Document:

EX-10.1

 Exhibit 10.1 

May 12, 2014 
 Donald Berg 

14212 Reserve Cove 
 Prospect, KY 40059 

Dear Don: 
 Congratulations on your retirement from Brown-Forman
(the “Company”), and thank you again for your many years of service. As we have discussed, you handed off your duties as Chief Financial Officer effective January 31, 2014, and you will retire from employment with the Company
effective April 30, 2014. In the interim period between January 31, 2014, and April 30, 2014, you will continue to be employed by the Company and will help transition your duties. This letter outlines the ways the Company is offering
to support you during and after this transition. 
 Don, you are entitled to receive the first category of benefits contained in Section 1 of this
letter whether or not you sign the Release and Agreement (Section 3). The benefits contained in Section 2 however, require your agreement and signature. If you decide to sign the Release and Agreement, note that you are also agreeing to
everything contained in Sections 1 and 2 as explained below. 
 We would like to call your attention to one specific item that is discussed below –
understanding how to continue your health care and other insurance coverages after you move from employment status to retirement. To avoid any interruption in your medical coverage, we encourage you to act quickly on the information you will be sent
shortly after your last date of employment. 
 Section 1 – General Information 

This section describes your status and rights in various matters, and explains steps you may need to take. To confirm, you do not have to sign the
Release and Agreement to receive any of the benefits listed in this Section 1. 
 Vacation 

You will be paid for the number of unused vacation days remaining as of your last date of employment, in the payroll cycle following your last date of
employment. Either you or Sue Smith can provide this information to us; please let us know how you would like to handle. To the extent your last date of employment is before April 30, 2014, however, you will be paid for the number of unused
vacation days remaining as of your last date of employment, in the payroll cycle following your last date of employment, and those unused days will be counted as days of employment for purposes of your short-term cash incentive. 

Holiday Bonus 
 You will receive a pro-rated holiday bonus
based on your last date of employment with the Company. (The holiday bonus is accrued on a December-November cycle.) This amount will be paid in the payroll cycle following your last date of employment. 

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 American Express and Other Amounts Owed to the Company 

You are responsible for completing any outstanding expense reports and making arrangements to reimburse any amounts owed the Company. You must take these
actions whether or not you sign the Release and Agreement. Let’s discuss the easiest way to manage these matters, with help from Sue Smith. 

Employee Benefits 
 Following is a brief explanation of
what happens to your Company benefits upon the end of your employment. You will receive additional personalized information directly from the Brown-Forman Benefits Service Center. Please contact the Brown-Forman Benefits Service Center by calling
1-877-775-1477 with questions regarding any of these items, or to change an address on file. Don, you are also welcome to contact Cheryl Beckman (502-774-6747) or Donna Wimbec (502-774-7306) directly if you prefer. 

Medical, Vision and Dental Coverage Continuation. Your medical, vision, and dental coverages end on the last date of your employment. If
you so elect, those coverages can be continued for up to 18 months under a law known as COBRA. Shortly after your last date of employment, you will receive, at your home address as prescribed by the COBRA law, an “Election and Enrollment”
form which you must complete, sign and return as directed in that letter. Please note: COBRA information will come from Conexis, our partner for administering COBRA. If you do not receive a COBRA packet within two weeks following your last date of
employment, please notify the B-F Benefits Service Center at 1-877-775-1477. Note the attached flow chart describing the COBRA administration process. 

Reinstatement of your medical, vision, and dental coverages under COBRA require completion of the COBRA enrollment form and forwarding the
document, along with any required premium, to the address specified on the form. You will have 60 days from the date of your COBRA package to enroll in COBRA benefits. The premium notice will follow soon after your enrollment form is received by
Conexis. Failure to pay the premium will result in your coverage not being continued. Reinstatement can take up to three weeks from the mailing of the required information. Once coverages are reinstated, they will be retroactive to the last date of
your employment, so no lapse in coverage will occur. If you have claims denied during this period, please request that your provider re-file once reinstatement has occurred. 

