Document:

Amended and Restated Registration Rights Agreement

 Exhibit 10.3 
 [Execution Copy] 
 AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT 
 AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of February 26, 2007, between Halliburton Company,
a Delaware corporation (“Halliburton”), and KBR, Inc., a Delaware corporation (the “Company”). 
 WHEREAS,
Kellogg Energy Services, Inc., a Delaware corporation and a wholly owned subsidiary of Halliburton (“KESI”), owns approximately 81% of the capital stock of the Company outstanding as of the execution of this Agreement; and

 WHEREAS, in November 2006 the Company offered and sold to the public (the “Public Offering”) shares of the Company’s
Common Stock (as defined below) representing approximately 19% of the capital stock of the Company outstanding as of the execution of this Agreement; and 
 WHEREAS, in connection with the Public Offering, the Company and Halliburton entered into a Registration Rights Agreement, dated as of November 20, 2006 (the “Original Agreement”), pursuant to
which the Company granted to Halliburton and any of its Affiliates (other than the Company or any of its Subsidiaries) who from time to time own Registrable Securities (including without limitation KESI) certain registration rights applicable to
Registrable Securities (as defined below) held by Halliburton and such Affiliates; and 
 WHEREAS, Halliburton is currently contemplating
disposing of its remaining shares of Common Stock by means of an exchange offer under which Halliburton would offer the shares of Common Stock owned by Halliburton to Halliburton’s stockholders in exchange for shares of Halliburton’s
common stock at a specified exchange ratio, with any remaining unsubscribed shares of Common Stock to be disposed of by Halliburton by means of a subsequent spin-off distribution to Halliburton’s stockholders or sale (the “Exchange
Offer”); and 
 WHEREAS, Halliburton has requested the amendment of certain terms of the Original Agreement in connection with the
Exchange Offer; and 
 WHEREAS, the parties hereto desire to enter into this Agreement to amend certain terms of the Original Agreement and
to reflect the terms of Halliburton’s registration rights, as so amended; 
 NOW, THEREFORE, upon the premises and based on the mutual
promises herein contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 
 1. Certain Definitions. As used in this Agreement, the following initially capitalized terms shall have the following meanings: 
 (a) “Affiliate” means, with respect to any person, any other person who, directly or indirectly, is in control of, is controlled by or is under common control with the former person; and
“control” (including the terms “controlling,” “controlled by,” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities, by contract or otherwise. 
  

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 (b) “Common Stock” means the Company’s common stock, par value $0.001 per share.

 (c) “Company Securities” has the meaning set forth in Section 3 hereof. 
 (d) “Exchangeable Securities” has the meaning set forth in Section 6 hereof. 
 (e) “Exchange Offer Registration Statement” means the Company’s registration statement on Form S-4 to be filed with the SEC in
connection with the Exchange Offer, as may be amended from time to time. 
 (f) “Fair Market Value” means, with respect to
any security, (i) if the security is listed on a national securities exchange or authorized for quotation on a national market quotation system, the closing price, regular way, of the security on such exchange or quotation system, as the case
may be, or if no such reported sale of the security shall have occurred on such date, on the next preceding date on which there was such a reported sale, or (ii) if the security is not listed for trading on a national securities exchange or
authorized for quotation on a national market quotation system, the average of the closing bid and asked prices as reported by the National Association of Securities Dealers Automated Quotation System or such other reputable entity or system engaged
in the regular reporting of securities prices and on which such prices for such security are reported or, if no such prices shall have been reported for such date, on the next preceding date for which such prices were so reported, or (iii) if
the security is not publicly traded, the fair market value of such security as determined by a nationally recognized investment banking or appraisal firm mutually acceptable to the Company and the Holders, the fair market value of whose Registrable
Securities is to be determined. 
 (g) “Holder” means (i) Halliburton and any Affiliate of Halliburton (other than the
Company or any of its Subsidiaries) who from time to time owns Registrable Securities (including without limitation KESI) or (ii) any Permitted Transferee and any Affiliate of such Permitted Transferee who from time to time owns Registrable
Securities. 
 (h) “Initiating Holders” has the meaning set forth in Section 3(b) hereof. 
 (i) “Initiating Holder Securities” has the meaning set forth in Section 3(b) hereof. 
 (j) “IPO Underwriting Agreement” means that certain underwriting agreement, dated as of November 15, 2006, entered into by the
Company, KBR Holdings, LLC, and Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., and UBS Securities LLC, as representatives of the several underwriters for the Public Offering (collectively, the “IPO
Representatives”). 
  

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 (k) “Maximum Marketable Amount” means, when used in connection with an underwritten
offering, the aggregate number or principal amount of securities which, in the opinion of the managing underwriter for such offering, can be sold in such offering without materially and adversely affecting the offering. 
 (l) “Other Holders” has the meaning set forth in Section 3(b) hereof. 
 (m) “Other Securities” has the meaning set forth in Section 3 hereof. 
 (n) “Permitted Transferee” has the meaning set forth in Section 11 hereof. 
 (o) “Person” means any individual, partnership, corporation, limited liability company, business trust, joint stock company, trust,
unincorporated association, joint venture, or other entity of whatever nature. 
 (p) “Registrable After-Acquired
Securities” means any securities of the Company acquired by a Holder after the execution of the Original Agreement. 
 (q)
“Registrable Securities” means any of the following held by a Holder (i) the shares of Common Stock owned as of the execution of the Original Agreement by KESI, (ii) all Registrable After-Acquired Securities,
(iii) any stock or other securities into which or for which such Common Stock or Registrable After-Acquired Securities may hereafter be changed, converted or exchanged, and (iv) any other securities issued to holders of such Common Stock
or Registrable After-Acquired Securities (or such stock or other securities into which or for which such Common Stock or Registrable After-Acquired Securities are so changed, converted or exchanged) upon any reclassification, share combination,
share subdivision, share dividend, merger, consolidation or similar transaction or event, provided that any such securities shall cease to be Registrable Securities when such securities are sold in any manner to a person who is not a
Permitted Transferee or after the registration rights with respect to the Holder thereof has expired pursuant to Section 12(g). 
 (r)
“Registration Expenses” means all out-of-pocket expenses incurred in connection with any registration of Registrable Securities pursuant to this Agreement (other than Selling Expenses), including, without limitation, the following;
(i) SEC filing fees; (ii) all fees, disbursements and expenses of the Company’s counsel(s) and accountants in connection with the registration of the Registrable Securities to be disposed of and the reasonable fees, disbursements and
expenses of counsel, other than the Company’s counsel, selected by the Holders of the Registrable Securities to be disposed of; (iii) all expenses in connection with the preparation, printing and filing of the registration statement, any
preliminary prospectus or final prospectus and amendments and supplements thereto and the mailing and delivering of copies thereof to any Holders, underwriters and dealers and all expenses incidental to delivery of the Registrable Securities;
(iv) the cost of printing or producing any underwriting agreement, agreement among underwriters, agreement between syndicates, selling agreement, blue sky or legal investment memorandum or other document in connection with the offering, sale or
delivery of the Registrable Securities to be disposed of; (v) all expenses in connection with the qualification of the Registrable Securities to be disposed of for offering and sale under state securities laws, including the fees and
disbursements of counsel for the underwriters in connection with such 

  

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qualification and the preparation of any blue sky and legal investments surveys; (vi) the filing fees incident to securing any required review by the
National Association of Securities Dealers, Inc. of the terms of the sale of the Registrable Securities to be disposed of; (vii) transfer agents’, depositaries’ and registrars’ fees and the fees of any other agent appointed in
connection with such offering; (viii) all security engraving and security printing expenses, (ix) all fees and expenses payable in connection with the listing of the Registrable Securities on any securities exchange or inter-dealer
quotation system; (x) all expenses incurred in connection with “roadshow” presentations and holding meetings with potential investors to facilitate the distribution and sale of Registrable Securities; and (xi) any one-time
payment for directors and officers insurance directly related to such offering, provided the insurer provides a separate statement for such payment. 
 (s) “Rule 144” means Rule 144 promulgated under the Securities Act, or any successor rule to similar effect. 
 (t) “SEC” means the United States Securities and Exchange Commission. 
 (u)
“Securities Act” means the Securities Act of 1933, as amended, or any successor statute. 
 (v) “Selling
Expenses” means all underwriting discounts and commissions, selling concessions and stock transfer taxes applicable to the sale by the Holders of Registrable Securities pursuant to this Agreement, including any fees payable to any dealer
manager for the Exchange Offer. 
 (w) “Selling Holder” has the meaning set forth in Section 5(e) hereof. 

