Document:

Novation and Assumption Agreement among McDermott International, Inc.

 Exhibit 10.8 

GROUP IV AGREEMENT 

NOVATION AND ASSUMPTION AGREEMENT 

by and among 

MCDERMOTT INTERNATIONAL, INC., 

a Panamanian corporation, 

and 

BABCOCK & WILCOX HOLDINGS, INC., 

a corporation organized and existing under the laws of the State of Delaware, 

and 
 BOUDIN
INSURANCE COMPANY, LTD., a Bermuda company 
 and 

CREOLE INSURANCE COMPANY, LTD., a Bermuda company, 

RECITALS 

THIS NOVATION AND ASSUMPTION AGREEMENT (the “Agreement”), is entered into and effective as of
May 18, 2010 (the “Effective Date”) by and among MCDERMOTT INTERNATIONAL, INC., a Panamanian corporation (“MII”), BABCOCK & WILCOX HOLDINGS, INC., a Delaware corporation (“B&W”),
to be succeeded by The Babcock & Wilcox Company, a Delaware corporation, after the effective time of the Merger, CREOLE INSURANCE COMPANY, LTD., a Bermuda company (“Creole”), and BOUDIN INSURANCE COMPANY, LTD., a Bermuda
company (“Boudin”) and, solely with respect to Sections 2(a)(ii) and 2(c)(ii), respectively, the other MII Entities signatory hereto and the other B&W Entities signatory hereto. 

WHEREAS, Boudin or Creole have issued the Existing Policies to one or more MII Entities and one or more B&W
Entities; and 
 WHEREAS, pursuant to the Existing Policies, Boudin and Creole are obligated, among other
things, to pay or reimburse MII Entities and/or B&W Entities for certain obligations; and 
 WHEREAS,
B&W, prior to the Separation, is a wholly owned Subsidiary of MII; and 
 WHEREAS, MII intends to
spin-off B&W from MII through a dividend of common stock of B&W to the shareholders of MII (the “Separation”); and 

WHEREAS, in connection with the Separation: (a) Boudin desires to transfer and Creole desires to assume any
Transferable Boudin Policies insofar as such policies relate to B&W Entities; and (b) Creole desires to transfer and Boudin desires to assume any Transferable Creole Policies insofar as such policies relate to MII Entities; and 

WHEREAS, MII and B&W are parties, together with ACE American Insurance Company and certain of its affiliates
(collectively, “ACE”) to a certain Assumption and Loss Allocation Agreement (the “ALAA”) that, among other things, assists in effecting the Separation by identifying certain MII Obligations and certain B&W
Obligations and allocating liability and responsibility therefor; and 

 WHEREAS, certain of the liabilities of MII and/or B&W and their
respective Affiliates that are insured by the Existing Policies under this Agreement are MII Obligations and/or B&W Obligations under the ALAA, and the parties desire that the allocation of liability in this Agreement conform to that in the ALAA
insofar as such overlap may exist; and 
 WHEREAS, each of MII and B&W, each for itself and for its
respective Subsidiaries, is willing to consent to the transfer, assumption, and novation of the matters set forth herein, subject to the terms and conditions of this Agreement; 

NOW, THEREFORE, in consideration of the mutual promises set out herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 
 1.
Definitions. The following terms used herein, including in the recitals and Exhibits hereto, shall have the following meanings: 

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

“Affiliate” means, with respect to any specified Person, any other Person that directly,
or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the specified Person. For this purpose “control” of a Person means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of such Person, whether through ownership of voting securities, by contract or otherwise. 

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

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

“Assumption Time” means midnight (New York time) on the Effective Date. 

“B&W” has the meaning set forth in the recitals to this Agreement. 

“B&W Entity” means B&W and each of the entities listed on Exhibit I
attached hereto and made a part hereof. It is acknowledged and understood that, from and after the effectiveness of the Separation, the B&W Entities will not be Subsidiaries or Affiliates of MII or any of the other MII Entities. 

“B&W Obligations” shall have the meaning ascribed to such term in the ALAA and shall
be interpreted under this Agreement to conform to interpretations under the ALAA. 

“Boudin Assumption and Novation” has the meaning set forth in Section 2(a)(i).

 “Creole Assumption and Novation” has the meaning set forth in
Section 2(c)(i). 
 “Effective Date” has the meaning set forth in the
recitals to this Agreement. 
 “Existing Policies” means the Transferable Boudin
Policies, the Transferable Creole Policies, the Wholly Retained Boudin Policies, and the Wholly Retained Creole Policies. 

“Insured,” as a noun in reference to one or more insurance policies, means any Person who
is insured by such policy or policies, regardless of whether such Person is designated an “Insured” or a “Named Insured” in such policy or is otherwise expressly identified therein. 

“Insured B&W Obligation” means an obligation of Creole or Boudin under the Existing
Policies that arises from an obligation to ACE or its Affiliates that is a B&W Obligation under the ALAA. 

“Insured MII Obligation” means an obligation of Creole or Boudin under the Existing
Policies that arises from an obligation to ACE or its Affiliates that is an MII Obligation under the ALAA. 

“Insurer,” as a noun in reference to one or more insurance policies, means the Person
identified in such policy or policies as the insurer. 
 “Inter-Captive Reinsurance
Agreements” has the meaning set forth in Section 2(e). 
  

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 “Master Separation Agreement” means a
Master Separation Agreement to be entered into between MII and The Babcock & Wilcox Company in connection with the Separation. 

“Merger” means the merger, to occur after the date hereof, of Babcock & Wilcox
Holdings, Inc., a Delaware corporation, with and into The Babcock & Wilcox Company, a Delaware corporation and the surviving entity of such Merger. 

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

“MII Entity” means MII and each of the entities listed on Exhibit II attached
hereto and made a part hereof. It is acknowledged and understood that, from and after the effectiveness of the Separation, the MII Entities will not be Subsidiaries or Affiliates of B&W or any of the other B&W Entities. 

“MII Obligations” shall have the meaning ascribed to such term in the ALAA and shall be
interpreted under this Agreement to conform to interpretations under the ALAA. 

“Organizational Documents” means (a) with respect to any corporation, its
certificate or articles of incorporation or organization and its bylaws, (b) with respect to any limited partnership, its certificate of limited partnership and its partnership agreement, (c) with respect to any general partnership, its
partnership agreement, and (d) with respect to any limited liability company, its certificate or articles of formation or organization and its operating agreement or other organizational documents. 

“Parties” means MII, B&W, Boudin and Creole collectively (and each individually is a
“Party”). 
 “Person” means an individual, a partnership, a
corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, a union, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof. 

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

“Subsidiary” means, with respect to any specified Person, any corporation, partnership,
limited liability company, joint venture or other organization, whether incorporated or unincorporated, of which at least a majority of the securities or interests having by the terms thereof ordinary voting power to elect at least a majority of the
board of directors or others performing similar functions with respect to such corporation or other organization is directly or indirectly owned or controlled by such specified Person or by any one or more of its Subsidiaries, or by such specified
Person and one or more of its Subsidiaries. 
 “Transferable Boudin Policy”
means each insurance policy issued prior to the date hereof by Boudin on which a B&W Entity is named or otherwise identified as an insured (including without limitation by being within a generic description such as “affiliates” or
“subsidiaries”). 
 “Transferable Creole Policy” means each insurance
policy issued prior to the date hereof by Creole on which an MII Entity is named or otherwise identified as an insured (including without limitation by being within a generic description such as “affiliates” or “subsidiaries”).

 “Transferred Boudin Policy” means, as to any Transferable Creole Policy after
the Assumption Time and giving effect to this Agreement, the aggregate of (a) all rights, duties, and obligations of Boudin vis-à-vis the MII Entities that were, prior to the Assumption Time, Insureds of Creole under such Transferable
Creole Policy, and (b) all rights, duties, and obligations vis-à-vis Boudin of the MII Entities that were, prior to the Assumption Time, Insureds of Creole under such Transferable Creole Policy. 

“Transferred Creole Policy” means, as to any Transferable Boudin Policy after the
Assumption Time and giving effect to this Agreement, the aggregate of (a) all rights, duties, and obligations of Creole vis-à-vis the B&W Entities that were, prior to the Assumption Time, Insureds of Boudin under such Transferable
Boudin Policy, and (b) all rights, duties, and obligations vis-à-vis Creole of the B&W Entities that were, prior to the Assumption Time, Insureds of Boudin under such Transferable Boudin Policy. 

“Wholly Retained Boudin Policy” means an insurance policy issued by Boudin to one or more
MII Entities (and possibly others) that is not a Transferable Boudin Policy. 
  

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 “Wholly Retained Creole Policy” means an
insurance policy issued by Creole to one or more B&W Entities (and possibly others) that is not a Transferable Creole Policy. 

2. Assumption. 

(a) Boudin Assumption and Novation. Notwithstanding anything in any Transferable Creole Policy to
the contrary, and effective as of the Assumption Time, Creole hereby transfers and assigns, and Boudin hereby assumes by novation, (x) so much of each Transferable Creole Policy as relates to MII or any MII Entity as an Insured thereunder; and
(y) any and all obligations of Creole under any of the Existing Policies that arise from Insured MII Obligations. In connection with and implementation of such transfer, assignment, and novation: 

(i) Boudin hereby agrees to observe, pay, perform, satisfy, fulfill and discharge any and all now existing
and hereafter arising duties, terms, provisions, covenants, obligations and liabilities of Creole under the Transferable Creole Policies and with respect to the Insured MII Obligations, both insofar as transferred above (the “Boudin
Assumption and Novation”); and 
 (ii) Each MII Entity that is a signatory hereto hereby
consents to, and agrees to give full force and effect to, the Boudin Assumption and Novation. From and after the Assumption Time, Boudin and not Creole shall be treated as the applicable MII Entity’s contractual counterparty with respect to the
contracts and mutual rights and obligations subject to the Boudin Assumption and Novation. Without limitation, each MII Entity: 
  

	 	a	 may enforce against Boudin its rights under the Transferable Creole Policies or with respect to any Insured MII Obligation to the same extent such
Person could, prior to the Boudin Assumption and Novation, enforce such rights against Creole, and 

  

	 	b	 shall perform for the benefit of Boudin any obligation under the Transferable Creole Policies or with respect to any Insured MII Obligation to the
same extent such Person was obligated, prior to the Boudin Assumption and Novation, to perform such obligations for the benefit of Creole, and 

  

	 	c	 releases Creole from its obligation to observe, pay, perform, satisfy, fulfill or discharge any obligations under any Transferable Creole Policy or
with respect to any Insured MII Obligation. 

 (iii) With respect to each
Transferable Creole Policy that is subject to the Boudin Assumption and Novation, the aggregate of rights, duties, and obligations set forth in subsections (a)(i) and (a)(ii) above shall be treated as the Transferred Boudin Policy relating to such
Transferable Creole Policy. 
 (b) No Transfer or Novation of Creole Obligations to B&W
Entities. Except to the extent (which the Parties do not expect) that the Wholly Retained Creole Policies are determined to cover Insured MII Obligations notwithstanding the absence of any MII Entity as an Insured thereunder, the Wholly Retained
Creole Policies are not novated or otherwise affected by the Boudin Assumption and Novation. The Transferable Creole Policies are novated to Boudin as set forth above only to the extent that one or more MII Entities is an insured thereunder. To the
extent that B&W Entities are insureds under the Transferable Creole Policies, the Parties acknowledge that Creole and not Boudin shall continue to observe, pay, perform, satisfy, fulfill and discharge any and all now existing and hereafter
arising duties, terms, provisions, covenants, obligations and liabilities of the Insurer under the Transferable Creole Policies. The Parties further acknowledge that Creole and not Boudin shall continue to observe, pay, perform, satisfy, fulfill and
discharge any and all now existing and hereafter arising duties, terms, provisions, covenants, obligations and liabilities of the Insurer with respect to the Insured B&W Obligations. 

(c) Creole Assumption and Novation. Notwithstanding anything in any Transferable Boudin Policy to
the contrary, and effective as of the Assumption Time, Boudin hereby transfers and assigns, and Creole hereby assumes by novation, (x) so much of each Transferable Boudin Policy as relates to B&W or any

  

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B&W Affiliate as an Insured thereunder; and (y) any and all obligations of Boudin under any of the Existing Policies that arise from Insured B&W Obligations. In connection with and
in implementation of such transfer, assignment, and novation: 
 (i) Creole hereby agrees to
observe, pay, perform, satisfy, fulfill and discharge any and all now existing and hereafter arising duties, terms, provisions, covenants, obligations and liabilities of Boudin under the Transferable Boudin Policies and with respect to the Insured
B&W Obligations, both insofar as transferred above (the “Creole Assumption and Novation”); and 

(ii) Each B&W Entity that is a signatory hereto hereby consents to, and agrees to give full force and
effect to, the Creole Assumption and Novation. From and after the Assumption Time, Creole and not Boudin shall be treated as the B&W Entity’s contractual counterparty with respect the contracts and mutual rights and obligations subject to
the Creole Assumption and Novation. Without limitation, each B&W Entity: 
  

	 	a	 may enforce against Creole its rights under the Transferable Boudin Policies or with respect to any Insured B&W Obligation to the same extent
such Person could, prior to the Creole Assumption and Novation, enforce such rights against Boudin, and 

  

	 	b	 shall perform for the benefit of Creole any obligation under the Transferable Boudin Policies or with respect to any Insured B&W Obligation to
the same extent such Person was obligated, prior to the Creole Assumption and Novation, to perform such obligations for the benefit of Boudin, and 

  

	 	c	 releases Boudin from its obligation to observe, pay, perform, satisfy, fulfill or discharge any obligations under any Transferable Boudin Policy or
with respect to any Insured B&W Obligation. 

 (iii) With respect to each
Transferable Boudin Policy that is subject to the Creole Assumption and Novation, the aggregate of rights, duties, and obligations set forth in subsections (c)(i) and (c)(ii) above shall be treated as the Transferred Creole Policy relating to such
Transferable Boudin Policy. 
 (d) No Transfer or Novation of Boudin Obligations to MII
Entities. Except to the extent (which the Parties do not expect) that the Wholly Retained Boudin Policies are determined to cover Insured B&W Obligations notwithstanding the absence of any B&W Entity as an Insured thereunder, the Wholly
Retained Boudin Policies are not novated or otherwise affected by the Creole Assumption and Novation. The Transferable Boudin Policies are novated to Creole as set forth above only to the extent that one or more B&W Entities is an insured
thereunder. To the extent that MII Entities are insureds under the Transferable Boudin Policies, the Parties acknowledge that Boudin and not Creole shall continue to observe, pay, perform, satisfy, fulfill and discharge any and all now existing and
hereafter arising duties, terms, provisions, covenants, obligations and liabilities of the Insurer under the Transferable Boudin Policies. The Parties further acknowledge that Boudin and not Creole shall continue to observe, pay, perform, satisfy,
fulfill and discharge any and all now existing and hereafter arising duties, terms, provisions, covenants, obligations and liabilities of the Insurer with respect to the Insured MII Obligations. 

