a) of the Code determined without regard to the
exclusion contained in Section 1504(b)(3) of the Code), or similar Tax items determined under
applicable Tax law, including the tax attributes listed on Schedule 9.1.

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

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

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

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

          (bbbbb) “Tax-Free Status” means the qualification of a Distribution or any other
transaction contemplated by the IRS Ruling or any Tax Opinion as a transaction in which gain or
loss is not recognized, in whole or in part, and no amount is included in income, including by
reason of Distribution Taxes, for U.S. federal, state, and local income tax purposes (other than
intercompany items, excess loss accounts or other items required to be taken into account pursuant
to Treasury Regulations promulgated under Section 1502 of the Code).

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

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

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

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

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

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

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

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

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

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

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

     Section 1.3 Effective Time.

          (a) The Parties acknowledge that the Plan of Separation contemplates a series of interrelated
and intermediate internal transactions undertaken preparatory to and in contemplation of the
Distributions that must be completed prior to the Effective Time in order to

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align, reorganize and properly capitalize the Medical Technology Business and the Death Care
Business.

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

ARTICLE II

RESPONSIBILITY FOR PAYMENT OF TAXES

     Section 2.1 Income Taxes and Other Taxes.

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

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

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

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

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

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

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

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

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

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

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

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

     Section 2.2 Allocation of Taxes.

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

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

          (c) Any Income Taxes for a Straddle Period with respect to SpinCo and/or its Affiliates (or
entities in which SpinCo or its Affiliates have an ownership interest) shall, for purposes of this
Agreement, be determined, unless otherwise provided in this Agreement, using a closing of the books
and records of SpinCo and its Affiliates as of the close of business on the Distribution Date,
provided that exemptions, allowances or deductions that are calculated on an annual basis,
and not on a closing of the books method (including, but not limited to, depreciation and
amortization deductions) shall be allocated between the period ending on and including the
Distribution Date and the period beginning after the Distribution Date based on the number of days
for the portion of the Straddle Period ending on and including the Distribution Date, on the one
hand, and the number of days for the portion of the Straddle Period beginning after the
Distribution date, on the other hand. To the extent possible, (a) Other Taxes shall be determined

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by means of a closing of the books and (b) the methodology used to allocate such Taxes for the
Pre-Distribution Tax Periods shall be used to allocate Taxes for Straddle Periods

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

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

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

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

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

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

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

          (k) Any Restructuring Taxes shall be allocated to RemainCo using the RemainCo No Fault
Percentage and to SpinCo using the SpinCo No Fault Percentage and to the extent that any Tax is
included in the definition of Restructuring Taxes and is otherwise allocated differently under this
Section 2.2, the allocation applicable to Restructuring Taxes hereunder shall control to the extent
such Tax or portion thereof is included in the definition of Restructuring Taxes.

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

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

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

Notwithstanding the specific allocations of Taxes set forth above, if there is a conflict between
the above provisions of this Section 2.2 with respect to a Party’s responsibility for Taxes and the
allocation of liability for Taxes that arise upon a Final Determination of an Audit as provided in
Sections 8.3(c) through (f), the provisions of Sections 8.3 (c) through (f) shall control. Except
as expressly provided in this Section 2.2 and Article VIII, SpinCo shall have no liability for
Taxes for periods ending prior to September 30, 2007.

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

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

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overpayment shall be refunded or applied with respect to the other amounts owing under this
Article II.

ARTICLE III

PREPARATION AND FILING OF TAX RETURNS

     Section 3.1 Preparation of Returns.

          (a) RemainCo shall prepare and file:

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

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

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

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

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

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

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

          (b) SpinCo shall prepare and file:

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

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

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

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

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

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

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

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

     Section 3.3 Tax Information Exchange and Tax Services. In connection with each Tax
Return required under this Agreement to be prepared by the Preparing Party designated to prepare
the Tax Return under Section 3.1 after the date hereof, upon the Preparing Party providing written
notice to the other Party who is not the Preparing Party (the “Non-Preparing Party”), the
Non-Preparing Party shall provide the Preparing Party, no later than 90 days after such written
request from Preparing Party, a Tax Package for the purpose of preparing such Tax Return.
Non-Preparing Party shall timely furnish to Preparing Party such additional information and
documents as Preparing Party may reasonably request. The Parties acknowledge that such information
may include materials regarding accounting, accounting records, income and expense, costs and cost
production, background, research and development, comparables, marketing, suppliers and customers,
and other information regarding the business of the Non-Preparing Party related to the Tax
treatment of such business. Upon request by Preparing Party, an appropriate officer of
Non-Preparing Party shall provide written certification that, to such officer’s best knowledge and
belief, all information provided pursuant to this Section 3.3(a) is

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accurate and complete in all material respects. Non-Preparing Party shall also make available
employees and officers of Non-Preparing Party and its Affiliates as Preparing Party may reasonably
request in connection with such Tax Return preparation by Preparing Party. Non-Preparing Party
shall be responsible for the internal costs (without reimbursement from Preparing Party) of
furnishing to Preparing Party the Tax Package, additional information, documents and employees and
officers provided for in this Section 3.3(a). Preparing Party shall provide the relevant
information contained in the Tax Package in the format required by the IRS (or analogous state,
local, or foreign agency) for electronic filing.

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

ARTICLE IV

REFUNDS, CARRYBACKS AND

AMENDED TAX RETURNS

     Section 4.1 Refunds.

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

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

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

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payable by such Party to another Party (or Parties) pursuant to this Section 4.1, such Party
shall be deemed to have actually received a Refund to the extent thereof on the date on which the
overpayment is applied to reduce Taxes otherwise payable.

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

     Section 4.3 Amended Tax Returns.

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

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

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

ARTICLE V

DISTRIBUTION TAXES

     Section 5.1 Representations.

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

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or the Death Care Business, the facts presented and the representations made therein are true,
correct, and complete.

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

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

          (d) Plan or Series of Related Transactions. SpinCo hereby represents and warrants that, to
the knowledge of SpinCo and the management of SpinCo, neither the Restructuring nor the
Distribution are part of a plan (or series of related transactions) pursuant to which a Person will
acquire stock representing a fifty-percent or greater interest (within the meaning of Sections
355(d) and (e) of the Code) in SpinCo or any successor to SpinCo.

     Section 5.2 Covenants.

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

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

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

          (d) Sales Issuances and Redemptions of Equity Securities. Until the first day after the
Restriction Period, neither SpinCo nor any SpinCo Affiliate shall, or shall agree to, sell

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or otherwise issue to any Person, or redeem or otherwise acquire from any Person, any Equity
Securities of SpinCo or any SpinCo Affiliate; provided, however, that (i) SpinCo
may repurchase such Equity Securities to the extent that such repurchases meet the requirements of
Section 4.05(1)(6) of IRS Revenue Procedure 96-30 (as in effect prior to its modification by IRS
Revenue Procedure 2003-48), (ii) SpinCo may issue such Equity Securities to the extent such
issuances satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s
performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an
employer) of Treasury Regulation Section 1.355-7(d), and (iii) SpinCo may issue Equity Securities
provided that such issuance does not, individually or when aggregated with other issuances and any
transactions occurring in the four-year period beginning on the date which is two years before the
Distribution Date, and with any other transaction which is part of a plan or series of related
transactions (within the meaning of Section 355(e) of the Code) that includes the Distribution
(other than issuances of Equity Securities described in clause (ii) above), result in one or more
Persons acquiring, directly or indirectly, (as determined under Section 355(e) of the Code, taking
into account applicable constructive ownership rules) stock representing a 40% or greater interest,
by vote or value, in SpinCo (or any successor thereto).

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

          (f) Dispositions of Assets. Until the first day after the Restriction Period, neither SpinCo
nor any SpinCo Affiliate shall, or shall agree to, sell, transfer, or otherwise dispose of or agree
to dispose of assets (including, for such purpose, any shares of capital stock of a subsidiary and
any transaction treated for tax purposes as a sale, transfer or disposition) that, in the
aggregate, constitute more than 50% of the gross assets of SpinCo, nor shall SpinCo or any SpinCo
Affiliate sell, transfer, or otherwise dispose of or agree to dispose of assets (including, for
such purpose, any shares of capital stock of a subsidiary and any transaction treated for tax
purposes as a sale, transfer or disposition) that, in the aggregate, constitute more than 50% of
the consolidated gross assets of SpinCo Group. The foregoing sentence shall not apply to sales,
transfers, or dispositions of assets in the ordinary course of business. The percentages of gross
assets or consolidated gross assets of SpinCo or SpinCo Group, as the case may be, sold,

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transferred, or otherwise disposed of, shall be based on the fair market value of the gross
assets of SpinCo and the members of SpinCo Group as of the Distribution Date. For purposes of this
Section 5.2(f), a merger of SpinCo or one of its subsidiaries with and into any Person (other than
SpinCo or one of its subsidiaries) shall constitute a disposition of all of the assets of SpinCo or
such subsidiary.

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

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

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

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

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an opinion is satisfactory, RemainCo may consider, among other factors, the appropriateness of
any underlying assumptions and management’s representations if used as a basis for the opinion)
providing that such transaction or action will not affect the Tax-Free Status of the Restructuring
and the Distribution.

     Section 5.3 Supplemental Rulings and Restrictions on SpinCo.

          (a) Supplemental Rulings at RemainCo Request. RemainCo shall have the right to obtain a
Supplemental Ruling in its sole and absolute discretion. If RemainCo determines to obtain a
Supplemental Ruling, SpinCo shall (and shall cause each SpinCo Affiliate to) cooperate with
RemainCo and take any and all actions reasonably requested by RemainCo in connection with obtaining
the Supplemental Ruling (including, without limitation, by making any representation or providing
any materials or information requested by any Tax Authority; provided that SpinCo shall not
be required to make (or cause any SpinCo Affiliate to make) any representation that is inconsistent
with historical facts or as to future matters or events over which it has no control) or to take
any action that reasonably could be expected to be adverse to its business, its financial condition
or its assets. RemainCo shall reimburse SpinCo for all reasonable costs and expenses incurred by
SpinCo or its Affiliates in obtaining a Supplemental Ruling requested by RemainCo within ten (10)
Business Days after receiving an invoice from SpinCo therefor. In connection with obtaining a
Supplemental Ruling pursuant to this Section 5.3(a), (i) RemainCo shall keep SpinCo informed in a
timely manner of all material actions taken or proposed to be taken by RemainCo in connection
therewith; (ii) RemainCo shall (a) reasonably in advance of the submission of any Supplemental
Ruling Request, provide SpinCo with a draft copy thereof, (b) reasonably consider SpinCo ‘s
comments on such draft copy, and (c) provide SpinCo with a final copy of any Supplemental Ruling
Request; and (iii) RemainCo shall provide SpinCo with notice reasonably in advance of, and SpinCo
shall have the right to attend, any formally scheduled meetings with any Taxing Authority (subject
to the approval of the Taxing Authority) that relate to such Supplemental Ruling.

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

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Request, provide SpinCo with a draft copy thereof, (b) reasonably consider SpinCo’s comments
on such draft copy, and (c) provide SpinCo with a final copy of any Supplemental Ruling Request;
and (iii) RemainCo shall provide SpinCo with notice reasonably in advance of, and SpinCo shall have
the right to attend, any formally scheduled meetings with any Tax Authority (subject to the
approval of the Tax Authority) that relate to such Supplemental Ruling.

     Section 5.4 Liability for Undertaking Certain Actions.

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

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

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

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

     Section 5.6 Cooperation.

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

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

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reasonable best efforts to assist SpinCo in obtaining an Unqualified Tax Opinion pursuant to
Section 5.2(j).

ARTICLE VI

INDEMNIFICATION

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

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

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

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

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

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

ARTICLE VII

PAYMENTS

     Section 7.1 Payments.

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

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

               (ii) Payments Equal to or Greater than $500,000. If such payments are individually or in the
aggregate equal to or greater than $500,000, the Indemnified Party shall deliver written notice of
the payment to the Indemnifying Party in accordance with Section 12.5

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

          (b) Procedural Matters. The written notice delivered to the Indemnifying Party in accordance
with Section 12.5 shall show the amount due and owing together with a schedule calculating in
reasonable detail such amount (and shall include any relevant Tax Return, statement, bill or
invoice related to Taxes, costs, expenses or other amounts due and owing). All payments required to
be made by one Party to another Party pursuant to this Section 7.1 shall be made by electronic,
same day wire transfer. Payments shall be deemed made when received. If the Indemnifying Party
fails to make a payment to the Indemnified Party within the time period set forth in this Section
7.1, such Indemnifying Party shall not be considered to be in breach of its covenants and
obligations established in this Section 7.1 unless and until such failure exists on the date on
which the obligation giving rise to the indemnification payment must be satisfied;
provided, however, that the Indemnifying Party shall pay to the Indemnified Party
(i) interest that accrues (at a rate equal to the Base Rate plus 200 basis points) on the amount of
such payment from the time that such payment was due to the Indemnified Party until the date that
payment is actually made to the Indemnified Party; and (ii) any costs or expenses, including any
breakage costs, incurred by the Indemnified Party to secure such payment or to satisfy the
Indemnifying Party’s portion of the obligation giving rise to the indemnification payment.

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

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

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

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

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

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

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

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

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

ARTICLE VIII

AUDITS

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

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     Section 8.2 Audits.

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

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

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

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

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

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

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

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Control or Bankruptcy, choose to litigate any issue with respect to an Audit or make any
decision to change the forum or jurisdiction with respect to which an issue arising under an Audit
is being litigated, without the prior written consent of all of the Parties.

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

               (i) Each Party that would be responsible under Section 8.3 for Taxes resulting from an Audit
(other than the Audit Control Party) (a “Participating Party”) shall have limited participation
rights as set forth in this Section 8.2(c) with respect to such Audit. Promptly after the
Distributions, the Audit Control Party shall arrange for a meeting or conference call that includes
all of the Participating Parties to discuss the status of all ongoing Audits. In addition, promptly
after notification of an Audit pursuant to Section 8.1, the Audit Control Party shall arrange for a
meeting or conference call that includes all of the Participating Parties to plan for the
management of such Audit. Thereafter, the Parties shall arrange for a meeting or conference call to
be held on a monthly basis (or on such other basis as the Parties may agree) in order to facilitate
regular communication on the status of the Audits. These meetings shall be scheduled at the
beginning of each fiscal year and shall not be rescheduled without the consent of all of the
Parties. The Parties may determine from time to time to have a separate special meeting to discuss
a significant Audit issue. Each Participating Party shall identify any personnel and external
advisors who are participating in each of the meetings described above, and shall provide a list of
the names of such persons to the Audit Control Party in advance of such meeting.

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

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

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               (iv) Each Participating Party shall have access to any written documentation in the possession
of the Audit Control Party that pertains to the Audit (including any written summaries of issues
that the Audit Control Party has developed in the context of evaluating the financial reporting of
the Audit) and the Audit Control Party shall make such information available in the offices of the
Audit Control Party; provided, however, that if documentation was prepared solely
by or on behalf of a Party, then the documentation must relate to issues with respect to which the
Participating Party may have liability for Taxes. Such access shall be provided at such times and
in such manner as the Parties agree, but no less frequently than monthly. Copies of the
documentation will be made available to the Participating Parties at their sole cost and expense.
The Audit Control Party shall undertake to use reasonable efforts to include within the written
documentation described above information that is transmitted through electronic means, such as
through internet e-mail. Subject to the exceptions listed on Schedule 8.2(c)(iv-1), the Audit
Control Party shall maintain an internet-based or other electronic document repository system for
written documentation related to the Audit, and each of the Participating Parties shall be granted,
if so requested, “read only” access to such repository system at such requesting Party’s own cost
and expense. Such system shall be managed and controlled by the Audit Control Party and all
decisions with respect to the system (including but not limited to the documents to be posted to
such system) shall be made by the Audit Control Party in its sole discretion; provided, however,
that the Audit Control Party shall at a minimum post documents related to such Audits consistent
with the U.S. Audit Control Party’s document posting practices immediately prior to the
Distribution Date in respect to the U.S. federal Income Tax Audits of RemainCo’s, and SpinCo’s
Subsidiaries. An illustrative, but not exclusive, list of the documents and other information to be
made available by the Audit Control Party to the Participating Parties is set forth in Schedule
8.2(c)(iv-2).

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

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

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          (d) Change in Audit Control Party.

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

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

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

          (e) External and Internal Costs and Expenses. Each Party shall bear the internal and external
costs and expenses incurred by it or any of its Affiliates related to Pre-Distribution U.S. Income
Tax Audits, Qualified Plan Tax Audits, Pre-Distribution Payroll Tax Audits, and Pre-Distribution
Transfer Pricing Tax Audits.

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

     Section 8.3 Payment of Audit Amounts.

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

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

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

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

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

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

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Party or its Affiliate whose business operations resulted in the foreign Tax that is the
subject of the Audit.

