Document:

EX-10.2

 Exhibit 10.2 

TAX MATTERS AGREEMENT 

By and Between 

NATIONAL OILWELL VARCO, INC. 

and 
 NOW INC. 

Dated as of May 29, 2014 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	 ARTICLE I DEFINITIONS
	  	 	2	  
		
	 ARTICLE II PAYMENT OF TAXES
	  	 	7	  
	 Section 2.01
	 	Income Taxes	  	 	7	  
	 Section 2.02
	 	Spin-Off Taxes	  	 	7	  
	 Section 2.03
	 	Other Taxes	  	 	8	  
	 Section 2.04
	 	Certain Income Taxes	  	 	9	  
	 Section 2.05
	 	Allocation of Certain Income Taxes and Income Tax Items	  	 	9	  
	 Section 2.06
	 	Refunds	  	 	10	  
	 Section 2.07
	 	Carrybacks	  	 	11	  
		
	 ARTICLE III PREPARATION AND FILING OF TAX RETURNS
	  	 	12	  
	 Section 3.01
	 	NOV Responsibility	  	 	12	  
	 Section 3.02
	 	SpinCo Responsibility	  	 	12	  
	 Section 3.03
	 	Tax Accounting Practices	  	 	13	  
	 Section 3.04
	 	Right to Review Tax Returns	  	 	13	  
		
	 ARTICLE IV TAX-FREE STATUS OF DISTRIBUTION
	  	 	13	  
	 Section 4.01
	 	Covenants	  	 	13	  
	 Section 4.02
	 	Procedures Regarding Opinions and Rulings	  	 	16	  
		
	 ARTICLE V TAX CONTESTS; INDEMNIFICATION; COOPERATION
	  	 	16	  
	 Section 5.01
	 	Notice	  	 	16	  
	 Section 5.02
	 	Control of Tax Contests	  	 	17	  
	 Section 5.03
	 	Indemnification Payments	  	 	18	  
	 Section 5.04
	 	Interest on Late Payments	  	 	18	  
	 Section 5.05
	 	Treatment of Payments	  	 	18	  
	 Section 5.06
	 	Expenses	  	 	19	  
	 Section 5.07
	 	Cooperation	  	 	19	  
	 Section 5.08
	 	Confidentiality	  	 	20	  
	 Section 5.09
	 	Retention of Tax Records	  	 	20	  
		
	 ARTICLE VI RESOLUTION OF DISPUTES
	  	 	20	  
	 Section 6.01
	 	Tax Disputes	  	 	20	  
		
	 ARTICLE VII MISCELLANEOUS PROVISIONS
	  	 	21	  
	 Section 7.01
	 	Disposition of SpinCo Subsidiaries	  	 	21	  
	 Section 7.02
	 	Complete Agreement; Representations	  	 	21	  
	 Section 7.03
	 	Costs and Expenses	  	 	21	  
	 Section 7.04
	 	Governing Law	  	 	21	  
	 Section 7.05
	 	Notices	  	 	22	  
	 Section 7.06
	 	Amendment, Modification or Waiver	  	 	22	  
	 Section 7.07
	 	No Assignment; Binding Effect	  	 	23	  
	 Section 7.08
	 	Counterparts	  	 	23	  

  
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	 Section 7.09
	 	Specific Performance	  	 	23	  
	 Section 7.10
	 	Interpretation; Conflict With Ancillary Agreements	  	 	23	  
	 Section 7.11
	 	Severability	  	 	23	  
	 Section 7.12
	 	Survival	  	 	23	  
	 Section 7.13
	 	No Double Recovery	  	 	24	  
	 Section 7.14
	 	Jurisdiction	  	 	24	  

  
 ii 

 TAX MATTERS AGREEMENT 

This TAX MATTERS AGREEMENT (this “Agreement”), dated as of May 29, 2014, by and between National Oilwell Varco, Inc., a
Delaware corporation (“NOV”), and NOW Inc., a Delaware corporation whose sole shareholder is NOV (“SpinCo” and, together with NOV, each, a “Party” and collectively, the “Parties”).

 RECITALS 
 WHEREAS,
the Board of Directors of NOV has determined that it will be appropriate and desirable to separate the SpinCo Business from NOV; 
 WHEREAS,
as of the date of this Agreement, the NOV affiliated group for U.S. federal income tax purposes includes SpinCo and its subsidiaries; 

WHEREAS, the Parties (or their predecessors-in-interest) have entered into the Separation and Distribution Agreement (as defined herein),
pursuant to which NOV has contributed to SpinCo the stock and assets associated with the SpinCo Business (as defined herein) in exchange for shares of common stock of SpinCo (the “Contribution”); 

WHEREAS, NOV intends to distribute on a pro rata basis to its shareholders all of the shares of stock of SpinCo (the
“Distribution”); 
 WHEREAS, in order to effect the Contribution and Distribution, the Parties have engaged in various
internal transfers of assets and stock including, without limitation, the Internal Spins (as defined below); 
 WHEREAS, the Parties intend
that the Contribution, Distribution and each of the Internal Spins qualify for non-recognition of gain or loss pursuant to one or more of Sections 368(a), 351, 354, 355, 361 or 1032 of the U.S. Internal Revenue Code of 1986, as amended (the
“Code”); 
 WHEREAS, as a result of and upon the Distribution, SpinCo and its subsidiaries will cease to be members of the
NOV Group (as defined herein); and 
 WHEREAS, the Parties desire to allocate the Tax responsibilities, liabilities and benefits of
transactions that occur on or prior to, and that may occur after, the date on which the Distribution occurs (the “Distribution Date”) and to provide for and address certain other Tax matters. 

  
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 NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, the
Parties (each on behalf of itself and each of its Affiliates) hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 
 Definition
of Terms. For purposes of this Agreement (including the recitals hereof) the following terms shall have the following meanings (such meanings to apply equally to both the singular and the plural forms of the terms defined). All Section and
Exhibit references are to this Agreement unless otherwise stated. Capitalized terms used in this Agreement but not defined herein shall have the meanings ascribed to such terms in the Separation and Distribution Agreement. 

“Active Trade or Business” means the active trade or business of SpinCo and its subsidiaries as conducted immediately prior
to the Distribution and that form the basis of the Tax Opinions. 
 “Adjustment Request” means any formal or informal claim
or request filed with any Governmental Authority for any Refund, underpayment or overpayment of Tax, or any change in available Tax Attributes. 

“Affiliate” of any Person means any other Person that, immediately after the Distribution, is directly or indirectly
“controlled” by any of (i) the Person in question, (ii) any Person of which the Person in question is an Affiliate under clause (i), or (iii) any Affiliate under clause (i) of a Person described in clause (ii). For
purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities or other
interests, by contract or otherwise. 
 “Agreement” has the meaning provided in the first sentence of this Agreement. 

“Ancillary Agreement” has the meaning set forth in the Separation and Distribution Agreement. 

“Code” has the meaning set forth in the recitals. 

“Contribution” has the meaning set forth in the recitals. 

“Controlled Corporation” means, with respect to each Spin-Off, the corporation the stock of which is distributed by the
Distributing Corporation for such Spin-Off to the shareholder(s) of such Distributing Corporation. The Controlled Corporation for each Spin-Off is either SpinCo or Foreign SpinCo. 

“Distributing Corporation” means, with respect to each Spin-Off, the corporation that distributes to its shareholder(s) the
stock of the Controlled Corporation for such Spin-Off. 
 “Distribution” has the meaning set forth in the recitals. 

“Distribution Date” has the meaning set forth in the recitals. 

“External Spin” means the Contribution and Distribution, taken together. 

  
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 “Final Determination” means the final resolution of liability for any Tax for
any taxable period by or as a result of (i) a final and unappealable decision, judgment, decree or other order by any court of competent jurisdiction; (ii) a final settlement with the IRS, a closing agreement or accepted offer in
compromise under Code Sections 7121 or 7122, or a comparable arrangement under the laws of another jurisdiction; (iii) any allowance of a Refund in respect of an overpayment of Tax, but only after the expiration of all periods during which such
amount may be recovered by the Taxing Authority imposing the Tax; or (iv) any other final disposition, including by reason of the expiration of the applicable statute of limitations or by mutual agreement of the applicable Party, on one hand,
and the IRS or other applicable Governmental Authority, on the other hand. 
 “Foreign SpinCo” has the meaning set forth in
the Representation Letter. 
 “Governmental Authority” means any federal, state, local, foreign or international court,
government, department, commission, board, bureau or agency, or any other regulatory, self-regulatory, administrative or governmental organization or authority. 

“Group” means the NOV Group and/or the SpinCo Group, as the context requires. 

“Income Taxes” means all federal, state, local, and foreign income or franchise Taxes or other Taxes based on income or net
worth. 
 “Indemnifying Party” has the meaning set forth in Section 5.01. 

“Indemnitee” has the meaning set forth in Section 5.01. 

“Internal Spin” means any of (i) the First Domestic Contribution and First Domestic Distribution (as such terms are
defined in the Representation Letter), taken together, (ii) the Foreign Contribution and Foreign Distribution (as such terms are defined in the Representation Letter), taken together or (iii) the Second Domestic Contribution and Second
Domestic Distribution (as such terms are defined in the Representation Letter), taken together. 
 “IRS” means the U.S.
Internal Revenue Service. 
 “Joint Return” means any Return that includes both a member of the NOV Group and a member of
the SpinCo Group. 
 “Law” means any applicable foreign, federal, national, state, provincial or local law (including
common law), statute, ordinance, rule, regulation, code or other requirement enacted, promulgated, issued or entered into, or act taken, by a Governmental Authority. 

“NOV” has the meaning provided in the first sentence of this Agreement. 

“NOV Group” means NOV and each of its Affiliates as of the date hereof, and any corporation or other entity that may become
part of such Group from time to time. For the avoidance of doubt, the NOV Group excludes any entity that is a member of the SpinCo Group. 

  
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 “Other Taxes” means all Taxes other than Income Taxes, including (but not
limited to) transfer, sales, use, excise, payroll, property, and unemployment Taxes. 
 “Party” or “Parties” has
the meaning provided in the first sentence of this Agreement. 
 “Past Practices” has the meaning set forth in
Section 3.03(a). 
 “Person” means any natural person, corporation, general or limited partnership, limited liability
company or partnership, joint stock company, joint venture, association, trust, bank, trust company, land trust, business trust or other organization, whether or not a legal entity, or any Governmental Authority, without regard to whether any entity
is treated as disregarded for U.S. federal income tax purposes. 
 “Post-Distribution Tax Period” means any taxable period
(or portion thereof) beginning after the Distribution Date. 
 “Pre-Distribution Tax Period” means any taxable period (or
portion thereof) ending on or before the Distribution Date. 
 “Prime Rate” means the “prime rate” published in
the “Money Rates” section of The Wall Street Journal. If The Wall Street Journal ceases to publish the “prime rate,” then the Parties shall mutually agree to an equivalent publication that publishes such “prime
rate,” and if such “prime rate” is no longer generally published or is limited, regulated or administered by a Governmental Authority, then a comparable interest rate index mutually agreed to by the Parties. 

“Proposed Acquisition Transaction” has the meaning set forth in Section 4.02(b)(i). 

“Refund” means any cash refund of Taxes or reduction of Taxes by means of credit, deduction, offset or otherwise. 

“Reportable Transaction” means a reportable or listed transaction as defined in Section 6011 of the Code or the Treasury
Regulations promulgated thereunder. 
 “Representation Letter” means that certain letter provided by NOV and SpinCo in
connection with the Tax Opinions regarding “Certificate of Facts and Representations for the National Oilwell Varco Spin-Off Opinion” and dated on or about May 29, 2014. 

“Restricted Period” means the period beginning on the date of this Agreement and ending on, and including, the last day of
the two-year period following the Distribution Date. 
 “Ruling” means all private letter rulings granted by the IRS or any
other taxing authority relating to the Transactions (whether granted prior to, on or after the date hereof), requests for such rulings, including all supplemental ruling requests and information submissions, and any exhibit to any of the foregoing.

  
 4 

 “Satisfactory Guidance” means either a ruling from the IRS or an Unqualified Tax
Opinion, at the election of SpinCo, in either case reasonably satisfactory to NOV in both form and substance, including with respect to any underlying assumptions or representations. For the avoidance of doubt, this definition is intended to allow
NOV to prevent SpinCo from taking the action that is the subject of a ruling from the IRS or an Unqualified Tax Opinion, if NOV determines in good faith that there is any Tax risk to it from such action based upon either (1) any uncertainty
concerning any underlying assumptions or representations in such ruling or opinion or (2) any legal uncertainty referred to in advice it receives from its counsel. 

“Separate Return” means (i) in the case of the SpinCo Group, a Tax Return of any member of that Group (including any
consolidated, combined, affiliated or unitary Return) that does not include, for all or any portion of the relevant taxable period, any member of the NOV Group and (ii) in the case of the NOV Group, a Tax Return of any member of that Group
(including any consolidated, combined, affiliated or unitary Return) that does not include, for all or any portion of the relevant taxable period, any member of the SpinCo Group. 

“Separation and Distribution Agreement” means the Separation and Distribution Agreement, as amended from time to time, by and
between NOV and SpinCo dated as of May 29, 2014. 
 “SpinCo” has the meaning provided in the first sentence of this
Agreement. 
 “SpinCo Business” has the meaning set forth in the Separation and Distribution Agreement. 

“SpinCo Capital Stock” means (i) all classes or series of capital stock of SpinCo, including common stock and all other
instruments treated as equity in SpinCo for U.S. federal Income Tax purposes and (ii) all options, warrants and other rights to acquire such capital stock. 

“SpinCo Group” means SpinCo and each of its Affiliates as of the date hereof, and any corporation or other entity that may
become part of such Group from time to time. For the avoidance of doubt, the SpinCo Group excludes any entity that is a member of the NOV Group. 

“Spin-Off” means each of the External Spin and the Internal Spins. 

“Spin-Off Taxes” means all (i) Taxes of any member of the NOV Group or the SpinCo Group resulting from, or arising in
connection with, the failure of any Spin-Off to have Tax-Free Status, (ii) Taxes of the type described in clause (i) of any third party for which any member of the NOV Group or the SpinCo Group is or becomes liable, and
(iii) reasonable out of pocket legal, accounting and other advisory and court fees in connection with liability for Taxes described in clauses (i) or (ii). 

“Straddle Period” means any taxable period beginning on or before the Distribution Date and ending after the Distribution
Date. 
 “Tax Advisor” means a U.S. Tax counsel or other Tax advisor of recognized national standing reasonably acceptable
to both Parties. 

  
 5 

 “Tax Attribute” means a net operating loss, net capital loss, investment credit,
foreign Tax credit, excess charitable contribution, general business credit or any other item of loss, deduction or credit that could reduce a Tax liability. 

“Tax Contest” means an audit, review, examination or any other administrative or judicial proceeding with the purpose or
effect of determining or redetermining Taxes (including any administrative or judicial review of any Adjustment Request). 
 “Tax
Dispute” means any dispute arising in connection with this Agreement. 
 “Tax-Free Status” means the qualification
of each Spin-Off (A) as a transaction qualifying for non-recognition of gain pursuant to Code Sections 355(a) and 368(a)(1)(D), (B) as a transaction in which the stock of the Controlled Corporation for such Spin-Off is “qualified
property” for purposes of Code Sections 355(c) and 361(c), (C) in which the Distributing Corporation for such Spin-Off and the shareholders of such Distributing Corporation recognize no income or gain for U.S. federal Income Tax purposes
pursuant to Code Sections 354, 355, 361 and 1032 and (D) for tax-free treatment under comparable provisions of state and local law. For the avoidance of doubt, recognition of income or gain that relates to intercompany items shall not cause a
Spin-Off to fail to achieve Tax-Free Status. 
 “Tax Item” means any item of income, gain, loss, deduction, credit,
recapture of credit, or any other item (including the basis or adjusted basis of property) which increases or decreases Income Taxes paid or payable in any taxable period. 

“Tax Opinions” means the Tax opinions rendered by Locke Lord LLP and NOV’s tax advisors relating to the Transactions.

 “Tax Return” or “Return” means, with regard to Taxes, any return, filing, report, questionnaire,
information statement, claim for Refund, or other document required or permitted to be filed, including any amendments that may be filed, for any taxable period with any Taxing Authority. 

“Taxes” means any income, gross income, gross receipts, profits, capital stock, franchise, withholding, payroll, social
security, workers compensation, unemployment, disability, property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, import, export, value added, alternative minimum, estimated or other tax (including
any fee, assessment, or other charge in the nature of or in lieu of any tax but excluding, for the avoidance of doubt, any assessment under applicable escheat, abandoned property or unclaimed property laws) imposed by any Governmental Authority or
political subdivision thereof, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“Taxing Authority” means any Governmental Authority imposing Taxes. 

“Transactions” means the Spin-Offs, the transactions contemplated by the Separation and Distribution Agreement, and any other
transfer of assets (whether by contribution, sale or otherwise) between any member of the NOV Group and any member of the SpinCo Group in connection with the Contribution or the Distribution. 

