Document:

Exhibit 10.2

 

Execution Version

 

EMPLOYEE MATTERS AGREEMENT

 

BY AND AMONG

 

REXNORD CORPORATION,

 

LAND NEWCO, INC.

 

AND

 

REGAL BELOIT CORPORATION

 

DATED AS OF FEBRUARY 15, 2021

 

    

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Article I       DEFINITIONS	1
	 	 
	Section 1.1	“90% Amount”	1
	Section 1.2	“Affiliate”	1
	Section 1.3	“Agreement”	2
	Section 1.4	“Ancillary Agreement”	2
	Section 1.5	“Assume”	2
	Section 1.6	“Assumed Remainco Benefit Liabilities”	2
	Section 1.7	“Benefit Arrangement”	2
	Section 1.8	“Business Day”	2
	Section 1.9	“Cash Incentive Programs”	2
	Section 1.10	“Chosen Courts”	2
	Section 1.11	“Closing”	2
	Section 1.12	“Closing Date”	2
	Section 1.13	“COBRA”	2
	Section 1.14	“Code”	2
	Section 1.15	“Confidentiality Agreement”	2
	Section 1.16	“Consent”	2
	Section 1.17	“Contract”	3
	Section 1.18	“Distributions”	3
	Section 1.19	shall have the meaning set forth in the Separation Agreement.	3
	Section 1.20	“Distribution Date”	3
	Section 1.21	“Effective Time”	3
	Section 1.22	“Employee Representative Body”	3
	Section 1.23	“Entity”	3
	Section 1.24	“ERISA”	3
	Section 1.25	“Exchange Act”	3
	Section 1.26	“FSA Participants”	3
	Section 1.27	“Governmental Body”	3
	Section 1.28	“Group”	3
	Section 1.29	“Inactive Employee”	3
	Section 1.30	“Indemnifiable Loss”	3
	Section 1.31	“Internal Restructuring”	3
	Section 1.32	“Legal Proceeding”	3
	Section 1.33	“Legal Requirement”	4
	Section 1.34	“Liabilities”	4
	Section 1.35	“Merger Agreement”	4
	Section 1.36	“Merger Sub”	4
	Section 1.37	“Non-US Spinco Employee”	4
	Section 1.38	“Non-US Spinco Transferred Employee”	4
	Section 1.39	“NYSE”	4
	Section 1.40	“Party” and “Parties”	4
	Section 1.41	“Pension Transfer Date”	4
	Section 1.42	“Person”	4

 

    i

     

    

 

TABLE OF CONTENTS 

(continued)

 

	 	 	Page
	 	 	 
	Section 1.43	“PTO”	4
	Section 1.44	“Regular Trading Hours”	4
	Section 1.45	“Remainco”	4
	Section 1.46	“Remainco Benefit Arrangement”	4
	Section 1.47	“Remainco Board”	4
	Section 1.48	“Remainco Common Stock”	4
	Section 1.49	“Remainco Deferred Compensation Plan”	4
	Section 1.50	“Remainco Employee”	5
	Section 1.51	“Remainco Equity Awards”	5
	Section 1.52	“Remainco Equity Plan”	5
	Section 1.53	“Remainco FSA”	5
	Section 1.54	“Remainco Group”	5
	Section 1.55	“Remainco Pension Plan”	5
	Section 1.56	“Remainco Pension Trust”	5
	Section 1.57	“Remainco Phantom Stock Options”	5
	Section 1.58	“Remainco Pre-Distribution Share Value”	5
	Section 1.59	“Remainco PSU”	5
	Section 1.60	“Remainco Retiree Welfare Plans”	5
	Section 1.61	“Remainco Retirement Plan”	5
	Section 1.62	“Remainco RSU”	5
	Section 1.63	“Remainco Stock Option”	5
	Section 1.64	“Return from Inactivity Date”	6
	Section 1.65	“Returning Inactive Employee”	6
	Section 1.66	“RMT Partner”	6
	Section 1.67	“RMT Partner Benefit Arrangement”	6
	Section 1.68	“RMT Partner Board”	6
	Section 1.69	“RMT Partner Common Stock”	6
	Section 1.70	“RMT Partner Equity Plan”	6
	Section 1.71	“RMT Partner Group”	6
	Section 1.72	“RMT Partner Phantom Stock Option”	6
	Section 1.73	“RMT Partner Post-Merger Share Value”	6
	Section 1.74	“RMT Partner Ratio”	6
	Section 1.75	“RMT Partner Retirement Plan”	6
	Section 1.76	“RMT Partner RSU”	6
	Section 1.77	“RMT Partner Special Dividend”	6
	Section 1.78	“RMT Partner Stock Option”	6
	Section 1.79	“Section 414(l) Amount”	6
	Section 1.80	“Separation Agreement”	7
	Section 1.81	“Separation Effective Time”	7
	Section 1.82	“Spinco”	7
	Section 1.83	“Spinco Benefit Arrangement”	7
	Section 1.84	“Spinco Business”	7
	Section 1.85	“Spinco Common Stock”	7

 

    ii

     

    

 

TABLE OF CONTENTS 

(continued)

 

	 	 	Page

 

	Section 1.86	“Spinco DCP Participant”	7
	Section 1.87	“Spinco Employee”	7
	Section 1.88	“Spinco Employee Schedule”	7
	Section 1.89	“Spinco Former Employee”	7
	Section 1.90	“Spinco FSA”	7
	Section 1.91	“Spinco Group”	7
	Section 1.92	“Spinco Indemnitees”	7
	Section 1.93	“Spinco Labor Agreement”	7
	Section 1.94	“Spinco Pension Participants”	7
	Section 1.95	“Spinco Pension Plan”	8
	Section 1.96	“Spinco Pension Trust”	8
	Section 1.97	“Spinco Retiree Welfare Participant”	8
	Section 1.98	“Spinco Retiree Welfare Plans”	8
	Section 1.99	“Spinco Transferred Employee”	8
	Section 1.100	“Subsidiary”	8
	Section 1.101	“Substituted RMT Partner Incentive Awards”	8
	Section 1.102	“Tax”	8
	Section 1.103	“Trading Day”	8
	Section 1.104	“Transferred Benefits”	8
	Section 1.105	“Transfer Regulations”	8
	Section 1.106	“True-Up Amount”	8
	Section 1.107	“True-Up Date”	8
	Section 1.108	“UAE Spinco Employee”	9
	Section 1.109	“US Spinco Employee”	9
	Section 1.110	“US Spinco Transferred Employee”	9
	Section 1.111	“WTW”	9
	 	 	 
	Article II      ASSIGNMENT
OF EMPLOYEES and Employee liabilities	9
	 	 
	Section 2.1	Transfer of Employees.	9
	Section 2.2	Remainco Indemnities in Respect of the Transfer of Employment	11
	Section 2.3	Employee Liabilities; Severance.	12
	 	 	 
	Article III     PAY
AND BENEFITS	13
	 	 	 
	Section 3.1	In General	13
	Section 3.2	Severance	14
	Section 3.3	Participation in Remainco Benefit Arrangements	14
	Section 3.4	Participation in Spinco Benefit Arrangements	15
	Section 3.5	General Enrollment into RMT Partner Benefit Arrangements.	15
	Section 3.6	Paid Time Off.	16
	Section 3.7	Cooperation	16
	 	 	 
	Article IV     CASH
AND EQUITY INCENTIVE COMPENSATION PLANS	16
	 	 	 
	Section 4.1	Cash Incentives	16
	Section 4.2	Equity Awards.	17

 

    iii

     

    

 

TABLE OF CONTENTS 

(continued)

 

	 	 	Page

 

	Article V     U.S.
Pension Plan	20
	 	 
	Section 5.1	Pension Plan Spinoff and Related Asset Transfer.	20
	 	 	 
	Article VI     U.S.
defined contribution plans	23
	 	 	 
	Section 6.1	U.S. Defined Contribution Plans.	23
	 	 	 
	Article VII    U.S.
NON-QUALIFIED DEFERRED COMPENSATION PLANS	23
	 	 	 
	Section 7.1	U.S. Non-Qualified Deferred Compensation Plan	23
	 	 	 
	Article VIII   U.S. Retiree Health, Dental and Life Benefits	24
	 	 	 
	Section 8.1	US Retiree Health, Dental and Life Benefits.	24
	 	 	 
	Article IX     FLEXIBLE
SPENDING ACCOUNTS	25
	 	 	 
	Section 9.1	Flexible Spending Accounts.	25
	 	 	 
	Article X      MISCELLANEOUS	26
	 	 	 
	Section 10.1	Entire Agreement; Counterparts; Exchanges by Facsimile	26
	Section 10.2	No Modifications	26
	Section 10.3	Ancillary Agreements.	26
	Section 10.4	Relation to Other Documents	26
	Section 10.5	Legal Requirements; Confidentiality Agreement	27
	Section 10.6	Notices	27
	Section 10.7	Waiver.	28
	Section 10.8	Assignment	28
	Section 10.9	Termination	29
	Section 10.10	Amendment	29
	Section 10.11	Subsidiaries	29
	Section 10.12	Third-Party-Beneficiaries	29
	Section 10.13	Governing Law; Jurisdiction; Specific Performance; Remedies	29
	Section 10.14	Severability	30
	Section 10.15	No Double Recovery	30
	Section 10.16	Construction.	30

 

    iv

     

    

 

EMPLOYEE MATTERS AGREEMENT

 

This Employee Matters Agreement (this “Agreement”)
is entered into as of February 15, 2021 (the “Agreement Effective Date”), by and among: (i) Rexnord
Corporation, a Delaware corporation (“Remainco”); (ii) Land Newco, Inc., a Delaware corporation
and wholly owned indirect Subsidiary of Remainco (“Spinco”); and (iii) Regal Beloit Corporation, a
Wisconsin corporation (“RMT Partner”) (each a “Party” and together, the “Parties”).

 

RECITALS

 

Whereas,
Remainco is engaged, directly and indirectly, in the Spinco Business;

 

Whereas,
the Board of Directors of Remainco (the “Remainco Board”) has determined that it is advisable and in the best
interests of Remainco and Remainco’s stockholders to separate the Spinco Business from the other businesses of Remainco and
to divest the Spinco Business in the manner contemplated by the Separation and Distribution Agreement, dated as of February 15,
2021, by and among Remainco, Spinco and RMT Partner (as it may be amended, modified or supplemented from time to time, the “Separation
Agreement”) and the Agreement and Plan of Merger, dated February 15, 2021, by and among Remainco, Spinco, RMT Partner
and Phoenix 2021, Inc., a Delaware corporation and a direct wholly owned Subsidiary of RMT Partner (“Merger Sub”)
(as it may be amended, modified or supplemented from time to time, the “Merger Agreement”);

 

Whereas,
the Parties contemplate that, pursuant to the Merger Agreement, immediately after the Distributions and at the Effective Time,
Merger Sub shall be merged (the “Merger”) with and into Spinco, with Spinco surviving the Merger as a wholly
owned direct Subsidiary of RMT Partner, and all outstanding shares of Spinco Common Stock shall be converted into the right to
receive shares of RMT Partner Common Stock on the terms and subject to the conditions of the Merger Agreement and in accordance
with the Delaware General Corporation Law and the Wisconsin Business Corporations Law; and

 

Whereas,
in connection with the foregoing, the Parties have agreed to enter into this Agreement to allocate between them assets, Liabilities
and responsibilities with respect to certain employee compensation, pension and benefit plans, programs and arrangements and certain
employment matters.

 

Now,
Therefore, in consideration of the foregoing and the covenants and agreements contained herein, and intending to be
legally bound hereby, the Parties agree as follows:

 

Article I

DEFINITIONS

 

As used in this Agreement, the following
terms shall have the respective meanings set forth or referenced below:

 

Section 1.1         “90%
Amount” shall have the meaning set forth in Section 5.1(c) below.

 

Section 1.2         “Affiliate”
shall have the meaning set forth in the Separation Agreement.

 

    1

     

    

 

Section 1.3         “Agreement”
shall have the meaning set forth in the Preamble.

 

Section 1.4         “Ancillary
Agreement” shall have the meaning set forth in the Separation Agreement, including the Separation Agreement, but excluding
this Agreement.

 

Section 1.5         “Assume”
shall have the meaning set forth in the Separation Agreement. The terms “Assumed” and “Assumptions” shall
have the correlative meaning.

 

Section 1.6         “Assumed
Remainco Benefit Liabilities” shall have the meaning set forth in Section 2.3(a) below.

 

Section 1.7         “Benefit
Arrangement” shall mean, with respect to an Entity, (a) each “employee benefit plan,” within the meaning
of Section 3(3) of ERISA (whether or not ERISA is applicable to such plan) and (b) each other employment, individual
consulting, compensation, bonus, commission, incentive, severance or redundancy, termination pay, retention, transaction bonus,
change in control, Tax gross-up, relocation, repatriation, expatriation, deferred compensation, profit-sharing, stock option,
phantom stock option, restricted stock, stock unit, stock appreciation right or other stock-related award, health or welfare benefit,
death benefit, disability benefit, perquisite, fringe benefit, sick pay, paid time off, vacation pay, leave of absence, pension,
supplemental pension or retirement benefit plan, program, policy, practice or Contract, in each case whether or not in writing
and whether or not funded.

 

Section 1.8         “Business
Day” shall have the meaning set forth in the Separation Agreement.

 

Section 1.9         “Cash
Incentive Programs” shall have the meaning set forth in Section 4.1 below.

 

Section 1.10       “Chosen
Courts” shall have the meaning set forth in Section 10.13 below.

 

Section 1.11       “Closing”
shall have the meaning set forth in the Merger Agreement.

 

Section 1.12       “Closing
Date” shall have the meaning set forth in the Merger Agreement.

 

Section 1.13       “COBRA”
shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended and as codified at Section 601 et seq.
of ERISA and at Section 4980B of the Code, and any similar state or local law.

 

Section 1.14       “Code”
shall mean the U.S. Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

 

Section 1.15       “Confidentiality
Agreement” shall have the meaning set forth in the Merger Agreement.

 

Section 1.16       “Consent”
shall have the meaning set forth in the Separation Agreement.

 

    2

     

    

 

Section 1.17       “Contract”
shall mean any written, oral or other agreement, contract, subcontract, lease, instrument, note, option, warranty, purchase order,
license, sublicense, insurance policy, or legally binding commitment or undertaking of any nature.

 

Section 1.18       “Distributions”
shall have the meaning set forth in the Separation Agreement.

 

Section 1.20       “Distribution
Date” shall have the meaning set forth in the Separation Agreement.

 

Section 1.21       “Effective
Time” shall have the meaning set forth in the Merger Agreement.

 

Section 1.22       “Employee
Representative Body” means any union, works council, staff association, health and safety committee, or other agency
or representative body certified or otherwise recognized for the purposes of bargaining collectively or established for the purposes
of notification of or consultation on behalf of any employees.

 

Section 1.23       “Entity”
shall have the meaning set forth in the Separation Agreement.

 

Section 1.24       “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

Section 1.25       “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder.

 

Section 1.26       “FSA
Participants” shall have the meaning set forth in Section 9.1(a) below.

 

Section 1.27       “Governmental
Body” shall have the meaning set forth in the Separation Agreement.

 

Section 1.28       “Group”
shall mean (a) with respect to Remainco, the Remainco Group, (b) with respect to Spinco, the Spinco Group and (c) with
respect to RMT Partner, the RMT Partner Group.

 

Section 1.29       “Inactive
Employee” shall have the meaning set forth in Section 2.1(b)(ii).

 

Section 1.30       “Indemnifiable
Loss” shall have the meaning set forth in the Separation Agreement.

 

Section 1.31       “Internal
Restructuring” shall have the meaning set forth in the Separation Agreement.

 

Section 1.32       “Legal
Proceeding” shall have the meaning set forth in the Separation Agreement.

 

    3

     

    

 

Section 1.33       “Legal
Requirement” shall have the meaning set forth in the Separation Agreement.

 

Section 1.34       “Liabilities”
shall have the meaning set forth in the Separation Agreement.

 

Section 1.35       “Merger
Agreement” shall have the meaning set forth in the Recitals.

 

Section 1.36       “Merger
Sub” shall have the meaning set forth in the Recitals.