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

          (h) Payment Procedures. In connection with any Audit that results in an amount to be paid
pursuant to Section 8.3(a), (b), (c), (d), (e) and (f), the Audit Control Party shall, within
thirty (30) Business Days following a final resolution of such Audit, submit in writing to the
other Party a preliminary determination (calculated and explained in detail reasonably sufficient
to enable the Party to fully understand the basis for such determination and to permit such Party
and its Affiliates to satisfy their financial reporting requirements) of the portion of such amount
to be paid by each Party pursuant to Section 8.3(a), (b), (c), (d), (e) and (f), as applicable.
Each of the Parties and its Affiliates shall have access to all data and information necessary to
calculate such amounts and the Parties and their Affiliates shall cooperate fully in the
determination of such amounts. Within twenty (20) Business Days following the receipt by a Party of
the information described in this Section 8.3(h), such Party shall have the right to object only to
the calculation of the amount of the payment (but not the basis for the payment) by written notice
to the other Parties; such written notice shall contain such disputed item or items and the basis
for its objection. If no Party objects by proper written notice to the other Parties within the
time period described in this Section 8.3(h), the calculation of the amounts due and owing from
each Party shall be deemed to have been accepted and agreed upon, and final and conclusive, for
purposes of this Section 8.3(h). If any Party objects by proper written notice to the other Parties
within such time period, the Parties shall act in good faith to resolve any such dispute as
promptly as practicable in accordance with Article XI. The Party or its Affiliate responsible for
paying to the applicable Taxing Authority under applicable Law amounts owed pursuant to a Final
Determination shall make such payments to such Taxing Authority prior to the due date for such
payments. The other Parties shall reimburse the paying Party in accordance with Article VII and
Section 7.1 for the portion of such payments for which such other Parties are liable pursuant to
this Section 8.3. The time periods specified above for submitting a preliminary determination and
objecting may be shortened to a time period determined by the Parties if these Parties ascertain
that such shortened time period is necessary to meet the Audit obligations of the Parties and their
Affiliates.

          (i) Advance Payment of Taxes. In the event that the Audit Control Party decides to contest
the position of a Taxing Authority taken with respect to a Pre-Distribution U.S. Income Tax Audit,
a Pre-Distribution Qualified Plan Tax Audit, a Pre-Distribution Payroll Tax Audit, or a
Pre-Distribution Transfer Pricing Tax Audit in a forum or jurisdiction that requires the prepayment
or deposit of the Taxes (or security for the Taxes) in order to contest the Taxes determined by the
Taxing Authority to be due and payable, each of the other Parties must pay to the Audit Control
Party its portion of such prepayment determined in accordance with this Section 8.3; provided,
however, if any Party’s portion of such prepayment exceeds $250,000, the Parties shall only be
obligated to pay their portions of such prepayment if the Parties vote in favor of the Audit
Control Party’s decision as to choice of forum or jurisdiction. Each of the Parties

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shall deliver its written vote to the Audit Control Party within ten (10) days of its receipt
of written notice of the Audit Control Party’s decision as to choice of forum or jurisdiction and
the amount of the required prepayment. A recoupment of all or a portion of a prepayment of Taxes
resulting from a Final Determination shall be paid to the Party or Parties that contributed to such
prepayment, in proportion to such contributions. No Party shall be liable to any other Party in the
event that a Final Determination does not allow for the recovery of all or a portion of a
prepayment.

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

ARTICLE IX

ALLOCATION OF TAX ATTRIBUTES AND

OTHER TAX MATTERS

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

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

ARTICLE X

DEFAULTED AMOUNTS

     Section 10.1 General. In the event that one or more Parties defaults on its
obligation to pay Distribution Taxes for which it is liable pursuant to Article V to another Party,
then each non-defaulting Party shall be required to pay an equal portion of such Distribution Taxes
to such

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

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

ARTICLE XI

ARBITRATION; DISPUTE RESOLUTION

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

     Section 11.2 Escalation.

          (a) Expeditious Resolution. It is the intent of the Parties to use their respective
commercially reasonable efforts to resolve expeditiously any dispute, controversy or claim between
them with respect to the matters covered by this Agreement that may arise from time to time on a
mutually acceptable negotiated basis. In furtherance of the foregoing, any Party involved in a
dispute, controversy or claim may deliver a notice (an “Escalation Notice”) demanding an in-person
meeting involving representatives of the Parties at a senior level of

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management (or if the Parties agree, of the appropriate business function or division within
such entity). A copy of any such Escalation Notice shall be delivered addressed to the General
Counsel, or like chief legal officer or official, of each Party involved in the dispute,
controversy or claim (which copy shall state that it is an Escalation Notice pursuant to this
Agreement). Any agenda, location or procedure for such discussions or negotiations between the
Parties may be established by agreement of the Parties from time to time; provided, however, that
the Parties shall use their commercially reasonable efforts to meet within 20 days of the
Escalation Notice.

          (b) Good Faith Negotiations. Following delivery of an Escalation Notice, the Parties
shall undertake good faith, diligent efforts to negotiate a commercially reasonable resolution of
the dispute, controversy or claim. The Parties may, by mutual consent, retain a mediator to aid the
Parties in their discussions and negotiations. Any opinion expressed by the mediator shall be
strictly advisory and shall not be binding on the Parties, nor shall any opinion expressed by the
mediator be admissible in any arbitration proceedings. The mediator may be chosen from a list of
mediators selected by the Parties or by other agreement of the Parties. All third-party costs of
the mediation shall be borne equally by the Parties involved in the matter, and each Party shall be
responsible for its own expenses. Mediation is not a prerequisite to an Arbitration Demand Notice
under Section 11.3.

     Section 11.3 Demand for Arbitration.

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

          (b) Limitation Periods. Any Arbitration Demand Notice may be given until the date
that is two years after the later of the occurrence of the act or event giving rise to the
underlying claim or the date on which such act or event was, or should have been, in the exercise
of reasonable due diligence, discovered by the Party asserting the claim (as applicable and as it
may in a particular case be specifically extended by the Parties in writing, the “Applicable
Deadline”). Any discussions, negotiations or mediations between the Parties pursuant to this

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Agreement or otherwise will not toll the Applicable Deadline unless expressly agreed in
writing by the Parties. Each of the Parties agrees on behalf of itself and each member of its Group
that if an Arbitration Demand Notice with respect to a dispute, controversy or claim is not given
prior to the occurrence of the Applicable Deadline, as between or among the Parties and the members
of their Groups, such dispute, controversy or claim will be barred. Subject to Section 11.9, upon
delivery of an Arbitration Demand Notice pursuant to Section 11.3(a) prior to the Applicable
Deadline, the dispute, controversy or claim, and all substantive and procedural issues related
thereto, shall be decided by a three member panel of arbitrators in accordance with this Article
XI.

     Section 11.4 Arbitrators.

          (a) Selection. The Party delivering the Arbitration Demand Notice shall notify the
American Arbitration Association (“AAA”) and the other Party in writing describing in reasonable
detail the nature of the dispute. Within 20 days of the date of the Arbitration Demand Notice,
each Party to the dispute shall select one arbitrator from the members of a panel of arbitrators of
the AAA. The selected arbitrators shall then jointly select a third arbitrator from the members of
a panel of arbitrators of the AAA, and such third arbitrator shall be disinterested with respect to
each of the Parties and shall be experienced in complex commercial arbitration. In the event that
the Parties’ selected arbitrators are unable to agree on the selection of the third arbitrator, the
AAA shall select the third arbitrator, within 45 days of the date of the Arbitration Demand Notice.
In the event that any arbitrator is unable to serve, his replacement will be selected in the same
manner as the arbitrator to be replaced. The vote of two of the three arbitrators shall be required
for any decision under this Article XI.

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

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

     Section 11.5 Hearings. Within the time period specified in Section 11.4(b), the
matter shall be presented to the arbitrators at a hearing by means of written submissions of
memoranda and verified witness statements, filed simultaneously, and responses, if necessary in the
judgment of the arbitrators or both of the Parties. If the arbitrators deem it to be essential to a
fair resolution of the dispute, live cross-examination or direct examination may be permitted, but
is not generally contemplated to be necessary. The arbitrators shall actively manage the
arbitration with a view to achieving a just, speedy and cost-effective resolution of the dispute,
claim or controversy. The arbitrators may, in their discretion, set time and other limits on the
presentation of each Party’s case, its memoranda or other submissions, and may refuse to receive
any proffered evidence, which the arbitrators, in their discretion, find to be cumulative,
unnecessary, irrelevant

-39-

 

or of low probative nature. Any arbitration hereunder shall be conducted in accordance with
the Commercial Arbitration Rules of the AAA (“Rules”) in effect on the date the Arbitration Demand
Notice is served. The decision of the arbitrators will be final and binding on the Parties, and
judgment thereon may be had and will be enforceable in any court having jurisdiction over the
Parties. Arbitration awards will bear interest at the Base Rate plus 2% per annum, subject to any
maximum amount permitted by applicable law. To the extent that the provisions of this Agreement and
the prevailing Rules conflict, the provisions of this Agreement shall govern.

     Section 11.6 Discovery and Certain Other Matters.

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

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

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

-40-

 

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

     Section 11.7 Certain Additional Matters.

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

          (b) Confidentiality of Proceedings. Except as required by law, the Parties shall
hold, and shall cause their respective officers, directors, employees, agents and other
representatives to hold, the existence, content and result of mediation or arbitration in
confidence in accordance with the provisions of this Section 11.7(b) and except as may be required
in order to enforce any award. Each of the Parties shall request that any mediator or arbitrator
comply with such confidentiality requirement.

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

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

ARTICLE XII

MISCELLANEOUS

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

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

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

-41-

 

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

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

	 	 	 
	If to RemainCo:

	 	Hillenbrand Industries, Inc.

1069 State Route 46 East

Batesville, IN 47006-8835

c/o Corporate Secretary

Fax #:

E-mail Address:
	 
	 	 
	If to SpinCo:

	 	Batesville Holdings, Inc.

One Batesville Boulevard

Batesville, IN 47006-8835

c/o General Counsel
	 
	 	 
	 

	 	Fax #:
	 
	 	 
	 

	 	E-mail Address:

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

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

     Section 12.7 Successors and Assigns: No Third Party Beneficiaries. This Agreement is
made and shall be binding on and inure solely to the benefit of the RemainCo Group and the SpinCo
Group and their respective successors or permitted assigns and does not otherwise confer any rights
or defenses on any other Person. Neither RemainCo nor SpinCo may assign any of its rights or
obligations under this Agreement to another Person without the consent of the other Party to this
Agreement, which consent may be withheld for any reason or no reason. Subject to the foregoing,
(a) this Agreement and all the terms and provisions hereof shall be binding upon and inure to the
benefit of the Parties to this Agreement and their respective successors and

-42-

 

permitted assigns, and (b) each Party to this Agreement shall require any Person or Persons
that, as a result of any merger, purchase of assets, reorganization or other transaction, acquires
or succeeds to all or substantially all of its business or assets to assume its obligations under
this Agreement pursuant to a written assumption agreement in form and substance reasonably
satisfactory to the other Party.

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

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

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

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

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

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

     Section 12.14 References; Interpretation.

          (a) Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in
the Distribution Agreement. References in this Agreement to any gender include references to all
genders, and references to the singular include references to the plural

-43-

 

and vice versa. Unless the context otherwise requires, the words “include”, “includes”, and
“including” when used in this Agreement shall be deemed to be followed by the phrase “without
limitation”. Unless the context otherwise requires, references in this Agreement to Articles,
Sections and Schedules shall be deemed references to Articles and Sections of, and Schedules to,
this Agreement. Unless the context otherwise requires, the words “hereof’, “hereby”, and “herein”
and words of similar meaning when used in this Agreement refer to this Agreement in its entirety
and not to any particular Article, Section or provision of this Agreement.

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

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

	 	 	 	 	 
	 	HILLENBRAND INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Peter H. Soderberg 	 
	 	 	Title:  	President and Chief Executive
Officer 	 
	 
	 	BATESVILLE HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Kenneth A. Camp 	 
	 	 	Title:  	President and Chief Executive
Officer 	 

-44-

 

	 	 	 	 	 

Schedule 1.1(c)

Adjustments that Form Part of the Adjusted Allocation Method

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

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

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

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

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

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

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

-1-exv10w2

 

Exhibit 10.2

EMPLOYEE MATTERS AGREEMENT

BY AND BETWEEN

HILLENBRAND INDUSTRIES, INC.,

AND

BATESVILLE HOLDINGS, INC.

DATED AS OF ________________ ___, 2008

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE 1.
	DEFINITIONS
	 	1.1	 	 	General

	 	 	1	 
	 	1.2	 	 	References; Interpretation

	 	 	8	 
	ARTICLE 2.
	GENERAL PRINCIPLES
	 	2.1	 	 	Assumption and Retention of Liabilities; Related Assets

	 	 	8	 
	 	2.2	 	 	SpinCo Participation in RemainCo Benefit Plans

	 	 	9	 
	 	2.3	 	 	Comparable Compensation and Benefits

	 	 	9	 
	 	2.4	 	 	Service Recognition

	 	 	10	 
	 	2.5	 	 	Approval by RemainCo As Sole Stockholder

	 	 	10	 
	 	2.6	 	 	Transfer of Assets

	 	 	10	 
	ARTICLE 3.
	QUALIFIED DEFINED BENEFIT PLANS
	 	3.1	 	 	Establishment of SpinCo Plan

	 	 	10	 
	 	3.2	 	 	SpinCo Pension Plan Participants

	 	 	11	 
	ARTICLE 4.
	QUALIFIED DEFINED CONTRIBUTION PLANS
	 	4.1	 	 	RemainCo Savings Plan; SpinCo Savings Plan

	 	 	14	 
	 	4.2	 	 	RemainCo Sales Executives Plan; SpinCo Sales Executives Plan

	 	 	15	 
	ARTICLE 5.
	HEALTH AND WELFARE PLANS
	 	5.1	 	 	Health And Welfare Plans

	 	 	16	 
	 	5.2	 	 	Reimbursement Account Plan

	 	 	20	 
	 	5.3	 	 	Retiree Medical Coverage

	 	 	20	 
	 	5.4	 	 	Time-Off Benefits

	 	 	21	 
	ARTICLE 6.
	SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
	 	6.1	 	 	SpinCo Supplemental Pension Plan

	 	 	21	 
	 	6.2	 	 	SpinCo Board of Directors’ Deferred Compensation Plan

	 	 	22	 
	 	6.3	 	 	SpinCo Executive Deferred Compensation Program

	 	 	22	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE 7.
	LONG-TERM INCENTIVE AWARDS
	 	7.1	 	 	Treatment of Outstanding RemainCo Options

	 	 	23	 
	 	7.2	 	 	Treatment of Outstanding RemainCo Deferred Stock Awards

	 	 	26	 
	 	7.3	 	 	Cooperation

	 	 	28	 
	 	7.4	 	 	SEC Registration

	 	 	28	 
	 	7.5	 	 	Savings Clause

	 	 	28	 
	ARTICLE 8.
	ADDITIONAL COMPENSATION MATTERS; SEVERANCE
	 	8.1	 	 	Annual Incentive Awards

	 	 	29	 
	 	8.2	 	 	Individual Arrangements

	 	 	29	 
	 	8.3	 	 	Severance Plans

	 	 	30	 
	 	8.4	 	 	Workers’ Compensation Liabilities

	 	 	30	 
	 	8.5	 	 	Sections 162(m)/409A

	 	 	31	 
	 	8.6	 	 	Director Fees

	 	 	31	 
	ARTICLE 9.
	INDEMNIFICATION
	 	9.1	 	 	General Indemnification

	 	 	31	 
	ARTICLE 10.
	GENERAL AND ADMINISTRATIVE
	 	10.1	 	 	Separate Plans

	 	 	31	 
	 	10.2	 	 	Sharing Of Information

	 	 	32	 
	 	10.3	 	 	Reasonable Efforts/Cooperation

	 	 	32	 
	 	10.4	 	 	Employer Rights

	 	 	32	 
	 	10.5	 	 	Effect on Employment

	 	 	32	 
	 	10.6	 	 	Consent Of Third Parties

	 	 	32	 
	 	10.7	 	 	Access To Employees

	 	 	32	 
	 	10.8	 	 	Beneficiary Designation/Release Of Information/Right 

To Reimbursement

	 	 	33	 
	 	10.9	 	 	Not A Change In Control

	 	 	33	 
	ARTICLE 11.
	MISCELLANEOUS
	 	11.1	 	 	Effect If Distribution Does Not Occur

	 	 	33	 
	 	11.2	 	 	Relationship Of Parties

	 	 	33	 

-ii-

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	11.3	 	 	Affiliates

	 	 	33	 
	 	11.4	 	 	Notices

	 	 	33	 
	 	11.5	 	 	Entire Agreement

	 	 	34	 
	 	11.6	 	 	Waivers

	 	 	34	 
	 	11.7	 	 	Amendments

	 	 	34	 
	 	11.8	 	 	Termination, Etc

	 	 	34	 
	 	11.9	 	 	Governing Law

	 	 	34	 
	 	11.10	 	 	Dispute Resolution

	 	 	35	 
	 	11.11	 	 	Titles and Headings

	 	 	35	 
	 	11.12	 	 	Counterparts

	 	 	35	 
	 	11.13	 	 	Assignment

	 	 	35	 
	 	11.14	 	 	Severability

	 	 	35	 
	 	11.15	 	 	Successors and Assigns

	 	 	36	 
	 	11.16	 	 	Exhibits

	 	 	36	 
	 	11.17	 	 	Specific Performance

	 	 	36	 
	 	11.18	 	 	Waiver of Jury Trial

	 	 	36	 
	 	11.19	 	 	Force Majeure

	 	 	36	 
	 	11.20	 	 	Authorization

	 	 	36	 
	 	11.21	 	 	No Third-Party Beneficiaries

	 	 	37	 
	 	11.22	 	 	Construction

	 	 	37	 

-iii-

 

EMPLOYEE MATTERS AGREEMENT 

     This EMPLOYEE MATTERS AGREEMENT (the “Agreement”) is entered into by and between
Hillenbrand Industries, Inc., an Indiana corporation (“RemainCo”), and Batesville Holdings,
Inc., an Indiana corporation (“SpinCo”), each a “Party” and together, the
“Parties.”