2. Demand Registration. 
 (a) At
any time prior to such time as the rights under this Section 2 terminate with respect to a Holder as provided in Section 2(a)(iii) hereof, upon written notice from such Holder in the manner set forth in Section 12(i) hereof requesting
that the Company effect the registration under the Securities Act of any or all of the Registrable Securities held by such Holder or any of its Affiliates, which notice shall specify the intended method or methods of disposition of such Registrable
Securities, the Company shall use its best efforts to effect, in the manner set forth in Section 5, the registration under the Securities Act of such Registrable Securities for disposition in accordance with the intended method or methods of
disposition stated in such request (including (1) in an offering on a delayed or continuous basis under Rule 415 (or any successor rule of similar effect) promulgated under the Securities Act and accordingly requiring the filing of a
“shelf” registration statement and/or (2) sales for cash or dispositions upon exchange or conversion of securities or dispositions for any form of consideration or no consideration), provided that: 
 (i) if, while a registration request is pending pursuant to this Section 2(a), the Company determines, following consultation with
and receiving advice from its legal counsel, that the filing of a registration statement would require the disclosure of material information that the Company has a bona fide business purpose for preserving as confidential and the disclosure of
which the 

  

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Company determines reasonably and in good faith would have a material adverse effect on the Company, the Company shall not be required to effect a
registration pursuant to this Section 2(a) until the earlier of (A) the date upon which such material information is otherwise disclosed to the public or ceases to be material and (B) 30 days after the Company makes such
determination, provided, however, that the Company shall not be permitted to delay a requested registration in reliance on this clause (i) more than twice in any 12-month period; 
 (ii) the Company shall not be obligated to file a registration statement relating to a registration request pursuant to this
Section 2: (A) for so long as any lock-up restrictions provided for under the terms of Section 5(h) of the IPO Underwriting Agreement prohibit the Company from filing a registration statement relating to any such registration request,
unless the filing of a registration statement relating to any such registration request has been consented to by the IPO Representatives in accordance with the terms of Section 5(h) of the IPO Underwriting Agreement, or (B) within a period
of 60 days after the effective date of any other registration statement of the Company demanded pursuant to this Section 2(a); and 
 (iii) the Company shall not be obligated to file a registration statement relating to a registration request pursuant to this Section 2: (A) in the case of a registration request by Halliburton or any of its
Affiliates, on more than three occasions after such time as Halliburton and its Affiliates collectively own less than a majority of the voting power of the then outstanding shares of Common Stock (it being acknowledged that so long as Halliburton
and its Affiliates collectively own a majority of the voting power of the then outstanding shares of Common Stock, there shall be no limit to the number of occasions on which Halliburton or its Affiliates may exercise their rights under this
Section 2), or (B) in the case of a registration request by a Permitted Transferee or any of its Affiliates, on more than the number of occasions permitted such Holder in accordance with Section 11 hereof (it being acknowledged that
(1) the exercise by such Permitted Transferee and its Affiliates of such rights shall not limit the number of occasions on which Halliburton and its Affiliates may exercise their rights under this Section 2 and (2) so long as such
Permitted Transferee and its Affiliates collectively own a majority of the then outstanding shares of Common Stock, there shall be no limit to the number of occasions on which such Permitted Transferee or its Affiliates may exercise their rights
under this Section 2). 
 (b) Notwithstanding any other provision of this Agreement to the contrary, a registration requested by a
Holder pursuant to this Section 2 shall not be deemed to have been effected (and, therefore, not requested for purposes of Section 2(a)), (i) unless the registration statement filed in connection therewith has become effective,
(ii) if after such registration statement has become effective, it becomes subject to any stop order, or there is issued an injunction or other order or decree of the SEC or other governmental agency or court for any reason other than a
misrepresentation or an omission by such Holder, which injunction, order or decree prohibits or otherwise materially and adversely affects the offer and sale of the Registrable Securities so registered prior to the completion of the distribution
thereof in 

  

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accordance with the plan of distribution set forth in the registration statement or (iii) if the conditions to closing specified in the purchase
agreement or underwriting agreement entered into in connection with such registration are not satisfied other than by reason of some act, misrepresentation or omission by a Holder and are not waived by the purchasers or underwriters. 
 (c) In the event that any registration pursuant to this Section 2 shall involve, in whole or in part, an underwritten offering, Holders owning at
least 50.1% of the Fair Market Value of the Registrable Securities to be registered in connection with such offering shall have the right to designate an underwriter reasonably satisfactory to the Company as the lead managing underwriter of such
underwritten offering. 
 (d) The Company shall have the right to cause the registration of additional securities for sale for the account of
any person (including the Company) in any registration of Registrable Securities requested by any Holder pursuant to Section 2(a), other than the Exchange Offer; provided, however, that if the managing underwriter or other
independent marketing agent for such offering (if any) determines that, in its opinion, the additional securities proposed to be sold will materially and adversely affect the offering and sale of the Registrable Securities to be registered in
accordance with the intended method or methods of disposition then contemplated by such Holder, only the number or principal amount of such additional securities, if any (in excess of the number or principal amount of Registrable Securities), which,
in the opinion of such underwriter or agent, can be so sold without materially and adversely affecting such offering shall be included in such registration. The rights of a Holder to cause the registration of additional Registrable Securities held
by such Holder in any registration of Registrable Securities requested by another Holder pursuant to Section 2(a) shall be governed by the agreement of the Holders with respect thereto as provided in Section 11(a). 
 (e) The Company shall not be obligated to file a registration statement relating to a registration request by a Holder pursuant to this Section 2
from and after such time as such Holder (together with any Affiliates of such Holder) first owns Registrable Securities representing (assuming for this purpose the conversion, exchange or exercise of all Registrable Securities then owned by such
Holder that are convertible into or exercisable or exchangeable for Common Stock of the Company) less than 10% of the then issued and outstanding Common Stock of the Company. 
 3. Piggyback Registration. If the Company at any time proposes to register any of its Common Stock or any of its other securities (such Common
Stock and other securities collectively, “Other Securities”) under the Securities Act, whether or not for sale for its own account, in a manner which would permit registration of Registrable Securities under the Securities Act, it
will at such time give prompt written notice to each Holder of its intention to do so at least 20 business days prior to the anticipated filing date of the registration statement relating to such registration. Such notice shall offer each such
Holder the opportunity to include in such registration statement such number of Registrable Securities as each such Holder may request. Upon the written request of any such Holder made within 15 business days after the receipt of the Company’s
notice (which request shall specify the number of Registrable Securities intended to be disposed of and the intended method of disposition thereof), the Company shall effect, in the manner set forth in Section 5, in connection with the
registration of the Other Securities, the registration under the Securities Act of all Registrable Securities which 
  

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the Company has been so requested to register, to the extent required to permit the disposition (in accordance with such intended methods thereof) of the
Registrable Securities so requested to be registered, provided that: 
 (a) if at any time after giving written notice of its intention
to register any securities and prior to the effective date of such registration, the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written notice of such
determination to the Holders and, thereupon, (A) in the case of a determination not to register, the Company shall be relieved of its obligation to register any Registrable Securities in connection with such registration and (B) in the
case of a determination to delay such registration, the Company shall be permitted to delay registration of any Registrable Securities requested to be included in such registration for the same period as the delay in registering such Other
Securities, but, in either such case, without prejudice to the rights of the Holders under Section 2; 
 (b)(i) if the registration
referred to in the first sentence of this Section 3 is to be a registration in connection with an underwritten offering on behalf of any of the Company, holders of securities (other than Registrable Securities) of the Company (“Other
Holders”) or Holders of Registrable Securities, and the managing underwriter for such offering advises the Company in writing that, in such firm’s opinion, such offering would be materially and adversely affected by the inclusion
therein of Registrable Securities requested to be included therein pursuant to this Section 3 because such Registrable Securities are not of the same type, class or series as the securities to be offered and sold in such offering on behalf of
the Company, the Other Holders and/or the Holders of Registrable Securities, the Company may exclude all such Registrable Securities requested to be included therein pursuant to this Section 3 from such offering. 
 (ii) if the registration referred to in the first sentence of this Section 3 is to be a registration in connection with an underwritten primary
offering on behalf of the Company, and the managing underwriter for such offering advises the Company in writing that, in such firm’s opinion, such offering would be materially and adversely affected by the inclusion therein of the
Holder’s Registrable Securities requested to be included therein pursuant to this Section 3 because the number or principal amount of such Registrable Securities, considered together with the number or principal amount of securities
proposed to be offered by the Company, exceeds the Maximum Marketable Amount, the Company shall include in such registration (1) first, the lesser of (A) all securities the Company proposes to sell for its own account (“Company
Securities”) and (B) the number or principal amount of Company Securities that represents 80% of the total number or principal amount of the Maximum Marketable Amount (or the fair market value of the Maximum Marketable Amount if such
Registrable Securities are not of the same type, class or series as the Company Securities) included in such registration; (2) second, the lesser of (A) the number or principal amount of Registrable Securities requested to be included
therein pursuant to this Section 3 and (B) the number or principal amount of such Registrable Securities that represents 20% of the total number or principal amount of the Maximum Marketable Amount (or the fair market value of the Maximum
Marketable Amount if such Registrable Securities are not of the same type, class or series as the Company Securities) included in such registration (in either case, allocated among the Holders in accordance with the agreement of the Holders with
respect thereto as provided in Section 11(a)); and (3) third, the 

  