 

Section 1.37       “Non-US
Spinco Employee” shall mean any Spinco Employee who is not a US Spinco Employee.

 

Section 1.38       “Non-US
Spinco Transferred Employee” shall mean any Spinco Transferred Employee other than a US Spinco Transferred Employee.

 

Section 1.39       “NYSE”
means the New York Stock Exchange.

 

Section 1.40       “Party”
and “Parties” shall have the respective meanings set forth in the Preamble.

 

Section 1.41       “Pension
Transfer Date” shall have the meaning set forth in Section 5.1(c) below.

 

Section 1.42       “Person”
shall have the meaning set forth in the Separation Agreement.

 

Section 1.43       “PTO”
shall have the meaning set forth in Section 3.6(a) below.

 

Section 1.44       “Regular
Trading Hours” shall mean the period beginning at 9:30 A.M., New York City time, and ending at 4:00 PM, New York City
time.

 

Section 1.45       “Remainco”
shall have the meaning set forth in the Preamble.

 

Section 1.46       “Remainco
Benefit Arrangement” shall mean any Benefit Arrangement that either (i) is maintained or contributed to, or required
to be maintained or contributed to, by any member of the Remainco Group or with respect to which any member of the Remainco Group
is a party, (ii) with respect to which any member of the Remainco Group has or may incur or become subject to any Liability
or obligation, or (iii) in which any current or former Remainco Employee participates; but shall exclude any Spinco Benefit
Arrangement.

 

Section 1.47       “Remainco
Board” shall have the meaning set forth in the Recitals.

 

Section 1.48       “Remainco
Common Stock” shall mean the common stock, $0.01 par value per share, of Remainco.

 

Section 1.49       “Remainco
Deferred Compensation Plan” shall mean the Rexnord Corporation Deferred Compensation Plan, effective as of January 1,
2016, as amended July 26, 2017.

 

    4

     

    

 

Section 1.50       “Remainco
Employee” shall mean an employee of a member of the Remainco Group or the Spinco Group, other than a Spinco Employee.

 

Section 1.51       “Remainco
Equity Awards” shall mean the Remainco Stock Options, the Remainco Phantom Stock Options, the Remainco RSUs and the
Remainco PSUs.

 

Section 1.52       “Remainco
Equity Plan” shall mean (i) the 2006 Stock Option Plan of Remainco, (ii) the Remainco 2012 Performance Incentive
Plan, (iii) the Remainco Performance Incentive Plan, as amended and restated effective May 18, 2016, and (iv) the
Remainco Performance Incentive Plan, as amended and restated on July 25, 2019.

 

Section 1.53       “Remainco
FSA” shall mean the Optum FSA benefits, as provided under the Rexnord Welfare Plan.

 

Section 1.54       “Remainco
Group” shall have the meaning set forth in the Separation Agreement.

 

Section 1.55       “Remainco
Pension Plan” shall mean the Rexnord Pension Plan, as amended and restated effective as of January 1, 2018.

 

Section 1.56       “Remainco
Pension Trust” shall mean the trust established to hold the assets of the Remainco Pension Plan.

 

Section 1.57       “Remainco
Phantom Stock Options” means an award designated as a “phantom stock option” under any of the Remainco Equity
Plans before the Separation Effective Time.

 

Section 1.58       “Remainco
Pre-Distribution Share Value” shall mean the closing price per share of Remainco Common Stock on the Trading Day immediately
prior to the Distribution Date based on “regular way” trading on the NYSE during Regular Trading Hours.

 

Section 1.59       “Remainco
PSU” shall mean a performance stock unit award granted by Remainco under any of the Remainco Equity Plans before the
Separation Effective Time.

 

Section 1.60       “Remainco
Retiree Welfare Plans” shall mean the post-retirement medical, dental and life insurance coverage or benefits provided
to Spinco Retiree Welfare Participants and their surviving spouses or beneficiaries receiving such coverage or benefits pursuant
to the Remainco Benefit Arrangements set forth in Schedule 8.1(b).

 

Section 1.61       “Remainco
Retirement Plan” shall mean the Rexnord LLC 401(k) Plan.

 

Section 1.62       “Remainco
RSU” shall mean an award of restricted stock units granted by Remainco under any of the Remainco Equity Plans before
the Separation Effective Time.

 

Section 1.63       “Remainco
Stock Option” shall mean an award of stock options to purchase shares of Remainco Common Stock granted under any of
the Remainco Equity Plans before the Separation Effective Time.

 

    5

     

    

 

Section 1.64       “Return
from Inactivity Date” shall have the meaning set forth in Section 2.1(b)(iii) below.

 

Section 1.65       “Returning
Inactive Employee” shall have the meaning set forth in Section 2.1(b)(iii) below.

 

Section 1.66       “RMT
Partner” shall have the meaning set forth in the Preamble.

 

Section 1.67       “RMT
Partner Benefit Arrangement” shall mean any Benefit Arrangement sponsored, maintained or contributed to, or required
to be maintained or contributed to, by any member of the RMT Partner Group.

 

Section 1.68       “RMT
Partner Board” shall have the meaning set forth in Section 4.2(a) below.

 

Section 1.69       “RMT
Partner Common Stock” shall have the meaning set forth in the Merger Agreement.

 

Section 1.70       “RMT
Partner Equity Plan” shall mean the RMT Partner Corporation 2018 Equity Incentive Plan.

 

Section 1.71       “RMT
Partner Group” shall have the meaning set forth in the Separation Agreement.

 

Section 1.72       “RMT
Partner Phantom Stock Option” shall have the meaning set forth in Section 4.2(a)(ii) below.

 

Section 1.73       “RMT
Partner Post-Merger Share Value” shall mean the closing price per share of RMT Partner Common Stock trading on the NYSE
during Regular Trading Hours on the first full Trading Day following the Effective Time.

 

Section 1.74       “RMT
Partner Ratio” shall mean the quotient obtained by dividing the RMT Partner Post-Merger Share Value by the Remainco
Pre-Distribution Share Value.

 

Section 1.75       “RMT
Partner Retirement Plan” shall have the meaning set forth in Section 6.1(b) below.

 

Section 1.76       “RMT
Partner RSU” shall have the meaning set forth in Section 4.2(a)(iii) below.

 

Section 1.77       “RMT
Partner Special Dividend” shall have the meaning set forth in the Merger Agreement.

 

Section 1.78       “RMT
Partner Stock Option” shall have the meaning set forth in Section 4.2(a)(i) below.

 

Section 1.79       “Section 414(l) Amount”
shall have the meaning set forth in Section 5.1(c) below.

 

    6

     

    

 

Section 1.80       “Separation
Agreement” shall have the meaning set forth in the Recitals.

 

Section 1.81       “Separation
Effective Time” shall have the meaning set forth in the Separation Agreement.

 

Section 1.82       “Spinco”
shall have the meaning set forth in the Preamble.

 

Section 1.83       “Spinco
Benefit Arrangement” shall mean any Benefit Arrangement that (i) is maintained or contributed to, or required to
be maintained or contributed to, by any member of the Spinco Group or with respect to which any member of the Spinco Group is
a party, and (ii) in which the only participants or other parties thereto are Spinco Employees and Spinco Former Employees.

 

Section 1.84       “Spinco
Business” shall have the meaning set forth in the Separation Agreement.

 

Section 1.85       “Spinco
Common Stock” shall mean the common stock of Spinco, par value $0.01 per share.

 

Section 1.86       “Spinco
DCP Participant” shall have the meaning set forth in Section 7.1 below.

 

Section 1.87       “Spinco
Employee” shall have the meaning set forth in Section 2.1(a)(i) below.

 

Section 1.88       “Spinco
Employee Schedule” shall have the meaning set forth in Section 2.1(a)(i) below.

 

Section 1.89       “Spinco
Former Employee” shall mean an individual whose employment with any member of the Remainco Group or Spinco Group terminated
prior to the Distributions, and immediately prior to such termination provided services primarily to the Spinco Business.

 

Section 1.90       “Spinco
FSA” shall have the meaning set forth in Section 9.1(a) below.

 

Section 1.91       “Spinco
Group” shall have the meaning set forth in the Separation Agreement.

 

Section 1.92       “Spinco
Indemnitees” shall have the meaning set forth in the Separation Agreement.

 

Section 1.93       “Spinco
Labor Agreement” means any agreement with any Employee Representative Body to which Remainco or a member of the Remainco
Group, or Spinco or member of the Spinco Group, is a party or bound that pertains to any Spinco Employees.

 

Section 1.94       “Spinco
Pension Participants” shall have the meaning set forth in Section 5.1(b) below.

 

    7

     

    

 

Section 1.95       “Spinco
Pension Plan” shall mean the PMC Business Pension Plan, which is intended to be a Tax-qualified defined benefit pension
plan under Section 401(a) of the Code.

 

Section 1.96       “Spinco
Pension Trust” shall mean the trust established to hold the assets of the Spinco Pension Plan and which shall be designed
to be Tax exempt under Section 501(a) of the Code.

 

Section 1.97       “Spinco
Retiree Welfare Participant” means the Spinco Transferred Employees and Spinco Former Employees who participate in the
Remainco Retiree Welfare Plan immediately prior to the Distributions.

 

Section 1.98       “Spinco
Retiree Welfare Plans” shall mean the post-retirement medical, dental and life insurance coverage or benefits established
pursuant to Article VIII hereof to provide Spinco Retiree Welfare Participants and their surviving spouses or beneficiaries
with such coverage.

 

Section 1.99       “Spinco
Transferred Employee” shall have the meaning set forth in Section 2.1(b)(i) below.

 

Section 1.100     “Subsidiary”
shall have the meaning set forth in the Separation Agreement.

 

Section 1.101     “Substituted
RMT Partner Incentive Awards” shall have the meaning set forth in Section 4.2(b) below.

 

Section 1.102     “Tax”
shall have the meaning set forth in the Tax Matters Agreement by and among Remainco, Spinco and RMT Partner, dated as of the date
of February 15, 2021, as it may be amended from time to time in accordance with the terms thereof.

 

Section 1.103     “Trading
Day” shall mean the period of time during any given 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 Remainco Common Stock
or RMT Partner Common Stock are permitted on the NYSE.

 

Section 1.104     “Transferred
Benefits” shall have the meaning set forth in Section 5.1(b) below.

 

Section 1.105     “Transfer
Regulations” shall mean the Council Directive 2001/23/EC of 12 March 2001 and any subsequent amendments (“Acquired
Rights Directive”), and any equivalent Legal Requirement (a) in any jurisdiction that has either implemented the
Acquired Rights Directive or (b) that provides for or requires the automatic transfer or assignment of any person’s
employment, as a result of the Internal Restructuring and the Distributions and any of the other transactions contemplated under
this Agreement, the Merger Agreement and the Ancillary Agreements.

 

Section 1.106     “True-Up
Amount” shall have the meaning set forth in Section 5.1(c).

 

Section 1.107     “True-Up
Date” shall have the meaning set forth in Section 5.1(c).

 

    8

     

    

 

Section 1.108        “UAE
Spinco Employee” shall mean the Spinco Employee employed by Rexnord Middle East FZE as of the date of this Agreement.

 

Section 1.109        “US
Spinco Employee” shall mean any Spinco Employee who primarily provides services in the United States.

 

Section 1.110        “US
Spinco Transferred Employee” shall mean any Spinco Transferred Employee who primarily provides services in the United
States.

 

Section 1.111        “WTW”
shall have the meaning set forth in Section 5.1(d) below.

 

Article II

ASSIGNMENT OF EMPLOYEES and Employee liabilities

 

Section 2.1            Transfer
of Employees.

 

(a)           Scope
of Employees.

 

(i)            For
purposes of this Agreement, “Spinco Employee” means: (A) each employee of Remainco Group or Spinco Group,
including temporary employees, who, as determined solely by Remainco, is primarily providing services to the Spinco Business immediately
prior to the Distribution Date; and (B) each employee of Remainco Group or Spinco Group who, in the joint opinion of Remainco
and RMT Partner, is providing services to the Spinco Business prior to the Distribution Date and is necessary for the Spinco Business
to operate. Spinco Employees exclude those employees of Remainco Group or Spinco Group who do not report into the Spinco Business
organization and who, as determined solely by Remainco, are not providing substantial services to the Spinco Business prior to
the Distribution Date and are not necessary for the Spinco Business to operate. For the avoidance of doubt, subject to Section 2.1(b)(iii) below,
Spinco Employees shall include any such employee who (1) is actively at work as of the Distribution Date or (2) is not
actively at work as of the Distribution Date as a result of disability or illness, or a vacation, personal day or similar short-term
absence. Remainco shall provide to RMT Partner an initial schedule of all anticipated Spinco Employees no later than one hundred
twenty (120) days following the Agreement Effective Date, which schedule will contain for each employee: (a) an anonymized
employee identifier; (b) employing Entity; (c) position; (d) date of hire; (e) service date; (f) annual
salary or hourly wage; (g) work location (including country, state or province and city); (h) target annual cash bonus
for the year in which the Distributions are expected to occur; (i) target long-term incentive opportunity for the year in
which the Distributions are expected to occur; (j) with respect to US Spinco Employees, whether such Spinco Employee is on
a leave of absence, the type of leave and expected return date; (k) for US Spinco Employees and the UAE Spinco Employee(s),
information regarding applicable work or employment permits, visas, or passes (if any); and (l) the information required
to be provided under Section 2.3(b)(ii) of the Merger Agreement (the “Spinco Employee Schedule”).

 

(ii)           Following
delivery of the Spinco Employee Schedule to RMT Partner, Remainco will make available to RMT Partner updated versions of the Spinco
Employee Schedule every thirty (30) days thereafter, and the final schedule (which includes the final list of Spinco Employees)
will be provided no earlier than seven (7) days prior to the Distribution Date and no later than two (2) days prior
to the Distribution Date. Remainco shall notify RMT Partner immediately of any changes to the Spinco Employee Schedule which occur
after the date the final schedule is provided. In circumstances where RMT Partner reasonably considers that an employee listed
in the Spinco Employee Schedule is not a Spinco Employee, RMT Partner may notify Remainco in writing of the reasons for such concern,
and Remainco shall as promptly as reasonably practicable (and no later than ten (10) days) following receipt of such notification
determine in good faith whether such employee is correctly included in the Spinco Employee Schedule, and provide RMT Partner with
a response in writing stating whether or not the employee will remain on the Spinco Employee Schedule and reasons for such determination.

 

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(b)           Transfer
of Employment.

 

(i)            Except
to the extent otherwise provided in this Section 2.1(b), effective no later than immediately before the Distributions, Remainco
and Spinco shall, or shall cause the respective members of their Groups to: (A) cause each Spinco Employee not already employed
in the Spinco Group to be employed by a member of the Spinco Group, provided, that, with respect to Non-US Spinco Employees, subject
to any applicable Legal Requirement, such transfer, if any, shall occur prior to or simultaneously with the Distributions or as
soon as commercially reasonable thereafter, and (B) cause any employee who is not a Spinco Employee but is employed by a
member of the Spinco Group to be employed by a member of the Remainco Group, and, in furtherance of this Section 2.1(b)(i),
the Parties shall cooperate reasonably and in good faith to give effect to these covenants, including without limitation, with
respect to any Non- US Spinco Employees. Each Spinco Employee who remains employed by a member of the Spinco Group immediately
following the Closing, or whose employment transfers to a member of the Spinco Group following the Closing, shall be referred
to herein as a “Spinco Transferred Employee.”

 

(ii)           Except
as provided in subsection (iii) below, the Parties shall use commercially reasonable efforts to ensure that each Spinco Employee
who is on short or long-term disability leave or an approved or legally-protected, under the applicable Legal Requirement in the
applicable jurisdiction, leave of absence (including military leave with reemployment rights under federal law and leave under
the Family and Medical Leave Act of 1993) (an “Inactive Employee”) prior to the Distribution Date returns to
employment with a member of the Spinco Group no later than immediately before the Distributions, if permitted by the applicable
Legal Requirement, and otherwise as soon as possible after such employee’s return to active employment.