(e) Commutation and Release of Mutual Reinsurance by Boudin and Creole. Effective at the Assumption
Time, Creole and Boudin do hereby commute any and all contracts of reinsurance by which one of them reinsured the other (the “Inter-Captive Reinsurance Agreements”). In furtherance of such commutation, and also effective at the
Assumption Time, Creole and Boudin do hereby fully release and discharge one another from and against any past, present, or future liabilities or obligations, known or unknown, arising under the Inter-Captive Reinsurance Agreements. 

(f) No Effect on Aggregate Limits of Liability. For the avoidance of doubt, it is understood and
agreed that the aggregate liability of Creole and Boudin, taken together, is not intended to be, and shall be deemed not to be, increased by implementation of this Agreement. In particular, and without limitation, to the extent that any Transferable
Creole Policy (or Transferable Boudin Policy) contains an aggregate limit of liability, 
  

 5 

 
that aggregate limit of liability shall, after the Assumption Time, apply as a single, joint aggregate limit of liability as between (i) the resulting Transferred Boudin Policy (or
Transferred Creole Policy) and (ii) the portions of the Transferable Creole Policy (or Transferable Boudin Policy) that are retained pursuant to Section 2(b) (or Section 2(d)) above. Disputes as to priority of claims and/or allocation
of the single, joint aggregate limit of liability shall be resolved pursuant to Section 12 hereof. 
 3.
Amendments. Neither this Agreement nor any provision hereof may be amended, changed, waived, discharged or terminated except by a written instrument signed by each Party. 

4. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors and permitted assigns. Neither this Agreement nor any right or obligation hereunder may be assigned or conveyed by any Party without the prior written consent of the other Parties, which consent shall not be unreasonably
withheld. 
 5. No Waiver. The failure or refusal by any Party to exercise any rights granted
hereunder shall not constitute a waiver of such rights or preclude the subsequent exercise thereof, and no oral communication shall be asserted as a waiver of any such rights hereunder unless such communication shall be confirmed in a writing
plainly expressing an intent to waive such rights and signed by the Party against whom such waiver is asserted. 

6. Counterparts. This Agreement may be executed in any number of counterparts each of which when so
executed and delivered shall constitute an original, but such counterparts together shall constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile transmission shall constitute effective
execution and delivery of this Agreement as to the Parties and may be used in lieu of the original Agreement for all purposes. Signatures of the Parties and other Persons signatory hereto transmitted by facsimile shall be deemed to be their original
signatures for all purposes. 
 7. No Third Party Beneficiary. This Agreement shall not be deemed
to give any right or remedy to any third party whatsoever unless otherwise specifically granted hereunder. 

8. Parties’ Representations. As of the Effective Date, each of the Parties expressly represents on its
own behalf: (a) it is an entity in good standing in its jurisdiction of organization; (b) it has all requisite corporate power and authority to enter into this Agreement, and to perform its obligations hereunder; (c) the execution and
delivery by it of this Agreement, and the performance by it of its obligations under this Agreement, have been duly authorized by all necessary corporate or other action; (d) this Agreement, when duly executed and delivered by it, and subject
to the due execution and delivery hereof by the other Parties, will be a valid and binding obligation of it, enforceable against it, its successors and permitted assigns, in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles; (e) the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated
hereby in accordance with the respective terms and conditions hereof will not (i) violate any provision of its Organizational Documents, (ii) violate any applicable order, judgment, injunction, award or decree of any court, arbitrator or
governmental or regulatory body against it, or binding upon it, or any agreement with, or condition imposed by, any governmental or regulatory body, foreign or domestic, binding upon it as of the date hereof, or (iii) violate any agreement,
contract, obligation, promise or undertaking that is legally binding and to which it is a party or by which it is bound; and (f) the signatory hereto on behalf of it is duly authorized and legally empowered to enter into this Agreement on its
behalf. 
  

 6 

 9. Notices. Any and all notices, requests, approvals,
authorizations, consents, instructions, designations and other communications that are required or permitted to be given pursuant to this Agreement shall be in writing and may be given either by personal delivery, first class prepaid post (airmail
if to another country) or by internationally recognized overnight delivery service to the following address, or to such other address and recipient as such Party may have notified in accordance with the terms of this section as being its address or
recipient for notification for the purposes of this Agreement: 
  

					
	 If to Boudin:
	  	Boudin Insurance Company, Ltd., c/o McDermott International, Inc.
		  	 757 N. Eldridge Parkway

Houston, Texas 77079

		  	Attention:	  	VP and Chief Risk Officer (with copy to General Counsel)
			
		  	Telephone:	  	281-870-5785
		  	Telecopier:	  	281-870-5923
		  	Electronic Mail:	  	twoodard@mcdermott.com
		
		  	with a copy to:
		  	 Boudin Insurance Company, Ltd.

Cedar House
 41 Cedar Avenue

P.O. Box HM 1838
 Hamilton HM HX
Bermuda
 Bermuda

		  	Fax	  	(441) 295-3982
		  	Telephone:	  	281-870-5476
		  	Telecopier:	  	281-870-5923
		  	Electronic Mail:	  	cjryan@mcdermott.com
		
	 If to any MII Entity:
	  	 McDermott International, Inc.

757 N. Eldridge Parkway
 Houston, Texas 77079

		  	Attention:	  	VP and Chief Risk Officer (with copy to General Counsel)
			
		  	Telephone:	  	281-870-5785
		  	Telecopier:	  	281-870-5923
		  	Electronic Mail:	  	twoodard@mcdermott.com
		
	 If to Creole:
	  	Creole Insurance Company, Ltd.
		
		  	Prior to the Separation:
		
		  	 Creole Insurance Company, Ltd., c/o Babcock & Wilcox Holdings, Inc.

800 Main Street
 Lynchburg, Virginia
24504

		  	Attention:	  	Director, Risk Management (with copy to General Counsel)
		  	Telephone:	  	434-522-6800
		
		  	with a copy to:
		  	 McDermott International, Inc.

777 N. Eldridge Parkway
 Houston,
Texas 77079

		  	Attention:	  	Director, Risk Management (with copy to General Counsel)

 

 7 

					
		  	with an additional copy to:
		  	 Creole Insurance Company, Ltd.

Cedar House
 41 Cedar Avenue

P.O. Box HM 1838
 Hamilton HM HX
Bermuda
 Bermuda

		  	Fax	  	(441) 295-3982
		  	Telephone:	  	281-870-5476
		  	Telecopier:	  	281-870-5923
		  	Electronic Mail:	  	cjryan@mcdermott.com
		
		  	On and After the Separation:
		
		  	 The Babcock & Wilcox Company

The Harris Building
 13024 Ballantyne Corporate
Place, Suite 700
 Charlotte, North Carolina

		  	Attention:	  	Director, Risk Management (with copy to General Counsel)
		
		  	with a copy to:
		  	 Creole Insurance Company, Ltd.

Cedar House
 41 Cedar Avenue

P.O. Box HM 1838
 Hamilton HM HX
Bermuda
 Bermuda

		  	Fax	  	(441) 295-3982
		  	Telephone:	  	281-870-5476
		  	Telecopier:	  	281-870-5923
		  	Electronic Mail:	  	cjryan@mcdermott.com
		
	 If to any B&W Entity:
	  	Prior to the Separation:
		
		  	 Babcock & Wilcox Holdings, Inc.

800 Main Street
 Lynchburg, Virginia
24504

		  	Attention:	  	Director, Risk Management (with copy to General Counsel)
		  	Telephone:	  	434-522-6800
			
		  	with a copy to:	  	
		  	 McDermott International, Inc.

777 N. Eldridge Parkway
 Houston,
Texas 77079

		  	Attention:	  	Director, Risk Management (with copy to General Counsel)
			
		  	Telephone:	  	281-870-5476
		  	Telecopier:	  	281-870-5923
		  	Electronic Mail:	  	cjryan@mcdermott.com
		
		  	On and After the Separation:
		
		  	 The Babcock & Wilcox Company

The Harris Building
 13024 Ballantyne Corporate
Place, Suite 700
 Charlotte, North Carolina

		  	Attention:	  	Director, Risk Management (with copy to General Counsel)

  

 8 

 Any notice or communication to any Person shall be deemed to be received by that Person:

 (A) upon personal delivery; or 

(B) upon receipt if sent by mail or courier. 

10. Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws
of the Commonwealth of Pennsylvania without regard to those provisions concerning conflicts of laws that would result in the application of the laws of any other jurisdiction. 

11. Entire Agreement. THIS AGREEMENT CONSTITUTES THE ENTIRE AGREEMENT AMONG ALL OF THE PARTIES WITH RESPECT
TO THE TRANSFERS, ASSUMPTIONS, AND NOVATIONS DESCRIBED HEREIN AND SUPERSEDES ALL OTHER PRIOR AGREEMENTS AND UNDERSTANDINGS, BOTH WRITTEN AND ORAL, WITH RESPECT TO THE SUBJECT MATTER HEREOF. SOLELY FOR INTERPRETATION PURPOSES, THE PARTIES ACKNOWLEDGE
THAT THIS AGREEMENT IS INTENDED TO BE READ TOGETHER WITH THE ALAA, AND THE PARTIES FURTHER ACKNOWLEDGE THE CONTROLLING NATURE OF THE ALAA WITH RESPECT TO DISPUTE RESOLUTION, AS SET FORTH IN THE FOLLOWING PARAGRAPH. 

12. Dispute Resolution. Any and all disputes arising out of this Agreement shall be resolved in accordance
with the procedures set for in the Master Separation Agreement (or, in the event the Master Separation Agreement is not entered into by MII and The Babcock & Wilcox Company, in accordance with the procedures set forth in the draft thereof
dated as of April 28, 2010). Issues as to whether a given obligation is an Insured B&W Obligation or an Insured MII Obligation shall be resolved as set forth in the ALAA, which resolution shall be binding for all purposes of this Agreement,
notwithstanding (by way of example only) any assertion that the putative Insured B&W Obligation arose under a Wholly Retained Boudin Policy or the putative Insured MII Obligation arose under a Wholly Retained Creole Policy, or any other
assertion that the terms of this Agreement prohibit the allocation reached under the ALAA. Any such assertions may be made, to the extent appropriate, in connection with the dispute resolution under the ALAA but may not be made as a basis for
challenging such resolution. 
 13. Severability. If any term or other provision of this Agreement
or the Exhibits attached hereto is determined by a nonappealable decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any
term or other provision is invalid, illegal or incapable of being enforced, the court, administrative agency or arbitrator shall interpret this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable
manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable.

 14. Rules of Construction. The definitions of terms used herein shall apply equally to the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall
be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of
or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified, (b) any reference herein to any
law shall be construed as referring to such law as amended, modified, codified or reenacted, in whole or in part, and in effect from time to time, (c) any reference herein to any Person shall be construed to include such Person’s
successors and assigns (subject to the restrictions contained herein), (d) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this

  

 9 

 
Agreement in its entirety and not to any particular provision hereof, (e) with respect to the determination of any time period, the word “from” means “from and including”
and the word “to” means “to and including” and (f) any reference herein to Articles, Sections and Exhibits shall be construed to refer to Articles and Sections of, and Exhibits to, this Agreement. No provision of this
Agreement shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision. 

[Remainder of Page Intentionally Left Blank] 

 

 10 

 IN WITNESS WHEREOF, the Parties intending to be legally bound hereby have
executed this Agreement, by their duly authorized representatives. 
  

			
	MCDERMOTT INTERNATIONAL, INC.
		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

		 	Liane K. Hinrichs
		 	Senior Vice President
	
	BOUDIN INSURANCE COMPANY, LTD.
		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

		 	Liane K. Hinrichs
		 	Assistant Secretary
	
	BABCOCK & WILCOX HOLDINGS, INC.
		
	 By:
	 	 /S/    MICHAEL S.
TAFF        

		 	Michael S. Taff
		 	Senior Vice President
	
	CREOLE INSURANCE COMPANY, LTD.
		
	 By:
	 	 /S/    BENJAMIN H.
BASH        

		 	Benjamin H. Bash
		 	Assistant Secretary

  

 
 Signature Page to Group IV Agreement 

 ACKNOWLEDGED AND AGREED FOR PURPOSES OF SECTION 2: 

 

			
	B&W ENTITIES:
	
	AMERICON EQUIPMENT SERVICES, INC.
	
	AMERICON, INC.
	
	APPLIED SYNERGISTICS, INC.
	
	BABCOCK & WILCOX CANADA LTD.
	
	 BABCOCK & WILCOX CHINA HOLDINGS,

INC.

	
	 BABCOCK & WILCOX CONSTRUCTION

CO., INC.

	
	 BABCOCK & WILCOX DE MONTERREY,

S.A. DE C.V.

	
	 BABCOCK & WILCOX DENMARK

HOLDINGS, INC.

	
	 BABCOCK & WILCOX EBENSBURG

POWER, INC.

	
	 BABCOCK & WILCOX EQUITY

INVESTMENTS, INC.

	
	 BABCOCK & WILCOX INDIA HOLDINGS,

INC.

	
	 BABCOCK & WILCOX INTERNATIONAL

SALES AND SERVICE CORPORATION

	
	BABCOCK & WILCOX INTERNATIONAL, INC.
		
	 By:
	 	 /S/    BENJAMIN H.
BASH        

	 Name:
	 	Benjamin H. Bash
	 Title:
	 	Assistant Secretary of each of the above

  

Signature Page to Group IV Agreement 

			
	 BABCOCK & WILCOX MODULAR

NUCLEAR ENERGY LLC

	
	 BABCOCK & WILCOX NUCLEAR

OPERATIONS GROUP, INC.

	
	 BABCOCK & WILCOX NUCLEAR ENERGY,

INC.