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number or principal amount of securities, if any, requested to be included therein by Other Holders (in excess of the number or principal amount of Company
Securities and such Registrable Securities) which, in the opinion of such underwriter, can be so sold without materially and adversely affecting such offering (allocated among such Other Holders on the basis of the number or principal amount (or the
fair market value of such securities if the securities are not of the same type, class or series) of the securities requested to be included therein by each such Other Holder); and 
 (iii) if the registration referred to in the first sentence of this Section 3 is to be a registration in connection with an underwritten secondary
offering on behalf of Other Holders made pursuant to demand registration rights granted by the Company to such Other Holders or on behalf of a Holder of Registrable Securities made pursuant to Section 2 of this Agreement (the
“Initiating Holders”), and the managing underwriter for such offering advises the Company in writing that, in such firm’s opinion, such offering would be materially and adversely affected by the inclusion therein of the
Holder’s Registrable Securities requested to be included therein pursuant to this Section 3 because the number or principal amount of such Registrable Securities, considered together with the number or principal amount of securities
proposed to be offered by the Initiating Holders, exceeds the Maximum Marketable Amount, the Company shall include in such registration; (1) first, all securities any such Initiating Holder proposes to sell for its own account (the
“Initiating Holder Securities”); (2) second, the number or principal amount of such Registrable Securities (in excess of the number or principal amount of Initiating Holder Securities) which, in the opinion of such underwriter,
can be sold without materially and adversely affecting such offering (allocated among the Holders in accordance with the agreement of the Holders with respect thereto as provided in Section 11(a)); and (3) third, the number or principal
amount of securities, if any, requested to be included therein by Other Holders to which clause (1) does not apply or the Company (in excess of the number or principal amount of Initiating Holder Securities and such Registrable Securities)
which, in the opinion of such underwriter, can be so sold without materially and adversely affecting such offering (allocated among such Other Holders and the Company on the basis of the number or principal amount (or the fair market value of such
securities if the securities are not of the same type, class or series) of the securities requested to be included therein by each such Other Holder or the Company; and 
 (c) the Company shall not be required to effect any registration of Registrable Securities under this Section 3 incidental to (i) the registration of any of its securities in connection with stock option or
other executive or employee benefit or compensation plans of the Company, or (ii) the registration of any of its equity securities to be issued solely in connection with the Company’s acquisition of an entity or business in a transaction
governed by Rule 145 promulgated under the Securities Act; and 
 (d) no registration of Registrable Securities effected under this
Section 3 shall relieve the Company of its obligation to effect any registration of Registrable Securities required of the Company pursuant to Section 2 hereof. 
 4. Expenses. Except as otherwise provided in this Section 4, the Company agrees to pay all Registration Expenses with respect to a registration pursuant to this Agreement. All internal expenses of the
Company or a Holder in connection with any offering pursuant to this Agreement, including, without limitation, the salaries and expenses of officers and employees, 
  

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including in-house attorneys, shall be borne by the party incurring them. All Selling Expenses of the Holders participating in any registration pursuant to
this Agreement shall be borne by such Holders pro rata based on each Holder’s number of Registrable Securities included in such registration. Notwithstanding the foregoing, Halliburton will (i) reimburse the Company with respect to
SEC filing fees and New York Stock Exchange listing fees incurred by the Company in connection with the Exchange Offer and the filing of the Exchange Offer Registration Statement, (ii) reimburse the Company with respect to any fees and expenses
of the Company’s independent public accountants paid by the Company in connection with the preparation and filing of the Exchange Offer Registration Statement, and (iii) pay the Company an amount equal to (A) the total costs incurred
by the Company with respect to the reasonable fees and expenses of the independent legal counsel and independent financial advisor retained by the special committee of the Company’s board of directors formed in connection with the
Company’s review of certain matters relating to the Exchange Offer, multiplied by (B) the Reimbursement Factor (as defined below). The term “Reimbursement Factor” means the amount (rounded to the nearest four decimal
places) equal to (i) 135,627,000 less the total number of shares of Common Stock issued in exchange for tendered shares of Halliburton common stock accepted by Halliburton upon consummation of the Exchange Offer; divided by
(ii) 135,627,000. If the Exchange Offer is commenced but ultimately not consummated, the Reimbursement Factor shall be deemed to be 100%. 
 5. Registration and Qualification. If and whenever the Company is required to use its best efforts to effect the registration of any Registrable Securities under the Securities Act as provided in Section 2 or 3 hereof, the
Company, shall: 
 (a) prepare and file a registration statement under the Securities Act relating to the Registrable Securities to be offered
as soon as practicable, but in no event later than 30 days (45 days if the applicable registration form is other than Form S-3) after the date notice is given, and use its best efforts to cause the same to become effective as soon as practicable
thereafter, but in no event later than 75 days after the date notice is given (90 days if the applicable registration form is other than Form S-3); provided that, a reasonable time before filing a registration statement or prospectus, or any
amendments or supplements thereto (other than reports required to be filed by it under the Exchange Act and the rules and regulations adopted by the SEC thereunder), the Company will furnish to the Holders and their counsel and other representatives
(including underwriters) for review and comment, copies of all documents proposed to be filed and provided further, that if Halliburton so requests (i) it and its counsel and other representatives (including underwriters) may
participate in the drafting and preparation of such registration statement and prospectus and (ii) such information as it believes may be beneficial to be included in the registration statement and prospectus for marketing purposes shall be
included therein so long as disclosure of such information (A) is in compliance with applicable law and (B) does not competitively harm the Company; 
 (b) prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective with
respect to the disposition of all Registrable Securities included therein and to otherwise comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities included therein until the earlier of
(i) such time as all of such Registrable Securities have been disposed of in accordance with the 

  

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intended methods of disposition set forth in such registration statement and (ii) the expiration of nine months after such registration statement
becomes effective; provided, that such nine-month period shall be extended for such number of days that equals the number of days elapsing from (A) the date the written notice contemplated by paragraph (f) below is given by the
Company to (B) the date on which the Company delivers to the Holders the supplement or amendment contemplated by paragraph (f) below; and provided further, that in the case of a registration to permit the exercise or exchange of
Exchangeable Securities for, or the conversion of Exchangeable Securities into, Registrable Securities, the time limitation contained in clause (ii) above shall be disregarded to the extent that, in the written opinion of Halliburton’s
counsel delivered to the Company, such Registrable Securities are required to be covered by an effective registration statement under the Securities Act at the time such Registrable Securities are issued upon exercise, exchange or conversion of
Registrable Securities in order for such Registrable Securities to be freely tradeable by any person who is not an Affiliate of the Company or Halliburton; 
 (c) furnish to the Holders and to any underwriter of such Registrable Securities such number of conformed copies of such registration statement and of each amendment thereto (in each case including all exhibits), such
number of copies of the prospectus included in such registration statement (including each preliminary prospectus and any summary prospectus) and of each supplement thereto, in conformity with the requirements of the Securities Act, and such other
documents, as the Holders or such underwriter may reasonably request in order to facilitate the public sale of the Registrable Securities, and a copy of any and all transmittal letters or other correspondence to, or received from, the SEC or any
other governmental agency or self-regulatory body or other body having jurisdiction (including any domestic or foreign securities exchange) relating to such offering; 
 (d) use its best efforts to register or qualify all Registrable Securities covered by such registration statement under the securities or blue sky laws of such jurisdictions (domestic or foreign) as the Holders or any
underwriter of such Registrable Securities shall request, and use its best efforts to obtain all appropriate registrations, permits and consents required in connection therewith, and do any and all other acts and things which may be necessary or
advisable to enable the Holders or any such underwriter to consummate the disposition in such jurisdictions of its Registrable Securities covered by such registration statement; provided that the Company shall not for any such purpose be
required to register or qualify generally to do business as a foreign corporation in any jurisdiction wherein it is not so qualified, or to subject itself to taxation in any such jurisdiction, or to consent to general service of process in any such
jurisdiction; 
 (e) (i) use its best efforts to furnish an opinion of counsel for the Company addressed to the underwriters dated the date
or dates provided for under the underwriting agreement (if any) (or if such offering is not underwritten, dated the effective date of the registration statement), and (ii) use its best efforts to furnish a “cold comfort” letter
addressed to the underwriters and each Holder of Registrable Securities included in such registration (each a “Selling Holder”), if permissible under applicable accounting practices, and signed by the independent public accountants
who have audited the Company’s financial statements included in such registration statement, in each such case covering substantially the same matters with respect to such registration statement (and the prospectus included therein) as are
customarily 

  

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covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in underwritten public offerings of securities and
such other matters as the Selling Holders may reasonably request and, in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements; 
 (f) immediately notify the Selling Holders in writing (i) at any time when a prospectus relating to a registration pursuant to Section 2 or 3
hereof is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, (ii) of any request by the SEC or any other regulatory body or other
body having jurisdiction for any amendment of or supplement to any registration statement or other document relating to such offering, and (iii) of the issuance by the SEC of any stop order suspending the effectiveness of any registration
statement relating to such offering or the initiation of proceedings for that purpose and in any such case (i), (ii) or (iii) at the request of the Selling Holders, promptly prepare and furnish to the Selling Holders a reasonable number of
copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they are made, not misleading or to remove such stop order; 
 (g) use its best efforts to list all such Registrable Securities covered by such registration on each securities exchange and inter-dealer quotation
system on which the Common Stock is then listed; 
 (h) use its best efforts to list all Registrable Securities covered by such registration
statement on any securities exchange or inter-dealer quotation system (in each case, domestic or foreign) not described in paragraph (g) above as the Selling Holders or any underwriter of such Registrable Securities shall reasonably request,
and use its best efforts to obtain all appropriate registrations, permits and consents required in connection therewith, and to do any and all other acts and things which may be necessary or advisable to effect such listing; 
 (i) to the extent reasonably requested by the lead or managing underwriters in connection with any underwritten offering, send appropriate officers of
the Company to attend any “road shows” scheduled in connection with any such registration; 
 (j) furnish for delivery in
connection with the closing of any offering of Registrable Securities unlegended certificates representing ownership of the Registrable Securities being sold in such denominations as shall be requested by the Selling Holders or the underwriters; and

 (k) use its best efforts to make available to its security holders, as soon as reasonably practicable (but not more than eighteen months)
after the effective date of the registration statement, an earnings statement which shall satisfy the provisions of Section 11(a) of the Securities Act and the rules and regulations promulgated thereunder. 
  

