Document:

Exhibit 10.2

 

TAX MATTERS AGREEMENT

 

by and between

 

International
Business Machines Corporation

 

and

 

KYNDRYL HOLDINGS, INC.

 

Dated
as of [●], 2021

 

     

     

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	Article I - DEFINITIONS	2
	 	 	 
	1.1 	General	2
	 	 	 
	Article II – PAYMENTS AND TAX REFUNDS	10
	 	 	 
	2.1	 Responsibility for SpinCo Group Taxes	10
	 	 	 
	2.2 	Transaction Taxes	10
	 	 	 
	2.3 	Allocation of Taxes	11
	 	 	 
	2.4 	Allocation of Employment Taxes	12
	 	 	 
	2.5 	Tax Refunds	12
	 	 	 
	2.6	 Tax Benefits	12
	 	 	 
	2.7 	Prior Agreements	12
	 	 	 
	2.8	 Specified Matters	12
	 	 	 
	Article III – PREPARATION AND FILING OF TAX RETURNS	13
	 	 
	3.1 	Parent’s Responsibility	13
	 	 	 
	3.2 	SpinCo’s Responsibility	13
	 	 	 
	3.3 	Right to Review Tax Returns	13
	 	 	 
	3.4 	Cooperation	13
	 	 	 
	3.5 	Tax Reporting Practices	14
	 	 	 
	3.6 	Reporting of Separation	14
	 	 	 
	3.7 	Payment of Taxes	14
	 	 	 
	3.8 	Amended Returns and Carrybacks	15
	 	 	 
	3.9	 Tax Attributes	15
	 	 	 
	3.10 	Gain Recognition Agreements	15
	 	 	 
	3.11 	Specified Matters	15
	 	 	 
	Article IV – INTENDED TAX TREATMENT OF THE DISTRIBUTION	16
	 	 
	4.1 	Representations and Warranties	16
	 	 	 
	4.2 	Restrictions Relating to the Distribution	16
	 	 	 
	4.3 	Additional Procedures Regarding Post-Distribution Rulings and Unqualified Tax Opinions	19

 

    i 

     

    

 

	Article V – INDEMNITY OBLIGATIONS	20
	 	 	 
	5.1 	Indemnity Obligations	20
	 	 	 
	5.2 	Indemnification Payments	20
	 	 	 
	5.3 	Payment Mechanics	21
	 	 	 
	5.4	 Treatment of Payments	21
	 	 	 
	Article VI – TAX CONTESTS	22
	 	 	 
	6.1 	Notice	22
	 	 	 
	6.2 	Separate Returns	22
	 	 	 
	6.3 	Joint Return	22
	 	 	 
	6.4 	Transaction Related Tax Contests	22
	 	 	 
	6.5 	Obligation of Continued Notice	23
	 	 	 
	6.6 	Settlement Rights	23
	 	 	 
	Article VII – COOPERATION	23
	 	 	 
	7.1 	General	23
	 	 	 
	7.2 	Return Information	24
	 	 	 
	Article VIII – RETENTION OF RECORDS; ACCESS	24
	 	 	 
	8.1 	Retention of Records	24
	 	 	 
	8.2 	Access to Tax Records	25
	 	 	 
	Article IX – DISPUTE RESOLUTION	25
	 	 	 
	9.1 	Tax Disputes	25
	 	 	 
	9.2 	Legal Disputes	26
	 	 	 
	9.3 	Injunctive Relief	26
	 	 	 
	9.4	 Specific Performance	26
	 	 	 
	9.5	 Venue for Injunctive Relief and Specific Performance Claims by Parent	27
	 	 	 
	Article X – MISCELLANEOUS PROVISIONS	27
	 	 	 
	10.1 	Conflicting Agreements	27
	 	 	 
	10.2 	Interest on Late Payments	27
	 	 	 
	10.3 	Counterparts	27
	 	 	 
	10.4 	Successors	28
	 	 	 
	10.5 	Application to Present and Future Subsidiaries	28
	 	 	 
	10.6 	Governing Law	28

 

    ii 

     

    

 

	10.7 	Assignability	28
	 	 	 
	10.8 	Further Assurances	28
	 	 	 
	10.9 	Survival	28
	 	 	 
	10.10 	Severability	29
	 	 	 
	10.11 	Amendments	29
	 	 	 
	10.12 	Headings	29
	 	 	 
	10.13 	Waivers of Default	29
	 	 	 
	10.14 	Continuity of Service and Performance	29
	 	 	 
	10.15	 Notices	30
	 	 	 
	10.16 	Interpretation	30
	 	 	 
	10.17 	Distribution Date	30

 

    iii 

     

    

 

Schedules:

 

	Schedule A	-	Specified Matters
	 	 	 
	Schedule B	-	Transactions

 

    iv 

     

    

 

TAX MATTERS AGREEMENT

 

This TAX MATTERS AGREEMENT (including the Schedules
hereto, this “Agreement”), is entered into as of [●], 2021 between International Business Machines Corporation,
a New York corporation (“Parent”), and Kyndryl Holdings, Inc., a Delaware corporation (“SpinCo”
and, together with Parent, the “Parties”).

 

R E C I T A L S

 

WHEREAS, the board of directors of Parent has determined
that it is appropriate, desirable and in the best interests of Parent and its stockholders to separate the Parent Business from the SpinCo
Business in the manner described in the Separation and Distribution Agreement, dated as of [●], between the Parties (such agreement,
the “Separation Agreement” and such separation the “Separation”) and, following the Separation,
to undertake the Distribution;

 

WHEREAS, SpinCo has been incorporated for these purposes
and has not engaged in activities except those incidental to its formation and in preparation for the Distribution;

 

WHEREAS, Parent has effected certain restructuring
transactions described in the Separation Step Plan for the purpose of aggregating the SpinCo Business in the Parent Group prior to the
Distribution (collectively, the “Reorganization”) and in connection therewith, shall undertake the Contribution pursuant
to which, SpinCo shall (i) issue to Parent shares of SpinCo Common Stock, (ii) issue to Parent units of SpinCo Holdings Securities
and (iii) pay to Parent the SpinCo Debt Proceeds Distribution;

 

WHEREAS, following the Distribution, Parent may
retain up to 19.9% of the outstanding SpinCo Common Stock (the “Retained Stock”) and transfer all or a portion of
such Retained Stock to Parent creditors in satisfaction of certain Parent third-party debt (any such transfer, a “Debt-for-Equity
Exchange”) within twelve (12) months of the Distribution and, if market and general economic conditions and sound business
judgment do not support such Debt-for-Equity Exchanges during the twelve (12) month period following the Distribution, in the case of
any remaining Retained Stock, may (i) distribute such Retained Stock within twelve (12) months of the Distribution pro rata to its public
common shareholders (a “Clean-Up Spin”), or pursuant to an exchange offer in redemption of public common shares (a
 “Clean-Up Split” and a Clean-Up Split or a Clean-Up Spin, a “Subsequent Distribution”), or (ii)
sell the Retained Stock in one or more public or private sales within five (5) years of the Distribution;

 

WHEREAS, Parent intends to effect the Spin-Off Transaction
in a transaction that is intended to qualify as tax-free for U.S. federal income tax purposes under Sections 368(a)(1)(D), 355 and 361(c) of
the Code;

 

WHEREAS, certain members of the Parent Group, on
the one hand, and certain members of the SpinCo Group, on the other hand, file certain Tax Returns on a consolidated, combined or unitary
basis for certain federal, state, local and non-U.S. Tax purposes; and

 

WHEREAS, the Parties desire to (a) provide for
the payment of Tax Liabilities and entitlement to refunds thereof, allocate responsibility for, and cooperation in, the filing of Tax
Returns, and provide for certain other matters relating to Taxes and (b) set forth certain covenants and indemnities relating to
the preservation of the Intended Tax Treatment of the Transactions.

 

    

     

    

 

 

 

 

NOW,
THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, the Parties, intending
to be legally bound, hereby agree as follows:

 

Article I
- DEFINITIONS

 

1.1            General.
For the purposes of this Agreement, the following terms shall have the following meanings:

 

“Accounting Firm” shall have
the meaning set forth in Section 9.1.

 

“Active Business” shall mean
any business relied on to satisfy (i) the active trade or business requirement of Section 355(b) of the Code (taking into
account Section 355(b)(3) of the Code) or (ii) the continuity of business enterprise requirements under Treasury Regulations
Section 1.355-3 and Treasury Regulations Section 1.368-1(d), to the extent identified as such in the Tax Materials.

 

“Adjustment” shall mean an adjustment
of any item of income, gain, loss, deduction, credit or any other item affecting Taxes of a taxpayer pursuant to a Final Determination.

 

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

 

“Agreement” shall have the meaning
set forth in the preamble hereto.

 

“Ancillary Agreements” shall
have the meaning set forth in the Separation Agreement.

 

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

 

“Capital Stock” shall mean classes
or series of capital stock of a Person, including (i) common stock, (ii) all options, warrants and other rights to acquire
such capital stock and (iii) all instruments properly treated as stock in such Person for U.S. federal income tax purposes.

 

“Chosen Court Claim” shall have
the meaning set forth in Section 9.5.

 

“Chosen Courts” shall have the
meaning set forth in Section 9.5.

 

“Clean-Up Spin” shall have the
meaning set forth in the recitals hereto.

 

“Clean-Up Split” shall have the
meaning set forth in the recitals hereto.

 

“Code” shall mean the U.S. Internal
Revenue Code of 1986.

 

“Controlling Party” shall mean,
with respect to a Tax Contest, the Party entitled to control such Tax Contest pursuant to Section 6.2, Section 6.3
or Section 6.4.

 

“Contribution” shall have the
meaning set forth in the Separation Agreement.

 

“Debt-for-Debt Exchange” shall
have the meaning set forth in the definition of Intended Tax Treatment herein.

 

“Debt-for-Equity Exchange” shall
have the meaning set forth in the recitals hereto.

 

“Dispute” shall have the meaning
set forth in Section 9.2.

 

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

 

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

 

    	 	2	 

     

    

 

“Distribution Taxes” shall mean
any Taxes incurred solely as a result of the failure of any of the Transactions to qualify for the Intended Tax Treatment of such Transaction.

 

“Due Date” shall mean (a) with
respect to a Tax Return, the date (taking into account all valid extensions) on which such Tax Return is required to be filed under applicable
Tax Law and (b) with respect to a payment of Taxes, the date on which such payment is required to be made, which shall in any case
be no later than the payment date required to avoid the incurrence of interest, penalties and additions to Tax.

 

“EMA” shall have the meaning
set forth in the Separation Agreement.

 

“Employment Tax” shall mean those
Liabilities (as defined in the Separation Agreement) for Taxes which are allocable pursuant to the provisions of the EMA.

 

“Final Determination” shall mean
the final resolution of any Tax Liability, which resolution may be for a specific issue or adjustment or for a Tax Period, (a) by
IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the taxpayer, or by a comparable
form under the Laws of a state, local or non-U.S. taxing jurisdiction, except that a Form 870 or 870-AD or comparable form shall
not constitute a Final Determination to the extent that it reserves (whether by its terms or by operation of Law) the right of the taxpayer
to file a claim for Refund or the right of the Taxing Authority to assert a further deficiency in respect of such issue or adjustment
or for such Tax Period (as the case may be); (b) by a decision, judgment, decree or other order by a court of competent jurisdiction,
which has become final and unappealable; (c) by a closing agreement or accepted offer in compromise under Section 7121 or Section 7122
of the Code, or a comparable agreement under the Laws of a state, local or non-U.S. taxing jurisdiction; (d) by any allowance of
a Refund, but only after the expiration of all periods during which such Refund may be recovered (including by way of offset) by the
jurisdiction imposing such Tax; (e) by a final settlement resulting from a competent authority proceeding or determination; or (f) by
any other final disposition, including by reason of the expiration of the applicable statute of limitations or by mutual agreement of
the parties.

 

“Gain Recognition Agreement”
shall mean any agreement to recognize gain that is described in Treasury Regulations Section 1.367(a)-8 (i) which is entered
into in connection with the Transactions and (ii) to which any member of the Parent Group or the SpinCo Group is a party.

 

“Group” shall mean either the
Parent Group or the SpinCo Group, as the context requires.

 

“Indemnifying Party” shall have
the meaning set forth in Section 5.2.

 

“Indemnitee” shall have the meaning
set forth in Section 5.2.

 

    	 	3	 

     

    

 

“Intended
Tax Treatment” shall mean (x) the qualification of (i) the Contribution (and Parent’s receipt or deemed
receipt of the SpinCo Common Stock, SpinCo Holdings Securities and SpinCo Debt Proceeds Distribution in connection therewith), the
Distribution and any Subsequent Distributions, taken together, as a reorganization described in Sections 368(a)(1)(D) and
355(a) of the Code, with each of Parent and SpinCo being a party to the reorganization, in which no income or gain is
recognized by Parent, SpinCo, the Parent Group, the SpinCo Group or the holders of Parent Common Stock pursuant to Sections 355, 361
and 1032 of the Code, other than intercompany items or excess loss accounts taken into account pursuant to the Treasury Regulations
promulgated pursuant to Section 1502 of the Code, (ii) the Distribution and any Subsequent Distributions as transactions
in which the stock distributed thereby is “qualified property” for purposes of Sections 355(c) and 361(c) of
the Code (and neither Section 355(d) nor Section 355(e) of the Code causes such stock to be treated as other
than “qualified property” for such purposes), (iii) any Debt-for-Equity Exchange as a transfer of “qualified
property” to creditors of Parent in connection with the reorganization within the meaning of Section 361(c) of the Code and
(iv) any transfer, following the Distribution, by Parent of SpinCo Holdings Securities to Parent creditors in
satisfaction of certain Parent third-party debt (any such transfer, a “Debt-for-Debt Exchange”) within [●]
of the Distribution as a transfer of “qualified property” to creditors of Parent in connection with the reorganization
within the meaning of Section 361(c) of the Code and (y) the qualification of (i) each of the Transactions
described on Schedule B attached hereto as either a “distribution” under Section 355 of the Code or as a
 “reorganization” under Sections 368(a), 361 and 355 of the Code, as applicable, and (ii) any other Transaction (or
combination of Transactions) undertaken pursuant to the Separation Step Plan for tax-free treatment (including mitigation or
minimization of Tax) under applicable Tax Law, as determined by Parent in its reasonable discretion and in accordance with the
Separation Step Plan. The term “Intended Tax Treatment” will, as applicable, also include the qualification of each
transaction described in clauses (x) and (y) above under comparable provisions of state or local Tax Law, or, in the case
of clause (y)(ii), non-U.S. Tax Law.

 

“IRS” shall mean the United States
Internal Revenue Service or any successor thereto, including, but not limited to its agents, representatives, and attorneys.

 

“IRS Ruling” shall mean any U.S.
federal income tax ruling and any supplements thereto issued to Parent by the IRS in connection with the Transactions.

 

“IRS Ruling Request” shall mean
the letter filed by Parent with the IRS requesting a ruling regarding certain tax consequences of the Transactions and any amendment
or supplement to such ruling request letter.

 

“Joint Return” shall mean any
Tax Return that includes, by election or otherwise, one or more members of the Parent Group together with one or members of the SpinCo
Group.

 

“Law” shall have the meaning
set forth in the Separation Agreement.

 

“Negotiation Period” shall have
the meaning set forth in Section 9.1.

 

“Non-Controlling Party” shall
mean, with respect to a Tax Contest, the Party that is not entitled to control such Tax Contest pursuant to Section 6.2,
Section 6.3 or Section 6.4.

 

“Non-U.S. Tax” shall mean any
Tax imposed by any non-U.S. country or any possession of the United States, or by any political subdivision of any non-U.S. country or
United States possession.

 

“Notified Action” shall have
the meaning set forth in Section 4.3(a).

 

    	 	4	 

     

    

 

“Parent” shall have the meaning
set forth in the preamble hereto.

 

“Parent Business” shall have
the meaning set forth in the Separation Agreement.

 

“Parent Common Stock” shall have
the meaning set forth in the Separation Agreement.

 

“Parent Group” shall have the
meaning set forth in the Separation Agreement.

 

“Parent Separate Return” shall
mean any Tax Return of or including any member of the Parent Group (including any consolidated, combined, or unitary return) that does
not include any member of the SpinCo Group.

 

“Parties” shall have the meaning
set forth in the preamble hereto.

 

“Past Practices” shall have the
meaning set forth in Section 3.5.

 

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

 

“Post-Distribution Period” shall
mean any Tax Period (or portion thereof) beginning after the Distribution Date, including for the avoidance of doubt, the portion of
any Straddle Period with respect to the Distribution Date beginning after the Distribution Date.

 

“Post-Distribution Ruling” shall
have the meaning set forth in Section 4.2(c).

 

“Pre-Distribution Period” shall
mean any Tax Period (or portion thereof) ending on or before the Distribution Date, including for the avoidance of doubt, the portion
of any Straddle Period with respect to the Distribution Date ending at the end of the day on the Distribution Date.

 

“Preparing Party” shall have
the meaning set forth in Section 3.3.

 

“Privilege” shall mean any privilege
that may be asserted under applicable Law, including, any privilege arising under or relating to the attorney-client relationship (including
the attorney-client and work product privileges), the accountant-client privilege and any privilege relating to internal evaluation processes.

 

“Prohibited Acts” shall mean
any act or failure to act by SpinCo described in Section 4.2(a) or Section 4.2(b) (regardless of whether
the conditions set forth in Section 4.2(c) are satisfied).

 

    	 	5	 

     

    

 

“Proposed Acquisition Transaction”
shall mean a transaction or series of transactions (or any agreement, understanding or arrangement within the meaning of Section 355(e) of
the Code and Treasury Regulations Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction
or series of transactions), whether such transaction is supported by SpinCo management or shareholders, is a hostile acquisition, or
otherwise, as a result of which SpinCo (or any successor thereto) would merge or consolidate with any other Person or as a result of
which one or more Persons would (directly or indirectly) acquire, or have the right to acquire, from SpinCo (or any successor thereto)
and/or one or more holders of SpinCo Capital Stock, respectively, any amount of stock of SpinCo, that would, when combined with any other
direct or indirect changes in ownership of the stock of SpinCo pertinent for purposes of Section 355(e) of the Code and the
Treasury Regulations promulgated thereunder, comprise forty percent (40%) or more of (i) the value of all outstanding shares of
SpinCo as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such series,
or (ii) the total combined voting power of all outstanding shares of voting stock of SpinCo as of the date of such transaction,
or in the case of a series of transactions, the date of the last transaction of such series. Notwithstanding the foregoing, a Proposed
Acquisition Transaction shall not include (i) the adoption by SpinCo of a customary shareholder rights plan or (ii) issuances
by SpinCo that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe
Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulations Section 1.355-7(d). For purposes
of determining whether a transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power or
any redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the non-exchanging shareholders.
This definition and the application thereof are intended to monitor compliance with Section 355(e) of the Code and the Treasury
Regulations promulgated thereunder and shall be interpreted accordingly. Any clarification of, or change in, the statute or regulations
promulgated under Section 355(e) of the Code shall be incorporated in this definition and its interpretation.

 

“Refund” shall mean any refund,
reimbursement, offset, credit or other similar benefit in respect of Taxes (including any overpayment of Taxes that can be refunded or,
alternatively, applied against other Taxes payable), including any interest paid on or with respect to such refund of Taxes; provided,
however, that the amount of any refund of Taxes shall be net of any costs and expenses (including Taxes imposed by any Taxing
Authority) related to, or attributable to, the receipt of or accrual of such refund (including any Taxes imposed by way of withholding
or offset).

 

“Reorganization” shall have the
meaning set forth in the recitals hereto.

 

“Representation
Letters” shall mean the representation letters of officers of Parent and/or SpinCo provided to any Law or accounting
firm in connection with any Tax Opinion issued in connection with the Transactions.

 

“Responsible Party” shall mean,
with respect to any Tax Return, the Party having responsibility for preparing and filing such Tax Return pursuant to this Agreement.

 

“Restricted Period” shall mean
the period beginning on the Distribution Date and ending on the two (2)-year anniversary of the day after the Distribution Date.

 

“Retained Stock” shall have the
meaning set forth in the recitals hereto.

 

“Reviewing Party” shall have
the meaning set forth in Section 3.3.

 

“Section 4.2(b)(v) Acquisition
Transaction” shall have the meaning set forth in Section 4.2(b)(v).

 

“Separate Return” shall mean
a Parent Separate Return or a SpinCo Separate Return, as the case may be.

 

    	 	6	 

     

    

 

“Separation” shall have the meaning
set forth in the recitals hereto.

 

“Separation Agreement” shall
have the meaning set forth in the recitals hereto.

 

“Separation Step Plan” shall
mean have the meaning set forth in the Separation Agreement.

 

“Spin-Off Transaction” shall
mean the Contribution, the Distribution, any Subsequent Distributions, any Debt-for-Equity Exchange and any Debt-for-Debt Exchange, taken together.

 

“SpinCo” shall have the meaning
set forth in the preamble hereto.

 

“SpinCo Business” shall have
the meaning set forth in the Separation Agreement.

 

“SpinCo Capital Stock” means
the Capital Stock of SpinCo, including the SpinCo Common Stock.

 

“SpinCo Common Stock” shall have
the meaning set forth in the Separation Agreement.

 

“SpinCo Debt Proceeds Distribution”
shall have the meaning set forth in the Separation Agreement.

 

“SpinCo Disqualifying Action”
shall mean (a) any action (or the failure to take any action) by any member of the SpinCo Group after the Distribution (including
entering into any agreement, understanding or arrangement or any negotiations with respect to any transaction or series of transactions),
(b) any event (or series of events) after the Distribution involving the SpinCo Capital Stock or any stock or assets of any member
of the SpinCo Group or (c) any breach by any member of the SpinCo Group after the Distribution of any representation, warranty or
covenant made by them in this Agreement, that, in each case, would adversely affect, jeopardize or prevent the Intended Tax Treatment;
provided, however, that the term “SpinCo Disqualifying Action” shall not include any action required by the
Separation Agreement or any Ancillary Agreement (other than this Agreement) or that is undertaken pursuant to the Separation or the Distribution.

 

“SpinCo Group” shall have the
meaning set forth in the Separation Agreement.

 

“SpinCo Holdings Securities”
shall have the meaning set forth in the Separation Agreement.

 

“SpinCo Separate Return” shall
mean any Tax Return of or including any member of the SpinCo Group (including any consolidated, combined, or unitary return) that does
not include any member of the Parent Group.

 

“State Tax” shall mean any Tax
imposed by any State of the United States or by any political subdivision of any such State.

 

    	 	7	 

     

    

 

“Straddle Period” shall mean
any Tax Period beginning on or before the Distribution Date and ending after the Distribution Date.

 

“Subsequent Distribution” shall
have the meaning set forth in the recitals hereto.

 

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

 

“Tax” or “Taxes”
shall mean (i) all taxes, charges, fees, duties, levies, imposts, rates or other assessments or charges of any kind imposed by any
Taxing Authority, including, without limitation, income, gross income, gross receipts, profits, employment, estimated, excise, severance,
stamp, occupation, premium, windfall profits, environmental, custom duties, property, sales, use, license, lease, capital stock, transfer,
import, export, franchise, registration, payroll, withholding, social security, workers’ compensation, unemployment, disability,
ad valorem, service, value-added, alternative or add-on minimum, estimated, unclaimed property or escheat, or other taxes, whether disputed
or not, and including any fee, assessment, duty, or other charge in the nature of or in lieu of any tax, and including any interest,
penalties, charges or additions to tax or additional amounts in respect of the foregoing, (ii) liability for the payment of any
amount of the type described in clause (i) above arising as a result of being (or having been) a member of any group or being (or
having been) included or required to be included in any Tax Return related thereto and (iii) liability for the payment of any amount
of the type described in clause (i) or (ii) above as a result of any express or implied obligation to indemnify or otherwise
assume or succeed to the liability of any other Person. For the avoidance of doubt, Tax includes any increase in Tax as a result of a
Final Determination.

 

“Tax Advisor” shall mean a U.S.
Tax counsel or other Tax advisor of recognized national standing acceptable to Parent, in its sole discretion.

 

“Tax Advisor Dispute” shall have
the meaning set forth in Section 9.1.

 

“Tax Advisor Dispute Notice”
shall have the meaning set forth in Section 9.1.

 

“Tax Attribute” shall mean net
operating losses, capital losses, research and experimentation credit carryovers, investment tax credit carryovers, earnings and profits,
foreign tax credit carryovers, overall foreign losses, overall domestic losses, previously taxed earnings and profits, separate limitation
losses and any other losses, deductions, credits or other comparable items that could affect a Tax Liability for a past or future Tax
Period.