  
 6 

 “Unqualified Tax Opinion” means an unqualified “will” opinion of a Tax
Advisor that permits reliance by NOV. The Tax Advisor, in issuing its opinion, shall be permitted to rely on the validity and correctness, as of the date given, of any previously issued Tax Opinions or Rulings (if any), unless such reliance would be
unreasonable under the circumstances. 
 ARTICLE II 

PAYMENT OF TAXES 

Section 2.01 Income Taxes. 

(a) Except as otherwise provided hereinafter in this Section 2.01 and in Sections 2.02 and 2.04, NOV shall be responsible for, and shall
indemnify and hold harmless the SpinCo Group from and against any liability for, all Income Taxes (i) of SpinCo and its Affiliates for any Pre-Distribution Tax Period; (ii) of SpinCo and its Affiliates for any Straddle Period, but only to
the extent allocated to NOV pursuant to Section 2.05; or (iii) 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 an
Affiliate solely as a result of such company being a member of a consolidated, combined, or unitary group with NOV or any NOV Affiliate during any Tax period. 

(b) SpinCo shall be responsible for, and shall indemnify and hold harmless the NOV Group from and against any liability for, all Income Taxes
(i) of SpinCo and its Affiliates which are not the responsibility of NOV pursuant to Section 2.01(a) (including, without limitation, Income Taxes for Post–Distribution Tax Periods of SpinCo and its Affiliates); and (ii) of NOV
and its Affiliates attributable to acts or omissions of SpinCo or its Affiliates taken after the Distribution (other than acts or omissions that are (A) in the ordinary course of business, (B) otherwise contemplated by the Separation and
Distribution Agreement or any Ancillary Agreement or (C) specifically addressed in Section 2.02 below, which shall govern liability for Spin-Off Taxes). 

Section 2.02 Spin-Off Taxes. 

(a) SpinCo shall be liable, and shall indemnify and hold harmless the NOV Group from and against any liability, for any Spin-Off Taxes that are
attributable to (i) any inaccurate statement or representation of fact or intent (or omission to state a material fact) in a letter or certificate that is provided by any member of the SpinCo Group prior to, on or after the date hereof, and
that forms the basis for the Tax Opinions or Rulings (if any); (ii) any act or omission by the SpinCo Group after the date of this Agreement inconsistent with the covenants set forth in this Agreement, any other Ancillary Agreement or the
Separation and Distribution Agreement; or (iii) any other act or omission by the SpinCo Group after the date of this Agreement, including any act or omission that would have resulted in SpinCo being in breach of Section 4.01(b) but for the
receipt by SpinCo of a Ruling from the IRS, an Unqualified Tax Opinion or consent of NOV. 

  
 7 

 (b) NOV shall be liable, and shall indemnify and hold harmless the SpinCo Group from and against
any liability, for any Spin-Off Taxes attributable to (i) any inaccurate statement or representation of fact or intent (or omission to state a material fact) in a letter or certificate that is provided by any member of the NOV Group prior to,
on or after the date hereof and that forms the basis for the Tax Opinions or Rulings (if any); (ii) any act or omission by the NOV Group after the date of this Agreement inconsistent with the covenants set forth in this Agreement, the
Separation and Distribution Agreement or any Ancillary Agreement; or (iii) any other act or omission by the NOV Group after the date of this Agreement. 

(c) To the extent that liability for any Spin-Off Taxes is subject to indemnity under both paragraphs (a) and (b) above, such
liability shall be shared by NOV and SpinCo according to relative fault. If neither Party is at fault, they shall share the liability equally. 

Section 2.03 Other Taxes. 

(a) Subject to Section 2.03(c), below, NOV shall be responsible for all Other Taxes attributable to NOV and its Affiliates (other than
SpinCo and its Affiliates) and to its business activities other than the SpinCo Business, or resulting from the Transactions, for all Pre–Distribution Tax Periods, Straddle Periods, and Post–Distribution Tax Periods. 

(b) Subject to Section 2.03(c), below, SpinCo shall be responsible for all Other Taxes attributable to SpinCo and its Affiliates or to
the SpinCo Business for all Pre–Distribution Tax Periods, Straddle Periods, and Post–Distribution Tax Periods. 
 (c) In each case
the responsibilities of 2.03(a) and 2.03(b) shall be consistent with the principles described below: 
 (i) Transfer Taxes. 

(A) The NOV Group shall be liable, and shall indemnify the SpinCo Group, for any stamp, sales, use, gross receipts, value-added, real estate
transfer or other transfer Taxes imposed in connection with the Transactions. 
 (B) If business operations or assets of a NOV Group entity
are transferred to a SpinCo Group entity as part of the Transactions, the transferee shall assume any and all liabilities for stamp, sales, use, gross receipts, value-added, real estate transfer and other transfer Taxes associated with such
transferred operations (but not such liabilities specifically relating to the Transactions) and will have sole responsibility for satisfying such liabilities. 

(C) With respect to Refund claims pending on the Distribution Date involving any sales, use, gross receipts or other similar Taxes,
(x) in the case of a Refund received by NOV and payable to SpinCo pursuant to the terms hereof, the amount of such payment shall be net of all contingent fee expenses and Taxes paid by NOV and related to such Refund, or (y) in the event
that SpinCo receives a Refund due any member of the SpinCo Group directly from the relevant Taxing Authority, it shall reimburse NOV for all contingent fee expenses and Taxes paid by NOV with respect to such Refund. For the avoidance of doubt,
SpinCo shall not be liable for any contingent fee expenses or Taxes related to Refunds received prior to the Distribution Date. 

  
 8 

 (ii) Property Taxes. If, in connection with the Transactions, property is transferred
between legal entities, the transferee shall assume any and all liabilities for real and personal property Taxes associated with such transferred property and will have sole responsibility for satisfying such liabilities. 

(iii) Payroll Taxes. If, in connection with the Transactions, an employee moves from one employer to another, the “new”
employer shall assume any and all employment related Taxes attributable to such transferred employee and will have sole responsibility for satisfying such liabilities. 

Section 2.04 Certain Income Taxes. Notwithstanding anything to the contrary in this Article II, NOV shall be liable, and shall
indemnify and hold harmless the SpinCo Group, for all Taxes arising as a result of the Transactions from (i) excess loss accounts taken into account under Code Section 1502, (ii) Code Section 357(c) or (iii) Code
Section 361(b), in each case, including under similar state and local law provisions. Any Taxes attributable to deferred intercompany gains that are triggered as a result of the Transactions shall be the responsibility of NOV and shall not be
included in determining the SpinCo Group’s Income Tax liability. To the extent there are adjustments to the amount of any deferred intercompany gain triggered as a result of the Distribution, NOV shall be responsible for paying the additional
Tax associated with any increase in the amount of gain and shall also be entitled to any Refund attributable to any reduction of gain. 

Section 2.05 Allocation of Certain Income Taxes and Income Tax Items. 

(a) If NOV, SpinCo or any of their respective Affiliates is permitted but not required under applicable U.S. federal, state, local or foreign
Tax laws to treat the Distribution Date as the last day of a taxable period, then the Parties shall treat such day as the last day of a taxable period under such applicable Tax law, and shall file any elections necessary or appropriate to such
treatment; provided that this Section 2.05(a) shall not be construed to require NOV to change its taxable year. 
 (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 a SpinCo Affiliate, as appropriate. 
 (c) Any Taxes for a
Straddle Period with respect to SpinCo and/or its Affiliates (or entities in which SpinCo and/or one of its Affiliates has an ownership interest) shall, for purposes of this Agreement, be apportioned between NOV and SpinCo based on the 

  
 9 

 
portion of the period ending on and including the Distribution Date and the portion of the period beginning after the Distribution Date, and each such portion of such period shall be deemed to be
a taxable period (whether or not it is in fact a taxable period). Any allocation of income or deductions required to determine any Income Taxes for a Straddle Period shall be made by means of a closing of the books and records of SpinCo and its
Affiliates as of the close of business on the Distribution Date; provided that: (i) NOV may elect to allocate Tax Items (other than any extraordinary Tax Items) ratably in the month in which the Distribution occurs (and if NOV so elects, SpinCo
shall so elect) as described in Treasury Regulation Section 1.1502–76(b)(2)(iii) and corresponding provisions of state, local, and foreign Tax laws; and (ii) subject to (i), 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. 
 (d) Tax Attributes determined on a consolidated or combined basis for taxable periods ending before or including
the Distribution Date shall be allocated to NOV and its Affiliates, and SpinCo and its Affiliates, in accordance with the Code and the Treasury Regulations (and any applicable state, local, or foreign law or regulation). Within an administratively
reasonable period following the Distribution Date, NOV shall reasonably determine (i) the amounts and proper allocation of such attributes as of the Distribution Date, and (ii) the Tax basis of the assets and liabilities transferred to
SpinCo in connection with the Transactions as of the Distribution Date; provided that SpinCo shall be entitled to participate in such determination. NOV and SpinCo agree to compute their Tax liabilities for taxable periods after the Distribution
Date consistent with that determination and allocation, and treat the Tax Attributes and Tax Items as reflected on any federal (or applicable state, local or foreign) Income Tax Return filed by the Parties as presumptively correct. 

Section 2.06 Refunds. Except as provided in Section 2.07: 

(a) NOV shall be entitled to all Refunds with respect to any Tax for which NOV is responsible under Sections 2.01, 2.02, 2.03, or 2.04. SpinCo
shall be entitled to all Refunds with respect to any Tax for which SpinCo is responsible under Sections 2.01, 2.02, 2.03, or 2.04. 
 (b)
SpinCo and NOV shall each forward to the other Party, or reimburse such other Party for, any Refunds received by the first Party and due to such other Party pursuant to this Section (net of all contingent fees and Taxes payable by the first Party
and related to such Refund). Where a Refund is received in the form of a deduction from, or credit or other offset against other or future Tax liabilities, reimbursement with respect to such Refund shall be due in each case on the due date for
payment of the Tax from or against which such Refund has been deducted, credited or otherwise offset. 

  
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 (c) If one Party reasonably so requests, the other Party (at the first Party’s expense)
shall file for and pursue any Refund to which the first Party is entitled under this Section; provided that the other Party need not pursue any Refund on behalf of the first Party unless the first Party provides the other Party a certification by an
appropriate officer of the first Party setting forth the first Party’s belief (together with supporting analysis) that the Tax treatment of the Tax Items on which the entitlement to such Refund is based is more likely than not correct, and is
not a Tax Item arising from a Reportable Transaction. 
 (d) If the other Party pays any amount to the first Party under this
Section 2.06 and, as a result of a subsequent Final Determination, the first Party is not entitled to some or all of such amount, the other Party shall notify the first Party of the amount to be repaid to the other Party, and the first Party
shall then repay such amount to the other Party, together with any interest, fines, additions to Tax, penalties or any additional amounts imposed by a Taxing Authority relating thereto. 

Section 2.07 Carrybacks. 

(a) Notwithstanding anything to the contrary in this Agreement, SpinCo shall file (or cause to be filed) on a timely basis any available
election to waive the carryback of net operating losses, Tax credits or other Tax Items by SpinCo or any Affiliate from a Post–Distribution Tax Period to a Straddle Period or Pre–Distribution Tax Period. Such elections shall include, but
not be limited to, the election described in Treasury Regulation Section 1.1502–21(b)(3)(ii)(B), and any analogous election under state, local, or foreign Income Tax laws, to waive the carryback of net operating losses for U.S. federal
Income Tax purposes. 
 (b) If, notwithstanding the provisions of Section 2.07(a), SpinCo is required to carryback losses or credits,
SpinCo shall be entitled to any Refund of any Tax obtained by NOV or an NOV Affiliate as a result of the carryback of losses or credits of SpinCo or its Affiliate from any Post-Distribution Tax Period to any Pre-Distribution Tax Period. Such Refund
is limited to the net amount received by NOV or an NOV Affiliate, net of any Tax cost incurred by NOV or such Affiliate resulting from such Refund. Upon request by SpinCo, NOV shall advise SpinCo of an estimate of any Tax cost NOV projects will be
associated with any carryback of losses or credits of SpinCo or its Affiliates as provided in this Section 2.07(b). 
 (c) If SpinCo
has a Tax Item that must be carried back to any Pre-Distribution Tax Period, SpinCo shall notify NOV in writing that such Tax Item must be carried back. Such notification shall include a description in reasonable detail of the grounds for the Refund
and the amount thereof, and a certification by an appropriate officer of SpinCo setting forth SpinCo’s belief (together with supporting analysis) that the Tax treatment of such Tax Item is more likely than not correct, and is not a Tax Item
arising from a Reportable Transaction. 
 (d) If NOV pays any amount to SpinCo under Section 2.07(b) and, as a result of a subsequent
Final Determination, SpinCo is not entitled to some or all of such amount, NOV shall notify SpinCo of the amount to be repaid to NOV, and SpinCo shall then repay such amount to NOV, together with any interest, fines, additions to Tax, penalties or
any additional amounts imposed by a Taxing Authority relating thereto. 

  
 11 

 ARTICLE III 

PREPARATION AND FILING OF TAX RETURNS 

Section 3.01 NOV Responsibility. 

(a) Subject to paragraph (b), NOV shall make all determinations with respect to, have ultimate control over the preparation of and file all
(i) Joint Returns and NOV Separate Returns, in each case as it determines to be mandatory or advisable for all taxable periods, (ii) SpinCo Separate Returns that are Income Tax Returns for all Pre-Distribution Tax Periods and
(iii) subject to SpinCo giving its written consent (which can be withheld for any reason), at NOV’s election, SpinCo Separate Returns that are Income Tax Returns for all Straddle Periods provided that NOV provides written notice to SpinCo
45 days after the end of such Straddle Period that NOV is exercising its right to prepare such Tax Return. 
 (b) If, in connection with the
preparation of any Return, NOV materially modifies any information relating to, or provided in, the pro forma federal and state Income Tax Returns or other information related to members of the SpinCo Group prepared by SpinCo and provided to NOV
pursuant to Section 3.02 below, the portions of the Returns that include such information shall be submitted to SpinCo no later than 30 days prior to the due date (including extensions) for filing of such federal Returns and 20 days prior to
the due date (including extensions) for filing of such state Returns (or if such due date is within 30 days following the Distribution Date, as promptly as practicable following the Distribution Date). Within 10 days after delivery of any such
revised portions of any Return, SpinCo shall provide comments to NOV in writing to the extent SpinCo objects to any revisions that could reasonably be expected to adversely impact any member of the SpinCo Group. Such SpinCo comments shall be
incorporated into the Return upon the consent of NOV, not to be unreasonably withheld. If SpinCo does not so notify NOV of any objection, SpinCo shall be considered to have consented to the filing of such Return. The dates for submissions to SpinCo
required in this section may be modified by mutual agreement of NOV and SpinCo. 
 Section 3.02 SpinCo Responsibility. 

(a) SpinCo shall make all determinations with respect to, have ultimate control over the preparation of and file all Tax Returns (other than
those described in Section 3.01) for the SpinCo Group as it determines to be mandatory or advisable and for all taxable periods. SpinCo shall prepare and provide to NOV all pro forma federal and state Income Tax Returns and other information
related to members of the SpinCo Group required to complete any Tax Return which is the responsibility of NOV pursuant to Section 3.01, in the format reasonably requested by NOV, no later than the later of (i) 100 days prior to the due
date (including extensions) of the relevant Tax Return or (ii) 30 days following the date on which the Tax basis and/or other applicable Tax attributes required to complete the relevant Tax Return is made available to SpinCo pursuant to
Section 2.05(d). The dates for submissions to NOV required in this section may be modified by mutual agreement of NOV and SpinCo. 

(b) In the case of any Tax Return that is the responsibility of NOV pursuant to Section 3.01(a) and that relates to an Income Tax that is
the obligation of SpinCo, SpinCo shall pay to NOV the amount of the provision for such Income Tax no later than the later of (i) 10 days prior to the due date (including extensions) for the filing of such Tax Return or (ii) 2 days after
NOV notifies SpinCo of the amount SpinCo owes. 

  
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 Section 3.03 Tax Accounting Practices. 

(a) Except as provided in Section 3.03(b), any Tax Return for any Pre-Distribution Tax Period or Straddle Period, to the extent it relates
to members of the SpinCo Group, shall be prepared in accordance with practices, accounting methods, elections, conventions and Tax positions used with respect to the Tax Return in question for periods prior to the Distribution (“Past
Practices”), and, in the case of any item the treatment of which is not addressed by Past Practices, in accordance with generally acceptable Tax accounting practices. Notwithstanding the foregoing, for any Tax Return described in the
preceding sentence, (i) a Party will not be required to follow Past Practices if such Party receives either the written consent of the other Party (not to be unreasonably withheld) or a “should” level opinion from a Tax Advisor that
the proposed method of reporting is correct and (ii) NOV shall have the right to determine which entities will be included in any consolidated, combined, affiliated or unitary Return that it is responsible for filing. 