 

(iii)          Except
to the extent otherwise required by any applicable Legal Requirement (including any applicable Legal Requirement pertaining to
automatic transfers of employees) or a Spinco Labor Agreement, no US Spinco Employee who is an Inactive Employee as of the Distribution
Date shall be employed by a member of the Spinco Group on the Distribution Date. Notwithstanding the foregoing, Remainco and Spinco
shall cause any US Spinco Employee who is an Inactive Employee as of the Distribution Date who returns to active duty employment
(with or without any accommodations required by an applicable Legal Requirement) not later than the later of (A) twelve (12)
months after the Distribution Date or (B) such longer period as required by the applicable Legal Requirement that applies
to employees of Remainco generally in a particular jurisdiction or any applicable Spinco Labor Agreement (each a “Returning
Inactive Employee”), to be employed by a member of the Spinco Group effective as of the date on which such US Spinco
Employee returns to active duty employment (the “Return from Inactivity Date”). Except to the extent otherwise
required by any applicable Legal Requirement (including any applicable Legal Requirement pertaining to automatic transfers of
employees) or a Spinco Labor Agreement, the obligations of Spinco under this Agreement in respect of a US Spinco Employee who
is an Inactive Employee as of the Distribution Date shall not commence unless and until his or her Return from Inactivity Date,
as applicable and such employee shall be treated as a Spinco Transferred Employee as of the date the employee commences employment
with the Spinco Group; provided, however, for the avoidance of doubt, effective as of such Returning Inactive Employee’s
Return from Inactivity Date (if any), Spinco shall, or shall cause a member of the Spinco Group to, Assume (and shall reimburse
Remainco or the applicable member of the Remainco Group for) all other Liabilities pertaining to such Spinco Transferred Employee
who is a Returning Inactive Employee to the same extent required with respect to other Spinco Transferred Employees with the same
national jurisdiction. All Liabilities pertaining to any Spinco Employee who was an Inactive Employee as of immediately prior
to the Distribution Date and does not qualify as a Returning Inactive Employee shall be retained by Remainco or the appropriate
member of the Remainco Group.

 

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(c)           Notwithstanding
anything to the contrary in this Agreement, as of the Separation Effective Time, Spinco shall, or shall cause the applicable members
of the Spinco Group to, Assume, in accordance with its terms, each Spinco Labor Agreement covering Spinco Transferred Employees
as of immediately prior to the Separation Effective Time, provided, however, that in the event any such Spinco Labor Agreement
also covers any Remainco Employees or Spinco Employees who are not Spinco Transferred Employees, Spinco shall, or shall cause
the applicable members of the Spinco Group to, Assume such Spinco Labor Agreement only with respect to Spinco Transferred Employees.

 

(d)           For
the avoidance of doubt, nothing herein shall restrict the right of RMT Partner Group or Spinco Group to terminate the employment
of any Spinco Employee, provided that any such termination is effected in accordance with any requirements (if any) under any
applicable Legal Requirement or any applicable Benefit Arrangement.

 

Section 2.2             Remainco
Indemnities in Respect of the Transfer of Employment. In addition to any other provisions of this Agreement, the Ancillary
Agreements or as otherwise specifically set forth in any provision of the Merger Agreement, and notwithstanding anything to the
contrary set forth in this Article II, Remainco shall to the fullest extent permitted by law indemnify, defend and hold harmless
the Spinco Indemnitees from and against any and all Indemnifiable Losses of the Spinco Indemnitees relating to, arising out of,
by reason of or otherwise in connection with (a) any event, act or omission relating to the employment of or termination
thereof of any Remainco Employee, regardless of when such event, act or omission occurs, (b) solely with respect to employee
transfers to or from Euroflex Transmissions (India) Private Limited or Rexnord Middle East FZE, a breach of the Transfer Regulations
by Remainco or Spinco, or a failure by Remainco or Spinco to notify, consult with or obtain the consent of any Employee Representative
Body, and (c) the transfer to any member of the Spinco Group of any individual (howsoever this occurs and whether such individual
is designated as an employee, worker or independent contractor) who is not a Spinco Employee (whether such Indemnifiable Losses
are incurred in relation to the hire, employment or termination of such individual). For purposes of this Section 2.2, Remainco
represents that no Non-US Spinco Employee will transfer from one employer Entity to another employer Entity other than in connection
with Euroflex Transmissions (India) Private Limited and Rexnord Middle East FZE.

 

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Section 2.3             Employee
Liabilities; Severance.

 

(a)           Employee
Liabilities. Effective as of the later of the Separation Effective Time or the time at which an individual becomes a Spinco
Transferred Employee, Spinco shall Assume: (i) all Liabilities under all Remainco Benefit Arrangements relating to Spinco
Transferred Employees or Spinco Former Employees, whenever incurred, only to the extent set forth in this Agreement; provided,
however, that Spinco shall reimburse the Remainco Group for any claim for benefits by any Spinco Transferred Employee or Spinco
Former Employee (or their respective dependents) after the Separation Effective Time which was incurred prior to the Separation
Effective Time under any Remainco Benefit Arrangement that is not funded by an insurance policy, trust or similar funding arrangement,
other than claims under a flexible spending account which shall be addressed under Article IX (the Liabilities described
in this Section 2.3(a)(i), the “Assumed Remainco Benefit Liabilities”); (ii) all Liabilities arising
out of, relating to or resulting from the employment, service, termination of employment or termination of service of all Spinco
Employees and Spinco Former Employees and their dependents and beneficiaries (and any alternate payees in respect thereof), to
the extent arising out of, relating to or resulting from such individuals’ service to the Spinco Business; and (iii) any
other Liabilities or obligations expressly assigned to or Assumed or retained by Spinco or any member of the Spinco Group under
this Agreement. Remainco and Remainco Group shall Assume or retain all Liabilities arising under or otherwise related to the Remainco
Benefit Arrangements, including all Liabilities (i) under Section 412 of the Code and Section 302 or Title IV of
ERISA, and (ii) resulting from a violation of the continuation of coverage requirements under COBRA, in each case, except
to the extent such Liabilities are Assumed Remainco Benefit Liabilities. Remainco and Remainco Group shall Assume or retain all
Liabilities of the Spinco Group related to the failure to provide qualifying offers of health coverage (as determined under Treas.
Regs. Section 54.4980H-4 and 54.4980H-5) to employees under Section 4980H of the Code with respect to the 2020 calendar
year. Remainco and Remainco Group shall retain all Liabilities related to or arising with respect to the Remainco Employees, Spinco
Employees who are not Spinco Transferred Employees, and any former employee of the Remainco Group who is not a Spinco Former Employee.

 

(b)           Remainco
Benefit Arrangements. Prior to the Distribution Date, the Remainco Group will cause any Remainco Benefit Arrangement (and
any agreement, arrangement or Contract related thereto) to which any member of the Spinco Group is a party or with respect to
which the Spinco Group has any Liability or obligation to be assigned in full to a member of the Remainco Group, if so assignable,
or appropriately amended or terminated such that no member of the Spinco Group shall be a party to such Remainco Benefit Arrangement
or have any Liability or obligation with respect to such Remainco Benefit Arrangement as of or following the Distribution Date;
provided, however, that in no event shall the Remainco Group be required to assign or amend any Remainco Benefit Arrangement which
is not assignable (or cannot be amended to affect an assignment or other transfer) by its terms (including any terms imposing
Consent requirements or conditions on an assignment where such Consents or conditions have not yet been obtained or fulfilled,
subject to Section 2.5 of the Separation Agreement, the terms of which shall apply to this Section 2.3(b) mutatis
mutandis).

 

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(c)           Severance.
As of the Separation Effective Time, Spinco shall Assume all Liabilities for severance payable to any Spinco Employee or Spinco
Former Employee.

 

(d)           COBRA.
The Remainco Group shall be solely responsible for providing continued health coverage required by COBRA to (i) Spinco Former
Employees and Spinco Employees who are not Spinco Transferred Employees (and their qualifying beneficiaries) who experience a
COBRA qualifying event (as defined in Section 4980B of the Code) under the applicable Remainco Benefit Arrangement at any
time and (ii) Spinco Transferred Employees (and their qualifying beneficiaries) who experience a COBRA qualifying event under
the applicable Remainco Benefit Arrangement on or prior to the Separation Effective Time (individuals in (i) and (ii) collectively,
the “COBRA Participants”), and Spinco shall reimburse the Remainco Group within 15 days following the end of
each calendar quarter following the Separation Effective Time for any claims or obligations incurred under the applicable Remainco
Benefit Arrangement as a result of such COBRA coverage (other than those paid under an stop-loss or other insurance policy) by
each COBRA Participant whose COBRA coverage ceased during such calendar quarter, which, in the aggregate with all claims incurred
by all other COBRA Participants whose coverage ceased in prior calendar quarters, exceed the sum of (i) the amount of premiums
collected through the end of such calendar quarter and (ii) any amounts previously paid to the Remainco Group by Spinco pursuant
to this Section 8.1(d) with respect to COBRA Participants whose coverage previously ceased. Spinco or its successor,
as applicable, and the applicable Spinco Benefit Arrangement or RMT Partner Benefit Arrangement shall be solely responsible for
providing continued health coverage to the extent required by COBRA to all Spinco Employees who experience a COBRA qualifying
event after the Separation Effective Time, and shall be solely responsible for all claims, obligations and Liabilities incurred
as a result of such COBRA coverage.

 

(e)           Workers’ Compensation
Claims. Without limiting Section 2.2(a) and without regard to the legal Entity obligated to discharge such workers’
compensation Liabilities under any applicable Legal Requirement, as per Section 6.1(b) of the Separation Agreement,
Spinco shall be responsible for securing workers’ compensation insurance coverage as is required by the applicable Legal
Requirement. Claims for occurrences prior to the Separation Effective Time under workers’ compensation insurance of the
Remainco Group shall be subject to the provisions of Article VI of the Separation Agreement, mutatis mutandis.

 

Article III

PAY AND BENEFITS

 

Section 3.1             In
General. Except to the extent otherwise required by any applicable Legal Requirement or Spinco Labor Agreement, for the period
commencing on the Closing Date and ending on the twelve (12) month anniversary of the Closing Date, RMT Partner shall, or shall
cause the applicable member of the Spinco Group to, provide each US Spinco Transferred Employee and each Non-US Spinco Transferred
Employee who is not afforded significant protections under an applicable Legal Requirement, in each case, whose employment is
not governed by a Spinco Labor Agreement, with:

 

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(a)           base
pay or wage rate no less than the base pay or wage rate such Spinco Transferred Employee received immediately prior to the Distribution
Date;

 

(b)           a
target annual cash bonus compensation opportunity no less than the target annual cash bonus opportunity such Spinco Transferred
Employee received immediately prior to the Distribution Date;

 

(c)           employee
benefits (excluding post-termination or retirement welfare benefits, long-term incentive opportunities and change in control or
retention benefits) that have a value which is substantially similar in the aggregate to (i) the employee benefits such Spinco
Transferred Employee received immediately prior to the Distribution Date or (ii) the employee benefits provided to similarly
situated employees of the RMT Partner Group from and after the Closing Date; and

 

(d)           paid
time off (e.g., vacation and additional personal paid time off, but excluding disability and other medical-related leaves of absence)
no less favorable than the paid time off such Spinco Transferred Employee received immediately prior to the Distribution Date.

 

RMT Partner shall, or shall cause the applicable
member of the Spinco Group to, provide each Spinco Transferred Employee covered by a Spinco Labor Agreement with compensation
and employee benefits at the level required by and in compliance with the applicable Spinco Labor Agreement.

 

For the avoidance of doubt, nothing herein
shall restrict the right of RMT Partner Group or Spinco Group to terminate the employment of any Spinco Transferred Employee,
provided that any such termination is effected in accordance with Section 3.2 and requirements (if any) under any applicable
Legal Requirement or the applicable Benefit Arrangement.

 

Section 3.2            Severance.
Without limiting Section 3.1 above, except to the extent otherwise required by any applicable Legal Requirement or any Spinco
Labor Agreement, for the twelve (12) month period immediately following the Closing Date, RMT Partner shall, or shall cause the
applicable member of the Spinco Group to, provide each Spinco Transferred Employee whose employment terminates during such period
with severance no less favorable than the severance such Spinco Transferred Employee would have received upon such Spinco Transferred
Employee’s termination of employment under the same or similar
circumstances immediately prior to the Distribution Date pursuant to the applicable Remainco Benefit Arrangement (in effect as
of the date hereof), factoring in such Spinco Transferred Employee’s
additional length of service and changes in his or her eligible pay between the Distribution Date and the date of his or her termination.

 

Section 3.3             Participation
in Remainco Benefit Arrangements. Except as otherwise expressly provided for in this Agreement or as otherwise expressly agreed
to in writing between the Parties, (a) effective as of the Separation Effective Time, Spinco and each member of the Spinco
Group, to the extent applicable, shall cease to be a participating employer in any Remainco Benefit Arrangement and (b) effective
as of the Separation Effective Time or such later time at which the applicable individual becomes a Spinco Transferred Employee,
each Spinco Transferred Employee shall cease to participate in, be covered by, accrue benefits under, or be eligible to contribute
to any Remainco Benefit Arrangement, in either case except as required by any applicable Legal Requirement or the terms of the
applicable Remainco Benefit Arrangement.

 

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Section 3.4             Participation
in Spinco Benefit Arrangements. Except as otherwise provided for in this Agreement or as otherwise expressly agreed to in
writing between the Parties, (a) effective as of the Separation Effective Time, Remainco and each member of the Remainco
Group, to the extent applicable, shall cease to be a participating employer in any Spinco Benefit Arrangement and (b) effective
as of the Separation Effective Time, each Remainco Employee and Spinco Employee who is not a Spinco Transferred Employee shall
cease to participate in, be covered by, accrue benefits under, or be eligible to contribute to any Spinco Benefit Arrangement,
in either case except as required by any applicable Legal Requirement or the terms of the applicable Spinco Benefit Arrangement.

 

Section 3.5             General
Enrollment into RMT Partner Benefit Arrangements.

 

(a)           Enrollment
into RMT Partner Benefit Arrangements. Except to the extent otherwise required under any applicable Legal Requirement, and
subject to the terms of this Agreement, RMT Partner shall, or shall cause the applicable member of the RMT Partner Group to, take
commercially reasonable actions to cause, effective as of the Effective Time or such later time at which the applicable individual
becomes a Spinco Transferred Employee, each Spinco Transferred Employee to be eligible to commence participation in all RMT Partner
Benefit Arrangements for which he or she is eligible, provided that the applicable Spinco Transferred Employee’s commencement
of participation in RMT Partner Benefit Arrangements shall in all cases be subject to such Spinco Transferred Employee’s
satisfaction of any enrollment, election and other applicable requirements for participation.

 

(b)           Length
of Service Crediting. Except to the extent otherwise required by any applicable Legal Requirement, RMT Partner shall, or shall
cause the applicable member of the RMT Partner Group to, take commercially reasonable actions to recognize all service before
the Effective Time of any Spinco Transferred Employee with any member of the Remainco Group or Spinco Group and with any predecessor
employer (to the extent such predecessor employer service was taken into account under an applicable Remainco Benefit Arrangement
or Spinco Benefit Arrangement and indicated on the final Spinco Employee Schedule as the Spinco Transferred Employee’s period
of service) for all purposes (other than for purposes of benefit accruals under any defined benefit pension plan other than the
Spinco Pension Plan). Notwithstanding the foregoing, except to the extent otherwise required by any applicable Legal Requirement,
neither RMT Partner nor any member of the RMT Partner Group shall be required to recognize such service to the extent doing so
would result in the duplication of benefits.