	
	 BABCOCK & WILCOX NUCLEAR

SERVICES (U.K.) LIMITED

	
	 BABCOCK & WILCOX TECHNICAL

SERVICES CLINCH RIVER, LLC

	
	 BABCOCK & WILCOX POWER

GENERATION GROUP, INC.

	
	 BABCOCK & WILCOX TECHNICAL

SERVICES GROUP, INC.

	
	 BABCOCK & WILCOX TECHNICAL

SERVICES SAVANNAH RIVER COMPANY

	
	BABCOCK & WILCOX VOLUND A/S
	
	BCE PARTS LTD.
	
	BWX TECHNOLOGIES, INC.
	
	BWXT FEDERAL SERVICES, INC.
	
	BWXT HANFORD COMPANY
	
	BWXT OF IDAHO, INC.
	
	BWXT OF OHIO, INC.
	
	BWXT WASHINGTON, INC.
		
	 By:
	 	 /S/    BENJAMIN H.
BASH        

	 Name:
	 	Benjamin H. Bash
	 Title:
	 	Assistant Secretary of each of the above

  

Signature Page to Group IV Agreement 

			
	CREOLE INSURANCE COMPANY, LTD.
	
	DELTA POWER SERVICES, LLC
	
	DIAMOND OPERATING CO., INC.
	
	DIAMOND POWER AUSTRALIA HOLDINGS, INC.
	
	DIAMOND POWER CHINA HOLDINGS, INC.
	
	 DIAMOND POWER EQUITY

INVESTMENTS, INC.

	
	DIAMOND POWER INTERNATIONAL, INC.
	
	 DIAMOND POWER SPECIALTY

(PROPRIETARY) LIMITED

	
	DPS BERKELEY, LLC
	
	DPS CADILLAC, LLC
	
	DPS FLORIDA, LLC
	
	DPS GREGORY, LLC
	
	DPS LOWELL COGEN, LLC
	
	DPS MECKLENBURG, LLC
	
	DPS MICHIGAN, LLC
	
	DPS MOJAVE, LLC
	
	DPS SABINE, LLC
	
	GUMBO INSURANCE COMPANY, LTD.
		
	 By:
	 	 /S/    BENJAMIN H.
BASH        

	 Name:
	 	Benjamin H. Bash
	 Title:
	 	Assistant Secretary of each of the above

  

Signature Page to Group IV Agreement 

			
	INTECH INTERNATIONAL INC.
	
	INTECH, INC.
	
	IVEY-COOPER SERVICES, L.L.C.
	
	MARINE MECHANICAL CORPORATION
	
	NFS HOLDINGS, INC.
	
	NOG-ERWIN HOLDINGS, INC.
	
	NORTH COUNTY RECYCLING, INC.
	
	NUCLEAR FUEL SERVICES, INC.
	
	O&M HOLDING COMPANY
	
	SOFCO - EFS HOLDINGS LLC
		
	 By:
	 	 /S/    BENJAMIN H.
BASH        

	 Name:
	 	Benjamin H. Bash
	 Title:
	 	Assistant Secretary of each of the above
	
	 BABCOCK & WILCOX TECHNICAL

SERVICES (U.K.) LIMITED

		
	 By:
	 	 /S/    BENJAMIN H.
BASH        

	 Name:
	 	Benjamin H. Bash
	 Title:
	 	Joint Secretary

  

 
 Signature Page to Group IV Agreement 

			
	B&W DE PANAMA, INC.
	
	 BABCOCK & WILCOX INTERNATIONAL

INVESTMENTS CO., INC.

	
	 BABCOCK & WILCOX INVESTMENT

COMPANY

		
	 By:
	 	 /S/    MICHAEL S.
TAFF        

	 Name:
	 	Michael S. Taff
	 Title:
	 	Senior Vice President, of each of the above

  

 
  

Signature Page to Group IV Agreement 

			
	 BABCOCK & WILCOX INDIA PRIVATE

LIMITED

	
	DIAMOND POWER SPECIALTY LIMITED
		
	 By:
	 	 /S/    ROBERT E.
STUMPF        

	 Name:
	 	Robert E. Stumpf
	 Title:
	 	Assistant Secretary
	
	NATIONAL ECOLOGY COMPANY
		
	 By:
	 	 /S/    ROBERT E.
STUMPF        

	 Name:
	 	Robert E. Stumpf
	 Title:
	 	Secretary
	
	DIAMOND POWER DO BRASIL LIMITADA

  

			
	 DIAMOND POWER INTERNATIONAL,

INC.

	
	 BABCOCK & WILCOX INTERNATIONAL

SALES AND SERVICE CORPORATION

	 (as Shareholders of Diamond Power do

Brasil Limitada)

		
	 By:
	 	 /S/    ROBERT E.
STUMPF        

	 Name:
	 	Robert E. Stumpf
	 Title:
	 	Assistant Secretary of each of the Shareholders

  

 
 Signature Page to Group IV Agreement 

			
	P. T. BABCOCK & WILCOX ASIA
	
	 SERVICIOS DE FABRICACION DE VALLE

SOLEADO, S.A. DE C.V.

	
	 SERVICOS PROFESIONALES DE VALLE

SOLEADO, S.A. DE C.V.

		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

	 Name:
	 	Liane K. Hinrichs
	 Title:
	 	Secretary

  

 
  

Signature Page to Group IV Agreement 

			
	 DIAMOND POWER CENTRAL & EASTERN

EUROPE S.R.O.

	
	DIAMOND POWER FINLAND OY
		
	 By:
	 	 /S/    JUHA K.
MUSTONEN        

	 Name:
	 	Juha K. Mustonen
	 Title:
	 	Managing Director

  

 
  
  

Signature Page to Group IV Agreement 

			
	DIAMOND POWER MACHINE (HUBEI) CO., INC.
		
	 By:
	 	 /S/    DAVID R.
GIBBS        

	 Name:
	 	David R. Gibbs
	 Title:
	 	Director

  

 
  
  

Signature Page to Group IV Agreement 

			
	DIAMOND POWER SWEDEN AB
		
	 By:
	 	 /S/    MIKA J.
HAIKOLA        

	 Name:
	 	Mika J. Haikola
	 Title:
	 	Managing Director

  

 
  
  

Signature Page to Group IV Agreement 

 ACKNOWLEDGED AND AGREED FOR PURPOSES OF SECTION 2: 

 

			
	MII ENTITIES:
	
	 CHARTERING COMPANY (SINGAPORE)

PTE. LTD.

	
	 J. RAY MCDERMOTT (QINGDAO) PTE.

LTD.

	
	 J. RAY MCDERMOTT ASIA PACIFIC PTE.

LTD.

	
	MALMAC SDN. BHD.
	
	 MCDERMOTT (MALAYSIA) SENDIRIAN

BERHAD

		
	 By:
	 	 /S/    JEFF J.
HIGHTOWER        

	 Name:
	 	Jeff J. Hightower
	 Title:
	 	Director of each of the above
	
	BOUDIN INSURANCE COMPANY, LTD.
	
	 J. RAY MCDERMOTT EASTERN

HEMISPHERE LIMITED

	
	LAGNIAPPE INSURANCE COMPANY, LTD.
		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

	 Name:
	 	Liane K. Hinrichs
	 Title:
	 	Assistant Secretary, of each of the above

  

 
 Signature Page to Group IV Agreement 

			
	J. RAY MCDERMOTT UK LTD.
		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

	 Name:
	 	Liane K. Hinrichs
	 Title:
	 	Joint Secretary
	
	EASTERN MARINE SERVICES, INC.
	
	GLOBAL ENERGY - MCDERMOTT LIMITED
	
	HYDRO MARINE SERVICES, INC.
	
	J. RAY MCDERMOTT (CASPIAN), INC.
	
	J. RAY MCDERMOTT (NIGERIA) LTD.
	
	J. RAY MCDERMOTT (NORWAY), AS
	
	 J. RAY MCDERMOTT CANADA HOLDING,

LTD.

	
	J. RAY MCDERMOTT CANADA, LTD.
	
	J. RAY MCDERMOTT CONTRACTORS, INC.
	
	 J. RAY MCDERMOTT DE MEXICO, S.A. DE

C.V.

		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

	 Name:
	 	Liane K. Hinrichs
	 Title:
	 	Secretary of each of the above

  

 
 Signature Page to Group IV Agreement 

			
	 J. RAY MCDERMOTT ENGINEERING

SERVICES PRIVATE LIMITED

	
	J. RAY MCDERMOTT ENGINEERING, LLC
	
	J. RAY MCDERMOTT FAR EAST, INC.
	
	 J. RAY MCDERMOTT INTERNATIONAL,

INC.

	
	 J. RAY MCDERMOTT INTERNATIONAL

VESSELS, LTD.

	
	J. RAY MCDERMOTT INVESTMENTS B.V.
	
	J. RAY MCDERMOTT KAZAKHSTAN LLP
	
	 J. RAY MCDERMOTT LOGISTIC SERVICES

PVT. LIMITED

	
	J. RAY MCDERMOTT MIDDLE EAST, INC.
	
	J. RAY MCDERMOTT SOLUTIONS, INC.
	
	J. RAY MCDERMOTT TECHNOLOGY, INC.
	
	 J. RAY MCDERMOTT UNDERWATER

SERVICES, INC.

	
	 J. RAY MCDERMOTT WEST AFRICA

HOLDINGS, INC.

	
	J. RAY MCDERMOTT WEST AFRICA, INC.
		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

	 Name:
	 	Liane K. Hinrichs
	 Title:
	 	Secretary of each of the above

  

Signature Page to Group IV Agreement 

			
	 MCDERMOTT CASPIAN CONTRACTORS,

INC.

	
	MCDERMOTT FAR EAST, INC.
	
	MCDERMOTT GULF OPERATING COMPANY, INC.
	
	MCDERMOTT INTERNATIONAL B.V.
	
	 MCDERMOTT INTERNATIONAL

INVESTMENTS CO., INC.

	
	 MCDERMOTT INTERNATIONAL MARINE

INVESTMENTS N.V.

	
	 MCDERMOTT INTERNATIONAL TRADING

CO., INC.

	
	 MCDERMOTT INTERNATIONAL VESSELS,

INC.

	
	 MCDERMOTT MARINE MEXICO, S.A. DE

C.V.

	
	 MCDERMOTT OFFSHORE SERVICES

COMPANY, INC.

	
	MCDERMOTT OLD JV OFFICE, INC.
	
	 MCDERMOTT OVERSEAS INVESTMENT

CO. N.V.

	
	MCDERMOTT OVERSEAS, INC.
	
	MCDERMOTT TRADE CORPORATION
		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

	 Name:
	 	Liane K. Hinrichs
	 Title:
	 	Secretary of each of the above

  

Signature Page to Group IV Agreement 

			
	 MENTOR SUBSEA TECHNOLOGY

SERVICES, INC.

	
	NORTH ATLANTIC VESSEL, INC.
	
	 OFFSHORE PIPELINES INTERNATIONAL,

LTD.

	
	OPI VESSELS, INC.
	
	OPMI, LTD.
	
	SABINE RIVER REALTY, INC.
	
	 SERVICIOS DE FABRICACION DE

ALTAMIRA, S.A. DE C.V.

	
	 SERVICOS PROFESIONALES DE

ALTAMIRA, S.A. DE C.V.

	
	SPARTEC, INC.
	
	VARSY INTERNATIONAL N.V.
		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

	 Name:
	 	Liane K. Hinrichs
	 Title:
	 	Secretary of each of the above
	
	MCDERMOTT KFT.
		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

	 Name:
	 	Liane K. Hinrichs
	 Title:
	 	Managing Director

  

 
 Signature Page to Group IV Agreement 

			
	J. RAY MCDERMOTT (AUST.) HOLDING
PTY. LIMITED
	
	MCDERMOTT AUSTRALIA PTY. LTD.
		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

	 Name:
	 	Liane K. Hinrichs
	 Title:
	 	Corporate Officer of each of the above
	
	MCDERMOTT INCORPORATED
	
	MCDERMOTT PANAMA HOLDINGS, S.A.
	
	J. RAY MCDERMOTT HOLDINGS, LLC
	
	J. RAY MCDERMOTT, INC.
	
	J. RAY MCDERMOTT, S.A.
	
	MCDERMOTT CAYMAN LTD.
		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

	 Name:
	 	Liane K. Hinrichs
	 Title:
	 	Senior Vice President of each of the above
	
	MCDERMOTT INTERNATIONAL MARKETING, INC.
		
	 By:
	 	 /S/    LIANE K.
HINRICHS        

	 Name:
	 	Liane K. Hinrichs
	 Title:
	 	President

  

 
 Signature Page to Group IV Agreement 

			
	FLOATEC, LLC
		
	 By:
	 	 /S/    ROBERT E.
STUMPF        

	 Name:
	 	Robert E. Stumpf
	 Title:
	 	Assistant Secretary
	
	MCDERMOTT HOLDINGS (U.K.) LIMITED
	
	MCDERMOTT MARINE CONSTRUCTION LIMITED
		
	 By:
	 	 /S/    ROBERT E.
STUMPF        

	 Name:
	 	Robert E. Stumpf
	 Title:
	 	Joint Secretary of each of the above
	
	MCDERMOTT SERVICOS DE CONSTRUCAO, LTDA.
	
	J. RAY MCDERMOTT INC.
	
	MCDERMOTT OVERSEAS, INC.,
	(as Shareholders)
		
	 By:
	 	 /S/    ROBERT E.
STUMPF        

	 Name:
	 	Robert E. Stumpf
	 Title:
	 	Assistant Secretary
	
	OFFSHORE PIPELINES SDN. BHD.
	
	OFFSHORE PIPELINES SDN. BLD.
	(as Sole Shareholder)
		
	 By:
	 	 /S/    ROBERT E.
STUMPF        

	 Name:
	 	Robert E. Stumpf
	 Title:
	 	Assistant Secretary

  

Signature Page to Group IV Agreement 

			
	INTERNATIONAL VESSELS LTD.
		
	 By:
	 	 /S/    STEVEN W.
ROLL        

	 Name:
	 	Steven W. Roll
	 Title:
	 	Director

  

 
  
  

Signature Page to Group IV Agreement 

			
	PT. BAJA WAHANA INDONESIA
		
	 By:
	 	 /S/    SCOTT
CUMMINS        

	 Name:
	 	Scott Cummins
	 Title:
	 	President Director

  

 
  
  

Signature Page to Group IV Agreement 

			
	SINGAPORE HUANGDAO PTE. LTD.
		