(b) The Parties shall report the Transactions for all Tax purposes in a manner consistent with the Tax Opinions or Rulings (if any), unless,
and only to the extent, an alternative position is required pursuant to a Final Determination. NOV shall determine the Tax treatment to be reported on any Tax Return of any Tax issue relating to the Transactions that is not covered by the Tax
Opinions or Rulings (if any). 
 Section 3.04 Right to Review Tax Returns. Upon request, each Party shall make available to the
other Party the portion of Pre-Distribution Tax Period Tax Returns that relates to the SpinCo Group that the first Party is responsible for preparing under this Article III. 

ARTICLE IV 
 TAX-FREE
STATUS OF DISTRIBUTION 
 Section 4.01 Covenants. 

(a) Each of SpinCo and NOV will not take or fail to take, or permit its Affiliates to take or fail to take, any action (which includes the
undertaking of any transaction) where that action or omission would (i) violate, be inconsistent with or cause to be untrue any covenant, representation or statement in any Tax Opinions or Rulings (if any) or a letter or certificate that forms
the basis therefor, or (ii) prevent, or be reasonably likely to prevent, or be inconsistent with, the Tax-Free Status. 
 (b) During
the Restricted Period, except as provided in Section 4.01(c), SpinCo shall not, and shall not permit its Affiliates to, in a single transaction or in a series of transactions: 

(i) permit any transaction or series of transactions (or any agreement, understanding or arrangement to enter into a transaction or series of
transactions) as determined for purposes of Code Section 355(e), in connection with which (A) any member of the SpinCo 

  
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Group would merge or consolidate with any Person, or (B) any Person would (directly or indirectly) acquire, or have the right to acquire, from SpinCo and/or any other Person or Persons, any
interest in SpinCo Capital Stock that would, when combined with any other changes in ownership of SpinCo Capital Stock pertinent for purposes of Code Section 355(e), represent 30% or more of the value or total combined voting power of all
outstanding shares of SpinCo Capital Stock as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such series (a “Proposed Acquisition Transaction”). For these purposes,
any recapitalization, repurchase or redemption of SpinCo Capital Stock shall be treated as an indirect acquisition of such stock by a shareholder to the extent such shareholder’s percentage interest in the issuer increases by vote or value.
Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (w) the adoption by SpinCo of a shareholder rights plan that meets the requirements of IRS Revenue Ruling 90-11, (x) issuances of SpinCo Capital Stock
pursuant to an employee stock purchase agreement or equity compensation plan that the board of directors of NOV has approved prior to the Distribution Date or that NOV has notified SpinCo in writing is acceptable to NOV in its sole discretion (for
the avoidance of doubt, (i) any modification or amendment to such agreement or plan is also subject to the prior written consent of NOV and (ii) NOV’s approval is required for the underlying purchase agreement or plan but not for each
issuance of stock, options or other awards pursuant thereto), (y) transfers on an established market of SpinCo Capital Stock described in Safe Harbor VII of Treasury Regulation Section 1.355-7(d), or (z) issuances of SpinCo Capital
Stock described in Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d); 

(ii) liquidate or partially liquidate, including by way of merger or consolidation, Foreign SpinCo or any other member of the SpinCo Group
other than SpinCo; 
 (iii) liquidate or partially liquidate SpinCo (including, but not limited to, within the meaning of such terms in
Code Section 346 and Code Section 302, respectively); 
 (iv) cause or permit the SpinCo Group to cease to engage in the Active
Trade or Business; 
 (v) cause or permit Foreign SpinCo (together with any direct or indirect subsidiary of Foreign SpinCo that is
disregarded as separate from Foreign SpinCo for U.S. federal income tax purposes) to cease to engage in the Active Trade or Business; 

(vi) sell or transfer assets (including, without limitation, any stock of Foreign SpinCo or any other member of the SpinCo Group), other than
in the ordinary course of business; or 
 (vii) amend its certificate of incorporation (or other organizational documents), or take any
other action, affecting the relative voting rights of the separate classes of SpinCo Capital Stock; provided, however, that this clause (vi) shall not be deemed to be violated upon SpinCo’s adoption of a shareholder rights plan that meets
the requirements of IRS Revenue Ruling 90-11. 

  
 14 

 (c) Notwithstanding Section 4.01(b): 

(i) clauses (i) through (vii) of Section 4.01(b) shall not apply upon the prior written consent of NOV, which consent may not
be withheld if NOW provides NOV with Satisfactory Guidance concluding that the proposed actions will not result in Spin-Off Taxes; 
 (ii)
for purposes of clause (i), if SpinCo provides NOV an Unqualified Tax Opinion that is intended to be Satisfactory Guidance concerning a Proposed Acquisition Transaction, then such Opinion may be based on the assumption that NOV did not have any
agreement, understanding, arrangement or substantial negotiations, within the meaning of Treasury Regulations Section 1.355-7(h), with the counterparty to the Proposed Acquisition Transaction within the two year period preceding the
Distribution Date and such assumption shall not prevent such Unqualified Tax Opinion from being considered Satisfactory Guidance by the Parties, provided that (x) such assumption must be based on a certificate of such counterparty that such
assumption is true to the best of its knowledge and belief, and (y) NOV may deem such Opinion not to be Satisfactory Guidance if, in its reasonable judgment, there is a risk that such assumption is not correct; 

(iii) In the event that SpinCo intends to consummate any Proposed Acquisition Transaction after the end of the Restricted Period but before
the end of 30 months after the Distribution Date, then either (x) SpinCo shall be permitted to consummate such Proposed Acquisition Transaction, provided that SpinCo shall provide NOV with an unconditional certification that it did not
have any agreement, understanding, arrangement or substantial negotiations, within the meaning of Treasury Regulations Section 1.355-7(h), with the counterparty to such transaction within 12 months after the Distribution Date, and NOV, after
reasonable due investigation, is satisfied with the correctness of such certification, or (y) such Proposed Acquisition Transaction shall be subject to the provisions under Sections 4.01(b) and (c) as if such Proposed Acquisition
Transaction occurred within the Restricted Period; and 
 (iv) clauses (ii), (vi) and (vii) of Section 4.01(b) shall not
apply with respect to any transactions specifically identified as transactions that are not subject to such clauses in that certain side letter between NOV and SpinCo relating to this Agreement and dated on or about the date of this Agreement. 

(d) Notwithstanding anything to the contrary in this Agreement, for purposes of paragraph (c), no Ruling shall be obtained from the IRS if NOV
determines that there is a reasonable possibility that such an action could have a significant adverse impact on any member of the NOV Group. 

(e) Until January 1st of the calendar year immediately following the calendar year in which the Distribution occurs, SpinCo shall neither
cause nor permit any foreign subsidiary of SpinCo to enter into any transaction or take any action that would be considered under the Code to constitute the declaration or payment of a dividend (including pursuant to Section 304 of the Code)
without obtaining the prior written consent of NOV (such prior written consent not to be unreasonably withheld). 

  
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 Section 4.02 Procedures Regarding Opinions and Rulings. 

(a) Subject to Section 4.01(d), if SpinCo may take certain actions conditioned upon the receipt of Satisfactory Guidance, NOV, at the
request of SpinCo, shall use commercially reasonable efforts to expeditiously obtain, or assist SpinCo in obtaining, such Satisfactory Guidance. NOV shall not be required to take any action pursuant to this Section 4.02(a) if SpinCo fails to
certify, upon request, that all information and representations relating to any member of the SpinCo Group in the relevant documents are true, correct and complete. SpinCo shall reimburse NOV for all reasonable out-of-pocket costs and expenses
incurred by the NOV Group in obtaining Satisfactory Guidance. 
 (b) NOV shall have the right to obtain a Ruling from the IRS (or any other
Taxing Authority) or an Unqualified Tax Opinion at any time in its sole discretion. NOV shall reimburse SpinCo for all reasonable out-of-pocket costs and expenses incurred by the SpinCo Group in obtaining such a Ruling or Unqualified Tax Opinion.

 (c) NOV shall have exclusive control over the process of obtaining any Ruling relating to the Transactions and neither SpinCo nor any of
its Affiliates shall independently seek any guidance concerning the Transactions from any Taxing Authority at any time. In connection with any Ruling relating to the Transactions that can reasonably be expected to affect SpinCo liabilities under
this Agreement, NOV shall (i) keep SpinCo informed of all material actions taken or proposed to be taken by NOV, (ii) reasonably in advance of the submission of any Ruling request provide SpinCo with a draft thereof, consider SpinCo’s
comments on such draft, and provide SpinCo with a final copy, and (iii) provide SpinCo with notice reasonably in advance of, and permit SpinCo to attend, any formally scheduled meetings with the IRS (subject to the approval of the IRS) that
relate to such Ruling. 
 ARTICLE V 

TAX CONTESTS; INDEMNIFICATION; COOPERATION 

Section 5.01 Notice. 

(a) Within 15 days after a Party (the “Indemnitee”) becomes aware of the existence of a Tax Contest that may give rise to an
indemnification claim under this Agreement by it against the other Party (the “Indemnifying Party”), the Indemnitee shall notify the Indemnifying Party of the Tax Contest, and thereafter shall promptly forward or make available to
the Indemnifying Party copies of notices and communications with a Taxing Authority relating to such Tax Contest. 
 (b) The Indemnifying
Party shall not be responsible for any increase in amounts to which the Indemnitee is otherwise entitled to the extent that such increase results solely from the failure of the Indemnitee to provide timely notice as required pursuant to
Section 5.01(a). 

  
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 Section 5.02 Control of Tax Contests. 

(a) Except as otherwise provided in paragraphs (b) and (c) below: 

(i) NOV shall control, and have sole discretion in handling, settling or contesting, any Tax Contest relating to any Joint Returns, as well
as any Separate Returns or other Return if any such Return is related to Taxes for which NOV is responsible pursuant to Article II, or the Tax treatment of the Transactions, provided that (x) NOV shall act in good faith in connection
with its control of any such Tax Contests and (y) SpinCo shall have the right to participate in and advise on (including, without limitation, the opportunity to review and comment upon NOV’s communications with the Taxing Authority, which
comments shall be incorporated upon the consent of NOV, not to be unreasonably withheld) such items for which SpinCo could be liable under Article II as a result of such Tax Contest; and 

(ii) If SpinCo disagrees with NOV’s decision to settle a Tax Contest that may reasonably be expected materially to affect amounts for
which SpinCo is liable under Article II, SpinCo shall have the right to contest its liability to NOV under Article II notwithstanding the settlement. SpinCo shall provide written notice to NOV of its intention to contest its liability as a result of
any settlement (and its irrevocable election described below) prior to the time such settlement is entered into. Any such contest by SpinCo shall be made under the procedures set forth in Article VI. Under those procedures, SpinCo may irrevocably
elect, in its sole discretion, to require the Tax Advisor or the arbitrator to determine either (x) the amount of a settlement with the relevant Taxing Authority that would most accurately reflect the litigation risk of the relevant issue, or
(y) the most likely outcome of the issue if it were litigated without a settlement. In either such case, SpinCo shall be liable to NOV, or NOV shall be liable to SpinCo, based solely on the determination of the Tax Advisor or the arbitrator as
if a settlement or litigation implementing such determination had actually occurred, without regard to the actual settlement. For the avoidance of doubt, this clause (ii) shall not limit NOV’s ability to settle a Tax Contest. 

(b) SpinCo shall control and have sole discretion in handling, settling or contesting, any Tax Contest for a Pre-Distribution Tax Period to
the extent such Tax Contest relates solely to Taxes that are the responsibility of SpinCo pursuant to Article II; provided that NOV shall have the right to participate in and advise on all aspects of such Tax Contests and may coordinate discussions
with the relevant Taxing Authority with respect thereto. 
 (c) NOV and SpinCo shall jointly control Tax Contests relating to Tax liability
arising from the failure of the Spin-Offs to qualify for tax-free treatment under Code Sections 355 or 361, if, and only if, there is a reasonable likelihood that SpinCo would be liable to NOV under Article II as a result of such Tax Contest.
Neither Party shall have the right to settle any such Tax Contest without the consent of the other Party; provided that NOV may settle any such Tax Contest without the consent of SpinCo if NOV waives any claim for indemnification with respect
thereto. 
 (d) Except as otherwise provided in paragraph (a), (b) or (c) above, SpinCo shall have sole control over any Tax
Contest that relates to SpinCo Separate Returns for any Post-Distribution Tax Period. 
 (e) Any out-of-pocket costs incurred in handling,
settling or contesting a Tax Contest shall be borne ratably by the Parties based on their ultimate liability under this Agreement for the Taxes to which the Tax Contest relates; provided, however, that if SpinCo

  
 17 

 
contests a settlement made by NOV as provided in clause (ii) of paragraph (a) above, SpinCo shall bear the costs relating to SpinCo’s contest of such settlement unless SpinCo
substantially prevails in such contest. 
 Section 5.03 Indemnification Payments. 

(a) An Indemnitee shall be entitled to make a claim for payment pursuant to this Agreement when the Indemnitee determines that it is entitled
to such payment and the amount of such payment (including, for the avoidance of doubt, the finalization of a Return before filing). The Indemnitee shall provide to the Indemnifying Party notice of such claim within 10 days of the date on which it
first so becomes entitled to claim such payment, including a description of such claim and a detailed calculation of the amount of the indemnification payment that is claimed, provided, however, that no delay on the part of the Indemnitee in
notifying the Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the Indemnitor is actually and materially prejudiced thereby. Except as provided in paragraph (b) below,
the Indemnifying Party shall make the claimed payment to the Indemnitee within 10 days after receiving such notice, unless the Indemnifying Party reasonably disputes its liability for, or the amount of, such payment. 

(b) If the Indemnitee will be obligated to make the payment described in paragraph (a) above to a Taxing Authority or other third Party
(including expenses reimbursable under this Agreement), the Indemnifying Party shall not be obligated to pay the Indemnitee more than 5 days before the Indemnitee incurs such expense or makes such payment. If the Indemnitee’s claim for payment
arises from a payment that the Indemnifying Party will receive from a third Party, such as a Refund, the Indemnifying Party shall not be obligated to pay the Indemnitee until 5 days after the Indemnifying Party receives such payment. 

(c) In the case of a claim under Article II where no payment will be made to or received from a Taxing Authority, paragraph (b) above
shall be applied to the payments that would be made to or from a Taxing Authority if the SpinCo Group was treated as a standalone group for all taxable periods. 

Section 5.04 Interest on Late Payments. Interest shall accrue with respect to any indemnification payment (including any disputed
payment that is ultimately required to be made), not made within the period for payment, at Prime Rate plus 2% per annum compounded quarterly. 

Section 5.05 Treatment of Payments. 

(a) The amount of all indemnification obligations under this Agreement shall be decreased to take into account the Tax benefits to the
Indemnitee of the deductibility of any indemnified item (whether or not any Tax benefit is actually received for a deductible item and assuming the highest applicable taxable rate) and shall be increased where necessary so that, after all the
required deductions (whether or not any Tax benefit is actually received for a deductible item and assuming the highest applicable taxable rate) have been made and Taxes imposed, the Indemnitee receives the amount it would have been entitled to
receive under this Agreement in the absence of such deductions and Taxes. 

  
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 (b) Any payments made to one Party by another Party pursuant to (i) this Agreement or
(ii) the Separation and Distribution Agreement (if payment made pursuant to the Separation and Distribution Agreement relates to taxable periods (or portions thereof) ending on or before the Distribution) shall be treated by the Parties for all
Tax purposes as a distribution by, or capital contribution to, SpinCo, as the case may be, made immediately prior to the Distribution, except to the extent otherwise required by a Final Determination. 

Section 5.06 Expenses. Each Party and its Affiliates shall bear their own expenses incurred in connection with preparation of Tax
Returns and preparation for and defense of Tax Contests. 
 Section 5.07 Cooperation. Each member of the NOV Group and the
SpinCo Group shall cooperate fully with all reasonable requests from the other Party in connection with the preparation and filing of Tax Returns and Adjustment Requests, Tax Contests and other matters covered by this Agreement. 

(a) Such cooperation shall include: 

(i) the retention until the expiration of the applicable statute of limitations, and the provision upon request, of Tax Returns, books,
records (including information regarding ownership and Tax basis of property), documentation and other information relating to the Tax Returns, including accompanying schedules, related workpapers, and documents relating to Rulings (if any) or other
determinations by Taxing Authorities; 
 (ii) the execution of any document that may be necessary or reasonably helpful in connection with
any Tax Contest, the filing of a Tax Return or Adjustment Request by a member of the NOV Group or the SpinCo Group, obtaining a Tax opinion or private letter ruling (except as otherwise provided in Section 4.02(c)), or other matters covered by
this Agreement, including certification (provided in such form as may be required by applicable law or reasonably requested and made to the best of a Party’s knowledge) of the accuracy and completeness of the information it has supplied; 

(iii) the use of the Parties’ reasonable best efforts to obtain any documentation that may be necessary or reasonably helpful in
connection with any of the foregoing; 
 (iv) the use of the Parties’ reasonable best efforts to make the applicable Party’s
current or former directors, officers, employees, agents and facilities available on a reasonable and mutually convenient basis in connection with the foregoing matters; and 

(v) making determinations with respect to actions described in Section 4.01(c) as promptly as practicable including, without limitation,
making determinations within 10 days with respect to modifications and amendments of employee stock purchase agreements or equity compensation plans under Section 4.01(b)(i)(x). 

