Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
 TAX SHARING
AGREEMENT 
 by and between 

Remainco 
 and 

Spinco 
 Dated as of 

June 8, 2015 

 TABLE OF CONTENTS 

 

					
	 	  	PAGE	 
		
	 Tax Sharing Agreement
	  	 	3	  
		
	 Recitals
	  	 	3	  
		
	 1. Definitional provisions
	  	 	3	  
		
	 2. Sole tax sharing agreement
	  	 	12	  
		
	 3. Preparation and filing of tax returns; payment of taxes
	  	 	13	  
		
	 4. Indemnification for income taxes and other taxes
	  	 	17	  
		
	 5. Spin-off related matters
	  	 	19	  
		
	 6. Tax contests
	  	 	23	  
		
	 7. Apportionment of tax attributes; carrybacks
	  	 	26	  
		
	 8. Cooperation and exchange of information
	  	 	27	  
		
	 9. Resolution of disputes
	  	 	28	  
		
	 10. Payments
	  	 	28	  
		
	 11. Notices
	  	 	29	  
		
	 12. Designation of affiliate
	  	 	29	  
		
	 13. Miscellaneous
	  	 	30	  
		
	 Appendix A
	  	 	33	  

 TAX SHARING AGREEMENT 

This TAX SHARING AGREEMENT (this “Agreement”), dated as of June 8, 2015, is made by and between Babcock &
Wilcox Company, a Delaware corporation (“Remainco”), and Babcock & Wilcox Enterprises, Inc., a Delaware corporation (“Spinco”), a wholly owned subsidiary of Remainco. Remainco and Spinco are sometimes referred to
herein individually as a “Party”, and collectively as the “Parties.” 
 RECITALS 

WHEREAS, the Board of Directors of Remainco has determined that it is appropriate and in the best interest of Remainco and its shareholders to
effect a reorganization and spin-off (the “Separation”) to separate the Spinco Group (as defined below); 
 WHEREAS, Remainco and
Spinco have entered into a Master Separation Agreement (the “Separation Agreement”) providing for the separation of the Spinco Group from the Remainco Group; 

WHEREAS, pursuant to the terms of the Separation Agreement, the Parties will take, or cause to be taken, actions (including the transfer of
Assets and the assumption of Liabilities) necessary to effect the Separation; 
 WHEREAS, for U.S. federal income tax purposes, it is
intended that the transactions necessary to effect the Separation shall qualify as tax-free transactions under Sections 355(a), 368(a)(1)(D) and/or 351 of the Code (as defined below); 

WHEREAS, pursuant to the tax laws of various jurisdictions, the Affiliated Group (as defined below) of which Remainco is the common parent
files certain tax returns on a consolidated, combined, unitary or other group basis; 
 WHEREAS, the Parties hereto wish to provide for the
payment of Income Taxes (as defined below) and Other Taxes (as defined below) and entitlement to refunds thereof, allocate responsibility and provide for cooperation in connection with the filing of returns in respect of Income Taxes and Other
Taxes, and provide for certain other matters relating to Income Taxes and Other Taxes. 
 NOW, THEREFORE, in consideration of the premises
and the representations, covenants and agreements herein contained and intending to be legally bound hereby, Remainco and Spinco hereby agree as follows: 

1. Definitional Provisions.  

(a) Definitions. Capitalized terms used but not otherwise defined herein shall have the respective meanings assigned to them in the
Separation Agreement. For purposes of this Agreement, the following terms shall have the meanings set forth below: 
 “Actually
Realized” or “Actually Realizes” shall mean, for purposes of determining the timing of the incurrence of or reduction in any Spin-Off Tax Liability, Income Tax Liability or Other Tax Liability or the realization of a Refund
(or any related Income Tax or Other Tax cost or benefit), whether by receipt or as a credit or other offset to Taxes payable, by a Person in respect of any payment, transaction, occurrence or event, the time at which the amount of Income Taxes or
Other Taxes paid by such Person is increased above (or reduced below) the amount of Income Taxes or Other Taxes that such Person would have been required to pay but for such payment, transaction, occurrence or event, or in the case of a Refund the
time at which the Refund is actually received. 

  
 3 

 “Affiliated Group” shall mean an affiliated group of corporations within the
meaning of Code Section 1504(a). 
 “Business Day” shall mean any day other than a Saturday, a Sunday or a day on
which banking institutions located in the state of New York are authorized or obligated by law or executive order to close. 

“Carryback” shall mean the carryback of a Tax Attribute (including a net operating loss, a net capital loss or a tax credit)
from a Post-Distribution Taxable Period to a Pre-Distribution Taxable Period. 
 “Code” shall mean the Internal Revenue
Code of 1986. 
 “Combined Return” shall mean a consolidated, combined or unitary Income Tax Return or Other Tax Return
that actually includes, by election or otherwise, one or more members of the Remainco Group and one or more members of the Spinco Group. 

“Distribution Date” shall mean the date on which the External Spin-Off is completed. 

“Distribution-Related Proceeding” shall mean any Proceeding in which the IRS, another Tax Authority or any other party
asserts a position that could reasonably be expected to adversely affect the Tax-Free Status of any of the Spin-Off-Related Transactions. 

“Equity Securities” shall mean any stock or other securities treated as equity for tax purposes, options, warrants, rights,
convertible debt, or any other instrument or security that affords any Person the right, whether conditional or otherwise, to acquire stock or to be paid an amount determined by reference to the value of stock. 

“External Spin-Off” shall mean the distribution of Spinco stock by Remainco to its shareholders. 

“Fifty-Percent or Greater Interest” shall have the meaning ascribed to such term for purposes of Sections 355(d) and
(e) of the Code. 

  
 4 

 “Final Determination” (and the correlative term, “Finally
Determined”) shall mean the final resolution of liability for any Income Tax or Other Tax, which resolution may be for a specific issue or adjustment or for a taxable period, (a) by IRS Form 870, 870-PT or 870-AD (or any successor
forms thereto), on the date of acceptance by or on behalf of the taxpayer, or by a comparable form under the laws of a state, local, or foreign taxing jurisdiction, except that a Form 870, 870-PT or 870-AD or comparable form shall not constitute a
Final Determination to the extent that it reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for Refund or the right of the Tax Authority to assert a further deficiency in respect of such issue or
adjustment or for such taxable period (as the case may be); (b) by a decision, judgment, decree, or other order by a court of competent jurisdiction, which has become final and nonappealable; (c) by a closing agreement or accepted offer in
compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under the laws of a state, local, or foreign taxing jurisdiction; (d) by any allowance of a Refund or credit in respect of an overpayment of Income Tax or Other Tax,
but only after the expiration of all periods during which such Refund may be recovered (including by way of offset) by the jurisdiction imposing such Income Tax or Other Tax; or (e) by any other final disposition, including by reason of the
expiration of the applicable statute of limitations or by mutual agreement of the parties. 
 “Identifiable Cause” shall
mean a breach of the representations in Section 5(a) or occurrence of any of the events or actions described in the covenants in Section 5(b), in each case read as applying to both Remainco and Spinco, that results in the Spin-Off-Related
Transactions failing to qualify for Tax-Free Status; or similar actions that resulted in the incurrence of Prior Spin-Off Tax Liabilities. 

Income Tax” (a) shall mean (i) any federal, state, local or foreign tax, charge, fee, impost, levy or other assessment
that is based upon, measured by, or calculated with respect to (A) net income or profits (including, but not limited to, any capital gains, gross receipts, or minimum tax, and any tax on items of tax preference, but not including sales, use,
value added, real property gains, real or personal property, transfer or similar taxes), (B) multiple bases (including, but not limited to, corporate franchise, doing business or occupation taxes), if one or more of the bases upon which such
tax may be based, by which it may be measured, or with respect to which it may be calculated is described in clause (a)(i)(A) of this definition, or (C) any net worth, franchise or similar tax, in each case together with (ii) any interest
and any penalties, fines, additions to tax or additional amounts imposed by any Tax Authority with respect thereto and (b) shall include any transferee, successor or joint or several liability imposed by law or contract in respect of any amount
described in clause (a) of this definition. 

  
 5 

 “Income Tax Benefit” shall mean, with respect to the effect of any Carryback on
the Income Tax Liability of a Filing Party or the Filing Party’s Group for any taxable period, the excess of (a) the hypothetical Income Tax Liability of Filing Party or the Filing Party’s Group for such taxable period, calculated as
if such Carryback had not been utilized but with all other facts unchanged over (b) the actual Income Tax Liability of the Filing Party or the Filing Party’s Group for such taxable period, calculated taking into account such Carryback (and
treating a Refund as a negative Income Tax Liability, for purposes of such calculation). 
 “Income Tax Liabilities” shall
mean all liabilities for Income Taxes. 
 “Income Tax Return” shall mean any return, report, filing, statement,
questionnaire, declaration or other document required to be filed with a Tax Authority in respect of Income Taxes. 
 “Indemnified
Party” shall mean any Person seeking indemnification pursuant to the provisions of this Agreement. 
 “Indemnifying
Party” shall mean any party hereto from which any Indemnified Party is seeking indemnification pursuant to the provisions of this Agreement. 

“Internal Spin-Off” shall mean a distribution of the stock of one member of the Remainco Group (including, for this purpose,
the Spinco Group) by another member prior to the External Distribution in order to effect the Separation. 
 “IRS” shall
mean the Internal Revenue Service of the United States. 
 “Losses” shall mean any and all losses, liabilities, claims,
damages, obligations, payments, costs and expenses, matured or unmatured, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, known or unknown (including the costs and expenses of any and all actions, threatened actions,
demands, assessments, judgments, settlements and compromises relating thereto and attorneys’ fees and any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any such actions or threatened actions).

 “Other Tax Liabilities” shall mean all liabilities for Other Taxes. 

“Other Tax Return” shall mean any return, report, filing, statement, questionnaire, declaration or other document required to
be filed with a Tax Authority in respect of Other Taxes. 
 “Other Taxes” shall mean all Taxes other than Income Taxes,
whenever created or imposed, and whether of the United States of America or elsewhere, and whether imposed by a local, municipal, governmental, state, federation or other body, and without limiting 

  
 6 

 
the generality of the foregoing, shall include superfund, sales, use, ad valorem, value added, occupancy, transfer, recording, withholding, payroll, employment, excise, occupation, premium or
property taxes (in each case, together with any related interest, penalties and additions to tax, or additional amounts imposed by any Tax Authority thereon). 

“Payroll Taxes” shall mean any Taxes imposed by any Tax Authority on an employer in connection with the payment or provision
of salaries or benefits and other remuneration to employees or directors, including income tax withholding, social security, unemployment taxes, and premiums for workers’ compensation. 

“Permitted Transaction” shall mean any transaction that satisfies the requirements of Section 5(c). 

“Person” shall mean any individual, partnership, joint venture, limited liability company, corporation, association, joint
stock company, trust, unincorporated organization or similar entity or a governmental authority or any department or agency or other unit thereof. 

“Post-Distribution Taxable Period” shall mean a taxable period that begins after the Distribution Date. 

“Pre-Distribution Taxable Period” shall mean a taxable period that ends on or before or that includes the Distribution
Date. For the avoidance of doubt, a Pre-Distribution Taxable Period includes a Straddle Period.  
 “Prior Spin-Off Tax
Liabilities” shall mean any Income Tax Liabilities of Remainco or its affiliates attributable to the failure of the spin-off of The Babcock & Wilcox Company by McDermott International, Inc. in 2010, and the related transactions
undertaken in connection therewith, to quality as tax-free transactions. 
 “Proceeding” shall mean any audit or other
examination, or judicial or administrative proceeding relating to liability for, or Refunds or adjustments with respect to, Income Taxes or Other Taxes. 

“Refund” shall mean any refund of Income Taxes or Other Taxes, including any reduction in Income Tax Liabilities or Other Tax
Liabilities by means of a credit, offset or otherwise. 
 “Remainco” shall have the meaning set forth in the first
paragraph of this Agreement. 
 “Remainco Adjustment” shall mean an adjustment of any item of income, gain, loss,
deduction, credit or other Tax item attributable to any member of the Remainco Group (including, in the case of any state or local consolidated, combined or unitary income or franchise taxes, a change in one or more apportionment factors of members
of the Remainco Group) pursuant to a Final Determination for a Pre-Distribution Taxable Period. 

  
 7 

 “Remainco Business” shall mean each trade or business that is actively conducted
(within the meaning of Section 355(b) of the Code) by Remainco or any other member of the Remainco Group immediately after the Spin-Off and that is relied upon in the Tax Opinion Documents to satisfy the requirements of Section 355(b) with
respect to the Spin-Offs. 
 “Remainco Consolidated Group” shall mean the affiliated group of corporations (within the
meaning of Section 1504(a) of the Code) of which Remainco is the common parent (and any predecessor or successor to such affiliated group). 

“Remainco Employee” shall mean, with respect to any particular Payroll Tax Return of any member of the Remainco Group and the
Payroll Taxes required to be withheld or paid in connection with such Return, an employee who is required to be included in such Payroll Tax Return. 

“Remainco Group” shall mean (a) Remainco and each Person that is a direct or indirect Subsidiary of Remainco (including
any Subsidiary of Remainco that is disregarded for U.S. federal Income Tax purposes (or for purposes of any state, local, or foreign tax law)) immediately after the External Spin-Off, (b) any corporation (or other Person) that shall have merged
or liquidated into Remainco or any such Subsidiary and (c) any predecessor or successor to any Person otherwise described in this definition. 

“Remainco Separate Return” shall mean any Income Tax Return or Other Tax Return required to be filed by any member of the
Remainco Group (including any consolidated, combined or unitary return) that does not include any member of the Spinco Group. 

“Representative” shall mean with respect to a Person, such Person’s officers, directors, employees and other authorized
agents. 
 “Restriction Period” shall mean the period beginning on the Distribution Date and ending on the day after the
second anniversary of the Distribution Date. 
 “Separation Agreement” shall have the meaning set forth in the recitals to
this Agreement. 
 “Spinco” shall have the meaning set forth in the recitals to this Agreement. 

“Spinco Adjustment” shall mean an adjustment of any item of income, gain, loss, deduction, credit or other Tax item
attributable to any member of the Spinco Group (including, in the case of any state or local consolidated, combined or unitary income or franchise taxes, a change in one or more apportionment factors of members of the Spinco Group) pursuant to a
Final Determination for a Pre-Distribution Taxable Period. 

  
 8 

 “Spinco Business” shall mean each trade or business that is actively conducted
(within the meaning of Section 355(b) of the Code) by Spinco or any other member of the Spinco Group immediately after the Spin-Off and that is relied upon in the Tax Opinion Documents to satisfy the requirements of Section 355(b) with
respect to the Spin-offs. 
 “Spinco Consolidated Group” shall mean the affiliated group of corporations (within the
meaning of Section 1504(a) of the Code) of which Spinco is the common parent, determined immediately after the Spin-Off (and any predecessor or successor to such affiliated group other than the Remainco Consolidated Group). 

“Spinco Employee” shall mean, with respect to any particular Payroll Tax Return of any member of the Spinco Group and the
Payroll Taxes required to be withheld or paid in connection with such Return, an employee who is required to be included in such Payroll Tax Return. 

“Spinco Group” shall mean (a) Spinco and each Person that is a direct or indirect Subsidiary of Spinco (including any
subsidiary that is disregarded for U.S. federal Income Tax purposes (or for purposes of any state, local, or foreign tax law)) immediately after the Spin-Offs, (b) any corporation (or other Person) that shall have merged or liquidated into
Spinco or any such Subsidiary and (c) any predecessor or successor to any Person otherwise described in this definition. 

“Spinco Separate Return” shall mean any Income Tax Return or Other Tax Return required to be filed by any member of the
Spinco Group (including any consolidated, combined or unitary return) that does not include any member of the Remainco Group, including any U.S. consolidated federal Income Tax Returns of the Spinco Consolidated Group required to be filed with
respect to a Post-Distribution Taxable Period. 
 “Spin-Offs” shall mean the External and Internal Spin-offs. 

“Spin-Off-Related Losses” shall mean: 

(a) the Spin-Off Tax Liabilities, 

(b) all accounting, legal and other professional fees, and court costs incurred in connection with such Spin-Off Tax Liabilities, and 

(c) all costs, expenses, damages and other Losses associated with stockholder litigation or controversies and any amount payable by Remainco
or Spinco or their respective Affiliates in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Tax Authority in each case, resulting from the failure of any of the Spin-Off-Related Transactions to
qualify for Tax-Free Status. 

  
 9 

 “Spin-Off-Related Transactions” shall mean the Spin-Offs and other transactions
carried out to effect the Separation that are intended to have Tax Free status. 
 “Spin-Off Tax Liabilities” shall mean,
with respect to any Taxing Jurisdiction, the sum of (a) any increase in Income Tax Liability or Other Tax Liability (or reduction in a Refund) incurred as a result of any corporate-level gain or income recognized with respect to the failure of
any of the Spin-Off-Related Transactions to qualify for Tax-Free Status under the Income Tax laws of such Taxing Jurisdiction pursuant to any Final Determination, (b) interest on such amounts imposed with respect to such Tax Liability, and
(c) any penalties actually paid to such Taxing Jurisdiction that would not have been paid but for the failure of any of the Spin-Off-Related Transactions to qualify for Tax-Free Status in such Taxing Jurisdiction. 

“Straddle Period” shall mean any taxable period that begins on or before and ends after the Distribution Date. 

“Tax” shall mean all Income Taxes and Other Taxes. 

“Tax Attribute” shall mean a net operating loss, net capital loss, overall domestic loss, overall foreign loss, investment
credit, minimum tax credit, general business credit, foreign tax credit, excess charitable contribution or other similar item under U.S. federal Income Tax laws or comparable provisions of foreign, state or local tax law. 

“Tax Authority” shall mean a governmental authority (foreign or domestic) or any subdivision, agency, commission or authority
thereof or any quasi-governmental or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax (including the IRS). 

“Tax Benefit” shall have the meaning set forth in Section 4(d) of this Agreement. 

“Tax Counsel” shall mean tax counsel of recognized national standing that is acceptable to Remainco. 

“Tax Dispute” shall have the meaning set forth in Section 10 of this Agreement. 

“Tax Dispute Arbitrator” shall have the meaning set forth in Section 10 of this Agreement. 

  
 10 

 “Tax-Free Status” shall mean the qualification of each of the Spin-Off-Related
Transactions as a transaction in which Remainco, the other members of the Remainco Group, Spinco, and the other members of the Spinco Group recognize no income or gain other than intercompany items taken into account pursuant to the Treasury
Regulations promulgated pursuant to Section 1502 of the Code. 
 “Tax Opinion” shall mean the tax opinion issued by
Tax Counsel in connection with the Spin-Off-Related Transactions. 
 “Tax Opinion Documents” shall mean the Tax Opinion and
the information and representations provided by, or on behalf of, Remainco or Spinco to Tax Counsel in connection therewith. 
 “Tax
Returns” shall mean all Income Tax Returns and Other Tax Returns. 
 “Taxing Jurisdiction” shall mean the United
States and every other government or governmental unit having jurisdiction to tax Remainco or Spinco or any of their respective Affiliates. 

“Underpayment Rate” shall mean the annual rate of interest described in Section 6621(c) of the Code for large corporate
underpayments of Income Tax (or similar provision of state, local or foreign Income Tax law, as applicable), as determined from time to time. 

“Unqualified Tax Opinion” shall mean an unqualified opinion of Tax Counsel on which Remainco may rely to the effect that a
transaction will not disqualify any of the Spin-Off-Related Transactions from Tax-Free Status, assuming that the Spin-Off-Related Transactions would have qualified for Tax-Free Status if such transaction did not occur. 

(b) Interpretation. In this Agreement, unless the context clearly indicates otherwise: 

(i) words used in the singular include the plural and words used in the plural include the singular; 

(ii) references to any Person include such Person’s successors and assigns but, if applicable, only if such successors and
assigns are permitted by this Agreement, and a reference to such Person’s “Affiliates” or “Subsidiaries” shall be deemed to mean such Person’s Subsidiaries following the Distribution; 

(iii) any reference to any gender includes the other gender and the neuter; 

(iv) the words “include,” “includes” and “including” shall be deemed to be followed by the words
“without limitation”; 
 (v) the words “shall” and “will” are used interchangeably and have the
same meaning; 
 (vi) the word “or” shall have the inclusive meaning represented by the phrase “and/or”;

  
 11 

 (vii) any reference to any Section means such Section of this Agreement, and
references in any Section or definition to any clause mean such clause of such Section or definition; 
 (viii) the words
“herein,” “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision of this Agreement; 

(ix) any reference to any agreement, instrument or other document means such agreement, instrument or other document as
amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement; 

(x) any reference to any law (including statutes and ordinances) means such law (including all rules and regulations
promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability; 

(xi) relative to the determination of any period of time, “from” means “from and including,” “to”
means “to but excluding” and “through” means “through and including”; 
 (xii) if there is any
conflict between the provisions of the Separation and Distribution Agreement and this Agreement, the provisions of this Agreement shall control with respect to the subject matter hereof; 

(xiii) the headings of Sections contained in this Agreement have been inserted for convenience of reference only and shall not
be deemed to be a part of or to affect the meaning or interpretation of this Agreement; 
 (xiv) any portion of this
Agreement obligating a party to take any action or refrain from taking any action, as the case may be, shall mean that such party shall also be obligated to cause its relevant Subsidiaries to take such action or refrain from taking such action, as
the case may be; and 
 (xv) the language of this Agreement shall be deemed to be the language the parties hereto have chosen
to express their mutual intent, and no rule of strict construction shall be applied against any party. 
 2. Sole Tax Sharing
Agreement.  
 This Agreement shall constitute the entire agreement between Remainco and Spinco and their respective Affiliates
(including direct or indirect corporate Subsidiaries, controlled partnerships, and controlled limited liability companies) with respect to the subject matters herein. Further, for the avoidance of doubt, this Agreement shall control with respect to
any matters set forth herein, including but not limited to preparing and filing Tax Returns (including any amended returns), making any Tax elections, and the control and resolution of disputes with respect to Tax Returns. 

  
 12 

 3. Preparation and Filing of Tax Returns; Payment of Taxes.  

(a) Filing of Tax Returns and Payment of Taxes.  

(i) Remainco Combined Income Tax Returns. Remainco shall prepare and file or cause to be prepared and filed all Combined
Returns for Income Taxes and shall pay all Income Taxes due with respect to such Income Tax Returns for which Remainco or a member of the Remainco Group is the taxpayer or Tax filer of record. Spinco shall pay to Remainco an amount of the Tax shown
as payable on such Tax Return based on the relative contributions of members of the Spinco Group to the items of income, loss, credits, and other specific items included in such Tax Return, calculated in accordance with the principles and methods
set forth in Appendix A. On the Distribution Date, Spinco shall be deemed to have paid to Remainco an agreed-upon estimated amount of the Income Taxes that will be payable pursuant to the preceding sentence, calculated in accordance with the
historical Tax accounting and allocations methods used by Remainco and the members of its group. Upon the later of (x) 10 Business Days after the filing of the applicable Income Tax Return with respect to Income Taxes pursuant to this
Section 3(b)(i), or (y) five Business Days after Remainco provides written notice setting forth the computation of such Income Taxes and Spinco’s allocable share thereof, Spinco shall pay to Remainco any such Income Taxes in excess of
the estimated payment previously deemed paid by Spinco or, if the estimated Income Taxes deemed paid by Spinco exceed the amount otherwise payable (including if the amount of Tax shown on such Tax Return is negative; i.e., a Refund is due), Remainco
shall refund such excess to Spinco. 
 (ii) Spinco Combined Income Tax Returns. Spinco shall prepare and file or cause
to be prepared and filed all Combined Returns for Income Taxes and shall pay all Income Taxes due with respect to such Income Tax Returns for which Spinco is or a member of the Spinco Group the taxpayer or Tax filer of record. Remainco shall pay to
Spinco an amount of the Tax shown as payable on such Tax Return based on the relative contributions of members of the Remainco Group to the items of income, loss, credits, and other specific items included in such Tax Return, calculated in
accordance with the principles and methods set forth in Appendix A. On the Distribution Date, Remainco shall be deemed to have paid to Spinco an agreed-upon estimated amount of the Income Taxes that will be be payable pursuant to the preceding
sentence, calculated in accordance with the historical Tax accounting and allocations methods used by Spinco and the members of its group. Upon the later of (x) 10 Business Days after the filing of the applicable Income Tax Return with

  
 13 

 
respect to Income Taxes pursuant to this Section 3(b)(i), or (y) five Business Days after Spinco provides written notice setting forth the computation of such Income Taxes and
Remainco’s allocable share thereof, Remainco shall pay to Spinco any such Income Taxes in excess of the estimated payment previously deemed paid by Remainco or, if the estimated Income Taxes deemed paid by Remainco exceed the amount otherwise
payable (including if the amount of Income Tax shown on such Tax Return is negative; i.e., a Refund is due), Spinco shall refund such excess to Remainco. 

(iii) Other Tax Returns that are Combined Returns. Remainco shall prepare and file or cause to be prepared and filed all
Other Tax Returns that are Combined Returns for which Remainco or a member of the Remainco Group is the taxpayer or Tax filer of record, and Spinco shall prepare and file or cause to be prepared and filed all Other Tax Returns that are Combined
Returns for which Spinco or a member of the Spinco Group is the taxpayer or Tax filer of record. The Party (Remainco or Spinco) that is responsible for filing the Combined Return (the “Filing Party”) shall pay all Taxes due with respect to
such Tax Returns. With respect to each such Combined Return the Party (Remainco or Spinco) that is not the Filing Party but one or more members of whose Group is included in such Tax Return (the “Non-filing Party”) shall pay to the Filing
Party an amount equal to the amount of Tax that would have been payable by the members of Non-filing Party’s Group included in such Combined Return if they had been the only entities included in such Combined Return. On the Distribution Date,
the Non-filing Party shall be deemed to have have paid to the Filing Party an estimated amount of the Taxes payable pursuant to the preceding sentence. Upon the later of (x) 10 Business Days after the filing of the applicable Tax Return with
respect to which such Taxes are due, or (y) five Business Days after the Filing Party provides written notice setting forth the computation of such Taxes, the Non-filing Party shall pay to the Filing Party any such Taxes in excess of the
estimated payment previously deemed paid by the Non-filing Party or, if the estimated Taxes paid by the Non-filing Party exceed the amount otherwise payable (including if the Tax shown on such Combined Return is negative; i.e., a Refund is due) ,
the Filing Party shall refund such excess. 
 (iv) Payroll Taxes. Remainco and Spinco each shall pay or cause to be
paid any Payroll Taxes with respect to Remainco Employees or Spinco Employees, respectively, and shall be responsible for filing any Tax Returns due with respect to such Payroll Taxes. 

