Document:

Exhibit 10.11

 

MEDICAL CARE REIMBURSEMENT PLAN FOR
 EXECUTIVES OF
 KLX ENERGY SERVICES HOLDINGS, INC.

 

 

Table of Contents

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I PURPOSE   AND ESTABLISHMENT
    	
1
    
	
 
    	
 
    	
 
    
	
1.1
    	
Purpose
    	
1
    
	
 
    	
 
    	
 
    
	
1.2
    	
Name
    	
1
    
	
 
    	
 
    	
 
    
	
1.3
    	
Effective Date
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II   DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
2.1
    	
Board of Directors
    	
1
    
	
 
    	
 
    	
 
    
	
2.2
    	
Code
    	
1
    
	
 
    	
 
    	
 
    
	
2.3
    	
Committee
    	
1
    
	
 
    	
 
    	
 
    
	
2.4
    	
Company
    	
1
    
	
 
    	
 
    	
 
    
	
2.5
    	
Eligible Dependent
    	
1
    
	
 
    	
 
    	
 
    
	
2.6
    	
Employer
    	
1
    
	
 
    	
 
    	
 
    
	
2.7
    	
Dependent
    	
1
    
	
 
    	
 
    	
 
    
	
2.8
    	
Executive
    	
1
    
	
 
    	
 
    	
 
    
	
2.9
    	
Health Plan
    	
1
    
	
 
    	
 
    	
 
    
	
2.10
    	
Participant
    	
1
    
	
 
    	
 
    	
 
    
	
2.11
    	
Plan
    	
1
    
	
 
    	
 
    	
 
    
	
2.12
    	
Plan Administrator
    	
1
    
	
 
    	
 
    	
 
    
	
2.13
    	
Plan Number
    	
1
    
	
 
    	
 
    	
 
    
	
2.14
    	
Plan Year
    	
2
    
	
 
    	
 
    	
 
    
	
2.15
    	
Medical Care Expense
    	
2
    
	
 
    	
 
    	
 
    
	
2.16
    	
Reimbursement Account
    	
2
    
	
 
    	
 
    	
 
    
	
2.17
    	
Termination
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE III   ELIGIBILITY FOR PARTICIPATION
    	
2
    
	
 
    	
 
    	
 
    
	
3.1
    	
Generally
    	
2
    
	
 
    	
 
    	
 
    
	
3.2
    	
Termination of   Participation
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   BENEFITS
    	
2
    
	
 
    	
 
    	
 
    
	
4.1
    	
Generally
    	
2
    
	
 
    	
 
    	
 
    
	
4.2
    	
Benefits Limited to   Expenses Incurred During Plan Year
    	
3
    
	
 
    	
 
    	
 
    
	
4.3
    	
Medical Care Expenses
    	
3
    
	
 
    	
 
    	
 
    
	
4.4
    	
Refund of Duplicate   Reimbursement
    	
3
    
	
 
    	
 
    	
 
    
	
ARTICLE V   ADMINISTRATION
    	
3
    
	
 
    	
 
    	
 
    
	
5.1
    	
Committee
    	
3
    

 

i

 

	
5.2
    	
Duties and Powers of   the Committee
    	
4
    
	
 
    	
 
    	
 
    
	
5.3
    	
Delegation and Allocation   of Responsibilities of the Committee
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE VI CLAIMS   PROCEDURE
    	
5
    
	
 
    	
 
    	
 
    
	
6.1
    	
Submission of Claims
    	
5
    
	
 
    	
 
    	
 
    
	
6.2
    	
Review of Denial of   Claims
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE VII   FUNDING
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII   AMENDMENTS; TERMINATION
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE IX   MISCELLANEOUS
    	
7
    
	
 
    	
 
    	
 
    
	
9.1
    	
No Employment Contract
    	
7
    
	
 
    	
 
    	
 
    
	
9.2
    	
No Assignment
    	
7
    
	
 
    	
 
    	
 
    
	
9.3
    	
Choice of Law
    	
7
    
	
 
    	
 
    	
 
    
	
9.4
    	
Severability
    	
7
    
	
 
    	
 
    	
 
    
	
9.5
    	
Gender, Singular and   Plural References
    	
7
    
	
 
    	
 
    	
 
    
	
9.6
    	
Tax
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE X ADOPTION   BY EMPLOYERS
    	