WITNESSETH:

     WHEREAS, the Board of Directors of RemainCo has determined that it is in the best interests of
RemainCo to distribute its entire ownership interest in SpinCo through a pro-rata distribution of
all of the outstanding shares of SpinCo common stock then owned by RemainCo to the holders of
RemainCo common stock (the “Distribution”); and

     WHEREAS, to effect the Distribution the Parties entered into that certain Distribution
Agreement dated as of ___, 2008 (as amended or otherwise modified from time to time, the
“Distribution Agreement”); and

     WHEREAS, RemainCo and SpinCo desire to enter into this Agreement for the purpose of allocating
assets, liabilities and responsibilities with respect to certain employee compensation and benefit
plans and programs between them.

     NOW, THEREFORE, in consideration of the foregoing premises, the mutual promises and covenants
hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

ARTICLE 1.

DEFINITIONS

     1.1 General. Capitalized terms used, but not defined herein shall have the meanings
assigned to such terms in the Distribution Agreement and the following terms shall have the
following meanings:

     “Agreement” shall have the meaning ascribed thereto in the preamble to this Agreement.

     “Benefit Plan” shall mean, with respect to an entity, each plan, program, arrangement,
agreement or commitment that is an employment, consulting, non-competition or deferred compensation
agreement, or an executive compensation, incentive bonus or other bonus, employee pension,
profit-sharing, savings, retirement, supplemental retirement, stock option, stock purchase, stock
appreciation rights, restricted stock, other equity-based compensation, severance pay, salary
continuation, life, health, hospitalization, sick leave, vacation pay, disability or accident
insurance plan, workers compensation, corporate-owned or key-man life insurance or other employee
benefit plan, program, arrangement, agreement or commitment, including any “employee benefit plan”
(as defined in Section 3(3) of ERISA), sponsored or maintained by such entity (or to which such
entity contributes or is required to contribute).

 

 

     “COBRA” shall mean the continuation coverage requirements for “group health plans”
under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and as
codified in Code Section 4980B and Sections 601 through 608 of ERISA, together with all regulations
and proposed regulations promulgated thereunder.

     “Distribution Agreement” shall have the meaning ascribed thereto in the preamble to
this Agreement.

     “Distribution Date” shall mean the date in which RemainCo distributes its entire
ownership interest in SpinCo through a pro-rata distribution of all of the outstanding shares of
SpinCo common stock then owned by RemainCo to the holders of RemainCo common stock.

     “DOL” shall mean the U.S. Department of Labor.

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

     “ERISA Affiliate” shall mean with respect to any Person, each business or entity which
is a member of a “controlled group of corporations,” under “common control” or a member of an
“affiliated service group” with such Person within the meaning of Sections 414(b), (c) or (m) of
the Code, or required to be aggregated with such Person under Section 414(o) of the Code, or under
“common control” with such Person within the meaning of Section 4001(a)(14) of ERISA.

     “Estimated Pension Plan Transfer Amount” shall have the meaning ascribed thereto in
Section 3.2(b)(ii) of this Agreement.

     “Final Pension Plan Transfer Amount” shall have the meaning ascribed thereto in
Section 3.2(b)(iv) of this Agreement.

     “Final Transfer Date” shall have the meaning ascribed thereto in Section 3.2(b)(v) of
this Agreement.

     “Force Majeure” shall mean an act of God, civil or military authority, an act of
public enemy, war, accident, explosion, earthquake, flood, failure of transportation, strike or
other work interruption by either party’s employees, or any other similar cause beyond the
reasonable control of either party.

     “Former RemainCo Employee” shall mean, as of the Distribution Date, any former
employee of RemainCo or a Subsidiary of RemainCo, including individuals to whom long-term
disability benefits are being paid under a RemainCo Benefit Plan and retired, deferred vested,
nonvested and other terminated individuals, whose most recent active employment with RemainCo or a
Subsidiary of RemainCo was employment by Hill-Rom, Inc. or a Subsidiary of Hill-Rom, Inc. and whose
active employment with RemainCo or a Subsidiary of RemainCo has ended on or before the Distribution
Date.

     “Former SpinCo Employee” shall mean, as of the Distribution Date, any former employee
of RemainCo or a Subsidiary of RemainCo, including individuals to whom long-term disability
benefits are being paid under a RemainCo Benefit Plan and retired, deferred vested,

-2-

 

nonvested and other terminated individuals, whose active employment with RemainCo or a
Subsidiary of RemainCo has ended on or before the Distribution Date, other than a Former RemainCo
Employee.

     “HIPAA” shall mean the Health Insurance Portability and Accountability Act of 1996, as
amended.

     “Initial Cash Transfer” shall have the meaning ascribed thereto in Section 3.2(b)(iii)
of this Agreement.

     “Initial Cash Transfer Date” shall have the meaning ascribed thereto in Section
3.2(b)(iii) of this Agreement.

     “Initial Transfer Amount” shall have the meaning ascribed thereto in Section
3.2(b)(iii) of this Agreement.

     “IRS” shall mean the U.S. Internal Revenue Service.

     “NYSE” shall mean the New York Stock Exchange, Inc.

     “Participating Company” shall mean RemainCo or any Person (other than an individual)
participating in a RemainCo Benefit Plan.

     “Parties” shall have the meaning ascribed thereto in the preamble to this Agreement.

     “Plan Assets” shall mean the assets of the RemainCo Pension Plan allocable to pay the
benefits accrued by SpinCo Pension Plan Participants as of the Distribution Date.

     “Post-Distribution RemainCo Option” shall have the meaning ascribed thereto in Section
7.1(c) of this Agreement.

     “RemainCo” shall have the meaning ascribed thereto in the preamble to this Agreement.

     “RemainCo 1996 Stock Plan” shall mean the Hillenbrand Industries, Inc. 1996 Stock
Option Plan.

     “RemainCo Actuary” shall mean an independent actuary selected by RemainCo.

     “RemainCo Benefit Plan” shall mean any Benefit Plan sponsored, maintained or
contributed to by any member of the RemainCo Group or any ERISA Affiliate thereof immediately
following the Distribution Date.

     “RemainCo Board of Directors’ Deferred Compensation Plan” shall mean the Hillenbrand
Industries, Inc. Board of Directors’ Deferred Compensation Plan.

     “RemainCo Committee” shall mean the Compensation and Management Development Committee
of RemainCo.

-3-

 

     “RemainCo Deferred Stock” shall mean the number of shares in an individual’s RemainCo
Deferred Stock Account, representing the RemainCo common stock the individual would have a right to
receive in accordance with the terms of a RemainCo Deferred Stock Award.

     “RemainCo Deferred Stock Account” shall mean the account established for an individual
in connection with a RemainCo Deferred Stock Award.

     “RemainCo Deferred Stock Award” shall mean (i) a deferred stock award (commonly
referred to as a restricted stock unit) granted by RemainCo pursuant to the RemainCo Stock Plan, or
(ii) any other right pursuant to a RemainCo Benefit Plan, representing a general unsecured promise
by RemainCo to deliver shares of RemainCo common stock.

     “RemainCo Employee” shall mean any individual who, immediately following the
Distribution Date, remains employed by or will be employed by RemainCo or any member of the
RemainCo Group, including active employees and employees on vacation and approved leave of absence
(including maternity, paternity, family, sick leave, qualified military service under the Uniformed
Services Employment and Reemployment Rights Act of 1994, and leave under the Family Medical Leave
Act and other approved leaves).

     “RemainCo Executive Deferred Compensation Program” shall mean the Hillenbrand
Industries, Inc. Executive Deferred Compensation Program.

     “RemainCo Group” shall mean RemainCo and the Subsidiaries of RemainCo other than
members of the SpinCo Group.

     “RemainCo Option” shall mean an option to purchase shares of RemainCo common stock
granted pursuant to the RemainCo Stock Plan or the RemainCo 1996 Stock Plan.

     “RemainCo Participant” shall mean any individual who, immediately following the
Distribution Date, is a RemainCo Employee, a Former RemainCo Employee, or a beneficiary, dependent
or alternate payee of a RemainCo Employee or Former RemainCo Employee.

     “RemainCo Pension Plan” shall mean the Hillenbrand Industries Pension Plan.

     “RemainCo Pension Trust” shall mean the trust which is part of the RemainCo Pension
Plan.

     “RemainCo Post-Distribution Stock Value” shall mean the RemainCo Pre-Distribution
Stock Value less the SpinCo Stock Value.

     “RemainCo Pre-Distribution Stock Value” shall mean the official NYSE closing price per
share of RemainCo common stock on the Distribution Date trading “with due bills.”

     “RemainCo Price Ratio” shall mean the quotient obtained by dividing the RemainCo
Post-Distribution Stock Value by the RemainCo Pre-Distribution Stock Value.

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     “RemainCo Reimbursement Account Plan” shall have the meaning ascribed thereto in
Section 5.2 of this Agreement.

     “RemainCo Retained Claim” shall have the meaning ascribed thereto in Section 8.4(a) of
this Agreement.

     “RemainCo Retiree Medical Plan” shall have the meaning ascribed thereto in Section 5.3
of this Agreement.

     “RemainCo Sales Executives Plan” shall mean the Hillenbrand Industries, Inc. Sales
Executives’ Pension Plan.

     “RemainCo Sales Executives Trust” shall mean the trust which is part of the RemainCo
Sales Executives Plan.

     “RemainCo Savings Plan” shall mean the Hillenbrand Industries Savings Plan.

     “RemainCo Savings Trust” shall mean the trust which is part of the RemainCo Savings
Plan.

     “RemainCo SERP” shall mean the Hillenbrand Industries, Inc. Supplemental Executive
Retirement Plan.

     “RemainCo Severance Plan” shall mean the plan maintained by a member of the RemainCo
Group to provide severance benefits.

     “RemainCo Share Ratio” shall mean the quotient obtained by dividing the RemainCo
Pre-Distribution Stock Value by the RemainCo Post-Distribution Stock Value.

     “RemainCo Stock Plan” shall mean the Hillenbrand Industries, Inc. Stock Incentive
Plan.

     “RemainCo Welfare Plans” shall have the meaning ascribed thereto in Section 5.1(a) of
this Agreement.

     “Remaining RemainCo Option” shall have the meaning ascribed thereto in Section 7.1(a)
of this Agreement.

     “Revised Pension Plan Transfer Amount” shall have the meaning ascribed thereto in
Section 3.2(b)(iv) hereof.

     “SpinCo” shall have the meaning ascribed thereto in the preamble to this Agreement.

     “SpinCo Actuary” shall mean an independent actuary selected by SpinCo.

     “SpinCo Benefit Plan” shall mean any Benefit Plan sponsored, maintained or contributed
to by any member of the SpinCo Group or any ERISA Affiliate thereof immediately following the
Distribution Date.

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     “SpinCo Board of Directors’ Deferred Compensation Plan” shall have the meaning
ascribed thereto in Section 6.2(a) of this Agreement.

     “SpinCo Committee” shall mean the Compensation and Management Development Committee of
SpinCo.

     “SpinCo Deferred Stock Award” shall mean a deferred stock award (commonly referred to
as a restricted stock unit) granted by SpinCo pursuant to the SpinCo Stock Plan representing a
general unsecured promise by SpinCo to deliver shares of SpinCo common stock, which award is issued
as part of the adjustment to RemainCo Deferred Stock Awards in connection with the Distribution.

     “SpinCo Directors” shall have the meaning ascribed thereto in Section 6.2(a) of this
Agreement.

     “SpinCo Employee” shall mean any individual who, immediately following the
Distribution Date, is employed by or will be employed by SpinCo or any member of the SpinCo Group,
including active employees and employees on vacation and approved leave of absence (including
maternity, paternity, family, sick leave, qualified military service under the Uniformed Services
Employment and Reemployment Rights Act of 1994, and leave under the Family Medical Leave Act and
other approved leaves).

     “SpinCo Executive Deferred Compensation Program” shall have the meaning ascribed
thereto in Section 6.3(a) of this Agreement.

     “SpinCo Group” shall mean SpinCo and the SpinCo Subsidiaries.

     “SpinCo Option” shall have the meaning ascribed thereto in Section 7.1(b) of this
Agreement.

     “SpinCo Participant” shall mean an individual who, immediately following the
Distribution Date, is a SpinCo Employee, a Former SpinCo Employee, or a beneficiary, dependent or
alternate payee of a SpinCo Employee or a Former SpinCo Employee.

     “SpinCo Pension Plan” shall have the meaning ascribed thereto in Section 3.1 of this
Agreement.

     “SpinCo Pension Plan Participants” shall have the meaning ascribed thereto in Section
3.1 of this Agreement.

     “SpinCo Pension Trust” shall mean the trust which is part of the SpinCo Pension Plan.

     “SpinCo Price Ratio” shall mean the quotient obtained by dividing the SpinCo Stock
Value by the RemainCo Pre-Distribution Stock Value.

     “SpinCo Reimbursement Account Plan” shall have the meaning ascribed thereto in Section
5.2 of this Agreement.

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     “SpinCo Retiree Medical Plan” shall have the meaning ascribed thereto in Section 5.3
of this Agreement.

     “SpinCo Retiree Medical Plan Participants” shall have the meaning ascribed thereto in
Section 5.3 of this Agreement.

     “SpinCo Sales Executives Plan” shall have the meaning ascribed thereto in Section
4.2(a) of this Agreement.

     “SpinCo Sales Executives Plan Assets” shall have the meaning ascribed thereto in
Section 4.2(b) of this Agreement.

     “SpinCo Sales Executives Plan Participants” shall have the meaning ascribed thereto in
Section 4.2(a) of this Agreement.

     “SpinCo Sales Executives Trust” shall mean the trust which is part of the SpinCo Sales
Executives Plan.

     “SpinCo Savings Plan” shall have the meaning ascribed thereto in Section 4.1(a) of
this Agreement.

     “SpinCo Savings Plan Assets” shall have the meaning ascribed thereto in Section 4.1(b)
of this Agreement.

     “SpinCo Savings Plan Participants” shall have the meaning ascribed thereto in Section
4.1(a) of this Agreement.

     “SpinCo Savings Trust” shall mean the trust which is part of the SpinCo Savings Plan.

     “SpinCo SERP” shall have the meaning ascribed thereto in Section 6.1(a) of this
Agreement.

     “SpinCo Severance Plan” shall have the meaning ascribed thereto in Section 8.3(a) of
this Agreement.

     “SpinCo Share Ratio” shall mean the quotient obtained by dividing the RemainCo
Pre-Distribution Stock Value by the SpinCo Stock Value.

     “SpinCo Stock Plan” shall have the meaning ascribed thereto in Section 2.5 of this
Agreement.

     “SpinCo Stock Value” shall mean the official NYSE closing price per share of SpinCo
common stock on the Distribution Date trading on a “when issued” basis.

     “SpinCo Welfare Plans” shall have the meaning ascribed thereto in Section 5.1(a) of
this Agreement.

     “Transferred RemainCo Participant” shall have the meaning ascribed thereto in Section
5.1(b)(i) of this Agreement.

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     “Transferred SpinCo Participant” shall have the meaning ascribed thereto in Section
5.1(b)(ii) of this Agreement.

     “True-Up Amount” shall have the meaning ascribed thereto in Section 3.2(b)(v) of this
Agreement.

     “U.S.” shall mean the United States of America.

     1.2 References; Interpretation. References in this Agreement to any gender include
references to all genders, and references to the singular include references to the plural and vice
versa. Unless the context otherwise requires, the words “include,” “includes” and “including” when
used in this Agreement shall be deemed to be followed by the phrase “without limitation.” Unless
the context otherwise requires, references in this Agreement to Articles, Sections and Exhibits
shall be deemed references to Articles and Sections of, and Exhibits to, this Agreement. Unless the
context otherwise requires, the words “hereof,” “hereby” and “herein” and words of similar meaning
when used in this Agreement refer to this Agreement in its entirety and not to any particular
Article, Section or provision of this Agreement.

ARTICLE 2.

GENERAL PRINCIPLES

     2.1 Assumption and Retention of Liabilities; Related Assets.

          (a) As of the Distribution Date, except as otherwise expressly provided for in this Agreement,
RemainCo shall, or shall cause one or more members of the RemainCo Group to, assume or retain and
RemainCo hereby agrees to pay, perform, fulfill and discharge, in due course in full (i) all
liabilities under all RemainCo Benefit Plans, (ii) all liabilities (excluding liabilities incurred
under a Benefit Plan except as otherwise provided in this Agreement) with respect to the
employment, service, termination of employment or termination of service of all RemainCo Employees
and Former RemainCo Employees and their dependents and beneficiaries (and any alternate payees in
respect thereof) and other service providers (including any individual who is, or was, an
independent contractor, temporary employee, temporary service worker, consultant, freelancer,
agency employee, leased employee, on-call worker, incidental worker, or non-payroll worker of any
member of the RemainCo Group or in any other employment, non-employment, or retainer arrangement,
or relationship with any member of the RemainCo Group or whose employment or service is or was
otherwise primarily associated with the RemainCo Business (as defined in the Distribution
Agreement)), in each case to the extent arising in connection with or as a result of employment
with or the performance of services for any member of the RemainCo Group or SpinCo Group, and (iii)
any other liabilities or obligations expressly assigned to RemainCo or any of its affiliates under
this Agreement.