 

(c)           Without
limiting the generality of the foregoing provisions of Section 3.5(a), (i) RMT Partner shall use commercially reasonable
efforts to cause each Spinco Transferred Employee to be immediately eligible to participate, without any waiting time, in any
and all RMT Partner Benefit Arrangements to the extent coverage under the RMT Partner Benefit Arrangement is provided by RMT Partner
to similarly situated employees of the RMT Partner Group in the applicable jurisdiction as of the Effective Time, (ii) for
purposes of each RMT Partner Benefit Arrangement that is a medical, dental or vision benefit plan, RMT Partner shall use commercially
reasonable efforts to cause all pre-existing condition exclusions and actively-at-work requirements of such RMT Partner Benefit
Arrangement to be waived for each Spinco Transferred Employee and his or her covered dependents, and (iii) RMT Partner shall
use commercially reasonable efforts to cause any eligible expenses incurred by each Spinco Transferred Employee and his or her
covered dependents during the portion of the plan year of the Remainco Benefit Arrangement that is a medical benefit plan ending
on the date such employee’s participation in the corresponding Remainco Benefit Arrangement ends to be taken into account
under such RMT Partner Benefit Arrangement for purposes of satisfying all deductible, coinsurance and maximum out-of-pocket requirements
applicable to such employee and his or her covered dependents for the applicable plan year as if such amounts had been paid in
accordance with the RMT Partner Benefit Arrangement.

 

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Section 3.6            Paid
Time Off.

 

(a)           Assumed
Paid Time off Liabilities. Except to the extent prohibited by any applicable Legal Requirement, effective as of the Separation
Effective Time, Spinco shall, or shall cause a member of the Spinco Group to, Assume all Liabilities for earned but unused paid
time off (“PTO”) of the Spinco Transferred Employees through the Distribution Date. RMT Partner Group and Spinco
Group will administer earned but unused PTO benefits for Spinco Transferred Employees in accordance with any applicable Spinco
Labor Agreement and Legal Requirement.

 

(b)           Payment
of Paid Time off Benefits Where Required by Legal Requirement. Notwithstanding anything to the contrary in this Agreement,
where required by any applicable Legal Requirement or Spinco Labor Agreement, as soon as administratively practicable following
the Distribution Date (and no later than the earliest date required by any applicable Legal Requirement), Remainco shall, or shall
cause the applicable member of the Remainco Group to, pay out all earned but unused vacation benefits to each Spinco Transferred
Employee entitled to be paid such benefits by reason of the occurrence of any of the Distributions, the Internal Restructuring,
or the Merger.

 

Section 3.7            Cooperation.
RMT Partner Group’s and Spinco Group’s obligations under this Article III are expressly conditioned upon Remainco,
for a period of eighteen (18) months following the Distribution Date, using commercially reasonable efforts to provide to RMT
Partner Group and Spinco Group and their respective agents and representatives all information reasonably necessary for RMT Partner
Group and Spinco Group to comply with the obligations set forth in this Article III within a reasonable time following receipt
of a reasonable written request from any member of RMT Partner Group, any member of Spinco Group or any of their respective agents
or representatives.

 

Article IV

CASH AND EQUITY INCENTIVE COMPENSATION PLANS

 

Section 4.1            Cash
Incentives. During the period beginning as of the date of this Agreement and extending until the Distribution Date, except
as set forth on Schedule 4.1 to this Agreement, with respect to Spinco Employees, for all cash incentive programs with performance
periods of one year or less (including annual bonuses for 2021) (“Cash Incentive Programs”), Remainco shall
establish target incentive opportunities, performance metrics, and other terms and conditions (including timing of payment and
conditions to be entitled to payment) in the ordinary course of business and consistent with past practice. To the extent payments
are due under any such Cash Incentive Program prior to the Distribution Date, Remainco shall pay, or cause to be paid, amounts
under such Cash Incentive Programs to Spinco Employees in the ordinary course of business and consistent with past practice. To
the extent payments are not due under any such Cash Incentive Program prior to the Distribution Date, Spinco shall, or shall cause
a member of the Spinco Group to, pay amounts due under such Cash Incentive Programs to Spinco Employees in the ordinary course
of business and consistent with past practice.

 

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Section 4.2           Equity
Awards.

 

(a)          Remainco
Equity Awards. At or prior to the Separation Effective Time, Remainco and RMT Partner, the Remainco Board and the Board of
Directors of RMT Partner (the “RMT Partner Board”), and the compensation committees of the Remainco Board and
the RMT Partner Board, as applicable, shall adopt any resolutions to take all steps necessary to effectuate the treatment of the
Remainco Equity Awards in accordance with the applicable Remainco Equity Plan and RMT Partner Equity Plan and award agreements,
as follows:

 

(i)           Remainco
Stock Options. Each Remainco Stock Option (or any portion thereof), whether or not vested, that is outstanding as of immediately
prior to the Separation Effective Time and held by a Spinco Transferred Employee shall be converted as of the Effective Time into,
or substituted with, an option to purchase shares of RMT Partner Common Stock (each such award, an “RMT Partner Stock
Option”) pursuant to the terms of the RMT Partner Equity Plan, subject to terms and conditions from and after the Effective
Time that are substantially similar to the terms and conditions applicable to the corresponding Remainco Stock Option, including
vesting conditions, where applicable, immediately prior to the Separation Effective Time; provided, however, that from and
after the Effective Time, (x) the number of shares of RMT Partner Common Stock subject to such RMT Partner Stock Option shall
equal (A) the number of shares of Remainco Common Stock subject to the corresponding Remainco Stock Option immediately prior
to the Separation Effective Time divided by (B) the RMT Partner Ratio, with any fractional share rounded down to the nearest
whole share, (y) the per-share exercise price of such RMT Partner Stock Option shall equal (A) the per-share exercise
price of the corresponding Remainco Stock Option immediately prior to the Separation Effective Time multiplied by (B) the
RMT Partner Ratio, rounded up to the nearest whole cent, and (z) with respect to each such RMT Partner Stock Option, “change
of control” shall have the meaning set forth in the RMT Partner Equity Plan (i.e., a “change of control” of
RMT Partner rather than Remainco); provided, however, that the exercise price and the number of shares of RMT Partner
Common Stock purchasable pursuant to such RMT Partner Stock Options shall be determined in a manner consistent with the requirements
of Section 409A of the Code.

 

(ii)          Remainco
Phantom Stock Options. Each Remainco Phantom Stock Option (or any portion thereof), whether or not vested, that is outstanding
as of immediately prior to the Separation Effective Time and held by a Spinco Transferred Employee shall be converted as of the
Effective Time into, or substituted with, an option to receive cash based on a number of shares of RMT Partner Common Stock (each
such award, an “RMT Partner Phantom Stock Option”) pursuant to the terms of the RMT Partner Equity Plan, subject
to terms and conditions from and after the Effective Time that are substantially similar to the terms and conditions applicable
to the corresponding Remainco Phantom Stock Option, including vesting conditions, where applicable, immediately prior to the Separation
Effective Time; provided, however, that from and after the Effective Time, (x) the number of shares of RMT Partner Common
Stock subject to such RMT Partner Phantom Stock Option shall equal (A) the number of shares of Remainco Common Stock subject
to the corresponding Remainco Phantom Stock Option immediately prior to the Separation Effective Time divided by (B) the
RMT Partner Ratio, with any fractional share rounded down to the nearest whole share, (y) the per-share exercise price of
such RMT Partner Phantom Stock Option shall equal (A) the per-share exercise price of the corresponding Remainco Phantom
Stock Option immediately prior to the Separation Effective Time multiplied by (B) the RMT Partner Ratio, rounded up to the
nearest whole cent, and (z) with respect to each such RMT Partner Phantom Stock Option, “change of control” shall
have the meaning set forth in the RMT Partner Equity Plan (i.e., a “change of control” of RMT Partner rather than
Remainco).

 

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(iii)         Remainco
RSUs. Each Remainco RSU held by a Spinco Transferred Employee immediately prior to the Separation Effective Time shall be
converted into, or substituted with, an award of a number of RMT Partner restricted stock units (each, an “RMT Partner
RSU”) determined by dividing the number of shares of Remainco Common Stock subject to each Remainco RSU by the RMT Partner
Ratio. If the resulting product includes a fractional share, the number of shares of RMT Partner Common Stock subject to the RMT
Partner RSU shall be rounded up to the nearest whole share. The RMT Partner RSUs shall be subject to substantially the same terms
and conditions (including vesting terms) as in effect for the corresponding Remainco RSU immediately prior to the Separation Effective
Time; provided, however, with respect to each such RMT Partner RSU, “change of control” shall have the meaning
set forth in the RMT Partner Equity Plan (i.e., a “change of control” of RMT Partner rather than Remainco).

 

(iv)         Remainco
PSUs. Each Remainco PSU held by a Spinco Transferred Employee immediately prior to the Separation Effective Time shall be
converted into, or substituted with, a number of RMT Partner RSUs determined by dividing the number of shares of Remainco Common
Stock subject to each Remainco PSU that would be issued if the applicable performance period ended on the Separation Effective
Time (based on the actual level of performance through the Separation Effective Time, or such other level of performance deemed
achieved, as determined in the sole discretion of the Remainco Board or compensation committee thereof) by the RMT Partner Ratio.
If the resulting product includes a fractional share, the number of shares of RMT Partner Common Stock subject to the RMT Partner
RSU shall be rounded up to the nearest whole share. The RMT Partner RSUs shall be subject to substantially the same terms and
conditions (including time-based vesting terms but excluding any terms related to performance which will be fixed as of the Separation
Effective Time) as in effect for the corresponding Remainco PSU immediately prior to the Separation Effective Time; provided,
however, with respect to each such RMT Partner RSU, “change of control” shall have the meaning set forth in the RMT
Partner Equity Plan (i.e., a “change of control” of RMT Partner rather than Remainco); provided further, however,
that with respect to any Remainco PSU, the Remainco Board or its compensation committee may, in its sole discretion, accelerate
the time-based vesting condition, in which case such Remainco PSU will be settled immediately prior to the Distributions in the
form of Remainco Common Stock and shall not be converted into, or substituted with, RMT Partner RSUs.

 

    18

     

    

 

(b)          Adjustments
to Substituted RMT Partner Incentive Awards. Notwithstanding anything to the contrary herein, if, following the Closing, in
the good faith judgment of the RMT Partner Board or the compensation committee, an adjustment to the terms of the RMT Partner
Stock Options, RMT Partner Phantom Stock Options and RMT Partner RSUs contemplated by Section 4.2(a) above (the “Substituted
RMT Partner Incentive Awards”) in connection with the RMT Partner Special Dividend is necessary or advisable to prevent
dilution or enlargement of the benefits or potential benefits intended to be made available under the Substituted RMT Partner
Incentive Awards, the RMT Partner Board or the compensation committee thereof shall adjust each of the Substituted RMT Partner
Incentive Awards in such a manner so as to prevent dilution or enlargement of the benefits or potential benefits intended to be
made available thereunder. All such adjustments and judgments in connection therewith shall be within the sole discretion of the
RMT Partner Board or the compensation committee thereof.

 

(c)           Section 16(b) of
the Exchange Act. By approving the adoption of this Agreement, the Remainco Board and the RMT Partner Board intend to exempt
from the short-swing profit recovery provisions of Section 16(b) of the Exchange Act, by reason of the application of
Rule 16b-3 thereunder, all acquisitions and dispositions of equity incentive awards by directors and officers of each of
Remainco and RMT Partner, and the Remainco Board and the RMT Partner Board also intend expressly to approve, in respect of any
equity-based award, the use of any method for the payment of an exercise price and the satisfaction of any applicable Tax withholding
(specifically including the actual or constructive tendering of shares in payment of an exercise price and the withholding of
option shares from delivery in satisfaction of applicable Tax withholding requirements) to the extent that such method is permitted
under the applicable RMT Partner Equity Plan, the Remainco Equity Plan, and any applicable award agreement.

 

(d)           Registration.
Promptly following the Closing, RMT Partner shall file a registration statement on Securities and Exchange Commission Form S-8
(or other available form) with respect to the shares of RMT Partner Common Stock authorized for issuance from and after the Closing
under RMT Partner Stock Options and (to the extent the settlement thereof requires registration under the Securities Exchange
Act of 1933, as amended) RMT Partner RSUs, and RMT Partner shall use commercially reasonable efforts to maintain after the Closing
effective registration statements with the Securities and Exchange Commission with respect to the exercise of such RMT Partner
Stock Options and (to the extent the settlement thereof requires registration under the Securities Exchange Act of 1933, as amended)
RMT Partner RSUs.

 

(e)           Tax
Withholding. Upon the vesting, exercise or settlement, as applicable, of RMT Partner Stock Options, RMT Partner Phantom Stock
Options and RMT Partner RSUs, RMT Partner and the holder of such award shall be responsible for ensuring the satisfaction of all
applicable Tax payment and withholding requirements in respect thereof and for ensuring the collection and remittance of applicable
Taxes to the applicable Governmental Body.

 

    19

     

    

 

(f)           Cooperation.
Each Party acknowledges and agrees to use commercially reasonable efforts to cooperate with each other and with third-party providers
to effect withholding and remittance of Taxes, as well as required Tax reporting, in a timely, efficient, and appropriate manner
to further the purposes of this Article IV, and to administer all employee equity awards that are outstanding immediately
following the Effective Time (including all such equity awards that are adjusted in accordance with this Article IV) to the
extent consistent with this Agreement and applicable law, for a period of eighteen (18) months following the Closing Date.

 

Article V

U.S. Pension Plan

 

Section 5.1            Pension
Plan Spinoff and Related Asset Transfer.

 

(a)           Prior
to the Distribution Date, Remainco shall have caused a member of the Spinco Group to (1) adopt the Spinco Pension Plan, which
shall have provisions that mirror the Remainco Pension Plan (other than with respect to provisions regarding sponsorship and administration
which shall reflect the Distributions), and (2) adopt and enter into the Spinco Pension Trust, which shall have provisions
that mirror the Remainco Pension Trust (other than with respect to provisions regarding sponsorship and administration which shall
reflect the Distributions), in each case, which shall be subject to review by and approval of RMT Partner, which approval shall
not be unreasonably withheld or delayed. Remainco shall provide the Spinco Pension Plan and the Spinco Pension Trust to RMT Partner
at least sixty (60) days prior to the Distribution Date, and RMT Partner shall provide any comments to these documents in writing
at least thirty (30) days prior to the Distribution Date.

 

(b)           Effective
as of the Separation Effective Time, Remainco and Spinco shall take all action necessary to effectuate the transfer from the Remainco
Pension Plan to the Spinco Pension Plan of all Liabilities of the Remainco Pension Plan for benefits accrued through the Distribution
Date in respect of the Spinco Transferred Employees and Spinco Former Employees who are participants in the Remainco Pension Plan
and all Spinco Transferred Employees’ and Spinco Former Employees’ surviving spouses or beneficiaries entitled to
receive benefits under the Remainco Pension Plan immediately prior to the Distributions and in each case, who are listed on Schedule
A of the Spinco Pension Plan (the “Spinco Pension Participants”) and all assets relating thereto (as described
in paragraph (c) below), in a manner that satisfies Sections 401(a)(12), 411(d)(6) and 414(l) of the Code and Section 4044
of ERISA (the “Transferred Benefits”). Following such transfer, the Spinco Pension Participants shall no longer
be eligible to participate in the Remainco Pension Plan, and none of the Remainco Group, any affiliate of the Remainco Group or
the Remainco Pension Plan shall thereafter have any further responsibility for the Transferred Benefits, subject to any corrections,
true ups or other actions, in each case, as set forth below. Such pension spinoff shall not affect the status of the Remainco
Pension Plan and the Spinco Pension Plan as “frozen plans” with respect to future eligibility to participate and benefit
accruals. Remainco shall retain sponsorship of, be responsible for the management and administration of, and be responsible for
all Liabilities under the Remainco Pension Plan and the Remainco Pension Trust, and none of the Spinco Group, any affiliate of
the Spinco Group or the Spinco Pension Plan shall have any Liability relating to the Remainco Pension Plan.