7
    
	
 
    	
 
    	
 
    
	
10.1
    	
Method of Adoption
    	
7
    
	
 
    	
 
    	
 
    
	
10.2
    	
Delegation Upon   Adoption
    	
7
    
	
 
    	
 
    	
 
    
	
10.3
    	
Employer Contributions
    	
8
    
	
 
    	
 
    	
 
    
	
10.4
    	
Withdrawal or Removal
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE XI GENERAL   INFORMATION
    	
8
    

 

 

ARTICLE I
 PURPOSE AND ESTABLISHMENT

 

1.1                               Purpose. The purpose of this Plan is to reimburse eligible Executives for Medical Care Expenses not reimbursed by any other plan or arrangement. This document serves as both the plan document and summary plan description for the Plan.

 

1.2                               Name. The Plan shall be named the Medical Care Reimbursement Plan for Executives of KLX Energy Services Holdings, Inc.

 

1.3                               Effective Date. The effective date of this Plan is September 13, 2018.

 

ARTICLE II
 DEFINITIONS

 

2.1                               Board of Directors means the Board of Directors of KLX Energy Services Holdings, Inc.

 

2.2                               Code means the Internal Revenue Code of 1986, as amended from time to time.

 

2.3                               Committee shall mean the Benefits Committee designated by the Board of Directors in accordance with Article VI of the Plan.

 

2.4                               Company shall mean KLX Energy Services Holdings, Inc.

 

2.5                               Eligible Dependent means a Dependent that is covered by a Health Plan.

 

2.6                               Employer shall mean KLX Energy Services Holdings, Inc. and any of its subsidiaries and affiliates that, with the consent of the Company, adopt this Plan.

 

2.7                               Dependent means a Participant’s spouse, domestic partner, or any of his or her dependents as defined in Code Section 152.

 

2.8                               Executive means each current or former (pursuant to the terms of his or her employment agreement) executive of the Employer selected by the Committee, in writing, for eligibility from among the group of highly compensated or managerial employees of the Employer who is also enrolled in a Health Plan sponsored by the Employer.

 

2.9                               Health Plan means a group health plan that provides major medical coverage and meets the minimum value requirements in Code § 36B (c)(2)(C)(ii) under which the Participant and his Eligible Dependents, if any, are covered.

 

2.10                        Participant means an Executive who satisfies the requirements of Section 3.1 hereof.

 

2.11                        Plan means the Medical Care Reimbursement Plan for Executives of KLX Energy Services Holdings, Inc., as amended from time to time.

 

2.12                        Plan Administrator means the Committee.

 

2.13                        Plan Number means the plan number for the Plan, which is 502.

 

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2.14                        Plan Year means the twelve-month period commencing on January 1  and ending on the following December 31.

 

2.15                        Medical Care Expense shall have the meaning given to it in Section 4.3 of this Plan.

 

2.16                        Reimbursement Account means the aggregate amount that has accrued on behalf of a Participant for the reimbursement of Medical Care Expenses for a Plan Year, reduced by any such reimbursements actually made by Employer to, or on behalf of, such Participant during such Plan Year.

 

2.17                        Termination means the termination of a Participant’s employment as an Executive, whether by reason of change in job classification, discharge, layoff, voluntary termination, disability, retirement, death, or otherwise.

 

ARTICLE III
 ELIGIBILITY FOR PARTICIPATION

 

3.1                               Generally. An Executive shall be eligible to participate in the Plan at such times as shall be designated by the Committee.

 

3.2                               Termination of Participation. An Executive’s participation in the Plan shall cease immediately upon the earlier of Termination of his or her employment with Employer or his termination of participation in the Health Plan, and the balance (excluding any then pending unreimbursed expense claims) of his or her Reimbursement Account shall be forfeited. Upon termination of Plan participation, all claims previously incurred and eligible for reimbursement must be submitted not later than the last day of the third calendar month following the Plan Year in which such Executive’s Plan participation ends. Notwithstanding the foregoing, or anything to the contrary in this Plan, if an Executive has a separate agreement with the Company that provides for such Executive to continue to participate in the Plan or receive Plan Benefits for any period of time post-Termination, then for the purposes of this Plan only, a Termination of such Executive’s employment shall be deemed not to have occurred during such stated period of time.