 

“Tax Benefit” shall mean any
reduction in Taxes paid or payable actually realized by a Person as a result of any loss, deduction, Refund, credit, offset or other
Tax Item. For purposes of this Agreement, the amount of any Tax Benefit actually realized by a Person as a result of any such Tax Item
shall be determined on a “with and without basis” as the excess of (a) the hypothetical liability of such Person for
the relevant Tax for the relevant Tax Period, calculated as if such Tax Item had not been utilized but with all other facts unchanged,
over (b) the actual liability of such Person for such Tax for such Tax Period, calculated taking into account such Tax Item (and,
for this purpose, treating a Refund as a reduction in Tax Liability).

 

“Tax Contest” shall have the
meaning set forth in Section 6.1.

 

“Tax Item” shall mean any item
of income, gain, loss, deduction, or credit.

 

    	 	8	 

     

    

 

“Tax Law” shall mean the law
of any Taxing Authority or political subdivision thereof relating to any Tax.

 

“Tax Liability” shall mean any
liability or obligation for Taxes.

 

“Tax Materials” shall have the
meaning set forth in Section 4.1(a).

 

“Tax Matter” shall have the meaning
set forth in Section 7.1(a).

 

“Tax Opinion” shall mean any
written opinion of any Law or accounting firm, regarding certain tax consequences of certain transactions executed as part of the Transactions.

 

“Tax Period” shall mean, with
respect to any Tax, the period for which the Tax is reported or required to be reported as provided under the Code or other applicable
Tax Law.

 

“Tax Records” shall have the
meaning set forth in Section 8.1.

 

“Tax Related Losses” shall mean,
with respect to any Taxes, (i) all accounting, legal and other professional fees, and court costs incurred in connection with such
Taxes, as well as any other out-of-pocket costs incurred in connection with such Taxes and (ii) all costs, expenses and damages
associated with stockholder litigation or controversies and any amount paid by Parent (or any of its Affiliates) or SpinCo (or any of
its Affiliates) in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Taxing Authority,
in each case, resulting from the failure of any of the Transactions to qualify for the Intended Tax Treatment or the defense against
any challenge by the IRS or any other Taxing Authority to the Intended Tax Treatment of any Transaction, even if such Transaction ultimately
is determined to so qualify.

 

“Tax Return” shall mean any return,
report, certificate, form or similar statement or document (including any related supporting information or schedule attached thereto
and any information return, amended tax return, claim for refund or declaration of estimated tax) supplied to or filed with, or required
to be supplied to or filed with, a Taxing Authority, or any bill for or notice related to ad valorem or other similar Taxes received
from a Taxing Authority, in each case, in connection with the determination, assessment or collection of any Tax or the administration
of any laws, regulations or administrative requirements relating to any Tax.

 

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

 

“Transaction Related Tax Contest”
shall mean any Tax Contest in which the IRS, another Taxing Authority or any other party asserts a position that could reasonably be
expected to (a) adversely affect, jeopardize or prevent (i) the Intended Tax Treatment of the Spin-Off Transaction or (ii) the
Intended Tax Treatment of any other Transaction as set forth in a Tax Opinion or an IRS Ruling (or, if not set forth in a Tax Opinions
or an IRS Ruling, in the Separation Step Plan) or (b) otherwise affect the amount of Taxes imposed with respect to any of the Transactions,
as determined in each case by Parent, in its discretion.

 

    	 	9	 

     

    

 

“Transaction Taxes” shall mean
all Taxes (including Taxes imposed on any member of the Parent Group under Sections 951 or 951A of the Code) imposed on or with respect
to the Transactions other than any Taxes resulting from the failure of any of the Transactions to qualify for the Intended Tax Treatment.

 

“Transactions” shall mean
the Separation (including the Reorganization and the Contribution), the Distribution, any Subsequent Distribution, any Debt-for-Debt
Exchange, any Debt-for-Equity Exchange and any related transactions.

 

“Treasury Regulations” shall
mean the regulations promulgated from time to time under the Code as in effect for the relevant Tax Period.

 

“Unqualified Tax Opinion” shall
mean an unqualified “will” opinion of a Tax Advisor, and on which Parent may rely, to the effect that a transaction will
not affect the Intended Tax Treatment or otherwise cause any Transaction to fail to qualify for the Intended Tax Treatment; provided,
that, any tax opinion obtained in connection with a proposed acquisition of SpinCo Capital Stock entered into during the Restricted
Period shall not qualify as an Unqualified Tax Opinion unless such tax opinion concludes that such proposed acquisition will not be treated
as “part of a plan (or series of related transactions),” within the meaning of Section 355(e) of the Code and the
Treasury Regulations promulgated thereunder, that includes the Distribution; provided, further, that any such opinion must
assume that the Contribution and the Distribution, taken together, would have qualified for the Intended Tax Treatment if the transaction
in question did not occur.

 

Article II
– PAYMENTS AND TAX REFUNDS

 

2.1          Responsibility
for SpinCo Group Taxes. Except as otherwise expressly provided in this Agreement:

 

(a)            Parent
shall be responsible for all Taxes (i) of the SpinCo Group for any Pre-Distribution Period; provided, that, in the
case of any Straddle Period, only to the extent allocated to Parent pursuant to Section 2.3; (ii) imposed under Treasury
Regulations Section 1.1502-6 or under any comparable or similar provision of state, local or non-U.S. Law on any member of the SpinCo
Group solely as a result of such company being a member of a consolidated, combined, affiliated or unitary group with, or as a successor
to, any member of the Parent Group during any Tax Period; or (iii) imposed on any member of the SpinCo Group for any Pre-Distribution
Period as a result of any express or implied obligation to indemnify any other Person, or any successor or transferee liability; provided,
that, solely for purposes of this Section 2.1(a), “SpinCo Group” shall not include any Person that becomes
a Subsidiary of SpinCo after the Distribution.

 

(b)            SpinCo
shall be responsible for all Taxes of the SpinCo Group which are not the responsibility of Parent pursuant to Section 2.1(a) (including
Taxes for Post-Distribution Periods of any member of the SpinCo Group).

 

2.2          Transaction
Taxes. Notwithstanding anything to the contrary in Section 2.1, Parent shall pay and be responsible for any Transaction
Taxes, as determined by Parent in its reasonable discretion.

 

    	 	10	 

     

    

 

2.3          Allocation
of Taxes.

 

(a)            If
any member of a Group is permitted but not required under applicable U.S. federal, state, local or non-U.S. Tax Law to treat the Distribution
Date as the last day of a Tax Period with respect to any member of the SpinCo Group, then the Parties and their Affiliates shall treat
such day as the last day of the applicable Tax Period under such applicable Law, and shall file any elections necessary or appropriate
for such treatment; provided, that, for the avoidance of doubt, this Section 2.3 shall not be construed to
require Parent to change its taxable year or treat the Distribution Date as the last day of a Tax Period of any member of the Parent
Group.

 

(b)            Any
transactions occurring, or actions taken, on the Distribution Date but after the Distribution outside the ordinary course of business
by, or with respect to, any member of the SpinCo Group shall be deemed subject to the “next day rule” of Treasury Regulations
Section 1.1502-76(b)(1)(ii)(B) (and under any comparable or similar provision under state, local or non-U.S. Laws or regulations;
provided, that, if there is no comparable or similar provision under state, local or non-U.S. Laws or regulations, then
the transaction will be deemed subject to the “next day rule” of Treasury Regulations Section 1.1502-76(b)(1)(ii)(B))
and as such shall for purposes of this Agreement be treated (and consistently reported by the Parties and their Affiliates) as occurring
in a Post-Distribution Period of the SpinCo Group, as appropriate.

 

(c)            Any
Taxes for a Straddle Period with respect to the SpinCo Group (or entities in which any member of the SpinCo Group has an ownership
interest) shall, for purposes of this Agreement, be allocated between the portion of the period ending on and including the
Distribution Date and the portion of the period beginning after the Distribution Date by means of a closing of the books and records
of the SpinCo Group as of the close of business on the Distribution Date; provided, that, (i) Parent may elect to
allocate Tax Items (other than any extraordinary Tax Items) ratably in the month in which the Distribution occurs (and if Parent so
elects, SpinCo shall so elect) as described in Treasury Regulations Section 1.1502-76(b)(2)(iii) and corresponding
provisions of state, local, and non-U.S. Law; (ii) whenever it is necessary to determine the liability for Taxes of a United
States shareholder (within the meaning of Section 951(b) of the Code) of a controlled foreign corporation (within the
meaning of Section 957 of the Code) attributable to amounts included in the income of such United States shareholder under
Sections 951 or 951A of the Code for the taxable year or period of such controlled foreign corporation that begins on or before
and ends after the Distribution Date, the determination of liability for any such Taxes shall be made by assuming that the taxable
year or period of the controlled foreign corporation consisted of two (2) taxable years or periods, one which ended at the
close of the Distribution Date and the other of which began at the beginning of the day following the Distribution Date and relevant
items of income, gain, deduction, loss or credit of the controlled foreign corporation shall be allocated between such two
(2) taxable years or periods on a closing of the books basis by assuming that the books of the controlled foreign corporation
were closed at the close of the Distribution Date; provided, however, that Subpart F income (within the meaning of
Section 952 of the Code) of the controlled foreign corporation shall be determined without regard to
Section 952(c) of the Code; and (iii) subject to clauses (i) and (ii), exemptions, allowances or deductions that
are calculated on an annual basis, and not on a closing of the books method (including depreciation and amortization deductions)
shall be allocated between the period ending on and including the Distribution Date and the period beginning after the Distribution
Date based on the number of days for the portion of the Straddle Period ending on and including the Distribution Date, on the one
hand, and the number of days for the portion of the Straddle Period beginning after the Distribution Date, on the other hand. The
foregoing provisions in this Section 2.3(c) shall be applied as determined by Parent in its reasonable
discretion.

 

    	 	11	 

     

    

 

2.4          Allocation
of Employment Taxes. Liability for Employment Taxes and any related Tax Benefits shall be determined pursuant to the EMA.

 

2.5          Tax
Refunds.

 

(a)            Parent
shall be entitled to all Refunds related to Taxes the liability for which is allocated to Parent pursuant to this Agreement (taking into
account Section 2.3(b) and Section 2.3(c)). SpinCo shall be entitled to all Refunds related to Taxes the
liability for which is allocated to SpinCo pursuant to this Agreement (taking into account Section 2.3(b) and Section 2.3(c)).

 

(b)            SpinCo
shall pay to Parent any Refund received by SpinCo or any member of the SpinCo Group that is allocable to Parent pursuant to this Section 2.5
no later than thirty (30) Business Days after the receipt of such Refund. Parent shall pay to SpinCo any Refund received by Parent
or any member of the Parent Group that is allocable to SpinCo pursuant to this Section 2.5 no later than thirty (30)
Business Days after the receipt of such Refund. For purposes of this Section 2.5, any Refund that arises as a result of
an offset, credit, or other similar benefit in respect of Taxes other than a receipt of cash shall be deemed to be received on the
earlier of (i) the date on which a Tax Return is filed claiming such offset, credit, or other similar benefit and (ii) the
date on which payment of the Tax which would have otherwise been paid absent such offset, credit, or other similar benefit is due
(determined without taking into account any applicable extensions).

 

2.6          Tax
Benefits. If Parent determines, in its reasonable discretion, that: (i) one Party is responsible for a Tax pursuant to this
Agreement or under applicable Law and (ii) the other Party is entitled to a Tax Benefit relating to such Tax, then the Party entitled
to such Tax Benefit shall pay to the Party responsible for such Tax the amount of the Tax Benefit, as determined by Parent in its reasonable
discretion.

 

2.7          Prior
Agreements. Except as set forth in this Agreement and in consideration of the mutual indemnities and other obligations of this Agreement,
any and all prior Tax sharing or allocation agreements or practices between any member of the Parent Group and any member of the SpinCo
Group shall be terminated with respect to the SpinCo Group and the Parent Group as of the Distribution Date. No member of either the
SpinCo Group or the Parent Group shall have any continuing rights or obligations under any such agreement.

 

2.8          Specified
Matters. Notwithstanding anything to the contrary in this Article II, the matters specified in Schedule A shall
in addition be subject to the provisions of Schedule A, which shall govern in the event of any conflict between the provisions
of Schedule A and this Article II.

 

    	 	12	 

     

    

 

Article III
– PREPARATION AND FILING OF TAX RETURNS

 

3.1            Parent’s
Responsibility. Parent shall prepare and file when due (taking into account any applicable extensions), or shall cause to be prepared
and filed, all Joint Returns, all Tax Returns pursuant to which there is a claim to group relief by one or more members of the SpinCo
Group in respect of losses generated by one or more members of the Parent Group, and all Parent Separate Returns, including any amendments
to such Tax Returns.

 

3.2            SpinCo’s
Responsibility. SpinCo shall prepare and file when due (taking into account any applicable extensions), or shall cause to be prepared
and filed, all Tax Returns, including any amended Tax Returns, required to be filed by or with respect to members of the SpinCo Group
other than those Tax Returns which Parent is required to prepare and file under Section 3.1. The Tax Returns required to
be prepared and filed by SpinCo under this Section 3.2 shall include any SpinCo Separate Returns and any amended SpinCo Separate
Returns. For the avoidance of doubt, SpinCo shall prepare any transfer pricing documentation required to be prepared with respect to
a Tax Return required to be prepared and filed under this Section 3.2 and Parent shall be entitled to review and comment
on any such transfer pricing documentation in a manner consistent with Section 3.3.

 

3.3            Right
to Review Tax Returns. To the extent that the positions taken on any Tax Return would reasonably be expected to materially adversely
affect the Tax position of the Party other than the Party that is required to prepare and file any such Tax Return pursuant to Section 3.1
or Section 3.2 (the “Reviewing Party”), as determined by Parent in its reasonable discretion, the
Party required to prepare and file such Tax Return (the “Preparing Party”) shall prepare the portions of such Tax
Return that relates to the business of the Reviewing Party (the Parent Business or the SpinCo Business, as the case may be), shall provide
a draft of such portion of such Tax Return to the Reviewing Party for its review and comment at least thirty (30) days prior to the Due
Date for such Tax Return, and shall consider in good faith any comments with respect to items that would reasonably be expected to materially
adversely affect the Tax position of the Reviewing Party.

 

3.4            Cooperation.
The Parties shall provide, and shall cause their Affiliates to provide, assistance and cooperation to one another in accordance with
Article VII with respect to the preparation and filing of Tax Returns, including providing information required to be provided
under Article VIII. Notwithstanding anything to the contrary in this Agreement, Parent shall not be required to disclose
to SpinCo any consolidated, combined, unitary or other similar Joint Return of which a member of the Parent Group is the common parent
or any information related to such a Joint Return other than information relating solely to the SpinCo Group; provided, that,
Parent shall provide such additional information that is reasonably required in order for SpinCo to determine the Taxes attributable
to the SpinCo Business. If an amended Separate Return for State Taxes for which SpinCo is responsible under this Article III
is required to be filed as a result of an amendment made to a Joint Return for U.S. federal income taxes pursuant to an audit Adjustment,
then the Parties shall cooperate to ensure that such amended Separate Return can be prepared and filed in a manner that preserves confidential
information including through the use of third party preparers.

 

    	 	13	 

     

    

 

3.5          Tax
Reporting Practices. Except as provided in Section 3.6, any Tax Return for any Pre-Distribution Period or Straddle Period,
to the extent it relates to members of the SpinCo Group, shall be prepared in accordance with practices, accounting methods, elections,
conventions, transfer pricing and Tax positions used with respect to the Tax Return in question for periods prior to the Distribution
(“Past Practices”), and, in the case of any item the treatment of which is not addressed by Past Practices, in accordance
with generally acceptable Tax accounting practices. Notwithstanding the foregoing, for any Tax Return described in the preceding sentence,
(i) a Party will not be required to follow Past Practices with either the written consent of the other Party (not to be unreasonably
withheld, delayed or conditioned) or a “more likely than not” (or stronger) level opinion from a Tax Advisor that reporting
in accordance with Past Practices is not correct and (ii) Parent shall have the right to determine which entities will be included
in any consolidated, combined, affiliated or unitary Tax Return that it is responsible for filing.

 

3.6          Reporting
of Separation.

 

(a)            The
Tax treatment of any step in or portion of the Transactions shall be reported on each applicable Tax Return consistently with the Intended
Tax Treatment, taking into account the jurisdiction in which such Tax Returns are filed.

 

(b)            If
Parent determines, in its sole discretion, that a protective election under Section 336(e) of the Code shall be made with respect
to the Distribution, SpinCo agrees to take any such action that is necessary to effect such election, including any corresponding election
with respect to any of its Subsidiaries, as determined by Parent. If such a protective election is made, this Agreement shall be amended
in such a manner as is determined by Parent in its reasonable discretion to compensate Parent for any Tax Benefits realized by SpinCo
as a result of such election.

 

3.7          Payment
of Taxes.

 

(a)            With
respect to any Tax Return required to be filed pursuant to this Agreement, the Responsible Party shall remit or cause to be remitted
to the applicable Taxing Authority in a timely manner any Taxes due in respect of any such Tax Return.

 

(b)            In
the case of any Tax Return for which the Party that is not the Responsible Party is obligated pursuant to this Agreement to pay all or
a portion of the Taxes reported as due on such Tax Return, the Responsible Party shall notify the other Party, in writing, of its obligation
to pay such Taxes and, in reasonably sufficient detail, its calculation of the amount due by such other Party and the Party receiving
such notice shall pay such amount to the Responsible Party upon the later of thirty (30) Business Days prior to the Due Date for such
payment and thirty (30) Business Days after the receipt of such notice.

 

(c)            With
respect to any estimated Taxes, the Party that is or will be the Responsible Party with respect to any Tax Return that will reflect (or
otherwise give credit for) such estimated Taxes shall remit or cause to be remitted to the applicable Taxing Authority in a timely manner
any estimated Taxes due. In the case of any estimated Taxes for which the Party that is not the Responsible Party is obligated pursuant
to this Agreement to pay all or a portion of the Taxes that will be reported as due on any Tax Return that will reflect (or otherwise
give credit for) such estimated Taxes, the Responsible Party shall notify the other Party, in writing, of its obligation to pay such
estimated Taxes and, in reasonably sufficient detail, its calculation of the amount due by such other Party and the Party receiving such
notice shall pay such amount to the Responsible Party upon the later of thirty (30) Business Days prior to the Due Date for such payment
and thirty (30) Business Days after the receipt of such notice.

 

    	 	14	 

     

    

 

3.8          Amended
Returns and Carrybacks.

 

(a)            SpinCo
shall not, and shall not permit any member of the SpinCo Group to, file or allow to be filed any request for an Adjustment for any Pre-Distribution
Period without the prior written consent of Parent, such consent to be exercised in Parent’s sole discretion.

 

(b)            SpinCo
shall, and shall cause each member of the SpinCo Group to, make any available elections to waive the right to carry back any Tax Attribute
from a Post-Distribution Period to a Pre-Distribution Period.

 

(c)            SpinCo
shall not, and shall cause each member of the SpinCo Group not to, without the prior written consent of Parent, make any affirmative
election to carry back any Tax Attribute from a Post-Distribution Period to a Pre-Distribution Period, including by filing a claim for
a refund or making any other filing with any Taxing Authority with respect to such carryback, such consent to be exercised in Parent’s
sole discretion.

 

(d)            Receipt
of consent by SpinCo or a member of the SpinCo Group from Parent pursuant to the provisions of this Section 3.8 shall not
limit or modify SpinCo’s continuing indemnification obligation pursuant to Article V.

 

3.9           Tax
Attributes. Parent shall in good faith advise SpinCo in writing of the amount (if any) of any Tax Attributes, which Parent determines,
in its sole discretion, shall be allocated or apportioned to the SpinCo Group under applicable Law. SpinCo and all members of the SpinCo
Group shall prepare all Tax Returns in accordance with such written notice. SpinCo agrees that it shall not dispute Parent’s determination
of Tax Attributes. For the avoidance of doubt, Parent shall not be required in order to comply with this Section 3.9 to create
or cause to be created any books and records or reports or other documents based thereon (including, without limitation, “earnings &
profits studies,” “basis studies” or similar determinations) that it does not maintain or prepare in the ordinary course
of business.

 

3.10          Gain
Recognition Agreements. SpinCo will not take any action (including the sale or disposition of any stock, securities or other assets),
or permit its Affiliates to take any such action, and SpinCo will not fail to take any action, or permit its Affiliates to fail to take
any action, that would cause Parent or any of its Affiliates or SpinCo or any of its Affiliates to recognize gain under any Gain Recognition
Agreement.

 

3.11          Specified
Matters. Notwithstanding anything to the contrary in this Article III, the matters specified in Schedule A shall
in addition be subject to the provisions of Schedule A, which shall govern in the event of any conflict between the provisions
of Schedule A and this Article III.

 

    	 	15	 

     

    

 

Article IV
– INTENDED TAX TREATMENT OF THE DISTRIBUTION

 

4.1          Representations
and Warranties.

 

(a)            Parent,
on behalf of itself and all other members of the Parent Group, hereby represents and warrants that (i) it has examined the IRS Ruling
Request, the Tax Opinions, the Representation Letters and any other materials delivered or deliverable in connection with the issuance
of any IRS Ruling and the rendering of the Tax Opinions, in each case, as they exist as of the date hereof (collectively, the “Tax
Materials”) and (ii) the facts presented and representations made therein, to the extent descriptive of or otherwise relating
to Parent or any member of the Parent Group or the Parent Business, were at the time presented or represented and from such time until
and including the Distribution Date, true, correct and complete in all material respects. Parent, on behalf of itself and all other members
of the Parent Group, hereby confirms and agrees to comply with any and all covenants and agreements in the Tax Materials applicable to
Parent or any member of the Parent Group or the Parent Business.

 

(b)            SpinCo,
on behalf of itself and all other members of the SpinCo Group, hereby represents and warrants that (i) it has examined the Tax Materials
and (ii) the facts presented and representations made therein, to the extent descriptive of or otherwise relating to SpinCo or any
member of the SpinCo Group or the SpinCo Business, were or will be, at the time presented or represented and from such time until and
including the Distribution Date, true, correct and complete in all material respects. SpinCo, on behalf of itself and all other members
of the SpinCo Group, hereby confirms and agrees to comply with any and all covenants and agreements in the Tax Materials applicable to
SpinCo or any member of the SpinCo Group or the SpinCo Business.

 

(c)            Each
of Parent, on behalf of itself and all other members of the Parent Group, and SpinCo, on behalf of itself and all other members of the
SpinCo Group, represents and warrants that it knows of no fact (after due inquiry) that may cause the Tax treatment of any of the Transactions
to be other than the Intended Tax Treatment.

 

(d)            Each
of Parent, on behalf of itself and all other members of the Parent Group, and SpinCo, on behalf of itself and all other members of the
SpinCo Group, represents and warrants that it has no plan or intent to take any action which is inconsistent with any statements or representations
made in the Tax Materials.

 

4.2          Restrictions
Relating to the Distribution.

 

(a)            SpinCo,
on behalf of itself and all other members of the SpinCo Group, hereby covenants and agrees that no member of the SpinCo Group will take,
fail to take, or permit to be taken: (i) any action where such action or failure to act would be inconsistent with or cause to be
untrue any statement, information, covenant or representation in the Tax Materials or (ii) any action which constitutes a SpinCo
Disqualifying Action.