(v) Remainco Separate Returns. Remainco shall prepare and file or cause to be prepared and filed all Remainco Separate
Returns and shall pay, or cause to be paid, and shall be responsible for, any and all Income Taxes or Other Taxes due or required to be paid with respect to any Remainco Separate Return for both Pre-Distribution Taxable Periods and Post-Distribution
Taxable Periods 

  
 14 

 (vi) Spinco Separate Returns. Spinco shall prepare and file or cause to be
prepared and filed all Spinco Separate Returns and shall pay, or cause to be paid, and shall be responsible for, any and all Income Taxes or Other Taxes due or required to be paid with respect to any Spinco Separate Return for both Pre-Distribution
Taxable Periods and Post-Distribution Taxable Periods. 
 (vii) Transfer Taxes. Remainco and Spinco jointly and
equally shall be responsible for, and shall indemnify the other Party against, all transfer, documentary, sales, use, registration and similar Taxes and related fees incurred as a result of the Spin-Offs Related Transaction. The Party with the legal
obligation therefor shall timely prepare and file all Tax Returns as may be required in connection with the payment of such Taxes. 

(viii) Amended Returns. Only the Filing Party for any Tax Return, or a member of its Group, shall be entitled to file
any Amended Tax Returns with respect to such Tax Return. If any Tax items of a Non-filing Party or its Group that were included in a Combined Tax Return filed by the Filing Party should change, the Filing Party shall file an Amended Tax Return to
reflect such change upon approving the request of the Non-filing Party, which approval will not be unreasonably withheld. In the event that an amended Tax Return results in a Refund of Taxes the Party entitled to such Refund shall be the Party that
would be entitled to such Refund under Section 3(c)(i) if such Refund had been attributable to a Final Determination, and if such amended Tax Return results in the payment of additional Taxes, such Taxes shall be the responsibility of the Party
that would be responsible for such Taxes under Section 3(c)(i) if such Taxes had been attributable to a Remainco Adjustment or a Spinco Adjustment, as the case may be. 

(ix) Timing of Payments. Except as otherwise specifically set forth in this Agreement, all payments required to be made
by one Party to another Party pursuant to this Section 3 shall be made no later than five days prior to the date such Taxes are due to the relevant Tax Authority or, in the case of any amended Tax Return, within five days after any Taxes or
Refund attributable to such Tax Return are Actually Realized. 
 (b) Preparation of Tax Returns.  

(i) In the absence of a controlling change in law, or except as otherwise set forth in this Agreement, all Combined Tax Returns
filed after the date of this Agreement shall be prepared on a basis consistent with the elections, accounting methods, conventions and principles of taxation used for the most recent taxable periods for which such Tax Returns and accruals involving
similar items have been filed. Except as otherwise provided in this Agreement, all decisions relating to the preparation of such Tax Returns shall be made in the sole discretion of the Filing Party; provided, however, that the Non-filing
Party shall have the right to review and comment on such Tax Returns prior to the filing thereof. 

  
 15 

 (ii) The Filing Party for a Straddle Period Combined Return shall determine the
items of income, gain, deduction, loss and credit of each member of the Non-filing Party’s Group that must be included in such Combined Return by closing the books of such members of the Non-filing Party’s Group at the Distribution Date.

 (iii) The Non-filing Party shall, and shall cause each other member of its Group that is included in such Combined Return
to, prepare and submit at the Filing Party’s request (and in no event later than 60 days after such request), at its own expense, all information that the Filing Party shall reasonably request, in such form as the Filing Party shall reasonably
request, to enable the Filing Party to prepare any Combined Income Tax Return or Other Tax Return required to be filed pursuant to this Agreement. The Filing Party shall make any such Tax Return and related workpapers available for review by the
Non-filing Party to the extent such Tax Return relates to Taxes for which any member of the Non-filing Party’s Group would reasonably be expected to be liable. 

(iv) Except as required by applicable law or as a result of a Final Determination, neither Remainco nor Spinco shall (nor shall
either cause or permit any other members of the Remainco Group or Spinco Group, respectively, to) take any position that is either inconsistent with the treatment of the Spin-Off-Related Transactions as having Tax-Free Status (or analogous status
under state, local or foreign law) or with respect to a specific item of income, deduction, gain, loss or credit on an Income Tax Return or Other Tax Return, treat such specific item in a manner which is inconsistent with the manner such specific
item is reported on an Income Tax Return or Other Tax Return prepared or filed by either Party pursuant to Section 3(b) hereof (including the claiming of a deduction previously claimed on any such Income Tax Return or Other Tax Return). 

(c) Tax Adjustments due to a Final Determination.  

(i) Combined Returns Tax Adjustment-Allocations. If one or more Remainco Adjustments and/or Spinco Adjustments are made
to a Combined Return, the adjustments shall be reflected in the Tax items taken into account in accordance with the principles and methods set forth in Appendix A to determine the adjusted allocation of Tax (or Tax Benefit) among the members of the
Groups. 
 (ii) Payroll Taxes. In the event of any Final Determination that increases the Payroll Taxes payable by any
member of the Remainco Group or the Spinco Group for any Pre-Distribution Taxable Period, such Payroll Taxes shall be the responsibility of (A) Remainco if such Payroll Taxes are with respect to a Remainco Employee, or (B) Spinco if such
Payroll Taxes are with respect to a Spinco Employee. 

  
 16 

 4. Indemnification for Income Taxes and Other Taxes. 

(a) Indemnification by Remainco. From and after the Distribution Date, Remainco and each other member of the Remainco Group shall
jointly and severally indemnify, defend and hold harmless Spinco and each other member of the Spinco Group and each of their respective Representatives from and against (i) all Income Tax Liabilities and Other Tax Liabilities that Remainco or
any other member of the Remainco Group is responsible for pursuant to Section 3 and that are not otherwise described in this Section 4(a) or in Section 4(b), (ii) 50% of all Prior Spin-off Tax Liabilities, unless due to
Identifiable Cause by either Spinco or Remainco, in which case 100% of such Prior Spin-off Tax Liabilities shall be payable by the Party that caused such Liability; (iii) 60% of all Spin-Off-Related Losses that are not due to Identifiable
Cause; and (iv) all Spin-Off Related Losses that are not described in Section 4(a) (iii) or 4(b)(iii). 
 (b)
Indemnification by Spinco. From and after the Distribution Date, Spinco and each other member of the Spinco Group shall jointly and severally indemnify, defend and hold harmless Remainco and each other member of the Remainco Group and each of
their respective Representatives from and against (i) all Income Tax Liabilities and Other Tax Liabilities that Spinco or any other member of the Spinco Group is responsible for under Section 3, (ii) 50% of all Prior Spin-off Tax
Liabilities, unless due to Identifiable Cause by Remainco or Spinco, in which case 100% of such Prior Spin-off Tax Liabilities shall be payable by the Party that caused such Liability; (iii) 40% of all Spin-Off-Related Losses that are not due
to Identifiable Cause; and (iv) all Spin-Off-Related Losses for which Spinco is responsible under Section 5. 
 (c) Timing of
Indemnification Payments. Any payment with respect to any indemnification obligation pursuant to this Section 4 shall be made by the Indemnifying Party promptly, but, in any event, no later than: 

(i) in the case of an indemnification obligation with respect to any Income Tax Liabilities or Other Tax Liabilities, the later
of (A) five Business Days after the Indemnified Party notifies the Indemnifying Party and (B) five Business Days prior to the date the Indemnified Party is required to make a payment of taxes, interest, or penalties to the applicable Tax
Authority (including a payment with respect to an assessment of a tax deficiency by any Taxing Jurisdiction or a payment made in settlement of an asserted tax deficiency) or realizes a reduced Refund; and 

(ii) in the case of any payment or indemnification of any Losses not described in Section 4(c)(i) (including, but not
limited to, any Losses described in the definition of Spin-Off-Related Losses), the later of (A) five Business Days after the Indemnified Party notifies the Indemnifying Party and (B) five Business Days prior to the date the Indemnified
Party makes a payment thereof. 

  
 17 

 (d) Tax Benefits. 

(i) Indemnified Tax Adjustments. If an adjustment or resulting indemnification obligation under Section 4 results in increased
deductions, losses, or credits, or decreases in income, gains or recapture of Tax credits (“Tax Benefits”) to any member of the Indemnified Party’s Group which would not be allowable but for the indemnification obligation (or the
adjustment giving rise to such indemnification obligation); then the Indemnified Party shall pay the Indemnifying Party the amount by which such Tax Benefit actually reduces, in cash, the amount of Tax that the Indemnified Party or any other member
of its Group would have been required to pay (or increases, in cash, the amount of a Refund to which the Indemnified Party or any other member of the its Group would have been entitled) but for such indemnification obligation (or adjustment giving
rise to such indemnification obligation), in accordance with Appendix A. The Indemnified Party shall pay the Indemnifying Party for such Tax Benefit no later than five Business Days after such Tax Benefit is Actually Realized. 

(ii) Other Tax Adjustments — Pre-distribution Taxable Periods. If an adjustment resulting in increased Tax liability to one Party
also results in a corresponding adjustment resulting in a Tax Benefit to the other Party, which would not be allowable but for such adjustment, then the Party realizing the Tax Benefit shall pay the other Party the amount by which such Tax Benefit
actually reduces, in cash, the amount of Tax that such Party would have been required to pay (or increases, in cash, the amount of a Refund which such Party or any member of its Group would have been entitled) but for such Tax Benefit
(provided that the amount of such Tax Benefit payable under this section 4(d)(ii) shall not exceed the amount of the increased Tax liability of the other Party); in accordance with Appendix A. The Party realizing the Tax Benefit shall pay the
other Party for such Tax Benefit no later than five Business Days after such Tax Benefit is Actually Realized. 
 (iii) Employee
Compensation — Post-distribution Taxable Periods. With respect to the Remainco Equity Compensation Awards and Spinco Equity Compensation Awards (each as defined in the Employee Matters Agreement) held by Remainco Employees, Remainco or the
appropriate member of the Remainco Group shall claim any federal, state and/or local tax deductions after the Distribution Date, and no member of the Spinco Group shall claim any such deductions. With respect to the Remainco Equity Compensation
Awards and Spinco Equity Compensation Awards held by Spinco Employees, Spinco or the 

  
 18 

 
appropriate member of the Spinco Group shall claim any federal, state and/or local tax deductions after the Distribution Date, and no member of the Remainco Group shall claim any such deductions.
If either Remainco or Spinco determines in its reasonable judgment that there is a substantial likelihhod that a tax deduction that was assigned to the Remainco Group or the Spinco Group pursuant to this Section 4(d)(iii) will instead be
available only to the other party (whether as a result of a determination by the Internal Revenue Service or another tax authority, a change in the Code or the regulations or guidance thereunder, or otherwise), it shall notify the other party and
both parties will negotiate in good faith to resolve the issue in accordance with the following principle: the party entitled to the deduction shall pay to the other party an amount that places the other party in a financial position equivalent to
the financial position the party would have been in had the party received the deduction as intended under this Section 4(d)(iii). Such amount shall be paid within 5 days after filing the last tax return necessary to make the determination
described in the preceding sentence. 
 5. Spin-Off Related Matters.  

(a) Representations.  

(i) Tax Opinion Documents. Remainco and Spinco each hereby represents and warrants to the other that it has examined the
Tax Opinion Documents (including the representations to the extent that they relate to the plans, proposals, intentions, and policies of itself, its Subsidiaries, its Business, or its Group), and to the extent in reference to itself, its
Subsidiaries, its Business, or its Group, the facts presented and the representations made therein are true, correct and complete. 

(ii) Tax-Free Status. Remainco and Spinco each hereby represents and warrants to the other that neither itself nor any
other member of its Group has a plan or intention to take any action, or fail to take any action, or knows of any circumstance, that could reasonably be expected to (A) cause any of the Spin-Off-Related Transactions not to have Tax-Free Status
or (B) cause any representation or factual statement made in this Agreement, the Separation and Distribution Agreement or the Tax Opinion Documents to be untrue in a manner that would have an adverse effect on the Tax-Free Status of any of the
Spin-Off-Related Transactions. 
 (iii) Plan or Series of Related Transactions. Spinco hereby represents and warrants
that, to the best knowledge of Spinco, none of the Spin-Off-Related Transactions are part of a plan (or series of related transactions) pursuant to which a Person will acquire stock representing a Fifty-Percent or Greater Interest in Spinco or any
successor to Spinco. 

  
 19 

 (b) Covenants. 

(i) Actions Consistent with Representations and Covenants. Neither Remainco nor Spinco shall take any action or permit
any other member of the Remainco Group or the Spinco Group, respectively, to take any action, or shall fail to take any action or permit any other member of the Remainco Group or the Spinco Group, respectively, to fail to take any action, where such
action or failure to act would be inconsistent with or cause to be untrue any material information, covenant or representation in this Agreement, the Master Separation Agreement or the Tax Opinion Documents. 

(ii) Preservation of Tax-Free Status. Spinco shall not take any action (including any cessation, transfer or disposition
of all or any portion of any Spinco Business, payment of extraordinary dividends, acquisitions or issuances of stock or entering into any agreement, understanding, arrangement or substantial negotiations regarding any such actions) or permit any
other member of the Spinco Group to take any such action, or fail to take any such action or permit any other member of the Spinco Group to fail to take any such action, in each case, unless such action or failure to act would not cause any
of the Spin-Off-Related Transactions to fail to have Tax-Free Status or could not require Remainco or Spinco to reflect a liability or reserve with respect to any of the Spin-Off-Related Transactions in its financial statements 

(iii) Spinco Business Continuation. Until the first day after the Restriction Period, none of Spinco or any member of
the Spinco Group shall engage in any transaction (including any cessation, transfer or disposition of all or any portion of any Spinco Business) that would result in Spinco or its “separate affiliated group” (within the meaning of
Section 355(b) of the Code) ceasing to be engaged in any Spinco Business for purposes of Section 355(b). 
 (iv)
Sales, Issuances and Redemptions of Equity Securities. Until the first day after the Restriction Period, none of Spinco or any other member of the Spinco Group shall, or shall agree to, sell or otherwise issue to any Person, or redeem or
otherwise acquire from any Person, any Equity Securities of Spinco or any other member of the Spinco Group; provided, however, that Spinco may issue such Equity Securities to the extent such issuances satisfy Safe Harbor VIII (relating to
acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d). 

(v) Tender Offer; Other Business Transactions. Until the first day after the Restriction Period, none of Spinco or any
other member of the Spinco Group shall (A) solicit any Person to make a tender offer for, or otherwise acquire or sell, the Equity Securities of Spinco, (B) participate in or support any unsolicited tender offer for, or other acquisition,
issuance or disposition of, the Equity Securities of Spinco or (C) approve or otherwise permit any proposed business combination or any transaction which, in the case of clauses (A) or (B), individually or in the aggregate, together with
any transaction 

  
 20 

 
occurring within the four-year period beginning on the date which is two years before the Distribution Date and any other transaction which is part of a plan or series of related transactions
(within the meaning of Section 355(e) of the Code) that includes the Spin-Off, could result in one or more Persons acquiring (except for acquisitions that otherwise satisfy Safe Harbor VIII (relating to acquisitions in connection with a
person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d)) directly or indirectly stock representing a 40% or greater interest, by vote or
value, in Spinco (or any successor thereto). 
 (vi) Dispositions of Assets. Until the first day after the Restriction
Period none of Spinco or any other member of the Spinco Group shall sell, transfer or dispose of, or agree to sell, transfer or dispose of, more than 50 percent of the gross assets of any Spinco Business (such percentages to be measured by fair
market values on the Distribution Date) or transfer any assets of the Spinco Group in a transaction described in Section 351 of the Code (other than a transfer to a corporation that is a member of Spinco’s “separate affiliated
group” within the meaning of Section 355(b) of the Code). The foregoing sentence shall not apply to sales, transfers, or dispositions of inventory in the ordinary course of business. 

(vii) Liquidations, Mergers, Reorganizations. Until the first day after the Restriction Period, neither Spinco nor any
of its Subsidiaries shall, or shall agree to, voluntarily dissolve or liquidate or engage in any transaction involving a merger, consolidation or other reorganization in which stock of Spinco or any of its Subsidiaries is acquired by a person other
than Spinco or one of its Subsidiaries; provided, however, that mergers of direct or indirect wholly-owned Subsidiaries of Spinco solely with and into Spinco or with other direct or indirect wholly-owned Subsidiaries of Spinco, and
liquidations of Spinco’s Subsidiaries are not subject to this Section 5(b)(vi) to the extent not inconsistent with the Tax-Free Status of the Spin-Off-Related Transactions. 

(c) Permitted Transactions. Notwithstanding the restrictions otherwise imposed by Sections 5(b)(iii) through 5(b)(vii), during the
Restriction Period, Spinco or members of the Spinco Group may (i) engage in a transaction or transactions that would otherwise breach any of the covenants set forth in Sections 5(b)(iii) through (vii) if and only if such transaction
would not violate Section 5(b)(i) or Section 5(b)(ii) and prior to entering into any agreement contemplating such a transaction: (X) Spinco shall provide Remainco with an Unqualified Tax Opinion in form and substance
satisfactory to Remainco in its reasonable discretion (Y) Spinco shall request that Remainco obtain a private letter ruling from the IRS to the effect that such transaction will not affect the Tax-Free Status of any of the Spin-Off-Related
Transactions and Remainco shall have received such a private letter, in form and substance reasonably satisfactory to Remainco, or (Z) Remainco in its sole and absolute discretion shall have waived in writing the requirement to obtain such
Unqualified Tax Opinion or private letter ruling. 

  
 21 

 (d) Liability of Spinco for Undertaking Certain Actions. Notwithstanding anything in this
Agreement to the contrary, Spinco and each other member of the Spinco Group shall be responsible for any and all Spin-Off-Related Losses that are attributable to, or result from: 

(i) any act or failure to act by Spinco or any other member of the Spinco Group, which act or failure to act breaches any of
the covenants described in Section 5(b)(i) through 5(b)(vii) of this Agreement (without regard to the exceptions or provisos set forth in such provisions), expressly including, for this purpose, any Permitted Transaction and any act or failure
to act that breaches Section 5(b)(i) or 5(b)(ii), regardless of whether such act or failure to act is permitted by Section 5(b)(iii) through 5(b)(vii); 

(ii) any acquisition of Equity Securities of Spinco or any other member of the Spinco Group by any Person or Persons (including
as a result of an issuance of Spinco Equity Securities or a merger of another entity with and into Spinco or any other member of the Spinco Group) or any acquisition of assets of Spinco or any other member of the Spinco Group (including as a result
of a merger) by any Person or Persons; and 
 (iii) Tax Counsel withdrawing all or any portion of the Tax Opinion issued to
Remainco in connection with the Spin-Off-Related Transactions because of a breach by Spinco or any other member of the Spinco Group of a representation made in this Agreement (or made in connection with the Tax Opinion.). 

(e) Cooperation. 

(i) Remainco and Spinco shall reasonably cooperate with each other in connection with any request by either for an Unqualified
Tax Opinion or private letter ruling from the IRS with respect to any proposed action described in Section 5(b) (for this purpose, read as if Section 5(b) applied to both Remainco and Spinco). 

(ii) Until the first day after the Restriction Period, Spinco will provide adequate advance notice to Remainco in accordance
with the terms of Section 5(e)(iii) of any action described in Sections 5(b)(i) through 5(b)(vii) within a period of time sufficient to enable Remainco to seek injunctive relief as contemplated by Section 5(f). 

(iii) Each notice required by Section 5(e)(ii) shall set forth the terms and conditions of any such proposed transaction,
including (A) the nature of any related action proposed to be taken by the board of directors of Spinco, (B) the 

  
 22 

 
approximate number of Equity Securities (and their voting and economic rights) of Spinco or any other member of the Spinco Group (if any) proposed to be sold or otherwise issued, (C) the
approximate value of Spinco’s assets (or assets of any other member of the Spinco Group) proposed to be transferred, and (D) the proposed timetable for such transaction, all with sufficient particularity to enable Remainco to seek
injunctive relief pursuant to Section 5(f). Promptly, but in any event within 30 days after Remainco receives such written notice from Spinco, Remainco shall notify Spinco in writing of Remainco’s decision to seek such injunctive relief.

 (f) Enforcement. The parties hereto acknowledge that irreparable harm would occur in the event that any of the provisions of this
Section 5 were not performed in accordance with their specific terms or were otherwise breached. The parties hereto agree that, in order to preserve the Tax-Free Status of the Spin-Off-Related Transactions, injunctive relief is appropriate to
prevent any violation of the foregoing covenants; provided, however, that injunctive relief shall not be the exclusive legal or equitable remedy for any such violation. 

6. Tax Contests. 

(a) Notification. Each of Remainco and Spinco shall notify the other party in writing of any demand, claim or notice of the
commencement of an audit received by such Party from any Tax Authority or other Person with respect to any Income Taxes or Other Taxes of Remainco or any other member of the Remainco Group, or Spinco or any other member of the Spinco Group,
respectively, for which a member of the Spinco Group or the Remainco Group, respectively, may be responsible pursuant to this Agreement within ten (10) Business Days of receipt; provided, however, that in the case of any demand, claim or
notice of the commencement of an audit that is reasonably expected to give rise to a Distribution-Related Proceeding, regardless of whether Spinco or Remainco may be responsible for any resulting Taxes, Remainco or Spinco, as the case may be, shall
provide written notice to the other party no later than ten (10) Business Days after Remainco or Spinco receives any written notice of such a demand, claim or notice of commencement of an audit from the IRS or other Tax Authority. Each of
Remainco and Spinco shall include with such notice a true, correct and complete copy of any written communication, and an accurate and complete written summary of any oral communication, received by Remainco or any other member of the Remainco
Group, or Spinco or any other member of the Spinco Group, respectively. The failure of Remainco or Spinco timely to provide such notice in accordance with the first sentence of this Section 6(a) shall not relieve Spinco or Remainco,
respectively, of any obligation to pay such Income Tax Liability or Other Tax Liability or indemnify Remainco and the other members of the Remainco Group, or Spinco and the other members of the Spinco Group, respectively, and their respective
Representatives therefor, except to the extent that the failure timely to provide such notice actually prejudices the ability of Spinco or Remainco to contest such Income Tax Liability or Other Tax Liability or increases the amount of such Income
Tax Liability or Other Tax Liability. 

  
 23 

 (b) Representation with Respect to Tax Disputes. (i) Remainco (or such other member
of the Remainco Group as Remainco may designate) shall have the sole right to represent the interests of the members of the Remainco Group and the members of the Spinco Group and to employ counsel of its choice in any Proceeding relating to
(y) any U.S. consolidated federal Income Tax Returns of the Remainco Consolidated Group, (y) any Combined Returns for which Remainco or a member of the Remainco Group is the Filing Party, and (z) any Remainco Separate Returns.
Remainco may affirmatively elect, in writing and at its sole and absolute discretion, not to assert control of a Proceeding described in clause (y) of the immediately preceding sentence, in which case Spinco shall have the right to control such
Proceeding and Remainco shall have the right to participate therein at its own cost; provided, however, that Spinco shall not have the right to settle any such Proceeding without the prior written consent of Remainco (which shall not be
unreasonably withheld). Remainco shall bear all expenses relating to any Proceeding referred to in this Section 6(b)(ii), except that, with respect to a Proceeding described in Section 6(b)(i)(y) or Section 6(b)(ii)(x), expenses shall
be borne by Remainco and Spinco to the extent such expenses are attributable to Remainco Adjustments or Spinco Adjustments, respectively; provided, however, that to the extent such expenses cannot reasonably be attributed to Remainco
Adjustments or Spinco Adjustments, such expenses shall be borne equally by Remainco and Spinco. 
 (ii) Spinco (or such other member of the
Spinco Group as Spinco may designate) shall have the sole right to represent the interests of the members of the Spinco Group and to employ counsel of its choice at its expense in any Proceeding relating to (x) any Combined Returns for which
Spinco or a member of the Spinco Group is the Filing Party and (y) any Spinco Separate Returns. Spinco may affirmatively elect, in writing and at its sole and absolute discretion, not to assert control of a Proceeding described in clause
(x) of the immediately preceding sentence, in which case Remainco shall have the right to control such Proceeding and Spinco shall have the right to participate therein at its own cost; provided, however, that Remainco shall not have the
right to settle any such Proceeding without the prior written consent of Spinco (which shall not be unreasonably withheld). Spinco shall bear all expenses relating to any Proceeding referred to in this Section 6(b)(ii) except that with respect
to a Proceeding described in Section 6(b)(i)(y) or Section 6(b)(ii)(x), expenses shall be borne by Spinco and Remainco to the extent such expenses are attributable to Spinco Adjustments or Remainco Adjustments, respectively; provided,
however, that to the extent such expenses cannot reasonably be attributed to Spinco Adjustments or Remainco Adjustments, such expenses shall be borne equally by Spinco and Remainco. 

  
 24 

 (c) Power of Attorney. Each member of the Spinco Group shall execute and deliver to
Remainco (or such other member of the Remainco Group as Remainco may designate) any power of attorney or other document reasonably requested by Remainco (or such designee) in connection with any Proceeding described in Section 6(b)(i). Each
member of the Remainco Group shall execute and deliver to Spinco (or such other member of the Spinco Group and Spinco may designate) any power of attorney or other document reasonably requested by Spinco (as such designee) in connection with any
Proceeding described in Section 6(b)(ii). 
 (d) Conduct of Proceedings. 

(i) In the event of any Distribution-Related Proceeding or Proceeding relating to a Tax liability as a result of which Spinco
could reasonably be expected to become liable for Tax or any Spin-Off-Related Losses and with respect to which Remainco has the right to represent the interests of the Spinco Group pursuant to Section 6(b)(i) above, (A) Remainco shall
consult with Spinco reasonably in advance of taking any significant action in connection with such Proceeding, (B) Remainco shall consult with Spinco and offer Spinco a reasonable opportunity to comment before submitting any written materials
prepared or furnished in connection with such Proceeding, (C) Remainco shall defend such Proceeding diligently and in good faith as if it were the only party in interest in connection with such Proceeding, (D) Spinco shall be entitled to
participate in such Proceeding and receive copies of any written materials relating to such Proceeding received from the relevant Tax Authority, and (E) Remainco shall not settle, compromise or abandon any such Proceeding without obtaining the
prior written consent of Spinco, which consent shall not be unreasonably withheld. 
 (ii) In the event of any
Distribution-Related Proceeding or Proceeding relating to a Tax liability as a result of which Remainco could reasonably be expected to become liable for Tax or any Spin-Off-Related Losses and with respect to which Spinco has the right to represent
the interests of the Remainco Group pursuant to Section 6(b)(ii) above, (A) Spinco shall consult with Remainco reasonably in advance of taking any significant action in connection with such Proceeding, (B) Spinco shall consult with
Remainco and offer Remainco a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such Proceeding, (C) Spinco shall defend such Proceeding diligently and in good faith as if it were
the only party in interest in connection with such Proceeding, (D) Remainco shall be entitled to participate in such Proceeding and receive copies of any written materials relating to such Proceeding received from the relevant Tax Authority,
and (E) Spinco shall not settle, compromise or abandon any such Proceeding without obtaining the prior written consent of Remainco, which consent shall not be unreasonably withheld. 

  
 25 

 7. Apportionment of Tax Attributes; Carrybacks. 

(a) Apportionment of Tax Attributes. 