 

ARTICLE IV
 BENEFITS

 

4.1                               Generally. Each Participant will be entitled to receive, for each Plan Year, reimbursement of Medical Care Expenses which are incurred during the Plan Year and which are not fully reimbursed under the Health Plan or by other medical plans (sometimes referred to herein as the “Benefits”). A Participant’s right to receive reimbursement of expenses incurred for himself or any Eligible Dependent during a Plan Year shall be limited to 10% of the Participant’s base salary as of the first day of the Plan Year (or, in the case of an Executive who first becomes a Participant during the Plan Year, the date on which the Executive becomes a Participant, or in the case of Benefits to be provided post-Termination pursuant to contract, then the amount shall be limited to 10% of the Participant’s annual base salary as of the day prior to the date of Termination, and such amount shall be renewed in full on January 1st of each succeeding calendar year for which the Participant is contractually entitled to receive such Benefits following his or her Termination).

 

2

 

4.2                               Benefits Limited to Expenses Incurred During Plan Year. For each Plan Year, the Benefits provided to a Participant pursuant to Section 4.1 hereof are only available to reimburse expenses which are incurred during such Plan Year after becoming a Participant in the Plan and, unless and solely to the extent otherwise provided in an Executive’s employment agreement, prior to Termination of employment with the Employer. Expenses incurred by a Dependent and submitted by Participant or his or her designee shall not be reimbursed unless incurred while an Eligible Dependent and during the period that the expenses incurred by the Participant are otherwise eligible for reimbursement. However, the Participant shall have until March 31 following the Plan Year to submit claims for expenses incurred by the Participant and his Eligible Dependents during the previous Plan Year.

 

4.3                               Medical Care Expenses. Medical Care Expenses shall include any expenses incurred by a Participant or his or her Eligible Dependents for related medical, health, hospice, dental or orthodontic, optical/vision or mental care and services either provided or to be provided pursuant to a contractual agreement with a licensed professional.

 

4.4                               Refund of Duplicate Reimbursement. If a Participant receives a reimbursement under this Plan, and reimbursement for the same specific expense is made under another Company plan, he or she will be required to refund to the Employer the reimbursement received under this Plan, but only to the extent of such other reimbursement amount. The amount, if any, refunded to the Employer pursuant to this Section 4.4 shall increase the Participant’s Reimbursement Account for the Plan Year in which the reimbursement was originally made.

 

ARTICLE V
 ADMINISTRATION

 

5.1                               Committee. The Plan shall be administered by the Benefits Committee appointed by the Board of Directors of the Company. The members of the Committee are eligible to participate in the Plan provided they are included in the definition of Executive in Section 2.8 of the Plan. The Committee shall have complete control of the administration of the Plan with all powers to enable it to carry out its duties in that respect, subject at all times to the limitations and conditions specified in or imposed by the Plan.

 

Each member of the Committee shall serve without compensation for services as such. Each member of the Committee may, consistent with Employer policy, receive reimbursement of expenses properly and actually incurred in carrying out the duties of the Committee. All such expenses incurred by the Committee, or a member thereof, in carrying out the duties of the Committee, shall be paid or reimbursed by the Employer.

 

In the event of any vacancy on the Committee ,the vacancy shall be filled by the Board of Directors. Any member of the Committee may resign by written notice to the Board of Directors and the Secretary of the Committee, and such resignation shall become effective at delivery or at any later date specified therein. The Secretary of the Committee need not be a member of the Committee.

 

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5.2                               Duties and Powers of the Committee. The Committee shall have the following duties, responsibilities and authority with respect to the administration of the Plan:

 

(a)                                 To construe and interpret the Plan, and decide all questions of eligibility and benefits (including all factual determinations relating thereto);

 

(b)                                 To prescribe procedures to be followed by Participants making elections;

 

(c)                                  To prepare and distribute information explaining the Plan to Participants;

 

(d)                                 To receive from the Employer and from Participants such information as shall be necessary for the proper administration of the Plan;

 

(e)                                  To furnish the Employer and Participants such annual reports with respect to the administration of the Plan as are reasonable and appropriate;

 

(f)                                   To keep reports of claims and disbursements for claims under the Plan;

 

(g)                                  To employ such persons, including, but not limited to, actuaries, accountants, and counsel, as it deems appropriate to perform such duties as may from time to time be required under ERISA and to render advice upon request with regard to any matters arising under the Plan;

 

(h)                                 To promulgate claim forms to be used by Participants;

 

(i)                                     To prepare and file any reports or returns with respect to the Plan required by applicable law;

 

(j)                                    To provide each Participant, upon such Participant’s request, with respect to each calendar year, a written statement showing the total reimbursements to the Participant under this Plan;

 

(k)                                 To correct any reimbursement of expenses made in error; and

 

(l)                                     To take all other steps deemed necessary to properly administer the Plan in accordance with its terms and the requirements of applicable law.