 

(b)            During
the Restricted Period, SpinCo:

 

(i)            shall
continue and cause to be continued and not approve or allow, or enter into any agreement, understanding or arrangement with respect to,
the discontinuance, cessation, or sale or other transfer (to an Affiliate or otherwise) of, or a material change in or sale of the material
assets of, any Active Business, other than sales in the ordinary course of business;

 

    	 	16	 

     

    

 

(ii)           shall
not voluntarily dissolve or liquidate or partially liquidate itself, approve or allow any liquidation, or partial liquidation of any of
its Affiliates (including any action that is a liquidation for U.S. federal income tax purposes), or enter into any agreement, understanding
or arrangement with respect to the foregoing;

 

(iii)          shall
not (1) enter into any Proposed Acquisition Transaction or, to the extent SpinCo has the right or ability to prevent or prohibit
any Proposed Acquisition Transaction, permit any Proposed Acquisition Transaction to occur, (2) redeem or otherwise repurchase (directly
or through an Affiliate) any stock, or rights to acquire stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of
Revenue Procedure 96-30 (as in effect prior to the amendment of such Revenue Procedure by Revenue Procedure 2003-48), (3) amend its
certificate of incorporation (or other organizational documents), issue a new class of non-voting stock, or take any other action, whether
through a stockholder vote or otherwise, affecting the relative voting rights of its Capital Stock (including through the conversion of
any Capital Stock into another class of Capital Stock), (4) merge or consolidate with any other Person or allow any of its Affiliates
to merge or consolidate with any other Person or (5) take any other action or actions (including any action or transaction that would
be reasonably likely to be inconsistent with any representation made in the Tax Materials) which in the aggregate would, when combined
with any other direct or indirect changes in ownership of SpinCo Capital Stock pertinent for purposes of Section 355(e) of the
Code, have the effect of causing or permitting one or more Persons (whether or not acting in concert) to acquire directly or indirectly
stock representing a forty percent (40%) or greater interest in SpinCo or would reasonably be expected to result in a failure to preserve,
achieve or maintain the Intended Tax Treatment, or enter into any agreement, understanding or arrangement with respect to any of the foregoing;

 

(iv)          shall
not and shall not permit any member of the SpinCo Group, to sell, transfer or otherwise dispose of (including in any transaction treated
for U.S. federal income tax purposes as a sale, transfer or disposition) assets (including any shares of Capital Stock of a Subsidiary)
that, in the aggregate, constitute more than twenty percent (20%) of the consolidated gross assets of SpinCo or the SpinCo Group, or enter
into (or permit any member of the SpinCo Group to enter into) any agreement, understanding or arrangement with respect to the foregoing.
The foregoing sentence shall not apply to (1) sales, transfers or dispositions of assets in the ordinary course of business, (2) any
cash paid to acquire assets from an unrelated Person in an arm’s-length transaction, (3) any assets transferred to a Person
that is disregarded as an entity separate from the transferor for U.S. federal income tax purposes or (4) any mandatory or optional
repayment (or pre-payment) of any indebtedness of SpinCo or any member of the SpinCo Group. The percentages of gross assets or consolidated
gross assets of SpinCo or the SpinCo Group, as the case may be, sold, transferred or otherwise disposed of, shall be based on the fair
market value of the gross assets of SpinCo and the members of the SpinCo Group as of the Distribution Date. For purposes of this Section 4.2(b)(iv),
a merger of SpinCo or one of its Subsidiaries with and into any Person that is not a wholly owned Subsidiary of SpinCo shall constitute
a disposition of all of the assets of SpinCo or such Subsidiary;

 

    17

     

    

 

(v)           shall,
if any member of the SpinCo Group proposes to enter into any transaction or series of transactions that is not a Proposed
Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed
Acquisition Transaction were thirty percent (30%) instead of forty percent (40%) (a
 “Section 4.2(b)(v) Acquisition Transaction”) or, to the extent SpinCo has the right or ability to
prevent or prohibit any Section 4.2(b)(v) Acquisition Transaction, proposes to permit any
Section 4.2(b)(v) Acquisition Transaction to occur, in each case, provide Parent, no later than ten (10) Business
Days following the signing of any written agreement with respect to the Section 4.2(b)(v) Acquisition Transaction, a
written description of such transaction (including the type and amount of stock of SpinCo to be issued in such transaction) and a
certificate of the board of directors of SpinCo to the effect that the Section 4.2(b)(v) Acquisition Transaction is not a
Proposed Acquisition Transaction; and

 

(vi)          shall
not cause or permit any member of the SpinCo Group that was a “distributing corporation” or a “controlled corporation”
(within the meaning of Section 355(b) of the Code) in any Transaction other than the Distribution to take any action or enter
into any transaction described in clauses (2), (3), (4) or (5) of Section 4.2(b)(iii) or in Section 4.2(b)(iv) (in
each case, substituting references therein to “SpinCo”, the “SpinCo Group” and “SpinCo Capital Stock”
with references to the relevant corporation, the relevant corporation and its Subsidiaries and the Capital Stock of such corporation,
respectively).

 

(c)           Notwithstanding
the restrictions imposed by Section 4.2(b), SpinCo or a member of the SpinCo Group may take any of the actions or transactions
described therein if (i) SpinCo shall have requested that Parent obtain a private letter ruling (including a supplemental ruling,
if applicable) from the IRS (a “Post-Distribution Ruling”) in accordance with Section 4.3(b) to
the effect that such transaction will not affect the Intended Tax Treatment, and Parent shall have received such a Post-Distribution
Ruling and shall have notified SpinCo in writing that Parent has determined that such Post-Distribution Ruling is in form and substance
satisfactory to Parent in its sole and absolute discretion or (ii) both (A) SpinCo obtains an Unqualified Tax Opinion with respect
thereto and (B) Parent notifies SpinCo in writing that Parent has determined that such Unqualified Tax Opinion is in form and substance
satisfactory to Parent in its sole and absolute discretion. Parent’s evaluation of a Post-Distribution Ruling or an Unqualified
Tax Opinion may consider, among other factors, the appropriateness of any underlying assumptions, representations and covenants made in
connection with such ruling or opinion as well as any other factors, circumstances, considerations or concerns that Parent determines
in its sole and absolute discretion are relevant. SpinCo shall bear all costs and expenses of securing any such Post-Distribution Ruling
or Unqualified Tax Opinion and shall, as set forth in Section 4.3(b) below, reimburse Parent for all reasonable out-of-pocket
expenses that Parent or any of its Affiliates may incur in good faith in seeking to obtain or evaluate any such Post-Distribution Ruling
or Unqualified Tax Opinion. None of the obtaining of a Post-Distribution Ruling, the delivery of an Unqualified Tax Opinion or Parent’s
waiver of SpinCo’s obligation to deliver a Post-Distribution Ruling or an Unqualified Tax Opinion shall limit or modify SpinCo’s
continuing indemnification obligation pursuant to Article V.

 

    18

     

    

 

4.3           Additional
Procedures Regarding Post-Distribution Rulings and Unqualified Tax Opinions.

 

(a)           If
SpinCo determines that it desires to take one of the actions described in Section 4.2(b) (a “Notified Action”),
SpinCo shall notify Parent of this fact in writing.

 

(b)           Post-Distribution
Rulings or Unqualified Tax Opinions at SpinCo’s Request. Unless Parent shall have waived the requirement to obtain such Post-Distribution
Ruling or Unqualified Tax Opinion, upon the reasonable request of SpinCo pursuant to Section 4.2(c)(i), Parent shall use
commercially reasonable efforts in cooperating with SpinCo and in seeking to obtain, as expeditiously as possible, a Post-Distribution
Ruling from the IRS (and/or any other applicable Taxing Authority) or an Unqualified Tax Opinion for the purpose of permitting SpinCo
to take the Notified Action, subject in all respects to the provisions of Section 4.2. Notwithstanding the foregoing, Parent
shall not be required to file or cooperate in the filing of any request for a Post-Distribution Ruling under this Section 4.3(b) unless
SpinCo represents that (A) it has reviewed such request for a Post-Distribution Ruling, and (B) all statements, information
and representations relating to any member of the SpinCo Group contained in such request for a Post-Distribution Ruling are (subject
to any qualifications therein) true, correct and complete. SpinCo shall reimburse Parent for all reasonable costs and expenses, including
out-of-pocket expenses and expenses relating to the utilization of Parent personnel, incurred by the Parent Group in obtaining a Post-Distribution
Ruling or Unqualified Tax Opinion requested by SpinCo within thirty (30) Business Days after receiving an invoice from Parent therefor.

 

(c)           Post-Distribution
Rulings or Unqualified Tax Opinions at Parent’s Request. Parent shall have the right to obtain a Post-Distribution Ruling or
an Unqualified Tax Opinion at any time in its sole and absolute discretion. If Parent determines to obtain a Post-Distribution Ruling
or an Unqualified Tax Opinion, SpinCo shall (and shall cause each Affiliate of SpinCo to) cooperate with Parent and take any and all
actions reasonably requested by Parent in connection with obtaining the Post-Distribution Ruling or Unqualified Tax Opinion (including,
without limitation, by making any representation or covenant or providing any materials or information requested by the IRS, any other
applicable Taxing Authority or a Tax Advisor; provided, that, SpinCo shall not be required to make (or cause any Affiliate
of SpinCo to make) any representation or covenant that is inconsistent with historical facts or as to future matters or events over which
matters or events it has no control). Parent shall reimburse SpinCo for all reasonable costs and expenses, including out-of-pocket expenses
and expenses relating to the utilization of SpinCo personnel, incurred by the Parent Group in connection with such cooperation within
thirty (30) Business Days after receiving an invoice from SpinCo therefor.

 

(d)           Parent
shall have sole and exclusive control over the process of obtaining any Post-Distribution Ruling, and only Parent shall be permitted
to apply for a Post-Distribution Ruling. In connection with obtaining a Post-Distribution Ruling, Parent shall (A) keep SpinCo informed
in a timely manner of all material actions taken or proposed to be taken by Parent in connection therewith; (B) (1) reasonably
in advance of the submission of any request for any Post-Distribution Ruling provide SpinCo with a draft copy thereof, (2) reasonably
consider SpinCo comments on such draft copy, and (3) provide SpinCo with a final copy of such Post-Distribution Ruling; and (C) provide
SpinCo with notice reasonably in advance of, and SpinCo shall have the right to attend, any formally scheduled meetings with the IRS
or other applicable Taxing Authority (subject to the approval of the IRS or such Taxing Authority) that relate to such Post-Distribution
Ruling. Neither SpinCo nor any Affiliate of SpinCo directly or indirectly controlled by SpinCo shall seek any guidance from the IRS or
any other Taxing Authority (whether written, oral or otherwise) at any time concerning the Transactions (including the impact of any
transaction on the Transactions).

 

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(e)           Any
Post-Distribution Ruling or Unqualified Tax Opinion obtained in accordance with Section 4.2(c) and Section 4.3
shall be deemed included in the definition of Tax Materials from and after the obtaining thereof for all purposes of this Agreement.

 

Article V
– INDEMNITY OBLIGATIONS

 

5.1           Indemnity
Obligations.

 

(a)           Parent
shall indemnify and hold harmless SpinCo from and against, and will reimburse SpinCo for, (i) all liability for Taxes allocated
to Parent pursuant to Article II, (ii) all Taxes and Tax Related Losses to the extent arising out of, based upon, or
relating or attributable to any breach of or inaccuracy in, or failure to perform, as applicable, any representation, covenant or obligation
of any member of the Parent Group pursuant to this Agreement and (iii) the amount of any Refund received by any member of the Parent
Group that is allocated to SpinCo pursuant to Section 2.5(a).

 

(b)           Without
regard to whether a Post-Distribution Ruling or an Unqualified Tax Opinion may have been provided or whether any action is permitted
or consented to hereunder and notwithstanding anything to the contrary in this Agreement, SpinCo shall indemnify and hold harmless Parent
from and against, and will reimburse Parent for, (i) all liability for Taxes allocated to SpinCo pursuant to Article II,
(ii) all liability for Taxes and Tax Related Losses arising out of, based upon, or relating or attributable to any breach of or
inaccuracy in, or failure to perform, as applicable, any representation, covenant or obligation of any member of the SpinCo Group pursuant
to this Agreement, (iii) the amount of any Refund received by any member of the SpinCo Group that is allocated to Parent pursuant
to Section 2.5(a) and (iv) any Distribution Taxes and Tax Related Losses attributable to a Prohibited Act, or otherwise
attributable to a SpinCo Disqualifying Action (regardless of whether the conditions set forth in Section 4.2(c) are
satisfied). To the extent that any Tax or Tax Related Loss is subject to indemnity pursuant to both Section 5.1(a) and
Section 5.1(b), responsibility for such Tax or Tax Related Loss shall be shared by Parent and SpinCo according to relative
fault as determined by Parent in its reasonable discretion.

 

5.2           Indemnification
Payments.

 

(a)           Except
as otherwise provided in this Agreement, if either Party (the “Indemnitee”) is required to pay to a Taxing Authority
a Tax or to another Person a payment in respect of a Tax or Tax Related Loss that the other Party (the “Indemnifying Party”)
is liable for under this Agreement, including as the result of a Final Determination, the Indemnitee shall notify the Indemnifying Party,
in writing, of its obligation to pay such Tax or Tax Related Loss and, in reasonably sufficient detail, its calculation of the amount
due by such Indemnifying Party to the Indemnitee. The Indemnifying Party shall pay such amount, including any Tax Related Losses, to
the Indemnitee no later than the later of (i) thirty (30) Business Days prior to the Due Date for such payment to the applicable
Taxing Authority or (ii) thirty (30) Business Days after the receipt of notice from the other Party.

 

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(b)           If,
as a result of any change or redetermination, any amount previously allocated to and borne by one Party pursuant to the provisions of
Article II is thereafter allocated to the other Party, then, no later than thirty (30) Business Days after such change or
redetermination, such other Party shall pay to such Party the amount previously borne by such Party which is allocated to such other
Party as a result of such change or redetermination.

 

(c)           If
a Party incurs a Tax Liability as a result of its receipt of a payment pursuant to this Agreement or the Separation Agreement, such payment
shall be appropriately adjusted so that the amount of such payment, reduced by the amount of all Taxes payable with respect to the receipt
thereof (but taking into account all correlative Tax Benefits resulting from the payment of such Taxes), shall equal the amount of the
payment which the Party receiving such payment would otherwise be entitled to receive.

 

5.3           Payment
Mechanics.

 

(a)           All
payments under this Agreement shall be made by Parent directly to SpinCo and by SpinCo directly to Parent; provided, however,
that if the Parties mutually agree with respect to any such indemnification payment, any member of the Parent Group, on the one hand,
may make such indemnification payment to any member of the SpinCo Group, on the other hand, and vice versa. All indemnification payments
shall be treated in the manner described in Section 5.4.

 

(b)           In
the case of any payment of Taxes made by a Responsible Party or Indemnitee pursuant to this Agreement for which such Responsible Party
or Indemnitee, as the case may be, has received a payment from the other Party, such Responsible Party or Indemnitee shall provide to
the other Party a copy of any official government receipt received with respect to the payment of such Taxes to the applicable Taxing
Authority (or, if no such official governmental receipts are available, executed bank payment forms or other reasonable evidence of payment).

 

5.4           Treatment
of Payments. The Parties agree that any payment made among the Parties pursuant to this Agreement shall be treated, to the extent
permitted by Law, for all U.S. federal income tax purposes as either (i) a non-taxable contribution by Parent to SpinCo or (ii) a
distribution by SpinCo to Parent, and, with respect to any payment made among the Parties pursuant to this Agreement after the Distribution,
such payment shall be treated as having been made immediately prior to the Distribution. Notwithstanding the foregoing, Parent shall
notify SpinCo if it determines that any payment made pursuant to this Agreement is to be treated, for any Tax purposes, as a payment
made by one Party acting as an agent of one of such Party’s Subsidiaries to the other Party acting as an agent of one of such other
Party’s Subsidiaries, and the Parties agree to treat any such payment accordingly.

 

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Article VI
– TAX CONTESTS

 

6.1           Notice.
Each Party shall notify the other Party in writing within ten (10) days after receipt by such Party or any member of its Group of
a written communication from any Taxing Authority with respect to any pending or threatened audit, claim, dispute, suit, action, proposed
assessment or other proceeding (a “Tax Contest”) concerning any Taxes for which the other Party may be liable pursuant
to this Agreement, and thereafter shall promptly forward or make available to such Party copies of notices and communications relating
to such Tax Contest.

 

6.2           Separate
Returns.

 

(a)           In
the case of any Tax Contest with respect to any Separate Return other than a Separate Return in respect of a Straddle Period, the Party
having the liability for the Tax pursuant to Article II hereof shall have the sole responsibility and right to control the
prosecution of such Tax Contest, including the exclusive right to communicate with agents of the applicable Taxing Authority and to control,
resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result of such
Tax Contest.

 

(b)           In
the case of any Tax Contest with respect to any Separate Return in respect of a Straddle Period, the Party having the greatest amount
at risk pursuant to Section 2.3(c), as determined by Parent in its reasonable discretion, shall have the responsibility and
right to control the prosecution of such Tax Contest; provided, that, the other Party shall have the right to participate,
at its own expense, and the controlling Party shall not have the right to resolve, settle or agree to any deficiency, claim or adjustment
proposed, asserted or assessed in connection with or as a result of such Tax Contest without the consent of the other Party, not to be
unreasonably withheld, delayed or conditioned.

 

6.3           Joint
Return. In the case of any Tax Contest with respect to any Joint Return, Parent shall have the sole responsibility and right to control
the prosecution of such Tax Contest, including the exclusive right to communicate with agents of the applicable Taxing Authority and
to control, resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted, or assessed in connection with or as
a result of such Tax Contest. Notwithstanding the foregoing, to the extent a portion of any such Tax Contest with respect to a Joint
Return with respect to Non-U.S. Taxes relates to a matter which was customarily controlled by a member of the SpinCo Group, as determined
by Parent in its sole discretion, then Parent may elect that SpinCo shall be responsible for conduct of such portion of such Tax Contest
and any expenses related thereto, including expenses relating to supporting transfer pricing analysis.

 

6.4           Transaction
Related Tax Contests. Notwithstanding anything to the contrary in Section 6.2 or Section 6.3, in the case
of any Transaction Related Tax Contest, Parent shall have the sole responsibility and right to control the prosecution of such Tax Contest,
including the exclusive right to communicate with agents of the applicable Taxing Authority and to control, resolve, settle or agree
to any deficiency, claim or adjustment proposed, asserted, or assessed in connection with or as a result of such Tax Contest. Notwithstanding
anything to the contrary in Section 6.6, the final determination of the positions taken, including with respect to settlement
or other disposition, in any Transaction Related Tax Contest shall be made in the sole discretion of Parent and shall be final and not
subject to the dispute resolution provisions of Section 9.1 or Section 9.2 of this Agreement or Section 11.02,
Section 11.03 or Section 11.05 of the Separation Agreement.

 

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6.5           Obligation
of Continued Notice. During the pendency of any Tax Contest or threatened Tax Contest, each of the Parties shall provide prompt notice
to the other Party of any written communication received by it or a member of its respective Group from a Taxing Authority regarding
any Tax Contest for which it is indemnified by the other Party hereunder or for which it may be required to indemnify the other Party
hereunder. Such notice shall attach copies of the pertinent portion of any written communication from a Taxing Authority and contain
factual information (to the extent known) describing any asserted Tax Liability in reasonable detail and shall be accompanied by copies
of any notice and other documents received from any Taxing Authority in respect of any such matters. Such notice shall be provided in
a reasonably timely fashion; provided, however, that in the event that timely notice is not provided, a Party shall be
relieved of its obligation to indemnify the other Party only to the extent that such delay results in actual increased costs or actual
prejudice to such other Party.

 

6.6           Settlement
Rights.

 

(a)           Unless
waived by the Parties in writing, in connection with any potential adjustment in a Tax Contest as a result of which adjustment the Non-Controlling
Party may reasonably be expected to become liable to make any indemnification payment to the Controlling Party under this Agreement:
(i) the Controlling Party shall keep the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be
taken by the Controlling Party with respect to such potential adjustment in such Tax Contest; (ii) the Controlling Party shall timely
provide the Non-Controlling Party with copies of any correspondence or filings submitted to any Taxing Authority or judicial authority
in connection with such potential adjustment in such Tax Contest; and (iii) the Controlling Party shall defend such Tax Contest
diligently and in good faith. The failure of the Controlling Party to take any action specified in the preceding sentence with respect
to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the
Controlling Party under this Agreement, and in no event shall such failure relieve the Non-Controlling Party from any other liability
or obligation which it may have to the Controlling Party.

 

(b)           Consistent
Treatment. Unless and until there has been a Final Determination to the contrary, each Party agrees not to take any position on any
Tax Return, in connection with any Tax Contest or otherwise that is inconsistent with (i) the treatment of payments between the
Parent Group and the SpinCo Group as set forth in Section 5.4, (ii) the Tax Materials or (iii) the Intended Tax
Treatment.

 

Article VII
– COOPERATION

 

7.1           General.

 

(a)           Each
Party shall fully cooperate, and shall cause all members of such Party’s Group to fully cooperate, with all reasonable requests
in writing from the other Party, or from an agent, representative or advisor to such Party, in connection with the preparation and filing
of any Tax Return, claims for Refunds, the conduct of any Tax Contest, and calculations of amounts required to be paid pursuant to this
Agreement, in each case, related or attributable to or arising in connection with Taxes of either Party or any member of either Party’s
Group covered by this Agreement or otherwise relating to the SpinCo Business for any Pre-Distribution Period and the establishment of
any reserve required in connection with any financial reporting (a “Tax Matter”). Such cooperation shall include making
available, upon reasonable notice, all information and documents in their possession relating to the other Party and its respective Affiliates
as provided in this Article VII and Article VIII. Each Party shall make its employees, advisors and facilities
available, without charge, on a reasonable and mutually convenient basis in connection with the foregoing matters in a manner that does
not interfere with the ordinary business operations of such Party. The Parties shall use commercially reasonable efforts to provide any
information or documentation requested by the other Party in a manner that permits the other Party (or its Affiliates) to comply with
Tax Return filing deadlines or other applicable timing requirements.

 

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(b)           Any
information or documents provided under this Section 7.1 shall be kept confidential by the Party receiving the information
or documents, except as may otherwise be necessary in connection with the filing of Tax Returns or in connection with any Tax Contest.
Notwithstanding any other provision of this Agreement or any other agreement, (i) no Party or any of its Affiliates shall be required
to provide another Party or any Affiliate thereof or any other Person access to or copies of any information or procedures (including
the proceedings of any Tax Contest) other than information or procedures that reasonably relate to the Taxes (including any Taxes for
which the first Party is liable under this Agreement), business or assets of the first Party or any of its Affiliates or are necessary
to prepare Tax Returns for which the first Party is responsible for preparing the applicable Tax Return in accordance with the terms
of this Agreement and (ii) in no event shall any Party or its Affiliates be required to provide another Party, any of its Affiliates
or any other Person access to or copies of any information if such action could reasonably be expected to result in the waiver of any
Privilege. In addition, in the event that a Party determines that the provision of any information to another Party or any of its Affiliates
could be commercially detrimental, violate any Law or agreement or waive any Privilege, the first Party shall use reasonable best efforts
to permit compliance with its obligations under this Section 7.1 in a manner that avoids any such harm or consequence.

 

7.2           Return
Information. SpinCo and Parent acknowledge that time is of the essence in relation to any request for information, assistance or
cooperation made by Parent or SpinCo pursuant to Section 7.1 or this Section 7.2. Each Party shall provide to
the other Parties information and documents relating to its Group reasonably required by the other Parties to prepare Tax Returns. Any
information or documents a Party responsible for preparing a Tax Return in accordance with the terms of this Agreement requires to prepare
such Tax Returns shall be provided in such form as such Party reasonably requests and in sufficient time for such Party to prepare such
Tax Returns on a timely basis.

 

Article VIII
– RETENTION OF RECORDS; ACCESS

 

8.1           Retention
of Records. For so long as the contents thereof may become material in the administration of any matter under applicable Tax Law,
but in any event until the later of (i) sixty (60) days after the expiration of any applicable statutes of limitation (including
any waivers or extensions thereof) and (ii) twenty (20) years after the Distribution Date, the Parties shall retain records, documents,
accounting data and other information (including computer data) necessary for the preparation and filing of all Tax Returns (collectively,
 “Tax Records”) in respect of Taxes of any member of either the Parent Group or the SpinCo Group for any Pre-Distribution
Period or Post-Distribution Period or for any Tax Contests relating to such Tax Returns. At any time after the Distribution Date when
the Parent Group proposes to destroy any Tax Records, Parent shall first notify SpinCo in writing at least sixty (60) days prior to the
destruction of such Tax Records and the SpinCo Group shall be entitled to receive such records or documents proposed to be destroyed.
At any time after the Distribution Date when the SpinCo Group proposes to destroy any Tax Records, SpinCo shall first notify Parent in
writing at least sixty (60) days prior to the destruction of such Tax Records and the Parent Group shall be entitled to receive such
records or documents proposed to be destroyed. The Parties will notify each other in writing of any waivers or extensions of the applicable
statute of limitations that may affect the period for which the foregoing records or other documents must be retained.

 

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8.2           Access
to Tax Records. The Parties and their respective Affiliates shall make available to each other for inspection and copying during
normal business hours upon reasonable notice all Tax Records (including, for the avoidance of doubt, any pertinent underlying data accessed
or stored on any computer program or information technology system) in their possession and shall permit the other Party and its Affiliates,
authorized agents and representatives and any representative of a Taxing Authority or other Tax auditor direct access, during normal
business hours upon reasonable notice to any computer program or information technology system used to access or store any Tax Records,
in each case to the extent reasonably required by the other Party in connection with the preparation of Tax Returns or financial accounting
statements, audits, litigation or the resolution of items pursuant to this Agreement. The Party seeking access to the records of the
other Party shall bear all costs and expenses associated with such access, including any professional fees.