 

    20

     

    

 

(c)           Effective
as of the Distribution Date, Remainco shall, or shall cause the applicable member of the Remainco Group to, cause (or shall have
caused) the trustee of the Remainco Pension Trust to transfer to the trustee of the Spinco Pension Trust (i) ninety percent
(90%) of a good faith estimate of the Section 414(l) Amount (as defined below) prior to or as soon as practicable
after the Distribution Date (the “90% Amount”) (the specific date, the “Pension Transfer Date”),
as adjusted to reflect investment experience in the Remainco Pension Plan during the period commencing on the Distribution Date
and ending immediately prior to the Pension Transfer Date, and (ii) the remaining portion of the Section 414(l) Amount
(the “True-Up Amount”) no later than thirty (30) days following the date on which the Section 414(l) Amount
becomes conclusive, final and binding as described in Section 5.1(d) (the specific date, the “True-Up Date”);
provided that all such transfers will be conducted in compliance with applicable law and with any applicable notice requirements
to any Governmental Body. The True-Up Amount shall be adjusted from the Distribution Date to the True-Up Date to reflect investment
experience in the Remainco Pension Plan, the Spinco Pension Plan’s allocable share of recordkeeping, administration and
investment expenses, PBGC premiums, and any benefit distributions made to the Spinco Pension Participants. For this purpose, the
 “Section 414(l) Amount” means the amount of assets required to be transferred to the Spinco
Pension Plan, based on the amount of Liabilities transferred to the Spinco Pension Plan from the Remainco Pension Plan on the
Pension Transfer Date determined under the requirements of Section 414(l) of the Code and the regulations promulgated
thereunder as if the Remainco Pension Plan had then terminated and its assets were allocated to plan participants in accordance
with Section 4044 of ERISA based on the assumptions described in Treasury Regulation Section 1.414(l)-1(b)(5)(ii). For
the avoidance of doubt, any amounts transferred from the trustee of the Remainco Pension Trust to the trustee of the Spinco Pension
Trust prior to the Pension Transfer Date shall reduce the amount necessary to fund the 90% Amount on the Pension Transfer Date
(e.g., if five percent (5%) of the good faith estimate of the Section 414(l) Amount was transferred prior
to the Pension Transfer Date then only eighty-five percent (85%) more would need to be transferred on the Pension Transfer Date).
Notwithstanding the foregoing, in the event that the True-Up Amount is a negative number, RMT Partner shall, or shall cause, the
trustee of the Spinco Pension Trust to transfer to the trustee of the Remainco Pension Trust, an amount equal to such negative
True-up Amount.

 

(d)          The
Section 414(l) Amount, the determination of the 90% Amount and the True-Up Amount, and any applicable adjustments
to any such amounts shall be determined by Willis Towers Watson, the enrolled actuaries for the Remainco Pension Plan (“WTW”).
As soon as practicable after the determination of the 90% Amount (which shall be made based on a good faith estimate of the Section 414(l) Amount
by WTW), and no later than ten (10) Business Days prior to the Pension Transfer Date, Remainco shall provide RMT Partner
with documentation supporting the calculations underlying such determination for review and comment, and Remainco shall provide
(or shall cause to be provided) an actuary designated by RMT Partner with information reasonably requested by RMT Partner or its
agent or representative to also calculate the Section 414(l) Amount and the 90% Amount, and any applicable adjustments
to either, and to verify that such calculations have been performed in a manner consistent with Section 414(l) of
the Code, Section 208 of ERISA, Section 4044 of ERISA and this Agreement. As soon as practicable, but no later than
ninety (90) days following the Distribution Date, Remainco or WTW shall provide RMT Partner’s actuary with Remainco’s
finalized calculation of the Section 414(l) Amount and the information provided pursuant to the previous sentence,
mutatis mutandis. Within forty-five (45) days following receipt by RMT Partner’s actuary of WTW’s calculation
of the Section 414(l) Amount, any applicable adjustments and the information described in the preceding sentence,
RMT Partner shall notify Remainco in writing if there is a good faith dispute between WTW and RMT Partner’s actuary as to
the calculation of the Section 414(l) Amount or any of the applicable adjustments thereto. If RMT Partner does
not notify Remainco of any such good faith dispute within such 45-day period, the determination of WTW shall become conclusive,
final and binding. If any such dispute remains unresolved for thirty (30) days following Remainco’s receipt of such written
notification from RMT Partner, Remainco and RMT Partner shall (in writing) jointly select and appoint a third actuary (the cost
of which shall be borne equally by Remainco and RMT Partner), who shall make a final and binding determination of the Section 414(l) Amount
and any applicable adjustments thereto in accordance with applicable Legal Requirement and this Agreement. Each of Remainco and
RMT Partner shall be responsible for the cost of its own actuary and attorney’s fees.

 

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(e)           In
the event that Remainco discovers individuals who should have been, but were not, properly designated in the Spinco Pension Plan
as Spinco Pension Participants within the eighteen (18)-month period following the True-Up Date, Remainco shall cause the trustee
of the Remainco Pension Trust to transfer sufficient assets to the trustee of the Spinco Pension Trust to fund the accrued benefits
of such individuals under the Spinco Pension Plan and such individuals shall thereafter be Spinco Pension Participants. In the
event that Remainco discovers individuals who should have been, but were not, properly designated in the Spinco Pension Plan as
Spinco Pension Participants after the eighteen (18)-month anniversary of the True-Up Date, such individuals will thereafter remain
participants in the Remainco Pension Plan. Remainco and WTW shall use commercially reasonable efforts to work with RMT Partner’s
actuary in such a manner that will allow RMT Partner’s actuary to audit and confirm the accuracy of all underlying participant
data used to determine the amount of the accrued benefit of each Spinco Pension Participant prior to the Distribution Date. To
the extent the parties discover within eighteen (18) months after the date on which the final pension transfer amount is determined
under this Agreement that an incorrect amount (either too much or too little) of assets has been transferred from the Remainco
Pension Plan to the Spinco Pension Plan based on a mistake in the calculation of any Spinco Pension Participant’s benefit,
the parties shall take all corrective action necessary to ensure that such assets have been properly transferred between the Remainco
Pension Plan and the Spinco Pension Plan in accordance with ERISA and the Code.

 

(f)           The
Parties agree to promptly provide such pertinent data or information as each other may reasonably require to implement the requirements
of this Article V (including information required for purposes of RMT Partner’s actuary’s verification process
described in Section 5.1(d) and verification of each Spinco Pension Participant’s accrued benefit as set forth
in Section 5.1(e)). Remainco shall, or shall cause the administrator of the Remainco Pension Plan, to provide to RMT Partner’s
actuary, no later than immediately prior to the Distribution Date in a format reasonably requested by RMT Partner’s actuary,
all employment, service, and payroll data and all other information reasonably necessary to determine the accrued benefit of each
Spinco Pension Participant under the Remainco Pension Plan that is to be transferred from the Remainco Pension Plan to the Spinco
Pension Plan. The Parties shall cooperate and coordinate in (i) making all filings required under the Code and ERISA (including
all reports required under ERISA Section 4043), (ii) responding to any inquiries from any Governmental Bodies relating
to the spinoff or any filings related thereto, (iii) implementing all appropriate communications with Spinco Pension Participants
with respect to the actions contemplated by this Article V, and (iv) transferring appropriate records. Each Party shall
bear its own costs related to this Article V.

 

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(g)          All
participant elections (including beneficiary designations, qualified domestic relations orders, or qualified medical child support
orders) with respect to the participation of each Spinco Pension Participant in the Remainco Pension Plan shall be transferred
to and be in full force and effect under the Spinco Pension Plan in accordance with the terms of such plan and to the extent permissible
under such plan, until such elections are replaced or revoked by the Spinco Pension Participant who made such election.

 

Article VI

U.S. defined contribution plans

 

Section 6.1           U.S.
Defined Contribution Plans.

 

(a)          Effective
as of the Separation Effective Time, (i) the active participation of each US Spinco Transferred Employee who is a participant
in the Remainco Retirement Plan shall automatically cease and no US Spinco Transferred Employee shall thereafter accrue any benefits
under any such Remainco Retirement Plan and (ii) Remainco shall cause each such US Spinco Transferred Employee to become
fully vested in such US Spinco Transferred Employee’s account balances under such Remainco Retirement Plan.

 

(b)          As
of the Effective Time, RMT Partner shall cause, or shall cause the applicable member of the RMT Partner Group to cause, one or
more defined contribution plans that include a qualified cash or deferred arrangement within the meaning of Section 401(k) of
the Code (any such plan, a “RMT Partner Retirement Plan”) to allow each US Spinco Transferred Employee to make
a “direct rollover” to the RMT Partner Retirement Plan of the account balances of such Spinco Transferred Employee,
including promissory notes evidencing any outstanding loans, under the Remainco Retirement Plan in which such US Spinco Transferred
Employee participated prior to the Closing; provided that such Remainco Retirement Plan permits such a direct rollover and if
such direct rollover is elected and permitted in accordance with applicable Legal Requirements by such US Spinco Transferred Employee.

 

Article VII

U.S. NON-QUALIFIED DEFERRED COMPENSATION PLANS

 

Section 7.1            U.S.
Non-Qualified Deferred Compensation Plan. Remainco shall provide to RMT Partner, at the time Remainco provides the final Spinco
Employee Schedule set forth in Section 2.1(a)(ii), a list of each Spinco Transferred Employee who participates in the Remainco
Deferred Compensation Plan (each Spinco Transferred Employee who is a participant in the Remainco Deferred Compensation Plan immediately
prior to the Distributions, a “Spinco DCP Participant”). On and after the Effective Time, RMT Partner shall,
or shall cause the applicable member of the RMT Partner Group to, notify Remainco of the occurrence of (a) any payment event
with respect to a Spinco DCP Participant under the Remainco Deferred Compensation Plan identified in such list of Spinco DCP Participants
and (b) the “separation from service” under Section 409A of the Code of any Spinco DCP Participant, whether
or not such separation from service is a payment event, in each case, as promptly as practicable but in no event later than thirty
(30) days following such separation from service, and shall promptly provide to Remainco any other relevant information reasonably
requested by Remainco in writing for purposes of administering the Remainco Deferred Compensation Plan with respect to the Spinco
DCP Participants.

 

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Article VIII

U.S. Retiree Health, Dental and Life Benefits

 

Section 8.1            US
Retiree Health, Dental and Life Benefits.

 

(a)           Prior
to the Distribution Date, Remainco shall have caused a member of the Spinco Group to (1) adopt one or more Spinco Retiree
Welfare Plans, which shall have provisions that mirror the Remainco Retiree Welfare Plans (other than with respect to provisions
regarding sponsorship and administration which shall reflect the Distributions), and (2) adopt and enter into any insurance
Contracts or policies with respect to any Spinco Retiree Welfare Plan, which shall have provisions that mirror the insurance Contracts
and policies currently pertaining to the Remainco Retiree Welfare Plans (other than with respect to provisions regarding sponsorship
and administration which shall reflect the Distributions), in each case, which shall be subject to review by and approval of RMT
Partner, which approval shall not be unreasonably withheld or delayed. Remainco shall provide the Spinco Retiree Welfare Plans
and any insurance Contracts or policies with respect to the Spinco Retiree Welfare Plans to RMT Partner at least sixty (60) days
prior to the Distribution Date, and RMT Partner shall provide any comments to these documents in writing at least thirty (30)
days prior to the Distribution Date.

 

(b)          As
of the Distribution Date, Spinco shall, or shall cause a member of the Spinco Group to, Assume all Liabilities to provide benefits
to Spinco Retiree Welfare Participants and their surviving spouses or beneficiaries receiving such coverage or benefits pursuant
to the Remainco Retiree Welfare Plans as of immediately prior to the Distributions, and the Spinco Retiree Welfare Participants
shall no longer be eligible to participate in the Remainco Retiree Welfare Plan, and none of the Remainco Group or the Remainco
Retiree Welfare Plan shall thereafter have any further responsibility for such benefits. Remainco shall retain sponsorship of,
be responsible for the management and administration of, and be responsible for all Liabilities under the Remainco Retiree Welfare
Plan and any related insurance Contracts or policies, and none of the Spinco Group, any affiliate of the Spinco Group or the Spinco
Retiree Welfare Plans shall have any Liability relating to the Remainco Retiree Welfare Plan.

 

(c)           The
Parties agree to promptly provide such pertinent data or information as each other may reasonably require to implement the requirements
of this Article VIII. The Parties shall cooperate in (i) implementing all appropriate communications with Spinco Retiree
Welfare Participants with respect to the actions contemplated by this Article VIII, and (ii) transferring appropriate
records. Each Party shall bear its own costs related to this Article VIII.

 

(d)          All
participant elections with respect to the participation of each Spinco Retiree Welfare Participant in the Remainco Retiree Welfare
Plan shall be transferred to and be in full force and effect under the Spinco Retiree Welfare Plan in accordance with the terms
of such plan and to the extent permissible under such plan, until such elections are replaced or revoked by the Spinco Retiree
Welfare Participant who made such election.

 

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Article IX

FLEXIBLE SPENDING ACCOUNTS

 

Section 9.1           Flexible
Spending Accounts.

 

(a)          Effective
on or prior to the Distribution Date, Remainco shall cause a member of Spinco Group to adopt a cafeteria plan intended to comply
with Section 125 of the Code that includes a healthcare flexible spending account program and a dependent care flexible spending
account program (the “Spinco FSA”) that is substantially similar to the Remainco FSA. RMT Partner shall, or
shall cause a member of Spinco Group or RMT Partner Group, to maintain the Spinco FSA for the remainder of the calendar year in
which the Effective Time occurs for each Spinco Transferred Employee who, in the portion of the calendar year on or prior to the
Distribution Date, contributed to the Remainco FSA (the “FSA Participants”). During the period from the Effective
Time until the last day of the plan year of the Remainco FSA that commenced immediately prior to the Effective Time, RMT Partner
shall, or shall cause a member of Spinco Group or RMT Partner Group, to continue, the salary reduction elections made by the FSA
Participants (adjusted, to the extent necessary, to take into account any changes to applicable premiums related to any RMT Partner
Benefit Arrangements) and allow each FSA Participant to receive reimbursement from such participant’s flexible spending
reimbursement account under the Spinco FSA on substantially the same terms and conditions as would have been applicable to such
participant as if such FSA Participant were employed by Remainco Group following the Distribution Date during such period and
continued to participate in the Remainco FSA. If the aggregate amount withheld from the FSA Participants’ compensation under
the Remainco FSA for the plan year in which the Distribution Date occurs exceeds the aggregate amount of reimbursements paid to
the FSA Participants prior to the Distribution Date under the Remainco FSA for such plan year, Remainco shall transfer (or cause
to be transferred) to RMT Partner within forty-five (45) days after the Distribution Date a cash payment equal to such excess,
if any. If the aggregate amount of reimbursements paid to the FSA Participants under the Remainco FSA prior to the Distribution
Date for the plan year in which the Distribution Date occurs exceeds the aggregate amount withheld prior to the Distribution Date
from FSA Participants’ compensation under the Remainco FSA for such plan year, RMT Partner shall transfer to Remainco within
forty-five (45) days after the Distribution Date a cash payment equal to such excess, if any. Spinco shall Assume and be solely
responsible for all claims for reimbursement by FSA Participants under the terms of the Spinco FSA, whether incurred prior to,
on or after the Distribution Date, that have not been paid in full as of the Distribution Date, which claims shall be paid pursuant
to and under the terms of the Spinco FSA.

 

(b)          RMT
Partner Group and Spinco Group’s obligations under this Article IX are expressly conditioned upon Remainco providing
to RMT Partner Group and Spinco Group and their respective agents and representatives all information reasonably necessary for
RMT Partner Group and Spinco Group to comply with the obligations set forth in this Article IX within a reasonable time following
receipt of a reasonable written request from any member of RMT Partner Group, any member of Spinco Group or any of their respective
agents or representatives.

 

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Article X

MISCELLANEOUS

 

Section 10.1          Entire
Agreement; Counterparts; Exchanges by Facsimile. This Agreement, the Merger Agreement, the Ancillary Agreements
and the Confidentiality Agreement, including the exhibits and schedules hereto and thereto and the other agreements referred to
herein and therein shall constitute the entire agreement and shall supersede all prior agreements and understandings, both written
and oral, among or between any of the Parties with respect to the subject matter hereof and thereof. This Agreement may be executed
in several counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument.
The exchange of a fully executed Agreement (in counterparts or otherwise) by facsimile or electronic transmission shall be sufficient
to bind the Parties to the terms and conditions of this Agreement.