 

The Company shall furnish the Committee withal the data and information available which the Committee may reasonably require in order to perform its functions hereunder. The Committee may rely without question upon any such data or information furnished by the Employer. Any interpretation or other decision made by the Committee shall be final, binding and conclusive upon all persons in the absence of a contractual obligation in such Participant’s written agreement providing otherwise, or clear and convincing evidence that the Committee acted arbitrarily and capriciously.

 

5.3                               Delegation and Allocation of Responsibilities of the Committee.

 

(a)                                 The Committee may allocate its administrative responsibility and may designate persons who maybe either named fiduciaries or persons

 

4

 

other than named fiduciaries, to carry out such responsibilities. Any such allocation or designation shall be made in writing and shall:

 

(1)                                 Specifically identify the person or persons to whom a duty is allocated or delegated; and

 

(2)                                 Specifically identify the nature and scope of the duty allocated.

 

(b)                                 To the extent a duty or responsibility is allocated or delegated in accordance with the above procedure, the Committee shall not be liable for an act or omission of the person or persons carrying out said duty or responsibility except to the extent that the Committee:

 

(1)                                 violated its responsibility hereunder with respect to making the allocation or delegation, or permitting the allocation or delegation to continue;

 

(2)                                 knowingly participated in or attempted to conceal a known breach; or

 

(3)                                 having knowledge of such a breach, failed to make reasonable efforts under the circumstances to remedy said breach.

 

(c)                                  The named fiduciary or other person to whom a responsibility or duty of the Committee is allocated or delegated in accordance with Section 5.3(a) of the Plan shall be responsible only for the performance of that responsibility or duty according to the terms of the delegation or allocation, and shall not be liable for the act or omission of any other person with respect thereto unless:

 

(1)                                 By its failure to properly administer its specific responsibility he or she has enabled such other person to commit a breach of fiduciary responsibility;

 

(2)                                 he or she knowingly participates in, or knowingly undertakes to conceal, an act or omission of another person, knowing such act or omission to be a breach; or

 

(3)                                 having knowledge of the breach of another, he or she fails to make reasonable efforts under the circumstances to remedy said breach.

 

(d)                                 Any person or group of persons may serve in more than one fiduciary capacity with respect to the Plan.

 

ARTICLE VI
 CLAIMS PROCEDURE

 

6.1                               Submission of Claims. Participants shall make claims for reimbursements under the Plan in writing following such procedures, including deadlines and documentation requirements, and using such forms, as are prescribed by the Committee. Claims which are approved by the Committee shall be paid monthly as soon as administratively feasible. Participants may file claims for expenses

 

5

 

incurred during a Plan Year until the March 31 following the end of the Plan Year. Where a Participant has a Termination, the period for filing claims and the claims which may be filed are as described in Section 3.2 of the Plan unless provided otherwise in the Participant’s written agreement.

 

6.2                               Review of Denial of Claims. If any claim for Benefits under the Plan is wholly or partially denied, the claimant shall be given notice in writing of such denial within a reasonable period of time, but not later than 60 days after the claim is filed. Such notice shall set forth the following information:

 

(a)                                 The specific reason or reasons for the denial;

 

(b)                                 Specific reference to pertinent Plan provisions on which the denial is based;

 

(c)                                  A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary;

 

(d)                                 An explanation that a full and fair review by the Committee of the decision denying the claim maybe requested by the claimant or his authorized representative by filing with the Committee, within 90 days after such notice of denial has been received, a written request for such review; and

 

(e)                                  If such request is so filed, the claimant or his or her authorized representative ma review pertinent documents and submit issues and comments in writing within the same 90 day period specified in subsection 6.2(d) above.