          (b) As of the Distribution Date, except as otherwise expressly provided for in this Agreement,
SpinCo shall, or shall cause one or more members of the SpinCo Group to, assume or retain and
SpinCo hereby agrees to pay, perform, fulfill and discharge, in due course in full (i) all
liabilities under all SpinCo Benefit Plans, (ii) all liabilities (excluding liabilities incurred
under a Benefit Plan except as otherwise provided in this Agreement) with respect to

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the employment, service, termination of employment or termination of service of all SpinCo
Employees and Former SpinCo Employees and their dependents and beneficiaries (and any alternate
payees in respect thereof) and other service providers (including any individual who is, or was, an
independent contractor, temporary employee, temporary service worker, consultant, freelancer,
agency employee, leased employee, on-call worker, incidental worker, or non-payroll worker of any
member of the SpinCo Group or in any other employment, non-employment, or retainer arrangement, or
relationship with any member of the SpinCo Group or whose employment or service is or was otherwise
primarily associated with the SpinCo Business (as defined in the Distribution Agreement)), in each
case to the extent arising in connection with or as a result of employment with or the performance
of services for any member of the RemainCo Group or SpinCo Group, and (iii) any other liabilities
or obligations expressly assigned to SpinCo or any of its affiliates under this Agreement.

          (c) From time to time after the Distribution, SpinCo shall promptly reimburse RemainCo, upon
RemainCo’s reasonable request and the presentation by RemainCo of such substantiating documentation
as SpinCo shall reasonably request, for the cost of any obligations or liabilities satisfied or
assumed by RemainCo or its affiliates that are, or that have been made pursuant to this Agreement,
the responsibility of SpinCo or any of its affiliates.

          (d) From time to time after the Distribution, RemainCo shall promptly reimburse SpinCo, upon
SpinCo’s reasonable request and the presentation by SpinCo of such substantiating documentation as
RemainCo shall reasonably request, for the cost of any obligations or liabilities satisfied or
assumed by SpinCo or its affiliates that are, or that have been made pursuant to this Agreement,
the responsibility of RemainCo or its affiliates.

     2.2 SpinCo Participation in RemainCo Benefit Plans. Except as otherwise expressly
provided for in this Agreement or as otherwise expressly agreed to in writing between the Parties,
(i) effective as of the Distribution Date, SpinCo and each member of the SpinCo Group shall cease
to be a Participating Company in any RemainCo Benefit Plan, and (ii) each SpinCo Participant and
any other service providers of SpinCo or any member of the SpinCo Group (including any individual
who is, or was, an independent contractor, temporary employee, temporary service worker,
consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker, or
nonpayroll worker of any member of the SpinCo Group or in any other employment, non-employment, or
retainer arrangement, or relationship with any member of the SpinCo Group), effective as of the
Distribution Date, shall cease to participate in, be covered by, accrue benefits under, be eligible
to contribute to or have any rights under any RemainCo Benefit Plan, and RemainCo and SpinCo shall
take all necessary action to effectuate each such cessation.

     2.3 Comparable Compensation and Benefits. Except as otherwise expressly provided for
in this Agreement or as agreed to by RemainCo, and subject to Section 10.4, SpinCo (acting directly
or through its affiliates) initially intends to provide SpinCo Employees with compensation
opportunities (including salary, wages, commissions and bonus opportunities) and employee benefits
that are generally comparable, in the aggregate, to the compensation opportunities and employee
benefits to which such SpinCo Employees were entitled to immediately prior to the Distribution
Date.

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     2.4 Service Recognition. Except as provided below, (a) SpinCo shall give each SpinCo
Participant full credit for purposes of eligibility, vesting, determination of level of benefits,
and, to the extent applicable, benefit accruals under any SpinCo Benefit Plan for such SpinCo
Participant’s service with any member of the RemainCo Group prior to the Distribution Date to the
same extent such service was recognized by the applicable RemainCo Benefit Plans immediately prior
to the Distribution Date, and (b) RemainCo shall give each RemainCo Participant full credit for
purposes of eligibility, vesting, determination of level of benefits, and, to the extent
applicable, benefit accruals under any RemainCo Benefit Plan for such RemainCo Participant’s
service with any member of the SpinCo Group prior to the Distribution Date to the same extent such
service was recognized by the applicable SpinCo Benefit Plans immediately prior to the Distribution
Date; provided, however, that such service shall not be recognized to the extent
that such recognition would result in the duplication of benefits under a RemainCo Benefit Plan and
a SpinCo Benefit Plan. Notwithstanding the foregoing, unless the Parties otherwise agree in
writing, (a) if a RemainCo Participant becomes employed by a member of the SpinCo Group after the
Distribution Date, then, except to the extent required by applicable law, such individual’s service
with the RemainCo Group will not be recognized for any purpose under any SpinCo Benefit Plan, and
(b) if a SpinCo Participant becomes employed by a member of the RemainCo Group after the
Distribution Date, then, except to the extent required by applicable law, such individual’s service
with the SpinCo Group will not be recognized for any purpose under any RemainCo Benefit Plan.
Nothing herein shall limit RemainCo or SpinCo or their respective affiliates from recognizing
service in addition to the recognition of service required hereunder, but any such additional
service shall not be recognized for purposes of Section 2.6 of this Agreement.

     2.5 Approval by RemainCo As Sole Stockholder. Effective as of the Distribution Date,
SpinCo shall have (a) adopted the Hillenbrand, Inc. Stock Incentive Plan (the “SpinCo Stock
Plan”) which shall permit the issuance of long-term equity-based incentive awards that have
material terms and conditions substantially similar to those long-term incentive awards issued
under the RemainCo Stock Plan that are to be substituted with SpinCo long-term incentive awards in
connection with the Distribution, and (b) filed and caused to be effective any and all registration
statements and other reports or filings required to register shares for issuance under such plan,
including, without limitation, by way of conversion or substitution pursuant to Article VII of this
Agreement. The SpinCo Stock Plan shall be approved prior to the Distribution by RemainCo as
SpinCo’s sole shareholder.

     2.6 Transfer of Assets. Assets, if any, attributable to the liabilities referenced in
the preceding provisions of this Article II shall be allocated (if applicable) as provided in the
remaining provisions of this Agreement.

ARTICLE 3.

QUALIFIED DEFINED BENEFIT PLANS

     3.1 Establishment of SpinCo Plan. Effective as of the Distribution Date, SpinCo
shall, or shall have caused one or more members of the SpinCo Group to, establish a defined benefit
pension plan and related trust to provide retirement benefits to SpinCo Participants who
immediately prior to the Distribution Date were participants in, or entitled to present or future

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benefits (except as provided in Section 3.2(d) of this Agreement, whether or not vested)
under, the RemainCo Pension Plan (such defined benefit pension plan, the “SpinCo Pension
Plan” and such SpinCo Participants, the “SpinCo Pension Plan Participants”). SpinCo
shall be responsible for taking all necessary, reasonable, and appropriate action to establish,
maintain and administer the SpinCo Pension Plan so that it is qualified under Section 401(a) of the
Code and that the related trust thereunder is exempt under Section 501(a) of the Code.
Notwithstanding the foregoing, until the Initial Cash Transfer Date, all benefits payable to SpinCo
Pension Plan Participants (including benefits that have accrued under the SpinCo Pension Plan
following the Distribution Date) shall be paid on behalf of the SpinCo Pension Plan from the
RemainCo Pension Trust, and following the Initial Cash Transfer Date, all benefits payable to
SpinCo Pension Plan Participants (including benefits that have accrued under the RemainCo Pension
Plan) shall be paid from the SpinCo Pension Trust. SpinCo (acting directly or through one or more
members of the SpinCo Group) shall be responsible for any and all liabilities (including liability
for funding) and other obligations with respect to the SpinCo Pension Plan.

     3.2 SpinCo Pension Plan Participants.

          (a) Assumption of RemainCo Pension Plan Liabilities. Subject to the Plan Asset
transfer described in Section 3.2(b), SpinCo (acting directly or through a member of the SpinCo
Group) hereby agrees to cause the SpinCo Pension Plan effective as of the Distribution Date to
assume, fully perform, pay and discharge, all liabilities under the RemainCo Pension Plan relating
to all SpinCo Pension Plan Participants as of the Distribution Date (inclusive of benefits paid by
the RemainCo Pension Plan to SpinCo Pension Plan Participants following the Distribution Date, but
prior to the date of the Initial Cash Transfer in accordance with Section 3.1).

          (b) Transfer of RemainCo Pension Plan Assets.

          (i) The Parties agree that the Plan Assets and any related earnings or losses shall be
determined and transferred to the SpinCo Pension Trust in accordance with Section 414(l) of
the Code, Treasury Regulation Section 1.414(l)-1, Section 208 of ERISA and the assumptions
and valuation methodology which the Pension Benefit Guaranty Corporation would have used
under Section 4044 of ERISA as of the Distribution Date as set forth in Exhibit A to
this Agreement. Any surplus assets under the RemainCo Pension Plan (i.e., any assets held
under the RemainCo Pension Plan that are in excess of the assets required to be allocated to
the RemainCo Pension Plan and the SpinCo Pension Plan in accordance with the preceding
sentence) shall be transferred to the SpinCo Pension Trust in the same proportion as the
other assets of the RemainCo Pension Trust are transferred to the SpinCo Pension Trust in
accordance with the succeeding provisions of this subsection (b)). No later than thirty (30)
days prior to the Initial Cash Transfer Date, RemainCo and SpinCo (acting directly or
through their respective affiliates) shall, to the extent necessary, file an IRS Form 5310-A
regarding the transfer of assets and liabilities from the RemainCo Pension Plan to the
SpinCo Pension Plan.

          (ii) Prior to the Distribution Date (or such later time as mutually agreed by the
Parties), RemainCo shall cause the RemainCo Actuary to determine the

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estimated value, as of the Distribution Date, of the Plan Assets to be transferred
pursuant to Section 3.2(b)(i) of this Agreement to the SpinCo Pension Trust (the
“Estimated Pension Plan Transfer Amount”).

          (iii) Not later than ninety (90) Business Days following the Distribution Date (or such
later time as mutually agreed by the Parties), RemainCo and SpinCo (each acting directly or
through their respective affiliates) shall cooperate in good faith to cause an initial
transfer of Plan Assets (the date of such transfer, the “Initial Cash Transfer
Date”) from the RemainCo Pension Trust to the SpinCo Pension Trust in an amount equal to
ninety percent (90%) of the Estimated Pension Plan Transfer Amount (the “Initial Cash
Transfer,” and such amount, the “Initial Transfer Amount”). RemainCo shall
satisfy its obligation pursuant to this Section 3.2(b)(iii) by causing the RemainCo Pension
Trust to transfer Plan Assets in kind to the extent practicable equal to the Initial
Transfer Amount consisting of a pro rata percentage of all investments under the RemainCo
Pension Plan and to transfer the balance of the Initial Transfer Amount in cash.

          (iv) Within one hundred eighty (180) days (or such later time as mutually agreed by the
Parties) following the Distribution Date, RemainCo shall cause the RemainCo Actuary to
provide SpinCo with a revised calculation of the value, as of the Distribution Date, of the
Plan Assets to be transferred to the SpinCo Pension Trust determined in accordance with the
assumptions and valuation methodology set forth on Exhibit A attached hereto (the
“Revised Pension Plan Transfer Amount”). Upon written notice to RemainCo, which must
be given within thirty (30) days after SpinCo receives the Revised Pension Plan Transfer
Amount from the RemainCo Actuary, SpinCo may submit, at its sole cost and expense, the
Revised Pension Plan Transfer Amount to the SpinCo Actuary for verification; provided, that
such verification process and any calculation performed by the SpinCo Actuary in connection
therewith shall be performed solely on the basis of the assumptions and valuation
methodology set forth on Exhibit A to this Agreement. In order to perform such
verification, upon request from SpinCo, the SpinCo Actuary will receive the data and
additional detailed methodology used to calculate the Initial Transfer Amount and the
Revised Pension Plan Transfer Amount (if reasonably needed) from the RemainCo Actuary.
SpinCo will be responsible for the cost and expense of the SpinCo Actuary and RemainCo will
be responsible for the cost and expense for the RemainCo Actuary for such data transfer. In
the event the SpinCo Actuary determines that the value, as of the Distribution Date, of the
Plan Assets to be transferred to the SpinCo Pension Plan differs from the Revised Pension
Plan Transfer Amount, the SpinCo Actuary shall identify in writing to the RemainCo Actuary
all objections to the determination within sixty (60) days (or such longer period as
mutually agreed by the Parties) following provision of the calculation of the Revised
Pension Plan Transfer Amount to SpinCo pursuant to the first sentence of this paragraph
(iv), and the SpinCo Actuary and RemainCo Actuary shall use good faith efforts to reconcile
any such difference. If the SpinCo Actuary and the RemainCo Actuary fail to reconcile such
difference, the SpinCo Actuary and the RemainCo Actuary shall jointly designate a third,
independent actuary whose calculation of the value, as of the Distribution Date, of the Plan
Assets to be transferred to the SpinCo Pension Trust shall be final and binding; provided,
that such calculation must be performed within sixty (60) days (or such longer

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period as mutually agreed by the Parties) following designation of such third actuary
and in accordance with the assumptions and valuation methodology set forth on Exhibit
A to this Agreement; and provided, further, that such value shall be between the value
determined by the SpinCo Actuary and the Revised Pension Plan Transfer Amount or equal to
either such value. RemainCo and SpinCo shall each pay one-half of the costs incurred in
connection with the retention of such independent actuary. If (i) within thirty (30) days
after SpinCo receives the Revised Pension Plan Transfer Amount from the RemainCo Actuary,
SpinCo has not given RemainCo written notice that SpinCo is submitting the Revised Pension
Plan Transfer Amount to the SpinCo Actuary for verification, or (ii) the SpinCo Actuary does
not identify in writing to the RemainCo Actuary any objections to the determination of the
Revised Pension Plan Transfer Amount within the time period described above, the Revised
Pension Plan Transfer Amount shall be deemed to have been approved by SpinCo, and such
amount shall be deemed to be the Final Pension Plan Transfer Amount (as defined below) and
to have been determined as of the last day of the period during which the condition set
forth in (i) or (ii) above that has not been satisfied could have been satisfied. The final,
verified value, as of the Distribution Date, of the Plan Assets to be transferred to the
SpinCo Pension Trust as determined in accordance with this Section 3.2(b)(iv) shall be
referred to herein as the “Final Pension Plan Transfer Amount.”

          (v) Within forty-five (45) days (or such later time as mutually agreed by the Parties)
following the determination of the Final Pension Plan Transfer Amount, RemainCo shall cause
the RemainCo Pension Trust to transfer to the SpinCo Pension Trust (the date of such
transfer, the “Final Transfer Date”) an amount equal to (A) the Final Pension Plan
Transfer Amount minus (B) the Initial Transfer Amount minus (C) any amounts that the
RemainCo plan paid with respect to SpinCo participants after the Distribution Date and prior
to the Initial Cash Transfer as described in Article 3.1 (such difference, as adjusted to
reflect earnings or losses as described below, the “True-Up Amount”);
provided, that, in the event the True-Up Amount is negative, RemainCo shall
not be required to cause any such additional transfer and instead SpinCo shall be required
to cause a transfer of cash, cash-like securities or other cash equivalents (or, if
determined by RemainCo in its discretion, assets in kind) from the SpinCo Pension Trust to
the RemainCo Pension Trust in amount equal to the True-Up Amount. The Parties acknowledge
that the RemainCo Pension Trust’s transfer of the True-Up Amount to the SpinCo Pension Trust
shall be in full settlement and satisfaction of the obligations of RemainCo to cause the
transfer of, and the RemainCo Pension Trust to transfer, Plan Assets to the SpinCo Pension
Plan pursuant to this Section 3.2(b)(v). The True-Up Amount shall be paid from the RemainCo
Pension Trust to the SpinCo Pension Trust, as determined by RemainCo in its discretion in
kind, in cash, cash-like securities or other cash equivalents, and shall be adjusted to
reflect earnings or losses during the period from the Distribution Date to the Final
Transfer Date. Such earnings or losses shall be determined based on the actual rate of
return of the RemainCo Pension Plan for the period commencing on the Distribution Date and
ending on the last calendar day of the month ending immediately prior to the Final Transfer
Date. Earnings or losses for the period from such last day of the month to the Final
Transfer Date shall be based on the actual rate of return of the RemainCo Pension Plan
during the last calendar month ending immediately prior to the Final Transfer Date
determined as of the date that is as close as

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administratively practicable to the Final Transfer Date. In the event that SpinCo is
obligated to cause the SpinCo Pension Trust to reimburse the RemainCo Pension Trust pursuant
to this Section 3.2(b)(v), such reimbursement shall be performed in accordance with the same
principles set forth herein with respect to the payment of the True-Up Amount. The Parties
acknowledge that the SpinCo Pension Trust’s transfer of such reimbursement amount to the
RemainCo Pension Trust shall be in full settlement and satisfaction of the obligations of
SpinCo to cause the transfer of, and the SpinCo Pension Trust to transfer, assets to the
RemainCo Pension Trust pursuant to this Section 3.2(b)(v).