 

Article IX
– DISPUTE RESOLUTION

 

9.1           Tax
Disputes. Subject to Section 9.3, Section 9.4 and Section 9.5, this Section 9.1 shall
govern the resolution of any dispute between the Parties as to any matter covered by this Agreement that primarily relates to the interpretation
of Tax Law, as determined by Parent in its reasonable discretion (a “Tax Advisor Dispute”). The Party raising the
Tax Advisor Dispute shall give written notice of the Tax Advisor Dispute (a “Tax Advisor Dispute Notice”), and the
general counsels of the Parties (or such other individuals designated by the respective general counsels) and/or the executive officers
designated by the Parties shall negotiate for a reasonable period of time to settle such Tax Advisor Dispute; provided, that,
such reasonable period shall not, unless otherwise agreed by the Parties in writing, exceed thirty (30) days (the “Negotiation
Period”) from the time of receipt of the Tax Advisor Dispute Notice; provided, further, that (x) the Parties
shall not assert the defenses of statute of limitations, laches or any other defense, in each such case based on the passage of time
during the Negotiation Period, and (y) any contractual time period or deadline under this Agreement relating to such Tax Advisor
Dispute occurring after the Tax Advisor Dispute Notice is received shall not be deemed to have passed until the procedures described
in this Section 9.1 have been resolved. If the Tax Advisor Dispute has not been resolved for any reason after the Negotiation
Period, the Parties shall appoint a nationally recognized independent public accounting firm (the “Accounting Firm”)
to resolve such dispute. In the event that the Parties are unable to agree on an Accounting Firm, the accounting firm principally responsible
for auditing SpinCo’s financial statements in connection with its filings under the securities laws and the accounting firm principally
responsible for auditing Parent’s financial statements in connection with its filings under the securities laws shall agree on
and appoint the Accounting Firm. In this regard, the Accounting Firm shall make determinations with respect to the Tax Advisor Dispute
based solely on representations made by Parent, SpinCo and their respective representatives, and not by independent review, and shall
function only as an expert and not as an arbitrator and shall be required to make a determination in favor of one Party only. The Parties
shall require the Accounting Firm to resolve all Tax Advisor Disputes no later than thirty (30) days after the submission of such Tax
Advisor Dispute to the Accounting Firm, but in no event later than the Due Date of Taxes or the filing of the applicable Tax Return,
if applicable, and agree that all decisions by the Accounting Firm with respect thereto shall be final and conclusive and binding on
the Parties. The Accounting Firm shall resolve all Tax Advisor Dispute in a manner consistent with this Agreement and, to the extent
not inconsistent with this Agreement, in a manner consistent with the Past Practices of Parent and its Subsidiaries, except as otherwise
required by applicable Law. The Parties shall require the Accounting Firm to render all determinations in writing and to set forth, in
reasonable detail, the basis for such determination. The fees and expenses of the Accounting Firm shall be borne equally by the Parties,
and the parties agree to waive any objection to the naming of the Accounting Firm or the determination of the Accounting Firm based on
actual or alleged conflicts of interest.

 

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9.2           Legal
Disputes. Subject to Section 9.1, Section 9.3, Section 9.4 and Section 9.5, in the
event of any claim, controversy, demand or request for relief of any kind arising out of, in connection with, or in relation to the interpretation,
performance, nonperformance, validity or breach of this Agreement or otherwise arising out of or related to this Agreement (a “Dispute”),
then the Party raising the Dispute shall give written notice of the Dispute, and the Parties shall work together in good faith to resolve
any such Dispute within thirty (30) days of such notice. If any Dispute is not so resolved, then a senior executive of each Party shall,
in good faith, attempt to resolve any such Dispute within the following thirty (30) days of the referral of the matter to the senior
executives. If no resolution is reached with respect to any such Dispute, the Dispute shall be resolved in accordance with the procedures
contained in Section 11.03, Section 11.04 and Section 11.05 of the Separation Agreement.

 

9.3           Injunctive
Relief. Nothing in this Article IX shall prevent Parent from seeking injunctive relief to enforce the procedures provided
for in Section 9.1 if any delay resulting from the efforts to resolve the Tax Advisor Dispute through the Accounting Firm
could result in serious and irreparable injury to Parent. Notwithstanding anything to the contrary in this Agreement or the Separation
Agreement (or any Ancillary Agreement), Parent and SpinCo are the only members of their respective Groups entitled to commence a dispute
resolution procedure under this Agreement, and each of Parent and SpinCo will cause its respective Group members not to commence any
dispute resolution procedure other than through Parent or SpinCo, as applicable, as provided in this Article IX.

 

9.4           Specific
Performance. Notwithstanding anything to the contrary in this Agreement or the Separation Agreement (or any Ancillary Agreement),
in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of Section 4.1(b),
Section 4.2(a) or Section 4.2(b) by SpinCo, Parent shall have the right, without first pursuing the
procedures provided for in Section 9.1 and Section 9.2, to specific performance, declaratory relief and injunctive
or other equitable relief (on a permanent, emergency, temporary, preliminary or interim basis) of its rights under this Agreement, in
addition to any and all other rights and remedies at Law or in equity, and all such rights and remedies shall be cumulative. SpinCo shall
not oppose the granting of such relief on the basis that money damages are an adequate remedy. SpinCo agrees that the remedies at Law
for any breach or threatened breach hereof, including monetary damages, are inadequate compensation for any loss, and waives any defense
in any action by Parent for specific performance that a remedy at Law would be adequate. SpinCo also waives any requirements that Parent
secure or post any bond or similar security with respect to such remedy.

 

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9.5           Venue
for Injunctive Relief and Specific Performance Claims by Parent. Notwithstanding anything to the contrary in this Agreement or the
Separation Agreement (or any Ancillary Agreement), Parent may bring any claim for specific performance, declaratory relief and injunctive
or other equitable relief (on a permanent, emergency, temporary, preliminary or interim basis) under Section 9.3 or Section 9.4
of this Agreement (a “Chosen Court Claim”) either (a) pursuant to the procedures contained in Section 11.03,
Section 11.04 and Section 11.05 of the Separation Agreement or (b) at Parent’s sole discretion, in
the Delaware Court of Chancery (or, if the Delaware Court of Chancery shall be unavailable, any Delaware State court or the federal court
sitting in the State of Delaware) (the “Chosen Courts”).  SpinCo irrevocably consents and agrees, on behalf of
itself and each SpinCo Group member, to the jurisdiction, forum and venue of the Chosen Courts for a Chosen Court Claim, and agrees that
it shall not assert, and shall hereby waive, any claim or right or defense that it is not subject to the jurisdiction of the Chosen Courts,
that the venue is improper, that the forum is inconvenient, that the Chosen Court Claim should instead be arbitrated by agreement of
the Parent or operation of law, or any similar objection, claim or argument.

 

Article X
– MISCELLANEOUS PROVISIONS

 

10.1         Conflicting
Agreements. In the event and to the extent that there shall be a conflict between the provisions of this Agreement and the provisions
of the Separation Agreement, this Agreement shall control with respect to the subject matter thereof.

 

10.2         Interest
on Late Payments. With respect to any payment between the Parties pursuant to this Agreement not made by the due date set forth in
this Agreement for such payment, the outstanding amount will accrue interest at a rate per annum equal to the rate in effect for underpayments
under Section 6621 of the Code from such due date to and including the payment date.

 

10.3         Counterparts.
This Agreement may be executed in one or more counterparts, all of which counterparts shall be considered one and the same agreement.
This Agreement may be executed by facsimile or PDF signature and scanned and exchanged by electronic mail, and such facsimile or PDF
signature or scanned and exchanged copies shall constitute an original for all purposes.

 

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10.4         Successors.
This Agreement shall be binding on and inure to the benefit of any successor by merger, acquisition of assets or otherwise, to any of
the parties hereto, to the same extent as if such successor had been an original party to this Agreement.

 

10.5         Application
to Present and Future Subsidiaries. This Agreement is being entered into by Parent and SpinCo on behalf of themselves and the members
of their respective Group. This Agreement shall constitute a direct obligation of each such Party and shall be deemed to have been readopted
and affirmed on behalf of any entity that becomes a Subsidiary of Parent or SpinCo in the future.

 

10.6         Governing
Law. This Agreement and any disputes relating to, arising out of or resulting from this Agreement, including to its execution, performance,
or enforcement, shall be governed by and construed in accordance with, the Laws of the State of Delaware, regardless of the Laws that
might otherwise govern under applicable principles of conflicts of Laws thereof.

 

10.7         Assignability.
Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by
operation of Law or otherwise by either Party without the prior written consent of the other Party. Any purported assignment without
such consent shall be void. Subject to the preceding sentences, this Agreement will be binding upon, inure to the benefit of, and be
enforceable by, the Parties and their respective successors and assigns. Notwithstanding the foregoing, if any Party to this Agreement
(or any of its successors or permitted assigns) (a) shall enter into a consolidation or merger transaction in which such Party is
not the surviving entity and the surviving entity acquires or assumes all or substantially all of such Party’s assets or (b) shall
transfer all or substantially all of such Party’s assets to any Person, then, in each such case, the assigning Party (or its successors
or permitted assigns, as applicable) shall ensure that the assignee or successor-in-interest expressly assumes in writing all of the
obligations of the assigning Party under this Agreement, and the assigning Party shall not be required to seek consent, but shall provide
written notice and evidence of such assignment, assumption or succession to the non-assigning Party. No assignment permitted by this
Section 10.7 shall release the assigning Party from liability for the full performance of its obligations under this Agreement.

 

10.8         Further
Assurances. Subject to the provisions hereof, the Parties hereto shall make, execute, acknowledge and deliver, or cause to be made,
executed, acknowledged and delivered, such other instruments and documents, and take or do, or cause to be taken or done, all such other
actions and all things reasonably necessary, proper or advisable under applicable Laws and agreements to effectuate the provisions and
purposes of this Agreement and to consummate and make effective the transactions contemplated hereby.

 

10.9         Survival.
Notwithstanding anything to the contrary in this Agreement, all representations, covenants and obligations contained in this Agreement
shall survive until the expiration of the applicable statute of limitations with respect to any such matter (including extensions thereof).

 

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10.10       Severability.
If any provision of this Agreement or the application thereof to any Person or circumstance is determined by a court or arbitrator of
competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to
Persons or circumstances, or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in
full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner materially adverse to either Party. Upon any such determination, any
such provision, to the extent determined to be invalid, void or unenforceable, shall be deemed replaced by a provision that such court
determines is valid and enforceable and that comes closest to expressing the intention of the invalid, void or unenforceable provision.

 

10.11       Amendments.
No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by any Party, unless such waiver, amendment,
supplement or modification is in writing and signed by the authorized representative of each Party. Any decision by any Party to waive
or to not waive any provision of this Agreement is in such Party’s sole and absolute discretion.

 

10.12       Headings.
The article, section and paragraph headings contained in this Agreement, including in the table of contents of this Agreement, are for
reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

10.13       Waivers
of Default. No failure or delay of any Party (or the applicable member of its Group) in exercising any right or remedy under this
Agreement 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 right or power, or any course of conduct, preclude any other or further exercise thereof or
the exercise of any other right or power. Waiver by any Party of any default by the other Party of any provision of this Agreement shall
not be deemed a waiver by the waiving Party of any subsequent or other default.

 

10.14       Continuity
of Service and Performance. Unless otherwise agreed in writing, the Parties shall continue to provide services and honor all other
commitments under this Agreement during the course of dispute resolution pursuant to the provisions of Article IX with respect
to all matters not subject to such dispute resolution.

 

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10.15       Notices.
All notices or other communications under this Agreement shall be in writing and shall be deemed to be duly given (a) when delivered
in person, (b) on the date received, if sent by a nationally recognized delivery or courier service, (c) upon written confirmation
of receipt after transmittal by electronic mail or (d) upon the earlier of confirmed receipt or the fifth (5th) business day following
the date of mailing if sent by registered or certified mail, return receipt requested, postage prepaid and addressed as follows:

 

If to Parent, to:

 

International Business Machines Corporation

One New Orchard Road 

Armonk,
NY 10504

Attn: General Manager, Corporate Development and Strategy

 

with a copy to:

 

Paul,
Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019-6064

Attn:    Jeffrey B. Samuels

              Scott A. Barshay

              Steven J. Williams

              Laura C. Turano

Email:   jsamuels@paulweiss.com

              sbarshay@paulweiss.com

              swilliams@paulweiss.com

              lturano@paulweiss.com

 

If to SpinCo, to:

 

Kyndryl Holdings, Inc.

One Vanderbilt Avenue, 15th Floor

New York, NY 10017
 

 

Either Party may, by notice to the other Party, change the address
and identity of the Person to which such notices and copies of such notices are to be given. Each Party agrees that nothing in this Agreement
shall affect any other Party’s right to serve process in any other manner permitted by Law (including pursuant to the rules for
foreign service of process authorized by the Hague Convention).

 

10.16       Interpretation.
Words in the singular shall be held to include the plural and vice versa and words of one gender shall be held to include the other gender
as the context requires. The terms “hereof,” “herein,” “herewith” and words of similar import, unless
otherwise stated, shall be construed to refer to this Agreement as a whole (including all of the schedules hereto) and not to any particular
provision of this Agreement. Article, Section or Schedule references are to the articles, sections and schedules of or to this Agreement
unless otherwise specified. Any capitalized terms used in this Agreement but not otherwise defined therein shall have the meaning as
defined in the Separation Agreement. Any definition of or reference to any agreement, instrument or other document herein (including
any reference herein to this Agreement) shall, unless otherwise stated, be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements
or modifications set forth therein, including in Section 10.11). The word “including” and words of similar import
when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires or unless otherwise
specified. The word “or” shall not be exclusive. The word “extent” in the phrase “to the extent”
shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply “if.” All references
to “$” or dollar amounts are to the lawful currency of the United States of America. References herein to any Law shall be
deemed to refer to such law as amended, reenacted, supplemented or superseded in whole or in part and in effect from time to time and
also to all rules and regulations promulgated thereunder. In the event that an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring
or disfavoring either Party by virtue of the authorship of any provisions hereof.

 

10.17       Distribution
Date. This Agreement shall become effective only upon the Distribution Date.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

    30

     

    

 

IN WITNESS WHEREOF, the Parties have caused this
Tax Matters Agreement to be executed as of the date first noted above by their duly authorized representatives.

 

	 	INTERNATIONAL BUSINESS MACHINES CORPORATION
	 	 
	 	 	 
		By:	
	 	 	Name: 

                                            Title: 

 

 

	 	KYNDRYL HOLDINGS, INC.
	 	 
	 	 	 
		By:	
	 	 	Name: 

                                            Title:

 

[Tax Matters Agreement Signature Page]Exhibit 10.3

 

EMPLOYEE MATTERS AGREEMENT

 

 

 

 

By and Between

 

 

 

 

International
Business Machines Corporation

 

 

 

 

and

 

 

 

 

KYNDRYL HOLDINGS, INC.

 

 

 

 

Dated as of [●], 2021

 

     

     

    

 

TABLE OF CONTENTS

 

Page

 

	Article 1
	DEFINITIONS
	 
	Section 1.01.	Definitions	1
	 	 	 
	Article 2
	GENERAL PRINCIPLES
	 
	Section 2.01.	SpinCo Employees	8
	Section 2.02.	Prepositioning of Transferring Employees	9
	Section 2.03.	Delayed Transfer Employees	9
	Section 2.04.	Work Visas	9
	Section 2.05.	Employment of SpinCo Employees	9
	Section 2.06.	Individual Agreements	11
	Section 2.07.	Collectively Bargained Employees	11
	Section 2.08.	Collective Bargaining Agreements	11
	Section 2.09.	Liabilities Generally	12
	Section 2.10.	Benefit Plans	12
	Section 2.11.	Payroll Services	13
	Section 2.12.	No Change in Control	13
	Section 2.13.	Inadvertent Transfers	13
	Section 2.14.	Non-Solicit; No Hire	13
	Section 2.15.	Termination of SpinCo Employees	14
	 	 	 
	Article 3
	NON-EQUITY INCENTIVES
	 
	Section 3.01.	SpinCo Employee Incentives	14
	Section 3.02.	Retention Bonus Programs	14
	 	 	 
	Article 4
	SERVICE CREDIT
	 
	Section 4.01.	Parent Benefit Plans	15
	Section 4.02.	SpinCo Benefit Plans	15
	Section 4.03.	No Expansion of Participation	15
	 	 	 
	Article 5
	SEVERANCE
	 
	 
	Section 5.01.	Severance	16
	 	 	 
	Article 6
	WARN ACT
	 
	Section 6.01.	WARN Act	16

 

    i

     

    

 

	Article 7
	CERTAIN WELFARE BENEFIT PLAN MATTERS;
	WORKERS’ COMPENSATION CLAIMS
	 
	Section 7.01.	SpinCo Welfare Plans	16
	Section 7.02.	Allocation of Welfare Benefit Claims	16
	Section 7.03.	6055/6056 Reporting	17
	Section 7.04.	Credit for Benefits	17
	Section 7.05.	Workers’ Compensation Claims	17
	Section 7.06.	COBRA	18
	Section 7.07.	Flexible Spending Accounts	18
	Section 7.08.	Continuation of Elections	18
	Section 7.09.	Post-Retirement Health and Life Insurance	19
	 	 	 
	Article 8
	LONG-TERM DISABILITY EMPLOYEES
	 
	Section 8.01.	SpinCo LTD Employees	19
	Section 8.02.	Retained LTD Employees	19
	Section 8.03.	Return to Work	19
	 	 	 
	Article 9
	DEFINED BENEFIT PENSION PLANs
	 
	Section 9.01.	U.S. Pension Plans	20
	Section 9.02.	Non-U.S. Pension Plans	20
	 	 	 
	Article 10
	DEFINED CONTRIBUTION PLANS
	 
	Section 10.01.	SpinCo 401(k) Plan	24
	Section 10.02.	401(k) Plan Rollovers	24
	Section 10.03.	Employer 401(k) Plan Contributions	25
	Section 10.04.	Limitation of Liability	25
	Section 10.05.	Non-U.S. Defined Contribution Plans	25
	 	 	 
	Article 11
	NONQUALIFIED DEFERRED COMPENSATION
	 
	Section 11.01.	SpinCo Nonqualified Deferred Compensation Plans	26
	Section 11.02.	No Transfer of Assets	26
	Section 11.03.	Employer Nonqualified Deferred Compensation Plan Contributions	26
	Section 11.04.	Limitation of Liability	27
	 	 	 
	Article 12
	ACCRUED LEAVE
	 
	Section 12.01.	Vacation, Holidays, Annual Leave and Other Leaves	27

 

    ii

     

    

 

	Article 13
	EQUITY COMPENSATION
	 
	Section 13.01.	SpinCo Equity Incentive Plan	27
	Section 13.02.	Treatment of Outstanding Parent Equity Awards	27
	Section 13.03.	Parent ESPP	30
	Section 13.04.	Tax Reporting and Withholding for Equity-Based Awards	30
	Section 13.05.	Parent and SpinCo Income Tax Deductions in Respect of Certain Equity Awards and Compensation	30
	Section 13.06.	Compliance	30
	 	 	 
	Article 14
	NON-U.S. EMPLOYEES
	 
	Section 14.01.	Treatment of Non-U.S. Employees	31
	Article 15
	COOPERATION; ACCESS TO INFORMATION; LITIGATION; CONFIDENTIALITY
	 
	Section 15.01.	Cooperation	31
	Section 15.02.	Access to Information; Privilege; Confidentiality	31
	 	 	 
	Article 16
	TERMINATION
	 
	Section 16.01.	Termination	31
	Section 16.02.	Effect of Termination	32
	Article 17
	MISCELLANEOUS
	 
	Section 17.01.	Incorporation of Indemnification Provisions of Separation Agreement	32
	Section 17.02.	Additional Indemnification	32
	Section 17.03.	Further Assurances	32
	Section 17.04.	Administration	32
	Section 17.05.	Third-Party Beneficiaries	32
	Section 17.06.	Employment Tax Reporting Responsibility	33
	Section 17.07.	Data Privacy	33
	Section 17.08.	Section 409A	33
	Section 17.09.	Confidentiality	33
	Section 17.10.	Employment Records	33
	Section 17.11.	Additional Provisions	33

 

    iii

     

    

 

SCHEDULES

 

	Schedule 1.01	 	 	Certain Definitions
	Schedule 1.01(a)	 	 	List of Certain SpinCo Employees
	Schedule 1.01(b)	 	 	List of Certain Parent Employees
	Schedule 9.02	 	 	Defined Benefit Pension Plan Schedule

 

    iv

     

    

 

EMPLOYEE MATTERS AGREEMENT (this “Agreement”),
dated as of [●], 2021, by and between International Business Machines Corporation, a New York corporation (“Parent”),
and Kyndryl Holdings, Inc., a Delaware corporation (“SpinCo” and, together with Parent, the “Parties”).

 

R E C I T A L S:

 

WHEREAS, the Parties have entered into the Separation
and Distribution Agreement (the “Separation Agreement”), dated as of [●], 2021, pursuant to which Parent intends
to effect the Distribution; and

 

WHEREAS, the Parties wish to set forth their agreements
as to certain matters regarding employment, compensation and employee benefits.

 

NOW, THEREFORE, in consideration of the mutual agreements,
provisions and covenants contained in this Agreement, the Parties, intending to be legally bound, hereby agree as follows:

 

Article 1

DEFINITIONS

 

Section 1.01.        Definitions.
For purposes of this Agreement, the following terms shall have the following meanings. All capitalized terms used but not defined herein
shall have the meanings assigned to them in the Separation Agreement unless otherwise indicated.

 

“Aggregate Pre-Transfer Date Contributions”
has the meaning set forth in Section 7.07.

 

“Aggregate Pre-Transfer Date Disbursements”
has the meaning set forth in Section 7.07.

 

“Applicable 401(k) Date”
has the meaning set forth in Section 10.01.

 

“Automatic Transfer Employees”
means those Transferring Employees whose employment transfers by operation of Law (including the Transfer Regulations) in connection with
the transfer of a business or part of a business.

 

“Benefit Plan” means any plan,
program, policy, agreement, arrangement or understanding that is an employment, consulting, deferred compensation, executive compensation,
incentive bonus or other bonus, employee pension, profit sharing, savings, retirement, supplemental retirement, stock option, stock purchase,
stock appreciation right, restricted stock, restricted stock unit, deferred stock unit, other equity-based compensation, severance pay,
retention, change in control, salary continuation, life, death benefit, health, hospitalization, workers’ compensation, sick leave,
vacation pay, disability or accident insurance or other employee compensation or benefit plan, program, policy, agreement, arrangement
or understanding, including any “employee benefit plan” (as defined in Section 3(3) of ERISA, whether or not subject
to ERISA), sponsored or maintained by an entity or to which such entity is a party.

 

     

     

    

 

“Blue Sky Employee” means any
individual who is or was employed by, or provides or provided services to, Modis or any of its Affiliates, and who has applied for reinstatement
in his or her jobs with the Parent Group, and which claims are still pending as of the Local Transfer Date.

 

“Closing Plan Year” means the
calendar year in which the Distribution occurs.

 

“COBRA” means the U.S. Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended from time to time, and any applicable similar state or local Laws.

 

“Code” means the U.S. Internal
Revenue Code of 1986, as amended.

 

“Collective Bargaining Agreements”
has the meaning set forth in Section 2.07.

 

“Continuing Retiree Medical Jurisdictions”
means Argentina, Austria, Belgium, Portugal, Taiwan and Turkey.

 

“Delayed Transfer Date” has the
meaning set forth in Section 2.03.

 

“Delayed Transfer Employee” means
any Transferring Employee whose employment cannot transfer to Parent or SpinCo or their Subsidiaries as of the Local Transfer Date, whether
due to (a) legal or regulatory requirements, (b) the timing for obtaining the relevant consent or release in order to transfer
a SpinCo Contract to SpinCo in accordance with the Separation Agreement if SpinCo is prohibited from performing the services associated
with such SpinCo Contract prior to the transfer of such contract, (c) the need to obtain any required approval from any works council
or other labor authority or Governmental Authority prior to transferring the employment of such Transferring Employee, (d) providing
services to the SpinCo Group under the TSA and whose employment is intended by Parent to transfer to the SpinCo Group following the completion
of the applicable TSA service, (e) providing services to the Parent Group under the TSA and whose employment is intended by Parent
to transfer to the Parent Group following the completion of the applicable TSA service, and with respect to such Delayed Transfer Employees
described in clauses (d) and (e), the Parties shall use commercially reasonable efforts to ensure that such Delayed Transfer Employees
become employed by the Destination Employer as soon as practicable following the completion of the applicable TSA service or (f) such
other circumstance as Parent and SpinCo shall mutually agree.

 

“Destination Employer” means,
with respect to a Transferring Employee, (a) a member of the SpinCo Group or (b) a member of the Parent Group, in either case,
to which such Transferring Employee transfers as of the Local Transfer Date or Delayed Transfer Date.

 

“Eligible Retiree Medical Employees”
means, with respect to each relevant jurisdiction other than the Continuing Retiree Medical Jurisdictions, each SpinCo Employee who, immediately
prior to the Local Transfer Date, is eligible to participate in Parent’s post-retirement health and life insurance plans and has
satisfied the eligibility criteria to receive benefits under such plans as in effect on the Local Transfer Date and, with respect to SpinCo
Employees located in the United States, any such individual who, as of the Local Transfer Date, is eligible for the “Bridge Leave
Program” under Parent’s Personal Pension Plan, completes a bridge to retirement under such program and, on or before the last
date of such bridge to retirement, satisfies the eligibility criteria to receive benefits under Parent’s U.S. post-retirement health
and life insurance plans.