(i) If the Remainco Consolidated Group has a Tax Attribute, the portion, if any, of such Tax Attribute apportioned by Remainco
to Spinco or any other member of the Spinco Consolidated Group and treated as a carryover to the first Post-Distribution Taxable Period of Spinco (or such member) shall be determined in accordance with Treasury Regulation Sections 1.1502-9T,
1.1502-21, 1.1502-21T, 1.1502-22, 1.1502-79 and, if applicable, l.1502-79A. 
 (ii) Tax Attributes other than those allocated
under Section 7(a)(i) with respect to consolidated, combined or unitary state, local or foreign Income Tax, in each case, arising in respect of a Combined Return shall be apportioned by the Filing Party to the Non-Filing Party or any other
member of the Non-filing Party’s Group, to the extent required under applicable law. 
 (iii) The amount of earnings and
profits to be apportioned to Spinco or any other member of the Spinco Group shall be determined in accordance with applicable law. 

(iv) Except as otherwise required by a Final Determination, no member of the Non-filing Party’s Group shall take
any position (whether on a Tax Return or otherwise) that is inconsistent with the apportionment by the Filing Party in Section 7(a). 

(b) Carrybacks. Except to the extent otherwise consented to by the Filing Party or prohibited by applicable law, the Non-filing Party and each other member of its Group shall elect to relinquish, waive or otherwise forgo all Carrybacks. In the event that the Non-filing Party (or the appropriate other member of its Group) is
prohibited by applicable law from relinquishing, waiving or otherwise forgoing a Carryback (or the Filing Party consents to a Carryback), (i) the Filing Party shall cooperate with the Non-filing Party, at the Non-filing Party’s expense, in
seeking from the appropriate Tax Authority such Refund as reasonably would result from such Carryback, and (ii) the Non-filing Party shall be entitled to any Income Tax Benefit Actually Realized by a member of the Filing Party’s Group
(including any interest thereon received from such Tax Authority), to the extent that such Refund is directly attributable to such Carryback, within 15 Business Days after such Refund is Actually Realized; provided, however, that the
Non-filing Party shall indemnify and hold the members of the Filing Party’s Group harmless from and against any and all collateral Tax consequences resulting from or caused by any such Carryback, including (but not limited to) the loss or
postponement of any benefit from the use of Tax Attributes generated by a member of the Filing Party’s Group or an Affiliate thereof if (x) such Tax Attributes expire unutilized, but would have been utilized but for such Carryback, or
(y) the use of such Tax Attributes is postponed to a later taxable period than the taxable period in which such Tax Attributes would have been utilized but for such Carryback. 

  
 26 

 8. Cooperation and Exchange of Information. 

(a) Cooperation and Exchange of Information. Each of Remainco and Spinco, on behalf of itself and each other member of the Remainco
Group and the Spinco Group, respectively, agrees to provide the other Party (or its designee) with such cooperation or information as such other party (or its designee) reasonably shall request in connection with the determination of any payment or
any calculations described in this Agreement, the preparation or filing of any Income Tax Return or Other Tax Return or claim for Refund, or the conduct of any Proceeding. Such cooperation and information shall include, upon reasonable notice,
(i) promptly forwarding copies of appropriate notices and forms or other communications (including information document requests, revenue agent’s reports and similar reports, notices of proposed adjustments and notices of deficiency)
received from or sent to any Tax Authority or any other administrative, judicial or governmental authority, (ii) providing copies of all relevant Income Tax Returns or Other Tax Returns, together with accompanying schedules and related
workpapers, documents relating to rulings or other determinations by any Tax Authority, and such other records concerning the ownership and Tax basis of property, or other relevant information, (iii) the provision of such additional information
and explanations of documents and information provided under this Agreement (including statements, certificates, forms, returns and schedules delivered by either party) as shall be reasonably requested by Remainco (or its designee) or Spinco (or its
designee), as the case may be, (iv) the execution of any document that may be necessary or reasonably helpful in connection with the filing of an Income Tax Return or Other Tax Return, a claim for a Refund, or in connection with any Proceeding,
including such waivers, consents or powers of attorney as may be necessary for Remainco or Spinco, as the case may be, to exercise its rights under this Agreement, and (v) the use of Remainco’s or Spinco’s, as the case may be,
reasonable efforts to obtain any documentation from a governmental authority or a Third Party that may be necessary or reasonably helpful in connection with any of the foregoing. It is expressly the intention of the parties to this Agreement to take
all actions that shall be necessary to establish the Filing Party as the sole agent for Income Tax or Other Tax purposes of each member of the Non-filing Party’s Group with respect to all Combined Returns. Upon reasonable notice, each of
Remainco and Spinco shall make its, or shall cause the other members of the Remainco Group or the Spinco Group, as applicable, to make their, employees and facilities available on a mutually convenient basis to provide explanation of any documents
or information provided hereunder. Any information obtained under this Section 8 shall be kept confidential, except as otherwise reasonably may be necessary in connection with the filing of Income Tax Returns or Other Tax Returns or claims for
Refund or in conducting any Proceeding. 

  
 27 

 (b) Retention of Records. Each of Remainco and Spinco agrees to retain all Income Tax
Returns and Other Tax Returns, related schedules and workpapers, and all material records and other documents as required under Section 6001 of the Code and the regulations promulgated thereunder (and any similar provision of state, local or
foreign law) existing on the date hereof or created in respect of (i) any Pre-Distribution Taxable Period or (ii) any taxable period that may be subject to a claim hereunder, in each case, until the later of (A) the expiration of the
statute of limitations (including extensions) for the taxable periods to which such Income Tax Returns, Other Tax Returns and other documents relate and (B) the Final Determination of any payments that may be required in respect of such taxable
periods under this Agreement. 
 9. Resolution of Disputes. Remainco and Spinco shall attempt in good faith to resolve any
disagreement arising with respect to this Agreement, including any dispute in connection with a claim by a Third Party (a “Tax Dispute”). Any party to this Agreement may give any other Party hereto written notice of any Tax Dispute not
resolved in the normal course of business. If the Parties cannot agree by the tenth Business Day following the date on which one Party gives such notice, then the Parties shall promptly retain the services of a nationally recognized law or
accounting firm reasonably acceptable to the Parties (the “Tax Dispute Arbitrator”). The Tax Dispute Arbitrator shall be instructed to resolve the Tax Dispute, and such resolution shall be (a) set forth in writing and signed by the
Tax Dispute Arbitrator, (b) delivered to each Party involved in the Tax Dispute as soon as practicable after the Tax Dispute is submitted to the Tax Dispute Arbitrator, but no later than the fifteenth Business Day after the Tax Dispute
Arbitrator is instructed to resolve the dispute, (c) made in accordance with this Agreement, and (d) final, binding and conclusive on the Parties involved in the Tax Dispute on the date of delivery of such resolution. The Tax Dispute
Arbitrator shall be authorized on any one issue to decide in favor of and choose the position of either of the Parties involved in the Tax Dispute or to decide upon a compromise position within the range between the positions presented by the
Parties to the Tax Dispute Arbitrator. The fees and expenses of the Tax Dispute Arbitrator shall be borne 50% by Remainco and 50% by Spinco. 

10. Payments. 

(a) Method of Payment. All payments required by this Agreement shall be made by (i) wire transfer to the appropriate bank account
as may from time to time be designated by the respective Parties for such purpose; provided, however, that, on the date of such wire transfer, notice of the transfer is given to the recipient thereof in accordance with Section 11, or
(ii) any other method agreed to by the Parties. All payments due under this Agreement shall be deemed to be paid when available funds are actually received by the payee. 

  
 28 

 (b) Interest. Any payment required by this Agreement that is not made on or before the
date required hereunder shall bear interest, from and after such date through the date of payment, at the Underpayment Rate. 
 (c)
Characterization of Payments. For all tax purposes, the parties hereto agree to treat, and to cause their respective Affiliates to treat any payment required by this Agreement as either a contribution by Remainco to Spinco or a distribution
by Spinco to Remainco, as the case may be, occurring immediately prior to the Spin-Off, except as otherwise mandated by applicable law or a Final Determination; provided, however, that in the event it is determined (i) pursuant to
applicable law, or (ii) pursuant to a Final Determination, that any such treatment is not permissible (or that an Indemnified Party nevertheless suffers an Income Tax or Other Tax detriment as a result of such payment), the payment in question
shall be adjusted to place the Indemnified Party in the same after-tax position it would have enjoyed absent such applicable law or Final Determination. 

11. Notices. Notices, requests, permissions, waivers, and other communications hereunder shall be in writing and shall be deemed
to have been duly given upon (a) a transmitter’s confirmation of a receipt of a facsimile transmission (but only if followed by confirmed delivery of a standard overnight courier the following Business Day or if delivered by hand the
following Business Day), or (b) confirmed delivery of a standard overnight courier or delivered by hand, to the parties at the following addresses (or at such other addresses for a party as shall be specified by like notice): 

 

			
	If to Remainco, to:	  	
		  	The Babcock & Wilcox Company
		  	11525 North Community House Rd.
		  	Suite 600
		  	Charlotte, NC 28277
		
	If to Spinco, to:	  	
		  	Babcock & Wilcox Enterprises, Inc.
		  	13024 Ballantyne Corporate Place
		  	Suite 700
		  	Charlotte, NC 28277

 Such names and addresses may be changed by notice given in accordance with this Section 12. 

12. Designation of Affiliate. Each of Remainco and Spinco may assign any of its rights or obligations under this Agreement to
any member of the Remainco Group or the Spinco Group, respectively, as it shall designate; provided, however, that no such assignment shall relieve Remainco or Spinco, respectively, of any obligation hereunder, including any obligation to
make a payment hereunder to Spinco or Remainco, respectively, to the extent such designee fails to make such payment. 

  
 29 

 13. Miscellaneous. To the extent not inconsistent with any specific term of this
Agreement, the following sections of the Master Separation Agreement shall apply in relevant part to this Agreement: Section 7.3 (Entire Agreement), Section 7.10 (Governing Law), Section 7.5 (Amendment), Section 7.6 (Waiver,
etc.), Section 7.9 (Severability), Section 7.8 (Counterparts), Section 7.4 (Binding Effect, No Third-Party Beneficiaries, Assignment.), Section 7.12 (Performance), Section 7.13 (Limited Liability), and Section 7.2
(Termination). 

  
 30 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by
its officers thereunto duly authorized, all as of the day and year first written above. 
  

					
	THE BABCOCK & WILCOX COMPANY
		
	By:	 	 /s/ James D. Canafax

		 	Name:	 	James D. Canafax
		 	Title:	 	Senior Vice President, General Counsel and Chief Compliance Officer

  
 31 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by
its officers thereunto duly authorized, all as of the day and year first written above. 
  

					
	BABCOCK & WILCOX ENTERPRISES, INC.
		
	By:	 	 /s/ E. James Ferland

		 	Name:	 	E. James Ferland
		 	Title:	 	Chairman and CEO

  
 32 

 Appendix A 

Tax Allocation Principles and Methods 
  

	I.	Original Combined Returns (See generally Ex. 1) 

  

	 	A.	Net income/loss before § 199 deduction and NOLs: 

  

	 	(a)	items of income, deduction, loss, capital cost or liability definitely attributable to one Group: allocate to Group and Spinco Group according to actual items attributable to Remainco Group members and Spinco Group
members. 

  

	 	(b)	items of income, deduction, loss, capital cost or liability not directly attributable to one Group: allocate 50/50 to each group. 

  

	 	(c)	interest and penalties: if attributable to a tax, allocate with the tax; if attributable to a filing obligation, allocate to party with the filing obligation 

 

	 	B.	§ 199 deduction: allocate to Remainco Group and Spinco Group in proportion to their relative QPAI 

  

	 	C.	Consolidated NOLs (current-year or c/f): allocated to offset each Group’s taxable income without regard to which Group generated; no compensation by one Group for use of other Group’s NOLs (See Ex’s 6
& 7) 

  

	 	D.	Tax before Credits: allocate in proportion to relative taxable income of each Group computed in accordance with A, B and C. If one Group has net loss, all tax allocated to other Group; loss Group is not entitled to
compensation for use of its loss. (See Ex. 6) 

  

	 	E.	Foreign Tax Credits: allocate in proportion to the FTCs actually generated by each Group for the year. If a Group has a net loss, all FTC allocated to other Group. 

 

	 	F.	R&D Credits: allocate in proportion to the QREs actually generated by each Group for the year. If a Group has a net loss, all R&D credit allocated to other Group. 

 

	 	G.	Refunds: allocate in accordance with computation of each Group’s allocated tax (calculated under A through F) and estimated taxes paid/deemed paid by each Group. 

 

	II.	Carryforwards from Combined Return Tax Years 

  

	 	A.	NOLs: allocate according computation of relative taxable income/loss under I.A. and B. 

  

	 	B.	Credits: allocate according to computations under I.E. and F., above. (See Ex. 1) 

  
 33 

	III.	Post-original Filing/Post-spin-off Adjustments (Amended Returns and/or Audits) 

  

	 	A.	Increases in Tax - Combined Returns 

  

	 	(a)	attributable to adjustments to only one Group: allocate entirely to Group with adjustments (See Ex. 2) 

  

	 	(b)	attributable to net positive adjustments to both Groups: allocate in proportion to the adjustments to each Group (See Ex’s. 3 & 5) 

 

	 	(c)	attributable to net positive adjustments to one Group and net negative adjustments to other Group: allocate entirely to Group with net positive adjustments; Group with net positive adjustments must also compensate other
Group for use of its negative adjustments (consistent with III.B.) 

  

	 	B.	Increase in Taxable Income of one Group in Combined Returns offset by Tax Benefits (e.g., NOLs) allocable to other Group: Group using tax benefits must compensate other Group for loss of tax benefits at time that
other Group would have been able to utilize the benefits to reduce taxes on a separate return (see Ex’s 8 & 9) or receive a refund (see Ex. 10). 

  

	 	C.	Decreases in Tax (Refunds) in Combined Returns: 

  

	 	(a)	attributable to adjustments to only one Group: entire refund allocated to Group with adjustments (See Ex. 4). 

  

	 	(b)	attributable to net negative adjustments to both Groups: refund allocated in proportion to adjustments to each Group. 

  

	 	(c)	attributable to net negative adjustments to one Group and net positive adjustments to other Group: entire refund to Group with net negative adjustments; Group with net positive adjustments must pay the difference in
refund that negative-adjustment Group would have received but for net positive adjustments to other Group. 

  

	 	D.	Items in Combined Returns not attributable: 

  

	 	(a)	items of income, deduction, loss, capital cost, liability, or benefit not directly attributable to one Group is shared equally among the parties. 

 

	 	E.	Adjustments for Tax Benefits/Detriments 

  

	 	(a)	Tax benefits from increases in tax payable: compensation for increase in tax payable is accompanied by obligation of compensated party to pay to compensating party any correlative tax benefit from the tax increase; if
related adjustments to separate returns result in Tax payable by one Group and Tax Benefit to other Group, Group realizing Tax Benefit must pay to other Group an amount of benefit not exceeding the amount of such Group’s increase in Tax
payable. If realization of tax benefit is deferred, payment only as actually realized (unless otherwise agreed by parties). (See Ex’s 9 & 11) 

  

	 	(b)	Tax detriments from refunds: payment by one Group of an amount of a tax refund allocable to the other Group is net of any correlative tax payable by the Group that received the refund. 

  
 34 

 Example 1 – Original combined tax liability allocated between members based on relative contribution

 PGG and BWXT participate in a federal combined filing for a tax period that begins prior to the distribution date. The group reports $300m of net
consolidated taxable income before the §199 deduction, a §199 deduction of $27m (i.e., TI limited for the year), foreign tax credits of $3m, R&D credits of $5m, and a net tax liability of $87.55m ({$300m - $27m * 35%} - $3m - $5m).

 The $300m of net consolidated taxable income before the §199 deduction is composed of (i) $230m of net taxable income attributable to members
of the BWXT group and (ii) $70m of net taxable income attributable to members of the PGG group. The §199 deduction of $27m is limited to TI, but is related to QPAI of $400m, composed of (i) $240m of QPAI attributable to members of the
BWXT group and (ii) $160m of QPAI attributable to members of the PGG group. The $3m of foreign tax credits utilized in the current year is associated with $8.6m of foreign source income generated in the current year. The foreign tax credits
generated in the current year is composed of (i) $2m of foreign tax credits generated by members of the BWXT group and (ii) $4m of foreign tax credits generated by members of the PGG group. The components of foreign source income is
irrelevant since this attribute does not drive the allocation, the tax generation does. The $5m of R&D credits utilized in the current year is computed based on QRE’s generated in the current year of $100m, composed of (i) $60m of
QRE’s attributable to members of the BWXT group and (ii) $40m of QRE’s attributable to members of the PGG group. 
 Pursuant to Appendix A,
Section I, the $87.55m of net tax liability is allocated (i) $70.83m to BWXT and (ii) $16.72m to PGG. A schedule is presented below to summarize the net tax liability computations for each party. 

It should be further noted that the excess FTC’s generated in the CY by the consolidated group and not utilized within the consolidated tax return should
also be attributable to the members based on their relative contribution. Pursuant to Appendix A, Section II.B, the $3m of foreign tax credits carried forward into the subsequent tax periods ($6m generated - $3m utilized) is comprised of
(i) $1m attributable to the BWXT group ($2m/$6m * $3m) and (ii) $2m attributable to the PGG group ($4m/$6m * $3m). 
  

																	
	 	  	BWXT	 	 	 	 	PGG	 	 	 	 	TOTAL	 
						
	 Taxable Income before S199
	  	 	230.00	  	 		 	 	70.00	  	 		 	 	300.00	  
	 S199 Deduction (allocated by QPAI)
	  	 	(16.20	) 	 	(240/400)	 	 	(10.80	) 	 	(160/400)	 	 	(27.00	) 
		  	  
	  
	 	 		 	  
	  
	 	 		 	  
	  
	 
						
	 Taxable Income after S199
	  	 	213.80	  	 		 	 	59.20	  	 		 	 	273.00	  
						
	 Tax Liability before Credits (35%)
	  	 	74.83	  	 		 	 	20.72	  	 		 	 	95.55	  
	 Foreign Tax Credits (allocated by FTC’s)
	  	 	(1.00	) 	 	(2/6)	 	 	(2.00	) 	 	(4/6)	 	 	(3.00	) 
	 R&D Credits (allocated by QRE’s)
	  	 	(3.00	) 	 	(60/100)	 	 	(2.00	) 	 	(40/100)	 	 	(5.00	) 
		  	  
	  
	 	 		 	  
	  
	 	 		 	  
	  
	 
						
		  	 	70.83	  	 		 	 	16.72	  	 		 	 	87.55	  

 Example 2 – Incremental tax expense allocated to member who gave rise to the adjustment 

Same facts as example 1, except an audit adjustment is made in a future year to decrease PGG’s associated QRE’s. This audit adjustment decreases the
generation and utilization of the combined groups R&D credit by $150,000. Due to BWXT being the taxpayer of the combined filing, BWXT will be required to pay the taxing jurisdiction for the increase in tax. However, pursuant to Appendix A
Section III.A.(a),., PGG will be required to compensate BWXT for the applicable tax payment since the audit adjustment was solely related to the PGG group. 

Example 3 – Incremental tax expense allocated to each member based on relative weight 

Same facts as example 1, except an audit adjustment is made in the future to decrease the QRE’s attributable to PGG by $1m and the QRE’s attributable
to BWXT by $2m. This audit adjustment decreases the generation and utilization of the combined group’s R&D credit by $300,000. Pursuant to Appendix A Section III.A.(b) PGG will be liable for $100,000 ($1m/$3m * $300,000) and BWXT will be
liable for $200,000 ($2m/$3m * $300,000) of the associated additional tax. 
 Example 4 – Incremental net tax benefit allocated to member who gave
rise to the adjustment 
 Same facts as example 1, but subsequent to the distribution year, BWXT files an amended return claiming $25m of additional
deductions to its separate company taxable income. The recognition of these additional deductions does not change the company’s §199 computation from the TI limitation described in IRC §199(a). Therefore, due to the combined
group’s §199 deduction being subject to the taxable income limitation, this decrease to BWXT’s separate company taxable income also decreases the combined group’s §199 deduction by $2.25m ($25m * 9%). The IRS audits the
amended filing and concludes that BWXT is due a refund of $7.96m ($25m-$2.25m * 35%). Pursuant to Appendix A Section III.C.(a), BWXT is entitled to the net refund of $7.96m and is not entitled to receive compensation from PGG for the correlative
decrease in the combined group’s §199 deduction. 
 Example 5 – Incremental net tax expense allocated to each member based on relative
weight 
 Same facts as example 1, but subsequent to the distribution year, the IRS audits the combined return and determines that BWXT underreported
income by $20m and PGG underreported income by $10m. The recognition of this additional income does not change the company’s §199 computation from the TI limitation described in IRC §199(a). Therefore, due to the combined group’s
§199 deduction being subject to the taxable income limitation, this increase to the combined group’s taxable income also increases the combined group’s §199 deduction by $2.7m ($30m * 9%). The final net audit adjustments results
in a net tax due of $9.55m ($30m-$2.7m * 35%). Pursuant to Appendix A Section III.A.(b), BWXT is liable for $6.37m of the $9.55m ($20m/$30m * $9.55m) and PGG is liable for $3.18m of the $9.55m ($10m/$30m * $9.55m). 

Example 6 - Original combined tax liability allocated between members based on relative contribution, but no compensation/indemnity for tax benefit
utilized within original combined return 
 PGG and BWXT participate in a federal combined filing for a tax period that begins prior to the distribution
date. The group reports $200m of net consolidated taxable income, no credits, and a tax liability of $70m ($200m * 35%). The $300m of net consolidated taxable income is composed of (i) $300m of net taxable

  
 36 

 
income attributable to members of the BWXT group and (ii) a $100m net operating loss is attributable to members of the PGG group. Pursuant to Appendix A Section I.C, the $70m of tax
liability is attributable entirely to the BWXT group and BWXT is not required to compensate PGG for the utilization of the $100m net operating loss. 

Example 7 – No compensation/indemnity for tax benefit utilized within original combined return (State NOL
Carry-forwards) 
 PGG and BWXT participate in a combined state filing for a tax period that begins prior to the
distribution date. The combined filing utilizes a NOL generated and carried forward into the tax filing by the PGG group. Pursuant to Appendix A Section I.C. the utilization of this NOL C/F that is applied to and against any liability allocated to
the BWXT group is not considered a tax benefit for which BWXT must compensate PGG. 
 Example 8 – Potential compensation/indemnity for tax benefit
utilized subsequent to original combined filing (State NOL Carry-forwards) 
 Same facts as example 7, except an
audit adjustment is made in a future year to increase BWXT’s applicable tax liability for the combined year. This increase to BWXT’s applicable tax liability increases the utilization of the NOL C/F and therefore decreases the NOL C/F
available to the PGG group post-distribution. Pursuant to Appendix A Section III.B., this decrease to the PGG groups deferred tax asset is a tax benefit for which BWXT must compensate PGG when and if a resulting economic loss is realized by PGG.

 Example 9 – Compensation/indemnity paid when economic benefit or detriment realized or incurred (State NOL
Carry-forwards) 
 In addition to the facts detailed out within examples 7 & 8 PGG filed an original return
in the tax year subsequent to the distribution date utilizing the remaining NOL carried forward from the distribution tax year. Due to the audit adjustment against BWXT’s tax liability described in example 8, PGG must file an amended return
reflecting this decrease in the available NOL carried forward into and utilized within the post-distribution tax filing. PGG is required to pay the taxing jurisdiction an additional $100,000 due to the loss of available NOL C/F from the
pre-distribution tax filing. Pursuant to Appendix A Section III.B, BWXT is required to compensate PGG within 30 days of PGG making the associated payment to the taxing jurisdiction. However, pursuant to Appendix A Section IV.A., BWXT is only
required to compensate PGG $65,000 ($100,000 * 65%) for the net economic impact (i.e., net of federal benefit). 
 Example 10 –
Compensation/indemnity paid when economic benefit or detriment realized or incurred (loss of refund) 
 PGG and BWXT participate in a combined tax return
for a pre-distribution tax period, and each pays its allocable share of the tax shown as due thereon. After the distribution, audit adjustments are made that increase the taxable income allocable to BWXT and decreases the taxable income allocable to
PGG. The PGG decreases offset the BWXT increases. Without the BWXT increases, PGG would have been entitled to receive a refund. (See Appendix A Section III.C.(a) and Ex. 4 above.) Pursuant to Appendix A Section III.B., BWXT must compensate PGG
for the loss of its refund. 

  
 37 

 Example 11 – Compensation/indemnity paid when economic benefit or detriment realized or incurred (tax
benefits received by one party from increases in tax payable of the other party) 
 PGG and BWXT participate in a federal combined filing for a tax
period that begins prior to the distribution date. As part of this filing, BWXT transfers IP to PGG in a taxable transaction valued at $10m. Subsequent to the distribution year, the IRS audits the combined return and determines the value of the IP
to be $30m. Pursuant to Section Appendix A, Section III.A.(d), the adjustment is attributable to BWXT and therefore BWXT would be responsible for the additional tax of $7m ($30m-$10m * 35%). However, this increase to the IP valuation also increases
the amortizable basis of the IP in the hands of PGG, for which PGG will receive future deductions or benefits (i.e., in the form of amortization). Pursuant to Appendix A, Section IV.A., PGG must provide compensation to BWXT when these future
benefits are actually realized. Since the realization of the tax benefits by PGG will occur over a 15 year period (i.e., the IRS amortization period), the two parties may wish to agree on a settlement amount at the time of the IRS audit adjustment
to eliminate the need for multiple indemnity payments over a significant time period. 