	 By:
	 	 /S/    ROCKNE L.
MOSELEY        

	 Name:
	 	Rockne L. Moseley
	 Title:
	 	Director

  

 
  
  

Signature Page to Group IV Agreement 

 EXHIBIT I – B&W ENTITIES 

See Schedule 1.1(a) and Schedule 1.1(c) attached hereto. No B&W Entity listed on Schedule 

1.1(a) shall be deemed to be an “Insured”, a “Named Insured” or otherwise be deemed to be 

insured under any Existing Policy solely by virtue of being listed on such Schedule 1.1(a). 

 Schedule 1.1(a) 

B&W FORMER 
  

			
	 Reference ID
	  	 Name

	333	  	 Ahahsain Hudson Heat Transfer Co. Ltd.

	398	  	 Advanced Refractory Technologies, Inc.

		  	 A.M. Lockett & Co., Limited

		  	 Amcermet Corporation

	924	  	 ASEA Babcock

	235	  	 Ash Acquisition Company

	326	  	 B & W Clarion, Inc.

	574	  	 B&W Ebensburg Pa., Inc.

	460	  	 B&W Energy Investments, Inc.

	383	  	 B&W Fort Worth Power, Inc.

	950	  	 B&W Fuel Company

	535	  	 B&W Fuel, Inc.

	922	  	 B&W Mexicana, S.A. de C.V.

	9991	  	 B&W North Branch G.P., Inc.

	9990	  	 B&W North Branch L.P., Inc.

	537	  	 B&W Nuclear Service Company

	960	  	 B&W Nuclear Service Company

	536	  	 B&W Nuclear, Inc.

	586	  	 B&W Saba, Inc.

	591	  	 B&W Service Company

	579	  	 B&W SOFC G.P., Inc.

	578	  	 B&W SOFC L.P., Inc.

	381	  	 B&W Special Projects, Inc.

	569	  	 B&W Triso Corporation

		  	 B&W Tubular Products Limited

	573	  	 B&W/OHM Weldon Spring, Inc.

	212	  	 Babcock & Wilcox Asia Investment Co., Inc.

	115	  	 Babcock & Wilcox Asia Limited

	533	  	 Babcock & Wilcox Canada Leasing Ltd.

	503	  	 Babcock & Wilcox Canada Ltd.

	215	  	 Babcock & Wilcox China Investment Co., Inc.

	594	  	 Babcock & Wilcox do Brasil Limitada

	528	  	 Babcock & Wilcox do Brasil Participacoes Limitada

	206	  	 Babcock & Wilcox Egypt SAE

			
	169	  	 Babcock & Wilcox Fibras Ceramicas Limitada

	519	  	 Babcock & Wilcox Finance, Inc.

	557	  	 Babcock & Wilcox Foreign Sales Corporation

	175	  	 Babcock & Wilcox Gama Kazan Teknolojisi A.S.

	552	  	 Babcock & Wilcox General Contracting Company

	565	  	 Babcock & Wilcox Government Services Company

	395	  	 Babcock & Wilcox HRSG Company

		  	 Babcock & Wilcox Industries, Ltd.

	531	  	 Babcock & Wilcox International Sales Corporation

	549	  	 Babcock & Wilcox International Sales Corporation

	342	  	 Babcock & Wilcox Investment Company

	305	  	 Babcock & Wilcox Jonesboro Power, Inc.

	2007	  	 Babcock & Wilcox Nevada, LLC

		  	 Babcock & Wilcox Refractories Limited

	323	  	 Babcock & Wilcox Salt City Power, Inc.

	543	  	 Babcock & Wilcox Services, Inc.

	322	  	 Babcock & Wilcox Tracy Power, Inc.

	314	  	 Babcock & Wilcox Victorville Power, Inc.

	727	  	 Babcock & Wilcox Volund France SAS

	315	  	 Babcock PFBC, Inc.

	559	  	 Babcock Southwest Construction Corporation

	945	  	 Babcock-Brown Boveri Reaktor GmbH

	936	  	 Babcock-Ultrapower Jonesboro

	937	  	 Babcock-Ultrapower West Enfield

	951	  	 Bailey Beijing Controls Co., Ltd.

	516	  	 Bailey Controls Australia Pty. Limited

	517	  	 Bailey Controls International Sales & Services Company, Inc.

	954	  	 Bailey Controls Jordan for Process Controls Services, Ltd.

	563	  	 Bailey Controls Sales & Service (Australia) Pty. Limited

	564	  	 Bailey Controls Sales & Services Canada Inc.

	561	  	 Bailey do Brasil Instrumentos Industriais Limitada

	114	  	 Bailey International, Inc.

	923	  	 Bailey Japan Company Limited

	542	  	 Bailey Meter and Controls Company

		  	 Bailey Meter Company

	562	  	 Bailey Meter Co. (Japan) Ltd.

		  	 Bailey Meter Company Limited

		  	 Bailey Meter GmbH

			
	646	  	 Brick Insurance Company, Ltd.

	590	  	 BWXT Protec, Inc.

		  	 C.C. Moore & Company Engineers

	511	  	 Ceramatec G.P., Inc.

	510	  	 Ceramatec SOFC, Inc.

	329	  	 Clarion Energy, Inc.

	328	  	 Clarion Power Company

	321	  	 Conam Nuclear, Inc.

		  	 Control Components France

	514	  	 Control Components Italy S.R.L.

		  	 Control Components, Inc. (California)

		  	 Control Components, Inc. (Delaware)

	948	  	 Control Components Japan

	1914	  	 CTR Solutions, LLC

	545	  	 Detroit Broach & Machine Corporation

	551	  	 Diamond Blower Company Limited

		  	 Diamond Canapower Ltd.

	518	  	 Diamond Power Importacao e Exportacao Ltda.

	144	  	 Diamond Power Korea Inc.

	526	  	 Diamond Power Specialty (Japan) Ltd.

	558	  	 Diamond Power Specialty (Proprietary) Limited

	546	  	 Diamond Power Specialty Corporation (Delaware)

		  	 Diamond Power Speciality Corporation (Ohio)

	529	  	 Diamond Power Specialty GmbH

		  	 Diescher Tube Mills, Inc.

	332	  	 Ebensburg Energy, Inc.

	397	  	 Ejendomsaktieselskabet Falkevej2

	961	  	 Enserch Environmental Management Company, Inc.

	968	  	 EPC Business Trust

	919	  	 Especialidades Termomecanicas, S.A. de C.V.

	550	  	 Ferry-Diamond Engineering Company Limited

	928	  	 Fibras Ceramicas C.A.

	509	  	 Fibras Ceramicas, Inc.

	547	  	 Globe Steel Tubes Corporation

		  	 Greer Land Co.

		  	 Holmes Insulations Limited

	124	  	 Hudson Heat Transfer International, Inc.

	1955	  	 Hudson HEI Pty. Ltd.

			
	914	  	 Hudson Northern Industries Inc.

	125	  	 Hudson Products Aktiebolag

	567	  	 Hudson Products Corporation (1)

	902	  	 Hudson Products de Mexico, S.A. de C.V.

	1907	  	 Integran Technologies Inc.

	461	  	 International Disarmament Corporation

	941	  	 Isolite Babcock Refractories Company, Ltd.

	927	  	 Isolite Eastern Union Refractories Co., Ltd.

	920	  	 KBW Gasification Systems, Inc.

	512	  	 LT Produkter i Skutskar AB

	938	  	 Maine Power Services

	345	  	 McDermott Heat Transfer Company

	344	  	 McDermott Productos Industriales de Mexico, S.A. de C.V.

	946	  	 Medidores Bailey, S.A. de C.V.

	942	  	 Morganite Ceramic Fibres Limited

	943	  	 Morganite Ceramic Fibres Pty. Limited

	944	  	 Morganite Ceramic Fibres S. A.

		  	 National Drill & Manufacturing Co.

	544	  	 National Ecology (Alabama) Incorporated

	575	  	 National Ecology (Utah) Incorporated

	976	  	 Nooter/Eriksen - Babcock & Wilcox, L.L.C.

	933	  	 North American CWF Partnership

	9989	  	 North Branch Power Company L.P.

	971	  	 North County Operations Associates

		  	 Nuclear Materials and Equipment Corporation

	958	  	 Olin Pantex Inc.

	1153	  	 P. T. Heat Exchangers Indonesia

	934	  	 Palm Beach Energy Associates

		  	 Piedmont Tool Machine Company

	576	  	 Power Computing Company

	581	  	 Power Systems Sunnyside Operations GP, Inc.

	583	  	 Power Systems Sunnyside Operations LP, Inc.

		
		  	 (1) a Delaware Corporation

	905	  	 PowerSafety International, Inc.

	508	  	 Productos de Caolin, Inc.

	577	  	 PSO Caribbean, Inc.

	1980	  	 Savannah River Alliance LLC

			
	2008	  	 Savannah River Tactical Services LLC

	984	  	 SOFCo L.P.

	932	  	 South Point CWF

	556	  	 Sunland Construction Co., Inc.

	988	  	 Sunnyside Cogeneration Associates

	582	  	 Sunnyside II, Inc.

	992	  	 Sunnyside II, L.P

	303	  	 Sunnyside III, Inc.

	993	  	 Sunnyside Operations Associates L.P.

	571	  	 Termobloc Industria E Comercio Ltda.

	953	  	 Thermax Babcock & Wilcox Limited

	502	  	 TLT-Babcock, Inc.

	570	  	 Triso

	1152	  	 W.E. Smith Hudson Pty. Ltd.

	548	  	 W. F. and John Barnes Company

 Schedule 1.1(c) 

B&W CURRENT 
  

					
	 Reference ID
	  	 Name
	  	  
	553	  	 Americon Equipment Services, Inc.
	  	
	554	  	 Americon, Inc.
	  	
	732	  	 Applied Synergistics, Inc.
	  	
	127	  	 B&W de Panama, Inc.
	  	
	532	  	 Babcock & Wilcox Canada Ltd.
	  	
	1570	  	 Babcock & Wilcox China Holdings, Inc.
	  	
	555	  	 Babcock & Wilcox Construction Co., Inc.
	  	
	2011	  	 Babcock & Wilcox de Monterrey, S.A. de C.V.
	  	
	1571	  	 Babcock & Wilcox Denmark Holdings, Inc.
	  	
	327	  	 Babcock & Wilcox Ebensburg Power, Inc.
	  	
	302	  	 Babcock & Wilcox Equity Investments, Inc.
	  	
	1965	  	 Babcock & Wilcox Holdings, Inc.
	  	
	2028	  	 Babcock & Wilcox India Holdings, Inc.
	  	
	598	  	 Babcock & Wilcox India Private Limited
	  	
	126	  	 Babcock & Wilcox International Investments Co., Inc.
	  	
	530	  	 Babcock & Wilcox International Sales and Service Corporation
	  	
	541	  	 Babcock & Wilcox International, Inc.
	  	
	380	  	 Babcock & Wilcox Investment Company
	  	
	2010	  	 Babcock & Wilcox Modular Nuclear Energy LLC
	  	
	1974	  	 Babcock & Wilcox Nuclear Operations Group, Inc.
	  	
	1967	  	 Babcock & Wilcox Nuclear Energy, Inc.
	  	 (formerly Babcock & Wilcox Nuclear Power Generation Group, Inc.

	2018	  	 Babcock & Wilcox Nuclear Services (U.K.) Limited
	  	
	500	  	 Babcock & Wilcox Power Generation Group, Inc.
	  	
	1961	  	 Babcock & Wilcox Technical Services (U.K.) Limited
	  	
	1970	  	 Babcock & Wilcox Technical Services Clinch River, LLC
	  	
	572	  	 Babcock & Wilcox Technical Services Group, Inc.
	  	 (formerly BWXT Services, Inc.)

	587	  	 Babcock & Wilcox Technical Services Savannah River Company
	  	 (formerly BWXT Savannah River Company)

	599	  	 Babcock & Wilcox Volund A/S
	  	 (formerly Babcock & Wilcox Volund ApS)

	2000	  	 BCE Parts Ltd.
	  	
	596	  	 BWX Technologies, Inc.
	  	
	580	  	 BWXT Federal Services, Inc.
	  	
	589	  	 BWXT Hanford Company
	  	
	382	  	 BWXT of Idaho, Inc.
	  	
	592	  	 BWXT of Ohio, Inc.
	  	

					
	1576	  	 BWXT Washington, Inc.
	  	
	189	  	 Creole Insurance Company, Ltd.
	  	
	1988	  	 Delta Power Services, LLC
	  	
	766	  	 Diamond Operating Co., Inc.
	  	
	1572	  	 Diamond Power Australia Holdings, Inc.
	  	
	1984	  	 Diamond Power Central & Eastern Europe s.r.o.
	  	
	1573	  	 Diamond Power China Holdings, Inc.
	  	
	521	  	 Diamond Power do Brasil Limitada
	  	
	1574	  	 Diamond Power Equity Investments, Inc.
	  	
	525	  	 Diamond Power Finland OY
	  	
	504	  	 Diamond Power Germany GmbH
	  	 (formerly Diamond Power - Sturm GmbH)

	597	  	 Diamond Power International, Inc.
	  	
	949	  	 Diamond Power Machine (Hubei) Co., Inc.
	  	
	1908	  	 Diamond Power Services S.E.A. Ltd.
	  	
	522	  	 Diamond Power Specialty (Proprietary) Limited
	  	
	523	  	 Diamond Power Specialty Limited
	  	
	524	  	 Diamond Power Sweden AB
	  	
	1990	  	 DPS Berkeley, LLC
	  	
	1997	  	 DPS Cadillac, LLC
	  	
	1995	  	 DPS Florida, LLC
	  	
	1993	  	 DPS Gregory, LLC
	  	
	1996	  	 DPS Lowell Cogen, LLC
	  	
	1992	  	 DPS Mecklenburg, LLC
	  	
	1991	  	 DPS Michigan, LLC
	  	
	1994	  	 DPS Mojave, LLC
	  	
	1998	  	 DPS Sabine, LLC
	  	
	278	  	 Gumbo Insurance Company, Ltd.
	  	
	2003	  	 Intech International Inc.
	  	
	2002	  	 Intech, Inc.
	  	
	2001	  	 Ivey-Cooper Services, L.L.C.
	  	
	1968	  	 Marine Mechanical Corporation
	  	
	540	  	 National Ecology Company
	  	
	2005	  	 NFS Holdings, Inc.
	  	
	2004	  	 NOG-Erwin Holdings, Inc.
	  	
	501	  	 North County Recycling, Inc.
	  	
	2006	  	 Nuclear Fuel Services, Inc.
	  	
	1989	  	 O&M Holding Company
	  	
	707	  	 P. T. Babcock & Wilcox Asia
	  	

					
	534	  	 Palm Beach Resource Recovery Corporation

	560	  	 Power Systems Operations, Inc.

	568	  	 Revloc Reclamation Service, Inc.

	2013	  	 Servicios de Fabricacion de Valle Soleado, S.A. de C.V.

	2012	  	 Servicios Profesionales de Valle Soleado, S.A. de C.V.

	767	  	 SOFCo - EFS Holdings LLC

	2029	  	 The Babcock & Wilcox Company

 EXHIBIT II – MII ENTITIES 

See Schedule 1.1(b) and Schedule 1.1(j) attached hereto. No MII Entity listed on Schedule 1.1(b) shall be deemed to be an
“Insured”, a “Named Insured” or otherwise be deemed to be insured under any Existing Policy solely by virtue of being listed on such Schedule 1.1(b). 