 

    2 

     

    

 

“Employment Taxes” means all fees,
Taxes, social insurance payments and similar contributions to a Governmental Authority or a fund of a Governmental Authority with respect
to wages or other compensation of an employee or other service provider.

 

“ERISA” means the U.S. Employee
Retirement Income Security Act of 1974, as amended from time to time.

 

“Former Parent Employee” means
a former employee of any member of the Parent Group or the SpinCo Group, any of their respective members or any of their respective predecessors,
in each case, prior to the Local Transfer Date, who is not a Former SpinCo Employee.

 

“Former SpinCo Employee” means
each individual who (a) as of the Local Transfer Date, is not employed by any member of the Parent Group or the SpinCo Group, any
of their respective members or any of their respective predecessors, and (b) as of immediately prior to such individual’s termination
of employment, (x) was employed by a member of the SpinCo Group or (y) would have been a SpinCo Employee pursuant to clause
(a), (b) or (c) of the definition of SpinCo Employee, or as otherwise reasonably determined by Parent.

 

“Insured Transferee Defined Benefit Plan”
means a defined benefit pension plan sponsored or maintained by the SpinCo Group that is assuming Liabilities that relate to benefits
accrued prior to the applicable Non-U.S. DB Transfer Date by SpinCo Employees under an Insured Transferor Defined Benefit Plan.

 

“Insured Transferor Defined Benefit Plan”
means any defined benefit pension plan sponsored or maintained by the Parent Group for the benefit of employees principally employed in
the jurisdictions designated as such on Schedule 9.02.

 

“Local Agreement” means an agreement
describing the implementation of the matters described in this Agreement (including, without limitation, matters regarding employment,
compensation and employee benefits) with respect to Parent Employees, Former Parent Employees, SpinCo Employees and Former SpinCo Employees
in a specified jurisdiction in accordance with applicable Law in the custom of the applicable jurisdiction.

 

“Local Transfer Date” means, as
applicable, the earliest of (a) the applicable scheduled “transfer of employment” (or ToE) date on which transfers of
employment occurred for the SpinCo Employees in the applicable jurisdiction, (b) the date prior to the Distribution Date on which
an individual became a SpinCo Employee and (c) the date with respect to a SpinCo Employee otherwise determined by Parent. For the
avoidance of doubt, the Local Transfer Date may not be the same for every SpinCo Employee located in a single jurisdiction.

 

“Non-Transferor Defined Benefit Plan”
means any defined benefit pension plan of the Parent Group maintained for employees who are principally employed outside the United States
and that is not an Insured Transferor Defined Benefit Plan, Subsidiary Defined Benefit Plan, Transferor Defined Benefit Plan or Unfunded
Transferor Defined Benefit Plan.

 

“Non-U.S. DB Transfer Date” means
the Local Transfer Date or such other date as agreed to between Parent and SpinCo, which need not be the same for each plan; provided
that, except with respect to any Transferor Defined Benefit Plan in Germany and the Netherlands, the Non-U.S. DB Transfer Date shall not
occur later than the first anniversary of the Distribution Date.

 

    3 

     

    

 

“Non-U.S. DC Plan” has the meaning
set forth in Section 10.05.

 

“Non-U.S. Employees” has the meaning
set forth in Section 14.01.

 

“Offering Period” has the meaning
set forth in the Parent ESPP.

 

“Parent 401(k) Plan” has
the meaning set forth in Section 10.01.

 

“Parent Benefit Plan” means any
Benefit Plan sponsored, maintained or, unless such Benefit Plan is exclusively sponsored or maintained by a member of the SpinCo Group,
contributed to by any member of the Parent Group or to which any member of the Parent Group is a party.

 

“Parent Compensation Committee”
means the Executive Compensation and Management Resources Committee of Parent or such other committee designated by the Parent Board to
administer the Parent Equity Plans.

 

“Parent Employee” means (a) each
individual who is an employee of any member of the Parent Group as of immediately prior to or on the Local Transfer Date, including any
such individual who is not actively at work due to a leave of absence (including vacation, holiday, illness, injury and short-term and
long-term disability) from which such employee is permitted to return to active employment in accordance with the Parent Group’s
personnel policies, as in effect from time to time, or applicable Law, (b) each individual who becomes an active employee of any
member of the Parent Group following the Local Transfer Date but, in each case of clauses (a) and (b), excluding any SpinCo Employee
or Former SpinCo Employee, and (c) each individual who is intended by Parent to be a Parent Employee.

 

“Parent Equity Award Ratio” means
the quotient obtained by dividing (a) the Parent Pre-Separation Stock Value by (b) the Parent Post-Separation Stock Value, carried
out to six decimal places.

 

“Parent Equity Awards” means the
Parent Options, Parent Restricted Stock Units and Parent Performance Share Units.

 

“Parent Equity Plans” means the
Parent 1997 Long-Term Performance Plan, the Parent 1999 Long-Term Performance Plan, the Parent 2001 Long-Term Performance Plan, the Parent
PWCC Acquisition Long-Term Performance Plan and the Parent Red Hat Acquisition Long-Term Performance Plan, each as amended from time to
time, and any other stock option or stock incentive compensation plan or arrangement, including any equity award agreement, that is a
Parent Benefit Plan or is a plan of an entity acquired by Parent, in each case, as in effect as of the time relevant to the applicable
provision of this Agreement.

 

“Parent ESPP” means the Parent
2014 Employees Stock Purchase Plan.

 

“Parent Individual Agreement”
means any individual (a) employment contract or offer letter, (b) retention, severance or change in control agreement, (c) expatriate
(including any international assignee) contract or agreement (including agreements and obligations regarding repatriation, relocation
or equalization of Taxes and living standards in the host country) or (d) other agreement containing restrictive covenants (including
confidentiality, non-competition and non-solicitation provisions) between a member of a Group, on the one hand, and (i) a Parent
Employee or (ii) a Former Parent Employee, on the other hand, as in effect immediately prior to the Local Transfer Date.

 

    4 

     

    

 

“Parent LTD Plan” means any long-term
disability insurance plan that is a Parent Benefit Plan.

 

“Parent Nonqualified Deferred Compensation
Plans” means the Amended and Restated Parent Excess 401(k) Plus Plan (f/k/a the Parent Executive Deferred Compensation
Plan) and the Deferred Compensation and Equity Award Plan, each as amended from time to time, and any other nonqualified deferred compensation
plan or arrangement (including individual arrangements) that is a Parent Benefit Plan, as in effect as of the time relevant to the applicable
provision of this Agreement.

 

“Parent Option” means an option
to purchase Parent Common Stock that is outstanding as of immediately prior to the Distribution under any of the Parent Equity Plans.

 

“Parent Performance Share Unit”
means a performance share unit award relating to Parent Common Stock that is outstanding as of immediately prior to the Distribution under
any of the Parent Equity Plans.

 

“Parent Post-Separation Stock Value”
means the opening per share price of Parent Common Stock on the New York Stock Exchange on the first trading day that occurs immediately
following the Distribution Date.

 

“Parent Pre-Separation Stock Value”
means the closing per share price of Parent Common Stock trading “regular way with due bills” on the New York Stock Exchange
on the last trading day that occurs on or prior to the Distribution Date.

 

“Parent Reverse Transfer Defined Benefit
Plan” means a defined benefit pension plan sponsored or maintained by the Parent Group that is assuming Liabilities that relate
to benefits accrued prior to the applicable Subsidiary DB Transfer Date under a Reverse Transfer Defined Benefit Plan.

 

“Parent Reimbursement Account Plan”
has the meaning set forth in Section 7.07.

 

“Parent Restricted Stock Award”
means a restricted stock award relating to Parent Common Stock that is outstanding as of immediately prior to the Distribution under any
of the Parent Equity Plans.

 

“Parent Restricted Stock Unit”
means a restricted stock unit or retention restricted stock unit award relating to Parent Common Stock that is outstanding as of immediately
prior to the Distribution under any of the Parent Equity Plans.

 

“Parent U.S. Pension Plan” has
the meaning set forth in Section 9.01.

 

“Parent Welfare Plan” means each
Welfare Plan that is a Parent Benefit Plan.

 

“Participating Transferor Defined Benefit
Plans” means any Transferor Defined Benefit Plan in the jurisdictions designated as such on Schedule 9.02.

 

    5 

     

    

 

“Pension Asset Transfer Date”
has the meaning set forth in Section 9.02(c)(i).

 

“Performance Share Unit Conversion Amount”
means the number of shares of Parent Common Stock to which a Parent Performance Share Unit relates immediately prior to the Distribution
Date assuming (i) for Parent Performance Share Units related to performance periods that began prior to January 1, 2021, actual
achievement of the relevant performance goals as of immediately prior to the Distribution as determined by the Parent Compensation Committee,
or (ii) for Parent Performance Share Units related to the 2021 to 2023 performance period, target-level achievement of the relevant
performance goals.

 

“Pre-Transfer Service” has the
meaning set forth in Section 4.02.

 

“Retained LTD Employee” means
each applicable employee of the SpinCo Group who is identified by Parent as a Retained LTD Employee, in a Local Agreement or otherwise.

 

“Retention Bonus Programs” means
retention bonus programs for the benefit of SpinCo Employees, including any individual agreement entered into with any SpinCo Employee.

 

“Reverse Transfer Defined Benefit Plan”
means any Subsidiary Defined Benefit Plan designated as such on Schedule 9.02.

 

“Specified Period” shall mean
the period set forth on Schedule 1.01.

 

“SpinCo 401(k) Plan” has
the meaning set forth in Section 10.01.

 

“SpinCo Award Agreement” has the
meaning set forth in Section 13.01.

 

“SpinCo Benefit Plan” means any
Benefit Plan sponsored, maintained or, unless such Benefit Plan is exclusively sponsored or maintained by a member of the Parent Group,
contributed to by any member of the SpinCo Group or to which any member of the SpinCo Group is a party.

 

“SpinCo Employee” means (a) each
individual who is an employee of any member of the SpinCo Group as of immediately prior to or on the Local Transfer Date, including any
individual who is not actively at work due to a leave of absence (including vacation, holiday, illness, injury and short-term disability,
and any SpinCo LTD Employee, but excluding any Retained LTD Employee) from which such employee is permitted to return to active employment
in accordance with the Parent Group’s or SpinCo Group’s personnel policies, as in effect from time to time, or applicable
Law, (b) each individual who becomes an active employee of the SpinCo Group following the Local Transfer Date but, in each case of
clauses (a) and (b), excluding any Former SpinCo Employee, (c) each individual listed on Schedule 1.01(a) or listed
in a Local Agreement as a SpinCo Employee and (d) each individual who is intended by Parent to be a SpinCo Employee; provided,
however, that, unless otherwise required by applicable Law, each individual listed on Schedule 1.01(b) or listed in
a Local Agreement as a Parent Employee shall be a Parent Employee for all purposes of this Agreement.

 

“SpinCo Equity Award Ratio” means
the quotient obtained by dividing (a) the Parent Pre-Separation Stock Value by (b) the SpinCo Stock Value, carried out to six
decimal places.

 

“SpinCo Equity Incentive Plan”
has the meaning set forth in Section 13.01.

 

    6 

     

    

 

“SpinCo Incentive Payments” has
the meaning set forth in Section 3.01.

 

“SpinCo Individual Agreement”
means any individual (a) employment contract or offer letter, (b) retention, severance or change in control agreement, (c) expatriate
(including any international assignee) contract or agreement (including agreements and obligations regarding repatriation, relocation
or equalization of Taxes and living standards in the host country) or (d) other agreement containing restrictive covenants (including
confidentiality, non-competition and non-solicitation provisions) between a member of a Group, on the one hand, and (i) a SpinCo
Employee or (ii) a Former SpinCo Employee, on the other hand, in each case, as in effect immediately prior to the Distribution Date.

 

“SpinCo LTD Employee” means each
applicable employee of the SpinCo Group who, as of immediately prior to the Local Transfer Date, is receiving long-term disability benefits
under the Parent LTD Plan and who is not a Retained LTD Employee.

 

“SpinCo Nonqualified Deferred Compensation
Plans” has the meaning set forth in Section 11.01.

 

“SpinCo Option” means an option
to purchase SpinCo Common Stock.

 

“SpinCo Reimbursement Account Plan”
has the meaning set forth in Section 7.07.

 

“SpinCo Restricted Stock Award”
means a restricted stock award relating to SpinCo Common Stock.

 

“SpinCo Restricted Stock Unit”
means a restricted stock unit or retention restricted stock award relating to SpinCo Common Stock.

 

“SpinCo Retiree Medical Plans”
has the meaning set forth in Section 7.09.

 

“SpinCo Stock Value” means the
opening per share price of SpinCo Common Stock on the New York Stock Exchange on the first trading day that occurs immediately following
the Distribution Date.

 

“SpinCo Welfare Plans” has the
meaning set forth in Section 7.01.

 

“Subsidiary DB Transfer
Date” has the meaning set forth in Section 9.02(b)(i).

 

“Subsidiary Defined
Benefit Plan” means any defined benefit pension plan sponsored or maintained solely by the subsidiaries designated as such on
Schedule 9.02.

 

“Taxes” shall have the meaning
set forth in the Tax Matters Agreement dated as of the date of this Agreement by and between Parent and SpinCo.

 

“Transfer Regulations” means the
European Council Directive of March 12, 2001 (2001/23/EC), relating to the safeguarding of employees’ rights in the event of
transfers of undertakings, businesses or parts of businesses and any legislation implementing such Directive, or any other similar Law
where there are SpinCo Employees.

 

    7 

     

    

 

“Transferee Defined Benefit Plan”
means a defined benefit pension plan sponsored or maintained by the SpinCo Group that is assuming Liabilities that relate to benefits
accrued prior to the applicable Non-U.S. DB Transfer Date by SpinCo Employees under a Transferor Defined Benefit Plan.

 

“Transferor Defined Benefit Plan”
means any defined benefit pension plan sponsored or maintained by the Parent Group for the benefit of employees principally employed in
the jurisdictions designated as such on Schedule 9.02.

 

“Transferring Employee” means
(a) each SpinCo Employee who transfers to a member of the SpinCo Group and (b) each Parent Employee who transfers to a member
of the Parent Group.

 

“TSA” means the Transition Services
Agreement dated as of the date of this Agreement by and between Parent and SpinCo.

 

“Unfunded Transferee Defined Benefit Plan”
means a defined benefit pension plan sponsored or maintained by the SpinCo Group that is assuming Liabilities that relate to benefits
accrued prior to the applicable Non-U.S. DB Transfer Date by SpinCo Employees under an Unfunded Transferor Defined Benefit Plan.

 

“Unfunded Transferor Defined Benefit Plan”
means any defined benefit pension plan sponsored or maintained by the Parent Group for the benefit of SpinCo Employees principally employed
in the jurisdictions designated as such on Schedule 9.02.

 

“U.S. GAAP” means United States
generally accepted accounting principles.

 

“WARN Act” means the Worker Adjustment
and Retraining Notification Act of 1988, as amended, and any applicable similar state or local Laws.

 

“Welfare Plan” means each Benefit
Plan that provides life insurance, health care, dental care, accidental death and dismemberment insurance, disability, severance, vacation
or other group welfare or fringe benefits.

 

“Welfare Plan Date” has the meaning
set forth in Section 7.01.

 

“Workers’ Compensation Claim Date”
has the meaning set forth in Section 7.03.

 

“Workers’ Compensation Event”
means the event, injury, illness or condition giving rise to a workers’ compensation claim with respect to a SpinCo Employee or
Former SpinCo Employee.

 

Article 2

GENERAL PRINCIPLES

 

Section 2.01.        SpinCo
Employees. Except as provided in Section 2.03, all SpinCo Employees shall continue to be employees of the SpinCo Group
immediately following the Local Transfer Date. Except as required by applicable Law, the Parties agree that none of the transactions contemplated
by the Separation Agreement or any of the Ancillary Agreements, including this Agreement, shall cause any SpinCo Employee or Former SpinCo
Employee to be deemed to have incurred an involuntary termination of employment or to be eligible to receive severance benefits solely
as a result of the transfers of employment contemplated by this Agreement or the Distribution.

 

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Section 2.02.        Prepositioning
of Transferring Employees. Effective no later than the Local Transfer Date or Delayed Transfer Date, and except as otherwise agreed
by the Parties or as provided in Section 2.03, the applicable members of the SpinCo Group and the Parent Group shall have
taken such actions as are necessary to ensure that (i) each SpinCo Employee is employed by a member of the SpinCo Group and (ii) each
Parent Employee is employed by a member of the Parent Group. Each of the Parties agrees to execute, and to seek to have the applicable
employees execute, such documentation, if any, as may be necessary to reflect such assignment and/or transfer.

 

Section 2.03.        Delayed
Transfer Employees. With respect to each Delayed Transfer Employee, the Parties shall use commercially reasonable efforts to ensure
that (a) such Delayed Transfer Employee becomes employed by the Destination Employer at the earliest time permitted by the applicable
transfer restriction (the “Delayed Transfer Date”) and (b) the Destination Employer receives the benefit of such
Delayed Transfer Employee’s services from and after the Local Transfer Date, including under the TSA or by entering into an employee
leasing or similar arrangement. From and after the commencement of a Delayed Transfer Employee’s employment with the Destination
Employer, such Delayed Transfer Employee shall be treated for all purposes of this Agreement, including Section 4.02, as if
such Delayed Transfer Employee commenced employment with the Destination Employer as of the Local Transfer Date as contemplated by Section 2.01.
Notwithstanding the foregoing, the Destination Employer shall reimburse the other Party and its Subsidiaries and Affiliates for any Liabilities
of such other Party and its Subsidiaries and Affiliates arising with respect to the Delayed Transfer Employees.

 

Section 2.04.        Work
Visas. If any SpinCo Employee requires a visa, work permit, employment pass or other approval for his or her employment with the Destination
Employer, the Parties shall use commercially reasonable efforts to see that any necessary visa, permit, employment pass or other approval
has been obtained on or prior to the Local Transfer Date or Delayed Transfer Date.

 

Section 2.05.        Employment
of SpinCo Employees.

 

(a)          Effective
upon the Local Transfer Date or Delayed Transfer Date, as applicable, SpinCo agrees that it shall, or shall cause the applicable member
of the SpinCo Group to, until the end of the Specified Period, employ each SpinCo Employee (i) in an equivalent position (including,
without limitation, in terms of job duties and functions as well as status as a regular employee or fixed-term hire), (ii) at a location
that is within a reasonable proximity (i.e., no more than forty (40) miles) to the location worked at prior to the Local Transfer
Date or Delayed Transfer Date or, in the case of a SpinCo Employee who works remotely, SpinCo shall provide such resources as will enable
such individual to maintain such arrangement, (iii) at the same or higher base salary and eligibility for the same or higher additional
earnings opportunity (i.e., variable pay/bonus and/or commissions and/or equity and equity-based compensation) and (iv) with other
benefit plans and arrangements (including medical, dental, life insurance, post-retirement health and life insurance, disability, a separation
practice or policy and other welfare benefits and qualified and nonqualified retirement plans) or the cash equivalent, that are comparable
in the aggregate to those provided to such SpinCo Employee by Parent or any member of the Parent Group on the Local Transfer Date or Delayed
Transfer Date. If SpinCo and Parent dispute any matter under this Agreement, and any such dispute is not resolved to the satisfaction
of SpinCo and Parent within five (5) days of notification of the dispute by one Party to the other Party, a vice president (or higher-level
executive) of each Party shall endeavor to resolve the dispute during the five (5)-day period that follows the end of such five (5)-day
period. If any such dispute remains unresolved at the end of such subsequent five (5)-day period, either Party may elect to have the terms
submitted for arbitration by an independent consultant or actuary mutually acceptable to SpinCo and Parent to determine whether the terms
are satisfied. The determination of such consultant or actuary shall be conclusive, final and binding and have the force and effect of
an arbitral award. The fees and expenses of such independent consultant or actuary shall be shared equally by the Parties.

 

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(b)          Automatic
Transfer Employees shall not be terminated upon the Local Transfer Date or Delayed Transfer Date, as applicable; rather, such employees
and the rights, powers, duties, liabilities and obligations of the current employer with respect to such employees in respect of the terms
of employment with the employees in force immediately before the Local Transfer Date or Delayed Transfer Date, as applicable, shall be
transferred to the applicable member of the SpinCo Group but only to the extent required by, and only then in accordance with, applicable
Law. To the extent required by the Transfer Regulations and applicable Law, SpinCo shall maintain for a period, if any, not less than
that provided for by applicable Law the same terms and conditions of employment that relate to the SpinCo Employees as of immediately
prior to the Local Transfer Date or Delayed Transfer Date; provided, however, that if the period required by applicable
Law for any such SpinCo Employee expires prior to the expiration of the period provided for in Section 2.05(a), then SpinCo
shall, and shall cause the SpinCo Group to, comply with this Section 2.05(b) for a period commencing on the expiration
of the period required by applicable Law and ending on the expiration of the period required under Section 2.05(a).

 

(c)           In
addition to the provisions set forth in Section 2.05(a) and (b), with respect to the SpinCo Employees who are
not subject to a mandatory transfer in accordance with the Transfer Regulations and whose employment will not automatically continue with
the SpinCo Group after the Local Transfer Date or Delayed Transfer Date or otherwise in connection with the Separation Agreement and Ancillary
Agreements, except as specifically provided in the applicable Local Agreement, the applicable member of the SpinCo Group shall offer employment
to, or continue the employment of, such SpinCo Employees as of the Local Transfer Date or Delayed Transfer Date under their previous terms
and conditions of employment (except for their physical work location), but only to the extent that (i) such SpinCo Employees are
located in a jurisdiction in which the Transfer Regulations are applicable and (ii) such terms and conditions of employment are required
to be provided pursuant to the Transfer Regulations to SpinCo Employees in such jurisdiction whose employment contracts are subject to
transfer pursuant to the Transfer Regulations.

 

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Section 2.06.        Individual
Agreements. Effective as of no later than the Local Transfer Date or Delayed Transfer Date, SpinCo and Parent, as applicable, shall
assign, or cause an applicable member of the respective Parent Group or SpinCo Group to assign, (a) the SpinCo Individual Agreements
to a member of the SpinCo Group and SpinCo shall agree, or cause an applicable member of the SpinCo Group to agree, to accept and be bound
by the provisions of the SpinCo Individual Agreements and (b) the Parent Individual Agreements to a member of the Parent Group and
Parent shall agree or cause an applicable member of the Parent Group to accept and be bound by the provisions of the Parent Individual
Agreements; provided, however, that to the extent that assignment of any such agreement is not permitted by the terms of
such agreement or by applicable Law, effective as of the Local Transfer Date or Delayed Transfer Date, each member of the SpinCo Group
(in the case of each SpinCo Individual Agreement) or the Parent Group (in the case of each Parent Individual Agreement) shall be considered
to be a successor to each member of the SpinCo Group or Parent Group, as applicable, for purposes of, and a third-party beneficiary with
respect to, such agreement, such that each member of the SpinCo Group or Parent Group, as applicable, shall enjoy all of the rights and
benefits under such agreement (including rights and benefits as a third-party beneficiary) as well as assume the potential associated
liabilities, with respect to the business operations of the SpinCo Group or Parent Group, as applicable; provided, further,
that in no event shall any Party be permitted to enforce (i) any SpinCo Individual Agreement (including any agreement containing
non-competition or non-solicitation covenants) against a SpinCo Employee for action taken in such individual’s capacity as a SpinCo
Employee other than on behalf of the SpinCo Group as requested by the SpinCo Group in its capacity as a third-party beneficiary and (ii) any
Parent Individual Agreement (including any agreement containing non-competition or non-solicitation covenants) against a Parent Employee
for action taken in such individual’s capacity as a Parent Employee other than on behalf of the Parent Group as requested by the
Parent Group in its capacity as a third-party beneficiary; provided, further, that with respect to any SpinCo Employee or
Former SpinCo Employee who was employed by a member of the Parent Group within twenty-four (24) months prior to the Distribution Date,
Parent shall retain the right to enforce, and shall be a third-party beneficiary with respect to, any non-competition covenant as applied
to the business of the Parent Group contained in any SpinCo Individual Agreement against such SpinCo Employee for a period of twenty-four
(24) months after the Distribution Date.

 

Section 2.07.        Collectively
Bargained Employees. All provisions contained in this Agreement providing for the treatment of compensation and benefits in connection
with the Distribution shall apply equally to each employee who is covered by a collective bargaining, works council or other labor union
agreement, contract or labor arrangement (collectively, “Collective Bargaining Agreements”), except to the extent that
any such agreement specifically provides for the terms, conditions, compensation or benefits contemplated by such provision and, in each
such case, such agreement shall apply rather than the terms of this Agreement.