  
 38EX-10.2

 Exhibit 10.2 

Execution Version 

EMPLOYEE MATTERS AGREEMENT 

between 
 THE
BABCOCK & WILCOX COMPANY 
 and 

BABCOCK & WILCOX ENTERPRISES, INC. 

dated as of 
 June 8,
2015 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 ARTICLE I
	 	 DEFINITIONS
	  	 	1	  
			
	 Section 1.1
	 	 Definitions
	  	 	1	  
			
	 Section 1.2
	 	 Interpretation
	  	 	9	  
			
	 ARTICLE II
	 	 ASSIGNMENT OF EMPLOYEES
	  	 	10	  
			
	 Section 2.1
	 	 Active Employees
	  	 	10	  
			
	 Section 2.2
	 	 Former Employees
	  	 	11	  
			
	 Section 2.3
	 	 Employment Law Obligations
	  	 	12	  
			
	 Section 2.4
	 	 Employee Records
	  	 	12	  
			
	 ARTICLE III
	 	 EQUITY AND INCENTIVE COMPENSATION PLANS
	  	 	14	  
			
	 Section 3.1
	 	 General Principles
	  	 	14	  
			
	 Section 3.2
	 	 Tax Reporting and Withholding; Payment of Option Exercise Price
	  	 	15	  
			
	 Section 3.3
	 	 Restricted Stock Units and Restricted Stock
	  	 	16	  
			
	 Section 3.4
	 	 Stock Options and Stock Appreciation Rights
	  	 	18	  
			
	 Section 3.5
	 	 Performance-Based Awards
	  	 	20	  
			
	 Section 3.6
	 	 Section 16(b) of the Exchange Act; Code Sections 162(m) and 409A
	  	 	23	  
			
	 Section 3.7
	 	 Certain Bonus Payments
	  	 	23	  
			
	 Section 3.8
	 	 Change in Control
	  	 	24	  
			
	 Section 3.9
	 	 Conformity with Non-U.S. Laws
	  	 	24	  
			
	 Section 3.10
	 	 Employment Treatment
	  	 	24	  
			
	 ARTICLE IV
	 	 GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES
	  	 	25	  
			
	 Section 4.1
	 	 General Principles
	  	 	25	  
			
	 Section 4.2
	 	 Sponsorship and/or Establishment of SpinCo Plans
	  	 	27	  
			
	 Section 4.3
	 	 Service Credit
	  	 	27	  
			
	 Section 4.4
	 	 Plan Administration
	  	 	28	  
			
	 ARTICLE V
	 	 PENSION, EXCESS AND SUPPLEMENTAL PLANS
	  	 	28	  
			
	 Section 5.1
	 	 General Principles
	  	 	28	  
			
	 Section 5.2
	 	 U.S. Pension Transfers
	  	 	29	  
			
	 Section 5.3
	 	 Canada Pension Transfer
	  	 	32	  
			
	 Section 5.4
	 	 Excess and Supplemental Plans    
	  	 	32	  
			
	 Section 5.5
	 	 Group Annuity Contract
	  	 	33	  

  
 -i- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	 ARTICLE VI
	 	 THRIFT PLANS
	  	 	33	  
			
	 Section 6.1
	 	 U.S. Thrift Plans
	  	 	33	  
			
	 Section 6.2
	 	 Treatment of RemainCo Common Stock and SpinCo Common Stock
	  	 	34	  
			
	 Section 6.3
	 	 U.S. Transfer of Accounts
	  	 	35	  
			
	 Section 6.4
	 	 Canada Thrift Plans
	  	 	35	  
			
	 Section 6.5
	 	 Canada Transfer of Accounts
	  	 	36	  
			
	 ARTICLE VII
	 	 WELFARE PLANS
	  	 	36	  
			
	 Section 7.1
	 	 Establishment of SpinCo Welfare Plans
	  	 	36	  
			
	 Section 7.2
	 	 Transitional Matters Under SpinCo Welfare Plans
	  	 	37	  
			
	 Section 7.3
	 	 VEBA
	  	 	38	  
			
	 Section 7.4
	 	 Continuity of Benefits, Benefit Elections and Beneficiary Designations
	  	 	38	  
			
	 Section 7.5
	 	 Insurance Contracts
	  	 	38	  
			
	 Section 7.6
	 	 Third-Party Vendors
	  	 	39	  
			
	 Section 7.7
	 	 Claims Experience
	  	 	39	  
			
	 Section 7.8
	 	 Allocation of Demutualization Proceeds
	  	 	39	  
			
	 Section 7.9
	 	 Grandfathered Foundry Employees
	  	 	39	  
			
	 ARTICLE VIII
	 	 BENEFIT ARRANGEMENTS
	  	 	40	  
			
	 ARTICLE IX
	 	 WORKERS’ COMPENSATION AND UNEMPLOYMENT COMPENSATION
	  	 	40	  
			
	 Section 9.1
	 	 General Principles
	  	 	40	  
			
	 Section 9.2
	 	 Crossover Claims
	  	 	40	  
			
	 Section 9.3
	 	 Additional Details
	  	 	40	  
			
	 Section 9.4
	 	 Ohio Guarantees
	  	 	41	  
			
	 ARTICLE X
	 	 RETENTION, SEVERANCE AND OTHER MATTERS
	  	 	41	  
			
	 Section 10.1
	 	 Retention Agreements
	  	 	41	  
			
	 Section 10.2
	 	 Severance
	  	 	42	  
			
	 Section 10.3
	 	 Accrued Time Off
	  	 	42	  
			
	 Section 10.4
	 	 Leaves of Absence
	  	 	42	  

  
 -ii- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	 Section 10.5
	 	 Collective Bargaining Agreements
	  	 	42	  
			
	 Section 10.6
	 	 Director Programs
	  	 	42	  
			
	 Section 10.7
	 	 Restrictive Covenants in Employment and Other Agreements
	  	 	43	  
			
	 Section 10.8
	 	 Non-Solicitation
	  	 	43	  
			
	 ARTICLE XI
	 	 GENERAL PROVISIONS
	  	 	44	  
			
	 Section 11.1
	 	 Preservation of Rights to Amend
	  	 	44	  
			
	 Section 11.2
	 	 Confidentiality
	  	 	44	  
			
	 Section 11.3
	 	 Administrative Complaints/Litigation
	  	 	44	  
			
	 Section 11.4
	 	 Reimbursement and Indemnification
	  	 	45	  
			
	 Section 11.5
	 	 Costs of Compliance with Agreement
	  	 	45	  
			
	 Section 11.6
	 	 Fiduciary Matters
	  	 	45	  
			
	 Section 11.7
	 	 Registration Statement
	  	 	46	  
			
	 Section 11.8
	 	 Entire Agreement
	  	 	46	  
			
	 Section 11.9
	 	 Binding Effect; No Third-Party Beneficiaries; Assignment
	  	 	46	  
			
	 Section 11.10
	 	 Amendment
	  	 	46	  
			
	 Section 11.11
	 	 Failure or Indulgence Not Waiver; Remedies Cumulative
	  	 	46	  
			
	 Section 11.12
	 	 Notices
	  	 	47	  
			
	 Section 11.13
	 	 Counterparts
	  	 	47	  
			
	 Section 11.14
	 	 Severability
	  	 	47	  
			
	 Section 11.15
	 	 Governing Law
	  	 	47	  
			
	 Section 11.16
	 	 Performance
	  	 	47	  
			
	 Section 11.17
	 	 Construction
	  	 	48	  
			
	 Section 11.18
	 	 Effect if Distribution Does Not Occur
	  	 	48	  

  
 -iii- 

 EMPLOYEE MATTERS AGREEMENT 

This EMPLOYEE MATTERS AGREEMENT is entered into as of June 8, 2015 between The Babcock & Wilcox Company, a Delaware corporation
(“RemainCo”), and Babcock & Wilcox Enterprises, Inc., a Delaware corporation (“SpinCo”). RemainCo and SpinCo are sometimes referred to herein, individually, as a “Party,” and, collectively, as the
“Parties.” Capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to such terms in Article I hereof. 

RECITALS 
 WHEREAS, SpinCo
is a wholly owned subsidiary of RemainCo; 
 WHEREAS, the Board of Directors of RemainCo has determined that it would be appropriate and in
the best interests of RemainCo and its stockholders to effectuate the Distribution as described in the Master Separation Agreement between RemainCo and SpinCo dated as of June 8, 2015 (the “Master Separation Agreement”); 

WHEREAS, the Master Separation Agreement provides, among other things, subject to the terms and conditions thereof, for the Distribution and
for the execution and delivery of certain other agreements, including this Agreement, in order to facilitate and provide for the separation of SpinCo and its subsidiaries from RemainCo; and 

WHEREAS, in order to ensure an orderly transition under the Master Separation Agreement, it will be necessary for the Parties to allocate
between them assets, liabilities and responsibilities with respect to certain employee compensation, benefit plans and programs, and certain employment matters. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the Parties, intending to be
legally bound, agree as follows: 
 ARTICLE I  

DEFINITIONS 

Section 1.1 Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1.1:

 “Additional mPower Performance RSUs” has the meaning set forth in Section 3.5(d). 

“Additional RemainCo RSUs” has the meaning set forth in Section 3.3(b). 

“Additional SpinCo RSAs” has the meaning set forth in Section 3.3(d). 

“Additional SpinCo RSUs” has the meaning set forth in Section 3.3(c). 

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

 “Agreement” means this Employee Matters Agreement together with all Schedules hereto
and all amendments, modifications and changes hereto and thereto entered into in accordance with Section 11.10. 
 “Ancillary
Agreements” has the meaning set forth in the Master Separation Agreement. 
 “Benefit Arrangement” means any contract,
agreement, policy, practice, program, plan, trust or arrangement (other than any Welfare Plan, any RemainCo Pension Plan, Thrift Plan, Excess Plan, Restoration Plan, SERP or SPP, any SpinCo Pension Plan, Thrift Plan or Excess Plan, the SpinCo New
Restoration Plan, the SpinCo New SERP, the SpinCo SPP, or any bonus, stock-based compensation or other form of incentive compensation), providing for benefits, perquisites or compensation of any nature to any Employee, or to any family member,
dependent or beneficiary of any such Employee, including, travel and accident, tuition reimbursement, vacation, sick, personal or bereavement days, and holidays. 

“COBRA” means the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Part 6 of Subtitle B of Title I of
ERISA and at Code Section 4980B. 
 “Code” means the U.S. Internal Revenue Code of 1986. 

“Confidential Information” has the meaning set forth in the Master Separation Agreement. 

“Crossover Claim” has the meaning set forth in Section 9.2. 

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

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

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

“Employee” means any RemainCo Employee, Former RemainCo Employee, SpinCo Employee or Former SpinCo Employee. 

“Employee Transfer Date” means June 1, 2015. 

“ERISA” means the U.S. Employee Retirement Income Security Act of 1974. 

“Former RemainCo Employee” has the meaning set forth in Section 2.2(b). 

“Former SpinCo Employee” has the meaning set forth in Section 2.2(c). 

“Grandfathered Foundry Employee” means a Former RemainCo Employee who terminated employment prior to January 1, 2007 while
performing services at SpinCo’s Barberton, Ohio foundry site in the normal course of such employee’s duties. 
 “Initial
Trust Transfer Amount” has the meaning set forth in Section 5.2(d). 
 “Initial Trust Transfer Date” has the meaning set
forth in Section 5.2(d). 

  
 - 2 - 

 “IRS” means the U.S. Internal Revenue Service. 

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

“McDermott EMA” means that certain Employee Matters Agreement dated as of July 2, 2010, by and among McDermott International
Inc., a Pennsylvania corporation, McDermott Investments, LLC, a Delaware limited liability company, RemainCo and Babcock & Wilcox Investment Company, a Delaware corporation, as amended by Amendment to Employee Matters Agreement, dated as of
August 3, 2010, and as further amended by Amendment No. 2 to Employee Matters Agreement, dated as of August 10, 2010. 

“MEGTEC Performance RSU” has the meaning set forth in Section 3.5(e). 

“mPower Performance RSU” has the meaning set forth in Section 3.5(d). 

“Non-U.S. Holder” means a grantee under any of the RemainCo Legacy Equity Plans who is listed on Schedule 1.1(a). 

“NYSE” means the New York Stock Exchange. 

“Participating SpinCo Employers” has the meaning set forth in Section 7.1. 

“Participation Period” has the meaning set forth in Section 7.4(b). 

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

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

“Post-Distribution RemainCo Option” has the meaning set forth in Section 3.4(b). 

“Post-Distribution RemainCo Share Price” means the simple average of the volume weighted average per share price of RemainCo Common
Stock trading on the NYSE on each of the first three trading days following the Distribution Date. 
 “Post-Distribution SpinCo Share
Price” means the simple average of the volume weighted average per share price of SpinCo Common Stock trading on the NYSE on each of the first three trading days following the Distribution Date. 

“Pre-Distribution RemainCo Share Price” means the volume weighted average per share price of RemainCo Common Stock trading
“regular way” on the NYSE on the Distribution Date. 
 “Privacy Contract” means any contract entered into in connection
with applicable privacy protection laws or regulations. 
 “Registration Statement Effectiveness Date” means the first date on
which the applicable registration statement on Form S-1, Form S-8 or another appropriate form as contemplated by Section 11.7 shall be effective under the Securities Act of 1933. 

  
 - 3 - 

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

“RemainCo Actuary” means an enrolled actuary appointed by RemainCo. 

“RemainCo Annuity Contract” means Metropolitan Life Insurance Company Group Annuity Contract Nos: 9088 and 9088A by and between
RemainCo or its Subsidiary and Metropolitan Life Insurance Company, which provide for the payment of pension benefits to certain U.S.-based Former RemainCo Employees and Former SpinCo Employees. 

“RemainCo Benefit Arrangement” means any Benefit Arrangement sponsored or maintained by a member of the RemainCo Group on the
Employee Transfer Date. 
 “RemainCo Business” has the meaning set forth in the Master Separation Agreement. 

“RemainCo Canada Pension Plans” means the RemainCo Canada Salaried Pension Plan and the Babcock & Wilcox Canada Ltd.
Hourly-Paid Employees’ Pension Plan. 
 “RemainCo Canada Salaried Pension Plan” means the Babcock & Wilcox Canada
Ltd. Salaried Employees’ Retirement Plan. 
 “RemainCo Canada Thrift Plan” means the savings arrangement for salaried
employees of Babcock & Wilcox Canada Ltd. and Babcock & Wilcox Power Generation Group Canada Corp. consisting of the Registered Retirement Savings Plan, group policy # 20000796; the Employee Profit Sharing Plan, group policy #
40000796; and the Tax Free Savings account, group policy # 41000007. 
 “RemainCo Common Stock” means the common stock of
RemainCo, par value $0.01 per share. 
 “RemainCo Employee” means any individual who is employed by a member of the RemainCo Group
on the Employee Transfer Date. 
 “RemainCo Entity” has the meaning set forth in the Master Separation Agreement. 

“RemainCo Equity Compensation Award” means each RemainCo RSU, Additional RemainCo RSU, RemainCo RSA, Post-Distribution RemainCo
Option, Replacement RemainCo Unit, mPower Performance RSU, Additional mPower Performance RSU, and MEGTEC Performance RSU. 
 “RemainCo
Excess Plan” means any excess plan sponsored or maintained by any one or more members of the RemainCo Group on the Employee Transfer Date, including each of those set forth on Schedule 1.1(b). 

“RemainCo Governmental Operations Plan” means the Retirement Plan for Employees of Babcock & Wilcox Governmental
Operations. 
 “RemainCo Group” has the meaning set forth in the Master Separation Agreement. 

  
 - 4 - 

 “RemainCo Legacy Award Holders” means the holders of one or more RemainCo RSUs,
RemainCo RSAs, RemainCo Options or performance-based equity awards under any of the RemainCo Legacy Equity Plans who will not be a RemainCo Employee or a SpinCo Employee and will not, as of the Distribution Date, be a member of the Board of
Directors of either RemainCo or SpinCo; provided, however, that the term “RemainCo Legacy Award Holder” shall not include any SpinCo Legacy Award Holder. 

“RemainCo Legacy Equity Plan” means any equity plan sponsored or maintained by a member of the RemainCo Group immediately prior to
the Distribution Date, including each of those set forth on Schedule 1.1(c). 
 “RemainCo Master Trust” means the trust that holds
the commingled assets of the RemainCo U.S. Pension Plans and the SpinCo U.S. Pension Plan. 
 “RemainCo Ohio Guarantees” has the
meaning set forth in the Master Separation Agreement. 
 “RemainCo Options” means options to purchase shares of RemainCo Common
Stock and stock appreciation rights with respect to shares of RemainCo Common Stock, in either case granted pursuant to any of the RemainCo Legacy Equity Plans before the Distribution Date. 

“RemainCo Pension Plans” means the defined benefit retirement plans sponsored and maintained by any one or more members of the
RemainCo Group on the Employee Transfer Date, including the RemainCo Canada Pension Plans and the RemainCo U.S. Pension Plans, but excluding the RemainCo Excess Plan. 

“RemainCo Restoration Plan” means The Babcock & Wilcox Company Defined Contribution Restoration Plan. 

“RemainCo RSAs” means restricted stock awards issued under any of the RemainCo Legacy Equity Plans before the Distribution Date.

 “RemainCo RSUs” means restricted stock units or deferred stock units issued under any of the RemainCo Legacy Equity Plans
before the Distribution Date that are not subject to performance conditions. 
 “RemainCo SERP” means the Supplemental Executive
Retirement Plan of The Babcock & Wilcox Company. 
 “RemainCo SPP” means The Babcock & Wilcox Company
Supplemental Payments Plan. 
 “RemainCo Thrift Plans” means the defined contribution retirement plans sponsored and maintained by
any one or more members of the RemainCo Group on the Employee Transfer Date, including the RemainCo U.S. Thrift Plan, the RemainCo Canada Thrift Plan, the Nuclear Fuel Services Inc. Savings Plan for Hourly Employees, and the NOG-E Hourly
Employees’ Savings Plan, but excluding the RemainCo Restoration Plan and the RemainCo SERP. 

  
 - 5 - 

 “RemainCo Transfer Amount” has the meaning set forth in Section 5.2(c). 

“RemainCo Transfer Date” has the meaning set forth in Section 5.2(a). 

“RemainCo U.S. Pension Plans” means the RemainCo Governmental Operations Plan, the Nuclear Fuel Services, Inc. Retirement Plan for
Salaried Employees and the Nuclear Fuel Services, Inc. Retirement Plan for Hourly Employees. 
 “RemainCo U.S. Pension
Beneficiaries” has the meaning set forth in Section 5.2(a). 
 “RemainCo U.S. Thrift Plan” means The Babcock &
Wilcox Company Thrift Plan. 
 “RemainCo U.S. Thrift Plan Beneficiaries” has the meaning set forth in Section 6.1. 

“RemainCo U.S. Transferred Benefit” has the meaning set forth in Section 5.2(a). 

“RemainCo Welfare Plan” means any Welfare Plan sponsored or maintained by any one or more members of the RemainCo Group on the
Employee Transfer Date. 
 “Replacement MEGTEC Performance RSU” has the meaning set forth in Section 3.5(e). 

“Replacement RemainCo Units” has the meaning set forth in Section 3.5(b). 

“Replacement SpinCo Option” has the meaning set forth in Section 3.4(a). 

“Replacement SpinCo Units” has the meaning set forth in Section 3.5(a). 

“Replacement SpinCo RSUs” has the meaning set forth in Section 3.3(a). 

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

“SpinCo Actuary” means an enrolled actuary appointed by SpinCo. 

“SpinCo Business” has the meaning set forth in the Master Separation Agreement. 

“SpinCo Canada Pension Beneficiaries” has the meaning set forth in Section 5.3. 

“SpinCo Canada Pension Plans” means the SpinCo Canada Salaried Pension Plan, the Diamond CanaPower Pension Plan and the Registered
Pension Plan for Melville Hourly Employees. 
 “SpinCo Canada Salaried Pension Plan” has the meaning set forth in
Section 5.3. 
 “SpinCo Canada Thrift Plan” has the meaning set forth in Section 6.4. 

“SpinCo Canada Thrift Plan Beneficiaries” has the meaning set forth in Section 6.4. 

“SpinCo Canada Transferred Benefit” has the meaning set forth in Section 5.3. 

  
 - 6 - 

 “SpinCo Commercial Operations Plan” means the Retirement Plan for Employees of
Babcock & Wilcox Commercial Operations. 
 “SpinCo Common Stock” means the common stock of SpinCo, par value $0.01 per
share. 
 “SpinCo Employee” means any individual who is employed by a member of the SpinCo Group on the Employee Transfer Date.

 “SpinCo Entity” has the meaning set forth in the Master Separation Agreement. 

“SpinCo Equity Compensation Award” means each Replacement SpinCo RSU, Additional SpinCo RSU, Additional SpinCo RSA, Replacement
SpinCo Option, Replacement SpinCo Unit, and Replacement MEGTEC Performance RSUs. 
 “SpinCo Excess Plan” means any excess plan
sponsored or maintained by any one or more members of the SpinCo Group on the Employee Transfer Date, including each of those set forth on Schedule 1.1(d). 

“SpinCo FSA” has the meaning set forth in Section 7.4(b). 

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

“SpinCo Legacy Award Holders” means the holders of one or more RemainCo RSUs, RemainCo RSAs, RemainCo Options or performance-based
equity awards under any of the RemainCo Legacy Equity Plans who are former employees of a member of the SpinCo Group (and will not be SpinCo Employees or RemainCo Employees and will not, immediately after the Distribution Date, serve on the Board of
Directors of either RemainCo or SpinCo) and are listed on Schedule 1.1(e). 
 “SpinCo Master Trust” has the meaning set forth in
Section 5.2(d). 
 “SpinCo New Equity Plan” means the plan or plans adopted by SpinCo and approved by RemainCo, as sole
stockholder of SpinCo prior to the Distribution, as set forth on Schedule 1.1(f), under which the SpinCo equity-based awards described in Article III shall be issued. 

“SpinCo New Restoration Plan” means the defined contribution restoration plan adopted by SpinCo prior to the Distribution. 

“SpinCo New SERP” means the supplemental executive retirement plan adopted by SpinCo prior to the Distribution. 

“SpinCo Ohio Guarantees” has the meaning set forth in the Master Separation Agreement. 

“SpinCo Pension Plans” means the defined benefit retirement plans sponsored and maintained by any one or more members of the SpinCo
Group on the Employee Transfer Date, including the SpinCo Canada Pension Plans, the SpinCo U.S. Pension Plan and the Diamond Power Specialty Limited Retirement Benefits Plan, but excluding the SpinCo Excess Plan. 

  
 - 7 - 

 “SpinCo SPP” has the meaning set forth in Section 5.4(d). 

“SpinCo Thrift Plans” means the defined contribution retirement plans sponsored and maintained by any one or more member of the
SpinCo Group on the Employee Transfer Date, including the SpinCo U.S. Thrift Plan and the SpinCo Canada Thrift Plan, but excluding the SpinCo New Restoration Plan and the SpinCo New SERP. 

“SpinCo Transfer Amount” has the meaning set forth in Section 5.2(c). 

“SpinCo Transfer Date” has the meaning set forth in Section 5.2(a). 

“SpinCo U.S. Pension Beneficiaries” has the meaning set forth in Section 5.2(a). 

“SpinCo U.S. Pension Plan” means the SpinCo Commercial Operations Plan. 

“SpinCo U.S. Thrift Plan” has the meaning set forth in Section 6.1. 

“SpinCo U.S. Thrift Plan Beneficiaries” has the meaning set forth in Section 6.1. 

“SpinCo U.S. Transferred Benefit” has the meaning set forth in Section 5.2(a). 

“SpinCo Welfare Plan” means any Welfare Plan sponsored or maintained by any one or more members of the SpinCo Group on the Employee
Transfer Date. 
 “SpinCo Welfare Plan Participants” has the meaning set forth in Section 7.1. 

“Subsidiary” has the meaning set forth in the Master Separation Agreement. 

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

“True Up Payment” has the meaning set forth in Section 5.2(d). 

“Trust Transfer Date” has the meaning set forth in Section 5.2(f). 

“Value” has the meaning set forth in Section 5.2(e). 

“VEBA” has the meaning set forth in Section 7.3. 

“WARN” means the U.S. Worker Adjustment and Retraining Notification Act, and any applicable state or local law equivalent. 

“Welfare Plan” means a “welfare plan” as defined in ERISA Section 3(1) and also means a cafeteria plan under Code
Section 125 and any benefits offered thereunder, including pre-tax premium conversion benefits, a dependent care assistance program, contribution funding toward a health savings account and flex or cashable credits. 

  
 - 8 - 

 Section 1.2 Interpretation. In this Agreement, unless the context clearly indicates
otherwise: 
 (a) words used in the singular include the plural and words used in the plural include the singular; 

(b) if a word or phrase is defined in this Agreement, its other grammatical forms, as used in this Agreement, shall have a
corresponding meaning; 
 (c) reference to any gender includes the other gender and the neuter; 

(d) the words “include,” “includes” and “including” shall be deemed to be followed by the words
“without limitation”; 
 (e) the words “shall” and “will” are used interchangeably and have the
same meaning; 
 (f) the word “or” shall have the inclusive meaning represented by the phrase “and/or”;

 (g) relative to the determination of any period of time, “from” means “from and including,”
“to” means “to but excluding” and “through” means “through and including”; 
 (h) all
references to a specific time of day in this Agreement shall be based upon Eastern Standard Time or Eastern Daylight Savings Time, as applicable, on the date in question; 

(i) whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are
specified; 
 (j) accounting terms used herein shall have the meanings historically ascribed to them by RemainCo and its
Subsidiaries, including SpinCo for this purpose, in its and their internal accounting and financial policies and procedures in effect immediately prior to the date of this Agreement; 

(k) reference to any Article, Section or Schedule means such Article or Section of, or such Schedule to, this Agreement, as the
case may be, and references in any Section or definition to any clause means such clause of such Section or definition; 

(l) the words “this Agreement,” “herein,” “hereunder,” “hereof,” “hereto” and
words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision of this Agreement; 

(m) the term “commercially reasonable efforts” means efforts which are commercially reasonable to enable a Party,
directly or indirectly, to satisfy a condition to or otherwise assist in the consummation of a desired result and which do not require the performing Party to expend funds or assume liabilities other than expenditures and liabilities which are
customary and reasonable in nature and amount in the context of a series of related transactions similar to the Separation; 

  
 - 9 - 

 (n) reference to any agreement, instrument or other document means such
agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement; 

(o) reference to any Law (including statutes and ordinances) means such Law (including any and all rules and regulations
promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability; 

(p) references to any Person include such Person’s successors and assigns but, if applicable, only if such successors and
assigns are permitted by this Agreement; and any reference to a third party shall be deemed to mean a Person who is not a Party or an Affiliate of a Party; 

(q) if there is any conflict between the provisions of the main body of this Agreement and the Schedules hereto, the provisions
of the main body of this Agreement shall control unless explicitly stated otherwise in such Schedule; 
 (r) unless otherwise
specified in this Agreement, all references to dollar amounts herein shall be in respect of lawful currency of the U.S.; 

(s) the titles to Articles and headings of Sections contained in this Agreement and in any Schedule and in the table of
contents to this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement; and 

(t) any portion of this Agreement obligating a Party to take any action or refrain from taking any action, as the case may be,
shall mean that such Party shall also be obligated to cause its relevant Subsidiaries to take such action or refrain from taking such action, as the case may be. 

ARTICLE II 
 ASSIGNMENT
OF EMPLOYEES 
 Section 2.1 Active Employees. 

(a) SpinCo Employees. Except as otherwise set forth in this Agreement, effective as of the Employee Transfer Date, the
employment of the SpinCo Employees will commence with or be continued by a member of the SpinCo Group. Each of the Parties agrees to execute, and to seek to have the applicable employees execute, such documentation as may be necessary to reflect
such assignments and transfers. 
 (b) RemainCo Employees. Except as otherwise set forth in this Agreement, effective
as of the Employee Transfer Date, the employment of the RemainCo Employees will 

  
 - 10 - 

 
commence with or be continued by a member of the RemainCo Group. Each of the Parties agrees to execute, and to seek to have the applicable employees execute, such documentation as may be
necessary to reflect such assignments and transfers. 
 (c) At-Will Status. Notwithstanding the above or any other
provision of this Agreement, nothing in this Agreement shall create any obligation on the part of any member of the RemainCo Group or any member of the SpinCo Group to continue the employment of any employee for any period following the date of this
Agreement or the Distribution or to change the employment status of any employee from “at will,” to the extent such employee is an “at will” employee under applicable law. 