          (c) Continuation of Elections. Effective as of the Distribution Date, SpinCo (acting
directly or through a member of the SpinCo Group) shall cause the SpinCo Pension Plan to recognize
and maintain all existing elections, including, but not limited to, beneficiary designations,
payment form elections and rights of alternate payees under qualified domestic relations orders
with respect to SpinCo Pension Plan Participants under the RemainCo Pension Plan.

          (d) Terminated Non-Vested Employees. Notwithstanding anything herein to the contrary,
the RemainCo Pension Plan will retain all liabilities (if any) earned under the RemainCo Pension
Plan in respect of any Former RemainCo Employee, and the SpinCo Pension plan will assume and retain
all liabilities (if any) earned under the RemainCo Pension Plan in respect of any Former SpinCo
Employee.

ARTICLE 4.

QUALIFIED DEFINED CONTRIBUTION PLANS

     4.1 RemainCo Savings Plan; SpinCo Savings Plan.

          (a) Establishment of the SpinCo Savings Plan. Effective as of the Distribution Date,
SpinCo shall, or shall have caused one or more members of the SpinCo Group to, establish a defined
contribution plan and related trust for the benefit of SpinCo Participants who immediately prior to
the Distribution Date were participants in, or entitled to present or future benefits under, the
RemainCo Savings Plan (such defined contribution plan, the “SpinCo Savings Plan” and such
SpinCo Participants, the “SpinCo Savings Plan Participants”). SpinCo shall be responsible
for taking all necessary, reasonable and appropriate action to establish, maintain and administer
the SpinCo Savings Plan so that it is qualified under Section 401(a) of the Code and that the
related trust thereunder is exempt under Section 501(a) of the Code. SpinCo (acting directly or
through one or more members of the SpinCo Group) shall be responsible for any and all liabilities
and other obligations with respect to the SpinCo Savings Plan.

          (b) Transfer of RemainCo Savings Plan Assets. Not later than thirty (30) days
following the Distribution Date (or such later time as mutually agreed by the Parties), RemainCo
shall cause the trustee for the RemainCo Savings Trust to transfer in-kind the assets underlying
the account balances (including any unvested balances, outstanding loan balances and forfeitures)
held in the RemainCo Savings Trust for the SpinCo Savings Plan Participants (the “SpinCo
Savings Plan Assets”) to the SpinCo Savings Trust, and SpinCo shall cause the SpinCo

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Savings Trust to accept the transfer of the SpinCo Savings Plan Assets. Effective as of the
date of such transfer, SpinCo shall assume and fully perform, pay and discharge, all obligations of
the RemainCo Savings Plan relating to the accounts of SpinCo Savings Plan Participants (to the
extent the assets related to those accounts are actually transferred from the RemainCo Savings
Trust to the SpinCo Savings Trust). The transfer of assets shall be conducted in accordance with
Section 414(l) of the Code, Treasury Regulation Section 1.414(1)-1, and Section 208 of ERISA.

          (c) Continuation of Elections. Effective as of the Distribution Date, SpinCo (acting
directly or through one or more members of the SpinCo Group) shall cause the SpinCo Savings Plan to
recognize and maintain all existing elections, including, but not limited to, deferral, investment,
and payment form elections, beneficiary designations, and the rights of alternate payees under
qualified domestic relations orders with respect to SpinCo Savings Plan Participants under the
RemainCo Savings Plan, to the extent such election or designation is available under the SpinCo
Savings Plan.

          (d) Form 5310-A. No later than thirty (30) days prior to the date of the transfer of
assets as contemplated under Section 4.1(b), RemainCo and SpinCo (each acting directly or through
their respective affiliates) shall, to the extent necessary, file IRS Form 5310-A regarding the
transfer of assets and liabilities from the RemainCo Savings Plan to the SpinCo Savings Plan as
discussed in this Article IV.

          (e) Contributions as of the Distribution Date. All contributions payable to the
RemainCo Savings Plan with respect to employee and employer contributions for SpinCo Savings Plan
Participants through the Distribution Date, determined in accordance with the terms and provisions
of the RemainCo Savings Plan, ERISA and the Code, shall be paid to the RemainCo Savings Plan prior
to the date of the asset transfer described in Section 4.1(b) of this Agreement.

     4.2 RemainCo Sales Executives Plan; SpinCo Sales Executives Plan.

          (a) Establishment of the SpinCo Sales Executives Plan. Effective as of the
Distribution Date, SpinCo shall, or shall have caused one or more members of the SpinCo Group to,
establish a defined contribution plan and related trust for the benefit of SpinCo Participants who
immediately prior to the Distribution Date were participants in, or entitled to present or future
benefits under, the RemainCo Sales Executives Plan (such defined contribution plan, the “SpinCo
Sales Executives Plan” and such SpinCo Participants, the “SpinCo Sales Executives Plan
Participants”). SpinCo shall be responsible for taking all necessary, reasonable and
appropriate action to establish, maintain and administer the SpinCo Sales Executives Plan so that
it is qualified under Section 401(a) of the Code and that the related trust thereunder is exempt
under Section 501(a) of the Code. SpinCo (acting directly or through one or more members of the
SpinCo Group) shall be responsible for any and all liabilities and other obligations with respect
to the SpinCo Sales Executives Plan.

          (b) Transfer of RemainCo Sales Executives Plan Assets. Not later than thirty (30)
days following the Distribution Date (or such later time as mutually agreed by the Parties),
RemainCo shall cause the trustee for the RemainCo Sales Executives Trust to transfer in-kind the
assets underlying the account balances (including any unvested balances, outstanding loan

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balances and forfeitures) held in the RemainCo Sales Executives Trust for the SpinCo Sales
Executives Plan Participants (the “SpinCo Sales Executives Plan Assets”) to the SpinCo
Sales Executives Trust, and SpinCo shall cause the SpinCo Sales Executives Trust to accept the
transfer of the SpinCo Sales Executives Plan Assets. Effective as of the date of such transfer,
SpinCo shall assume and fully perform, pay and discharge, all obligations of the RemainCo Sales
Executives Plan relating to the accounts of SpinCo Sales Executives Plan Participants (to the
extent the assets related to those accounts are actually transferred from the RemainCo Sales
Executives Trust to the SpinCo Sales Executives Trust). The transfer of assets shall be conducted
in accordance with Section 414(l) of the Code, Treasury Regulation Section 1.414(1)-1, and Section
208 of ERISA.

          (c) Continuation of Elections. Effective as of the Distribution Date, SpinCo (acting
directly or through one or more members of the SpinCo Group) shall cause the SpinCo Sales
Executives Plan to recognize and maintain all existing elections, including, but not limited to,
investment and payment form elections, beneficiary designations, and the rights of alternate payees
under qualified domestic relations orders with respect to SpinCo Sales Executives Plan Participants
under the RemainCo Sales Executives Plan, to the extent such election or designation is available
under the SpinCo Sales Executives Plan.

          (d) Form 5310-A. No later than thirty (30) days prior to the date of the transfer of
assets as contemplated under Section 4.2(b), RemainCo and SpinCo (each acting directly or through
their respective affiliates) shall, to the extent necessary, file IRS Form 5310-A regarding the
transfer of assets and liabilities from the RemainCo Sales Executives Plan to the SpinCo Sales
Executives Plan as discussed in this Article IV.

ARTICLE 5.

HEALTH AND WELFARE PLANS

     5.1 Health And Welfare Plans.

          (a) Establishment of the SpinCo Welfare Plans. Prior to January 1, 2008, RemainCo
maintained each of the health and welfare plans set forth on Exhibit B attached hereto
(collectively, the “RemainCo Welfare Plans” and individually, a “RemainCo Welfare
Plan”) for the benefit of eligible RemainCo Participants and SpinCo Participants. Effective as
of January 1, 2008, SpinCo adopted, for the benefit of eligible employees of members of the SpinCo
Group, health and welfare plans, the terms of which are substantially comparable, in the aggregate,
to the applicable terms of the RemainCo Welfare Plans as in effect immediately prior to January 1,
2008 (collectively, the “SpinCo Welfare Plans” and individually, a “SpinCo Welfare
Plan”).

          (b) Terms of Participation in RemainCo Welfare Plans and SpinCo Welfare Plans.

          (i) RemainCo Welfare Plans. With respect to any individual who, on or after
January 1, 2008 and prior to the Distribution Date, transfers employment from the SpinCo
Group to the RemainCo Group and who is listed on Exhibit C, (each such individual a
“Transferred RemainCo Participant”), RemainCo (acting directly or through

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one or more members of the RemainCo Group) shall cause all RemainCo Welfare Plans to
(i) waive all limitations as to preexisting conditions, exclusions, and service conditions
with respect to participation and coverage requirements applicable to such individuals,
other than limitations that were in effect with respect to such individuals as of the date
of each such individual’s transfer to the RemainCo Group under the analogous SpinCo Welfare
Plans, (ii) honor any deductibles, out-of-pocket maximums, and co-payments incurred by such
individuals under the SpinCo Welfare Plans in satisfying any applicable deductibles,
out-of-pocket maximums or co-payments under a RemainCo Welfare Plan during the same plan
year in which such deductibles, out-of-pocket maximums and co-payments were made, and (iii)
waive any waiting period limitation or evidence of insurability requirement that would
otherwise be applicable to such individuals following the date of each such individual’s
transfer to the RemainCo Group to the extent such individual had satisfied any similar
limitation under the analogous SpinCo Welfare Plan.

          (ii) SpinCo Welfare Plans. With respect to any individual who, on or after
January 1, 2008 and prior to the Distribution Date, transfers employment from the RemainCo
Group to the SpinCo Group and who is listed on Exhibit D (each such individual a
“Transferred SpinCo Participant”), SpinCo (acting directly or through one or more
members of the SpinCo Group) shall cause all SpinCo Welfare Plans to (i) waive all
limitations as to preexisting conditions, exclusions, and service conditions with respect to
participation and coverage requirements applicable to such Transferred SpinCo Participants,
other than limitations that were in effect with respect to such Transferred SpinCo
Participants as of the date of each such Transferred SpinCo Participant’s transfer to the
SpinCo Group under the analogous RemainCo Welfare Plans, (ii) honor any deductibles,
out-of-pocket maximums, and co-payments incurred by such Transferred SpinCo Participants
under the RemainCo Welfare Plans in satisfying any applicable deductibles, out-of-pocket
maximums or co-payments under a SpinCo Welfare Plan during the same plan year in which such
deductibles, out-of-pocket maximums and co-payments were made, and (iii) waive any waiting
period limitation or evidence of insurability requirement that would otherwise be applicable
to such Transferred SpinCo Participants following the date of each such Transferred SpinCo
Participant’s transfer to the SpinCo Group to the extent such Transferred SpinCo Participant
had satisfied any similar limitation under the analogous RemainCo Welfare Plan.

          (c) Continuation of Elections.

          (i) Transferred RemainCo Participants. As of the date of each Transferred
RemainCo Participant’s transfer to the RemainCo Group, RemainCo (acting directly or through
a member of the RemainCo Group) shall cause the RemainCo Welfare Plans to recognize and
maintain all elections and designations (including all coverage and contribution elections
and beneficiary designations) made by such Transferred RemainCo Participant under, or with
respect to, the SpinCo Welfare Plans and apply such elections and designations under the
RemainCo 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 such election or
designation is available under the corresponding RemainCo Welfare Plan.

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          (ii) Transferred SpinCo Participants. As of the date of each Transferred
SpinCo Participant’s transfer to the SpinCo Group, SpinCo (acting directly or through a
member of the SpinCo Group) shall cause the SpinCo Welfare Plans to recognize and maintain
all elections and designations (including all coverage and contribution elections and
beneficiary designations) made by such Transferred SpinCo Participant under, or with respect
to, the RemainCo 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 such election or
designation is available under the corresponding SpinCo Welfare Plan.

          (d) COBRA and HIPAA. Effective as of January 1, 2008, the SpinCo Welfare Plans
assumed responsibility for compliance with the health care continuation coverage requirements of
COBRA with respect to SpinCo Participants who, as of December 31, 2007, were covered under a
RemainCo Welfare Plan pursuant to COBRA or who had a COBRA qualifying event (as defined in Code
Section 4980B) prior to December 31, 2007. The Parties hereto agree that neither the Distribution
nor any transfers of employment that occur as of the Distribution Date or otherwise in connection
with the Distribution shall constitute a COBRA qualifying event for purposes of COBRA; provided,
that, in all events, (i) SpinCo (acting directly or through a member of the SpinCo Group) shall
assume, or shall have caused the SpinCo Welfare Plans to assume, responsibility for compliance with
the health care continuation coverage requirements of COBRA with respect to the Transferred SpinCo
Participants to the extent each such individual was, as of the day prior to his or her transfer of
employment, covered under a RemainCo Welfare Plan pursuant to COBRA or who had a COBRA qualifying
event (as defined in Code Section 4980B) prior to his or her transfer of employment, and (ii)
RemainCo (acting directly or through a member of the RemainCo Group) shall assume, or shall have
caused the RemainCo Welfare Plans to assume, responsibility for compliance with the health care
continuation coverage requirements of COBRA with respect to the Transferred RemainCo Participants
to the extent each such individual was, as of the day prior to his or her transfer of employment,
covered under a SpinCo Welfare Plan pursuant to COBRA or who had a COBRA qualifying event (as
defined in Code Section 4980B) prior to his or her transfer of employment. RemainCo (acting
directly or through a member of the RemainCo Group) shall be responsible for administering
compliance with any certificate of creditable coverage requirements of HIPAA or Medicare applicable
to the RemainCo Welfare Plans with respect to SpinCo Participants.

          (e) Liabilities.

          (i) Insured Benefits. With respect to employee welfare and fringe benefits
that are provided through the purchase of insurance, (A) RemainCo shall cause the RemainCo
Welfare Plans to fully perform, pay and discharge all claims of RemainCo Participants and
SpinCo Participants that are incurred prior to January 1, 2008; (B) RemainCo shall cause the
RemainCo Welfare Plans to fully perform, pay and discharge all claims that are incurred on
or after January 1, 2008 by RemainCo Participants; and (C) SpinCo shall cause the SpinCo
Welfare Plans to fully perform, pay and discharge all claims that are incurred on or after
January 1, 2008 by SpinCo Participants. Notwithstanding the foregoing, (i) with respect to
Transferred RemainCo Participants and their beneficiaries, dependents and alternate payees,
SpinCo shall cause the SpinCo

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Welfare Plans to fully perform, pay and discharge all claims that are incurred on or
after January 1, 2008 by such individuals to the extent that, at the time a claim is
incurred, the Transferred RemainCo Participant is an employee of a member of the SpinCo
Group, and (ii) with respect to Transferred SpinCo Participants and their beneficiaries,
dependents and alternate payees, RemainCo shall cause the RemainCo Welfare Plans to fully
perform, pay and discharge all claims that are incurred on or after January 1, 2008 by such
individuals to the extent that, at the time a claim is incurred, the Transferred SpinCo
Participant is an employee of a member of the RemainCo Group.

          (ii) Self-Insured Benefits. With respect to employee welfare and fringe
benefits that are provided on a self-insured basis (other than short-term disability
benefits), (A) RemainCo shall cause the RemainCo Welfare Plans to fully perform, pay and
discharge all claims of RemainCo Participants and SpinCo Participants that are incurred (but
not reported) prior to January 1, 2008, provided, however, that SpinCo shall reimburse
RemainCo for all such claims paid by RemainCo with respect to an individual who, at the time
the claim was incurred, was an employee (or a beneficiary, dependent or alternate payee of
an employee) of a member of the SpinCo Group; (B) RemainCo shall cause the RemainCo Welfare
Plans to fully perform, pay and discharge all claims that are incurred on or after January
1, 2008 by RemainCo Participants; and (C) SpinCo shall cause the SpinCo Welfare Plans to
fully perform, pay and discharge all claims that are incurred on or after January 1, 2008 by
SpinCo Participants. Notwithstanding the foregoing, (i) with respect to Transferred
RemainCo Participants and their beneficiaries, dependents and alternate payees, SpinCo shall
cause the SpinCo Welfare Plans to fully perform, pay and discharge all claims that are
incurred on or after January 1, 2008 by such individuals to the extent that, at the time a
claim is incurred, the Transferred RemainCo Participant is an employee of a member of the
SpinCo Group, and (ii) with respect to Transferred SpinCo Participants and their
beneficiaries, dependents and alternate payees, RemainCo shall cause the RemainCo Welfare
Plans to fully perform, pay and discharge all claims that are incurred on or after January
1, 2008 by such individuals to the extent that, at the time a claim is incurred, the
Transferred SpinCo Participant is an employee of a member of the RemainCo Group.
Notwithstanding anything herein to the contrary, with respect to short-term disability
benefits, RemainCo shall cause the appropriate RemainCo Welfare Plan to fully perform, pay
and discharge all claims for benefits for RemainCo Participants who are eligible for such
benefits as of the Distribution Date, and SpinCo shall cause the appropriate SpinCo Welfare
Plan to fully perform, pay and discharge all claims for benefits for SpinCo Participants who
are eligible for such benefits as of the Distribution Date.