 

Section 2.08.        Collective
Bargaining Agreements. As of the Local Transfer Date, SpinCo shall, and shall cause the members of the SpinCo Group, as appropriate,
to (a) adopt and assume each Collective Bargaining Agreement covering any of the SpinCo Employees in such jurisdiction immediately
prior to the Local Transfer Date, subject to any agreed-upon changes required by the transition of such Collective Bargaining Agreement
to the applicable member of the SpinCo Group or by applicable Law, (b) unless otherwise provided in this Agreement, assume and honor
any obligations of the Parent Group under any Collective Bargaining Agreements as such obligations relate to SpinCo Employees and Former
SpinCo Employees and (c) recognize the works councils, labor unions and other employee representatives that are parties to such Collective
Bargaining Agreements, and the Parent Group shall have no further liability thereunder with respect to the SpinCo Employees and Former
SpinCo Employees; provided that any compensation or benefits that were, prior to the Local Transfer Date, provided to SpinCo Employees
in such jurisdiction under the Collective Bargaining Agreements through the Parent Benefit Plans shall, to the extent that such compensation
and benefits are still required to be provided under the Collective Bargaining Agreements on and after the Local Transfer Date, be provided
as mutually agreed with such works councils, labor unions and other employee representatives through the SpinCo Benefit Plans as set forth
in this Agreement.

 

    11 

     

    

 

Section 2.09.         Liabilities
Generally. From and after the Local Transfer Date or such other date agreed by Parent and SpinCo, except as expressly provided in
this Agreement, in each applicable jurisdiction (a) SpinCo and the SpinCo Group shall assume or retain, as applicable, and SpinCo
hereby agrees to pay, perform, fulfill and discharge, in due course in full, and be solely responsible for, all Liabilities with respect
to the employment or termination of employment of all SpinCo Employees, Former SpinCo Employees, their dependents and beneficiaries and
other service providers and all other Liabilities expressly assigned to SpinCo or any member of the SpinCo Group under this Agreement
and (b) Parent and the Parent Group shall assume or retain, as applicable, and Parent hereby agrees to pay, perform, fulfill and
discharge, in due course in full, and be solely responsible for, all Liabilities with respect to the employment or termination of employment
of all Parent Employees, Former Parent Employees, their dependents and beneficiaries and other service providers and all other Liabilities
expressly assigned to Parent or any member of the Parent Group under this Agreement. To the extent that this Agreement does not address
particular Liabilities under any Benefit Plan and the Parties later determine that they should be allocated in connection with the Distribution,
the Parties shall agree in good faith on the allocation, taking into account the handling of comparable Liabilities under this Agreement.
For the avoidance of doubt, it is the intent of the Parties that, as between Parent and SpinCo, the provisions of this Section 2.09
with respect to the allocation of the Liabilities described in this Section 2.09 shall apply notwithstanding the terms of
any Local Agreement or the application of local Law. Notwithstanding anything in this Agreement or any Local Agreement to the contrary,
the SpinCo Group shall assume and hereby agrees to pay, perform, fulfill and discharge, in due course in full, and be solely responsible
for, all Liabilities with respect to Blue Sky Employees.

 

Section 2.10.         Benefit
Plans. Except as otherwise explicitly provided in this Agreement or as may otherwise be provided in accordance with the TSA, as of
the Local Transfer Date or such other date agreed by Parent and SpinCo, each SpinCo Employee (and each of his or her respective dependents
and beneficiaries) in the applicable jurisdiction shall cease active participation in, and each applicable member of the SpinCo Group
shall cease to be a participating employer in, all Parent Benefit Plans, and as of no later than such time, SpinCo shall, or shall cause
the applicable member of the SpinCo Group to, have in effect such corresponding SpinCo Benefit Plans as are necessary to comply with its
obligations pursuant to this Agreement. Effective upon the Local Transfer Date or such other date agreed by Parent and SpinCo, except
as otherwise explicitly provided in this Agreement or a Local Agreement, (a) SpinCo shall, or shall cause one of the members of the
SpinCo Group to, retain, pay, perform, fulfill and discharge, in due course in full, and be solely responsible for, all Liabilities arising
out of or relating to all SpinCo Benefit Plans, taking into account a corresponding assumption of Liabilities by the SpinCo Benefit Plans
with respect to SpinCo Employees and Former SpinCo Employees that were originally the Liabilities of the corresponding Parent Benefit
Plan with respect to periods prior to the Local Transfer Date, and (b) Parent shall, or shall cause one or more members of the Parent
Group to, retain, pay, perform, fulfill and discharge, in due course in full, and be solely responsible for, all Liabilities arising out
of or relating to all Parent Benefit Plans, taking into account the SpinCo Benefit Plan’s assumption of Liabilities with respect
to SpinCo Employees and Former SpinCo Employees that were originally the Liabilities of the corresponding Parent Benefit Plan with respect
to periods prior to the Local Transfer Date. All assets held in trust to fund the Parent Benefit Plans and all insurance policies funding
the Parent Benefit Plans shall be Parent Assets, except to the extent explicitly provided otherwise in this Agreement or a Local Agreement.

 

    12 

     

    

 

Section 2.11.        Payroll
Services. Except as may otherwise be provided in accordance with a Local Agreement or the TSA, on and after the Local Transfer Date
or such other date agreed by Parent and SpinCo, the applicable members of the SpinCo Group shall be solely responsible for all payroll
services, Tax withholding and reporting obligations, and associated government audit assessments and receivables with respect to the SpinCo
Employees and Former SpinCo Employees in the applicable jurisdiction.

 

Section 2.12.         No
Change in Control. The Parties hereto agree that none of the transactions contemplated by the Separation Agreement or any of the Ancillary
Agreements, including this Agreement, constitutes a “change in control,” “change of control” or transaction having
a similar name, as applicable, within the meaning of any Parent Benefit Plan or SpinCo Benefit Plan.

 

Section 2.13.         Inadvertent
Transfers. If Parent determines following the Local Transfer Date that an individual whom Parent intended to be a Parent Employee
or a SpinCo Employee has inadvertently become employed by the SpinCo Group or the Parent Group, respectively, the Parties shall cooperate
in good faith and take such actions as may be reasonably necessary in order to cause the employment of such individual to be promptly
transferred to a member of the Parent Group or the SpinCo Group, as applicable, as intended by Parent, and such individual shall be treated
for all purposes of this Agreement, including Section 4.02, as if such individual commenced employment with the intended Destination
Employer as of the Local Transfer Date of the jurisdiction in which the individual is employed.

 

Section 2.14.        Non-Solicit;
No Hire. Except as otherwise agreed by the Parties, for a period beginning on the Distribution Date and ending two (2) years
following the Distribution Date, (a) SpinCo and the SpinCo Group shall not solicit for employment or hire (as an employee, consultant
or otherwise) any Parent Employee who (i) was employed by Parent or a member of the Parent Group as of the applicable Local Transfer
Date or (ii) became an employee of a member of the Parent Group following the Local Transfer Date and was involved in commercial
contracts (including a TSA) with the SpinCo Group, and (b) Parent and the Parent Group shall not solicit for employment or hire (as
an employee, consultant or otherwise) any (i) SpinCo Employee who was employed by a member of the SpinCo Group as of the Local Transfer
Date, (ii) SpinCo Employee who became an employee of the SpinCo Group following the Local Transfer Date and was involved in commercial
contracts (including a TSA) with the Parent Group or (iii) Former SpinCo Employee who rejected an offer from the SpinCo Group, objected
to an automatic transfer to the SpinCo Group or who terminated employment with the Parent Group before receiving an offer letter or transfer
letter from the SpinCo Group, in each case, subject to applicable Law. Notwithstanding any of the foregoing provisions of this Section 2.14
to the contrary, (A) Parent and the Parent Group shall not be restricted from soliciting for employment or hiring (as an employee,
consultant or otherwise) any SpinCo Employee that was terminated by the SpinCo Group in accordance with the exceptions to the covenant
not to sever SpinCo Employees described in Section 2.15 and (B) the Parties shall not be restricted from soliciting for
employment or hiring (as an employee, consultant or otherwise) any SpinCo Employee or Parent Employee, as applicable, who was terminated
from employment with the applicable Party as a result of a resource action that was not a result of such employee rejecting an offer from
the SpinCo Group. This Section 2.14 is not intended to restrict an individual’s right of employment, nor does it restrict
general, customary employment advertisements and recruiting efforts. Rather, it restricts targeted solicitation of such employees of the
other Party. Employees of either Party may pursue employment opportunities with the other Party on their own initiative. If a final and
non-appealable judicial determination is made that any provision of this Section 2.14 constitutes an unreasonable or otherwise
unenforceable restriction with respect to any particular jurisdiction, the provisions of this Section 2.14 will not be rendered
void but will be deemed to be modified solely with respect to the applicable jurisdiction to the minimum extent necessary to remain in
force and effect for the greatest period and to the greatest extent that such court determines constitutes a reasonable restriction under
the circumstances.

 

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Section 2.15.        Termination
of SpinCo Employees. SpinCo and the SpinCo Group shall not sever a SpinCo Employee transferred pursuant to this Agreement for a period
of one (1) year following the Distribution Date; provided, however, that nothing contained in this Agreement shall
be construed in any way to limit or prevent the SpinCo Group from terminating any SpinCo Employee (a) transferred pursuant to this
Agreement at any time for “cause” or for reasons related to poor performance or conditions of employment; (b) who received
a notice of termination from the Parent Group prior to the Local Transfer Date; (c) who (i) is 100% dedicated to a SpinCo Contract
with a third party that is terminated by the third party, or in the event of a breach of the SpinCo Contract by the third party, or (ii) is
less than 100% dedicated to such a terminated SpinCo Contract with a third party, but only to reflect a proportionate reduction in the
number of SpinCo Employees who service such SpinCo Contract that is approximately commensurate to the aggregate reduction in resource
requirements under such SpinCo Contract; provided that this clause (c) shall not apply with respect to any SpinCo Employee
located in Europe or any other jurisdiction in which a mandatory transfer of employment occurs; or (d) who is already covered by
a termination protection covenant pursuant to another agreement or arrangement with the SpinCo Group as of the Local Transfer Date or
under applicable Law.

 

Article 3

NON-EQUITY INCENTIVES

 

Section 3.01.        SpinCo
Employee Incentives. On and after the Local Transfer Date, the SpinCo Group shall assume and be solely responsible for all Liabilities
with respect to any annual bonus or other cash-based incentive awards under any Benefit Plan to any SpinCo Employee or Former SpinCo Employee
in the applicable jurisdiction, including, for the avoidance of doubt, any such awards with respect to the Parent fiscal year ending prior
to the Distribution (the “SpinCo Incentive Payments”). The SpinCo Group shall be responsible for determining the amounts
of all SpinCo Incentive Payments that have not been determined prior to the Local Transfer Date, including the extent to which established
performance criteria (as interpreted by SpinCo, in its sole discretion) have been met, and shall pay all SpinCo Incentive Payments no
later than the times provided for under the applicable Benefit Plan. For the avoidance of doubt, any determinations made prior to the
Distribution regarding the amounts of any SpinCo Incentive Payments shall be subject to Parent’s prior written approval.

 

Section 3.02.     Retention
Bonus Programs. On and after the Local Transfer Date, the SpinCo Group shall assume and be solely responsible for all Liabilities
with respect to any amounts owed to a SpinCo Employee under the Retention Bonus Programs, and shall pay all amounts under the Retention
Bonus Programs no later than the times provided for under the applicable Retention Bonus Programs. For the avoidance of doubt, any determinations
made prior to the Distribution regarding the amounts of any payments under the Retention Bonus Programs shall be subject to Parent’s
prior written approval.

 

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Article 4

SERVICE CREDIT

 

Section 4.01.         Parent
Benefit Plans. Except as may otherwise be provided in accordance with the TSA or as required by applicable Law or the terms of the
applicable Parent Benefit Plan, service of SpinCo Employees and Former SpinCo Employees in each applicable jurisdiction on and after the
Local Transfer Date, or such other date agreed by Parent and SpinCo, with any member of the SpinCo Group or any other employer, as applicable,
other than any member of the Parent Group, shall not be taken into account for any purpose under any Parent Benefit Plan.

 

Section 4.02.         SpinCo
Benefit Plans. From and after the Local Transfer Date, SpinCo shall, and shall cause the applicable member of the SpinCo Group to,
give each SpinCo Employee full credit for all purposes (including for purposes of eligibility to participate, level of benefits,
early retirement eligibility and early retirement subsidies, vacation days and other paid time off, severance or separation benefits,
vesting and benefit accrual) under any Benefit Plans, Collective Bargaining Agreements and employment-related entitlements (including
under any applicable pension, 401(k), savings, medical, dental, life insurance, vacation, long-service leave or other leave entitlements,
post-retirement health and life insurance, termination indemnity, notice period, severance or separation pay plans) provided, sponsored,
maintained or contributed to by any member of the SpinCo Group for such SpinCo Employee’s service with any member of the SpinCo
Group or the Parent Group, and with any predecessor employer, prior to the Local Transfer Date to the same extent recognized by the Parent
Group (“Pre-Transfer Service”), except to the extent such credit would result in the duplication of benefits for the
same period of service. Notwithstanding the foregoing, to the extent permitted under applicable Law, the SpinCo Group shall not be required
to provide credit for such service for benefit accrual purposes under any SpinCo Benefit Plan that is a defined benefit pension plan unless
such plan has assumed any assets and/or liabilities pursuant to this Agreement, a Local Agreement or applicable Law relating to benefits
accrued by such SpinCo Employee under a Parent Benefit Plan that is a defined benefit pension plan.  The SpinCo Group shall recognize
each SpinCo Employee’s Pre-Transfer Service for any additional benefit introduced by SpinCo after the Local Transfer Date that is
based on length or duration of employment.

 

Section 4.03.         No
Expansion of Participation. Unless otherwise expressly provided in this Agreement, as otherwise determined or agreed to by the Parties,
as required by applicable Law or as explicitly set forth in a SpinCo Benefit Plan, each SpinCo Employee shall be entitled to participate
in a given SpinCo Benefit Plan only to the extent that such SpinCo Employee was entitled to participate in the corresponding Parent Benefit
Plan as in effect immediately prior to the Local Transfer Date, with it being the intent of the Parties that this Agreement does not result
in any expansion of the number of SpinCo Employees participating or the participation rights therein that they had prior to the Local
Transfer Date.

 

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Article 5

SEVERANCE

 

Section 5.01.         Severance.
The SpinCo Group shall be solely responsible for all Liabilities, including all statutory or common law severance or other separation
benefits, any contractual or other termination indemnity, any retirement indemnity, any severance or separation benefits or any other
legally or contractually mandated payments (including any compensation or benefits payable during a termination notice period and any
payments pursuant to a judgment of a court having jurisdiction over the parties) relating to the termination or alleged termination of
any SpinCo Employee’s or Former SpinCo Employee’s employment, whether occurring prior to, on or after the Local Transfer Date.
For the avoidance of doubt, such Liabilities shall include any employer-paid portion of any Employment Taxes and shall be treated as Liabilities
of SpinCo and the SpinCo Group. For the avoidance of doubt, in the event of any conflict between the provisions of this Section 5.01
and Article 9, the provisions of this Section 5.01 shall control.

 

Article 6

WARN ACT

 

Section 6.01.         WARN
Act. SpinCo shall provide any required notice under the WARN Act, and otherwise comply with the WARN Act, in each case, with respect
to any “plant closing” or “mass layoff” (as defined in the WARN Act) or group termination or similar event occurring
on and after 11:59 p.m. on the Local Transfer Date, and SpinCo shall not take any action after the Local Transfer Date that would
cause any terminations of employment of any SpinCo Employees that occur before 11:59 p.m. on the Local Transfer Date to constitute
a “plant closing” or “mass layoff” or group termination, or to create any liability or penalty to Parent under
Law.

 

Article 7

CERTAIN WELFARE BENEFIT PLAN MATTERS;

WORKERS’ COMPENSATION CLAIMS

 

Section 7.01.         SpinCo
Welfare Plans. Without limiting the generality of Section 2.10, effective as of the Local Transfer Date or such other
date as agreed to between Parent and SpinCo, which need not be the same for each Welfare Plan (such applicable date, the “Welfare
Plan Date”), the SpinCo Group shall establish Welfare Plans (collectively, the “SpinCo Welfare Plans”) to
provide welfare benefits to the SpinCo Employees (and their dependents and beneficiaries) in each applicable jurisdiction and, as of the
applicable Welfare Plan Date, each SpinCo Employee (and his or her dependents and beneficiaries) shall cease active participation in the
corresponding Parent Welfare Plan. For the avoidance of doubt, for purposes of this Article 7, the term “SpinCo Employee”
shall be deemed to include each Former SpinCo Employee who was receiving welfare benefits in connection with his or her termination of
employment from a member of the Parent Group or the SpinCo Group as of the applicable Welfare Plan Date.

 

Section 7.02.         Allocation
of Welfare Benefit Claims. (a) The members of the Parent Group shall retain and be solely responsible for all Liabilities in
accordance with the applicable Parent Welfare Plan for all reimbursement claims (such as medical and dental claims) and for all non-reimbursement
claims (such as life insurance claims), in each case, as incurred and reported by SpinCo Employees and Former SpinCo Employees (and each
of their respective dependents and beneficiaries) under such plans prior to the applicable Welfare Plan Date and (b) the members
of the SpinCo Group shall retain and be solely responsible for (i) all Liabilities in accordance with the applicable Parent Welfare
Plan for all reimbursement claims (such as medical and dental claims) and for all non-reimbursement claims (such as life insurance claims),
in each case, that were incurred by SpinCo Employees and Former SpinCo Employees (and each of their respective dependents and beneficiaries)
under such plans prior to the applicable Welfare Plan Date but not yet reported as of the applicable Welfare Plan Date and (ii) all
Liabilities in accordance with the SpinCo Welfare Plans for all reimbursement claims (such as medical and dental claims) and for all non-reimbursement
claims (such as life insurance claims), in each case, as incurred by SpinCo Employees and Former SpinCo Employees (and each of their respective
dependents and beneficiaries) on or after the applicable Welfare Plan Date; provided that SpinCo shall reimburse Parent for Liabilities
incurred under clause (a) between the Local Transfer Date and the applicable Welfare Plan Date. For purposes of this Section 7.02,
a benefit claim shall be deemed to be incurred as follows: (i) for health, dental, vision, employee assistance program and prescription
drug benefits (including in respect of any hospital admission), upon the provision of such services, materials or supplies and (ii) for
life, accidental death and dismemberment, and business travel accident insurance benefits, upon the death, cessation of employment or
other event by Parent giving rise to such benefits.

 

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Section 7.03.         6055/6056
Reporting. The SpinCo Group shall comply with the reporting obligations under Section 6056 of the Code (Reporting of Offers of
Coverage) with respect to SpinCo Employees and Former SpinCo Employees for the Closing Plan Year (including while SpinCo was owned by
Parent) and periods after the Local Transfer Date, for which SpinCo has a reporting obligation; provided that the Parent Group
shall be responsible for complying with all reporting obligations with respect to the year prior to the Closing Plan Year. In this regard,
the SpinCo Group shall be solely responsible for distributing IRS Form 1095-C to applicable individuals and filing IRS Forms 1094-C
and 1095-C with the IRS, all according to the applicable rules and regulations governing such forms. SpinCo shall also be solely
responsible for ensuring that the SpinCo Group complies with the reporting obligations under Section 6055 of the Code (Reporting
of Enrollment in Minimum Essential Coverage) with respect to all SpinCo Employees and Former SpinCo Employees who are enrolled in a self-insured
medical plan under the Parent Welfare Plan. SpinCo may meet this obligation either through IRS Forms 1094-C and 1095-C or IRS Forms 1094-B
and 1095-B, all in accordance with applicable rules and regulations.

 

Section 7.04.        Credit
for Benefits. The SpinCo Group shall (a) waive for each SpinCo Employee and Former SpinCo Employee and his or her dependents,
each waiting period provision, payment requirement to avoid a waiting period, preexisting condition limitation, actively at work requirement
and any other restriction that would prevent immediate or full participation under the SpinCo Welfare Plan (or was previously satisfied
by) such SpinCo Employee or Former SpinCo Employee to the extent that such waiting period, preexisting condition limitation, actively
at work requirement or other restriction would not have been applicable to such SpinCo Employee or Former SpinCo Employee under the terms
of the applicable Parent Benefit Plan immediately prior to the Local Transfer Date and (b) give full credit under the SpinCo Welfare
Plans applicable to each SpinCo Employee and Former SpinCo Employee and his or her dependents, for all out-of-pocket expenses, including
co-payments and deductibles, satisfied prior to the Local Transfer Date in the Closing Plan Year, and for any lifetime maximums, as if
there had been a single continuous employer.

 

Section 7.05.        Workers’
Compensation Claims. In the case of any workers’ compensation claim of any SpinCo Employee or Former SpinCo Employee in respect
of his or her employment with the Parent Group or the SpinCo Group, such claim shall be covered (a) by the SpinCo Group’s workers’
compensation coverage for the applicable jurisdiction if the claim relating to the Workers’ Compensation Event is submitted after
the date on which SpinCo has established workers’ compensation coverage (the “Workers’ Compensation Claim Date”)
and (b) by the Parent Group’s workers’ compensation coverage if the claim relating to the Workers’ Compensation
Event is submitted prior to the Workers’ Compensation Claim Date; provided that SpinCo shall reimburse Parent for Liabilities
actually incurred by the Parent Group under clause (b).

 

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Section 7.06.     COBRA.
If a SpinCo Employee or Former SpinCo Employee (or his or her eligible dependents) was receiving, prior to the applicable Welfare Plan
Date, or is eligible to receive, on or following the applicable Welfare Plan Date, continuation health coverage pursuant to COBRA, the
SpinCo Group and the SpinCo Welfare Plans shall be solely responsible for all Liabilities to such employee (or his or her eligible dependents)
in respect of COBRA. The SpinCo Group shall indemnify, defend and hold harmless the members of the Parent Group from and against any and
all Liabilities relating to, arising out of or resulting from COBRA provided by the SpinCo Group, or the failure of the SpinCo Group to
meet its COBRA obligations, to SpinCo Employees, Former SpinCo Employees and their respective eligible dependents.

 

Section 7.07.     Flexible
Spending Accounts. Effective as of the applicable Welfare Plan Date, the SpinCo Group shall have established a health care and dependent
care reimbursement account plan (the “SpinCo Reimbursement Account Plan”) with features that are comparable to those
contained in the relevant health care and dependent care reimbursement account plan sponsored and maintained by Parent (the “Parent
Reimbursement Account Plan”). With respect to applicable SpinCo Employees and Former SpinCo Employees, effective as of the applicable
Welfare Plan Date, the SpinCo Group shall assume and be solely responsible for administering all reimbursement claims of SpinCo Employees
and Former SpinCo Employees with respect to the plan year in which the applicable Welfare Plan Date occurs, whether arising before, on
or after the applicable Welfare Plan Date, under the SpinCo Reimbursement Account Plan and, for the avoidance of doubt, on and after the
applicable Welfare Plan Date, no additional claims shall be reimbursed with respect to SpinCo Employees and Former SpinCo Employees under
the Parent Reimbursement Account Plan. Parent shall, as soon as practicable following the applicable Welfare Plan Date, determine (a) the
sum of all contributions to the Parent Reimbursement Account Plan made with respect to such plan year by or on behalf of all SpinCo Employees
and Former SpinCo Employees, as a whole, prior to the applicable Welfare Plan Date (the “Aggregate Pre-Transfer Date Contributions”)
and (b) the sum of all claims incurred in such plan year and paid by the Parent Reimbursement Account Plan with respect to such SpinCo
Employees and Former SpinCo Employees, as a whole, prior to the applicable Welfare Plan Date (the “Aggregate Pre-Transfer Date
Disbursements”). If the Aggregate Pre-Transfer Date Contributions exceed the Aggregate Pre-Transfer Date Disbursements, Parent
shall, as soon as practicable following Parent’s determination of the Aggregate Pre-Transfer Date Contributions and Aggregate Pre-Transfer
Date Disbursements, transfer to SpinCo an amount in cash equal to such difference. If the Aggregate Pre-Transfer Date Disbursements exceed
the Aggregate Pre-Transfer Date Contributions, SpinCo shall, upon Parent’s reasonable request and the presentation of such substantiating
documentation as SpinCo shall reasonably request, transfer to Parent an amount in cash equal to such difference.

 

Section 7.08.     Continuation
of Elections. With respect to applicable SpinCo Employees, as of the applicable Welfare Plan Date, the SpinCo Group shall cause the
SpinCo Welfare Plans to recognize and maintain all elections and designations (including, without limitation, all coverage and contribution
elections and beneficiary designations) made by SpinCo Employees under, or with respect to, the Parent Welfare Plans and apply such elections
and designations under the SpinCo Welfare Plans for the remainder of the period or periods for which such elections or designations are
by their original terms applicable, to the extent that such elections or designations are available under the corresponding SpinCo Welfare
Plan. As of the applicable Welfare Plan Date, the SpinCo Group shall cause any SpinCo Welfare Plan that constitutes a cafeteria plan under
Section 125 of the Code to recognize and give effect to all non-elective employer contributions payable and paid toward coverage
of a SpinCo Employee under the corresponding Parent Welfare Plan that constitutes a cafeteria plan under Section 125 of the Code
for the applicable cafeteria plan year.