(d) Severance. The Distribution and the assignment, transfer or continuation of the employment of employees as
contemplated by this Section 2.1 shall not be deemed a severance of employment of any employee for purposes of this Agreement and, except as otherwise provided in Section 6.2, any plan, policy, practice or arrangement of any member of the
RemainCo Group or any member of the SpinCo Group. 
 (e) Change of Control/Change in Control. Neither the completion
of the Distribution nor any transaction in connection with the Distribution shall be deemed a “change of control” or “change in control” for purposes of any plan, policy, practice or arrangement relating to directors, employees
or consultants of any member of the RemainCo Group or any member of the SpinCo Group. 
 Section 2.2 Former Employees. 

(a) General Principles. Except as otherwise provided in this Agreement, each former employee of any member of the
RemainCo Group or any member of the SpinCo Group as of the Employee Transfer Date will be considered a former employee of the RemainCo Group or the SpinCo Group based on his employer as of his last day of employment with any RemainCo Entity or
SpinCo Entity. 
 (b) Former RemainCo Employees. For purposes of this Agreement, former employees of the RemainCo
Group shall be deemed to include (i) all employees who, as of their last day of employment, were employed by a RemainCo Entity and will not be either a SpinCo Employee or a RemainCo Employee and (ii) all employees who are categorized as
“Former B&W Employees” for purposes of the McDermott EMA by the parties to such agreement and who will not be a SpinCo Employee, a RemainCo Employee or a Former SpinCo Employee as of the Employee Transfer Date (collectively, the
“Former RemainCo Employees”). 
 (c) Former SpinCo Employees. For purposes of this Agreement, former
employees of the SpinCo Group shall be deemed to include all employees who, as of their last day of employment, were employed by a SpinCo Entity and will not be either a SpinCo Employee or a RemainCo Employee (collectively, the “Former SpinCo
Employees”). 

  
 - 11 - 

 Section 2.3 Employment Law Obligations. 

(a) WARN Act. Effective as of the Employee Transfer Date, (i) the RemainCo Group shall be responsible for providing
any necessary WARN notice (and meeting any similar state law notice requirements) with respect to any termination of any RemainCo Employee and (ii) the SpinCo Group shall be responsible for providing any necessary WARN notice (and meeting any
similar state law notice requirements) with respect to any termination of any SpinCo Employee. 
 (b) Compliance With
Employment Laws. Effective as of the Employee Transfer Date, (i) each member of the RemainCo Group shall be responsible for adopting and maintaining any policies or practices, and for all other actions and inactions, necessary to comply
with employment-related laws and requirements relating to the employment of its RemainCo Employees and the treatment of any applicable Former RemainCo Employees in respect of their former employment, and (ii) each member of the SpinCo Group
shall be responsible for adopting and maintaining any policies or practices, and for all other actions and inactions, necessary to comply with employment-related laws and requirements relating to the employment of its SpinCo Employees and the
treatment of any applicable Former SpinCo Employees in respect of their former employment. 
 Section 2.4 Employee Records. 

(a) Records Relating to RemainCo Employees and Former RemainCo Employees. All records and data in any form relating to
RemainCo Employees and Former RemainCo Employees shall be the property of the RemainCo Group, except that records and data pertaining to such an employee and relating to any period that such employee was (i) employed by any member of the SpinCo
Group or (ii) covered under any employee benefit plan sponsored by any member of the SpinCo Group (to the extent that such records or data relate to such coverage) prior to the Employee Transfer Date shall be jointly owned by those members of
the SpinCo Group and the RemainCo Group. 
 (b) Records Relating to SpinCo Employees and Former SpinCo Employees. All
records and data in any form relating to SpinCo Employees and Former SpinCo Employees shall be the property of the SpinCo Group, except that records and data pertaining to such an employee and relating to any period that such employee was
(i) employed by any member of the RemainCo Group or (ii) covered under any employee benefit plan sponsored by any member of the RemainCo Group (to the extent that such records or data relate to such coverage) prior to the Employee Transfer
Date shall be jointly owned by those members of the RemainCo Group and the SpinCo Group. 
 (c) Sharing of Records.
The Parties shall use their respective commercially reasonable efforts to provide the other Party such employee-related records and information as necessary or appropriate to carry out their respective obligations under applicable law (including any
relevant privacy protection laws or regulations in any applicable jurisdictions or Privacy Contract), this Agreement, any other Ancillary Agreement or the Master Separation Agreement, and for the purposes of administering their respective employee
benefit plans and policies. All information and records regarding employment, personnel and employee benefit 

  
 - 12 - 

 
matters of RemainCo Employees and Former RemainCo Employees shall be accessed, retained, held, used, copied and transmitted on and after the Employee Transfer Date by members of the RemainCo
Group in accordance with all applicable laws, policies and Privacy Contracts relating to the collection, storage, retention, use, transmittal, disclosure and destruction of such records. All information and records regarding employment, personnel
and employee benefit matters of SpinCo Employees and Former SpinCo Employees shall be accessed, retained, held, used, copied and transmitted on and after the Employee Transfer Date by members of the SpinCo Group in accordance with all applicable
laws, policies and Privacy Contracts relating to the collection, storage, retention, use, transmittal, disclosure and destruction of such records. 

(d) Access to Records. To the extent not inconsistent with this Agreement and any applicable privacy protection laws or
regulations or Privacy Contracts, access to such records on and after the Employee Transfer Date will be provided to members of the RemainCo Group and members of the SpinCo Group in accordance with the Master Separation Agreement. In addition,
notwithstanding anything to the contrary, the RemainCo Group shall be provided reasonable access to those records necessary for their administration of any plans or programs on behalf of RemainCo Employees and Former RemainCo Employees on and after
the Employee Transfer Date as permitted by any applicable privacy protection laws or regulations or Privacy Contracts. The RemainCo Group shall also be permitted to retain copies of all restrictive covenant agreements with any SpinCo Employee or
Former SpinCo Employee in which any member of the RemainCo Group has a valid business interest. In addition, the SpinCo Group shall be provided reasonable access to those records necessary for their administration of any plans or programs on behalf
of SpinCo Employees and Former SpinCo Employees on and after the Employee Transfer Date as permitted by any applicable privacy protection laws or regulations or Privacy Contracts. The SpinCo Group shall also be permitted to retain copies of all
restrictive covenant agreements with any RemainCo Employee or Former RemainCo Employee in which any member of the SpinCo Group has a valid business interest. 

(e) Maintenance of Records. With respect to retaining, destroying, transferring, sharing, copying and permitting access
to all such information, RemainCo and SpinCo shall (and shall cause their respective Subsidiaries to) comply with all applicable laws, regulations, Privacy Contracts and internal policies, and shall indemnify and hold harmless each other from and
against any and all liability, claims, actions, and damages that arise from a failure (by the indemnifying party or its Subsidiaries or their respective agents) to so comply with all applicable laws, regulations, Privacy Contracts and internal
policies applicable to such information. 
 (f) No Access to Computer Systems or Files. Except as set forth in the
Master Separation Agreement or any Ancillary Agreement, no provision of this Agreement shall give (i) any member of the RemainCo Group direct access to the computer systems or other files, records or databases of any member of the SpinCo Group
or (ii) any member of the SpinCo Group direct access to the computer systems or other files, records or databases of any member of the RemainCo Group, unless specifically permitted by the owner of such systems, files, records or databases. 

  
 - 13 - 

 (g) Relation to Master Separation Agreement. The provisions of this
Section 2.4 shall be in addition to, and not in derogation of, the provisions of the Master Separation Agreement governing Confidential Information, including Sections 6.3, 6.4 and 6.5 of the Master Separation Agreement. 

(h) Confidentiality. Except as otherwise set forth in this Agreement, all records and data relating to Employees shall,
in each case, be subject to the confidentiality provisions of the Master Separation Agreement and any other applicable agreement and applicable law. 

(i) Cooperation. Each Party shall use commercially reasonable efforts to cooperate to share, retain and maintain data
and records that are necessary or appropriate to further the purposes of this Section 2.4 and for each Party to administer its respective benefit plans to the extent consistent with this Agreement and applicable law, and each Party agrees to
cooperate as long as is reasonably necessary to further the purposes of this Section 2.4. Except as provided under any Ancillary Agreement, no Party shall charge another Party a fee for such cooperation. 

ARTICLE III 
 EQUITY AND
INCENTIVE COMPENSATION PLANS 
 Section 3.1 General Principles. 

(a) For the avoidance of doubt, the provisions of this Article III shall not apply unless the Distribution takes place.
RemainCo and SpinCo shall take any and all reasonable action as shall be necessary and appropriate to further the provisions of this Article III. 

(b) Where an award granted under one of the RemainCo Legacy Equity Plans is replaced by an award under the SpinCo New Equity
Plan in accordance with the provisions of this Article III, such award generally shall be on terms which are in all material respects identical to the terms of the award which it replaces (including any requirements of continued employment) but
subject to any necessary changes to take into account (i) that the award relates to SpinCo Common Stock, (ii) that the SpinCo New Equity Plan is administered by SpinCo, (iii) if applicable, that the grantee under the award is employed
or affiliated with a new employer or plan sponsor, and (iv) the adjustments required by this Article III. Where an award granted under one of the RemainCo Legacy Equity Plans is adjusted in accordance with the provisions of this Article III,
such award shall otherwise continue to retain the same terms and conditions of the original award, subject to any necessary changes to take into account that the grantee under the award is employed or affiliated with a new employer or plan sponsor,
if applicable, and the adjustments required by this Article III. 
 (c) Subject to Section 3.10, following the
Distribution, a grantee who has outstanding awards under one or more of the RemainCo Legacy Equity Plans and/or replacement awards under the SpinCo New Equity Plan shall be considered to have been employed by the applicable plan sponsor before and
after the Distribution for purposes of (i) vesting and (ii) determining the date of termination of employment as it applies to any such award. 

  
 - 14 - 

 (d) No award described in this Article III, whether outstanding or to be issued,
adjusted, substituted or cancelled by reason of or in connection with the Distribution, shall be adjusted, settled, cancelled, or exercisable, until in the judgment of the administrator of the applicable plan or program such action is consistent
with all applicable law, including federal securities laws. Any period of exercisability will not be extended on account of a period during which such an award is not exercisable in accordance with the preceding sentence. 

(e) Except as otherwise expressly provided in this Article III, from and after the Distribution Date, (i) SpinCo shall
have sole responsibility for the administration of the SpinCo New Equity Plan and the settlement of the SpinCo Equity Compensation Awards, and no member of the RemainCo Group shall have any liability or responsibility therefor, and (ii) the
appropriate member of the RemainCo Group shall have sole responsibility for the administration of the RemainCo Legacy Equity Plans and the settlement of the RemainCo Equity Compensation Awards, and no member of the SpinCo Group shall have any
liability or responsibility therefor. Notwithstanding the foregoing, SpinCo and its designees shall have exclusive authority and discretion with respect to all employment-related determinations or decisions required or permitted to be made by the
applicable sponsor, administrator or employer entity under the terms of the RemainCo Legacy Equity Plans with respect to RemainCo Equity Compensation Awards held by SpinCo Employees, and RemainCo and its designees shall have exclusive authority and
discretion with respect to all employment-related determinations or decisions required or permitted to be made by the applicable sponsor, administrator or employer entity under the terms of the SpinCo New Equity Plan with respect to SpinCo Equity
Compensation Awards held by RemainCo Employees. RemainCo and SpinCo agree to administer the RemainCo Equity Compensation Awards and SpinCo Equity Compensation Awards, respectively, in accordance with any determination or decision made by the other
Party in accordance with the preceding sentence upon reasonable notice of such determination or decision. 
 (f)
Notwithstanding Section 3.1(e), in the case of any outstanding RemainCo Equity Compensation Awards or SpinCo Equity Compensation Awards with respect to which (i) the award is vested as of the Distribution Date (or to the extent partially
vested as of the Distribution Date) and (ii) a valid deferral election is in effect as of the Distribution Date, (x) RemainCo (or one or more members of the RemainCo Group, as designated by RemainCo) shall have sole responsibility for the
settlement of those SpinCo Equity Compensation Awards held by RemainCo Legacy Award Holders, RemainCo Employees or, as of the Distribution Date, members of the Board of Directors of RemainCo and (y) SpinCo (or one or more members of the SpinCo
Group, as designated by SpinCo) shall have sole responsibility for the settlement of those RemainCo Equity Compensation Awards held by Spinco Legacy Award Holders, SpinCo Employees or, as of the Distribution Date, members of the Board of Directors
of SpinCo. 
 Section 3.2 Tax Reporting and Withholding; Payment of Option Exercise Price. 

(a) SpinCo (or one or more members of the SpinCo Group, as designated by SpinCo) shall be responsible for (i) the
satisfaction of all tax reporting and withholding requirements in respect of the issuance, vesting or settlement, on or after the Distribution Date, of RemainCo Equity Compensation Awards and SpinCo Equity Compensation Awards held by

  
 - 15 - 

 
SpinCo Legacy Award Holders, SpinCo Employees and, as of the Distribution Date, members of the Board of Directors of SpinCo and (ii) remitting the appropriate tax or withholding amounts to
the appropriate taxing authorities in respect of the distribution and vesting of all such awards. 
 (b) RemainCo (or one or
more members of the RemainCo Group, as designated by RemainCo) shall be responsible for (i) the satisfaction of all tax reporting and withholding requirements in respect of the issuance, vesting or settlement, on or after the Distribution Date,
of RemainCo Equity Compensation Awards and SpinCo Equity Compensation Awards held by RemainCo Legacy Award Holders, RemainCo Employees and, as of the Distribution Date, members of the Board of Directors of RemainCo and (ii) remitting the
appropriate tax or withholding amounts to the appropriate taxing authorities in respect of the distribution and vesting of all such awards. 

(c) Upon the exercise of a Post-Distribution RemainCo Option or a Replacement SpinCo Option, the exercise price of such stock
option will be remitted in cash by the option administrator to the issuer of the option (the appropriate member of the RemainCo Group or the SpinCo Group, as applicable) and the applicable withholding taxes of such stock option or stock appreciation
right will be remitted in cash by the option administrator to the entity (the appropriate member of the RemainCo Group or the SpinCo Group, as applicable) responsible for payroll taxes, withholding and reporting with respect to the option pursuant
to this Section 3.2. Upon vesting or payment, as applicable, of RemainCo RSUs, Additional RemainCo RSUs, RemainCo RSAs, Replacement RemainCo Units, mPower Performance RSUs, Additional mPower Performance RSUs, MEGTEC Performance RSUs,
Replacement SpinCo RSUs, Additional SpinCo RSUs, Additional SpinCo RSAs, Replacement SpinCo Units, and Replacement MEGTEC Performance RSUs, the applicable withholding will be remitted in cash by the administrator to the entity (the appropriate
member of the RemainCo Group or the SpinCo Group, as applicable) responsible for payroll taxes, withholding and reporting with respect to such awards pursuant to this Section 3.2. To the extent necessary to provide the withholding amount in
cash to the entity responsible for payroll taxes, withholding, and reporting (e.g., in the case of share withholding), the issuer of the applicable award will provide the withholding amount in cash. Notwithstanding the foregoing, the method
of remittance of the exercise price of any stock option or any applicable withholding taxes may vary for legal or administrative reasons. 

(d) Each Party shall use commercially reasonable efforts to cooperate to share, retain and maintain data and records that are
necessary or appropriate to further the purposes of this Section 3.2, and each Party agrees to cooperate as long as is reasonably necessary to further the purposes of this Section 3.2. Except as provided under any Ancillary Agreement, no
Party shall charge another Party a fee for such cooperation. 
 Section 3.3 Restricted Stock Units and Restricted Stock. 

(a) 2015 RSUs and Non-U.S. Awards—SpinCo Holders. Each SpinCo Legacy Award Holder and each grantee under any of the
RemainCo Legacy Equity Plans who will be a SpinCo Employee, in either case who holds, as of the Distribution Date, one or more RemainCo RSUs (excluding RemainCo RSUs granted in respect of service on the Board of

  
 - 16 - 

 
Directors of RemainCo) that were granted (i) on or after January 1, 2015 or (ii) to a Non-U.S. Holder, shall receive, effective as of the Distribution Date and immediately prior to
the Distribution, as a replacement award in substitution for each such RemainCo RSU (which shall be cancelled), a number of restricted or deferred (as applicable) stock units with respect to and payable in shares of SpinCo Common Stock or (if, but
only if, provided for under the terms of the applicable RemainCo RSU) cash (“Replacement SpinCo RSUs”) under the SpinCo New Equity Plan having a value immediately after the Distribution Date equal to the value of the shares of RemainCo
Common Stock subject to the RemainCo RSU (calculated using the Pre-Distribution RemainCo Share Price), as calculated pursuant to the following provisions. In each case, the number of Replacement SpinCo RSUs shall be equal to (x) divided by (y),
where (x) is the Pre-Distribution RemainCo Share Price multiplied by the number of RemainCo RSUs that are being cancelled and replaced pursuant to this Section 3.3(a), and (y) is the Post-Distribution SpinCo Share Price, with the
resulting number of Replacement SpinCo RSUs being rounded up or down to the nearest whole unit. Except as provided in the foregoing provisions of this Section 3.3(a), Replacement SpinCo RSUs shall be granted on terms which are in all material
respects identical (including with respect to vesting) to the terms of the RemainCo RSUs which they replace. 
 (b) 2015
RSUs and Non-U.S. Awards—RemainCo Holders. Each RemainCo Legacy Award Holder and each grantee under any of the RemainCo Legacy Equity Plans who will be a RemainCo Employee, in either case who holds, as of the Distribution Date, one or more
RemainCo RSUs (excluding RemainCo RSUs granted in respect of service on the Board of Directors of RemainCo) that were granted (i) on or after January 1, 2015 or (ii) to a Non-U.S. Holder, shall receive, effective as of the
Distribution Date and immediately prior to the Distribution, for each such award of RemainCo RSUs (in lieu of receiving any SpinCo restricted or deferred stock units in connection with such RemainCo RSUs), a number of additional restricted or
deferred (as applicable) stock units with respect to and payable in RemainCo Common Stock or (if, but only if, provided for under the terms of the applicable RemainCo RSU) cash (the “Additional RemainCo RSUs”), under one of the RemainCo
Legacy Equity Plans. In each case, the number of shares of RemainCo Common Stock subject to an award of Additional RemainCo RSUs shall be equal to the product of (x) and (y), where (x) is the number of shares of RemainCo Common Stock
covered by the original award of RemainCo RSUs and (y) is equal to (a) the Pre-Distribution RemainCo Share Price minus the Post-Distribution RemainCo Share Price, divided by (b) the Post-Distribution RemainCo Share Price, with the
resulting number of shares subject to the Additional RemainCo RSUs being rounded up or down to the nearest whole share. Except as provided in the foregoing provisions of this Section 3.3(b), Additional RemainCo RSUs shall be granted on such
terms which are in all material respects identical (including with respect to vesting) to the terms of the RemainCo RSUs with respect to which they are granted. 

(c) Pre-2015 RSUs and Director RSUs. Each grantee under any of the RemainCo Legacy Equity Plans (other than a Non-U.S.
Holder) who holds, as of the Distribution Date, one or more RemainCo RSUs that were granted (i) prior to January 1, 2015 or (ii) in respect of such holder’s service on the Board of Directors of RemainCo shall receive, effective
as of the Distribution Date and immediately prior to the Distribution, for each such award of RemainCo RSUs, an additional number of restricted or deferred (as applicable) stock units with respect to and payable in shares of SpinCo Common Stock or
(if, but only if, provided for under the 

  
 - 17 - 

 
terms of the applicable RemainCo RSU) cash (the “Additional SpinCo RSUs”) under the SpinCo New Equity Plan. In each case, the number of shares of SpinCo Common Stock subject to an award
of Additional SpinCo RSUs shall be equal to the number of shares of SpinCo Common Stock that would have been distributed in the Distribution with respect to the number of shares of RemainCo Common Stock subject to the grantee’s RemainCo RSUs,
with the resulting number of shares subject to the Additional SpinCo RSU being rounded up or down to the nearest whole share. Except as provided in the foregoing provisions of this Section 3.3(c), Additional SpinCo RSUs shall be granted on
terms which are in all material respects identical (including with respect to vesting) to the terms of the RemainCo RSUs with respect to which they are granted. 

(d) Restricted Stock Awards. Each grantee under any of the RemainCo Legacy Equity Plans who holds, as of the
Distribution Date, one or more RemainCo RSAs that are unvested as of the Distribution Date will generally receive, as of the Distribution Date and pursuant to the Distribution, for each such award of RemainCo RSAs, a number of restricted shares of
SpinCo Common Stock (the “Additional SpinCo RSAs”) determined in the same manner as for other shareholders of RemainCo Common Stock based on the Distribution Multiple, with the value of any fractional share paid to the holder in cash, less
any applicable taxes, as soon as practicable following the Distribution Date, except to the extent that such cash payment would result in adverse tax consequences to the holder under Section 409A of the Code. Except as provided in the foregoing
provisions of this Section 3.3(d), Additional SpinCo RSAs shall be subject to the SpinCo New Equity Plan and subject to terms which are in all material respects identical (including with respect to vesting) to the terms of the RemainCo RSAs to
which they relate. 
 Section 3.4 Stock Options and Stock Appreciation Rights. 

(a) 2015 Awards and Non-U.S. Awards—SpinCo Holders. Each grantee under any of the RemainCo Legacy Equity Plans
(i) who is a SpinCo Legacy Award Holder or will be a SpinCo Employee, or who will not be a SpinCo Employee but will serve on the Board of Directors of SpinCo immediately after the Distribution Date, and (ii) who holds as of the
Distribution Date one or more RemainCo Options that were granted (A) on or after January 1, 2015 or (B) to a Non-U.S. Holder, shall receive, effective as of the Distribution Date and immediately prior to the Distribution, as a
replacement award in substitution for each such RemainCo Option (which shall be cancelled), an option to purchase a number of shares of SpinCo Common Stock or stock appreciation right with respect to a number of shares of SpinCo Common Stock, as
applicable, under the SpinCo New Equity Plan (a “Replacement SpinCo Option”) having a value (calculated using the Post-Distribution SpinCo Share Price) equal to the value of the shares of RemainCo Common Stock subject to the RemainCo
Option (calculated using the Pre-Distribution RemainCo Share Price), as calculated pursuant to the following provisions. The number of shares of SpinCo Common Stock subject to a Replacement SpinCo Option shall be equal to the product of (x) the
number of shares of RemainCo Common Stock subject to a RemainCo Option as of the Distribution Date and (y) a fraction, the numerator of which is the Pre-Distribution RemainCo Share Price and the denominator of which is the Post-Distribution
SpinCo Share Price, with the resulting number of shares subject to the Replacement SpinCo Option being rounded down to the nearest whole share. Each such Replacement SpinCo Option shall have the same comparative ratio of the

  
 - 18 - 

 
exercise price to the Post-Distribution SpinCo Share Price as the exercise price of each RemainCo Option to the Pre-Distribution RemainCo Share Price, provided that the exercise price for the
Replacement SpinCo Option shall be rounded up to the nearest whole cent. Replacement SpinCo Options shall not be exercisable until the Registration Statement Effectiveness Date. Except as provided in the foregoing provisions of this
Section 3.4(a), Replacement SpinCo Options granted under this Section 3.4(a) shall be granted on terms which are in all material respects identical (including with respect to vesting) to the terms of the RemainCo Options which they
replace. 
 (b) 2015 Awards and Non-U.S. Awards—RemainCo Holders. Each grantee under any of the RemainCo Legacy
Equity Plans (i) who is a RemainCo Legacy Award Holder or will be a RemainCo Employee, or who will not be a RemainCo Employee but will serve on the Board of Directors of RemainCo immediately after the Distribution Date, and (ii) who holds
as of the Distribution Date one or more RemainCo Options that were granted (A) on or after January 1, 2015 or (B) to a Non-U.S. Holder, shall receive, effective as of the Distribution Date and immediately prior to the Distribution, in
substitution for each such RemainCo Option (which shall be cancelled), an option to purchase a number of shares of RemainCo Common Stock or a stock appreciation right with respect to a number of shares of RemainCo Common Stock, as applicable, under
one of the RemainCo Legacy Equity Plans (a “Post-Distribution RemainCo Option”) having a value (calculated using the Post-Distribution RemainCo Share Price) equal to the value of the shares of RemainCo Common Stock subject to the RemainCo
Option (calculated using the Pre-Distribution RemainCo Share Price), as calculated pursuant to the following provisions. The number of shares of RemainCo Common Stock subject to a Post-Distribution RemainCo Option shall be equal to the product of
(x) the number of shares of RemainCo Common Stock subject to a RemainCo Option as of the Distribution Date and (y) a fraction, the numerator of which is the Pre-Distribution RemainCo Share Price and the denominator of which is the
Post-Distribution RemainCo Share Price, with the resulting number of shares subject to the Post-Distribution RemainCo Option being rounded down to the nearest whole share. Each such Post-Distribution RemainCo Option shall have the same comparative
ratio of the exercise price to the Post-Distribution RemainCo Share Price as the exercise price of each RemainCo Option to the Pre-Distribution RemainCo Share Price, provided that the exercise price for the Post-Distribution RemainCo Option shall be
rounded up to the nearest whole cent. Except as provided in the foregoing provisions of this Section 3.4(b), Post-Distribution RemainCo Options shall be granted on terms which are in all material respects identical (including with respect to
vesting) to the terms of the RemainCo Options which they replace. 
 (c) Pre-2015 Awards. Each grantee under any of
the RemainCo Legacy Equity Plans (other than a Non-U.S. Holder) who holds as of the Distribution Date one or more RemainCo Options that were granted prior to January 1, 2015 shall receive, effective as of the Distribution Date and immediately
prior to the Distribution, in substitution for each such RemainCo Option (which shall be cancelled), both a Replacement SpinCo Option with respect to shares of SpinCo Common Stock and a Post-Distribution RemainCo Option with respect to shares of
RemainCo Common Stock, with such shares of SpinCo Common Stock and RemainCo Common Stock having an aggregate value (calculated using the Post-Distribution RemainCo Share Price and the Post-Distribution SpinCo Share Price) equal to the value of the
shares of RemainCo Common Stock subject to the RemainCo Option (calculated using the Pre-

  
 - 19 - 

 
Distribution RemainCo Share Price), as calculated pursuant to the following provisions. In each case, the number of shares of RemainCo Common Stock subject to a Post-Distribution RemainCo Option
shall be equal to the product of (x) the number of shares of RemainCo Common Stock subject to a RemainCo Option as of the Distribution Date and (y) a fraction, the numerator of which is the Pre-Distribution RemainCo Share Price and the
denominator of which is the sum of (I) the product of the Distribution Multiple and the Post-Distribution SpinCo Share Price and (II) the Post-Distribution RemainCo Share Price, with the resulting number of shares subject to the
Post-Distribution RemainCo Option being rounded down to the nearest whole share. In each case, the number of shares of SpinCo Common Stock subject to a Replacement SpinCo Option shall be equal to the product of (x) the number of shares of
RemainCo Common Stock subject to a RemainCo Option as of the Distribution Date and (y) a fraction, the numerator of which is the Pre-Distribution RemainCo Share Price and the denominator of which is the sum of (I) the quotient obtained by
dividing the Post-Distribution RemainCo Share Price by the Distribution Multiple and (II) the Post-Distribution SpinCo Share Price, with the resulting number of shares subject to the Replacement SpinCo Option being rounded down to the nearest whole
share. Each of the Replacement SpinCo Options and the Post-Distribution RemainCo Options shall have the same comparative ratio of the exercise price to the Post-Distribution SpinCo Share Price and Post-Distribution RemainCo Share Price,
respectively, as the exercise price of the RemainCo Option being replaced to the Pre-Distribution RemainCo Share Price, provided that the exercise price for each Replacement SpinCo Option and each Post-Distribution RemainCo Option shall be rounded
up to the nearest whole cent. Replacement SpinCo Options shall not be exercisable until the Registration Statement Effectiveness Date. Except as provided in the foregoing provisions of this Section 3.4(c), Replacement SpinCo Options and
Post-Distribution RemainCo Options shall be granted on such terms which are in all material respects identical (including with respect to vesting) to the terms of the RemainCo Options with respect to which they are granted. 