 

Section 10.2          No
Modifications. Nothing herein, express or implied, is intended or shall be construed to (i) constitute an amendment to
any Benefit Arrangement, Remainco Benefit Arrangement, Spinco Benefit Arrangement, RMT Partner Benefit Arrangement or other compensation
and benefits plan maintained for or provided to Spinco Employees or Spinco Former Employees or any other persons prior to or following
the Closing Date or (ii) confer upon or give to any person (including, for the avoidance of doubt, any Spinco Employee, Spinco
Former Employee or any other current or former employees, directors, or independent contractors of the Remainco Group or Spinco
Group, or on or after the Closing, RMT Partner Group or any of their post-Closing affiliates), other than the parties hereto,
any legal or equitable or other rights or remedies with respect to the matters provided for in this Agreement under or by reason
of any provision of this Agreement. No Spinco Employees or Spinco Former Employees, including any beneficiary or dependent thereof,
or any other person not a party to this Agreement, shall be entitled to assert any claim hereunder.

 

Section 10.3          Ancillary
Agreements. Except as expressly set forth herein, this Agreement is not intended to address, and should not be interpreted
to address, the matters specifically and expressly covered by the Ancillary Agreements.

 

Section 10.4          Relation
to Other Documents. To the extent there is any inconsistency between this Agreement and the terms of another agreement pertaining
to the Distributions or Merger (other than any Spinco Labor Agreement) that is the subject of this Agreement and such inconsistency
(a) arises in connection with or as a result of employment with or the performance of services before or after the Distributions
for any member of the Remainco Group, Spinco Group or RMT Partner Group and (b) relates to the allocation of Liabilities
attributable to any Benefit Arrangement or the employment, service, termination of employment or termination of service of all
present or former Remainco Employees, Spinco Employees, Spinco Former Employees or any of their dependents and beneficiaries (and
any alternate payees in respect thereof) and other service providers (including any individual who is, or was or is determined
to be an independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased
employee, on-call worker, incidental worker, or non-payroll worker or in any other employment, non-employment, or
retainer arrangement, or relationship with any member of the Remainco Group or the Spinco Group), the terms of this Agreement
shall prevail.

 

    26

     

    

 

Section 10.5          Legal
Requirements; Confidentiality Agreement. Nothing herein shall require the Remainco Group, the Spinco Group, or the RMT Partner
Group to disclose any information if such disclosure would jeopardize any attorney-client privilege or contravene any applicable
Legal Requirement or binding agreement entered into prior to the date of this Agreement; provided that the parties shall cooperate
to disclose such information to the extent possible without jeopardizing such privilege or contravening such Legal Requirements
or binding agreements. All information exchanged pursuant to this Agreement shall be subject to the Confidentiality Agreement.

 

Section 10.6          Notices.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been
duly given or made as follows: (a) if sent by registered or certified mail in the U.S. return receipt requested, upon receipt;
(b) if sent by nationally recognized overnight air courier (such as Federal Express), two (2) Business Days after mailing;
(c) if sent by facsimile transmission or e-mail before 5:00 p.m. Central Time, when transmitted and receipt is confirmed;
(d) if sent by facsimile transmission or e-mail after 5:00 p.m. Central Time and receipt is confirmed, on the following
Business Day; or (e) if otherwise actually personally delivered, when delivered; provided that such notices, requests,
demands and other communications are delivered to the physical address, e-mail address or facsimile number set forth below, or
to such other address as any Party shall provide by like notice to the other Parties to this Agreement:

 

if to RMT Partner or Spinco (after the Separation
Effective Time):

 

Regal Beloit Corporation

200 State Street

Beloit, WI 53511

Attention: Thomas E. Valentyn, Vice President, General Counsel and Secretary

Email: [#####]

 

with a copy (which shall not constitute notice)
to:

 

Sidley Austin LLP

One South Dearborn Street

Chicago, IL 60603

Attention: Scott R. Williams and Christopher R. Hale

Fax: (312) 853-7036

Email: swilliams@sidley.com and chale@sidley.com

 

if to Remainco or Spinco (prior to the Separation
Effective Time):

 

Rexnord Corporation

511 W. Freshwater Way

Milwaukee, WI 53204

Attention: Patricia M. Whaley, Vice President, General Counsel & Secretary

[#####]

 

    27

     

    

 

with a copy (which shall not constitute notice)
to:

 

Morgan, Lewis & Bockius LLP

101 Park Avenue

New York, NY 10178

Attention: R. Alec Dawson and Andrew L. Milano

		Phone:	(212) 309-7092

			(212) 309-6252

		Fax:	(212) 309-6001

		Email:	alec.dawson@morganlewis.com

                                         andrew.milano@morganlewis.com

 

and

 

Richards, Layton & Finger,
P.A.

920 North King Street

P.O. Box 551

Wilmington, DE 19801

Attention: Mark Gentile and Stephanie
Norman

Phone: (302) 651-7722; (302)
651-7756

Email: gentile@rlf.com; norman@rlf.com

 

A copy of any notice from Remainco to Spinco,
or from Spinco to Remainco, prior to the Separation Effective Time shall be provided to RMT Partner in accordance with the notice
procedures set forth in this Section 10.6.

 

Section 10.7          Waiver.

 

(a)           No
failure on the part of any Party to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part
of any Party in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power,
right, privilege or remedy; and no single or partial exercise of any such power, right, privilege or remedy shall preclude
any other or further exercise thereof or of any other power, right, privilege or remedy. The rights and remedies hereunder are
cumulative and not exclusive of any rights or remedies that any Party would otherwise have.

 

(b)           No
Party shall be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy under this
Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly
executed and delivered on behalf of such Party and, in the case of waivers by Remainco or Spinco or any of their Subsidiaries,
consented to in writing by RMT Partner; and any such waiver shall not be applicable or have any effect except in the specific
instance in which it is given.

 

Section 10.8          Assignment.
This Agreement shall be binding upon, and shall be enforceable by and inure solely to the benefit of, the Parties and their respective
successors and permitted assigns; provided, however, that neither this Agreement nor any Party’s rights or obligations
hereunder may be assigned or delegated by such Party without the prior written consent of the other Parties, except that a Party
may assign any of its rights under this Agreement: (i) as collateral security to a creditor, (ii) to one of its Affiliates
or (iii)(A) in connection with the sale of all or substantially all of its assets or (B) in the case of RMT Partner
or Spinco in connection with the sale of substantially all of the assets of the Spinco Business or the business unit of which
it is a part; provided, however, that in each case, no such assignment shall relieve such Party of any of its obligations.
Any attempted assignment or delegation of this Agreement or any of such rights or obligations by any Party in violation of this
Agreement without the prior written consent of the other Parties shall be void and of no effect.

 

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Section 10.9          Termination.
This Agreement shall terminate without further action at any time before the Separation Effective Time upon termination of the
Merger Agreement. If so terminated, no Party shall have any Liability of any kind to any other Party or any other Person on account
of this Agreement, except as provided in the Merger Agreement.

 

Section 10.10        Amendment.
This Agreement may not be amended except by an instrument in writing signed by an authorized representative of each of the Parties.

 

Section 10.11        Subsidiaries.
Each of the Parties shall cause to be performed, all actions, agreements and obligations set forth herein to be performed by any
of its Subsidiaries (including Spinco and its Subsidiaries) with respect to (a) Remainco prior to the Separation Effective
Time and (b) the RMT Partner following the Effective Time.

 

Section 10.12        Third-Party-Beneficiaries.
This Agreement is solely for the benefit of the Parties and nothing in this Agreement, express or implied, is intended to or shall
confer upon any Person (other than the Parties) any right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement.

 

Section 10.13        Governing
Law; Jurisdiction; Specific Performance; Remedies. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts
of laws thereof. In any Legal Proceeding between any of the Parties arising out of or relating to this Agreement or any of the
transactions contemplated hereby: (a) each of the Parties irrevocably and unconditionally consents and submits to the exclusive
jurisdiction and venue of the Court of Chancery of the State of Delaware or, if under applicable Legal Requirements, the Court
of Chancery does not have subject matter jurisdiction over such matter, in any federal court in the State of Delaware or, if under
applicable Legal Requirements, neither such court has subject matter jurisdiction over such matter, in any other state court in
the State of Delaware, and in each case any appellate court with jurisdiction therefrom (the “Chosen Courts”);
(b) each of the Parties irrevocably waives the right to trial by jury; and (c) each of the Parties irrevocably
and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, any claim (i) that
it is not personally subject to the jurisdiction of the Chosen Courts as described herein for any reason; (ii) that
it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts;
and (iii) that (x) the claim, action, suit or other Legal Proceeding in any such court is brought in an inconvenient
forum; (y) the venue of such claim, action, suit or other Legal Proceeding is improper; or (z) this Agreement,
the Ancillary Agreements, or the subject matter hereof or thereof, may not be enforced in or by such courts. Each of the Parties
further agrees that, to the fullest extent permitted by applicable Legal Requirements, service of any process, summons, notice
or document in accordance with the provisions of Section 10.6 will be effective service of process for any claim, action,
suit or other Legal Proceeding in the Chosen Courts with respect to any matters to which it has submitted to jurisdiction as set
forth in this paragraph. The Parties hereby agree that a final judgment in any such claim, suit, action or other Legal Proceeding
will be conclusive, subject to any appeal, and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by applicable Legal Requirements. The Parties agree that irreparable damage would occur and that the Parties would
not have any adequate remedy at law in the event that any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached. It is accordingly agreed that the Parties shall be entitled to specific
performance and injunctive or other equitable relief to prevent breaches of this Agreement and to enforce specifically the terms
and provisions of this Agreement without the requirement for the posting of any bond, this being in addition to any other remedy
to which they are entitled at law or in equity. All rights and remedies existing under this Agreement are cumulative to, and not
exclusive of, any rights or remedies otherwise available.

 

    29

     

    

 

Section 10.14        Severability.
Any term or provision of this Agreement (or part thereof) that is invalid or unenforceable in any situation in any jurisdiction
shall not affect the validity or enforceability of the remaining terms and provisions of this Agreement or the validity or enforceability
of the offending term or provision (or part thereof) in any other situation or in any other jurisdiction. If a final judgment
of a court of competent jurisdiction declares that any term or provision of this Agreement (or part thereof) is invalid or unenforceable,
the Parties agree that the court making such determination shall have the power to limit such term or provision (or part thereof),
to delete specific words or phrases or to replace such term or provision with a term or provision that is valid and enforceable
and that comes closest to expressing the intention of the invalid or unenforceable term or provision (or part thereof), and this
Agreement shall be valid and enforceable as so modified. In the event such court does not exercise the power granted to it in
the prior sentence, the Parties agree to replace such invalid or unenforceable term or provision (or part thereof) with a valid
and enforceable term or provision that will achieve, to the extent possible, the economic, business and other purposes of such
invalid or unenforceable term or provision.

 

Section 10.15        No
Double Recovery. Nothing in this Agreement is intended to confer to or impose upon any Party a duplicative recovery with respect
to any matter arising out of the same facts and circumstances.

 

Section 10.16        Construction.

 

(a)           For
purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and vice versa;
the masculine gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and neuter
genders; and the neuter gender shall include masculine and feminine genders.

 

    30

     

    

 

(b)           The
Parties agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting Party
shall not be applied in the construction or interpretation of this Agreement.

 

(c)           As
used in this Agreement, unless otherwise specified, the words “include” and “including,” and variations
thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without
limitation.”

 

(d)           As
used in this Agreement, the word “extent” in the phrase “to the extent” shall mean the degree to which
a subject or other thing extends, and such phrase shall not mean simply “if.”

 

(e)           As
used in this Agreement, the terms “or,” “any” or “either” are not exclusive.

 

(f)            Except
as otherwise indicated, all references in this Agreement to “Articles,” “Sections,” “Exhibits”
and “Schedules” are intended to refer to Sections or Articles of this Agreement and Exhibits or Schedules to this
Agreement.

 

(g)           As
used in this Agreement, the terms “hereunder,” “hereof,” “hereto,” “herein” and
words of similar import shall be deemed to refer to this Agreement as a whole and not to any particular Section or other
provision.

 

(h)           The
headings contained in this Agreement are for convenience of reference only, shall not be deemed to be a part of this Agreement
and shall not be referred to in connection with the construction or interpretation of this Agreement.

 

(i)            Unless
the context requires otherwise, references in this Agreement to “Remainco” shall also be deemed to refer to the applicable
member of the Remainco Group, references to “Spinco” shall also be deemed to refer to the applicable member of the
Spinco Group, references to “RMT Partner” shall also be deemed to refer to the applicable member of the RMT Partner
Group and, in connection therewith, any references to actions or omissions to be taken, or refrained from being taken, as the
case may be, by Remainco, Spinco or RMT Partner shall be deemed to require Remainco, Spinco or RMT Partner, as the case may be,
to cause the applicable members of the Remainco Group, the Spinco Group or the RMT Partner Group, respectively, to take, or refrain
from taking, any such action. In the event of any inconsistency or conflict which may arise in the application or interpretation
of any of the definitions set forth in Article I, for the purpose of determining what is and is not included in such definitions,
any item explicitly included on a Schedule referred to in any such definition shall take priority over any provision of the text
thereof.

 

[Signatures of the Parties on Next Page]

 

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

 

	 	REXNORD CORPORATION
	 	 	 
	 	By:	/s/ Todd A. Adams
	 	Name: 	Todd A. Adams
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	LAND NEWCO, INC
	 	 	 
	 	By:	/s/ Todd A. Adams
	 	Name: 	Todd A. Adams
	 	Title:	President

 

[Signature Page to Employee
Matters Agreement]

 

    

     

    

 

	 	REGAL BELOIT CORPORATION
	 	 	 
	 	By:	/s/ Louis V. Pinkham
	 	Name:	Louis V. Pinkham
	 	Title:	Chief Executive Officer

 

[Signature Page to Employee Matters
Agreement]Exhibit 10.3

 

Execution
Version

 

REAL ESTATE MATTERS AGREEMENT

 

This Real Estate Matters
Agreement (this “Agreement”) is entered into on February 15, 2021, by and among (i) Rexnord Corporation,
a Delaware corporation (“Remainco”) (ii) Land Newco, Inc., a Delaware corporation and wholly owned
indirect Subsidiary of Remainco (“Spinco”); and Regal Beloit Corporation, a Wisconsin corporation (“RMT
Partner”) (each a “Party” and together, the “Parties”).

 

R E C I T A L S:

 

WHEREAS, a majority
of the Owned Properties and Leased Properties are currently owned or leased by a member of the Spinco Group;

 

WHEREAS, in accordance
with the Separation and Distribution Agreement dated as of the date hereof, by and among Remainco, Spinco and RMT Partner (the
 “Separation Agreement”), Remainco will cause the Asset Transferors to transfer to the respective Spinco Asset
Transferee, certain assets owned or leased by the Asset Transferors that are not currently owned or leased by a member of the Spinco
Group;

 

WHEREAS, in accordance
with the Separation Agreement, Remainco will cause the Asset Transferees to transfer to the respective Remainco Asset Transferee,
certain Remainco Retained Properties that are currently owned or leased by a member of the Spinco Group;

 

WHEREAS, the Parties
desire to set forth certain agreements regarding real estate matters.

 

NOW, THEREFORE, in
consideration of the foregoing, the covenants and agreements set forth below, and other good and valuable consideration, the sufficiency
of which is hereby acknowledged, the Parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.1     Definitions.
The following terms, as used herein, shall have the meanings stated below. Capitalized terms used herein and not otherwise defined
herein shall have the meanings ascribed to such terms in the Separation Agreement.

 

(a)           “Actual
Completion Date” means, with respect to each Owned Property or Leased Property, the date upon which completion of the
transfer, assignment and sublease of that Owned Property or Leased Property actually takes place in accordance with the terms and
conditions of this Agreement.

 

(b)            “Excluded
Personal Property” means that certain equipment, office equipment, trade fixtures, furniture and any other personal property
located at each Owned Property or Leased Property which are tangible Remainco Retained Assets as contemplated in Section 2.15
of the Separation Agreement.

 

    

     

    

 

(c)            “Landlord”
means the third-party landlord or sublandlord under a Lease, and its successors and assigns, and includes the holder of any other
interest which is superior to the interest of the landlord or sublandlord under such Lease.

 

(d)            “Lease”
means, in relation to each Leased Property, the leases or subleases under which the respective Asset Transferors hold such Leased
Property and any other supplemental document completed prior to the Actual Completion Date (including, without limitation, any
amendments).