          (iii) Incurred Claim Definition. For purposes of this Section 5.1(e), a claim
or liability is deemed to be incurred (A) with respect to medical, dental, vision and/or
prescription drug benefits, upon the rendering of health services giving rise to such claim
or liability; (B) with respect to life insurance, accidental death and dismemberment and
business travel accident insurance, upon the occurrence of the event giving rise to such
claim or liability; (C) with respect to long-term disability benefits, upon the date of an
individual’s disability, as determined by the disability benefit insurance carrier or claim
administrator, giving rise to such claim or liability; and (D) with respect to a period of
continuous hospitalization, upon the date of admission to the hospital.

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     5.2 Reimbursement Account Plan. Effective as of January 1, 2008, SpinCo established a
health, dependent care, and adoption reimbursement account plan (the “SpinCo Reimbursement
Account Plan”) with features that are comparable to those contained in the health, dependent
care, and adoption reimbursement account plan maintained by RemainCo immediately prior to January
1, 2008 (the “RemainCo Reimbursement Account Plan”). RemainCo shall cause the RemainCo
Reimbursement Account Plan to fully perform, pay and discharge all claims of RemainCo Participants
and SpinCo Participants that are incurred (but not reported) prior to January 1, 2008, provided,
however, that SpinCo shall reimburse RemainCo for all such claims paid by RemainCo with respect to
an individual who, at the time the claim was incurred, was an employee (or a beneficiary, dependent
or alternate payee of an employee) of a member of the SpinCo Group. Except as provided below with
respect to Transferred RemainCo Participants and Transferred SpinCo Participants, RemainCo shall
cause the RemainCo Reimbursement Account Plan to fully perform, pay and discharge all claims that
are incurred on or after January 1, 2008 by each individual who, at the time the claim is incurred,
is an employee (or a beneficiary, dependent or alternate payee of an employee) of a member of the
RemainCo Group. Except as provided below with respect to Transferred RemainCo Participants and
Transferred SpinCo Participants, SpinCo shall cause the SpinCo Reimbursement Account Plan to fully
perform, pay and discharge all claims that are incurred on or after January 1, 2008 by each
individual who, at the time the claim is incurred, is an employee (or a beneficiary, dependent or
alternate payee of an employee) of a member of the SpinCo Group. No more than 45 days following
the Distribution Date, RemainCo shall cause to be transferred to SpinCo an amount in cash equal to
(i) the sum of all contributions to the RemainCo Reimbursement Account Plan made with respect to
calendar year 2008 by or on behalf of all Transferred SpinCo Participants for periods before the
date of each such Transferred SpinCo Participant’s transfer to the SpinCo Group, reduced by (ii)
the sum of all claims incurred in calendar year 2008 and paid by the RemainCo Reimbursement Account
Plan with respect to all such Transferred SpinCo Participants, and the SpinCo Reimbursement Account
Plan shall fully perform, pay and discharge all claims submitted by Transferred SpinCo Participants
on or after the date of the cash transfer; provided, however, that if the amount described in (ii)
above is greater than the amount described in (i) above, SpinCo shall cause to be transferred to
RemainCo an amount in cash equal to the excess of (ii) over (i). No more than 45 days following
the Distribution Date, SpinCo shall cause to be transferred to RemainCo an amount in cash equal to
(i) the sum of all contributions to the SpinCo Reimbursement Account Plan made with respect to
calendar year 2008 by or on behalf of all Transferred RemainCo Participants for periods before the
date of each such Transferred RemainCo Participant’s transfer to the RemainCo Group, reduced by
(ii) the sum of all claims incurred in calendar year 2008 and paid by the SpinCo Reimbursement
Account Plan with respect to all such Transferred RemainCo Participants, and the RemainCo
Reimbursement Account Plan shall fully perform, pay and discharge all claims submitted by
Transferred RemainCo Participants on or after the date of the cash transfer; provided, however,
that if the amount described in (ii) above is greater than the amount described in (i) above,
RemainCo shall cause to be transferred to SpinCo an amount in cash equal to the excess of (ii) over
(i). All assets or obligations relating to all participants in the RemainCo Reimbursement Account
Plan with respect to periods ending on or before December 31, 2007 will be retained by RemainCo.

     5.3 Retiree Medical Coverage. Effective as of January 1, 2008, SpinCo adopted a
retiree medical plan to provide retiree medical benefits substantially equivalent to those provided

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under the RemainCo Welfare Plan providing retiree medical benefits (the “RemainCo Retiree
Medical Plan”) to SpinCo Participants who immediately prior to January 1, 2008 (or, with
respect to a Transferred SpinCo Participant, the date of such Transferred SpinCo Participant’s
transfer to the SpinCo Group) were participants in the RemainCo Retiree Medical Plan (such retiree
medical plan, the “SpinCo Retiree Medical Plan” and such SpinCo Participants, the
“SpinCo Retiree Medical Plan Participants”). The SpinCo Retiree Medical Plan shall provide
retiree medical benefits to employees of members of the SpinCo Group who terminate employment on or
after January 1, 2008 under conditions entitling them to benefits under such plan. SpinCo (acting
directly or through a member of the SpinCo Group) shall be responsible for any and all liabilities
(including liabilities for funding) with respect to the SpinCo Retiree Medical Plan. Effective as
of January 1, 2008, SpinCo has caused the SpinCo Retiree Medical Plan to assume, and to fully
perform, pay and discharge, all accrued but unpaid benefits as of January 1, 2008, including
incurred but unreported claims for benefits, and any credits under the RemainCo Retiree Medical
Plan relating to all SpinCo Retiree Medical Plan Participants as of January 1, 2008 (or, with
respect to a Transferred SpinCo Participant, the date of such Transferred SpinCo Participant’s
transfer to the SpinCo Group).

     5.4 Time-Off Benefits. SpinCo shall credit each SpinCo Participant with the amount of
accrued but unused vacation time, sick time and other time-off benefits as such SpinCo Participant
had with the RemainCo Group as of the Distribution Date (or, with respect to a Transferred SpinCo
Participant, the date of such Transferred SpinCo Participant’s transfer to the SpinCo Group).
Notwithstanding the above, SpinCo shall not be required to credit any SpinCo Participant with any
accrual to the extent that a benefit attributable to such accrual is provided by the RemainCo
Group. RemainCo shall credit each Transferred RemainCo Participant with the amount of accrued but
unused vacation time, sick time and other time-off benefits as such Transferred RemainCo
Participant had with the SpinCo Group as of the date of such Transferred RemainCo Participant’s
transfer to the RemainCo Group. Notwithstanding the above, RemainCo shall not be required to credit
any Transferred RemainCo Participant with any accrual to the extent that a benefit attributable to
such accrual is provided by the SpinCo Group.

ARTICLE 6.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     6.1 SpinCo Supplemental Pension Plan.

          (a) Establishment of SpinCo SERP. Effective as of the Distribution Date, SpinCo
shall, or shall cause a member of the SpinCo Group to, establish a non-qualified deferred
compensation plan to benefit SpinCo Participants who have accrued, or were eligible to accrue,
benefits under the RemainCo SERP immediately prior to the Distribution Date, the terms of which are
substantially comparable, in the aggregate, to the terms of the RemainCo SERP as in effect
immediately prior to the Distribution Date (the “SpinCo SERP”). Effective as of the
Distribution Date, SpinCo hereby agrees to cause the SpinCo SERP to assume responsibility for all
liabilities and fully perform, pay and discharge all obligations, when such obligations become due,
of the RemainCo SERP with respect to all SpinCo Participants therein. SpinCo (acting directly or
through a member of the SpinCo Group) shall be responsible for any and all liabilities (including
liability for funding) and other obligations with respect to the SpinCo SERP.

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          (b) Continuation of Elections. As of the Distribution Date, SpinCo (acting directly
or through a member of the SpinCo Group) shall cause the SpinCo SERP to recognize and maintain all
elections (including deferral, distribution and investment elections) and beneficiary designations
with respect to SpinCo Participants under the RemainCo SERP to the extent such elections or
designations are available under the SpinCo SERP until a new election that by its terms supersedes
such original election is made by the SpinCo Participant in accordance with applicable law and the
terms and conditions of the SpinCo SERP.

     6.2 SpinCo Board of Directors’ Deferred Compensation Plan.

          (a) Establishment of SpinCo Board of Directors’ Deferred Compensation Plan. Effective
as of the Distribution Date, SpinCo shall, or shall cause a member of the SpinCo Group to,
establish a non-qualified deferred compensation plan to benefit directors of SpinCo, the terms of
which are substantially comparable, in the aggregate, to the terms of the RemainCo Board of
Directors’ Deferred Compensation Plan as in effect immediately prior to the Distribution Date (the
“SpinCo Board of Directors’ Deferred Compensation Plan”). Effective as of the Distribution
Date, SpinCo hereby agrees to cause the SpinCo Board of Directors’ Deferred Compensation Plan to
assume responsibility for all liabilities and fully perform, pay and discharge all obligations,
when such obligations become due, of the RemainCo Board of Directors’ Deferred Compensation Plan
with respect to all individuals who immediately prior to the Distribution were directors of
RemainCo and who, after the Distribution Date, will serve as directors of SpinCo but not RemainCo
(“SpinCo Directors”) who have accrued, or were eligible to accrue, benefits under the
RemainCo Board of Directors’ Deferred Compensation Plan immediately prior to the Distribution Date.
SpinCo (acting directly or through a member of the SpinCo Group) shall be responsible for any and
all liabilities (including liability for funding) and other obligations with respect to the SpinCo
Board of Directors’ Deferred Compensation Plan.

          (b) Continuation of Elections. As of the Distribution Date, SpinCo (acting directly
or through a member of the SpinCo Group) shall cause the SpinCo Board of Directors’ Deferred
Compensation Plan to recognize and maintain all elections (including deferral, distribution and
investment elections) and beneficiary designations with respect to SpinCo Directors under the
RemainCo Board of Directors’ Deferred Compensation Plan to the extent such elections or
designations are available under the SpinCo Board of Directors’ Deferred Compensation Plan until a
new election that by its terms supersedes such original election is made by the SpinCo Director in
accordance with applicable law and the terms and conditions of the SpinCo Board of Directors’
Deferred Compensation Plan.

     6.3 SpinCo Executive Deferred Compensation Program.

          (a) Establishment of SpinCo Executive Deferred Compensation Program. Effective as of
the Distribution Date, SpinCo shall, or shall cause a member of the SpinCo Group to, establish a
non-qualified deferred compensation plan to benefit SpinCo Participants who have accrued, or were
eligible to accrue, benefits under the RemainCo Executive Deferred Compensation Program immediately
prior to the Distribution Date, the terms of which are substantially comparable, in the aggregate,
to the terms of the RemainCo Executive Deferred Compensation Program as in effect immediately prior
to the Distribution Date (the “SpinCo Executive Deferred Compensation Program”). Effective
as of the Distribution Date, SpinCo

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hereby agrees to cause the SpinCo Executive Deferred Compensation Program to assume
responsibility for all liabilities and fully perform, pay and discharge all obligations, when such
obligations become due, of the RemainCo Executive Deferred Compensation Program with respect to all
SpinCo Participants therein. SpinCo (acting directly or through a member of the SpinCo Group)
shall be responsible for any and all liabilities (including liability for funding) and other
obligations with respect to the SpinCo Executive Deferred Compensation Program.

          (b) Continuation of Elections. As of the Distribution Date, SpinCo (acting directly
or through a member of the SpinCo Group) shall cause the SpinCo Executive Deferred Compensation
Program to recognize and maintain all elections (including deferral, distribution and investment
elections) and beneficiary designations with respect to SpinCo Participants under the RemainCo
Executive Deferred Compensation Program to the extent such elections or designations are available
under the SpinCo Executive Deferred Compensation Program until a new election that by its terms
supersedes such original election is made by the SpinCo Participant in accordance with applicable
law and the terms and conditions of the SpinCo Executive Deferred Compensation Program.

ARTICLE 7.

LONG-TERM INCENTIVE AWARDS

     7.1 Treatment of Outstanding RemainCo Options.

          (a) RemainCo Directors and Employees. RemainCo shall take any and all action as shall
be necessary or appropriate, including without limitation approval of the provisions of this
Agreement, so that each RemainCo Option held on the Distribution Date by (1) an individual who
immediately prior to the Distribution was a director of RemainCo and who, after the Distribution
Date, will serve as a director of RemainCo but not SpinCo, or (2) a RemainCo Participant (other
than a Former RemainCo Employee) shall remain an option to purchase RemainCo common stock issued
under the RemainCo Stock Plan or the RemainCo 1996 Stock Plan (each such option, a “Remaining
RemainCo Option”). Each Remaining RemainCo Option shall be subject to the same terms and
conditions after the Distribution as the terms and conditions applicable to the corresponding
RemainCo Option immediately prior to the Distribution, including the terms and conditions relating
to vesting and the post-termination exercise period, with the intention that such adjustment
satisfy the requirements of Section 424 of the Code and avoid treatment as nonqualified deferred
compensation subject to Section 409A of the Code. The exercise price and number of shares subject
to each Remaining RemainCo Option shall be adjusted as follows: (i) the number of shares of
RemainCo common stock subject to each such Remaining RemainCo Option shall be equal to the product
of (x) the number of shares of RemainCo common stock subject to the corresponding RemainCo Option
immediately prior to the Distribution Date and (y) the RemainCo Share Ratio, with fractional shares
rounded to the nearest whole share and (ii) the per-share exercise price of each such Remaining
RemainCo Option shall be equal to the product of (x) the per-share exercise price of the
corresponding RemainCo Option immediately prior to the Distribution Date and (y) the RemainCo Price
Ratio.

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          (b) SpinCo Directors and Employees. RemainCo and SpinCo shall take any and all action
as shall be necessary or appropriate, including without limitation approval of the provisions of
this Agreement, so that each RemainCo Option held on the Distribution Date by (1) an individual who
immediately prior to the Distribution was a director of RemainCo and who, after the Distribution
Date, will serve as a director of SpinCo but not RemainCo, or (2) a SpinCo Participant (other than
a Former SpinCo Employee) shall be replaced with a substitute SpinCo Option (each such option, an
“SpinCo Option”) issued under the SpinCo Stock Plan, subject to terms and conditions after
the Distribution that are substantially similar (to the extent practicable) to the terms and
conditions applicable to the corresponding RemainCo Option immediately prior to the Distribution,
including the terms and conditions relating to vesting and the post-termination exercise period,
with the intention that such substitution satisfy the requirements of Section 424 of the Code and
avoid treatment as nonqualified deferred compensation subject to Section 409A of the Code. The
exercise price and number of shares subject to such SpinCo Option shall be determined as follows:
(i) the number of shares of SpinCo common stock subject to each such SpinCo Option shall be equal
to the product of (x) the number of shares of RemainCo common stock subject to the corresponding
RemainCo Option immediately prior to the Distribution Date and (y) the SpinCo Share Ratio, with
fractional shares rounded to the nearest whole share and (ii) the per-share exercise price of each
such SpinCo Option shall be equal to the product of (x) the per-share exercise price of the
corresponding RemainCo Option immediately prior to the Distribution Date and (y) the SpinCo Price
Ratio. Such substitute SpinCo Option will take into account all employment with both RemainCo and
SpinCo, and their respective subsidiaries and affiliates, for purposes of determining when the
SpinCo Option becomes exercisable.

          (c) RemainCo/SpinCo Directors and Former Employees. RemainCo and SpinCo shall take
any and all action as shall be necessary or appropriate, including without limitation approval of
the provisions of this Agreement, so that each RemainCo Option held on the Distribution Date by (1)
an individual who immediately prior to the Distribution was a director of RemainCo and who, after
the Distribution Date, will serve as a director of both RemainCo and SpinCo, (2) a Former RemainCo
Employee, or (3) a Former SpinCo Employee shall be replaced with an adjusted RemainCo Option with
an adjusted exercise price (a “Post-Distribution RemainCo Option”) and a substitute SpinCo
Option issued under the SpinCo Stock Plan, subject to terms and conditions after the Distribution
that are substantially similar (to the extent practicable) to the terms and conditions applicable
to the corresponding RemainCo Option immediately prior to the Distribution, including the terms and
conditions relating to vesting and the post-termination exercise period, with the intention that
such adjustment and substitution satisfy the requirements of Section 424 of the Code and avoid
treatment as nonqualified deferred compensation subject to Section 409A of the Code. Such
replacement will be implemented in a manner such that immediately following the Distribution (i)
the number of shares relating to the Post-Distribution RemainCo Option will be equal to the number
of shares of RemainCo common stock subject to the RemainCo Option immediately prior to the
Distribution, (ii) the number of shares subject to the substitute SpinCo Option will be equal to
the number of shares of SpinCo common stock that the option holder would have received in the
Distribution had the RemainCo common stock subject to the RemainCo Option represented outstanding
shares of RemainCo common stock, and (iii) the per share option exercise price of the original
RemainCo Option will be proportionally allocated between the Post-Distribution RemainCo Option and
the substitute SpinCo Option based upon the RemainCo Post-Distribution Stock Value and the SpinCo
Stock

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Value. Each Post-Distribution RemainCo Option and substituted SpinCo Option adjusted from or
substituted for an original RemainCo Option described in this Section 7.1(c), when combined, will
preserve the intrinsic value of such original RemainCo Option, and each will preserve the ratio
from the original option of the exercise price to the fair market value of the stock subject to the
option. Such options will take into account all employment with both RemainCo and SpinCo, and
their respective subsidiaries and affiliates, for purposes of determining when the options become
exercisable.