 

The decision of the Committee, or a subcommittee appointed by the Chairman of the Committee, on review shall be made promptly, but not later than 60 days after the Committee’s receipt of the request for review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered as soon as possible, but not later than 120 days after receipt of the request for review. The decision on review shall be made in writing and shall include specific reasons for the denial, written in a manner calculated to be understood by the claimant, and shall include specific references to the pertinent Plan provisions on which the denial is based. Claims under the Plan do not involve medical judgment and are not eligible for external review.

 

ARTICLE VII
 FUNDING

 

All Benefits paid under this Plan shall be payable directly to applicable Participants or to the provider of the healthcare and solely out of the general assets of the Employer. The Employer shall not establish a trust or fund for the contribution to or payment of benefits under this Plan, except as mandated bylaw. The Employer shall have no obligation to insure any of the benefits under this Plan.

 

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ARTICLE VIII
 AMENDMENTS; TERMINATION

 

The Board of Directors and the Committee each shall have the right to alter, amend or terminate this Plan in whole or in part at any time it determines to be appropriate, however such action shall not affect the obligations of the Company to any Executive pursuant to a separate written agreement, which shall continue in full force in accordance with its terms and intent.

 

Neither the Board of Directors nor the Committee shall amend, alter, or terminate this Plan retroactively except to comply with applicable laws.

 

In the event of the Plan termination, a Participant’s eligible expenses shall be dealt with in the manner set forth in Section 3.2 hereof.

 

ARTICLE IX
 MISCELLANEOUS

 

9.1                               No Employment Contract. Nothing in this Plan shall be construed as a contract of employment between the Employer and any Executive, nor as a guarantee of any Executive to be continued in the employment of the Employer, nor as a limitation on the right of the Employer to discharge any of its Executives with or without cause.

 

9.2                               No Assignment. A Participant’s rights, interests or benefits under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, prior to being received by the persons entitled thereto under the terms of this Plan, and any such attempt shall be void.

 

9.3                               Choice of Law. This Plan shall be construed, administered and governed in all respects under applicable federal law, and to the extent not pre-empted by federal law, under the laws of the State of Florida.

 

9.4                               Severability. If any provision of this Plan shall be held by court of competent jurisdiction to be invalid or unenforceable, the remaining provisions shall continue to be fully effective.

 

9.5                               Gender, Singular and Plural References. References in this Plan to one gender shall include both genders, singular references shall include the plural, and plural references shall include the singular, unless the context clearly requires otherwise.

 

9.6                               Tax. Benefits under the Plan are subject to income and employment taxes.

 

ARTICLE X
 ADOPTION BY EMPLOYERS

 

10.1                        Method of Adoption. Any affiliate of the Company may, with the written consent of the Company, adopt this Plan.

 

10.2                        Delegation Upon Adoption. Upon the effective date of the Plan with respect to an Employer which adopts the Plan, such Employer delegates all fiduciary

 

7

 

and other responsibilities allocated under the Plan to the Board of Directors, Committee and fiduciaries appointed by the Committee pursuant to Section 5.3.

 

10.3                        Employer Contributions. Each Employer, upon adopting the Plan, shall have the obligation to pay, or to have paid on its behalf, the Benefits required hereunder with respect to its own Executives and no other Employer shall have such obligation.

 

10.4                        Withdrawal or Removal. Any Employer may withdraw its adoption of the Plan at any time without affecting the other Executives in the Plan by delivering to the Board of Directors a copy of resolutions of its board of directors to such effect. The Board of Directors may, in its absolute discretion, terminate the participation in the Plan of any Employer at any time such Employer fails to discharge its obligations under the Plan.

 

ARTICLE XI
 GENERAL INFORMATION

 

	
Plan Name:
    	
 
    	
Medical Care Reimbursement Plan for Executives of KLX   Energy Services Holdings, Inc.
    