 

(e)            “Lease
Assignment Forms” means the forms of lease assignment reasonably agreed to by the Parties, acting in good faith.

 

(f)            “Lease
Consents” means, as applicable all Consents required from the Landlord and/or other third parties under the Relevant
Leases (including, without limitation, a waiver of a right to recapture the Leased Property, if applicable) to assign the Relevant
Leases to an applicable Spinco Asset Transferee, or to sublease the Leased Property to an applicable Spinco Asset Transferee, or
to enter into any of the other transactions contemplated by the Separation Agreement or this Agreement.

 

(g)            “Leased
Properties” means those properties, other than Remanico Retained Properties, identified as “Leased Properties”
on the Owned and Leased Properties Schedule, and all other properties primarily used in the Spinco Business as of the Distribution
Date or at any time during the Measurement Period (as defined in the Merger Agreement) other than in the ordinary course of business,
which properties are or were held pursuant to a Lease and will be or have been transferred by lease assignment to the applicable
Spinco Asset Transferee prior to or as of the Distribution Date subject to obtaining the necessary Lease Consents.

 

(h)            “Owned
and Leased Properties Schedule” means Schedule 1 attached hereto.

 

(i)            “Owned
Properties” means those properties, other than Remanico Retained Properties, identified as “Owned Properties”
on the Owned and Leased Properties Schedule, and all properties primarily used in the Spinco Business as of the Distribution Date
or at any time during the Measurement Period (as defined in the Merger Agreement) other than in the ordinary course of business,
which properties are owned by the respective Asset Transferors and will transfer or have been transferred by deed to the applicable
Spinco Asset Transferee in fee prior to or as of the Distribution Date.

 

(j)            “Relevant
Leases” means those Leases set forth on Schedule 2 attached here to and any other Lease with respect to which
the Landlord’s and/or other third parties’ consent is required for (x) assignment to a Spinco Asset Transferee,
as applicable, as contemplated by the Separation Agreement or hereunder, or (y) any of the other transactions contemplated
by the Separation Agreement or this Agreement (including, without limitation, a sublease).

 

(k)            “Remainco
Retained Properties” means each of those properties listed on Schedule 3 attached hereto which will not, and which
are not intended to, be transferred, leased, subleased or licensed to Spinco in accordance with this Agreement.

 

(l)            “Spinco
Properties” means each of those properties listed on Schedule 4 attached hereto which are currently owned or leased
by a member of the Spinco Group.

 

    2

     

    

 

ARTICLE II

OWNED PROPERTY AND LEASED PROPERTY IN THE UNITED STATES

 

Section 2.1     Spinco
Properties. The Spinco Properties are currently owned or leased by a member of the Spinco Group and do not require to be transferred
or assigned pursuant to this Agreement.

 

Section 2.2     Owned
Property. Remainco shall cause its applicable Asset Transferors to convey each of the Owned Properties (together with all improvements
and fixtures thereon and all rights and easements appurtenant thereto) to the applicable Spinco Asset Transferees, as directed
by RMT Partner, subject to the other provisions of this Agreement and the terms of the Separation Agreement. Such conveyance shall
be completed on or before the Distribution Date.

 

Section 2.3     Leased
Property. Remainco shall cause its applicable Asset Transferors to assign, and Spinco shall cause its applicable Spinco Asset
Transferees to accept and assume, as directed by RMT Partner, the respective Asset Transferor’s valid leasehold interest
in the Leased Properties, subject to the other provisions of this Agreement and the terms of the Separation Agreement. Such assignment
shall be completed on or before the Distribution Date; provided if a Lease Consent is required but not obtained prior to the Distribution
Date for any assignment, the assignment shall be completed as soon as practicable following the Distribution Date.

 

Section 2.4     Remainco
Retained Properties. Remainco shall cause its applicable Asset Transferors to transfer or assign each of the Remainco Retained
Properties (together with all improvements and fixtures thereon and all rights and easements appurtenant thereto) to an applicable
Remainco Asset Transferee. Such conveyance shall be completed on or before the Distribution Date.

 

Section 2.5     Obtaining
the Lease Consents.

 

(a)            Remainco
confirms that, with respect to each Leased Property, to the extent required by the Relevant Lease, an application/request will
be diligently made to the relevant Landlord for the Lease Consents required in accordance with the terms and conditions of the
Relevant Lease with respect to the transactions contemplated by this Agreement and the Separation Agreement. Remainco shall be,
and has at all times been, primarily responsible for requesting, negotiating and obtaining all Lease Consents. Remainco shall notify
Spinco in writing on a weekly basis of the status of the Lease Consents and any issues arising therefrom.

 

(b)            Remainco
shall use reasonable best efforts to obtain the Lease Consents, but Remainco shall not be required to commence judicial proceedings
for a declaration that a Lease Consent has been unreasonably withheld, conditioned or delayed, nor shall Remainco be required to
pay any consideration in excess of that required by the Relevant Lease to obtain the relevant Lease Consent.

 

    3

     

    

 

(c)            Spinco
and RMT Partner will promptly satisfy the lawful requirements of the Landlord as set forth in the Relevant Lease, and will take
all reasonable steps to assist Remainco in obtaining the Lease Consents, including those set forth in Section 2.11 of the
Separation Agreement and including, without limitation:

 

(i)            if
reasonably required by the Landlord, entering into an agreement with the relevant Landlord to observe and perform the tenant’s
obligations contained in the Relevant Lease from and after the Distribution Date throughout the remainder of the term of the Relevant
Lease, subject to any statutory limitations of such liability; and

 

(ii)            if
reasonably required by the Landlord, providing a guarantee, surety or other commercially reasonable security (including, without
limitation, a security deposit) for the obligations of applicable Spinco Asset Transferee, as tenant under the Relevant Lease,
and otherwise taking all steps which are reasonably necessary and which it is capable of doing to meet the lawful requirements
of the Landlord as set forth in the Relevant Lease so as to ensure that the Lease Consents are obtained.

 

(d)            RMT
Partners agrees to accept assignment from Remainco of that certain Master Lease, with an effective date of February 19, 2019
(“Master Lease”) by and between Rexnord Corporation, as tenant, and 111 Michigan Partners LLC, as landlord,
to an entity at the RMT Partner level that is consistent with the requirements in Section 11.1 of the Master Lease and/or
provide a parent guaranty, if required.

 

Section 2.6     Occupancy.

 

(a)            In
the event that the Actual Completion Date for any Owned Property or Leased Property does not occur on or before the Distribution
Date, whether or not a member of the Spinco Group occupies the Leased Property or Owned Property, Spinco and RMT Partner shall,
effective as of the Distribution Date, (i) pay Remainco or the applicable Asset Transferor all rents, service charges, insurance
premiums, real estate taxes and other sums payable by Remainco or the respective Asset Transferor under any Relevant Lease or Owned
Property, accruing after the Actual Completion Date, or Distribution Date, whichever is later, and (ii) indemnify, defend,
protect and hold harmless Remainco and the applicable Asset Transferor from and against all losses, costs, claims, damages and
liabilities arising on account of any breach of the Leases by Spinco or a member of the Spinco Group after the Actual Completion
Date, or Distribution Date, whichever is later.

 

(b)            In
the event that the Actual Completion Date for any Remainco Retained Property does not occur on or before the Distribution Date,
whether or not a member of the Remainco Group occupies the Leased Property or Owned Property, Remainco shall (i) pay RMT Partner
all rents, service charges, insurance premiums, real estate taxes and other sums payable by Remainco or the respective Asset Transferor
under any Lease or Owned Property, (ii) observe, in all material respects, the tenant’s covenants, obligations and conditions
contained in the Lease, and (iii) indemnify, defend, protect and hold harmless Spinco and RMT Partner from and against all
losses, costs, claims, damages and liabilities arising on account of any breach of the Leases by Remainco or the applicable Asset
Transferor, in each case arising on or prior to the Actual Completion Date, or Distribution Date, whichever is later.

 

    4

     

    

 

(c)            Remainco
shall supply promptly to Spinco copies of all invoices, demands, notices and other communications received by Remainco or the applicable
Asset Transferor or agents in connection with any of the matters for which Spinco may be liable to make any payment or perform
any obligation pursuant to Section 2.6(a), and shall, at Spinco’s cost, (x) take any steps and pass on any
objections which Spinco may have in connection with any such matters, provided Spinco has any audit right as set forth in the Lease;
provided that the failure to so supply shall not relieve Remainco of its indemnification or reimbursement obligations hereunder,
and (y) at the direction of Remainco, enforce the applicable Asset Transferor’s rights against the Landlord under the
Relevant Lease; provided that the failure to so supply shall not relieve Spinco of its indemnification or reimbursement obligations
hereunder. Spinco shall promptly supply to Remainco any notices, demands, invoices and other communications received by Spinco
or a member of the Spinco Group or its agents from any Landlord while a member of the Spinco Group occupies any Leased Property
without the relevant Lease Consent.

 

Section 2.7     Obligation
to Complete. If, with respect to any Leased Property, at any time the relevant Lease Consent is lawfully, formally and unconditionally
refused in writing, the Parties shall commence good faith negotiations and use commercially reasonable efforts to determine how
to resolve based on the relative importance of the applicable Leased Property to the operations of the Spinco Business, including,
without limitation, the size of the applicable Spinco Property, the number of employees at the applicable Spinco Property, the
value of assets associated with the Spinco Property, the cost to relocate, and the potential risk and liability to each Party in
the event any enforcement action is brought by the applicable Landlord. Such commercially reasonable efforts shall include assigning
at the appropriate entity level, providing a parent guaranty if required by the applicable landlord, consideration of alternate
structures to accommodate the needs of each Party and the allocation of the costs thereof, including entering into amendments of
the size, term or other terms of the Relevant Lease and restructuring a proposed lease assignment to be a sublease, license or
other similar agreement. If a sublease, license or other similar agreement is the agreed upon structure, Remainco shall apply to
the relevant Landlord for consent to sublease or license all of the relevant Leased Property to the applicable Spinco Asset Transferee
for the remainder of the Relevant Lease term less one (1) day at a rent equal to the rent from time to time under the Relevant
Lease, but otherwise on substantially the same terms and conditions as the Relevant Lease. If Remainco makes such an election,
until such time as the relevant Lease Consent is obtained and a sublease, license or other similar agreement is completed, the
provisions of Section 2.5 will apply and, on the grant of the Lease Consent required for the Leased Property in question,
the applicable Asset Transferor shall sublease or license to the applicable Spinco Asset Transferee the relevant Leased Property.

 

Section 2.8     Form of
Transfer. To the extent required, the conveyance to the applicable Spinco Asset Transferees of each (i) Owned Property
shall be in the form of a special or limited warranty deed, or its equivalent, in statutory form and in a form reasonably acceptable
to RMT Partner, executed by the applicable Remainco Asset Transferor, (ii) Leased Property shall be in the form of the Lease
Assignment Form executed by the applicable Remainco Asset Transferor and applicable Spinco Asset Transferee, (iii) Owned
Property and Leased Property shall require transfer tax forms (state, local or municipal, as applicable) executed by the applicable
Remainco Asset Transferor and applicable Spinco Asset Transferee, if required, (iv) Owned Property shall require a FIRPTA
affidavit in a form reasonably acceptable to RMT Partner, executed by the applicable Remainco Asset Transferor, and (v) Owned
Property and Leased Property shall require such other deliverables as may be required by the laws of the jurisdiction in which
the Owned Property or Leased Property is located, executed by the applicable Remainco Asset Transferor and applicable Spinco Asset
Transferee, if required.

 

    5

     

    

 

Section 2.9     Casualty;
Lease Termination.

 

(a)            If,
prior to the Actual Completion Date (but not after the Effective Time (as defined in the Merger Agreement)), there shall occur
any physical damage to or destruction of, or similar loss of, any Owned Property or Leased Property (or any part thereof) (a “Casualty
Loss”) or any condemnation or taking by eminent domain by a Governmental Body of any of such Owned Property or Leased
Property (a “Condemnation Event”), then, in any such event, Remainco shall promptly notify RMT Partner, and:
(i) Remainco shall use its reasonable best efforts to (A) replace or repair (as applicable) the Owned Property or Leased
Property subject to such Casualty Loss and (B) replace the Owned Property or Leased Property that has been condemned or taken
such that the operation of the Spinco Business can continue in all material respects in the ordinary course consistent with past
practices; or (ii) if the conveyance or assignment is consummated pursuant to the terms and conditions of this Agreement notwithstanding
such Casualty Loss or Condemnation Event, and if such damaged, destroyed or condemned or taken Owned Property or Leased Property
has not been repaired or replaced as of the Effective Time (as defined in the Merger Agreement), then, without limiting Spinco’s
or any member of the Spinco Group’s other rights hereunder, promptly after any casualty insurance proceeds, business interruption
insurance proceeds or condemnation proceeds payable to Remainco or the applicable Remainco Asset Transferor with respect to such
Casualty Loss or Condemnation Event have been actually collected, Remainco shall, or shall cause the applicable Remainco Asset
Transferor to, pay to Spinco or the applicable Spinco Asset Transferee: (x) the aggregate amount, if any, of such casualty
insurance proceeds described above actually paid to Remainco or the applicable Remainco Asset Transferor in connection with such
Casualty Loss, as well as the amount of the deductible due under the applicable insurance policy; (y) the aggregate amount,
if any, of such business interruption insurance proceeds described above actually paid to Remainco or the applicable Remainco Asset
Transferor in connection with such Casualty Loss; and (z) the aggregate amount, if any, of such condemnation proceeds described
above actually paid to Remainco or the applicable Remainco Asset Transferor in connection with such Condemnation Event. Remainco
shall, and shall cause the applicable Remainco Asset Transferors to, use commercially reasonable efforts to collect amounts due
(if any) under insurance policies or programs in respect of any Casualty Loss or as a result of a Condemnation Event. The amount
of any insurance or condemnation proceeds actually paid to Remainco or the applicable Remainco Asset Transferor shall be included
as a Spinco Asset, but shall not be counted toward Closing Working Capital and shall not be included as part of the Cash Payment
or be distributable cash available to Remainco or any other member of the Remainco Group.

 

(b)            In
addition, in the event that a Lease is terminated prior to the Distribution Date, (i) Remainco or the applicable Asset Transferor
shall not be required to assign such Leased Property, (ii) Spinco or the applicable Spinco Asset Transferee shall not be required
to accept an assignment, of such Leased Property and (iii) neither party shall have any further liability with respect to
such Leased Property hereunder.

 

    6

     

    

 

Section 2.10     Fixtures
and Fittings. The provisions of the Separation Agreement shall apply to any equipment, office equipment, trade fixtures, furniture
and any other personal property located at each Owned Property or Leased Property (excluding any equipment, office equipment, trade
fixtures, furniture and any other personal property owned by third parties), except for the applicable scheduled Excluded Personal
Property.

 

Section 2.11     Costs.
Remainco and Spinco shall share the actual costs and expenses equally incurred in connection with obtaining the Lease Consents
for those Leases with respect to which the Landlord’s and/or other third parties’ consent is required for an assignment
to a Spinco Asset Transferee, as applicable, as contemplated by the Separation Agreement or hereunder, including, without limitation,
Landlord’s Consent fees and attorneys’ fees and any costs and expenses. Except as otherwise provided herein, Remainco
and Spinco shall also share the actual costs and expenses equally in connection with the transfer of any Owned Property or Leased
Property to a Spinco Asset Transferee pursuant to this Agreement, including escrow fees, recording fees, and any transfer taxes
arising as a result of such transfers. Spinco shall be solely responsible for any title insurance premiums and survey costs.

 

ARTICLE III

OWNED PROPERTY AND LEASED PROPERTY OUTSIDE THE UNITED STATES

 

Section 3.1     Owned
Property and Leased Property Outside the United States. With respect to each of the Owned Properties and Leased Properties
located outside the United States listed on the Owned and Leased Property Schedule, Remainco and Spinco will use the appropriate
form document reasonably agreed to by the Parties, translated into the local language, if customary under local practice, and modified
to comply with local legal requirements to cause the appropriate transfers, assignments, subleases or licenses to occur. Such transfers,
lease assignments, subleases and licenses shall, so far as the law in the jurisdiction in which such Owned Property or Leased Property
is located permits, be on the same terms and conditions as provided in Article II and shall include such other deliveries
(and the Parties shall comply with such other customary procedures and formalities) as may be required by the laws of the jurisdiction
in which the Owned Property or Leased Property is located. In the event of a conflict between the terms of this Agreement and the
terms of such local agreements, the terms of the local agreements shall prevail.