          (d) Non-U.S. Employees. RemainCo Options held by non-U.S. RemainCo Participants and
non-U.S. SpinCo Participants shall be treated in the same manner as set forth in paragraphs (a)-(c)
above, as applicable, unless it is determined that such treatment would result in adverse tax
consequences under applicable non-U.S. tax laws, in which case such RemainCo Options shall be
adjusted in an alternative manner that will, to the extent possible, avoid such adverse tax
consequences.

          (e) Amendments and Waivers. Prior to the Distribution Date, RemainCo shall amend the
RemainCo Stock Plan and/or outstanding RemainCo Options, as necessary, to provide that neither the
Distribution nor a transfer of employment in connection with the Distribution (i) between members
of the RemainCo Group, (ii) between members of the SpinCo Group, (iii) from a member of the
RemainCo Group to a member of the SpinCo Group, or (iv) from a member of the SpinCo Group to a
member of the RemainCo Group shall constitute a termination of employment for purposes of such
RemainCo Options. Prior to the Distribution Date, RemainCo shall amend the RemainCo Stock Plan
and/or outstanding RemainCo Options held by directors of RemainCo whose service as directors of
RemainCo will cease in connection with the Distribution, as necessary, to provide that such options
shall remain exercisable until the original expiration date of such options. Prior to the
Distribution Date, RemainCo shall waive any applicable exercise or forfeiture restrictions with
respect to outstanding RemainCo Options under the RemainCo 1996 Stock Plan held by SpinCo
Participants that would otherwise apply as a result of the Distribution or a transfer of employment
from a member of the RemainCo Group to a member of the SpinCo Group in connection with the
Distribution.

          (f) Exercise of Options. Upon the exercise of a SpinCo Option, regardless of the
holder thereof, the exercise price shall be paid to (or otherwise satisfied to the satisfaction of)
SpinCo in accordance with the terms of the SpinCo Option, and SpinCo shall be solely responsible
for the issuance of SpinCo common stock, for ensuring the withholding of all applicable tax on
behalf of the employing entity of such holder, and for ensuring the remittance of such withholding
taxes to the employing entity of such holder. Upon the exercise of a Remaining RemainCo Option or a
Post-Distribution RemainCo Option, regardless of the holder thereof, the exercise price shall be
paid to (or otherwise satisfied to the satisfaction of) RemainCo in accordance with the terms of
the Remaining RemainCo Option or Post-Distribution RemainCo Option, and RemainCo shall be solely
responsible for the issuance of RemainCo common stock, for ensuring the withholding of all
applicable tax on behalf of the employing entity of such holder and for ensuring the remittance of
such withholding taxes to the employing entity of such holder.

          (g) Restriction on Exercisability of Options. The Parties acknowledge and agree that
blackout periods may be implemented with respect to the Remaining RemainCo

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Options, Post-Distribution RemainCo Options and the SpinCo Options for administrative reasons
in accordance with the terms of the RemainCo Stock Plan or the SpinCo Stock Plan, as applicable.

     7.2 Treatment of Outstanding RemainCo Deferred Stock Awards.

          (a) RemainCo Directors and Employees. Subject to Section 7.2(d), RemainCo and SpinCo
shall take any and all action as shall be necessary or appropriate, including without limitation
approval of the provisions of this Agreement, so that, as of the Distribution Date, the number of
shares of RemainCo Deferred Stock in the RemainCo Deferred Stock Account of (1) an individual who
immediately prior to the Distribution was a director of RemainCo and who, after the Distribution
Date, will serve as a director of RemainCo but not SpinCo, and (2) a RemainCo Participant (other
than a Former RemainCo Employee) shall be adjusted such that the number of shares of RemainCo
Deferred Stock in such RemainCo Deferred Stock Account shall equal the product of (x) the number of
shares of RemainCo Deferred Stock in the RemainCo Deferred Stock Account immediately prior to the
Distribution, multiplied by (y) the RemainCo Share Ratio. Such adjustment shall be intended to
preserve the intrinsic value of the original RemainCo Deferred Stock Award and to avoid treatment
as nonqualified deferred compensation subject to Section 409A of the Code.

          (b) SpinCo Directors and Employees. Subject to Section 7.2(d), RemainCo and SpinCo
shall take any and all action as shall be necessary or appropriate, including without limitation
approval of the provisions of this Agreement, so that each RemainCo Deferred Stock Award held by
(1) an individual who immediately prior to the Distribution was a director of RemainCo and who,
after the Distribution Date, will serve as a director of SpinCo but not RemainCo, and (2) a SpinCo
Participant (other than a Former SpinCo Employee) will be replaced with a substitute SpinCo
Deferred Stock Award issued under the SpinCo Stock Plan, subject to terms and conditions after the
Distribution that are substantially similar (to the extent practicable) to the terms and conditions
applicable to the corresponding RemainCo Deferred Stock Award immediately prior to the
Distribution, with the intention that such substitution avoid treatment as nonqualified deferred
compensation subject to Section 409A of the Code. It is intended that each substitute SpinCo
Deferred Stock Award will preserve the intrinsic value of the original RemainCo Deferred Stock
Award for which it was substituted by representing a number of shares of SpinCo common stock equal
to the product of (x) the number of shares of RemainCo Deferred Stock in the RemainCo Deferred
Stock Account immediately prior to the Distribution, multiplied by (y) the SpinCo Share Ratio. The
Parties agree that unvested RemainCo Deferred Stock Awards (other than performance-based RemainCo
Deferred Stock Awards) granted prior to December 2007 and held by individuals who immediately prior
to the Distribution are employees of a member of the SpinCo Group shall become fully vested as of
the Distribution Date and shall be paid according to their terms as adjusted in accordance with
this paragraph.

          (c) RemainCo/SpinCo Directors. RemainCo and SpinCo shall take any and all action as
shall be necessary or appropriate, including without limitation approval of the provisions of this
Agreement, so that each individual who immediately prior to the Distribution was a director of
RemainCo and who, after the Distribution Date, will serve as a director of both RemainCo and SpinCo
will have each of his RemainCo Deferred Stock Awards replaced with an

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adjusted RemainCo Deferred Stock Award and a substitute SpinCo Deferred Stock Award issued
under the SpinCo Stock Plan, subject to terms and conditions after the Distribution that are
substantially similar (to the extent practicable) to the terms and conditions applicable to the
corresponding RemainCo Deferred Stock Award immediately prior to the Distribution, with the
intention that such adjustment and substitution avoid treatment as nonqualified deferred
compensation subject to Section 409A of the Code. Immediately following the Distribution (i) the
number of shares of RemainCo Deferred Stock in such individual’s RemainCo Deferred Stock Account
shall equal the number of shares of RemainCo Deferred Stock in such RemainCo Deferred Stock Account
immediately prior to the Distribution, and (ii) the substitute SpinCo Deferred Stock Award shall
represent the number of shares of SpinCo common stock that such individual would have received in
the Distribution had he held the number of shares in his RemainCo Deferred Stock Account
immediately prior to the Distribution, with the intention that such adjustment and substitution
avoid treatment as nonqualified deferred compensation subject to Section 409A of the Code.

          (d) Vesting and Distribution of Deferred Stock Awards. Notwithstanding Sections
7.2(a) and (b), RemainCo and SpinCo shall take any and all action as shall be necessary or
appropriate, including without limitation approval of the provisions of this Agreement, so that
each RemainCo Participant and each SpinCo Participant who has made an election to defer payment of
a RemainCo Deferred Stock Award will have the portion of their RemainCo Deferred Stock Awards to
which such election applies replaced with an adjusted RemainCo Deferred Stock Award and a
substitute SpinCo Deferred Stock Award issued under the SpinCo Stock Plan. Immediately following
the Distribution, with respect to the portion of the RemainCo Deferred Stock Awards to which the
deferral election applies, (i) the number of shares of RemainCo Deferred Stock in such individual’s
RemainCo Deferred Stock Account shall equal the number of shares of RemainCo Deferred Stock in such
RemainCo Deferred Stock Account immediately prior to the Distribution, and (ii) the substitute
SpinCo Deferred Stock Award shall represent the number of shares of SpinCo common stock that such
individual would have received in the Distribution had he held the number of shares in his RemainCo
Deferred Stock Account immediately prior to the Distribution, with the intention that such
adjustment and substitution preserve the intrinsic value of the original RemainCo Deferred Stock
Award and avoid treatment as nonqualified deferred compensation subject to Section 409A of the
Code.

          (e) Non-U.S. Employees. RemainCo Deferred Stock Awards held by non-U.S. RemainCo
Participants and non-U.S. SpinCo Participants shall be treated in the same manner as set forth in
paragraphs (a)-(d) above, as applicable, unless it is determined that such treatment would result
in adverse tax consequences under applicable non-U.S. tax laws, in which case such RemainCo
Deferred Stock Awards shall be adjusted in an alternative manner that will, to the extent possible,
avoid such adverse tax consequences.

          (f) Amendments. Prior to the Distribution Date, RemainCo shall amend the RemainCo
Stock Plan and/or outstanding RemainCo Deferred Stock Awards, as necessary, to provide that (i)
neither the Distribution nor a transfer of employment in connection with the Distribution (A)
between members of the RemainCo Group, (B) between members of the SpinCo Group, (C) from a member
of the RemainCo Group to a member of the SpinCo Group, or (D) from a member of the SpinCo Group to
a member of the RemainCo Group shall constitute a termination of employment for purposes of such
RemainCo Deferred Stock Awards, and (ii)

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awards that were granted on April 5, 2007 that are subject to vesting based on certain
performance goals shall vest based solely on the achievement of the performance goals of each
holder’s post-Distribution employer (i.e., RemainCo or SpinCo) after year one of the applicable
three year performance period. Prior to the Distribution Date, RemainCo shall amend the RemainCo
Stock Plan and RemainCo Deferred Stock Awards held by RemainCo directors who, after the
Distribution, will serve as directors of SpinCo, as necessary, to allow such directors to make new
elections providing that the underlying common stock will be delivered on the six month anniversary
of the date the director ceases to be a director of SpinCo, provided that any such election to
defer shall be conditioned on the occurrence of the Distribution.

          (g) Vesting of Deferred Stock Awards. Except with respect to the RemainCo Deferred
Stock Awards that vest as described in Section 7.2(b), upon the vesting of the RemainCo Deferred
Stock Awards, RemainCo shall be solely responsible for the settlement of all RemainCo Deferred
Stock Awards, regardless of the holder thereof, and for ensuring the satisfaction of all applicable
tax withholding requirements on behalf of the employing entity of such holder and for ensuring the
remittance of such withholding taxes to the employing entity of such holder. Upon the vesting of
the RemainCo Deferred Stock Awards that vest as described in Section 7.2(b) and the SpinCo Deferred
Stock Awards, SpinCo shall be solely responsible for the settlement of all such awards, regardless
of the holder thereof, and for ensuring the satisfaction of all applicable tax withholding
requirements on behalf of the employing entity of such holder and for ensuring the remittance of
such withholding taxes to the employing entity of such holder.

     7.3 Cooperation. Each of the Parties shall establish an appropriate administration
system in order to handle, in an orderly manner, exercises of RemainCo Options and SpinCo Options
and the settlement of RemainCo Deferred Stock Awards and SpinCo Deferred Stock Awards. Each of the
Parties will work together to unify and consolidate all indicative data and payroll and employment
information on regular timetables and make certain that each applicable entity’s data and records
in respect of such awards are correct and updated on a timely basis. The foregoing shall include
employment status and information required for tax withholding/remittance, compliance with trading
windows and compliance with the requirements of the Securities Exchange Act and other applicable
laws.

     7.4 SEC Registration. The Parties mutually agree to use commercially reasonable
efforts to maintain effective registration statements with the SEC with respect to the long-term
incentive awards described in this Article VII, to the extent any such registration statement is
required by applicable law.

     7.5 Savings Clause. The Parties hereby acknowledge that the provisions of this
Article VII are intended to achieve certain tax, legal and accounting objectives and, in the event
such objectives are not achieved, the Parties agree to negotiate in good faith regarding such other
actions that may be necessary or appropriate to achieve such objectives.

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ARTICLE 8.

ADDITIONAL COMPENSATION MATTERS; SEVERANCE

     8.1 Annual Incentive Awards.

          (a) SpinCo Assumption of Annual Incentive Liability. Effective as of the Distribution
Date, SpinCo shall assume or retain, as applicable, responsibility for all liabilities and fully
perform, pay and discharge all obligations, when such obligations become due, relating to any
annual incentive awards that any SpinCo Participant is eligible to receive with respect to fiscal
year 2008 and, effective as of the Distribution Date, RemainCo shall have no obligation with
respect to any such annual incentive award.

          (b) RemainCo Assumption of Annual Incentive Liability. Effective as of the
Distribution Date, RemainCo shall assume or retain, as applicable, responsibility for all
liabilities and fully perform, pay and discharge all obligations, when such obligations become due,
relating to any annual incentive awards that any RemainCo Participant is eligible to receive with
respect to fiscal year 2008 and, effective as of the Distribution Date, SpinCo shall have no
obligation with respect to any such annual incentive award.

          (c) Establishment of SpinCo Annual Incentive Plan. Effective as of the Distribution
Date, SpinCo shall have adopted an annual incentive plan which shall permit the issuance of annual
incentive awards on terms and conditions substantially comparable to those under the RemainCo
Short-Term Incentive Compensation Plan (provided that the payment amounts and individual
performance criteria shall be established in the discretion of the SpinCo Board of Directors or the
SpinCo Committee).

          (d) Adjustment of Outstanding Awards. Effective as of the Distribution Date, RemainCo
and SpinCo shall adjust any outstanding annual incentive awards for RemainCo Participants and
SpinCo Participants, respectively, so that such awards’ payout calculations shall be based solely
on the RemainCo Participants’ and SpinCo Participants’ post-Distribution employer’s financial
performance.

     8.2 Individual Arrangements.

          (a) RemainCo Individual Arrangements. RemainCo acknowledges and agrees that, except
as otherwise provided herein, it shall have full responsibility with respect to any liabilities and
the payment or performance of any obligations arising out of or relating to any employment,
consulting, non-competition, retention or other compensatory arrangement previously provided by any
member of the RemainCo Group or SpinCo Group to any RemainCo Participant, including life insurance
policies not held in any trust and covering any RemainCo Participant.

          (b) SpinCo Individual Arrangements. SpinCo acknowledges and agrees that, except as
otherwise provided herein, it shall have full responsibility with respect to any liabilities and
the payment or performance of any obligations arising out of or relating to any employment,
consulting, non-competition, retention or other compensatory arrangement previously provided

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by any member of the RemainCo Group or SpinCo Group to any SpinCo Participant, including life
insurance policies not held in any trust and covering any SpinCo Participant.

     8.3 Severance Plans.

          (a) Establishment of SpinCo Severance Plans. Effective as of the Distribution Date,
SpinCo shall take all steps necessary to establish for SpinCo Employees a severance plan which
provides severance benefits comparable to those provided under the RemainCo Severance Plan (such
SpinCo severance plan referred to herein as the “SpinCo Severance Plan”).

          (b) Assumption of Severance Liabilities. Effective as of the Distribution Date,
SpinCo shall assume or retain, as applicable, responsibility for all liabilities and fully perform,
pay and discharge all obligations, when such obligations become due, relating to any severance
benefit to which a SpinCo Participant is entitled under a RemainCo Severance Plan as of the
Distribution Date. Likewise, RemainCo shall assume or retain, as applicable, responsibility for all
liabilities and fully perform, pay and discharge all obligations, when such obligations become due,
relating to any severance benefit to which a RemainCo Participant is entitled under a RemainCo
Severance Plan as of the Distribution Date.

          (c) Effect of the Separation on Severance. RemainCo and SpinCo acknowledge and agree
that the transaction contemplated by the Distribution Agreement, in and of itself, will not
constitute a termination of employment of any SpinCo Participant for purposes of any policy, plan,
program or agreement of RemainCo or SpinCo or any member of the RemainCo Group or SpinCo Group that
provides for the payment of severance, separation pay, salary continuation or similar benefits in
the event of a termination of employment.

     8.4 Workers’ Compensation Liabilities.

          (a) Pre-Distribution Date Claims. Except as set forth below, all workers’
compensation liabilities relating to, arising out of, or resulting from any claim by a SpinCo
Employee or Former SpinCo Employee that results from an accident, incident or event occurring, or
from an occupational disease which becomes manifest, before the Distribution Date shall be retained
by SpinCo. Notwithstanding the foregoing, SpinCo shall not assume or retain any workers’
compensation liability relating to, arising out of, or resulting from any claim by a SpinCo
Employee that results from an accident, incident or event occurring, or from an occupational
disease which becomes manifest, while such SpinCo Employee was employed by any member of the
RemainCo Group (such a claim, a “RemainCo Retained Claim”). All workers’ compensation
liabilities relating to, arising out of, or resulting from (i) any RemainCo Retained Claim or (ii)
any claim by a RemainCo Employee or Former RemainCo Employee that results from an accident,
incident, or event occurring, or from an occupational disease which becomes manifest before the
Distribution Date shall be retained by RemainCo.