 

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Section 7.09.     Post-Retirement
Health and Life Insurance.  The Parent Group agrees to allow its Eligible Retiree Medical Employees to participate in, and receive
benefits from, the Parent Group’s applicable post-retirement health and life insurance plans upon their eligibility to enroll, unless
otherwise required by applicable Law; provided that nothing herein shall prohibit Parent or any member of the Parent Group from
amending, modifying or terminating such plans or prevent the application of any such amendment, modification or termination to any Eligible
Retiree Medical Employee.  With respect to any SpinCo Employees and Former SpinCo Employees in the Continuing Retiree Medical Jurisdictions
who, immediately prior to the Local Transfer Date, are eligible to participate in the Parent Group’s post-retirement health and
life insurance plans and have satisfied the eligibility criteria to receive benefits under such plans as in effect on the Local Transfer
Date, the SpinCo Group shall establish, as of the applicable Welfare Plan Date, a SpinCo Benefit Plan that provides post-retirement health
and life insurance benefits that are comparable to the applicable Parent Benefit Plan (the “SpinCo Retiree Medical Plans”),
and SpinCo and the members of the SpinCo Group shall assume and be solely responsible for all Liabilities in accordance with the SpinCo
Retiree Medical Plans with respect to all such SpinCo Employees and Former SpinCo Employees in the Continuing Retiree Medical Jurisdictions.

 

Article 8

LONG-TERM DISABILITY EMPLOYEES

 

Section 8.01.     SpinCo
LTD Employees. Except as otherwise specifically provided in this Agreement, as required by applicable Law or as agreed to between
Parent and SpinCo, on and after the Local Transfer Date, the SpinCo LTD Employees shall be deemed to be employees of the SpinCo Group
for all purposes of this Agreement.

 

Section 8.02.     Retained
LTD Employees. Except as otherwise specifically provided in this Agreement and subject to Section 8.03, on and after the
Distribution, the Retained LTD Employees shall be deemed to be employees of the Parent Group for purposes of this Agreement, including
participation in the Parent LTD Plans. Notwithstanding the foregoing, SpinCo shall reimburse Parent for any Liabilities of the Parent
Group arising with respect to the Retained LTD Employees.

 

Section 8.03.     Return
to Work. To the extent required by applicable Parent Group or SpinCo Group policies, as in effect from time to time, or applicable
Law, SpinCo shall, or shall cause the applicable member of the SpinCo Group to, employ any SpinCo LTD Employee or Retained LTD Employee
at such time, if any, as such SpinCo LTD Employee or Retained LTD Employee is ready to return to active employment, and, with respect
to any Retained LTD Employee, from and after such time, such employee shall no longer be deemed an employee of the Parent Group and shall
be deemed a SpinCo Employee for purposes of this Agreement; provided that, if such SpinCo LTD Employee or Retained LTD Employee
presents himself or herself for active employment and is not employed by a member of the SpinCo Group due to applicable SpinCo Group policies,
and if such SpinCo LTD Employee’s or Retained LTD Employee’s employment is terminated by a member of the Parent Group within
a reasonable time thereafter, SpinCo shall indemnify the Parent Group for all Liabilities incurred in connection with such termination.
Notwithstanding the foregoing, SpinCo or the applicable member of the SpinCo Group shall only be required to employ a Retained LTD Employee
in accordance with this Section 8.03 if such Retained LTD Employee is ready to return to active employment within one (1) year
following the Distribution Date or such greater period as required by applicable Law.

 

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Article 9

DEFINED BENEFIT PENSION PLANs

 

Section 9.01.     U.S.
Pension Plans. Except as otherwise provided in any of Parent’s tax-qualified or nonqualified defined benefit pension plans maintained
for employees principally employed in the United States (each, a “Parent U.S. Pension Plan”), as of the Local Transfer
Date or such other date as agreed to between Parent and SpinCo, each SpinCo Employee shall cease active participation in the relevant
Parent U.S. Pension Plan, and service performed for, and compensation earned from, any employer, other than the Parent Group, and, to
the extent service is recognized under the relevant Parent U.S. Pension Plan, their predecessors, shall not be taken into account for
any purpose under the Parent U.S. Pension Plans. Prior to the Local Transfer Date, Parent shall provide SpinCo with a list of SpinCo Employees
and Former SpinCo Employees who are participants in the nonqualified Parent U.S. Pension Plans. Upon and following the Local Transfer
Date, if a SpinCo Employee on such list terminates employment with the SpinCo Group, SpinCo shall, or shall cause a member of the SpinCo
Group to, provide written notice to Parent of such employee’s termination of employment within twenty (20) days of such employee’s
termination of employment; provided that following the Distribution Date, SpinCo or the applicable member of the SpinCo Group shall
only be required to provide such notice with respect to SpinCo Employees who participate in a nonqualified Parent U.S. Pension Plan. Notwithstanding
the foregoing, SpinCo shall be liable and solely responsible, and shall reimburse Parent, for any Liabilities of the Parent Group arising
with respect to the Parent U.S. Pension Plans as a result of any failure by a member of the SpinCo Group to provide proper notice of an
employment termination that results in the inability of Parent to administer the Parent U.S. Pension Plans in compliance with Section 409A
of the Code to the extent applicable with respect to any SpinCo Employee or Former SpinCo Employee who participated thereunder.

 

Section 9.02.     Non-U.S.
Pension Plans.

 

(a)       Non-Transferor
Defined Benefit Plans. Except as set forth in any Local Agreement and, in any case, with respect to each Non-Transferor Defined Benefit
Plan, the Parent Group shall retain or shall cause to be retained all Assets and Liabilities under such plan (and, to the extent applicable,
under the insurance company contracts maintained to fund such plan) and shall make payments to SpinCo Employees and Former SpinCo Employees
with vested rights thereunder in accordance with the terms of such plan and applicable Law; provided that unvested rights thereunder
shall be treated in accordance with the terms of such plan and applicable Law. Except as otherwise provided in any Non-Transferor Defined
Benefit Plan, as of the Local Transfer Date or such other date as agreed to between Parent and SpinCo, each SpinCo Employee shall cease
active participation in the relevant Non-Transferor Defined Benefit Plan, and service performed for, and compensation earned from, any
employer, other than the Parent Group, and, to the extent service is recognized under the relevant Non-Transferor Defined Benefit Plan,
their predecessors, shall not be taken into account for any purpose under the Non-Transferor Defined Benefit Plans.

 

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(b)      Subsidiary
Defined Benefit Plans.

 

(i)         Assumption
of Subsidiary Defined Benefit Plans. Except to the extent set forth in Section 9.02(b)(ii), with respect to the Subsidiary
Defined Benefit Plans, as of the Local Transfer Date or such other date as agreed to between Parent and SpinCo (the “Subsidiary
DB Transfer Date”), the SpinCo Group shall assume and retain all Assets and Liabilities under such plan (and, to the extent
applicable, under the insurance company contracts maintained to fund such plan) and shall make payments to SpinCo Employees and Former
SpinCo Employees with vested rights thereunder (and unvested rights thereunder to the extent such rights vest) in accordance with the
terms of such plan and applicable Law.

 

(ii)        Establishment
of Parent Reverse Transfer Defined Benefit Plans. Effective as of the applicable Subsidiary DB Transfer Date, in connection with the
transfer of Assets and Liabilities to a Parent Reverse Transfer Defined Benefit Plan from a Subsidiary Defined Benefit Plan that is a
Reverse Transfer Defined Benefit Plan, the Parent Group shall establish a trust or other vehicle to accept such transfer of pension Assets
that relate to Parent Employees, Former Parent Employees, and to the extent specified on Schedule 9.02, Former SpinCo Employees,
unless the Parent Group is prohibited from establishing a trust or other vehicle under applicable Law or the transfer of such Assets to
a trust or other vehicle would result in adverse Tax consequences to a substantial portion of the Parent Employees, Former Parent Employees
or, if applicable, Former SpinCo Employees, in each case, who participated in the relevant Reverse Transfer Defined Benefit Plan immediately
prior to the Subsidiary DB Transfer Date. As soon as practicable following the applicable Subsidiary DB Transfer Date, but in any event
no later than the later of (1) 30 days following the date that the trust or other vehicle that will accept the transferred Assets
with respect to the applicable Reverse Transfer Defined Benefit Plan has been established or designated (unless no such trust or other
vehicle is required) and (2) 30 days following the earliest date permitted by applicable Law, the SpinCo Group shall cause each Reverse
Transfer Defined Benefit Plan to transfer (A) the Liabilities of the Parent Reverse Transfer Defined Benefit Plan with respect the
Parent Employees, Former Parent Employees and, if applicable, Former SpinCo Employees and (B) pension Assets (including, to the extent
applicable, any insurance company contracts maintained to fund such plan) having a value sufficient to satisfy any requirements under
applicable Law from such Reverse Transfer Defined Benefit Plan to the trust or other vehicle established or designated with respect to
the applicable Parent Reverse Transfer Defined Benefit Plan or, where no trust or other vehicle exists, provide payment of an equivalent
amount to Parent or the applicable member of the Parent Group; provided that if there is no such requirement under applicable Law,
the applicable Reverse Transfer Defined Benefit Plan shall transfer to the Parent Reverse Transfer Defined Benefit Plan an aggregate amount
of pension Assets that bears the same proportion as (x) the aggregate amount of Liabilities of such Reverse Transferor Defined Benefit
that relate to Parent Employees, Former Parent Employees and, if applicable, Former SpinCo Employees relative to (y) the aggregate
amount of all Liabilities of such Reverse Transfer Defined Benefit, in each case, as determined in accordance with U.S. GAAP.

 

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(c)      Transferor
Defined Benefit Plans.

 

(i)         Establishment
of Transferee Defined Benefit Plans. Without limiting the generality of Section 2.11, effective as of the applicable Non-U.S.
DB Transfer Date, in connection with the transfer of Assets and Liabilities from a Transferor Defined Benefit Plan to a Transferee Defined
Benefit Plan, the SpinCo Group shall establish a trust or other vehicle to accept such transfer of pension Assets, unless the SpinCo Group
is prohibited from establishing a trust or other vehicle under applicable Law or the transfer of such Assets to a trust or other vehicle
would result in adverse Tax consequences to a substantial portion of the SpinCo Employees who participated in the relevant Transferor
Defined Benefit Plan immediately prior to the applicable Closing Date. As soon as practicable following the applicable Non-U.S. DB Transfer
Date, but in any event no later than the later of (1) 30 days following the date that the trust or other vehicle that will accept
the transferred Assets with respect to the applicable Transferee Defined Benefit Plan has been established or designated (unless no such
trust or other vehicle is required) and (2) 30 days following the earliest date permitted by applicable Law (the “Pension
Asset Transfer Date”), the Parent Group shall cause each Transferor Defined Benefit Plan to transfer pension Assets (including,
to the extent applicable, any insurance company contracts maintained to fund such plan) that have been allocated to SpinCo in accordance
with clause (b)(2) below (as adjusted for appreciation or depreciation that occurs after the Local Transfer Date but prior to the
Pension Asset Transfer Date) or such greater value sufficient to satisfy any requirements under applicable Law from such Transferor Defined
Benefit Plan, to the trust or other vehicle established or designated with respect to the applicable Transferee Defined Benefit Plan or,
where no trust or other vehicle exists, provide payment of an equivalent amount to SpinCo or the applicable member of the SpinCo Group.
In all events in which a transfer is made by the Parent Group or any Transferor Defined Benefit Plan to a Transferee Defined Benefit Plan,
the SpinCo Group shall not take any direct or indirect action to cause a reversion of pension Assets for a period of five years following
the applicable Non-U.S. DB Transfer Date. At all times following the applicable Non-U.S. DB Transfer Date, the SpinCo Group shall not
take any action to reduce any benefits accrued under any Transferor Defined Benefit Plan prior to the applicable Non-U.S. DB Transfer
Date.

 

(ii)        Assets
and Liabilities of Transferor Defined Benefit Plans. With respect to each Transferor Defined Benefit Plan, the Parent Group shall,
or shall cause the applicable Transferor Defined Benefit Plan to, (1) as of the Local Transfer Date, allocate the aggregate pension
Liabilities that relate to SpinCo Employees to the SpinCo Group and the aggregate pension Liabilities that relate to all other participants
to the Parent Group, in each case, as determined in accordance with U.S. GAAP, (2) as of the Local Transfer Date, allocate the pension
Assets to the SpinCo Group or the Parent Group, as applicable, as required by applicable Law; provided that if there is no such
requirement under applicable Law, the applicable Transferor Defined Benefit Plan shall allocate to the SpinCo Group or the Parent Group,
as applicable, an aggregate amount of pension Assets that bears the same proportion to the aggregate amount of Liabilities of such Transferor
Defined Benefit Plan that are allocated to such Party pursuant to clause (1) of this Section 9.02(c)(ii), (3) retain
the pension Assets and Liabilities for accrued benefits under such Transferor Defined Benefit Plan with respect to the SpinCo Employees
through the applicable Non-U.S. DB Transfer Date and (4) manage the pension Assets for accrued benefits under such Transferor Defined
Benefit Plan with respect to the SpinCo Employees through such Non-U.S. DB Transfer Date; provided that nothing herein shall be
deemed to prohibit or restrict the Parent Group from amending or terminating the applicable Transferor Defined Benefit Plan. SpinCo agrees
that as of the Local Transfer Date, SpinCo or a member of the SpinCo Group shall be solely responsible for the Liabilities allocated to
the SpinCo Group pursuant to clause (1) of this Section 9.02(c)(ii).

 

(iii)       Continued
Participation in Participating Transferor Defined Benefit Plans. With respect to each Participating Transferor Defined Benefit Plan,
the Parent Group shall, or shall cause the applicable Participating Transferor Defined Benefit Plan to, (A) permit the applicable
member of the SpinCo Group to become a participating employer and (B) permit the SpinCo Employees to continue to participate in such
Transferor Defined Benefit Plan in accordance with its terms; provided that nothing herein shall be deemed to prohibit or restrict
the Parent Group from amending or terminating the applicable Transferor Defined Benefit Plan. Notwithstanding the foregoing, prior to
the applicable Non-U.S. DB Transfer Date, the SpinCo Group shall timely make all contributions to the applicable Transferor Defined Benefit
Plan that are required to be made by the SpinCo Group pursuant to the terms of such Transferor Defined Benefit Plan and its most recent
actuarial valuation, this Agreement, any Local Funding Agreement and applicable Law.

 

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(iv)       Pension-Related
Indemnification. In the event that the Non-U.S. DB Transfer Date occurs after the applicable Local Transfer Date with respect to any
country, the SpinCo Group shall indemnify, defend and hold harmless the members of the Parent Group and the applicable Transferor Defined
Benefit Plan from and against any and all Liabilities relating to, arising out of or resulting from such arrangement, including, without
limitation, (1) the administrative costs and expenses incurred by the Parent Group or the Transferor Defined Benefit Plan relating
to each SpinCo Employee’s participation in the Transferor Defined Benefit Plan after the applicable Local Transfer Date, (2) other
Liabilities incurred by the Parent Group or the Transferor Defined Benefit Plan as a result of the Parent Group permitting the SpinCo
Employees to participate in the Transferor Defined Benefit Plan after the applicable Local Transfer Date, (3) Liabilities incurred
by the Parent Group or the Transferor Defined Benefit Plan as a result of the termination of employment of, or changes to the employment
terms of, any SpinCo Employee by the SpinCo Group after the applicable Local Transfer Date and (4) in the event that any transaction
contemplated by such arrangement requires the consent of any SpinCo Employee, any payments or benefits that the Parent Group makes or
provides to such SpinCo Employee in order to obtain such consent, as reasonably determined by the Parent Group after consultation with
the SpinCo Group.

 

(d)      Insured
Transferor Defined Benefit Plans. Without limiting the generality of Section 2.11, effective as of the applicable Non-U.S.
DB Transfer Date, in connection with the transfer of Liabilities from an Insured Transferor Defined Benefit Plan to an Insured Transferee
Defined Benefit Plan, the SpinCo Group shall (1) establish an Insured Transferee Defined Benefit Plan to administer the Liabilities
of the applicable Insured Transferor Defined Benefit Plan and (2) execute insurance contracts with a reputable insurance company
to fund the Liabilities assumed by such Insured Transferee Defined Benefit Plan and pay the benefits to the applicable SpinCo Employees,
which contracts shall be effective no later than the applicable Non-U.S. DB Transfer Date; provided, however, in lieu of
the SpinCo Group executing an insurance contract described in this Section 9.02(d)(2), the Parent Group may, in its discretion,
assign insurance contracts to the SpinCo Group in respect of Liabilities assumed by such Insured Transferee Defined Benefit Plan. As of
the applicable Non-U.S. DB Transfer Date, the Parent Group shall cause each Insured Transferor Defined Benefit Plan to transfer the Liabilities
of the Insured Transferor Defined Benefit Plan with respect the SpinCo Employees to the applicable Insured Transferee Defined Benefit
Plan.

 

(e)       Unfunded
Transferor Defined Benefit Plans. Without limiting the generality of Section 2.11, effective as of the applicable Non-U.S.
DB Transfer Date, in connection with the transfer of Liabilities from an Unfunded Transferor Defined Benefit Plan to an Unfunded Transferee
Defined Benefit Plan, the SpinCo Group shall establish an Unfunded Transferee Defined Benefit Plan to administer the Liabilities of the
applicable Unfunded Transferor Defined Benefit Plan and pay the benefits to the applicable SpinCo Employees. As of the applicable Non-U.S.
DB Transfer Date, the Parent Group shall cause each Unfunded Transferor Defined Benefit Plan to transfer the Liabilities of the Unfunded
Transferor Defined Benefit Plan with respect the SpinCo Employees to the applicable Unfunded Transferee Defined Benefit Plan.

 

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(f)       Acknowledgments
of Pension Liabilities. Following the completion of the transfer of Assets and/or Liabilities from a Transferor Defined Benefit Plan
to a Transferee Defined Benefit Plan, from an Insured Transferor Defined Benefit Plan to an Insured Transferee Defined Benefit Plan and
from a Unfunded Transferor Defined Benefit Plan to an Unfunded Transferee Defined Benefit Plan, and the transfer of a Subsidiary Defined
Benefit Plan to the SpinCo Group as provided in this Section 9.02, the Parent Group shall have no further Liability (either
under this Agreement or otherwise) to provide the SpinCo Employees (or Former SpinCo Employees for the Subsidiary Defined Benefit Plans,
other than the applicable Reverse Transfer Defined Benefit Plans) who participated in such plan with benefits under a Transferor Defined
Benefit Plan, Insured Transferor Defined Benefit Plan, Unfunded Transferor Defined Benefit Plan or Subsidiary Defined Benefit Plan,
and the SpinCo Group shall be solely responsible for all Liabilities with respect to any amounts owed to a SpinCo Employee (or Former
SpinCo Employees for the Subsidiary Defined Benefit Plans, other than the applicable Reverse Transfer Defined Benefit Plans) under such
plans. For the avoidance of doubt, the Parent Group shall retain all Assets and Liabilities under any defined benefit pension plans covering
SpinCo Employees or Former SpinCo Employees, except as expressly provided in Sections 9.02(b) through (e).

 

(g)      No
Reduction in Benefits. At all times following the applicable Non-U.S. DB Transfer Date, the SpinCo Group shall not take any action
to reduce any benefits accrued under any Subsidiary Defined Benefit Plan, Transferor Defined Benefit Plan, Insured Transferor Defined
Benefit Plan or Unfunded Transferor Defined Benefit Plan prior to the applicable Non-U.S. DB Transfer Date.

 

Article 10

DEFINED CONTRIBUTION PLANS

 

Section 10.01.     SpinCo
401(k) Plan. Effective as of the Local Transfer Date or such other date as agreed to between Parent and SpinCo, which need not
be the same for each retirement plan (the “Applicable 401(k) Date”), SpinCo or the applicable member of the SpinCo
Group shall establish a defined contribution plan that includes a qualified cash or deferred arrangement within the meaning of Section 401(k) of
the Code (the “SpinCo 401(k) Plan”) providing benefits to the SpinCo Employees participating in any qualified
cash or deferred arrangement within the meaning of Section 401(k) of the Code sponsored by any member of the Parent Group (collectively,
the “Parent 401(k) Plan”) as of the Local Transfer Date; provided, however, that SpinCo or the applicable
member of the SpinCo Group shall not be required to provide SpinCo Employees with an option to invest in SpinCo Common Stock under the
SpinCo 401(k) Plan.

 

Section 10.02.     401(k) Plan
Rollovers. SpinCo or the applicable member of the SpinCo Group shall permit each SpinCo Employee and Former SpinCo Employee participating
in the Parent 401(k) Plan to effect, and SpinCo or the applicable member of the SpinCo Group shall cause the SpinCo 401(k) Plan
to accept, in accordance with applicable Law, a “direct rollover” (within the meaning of Section 401(a)(31) of the Code)
of his or her account balances (including earnings thereon through the date of transfer and promissory notes evidencing all outstanding
loans in accordance with the terms of the SpinCo 401(k) Plan) under the Parent 401(k) Plan if such rollover to the SpinCo 401(k) Plan
is elected in accordance with applicable Law by such SpinCo Employee and Former SpinCo Employee, subject to each of Parent’s and
SpinCo’s reasonable satisfaction that the Parent 401(k) Plan or the SpinCo 401(k) Plan, as applicable, is in compliance
with all applicable Laws and that such plan continues to satisfy the requirements for a qualified plan under Section 401(a) of
the Code and that the trust that forms a part of such plan is exempt from Tax under Section 501(a) of the Code. Upon completion
of a direct rollover of a SpinCo Employee’s and Former SpinCo Employee’s account balances, as described in this Section 10.02,
SpinCo, the SpinCo Group and the SpinCo 401(k) Plan shall be solely responsible for all benefits relating to past service of such
SpinCo Employee and Former SpinCo Employee, as applicable, and none of Parent, the Parent Group and the Parent 401(k) Plan shall
have any liability whatsoever with respect to such benefits.

 

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Section 10.03.     Employer
401(k) Plan Contributions. The Parent Group shall remain responsible for making all employer contributions under the Parent 401(k) Plan
with respect to any SpinCo Employees or Former SpinCo Employees relating to periods prior to the Applicable 401(k) Date. In the event
that the Applicable 401(k) Date occurs after the Local Transfer Date, SpinCo shall reimburse Parent for any employer contributions
made under this Section 10.03 with respect to any SpinCo Employees or Former SpinCo Employees relating to the period beginning
on the Local Transfer Date and ending on the Applicable 401(k) Date. On and after the Applicable 401(k) Date, the SpinCo Group
shall be solely responsible for all employer contributions under the SpinCo 401(k) Plan with respect to any SpinCo Employees or Former
SpinCo Employees.

 

Section 10.04.     Limitation
of Liability. For the avoidance of doubt, Parent shall have no responsibility for any failure of SpinCo to properly administer the
SpinCo 401(k) Plan in accordance with its terms and applicable Law, including any failure to properly administer the accounts of
SpinCo Employees and their respective beneficiaries, including accounts transferred over in accordance with Section 10.02,
in such SpinCo 401(k) Plan.

 

Section 10.05.     Non-U.S.
Defined Contribution Plans. The treatment of each Parent Benefit Plan that is a defined contribution plan for the benefit of employees
outside of the United States and in which any SpinCo Employee or Former SpinCo Employee participates (each, a “Non-U.S. DC Plan”)
shall be governed by the applicable Local Agreement; provided that if a Local Agreement does not address the treatment of an applicable
Non-U.S. DC Plan, then Parent and SpinCo shall use commercially reasonable efforts to cause such Non-U.S. DC Plan to be treated in a manner
that is consistent with applicable Law and, to the extent practicable, the general principles of this Article 10.