(b) If a Party fails to comply with any of its obligations set forth in this Section 5.07 upon reasonable request and notice by the other
Party, and such failure results in the imposition of additional Taxes, the nonperforming Party shall be liable in full for such additional Taxes. 

  
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 Section 5.08 Confidentiality. Any information or documents provided under this
Agreement shall be kept confidential by the recipient-Party, except as may otherwise be necessary in connection with the filing of Tax Returns or with any Tax Contest. In addition, if NOV or SpinCo determines that providing such information could be
commercially detrimental, violate any law or agreement or waive any privilege, the Parties shall use reasonable best efforts to permit compliance with the obligations under this Agreement in a manner that avoids any such harm or consequence. 

Section 5.09 Retention of Tax Records. SpinCo may request from NOV and retain copies of (i) with respect to any Joint Return,
all pro forma federal and state Tax Returns, supporting schedules and workpapers related to members of the SpinCo Group, and (ii) any Separate Returns for any SpinCo Group members, including supporting schedules and workpapers. If either NOV or
SpinCo intends to dispose of documentation with respect to any Pre-Distribution Tax Period, including books, records, Tax Returns and all supporting schedules and information relating thereto (after the expiration of the applicable statute of
limitations), of any member of the other Group, or in the case of the SpinCo Group any member included in a Joint Return, they shall provide written notice to the other Party describing the documentation to be disposed of 30 days prior to taking
such action. The other Party may arrange to take delivery of the documentation described in the notice at its own expense during the succeeding 30 day period. 

ARTICLE VI 
 RESOLUTION
OF DISPUTES 
 Section 6.01 Tax Disputes. The Parties will endeavor, and will cause their respective Affiliates to endeavor,
to resolve in an amicable manner all disputes arising in connection with this Agreement. The Parties shall negotiate in good faith to resolve any Tax Dispute for not less than 45 days. Upon written notice of either Party after 45 days, the matter
will be referred to a Tax Advisor acceptable to both Parties. The Tax Advisor may, in its discretion, obtain the services of any third-party necessary to assist it in resolving the dispute. The Tax Advisor shall furnish written notice to the Parties
of its resolution of the dispute as soon as practicable, but in any event no later than 45 days after its acceptance of the matter for resolution. Any such resolution by the Tax Advisor will be binding on the Parties and the Parties shall take, or
cause to be taken, any action necessary to implement the resolution. All fees and expenses of the Tax Advisor shall be shared equally by NOV, on the one hand, and SpinCo, on the other hand. If, having determined that the dispute must be referred to
a Tax Advisor, after 45 days the Parties are unable to find a Tax Advisor willing to adjudicate the dispute in question and whom the Parties in good faith find acceptable, then the dispute will be submitted for arbitration to the American
Arbitrators Association, provided, however, that only an arbitrator that qualifies as a Tax Advisor shall be selected. 

  
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 ARTICLE VII 

MISCELLANEOUS PROVISIONS 

Section 7.01 Disposition of SpinCo Subsidiaries. In the event that SpinCo disposes of the stock of a subsidiary that is not a
Party to this Agreement (i) without receiving compensation equal to the fair market value of such subsidiary, prior to the disposition, such subsidiary shall deliver to NOV an executed agreement, in a form reasonably acceptable to NOV, agreeing
to be bound by this Agreement as if it had been an original Party hereto or (ii) in an exchange intended to result in the receipt of compensation equal to the fair market value of such subsidiary, prior to the disposition, such subsidiary shall
deliver to NOV an executed agreement, in a form reasonably acceptable to NOV, agreeing to be bound by Sections 5.07, 5.08, 5.09 and Article VII of this Agreement as if it had been an original Party hereto. 

Section 7.02 Complete Agreement; Representations. 

(a) Except as explicitly stated herein, this Agreement, together with the exhibits and schedules hereto constitutes 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. 

(b) NOV represents on behalf of itself and each other member of the NOV Group and SpinCo represents on behalf of itself and each other member
of the SpinCo Group as follows: 
 (i) each such Person has the requisite corporate or other power and authority and has taken all
corporate or other action necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated by this Agreement; and 

(ii) this Agreement has been duly executed and delivered by such Person (if such Person is a Party) and constitutes a valid and binding
agreement of it enforceable in accordance with the terms thereof (assuming the due execution and delivery thereof by the other Party), except as such enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization,
moratorium and other Laws relating to creditors’ rights generally and by general equitable principles. 
 Section 7.03 Costs
and Expenses. Except as otherwise provided herein, all costs and expenses incurred in connection with the negotiation, preparation, execution and performance of this Agreement and the transactions contemplated hereby shall be borne as provided
in the Separation and Distribution Agreement. 
 Section 7.04 Governing Law. This Agreement and any dispute arising out of, in
connection with or relating to this Agreement shall be governed by and construed in accordance with the Laws of the State of Texas, without giving effect to the conflicts of laws principles thereof. 

  
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 Section 7.05 Notices. All notices, requests, claims, demands and other communications
hereunder must be in writing and will be deemed to have been duly given only if delivered personally or by facsimile transmission or mailed (first class postage prepaid) to the Parties at the following addresses or facsimile numbers: 

 

	
	 If to NOV or any member of the NOV Group, to:

	
	 National Oilwell Varco, Inc.

	 7909 Parkwood Circle Drive

	 Houston, Texas 77036

	 Attention: General Counsel

	
	 If to SpinCo or any member of the SpinCo Group, to:

	
	 NOW Inc.

	 7402 North Eldridge

	 Houston, Texas 77041

	 Attention: General Counsel

 All such notices, requests and other communications will (i) if delivered personally to the address as
provided in this section, be deemed given upon delivery, (ii) if delivered by facsimile transmission to the facsimile number as provided in this section, be deemed given upon receipt and (iii) if delivered by mail in the manner described
above to the address as provided in this section, be deemed given upon receipt (in each case regardless of whether such notice, request or other communication is received by any other Person to whom a copy of such notice, request or other
communication is to be delivered pursuant to this section). Any party from time to time may change its address, facsimile number or other information for the purpose of notices to that party by giving written notice specifying such change to the
other party. 
 Section 7.06 Amendment, Modification or Waiver. 

(a) Prior to the Distribution, this Agreement may be amended, modified, waived, supplemented or superseded, in whole or in part, by NOV in its
sole discretion by execution of a written amendment delivered to SpinCo. Subsequent to the Distribution, this Agreement may be amended, modified, supplemented or superseded only by an instrument signed by duly authorized signatories of both Parties.

 (b) Following the Distribution, any term or condition of this Agreement may be waived at any time by the Party that is entitled to the
benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. No waiver by any Party of any term or condition of this Agreement, in any one
or more instances, shall be deemed or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion. All remedies, either under this Agreement or by Law or otherwise afforded, will be cumulative and not
alternative. 

  
 22 

 Section 7.07 No Assignment; Binding Effect. Neither this Agreement nor any of the
rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the Parties without the prior written consent of the other Party; provided, however, that no such consent shall
be required in the event of a merger, consolidation or sale of either NOV or SpinCo. Subject to the preceding sentence, this Agreement is binding upon, inures to the benefit of and is enforceable by the Parties hereto and their respective successors
and assigns. 
 Section 7.08 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument. 
 Section 7.09 Specific
Performance. From and after the Distribution, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Parties agree that the Party or Parties to this Agreement who are
or are to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of its or their rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such
rights and remedies shall be cumulative. The Parties agree that, from and after the Distribution, the remedies at law for any breach or threatened breach of this Agreement, including monetary damages, are inadequate compensation for any loss, that
any defense in any action for specific performance that a remedy at law would be adequate is hereby waived, and that any requirements for the securing or posting of any bond with such remedy are hereby waived. 

Section 7.10 Interpretation; Conflict With Ancillary Agreements. The language of this Agreement shall be construed according to
its fair meaning and shall not be strictly construed for or against any Party. Notwithstanding the foregoing, the purposes of Article IV are to ensure the Tax-Free Status and, accordingly, the Parties agree that the language thereof shall be
interpreted in a manner that serves this purpose to the greatest extent possible. 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. If, and to the extent, the provisions of this Agreement conflict with the Separation and Distribution Agreement, or any Ancillary Agreement, the provisions of this Agreement shall control.

 Section 7.11 Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any
present or future Law, the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. 

Section 7.12 Survival. Except with respect to Sections 5.07, 5.08 and 5.09 which shall remain in effect without limitation as to
time, the provisions in this Agreement shall be unconditional and absolute and shall remain in effect until the expiration of the statute of limitations for all taxable periods that end before or include the date on which the Distribution occurs and
the resolution of all disputes under this Agreement that arose during such periods. 

  
 23 

 Section 7.13 No Double Recovery. No provision of this Agreement shall be construed to
provide an indemnity or other recovery for any costs, damages, or other amounts for which the damaged party has been fully compensated under any other provision of this Agreement or under any other agreement or action at law or equity. Unless
expressly required in this Agreement, a party shall not be required to exhaust all remedies available under other agreements or at law or equity before recovering under the remedies provided in this Agreement. 

Section 7.14 Jurisdiction. If any dispute arises out of or in connection with this Agreement, except as expressly contemplated by
another provision of this Agreement, the parties irrevocably (and the parties will cause each other member of their respective Group to irrevocably) (a) consent and submit to the exclusive jurisdiction of federal and state courts located in
Houston, Texas, (b) waive any objection to that choice of forum based on venue or to the effect that the forum is not convenient, and (c) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO TRIAL OR ADJUDICATION BY JURY. 

  
 24 

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

			
	NATIONAL OILWELL VARCO, INC.
	a Delaware corporation
		
	By:	 	 /s/ Dwight W. Rettig

	Name:	 	 Dwight W. Rettig

	Title:	 	 Executive Vice President and General Counsel

	
	 NOW INC.
 a Delaware
corporation

		
	By:	 	 /s/ Daniel L. Molinaro

	Name:	 	 Daniel L. Molinaro

	Title:	 	 Senior Vice President and CFO

  
 25EX-10.3

 Exhibit 10.3 

EMPLOYEE MATTERS AGREEMENT 
 BY
AND BETWEEN 
 NATIONAL OILWELL VARCO, INC. 

AND 
 NOW INC. 

DATED AS OF MAY 29, 2014 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	 ARTICLE I.
	 	DEFINITIONS	  	 	1	  
	 Section 1.1.
	 	Definitions	  	 	1	  
	 Section 1.2.
	 	Interpretation	  	 	7	  
			
	 ARTICLE II.
	 	GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES	  	 	7	  
	 Section 2.1.
	 	General Principles	  	 	7	  
	 Section 2.2.
	 	Service Credit	  	 	8	  
	 Section 2.3.
	 	Transition Services	  	 	9	  
	 Section 2.4.
	 	No Duplication or Acceleration of Benefits	  	 	9	  
			
	 ARTICLE III.
	 	ASSIGNMENT OF EMPLOYEES	  	 	9	  
	 Section 3.1.
	 	Active Employees	  	 	9	  
	 Section 3.2.
	 	Employee Records	  	 	10	  
	 Section 3.3.
	 	Termination of Participation in NOV Benefit Plans	  	 	11	  
			
	 ARTICLE IV.
	 	EQUITY AND INCENTIVE COMPENSATION PLANS	  	 	11	  
	 Section 4.1.
	 	Stock Options	  	 	11	  
	 Section 4.2.
	 	Restricted Stock Awards	  	 	12	  
	 Section 4.3.
	 	Performance Share Awards	  	 	13	  
	 Section 4.4.
	 	Liabilities for Settlement of Awards	  	 	15	  
	 Section 4.5.
	 	Bonus and Incentive Payments	  	 	15	  
	 Section 4.6.
	 	Form S-8	  	 	16	  
	 Section 4.7.
	 	Tax Reporting and Withholding for Equity-Based Awards	  	 	16	  
	 Section 4.8.
	 	Approval of SpinCo Equity Plan	  	 	17	  
			
	 ARTICLE V.
	 	U.S. QUALIFIED RETIREMENT PLANS	  	 	17	  
	 Section 5.1.
	 	Defined Benefit Plans	  	 	17	  
	 Section 5.2.
	 	Defined Contribution Plans	  	 	17	  
			
	 ARTICLE VI.
	 	U.S. NONQUALIFIED DEFERRED COMPENSATION PLAN	  	 	19	  
	 Section 6.1.
	 	Assets and Liabilities	  	 	19	  
	 Section 6.2.
	 	Participation; Distributions	  	 	19	  
	 Section 6.3.
	 	Establishment of SpinCo Nonqualified Plan	  	 	19	  
	 Section 6.4.
	 	Continuation of Elections	  	 	19	  
	 Section 6.5.
	 	Transfer of Assets	  	 	20	  
			
	 ARTICLE VII.
	 	U.S. HEALTH & WELFARE PLANS	  	 	20	  
	 Section 7.1.
	 	Establishment of SpinCo Welfare Plans	  	 	20	  
	 Section 7.2.
	 	Transitional Matters Under SpinCo Welfare Plans	  	 	20	  
	 Section 7.3.
	 	Waiver of Conditions or Restrictions	  	 	21	  
	 Section 7.4.
	 	Insurance Contracts	  	 	22	  
	 Section 7.5.
	 	Third-Party Vendors	  	 	22	  
	 Section 7.6.
	 	Workers’ Compensation	  	 	22	  
	 Section 7.7.
	 	Reimbursement Account Plan	  	 	22	  

  
 i 

							
			
	 ARTICLE VIII.
	 	BENEFIT ARRANGEMENTS AND OTHER MATTERS	  	 	23	  
	 Section 8.1.
	 	Termination of Participation	  	 	23	  
	 Section 8.2.
	 	Accrued Time Off	  	 	23	  
	 Section 8.3.
	 	Leaves of Absence	  	 	23	  
			
	 ARTICLE IX.
	 	NON-U.S. EMPLOYEES	  	 	24	  
	 Section 9.1.
	 	General Principles	  	 	24	  
	 Section 9.2.
	 	Treatment of Equity Awards Held By Non-U.S. Employees	  	 	24	  
			
	 ARTICLE X.
	 	GENERAL PROVISIONS	  	 	25	  
	 Section 10.1.
	 	Preservation of Rights to Amend	  	 	25	  
	 Section 10.2.
	 	Entire Agreement	  	 	25	  
	 Section 10.3.
	 	Binding Effect; No Third-Party Beneficiaries; No Amendment of Plans; Assignment	  	 	25	  
	 Section 10.4.
	 	Amendment; Waivers	  	 	25	  
	 Section 10.5.
	 	Remedies Cumulative	  	 	26	  
	 Section 10.6.
	 	Notices	  	 	26	  
	 Section 10.7.
	 	Counterparts	  	 	26	  
	 Section 10.8.
	 	Severability	  	 	26	  
	 Section 10.9.
	 	Governing Law	  	 	26	  
	 Section 10.10.
	 	Dispute Resolution	  	 	26	  
	 Section 10.11.
	 	Performance	  	 	26	  
	 Section 10.12.
	 	Effect if Distribution Does Not Occur	  	 	27	  
	 Section 10.13.
	 	Additional Indemnification Matters	  	 	27	  

  
 ii 

 EMPLOYEE MATTERS AGREEMENT 

THIS EMPLOYEE MATTERS AGREEMENT, made and entered into effective as of May 29, 2014 (this “Agreement”), is by and
between National Oilwell Varco, Inc., a Delaware corporation (“NOV”), and NOW Inc., a Delaware corporation (“SpinCo”). NOV and SpinCo are also referred to in this Agreement individually as a “Party”
and collectively as the “Parties.” Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in Article I. 

RECITALS 
 WHEREAS, NOV has
determined that it would be appropriate, desirable and in the best interests of NOV and the shareholders of NOV to separate the SpinCo Business from NOV; 

WHEREAS, NOV and SpinCo have entered into the Separation and Distribution Agreement, dated May 29, 2014 (the “Separation
Agreement”), in connection with the separation of the SpinCo Business from NOV and the Distribution of SpinCo Common Stock to shareholders of NOV; 

WHEREAS, the Separation Agreement also provides for the execution and delivery of certain other agreements, including this Agreement, in order
to facilitate and provide for the separation of SpinCo and its subsidiaries from NOV; and 
 WHEREAS, in order to ensure an orderly
transition under the Separation Agreement, it will be necessary for the Parties to allocate between them certain Assets, Liabilities and responsibilities with respect to certain employee compensation and benefit plans and programs, and to address
certain other employment matters. 
 NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements set forth
below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound hereby, hereby agree as follows: 

ARTICLE I. 
 DEFINITIONS 

Section 1.1. Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this
Section 1.1: 
 “Adjusted NOV Option” has the meaning set forth in Section 4.1(a). 