 Schedule 1.1(b) 

MII FORMER 
  

					
	 Reference ID
	  	 	  	  
	947	  	 Arabian General Contracting Company
	  	
	911	  	 Arabian Petroleum Marine Construction Company
	  	
	8000	  	 Associated Pipe Line Contractors, Inc.
	  	
	117	  	 Badya Builders, Inc.
	  	
	242	  	 Beheer-en Beleggingsmaatschappij Belesa B.V.
	  	
	9996	  	 BJA-Mentor Production Systems Limited
	  	
	164	  	 Brown & Root McDermott Fabricators Limited
	  	
	277	  	 Cayenne Insurance Company, Ltd.
	  	
	629	  	 CCC Fabricaciones y Construcciones S.A. de C.V.
	  	
	940	  	 Construcciones Maritimas Mexicanas, S.A. de C.V.
	  	
	952	  	 Davy McDermott Limited
	  	
	921	  	 DB/McDermott Company
	  	
	1952	  	 Deep Gulf Contractors LLC
	  	
	171	  	 Deep Sea Divers Australia Pty. Limited
	  	
		  	 Dick Evans, Inc.
	  	
	997	  	 ETPM International (UK) Limited
	  	
	955	  	 ETPM International S.A.S.
	  	
	999	  	 Far East Vessels, Inc.
	  	
	108	  	 First Emirates Trading Corporation
	  	
		  	 Harvey Lumber & Supply Company
	  	
	174	  	 Heavy Lift Chartering, Inc.
	  	
	935	  	 HeereMac v.o.f.
	  	
	956	  	 Heerema-McDermott (Aust.) Pty. Ltd.
	  	
	190	  	 Honore Insurance Company, Ltd.
	  	
	917	  	 Initec, Astano y McDermott International Inc., S.A.
	  	
		  	 Ingenieria Petrolera Maritima, S.A. de C.V.
	  	
		  	 Iranian Marine Contractors, Inc.
	  	
	102	  	 J. Ray McDermott & Co. (Nederland) B.V.
	  	
	150	  	 J. Ray McDermott (Aust.) Pty. Ltd.
	  	
	151	  	 J. Ray McDermott (U.K.) Inc.
	  	
	350	  	 J. Ray McDermott (Venezuela) C.A.
	  	
	325	  	 J. Ray McDermott Arctic Ltd.
	  	
	307	  	 J. Ray McDermott Gulf Contractors, Inc.
	  	 (formerly the Early Company)

					
	394	  	 J. Ray McDermott International Services (No. 1) Limited
	  	
	101	  	 J. Ray McDermott International Services Limited
	  	
	152	  	 J. Ray McDermott London, Ltd.
	  	
	641	  	 J. Ray McDermott Marine Construction AS
	  	
	1125	  	 J. Ray McDermott Newfoundland, Ltd.
	  	
	871	  	 J. Ray McDermott Offshore Chartering (U.S.), Inc.
	  	
	372	  	 J. Ray McDermott Properties, Inc.
	  	
	238	  	 J. Ray McDermott Underwater Services, Inc.
	  	
	603	  	 J. Ray McDermott Venture Holdings (U.S.), Inc.
	  	
	153	  	 Jaramac Associated Services, Ltd.
	  	
		  	 Jaramac Petroleum (U.K.) Limited
	  	
		  	 Khafji Contractors, Inc.
	  	
	166	  	 Khor Contractors, Inc.
	  	
	903	  	 KME a.s.
	  	
	324	  	 Lan-Dermott, S.A. de C.V.
	  	
	202	  	 Madock Shipyard Company, Ltd.
	  	
	203	  	 Macshelf Marine Construction Company, Ltd.
	  	
	106	  	 Mandato Pty. Limited
	  	
	360	  	 Marine Contractors, Inc.
	  	
	146	  	 McAntille, N.V.
	  	
	168	  	 McDermott - ETPM V.O.F.
	  	
	158	  	 McDermott (Holland) B.V.
	  	
	304	  	 McDermott (Nigeria) Limited
	  	
	245	  	 McDermott Acquisition Company, Inc.
	  	
	972	  	 McDermott APG Services Limited
	  	
	352	  	 McDermott Azerbaijan Pipelines, Inc.
	  	
	156	  	 McDermott Azerbaijan, Inc.
	  	
	351	  	 McDermott Central & Eastern Europe, Inc.
	  	
		  	 McDermott de Mexico, S.A. de C.V.
	  	
	118	  	 McDermott Denmark ApS
	  	
	464	  	 McDermott Energy Services, Inc.
	  	
	178	  	 McDermott Engineering (Europe) Limited
	  	
		  	 McDermott Enterprises France, S.A.
	  	
	128	  	 McDermott Europe Marine Services, Ltd.
	  	
	313	  	 McDermott Industries, Inc.
	  	
	354	  	 McDermott Inland Services, Inc.
	  	
	201	  	 McDermott International Asset Management, Ltd.
	  	
	343	  	 McDermott International Aviation, Inc.
	  	

					
	346	  	 McDermott International Aviation, Inc.
	  	 (formerly McDermott International Aviation Co., Inc.)

		  	 McDermott International (Deutschland) GmbH
	  	
	237	  	 McDermott International Engineering & Construction Co., Ltd.
	  	
	139	  	 McDermott International Engineering Investments N.V.
	  	
	121	  	 McDermott International General Services, Inc.
	  	
	123	  	 McDermott International Marine Services, Inc.
	  	
	236	  	 McDermott International Marketing, Inc.
	  	
	143	  	 McDermott Marine UK Limited
	  	
	462	  	 McDermott Marketing Services, Inc.
	  	
	103	  	 McDermott Middle East Trading, Ltd.
	  	
	172	  	 McDermott Neutral Zone, Inc.
	  	
		  	 McDermott Norway, Inc.
	  	
		  	 McDermott Petroleum (Iran), Inc.
	  	
	105	  	 McDermott Sakhalin, Inc.
	  	
	347	  	 McDermott Shipbuilding, Inc.
	  	
	111	  	 McDermott Singapore Pte. Ltd.
	  	
	221	  	 McDermott Submarine Cable Ltd.
	  	
	1951	  	 McDermott Submarine Cable Systems Limited
	  	
	205	  	 McDermott Subsea Constructors Limited
	  	
	110	  	 McDermott Transition Co., Inc.
	  	
		  	 McDermott UAR, Inc.
	  	
	184	  	 McDermott West Indies Company
	  	
	187	  	 McDermott-ETPM (Norway), Inc.
	  	
	998	  	 McDermott-ETPM (UK) Limited
	  	
	963	  	 McDermott-ETPM B.V.
	  	
	161	  	 McDermott-ETPM East B.V.
	  	
	167	  	 McDermott-ETPM East N.V.
	  	
	964	  	 McDermott-ETPM N.V.
	  	
	965	  	 McDermott-ETPM S.A.
	  	
	962	  	 McDermott-ETPM West, Inc.
	  	
	104	  	 Menck GmbH
	  	
	463	  	 Mentor Engineering Consultants Limited
	  	
	131	  	 MIMCO, Inc.
	  	
	908	  	 MMC-McDermott Engineering Sdn. Berhad
	  	
	317	  	 Mofco N.V.
	  	
	129	  	 NOLA, Servicos E Participacoes Ltda.
	  	
	141	  	 Northern Marine Services, Inc.
	  	
	107	  	 Oceanic Red Sea Company
	  	

			
	620	  	 Offshore Angola, Ltd.

	632	  	 Offshore Energy Capital Corporation

	622	  	 Offshore Hyundai International Limited

	630	  	 Offshore Hyundai International, Ltd.

	210	  	 Offshore Marine Chartering N.V.

	610	  	 Offshore Petroleum Divers, Inc.

	614	  	 Offshore Pipelines (Mauritius) Ltd.

	616	  	 Offshore Pipelines Far East Limited

	617	  	 Offshore Pipelines International Gulf E.C.

	633	  	 Offshore Power Generation Ltd.

	635	  	 Offshore Production Vessels, Ltd.

	615	  	 OPI Offshore Netherlands Holding B.V.

	611	  	 OPI Sales & Service Corporation

	628	  	 OPI Towing & Supply, L.L.C.

	624	  	 OPMI, E.C.

	613	  	 P. T. Armandi Pranaupaya

	850	  	 Panama Offshore Chartering Company 1, Inc.

	859	  	 Panama Offshore Chartering Company 10, Inc.

	860	  	 Panama Offshore Chartering Company 11, Inc.

	861	  	 Panama Offshore Chartering Company 12, Inc.

	862	  	 Panama Offshore Chartering Company 13, Inc.

	863	  	 Panama Offshore Chartering Company 14, Inc.

	864	  	 Panama Offshore Chartering Company 15, Inc.

	865	  	 Panama Offshore Chartering Company 16, Inc.

	866	  	 Panama Offshore Chartering Company 17, Inc.

	867	  	 Panama Offshore Chartering Company 18, Inc.

	868	  	 Panama Offshore Chartering Company 19, Inc.

	851	  	 Panama Offshore Chartering Company 2, Inc.

	869	  	 Panama Offshore Chartering Company 20, Inc.

	870	  	 Panama Offshore Chartering Company 21, Inc.

	852	  	 Panama Offshore Chartering Company 3, Inc.

	853	  	 Panama Offshore Chartering Company 4, Inc.

	854	  	 Panama Offshore Chartering Company 5, Inc.

	855	  	 Panama Offshore Chartering Company 6, Inc.

	856	  	 Panama Offshore Chartering Company 7, Inc.

	857	  	 Panama Offshore Chartering Company 8, Inc.

	858	  	 Panama Offshore Chartering Company 9, Inc.

	154	  	 Panama Offshore Chartering Company, Inc.

			
	990	  	 Personal Administrativo de Vera Cruz, S.A. de C.V.

	991	  	 Personal Ejecutivo de Veracruz, S.A. de C.V.

	645	  	 Pirogue Insurance Company, Ltd.

	981	  	 Sakhalin Energy Investment Company, Ltd.

	384	  	 Samburg Holdings, Inc.

	109	  	 Sharman, Allen, Gay & Taylor, S.A.

	989	  	 Tallares Navales del Golfo, S.A. de C.V.

		  	 The Evelyn Kay Company

		  	 The Roger Thomas Company

		  	 The Rosalie E. Company

		  	 The Walter E. Company

	634	  	 TL Marine Sdn. Bhd.

	621	  	 TL Offshore Sdn. Bhd.

	926	  	 Topside Contractors of Newfoundland

	925	  	 Topside Contractors of Newfoundland, Ltd.

	642	  	 U.S. Offshore Chartering

	918	  	 Universal Fabricators Incorporated

	980	  	 US Shipbuilding Corporation, Inc.

	318	  	 Wagley, Inc.

 Schedule 1.1(j) 