 -11- 

 The Company may require each Selling Holder to furnish the Company with such information regarding such
Selling Holder and pertinent to the disclosure requirements relating to the registration and the distribution of such securities as the Company may from time to time reasonably request. 
 6. Exchangeable Securities; Spin-off or Exchange Offer. Halliburton shall be entitled, if it intends to offer any options, rights, warrants, debt
securities, preference shares or other securities issued or to be issued by it or any other person that are exercisable or exchangeable for or convertible into any Registrable Securities (“Exchangeable Securities”), to register the
Registrable Securities underlying such options, rights, warrants, debt securities, preference shares or other securities pursuant to (and subject to the limitations contained in) Section 2 of this Agreement. Halliburton shall also be entitled,
if it intends to distribute Registrable Securities to the holders of its common stock or other securities (including any distribution in exchange for Halliburton common stock or other securities) by means of a distribution or exchange offer,
including, without limitation, the Exchange Offer, to register such Registrable Securities pursuant to (and subject to the limitations contained in) Section 2 of this Agreement. 
 7. Underwriting; Due Diligence. 
 (a)
If requested by the underwriters for any underwritten offering of Registrable Securities pursuant to a registration requested under this Agreement, the Company shall enter into an underwriting agreement, with such underwriters for such offering,
such agreement to contain such representations and warranties by the Company and such other terms and provisions as are customarily contained in underwriting agreements with respect to secondary distributions, including, without limitation,
indemnities and contribution substantially to the effect and to the extent provided in Section 8 hereof and the provision of opinions of counsel and accountants’ letters to the effect and to the extent provided in Section 5(e) hereof.
The Selling Holders on whose behalf the Registrable Securities are to be distributed by such underwriters shall be parties to any such underwriting agreement and the representations and warranties by, and the other agreements on the part of, the
Company to and for the benefit of such underwriters, shall also be made to and for the benefit of such Selling Holders. Such underwriting agreement shall also contain such representations and warranties by the Selling Holders on whose behalf the
Registrable Securities are to be distributed as are customarily contained in underwriting agreements with respect to secondary distributions. The Selling Holders may require that any additional securities included in an offering proposed by a Holder
be included on the same terms and conditions as the Registrable Securities that are included therein. 
 (b) In the event that any
registration pursuant to Section 3 shall involve, in whole or in part, an underwritten offering, the Company may require the Registrable Securities requested to be registered pursuant to Section 3 to be included in such underwritten
offering on the same terms and conditions as shall be applicable to the other securities being sold through underwriters under such registration. If requested by the underwriters for such underwritten offering, the Selling Holders on whose behalf
the Registrable Securities are to be distributed shall enter into an underwriting agreement with such underwriters, such agreement to contain such representations and warranties by the Selling Holders and such other terms and provisions as are
customarily contained in underwriting agreements with respect to secondary distributions, 

  

 -12- 

 
including, without limitation, indemnities and contribution substantially to the effect and to the extent provided in Section 8 hereof. Such
underwriting agreement shall also contain such representations and warranties by the Company and such other person or entity for whose account securities are being sold in such offering as are customarily contained in underwriting agreements with
respect to secondary distributions. 
 (c) In connection with the preparation and filing of each registration statement registering
Registrable Securities under the Securities Act, the Company shall give the Holders of such Registrable Securities and the Underwriters, if any, and their respective counsel and accountants, such reasonable and customary access to its books and
records and such opportunities to discuss the business of the Company with its officers and the independent public accountants who have certified the Company’s financial statements as shall be necessary, in the opinion of such Holders and such
underwriters or their respective counsel, to conduct a reasonable investigation within the meaning of the Securities Act. 
 8.
Indemnification and Contribution. 
 (a) In the case of each offering of Registrable Securities made pursuant to this Agreement, the
Company agrees to indemnify and hold harmless each Holder, its officers and directors, each underwriter of Registrable Securities so offered and each person, if any, who controls any of the foregoing persons within the meaning of the Securities Act,
from and against any and all claims, liabilities, losses, damages, expenses and judgments, joint or several, to which they or any of them may become subject, under the Securities Act or otherwise, including any amount paid in settlement of any
litigation commenced or threatened, and shall promptly reimburse them, as and when incurred, for any reasonable legal or other expenses incurred by them in connection with investigating any claims and defending any actions, insofar as such losses,
claims, damages, liabilities or actions shall arise out of, or shall be based upon, any untrue statement or alleged untrue statement of a material fact contained in the registration statement (or in any preliminary or final prospectus included
therein) or any amendment or supplement thereto, or in any document incorporated by reference therein, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not
misleading; provided, however, that the Company shall not be liable to a particular Holder in any such case to the extent that any such loss, claim, damage, liability or action arises out of, or is based upon, any untrue statement or
alleged untrue statement, or any omission, if such statement or omission shall have been made in reliance upon and in conformity with information relating to such Holder furnished to the Company in writing by or on behalf of such Holder and
identified in such writing as being specifically for use in the preparation of the registration statement (or in any preliminary or final prospectus included therein) or any amendment or supplement thereto, which information, with respect to the
Exchange Offer Registration Statement, consists of the information specified in Section 8(e). Such indemnity shall remain in full force and affect regardless of any investigation made by or on behalf of a Holder and shall survive the transfer
of such securities. The foregoing indemnity agreement is in addition to any liability which the Company may otherwise have to each Holder, any of such Holder’s directors or officers, underwriters of the Registrable Securities or any controlling
person of the foregoing; provided, further, that this indemnity does not apply in favor of any underwriter or person controlling an underwriter (or if a Selling Holder offers Registrable Securities directly without an underwriter, the
Selling Holder) with respect to any loss, liability, 

  

 -13- 

 
claim, damage or expense arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission in any preliminary
prospectus if a copy of a final prospectus was not sent or given by or on behalf of an underwriter (or the Selling Holder, if the Selling Holder offered the Registrable Securities directly without an underwriter) to the person asserting such loss,
claim, damage, liability or action at or prior to the written confirmation of the sale of the Registrable Securities if so required by the Securities Act and such untrue statement or omission had been corrected in such final prospectus. 

(b) In the case of each offering made pursuant to this Agreement, each Holder of Registrable Securities included in such offering, by exercising its
registration rights hereunder, agrees to indemnify and hold harmless the Company, its officers and directors and each person, if any, who controls any of the foregoing within the meaning of the Securities Act (and if requested by the underwriters,
each underwriter who participates in the offering and each person, if any, who controls any such underwriter within the meaning of the Securities Act), from and against any and all claims, liabilities, losses, damages, expenses and judgments, joint
or several, to which they or any of them may become subject, under the Securities Act or otherwise, including any amount paid in settlement of any litigation commenced or threatened, and shall promptly reimburse them, as and when incurred, for any
legal or other expenses incurred by them in connection with investigating any claim and defending any actions, insofar as any such losses, claims, damages, liabilities or actions shall arise out of, or shall be based upon, any untrue statement or
alleged untrue statement of a material fact contained in the registration statement (or in any preliminary or final prospectus included therein) or any amendment or supplement thereto, or any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading, but in each case only to the extent that such untrue statement of a material fact is contained in, or such material fact is omitted from, information
relating to such Holder furnished in writing to the Company by or on behalf of such Holder and identified in such writing as being specifically for use in the preparation of such registration statement (or in any preliminary or final prospectus
included therein), which information, with respect to the Exchange Offer Registration Statement, consists of the information specified in Section 8(e). The foregoing indemnity is in addition to any liability which such Holder may otherwise have
to the Company, any of its directors or officers, underwriters who participates in the offering or any controlling person of the foregoing; provided, however, that this indemnity does not apply in favor of any underwriter or person
controlling an underwriter (or if the Company offers securities directly without an underwriter, the Company) with respect to any loss, liability, claim, damage or expense arising out of or based upon any untrue statement or alleged untrue statement
or omission or alleged omission in any preliminary prospectus if a copy of a final prospectus was not sent or given by or on behalf of an underwriter (or the Company, if the Company offered the securities directly without an underwriter) to the
person asserting such loss, claim, damage, liability or action at or prior to the written confirmation of the sale of the securities if so required by the Securities Act and such untrue statement or omission had been corrected in such final
prospectus. 
 (c) Each party indemnified under Paragraph (a) or (b) of this Section 8 shall, promptly after receipt of notice
of any claim or the commencement of any action against such indemnified party in respect of which indemnity may be sought, notify the indemnifying party in writing of the claim or the commencement thereof; provided that the failure to notify
the indemnifying party shall not relieve it from any liability which it may have to an indemnified 

  