(d) Notwithstanding anything to the contrary in this Section 3.4, the exercise price, the number of shares of RemainCo
Common Stock and SpinCo Common Stock subject to each Post-Distribution RemainCo Option and Replacement SpinCo Option, and the terms and conditions of exercise of such options shall be determined in a manner consistent with the requirements of
Section 409A of the Code. For purposes of Section 409A of the Code, the Pre-Distribution RemainCo Share Price shall be treated as the fair market value of a share of RemainCo Common Stock immediately prior to the substitutions described in
this Section 3.4 and the Post-Distribution RemainCo Share Price and the Post-Distribution SpinCo Share Price shall be treated as the fair market value of a share of RemainCo Common Stock and the fair market value of a share of SpinCo Common
Stock, respectively, immediately after such substitutions. 
 Section 3.5 Performance-Based Awards. 

(a) Non-U.S. Awards—SpinCo Holders. Each SpinCo Legacy Award Holder and each grantee under any of the RemainCo
Legacy Equity Plans who will be a SpinCo Employee, in either case who holds, as of the Distribution Date, one or more performance-based equity awards that were granted to a Non-U.S. Holder (excluding any mPower Performance RSUs and MEGTEC
Performance RSUs), shall receive, effective as of the Distribution Date and immediately prior to the Distribution, as a replacement award in 

  
 - 20 - 

 
substitution for each such performance-based award (which shall be cancelled), a number of restricted or deferred stock units, as applicable, with respect to and payable in shares of SpinCo
Common Stock or (if, but only if, provided for under the terms of the applicable performance-based equity award) cash (“Replacement SpinCo Units”). In each case, the number of shares of SpinCo Common Stock subject to an award of
Replacement SpinCo Units shall be equal to (x) divided by (y), where (x) is the Pre-Distribution RemainCo Share Price multiplied by the number of shares of RemainCo Common Stock that would have been earned at target performance for the
applicable performance-based equity award, and (y) is the Post-Distribution SpinCo Share Price, with the resulting number of shares subject to the Replacement SpinCo Units being rounded up or down to the nearest whole share. Continued
employment conditions applicable to the performance-based equity award will apply to the corresponding Replacement SpinCo Units. 

(b) Non-U.S. Awards—RemainCo Holders. Each RemainCo Legacy Award Holder and each grantee under any of the RemainCo
Legacy Equity Plans who will be a RemainCo Employee, in either case who holds, as of the Distribution Date, one or more performance-based equity awards that were granted to a Non-U.S. Holder (excluding any mPower Performance RSUs and MEGTEC
Performance RSUs), shall receive, effective as of the Distribution Date and immediately prior to the Distribution, as a replacement award in substitution for each such performance-based award (which shall be cancelled), a number of restricted or
deferred stock units, as applicable, with respect to and payable in shares of RemainCo Common Stock or (if, but only if, provided for under the terms of the applicable performance-based equity award) cash (“Replacement RemainCo Units”). In
each case, the number of shares of RemainCo Common Stock subject to an award of Replacement RemainCo Units shall be equal to (x) divided by (y), where (x) is the Pre-Distribution RemainCo Share Price multiplied by the number of shares of
RemainCo Common Stock that would have been earned at target performance for the applicable performance-based equity award, and (y) is the Post-Distribution RemainCo Share Price, with the resulting number of shares subject to the Replacement
RemainCo Units being rounded up or down to the nearest whole share. Continued employment conditions applicable to the performance-based equity award will apply to the corresponding Replacement RemainCo Units. 

(c) U.S. Awards. Each grantee under the RemainCo Legacy Equity Plans (other than a Non-U.S. Holder) who holds, as of the
Distribution Date, one or more performance-based equity awards (excluding any mPower Performance RSUs and MEGTEC Performance RSUs) shall receive, effective as of the Distribution Date and immediately prior to the Distribution, as a replacement award
in substitution for each such performance-based award (which shall be cancelled), a number of Replacement RemainCo Units equal to the number of shares of RemainCo Common Stock that would have been earned at target performance for each such
performance-based equity award, with the resulting number of Replacement RemainCo Units being rounded up or down to the nearest whole unit, and shall also receive, effective as of the Distribution Date and immediately prior to the Distribution, a
number of Replacement SpinCo Units equal to the number of shares of SpinCo Common Stock that would have been distributed in the Distribution with respect to the Replacement RemainCo Units as if each of such Replacement RemainCo Units had been
RemainCo Common Stock, with the resulting number of Replacement SpinCo Units being rounded up or down to the nearest whole unit. Continued employment conditions applicable to the performance-based equity award will apply to the corresponding
Replacement RemainCo Units and Replacement SpinCo Units. 

  
 - 21 - 

 (d) mPower Performance RSUs. Each grantee under the RemainCo Legacy Equity
Plans who holds, as of the Distribution Date, one or more performance-based restricted stock units listed on Schedule 3.5(d) (“mPower Performance RSUs”) shall receive, effective as of the Distribution Date and immediately prior to the
Distribution, for each such mPower Performance RSU (in lieu of receiving any SpinCo restricted stock units in connection with such mPower Performance RSUs), a number of additional performance-based restricted stock units with respect to RemainCo
Common Stock (the “Additional mPower Performance RSUs”), under one of the RemainCo Legacy Equity Plans. In each case, the number of shares of RemainCo Common Stock subject to an award of Additional mPower Performance RSUs shall be equal to
the product of (x) and (y), where (x) is the number of shares of RemainCo Common Stock covered by the original award of mPower Performance RSUs and (y) is equal to (a) the Pre-Distribution RemainCo Share Price minus the
Post-Distribution RemainCo Share Price, divided by (b) the Post-Distribution RemainCo Share Price, with the resulting number of shares subject to the Additional mPower Performance RSUs being rounded up or down to the nearest whole share. Except
as provided in the foregoing provisions of this Section 3.5(d), Additional mPower Performance RSUs shall be granted on such terms which are in all material respects identical (including with respect to vesting and performance conditions) to the
terms of the mPower Performance RSUs with respect to which they are granted. 
 (e) MEGTEC Performance RSUs. Each
grantee under the RemainCo Legacy Equity Plans who holds, as of the Distribution Date, one or more cash-settled performance-based restricted stock units listed on Schedule 3.5(e) (“MEGTEC Performance RSUs”) shall receive, effective as of
the Distribution Date and immediately prior to the Distribution, as a replacement award in substitution for each such MEGTEC Performance RSU (which shall be cancelled), a number of cash-settled performance-based restricted stock units with respect
to shares of SpinCo Common Stock (“Replacement MEGTEC Performance RSUs”) under the SpinCo New Equity Plan having a value immediately after the Distribution Date equal to the value of the shares of RemainCo Common Stock subject to the
MEGTEC Performance RSU (calculated using the Pre-Distribution RemainCo Share Price), as calculated pursuant to the following provisions. In each case, the number of Replacement MEGTEC Performance RSUs shall be equal to (x) divided by (y), where
(x) is the Pre-Distribution RemainCo Share Price multiplied by the number of MEGTEC Performance RSUs that are being cancelled and replaced pursuant to this Section 3.5(e), and (y) is the Post-Distribution SpinCo Share Price, with the
resulting number of Replacement MEGTEC Performance RSUs being rounded up or down to the nearest whole unit. Except as provided in the foregoing provisions of this Section 3.5(e), Replacement MEGTEC Performance RSUs shall be granted on terms
which are in all material respects identical (including with respect to vesting and performance conditions) to the terms of the MEGTEC Performance RSUs which they replace. 

(f) To the extent necessary to implement the provisions of this Section 3.5, the RemainCo Legacy Equity Plan shall be
deemed amended. Notwithstanding the foregoing provisions of this Section 3.5, a performance-based equity award granted under the RemainCo Legacy Equity Plan which is no longer subject to performance conditions as of immediately prior to the
Distribution shall be treated as if it were a RemainCo RSU under the applicable provisions of Section 3.3. 

  
 - 22 - 

 Section 3.6 Section 16(b) of the Exchange Act; Code Sections 162(m) and
409A. 
 (a) By approving the adoption of this Agreement, the respective boards of directors of RemainCo and
SpinCo 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
executive officers of each of RemainCo and SpinCo, and the respective boards of directors of RemainCo and SpinCo also intend to expressly 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 such method is permitted under the applicable equity incentive plan and award agreement. 

(b) Notwithstanding anything in this Agreement to the contrary (including the treatment of supplemental and deferred
compensation plans, outstanding long-term incentive awards and annual incentive awards as described herein), RemainCo and SpinCo agree to negotiate in good faith regarding the need for any treatment different from that otherwise provided herein to
ensure that, to the extent deemed desirable by RemainCo and SpinCo, (i) a federal income tax deduction for the payment of such supplemental or deferred compensation or long-term incentive award, annual incentive award or other compensation is
not limited by reason of Code Section 162(m), and (ii) the treatment of such supplemental or deferred compensation or long-term incentive award, annual incentive award or other compensation does not cause the imposition of a tax under Code
Section 409A. 
 Section 3.7 Certain Bonus Payments. 

(a) Except to the extent otherwise provided in Section 10.1, annual incentive bonuses in respect of 2015 shall be paid to
RemainCo Employees and SpinCo Employees by RemainCo and SpinCo, respectively, at the time such bonuses are normally paid (but no later than March 15, 2016) in accordance with the bonus pools determined by the Compensation Committee of the
respective Board of Directors. The annual incentive bonuses in respect of 2015 for RemainCo Employees and SpinCo Employees who were employed by the RemainCo Group during 2015 prior to the Distribution Date shall be bifurcated. Each such
individual’s bonus shall be the sum of: (i) the bonus based on the applicable bonus plan provisions, prorated for the period between January 1, 2015 and the Distribution Date, and (ii) the bonus based on the applicable bonus plan
provisions, prorated for the period between the day after the Distribution Date and December 31, 2015. 
 (b) SpinCo
shall assume responsibility for the grant of 2015 bonuses and liability for payment of bonuses to the individuals listed on Schedule 3.7(b) earned under The Babcock & Wilcox Executive Incentive Compensation Plan and The Babcock &
Wilcox Company Management Incentive Plan. RemainCo shall maintain liability for payment of bonuses to individuals other than those listed on Schedule 3.7(b) earned under The Babcock & Wilcox

  
 - 23 - 

 
Executive Incentive Compensation Plan and The Babcock & Wilcox Company Management Incentive Plan. SpinCo shall assume responsibility for the grant of 2015 bonuses and liability for
payment of bonuses to SpinCo Employees earned under the The Babcock & Wilcox Company Salaried Employees Incentive Plan. RemainCo shall maintain liability for payment of bonuses to individuals other than the SpinCo Employees earned under The
Babcock & Wilcox Company Salaried Employees Incentive Plan. 
 Section 3.8 Change in Control. 

(a) In the event a change in control (as defined in the applicable equity incentive plan or award agreement) occurs with
respect to RemainCo, then (i) any accelerated vesting and/or exercisability applicable to RemainCo Equity Compensation Awards held by RemainCo Employees and RemainCo Legacy Award Holders shall apply to the SpinCo Equity Compensation Awards then
held by such individuals, and (ii) all RemainCo Equity Compensation Awards then held by SpinCo Employees and SpinCo Legacy Award Holders shall fully vest (and, to the extent applicable, become exercisable). 

(b) In the event a change in control (as defined in the applicable equity incentive plan or award agreement) occurs with
respect to SpinCo, then (i) any accelerated vesting and/or exercisability applicable to SpinCo Equity Compensation Awards held by SpinCo Employees and SpinCo Legacy Award Holders shall apply to the RemainCo Equity Compensation Awards then held
by such individuals, and (ii) all SpinCo Equity Compensation Awards then held by RemainCo Employees and RemainCo Legacy Award Holders shall fully vest (and, to the extent applicable, become exercisable). 

(c) Notwithstanding the foregoing, this Section 3.8 will not apply to the extent that it would cause adverse tax
consequences under Code Section 409A. For the avoidance of doubt, this Section 3.8 shall not apply to awards granted under the RemainCo Legacy Equity Plans or SpinCo New Equity Plan after the Distribution Date. 

Section 3.9 Conformity with Non-U.S. Laws. Notwithstanding anything to the contrary in this Agreement, (i) to the extent any
of the provisions in this Article III (or any equity award described herein) do not conform with applicable non-U.S. laws (including provisions for the collection of withholding taxes), such provisions shall be modified to the extent necessary to
conform with such non-U.S. laws in such manner as is equitable and to preserve the intent hereof, as determined by the Parties in good faith, and (ii) the provisions of this Article III may be modified to the extent necessary to avoid undue
cost or administrative burden arising out of the application of this Article III to awards subject to non-U.S. laws. 
 Section 3.10
Employment Treatment. 
 (a) Continuous employment with the SpinCo Group and the RemainCo Group following the
Distribution Date will be deemed to be continuing service for purposes of vesting and exercisability for the SpinCo Equity Compensation Awards and the RemainCo Equity Compensation Awards. However, in the event that a SpinCo Employee terminates
employment after the Distribution Date and becomes employed by the RemainCo Group, for purposes of Article III, the SpinCo Employee will be deemed terminated and the terms and 

  
 - 24 - 

 
conditions of the applicable performance incentive plan under which grants were made will apply. Similarly, in the event that a RemainCo Employee terminates employment after the Distribution Date
and becomes employed by the SpinCo Group, for purposes of Article III, the RemainCo Employee will be deemed terminated and the terms and conditions of the applicable performance incentive plan under which grants were made will apply. In addition, a
non-employee member of the Board of Directors of RemainCo or SpinCo will be treated in a similar manner to that described in this Section 3.10. 

(b) If, after the Distribution Date, RemainCo or SpinCo identifies an administrative error in the individuals identified as
holding RemainCo Equity Compensation Awards and SpinCo Equity Compensation Awards, the amount of such awards so held, the vesting level of such awards, or any other similar error, RemainCo and SpinCo will mutually cooperate in taking such actions as
are necessary or appropriate to place, as nearly as reasonably practicable, the individual and RemainCo and SpinCo in the position in which they would have been had the error not occurred. 

ARTICLE IV 
 GENERAL
PRINCIPLES FOR ALLOCATION OF LIABILITIES 
 Section 4.1 General Principles. 

(a) (i) Each member of the RemainCo Group and each member of the SpinCo Group shall take any and all reasonable action as shall
be necessary or appropriate so that active participation in the RemainCo Pension Plans, RemainCo Thrift Plans, RemainCo Welfare Plans and RemainCo Benefit Arrangements by all SpinCo Employees and Former SpinCo Employees shall terminate in connection
with the Distribution as and when provided under this Agreement (or if not specifically provided under this Agreement, as of 11:59 p.m. on the day before the Employee Transfer Date), and each member of the SpinCo Group shall cease to be a
participating employer under the terms of such RemainCo Pension Plans, RemainCo Thrift Plans, RemainCo Welfare Plans and RemainCo Benefit Arrangements as of such time. 

(ii) Each member of the SpinCo Group and each member of the RemainCo Group shall take any and all reasonable action as shall be
necessary or appropriate so that active participation in the SpinCo Pension Plans, SpinCo Thrift Plans, SpinCo Welfare Plans and SpinCo Benefit Arrangements by all RemainCo Employees and Former RemainCo Employees shall terminate in connection with
the Distribution as and when provided under this Agreement (or if not specifically provided under this Agreement, as of 11:59 p.m. on the day before the Employee Transfer Date), and each member of the RemainCo Group shall cease to be a participating
employer under the terms of such SpinCo Pension Plans, SpinCo Thrift Plans, SpinCo Welfare Plans and SpinCo Benefit Arrangements as of such time. 

(iii) Except as otherwise provided in this Agreement, one or more members of the SpinCo Group (as designated by SpinCo) shall
continue to be responsible for or assume, effective as of the Employee Transfer Date, all employee benefits liabilities for 

  
 - 25 - 

 
SpinCo Employees and Former SpinCo Employees, and any assets relating to such employee benefits for SpinCo Employees and Former SpinCo Employees shall be transferred to or continue to be held by
one or more members of the SpinCo Group (as designated by SpinCo); and one or more members of the RemainCo Group (as designated by RemainCo) shall continue to be responsible for or assume, effective as of the Employee Transfer Date, all employee
benefits liabilities for RemainCo Employees and Former RemainCo Employees, and any assets relating to such employee benefits for RemainCo Employees and Former RemainCo Employees shall be transferred to or continue to be held by one or more members
of the RemainCo Group (as designated by RemainCo). 
 (b) Except as otherwise provided in this Agreement, effective as of the
Employee Transfer Date, one or more members of the SpinCo Group (as determined by SpinCo) shall assume or continue the sponsorship of, and no member of the RemainCo Group shall have any further liability for or under, the following agreements,
obligations and liabilities, and SpinCo shall indemnify each member of the RemainCo Group, and the officers, directors, and employees of each member of the RemainCo Group, and hold them harmless with respect to such agreements, obligations or
liabilities: 
 (i) any and all individual agreements entered into between any member of the RemainCo Group and any SpinCo
Employee or Former SpinCo Employee; 
 (ii) any and all agreements entered into between any member of the RemainCo Group and
any individual who is an independent contractor providing services primarily for the business activities of the SpinCo Group; 

(iii) any and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), commissions and
bonuses payable to any SpinCo Employees or Former SpinCo Employees after the Employee Transfer Date, without regard to when such wages, salaries, incentive compensation, commissions and bonuses are or may have been earned; 

(iv) any and all moving expenses and obligations related to relocation, repatriation, transfers or similar items incurred by or
owed to any SpinCo Employees or Former SpinCo Employees, whether or not accrued as of the Employee Transfer Date (other than such expenses and obligations incurred by RemainCo prior to the Employee Transfer Date as a result of which there is an
existing liability as of the day before the Employee Transfer Date, all of which shall remain RemainCo’s obligation); 

(v) any and all immigration-related, visa, work application or similar rights, obligations and liabilities related to any
SpinCo Employees or Former SpinCo Employees; and 
 (vi) any and all liabilities and obligations whatsoever with respect to
claims made by or with respect to any SpinCo Employees or Former SpinCo Employees in connection with any employee benefit plan, program or policy not otherwise retained or assumed by any member of the RemainCo Group pursuant to this Agreement,
including such liabilities relating to actions or omissions of or by any member of the SpinCo Group or any officer, director, employee or agent thereof prior to the Employee Transfer Date. 

(c) Except as otherwise provided in this Agreement, effective as of the Employee Transfer Date, no member of the SpinCo Group
shall have any further liability for, and RemainCo shall indemnify each member of the SpinCo Group, and the officers, directors, and employees of each member of the SpinCo Group, and hold them harmless with respect to any and all liabilities and
obligations whatsoever with respect to, claims made by or with respect to any RemainCo Employees or Former RemainCo Employees in connection with any employee benefit plan, program or policy not otherwise retained or assumed by any member of the
SpinCo Group pursuant to this Agreement, including such liabilities relating to actions or omissions of or by any member of the RemainCo Group or any officer, director, employee or agent thereof prior to the Employee Transfer Date. 

  
 - 26 - 

 Section 4.2 Sponsorship and/or Establishment of SpinCo Plans. RemainCo Welfare
Plans in which both (i) RemainCo Employees or Former RemainCo Employees and (ii) SpinCo Employees or Former SpinCo Employees participate shall be divided into two separate plans, with one covering RemainCo Employees and Former RemainCo
Employees sponsored by a member of the RemainCo Group, and the other covering SpinCo Employees and Former SpinCo Employees sponsored by a member of the SpinCo Group. 

Section 4.3 Service Credit. 

(a) Service for Eligibility and Vesting Purposes. Except as otherwise provided in any other provision of this Agreement,
for purposes of eligibility and vesting under the SpinCo Pension Plans, SpinCo Thrift Plans, SpinCo Benefit Arrangements and SpinCo Welfare Plans, SpinCo shall, and shall cause each member of the SpinCo Group to, credit each SpinCo Employee and
Former SpinCo Employee with service for any period of employment with any member of the RemainCo Group prior to the Employee Transfer Date to the same extent such service would be credited if it had been performed for a member of the SpinCo Group.

 (b) Service for Benefit Purposes. Except as otherwise provided in any other provision of this Agreement, and except
to the extent the following would result in a duplication of benefits, (i) for purposes of benefit levels and accruals and benefit commencement entitlements under the SpinCo Pension Plans, SpinCo Thrift Plans and SpinCo Welfare Plans, SpinCo
shall, and shall cause each member of the SpinCo Group to, credit each SpinCo Employee and Former SpinCo Employee with service for any period of employment with any member of the RemainCo Group prior to the Employee Transfer Date to the same extent
that such service is taken into account pursuant to the terms of the RemainCo Pension Plans, RemainCo Thrift Plans and RemainCo Welfare Plans, and (ii) for purposes of benefit levels and accruals and benefit commencement entitlements under the
RemainCo Pension Plans, RemainCo Thrift Plans and RemainCo Welfare Plans, RemainCo shall, and shall cause each member of the RemainCo Group to, credit each RemainCo Employee and Former RemainCo Employee with service for any period of employment with
any member of the SpinCo Group prior to the Employee Transfer Date to the same extent such service would be credited if it had been performed for a member of the RemainCo Group. 

(c) Evidence of Prior Service. Notwithstanding anything to the contrary, but subject to applicable law, upon reasonable
request by one Party to the other Party, the first Party will provide to the other Party copies of any records available to the first Party to document such service, plan participation and membership of such Employees and cooperate with the first
Party to resolve any discrepancies or obtain any missing data for purposes of determining benefit eligibility, participation, vesting and calculation of benefits with respect to any Employee. 

  
 - 27 - 

 Section 4.4 Plan Administration. 

(a) Transition Services. The Parties acknowledge that the RemainCo Group or the SpinCo Group may provide administrative
services for certain of the other Party’s benefit programs for a transitional period under the terms of an applicable transition services agreement. The Parties agree to enter into a business associate agreement (if required by applicable
health information privacy laws) in connection with such transition services agreement. 
 (b) Administration. SpinCo
shall use its best efforts to, and shall cause each member of the SpinCo Group to use its best efforts to, administer its benefit plans in a manner that does not jeopardize the tax-favored status of the tax-favored benefit plans maintained by any
member of the RemainCo Group. RemainCo shall use its best efforts to, and shall cause each member of the RemainCo Group to use its best efforts to, administer its benefit plans in a manner that does not jeopardize the tax-favored status of the
tax-favored benefit plans maintained by any member of the SpinCo Group. 
 (c) Participant Elections and Beneficiary
Designations. All participant elections and beneficiary designations made under any plan sponsored by a member of the RemainCo Group or SpinCo Group prior to the effective date as of which assets or liabilities relating to that plan are
transferred or allocated to a member of the SpinCo Group or RemainCo Group, as applicable, shall continue in effect under any plan maintained by any member of the SpinCo Group or RemainCo Group, as applicable, to which liabilities are transferred or
allocated pursuant to this Agreement until such time as any applicable participant changes his elections or beneficiary designations in accordance with the procedures of the relevant plan, as the case may be, including deferral, investment, and
payment form elections, dividend elections, coverage options and levels, beneficiary designations and the rights of alternate payees under qualified domestic relations orders. 

ARTICLE V 
 PENSION,
EXCESS AND SUPPLEMENTAL PLANS 
 Section 5.1 General Principles. The SpinCo Pension Plans shall continue to be
maintained and sponsored by one or more members of the SpinCo Group on and after the Employee Transfer Date, and the RemainCo Pension Plans shall continue to be maintained and sponsored by one or more members of the RemainCo Group on and after the
Employee Transfer Date. The RemainCo Group and the SpinCo Group shall each be responsible for the funding of their respective pension plans on and after the Employee Transfer Date. 

  
 - 28 - 

 Section 5.2 U.S. Pension Transfers. 

(a) Transfer Date. 

(i) SpinCo Commercial Operations Plan. On or prior to the Employee Transfer Date, the SpinCo Commercial Operations Plan
shall be amended in order that the SpinCo Commercial Operations Plan will provide to each SpinCo Employee and Former SpinCo Employee who was a participant in the RemainCo Governmental Operations Plan (and each alternate payee or beneficiary of such
person) (the “SpinCo U.S. Pension Beneficiaries”) benefits identical to those accrued with respect to such person under the RemainCo Governmental Operations Plan as of the close of business on April 30, 2015 (the “SpinCo Transfer
Date”) (the “SpinCo U.S. Transferred Benefit”). A SpinCo U.S. Pension Beneficiary shall not accrue benefits under the RemainCo Governmental Operations Plan after the SpinCo Transfer Date, unless such SpinCo U.S. Pension Beneficiary
shall become employed by any member of the RemainCo Group that participates in the RemainCo Governmental Operations Plan on or after the SpinCo Transfer Date. 

(ii) RemainCo Governmental Operations Plan. On or prior to the Employee Transfer Date, the RemainCo Governmental
Operations Plan shall be amended in order that the RemainCo Governmental Operations Plan will provide to each RemainCo Employee and Former RemainCo Employee (excluding any Grandfathered Foundry Employee) who was a participant in the SpinCo
Commercial Operations Plan (and each alternate payee or beneficiary of such person) (the “RemainCo U.S. Pension Beneficiaries”) benefits identical to those accrued with respect to such person under the SpinCo Commercial Operations Plan as
of the close of business on April 30, 2015 (the “RemainCo Transfer Date”) (the “RemainCo U.S. Transferred Benefit”). A RemainCo U.S. Pension Beneficiary shall not accrue benefits under the SpinCo Commercial Operations Plan
after the RemainCo Transfer Date, unless such RemainCo U.S. Pension Beneficiary shall become employed by any member of the SpinCo Group that participates in the SpinCo Commercial Operations Plan on or after the RemainCo Transfer Date. Each
Grandfathered Foundry Employee who is a participant in the SpinCo Commercial Operations Plan as of the RemainCo Transfer Date shall remain a participant in such plan on and after the RemainCo Transfer Date. 