“Adjusted NOV PSA” has the meaning set forth in Section 4.3(a). 

“Adjusted NOV RSA” has the meaning set forth in Section 4.2(a). 

“Affiliate” has the meaning set forth in the Separation Agreement. 

 “Agreement” means this Employee Matters Agreement, together with all Schedules
hereto and all amendments, modifications, and changes hereto entered into pursuant to Section 10.4. 
 “Ancillary
Agreements” has the meaning set forth in the Separation Agreement. 
 “Assets” has the meaning set forth in the
Separation Agreement. 
 “Benefit Plan” means any contract, agreement, policy, practice, program, plan, trust, commitment
or arrangement providing for benefits, perquisites or compensation of any nature to any employee or other service provider, or to any family member, dependent, or beneficiary of any such employee or service provider, including pension plans, thrift
plans, supplemental pension plans and welfare plans, and contracts, agreements, policies, practices, programs, plans, trusts, commitments and arrangements providing for terms of employment, fringe benefits, severance benefits, change in control
protections or benefits, travel and accident, health, life, disability and accident insurance, tuition reimbursement, travel reimbursement, vacation, sick, personal or bereavement days, leaves of absences and holidays; provided, however, the term
“Benefit Plan” does not include any workers compensation or similar insurance plans, programs or policies. 
 “Canada Tax
Act” means the Income Tax Act (Canada). 
 “Canadian Holder” has the meaning set forth in Section 9.2. 

“COBRA” means the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Section 601 et seq. of
ERISA and at Section 4980B of the Code, and similar applicable state Law. 
 “Code” has the meaning set forth in the
Separation Agreement. 
 “Delayed Transfer SpinCo Option” has the meaning set forth in Section 4.1(c). 

“Delayed Transfer SpinCo PSA” has the meaning set forth in Section 4.3(c). 

“Delayed Transfer SpinCo RSA” has the meaning set forth in Section 4.2(c). 

“Distribution” has the meaning set forth in the Separation Agreement. 

“Distribution Date” has the meaning set forth in the Separation Agreement. 

“Employee” means any NOV Group Employee, Former Employee or SpinCo Group Employee. 

“ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated
thereunder. 
 “FICA” has the meaning set forth in Section 3.1(f). 

  
 2 

 “Former Employee” means a former employee of the NOV Group whose employment with
the NOV Group was terminated before the Distribution (and who is not actively employed by the NOV Group as of the Distribution), regardless of whether or not he or she provided services to the SpinCo Business while employed. 

“FUTA” has the meaning set forth in Section 3.1(f). 

“HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as amended, and the regulations promulgated
thereunder. 
 “IRS” means the Internal Revenue Service. 

“Law” has the meaning set forth in the Separation Agreement. 

“Liabilities” has the meaning set forth in the Separation Agreement. 

“NOV” has the meaning set forth in the preamble to this Agreement. 

“NOV 401(k) Plan” means the National Oilwell Varco, Inc. 401(k) and Retirement Savings Plan. 

“NOV 401(k) Plan Beneficiaries” has the meaning set forth in Section 5.2(b). 

“NOV Annual Bonus Plan” has the meaning set forth in Section 4.5(a). 

“NOV Benefit Plan” means any Benefit Plan sponsored or maintained by a NOV Entity immediately prior to the Distribution Date.

 “NOV Common Stock” means the common stock, par value $0.01 per share, of NOV. 

“NOV Delayed Stock Value” means the simple average of the volume weighted average per share price of NOV Common Stock trading
on the NYSE during Regular Trading Hours on the four Trading Days immediately preceding the Transfer Date. 
 “NOV Entity”
means any member of the NOV Group. 
 “NOV Equity Plan” means any equity compensation plan sponsored or maintained by NOV
immediately prior to the Distribution Date, including the National Oilwell Varco, Inc. Long-Term Incentive Plan, the Grant Prideco, Inc. 2006 Long-Term Incentive Plan, the Grant-Prideco, Inc. 2001 Stock Option and Restricted Stock Plan, the Grant
Prideco, Inc. 2000 Employee Stock Option and Restricted Stock Plan, the National Oilwell, Inc. Stock Award and Long-Term Incentive Plan and the Varco International, Inc. 2003 Equity Participation Plan. 

“NOV Group” has the meaning set forth in the Separation Agreement. 

“NOV Group Employee” means any individual who is employed by a NOV Entity immediately after the Distribution. 

  
 3 

 “NOV Nonqualified Plan” means the National Oilwell Varco, Inc. Supplemental
Savings Plan. 
 “NOV Options” means exercisable and non-exercisable options to purchase shares of NOV Common Stock granted
pursuant to any of the NOV Equity Plans. 
 “NOV Pension Plans” has the meaning set forth in Section 5.1. 

“NOV Post-Distribution Stock Value” means the simple average of the volume weighted average per share price of NOV Common
Stock trading on the NYSE during Regular Trading Hours on the first four Trading Days following the Distribution Date. 
 “NOV
Pre-Distribution Stock Value” means the simple average of the volume weighted average per share price of NOV Common Stock trading “regular way with due bills” on the NYSE during Regular Trading Hours on the Distribution Date and
the three immediately preceding Trading Days. 
 “NOV Price Ratio” means the quotient obtained by dividing the NOV
Post-Distribution Stock Value by the NOV Pre-Distribution Stock Value. 
 “NOV PSAs” means performance share awards issued
under any of the NOV Equity Plans. 
 “NOV Reimbursement Account Plan” has the meaning set forth in Section 7.7. 

“NOV RSAs” means restricted stock awards issued under any of the NOV Equity Plans. 

“NOV Share Ratio” means the quotient obtained by dividing the NOV Pre-Distribution Stock Value by the NOV Post-Distribution
Stock Value. 
 “NOV Welfare Plan” means any Welfare Plan sponsored or maintained by any one or more members of the NOV
Group as of immediately prior to the Distribution Date. 
 “NYSE” means the New York Stock Exchange. 

“Party” or “Parties” has the meaning set forth in the preamble to this Agreement. 

“Person” has the meaning set forth in the Separation Agreement. 

“Post Distribution Transferred Employee” means any NOV Group Employee who, as a result of the Distribution, leaves the
employment of the NOV Group and becomes an employee of any SpinCo Entity within sixty (60) days after the Distribution Date. 

“Record Date” has the meaning set forth in the Separation Agreement. 

“Regular Trading Hours” means the period beginning at 9:30 A.M. New York City time and ending at 4:00 P.M. New York City
time. 

  
 4 

 “Securities Act” has the meaning set forth in the Separation Agreement. 

“Separation Agreement” has the meaning set forth in the recitals to this Agreement. 

“SpinCo” has the meaning set forth in the preamble to this Agreement. 

“SpinCo 401(k) Plan” has the meaning set forth in Section 5.2(a). 

“SpinCo 401(k) Plan Beneficiaries” has the meaning set forth in Section 5.2(b). 

“SpinCo Annual Bonus Plan” has the meaning set forth in Section 4.5(b). 

“SpinCo Benefit Plan” means any Benefit Plan sponsored or maintained by a SpinCo Entity immediately following the
Distribution Date. 
 “SpinCo Business” has the meaning set forth in the Separation Agreement. 

“SpinCo Common Stock” means the common stock, par value $0.01 per share, of SpinCo. 

“SpinCo Delayed Price Ratio” means the quotient obtained by dividing the SpinCo Delayed Stock Value by the NOV Delayed Stock
Value. 
 “SpinCo Delayed Share Ratio” means the quotient obtained by dividing the NOV Delayed Stock Value by the SpinCo
Delayed Stock Value. 
 “SpinCo Delayed Stock Value” means the simple average of the volume weighted average per share
price of SpinCo Common Stock trading on the NYSE during Regular Trading Hours on the four Trading Days immediately preceding the Transfer Date. 

“SpinCo Entity” means any member of the SpinCo Group. 

“SpinCo Equity Plan” means the plan adopted by SpinCo prior to the Distribution Date and approved by NOV, as sole shareholder
of SpinCo, under which the SpinCo equity-based awards in Article IV shall be issued. 
 “SpinCo Group” has the meaning set
forth in the Separation Agreement. 
 “SpinCo Group Employees” has the meaning given such term in Section 3.1(a). 

“SpinCo Nonqualified Plan” has the meaning given such term in Section 6.3(c). 

“SpinCo Nonqualified Plan Beneficiaries” has the meaning given such term in Section 6.3(c). 

“SpinCo Option” has the meaning set forth in Section 4.1(b). 

“SpinCo Pension Participants” has the meaning set forth in Section 5.1. 

  
 5 

 “SpinCo Price Ratio” means the quotient obtained by dividing the SpinCo Stock
Value by the NOV Pre-Distribution Stock Value. 
 “SpinCo PSA” has the meaning set forth in Section 4.3(b). 

“SpinCo Reimbursement Account Plan” has the meaning set forth in Section 7.7. 

“SpinCo Share Ratio” means the quotient obtained by dividing the NOV Pre-Distribution Stock Value by the SpinCo Stock Value.

 “SpinCo Stock Value” means the simple average of the volume weighted average per share price of SpinCo Common Stock
trading on the NYSE during Regular Trading Hours on the first four Trading Days following the Distribution Date. 
 “SpinCo
RSA” has the meaning set forth in Section 4.2(b). 
 “SpinCo Welfare Plan” means any Welfare Plan sponsored
or maintained by any one or more members of the SpinCo Group immediately after the Distribution Date. 
 “SpinCo Welfare Plan
Participants” has the meaning set forth in Section 7.1. 
 “Spinoff Agreements” means this Agreement, the
Separation Agreement and any Ancillary Agreement. 
 “Subsidiary” has the meaning set forth in the Separation Agreement.

 “Trading Day” means the period of time during any given calendar day, commencing with the determination of the opening
price on the NYSE and ending with the determination of the closing price on the NYSE, in which trading and settlement in shares of NOV Common Stock is permitted on the NYSE. 

“Transfer Date” means, with respect to any Post Distribution Transferred Employee, the date such Post Distribution
Transferred Employee becomes an employee of a SpinCo Entity. 
 “Transition Date” has the meaning set forth in
Section 7.1. 
 “Transition Services Agreement” has the meaning set forth in the Separation Agreement. 

“U.S.” means the United States of America. 

“Welfare Plan” means, where applicable, a “welfare plan” (as defined in Section 3(1) of ERISA) or a
“cafeteria plan” under Section 125 of the Code, and any benefits offered thereunder, and any other plan offering health benefits (including medical, prescription drug, dental, vision, and mental health and substance abuse), disability
benefits, or life, accidental death and disability, and business travel insurance, pre-tax premium conversion benefits, dependent care assistance programs, employee assistance programs, paid time off programs, contribution funding toward a health
savings account, flexible spending accounts, or cashable credits; provided, however, the term “Welfare Plan” does not include any workers compensation or similar insurance plans, programs or policies. 

  
 6 

 Section 1.2. Interpretation. The provisions of Section 10.16 of the Separation
Agreement are hereby incorporated by incorporated by reference. 
 ARTICLE II. 

GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES 

Section 2.1. General Principles. 

(a) Except as otherwise provided in the Spinoff Agreements, effective as of the Distribution Date, SpinCo, or one or more members of the SpinCo
Group (as determined by SpinCo), shall assume or continue the sponsorship of, and shall pay, perform and discharge, and no NOV Entity shall have any Liability with respect to or under, the following agreements, obligations and Liabilities, and
SpinCo shall indemnify each NOV Entity, and the officers, directors, and employees of each NOV Entity, and hold them harmless with respect to such agreements, obligations and Liabilities: 

                    (i) any
and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), commissions, bonuses, and any other employee compensation or benefits payable to or on behalf of any SpinCo Group Employee prior to, on or after the
Distribution Date, without regard to when such wages, salaries, incentive compensation, commissions, bonuses, or other employee compensation or benefits are or may have been earned; 

                    (ii)
any and all immigration-related, visa, work application or similar rights, obligations and Liabilities related to any SpinCo Group Employee; and 

                    (iii)
except as expressly provided in the Separation Agreement, any and all Liabilities and obligations whatsoever with respect to claims made by or on behalf of any SpinCo Group Employee in connection with any employee benefit plan, program or policy not
retained or assumed by any NOV Entity pursuant to the Spinoff Agreements, including any such Liabilities relating to actions or omissions of or by any SpinCo Entity or any officer, director, employee or agent thereof prior to, on or after the
Distribution Date. 
 (b) Except as otherwise provided in this Agreement, effective as of the Distribution Date, no SpinCo Entity shall have
any Liability with respect to or under, the following agreements, obligations and Liabilities, and NOV shall indemnify each SpinCo Entity, and the officers, directors, and employees of each SpinCo Entity, and hold them harmless with respect to such
agreements, obligations and Liabilities: 

                    (i) any
and all wages, salaries, incentive compensation, commissions, bonuses, and any other employee compensation or benefits payable to or on behalf of any NOV Group Employee or Former Employee prior to, on or after the Distribution Date, without regard
to when such wages, salaries, incentive compensation, commissions, bonuses, or other employee compensation or benefits are or may have been earned; 

  
 7 

                    (ii)
any and all immigration-related, visa, work application or similar rights, obligations and Liabilities related to any NOV Group Employee or Former Employee; and 

                    (iii)
any and all Liabilities and obligations whatsoever with respect to, claims made by or on behalf of any NOV Group Employee or Former Employee in connection with any employee benefit plan, program or policy not retained or assumed by any SpinCo Entity
pursuant to the Spinoff Agreements, including such Liabilities relating to actions or omissions of or by any NOV Entity or any officer, director, employee or agent thereof on, prior to or after the Distribution Date. 

(c) Notwithstanding the foregoing provisions of this Section 2.1(a): 

                    (i) if
a SpinCo Group Employee becomes an employee of the NOV Group after the Distribution Date, the indemnification obligations of SpinCo in Section 2.1(a), as they relate to such Employee, shall only apply to Liabilities arising prior to such
individual becoming an employee of the NOV Group after the Distribution Date; and 

                    (ii) if
a NOV Group Employee or Former Employee becomes an employee of the SpinCo Group after the Distribution Date, the indemnification obligations of NOV in Section 2.1(b), as they relate to such Employee, shall only apply to Liabilities arising
prior to such individual becoming an employee of the SpinCo Group after the Distribution Date. 
 Section 2.2. Service Credit.

 (a) Service for Eligibility and Vesting Purposes. Except as otherwise provided in any other provision of this Agreement and
subject to applicable Law, from and after the Distribution Date, SpinCo shall, and shall cause each other SpinCo Entity to, take commercially reasonable steps to give each SpinCo Group Employee’s and Post Distribution Transferred
Employee’s full service credit for purposes of eligibility and vesting under any SpinCo Benefit Plan for pre-Distribution Date service with any NOV Entity, to the same extent such service was properly recognized by the applicable NOV Benefit
Plans immediately prior to the Distribution Date. 
 (b) Evidence of Prior Service. Notwithstanding anything to the contrary,
but subject to applicable Law, upon reasonable request by either Party (the “Requesting Party”), the other Party (the “Providing Party”) will timely provide to the Requesting Party copies of any records available to
the Providing Party to document the service, plan participation and membership of former Employees of the Providing Party who are then Employees of the Requesting Party, and will cooperate with the Requesting Party to resolve any discrepancies or
obtain any missing data for purposes of determining benefit eligibility, participation, vesting and calculation of benefits with respect to any such Employee. 

  
 8 

 Section 2.3. Transition Services. The NOV Group or the SpinCo Group may provide
administrative services for certain of the other Party’s benefit programs, payroll and other related matters for a transitional period under the terms of the Transition Services Agreement. The Parties agree to enter into a business associate
agreement (if required by HIPAA or other applicable health information privacy Laws) in connection with such Transition Services Agreement. 

Section 2.4. No Duplication or Acceleration of Benefits. Notwithstanding anything to the contrary in the Spinoff Agreements, no
participant in or beneficiary of the SpinCo 401(k) Plan, SpinCo Welfare Plans or other SpinCo Benefit Plans shall receive benefits under such SpinCo Benefits Plans to the extent that receipt of such benefits would result in duplication of benefits
provided by the corresponding Benefit Plan or arrangement of any NOV Entity. Furthermore, unless expressly provided for in the Spinoff Agreements or required by applicable Law, no provision in this Agreement shall be construed to create any right to
accelerate vesting or entitlements under any compensation arrangement or Benefit Plan on the part of or with respect to any NOV Group Employee, Former Employee, SpinCo Group Employee, or Post Distribution Transferred Employee. 

ARTICLE III. 
 ASSIGNMENT OF
EMPLOYEES 
 Section 3.1. Active Employees. 