MII - CURRENT 
  

					
	 CURRENT
Reference ID
	  	 Name
	  	  
	873	  	 Barmada McDermott (L) Limited
	  	
	1953	  	 Barmada McDermott Sdn. Bhd.
	  	
	276	  	 Boudin Insurance Company, Ltd.
	  	
	939	  	 Caspian Offshore Fabricators LLC
	  	
	116	  	 Chartering Company (Singapore) Pte. Ltd.
	  	
	142	  	 Eastern Marine Services, Inc.
	  	
	249	  	 Global Energy - McDermott Limited
	  	
	140	  	 Hydro Marine Services, Inc.
	  	
	649	  	 International Vessels Ltd.
	  	
	148	  	 J. Ray McDermott (Aust.) Holding Pty. Limited
	  	
	1982	  	 J. Ray McDermott (Caspian), Inc.
	  	 (formerly J. Ray McDermott Diving International, Inc.)

	243	  	 J. Ray McDermott (Nigeria) Ltd.
	  	
	2025	  	 J. Ray McDermott (Norway), AS
	  	
	1237	  	 J. Ray McDermott (Qingdao) Pte. Ltd.
	  	
	194	  	 J. Ray McDermott Asia Pacific Pte. Ltd.
	  	 (formerly McDermott South East Asia Pte. Ltd.)

	1972	  	 J. Ray McDermott Canada Holding, Ltd.
	  	
	1969	  	 J. Ray McDermott Canada, Ltd.
	  	
	204	  	 J. Ray McDermott Contractors, Inc.
	  	
	246	  	 J. Ray McDermott de Mexico, S.A. de C.V.
	  	
	208	  	 J. Ray McDermott Eastern Hemisphere Limited
	  	 (formerly J. Ray Middle East (Indian Ocean) Ltd.)

	1956	  	 J. Ray McDermott Engineering Services Private Limited
	  	
	1950	  	 J. Ray McDermott Engineering, LLC
	  	
	220	  	 J. Ray McDermott Far East, Inc.
	  	
	211	  	 J. Ray McDermott Holdings, LLC
	  	 (formerly J. Ray McDermott Holdings, Inc.)

	627	  	 J. Ray McDermott International Vessels, Ltd.
	  	 (formerly OPI International, Ltd.)

	602	  	 J. Ray McDermott International, Inc.
	  	
	160	  	 J. Ray McDermott Investments B.V.
	  	 (formerly Menck B.V.)

	1958	  	 J. Ray McDermott Kazakhstan Limited Liability Partnership
	  	
	1975	  	 J. Ray McDermott Logistic Services Pvt. Limited
	  	
	136	  	 J. Ray McDermott Middle East, Inc.
	  	
	239	  	 J. Ray McDermott Solutions, Inc.
	  	 (formerly J. Ray McDermott Engineering Holdings, Inc.)

	625	  	 J. Ray McDermott Technology, Inc.
	  	
	1957	  	 J. Ray McDermott UK Ltd.
	  	
	1960	  	 J. Ray McDermott Underwater Services, Inc.
	  	

					
	248	  	 J. Ray McDermott West Africa Holdings, Inc.
	  	
	244	  	 J. Ray McDermott West Africa, Inc.
	  	
	601	  	 J. Ray McDermott, Inc.
	  	
	207	  	 J. Ray McDermott, S.A.
	  	
	644	  	 Lagniappe Insurance Company, Ltd.
	  	
	193	  	 Malmac Sdn. Bhd.
	  	
	132	  	 McDermott (Malaysia) Sendirian Berhad
	  	
	904	  	 McDermott Abu Dhabi Offshore Construction Company
	  	
	915	  	 McDermott Arabia Company Limited
	  	
	149	  	 McDermott Australia Pty. Ltd.
	  	 (formerly McDermott Industries (Aust.) Pty. Limited)

	183	  	 McDermott Azerbaijan Marine Construction, Inc.
	  	
	241	  	 McDermott Caspian Contractors, Inc.
	  	
	275	  	 McDermott Cayman Ltd.
	  	
	181	  	 McDermott Far East, Inc.
	  	
	133	  	 McDermott Gulf Operating Company, Inc.
	  	
	177	  	 McDermott Holdings (U.K.) Limited
	  	
	300	  	 McDermott Incorporated
	  	
	147	  	 McDermott International B.V.
	  	
	120	  	 McDermott International Investments Co., Inc.
	  	
	119	  	 McDermott International Marine Investments N.V.
	  	
	213	  	 McDermott International Marketing, Inc.
	  	 (formerly McDermott International Beijing, Inc.)

	130	  	 McDermott International Trading Co., Inc.
	  	
	1971	  	 McDermott International Vessels, Inc.
	  	
	100	  	 McDermott International, Inc.
	  	
	1962	  	 McDermott Kft.
	  	
	349	  	 McDermott Marine Construction Limited
	  	
	1986	  	 McDermott Marine Mexico, S.A. de C.V.
	  	
	135	  	 McDermott Offshore Services Company, Inc.
	  	
	176	  	 McDermott Old JV Office, Inc.
	  	
	162	  	 McDermott Overseas Investment Co. N.V.
	  	
	390	  	 McDermott Overseas, Inc.
	  	
	1966	  	 McDermott Panama Holdings, S.A.
	  	
	170	  	 McDermott Servicos de Construcao, Ltda.
	  	
	320	  	 McDermott Trade Corporation
	  	
	306	  	 Mentor Subsea Technology Services, Inc.
	  	
	138	  	 North Atlantic Vessel, Inc.
	  	
	2021	  	 North Ocean II AS
	  	
	2023	  	 North Ocean II KS
	  	

					
	2022	  	 North Ocean V AS
	  	
	612	  	 Offshore Pipelines International, Ltd.
	  	
	618	  	 Offshore Pipelines Nigeria Limited
	  	
	619	  	 Offshore Pipelines Sdn. Bhd.
	  	
	626	  	 OPI Vessels, Inc.
	  	
	623	  	 OPMI, Ltd.
	  	
	185	  	 P. T. Bataves Fabricators
	  	
	180	  	 P. T. McDermott Indonesia
	  	
	901	  	 PT. Baja Wahana Indonesia
	  	 (formerly P.T. Babcock & Wilcox Indonesia)

	643	  	 PT. J. Ray McDermott Indonesia
	  	 (formerly PT. Jay Ray)

	636	  	 Sabine River Realty, Inc.
	  	
	1977	  	 Servicios de Fabricacion de Altamira, S.A. de C.V.
	  	
	1976	  	 Servicos Profesionales de Altamira, S.A. de C.V.
	  	
	2019	  	 Singapore Huangdao Pte. Ltd.
	  	
	640	  	 SparTEC, Inc.
	  	 (formerly J. Ray McDermott Spars, Inc.)

	145	  	 Varsy International N.V.Form of Change in Control Agreement

 Exhibit 10.9 

CHANGE IN CONTROL AGREEMENT 

This Change in Control Agreement (this “Agreement”) is by and among McDermott International, Inc. (the
“Company”), J. Ray McDermott, Inc. (the “Employer”), and Stephen M. Johnson (“Executive”). 

The Company and the Employer consider it essential to the interests of the Company’s stockholders to secure the
continued employment of key management personnel. The Board of Directors of the Company recognizes that the possibility of a Change in Control (as defined in Exhibit A) exists and that the uncertainty this raises may result in the departure
or distraction of management personnel to the detriment of the Company and its stockholders. In order to encourage the continued attention and dedication of key management personnel, this Agreement is being entered into by the Company, the Employer
and Executive. 
 The Company, the Employer and Executive agree as follows: 

 

	1.	 DEFINITIONS. Capitalized terms used but not otherwise defined herein are defined in Exhibit A hereto.

  

	2.	 SEVERANCE BENEFITS. 

 

	 	(a)	 Entitlement to Benefits If Executive experiences a Covered Termination and executes a Waiver and Release in accordance with
Section 2(b) below that is no longer subject to rescission, Executive will be entitled to the following: 

  

	 	(i)	 Accrued Benefits. The Accrued Benefits, payable on the 60th day after the Covered Termination Date, or such earlier date as may be
required by applicable law. 

  

	 	(ii)	 SERP. As of the Covered Termination Date, a fully vested and non-forfeitable interest in Executive’s account balance in the SERP,
payable in accordance with the terms of the SERP. 

  

	 	(iii)	 Unvested Equity-Based Awards. As of the Covered Termination Date, unless otherwise settled in accordance with the provisions of
Section 3 of this Agreement and the plans and agreements referred to therein, a fully vested and non-forfeitable interest in any outstanding unvested equity-based awards, and to the extent applicable, payable on the 60th day after the Covered
Termination Date; provided that no such award that is subject to Code Section 409A will be paid on a date earlier than is provided in the applicable plan and award agreement. 

 

	 	(iv)	 Severance Payment Based on Salary. An amount equal to 2.99 times the sum of (i) the Salary, and (ii) Executive’s target
award under the EICP for the year in which the Covered Termination Date occurs, in a lump sum in cash on the 60th day after the Covered Termination Date. 

  

 1 

	 	(v)	 Severance Payment Based on Bonus. 

  

	 	(1)	 Current Performance Year. An amount equal to the product of (A) the Salary and (B) the Target Bonus Percentage, with
the product of (A) and (B) prorated based on the number of days Executive was employed during the bonus year in which Executive’s Covered Termination Date occurs, in a lump sum in cash on the 60th day after the Covered Termination
Date. 

  

	 	(2)	 Prior Performance Year. If a bonus is paid under the EICP after Executive’s Covered Termination Date occurs for the immediately
preceding calendar year, then Executive will be entitled to an amount equal to the product of (A) the Salary and (B) the Target Bonus Percentage (or, if greater, the actual amount of the bonus determined under the EICP for such prior
calendar year), in a lump sum in cash at the later of (i) the 60th day after the Covered Termination Date and (ii) the time such bonus is paid to other EICP participants. 

 

	 	(vi)	 Other Compensation. The Other Compensation payable or provided in the manner and time specified in applicable documents governing such
amounts. 

  

	 	(b)	 Waiver and Release. Notwithstanding any provision of this Agreement to the contrary, in order to receive the severance benefits
payable under any provision of Section 2(a)(ii), (iii), (iv) and (v) of this Agreement, Executive must first execute an appropriate waiver and release agreement in a form acceptable to the Company (a currently acceptable form is
attached hereto as Exhibit B (the “Waiver and Release”)), whereby Executive shall agree to release and waive, in return for such severance benefits, any claims that Executive may have against the Company and the Employer and
their respective Affiliates, directors, officers and other customary persons from any claim or liability arising out of or related to Executive’s employment with or termination of employment from the Employer and any of its Affiliates (except
for amounts to which Executive is legally entitled pursuant to employee benefit plans and rights to indemnification); provided, however, such Waiver and Release shall not release any claim or cause of action by or on behalf of Executive for any
payment or vested benefit that is due under either this Agreement or any employee benefit plan or program of the Company or the Employer until fully paid prior to the receipt thereof. Executive shall have 21 days after receipt of the Waiver and
Release to consider and timely execute and return it to the Company. After return, Executive shall have an additional seven days in which Executive can revoke the Waiver and Release; thereafter, the Waiver and Release shall be irrevocable. The
Company or the Employer shall provide the Waiver and Release to Executive no later than five days after his Termination Date. If the Waiver and Release is not timely executed and returned, or it is revoked within the seven-day revocation period, no
benefits shall be paid 

  

 2 

	 	 
under this Agreement except those to which the Executive has a vested interest without regard to Section 2(a) of this Agreement. 

 

	 	(c)	 Reduction to Avoid Parachute Taxes. Exhibit C hereto sets forth the manner of reduction to be applied to avoid
parachute taxes. 

 In no event shall the payments or benefits provided for in Sections
2(a)(i), 2(a)(iii), 2(a)(iv) and 2(a)(v) above that are not subject to Code Section 409A be paid later than March 15th of the calendar year immediately following the calendar year in which Executive’s Covered Termination Date occurs.

  

	3.	 CHANGE IN CONTROL EQUITY-BASED BENEFITS. If a
Change in Control occurs, any benefits Executive may be entitled to with respect to any equity-based compensation shall be determined in accordance with the applicable plans and award agreements. In the event of any conflict between the terms of any
such plan or award agreement and Section 2(a)(iii) of this Agreement, the terms of such plan or award agreement shall control. 

  

	4.	 INTERNAL REVENUE CODE SECTION 409A. 

 

	 	(a)	 Compliance. It is the intent of the parties that the provisions of this Agreement either comply with Code Section 409A and the
Treasury regulations and guidance issued thereunder or that one or more elements of compensation or benefits be exempt from Code Section 409A. Accordingly, the parties intend that this Agreement be interpreted and operated in a manner
consistent with such requirements in order to avoid the application of penalty taxes under Code Section 409A to the extent reasonably practicable. The Company and the Employer shall neither cause nor permit: (i) any payment, benefit or
consideration to be substituted for a benefit that is payable under this Agreement if such action would result in the failure of any amount that is subject to Code Section 409A to comply with the applicable requirements of Code
Section 409A; or (ii) any adjustments to any equity interest to be made in a manner that would result in the equity interest’s becoming subject to Code Section 409A unless, after such adjustment, the equity interest is in
compliance with the requirements of Code Section 409A to the extent applicable. A Covered Termination is an “involuntary separation from service” for purposes of Code Section 409A. 

 

	 	(b)	 Waiting Period for Specified Employees. Notwithstanding any provision of this Agreement to the contrary, if Executive is a
“Specified Employee” (as that term is defined in Code Section 409A) as of Executive’s Covered Termination Date, then any amounts or benefits which are payable under this Agreement upon Executive’s “Separation from
Service” (within the meaning of Code Section 409A), which are subject to the provisions of Code Section 409A and not otherwise excluded under Code Section 409A, and would otherwise be payable during the first six-month period
following such Separation from Service, shall be paid on the first business day that (i) is at least six months after the date after 

 

 3 

	 	 
Executive’s Covered Termination Date or (ii) follows Executive’s date of death, if earlier. 

 

	5.	 CONFIDENTIALITY AND NON-DISCLOSURE. Executive acknowledges that, pursuant to this
Agreement, the Company and the Employer agree to provide Executive with Confidential Information regarding the Company and the Employer and their respective businesses and have previously provided Executive other such Confidential Information. In
return for this and other consideration provided under this Agreement, Executive agrees that Executive will not, while employed by the Employer or any of its Affiliates and thereafter, disclose or make available to any other person or entity, or use
for Executive’s own personal gain, any Confidential Information, except for such disclosures as required in the performance of Executive’s duties hereunder as may otherwise be required by applicable law or legal process (in which case
Executive shall notify the Company and the Employer of such legal or judicial proceeding as soon as practicable following Executive’s receipt of notice of such a proceeding, and permit the Company and the Employer to seek to protect its
interests and information). For purposes of this Agreement, “Confidential Information” shall mean any and all information, data and knowledge that has been created, discovered, developed or otherwise become known to the Company, the
Employer or any of their respective Affiliates or ventures or in which property rights have been assigned or otherwise conveyed to the Company, the Employer or any of their respective Affiliates or ventures, which information, data or knowledge has
commercial value in the business in which the Company, the Employer or any of their respective affiliates is engaged, except such information, data or knowledge as is or becomes known to the public without Executive’s violation of any of the
terms of this Section 5. By way of illustration, but not limitation, Confidential Information includes business trade secrets, secrets concerning the Company’s and the Employer’s plans and strategies, nonpublic information concerning
material market opportunities, technical trade secrets, processes, formulas, know-how, improvements, discoveries, developments, designs, inventions, techniques, marketing plans, manuals, records of research, reports, memoranda, computer software,
strategies, forecasts, new products, unpublished financial information, projections, licenses, prices, costs, and employee, customer and supplier lists or parts thereof. 

 

	6.	 RETURN OF PROPERTY. Executive agrees that at the time of Executive’s leaving employ with
the Employer or any of its Affiliates, Executive will deliver to the Employer (and will not keep in his possession, recreate or deliver to anyone else) all Confidential Information as well as all other devices, records, data, notes, reports,
proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, customer or client lists or information, or any other documents or property (including all reproductions of the aforementioned items) belonging
to the Company, the Employer or any of their respective Affiliates, regardless of whether such items were prepared by Executive. 

  

	7.	 NON-SOLICITATION. 

 

	 	(a)	 For consideration provided under this Agreement, including but not limited to the agreement of the Company and the Employer to provide Executive
with 

  

 4 

	 	 
Confidential Information (as defined in Section 5 above) regarding the Company, the Employer and their respective businesses, Executive agrees that while employed by the Employer or any of its
Affiliates and for twelve months following a Covered Termination Executive shall not, without the prior written consent of the Company and the Employer, directly or indirectly, (i) hire or induce, entice or solicit (or attempt to induce, entice or
solicit) any employee of the Company, the Employer or any of their respective Affiliates or ventures to leave the employment of the Company, the Employer or any of their respective Affiliates or ventures or (ii) solicit or attempt to solicit the
business of any customer or acquisition prospect of the Company, the Employer or any of their respective Affiliates or ventures with whom Executive had any actual contact while employed at the Employer. 