	
 
    	
 
    	
 
    
	
Employer Name and Address:
    	
 
    	
KLX Energy Services Holdings, Inc.
   1300 Corporate Center Way
   Wellington, FL 33414
   561-383-5100
    
	
 
    	
 
    	
 
    
	
Employer Identification Number:
    	
 
    	
36-4904146
    
	
 
    	
 
    	
 
    
	
Agent for Service of Legal Process:
    	
 
    	
KLX Energy Services Holdings, Inc.
   ATTN: Corporate Secretary
   1300 Corporate Center Way
   Wellington, FL 33414
   561-383-5100
    
	
 
    	
 
    	
 
    
	
Plan Administrator:
    	
 
    	
Benefits Committee of KLX Energy Services   Holdings, Inc.
   1300 Corporate Center Way
   Wellington, FL 33414
   561-383-5100
    
	
 
    	
 
    	
 
    
	
Plan Number:
    	
 
    	
502
    
	
 
    	
 
    	
 
    
	
Plan Effective Date:
    	
 
    	
September 13, 2018
    
	
 
    	
 
    	
 
    
	
Plan Year:
    	
 
    	
January 1st to December 31st.
    
	
 
    	
 
    	
 
    
	
Plan Type:
    	
 
    	
The Plan is a welfare benefit plan that reimburses   certain medical expenses for executives who are members of a select group of   management or highly compensated employees.
    

 

8

 

	
Plan Administration:
    	
 
    	
The Company pays all benefits under the Plan and   there are no employee contributions. The Plan is self-insured and all   benefits are paid from the Company’s general assets. The Company administers   the Plan.
    

 

IN WITNESS WHEREOF, the Employer has caused this Plan to be signed by the person named below.

 

	
 
    	
KLX ENERGY SERVICES HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
/s/ Thomas P. McCaffrey
    
	
 
    	
By:
    	
Thomas P. McCaffrey
    
	
 
    	
Title:
    	
Senior Vice President and Chief Financial   Officer
    

 

9Exhibit 10.12

 

KLX ENERGY SERVICES HOLDINGS, INC.

 

EXECUTIVE RETIREE MEDICAL AND DENTAL PLAN

 

September 13, 2018

 

ARTICLE I
 FORWARD AND PURPOSE

 

This Executive Retiree Medical and Dental Plan (the “Plan”) is hereby adopted effective September 13, 2018, by KLX Energy Services Holdings, Inc. (the “Company”) to provide medical and dental coverage for a select group of retired senior executives of the Company and their Dependents, as part of the existing KLX Energy Services Medical Benefits Program and KLX Energy Services Dental Program.

 

ARTICLE II
 DEFINITIONS

 

The following words and phrases have meanings set forth below, unless a different meaning is plainly required by the context:

 

“Applicable Program” means the KLX Energy Services Holdings, Inc. Medical Benefits Program and KLX Energy Services Holdings, Inc. Dental Program, the employer-sponsored medical and dental benefit plans which are part of the KLX Energy Services Employee Benefit Plan covering active employees of the Company under which the Retiree and his or her Eligible Dependents have medical and dental coverage.

 

“Board of Directors” means the Board of Directors of the Company.

 

“Change of Control” has the same meaning as that term is defined in the Retiree’s employment agreement. If no change of control provision exists in Retiree’s employment agreement or Retiree does not have an employment agreement, the first of the following to occur will be a Change of Control with regard to such Retiree: (1) a change in ownership of the Company on the date that any one person or more than one person acting as a group acquires stock that results in ownership by such person/group of more than 50% of the total fair market value or total voting power of the Company stock; or (2) a change in the ownership of a substantial portion of the Company’s assets on the date that any one person or more than one person acting as a group acquires assets from the Company that have a total gross fair market value equal to more than 1/3 of the total gross fair market value of all the assets of the Company immediately prior to such acquisition.

 

1

 

“Code” means the Internal Revenue Code of 1986 and regulations and rulings issued thereunder, as amended from time to time. Reference to any section or subsection of the Code includes reference to any comparable or succeeding provisions of any legislation that amends, supplements or replaces such section or subsection.

 

“Company” means KLX Energy Services Holdings, Inc. or its successor.

 

“Eligible Dependent” means any of the following:

 

(1)                                 A Participant’s spouse to whom the Participant is married on his or her date of retirement. Subsequent to retirement, said spouse shall cease to be an Eligible Dependent six months and one day after the following: upon divorce or legal separation; subsequent to the death of a Participant if the spouse remarries; or upon becoming eligible for Medicare.

 

(2)                                 A dependent child of the Participant who meets the definition of a “Dependent” under the Applicable Program.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, Public Law 93-406, 29 U.S.C. § 1001 et seq, and regulations and rulings issued thereunder, as amended from time to time.