 -14- 

 
party on account of the indemnity agreement contained in paragraph (a) or (b) of this Section 8, except to the extent the indemnifying party
was materially prejudiced by such failure, and in no event shall relieve the indemnifying party from any other liability which it may have to such indemnified party. If any such claim or action shall be brought against an indemnified party, and such
indemnified party notifies the indemnifying party thereof, the indemnifying party shall be entitled to participate therein, and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense
thereof with counsel reasonably satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the indemnifying party shall not be liable to the
indemnified party under this Section 8 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided that each indemnified
party, its officers and directors, if any, and each person, if any, who controls such indemnified party within the meaning of the Securities Act, shall have the right to employ separate counsel reasonably approved by the indemnifying party to
represent them if the named parties to any action (including any impleaded parties) include both such indemnified party and an indemnifying party or an Affiliate of an indemnifying party, and such indemnified party shall have been advised by counsel
a conflict may exist between such indemnified party and such indemnifying party or such Affiliate that makes representation by the same counsel inadvisable, and in that event the fees and expenses of one such separate counsel for all such
indemnified parties shall be paid by the indemnifying party. An indemnified party will not enter into any settlement agreement which is not approved by the indemnifying party, such approval not to be unreasonably withheld. The indemnifying party may
not agree to any settlement of any such claim or action which provides for any remedy or relief other than monetary damages for which the indemnifying party shall be responsible hereunder, without the prior written consent of the indemnified party,
which consent shall not be unreasonably withheld. In any action hereunder as to which the indemnifying party has assumed the defense thereof with counsel reasonably satisfactory to the indemnified party, the indemnified party shall continue to be
entitled to participate in the defense thereof, with counsel of its own choice, but, except as set forth above, the indemnifying party shall not be obligated hereunder to reimburse the indemnified party for the costs thereof. In all instances, the
indemnified party shall cooperate fully with the indemnifying party or its counsel in the defense of such claim or action. 
 (d) If the
indemnification provided for in this Section 8 shall for any reason be unavailable to or insufficient to hold harmless an indemnified party in respect of any loss, claim, damage or liability, or any action in respect thereof, referred to
herein, then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability, or action in respect thereof, in
such proportion as shall be appropriate to reflect the relative fault of the indemnifying party on the one hand and the indemnified party on the other with respect to the statements or omissions which resulted in such loss, claim, damage or
liability, or action in respect thereof, as well as any other relevant equitable considerations. The relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission
to state a material fact relates to information related to and supplied by the indemnifying party on the one hand or the indemnified party on the other, the intent of the parties and their relative knowledge, access to information and opportunity to
correct or prevent such statement or omission, but not by reference to any indemnified party’s stock ownership in 

  

 -15- 

 
the Company. In no event, however, shall a Holder be required to contribute in excess of the amount of the net proceeds received by such Holder in connection
with the sale of Registrable Securities in the offering which is the subject of such loss, claim, damage or liability. The amount paid or payable by an indemnified party as a result of the loss, claim, damage or liability, or action in respect
thereof, referred to above in this paragraph shall be deemed to include, for purposes of this paragraph, any legal or other expenses reasonably incurred by such indemnifying party in connection with investigating or defending any such action or
claim. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 
 (e) Halliburton and the Company hereby confirm and acknowledge that the information appearing under the following captions in the prospectus included in
the Exchange Offer Registration Statement constitutes the information relating to Halliburton that has been furnished to the Company in writing by or on behalf of Halliburton specifically for use in the preparation of the Exchange Offer Registration
Statement: (i) “Questions and Answers About the Exchange Offer,” (ii) “Summary – The Exchange Offer,” “– Spin-Off of KBR Common Stock,” “– Regulatory Approval,” “– U.S.
Federal Income Tax Consequences,” “– Accounting Treatment of the Exchange Offer,” “– The Exchange Agent,” “– The Information Agent,” “– The Dealer Managers,” “– Comparative
Per Share Date – Halliburton,” “– Selected Historical Financial Data for Halliburton and KBR – Halliburton Selected Historical Consolidated Financial Data”; (iii) Information Regarding Halliburton incorporated by
reference or included under the captions “Summary – The Companies”; “Risk Factors – Risks Relating to Halliburton” and “– Risks Relating to the Exchange Offer and Any Subsequent Spin-Off”;
(iv) “The Transaction” (other than the information under the caption “KBR’s Equity Capitalization Following the Exchange Offer”); (v) “The Exchange Offer,” (vi) “Spin-Off of KBR Common
Stock,” (vii) “Market Prices and Dividend Information – Halliburton Common Stock,” (viii) “Capitalization of Halliburton and KBR – Halliburton,” (ix) “Halliburton Unaudited Pro Forma Condensed
Consolidated Financial Information,” (x) “Security Ownership of Management of Halliburton,” (xi) “U.S. Federal Income Tax Consequences”; and (xii) Information relating to Halliburton capital stock under the
caption “Comparison of Stockholder Rights.” 
 9. Rule 144. The Company shall take such measures and file such information,
documents and reports as shall be required by the SEC as a condition to the availability of Rule 144 (or any successor provision). The Company shall use its best efforts to cause all conditions to the availability of Form S-3 (or any successor form
thereto) under the Securities Act for the filing of registration statements under this Agreement to be met as soon as possible after the completion of the Public Offering. 
 10. Holdback. 
 (a) Each Holder
agrees, if so required by the managing underwriter of any offering of equity securities by the Company and provided that the Company and each of its executive officers and directors enter into similar agreements, not to sell, make any short sale of,
loan, grant any option for the purchase of, effect any public sale or distribution of or otherwise dispose of any Registrable Securities owned by such Holder, during the 7 days prior to and the 90 days after the registration statement relating to
such offering has become effective (or such 

  

 -16- 

 
shorter period as may be required by the underwriter), except as part of such underwritten offering. Notwithstanding the foregoing sentence, each Holder
subject to the foregoing sentence shall be entitled at any time to (i) issue shares of Common Stock or other securities upon the exercise of an option or warrant or the conversion or exchange of a security outstanding on such date,
(ii) sell any Registrable Securities acquired in open market transactions after the completion of such underwritten offering, (iii) sell any Registrable Securities in a transaction in which the purchaser agrees to be bound by the
restrictions contained in the foregoing sentence and (iv) in the case of Halliburton, effect any distribution of shares of Common Stock to the holders of its common stock by means of a distribution or exchange offer in a transaction intended to
qualify as a tax-free distribution under Section 355 of the Internal Revenue Code, as amended, or any corresponding provision of any successor statute. The Company may legend and may impose stop transfer instructions on any certificate
evidencing Registrable Securities relating to the restrictions provided for in this Section 10. The Holders shall not be subject to the restrictions set forth in this Section 10(a) for longer than 97 days during any 12-month period and a
Holder shall no longer be subject to such restrictions at such time as such Holder together with its Affiliates shall own less than 10% of the then outstanding shares of Common Stock on a fully-diluted basis. 
 (b) The Company agrees, if so required by the managing underwriter of any offering of Registrable Securities, not to sell, make any short sale of, loan,
grant any option for the purchase of, effect any public sale or distribution of or otherwise dispose of any of its equity securities during the 30 days prior to and the 90 days after any underwritten registration pursuant to Section 2 or 3
hereof has become effective, except as part of such underwritten registration. Notwithstanding the foregoing sentence, the Company shall be entitled at any time to (i) issue shares of Common Stock or other securities upon the exercise of an
option or warrant or the conversion or exchange of a security outstanding on such date, (ii) grant options to purchase shares of Common Stock or issue restricted shares of Common Stock or other securities pursuant to employee benefit plans in
effect on such date and (iii) sell shares of Common Stock or other securities in a transaction in which the purchaser agrees to be bound by the restrictions contained in the preceding paragraph. The Company shall use its best efforts to obtain
and enforce similar agreements from any other Persons if requested by the managing underwriter of such offering. Neither the Company nor such Persons shall be subject to the restrictions set forth in this Section 10(b) for longer than 120 days
during any 12-month period. 
 11. Transfer of Registration Rights. 
 (a) A Holder may transfer all or any portion of its rights under this Agreement to any transferee of Registrable Securities that represent (assuming the
conversion, exchange or exercise of all Registrable Securities so transferred that are convertible into or exercisable or exchangeable for the Company’s Common Stock) at least 10% of the then issued and outstanding Common Stock of the Company
(each, a “Permitted Transferee”); provided, however, that (i) with respect to any transferee of a majority of the then outstanding shares of Common Stock, the Company shall not be obligated to file a registration
statement pursuant to a registration request made by such transferee pursuant to Section 2 hereof on more than two occasions after such time as such transferee owns less than a majority of the then outstanding shares of Common Stock,
(ii) with respect to any transferee of less than a majority but more than 25% of the then outstanding shares of Common Stock, the Company shall not be obligated to file 

  

 -17- 

 
a registration statement pursuant to a registration request made by such transferee pursuant to Section 2 hereof on more than two occasions, and
(iii) with respect to any transferee of 25% or less of the then issued and outstanding Common Stock, the Company shall not be obligated to file a registration statement pursuant to a registration request made by such transferee pursuant to
Section 2 hereof on more than one occasion. Any Holder electing to transfer registration rights pursuant to this Section shall provide the Company with written notice promptly following such Holder’s execution of a binding agreement to
transfer Registrable Securities. Such notice shall state the name and address of any Permitted Transferee and identify the number and/or aggregate principal amount of Registrable Securities with respect to which the rights under this Agreement are
being transferred and the scope of the rights so transferred. In connection with any such transfer, the term Halliburton as used in this Agreement (other than in Sections 2(a)(iii) and 5(a)) shall, where appropriate to assign the rights and
obligations hereunder to such Permitted Transferee, be deemed to refer to the Permitted Transferee of such Registrable Securities. Halliburton and any Permitted Transferees may exercise the registration rights hereunder in such priority, as among
themselves, as they shall agree among themselves, and the Company shall observe any such agreements of which it shall have notice as provided above. 
 (b) After any such transfer, the transferring Holder shall retain its rights under this Agreement with respect to all other Registrable Securities owned by such transferring Holder. 
 (c) Upon the request of the transferring Holder, the Company shall execute an agreement with a Permitted Transferee substantially similar to this
Agreement. 
 12. Miscellaneous. 
 (a) Injunctions. Each party acknowledges and agrees that irreparable damage would occur in the event that any of the provisions of this Agreement was not performed in accordance with its specific terms or was otherwise breached.
Therefore, each party shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any court having jurisdiction, such remedy being in
addition to any other remedy to which such party may be entitled at law or in equity. 
 (b) Severability. If any term or provision of
this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms and provisions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or
invalidated, and each of the parties shall use its best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term or provision. 
 (c) Further Assurances. Subject to the specific terms of this Agreement, each of the parties hereto shall make, execute, acknowledge and deliver
such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to consummate the transactions contemplated hereby. 
  