 

	 	(b)	 Executive acknowledges that these restrictive covenants under this Agreement, for which Executive received valuable consideration from the Company
and the Employer as provided in this Agreement, including, but not limited to the agreement of the Company and the Employer to provide Executive with Confidential Information regarding the Company, the Employer and their respective businesses are
ancillary to otherwise enforceable provisions of this Agreement that the consideration provided by the Company and the Employer gives rise to the interest of each of the Company and the Employer in restraining Executive and that the restrictive
covenants are designed to enforce Executive’s consideration or return promises under this Agreement. Additionally, Executive acknowledges that these restrictive covenants contain limitations as to time and scope of activity to be restrained
that are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other legitimate business interests of the Company and the Employer, including, but not limited to, the Company’s and the Employer’s
need to protect their Confidential Information. 

  

	8.	 NOTICES. For purposes of this Agreement, notices and all other communications must be in writing and will be deemed to
have been given when personally delivered or when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 

 

					
	If to the Company or the Employer:	  	777 N. Eldridge Parkway	  	
		  	Houston, TX 77079	  	
		  	ATTN: Gary L. Carlson,	  	
		  	Senior Vice President,	  	
		  	Human Resources	  	
			
	If to Executive:	  	  
	  	
		  	  
	  	
		  	  
	  	

 or to such other address as either party may furnish to the other in writing in
accordance with this Section. 
  

 5 

	9.	 APPLICABLE LAW. The validity, interpretation, construction and performance of this Agreement will be
governed by and construed in accordance with the substantive laws of the State of Texas, but without giving effect to any principles of conflict of laws thereunder which would result in the application of the laws of any other jurisdiction.

  

	10.	 SEVERABILITY. If any provision of this Agreement is determined to be invalid or unenforceable, then the invalidity or
unenforceability of that provision will not affect the validity or enforceability of any other provision of this Agreement and all other provisions shall remain in full force and effect. 

 

	11.	 WITHHOLDING OF TAXES. The Company or the Employer, as applicable, may withhold from any
payments under this Agreement all federal, state, local or other taxes as may be required pursuant to any applicable law or governmental regulation or ruling. 

 

	12.	 NO ASSIGNMENT; SUCCESSORS. Executive’s right to receive payments or benefits under
this Agreement shall not be assignable or transferable, whether by pledge, creation of a security interest or otherwise, whether voluntary, involuntary, by operation of law or otherwise, other than a transfer by will or by the laws of descent or
distribution, and in the event of any attempted assignment or transfer contrary to this Section 12 the Company or Employer will have no liability to pay any amount so attempted to be assigned or transferred. This Agreement inures to the benefit
of and is enforceable by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

This Agreement is binding upon and inures to the benefit of the Company and the Employer and their respective successors
and assigns (including, without limitation, any company into or with which the Company may merge or consolidate). 
  

	13.	 NUMBER AND GENDER. Wherever appropriate herein, words used in the singular will include the
plural, the plural will include the singular, and the masculine gender will include the feminine gender. 

  

	14.	 CONFLICTS. This Agreement constitutes the entire understanding of the parties with respect to its subject matter and
supersedes any other agreement or other understanding, whether oral or written, express or implied, between them concerning, related to or otherwise in connection with, the subject matter hereof; provided that: if Executive is entitled to payments
and benefits under both Section 2 of this Agreement and the Restructuring Transaction Retention Agreement between the Company and Executive, dated as of December 10, 2009 (the “Retention Agreement”), Executive will receive
payments and benefits only under the Retention Agreement (and not under Section 2 of this Agreement), (it being the intention of the parties hereto that, in no event, shall substantially the same benefits become payable under both the Retention
Agreement and Section 2 of this Agreement). Without limiting the generality of the foregoing, this Agreement supersedes the Change in Control Agreement by and between the Company, and Executive, dated April 1, 2009 (the “Prior Change
in Control Agreement”) which is hereby terminated. 

  

 6 

	15.	 AMENDMENT AND WAIVER. No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and signed by Executive and such officer as may be specifically designated by the Board. No written waiver by any party hereto at any time of any breach by the other party hereto
of, or of any lack of compliance with, any condition or provision of this Agreement to be performed by any other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time (unless
specifically provided in such written waiver). 

  

	16.	 COUNTERPARTS. This Agreement may be executed in several counterparts, each of which will be deemed to be an original but all
of which together will constitute one and the same instrument. 

  

	17.	 TERM. The effective date of this Agreement shall commence on August 9, 2010 (“Effective Date”) and shall
end on the earlier of (a) the date one year after a Change in Control occurs, or (b) the date on which Executive’s employment is terminated under circumstances that do not constitute a Covered Termination; provided that terms of this
Agreement which must survive the expiration of the term of this Agreement in order to be effectuated (including the provisions of Sections 5, 6 and 7 and the related definitional provisions) will survive. 

[Intentionally Left Blank] 
  

 7 

			
	McDERMOTT INTERNATIONAL, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		
	Date:	 	  

 

			
	J. RAY McDERMOTT, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		
	Date:	 	  

 

			
	EXECUTIVE
		
	By:	 	  

	Name:	 	  

		
	Date:	 	  

 

 8 

 EXHIBIT A 

DEFINITIONS 

The following terms have the meanings set forth below. 

“Accrued Benefits” means 
  

	 	(i)	 any portion of Executive’s Salary earned through the Covered Termination Date and not yet paid; 

 

	 	(ii)	 reimbursement for any and all amounts advanced in connection with Executive’s employment for reasonable and necessary expenses incurred by
Executive through the date of Covered Termination in accordance with the Company’s policies and procedures on reimbursement of expenses; and 

  

	 	(iii)	 any earned vacation pay not theretofore used or paid in accordance with the Company’s policy for payment of earned and unused vacation time.

 “Affiliate” means an Affiliate within the meaning of Rule 12b-2 promulgated
under Section 12 of the Exchange Act. 
 “Board” means the Board of Directors of the
Company. 
 “Cause” means 

 

	 	(i)	 the continued failure of Executive to perform substantially Executive’s duties with the Company (occasioned by reason other than physical or
mental illness or disability of Executive) after a written demand for substantial performance is delivered to Executive by the Compensation Committee of the Board which specifically identifies the manner in which the Compensation Committee of the
Board or the Chief Executive Officer believes that Executive has not substantially performed Executive’s duties, after which Executive shall have 30 days to defend or remedy such failure to substantially perform Executive’s duties;

  

	 	(ii)	 the engaging by Executive in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company; or

  

	 	(iii)	 the conviction of Executive with no further possibility of appeal for, or plea of guilty or nolo contendere by Executive to, any felony.

 The cessation of employment of Executive under subparagraph (i) and (ii) above
shall not be deemed to be for “Cause” unless and until there shall have been delivered to Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the
Compensation Committee of the Board at a meeting of such Committee called and held for such purpose (after reasonable notice is provided to Executive and Executive is given 

 

 A-1 

 
an opportunity, together with counsel, to be heard before such Committee), finding that, in the good faith opinion of such Committee, Executive is guilty of the conduct described in subparagraph
(i) or (ii) above, and specifying the particulars thereof in detail. 
 A “Change in Control” will be
deemed to have occurred upon the occurrence of any of the following: 
  

	 	(a)	 30% Ownership Change: Any Person, other than an ERISA-regulated pension plan established by the Company, the Employer, or an Affiliate
of either of them, makes an acquisition of Outstanding Voting Stock and is, immediately thereafter, the beneficial owner of 30% or more of the then Outstanding Voting Stock, unless such acquisition is made directly from the Company in a transaction
approved by a majority of the Incumbent Directors; or any group is formed that is the beneficial owner of 30% or more of the Outstanding Voting Stock; or 

 

	 	(b)	 Board Majority Change: Individuals who are Incumbent Directors cease for any reason to constitute a majority of the members of
the Board; or 

  

	 	(c)	 Major Mergers and Acquisitions: Consummation of a Business Combination unless, immediately following such Business Combination,
(i) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Voting Stock immediately before such Business Combination beneficially own, directly or indirectly, at least 50% of the then
outstanding shares of voting stock of the parent corporation resulting from such Business Combination in substantially the same relative proportions as their ownership, immediately before such Business Combination, of the Outstanding Voting Stock,
(ii) if the Business Combination involves the issuance or payment by the Company of consideration to another entity or its shareholders, the total fair market value of such consideration plus the principal amount of the consolidated long-term
debt of the entity or business being acquired (in each case, determined as of the date of consummation of such Business Combination by a majority of the Incumbent Directors) does not exceed 50% of the sum of the fair market value of the Outstanding
Voting Stock plus the principal amount of the Company’s consolidated long-term debt (in each case, determined immediately before such consummation by a majority of the Incumbent Directors), (iii) no Person (other than any corporation
resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of the then outstanding shares of voting stock of the parent corporation resulting from such Business Combination and (iv) a majority of the
members of the board of directors of the parent corporation resulting from such Business Combination were Incumbent Directors of the Company immediately before consummation of such Business Combination; or 

 

 A-2 

	 	(d)	 Major Asset Dispositions: Consummation of a Major Asset Disposition unless, immediately following such Major Asset Disposition,
(i) individuals and entities that were beneficial owners of the Outstanding Voting Stock immediately before such Major Asset Disposition beneficially own, directly or indirectly, at least 50% of the then outstanding shares of voting stock of
the Company (if it continues to exist) and of the entity that acquires the largest portion of such assets (or the entity, if any, that owns a majority of the outstanding voting stock of such acquiring entity) and (ii) a majority of the members
of the Board (if it continues to exist) and of the entity that acquires the largest portion of such assets (or the entity, if any, that owns a majority of the outstanding voting stock of such acquiring entity) were Incumbent Directors of the Company
immediately before consummation of such Major Asset Disposition; or 

  

	 	(e)	 Other Circumstances: Such other circumstances as may be deemed by the Board in its sole discretion to constitute a change in control
of the Company. 

 For purposes of the definition of a “Change in Control”, 

 

	 	(1)	 “Person” means an individual, entity or group; 

 

	 	(2)	 “group” has the same meaning as used in Section 13(d)(3) of the Exchange Act; 

 

	 	(3)	 “beneficial owner” is used as it is defined for purposes of Rule 13d-3 under the Exchange Act; 

 

	 	(4)	 “Outstanding Voting Stock” means outstanding voting securities of the Company entitled to vote generally in the election of
directors; and any specified percentage or portion of the Outstanding Voting Stock (or of other voting stock) is determined based on the combined voting power of such securities; 

 

	 	(5)	 “Incumbent Director” means a director of the Company (x) who was a director of the Company on the effective date of this
Agreement or (y) who becomes a director after such date and whose election, or nomination for election by the Company’s shareholders, was approved by a vote of a majority of the Incumbent Directors at the time of such election or
nomination, except that any such director will not be deemed an Incumbent Director if his or her initial assumption of office occurs as a result of an actual or threatened election contest or other actual or threatened solicitation of proxies by or
on behalf of a Person other than the Board; 

  

 A-3 

	 	(6)	 “election contest” is used as it is defined for purposes of Rule 14a-11 under the Exchange Act; 

 

	 	(7)	 “Business Combination” means 

  

	 	(x)	 a merger or consolidation involving the Company or its stock, or 

 

	 	(y)	 an acquisition by the Company, directly or through one or more subsidiaries, of another entity or its stock or assets; 

 

	 	(8)	 “parent corporation resulting from a Business Combination” means the Company if its stock is not acquired or converted in the
Business Combination and otherwise means the entity which as a result of such Business Combination owns the Company or all or substantially all the Company’s assets either directly or through one or more subsidiaries; and

  

	 	(9)	 “Major Asset Disposition” means the sale or other disposition in one transaction or a series of related transactions of 50% or more
of the assets of the Company and its subsidiaries on a consolidated basis; and any specified percentage or portion of the assets of the Company will be based on fair market value, as determined by a majority of the Incumbent Directors.

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

“Company” means McDermott International, Inc., and, except for purposes of determining whether a Change
in Control has occurred, any successor thereto. 
 “Confidential Information” means any and all
information, data and knowledge that has been created, discovered, developed or otherwise become known to the Company, the Employer or any of their respective Affiliates or in which property rights have been assigned or otherwise conveyed to the
Company, the Employer or any of their respective Affiliates, which information, data or knowledge has commercial value in the business in which the Company, the Employer or any of their respective Affiliates or ventures is engaged, except such
information, data or knowledge as is or becomes known to the public without violation of the terms of this Agreement. By way of illustration, but not limitation, Confidential Information includes business trade secrets, secrets concerning the
Company’s, the Employer’s or any of their respective Affiliates’ plans and strategies, nonpublic information concerning material market opportunities, technical trade secrets, processes, formulas, know-how, improvements, discoveries,
developments, designs, inventions, techniques, marketing plans, manuals, records of research, reports, memoranda, computer software, strategies, forecasts, new products, unpublished financial information, projections, licenses, prices, costs, and
employee, customer and supplier lists. 
 “Covered Termination” means a termination of
Executive’s employment (such that Executive ceases to be employed by the Employer, the Company or any of their respective 

 

 A-4 

 
Affiliates) that is a “Separation from Service” (as defined in Code Section 409A and the Treasury regulations and guidance issued thereunder) within the one-year period following a
Change in Control during the term of this Agreement due to: 
  

	 	(a)	 an involuntary termination that does not result from any of the following: 

 

	 	(1)	 death; 

  

	 	(2)	 Disability; or 

  

	 	(3)	 termination for Cause; or 

  

	 	(b)	 a termination by Executive for Good Reason. 

“Covered Termination Date” means (i) if Executive’s employment is terminated for Cause, the
date on which the Company delivers to Executive the requisite resolution, or, with respect to a termination under subparagraph (iii) of the definition of Cause, the date on which the Employer notifies Executive of such termination, (ii) if
Executive’s employment is terminated by the Employer for a reason other than Cause or Executive’s death, the date on which the Employer notifies Executive of such termination, (iii) if Executive’s employment is terminated by
Executive for Good Reason, the date on which Executive notifies the Employer of such termination (after having given the Company notice and a 30-day cure period), or (iv) if Executive’s employment is terminated by reason of death, the date
of death of Executive. 
 “Disability” means circumstances which would qualify Executive for
long-term disability benefits under the Company’s or the Employer’s long-term disability plan, whether or not Executive is covered under such plan. 