(b) Transfer. 

(i) SpinCo Commercial Operations Plan. Following the determination of the SpinCo Transfer Amount (as defined below) by
RemainCo, RemainCo shall cause to be transferred from the RemainCo Governmental Operations Plan to the SpinCo Commercial Operations Plan assets having an aggregate Value (as defined below) equal to the SpinCo Transfer Amount. On and before the
SpinCo Transfer Date, the RemainCo Governmental Operations Plan shall continue to make the required benefit payments to the SpinCo U.S. Pension Beneficiaries. After the SpinCo Transfer Date, the SpinCo Commercial Operations Plan shall commence
making the required benefit payments. Effective as of the SpinCo Transfer Date, the sponsor of the SpinCo Commercial Operations Plan shall assume all liabilities with respect to the benefits previously accrued under the RemainCo Governmental
Operations Plan by the SpinCo U.S. Pension Beneficiaries. 

  
 - 29 - 

 (ii) RemainCo Governmental Operations Plan. Following the determination of
the RemainCo Transfer Amount (as defined below) by SpinCo, SpinCo shall cause to be transferred from the SpinCo Commercial Operations Plan to the RemainCo Governmental Operations Plan assets having an aggregate Value (as defined below) equal to the
RemainCo Transfer Amount. On and before the RemainCo Transfer Date, the SpinCo Commercial Operations Plan shall continue to make the required benefit payments to the RemainCo U.S. Pension Beneficiaries. After the RemainCo Transfer Date, the RemainCo
Governmental Operations Plan shall commence making the required benefit payments. Effective as of the RemainCo Transfer Date, the sponsor of the RemainCo Governmental Operations Plan shall assume all liabilities with respect to the benefits
previously accrued under the SpinCo Commercial Operations Plan by the RemainCo U.S. Pension Beneficiaries. 
 (c)
Calculation of Transfer Amount. 
 (i) SpinCo Commercial Operations Plan. Promptly following the SpinCo
Transfer Date, the RemainCo Actuary shall determine the SpinCo Transfer Amount. The “SpinCo Transfer Amount” means the amount required to be transferred from the RemainCo Governmental Operations Plan to the SpinCo Commercial Operations
Plan in respect of the assumption by the SpinCo Commercial Operations Plan of the SpinCo U.S. Transferred Benefit obligations, as determined in accordance with Code Section 414(l) and the regulations thereunder. Promptly upon determination of
the SpinCo Transfer Amount, RemainCo shall cause the RemainCo Actuary to provide to SpinCo a written statement of the SpinCo Transfer Amount, a summary of the calculation of such amount and a written statement that the SpinCo Transfer Amount
satisfies the requirements of Code Section 414(l). 
 (ii) RemainCo Governmental Operations Plan. Promptly
following the RemainCo Transfer Date, the SpinCo Actuary shall determine the RemainCo Transfer Amount. The “RemainCo Transfer Amount” means the amount required to be transferred from the SpinCo Commercial Operations Plan to the RemainCo
Governmental Operations Plan in respect of the assumption by the RemainCo Governmental Operations Plan of the RemainCo U.S. Transferred Benefit obligations, as determined in accordance with Code Section 414(l) and the regulations thereunder.
Promptly upon determination of the RemainCo Transfer Amount, SpinCo shall cause the SpinCo Actuary to provide to RemainCo a written statement of the RemainCo Transfer Amount, a summary of the calculation of such amount and a written statement that
the RemainCo Transfer Amount satisfies the requirements of Code Section 414(l). 
 (d) Establishment and Transfer to
SpinCo Trust. On May 29, 2015 (the “Initial Trust Transfer Date”), SpinCo shall have established a trust intended to be qualified under Code Section 501(a) (the “SpinCo Master Trust”), and RemainCo shall have caused
to be transferred from the RemainCo Master Trust to the SpinCo Master Trust assets having an aggregate Value (as defined below) equal to 95% of the Value of the assets of the SpinCo 

  
 - 30 - 

 
Commercial Operations Plan, calculated as of April 30, 2015, as determined in good faith by RemainCo (the “Initial Trust Transfer Amount”). Promptly after the Initial Trust
Transfer Date: (i) if the aggregate Value of the assets of the SpinCo Commercial Operations Plan, calculated as of the Initial Trust Transfer Date, exceeds the Initial Trust Transfer Amount, RemainCo shall cause to be transferred from the
RemainCo Master Trust to the SpinCo Master Trust assets having a Value equal to such excess, and (ii) if the Initial Trust Transfer Amount exceeds the aggregate Value of the assets of the SpinCo Commercial Operations Plan, calculated as of the
Initial Trust Transfer Date, SpinCo shall cause to be transferred from the SpinCo Master Trust to the RemainCo Master Trust assets having a Value equal to such excess (the payments described in (i) and (ii), the “True Up Payment”).

 (e) Assets and Value. 

(i) Assets To Be Transferred. Assets to be transferred under Section 5.2(b) shall be in cash. Assets to be
transferred under Section 5.2(d) shall be in kind and/or in cash in a manner that represents, as closely as commercially practical, a pro rata portion of each investment in a publicly traded portfolio or commingled investment fund (other than
an investment in a private equity or real estate limited partnership) held by the RemainCo Master Trust or the SpinCo Master Trust, as applicable, as of the date of such transfer, except that reasonable adjustments shall be made where RemainCo (with
respect to transfers from the RemainCo Master Trust) or SpinCo (with respect to transfers from the SpinCo Master Trust) determines such transfers cannot reasonably be made due to investment manager account minimums or where other considerations
prevent such pro rata transfers or render such pro rata transfers impractical. Assets to be transferred under Section 5.2(f) shall be in cash and/or in kind, as reasonably determined by RemainCo. 

(ii) Value. For purposes of this Section 5.2, the “Value” of all pension assets shall be the fair market
value of such assets as determined in good faith by the named fiduciary of the RemainCo Master Trust based on the most recent audited account statements provided to such named fiduciary by the trustee of the RemainCo Master Trust, or, in the event
of a transfer from the SpinCo Master Trust, as determined in good faith by the named fiduciary of the SpinCo Master Trust based on the most recent audited account statements provided to such named fiduciary by the trustee of the SpinCo Master Trust.

 (f) Post-Transfer Investment Proceeds. Following the date on which assets are transferred from the RemainCo Master
Trust to the SpinCo Master Trust in accordance with Section 5.2(d) (the “Trust Transfer Date”), RemainCo shall cause to be transferred from the RemainCo Master Trust to the SpinCo Master Trust a pro rata portion of any investment
proceeds received by the RemainCo Master Trust that relate to a period prior to the applicable Trust Transfer Date, according to the proportion of the total amount of assets that were transferred from the RemainCo Master Trust to the SpinCo Master
Trust pursuant to Section 5.2(d) to the total amount of assets held by the RemainCo Master Trust prior to any such transfer. This Section 5.2(f) shall not apply to (i) any proceeds or earnings of the RemainCo Master Trust that are
taken into account in the calculation of the amount transferred pursuant to Section 5.2(d) or (ii) any proceeds or earnings attributable to an investment that is a private equity or real estate limited partnership. 

  
 - 31 - 

 Section 5.3 Canada Pension Transfer. Effective as of January 1, 2015,
SpinCo has established a defined benefit pension plan (the “SpinCo Canada Salaried Pension Plan”) to provide retirement benefits to employees of the SpinCo Group and Former SpinCo Employees as of December 31, 2014 who participated in
the RemainCo Canada Salaried Pension Plan prior to January 1, 2015 (and each beneficiary of such person) (the “SpinCo Canada Pension Beneficiaries”). The SpinCo Canada Salaried Pension Plan assumed liability for all benefits accrued
with respect to the SpinCo Canada Pension Beneficiaries under the RemainCo Canada Salaried Pension Plan as of December 31, 2014 (the “SpinCo Canada Transferred Benefit”). A SpinCo Canada Pension Beneficiary shall not accrue benefits
under the RemainCo Canada Salaried Pension Plan after December 31, 2014. As soon as practicable after regulatory approval has been obtained, RemainCo shall cause to be transferred from the RemainCo Canada Salaried Pension Plan to the SpinCo
Canada Salaried Pension Plan assets having an aggregate value equal to the SpinCo Canada Transferred Benefit, as determined in accordance with applicable laws by an actuary appointed by RemainCo.  

Section 5.4 Excess and Supplemental Plans. 

(a) Excess Plans. The liabilities attributable to RemainCo Employees and Former RemainCo Employees in a SpinCo Excess
Plan, if any, shall be assumed by a member of the RemainCo Group which sponsors the RemainCo Excess Plans, and the liabilities attributable to SpinCo Employees and Former SpinCo Employees in a RemainCo Excess Plan, if any, shall be assumed by a
member of the SpinCo Group which sponsors a SpinCo Excess Plan, each effective as of the Employee Transfer Date. 
 (b)
Supplemental Plans. On or prior to the Employee Transfer Date, SpinCo shall establish the SpinCo New SERP. The liabilities attributable to SpinCo Employees and Former SpinCo Employees in the RemainCo SERP shall be assumed by a member of the
SpinCo Group which sponsors the SpinCo New SERP, effective as of the Employee Transfer Date. Each member of the SpinCo Group shall cease to be a participating employer in the RemainCo SERP, and the SpinCo Employees and the Former SpinCo Employees
shall no longer participate in the RemainCo SERP, each effective as of the Employee Transfer Date, unless any such SpinCo Employee or Former SpinCo Employee shall become employed by any member of the RemainCo Group after such date and such member
participates in the RemainCo SERP and such employee is eligible for participation therein. 
 (c) Restoration Plans.
On or prior to the Employee Transfer Date, SpinCo shall establish the SpinCo New Restoration Plan. The liabilities attributable to SpinCo Employees and Former SpinCo Employees in the RemainCo Restoration Plan shall be assumed by a member of the
SpinCo Group which sponsors the SpinCo New Restoration Plan, effective as of the Employee Transfer Date. Each member of the SpinCo Group shall cease to be a participating employer in the RemainCo Restoration Plan, and the SpinCo Employees and the
Former SpinCo Employees shall no longer participate in the RemainCo Restoration Plan, each effective as of the Employee Transfer Date, unless any such SpinCo Employee or Former SpinCo Employee shall become employed by any member of the RemainCo
Group after such date and such member participates in the RemainCo Restoration Plan and such employee is eligible for participation therein. 

  
 - 32 - 

 (d) Supplemental Payment Plans. Effective as of the Employee Transfer
Date, SpinCo shall assume the liabilities attributable to SpinCo Employees and Former SpinCo Employees in the RemainCo SPP (such portion of the RemainCo SPP which is assumed and continued by SpinCo, the “SpinCo SPP”). Each member of the
SpinCo Group shall cease to be a participating employer in the RemainCo SPP, and the SpinCo Employees and the Former SpinCo Employees shall no longer participate in the RemainCo SPP, each effective as of the Employee Transfer Date. 

(e) Liability and Responsibility. SpinCo shall have sole responsibility for the administration of each SpinCo Excess
Plan, the SpinCo New SERP, the SpinCo New Restoration Plan and the SpinCo SPP and the payment of benefits thereunder to or on behalf of SpinCo Employees and Former SpinCo Employees, and no member of the RemainCo Group shall have any liability or
responsibility therefor. RemainCo shall have sole responsibility for the administration of each RemainCo Excess Plan, the RemainCo SERP, the RemainCo Restoration Plan and the RemainCo SPP and the payment of benefits thereunder to or on behalf of
RemainCo Employees and Former RemainCo Employees, and no member of the SpinCo Group shall have any liability or responsibility therefor. 

Section 5.5 Group Annuity Contract. RemainCo and SpinCo will cooperate and use their commercially reasonable efforts to replicate
the RemainCo Annuity Contract such that all remaining benefits payable thereunder to each Former SpinCo Employee (and each beneficiary or alternate payee of such person) shall be governed under a new annuity contract by and between SpinCo or its
Subsidiary and the insurance company effective as of the Employee Transfer Date. In the event it cannot be determined prior to the Employee Transfer Date whether an individual with a remaining benefit under the RemainCo Annuity Contract is a Former
SpinCo Employee or beneficiary or alternate payee of such person, on the one hand, or a Former RemainCo Employee or beneficiary or alternate payee of such person, on the other hand, then such individual shall be deemed to be a Former SpinCo Employee
for purposes of this Section 5.5. 
 ARTICLE VI 

THRIFT PLANS 

Section 6.1 U.S. Thrift Plans. Prior to the Employee Transfer Date, SpinCo will establish and adopt a qualified employee cash or
deferred arrangement under Code Section 401(k) (the “SpinCo U.S. Thrift Plan”) intended to be qualified under Code Section 401(a) and containing provisions that will provide, among other things, (i) benefits for each SpinCo
Employee and Former SpinCo Employee who is a participant with a remaining account balance in the RemainCo U.S. Thrift Plan immediately prior to the effective date of the SpinCo U.S. Thrift Plan (and each beneficiary and alternate payee of such
person) (the “SpinCo U.S. Thrift Plan Beneficiaries”) identical (except as provided in this Article VI) to those in effect for the SpinCo U.S. Thrift Plan Beneficiaries under the RemainCo U.S. Thrift Plan as of the date of transfer of
assets and liabilities with respect to such plan (as described below), and (ii) for each RemainCo Employee or Former RemainCo Employee who has a remaining account balance under the RemainCo U.S. Thrift Plan immediately prior to the Employee
Transfer Date (and each beneficiary or alternate payee of such person) (the “RemainCo US. Thrift Plan 

  
 - 33 - 

 
Beneficiaries”), an account under the SpinCo U.S. Thrift Plan to reflect any shares of SpinCo Common Stock received in the Distribution as a result of such RemainCo U.S. Thrift Plan
Beneficiaries’ accounts under the RemainCo U.S. Thrift Plan. Each SpinCo Employee who was an active participant in the RemainCo U.S. Thrift Plan on the day prior to the effective date of the SpinCo U.S. Thrift Plan shall participate in the
SpinCo U.S. Thrift Plan effective from and after the effective date of the SpinCo U.S. Thrift Plan. SpinCo Employees and Former SpinCo Employees shall not make or receive additional contributions under the RemainCo U.S. Thrift Plan on and after the
effective date of the SpinCo U.S. Thrift Plan, unless any such SpinCo Employee or Former SpinCo Employee shall become employed by any member of the RemainCo Group after such date and such member participates in the RemainCo U.S. Thrift Plan. A
RemainCo Employee or Former RemainCo Employee shall not make or receive contributions under the SpinCo U.S. Thrift Plan unless any such RemainCo Employee or Former RemainCo Employee shall become employed by any member of the SpinCo Group on and
after the effective date of the SpinCo U.S. Thrift Plan and such member participates in the SpinCo U.S. Thrift Plan. The interest of each SpinCo U.S. Thrift Plan Beneficiary in the RemainCo U.S. Thrift Plan attributable to employer matching
contributions as of the day prior to the Employee Transfer Date shall be 100% vested on the Employee Transfer Date. The interest of each RemainCo U.S. Thrift Plan Beneficiary in the SpinCo U.S. Thrift Plan attributable to employer matching
contributions as of the Employee Transfer Date shall be 100% vested on the Employee Transfer Date. In the event a participant (other than a SpinCo Employee or RemainCo Employee) or his or her alternate payee or beneficiary has a remaining account
balance in the RemainCo U.S. Thrift Plan immediately prior to the effective date of the SpinCo U.S. Thrift Plan and it cannot be determined prior to the effective date of the SpinCo U.S. Thrift Plan whether such participant is a Former SpinCo
Employee or a Former RemainCo Employee, such participant shall be deemed to be a Former SpinCo Employee for purposes of this Article VI. 

Section 6.2 Treatment of RemainCo Common Stock and SpinCo Common Stock. 

(a) SpinCo Common Stock Fund. The SpinCo U.S. Thrift Plan will provide as of the Distribution Date: (i) for the
establishment of a SpinCo Common Stock fund; (ii) that such SpinCo Common Stock fund shall receive and hold all shares of SpinCo Common Stock to be distributed in the Distribution on behalf of SpinCo U.S. Thrift Plan Beneficiaries and RemainCo
U.S. Thrift Plan Beneficiaries; (iii) that, following the Distribution Date, contributions made by or on behalf of SpinCo U.S. Thrift Plan Beneficiaries may be allocated to the SpinCo Common Stock fund; (iv) that the RemainCo U.S. Thrift
Plan Beneficiaries will be prohibited from increasing their holdings in the SpinCo Common Stock fund; (v) that the RemainCo U.S. Thrift Plan Beneficiaries may elect to liquidate their holdings in the SpinCo Common Stock fund and invest those
monies in any other investment fund offered under the SpinCo U.S. Thrift Plan; and (vi) that the RemainCo U.S. Thrift Plan Beneficiaries may elect to receive their holdings in the SpinCo U.S. Thrift Plan in accordance with the distribution
options provided under such plan to terminated employees. Additionally, SpinCo shall cause the SpinCo U.S. Thrift Plan to provide that the RemainCo U.S. Thrift Plan Beneficiaries shall participate in the SpinCo U.S. Thrift Plan in respect of their
accounts thereunder; provided, however, the sponsor of the SpinCo U.S. Thrift Plan may in its discretion provide that the SpinCo Common Stock fund shall no longer be offered as an investment alternative under the SpinCo U.S. Thrift Plan. 

  
 - 34 - 

 (b) RemainCo Common Stock Fund. The RemainCo U.S. Thrift Plan shall be
amended, on or prior to the Distribution Date, to provide that, following the Distribution: (i) the RemainCo Common Stock fund will hold the assets of the accounts of the SpinCo U.S. Thrift Plan Beneficiaries invested in the RemainCo Common
Stock fund; (ii) the SpinCo U.S. Thrift Plan Beneficiaries will be prohibited from increasing their holdings in the RemainCo Common Stock fund; (iii) the SpinCo U.S. Thrift Plan Beneficiaries may elect to liquidate their holdings in the
RemainCo Common Stock fund and invest those monies in any other investment fund offered under the RemainCo U.S. Thrift Plan; and (iv) the SpinCo U.S. Thrift Plan Beneficiaries may elect to receive their holdings in the RemainCo U.S. Thrift Plan
in accordance with the distribution options available under such plan to terminated employees. RemainCo shall cause the RemainCo U.S. Thrift Plan to provide that SpinCo U.S. Thrift Plan Beneficiaries shall participate in the RemainCo U.S. Thrift
Plan in respect of their accounts thereunder; provided, however, the sponsor of the RemainCo U.S. Thrift Plan may in its discretion provide that the RemainCo Common Stock fund shall no longer be offered as an investment alternative under the
RemainCo U.S. Thrift Plan. 
 Section 6.3 U.S. Transfer of Accounts. As of the effective date of the SpinCo U.S. Thrift
Plan, RemainCo will cause to be transferred from the trust under the RemainCo U.S. Thrift Plan to the trust under the SpinCo U.S. Thrift Plan the aggregate amount that was credited to the accounts of the SpinCo U.S. Thrift Plan Beneficiaries as of
such date, save and except for the portion of the RemainCo Common Stock fund attributable to the accounts of the SpinCo U.S. Thrift Plan Beneficiaries. The transfer shall, to the extent reasonably possible, be an in-kind transfer, subject to the
reasonable consent of the trustee of the SpinCo U.S. Thrift Plan trust and shall include the transfer of the aggregate assets held in the accounts relating to each SpinCo U.S. Thrift Plan Beneficiary under the RemainCo U.S. Thrift Plan and any
participant loan notes held under such plans. RemainCo shall cause the RemainCo U.S. Thrift Plan to allocate to the SpinCo U.S. Thrift Plan a proportionate share of any forfeiture account under the RemainCo U.S. Thrift Plan. 

Section 6.4 Canada Thrift Plans. Prior to the Employee Transfer Date, SpinCo will establish and adopt a savings arrangement (the
“SpinCo Canada Thrift Plan”) that will provide, among other things, benefits and tax treatment for each employee of the SpinCo Group and Former SpinCo Employee who is a participant with a remaining account balance in the RemainCo Canada
Thrift Plan immediately prior to the effective date of the SpinCo Canada Thrift Plan (and each beneficiary of such person) (the “SpinCo Canada Thrift Plan Beneficiaries”) identical to those in effect for the SpinCo Canada Thrift Plan
Beneficiaries under the RemainCo Canada Thrift Plan as of the date of transfer of assets and liabilities with respect to such plan (as described below). Each employee of the SpinCo Group who was an active participant in the RemainCo Canada Thrift
Plan on the day prior to the effective date of the SpinCo Canada Thrift Plan shall participate in the SpinCo Canada Thrift Plan effective from and after the effective date of the SpinCo Canada Thrift Plan. Employees of the SpinCo Group and Former
SpinCo Employees shall not make or receive additional contributions under the RemainCo Canada Thrift Plan on and after the effective date of the SpinCo Canada Thrift Plan, unless any such employee of the SpinCo Group or Former SpinCo Employee shall
become employed by any member of the RemainCo Group after such date and such member participates in the RemainCo Canada Thrift Plan. A RemainCo Employee or Former RemainCo Employee shall not make or receive contributions under the SpinCo Canada
Thrift Plan unless any such 

  
 - 35 - 

 
RemainCo Employee or Former RemainCo Employee shall become employed by any member of the SpinCo Group on and after the effective date of the SpinCo Canada Thrift Plan and such member participates
in the SpinCo Canada Thrift Plan. 
 Section 6.5 Canada Transfer of Accounts. As of the effective date of the SpinCo
Canada Thrift Plan, RemainCo will cause to be transferred from the trust under the RemainCo Canada Thrift Plan to the trust under the SpinCo Canada Thrift Plan the aggregate amount that was credited to the accounts of the SpinCo Canada Thrift Plan
Beneficiaries as of such date. The transfer shall, to the extent reasonably possible, be an in-kind transfer, subject to the reasonable consent of the trustee of the SpinCo Canada Thrift Plan trust and shall include the transfer of the aggregate
assets held in the accounts relating to each SpinCo Canada Thrift Plan Beneficiary under the RemainCo Canada Thrift Plan.  

ARTICLE VII 
 WELFARE
PLANS 
 Section 7.1 Establishment of SpinCo Welfare Plans.  

(a) Except as provided below, the members of the SpinCo Group who had previously adopted a RemainCo Welfare Plan and were
participating employers therein on the day before the Employee Transfer Date (“Participating SpinCo Employers”) will, at 11:59 p.m. on that date, withdraw from such participation, and, effective as of the Employee Transfer Date, one or
more of the Participating SpinCo Employers has assumed sponsorship, under newly established welfare plans, of the coverage and benefits which were offered under such plans to the SpinCo Employees and the Former SpinCo Employees (and their eligible
spouses and dependents as the case may be) of the Participating SpinCo Employers (collectively, the “SpinCo Welfare Plan Participants”). Such coverage and benefits shall then be provided to the SpinCo Welfare Plan Participants on an
uninterrupted basis under the newly established SpinCo Welfare Plans which shall contain substantially the same benefit provisions as in effect under the corresponding RemainCo Welfare Plan on the day before the Employee Transfer Date. Except as
provided below, effective as of the Employee Transfer Date, liabilities relating to the SpinCo Welfare Plan Participants shall be spun off from each RemainCo Welfare Plan and allocated to the corresponding new SpinCo Welfare Plan. 

(b) As a result of withdrawal from participation in the RemainCo Welfare Plans by the Participating SpinCo Employers, the
SpinCo Welfare Plan Participants ceased to be eligible for coverage under the RemainCo Welfare Plans at 11:59 p.m. on the day before the Employee Transfer Date. SpinCo Welfare Plan Participants shall not participate in any RemainCo Welfare Plans on
and after the Employee Transfer Date, unless they shall become employed after such date by any member of the RemainCo Group that participates in such plans and meet the terms and conditions of participation thereunder. RemainCo Employees and Former
RemainCo Employees shall not participate in any SpinCo Welfare Plans, unless they shall become employed on and after the Employee Transfer Date by any member of the SpinCo Group that participates in such plans and meet the terms and conditions of
participation thereunder. 

  
 - 36 - 

 Section 7.2 Transitional Matters Under SpinCo Welfare Plans. 

(a) Treatment of Claims Incurred. 

(i) Self-Insured Benefits. SpinCo has assumed and is responsible for the funding of payment for any unpaid covered claim
and eligible expense: 
 (A) incurred by any SpinCo Welfare Plan Participant prior to the Employee Transfer Date under a
RemainCo Welfare Plan that is not described in section 7.2(a)(ii) below, to the extent such participant has coverage under such plan as, or through, an employee or former employee of a Participating SpinCo Employer on the date such claim or expense
is incurred; or 
 (B) incurred by any SpinCo Employee or Former SpinCo Employee prior to the Employee Transfer Date under a
RemainCo Benefit Arrangement that is not described in section 7.2(a)(ii) below. No member of the RemainCo Group shall be responsible for any liability with respect to any such claims or expenses. 

(ii) Insured Benefits. With respect to benefits that, prior to the Employee Transfer Date, were provided for under the
RemainCo Welfare Plans through the purchase of insurance, RemainCo shall cause the RemainCo Welfare Plans to fully perform, pay and discharge all claims of SpinCo Welfare Plan Participants that were incurred prior to the Employee Transfer Date. 

(iii) Claims Incurred. For purposes of this Section 7.2(a), a claim or liability is deemed to be incurred
(A) with respect to medical, dental, vision and/or prescription drug benefits, upon the rendering of health services giving rise to such claim or liability; (B) with respect to life insurance, accidental death and dismemberment and
business travel accident insurance, upon the occurrence of the event giving rise to such claim or liability; (C) with respect to long-term disability benefits, upon the date of an individual’s disability, as determined by the disability
benefit insurance carrier or claim administrator, giving rise to such claim or liability; and (D) with respect to a period of continuous hospitalization, upon the date of admission to the hospital, unless otherwise provided under the terms of
the applicable RemainCo Welfare Plan or RemainCo Benefit Arrangement. 
 (b) Credit for Deductibles and Other Limits.
With respect to each SpinCo Welfare Plan Participant, the SpinCo Welfare Plans will give credit in plan year 2015 for any amount paid, number of services obtained or visits provided under the comparable type RemainCo Welfare Plan by such SpinCo
Welfare Plan Participant in plan year 2015 toward deductibles, out-of-pocket maximums, limits on number of services or visits, or other similar limitations to the extent such amounts are taken into account under the comparable type RemainCo Welfare
Plan. For purposes of any life-time maximum benefit limit payable to a SpinCo Welfare Plan Participant under any SpinCo Welfare Plan, the SpinCo Welfare Plans will recognize any expenses paid or reimbursed by a RemainCo Welfare Plan with respect to
such participant prior to the Employee Transfer Date to the same extent such expense payments or reimbursements would be recognized in respect of an active plan participant under that RemainCo Welfare Plan. 

(c) COBRA. Effective as of the Employee Transfer Date, SpinCo has assumed and will satisfy all requirements under COBRA
with respect to all SpinCo Employees and Former SpinCo Employees and their qualified beneficiaries, including for individuals who are already receiving benefits as of such date under COBRA. 