 -18- 

 (d) Waivers, etc. Except as otherwise expressly set forth in this Agreement, no failure or delay
on the part of either party in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any other right or power. Except as otherwise expressly set forth in this Agreement, no modification or waiver of any provision of this Agreement nor consent to any departure
therefrom shall in any event be effective unless the same shall be in writing and signed by an authorized officer of each of the parties, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which
given. 
 (e) Entire Agreement. This Agreement contains the final and complete understanding of the parties with respect to its
subject matter. This Agreement supersedes all prior agreements and understandings between the parties, whether written or oral, with respect to the subject matter hereof. 
 (f) Counterparts. For the convenience of the parties, this Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original but all of which together shall be one and the
same instrument. 
 (g) Termination. The right of any Holder to request registration or inclusion in any registration pursuant to this
Agreement shall terminate on such date as all Registrable Securities held or entitled to be held upon conversion by such Holder and its Affiliates may immediately be sold under Rule 144 during any ninety (90) day period. 
 (h) Amendment. This Agreement may be amended only by a written instrument duly executed by an authorized officer of each of the parties.

 (i) Notices. Unless 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 or (ii) if sent by registered or certified mail, postage prepaid, return receipt requested, on the date the return receipt is executed or the
letter refused by the addressee or its agent or (iii) if sent by overnight courier which delivers only upon the signed 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 other generally accepted means of electronic transmission, 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 (ii) or (iii)), addressed as follows or sent by facsimile to the following number (or to such other address or facsimile number for a party as it shall have specified by like notice): 
 (i) if to Halliburton, to: 
 Halliburton Company 
 5 Houston Center 
 1401 McKinney, Suite 2400 
 Houston, Texas 77010 
 Attention: General Counsel 
  

 -19- 

 (ii) if to the Company, to 
 KBR, Inc. 
 601 Jefferson Street, Suite 3400 
 Houston, Texas 77002 
 Attention: General Counsel 
 (iii) if to a Holder, to the name and address as the same appear in the security transfer books of the Company, 
 or to such
other address as either party (or other Holders) may, from time to time, designate in a written notice in a like manner. 
 (j) Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF. 
 (k) Assignment. Except as specifically provided herein, the parties may not assign their rights under this Agreement. The Company may not delegate
its obligations under this Agreement. 
 (l) Conflicting Agreements. The Company shall not hereafter grant any rights to any person to
register securities of the Company, the exercise of which would conflict with the rights granted to the Holders under this Agreement. The Company shall not hereafter grant to any person demand registration rights permitting it to exclude the Holders
from including Registrable Securities in a registration on behalf of such person on a basis more favorable than that set forth in Section 2(d) hereof with respect to the Holders. 
 (m) Resolution of Disputes. If a dispute, claim or controversy results from or arises out of or in connection with this Agreement, the parties
agree to use the procedures set forth in Article VII of the Separation Agreement, in lieu of other available remedies, to resolve the same. 
 (n) Construction. This Agreement shall be construed as if jointly drafted by the Company and Halliburton and no rule of construction or strict interpretation shall be applied against either party. The paragraph headings contained in
this Agreement are for reference purposes only, and shall not affect in any manner the meaning or interpretation of this Agreement. 
 (o)
Exchange Offer. As used herein, (i) the terms “underwriter” and “underwriters” shall be deemed to include, as applicable, any dealer manager or dealer managers for the Exchange Offer, (ii) the term
“underwritten offering” shall be deemed to include the Exchange Offer, and (iii) the term “underwriting agreement” shall be deemed to include any agreement entered into with any dealer manager for the Exchange Offer. Any
written demands and/or notices required to be delivered by Halliburton in connection with its request for the Company to file the Exchange Offer Registration Statement have been satisfied by Halliburton or otherwise waived by the Company.

  

 -20- 

 IN WITNESS WHEREOF, Halliburton and the Company have caused this Agreement to be duly executed by their
authorized representative as of the date first above written. 
  

			
	HALLIBURTON COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	KBR, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 -21-KBR, Inc. Senior Executive Performance Pay Plan

 Exhibit 10.21 
 KBR SENIOR EXECUTIVE PERFORMANCE PAY PLAN 
 EFFECTIVE JANUARY 1, 2007 
  

 INDEX 
  

							
	ARTICLE I	  	1
	PURPOSE	  	1
		
	ARTICLE II	  	1
	DEFINITIONS	  	1
				
		 	2.1	  	Definitions	  	1
		 	2.2	  	Number	  	4
		 	2.3	  	Headings	  	4
		
	ARTICLE III	  	4
	PARTICIPATION	  	4
				
		 	3.1	  	Participants	  	4
		 	3.2	  	Partial Plan Year Participation	  	4
		 	3.3	  	No Right to Participate	  	5
		 	3.4	  	Plan Exclusive	  	5
		 	3.5	  	Consent to Dispute Resolution	  	5
		
	ARTICLE IV	  	6
	ADMINISTRATION	  	6
		
	ARTICLE V	  	6
	REWARD DETERMINATIONS	  	6
				
		 	5.1    	  	Performance Measures	  	6
		 	5.2	  	Performance Requirements	  	6
		 	5.3	  	Reward Determinations	  	6
		 	5.4	  	Reward Opportunities	  	7
		 	5.5	  	Discretionary Adjustments	  	7
		
	ARTICLE VI	  	7
	DISTRIBUTION OF REWARDS	  	7
				
		 	6.1	  	Form and Timing of Payment	  	7
		 	6.2	  	Excess Remuneration	  	7
		 	6.3	  	Elective Deferral	  	8
		 	6.4	  	Tax Withholding	  	8

  

 ii 

							
	ARTICLE VII	  	8
	TERMINATION OF EMPLOYMENT	  	8
				
		 	7.1	  	Termination of Service During Plan Year	  	8
		 	7.2	  	Termination of Service After End of Plan Year But Prior to the Payment Date	  	9
		
	ARTICLE VIII	  	9
	RIGHTS OF PARTICIPANTS AND BENEFICIARIES	  	9
				
		 	8.1	  	Status as a Participant or Beneficiary	  	9
		 	8.2	  	Employment	  	9
		 	8.3	  	Nontransferability	  	9
		 	8.4	  	Nature of Plan	  	10
		
	ARTICLE IX	  	10
	CORPORATE CHANGE	  	10
		
	ARTICLE X	  	11
	AMENDMENT AND TERMINATION	  	11
		
	ARTICLE XI	  	11
	MISCELLANEOUS	  	11
				
		 	11.1  	  	Governing Law	  	11
		 	11.2	  	Severability	  	11
		 	11.3	  	Successor	  	11
		 	11.4	  	Effective Date	  	11

  

 iii 

 KBR SENIOR EXECUTIVE PERFORMANCE PAY PLAN 
 The Board of Directors of KBR, Inc. (the “Board”) previously established the KBR, Inc. 2006 Stock and Incentive Plan (the “2006
Plan”). Section XI of the 2006 Plan authorizes the Compensation Committee of the Board to grant “Performance Awards” with such terms as the Compensation Committee may establish in its discretion. Effective January 1, 2007, the
Compensation Committee hereby establishes this KBR Senior Executive Performance Pay Plan (the “Plan”) pursuant to the provisions of Article XI of the 2006 Plan. All awards under this Plan are intended to qualify as qualified
performance-based compensation under Section 162(m) of the Code to the extent such awards are made to participants who are “covered employees” as that term is defined in Section 162(m) of the Internal Revenue Code of 1986, as
amended. 
 ARTICLE I 
 PURPOSE 
 The purpose of the Plan is to reward management of the Company and its Affiliates for improving financial results
which drive the creation of value for shareholders of the Company and thereby, serve to attract, motivate, reward, and retain high caliber employees required for the success of the Company. The Plan provides a means to link total and individual cash
compensation to Company performance. 
 ARTICLE II 
 DEFINITIONS 
 2.1 Definitions. Where the following words and phrases appear in the
Plan, they shall have the respective meanings set forth below, unless their context clearly indicates to the contrary. 
 “Affiliate” shall mean a Subsidiary of the Company or a division or designated group of the Company or a Subsidiary. 
 “Base Salary” shall mean the sum of Participant’s annual base salary as determined on the first day of each month during the applicable calendar year, divided by twelve (or divided by the number of full
calendar months of participation in the Plan if partial Plan Year participation). For purposes of this calculation, Base Salary includes base salary a Participant could have received in cash in lieu of (i) contributions made on such
Participant’s behalf to a qualified plan maintained by the Company or to any cafeteria plan under Section 125 of the Code maintained by the Company and (ii) deferrals of compensation made at the Participant’s election pursuant to
a plan or arrangement of the Company or an Affiliate, but excluding any Rewards under this Plan and any other bonuses, incentive pay or special awards. 
  