 

“Participant” means a Retiree who has continued participation in the Applicable Program, past the date coverage in the Applicable Program as an active employee would have otherwise terminated by commencing participation i n this Plan and has not terminated participation as provided in Section 3.2.

 

“Plan” means the KLX Energy Services Holdings, Inc. Executive Retiree Medical and Dental Plan as set forth herein, together with any and all amendments and supplements thereto. This Plan is not a separate plan under ERIS A, but is a program offered to Retirees under which they may continue their and their Eligible Dependents’ coverage under the Applicable Program.

 

“Plan Administrator” means the individual who shall be an officer of the Company, or a Committee, appointed by the Board of Directors of the Company.

 

“Plan Year” means the twelve-month period beginning each January 1 and ending on the following December 31.

 

“Retiree” means:

 

(1)                                 A former employee who was employed by the Company in one of the following positions at the time of employment termination:

 

Chairman of the Board /Chief Executive Officer/President

Chief Financial Officer & Senior Vice President

General Manager & Vice President

Corporate Treasurer & Senior Director of Investor Relations

Corporate Chief Information Officer

Corporate Vice President - Tax

Corporate Vice President - Law & Secretary

Vice President of Human Resources

 

2

 

Corporate Vice President of Business Development and Financial Reporting

Corporate Vice President of Finance & Corporate Controller

 

and who had at least 10 Years of Service when his or her employment
 terminates; or

 

(i)                                    an employee of the Company in one of the positions listed in (i) above, employed at the time there is a Change of Control, whether or not he or she has 10 Years of Service, who ceases to be employed within 6 months of the date of Change of Control as a result thereof either because his or her employment is involuntarily terminated or because he or she resigns employment; or

 

(ii)                                 an employee of the Company in one of the positions listed in (i) above, pursuant to the Change of Control terms of his or her employment agreement, whether or not he or she has 10 Years of Service; or

 

(2)                                 Any former employee who was employed by the Company and is determined in the Plan Administrator’s discretion to be eligible to participate in the Plan

 

“Year of Service” means a computation period during which the employee completes at least 1,000 hours of service with the Company or its predecessor, or an affiliate of the Company. For purposes of determining a Year of Service, the initial computation period shall be the 12-consecutive month period beginning on the date the Employee first performs an hour of service (the “employment commencement date”). The succeeding computation periods commence on the first anniversary of the employment commencement date and on each anniversary thereafter.

 

ARTICLE III
 PARTICIPATION

 

3.1          Commencement of Participation. A Retiree shall commence participation in this Plan on the date of said Retiree’s retirement from the Company. In order to participate in the Plan, a Retiree must commence participation at the time he or she terminates employment with the Company and maintain continuous participation in the Plan. A Retiree may elect to cover any Eligible Dependent under this Plan at the same time or times that an active employee is permitted to cover Eligible Dependents. If an employee who would become a Retiree under this Plan dies while employed, regardless of said employee’s Years of Service, then his or her spouse and dependents who are otherwise Eligible Dependents as of said employee’s date of death, shall be eligible to participate under this Plan so long as they elect to participate and remain Eligible Dependents.

 

3.2          Termination of Participation. A Participant shall continue to participate in this Plan so long as the applicable premiums are paid on a quarterly basis by the 1st day of the beginning of each calendar quarter, until he or she becomes eligible for Medicare. A Participant’s dependent can continue to participate in the Plan as long as he or she is an Eligible Dependent, so long as applicable premiums are paid on a

 

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quarterly basis by the 1st day of the beginning of each calendar quarter. If premiums are not paid when due, by the 15th day from the beginning of said quarter, the Company will notify the Participant/Eligible Dependent that premiums have not been timely paid. If the Participant/Eligible Dependent does not pay the premiums by the 15th day from the date notice is given, coverage will cease.

 

3.3          COBRA. Participation under this Plan shall be concurrent with any continuation of group health coverage required by the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), as amended, ERISA § 601et seq.

 

ARTICLE IV
 BENEFIT STRUCTURE

 

The Plan provides medical and dental benefits under and as set forth in the Programs. This Plan is incorporated by reference into said Applicable Programs, which Applicable Programs may be amended from time to time at the discretion of the Plan Administrator.