 

ARTICLE IV

MISCELLANEOUS

 

Section 4.1     Entire
Agreement; Counterparts; Exchanges by Facsimile. This Agreement, the Merger Agreement, the Ancillary Agreements and
the Confidentiality Agreement, including the exhibits and schedules hereto and thereto and the other agreements referred to herein
and therein shall constitute the entire agreement and shall supersede all prior agreements and understandings, both written and
oral, among or between any of the Parties with respect to the subject matter hereof and thereof. In the event of a conflict between
the terms of this Agreement and the terms of the Separation Agreement, the terms of this Agreement shall prevail. This Agreement
may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute one and the
same instrument. The exchange of a fully executed Agreement (in counterparts or otherwise) by facsimile or electronic transmission
shall be sufficient to bind the Parties to the terms and conditions of this Agreement.

 

    7

     

    

 

Section 4.2     Survival.
The covenants and agreements that by their terms are to be performed following the Separation Effective Time pursuant to this Agreement
or any other Ancillary Agreement shall survive the Separation Effective Time in accordance with their terms, and all other covenants
and agreements herein and therein shall terminate and shall not survive the Separation Effective Time.

 

Section 4.3     Expenses.
Except as otherwise provided in this Agreement, the Merger Agreement or any Ancillary Agreement, (i) all fees and expenses
incurred in connection with this Agreement and the Merger Agreement and the transactions contemplated hereby or thereby shall be
paid by the Party incurring such expenses, whether or not the transactions contemplated hereby or by the Merger Agreement are consummated
and (ii) all out of pocket expenses and fees incurred but not paid prior to the Effective Time by or on behalf of the Spinco
Group in connection with this Agreement, the Ancillary Agreements and the transactions contemplated hereby and thereby, including
fees payable to investment banks, accountants, consultants, and counsel, shall be deemed to be fees and expenses of Remainco and
Assumed by Remainco.

 

Section 4.4     Notices.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been
duly given or made as follows:   i) if sent by registered or certified mail in the U.S. return receipt requested,
upon receipt;  ii) if sent by nationally recognized overnight air courier (such as Federal Express), two (2) Business
Days after mailing;  iii) if sent by facsimile transmission or e-mail before 5:00 p.m. Central Time, when
transmitted and receipt is confirmed;  iv) if sent by facsimile transmission or e-mail after 5:00 p.m. Central
Time and receipt is confirmed, on the following Business Day; or  v) if otherwise actually personally delivered,
when delivered; provided that such notices, requests, demands and other communications are delivered to the physical
address, e-mail address or facsimile number set forth below, or to such other address as any Party shall provide by like notice
to the other Parties to this Agreement:

 

if to RMT Partner or Spinco (after the Separation
Effective Time):

 

Regal Beloit Corporation

200 State Street

Beloit, WI 53511

Attention: Thomas E. Valentyn, Vice President, General Counsel and Secretary

Email: [#####]

 

with a copy (which shall not constitute notice)
to:

 

Sidley
Austin LLP

One South Dearborn Street

Chicago, IL 60603

Attention:  Scott R. Williams and Christopher R. Hale

Fax:  (312) 853-7036

Email:  swilliams@sidley.com and chale@sidley.com

 

    8

     

    

 

if to Remainco or Spinco (prior to the Separation
Effective Time):

 

Rexnord Corporation

511 W. Freshwater Way

Milwaukee, WI 53204

Attention: Patricia M. Whaley, Vice President, General Counsel & Secretary

Email: [#####]

 

with a copy (which shall not constitute notice)
to:

 

Morgan,
Lewis & Bockius LLP

101 Park Avenue

New York, NY 10178

Attention: R. Alec Dawson and Andrew L. Milano

	Phone:	(212) 309-7092
		(212) 309-6252
	Fax:	(212) 309-6001
	Email:	alec.dawson@morganlewis.com
		andrew.milano@morganlewis.com

 

and

 

Richards,
Layton & Finger, P.A.

920 North King Street

P.O. Box 551

Wilmington, DE 19801

Attention: Mark Gentile and Stephanie Norman

Phone: (302) 651-7722; (302) 651-7756

Email: gentile@rlf.com; norman@rlf.com

 

A copy of any notice from Remainco to Spinco,
or from Spinco to Remainco, prior to the Separation Effective Time shall be provided to RMT Partner in accordance with the notice
procedures set forth in this Section 4.4.

 

Section 4.5     Waiver.

 

(a)            No
failure on the part of any Party to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part
of any Party in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power,
right, privilege or remedy; and no single or partial exercise of any such power, right, privilege or remedy shall preclude
any other or further exercise thereof or of any other power, right, privilege or remedy. The rights and remedies hereunder are
cumulative and not exclusive of any rights or remedies that any Party would otherwise have.

 

(b)            No
Party shall be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy under this
Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly
executed and delivered on behalf of such Party and, in the case of waivers by Remainco or Spinco or any of their Subsidiaries,
consented to in writing by RMT Partner; and any waiver shall not be applicable or have any effect except in the specific instance
in which it is given.

 

    9

     

    

 

Section 4.6     Assignment.
This Agreement shall be binding upon, and shall be enforceable by and inure solely to the benefit of, the Parties and their respective
successors and permitted assigns; provided, however, that neither this Agreement nor any Party’s rights or obligations
hereunder may be assigned or delegated by such Party without the prior written consent of the other Parties except that a Party
may assign any of its rights under this Agreement: (i) as collateral security to a creditor, (ii) to one of its Affiliates
or (iii)(A) in connection with the sale of all or substantially all of its assets or (B) in the case of RMT Partner or
Spinco in connection with the sale of substantially all of the assets of the Spinco Business or the business unit of which it is
a part; provided, however, that in each case, no such assignment shall relieve such Party of any of its obligations.
Any attempted assignment or delegation of this Agreement or any of such rights or obligations by any Party in violation of this
Agreement without the prior written consent of the other Parties shall be void and of no effect.

 

Section 4.7     Termination.
This Agreement shall terminate without further action at any time before the Separation Effective Time upon termination of the
Merger Agreement. If so terminated, no Party shall have any Liability of any kind to any other Party or any other Person on account
of this Agreement, except as provided in the Merger Agreement.

 

Section 4.8     Amendment.
This Agreement may not be amended except by an instrument in writing signed by an authorized Representative of each of the Parties.

 

Section 4.9     Payment
Terms.

 

(a)            Except
as set forth in Article IV of the Separation Agreement or as otherwise expressly provided to the contrary in this Agreement
or in any other Ancillary Agreement, any amount to be paid or reimbursed by a Party (and/or a member of such Party’s Group),
on the one hand, to the other Party (and/or a member of such Party’s Group), on the other hand, under this Agreement shall
be paid or reimbursed hereunder within 30 days after presentation of an invoice or a written demand therefor and setting forth,
or accompanied by, reasonable documentation or other reasonable explanation supporting such amount.

 

(b)            Without
the consent of the Party receiving any payment under this Agreement specifying otherwise, all payments to be made by either Remainco
or Spinco under this Agreement shall be made in U.S. dollars. Except as expressly provided herein, any amount which is not expressed
in U.S. dollars shall be converted into U.S. dollars by using the exchange rate published on Bloomberg at 5:00 p.m. Central
Time two days prior to the relevant date or in The Wall Street Journal on such date if not so published on Bloomberg. Except as
expressly provided herein, in the event that any indemnification payment required to be made hereunder or under any other Ancillary
Agreement may be denominated in a currency other than U.S. dollars, the amount of such payment shall be converted into U.S. Dollars
on the date in which notice of the claim is given to the Indemnifying Party.

 

    10

     

    

 

Section 4.10     Subsidiaries.
Each of the Parties shall cause to be performed, all actions, agreements and obligations set forth herein to be performed by any
of its Subsidiaries (including Spinco and its Subsidiaries with respect to (i) Remainco prior to the Separation Effective
Time and (ii) the RMT Partner following the Effective Time.

 

Section 4.11     Third-Party-Beneficiaries.
Except (i) as provided in Article IV of the Separation Agreement relating to Indemnitees and for the release under Section 4.1
of the Separation Agreement of any Person provided therein, and (ii) as specifically provided in any Ancillary Agreement,
this Agreement is solely for the benefit of the Parties and nothing in this Agreement, express or implied, is intended to or shall
confer upon any Person (other than the Parties) any right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement.

 

Section 4.12     Exhibits
and Schedules. The Exhibits and Schedules shall be construed with and as an integral part of this Agreement to the same extent
as if the same had been set forth verbatim herein. Nothing in the Exhibits or Schedules constitutes an admission of any liability
or obligation of any member of the Remainco Group or the Spinco Group or any of their respective Affiliates to any third party,
nor, with respect to any third party, an admission against the interests of any member of the Remainco Group or the Spinco Group
or any of their respective Affiliates. The inclusion of any item or liability or category of item or liability on any Exhibit or
Schedule is made solely for purposes of allocating potential liabilities among the Parties and shall not be deemed as or construed
to be an admission that any such liability exists.

 

Section 4.13     Governing
Law; Jurisdiction; Specific Performance; Remedies. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts
of laws thereof; provided, however, the Parties acknowledge that the conveyances, assignments, subleases and licenses will be governed
by the law of the jurisdiction in which the Owned Property and Leased Property is located, as applicable. In any Legal Proceeding
between any of the Parties arising out of or relating to this Agreement or any of the transactions contemplated hereby: (a) each
of the Parties irrevocably and unconditionally consents and submits to the exclusive jurisdiction and venue of the Court of Chancery
of the State of Delaware or, if under applicable Legal Requirements, the Court of Chancery does not have subject matter jurisdiction
over such matter, in any federal court in the State of Delaware or, if under applicable Legal Requirements, neither such court
has subject matter jurisdiction over such matter, in any other state court in the State of Delaware, and in each case any appellate
court with jurisdiction therefrom (the “Chosen Courts”); (b) each of the Parties irrevocably waives
the right to trial by jury; and (c) each of the Parties irrevocably and unconditionally waives, and agrees not to assert,
by way of motion or as a defense, counterclaim or otherwise, any claim (i) that it is not personally subject to the jurisdiction
of the Chosen Courts as described herein for any reason; (ii) that it or its property is exempt or immune from jurisdiction
of any such court or from any legal process commenced in such courts; and (iii) that (x) the claim, action, suit
or other Legal Proceeding in any such court is brought in an inconvenient forum; (y) the venue of such claim, action,
suit or other Legal Proceeding is improper; or (z) this Agreement, the Ancillary Agreements, or the subject matter hereof
or thereof, may not be enforced in or by such courts. Each of the Parties further agrees that, to the fullest extent permitted
by applicable Legal Requirements, service of any process, summons, notice or document in accordance with the provisions of Section 4.4
will be effective service of process for any claim, action, suit or other Legal Proceeding in the Chosen Courts, with respect to
any matters to which it has submitted to jurisdiction as set forth in this paragraph. The Parties hereby agree that a final judgment
in any such claim, suit, action or other Legal Proceeding will be conclusive, subject to any appeal, and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by applicable Legal Requirements. The Parties agree that
irreparable damage would occur and that the Parties would not have any adequate remedy at law in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that the Parties shall be entitled to specific performance and injunctive or other equitable relief to prevent breaches of this
Agreement and to enforce specifically the terms and provisions of this Agreement without the requirement for the posting of any
bond, this being in addition to any other remedy to which they are entitled at law or in equity. All rights and remedies existing
under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

    11

     

    

 

Section 4.14     Severability.
Any term or provision of this Agreement (or part thereof) that is invalid or unenforceable in any situation in any jurisdiction
shall not affect the validity or enforceability of the remaining terms and provisions of this Agreement or the validity or enforceability
of the offending term or provision (or part thereof) in any other situation or in any other jurisdiction. If a final judgment of
a court of competent jurisdiction declares that any term or provision of this Agreement (or part thereof) is invalid or unenforceable,
the Parties agree that the court making such determination shall have the power to limit such term or provision (or part thereof),
to delete specific words or phrases or to replace such term or provision with a term or provision that is valid and enforceable
and that comes closest to expressing the intention of the invalid or unenforceable term or provision (or part thereof), and this
Agreement shall be valid and enforceable as so modified. In the event such court does not exercise the power granted to it in the
prior sentence, the Parties agree to replace such invalid or unenforceable term or provision (or part thereof) with a valid and
enforceable term or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid
or unenforceable term or provision.

 

Section 4.15     No
Duplication; No Double Recovery. Nothing in this Agreement is intended to confer to or impose upon any Party a duplicative
recovery with respect to any matter arising out of the same facts and circumstances (including with respect to any recoveries that
may arise out of ARTICLE IV of the Separation Agreement).

 

Section 4.16     Construction.

 

(a)            For
purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and vice versa; the
masculine gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and neuter
genders; and the neuter gender shall include masculine and feminine genders.

 

(b)            The
Parties agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall
not be applied in the construction or interpretation of this Agreement.

 

    12

     

    

 

(c)            As
used in this Agreement, unless otherwise specified, the words “include” and “including,” and variations
thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.”

 

(d)            As
used in this Agreement, the word “extent” in the phrase “to the extent” shall mean the degree to which
a subject or other thing extends, and such phrase shall not mean simply “if.”

 

(e)            As
used in this Agreement, the terms “or,” “any” or “either” are not exclusive.

 

(f)            Except
as otherwise indicated, all references in this Agreement to “Articles,” “Sections,” “Exhibits”
and “Schedules” are intended to refer to Sections or Articles of this Agreement and Exhibits or Schedules to this Agreement.

 

(g)            As
used in this Agreement, the terms “hereunder,” “hereof,” “hereto,” “herein” and
words of similar import shall be deemed to refer to this Agreement as a whole and not to any particular Section or other provision.

 

(h)            The
headings contained in this Agreement are for convenience of reference only, shall not be deemed to be a part of this Agreement
and shall not be referred to in connection with the construction or interpretation of this Agreement.

 

(i)            Any
payment to be made pursuant hereto shall be made in U.S. dollars and by wire transfer of immediately available funds.

 

(j)            Unless
the context requires otherwise, references in this Agreement to “Remainco” shall also be deemed to refer to the applicable
member of the Remainco Group, references to “Spinco” shall also be deemed to refer to the applicable member of the
Spinco Group and, in connection therewith, any references to actions or omissions to be taken, or refrained from being taken, as
the case may be, by Remainco or Spinco shall be deemed to require Remainco or Spinco, as the case may be, to cause the applicable
members of the Remainco Group or the Spinco Group, respectively, to take, or refrain from taking, any such action. In the event
of any inconsistency or conflict which may arise in the application or interpretation of any of the definitions set forth in Section 1.1,
for the purpose of determining what is and is not included in such definitions, any item explicitly included on a Schedule referred
to in any such definition shall take priority over any provision of the text thereof.

 

[signature page follows]

 

    13

     

    

 

IN WITNESS WHEREOF,
each of the Parties hereto has caused this Real Estate Matters Agreement to be executed on its behalf by its officers thereunto
duly authorized on the day and year first above written.

 

	 	REXNORD CORPORATION
	 	 	 
	 	By:	/s/ Todd A. Adams
	 	Name:	Todd A. Adams
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	LAND NEWCO, INC
	 	 	 
	 	By:	/s/ Todd A. Adams
	 	Name:	Todd A. Adams
	 	Title:	President

 

    1

     

    

 

IN WITNESS WHEREOF,
each of the Parties hereto has caused this Real Estate Matters Agreement to be executed on its behalf by its officers thereunto
duly authorized on the day and year first above written.

 

	 	REGAL BELOIT CORPORATION
	 	 	 
	 	By:	/s/ Louis V. Pinkham
	 	Name:	Louis V. Pinkham
	 	Title:	Chief Executive Officer

 

    2

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