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 “Beneficiary” shall mean the person, persons, trust or trusts entitled by will
or the laws of descent and distribution to receive the benefits specified under the Plan in the event of the Participant’s death prior to full payment of a Reward. 
 “Board of Directors” shall mean the Board of Directors of the Company. 
 “Cause” shall mean any of the following: (i) Participant’s gross negligence or willful misconduct in the performance
of the duties and services required of Participant by the Company or its Affiliates, (ii) Participant’s final conviction of a felony, or (iii) a material violation of the Company’s Code of Business Conduct. Determination as to
whether or not Cause exists for termination of Participant’s employment will be reasonably made by the Committee, or its delegate, in good faith. 
 “CEO” shall mean the Chief Executive Officer of the Company. 
 “Code”
shall mean the Internal Revenue Code of 1986, as amended. 
 “Committee” shall mean the Compensation Committee of
Directors of the Company, appointed by the Board of Directors from among its members, no member of which shall be an employee of the Company or a Subsidiary. 
 “Common Stock” shall mean the common stock, par value $0.001 per share of KBR, Inc. 
 “Company” shall mean KBR, Inc. and its successors. 
 “Corporate Change” shall mean one of the following events: (i) the merger, consolidation or other reorganization of the Company in which
the outstanding Common Stock is converted into or exchanged for a different class of securities of the Company, a class of securities of any other issuer (except a direct or indirect wholly owned Subsidiary), cash or property; (ii) the sale,
lease or exchange of all or substantially all of the assets of the Company to another corporation or entity (except a direct or indirect wholly owned Subsidiary); (iii) the adoption by the stockholders of the Company of a plan of liquidation
and dissolution; (iv) the acquisition (other than any acquisition pursuant to any other clause of this definition) by any person or entity, including, without limitation, a “group” as contemplated by Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended, of beneficial ownership, as contemplated by such Section, of more than twenty percent (based on voting power) of the Company’s outstanding capital stock, provided, however, that, this clause
(iv) shall not apply to the acquisition or beneficial ownership by Halliburton Company of the Company’s outstanding capital stock so long as Halliburton Company is the beneficial owner of more than twenty percent (based on voting power) of
the Company’s outstanding capital stock, unless and until such time as Halliburton Company shall cease to be the beneficial owner of more than twenty percent (based on voting power) of the Company’s outstanding capital stock and thereafter

  

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Halliburton Company, together with any persons or entities which could be included with Halliburton Company as a “group” as contemplated by
Section 13(d)(3) of the Securities Exchange Act of 1934, shall acquire beneficial ownership of more than twenty percent (based on voting power) of the Company’s outstanding capital stock; or (v) as a result of or in connection with a
contested election of directors, the persons who were directors of the Company before such election shall cease to constitute a majority of the Board. 
 “Dispute Resolution Program” shall mean the Halliburton Dispute Resolution Program or its successor, the KBR Dispute Resolution Program. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
 “Officer” shall mean a full officer of the Company or an Affiliate. 
 “Participant” shall mean any active employee of the Company or an Affiliate who participates in the Plan pursuant to the
provisions of Article III hereof. An employee shall not be eligible to participate in the Plan while on a leave of absence. 
 “Participant Category” shall mean a grouping of Participants determined in accordance with the applicable provisions of Article III. 
 “Payment Date” shall mean, with respect to a particular Plan Year, the date the Reward is actually paid, which shall be as soon as administratively practicable following the end of the applicable Plan Year,
but in no event later than the March 15th following the applicable Plan Year. 
 “Performance Goals” shall
mean, for a particular Plan Year, established levels of applicable Performance Measures. 
 “Performance Measures”
shall mean the criteria used in determining Performance Goals for particular Participant Categories, which may include one or more of the performance measures identified in Article XI of the 2006 Plan. Performance Measures may vary from business
unit to business unit and from Participant to Participant within a particular business unit as deemed appropriate. 
 “Plan” shall mean the KBR Senior Executive Performance Pay Plan effective January 1, 2007, and as the same may thereafter be amended from time to time. 
 “Plan Year” shall mean the calendar year ending December 31, 2007 and each subsequent calendar year thereafter. 

“Reward” shall mean the dollar amount of incentive compensation payable to a Participant under the Plan for a Plan Year
determined in accordance with Section 5.3. 
  

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 “Reward Opportunity” shall mean, with respect to each Participant Category,
incentive reward payment amounts, expressed as a percentage of Base Salary, which correspond to various levels of pre-established Performance Goals, determined pursuant to the Reward Schedule. 
 “Reward Schedule” shall mean the schedule which aligns the level of achievement of applicable Performance Goals with Reward
Opportunities for a particular Plan Year, such that the level of achievement of the pre-established Performance Goals at the end of such Plan Year will determine the actual Reward. 
 “Senior Executive” shall mean (i) the CEO and (ii) any regular, full-time employee of the Company or an Affiliate who
(A) is an Officer required to file reports with the Securities and Exchange Commission under Section 16 of the Securities Exchange Act of 1934, (B) is an Officer who reports directly to the CEO, (C) is the Chief Accounting
Officer of the Company, or (D) is the highest ranking management position (with at least a title of Director or above) with direct oversight over internal audits of the Company. 
 “Subsidiary” shall mean any corporation 50 percent or more of whose voting power is owned, directly or indirectly, by the
Company. 
 2.2 Number. Wherever appropriate herein, words used in the singular shall be considered to include the plural, and
words used in the plural shall be considered to include the singular. 
 2.3 Headings. The headings of Articles and Sections
herein are included solely for convenience, and if there is any conflict between headings and the text of the Plan, the text shall control. 
 ARTICLE III 
 PARTICIPATION 
 3.1 Participants. Active employees who are Senior Executives as of the beginning of each Plan Year shall be Participants for such Plan Year. 
 3.2 Partial Plan Year Participation. If, after the beginning of a Plan Year, an employee who was not previously a Participant for such Plan
Year (i) is newly appointed or elected as a Senior Executive or (ii) returns to active employment as a Senior Executive following a leave of absence, such employee shall become a Participant effective with the first day of the month
following such appointment or election or return to active service, as the case 

  

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may be, for the balance of the Plan Year, on a prorated basis, unless the Committee shall determine, in its sole discretion, that the participation shall be
delayed until the beginning of the next Plan Year. 
 If an employee who has previously been designated as a Participant for a particular
Plan Year takes a leave of absence during such Plan Year, the Committee may exercise its discretion to reduce Participant’s rights to a Reward for such Plan Year on a prorated basis corresponding to that portion of the Plan Year during which he
or she was no longer an active Participant, in which case the prorated portion of the Reward shall be paid in accordance with the provisions of Section 6.1. 
 Each Participant shall be assigned to a Participant Category at the time he or she becomes a Participant for a particular Plan Year. If a Participant thereafter incurs a change in status due to promotion, demotion,
reassignment or transfer, such Participant’s Reward Opportunity shall be automatically adjusted to correspond with the Reward Opportunity for the new Participant Category, such adjustment to be made on a pro rata basis for the balance of the
Plan Year effective with the first day of the month following such change in status, unless the Committee exercises its discretion to reduce Participant’s rights to a Reward for such Plan Year on a prorated basis corresponding to that portion
of the Plan Year during which he or she had a change in status. 
 3.3 No Right to Participate. Except as provided in Sections
3.1 and 3.2, no Participant or other employee of the Company or an Affiliate shall, at any time, have a right to participate in the Plan for any Plan Year, notwithstanding having previously participated in the Plan. 
 3.4 Plan Exclusive. No employee shall simultaneously participate in this Plan and in any other short-term incentive plan of the Company or
an Affiliate unless such employee’s participation in such other plan is approved by the CEO, or his delegate. 
 3.5 Consent to
Dispute Resolution. Participation in the Plan constitutes consent by the Participant to be bound by the terms and conditions of the Dispute Resolution Program 

  

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which in substance requires that all disputes arising out of or in any way related to employment with the Company or its Affiliates, including any disputes
concerning the Plan, be resolved exclusively through such program, which includes binding arbitration as the last step. 
 ARTICLE IV

 ADMINISTRATION 
 Each Plan Year, the Committee shall establish the basis for payments under the Plan in relation to given Performance Goals, as more fully described in Article V hereof, and, following the end of each Plan Year, determine the actual Reward
payable for each Participant Category. The Committee shall construe and interpret the Plan, prescribe, amend and rescind rules, regulations and procedures relating to its administration and make all other determinations necessary or advisable for
administration of the Plan. Decisions of the Committee shall be conclusive and binding. Subject only to compliance with the express provisions hereof, the Committee may act in its sole and absolute discretion with respect to matters within its
authority under the Plan. 
 ARTICLE V 
 REWARD DETERMINATIONS 
 5.1 Performance Measures. A combination of Performance Measures
shall be used in determining Performance Goals for any Plan Year. 
 5.2 Performance Requirements. No later than the
first 90 days after the commencement of each Plan Year, (i) the Committee shall approve the Performance Measures applicable to certain Participants, and (ii) the Committee shall establish a Reward Schedule which aligns the level of
achievement of applicable Performance Goals with Reward Opportunities, such that the level of achievement of the pre-established Performance Goals at the end of the Plan Year will determine the actual Reward. 
 5.3 Reward Determinations. After the end of each Plan Year, the Committee shall determine the extent to which the Performance Goals have
been achieved, and the amount of the Reward shall be computed for each Participant in accordance with the Reward Schedule. 
  