          (b) Post-Distribution Date Claims. All workers’ compensation liabilities relating to,
arising out of, or resulting from any claim by a SpinCo Employee or Former SpinCo Employee that
results from an accident, incident or event occurring, or from an occupational disease which
becomes manifest, on or after the Distribution Date shall be retained by SpinCo. All workers’
compensation liabilities relating to, arising out of, or resulting from any claim by a

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RemainCo Employee or Former RemainCo Employee that results from an accident, incident or event
occurring, or from an occupational disease which becomes manifest, on or after the Distribution
Date shall be retained by RemainCo.

          (c) General. For purposes of this Section 8.4, a compensable injury shall be deemed
to be sustained upon the occurrence of the event giving rise to eligibility for workers’
compensation benefits or an occupational disease becomes manifest, as the case may be. RemainCo and
SpinCo shall cooperate in good faith with respect to the notification to appropriate governmental
agencies of the Distribution and the issuance of new workers’ compensation insurance policies or
program of self-insurance and claims handling contracts.

     8.5 Sections 162(m)/409A. Notwithstanding anything in this Agreement to the contrary
(including the treatment of supplemental and deferred compensation plans, outstanding long-term
incentive awards and annual incentive awards as described herein), the Parties agree to negotiate
in good faith regarding the need for any treatment different from that otherwise provided herein to
ensure that (i) a federal income tax deduction for the payment of such supplemental or deferred
compensation or long-term incentive award, annual incentive award or other compensation is not
limited by reason of Section 162(m) of the Code (to the extent that such result is intended under
the applicable RemainCo Benefit Plan), and (ii) the treatment of such supplemental or deferred
compensation or long-term incentive award, annual incentive award or other compensation does not
cause the imposition of a tax under Section 409A of the Code.

     8.6 Director Fees. RemainCo shall retain responsibility for the payment of any fees
payable in respect of service on the RemainCo Board of Directors that are payable but not yet paid
as of the Distribution Date, and SpinCo shall have no responsibility for any such payments.

ARTICLE 9.

INDEMNIFICATION

     9.1 General Indemnification. Any claim for indemnification under this Agreement shall
be governed by, and be subject to, the provisions of Article III of the Distribution Agreement,
which provisions are hereby incorporated by reference into this Agreement and any references to
“Agreement” in such Article III as incorporated herein shall be deemed to be references to this
Agreement.

ARTICLE 10.

GENERAL AND ADMINISTRATIVE

     10.1 Separate Plans. Each SpinCo Benefit Plan is intended to constitute a separate,
“single employer” plan so that no “multiple employer” plan (as described in Code Section 413(c)) or
“multiple employer welfare arrangement” (as defined in ERISA Section 3(40)) shall exist with
respect to RemainCo and SpinCo. Notwithstanding the foregoing, RemainCo and SpinCo may arrange
with third parties providing services with respect to RemainCo Benefit Plans immediately prior to
the Distribution (including, but not limited to, administrative services,

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claims processing services, trustee services and stop-loss coverage) to continue such services
on a shared basis for a period of time after the Distribution Date. RemainCo and SpinCo agree to
share the costs of any such shared services during such period on a per-participant basis.

     10.2 Sharing Of Information. RemainCo and SpinCo (acting directly or through their
respective affiliates) shall provide to the other and their respective agents and vendors all
information as the other may reasonably request to enable the requesting Party to administer
efficiently and accurately each of its Benefit Plans and to determine the scope of, as well as
fulfill, its obligations under this Agreement. Such information shall, to the extent reasonably
practicable, be provided in the format and at the times and places requested, but in no event shall
the Party providing such information be obligated to incur any out-of-pocket expenses not
reimbursed by the Party making such request or make such information available outside of its
normal business hours and premises. Any information shared or exchanged pursuant to this Agreement
shall be subject to the confidentiality requirements set forth in the Distribution Agreement. The
Parties also hereby agree to enter into any business associate agreements that may be required for
the sharing of any information pursuant to this Agreement to comply with the requirements of HIPAA.

     10.3 Reasonable Efforts/Cooperation. Each of the Parties hereto will use its
commercially reasonable efforts to promptly take, or cause to be taken, all actions and to do, or
cause to be done, all things necessary, proper or advisable under applicable laws and regulations
to consummate the transactions contemplated by this Agreement, including adopting plans or plan
amendments. Each of the Parties hereto shall cooperate fully on any issue relating to the
transactions contemplated by this Agreement for which the other Party seeks a determination letter
or private letter ruling from the IRS, an advisory opinion from the DOL or any other filing,
consent or approval with respect to or by a Governmental Authority.

     10.4 Employer Rights. Nothing in this Agreement shall prohibit SpinCo or any SpinCo
affiliate from amending, modifying or terminating any SpinCo Benefit Plan at any time within its
sole discretion. In addition, nothing in this Agreement shall prohibit RemainCo or any RemainCo
affiliate from amending, modifying or terminating any RemainCo Benefit Plan at any time within its
sole discretion.

     10.5 Effect on Employment. Nothing in this Agreement is intended to confer upon any
employee or former employee of RemainCo, SpinCo or either of their respective affiliates any right
to continued employment, or any recall or similar rights to an individual on layoff or any type of
approved leave.

     10.6 Consent Of Third Parties. If any provision of this Agreement is dependent on the
consent of any third party and such consent is withheld, the Parties hereto shall use their
reasonable best efforts to implement the applicable provisions of this Agreement to the fullest
extent practicable. If any provision of this Agreement cannot be implemented due to the failure of
such third party to consent, the Parties hereto shall negotiate in good faith to implement the
provision in a mutually satisfactory manner.

     10.7 Access To Employees. Following the Distribution Date, RemainCo and SpinCo shall,
or shall cause each of their respective affiliates to, make available to each other those of

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their employees who may reasonably be needed in order to defend or prosecute any legal or
administrative action (other than a legal action between RemainCo and SpinCo) to which any
employee, director or Benefit Plan of the RemainCo Group or SpinCo Group is a party and which
relates to their respective Benefit Plans prior to the Distribution Date. The Party to whom an
employee is made available in accordance with this Section 10.7 shall pay or reimburse the other
Party for all reasonable expenses which may be incurred by such employee in connection therewith,
including all reasonable travel, lodging, and meal expenses, but excluding any amount for such
employee’s time spent in connection herewith.

     10.8 Beneficiary Designation/Release Of Information/Right To Reimbursement. To the
extent permitted by applicable law and except as otherwise provided for in this Agreement, all
beneficiary designations, authorizations for the release of information and rights to reimbursement
made by or relating to SpinCo Participants under RemainCo Benefit Plans shall be transferred to and
be in full force and effect under the corresponding SpinCo Benefit Plans until such beneficiary
designations, authorizations or rights are replaced or revoked by, or no longer apply, to the
relevant SpinCo Participant.

     10.9 Not A Change In Control. The Parties hereto acknowledge and agree that the
transactions contemplated by the Distribution Agreement and this Agreement do not constitute a
“change in control” for purposes of any RemainCo Benefit Plan or SpinCo Benefit Plan.

ARTICLE 11.

MISCELLANEOUS

     11.1 Effect If Distribution Does Not Occur. Notwithstanding anything in this
Agreement to the contrary, if the Distribution Agreement is terminated prior to the Distribution
Date, then all actions and events that are, under this Agreement, to be taken or occur effective
prior to, as of or following the Distribution Date, or otherwise in connection with the
Distribution, shall not be taken or occur except to the extent specifically agreed to in writing by
RemainCo and SpinCo and neither Party shall have any liability or further obligation to the other
Party under this Agreement.

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

     11.3 Affiliates. Each of RemainCo and SpinCo shall cause to be performed, and hereby
guarantees the performance of, all actions, agreements and obligations set forth in this Agreement
to be performed by each of their affiliates, respectively.

     11.4 Notices. All notices, requests, claims, demands and other communications under
this Agreement, as between the Parties, shall be in writing and shall be given or made (and shall
be deemed to have been duly given or made upon receipt unless the day of receipt is not a Business
Day, in which case it shall be deemed to have been duly given or made on the next

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following Business Day) by delivery in person, by overnight courier service, by facsimile with
receipt confirmed (followed by delivery of an original via overnight courier service) or by
registered or certified mail (postage prepaid, return receipt requested) to the respective Parties
at the following addresses (or at such other address for a Party as shall be specified in a notice
given in accordance with this Section 11.4):

To RemainCo:

Hillenbrand Industries, Inc. (to be renamed Hill-Rom Holdings, Inc.)

700 State Route 46 East

Batesville, IN 47006-8835

c/o Corporate Secretary

To SpinCo:

Batesville Holdings, Inc. (to be renamed Hillenbrand, Inc.)

One Batesville Road

Batesville, IN 47006

c/o Corporate Secretary 

     11.5 Entire Agreement. This Agreement, the Distribution Agreement, and each other
related agreement, including any annexes, schedules and exhibits hereto and thereto, as well as any
other agreements and documents referred to herein and therein, shall constitute the entire
agreement between the Parties with respect to the subject matter hereof and shall supersede all
previous negotiations, commitments and writings with respect to such subject matter. In the event
of any inconsistency between this Agreement and any Exhibit hereto, the Exhibit shall prevail.

     11.6 Waivers. The failure of any Party to require strict performance by any other
Party of any provision in this Agreement will not waive or diminish that Party’s right to demand
strict performance thereafter of that or any other provision hereof.

     11.7 Amendments. Subject to the terms of Section 11.8 of this Agreement, this
Agreement may not be modified or amended except by an agreement in writing signed by each of the
Parties.

     11.8 Termination, Etc. This Agreement (including Article IX hereof (Indemnification))
may be terminated and abandoned at any time prior to the Distribution Date by and in the sole
discretion of RemainCo without the approval of SpinCo or the stockholders of RemainCo and it shall
be deemed terminated if and when the Distribution Agreement is terminated. In the event of such
termination, no Party shall have any liability of any kind to any other Party or any other Person.
After the Distribution Date, this Agreement may not be terminated except by an agreement in writing
signed by each of the Parties.

     11.9 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Indiana (other than the laws regarding choice of laws and conflicts
of laws) as to all matters, including matters of validity, construction, effect, performance and
remedies.

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     11.10 Dispute Resolution. Any controversy, dispute or claim arising out of, in
connection with, or in relation to the interpretation, performance, nonperformance, validity,
termination or breach of this Agreement or otherwise arising out of, or in any way related to this
Agreement or the transactions contemplated hereby, including any claim based on contract, tort,
statute or constitution (but excluding any controversy, dispute or claim arising out of any
contract relating to the use or lease of real property if any third party is a necessary party to
such controversy, dispute or claim) (collectively, “Agreement Dispute”), shall be governed
by, and be subject to, the provisions of Article VI of the Distribution Agreement, which provisions
(and related defined terms) are hereby incorporated by reference into this Agreement and any
references to “Agreement” in such Article VI as incorporated herein shall be deemed to be
references to this Agreement; provided, however, any references to “Agreement” or
“Agreement Disputes” in such Article VI as incorporated herein shall be deemed to be references to
this Agreement and Agreement Disputes as defined in this Agreement. Notwithstanding the foregoing
provisions of this Section 11.10, (i) disputes regarding the amount of the Final Pension Plan
Transfer Amount or True-Up Amount shall be determined exclusively pursuant to the dispute
resolution procedures set out in Section 3.2 of this Agreement, (ii) no notice of dispute relating
to the characterization of an individual as a RemainCo Employee, SpinCo Employee, Former RemainCo
Employee or Former SpinCo Employee may be provided under this Section 11.10 more than one hundred
eighty (180) days after the Distribution, and (iii) no notice of dispute may be provided under this
Section 11.10 after the second anniversary of the Distribution Date.

     11.11 Titles and Headings. Titles and headings to sections herein are inserted for
the convenience of reference only and are not intended to be a part of or to affect the meaning or
interpretation of this Agreement.

     11.12 Counterparts. This Agreement may be executed in more than one counterparts, all
of which shall be considered one and the same agreement, and shall become effective when one or
more such counterparts have been signed by each of the Parties and delivered to the other Parties.

     11.13 Assignment. Except as otherwise provided for in this Agreement, this Agreement
shall not be assignable, in whole or in part, directly or indirectly, by any Party without the
prior written consent of the other Party, and any attempt to assign any rights or obligations
arising under this Agreement without such consent shall be void; provided, that, a
Party may assign this Agreement in connection with a merger transaction in which such Party is not
the surviving entity or the sale by such Party of all or substantially all of its assets; and
provided, further, that the surviving entity of such merger or the transferee of
such assets shall agree in writing, reasonably satisfactory to the other Parties, to be bound by
the terms of this Agreement as if named as a “Party” hereto.

     11.14 Severability. In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein shall not in any way be
affected or impaired thereby. The Parties shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable provisions.

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     11.15 Successors and Assigns. The provisions of this Agreement and the obligations
and rights hereunder shall be binding upon, inure to the benefit of and be enforceable by (and
against) the Parties and their respective successors and permitted transferees and assigns.

     11.16 Exhibits. The Exhibits shall be construed with and as an integral part of this
Agreement to the same extent as if the same had been set forth verbatim herein.

     11.17 Specific Performance. The Parties agree that irreparable damage would occur in
the event that the provisions of this Agreement were not performed in accordance with their
specific terms. Accordingly, it is hereby agreed that the Parties shall be entitled to (i) an
injunction or injunctions to enforce specifically the terms and provisions hereof in any
arbitration in accordance with Section 11.10 of this Agreement, (ii) provisional or temporary
injunctive relief in accordance therewith in any Indiana Court, and (iii) enforcement of any such
award of an arbitral tribunal or an Indiana Court in any court of the United States, or any other
any court or tribunal sitting in any state of the United States or in any foreign country that has
jurisdiction, this being in addition to any other remedy or relief to which they may be entitled.

     11.18 Waiver of Jury Trial. SUBJECT TO SECTIONS 11.10 AND 11.17 OF THIS AGREEMENT,
EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY COURT PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
OF AND PERMITTED UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT. EACH OF THE PARTIES HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.18.

     11.19 Force Majeure. No Party (or any Person acting on its behalf) shall have any
liability or responsibility for failure to fulfill any obligation (other than a payment obligation)
under this Agreement so long as and to the extent to which the fulfillment of such obligation is
prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure. A
Party claiming the benefit of this provision shall, as soon as reasonably practicable after the
occurrence of any such event: (a) notify the other Party of the nature and extent of any such Force
Majeure condition and (b) use due diligence to remove any such causes and resume performance under
this Agreement as soon as reasonably practicable.

     11.20 Authorization. Each of the Parties hereby represents and warrants that it has
the power and authority to execute, deliver and perform this Agreement, that this Agreement has
been duly authorized by all necessary corporate action on the part of such Party, that this
Agreement constitutes a legal, valid and binding obligation of each such Party and that the
execution, delivery and performance of this Agreement by such Party does not contravene or

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conflict with any provision of law or of its charter or bylaws or any material agreement,
instrument or order binding on such Party.

     11.21 No Third-Party Beneficiaries. Except as otherwise expressly provided in this
Agreement, this Agreement is solely for the benefit of the Parties and should not be deemed to
confer upon third parties any remedy, claim, liability, reimbursement, cause of action or other
right in excess of those existing without reference to this Agreement.

     11.22 Construction. The Parties have participated jointly in the negotiation and
drafting of this Agreement. This Agreement shall be construed without regard to any presumption or
rule requiring construction or interpretation against the party drafting or causing any instrument
to be drafted.

[Remainder of this page intentionally left blank.]

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

	 	 	 	 	 
	 	 	HILLENBRAND INDUSTRIES, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	BATESVILLE HOLDINGS, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

-38-

 

EXHIBIT A

Assumptions And Valuation Methodology for Purposes of Section 3.2(b)

Mortality Rates — Per PBGC Regulation Section 4044.53.

Interest Rates — Per PBGC Regulation Section 4044.52 and Appendix B thereto.

Expected Retirement Age — Per Regulation Section 4044.55 and assuming beginning-of-year decrement.
Early retirement subsidies will be taken into account in the value of accrued benefits by
reflecting a grow-in of early retirement eligibility by including projected future eligibility
service.

Preretirement Withdrawal/Disability Rates — None assumed.

Expense Loading — None assumed.

 

 

EXHIBIT B

RemainCo Welfare Plans

Medical Plan

Dental Plan

Vision Plan

Basic Employee Life Insurance

Supplemental Life and Dependent Life Insurance

Basic Employee AD&D

Voluntary AD&D and Dependent AD&D

Long Term Disability

Voluntary Long Term Disability

Short Term Disability

Employee Assistance Program

Health Care Flexible Spending Account

Dependent Care Flexible Spending Account

Adoption Assistance Flexible Spending Account

Limited Scope Flexible Spending Account

Business Travel Accident

Tuition Reimbursement

Vacation and Holiday Policies

 

 

EXHIBIT C

Transferred RemainCo Participants

 

 

EXHIBIT D

Transferred SpinCo Participants

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