(a) SpinCo Group Employees. Except as otherwise set forth in this Agreement, effective not later than immediately prior to the
Distribution Date, NOV or its applicable Subsidiary shall have taken such actions as are necessary to ensure that each individual who is intended to be an employee of the SpinCo Group following the Distribution is employed by a SpinCo Entity
immediately prior to the Distribution. Individuals referred to in the immediately preceding sentence who commence active employment with a SpinCo Entity shall be referred to as the “SpinCo Group Employees.” Each of the Parties shall
execute, and shall seek to have the applicable employees execute, such documentation, if any, as may be necessary to reflect such assignments and transfers. 

(b) NOV Group Employees. Except as otherwise set forth in this Agreement, effective not later than immediately prior to the Distribution
Date, NOV or its applicable Subsidiary shall have taken such actions as are necessary to ensure that each individual who is intended to be an employee of the NOV Group following the Distribution (collectively, the “NOV Group
Employees”) is employed by a NOV Entity immediately prior to the Distribution. Each of the Parties shall execute, and shall seek to have the applicable employees execute, such documentation, if any, as may be necessary to reflect such
assignments and transfers. 
 (c) At-Will Status. Notwithstanding the above or any other provision of this Agreement (except as
provided under Article IX), nothing in this Agreement shall create any obligation on the part of any NOV Entity or any SpinCo Entity to (i) continue the employment of any Employee or permit the return from a leave of absence for any period
following the date of this Agreement or the Distribution Date (except as required by applicable Law) or (ii) change the employment status of any Employee from “at will,” to the extent such Employee is an “at will” employee
under applicable Law. 

  
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 (d) Severance. The Distribution and the assignment, transfer or continuation of the
employment of Employees as contemplated by this Section 3.1 shall not entitle any Employee to any termination pay, separation pay, salary continuation, severance payments or similar benefits from any member of the NOV Group or the SpinCo Group.

 (e) Not a Change of Control/Change in Control. Neither the consummation of the Distribution nor any transaction in connection with
the Distribution shall be deemed a “change of control,” “change in control,” or term of similar import for purposes of any Benefit Plan of any NOV Entity or of any SpinCo Entity. 

(f) Payroll and Related Taxes. With respect to the tax year containing the Distribution Date, SpinCo will (i) be responsible for
all payroll obligations, tax withholding, and reporting obligations regarding SpinCo Group Employees and (ii) furnish a Form W-2 or similar earnings statement to all SpinCo Group Employees. With respect to the portion of the tax year ending on
and including the day prior to the Transfer Date, SpinCo will (i) be responsible for all payroll obligations, tax withholding and reporting obligations and (ii) furnish a Form W-2 or similar earnings statement, to all Post Distribution
Transferred Employees, if any, who were employed by any member of the NOV Group during such period. With respect to each affected Post Distribution Transferred Employee, NOV and SpinCo shall, and shall cause their respective Affiliates to (to the
extent permitted by applicable Law and practicable) (i) treat SpinCo (or the applicable SpinCo Entity) as a “successor employer” and NOV (or the applicable NOV Entity) as a “predecessor,” within the meaning of Sections
3121(a)(1) and 3306(b)(1) of the Code, to the extent appropriate, for purposes of taxes imposed under the United States Federal Insurance Contributions Act, as amended (“FICA”), or the United States Federal Unemployment Tax Act, as
amended (“FUTA”), (ii) cooperate with each other to avoid, to the extent possible, the restart of FICA and FUTA upon or following the Transfer Date with respect to each Post Distribution Transferred Employee for the tax year
during which the Transfer Date occurs, and (iii) file tax returns, exchange wage payment information, and report wage payments made by the respective predecessor and successor employer on separate IRS Forms W-2 or similar earnings statements to
each such Post Distribution Transferred Employee for the tax year in which the Transfer Date occurs, in a manner provided in Section 5 of Revenue Procedure 2004-53. 

Section 3.2. Employee Records. NOV shall provide to SpinCo copies of any and all employment records and information (including,
but not limited to, any employee files, Form I-9, Form W-2 or other IRS forms) with respect to the SpinCo Group Employees or Post Distribution Transferred Employees and other records reasonably required by SpinCo to enable SpinCo to properly carry
out its obligations under this Agreement and under applicable Law. Such provision of records and information shall occur as soon as administratively practicable on or after the Distribution Date or Transfer Date, as applicable, and in all events no
later than as required by applicable Law. With respect to any non-electronic copies of employee records and information, NOV shall maintain such employee records and information, including compensation data, consistent with existing document
retention polices and they will be made available to SpinCo upon request. Subject to applicable Law, each Party shall permit the other Party reasonable access to employee records and information, to the extent reasonably necessary

  
 10 

 
for such accessing Party to carry out its obligations hereunder. SpinCo shall bear or reimburse NOV for all reasonable out-of-pocket expenses that are properly substantiated in writing and that
are associated with accessing any files stored at third party facilities, and NOV shall have no liability for any loss or damage to files caused (in connection with such access by SpinCo) by third parties or events outside of NOV’s reasonable
control. 
 Section 3.3. Termination of Participation in NOV Benefit Plans. Except as otherwise specified in the Spinoff Agreements,
each SpinCo Entity shall terminate its participation in any and all NOV Benefit Plans as of the Distribution Date or at such earlier time as NOV, in its discretion, may direct. 

ARTICLE IV. 
 EQUITY AND INCENTIVE
COMPENSATION PLANS 
 Section 4.1. Stock Options. 

(a) NOV Group Employees and Former Employees. Each NOV Option that is outstanding as of the Distribution Date and held by a NOV
Group Employee or a Former Employee shall remain an option to purchase NOV Common Stock issued under the applicable NOV Equity Plan (each such option, an “Adjusted NOV Option”). Each Adjusted NOV Option shall be subject to the same
terms and conditions after the Distribution Date as the terms and conditions applicable to the corresponding NOV Option immediately prior to the Distribution Date; provided, however, that from and after the Distribution Date: 

(i) the per-share exercise price of each such Adjusted NOV Option shall be equal to the product of (A) the per-share
exercise price of the corresponding NOV Option immediately prior to the Distribution Date multiplied by (B) the NOV Price Ratio, rounded up to the nearest whole hundredth of a cent; and 

(ii) the number of shares of NOV Common Stock subject to each such Adjusted NOV Option shall be equal to the product of
(A) the number of shares of NOV Common Stock subject to the corresponding NOV Option immediately prior to the Distribution Date multiplied by (B) the NOV Share Ratio, with any fractional share rounded down to the nearest whole share. 

(b) SpinCo Group Employees. Each NOV Option that is outstanding as of the Distribution Date and held by a SpinCo Group Employee
shall be converted as of the Distribution Date into an option to purchase SpinCo Common Stock (each such option, a “SpinCo Option”) pursuant to the terms of the SpinCo Equity Plan. Each SpinCo Option shall be subject to terms and
conditions after the Distribution Date that are substantially identical to the terms and conditions applicable to the corresponding NOV Option immediately prior to the Distribution Date; provided, however, that from and after the
Distribution Date: 
 (i) the per-share exercise price of each such SpinCo Option shall be equal to the product of
(A) the per-share exercise price of the corresponding NOV Option immediately prior to the Distribution Date multiplied by (ii) the SpinCo Price Ratio, rounded up to the nearest whole hundredth of a cent; and 

  
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 (ii) the number of shares of SpinCo Common Stock subject to each such SpinCo
Option shall be equal to the product of (A) the number of shares of NOV Common Stock subject to the corresponding NOV Option immediately prior to the Distribution Date multiplied by (B) the SpinCo Share Ratio, with any fractional share
rounded down to the nearest whole share. 
 (c) Post-Distribution Transferred Employees. Each outstanding NOV Option held by a
Post-Distribution Transferred Employee and that is outstanding as of the Transfer Date shall be converted as of the Transfer Date into an option to purchase SpinCo Common Stock (each such option, a “Delayed Transfer SpinCo Option”)
pursuant to the terms of the SpinCo Equity Plan. Each Delayed Transfer SpinCo Option shall be subject to terms and conditions after the Transfer Date that are substantially identical to the terms and conditions applicable to the corresponding NOV
Option immediately prior to the Transfer Date; provided, however, that from and after the Transfer Date: 
 (i)
the per-share exercise price of each such Delayed Transfer SpinCo Option shall be equal to the product of (A) the per-share exercise price of the corresponding NOV Option immediately prior to the Transfer Date multiplied by (ii) the SpinCo
Delayed Price Ratio, rounded up to the nearest whole hundredth of a cent; and 
 (ii) the number of shares of SpinCo Common
Stock subject to each such Delayed Transfer SpinCo Option shall be equal to the product of (A) the number of shares of NOV Common Stock subject to the corresponding NOV Option immediately prior to the Transfer Date multiplied by (B) the
SpinCo Delayed Share Ratio, with any fractional share rounded down to the nearest whole share. 
 (d) Sections 409A and 424.
The adjustment or conversion of an NOV Option shall be effectuated in a manner that is intended to avoid the imposition of any penalty or other taxes on the holders thereof pursuant to Section 409A of the Code and to comply with the applicable
provisions of Treasury Regulation Section 1.424-1. 
 Section 4.2. Restricted Stock Awards. 

(a) NOV Group Employees and Former Employees. Each NOV RSA that is outstanding as of the Distribution Date and held by a NOV
Group Employee or a Former Employee shall be adjusted by multiplying the number of shares of NOV Common Stock subject to such NOV RSA by the NOV Share Ratio (each such adjusted NOV RSA, an “Adjusted NOV RSA”). If the resulting
product includes a fractional share, the number of shares of NOV Common Stock subject to such Adjusted NOV RSA shall be rounded down to the nearest whole share. Each Adjusted NOV RSA shall be subject to the same terms and conditions after the
Distribution Date as the terms and conditions applicable to the corresponding NOV RSA immediately prior to the Distribution Date. 
 (b)
SpinCo Group Employees. Each NOV RSA that is outstanding as of the Distribution Date and held by a SpinCo Group Employee shall be converted as of the Distribution Date into a SpinCo restricted stock award (each such award, a
“SpinCo RSA”) pursuant to the terms of the SpinCo Equity Plan. Each SpinCo RSA shall be subject to terms and conditions after the Distribution Date that are substantially similar to the terms and conditions applicable to the
corresponding NOV RSA immediately prior to the Distribution Date; provided, however, that from and after the Distribution Date: 

  
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 (i) the number of shares of SpinCo Common Stock subject to each such SpinCo RSA
shall be set at a number equal to the product of (A) the number of shares of NOV Common Stock subject to the corresponding NOV RSA immediately prior to the Distribution Date multiplied by (B) the SpinCo Share Ratio, with any fractional
share rounded down to the nearest whole share; and 
 (ii) each such SpinCo RSA shall not be subject to any performance-based
vesting conditions but shall vest only upon completion of the originally established performance period of the corresponding NOV RSA, assuming the continued employment of the holder of such SpinCo RSA by SpinCo or a member of the SpinCo Group
through such period. 
 (c) Post-Distribution Transferred Employees. Each outstanding NOV RSA held by a Post-Distribution
Transferred Employee and that is outstanding as of the Transfer Date shall be converted as of the Transfer Date into a SpinCo restricted stock award (each such award, a “Delayed Transfer SpinCo RSA”) pursuant to the terms of the
SpinCo Equity Plan. Each Delayed Transfer SpinCo RSA shall be subject to terms and conditions after the Transfer Date that are substantially similar to the terms and conditions applicable to the corresponding NOV RSA immediately prior to the
Transfer Date; provided, however, that from and after the Transfer Date: 
 (i) the number of shares of SpinCo
Common Stock subject to each such Delayed Transfer SpinCo RSA shall be set at a number equal to the product of (A) the number of shares of NOV Common Stock subject to the corresponding NOV RSA immediately prior to the Transfer Date multiplied
by (B) the SpinCo Delayed Share Ratio, with any fractional share rounded down to the nearest whole share; and 
 (ii)
each such Delayed Transfer SpinCo RSA shall not be subject to any performance-based vesting conditions but shall vest only upon completion of the originally established performance period of the corresponding NOV RSA, assuming the continued
employment of the holder of such Delayed Transfer SpinCo RSA by SpinCo or a member of the SpinCo Group through such period. 

Section 4.3. Performance Share Awards. 

(a) NOV Group Employees and Former Employees. The target level of each NOV PSA that is outstanding as of the Distribution Date
and held by a NOV Group Employee or a Former Employee shall be adjusted by multiplying the target level number of shares of NOV Common Stock subject to such NOV PSA by the NOV Share Ratio (each such adjusted NOV PSA, an “Adjusted NOV
PSA”). If the resulting product includes a fractional share, the number of shares of NOV Common Stock subject to such Adjusted NOV PSA shall be rounded down to the nearest whole share. Each Adjusted NOV PSA shall be subject to the same
terms and conditions after the Distribution Date as the terms and conditions applicable to the corresponding NOV PSA immediately prior to the Distribution Date. 

  
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 (b) SpinCo Group Employees. Each NOV PSA that is outstanding as of the Distribution
Date and held by a SpinCo Group Employee shall be converted as of the Distribution Date into a SpinCo performance share award (each such award, a “SpinCo PSA”) pursuant to the terms of the SpinCo Equity Plan. Each SpinCo PSA shall
be subject to terms and conditions after the Distribution Date that are substantially similar to the terms and conditions applicable to the corresponding NOV PSA immediately prior to the Distribution Date; provided, however, that from
and after the Distribution Date: 
 (i) the number of shares of SpinCo Common Stock subject to each such SpinCo PSA shall be
set at a number equal to the product of (A) the target level number of shares of NOV Common Stock subject to the corresponding NOV PSA immediately prior to the Distribution Date multiplied by (B) the SpinCo Share Ratio, with any fractional
share rounded down to the nearest whole share; and 
 (ii) each such SpinCo PSA shall not be subject to any performance-based
vesting conditions but shall vest only upon completion of the originally established performance period of the corresponding NOV PSA, assuming the continued employment of the holder of such SpinCo PSA by SpinCo or a member of the SpinCo Group
through such period. 
 (c) Post-Distribution Transferred Employees. Each outstanding NOV PSA held by a Post-Distribution
Transferred Employee and that is outstanding as of the Transfer Date shall be converted as of the Transfer Date into a SpinCo performance share award (each such award, a “Delayed Transfer SpinCo PSA”) pursuant to the terms of the
SpinCo Equity Plan. Each Delayed Transfer SpinCo PSA shall be subject to terms and conditions after the Transfer Date that are substantially similar to the terms and conditions applicable to the corresponding NOV PSA immediately prior to the
Transfer Date; provided, however, that from and after the Transfer Date: 
 (i) the number of shares of SpinCo
Common Stock subject to each such Delayed Transfer SpinCo PSA shall be set at a number equal to the product of (A) the target level number of shares of NOV Common Stock subject to the corresponding NOV PSA immediately prior to the
Transfer Date multiplied by (B) the SpinCo Delayed Share Ratio, with any fractional share rounded down to the nearest whole share; and 

(ii) each such Delayed Transfer SpinCo PSA shall not be subject to any performance-based vesting conditions but shall vest only
upon completion of the originally established performance period of the corresponding NOV PSA, assuming the continued employment of the holder of such Delayed Transfer SpinCo PSA by SpinCo or a member of the SpinCo Group through such period. 

  
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 Section 4.4. Liabilities for Settlement of Awards. 

(a) Settlement of Adjusted NOV Options. NOV shall be responsible for all Liabilities associated with the Adjusted NOV
Options including any option exercise, share delivery, registration or other obligations related to the exercise of the Adjusted NOV Options. 

(b) Settlement of SpinCo Options. SpinCo shall be responsible for all Liabilities associated with the SpinCo Options
including any option exercise, share delivery, registration or other obligations related to the exercise of the SpinCo Options. 

(c) Settlement of Delayed Transfer SpinCo Options. SpinCo shall be responsible for all Liabilities associated with the
Delayed Transfer SpinCo Options including any option exercise, share delivery, registration or other obligations related to the exercise of the Delayed Transfer SpinCo Options. 

(d) Settlement of Adjusted NOV RSAs. NOV shall be responsible for all Liabilities associated with the Adjusted NOV RSAs
including any share delivery, registration or other obligations related to the settlement of the Adjusted NOV RSAs. 
 (e)
Settlement of SpinCo RSAs. SpinCo shall be responsible for all Liabilities associated with the SpinCo RSAs including any share delivery, registration or other obligations related to the settlement of the SpinCo RSAs. 

(f) Settlement of Delayed Transfer SpinCo RSAs. SpinCo shall be responsible for all Liabilities associated with the
Delayed Transfer SpinCo RSAs including any share delivery, registration or other obligations related to the settlement of the Delayed Transfer SpinCo RSAs. 

(g) Settlement of Adjusted NOV PSAs. NOV shall be responsible for all Liabilities associated with the Adjusted NOV PSAs,
including any share delivery, registration or other obligations related to the settlement of the Adjusted NOV PSAs. 
 (h)
Settlement of SpinCo PSAs. SpinCo shall be responsible for all Liabilities associated with the SpinCo PSAs, including any share delivery, registration or other obligations related to the settlement of the SpinCo PSAs. 