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 5.4 Reward Opportunities. The established Reward Opportunities may vary in relation to the
Participant Categories and within the Participant Categories. In the event a Participant changes Participant Categories during a Plan Year, the Participant’s Reward Opportunities shall be adjusted in accordance with the applicable provisions of
Section 3.2. 
 5.5 Discretionary Adjustments. Once established, Performance Goals will not be changed during the Plan
Year. However, if the Committee, in its sole and absolute discretion, determines that there has been (i) a change in the business, operations, corporate, or capital structure, (ii) a change in the manner in which business is conducted, or
(iii) any other material change or event which will impact one or more Performance Goals in a manner the Committee did not intend, then the Committee may, reasonably contemporaneously with such change or event, make negative adjustments to
reduce or eliminate the compensation that was due upon attainment of the Performance Goals as it shall deem appropriate and equitable. 
 ARTICLE VI 
 DISTRIBUTION OF REWARDS 
 6.1 Form and Timing of Payment. Except as otherwise provided below, the amount of each Reward shall be paid in a cash lump sum on the Payment Date. In the event of termination of a Participant’s
employment prior to the Payment Date for any reason other than death (in which case payment shall be made in accordance with the applicable provisions of Article VII), the amount of any Reward (or prorated portion thereof) payable pursuant to the
provisions of Sections 7.1 or 7.2 shall be paid in cash on the Payment Date, or as soon thereafter as practicable. 
 6.2 Excess
Remuneration. Notwithstanding the provisions of Section 6.1, to the extent that incentive compensation hereunder does not qualify as performance-based compensation pursuant to Section 162(m) of the Code with respect to a
Participant who is a “covered employee” for purposes of Section 162(m), the portion of a Reward which would otherwise cause such Participant’s compensation to exceed the limitation on the amount of compensation deductible by the
Company in any taxable year pursuant to such Section 162(m) 

  

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shall automatically be deferred until such Participant is no longer a “covered employee.” In such case, interest shall be credited on the portion
of the Reward deferred for the period of the deferral as provided pursuant to the KBR Benefit Restoration Plan, as amended, or other applicable plan. 
 6.3 Elective Deferral. Nothing herein shall be deemed to preclude a Participant’s election to defer receipt of a percentage of his or her Reward beyond the time such amount would have been payable
hereunder pursuant to the KBR Elective Deferral Plan or other similar plan and in compliance with the requirements of Code Section 409A and related regulations and U.S. Department of Treasury pronouncements. 
 6.4 Tax Withholding. The Company or employing entity through which payment of a Reward is to be made shall have the right to deduct from
any payment hereunder any amounts that Federal, state, local or foreign tax laws require with respect to such payments. 
 ARTICLE VII

 TERMINATION OF EMPLOYMENT 
 7.1 Termination of Service During Plan Year. In the event a Participant’s employment is terminated prior to the last business day of a Plan Year for any reason other than death, normal retirement at or after age 65 or
disability (as determined under the Company’s Long Term Disability Plan), all of such Participant’s rights to a Reward for such Plan Year shall be forfeited unless the Committee shall determine that such Participant’s Reward for such
Plan Year shall be prorated based upon that portion of the Plan Year during which he or she was a Participant, in which case the prorated portion of the Reward shall be paid in accordance with the provisions of Section 6.1. In the case of death
during the Plan Year, the prorated amount of such Participant’s Reward shall be paid to the Participant’s estate, or if there is no administration of the estate, to the heirs at law, on the Payment Date, or as soon thereafter as
practicable. In the case of disability or normal retirement at or after age 65, the prorated amount of a Participant’s Reward shall be paid in accordance with the provisions of Section 6.1. 
  

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 7.2 Termination of Service After End of Plan Year But Prior to the Payment Date. If a
Participant’s employment is terminated after the end of the applicable Plan Year, but prior to the Payment Date, for any reason other than termination for Cause, the amount of any Reward applicable to such Plan Year shall be paid to the
Participant in accordance with the provisions of Section 6.1, except in the case of death, in which case the amount of the Reward then unpaid shall be paid to such Participant’s estate, or if there is no administration of the estate, to
the heirs at law, as soon as practicable. 
 If a Participant’s employment is terminated for Cause, all of such Participant’s
rights to a Reward applicable to such Plan Year shall be forfeited. 
 ARTICLE VIII 
 RIGHTS OF PARTICIPANTS AND BENEFICIARIES 
 8.1 Status as a Participant or Beneficiary. Neither status as a Participant or Beneficiary shall be construed as a commitment that any Reward will be paid or payable under the Plan. 
 8.2 Employment. Nothing contained in the Plan, or in any document related to the Plan or to any Reward, shall confer upon any Participant
any right to continue as an employee or in the employ of the Company or an Affiliate or constitute any contract or agreement of employment for a specific term or interfere in any way with the right of the Company or an Affiliate to reduce such
person’s compensation, to change the position held by such person or to terminate the employment of such person, with or without cause. 
 8.3 Nontransferability. No benefit payable under, or interest in, this Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge and any such attempted action
shall be void and no such benefit or interest shall be, in any manner, liable for, or subject to, debts, contracts, liabilities or torts of any Participant or Beneficiary; provided, however, that, nothing in this Section 8.3 shall prevent
transfer (i) by will, (ii) by applicable laws of descent and distribution, or (iii) pursuant to an order that satisfies the requirements for a “qualified domestic relations order” as such 

  

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term is defined in section 206(d)(3)(B) of ERISA and section 414(p)(1)(A) of the Code, including an order that requires distributions to an alternate payee
prior to a Participant’s “earliest retirement age” as such term is defined in section 206(d)(3)(E)(ii) of ERISA and section 414(p)(4)(B) of the Code. Any attempt at transfer, assignment or other alienation prohibited by the preceding
sentence shall be disregarded and all amounts payable hereunder shall be paid only in accordance with the provisions of the Plan. 
 8.4
Nature of Plan. No Participant, Beneficiary or other person shall have any right, title, or interest in any fund or in any specific asset of the Company or any Affiliate by reason of any Reward hereunder. There shall be no funding of any
benefits which may become payable hereunder. Nothing contained in the Plan (or in any document related thereto), nor the creation or adoption of the Plan, nor any action taken pursuant to the provisions of the Plan shall create, or be construed to
create, a trust of any kind or a fiduciary relationship between the Company or an Affiliate and any Participant, Beneficiary or other person. To the extent that a Participant, Beneficiary or other person acquires a right to receive payment with
respect to a Reward hereunder, such right shall be no greater than the right of any unsecured general creditor of the Company or other employing entity, as applicable. All amounts payable under the Plan shall be paid from the general assets of the
Company or employing entity, as applicable, and no special or separate fund or deposit shall be established and no segregation of assets shall be made to assure payment of such amounts. Nothing in the Plan shall be deemed to give any employee any
right to participate in the Plan except in accordance herewith. 
 ARTICLE IX 
 CORPORATE CHANGE 
 In the event of a Corporate Change, (i) with respect to
a Participant’s Reward Opportunity for the Plan Year in which the Corporate Change occurred, such Participant shall be entitled to an immediate cash payment equal to the maximum amount of Reward he or she would have been entitled to receive for
the Plan Year, prorated to the date of the Corporate Change; and (ii) with respect to a Corporate Change that occurs after the end of the Plan Year but prior to the Payment Date, a Participant shall be entitled to an immediate cash payment
equal to the Reward earned for such Plan Year. 
  

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 ARTICLE X 
 AMENDMENT AND TERMINATION 
 Notwithstanding anything herein to the contrary, the Committee may, at
any time, terminate or, from time to time amend, modify or suspend the Plan; provided, however, that, without the prior consent of the Participants affected, no such action may adversely affect any rights or obligations with respect to any Rewards
theretofore earned for a particular Plan Year, whether or not the amounts of such Rewards have been computed and whether or not such Rewards are then payable, subject to the Committee’s express rights as set forth herein. 
 ARTICLE XI 
 MISCELLANEOUS

 11.1 Governing Law. The Plan and all related documents shall be governed by, and construed in accordance with, the laws
of the State of Texas, without giving effect to the principles of conflicts of law thereof, except to the extent preempted by federal law. The Federal Arbitration Act shall govern all matters with regard to arbitrability. 
 11.2 Severability. If any provision of the Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not
affect the remaining provisions hereof; instead, each provision shall be fully severable and the Plan shall be construed and enforced as if said illegal or invalid provision had never been included herein. 
 11.3 Successor. All obligations of the Company under the Plan shall be binding upon and inure to the benefit of any successor to the
Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
 11.4 Effective Date. This Plan shall be effective from and after January 1, 2007, and shall remain in effect until such time as it may
be terminated or amended pursuant to Article X. 
  

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