 

ARTICLE V
 PARTICIPANT COST

 

For the elected medical and dental coverage, a Retiree and his or her Eligible Dependents shall pay the entire premium cost for their elected coverage (which premium for active employees may be paid in part by the Company and in part by the employee).

 

The premium paid by the Retiree or Eligible Dependent will change at the same time the premiums under the Applicable Program changes.

 

ARTICLE VI
 COVERAGE

 

Subject to the provisions of Article V, the Plan only provides the coverage that the Company provides for its active employees and their eligible dependents under the Applicable Programs. The benefit under this Plan is the ability to continue participation in the Applicable Program to a date after the date coverage would otherwise terminate due to termination of employment. The actual medical and dental benefits are paid under the Applicable Program and are set forth in the summary plan description (SPD) for the Applicable Program, as amended from time to time by the Plan Administrator and communicated to Retirees. Any interpretation as to benefit coverage shall be decided under the terms of the Applicable Program.

 

ARTICLE VII
 ADMINISTRATION AND CLAIMS

 

The Plan is a part of and shall be administered as part of the Applicable Programs. Claims shall be made and appealed in accordance with the provisions of the Applicable Program.

 

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ARTICLE VIII
 AMENDMENT OR TERMINATION OF THE PLAN

 

This Plan has been established by the Company with the intent that it shall be continued in operation indefinitely. However, the Company has reserved the right at any time by an instrument in writing, to amend or terminate the Applicable Programs for its active employees and it reserves the right to amend or terminate this Plan, in its complete discretion at any time.

 

The Company also reserves the right to amend the Plan to eliminate benefits as to any individual who is not holding a position listed in the definition of” Retiree” in Article 11 as of the date of such amendment.

 

The above notwithstanding, if there is a Change of Control, the Company and its successor cannot change the terms of this Plan or eliminate the Plan as to any individual who is a Retiree or Eligible Dependent as of the date of the Change of Control or any individual who becomes a Retiree or Eligible Dependent following the Change of Control, and no changes made within 6 months prior to the Change of Control will be effective as to such individuals.

 

ARTICLE IX
 GENERAL PROVISIONS

 

9.1          No Guarantee of Non-Taxability. Neither the Company nor the Plan Administrator shall in any way be liable for any taxes or other liability incurred by a Participant or anyone claiming through him or her by virtue of participation in this Plan.

 

9.2          Delegation of Authority by the Company and Administrator. Whenever the Company or the Plan Administrator under the terms of this Plan is permitted or required to do or perform any act, matter or thing, it shall be done and performed by any officer or individual thereunto duly authorized by the Company or Plan Administrator.

 

9.3          Applicable Law. This Plan shall be construed according to the laws of the State of Florida and all provisions hereof shall be administered according to, and its validity and enforceability shall be determined under, the laws of Florida, except where pre-empted by the Code, ERISA or other federal law.

 

9.4          Headings. The headings of sections and subsections are tor ease of reference only and shall not be construed to limit or modify the detailed provisions herein.

 

9.5          Entire Plan Stated. This document sets forth the entire Plan. No other employee benefit or employee plan that is or may hereafter be maintained by the Company on a non-elective basis, other than the Applicable Programs, shall constitute a part of this Plan.

 

9.6          Construction. As used in this Plan, the masculine gender includes feminine gender, and the singular includes the plural, unless the context clearly indicates otherwise. The words “hereof,” and other similar compounds of the word “here” mean and refer to the entire Plan, not to any particular provision or section.

 

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ARTICLE X
 SIGNATURE

 

Adoption by Company. This Plan is hereby adopted, effective September 13, 2018, by its officer thereunto duly authorized.

 

	
 
    	
KLX ENERGY SERVICES   HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
/s/ Thomas P. McCaffrey
    
	
 
    	
 
    
	
 
    	
Name:
    	
Thomas P. McCaffrey
    
	
 
    	
Title:
    	
Senior Vice President and Chief Financial   Officer
    

 

Acknowledged and approved by the Plan Administrator, this 13th day of September, 2018.

 

	
Plan Administrator:
    
	
 
    	
 
    
	
 
    	
KLX Energy Services   Holdings, Inc. Benefits Committee
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Thomas P. McCaffrey
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Thomas P. McCaffrey
    
	
 
    	
Title:
    	
Senior Vice President and Chief Financial   Officer
    

 

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