  
 - 37 - 

 Section 7.3 VEBA. As of the Employee Transfer Date, RemainCo or a member of the
RemainCo Group shall continue as settlor and sponsor of each Code Section 501(c)(9) trust (“VEBA”) that holds the plan assets of a RemainCo Welfare Plan. 

Section 7.4 Continuity of Benefits, Benefit Elections and Beneficiary Designations. 

(a) Benefit Elections and Designations. As of the Employee Transfer Date (or such other date provided for under
subsection 7.4(b)), SpinCo has caused the SpinCo Welfare Plans to recognize and give effect to all elections and designations (including all coverage and contribution elections and beneficiary designations) made by each SpinCo Welfare Plan
Participant under, or with respect to, the corresponding RemainCo Welfare Plan for plan year 2015. 
 (b) Additional
Details Regarding Flexible Spending Accounts. To the extent any SpinCo Welfare Plan provides or constitutes a health care flexible spending account or dependent care flexible spending account (each a “SpinCo FSA”), such SpinCo Welfare
Plan shall be effective as of January 1, 2015 rather than the Employee Transfer Date. It is the intention of the Parties that all activity under a SpinCo Welfare Plan Participant’s flexible spending account with RemainCo for plan year 2015
be treated instead as activity under the corresponding SpinCo FSA. Accordingly, (i) any period of participation by a SpinCo Welfare Plan Participant in a RemainCo flexible spending account during plan year 2015 (the “Participation
Period”) will be deemed a period when the SpinCo Welfare Plan Participant participated in the corresponding SpinCo FSA; (ii) all expenses incurred during a Participation Period will be deemed incurred while the participant’s coverage
was in effect under the corresponding SpinCo FSA; and (iii) all elections and reimbursements made with respect to a Participation Period under a RemainCo flexible spending account will be deemed to have been made with respect to the
corresponding SpinCo FSA. 
 (c) Employer Non-elective Contributions. As of the Employee Transfer Date, SpinCo has
caused any SpinCo Welfare Plan that constitutes a cafeteria plan under Section 125 of the Code to recognize and give effect to all non-elective employer contributions payable and paid toward coverage of a SpinCo Welfare Plan Participant under
the corresponding RemainCo Welfare Plan that is a cafeteria plan under Section 125 of the Code for the applicable cafeteria plan year. 

Section 7.5 Insurance Contracts. To the extent any RemainCo Welfare Plan is funded through the purchase of an insurance contract
or is subject to any stop loss contract, RemainCo and SpinCo will cooperate and use their commercially reasonable efforts to replicate such insurance contracts for SpinCo (except to the extent changes are required under applicable state

  
 - 38 - 

 
insurance laws) and to maintain any pricing discounts or other preferential terms for both RemainCo and SpinCo for a reasonable term. Neither Party shall be liable for failure to obtain such
pricing discounts or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges or administrative fees that such Party may incur pursuant to this Section 7.5. 

Section 7.6 Third-Party Vendors. Except as provided below, to the extent any RemainCo Welfare Plan is administered by a
third-party vendor, RemainCo and SpinCo will cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for SpinCo and to maintain any pricing discounts or other preferential terms for both
RemainCo and SpinCo for a reasonable term. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges or
administrative fees that such Party may incur pursuant to this Section 7.6. 
 Section 7.7 Claims Experience.
Notwithstanding the foregoing, RemainCo and SpinCo shall use commercially reasonable efforts to ensure that any claims experience under the RemainCo Welfare Plans attributable to SpinCo Welfare Beneficiaries shall be available to the SpinCo Welfare
Plans, as permitted by any applicable privacy protection laws or regulations or Privacy Contracts.  
 Section 7.8
Allocation of Demutualization Proceeds. To the extent demutualization or similar proceeds were paid or credited to the RemainCo Group or a RemainCo Welfare Plan prior to the Employee Transfer Date with respect to an insurance contract that
funded a RemainCo Welfare Plan covering SpinCo Welfare Plan Participants and such proceeds remain unallocated as of the Employee Transfer Date, RemainCo shall transfer to SpinCo as soon as practicable following the Employee Transfer Date a pro rata
portion of such proceeds, according to the proportion of the total number of SpinCo Employees and Former SpinCo Employees participating in such plan as of the day before the Employee Transfer Date to the total number of employees participating in
such plan as of the day before the Employee Transfer Date.  
 Section 7.9 Grandfathered Foundry Employees. Each
Grandfathered Foundry Employee shall be deemed to be a Former SpinCo Employee for purposes of this Article VII; provided, however, that on and after the Employee Transfer Date RemainCo shall continue to be responsible for providing pre-age 65
post-retirement medical and life insurance to each Grandfathered Foundry Employee who is eligible for such coverage under a RemainCo Welfare Plan as of immediately prior to the Employee Transfer Date until the earlier of (a) the last day of the
month in which such employee attains age 65 and (b) such other date as the employee ceases to be eligible for such coverage. SpinCo shall have the obligation to provide post-retirement medical and life insurance to each Grandfathered Foundry
Employee who is eligible for such coverage commencing with the first of the month following such employee’s attainment of age 65. Notwithstanding the foregoing, nothing in this Agreement shall constitute an acknowledgment by RemainCo or SpinCo
that either is obligated to continue to provide any level of post-retirement medical or life benefits for any period of time. 

  
 - 39 - 

 ARTICLE VIII 

BENEFIT ARRANGEMENTS 

Except as otherwise provided under this Agreement, effective as of the Employee Transfer Date, SpinCo Employees and Former SpinCo Employees
are no longer eligible to participate in any RemainCo Benefit Arrangement. 
 ARTICLE IX 

WORKERS’ COMPENSATION AND UNEMPLOYMENT COMPENSATION 

Section 9.1 General Principles. Subject to Section 9.2, effective as of the Employee Transfer Date, (a) SpinCo
shall have (and, to the extent it has not previously had such obligations, assume) the obligations for all claims and liabilities relating to workers’ compensation and unemployment compensation benefits for all SpinCo Employees and Former
SpinCo Employees and (b) RemainCo shall have (and, to the extent it has not previously had such obligations, assume) the obligations for all claims and liabilities relating to workers’ compensation and unemployment compensation benefits
for all RemainCo Employees and Former RemainCo Employees.  
 Section 9.2 Crossover Claims. Section 9.1 shall
not apply to a workers’ compensation claim of a SpinCo Employee, Former SpinCo Employee, RemainCo Employee or Former RemainCo Employee attributable to or arising in connection with work or services by such employee or former employee prior to
the Employee Transfer Date and which (a) arises in connection with (i) both (x) work or services performed for the RemainCo Business and (y) work or services performed for the SpinCo Business or (ii) work or services
performed for both the RemainCo Business and the SpinCo Business, (b) arises in connection with work or services performed by a SpinCo Employee or Former SpinCo Employee on behalf of a member of the RemainCo Group in the normal course of such
employee’s duties, or (c) arises in connection with work or services performed by a RemainCo Employee or Former RemainCo Employee on behalf of a member of the SpinCo Group in the normal course of such employee’s duties (any such claim
in (a), (b) or (c), a “Crossover Claim”). With respect to any Crossover Claim, effective as of the Employee Transfer Date, (i) SpinCo shall have (and, to the extent it has not previously had such obligations, assume) the
obligations for all Crossover Claims for which the last injurious exposure occurred at a location owned or operated by a SpinCo Entity, and (ii) RemainCo shall have (and, to the extent it has not previously had such obligations, assume) the
obligations for all Crossover Claims for which the last injurious exposure occurred at a location owned or operated by a RemainCo Entity. In the event that ownership or operation of such a location is not known with respect to a Crossover Claim,
responsibility for the claim will be allocated to SpinCo if the employee was employed by a SpinCo Entity at the time of last injurious exposure and to RemainCo if the employee was employed by a RemainCo Entity at the time of last injurious
exposure. 
 Section 9.3 Additional Details. SpinCo and RemainCo shall use commercially reasonable efforts to provide
that workers’ compensation and unemployment insurance costs are not adversely affected for either of them by reason of the Distribution. For the avoidance of 

  
 - 40 - 

 
doubt, the obligations for a workers’ compensation claim will be allocated between the Parties in accordance with Section 9.1 or 9.2, as applicable, even if the claim is registered or
becomes registered by the state workers’ compensation authority in the name of a Party (or the Affiliate of a Party) other than the Party to which the claim is allocated in accordance with Section 9.1 or 9.2, as applicable. The Party to
which a workers’ compensation claim is allocated pursuant to Sections 9.1 and 9.2 shall be responsible for all related costs and expenses, including compensation payments, medical payments, Disabled Workers’ Relief Fund payments,
self-insured assessments, legal fees and expenses, administration costs and expenses, and violations of specific safety requirement assessments/fines. 

Section 9.4 Ohio Guarantees. RemainCo shall indemnify, defend and hold harmless SpinCo and each member of the SpinCo Group
and their respective Affiliates, successors and assigns from and against any and all losses of such Persons relating to any liability arising from a SpinCo Ohio Guarantee as a result of any workers’ compensation claim allocated to RemainCo
pursuant to Section 9.1 or 9.2, as applicable. SpinCo shall indemnify, defend and hold harmless RemainCo, each member of the RemainCo Group and their respective Affiliates, successors and assigns from and against any and all losses of such
Persons relating to any liability arising from a RemainCo Ohio Guarantee as a result of any workers’ compensation claim allocated to SpinCo pursuant to Section 9.1 or 9.2, as applicable. 

ARTICLE X 
 RETENTION,
SEVERANCE AND OTHER MATTERS 
 Section 10.1 Retention Agreements. 

(a) SpinCo Obligations. Effective as of the Employee Transfer Date, RemainCo hereby assigns to SpinCo, and SpinCo hereby
accepts such assignment and assumes, RemainCo’s rights and obligations arising under the retention, severance and/or employment agreements described in Schedule 10.1(a), and SpinCo agrees to honor the terms and conditions of those agreements
applicable to SpinCo as a successor under the terms of such agreements. Except for SpinCo’s assumption of the retention, severance and/or employment agreements as described above, the terms of the retention agreements shall in all other
respects be unaffected. The Parties agree that the SpinCo Employees who are covered by retention, severance and/or employment agreements described above are express beneficiaries of this Section 10.1(a). 

(b) RemainCo Obligations. RemainCo shall continue to be responsible for and remain obligated under the retention,
severance and/or employment agreements described in Schedule 10.1(b) and agrees to honor the terms and conditions of those agreements. 

(c) Additional Obligations. SpinCo and RemainCo shall each be solely responsible for any other retention arrangements
entered into by any member of the SpinCo Group or any member of the RemainCo Group, respectively, and that are not otherwise allocated by this Agreement to a member of either the RemainCo Group or the SpinCo Group. 

(d) Effect on Equity Awards. Notwithstanding any provision of this Article X, and except as otherwise provided in
Article III, RemainCo shall remain responsible for administering and settling the RemainCo Equity Compensation Awards, and SpinCo shall remain responsible for administering and settling the SpinCo Equity Compensation Awards. Any provision in a
retention agreement described in Schedule 10.1(a) or 10.1(b) which provides for the accelerated vesting of equity awards shall apply in accordance with its terms to RemainCo Equity Compensation Awards and SpinCo Equity Compensation Awards on and
after the Employee Transfer Date. 

  
 - 41 - 

 Section 10.2 Severance. 

(a) Except as otherwise provided in this Agreement, on and after the Employee Transfer Date, RemainCo shall have no liability
or obligation under any RemainCo severance plan or policy with respect to SpinCo Employees or Former SpinCo Employees. 
 (b)
Except as otherwise provided in this Agreement, effective on and after the Employee Transfer Date, SpinCo shall assume and shall be responsible for administering all payments and benefits under the applicable RemainCo severance policies or any
termination agreements with Former SpinCo Employees whose employment terminated prior to the Employee Transfer Date for an eligible reason under such policies or in accordance with such agreements. 

Section 10.3 Accrued Time Off. SpinCo shall recognize and assume all liability for all vacation, holiday, sick leave, flex
days, personal days and paid-time off with respect to SpinCo Employees, and SpinCo shall credit each SpinCo Employee with such accrual effective as of the Employee Transfer Date. 

Section 10.4 Leaves of Absence. SpinCo will continue to apply the appropriate leave of absence policies applicable to
inactive SpinCo Employees who are on an approved leave of absence as of the Employee Transfer Date. Leaves of absence taken by SpinCo Employees prior to the Employee Transfer Date shall be deemed to have been taken as employees of a member of the
SpinCo Group. 
 Section 10.5 Collective Bargaining Agreements. The RemainCo Group shall have no further liability
for all collective bargaining agreements, collective agreements, multiemployer plans, pension and welfare plans and arrangements and trade union or works council agreements entered into with any member of the RemainCo Group, in each case with
respect to any union, works council or other body representing only SpinCo Employees and/or Former SpinCo Employees. 

Section 10.6 Director Programs. RemainCo shall retain responsibility for the payment of any fees payable in respect of
service on the RemainCo Board of Directors that are payable but not yet paid as of the Employee Transfer Date, and SpinCo shall not have any responsibility for any such payments. 

  
 - 42 - 

 Section 10.7 Restrictive Covenants in Employment and Other Agreements. 

(a) To the fullest extent permitted by the agreements described in this Section 10.7(a) and applicable law, RemainCo
hereby assigns, or shall cause a member of the RemainCo Group to assign, to SpinCo or a member of the SpinCo Group, as designated by SpinCo, all agreements containing restrictive covenants (including confidentiality and non-competition provisions)
between a member of the RemainCo Group and a SpinCo Employee or Former SpinCo Employee, with such assignment effective as of the Employee Transfer Date. To the extent that assignment of such agreements is not permitted, effective as of the Employee
Transfer Date, each member of the SpinCo Group shall be considered to be a successor to each member of the RemainCo Group for purposes of, and a third-party beneficiary with respect to, all agreements containing restrictive covenants (including
confidentiality and non-competition provisions) between a member of the RemainCo Group and a SpinCo Employee or Former SpinCo Employee whom SpinCo reasonably determines have substantial knowledge of the business activities of the SpinCo Group, such
that each member of the SpinCo Group shall enjoy all the rights and benefits under such agreements (including rights and benefits as a third-party beneficiary), with respect to the business operations of the SpinCo Group; provided, however, that in
no event shall RemainCo be permitted to enforce such restrictive covenant agreements against SpinCo Employees or Former SpinCo Employees for action taken in their capacity as employees of a member of the SpinCo Group. 

(b) To the fullest extent permitted by the agreements described in this Section 10.7(b) and applicable law, SpinCo hereby
assigns, or shall cause a member of the SpinCo Group to assign, to RemainCo or a member of the RemainCo Group, as designated by RemainCo, all agreements containing restrictive covenants (including confidentiality and non-competition provisions)
between a member of the SpinCo Group and a RemainCo Employee or Former RemainCo Employee, with such assignment effective as of the Employee Transfer Date. To the extent that assignment of such agreements is not permitted, effective as of the
Employee Transfer Date, each member of the RemainCo Group shall be considered to be a successor to each member of the SpinCo Group for purposes of, and a third-party beneficiary with respect to, all agreements containing restrictive covenants
(including confidentiality and non-competition provisions) between a member of the SpinCo Group and a RemainCo Employee or Former RemainCo Employee whom RemainCo reasonably determines have substantial knowledge of the business activities of the
RemainCo Group, such that RemainCo and each member of the RemainCo Group shall enjoy all the rights and benefits under such agreements (including rights and benefits as a third-party beneficiary), with respect to the business operations of the
RemainCo Group; provided, however, that in no event shall SpinCo be permitted to enforce such restrictive covenant agreements against RemainCo Employees or Former RemainCo Employees for action taken in their capacity as employees of a member of the
RemainCo Group. 
 Section 10.8 Non-Solicitation. 

(a) During the 18 month period commencing on the Distribution Date, RemainCo will not, directly or indirectly, on its own
behalf or in conjunction with any person or legal entity, recruit, solicit, or induce, or attempt to recruit, solicit or induce, any employee of the SpinCo Group to terminate his or her employment relationship with the SpinCo Group. The

  
 - 43 - 

 
foregoing restriction does not include the placement of general advertisements for employment with the RemainCo Group in the same types of print or electronic publications used by the RemainCo
Group to advertise for employment prior to the Distribution Date and consistent with RemainCo Group practice prior to the Distribution Date. RemainCo will advise any third parties recruiting on RemainCo’s behalf of the obligation set forth in
this Section 10.8 and will direct those third parties to comply with that obligation. 
 (b) During the 18 month period
commencing on the Distribution Date, SpinCo will not, directly or indirectly, on its own behalf or in conjunction with any person or legal entity, recruit, solicit, or induce, or attempt to recruit, solicit or induce, any employee of the RemainCo
Group to terminate their employment relationship with the RemainCo Group. The foregoing restriction does not include the placement of general advertisements for employment with the SpinCo Group in the same types of print or electronic publications
used by the SpinCo Group to advertise for employment prior to the Distribution Date and consistent with SpinCo Group practice prior to the Distribution Date. SpinCo will advise any third parties recruiting on SpinCo’s behalf of the obligation
set forth in this Section 10.8 and will direct those third parties to comply with that obligation. 
 ARTICLE XI 

GENERAL PROVISIONS 

Section 11.1 Preservation of Rights to Amend. The rights of each member of the RemainCo Group and each member of the SpinCo
Group to amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by this Agreement. 

Section 11.2 Confidentiality. Each Party agrees that any information conveyed or otherwise received by or on behalf of a
Party in conjunction herewith that is not otherwise public through no fault of such Party is confidential and is subject to the terms of the confidentiality provisions set forth in the Master Separation Agreement. 

Section 11.3 Administrative Complaints/Litigation. 

(a) Except as otherwise provided in this Agreement, on and after the Employee Transfer Date, SpinCo shall assume, and be solely
liable for, the handling, administration, investigation and defense of actions, including ERISA, occupational safety and health, employment standards, union grievances, wrongful dismissal, discrimination or human rights and unemployment compensation
claims asserted at any time against RemainCo or any member of the RemainCo Group by any SpinCo Employee or Former SpinCo Employee (including any dependent or beneficiary of any such Employee) or any other person, to the extent such actions or claims
arise out of or relate to employment or the provision of services (whether as an employee, contractor, consultant or otherwise) to or with respect to the business activities of any member of the SpinCo Group, whether or not such employment or
services were performed before or after the Distribution. 

  
 - 44 - 

 (b) Except as otherwise provided in this Agreement, on and after the Employee
Transfer Date, RemainCo shall assume, and be solely liable for, the handling, administration, investigation and defense of actions, including ERISA, occupational safety and health, employment standards, union grievances, wrongful dismissal,
discrimination or human rights and unemployment compensation claims asserted at any time against SpinCo or any member of the SpinCo Group by any RemainCo Employee or Former RemainCo Employee (including any dependent or beneficiary of any such
Employee) or any other person, to the extent such actions or claims arise out of or relate to employment or the provision of services (whether as an employee, contractor, consultant or otherwise) to or with respect to the business activities of any
member of the RemainCo Group, whether or not such employment or services were performed before or after the Distribution. 

(c) To the extent that any legal action relates to a putative or certified class of plaintiffs, which includes both RemainCo
Employees (or Former RemainCo Employees) and SpinCo Employees (or Former SpinCo Employees) and such action involves employment or benefit plan related claims, reasonable costs and expenses incurred by the Parties in responding to such legal action
shall be allocated among the Parties equitably in proportion to a reasonable assessment of the relative proportion of Employees included in or represented by the putative or certified plaintiff class. The procedures contained in the indemnification
and related litigation cooperation provisions of the Master Separation Agreement shall apply with respect to each Party’s indemnification obligations under this Section 11.3. 

Section 11.4 Reimbursement and Indemnification. RemainCo and SpinCo hereto agrees to reimburse the other Party, within 60
days of receipt from the other Party of reasonable verification, for all costs and expenses which the other Party may incur on its behalf as a result of any of the respective RemainCo and SpinCo Welfare Plans, Pension Plans, Thrift Plans and Benefit
Arrangements and, as contemplated by Section 10.2, any termination or severance payments or benefits. All liabilities retained, assumed or indemnified against by SpinCo pursuant to this Agreement, and all liabilities retained, assumed or
indemnified against by RemainCo pursuant to this Agreement, shall in each case be subject to the indemnification provisions of the Master Separation Agreement. Notwithstanding anything to the contrary, (i) no provision of this Agreement shall
require any member of the SpinCo Group to pay or reimburse to any member of the RemainCo Group any benefit-related cost item that a member of the SpinCo Group has previously paid or reimbursed to any member of the RemainCo Group; and (ii) no
provision of this Agreement shall require any member of the RemainCo Group to pay or reimburse to any member of the SpinCo Group any benefit-related cost item that a member of the RemainCo Group has previously paid or reimbursed to any member of the
SpinCo Group. 
 Section 11.5 Costs of Compliance with Agreement. Except as otherwise provided in this Agreement
or any other Ancillary Agreement, each Party shall pay its own expenses in fulfilling its obligations under this Agreement. 

Section 11.6 Fiduciary Matters. RemainCo and SpinCo each acknowledge that actions required to be taken pursuant to this Agreement
may be subject to fiduciary duties or standards of conduct under ERISA or other applicable law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good faith
determination (as supported by advice from counsel experienced in such matters) that to do so 

  
 - 45 - 

 
would violate such a fiduciary duty or standard. Each Party shall be responsible for taking such actions as are deemed necessary and appropriate to comply with its own fiduciary responsibilities
and shall fully release and indemnify the other Party for any liabilities caused by the failure to satisfy any such responsibility. 

Section 11.7 Registration Statement. Before the Distribution or as soon as reasonably practicable thereafter and subject to
applicable law, SpinCo shall prepare and file with the SEC one or more registration statements on Form S-1, Form S–8 or another appropriate form registering under the Securities Act of 1933 the offering of an aggregate number of shares of
SpinCo Common Stock at a minimum equal to the number of shares subject to the Replacement SpinCo Options, the Replacement SpinCo RSUs, the Additional SpinCo RSUs, the Additional SpinCo RSAs, the Replacement SpinCo Units, and the Replacement MEGTEC
Performance RSUs. SpinCo shall use commercially reasonable efforts to cause any such registration statement to be kept effective (and the current status of the prospectus or prospectuses required thereby shall be maintained) as long as any
Replacement SpinCo Options, Replacement SpinCo RSUs, Additional SpinCo RSUs, Additional SpinCo RSAs, Replacement SpinCo Units or Replacement MEGTEC Performance RSUs applicable to such registration statement may remain outstanding. 

Section 11.8 Entire Agreement. This Agreement, together with the documents referenced herein (including the Master
Separation Agreement, the Ancillary Agreements and the plans and agreements referenced herein), constitutes the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersedes all prior written and
oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof. To the extent any provision of this Agreement conflicts with the provisions of the Master Separation Agreement, the provisions of this
Agreement shall be deemed to control with respect to the subject matter hereof. 
 Section 11.9 Binding Effect; No
Third-Party Beneficiaries; Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns. Except as otherwise expressly provided in Section 10.1(a), this
Agreement is solely for the benefit of the Parties and should not be deemed to confer upon any third parties any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this Agreement.
Nothing in this Agreement is intended to amend any employee benefit plan or affect the applicable plan sponsor’s right to amend or terminate any employee benefit plan pursuant to the terms of such plan. Except as otherwise provided in
Section 10.1(a), the provisions of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director or independent contractor or any other individual associated therewith shall be regarded for any
purpose as a third-party beneficiary of this Agreement. This Agreement may not be assigned by any Party, except with the prior written consent of the other Party. 

Section 11.10 Amendment. No change or amendment may be made to this Agreement except by an instrument in writing signed on
behalf of both of the Parties.  
 Section 11.11 Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or
delay on the part of either Party in the exercise of any right hereunder shall impair such right or 

  
 - 46 - 

 
be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant or agreement contained herein, nor shall any single or partial exercise of any such right
preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement or the Schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

Section 11.12 Notices. Unless otherwise expressly provided herein, all notices, claims, certificates, requests, demands and
other communications hereunder shall be in writing and shall be deemed to be duly given: (i) when personally delivered, (ii) if mailed by registered or certified mail, postage prepaid, return receipt requested, on the date the return
receipt is executed or the letter is refused by the addressee or its agent, (iii) if sent by overnight courier which delivers only upon the executed receipt of the addressee, on the date the receipt acknowledgment is executed or refused by the
addressee or its agent, or (iv) if sent by facsimile or electronic mail, on the date confirmation of transmission is received (provided that a copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to clause
(i), (ii) or (iii)), addressed to the attention of the addressee’s General Counsel at the address of its principal executive office or to such other address or facsimile number for a Party as it shall have specified by like notice.

 Section 11.13 Counterparts. This Agreement, including the Schedules hereto and the other documents referred to
herein, may be executed in multiple counterparts, each of which when executed shall be deemed to be an original but all of which together shall constitute one and the same agreement. 

Section 11.14 Severability. If any term or other provision of this Agreement or the Schedules attached hereto is determined
by a nonappealable decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in
full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal
or incapable of being enforced, the court, administrative agency or arbitrator shall interpret this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated
hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable. 

Section 11.15 Governing Law. To the extent not preempted by applicable federal law, this Agreement shall be governed by,
and construed and enforced in accordance with, the substantive laws of the State of Delaware, without regard to any conflicts of law provisions thereof that would result in the application of the laws of any other jurisdiction. 

Section 11.16 Performance. Each of RemainCo and SpinCo shall cause to be performed, and hereby guarantees the performance
of, all actions, agreements and obligations set forth herein to be performed by any member of the RemainCo Group and any member of the SpinCo Group, respectively. The Parties each agree to take such further actions and to execute, acknowledge and
deliver, or to cause to be executed, acknowledged and delivered, all such further documents as are reasonably requested by the other for carrying out the purposes of this Agreement or of any document delivered pursuant to this Agreement. 

  
 - 47 - 

 Section 11.17 Construction. This Agreement shall be construed as if jointly
drafted by the Parties and no rule of construction or strict interpretation shall be applied against any Party. 

Section 11.18 Effect if Distribution Does Not Occur. Notwithstanding anything in this Agreement to the contrary, if the
Master Separation Agreement is terminated prior to the Distribution Date, this Agreement shall be of no further force and effect. 

[INTENTIONALLY LEFT BLANK] 

  
 - 48 - 

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

					
	THE BABCOCK & WILCOX COMPANY
		
	By:	 	 /s/ James D. Canafax

		 	Name:	 	James D. Canafax
		 	Title:	 	Senior Vice President, General Counsel and Chief Compliance Officer
	
	BABCOCK & WILCOX ENTERPRISES, INC.
		
	By:	 	 /s/ E. James Ferland

		 	Name:	 	E. James Ferland
		 	Title:	 	Chairman and Chief Executive Officer

 [SIGNATURE PAGE TO EMPLOYEE MATTERS AGREEMENT] 

 The company agrees to furnish supplementally a copy of any omitted exhibit or schedule to the Commission upon
request.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}]]