(i) Settlement of Delayed Transfer SpinCo PSAs. SpinCo shall be responsible for all Liabilities associated with the
Delayed Transfer SpinCo PSAs, including any share delivery, registration or other obligations related to the settlement of the Delayed Transfer SpinCo PSAs. 

Section 4.5. Bonus and Incentive Payments. 

(a) Not later than the Distribution Date, SpinCo shall, or shall cause another SpinCo Entity to, take commercially reasonable steps to adopt a
plan that will provide annual bonus or short-term cash incentive opportunities for SpinCo Group Employees and Post-Distribution Transferred Employees that are substantially similar to the opportunities provided to such Employees immediately prior to
the Distribution Date (the “SpinCo Annual Bonus Plan”), 

  
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subject to SpinCo’s right to amend or terminate such plan after the Distribution Date in accordance with the terms thereof. The SpinCo Annual Bonus Plan shall be approved prior to the
Distribution Date by NOV, as the sole shareholder of SpinCo, and SpinCo Group Employees shall participate in such SpinCo Annual Bonus Plan immediately following the Distribution Date; provided, however, for the 2014 performance period, in
determining whether the performance goals under the SpinCo Annual Bonus Plan have been achieved, SpinCo shall take into account the financial and operational performance of the SpinCo Business prior to the Distribution Date, and service with NOV
shall be credited for the purposes of determining whether such SpinCo Group Employee had been a participant in the SpinCo Annual Bonus Plan during such performance period. 

(b) For the avoidance of doubt, (i) the NOV Group shall be solely responsible for funding, paying, and discharging all obligations
relating to any annual cash incentive awards that any NOV Group Employee is eligible to receive under any NOV annual bonus plans with respect to payments made beginning at or after the Distribution Date, including the NOV Annual Bonus Plan, and no
SpinCo Entity shall have any obligations with respect thereto, and (ii) the SpinCo Group shall be solely responsible for funding, paying, and discharging all obligations relating to any annual cash incentive awards that any SpinCo Group
Employee or Post Distribution Transferred Employee is eligible to receive under any SpinCo Group annual bonus and other short-term incentive compensation plans with respect to payments made beginning at or after the Distribution Date, including the
SpinCo Annual Bonus Plan, and no NOV Entity shall have any obligations with respect thereto. 
 Section 4.6. Form S-8. Upon or
as soon as reasonably practicable after the Distribution Date and subject to applicable Law, SpinCo shall take commercially reasonable steps to prepare and file with the SEC a registration statement on Form S-8 (or another appropriate form)
registering under the Securities Act the offering of a number of shares of SpinCo Common Stock at a minimum equal to the number of shares subject to the SpinCo Options, the SpinCo RSAs and the SpinCo PSAs. SpinCo shall use commercially reasonable
efforts to cause any such registration statement to be kept effective (and the current status of the prospectus or prospectuses required thereby to be maintained) as long as any such equity awards remain outstanding. 

Section 4.7. Tax Reporting and Withholding for Equity-Based Awards. NOV (or one of its Subsidiaries) will be responsible for all
income, payroll, or other tax reporting related to income of NOV Group Employees or Former Employees from equity-based awards, and SpinCo (or one of its Subsidiaries) will be responsible for all income, payroll, or other tax reporting related to
income of SpinCo Group Employees from equity-based awards. Similarly, NOV will be responsible for all income, payroll, or other tax reporting related to income of its non-employee directors from equity-based awards, and SpinCo will be responsible
for all income, payroll, or other tax reporting related to income of its non-employee directors from equity-based awards. Further, NOV (or one of its Subsidiaries) shall be responsible for remitting applicable tax withholdings for NOV Group
Employees to each applicable taxing authority, and SpinCo (or one of its Subsidiaries) shall be responsible for remitting applicable tax withholdings for SpinCo Group Employees to each applicable taxing authority; provided, however,
that either NOV or SpinCo shall act as agent for the other company by remitting amounts withheld in the form of shares or in conjunction with an exercise transaction to an appropriate taxing authority. The Parties will cooperate with each other and
with third-party providers to effectuate withholding and remittance of taxes, as well as required tax reporting, in a timely, efficient, and appropriate manner. 

  
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 Section 4.8. Approval of SpinCo Equity Plan. Not later than the Distribution Date,
SpinCo shall, or shall have caused a SpinCo Entity to, take commercially reasonable steps to adopt the SpinCo Equity Plan. The SpinCo Equity Plan shall be approved prior to the Distribution Date by NOV, as the sole shareholder of SpinCo. 

ARTICLE V. 
 U.S. QUALIFIED
RETIREMENT PLANS 
 Section 5.1. Defined Benefit Plans. The NOV Group shall retain all Assets and all Liabilities arising out of
or relating to all Benefit Plans subject to Title IV of ERISA that are sponsored, maintained, contributed to by or required to be contributed to by any NOV Entity or with respect to which any NOV Entity has or could have any liability (“NOV
Pension Plans”). Immediately prior to the Distribution Date or Transfer Date, each SpinCo Group Employee or Post Distribution Transferred Employee, respectively, who is a participant in any NOV Pension Plan (the “SpinCo Pension
Participants”) shall cease to actively participate in all such NOV Pension Plans. As of the Distribution Date or Transfer Date, as applicable, each such SpinCo Pension Participant shall be treated in accordance with the terms of the
applicable NOV Pension Plan(s) as a terminated vested participant under such NOV Pension Plan(s). No SpinCo Entity shall have any obligation to adopt, sponsor, maintain, participate in, contribute to or otherwise become liable with respect to any
Benefit Plan subject to Title IV of ERISA as a result of the Distribution or otherwise. 
 Section 5.2. Defined Contribution
Plans. 
 (a) Establishment of the SpinCo 401(k) Plan. No later than the Distribution Date, SpinCo shall, or shall
cause another SpinCo Entity to, take commercially reasonable steps to establish a defined contribution plan and trust for the benefit of SpinCo Group Employees (the “SpinCo 401(k) Plan”). SpinCo shall be responsible for taking all
commercially reasonable steps to establish, maintain, and administer the SpinCo 401(k) Plan with the intention that it be qualified under Section 401(a) of the Code and that the related trust thereunder be exempt under Section 501(a) of
the Code. SpinCo (acting directly or through its Affiliates) shall be responsible for any and all Liabilities and other obligations with respect to the SpinCo 401(k) Plan. 

(b) Transfer of NOV 401(k) Plan Assets. Not later than 90 days following the Distribution Date (or such later time as mutually
agreed by the Parties), NOV shall cause the vested accounts (including any outstanding loan balances) in the NOV 401(k) Plan attributable to SpinCo Group Employees who will participate in the SpinCo 401(k) Plan (the “SpinCo 401(k) Plan
Beneficiaries”) and all of the assets in the NOV 401(k) Plan trust related thereto (the “NOV 401(k) Plan SpinCo Assets”) to be transferred in kind or (at the election of the trustee of the NOV 401(k) Plan) in cash to the
SpinCo 401(k) Plan, and SpinCo shall cause the SpinCo 401(k) Plan to accept such transfer of accounts and underlying NOV 401(k) Plan SpinCo Assets (including any participant promissory notes) and, effective as of the date of such transfer, to assume
and to fully perform, pay, and discharge, all obligations of the NOV 401(k) Plan relating 

  
 17 

 
to the accounts of the SpinCo 401(k) Plan Beneficiaries (to the extent the NOV 401(k) Plan SpinCo Assets related to those accounts are actually transferred from the NOV 401(k) Plan to the SpinCo
401(k) Plan). Notwithstanding any provision to the contrary, the transfer of NOV 401(k) Plan SpinCo 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. NOV shall be responsible for taking all necessary, reasonable and appropriate action so that, as of the date of transfer of the NOV 401(k) Plan SpinCo Assets and as of any other date relevant for purposes of this Agreement, the NOV 401(k)
Plan is qualified under Section 401(a) of the Code and the related trust thereunder is exempt under Section 501(a) of the Code. 

(c) Continuation of Elections. Subject to Section 5.2(d), as of the Distribution Date, SpinCo (acting directly or through its
Affiliates) shall take commercially reasonable steps to cause the SpinCo 401(k) Plan to recognize and maintain all NOV 401(k) Plan 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 401(k) Plan Beneficiaries, to the extent such election or designation is available under the SpinCo 401(k) Plan and may be continued under applicable
Law. Prior to the Distribution Date, NOV shall provide written notice to all individuals anticipated to be SpinCo 401(k) Plan Beneficiaries of the intended continuation of such elections. Any deferrals under the SpinCo 401(k) Plan with respect to
SpinCo 401(k) Plan Beneficiaries will begin on the first payroll period following the Distribution Date or Transfer Date, as applicable. 

(d) Treatment of SpinCo Common Stock and NOV Common Stock. 

(i) SpinCo Common Stock Held in NOV 401(k) Plan Accounts. Shares of SpinCo Common Stock distributed in connection
with the Distribution in respect of shares of NOV Common Stock held in NOV 401(k) Plan accounts of NOV Group Employees or Former Employees who participate in the NOV 401(k) Plan (the “NOV 401(k) Plan Beneficiaries”) shall be
deposited in a SpinCo Common Stock fund under the NOV 401(k) Plan, and NOV 401(k) Plan Beneficiaries will be prohibited from increasing their holdings in such SpinCo Common Stock fund under the NOV 401(k) Plan, unless the fund is transferred to a
self-directed brokerage account, and may elect to liquidate their holdings in such SpinCo Common Stock fund and invest those monies in any other investment fund offered under the NOV 401(k) Plan. Any shares of SpinCo Common Stock held in NOV 401(k)
Plan accounts of SpinCo Group Employees shall be transferred in kind to the trust underlying the SpinCo 401(k) Plan pursuant to Section 5.2(b). 

(ii) SpinCo Common Stock Fund. The SpinCo 401(k) Plan will provide, effective as of the Distribution Date:
(1) for the establishment of a SpinCo Common Stock fund and (2) that such SpinCo Common Stock fund shall receive a transfer of and hold all shares of SpinCo Common Stock distributed in connection with the Distribution in respect of NOV
Common Stock held in NOV 401(k) Plan accounts of SpinCo 401(k) Plan Beneficiaries. 

  
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 (iii) NOV Common Stock in SpinCo 401(k) Plan Accounts. Without
limiting the generality of the provisions of Section 5.2(b), shares of NOV Common Stock held in NOV 401(k) Plan accounts of SpinCo 401(k) Plan Beneficiaries prior to the Distribution Date shall be transferred in kind to a NOV Common Stock Fund
under the SpinCo 401(k) Plan pursuant to Section 5.2(b). SpinCo 401(k) Plan Beneficiaries will be prohibited from increasing their holdings in NOV Common Stock under such NOV Common Stock Fund and may elect to liquidate their holdings in such
NOV Common Stock Fund and invest those monies in any other investment fund offered under the SpinCo 401(k) Plan. 
 (e) Tax Qualified
Status. SpinCo will take commercially reasonable steps to establish and maintain the SpinCo 401(k) Plan with the intention that it be qualified under Section 401(a) of the Code and that the related trust be tax-exempt under
Section 501(a) of the Code. 
 ARTICLE VI. 

U.S. NONQUALIFIED DEFERRED COMPENSATION PLAN 

Section 6.1. Assets and Liabilities. Except as provided in Section 6.5, the NOV Group shall retain all Assets and all
Liabilities arising out of or relating to the NOV Nonqualified Plan, and shall timely make payments to all SpinCo Group Employees or Post Distribution Transferred Employees who are participants in the NOV Nonqualified Plan (the “Nonqualified
Plan Participants”) in accordance with the terms of the NOV Nonqualified Plan, as amended. 
 Section 6.2. Participation;
Distributions. The Nonqualified Plan Participants shall cease contributing to and accruing benefits under the NOV Nonqualified Plan as of the Distribution Date or Transfer Date, as applicable. Subject to the terms of the applicable NOV
Nonqualified Plan, none of the transactions contemplated by the Separation Agreement or any Ancillary Agreement will trigger a payment or distribution of compensation under the NOV Nonqualified Plan for any Nonqualified Plan Participant. The payment
or distribution of any compensation to which any Nonqualified Plan Participant is entitled under the NOV Nonqualified Plan will occur upon such Nonqualified Plan Participant’s separation from service from the SpinCo Group, if so provided
pursuant to the terms of such plan and any applicable deferral election, or at such other time as provided in the NOV Nonqualified Plan or such Nonqualified Plan Participant’s deferral election. 

Section 6.3. Establishment of SpinCo Nonqualified Plan. On or prior to the Distribution Date, SpinCo shall, or shall cause another
SpinCo Entity to, establish and adopt a nonqualified deferred compensation plan (the “SpinCo Nonqualified Plan”), which will provide nonqualified deferred compensation benefits substantially similar to those provided pursuant to the
NOV Nonqualified Plan to each SpinCo Group Employee or Post Distribution Transferred Employee who is transferred from the NOV Group to the SpinCo Group who is a participant in the NOV Nonqualified Plan as of the Distribution Date (“SpinCo
Nonqualified Plan Beneficiaries”). 
 Section 6.4. Continuation of Elections. As of the Distribution Date, SpinCo (acting
directly or through its Affiliates) shall cause the SpinCo Nonqualified Plan to recognize and maintain all NOV Nonqualified Plan elections, including but not limited to, deferral, investment and payment form elections, beneficiary designations, and
the rights of alternate payees under 

  
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qualified domestic relations orders with respect to SpinCo Nonqualified Plan Beneficiaries, to the extent such election or designation is available under the SpinCo Nonqualified Plan. Prior to
the Distribution Date, NOV shall provide written notice to all individuals anticipated to be SpinCo 401(k) Plan Beneficiaries of the intended continuation of such elections. Any deferrals under the SpinCo Nonqualified Plan with respect to SpinCo
Nonqualified Plan Beneficiaries will begin on the first payroll period following the Distribution Date or Transfer Date, as applicable. 

Section 6.5. Transfer of Assets. Not earlier than the 10th anniversary of the
Distribution Date (or such earlier time as SpinCo may elect in its sole discretion), NOV shall cause all accounts remaining in the NOV Nonqualified Plan at such time that are attributable to SpinCo Employees or Post Distribution Transferred
Employees and all of the Assets and Liabilities in the NOV Nonqualified Plan related thereto to be transferred in-kind to the SpinCo Nonqualified Plan, and SpinCo shall cause the SpinCo Nonqualified Plan to accept such transfer of accounts, Assets
and Liabilities and, effective as of such transfer, to assume and to fully perform, pay and discharge, all obligations of the NOV Nonqualified Plan relating to such accounts (to the extent the Assets related to those accounts are actually
transferred from the NOV Nonqualified Plan to the SpinCo Nonqualified Plan) as of the date of such transfer. 
 ARTICLE VII. 

U.S. HEALTH & WELFARE PLANS 

Section 7.1. Establishment of SpinCo Welfare Plans. On or prior to the Distribution Date, SpinCo shall, or shall cause another
SpinCo Entity to, take commercially reasonable steps to establish and adopt SpinCo Welfare Plans, which will provide welfare benefits to each SpinCo Group Employee or Post Distribution Transferred Employee who is transferred from the NOV Group to
the SpinCo Group who is a participant, as of the Distribution Date or Transfer Date, as applicable, in the analogous NOV Welfare Plans (and their eligible spouses and dependents, as the case may be) (collectively, the “SpinCo Welfare Plan
Participants”). Coverage and benefits under the SpinCo Welfare Plans shall be intended to be provided to the SpinCo Welfare Plan Participants on an uninterrupted basis under the newly established SpinCo Welfare Plans. Subject to applicable
Law and the terms of the applicable NOV Welfare Plans, SpinCo Welfare Plan Participants shall cease to be eligible for coverage under the NOV Welfare Plans at the Distribution Date or Transfer Date, as applicable. 

Section 7.2. Transitional Matters Under SpinCo Welfare Plans 

(a) Treatment of Claims Incurred. 

(i) Liability for Claims. With respect to unpaid covered claims incurred prior to the Distribution Date or
Transfer Date, as applicable, by any SpinCo Welfare Plan Participant under any NOV Welfare Plans, including claims that are self-insured and claims that are fully insured through third-party insurance, NOV shall retain and be responsible for the
payment for such claims or shall cause such NOV Welfare Plans to fully perform, pay and discharge all such claims, as the case may be, and except as provided in Section 7.2(a)(iv), no SpinCo Entity shall be responsible for any Liability with
respect to any such claims. 

  
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 (ii) Claims Incurred. For purposes of this Section 7.2(a), a
claim or expense is deemed to be incurred (A) with respect to medical (including continuous hospitalization), dental, vision and/or prescription drug benefits, upon the rendering of health services giving rise to such claim or expense;
(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 expense; (C) with respect to short- and 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 expense; and (D) with respect to any other claim, upon the date of the
event giving rise to such claim. 
 (iii) Short and Long Term Disability Benefits. Employees of the SpinCo
Group who are receiving Short Term Disability or Long Term Disability (“Disability”) benefits immediately prior to the Distribution Date shall have their employment transferred to a NOV Entity effective immediately prior to the
Distribution Date and shall be NOV Group Employees for all purposes of this Agreement. If any such Employee is released to return to work or becomes no longer entitled to receive Disability benefits on or after the Distribution Date, and provided
that SpinCo is notified by NOV in writing of such fact, SpinCo shall consider if there are any positions within the SpinCo Group for which such Employee may be qualified, but SpinCo shall have no obligation to hire such Employee. 