“EICP” means the McDermott International, Inc. Executive Incentive Compensation Plan, or any successor
plan thereto. 
 “Employer” means J. Ray McDermott, Inc., and any successor thereto.

 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“Excise Tax” means any excise tax imposed under Code Section 4999. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Good Reason” means any one or more of the following events which occurs following a Change in Control:

  

	 	(a)	 a material diminution in the duties or responsibilities of Executive from those applicable immediately before the date on which a Change in Control
occurs; 

  

 A-5 

	 	(b)	 a material reduction in Executive’s annual Salary as in effect on the Effective Date of this Agreement or as the same may be increased from
time to time; 

  

	 	(c)	 the failure by the Company or the Employer to continue in effect any compensation plan in which Executive participates immediately before the Change
in Control which is material to Executive’s total compensation, unless a comparable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or the failure by the Company or the Employer to
continue Executive’s participation therein (or in such substitute or alternative plan) on a basis not materially less favorable than existed immediately before the Change in Control, unless the action by the Company or the Employer applies to
all similarly situated employees; 

  

	 	(d)	 the failure by the Company and the Employer to continue to provide Executive with material benefits in the aggregate that are substantially similar
to those enjoyed by Executive under any of the Company’s (or the Employer’s or their respective Affiliates’) pension, savings, life insurance, medical, health and accident, or disability plans in which Executive was participating
immediately before the Change in Control if such benefits are material to Executive’s total compensation, the taking of any other action by the Company or the Employer which would directly or indirectly materially reduce any of such benefits or
deprive Executive of any fringe benefit enjoyed by Executive at the time of the Change in Control if such fringe benefit is material to Executive’s total compensation, unless the action by the Company or the Employer applies to all similarly
situated employees; or 

  

	 	(e)	 a change in the location of Executive’s principal place of employment with the Employer or the Company by more than 50 miles from the location
where Executive was principally employed immediately before the Change in Control without Executive’s consent. 

If a Change in Control occurs and any of the events described above occurs prior to the first anniversary of such Change
in Control (an “Event”), Executive shall give the Company written notice (the “Executive Notice”) within 60 days following Executive’s knowledge of an Event that Executive intends to terminate employment as a result. The
Company shall have 30 days following receipt of the Executive Notice in which to cure the Event. If the Company does not take such action within that time, the Event shall constitute Good Reason. If Executive does not provide the Executive Notice
within 60 days as required above then the Event shall not constitute Good Reason, and thereafter, for purposes of determining whether Executive has Good Reason, Executive’s terms and conditions of employment after the occurrence of the Event
shall be substituted for those terms and conditions of Executive’s employment in effect immediately prior to the date of this Agreement. 
  

 A-6 

 “Other Compensation” shall mean all payments and benefits
to which Executive may be entitled under the terms of any applicable compensation arrangement or benefit plan or program of the Company that do not specify the time of distribution, other than such payments and benefits provided for under
Section 2(a)(i) through Section 2(a)(v) of this Agreement; provided that Other Compensation shall not include any entitlement to severance under any severance policy of the Company generally applicable to the salaried employees of the
Company. 
 “Salary” means Executive’s annual base salary as in effect immediately before
the termination of Executive’s employment or, if higher, the base salary in effect immediately before the first event or circumstance constituting Good Reason. 

“SERP” means the McDermott International, Inc. New Supplemental Executive Retirement Plan, as in effect
on the Covered Termination Date. 
 “Target Bonus Percentage” means Executive’s target
incentive award opportunity under the EICP in effect immediately before the termination of Executive’s employment or, if higher, immediately before the first event or circumstance constituting Good Reason. 

 

 A-7 

 EXHIBIT B 

WAIVER AND RELEASE 

FORM WAIVER AND RELEASE 

Pursuant to the terms of the Change in Control Agreement made as of
                    ,             , by and among McDermott International,
Inc. (the “Company”), J. Ray McDermott, Inc. (the “Employer”) and me, and in consideration of the payments made to me and other benefits to be received by me pursuant thereto, I,
                    , do freely and voluntarily enter into this WAIVER AND RELEASE (the “Release”), which shall become effective and
binding on the eighth day following my signing the Release as provided herein (the “Effective Date”). It is my intent to be legally bound, according to the terms set forth below. 

In exchange for the payments and other benefits to be provided to me by the Company and the Employer pursuant to Section 2 of the
Change in Control Agreement (the “Separation Payment” and “Separation Benefits”), I hereby agree and state as follows: 
  

	1.	 I, individually and on behalf of my heirs, personal representatives, successors, and assigns, release, waive, and discharge the Company and the
Employer, their respective predecessors, successors, parents, subsidiaries, merged entities, operating units, affiliates, divisions, insurers, administrators, trustees, and the agents, representatives, officers, directors, shareholders, employees
and attorneys of each of the foregoing (hereinafter “Released Parties”), from all claims, debts, liabilities, demands, obligations, promises, acts, agreements, costs, expenses, damages, actions, and causes of action, whether in law or in
equity, whether known or unknown, suspected or unsuspected, arising from my employment and termination from employment with the Employer and its affiliates, including but not limited to any and all claims pursuant to Title VII of the Civil Rights
Act of 1964, as amended by the Civil Rights Act of 1991 (42 U.S.C. § 2000e, et seq.), which prohibits discrimination in employment based on race, color, national origin, religion or sex; the Civil Rights Act of 1866 (42 U.S.C.
§§1981, 1983 and 1985), which prohibits violations of civil rights; the Age Discrimination in Employment Act of 1967, as amended, and as further amended by the Older Workers Benefit Protection Act (29 U.S.C. §621, et seq.),
which prohibits age discrimination in employment; the Employee Retirement Income Security Act of 1974, as amended (29 U.S.C. § 1001, et seq.), which protects certain employee benefits; the Americans with Disabilities Act of 1990, as
amended (42 U.S.C. § 12101, et seq.), which prohibits discrimination against the disabled; the Family and Medical Leave Act of 1993 (29 U.S.C. § 2601, et seq.), which provides medical and family leave; the Fair Labor
Standards Act (29 U.S.C. § 201, et seq.), including the wage and hour laws relating to payment of wages; and all other federal, state and local laws and regulations prohibiting employment discrimination. This Release also includes, but
is not limited to, a release of any claims for breach of contract, mental pain, suffering and anguish, emotional upset, impairment of economic opportunities, unlawful interference with employment rights, defamation, intentional or negligent
infliction of emotional distress, fraud, wrongful termination, wrongful discharge in violation of public policy, breach of any express or implied covenant of good faith and fair dealing, that the Company, the Employer or any of their respective

  

 B-1 

	 	 
Affiliates has dealt with me unfairly or in bad faith, and all other common law contract and tort claims. 

Notwithstanding the foregoing, I am not waiving any rights or claims that may arise after this Release is signed by me.
Moreover, this Release does not apply to any claims or rights which, by operation of law, cannot be waived, including the right to file an administrative charge or participate in an administrative investigation or proceeding; however, by signing
this Release I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding. Nothing in this Release shall affect in any way my rights of indemnification and
directors and officers liability insurance coverage provided to me pursuant to the Company’s by-laws and/or pursuant to any agreement in effect prior to the effective date of my termination, which shall continue in full force and effect, in
accordance with their respective terms, following the effective date of this Release. 
  

	2.	 I forever waive and relinquish any right or claim to reinstatement to active employment with the Company, the Employer, their respective affiliates,
subsidiaries, divisions, parent, and successors. I further acknowledge that neither the Company nor the Employer has any obligation to rehire or return me to active duty at any time in the future. 

 

	3.	 I acknowledge that all agreements applicable to my employment respecting noncompetition, nonsolicitation and the confidential or proprietary
information of the Company and the Employer and their respective affiliates shall continue in full force and effect in accordance with the terms of such agreements. 

 

	4.	 I agree that I will refrain from any libel, slander, defamation or other disparaging comments about the Company, the Employer, their respective
affiliates, or any current or former officer, director or employee of the Company, the Employer or any of their respective affiliates; provided, however, that nothing in this paragraph shall apply to or restrict in any way the communication of
information by me to any state or federal law enforcement agency or require notice to the Company, the Employer or any of their respective affiliates thereof, and I will not be in breach of the covenant contained in this paragraph solely by reason
of my testimony which is compelled by process of law. 

  

	5.	 I hereby acknowledge and affirm as follows: 

  

	 	a.	 I have been advised to consult with an attorney prior to signing this Release. 

 

	 	b.	 I have been extended a period of 21 days in which to consider this Release. 

 

	 	c.	 I understand that for a period of seven days following my execution of this Release, I may revoke the Release by notifying Company and the Employer,
in writing, of my desire to do so. I understand that after the seven-day period has elapsed and I have not revoked the Release, it shall then become effective and enforceable. I understand that the Separation Payment will not be made under the
Change in Control Agreement and I will not be entitled to the Severance Benefits 

  

 B-2 

	 	 
made under the Change in Control Agreement until after the seven-day period has elapsed and I have not revoked the Release. 

 

	 	d.	 I acknowledge that I have received payment for all wages due at time of my employment termination, including reimbursement for any and all business
related expenses. I further acknowledge that the Separation Payment and the Separation Benefits are consideration to which I am not otherwise entitled under any Company plan, program, or prior agreement. 

 

	 	e.	 I certify that I have returned all property of the Company, the Employer and their respective affiliates, including but not limited to, keys, credit
and fuel cards, files, lists, and documents of all kinds regardless of the medium in which they are maintained. 

  

	 	f.	 I have carefully read the contents of this Release and I understand its contents. I am executing this Release voluntarily, knowingly, and without
any duress or coercion. 

  

	6.	 I acknowledge that this Release shall not be construed as an admission by any of the Released Parties of any liability whatsoever, or as an
admission by any of the Released Parties of any violation of my rights or of any other person, or any violation of any order, law, statute, duty or contract. 

 

	7.	 I agree that the terms and conditions of this Release are confidential and that I will not, directly or indirectly, disclose the existence of or
terms of this Release to anyone other than my attorney or tax advisor, except to the extent such disclosure may be required for accounting or tax reporting purposes or otherwise be required by law or direction of a court. Nothing in this provision
shall be construed to prohibit me from disclosing this Release to the Equal Employment Opportunity Commission in connection with any complaint or charge submitted to that agency. 

 

	8.	 In the event that any provision of this Release should be held void, voidable, or unenforceable, the remaining portions shall remain in full force
and effect. 

  

	9.	 I hereby declare that this Release constitutes the entire and final settlement between me and the Company and the Employer, superseding any and all
prior agreements, and that neither the Company nor the Employer has made any promise or offered any other agreement, except those expressed in this Release, to induce or persuade me to enter into this Release. 

 

 B-3 

 IN WITNESS WHEREOF, I have signed this Release on the      day of
            , 20    . 
  

	
	  

 

	
	  

	Printed Name
	
	  

	Social Security Number

  

 B-4 

 EXHIBIT C 

Excise Tax Modified Cutback Provisions 

Anything in this Agreement to the contrary notwithstanding, in the event the Firm (as defined below) shall determine that
Executive shall become entitled to payments and/or benefits provided by this Agreement which would be subject to the excise tax imposed by Code Section 4999 (the “Payments”), the Firm shall determine whether to reduce any of
the Payments to the Reduced Amount (as defined below). The Payments shall be reduced to the Reduced Amount only if the Firm determines that Executive would have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the
Executive’s Payments were reduced to the Reduced Amount. If such a determination is not made by the Firm, Executive shall receive all Payments to which Executive is entitled under this Agreement. 

If the Firm determines that aggregate Payments should be reduced to the Reduced Amount, the Company shall promptly give
Executive notice to that effect and a copy of the detailed calculation thereof. All determinations made by the Firm under this Exhibit C shall be binding upon the Company and Executive absent manifest error and shall be made as soon as
reasonably practicable and in no event later than 15 business days of the receipt of notice from the Company that there has been a Payment, or such earlier time as is requested by the Company. For purposes of reducing the Payments to the Reduced
Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced. The reduction of the amounts payable hereunder, if applicable, shall be made by reducing, in order, cash payments otherwise due under Sections 2(a)(iv),
2(a)(v)(1) and 2(a)(v)(2) of this Agreement, and then by reducing equity-based compensation otherwise due under Section 2(a)(iii) of this Agreement in chronological order with the most recent equity based compensation awards reduced first.

 As a result of the uncertainty in the application of Code Section 4999 at the time of the initial
determination by the Firm hereunder, it is possible that amounts will have been paid or distributed by the Company to or for the benefit of Executive pursuant to this Agreement which should not have been so paid or distributed
(“Overpayment”) or that additional amounts which will have not been paid or distributed by the Company to or for the benefit of Executive pursuant to this Agreement could have been so paid or distributed
(“Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Firm, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or
Executive which the Firm believes has a high probability of success determines that an Overpayment has been made, Executive shall pay any such Overpayment to the Company together with interest at the applicable federal rate provided for in Code
Section 7872(f)(2); provided, however, that no amount shall be payable by Executive to the Company if and to the extent such payment would not either reduce the amount on which Executive is subject to tax under Code Sections 1 and 4999
or generate a refund of such taxes. In the event that the Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be paid promptly (and in no event later than 60 days
following the date on which the Underpayment is determined) by the Company to or for the benefit of Executive together with interest at the applicable federal rate provided for in Code Section 7872(f)(2). 

 

 C-1 

 For purposes hereof, the following terms have the meanings set forth below:

 “Firm” shall mean an internationally recognized accounting or employee
benefits consulting firm selected by the Company with the input of Executive (but without Executive’s consent) and which shall not, during the one year preceding the date of its selection, have acted in any way on behalf of the Company or its
affiliated companies. 
 “Net After-Tax Receipt” shall mean the present value
(as determined in accordance with Code Sections 280G(b)(2)(A)(ii) and 280G(d)(4)) of a Payment net of all taxes imposed on Executive with respect thereto under Code Sections 1 and 4999 and under applicable state and local laws, determined by
applying the highest marginal rate under Code Section 1 and under state and local laws which applied to the Executive’s taxable income for the immediately preceding taxable year, or such other rate(s) as Executive certifies, in
Executive’s sole discretion, as likely to apply to Executive in the relevant tax year(s). 

“Reduced Amount” shall mean the greatest amount of Payments that can be paid that would
not result in the imposition of the excise tax under Code Section 4999 if the Firm determines to reduce Payments pursuant to the first paragraph of this Exhibit C. 

 

 C-2

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