 

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Article 11

NONQUALIFIED DEFERRED COMPENSATION

 

Section 11.01.     SpinCo
Nonqualified Deferred Compensation Plans. Notwithstanding Section 2.09 or any other provision of this Agreement to the
contrary, following the Local Transfer Date, the Parent Group shall retain sponsorship of the Parent Nonqualified Deferred Compensation
Plans and all assets and Liabilities arising out of or relating to the Parent Nonqualified Deferred Compensation Plans. Without limiting
the generality of Section 2.10, effective as of the Distribution Date or such other date as agreed to between Parent and SpinCo,
SpinCo shall establish a new nonqualified deferred compensation plan (or plans) sponsored by SpinCo (together, the “SpinCo Nonqualified
Deferred Compensation Plans”). The SpinCo Nonqualified Deferred Compensation Plans shall honor all deferral elections by SpinCo
Employees for the plan year in which the Distribution occurs, and for the 2021 plan year, the SpinCo Nonqualified Deferred Compensation
Plans shall also honor terms and conditions that are substantially similar to the terms and conditions of the corresponding Parent Nonqualified
Deferred Compensation Plan (including matching and automatic employer contributions). The Parties hereto agree that none of the transactions
contemplated by the Separation Agreement or any of the Ancillary Agreements, including this Agreement, will trigger a payment or distribution
of compensation under the Parent Nonqualified Deferred Compensation Plans or the SpinCo Nonqualified Deferred Compensation Plans to any
SpinCo Employee or Former SpinCo Employee (and their respective beneficiaries) and, consequently, that the payment or distribution of
any compensation to which any SpinCo Employee or Former SpinCo Employee (and their respective beneficiaries) is entitled under the Parent
Nonqualified Deferred Compensation Plans will occur upon the time or times provided for under the applicable Parent Nonqualified Deferred
Compensation Plans and such SpinCo Employee’s or Former SpinCo Employee’s deferral elections. Without limiting the generality
of Section 4.01 and subject to Section 17.09, Parent and SpinCo shall use commercially reasonable efforts to cooperate
in administering the Parent Nonqualified Deferred Compensation Plans for purposes of satisfying any obligations relating to the participation
of any SpinCo Employee or Former SpinCo Employee, including by exchanging any necessary participant records and engaging recordkeepers,
administrators, providers, insurers and other third parties. Prior to the Local Transfer Date, Parent shall provide SpinCo with a list
of SpinCo Employees and Former SpinCo Employees who are participants in the Parent Nonqualified Deferred Compensation Plans.  If
a SpinCo Employee on such list terminates employment with the SpinCo Group, SpinCo shall, or shall cause a member of the SpinCo Group
to, provide written notice to Parent of such employee’s termination of employment within twenty (20) days of such employee’s
termination of employment.  Notwithstanding the foregoing, SpinCo shall be liable and solely responsible, and shall reimburse Parent,
for any Liabilities of the Parent Group arising with respect to the Parent Nonqualified Deferred Compensation Plans as a result of any
failure by a member of the SpinCo Group to provide proper notice of an employment termination that results in the inability of Parent
to administer the Parent Nonqualified Deferred Compensation Plans in compliance with Section 409A of the Code with respect to any
SpinCo Employee or Former SpinCo Employee who participated thereunder. For the avoidance of doubt, each SpinCo Nonqualified Deferred Compensation
Plan shall be a SpinCo Benefit Plan.

 

Section 11.02.     No
Transfer of Assets. Except as required by applicable Law, nothing in this Agreement shall require any member of the Parent Group or
the Parent Nonqualified Deferred Compensation Plans to transfer assets or reserves with respect to the Parent Nonqualified Deferred Compensation
Plans to any member of the SpinCo Group or the SpinCo Nonqualified Deferred Compensation Plans.

 

Section 11.03.     Employer
Nonqualified Deferred Compensation Plan Contributions. The Parent Group shall remain responsible for making all employer contributions
under the Parent Nonqualified Deferred Compensation Plans with respect to any SpinCo Employees or Former SpinCo Employees relating to
periods prior to the Distribution Date. SpinCo shall reimburse Parent for any employer contributions made under this Section 11.03
under the Parent Nonqualified Deferred Compensation Plans with respect to any SpinCo Employees or Former SpinCo Employees relating to
the period beginning on the Local Transfer Date and ending on the Distribution Date. Any such contributions that are unvested as of the
Local Transfer Date shall continue to vest in accordance with their terms. On and after the Local Transfer Date, the SpinCo Group shall
be responsible for all employer contributions under the Parent Nonqualified Deferred Compensation Plans and SpinCo Nonqualified Deferred
Compensation Plans with respect to any SpinCo Employees or Former SpinCo Employees.

 

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Section 11.04.     Limitation
of Liability. Parent shall have no responsibility for any failure of the SpinCo Group to properly administer the SpinCo Nonqualified
Deferred Compensation Plans in accordance with their terms and applicable Law, including any failure to properly administer the accounts
of SpinCo Employees or Former SpinCo Employees and their respective beneficiaries in such SpinCo Nonqualified Deferred Compensation Plans.

 

Article 12

ACCRUED LEAVE

 

Section 12.01.     Vacation,
Holidays, Annual Leave and Other Leaves. On the Local Transfer Date, the SpinCo Group shall assume and be solely responsible for all
Liabilities for vacation, holiday, annual leave and/or other leave accruals and benefits with respect to each SpinCo Employee. In addition,
(a) for purposes of determining the number of vacation, holiday, annual leave or other leave days to which such employee shall be
entitled following the Local Transfer Date, SpinCo and the applicable members of the SpinCo Group shall assume and honor all such days
accrued or earned but not yet taken by such employee, if any, as of the Local Transfer Date and (b) to the extent that such employee
is entitled under any applicable Law or any policy of his or her respective employer that is a member of the Parent Group, as the case
may be, to be paid for any vacation, holiday, annual leave or other leave days accrued or earned but not yet taken by such employee as
of the Local Transfer Date, the SpinCo Group shall assume and be solely responsible for the Liability to pay for such days.

 

Article 13

EQUITY COMPENSATION

 

Section 13.01.     SpinCo
Equity Incentive Plan. Prior to the Distribution, Parent shall cause SpinCo to adopt an equity incentive plan or program, to be effective
immediately prior to the Distribution (the “SpinCo Equity Incentive Plan”), and Parent shall approve the SpinCo Equity
Incentive Plan and forms of award agreements for use thereunder (the “SpinCo Award Agreement”) as the sole stockholder
of SpinCo.

 

Section 13.02.     Treatment
of Outstanding Parent Equity Awards. The Parties shall, and shall cause their respective Subsidiaries to, use commercially reasonable
efforts to take all actions necessary or appropriate so that each outstanding Parent Equity Award granted under any Parent Equity Plan
shall be adjusted as set forth in this Section 13.02 as of immediately prior to the Distribution.

 

(a)         Parent
Restricted Stock Units Held by Parent Employees, Former Parent Employees or Former SpinCo Employees. Each Parent Restricted Stock
Unit held by a Parent Employee, Former Parent Employee or Former SpinCo Employee that is outstanding as of immediately prior to the Distribution
Date shall be subject to the same terms and conditions after the Distribution Date as the terms and conditions applicable to such Parent
Restricted Stock Unit immediately prior to the Distribution Date; provided, however, that from and after the
Distribution Date, the number of shares of Parent Common Stock to which such Parent Restricted Stock Unit relates shall be equal to the
product, rounded up to the nearest whole number of shares, obtained by multiplying (i) the number of shares of Parent Common Stock
to which such Parent Restricted Stock Unit related immediately prior to the Distribution Date by (ii) the Parent Equity Award Ratio.

 

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(b)         Parent
Restricted Stock Units Held by SpinCo Employees. Each Parent Restricted Stock Unit held by a SpinCo Employee that is outstanding
as of immediately prior to the Distribution Date shall be converted into a SpinCo Restricted Stock Unit and shall otherwise be subject
to the same terms and conditions (including the applicable vesting schedule) after the Distribution Date as the terms and conditions
applicable to such Parent Restricted Stock Unit immediately prior to the Distribution Date; provided, however,
that from and after the Distribution Date, the number of shares of SpinCo Common Stock to which such SpinCo Restricted Stock Unit relates
shall be equal to the product, rounded up to the nearest whole number of shares, obtained by multiplying (i) the number of shares
of Parent Common Stock to which such Parent Restricted Stock Unit related immediately prior to the Distribution Date by (ii) the
SpinCo Equity Award Ratio.

 

(c)         Parent
Performance Share Units Held by Parent Employees, Former Parent Employees or Former SpinCo Employees. Each Parent Performance Share
Unit held by a Parent Employee, Former Parent Employee or Former SpinCo Employee that is outstanding as of immediately prior to the Distribution
Date shall be subject to the same terms and conditions (including the applicable vesting schedule and any performance conditions) after
the Distribution Date as the terms and conditions applicable to such Parent Performance Share Unit immediately prior to the Distribution
Date; provided, however, that from and after the Distribution Date (i) the target number of shares of Parent
Common Stock to which such Parent Performance Share Unit relates shall be equal to the product, rounded up to the nearest whole number
of shares, obtained by multiplying (A) the target number of shares of Parent Common Stock to which such Parent Performance Share
Unit related immediately prior to the Distribution Date by (B) the Parent Equity Award Ratio; and (ii) the performance conditions
applicable to each such Parent Performance Share Unit may be equitably adjusted, as determined by the Parent Compensation Committee,
to reflect the Distribution.

 

(d)         Parent
Performance Share Units Held by SpinCo Employees. Each Parent Performance Share Unit held by a SpinCo Employee that is outstanding
as of immediately prior to the Distribution Date shall be converted into a SpinCo Restricted Stock Unit subject solely to time-based
vesting conditions and subject to the same terms and conditions (including the applicable vesting schedule, but not any performance conditions)
after the Distribution Date as the terms and conditions applicable to such Parent Performance Share Unit immediately prior to the Distribution
Date; provided, however, that from and after the Distribution Date the number of shares of SpinCo Common Stock
to which such SpinCo Restricted Stock Unit relates shall be equal to the product, rounded up to the nearest whole number of shares, obtained
by multiplying (i) the applicable Performance Share Unit Conversion Amount by (ii) the SpinCo Equity Award Ratio.

 

(e)         Parent
Options Held by Parent Employees, Former Parent Employees or Former SpinCo Employees. Each Parent Option, whether vested or unvested,
held by a Parent Employee, Former Parent Employee or Former SpinCo Employee that is outstanding and unexercised as of immediately prior
to the Distribution Date shall be subject to the same terms and conditions after the Distribution Date as the terms and conditions applicable
to such Parent Option immediately prior to the Distribution Date; provided, however, that from and after the Distribution
Date: (i) the number of shares of Parent Common Stock subject to such Parent Option shall be equal to the product, rounded down
to the nearest whole number of shares, obtained by multiplying (A) the number of shares of Parent Common Stock subject to such Parent
Option immediately prior to the Distribution Date by (B) the Parent Equity Award Ratio; and (ii) the per share exercise price
of such Parent Option shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (A) the per share
exercise price of such Parent Option immediately prior to the Distribution Date by (B) the Parent Equity Award Ratio.

 

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(f)          Parent
Options Held by SpinCo Employees. Each Parent Option, whether vested or unvested, held by a SpinCo Employee that is outstanding as
of immediately prior to the Distribution Date shall be converted into a SpinCo Option, and shall otherwise be subject to the same terms
and conditions (including the applicable vesting schedule) after the Distribution Date as the terms and conditions applicable to such
Parent Option immediately prior to the Distribution Date; provided, however, that from and after the Distribution Date:
(i) the number of shares of SpinCo Common Stock subject to such SpinCo Option shall be equal to the product, rounded down to the
nearest whole number of shares, obtained by multiplying (A) the number of shares of Parent Common Stock subject to such Parent Option
immediately prior to the Distribution Date by (B) the SpinCo Equity Award Ratio; and (ii) the per share exercise price of such
SpinCo Option shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (A) the per share exercise
price of such Parent Option immediately prior to the Distribution Date by (B) the SpinCo Equity Award Ratio.

 

(g)         Parent
Restricted Stock Awards Held by Parent Employees, Former Parent Employees or Former SpinCo Employees. Each Parent Restricted Stock
Award held by a Parent Employee, Former Parent Employee or Former SpinCo Employee that is outstanding as of immediately prior to the
Distribution Date shall be subject to the same terms and conditions after the Distribution Date as the terms and conditions applicable
to such Parent Restricted Stock Award immediately prior to the Distribution Date; provided, however, that from
and after the Distribution Date, the number of shares of Parent Common Stock to which such Parent Restricted Stock Award relates shall
be equal to the product, rounded up to the nearest whole number of shares, obtained by multiplying (i) the number of shares of Parent
Common Stock to which such Parent Restricted Stock Award related immediately prior to the Distribution Date by (ii) the Parent Equity
Award Ratio. Following the Distribution Date, Parent shall be responsible for the payment or settlement of any accrued dividends with
respect to Parent Restricted Stock Awards held by Parent Employees, Former Parent Employees or Former SpinCo Employees, in accordance
with the terms of the applicable Parent Restricted Stock Award.

 

(h)         Parent
Restricted Stock Awards Held by SpinCo Employees. Each Parent Restricted Stock Award held by a SpinCo Employee that is outstanding
as of immediately prior to the Distribution Date shall be converted into a SpinCo Restricted Stock Award and shall otherwise be subject
to the same terms and conditions (including the applicable vesting schedule) after the Distribution Date as the terms and conditions
applicable to such Parent Restricted Stock Award immediately prior to the Distribution Date; provided, however,
that from and after the Distribution Date, the number of shares of SpinCo Common Stock to which such SpinCo Restricted Stock Award relates
shall be equal to the product, rounded up to the nearest whole number of shares, obtained by multiplying (i) the number of shares
of Parent Common Stock to which such Parent Restricted Stock Award related immediately prior to the Distribution Date by (ii) the
SpinCo Equity Award Ratio. Following the Distribution Date, SpinCo shall be responsible for the payment or settlement of any accrued
dividends with respect to Parent Restricted Stock Awards (or the SpinCo Restricted Stock Awards into which they were converted) held
by SpinCo Employees, in accordance with the terms of the applicable Parent Restricted Stock Award.

 

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Section 13.03.     Parent
ESPP. The administrator of the Parent ESPP shall take all actions necessary and appropriate to provide that (a) SpinCo Employees
who participate in the Parent ESPP shall not be eligible to participate in any future Offering Periods that begin following the Local
Transfer Date and (b) any cash remaining in the Parent ESPP account of any SpinCo Employee after the Local Transfer Date shall
be refunded to such SpinCo Employee without interest as soon as administratively practicable.

 

Section 13.04.     Tax
Reporting and Withholding for Equity-Based Awards. Unless otherwise required by applicable Law, (a) Parent (or one of its Subsidiaries)
will be responsible for all income, payroll, fringe benefit, social security, payment-on-account and other Tax reporting relating to income
of or otherwise owed by Parent Employees or Former Parent Employees from equity-based awards granted to such employees by Parent, (b) SpinCo
(or one of its Subsidiaries) will be responsible for all income, payroll, fringe benefit, social security, payment-on-account and other
Tax reporting related to or otherwise owed on income of SpinCo Employees or Former SpinCo Employees from equity-based awards granted to
such employees by SpinCo, including equity-based awards described in this Article 13, (c) Parent (or one of its Subsidiaries)
shall be responsible for remitting applicable Tax withholdings and related payments for equity awards granted by Parent and held by Parent
Employees or Former Parent Employees to each applicable taxing authority and (d) SpinCo (or one of its Subsidiaries) shall be responsible
for remitting applicable Tax withholdings and related payments for equity awards granted by SpinCo and held by SpinCo Employees or Former
SpinCo Employees, including equity-based awards described in this Article 13 to each applicable taxing authority. In all cases,
Parent and SpinCo (and any applicable Parent Subsidiary and SpinCo Subsidiary) agree to cooperate to ensure that such obligations are
met. Parent and SpinCo agree to enter into any necessary agreements regarding the subject matter of this Section 13.04 to
enable Parent and SpinCo (and any applicable Parent and SpinCo Subsidiaries) to fulfill their respective obligations hereunder and under
applicable Law.

 

Section 13.05.     Parent
and SpinCo Income Tax Deductions in Respect of Certain Equity Awards and Compensation. Unless otherwise required by applicable Law,
solely the member of the Group for which the relevant individual is currently employed or, if such individual is not currently employed
by a member of the Group, was most recently employed, in either case, at the time of the vesting, exercise, disqualifying disposition,
payment or other relevant taxable event, as appropriate, in respect of equity awards and other compensation shall be entitled to claim
any income tax deduction in respect of such equity awards and other compensation on its respective tax return associated with such event.

 

Section 13.06.     Compliance.
For purposes of this Article 13, and notwithstanding the use of the phrase “same terms” or anything else to the
contrary throughout this article, Parent and SpinCo reserve the right to impose other requirements or different terms and conditions on
any Parent or SpinCo equity awards and Parent or SpinCo stock incentive compensation plans, or to treat the equity awards in a different
manner, to the extent that either of them determines it is necessary or advisable for legal or administrative reasons, including for compliance
with non-U.S. laws and regulations and to mitigate the potential impact of non-U.S. tax consequences on the equity awards.

 

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Article 14

NON-U.S. EMPLOYEES

 

Section 14.01.     Treatment
of Non-U.S. Employees. Except as otherwise agreed by the Parties or as set forth in this Agreement, Parent Employees and SpinCo Employees
who reside outside of the United States or are otherwise subject to non-U.S. Law (“Non-U.S. Employees”) and their related
benefits and Liabilities shall be treated under this Agreement in the same manner as the Parent Employees and SpinCo Employees, respectively,
who are residents of the United States and are not subject to non-U.S. Law; provided that, notwithstanding anything to the contrary
in this Agreement, all actions taken with respect to such Non-U.S. Employees shall be subject to and accomplished in accordance with applicable
Law in the custom of the applicable jurisdictions and may be effectuated by implementation of a Local Agreement.

 

Article 15

COOPERATION; ACCESS TO INFORMATION; LITIGATION; CONFIDENTIALITY

 

Section 15.01.     Cooperation.
Following the date of this Agreement, the Parties shall, and shall cause their respective Subsidiaries to, use commercially reasonable
efforts to cooperate with respect to any employee compensation or benefits matters that either Party reasonably determines require the
cooperation of the other Party in order to accomplish the objectives of this Agreement. Without limiting the generality of the preceding
sentence, the Parent Group and the SpinCo Group shall cooperate in connection with (a) any audits of any Benefit Plan with respect
to which such Party may have Information, (b) any audits of their respective payroll services (whether by a Governmental Authority
in the United States or otherwise) in connection with the services provided by one Party to the other Party and (c) the notification
and consultation with labor unions and other employee representatives of employees of the Parent Group and the SpinCo Group. With respect
to each Benefit Plan, the obligations of the Parent Group and the SpinCo Group to cooperate pursuant to this Section 15.01
or any other provision of this Agreement shall remain in effect until the latest of (i) the date on which all audits of such Benefit
Plan with respect to which a Party may have Information have been completed, (ii) the date the applicable statute of limitations
with respect to such audits has expired and (iii) the date on which the Parent Group discharges all obligations to SpinCo Employees,
Former SpinCo Employees and their respective beneficiaries under such Benefit Plan.

 

Section 15.02.     Access
to Information; Privilege; Confidentiality. Except as would be inconsistent with Section 15.01 or any other provision
of this Agreement relating to cooperation, Article VII of the Separation Agreement is hereby incorporated into this Agreement mutatis
mutandis.

 

Article 16

TERMINATION

 

Section 16.01.     Termination.
This Agreement may be terminated by Parent at any time, in its sole discretion, prior to the Distribution; provided, however,
that this Agreement shall automatically terminate upon the termination of the Separation Agreement in accordance with its terms.

 

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Section 16.02.     Effect
of Termination. In the event of any termination of this Agreement prior to the Distribution, none of the Parties (or any of its directors
or officers) shall have any Liability or further obligation to any other Party under this Agreement.

 

Article 17

MISCELLANEOUS

 

Section 17.01.     Incorporation
of Indemnification Provisions of Separation Agreement. In addition to the specific indemnification provisions in this Agreement, Article VI
of the Separation Agreement is hereby incorporated into this Agreement mutatis mutandis.

 

Section 17.02.     Additional
Indemnification. If the Parties determine that the SpinCo Group is unable to establish any SpinCo Benefit Plan as of the Local Transfer
Date (or the applicable Welfare Plan Date or such other date specified in this Agreement, if applicable) that it is required under this
Agreement to establish by such date, then the SpinCo Group shall indemnify, defend and hold harmless each of the Parent Indemnitees from
and against any and all Liabilities of the Parent Indemnitees relating to, arising out of or resulting from participation by any SpinCo
Employee or Former SpinCo Employee on or after the Local Transfer Date (or the applicable Welfare Plan Date) in any such Parent Benefit
Plan due to the failure to timely establish such SpinCo Benefit Plan or Plans. In addition, the SpinCo Group shall indemnify, defend and
hold harmless each of the Parent Indemnitees from and against any and all Liabilities of the Parent Indemnitees relating to, arising out
of or resulting from any claim by any SpinCo Employee or Former SpinCo Employee that Parent or any other member of the Parent Group is
a “joint employer” or “co-employer” (or term of similar meaning under applicable Law) with SpinCo or any other
member of the SpinCo Group or any such SpinCo Employee or Former SpinCo Employee on or after the Local Transfer Date (including, except
as otherwise specifically provided in this Agreement or the TSA, with respect to a claim that any of the foregoing are entitled to participate
in any Parent Benefit Plan at any time on or after the Local Transfer Date), except to the extent that any member of the Parent Group
has taken affirmative and substantial action to treat a SpinCo Employee as a Parent Employee under the terms of this Agreement.

 

Section 17.03.     Further
Assurances. Article IX of the Separation Agreement is hereby incorporated into this Agreement mutatis mutandis.

 

Section 17.04.     Administration.
SpinCo hereby acknowledges that Parent has provided or will provide administration services for certain SpinCo Benefit Plans, and SpinCo
agrees to assume sole responsibility for the administration and administration costs of such plans and each other SpinCo Benefit Plan.
The Parties shall cooperate in good faith to complete such transfer of responsibility on commercially reasonable terms and conditions
effective no later than the Local Transfer Date, the applicable Welfare Plan Date or the Workers’ Compensation Claim Date.

 

Section 17.05.     Third-Party
Beneficiaries. Except as otherwise may be provided in the Separation Agreement with respect to the rights of any Parent Indemnitee
or SpinCo Indemnitee, (a) no provisions of this Agreement shall be construed as a limitation on the right of the Parent Group or
the SpinCo Group to amend any Benefit Plan or terminate its participation therein that the Parent Group or the SpinCo Group would otherwise
have under the terms of such Benefit Plan or otherwise, (b) the provisions of this Agreement are solely for the benefit of the Parties
and are not intended to confer any rights or remedies hereunder upon any Person except the Parties and (c) there are no third-party
beneficiaries of this Agreement, and this Agreement shall not provide any third party with any remedy, claim, liability, reimbursement,
cause of action or other right. Notwithstanding anything to the contrary set forth in this Agreement, no provisions of this Agreement
shall be deemed to guarantee employment for any period of time for, or preclude the ability of Parent or any member of the Parent Group
or SpinCo or any member of the SpinCo Group to terminate any employee or individual service provider for any reason.

 

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Section 17.06.     Employment
Tax Reporting Responsibility. To the extent applicable, the Parties hereby agree to follow the standard procedure for U.S. employment
tax withholding as provided in Section 5 of Rev. Proc. 2004-53, I.R.B. 2004-35.

 

Section 17.07.     Data
Privacy. The Parties agree that any applicable data privacy Laws and any other obligations of the SpinCo Group and the Parent Group
to maintain the confidentiality of any Information relating to employees in accordance with applicable Law shall govern the disclosure
of Information relating to employees among the Parties under this Agreement. Parent and SpinCo shall use commercially reasonable efforts
to ensure that they each have in place appropriate technical and organizational security measures to protect the personal data of the
SpinCo Employees and Former SpinCo Employees. Additionally, each Party shall sign any documentation as may be required to comply with
applicable data privacy Laws.

 

Section 17.08.     Section 409A.
The Parent Group and the SpinCo Group shall cooperate in good faith and use commercially reasonable efforts to ensure that the transactions
contemplated by the Separation Agreement and the Ancillary Agreements, including this Agreement, will not result in adverse tax consequences
under Section 409A of the Code to any Parent Employee, Former Parent Employee, SpinCo Employee or Former SpinCo Employee (or any
of their respective beneficiaries) in respect of their respective benefits under any Benefit Plan.

 

Section 17.09.     Confidentiality.
Section 7.09 of the Separation Agreement is hereby incorporated into this Agreement mutatis mutandis.

 

Section 17.10.     Employment
Records.  As of the Local Transfer Date, the Parent Group shall provide to the SpinCo Group employment records for SpinCo Employees
and Former SpinCo Employees or copies thereof to the extent such records or copies are required to be provided to the SpinCo Group under
applicable Law or the terms of this Agreement or the applicable Local Agreement or as otherwise agreed between the Parties, and the SpinCo
Group shall accept and take delivery of such records or copies as of the Local Transfer Date. The SpinCo Group shall indemnify and hold
harmless the Parent Group from and against any and all losses incurred as a result of claims or threatened claims by any SpinCo Employee
or Former SpinCo Employee relating to the disclosure or use of the employment records for any non-employment-related purpose.

 

Section 17.11.     Additional
Provisions. Article XI of the Separation Agreement is hereby incorporated into this Agreement mutatis mutandis.

 

[SIGNATURE PAGE TO FOLLOW]

 

    33 

     

    

 

IN WITNESS WHEREOF, the parties have caused this
Agreement to be executed by their duly authorized representatives.

 

	 	International Business Machines Corporation

 

		By:	

	 	 	Name:

                                  Title:

 

	 	Kyndryl Holdings, Inc.

 

		By:	

	 	 	Name:

                                  Title:

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