(b) COBRA and HIPAA. The NOV Group shall be responsible for the COBRA claims incurred by Employees (and their qualifying
beneficiaries) prior to the Distribution Date or Transfer Date, as applicable, regardless of whether payments for such claims are made or due after the Distribution Date or Transfer Date, as applicable. At and after the Distribution Date, SpinCo
shall assume all requirements under COBRA with respect to all SpinCo Group Employees or Post Distribution Transferred Employees (and their qualifying beneficiaries) who, as of the Distribution Date or Transfer Date, as applicable, are covered under
a SpinCo Benefit Plan and who have a COBRA qualifying event (as defined in Section 4980B of the Code) on or after the Distribution Date or Transfer Date. NOV (acting directly or through its Affiliates) shall be responsible for administering
compliance with any certificate of creditable coverage requirements of HIPAA applicable to the NOV Welfare Plans with respect to SpinCo Group Employees or Post Distribution Transferred Employees. Neither the Distribution nor any transfers of
employment that occur as of the Distribution Date shall constitute a COBRA qualifying event (as defined in Section 4980B of the Code). 

Section 7.3. Waiver of Conditions or Restrictions. Unless prohibited by applicable Law and subject to the cooperation of
applicable third-party insurers and administrators, SpinCo will take commercially reasonable steps to cause the SpinCo Welfare Plans to waive all limitations as to preexisting conditions, exclusions, service conditions, waiting period limitations or
evidence of insurability requirements that would otherwise be applicable to the SpinCo Welfare Plan Participant following the Distribution Date or Transfer Date, as applicable, to the extent that such Employee had previously satisfied such
limitation under the corresponding NOV Welfare Plan. 

  
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 Section 7.4. Insurance Contracts. To the extent any NOV Welfare Plan is funded
through the purchase of an insurance contract or is subject to any stop loss contract, NOV and SpinCo will cooperate and use their commercially reasonable efforts to replicate such insurance contracts for SpinCo (except to the extent changes are
required under applicable state insurance Laws or filings by the respective insurers) and to maintain any pricing discounts or other preferential terms for both NOV and SpinCo for a reasonable term. Neither Party shall be liable for failure to
obtain such insurance contracts, pricing discounts, or other preferential terms for the other Party. Each Party shall be responsible for any new or additional premiums, charges, or administrative fees that such Party may incur with respect to its
insurance coverage pursuant to this Section 7.4. 
 Section 7.5. Third-Party Vendors. Except as provided below, to the
extent any NOV Welfare Plan is administered by a third-party vendor, NOV and SpinCo will cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for SpinCo and to maintain any pricing discounts
or other preferential terms for both NOV and SpinCo for a reasonable term. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party. Each Party shall be responsible for any new or
additional premiums, charges, or administrative fees that such Party may incur with respect to its contracts pursuant to this Section 7.5. 

Section 7.6. Workers’ Compensation. With respect to claims for workers compensation in the United States, (a) the NOV
Group shall be responsible for claims in respect of (i) NOV Group Employees and Former Employees, whether occurring prior to, on or following the Distribution Date and (ii) SpinCo Group Employees occurring prior to the Distribution Date,
and (b) the SpinCo Group shall be responsible for all claims in respect of SpinCo Group Employees and Post Distribution Transferred Employees occurring on or following the Distribution Date or Transfer Date, respectively. For purposes of this
Section 7.6, claims shall be deemed to be incurred upon the occurrence of the injury giving rise to such claim. 
 Section 7.7.
Reimbursement Account Plan. On or prior to the Distribution Date, SpinCo shall, or shall cause another SpinCo Entity to, take commercially reasonable steps to establish and adopt a health and dependent care reimbursement account plan (the
“SpinCo Reimbursement Account Plan”) substantially identical to the health and dependent care reimbursement account plan maintained by NOV immediately prior to the Distribution for the benefit of SpinCo Welfare Plan Participants
immediately prior to the Distribution Date (the “NOV Reimbursement Account Plan”). The Parties shall take all actions appropriate to cause a spin-off of the portion of the NOV Reimbursement Account Plan covering SpinCo Group
Employees to the SpinCo Reimbursement Account Plan in accordance with Revenue Ruling 2002-32 and subsequent guidance. Participant elections, contribution levels and coverage levels, as in effect prior to the Distribution Date, as applicable, under
the NOV Reimbursement Account Plan, will continue to be effective on and after the Distribution Date, as applicable, under the SpinCo Reimbursement Account Plan. Prior to the Distribution Date, NOV shall provide written notice to all individuals
anticipated to be participate in the SpinCo Reimbursement Account Plan immediately after the Distribution of the intended continuation of such elections. As soon as reasonably practicable following the Distribution Date, NOV will transfer to SpinCo
or a SpinCo Entity an amount equal to the aggregate participant contributions to the NOV Reimbursement Plan made in the calendar year in which the Distribution Date occurs through the Distribution 

  
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Date, less reimbursements during that period. NOV will not be responsible for, and will have no liability relating to, resulting from, or arising out of the provision of health reimbursement and
dependent care reimbursement benefits to SpinCo Group Employees following the transfer of the health flexible spending account balances and dependent care flexible spending account balances to the SpinCo Reimbursement Account Plan, except to the
extent related to the transfer of balances from the NOV Reimbursement Account Plan to the SpinCo Reimbursement Account Plan. SpinCo intends that the SpinCo Reimbursement Account Plan will be available on and after the Distribution Date. 

ARTICLE VIII. 
 BENEFIT
ARRANGEMENTS AND OTHER MATTERS 
 Section 8.1. Termination of Participation. Except as otherwise provided under applicable Law,
the applicable NOV Benefit Plan or this Agreement or in the Transition Services Agreement, effective as of the Distribution Date or Transfer Date, SpinCo Group Employees and Post Distribution Transferred Employees, respectively, shall cease
participating in any NOV Benefit Plan. 
 Section 8.2. Accrued Time Off. SpinCo shall recognize and assume all Liability for all
unused vacation, holiday, sick leave, flex days, personal days and paid-time off and other time-off benefits that accrued on or prior to the Distribution Date (with respect to SpinCo Group Employees) or the Transfer Date (with respect to Post
Distribution Transferred Employees), and SpinCo shall credit each SpinCo Group or Post Distribution Transferred Employee with such accrual. Within thirty (30) days after the Distribution Date or Transfer Date, as applicable, the NOV Group will
calculate (which calculation SpinCo may review and approve prior to payment pursuant thereto) the accrued, used and unused vacation entitlement of the SpinCo Group and Post Distribution Transferred Employees as of the time immediately prior to the
Distribution Date or Transfer Date, as applicable, except for any carry-over amounts from calendar year 2013 to 2014, and shall make a cash payment based on such Employee’s annualized rate of pay immediately prior to the Distribution Date or
Transfer Date, as applicable, to the SpinCo Group in respect of the vacation entitlement of the SpinCo Group Employee or Post Distribution Transferred Employee, as applicable. 

Section 8.3. Leaves of Absence. SpinCo will continue to apply the appropriate leave of absence policies (including compliance with
the Family and Medical Leave Act) applicable to inactive SpinCo Group Employees and Post Distribution Transferred Employees who are on an approved leave of absence as of the Distribution Date or Transfer Date, as applicable. Subject to
Section 7.2, leaves of absence taken by SpinCo Group or Post Distribution Transferred Employees prior to the Distribution Date or Transfer Date, as applicable, and from which such Employees have not returned to active employment as of the
Distribution Date or Transfer Date, as applicable, shall be deemed to have been taken as employees of a SpinCo Entity. 

  
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 ARTICLE IX. 

NON-U.S. EMPLOYEES 

Section 9.1. General Principles. Except as explicitly set forth in this Article IX, NOV Group Employees and SpinCo Group Employees
who are resident outside of the United States or otherwise are subject to non-U.S. Law and their related benefits and obligations shall be treated in the same manner as the NOV Group Employees and SpinCo Group Employees who are resident of the
United States are treated under this Agreement, mutatis mutandis. All actions taken with respect to non-U.S. Employees in connection with the Distribution will be accomplished in accordance with applicable Law and custom in each of the applicable
jurisdictions. 
 Section 9.2. Treatment of Equity Awards Held By Non-U.S. Employees. 

(a) Canadian Holders. For the purposes of this Agreement a NOV Option, NOV RSA or NOV PSA, as applicable, is held by a “Canadian
Holder” if such NOV Option, NOV RSA or NOV PSA is held by a Person who is a resident of Canada for the purposes of Canada Tax Act or by a Person who was granted such NOV Option, NOV RSA or NOV PSA in respect of, in the course of, or by virtue
of employment in Canada. In respect of any NOV Option, NOV RSA or NOV PSA held by a Canadian Holder, notwithstanding the other provisions of Sections 4.1, 4.2 or 4.3, as applicable, the following rules apply: 

(i) Timing for Canadian Holders. The adjustment or conversion of each NOV Option, NOV RSA or NOV PSA held by a
Canadian Holder shall be effected with such modifications as may be required such that any action under Sections 4.1, 4.2 or 4.3 which is called for at or as of the Distribution Date shall be taken or completed immediately prior to the Distribution
Date; 
 (ii) Application of Canada Tax Act. It is intended that the provisions of subsection 7(1.4) of the
Canada Tax Act apply to the adjustment or conversion of each NOV Option, NOV RSA or NOV PSA held by a Canadian Holder. 

(iii) Greater Certainty. For greater certainty, in respect of the application of subsection 7(1.4) of the Canada
Tax Act to the adjustment or conversion of any NOV Option, NOV RSA or NOV PSA held by a Canadian Holder, the computation of each amount under Sections 4.1, 4.2 or 4.3, as applicable, shall be undertaken in respect of each such NOV Option, NOV RSA or
NOV PSA such that, for purposes of subsection 7(1.4) of the Canada Tax Act, 
 (x) the amount by which the total value
immediately after the Distribution Date of the rights of the Canadian Holder to acquire securities of NOV or SpinCo, as applicable, exceeds of the total of the amount payable to acquire such securities 

does not exceed 

(y) the amount by which the total value immediately before the Distribution Date of the rights of the Canadian Holder to
acquire securities of NOV under the applicable NOV Option, NOV RSA or NOV PSA exceeds of the total of the amount payable to acquire such securities 

and NOV or SpinCo, as applicable, shall take all such steps and shall make all such adjustments effective as of the Distribution Date as are
necessary to ensure that the conversions or adjustments pursuant to Sections 4.1 or 4.2 are in compliance with the provisions of subsection 7(1.4) of the Canada Tax Act. 

  
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 (b) [Intentionally omitted.] 

ARTICLE X. 
 GENERAL PROVISIONS

 Section 10.1. Preservation of Rights to Amend. The rights of each NOV Entity and each SpinCo Entity to amend, waive, or
terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by this Agreement. 

Section 10.2. Entire Agreement. This Agreement, together with the documents referenced herein (including the Separation Agreement,
the Ancillary Agreements, the plans and agreements referenced herein and any annexes, schedules and exhibits hereto and thereto), constitutes the entire agreement and understanding among the Parties with respect to the subject matter hereof and
supersedes all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof. To the extent any provision of this Agreement conflicts with the provisions of the Separation Agreement, the
provisions of this Agreement shall be deemed to control with respect to the subject matter hereof. 
 Section 10.3. Binding Effect;
No Third-Party Beneficiaries; No Amendment of Plans; Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns. Except as otherwise expressly provided in this
Agreement, this Agreement is solely for the benefit of the Parties and their respective Affiliates and should not be deemed to confer upon any third parties any remedy, claim, Liability, reimbursement, cause of action, or other rights. 

Nothing in this Agreement is intended to amend any Benefit Plan or affect the applicable plan sponsor’s right to amend or terminate any
Benefit Plan pursuant to the terms of such plan. The provisions of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director, or independent contractor or any other individual associated therewith
shall be regarded for any purpose as a third-party beneficiary of this Agreement. This Agreement may not be assigned by any Party, except with the prior written consent of the other Party. 

Section 10.4. Amendment; Waivers. No change or amendment may be made to this Agreement except by an instrument in writing signed
on behalf of each of the Parties. Any Party may, at any time, (i) extend the time for the performance of any of the obligations or other acts of the other Party, (ii) waive any inaccuracies in the representations and warranties of the
other Party contained herein or in any document delivered pursuant hereto, and (iii) waive compliance by the other Party with any of the agreements, covenants, or conditions contained herein. Any such extension or waiver shall be valid only if
set forth in an instrument in writing signed by the Party to be bound thereby. No failure or delay on the part of any Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any
breach of any representation, warranty, covenant, or agreement contained herein, nor shall any single or partial exercise of any such right preclude other or further exercises thereof or of any other right. 

  
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 Section 10.5. Remedies Cumulative. All rights and remedies existing under this
Agreement or the Schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

Section 10.6. Notices. Unless otherwise expressly provided herein, all notices, claims, certificates, requests, demands and other
communications hereunder shall be made or given in accordance with the provisions of Section 10.5 of the Separation Agreement. 

Section 10.7. Counterparts. This Agreement, including the Schedules hereto and the other documents referred to herein, may be
executed in multiple counterparts, each of which when executed shall be deemed to be an original but all of which together shall constitute one and the same agreement. 

Section 10.8. Severability. If any term or other provision of this Agreement or the Schedules attached hereto is determined by a
non-appealable decision by a court, administrative agency, or arbitrator to be invalid, void, illegal, or incapable of being enforced by any rule of Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in
full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, void,
illegal, or incapable of being enforced, the court, administrative agency, or arbitrator shall interpret this Agreement in a manner acceptable to the Parties so as to effect as closely as, and to the fullest extent, possible the original intent of
the Parties. If any provision in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable. 

Section 10.9. Governing Law. This Agreement (and any claims or disputes arising out of or related hereto or thereto or to the
transactions contemplated hereby and thereby or to the inducement of any party to enter herein and therein, whether for breach of contract, tortious conduct, or otherwise and whether predicated on common law, statute, or otherwise) shall be governed
by and construed and interpreted in accordance with the Laws of the State of Texas, irrespective of the choice of laws principles of the State of Texas, including all matters of validity, construction, effect, enforceability, performance, and
remedies. 
 Section 10.10. Dispute Resolution. The dispute resolution procedures set forth in Article IV of the Separation
Agreement shall apply to any dispute, controversy or claim (whether sounding in contract, tort or otherwise) that arises out of or relates to this Agreement, any breach or alleged breach hereof, the transactions contemplated hereby (including all
actions taken in furtherance of the transactions contemplated hereby on or prior to the date hereof), or the construction, interpretation, enforceability, or validity hereof. 

Section 10.11. Performance. Each of NOV and SpinCo shall cause to be performed, and hereby guarantees the performance of, all
actions, agreements and obligations set forth herein to be performed by any NOV Entity and any SpinCo Entity, respectively. The Parties each shall take such further actions and shall execute, acknowledge, and deliver, or cause to be executed,
acknowledged, and delivered, all such further documents as are reasonably requested by the other to carry out the purposes of this Agreement or of any document delivered pursuant to this Agreement. 

  
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 Section 10.12. Effect if Distribution Does Not Occur. Notwithstanding anything in
this Agreement to the contrary, if the Separation Agreement is terminated prior to the Distribution Date, this Agreement shall be of no further force and effect. In such event, no Party shall have any liability or obligation to any person by reason
of this Agreement. 
 Section 10.13. Additional Indemnification Matters. THE RELEASES AND INDEMNIFICATION OBLIGATIONS OF THE
PARTIES IN THIS AGREEMENT ARE EXPRESSLY INTENDED, AND SHALL OPERATE AND BE CONSTRUED, TO APPLY EVEN WHERE THE LOSSES OR LIABILITIES FOR WHICH THE RELEASE AND/OR INDEMNITY ARE GIVEN ARE CAUSED, IN WHOLE OR IN PART, BY THE SOLE, JOINT, JOINT AND
SEVERAL, CONCURRENT, CONTRIBUTORY, ACTIVE OR PASSIVE NEGLIGENCE OR THE STRICT LIABILITY OR FAULT OF THE PARTY BEING RELEASED OR INDEMNIFIED. 

[ Signatures of the Parties on Next Page ] 

  
 27 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in their names by a
duly authorized officer as of the date first written above. 
  

			
	NATIONAL OILWELL VARCO, INC.
		
	By:	 	 /s/ Dwight W. Rettig

		 	Name: Dwight W. Rettig
	`	 	Title: Executive Vice President and General Counsel
	
	NOW INC.
		
	By:	 	 /s/ Daniel L. Molinaro

		 	Name: Daniel L. Molinaro
		 	Title: Senior Vice President and CFO

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