Retiree Medical. You and your spouse are eligible for retiree medical coverage under the B-F Retiree Medical plan. If you choose to
elect that benefit, you may do so within 31 days of your last date of employment. Alternatively, you can elect COBRA through the subsidy period (ending January 31, 2015) to take advantage of the subsidized premiums. You will then have 31
days from the subsidy end date to elect retiree medical. If however, you are eligible for other employer sponsored coverage (i.e., coverage from a new employer), you may elect to waive enrollment in the B-F Retiree Medical plan until
such time your other employer coverage ends by contacting the B-F Benefits Service Center at 1-877-775-1477. The B-F Retiree Medical waiver due to other employer coverage must be made within 31 days of your last date of employment, or within 31
days of the end of the subsidy period (if applicable), in order to be eligible to enroll at a later date. Once waived, the coverage can be later be elected within 31 days of your other employer sponsored coverage ending by contacting the B-F
Benefits Service Center. 

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 Flexible Spending Accounts (FSAs) 

Health Care FSA – You may elect COBRA for your Health Care FSA following your last date of employment (after deducting submitted
expenses from contributions thus far from payroll). If you elect to continue the Health Care FSA benefit under COBRA, please note that the Your Spending Account (YSA) Debit card will no longer be active after your last date of employment.
Reimbursement is requested for eligible FSA expenses by completing claim forms (“Health Care Claim Forms”) which can be requested through YSA at 1-877-775-1477. If you elect not to continue the Health Care FSA under COBRA, you have
until March 1 following the end of the year to submit claims for reimbursement for eligible services incurred through your last date of employment. 

If you elect COBRA for your Health Care FSA and continue that coverage through the end of the plan year, you have until March 1 following
the end of the year to file claims for reimbursement for eligible services and items received or purchased up to December 31 of the plan year. Should you drop your COBRA coverage at any point prior to the end of the plan year, you have until
March 1 following the end of the year to file for reimbursement for eligible services and items received or purchased prior to the date of the COBRA termination. 

IMPORTANT REMINDER FOR FSA REIMBURSEMENTS: Keep copies of all receipts for services and/or items for which you receive reimbursement
from either a Health Care or Dependent Care FSA with your tax records for as long as you retain those tax records (recommended seven years). YSA, as required by the IRS, may request verification of expenses well after the end of the plan year. 

For questions about your FSA account(s), contact YSA at 1-877-775-1477. 

B-F Live Well Health Incentive Account (LWIA) 

You may elect COBRA for your LWIA if you have a positive balance in your account as of your last date of employment (after deducting submitted
expenses from incentives earned). If you elect to continue the LWIA benefit under COBRA, please note that the Your Spending Account (YSA) Debit card will no longer be active after your last date of employment. Reimbursement is requested for eligible
expenses by completing claim forms (“Health Care Claim Forms”) which can be requested by contacting YSA at 1-877-775-1477. If you elect not to continue the LWIA under COBRA, you have until March 1 following the end of the year to
submit claims for reimbursement for eligible services incurred through December 31st. 

If you elect COBRA for your LWIA and continue that coverage through the end of the calendar year, you have until March 1 following the end
of the year to file claims for reimbursement for eligible expenses incurred through December 31st. Should you drop your COBRA coverage at any point prior to the end of the year, you have
until March 1 following the end of the year to file for reimbursement for eligible expenses incurred prior to the date of the COBRA termination. 

IMPORTANT REMINDER FOR LWIA REIMBURSEMENTS: Keep copies of all receipts for services and/or items for which you receive reimbursement
from Health Care providers with your tax records for as long as you retain those tax records (recommended seven years). YSA, as required by the IRS, may request verification of expenses well after the end of the plan year. 

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 For questions about your LWIA account, contact YSA at 1-877-775-1477. 

 

	 	•	 	Group Life Insurance. All life insurance benefits end on your last date of employment. These include Company paid life insurance plus any additional life insurance coverage for yourself, your spouse, or your
dependent child(ren) that you have elected on a contributory basis. The plan allows you in most cases to continue life coverage under an individual conversion policy, which is a whole life policy with The Hartford. The plan also allows you in most
cases to “port” your coverage, that is, to continue coverage under a group term life policy with The Hartford. To apply for conversion or portability coverage, you must apply within 31 days of your last date of employment by calling The
Hartford at 1-877-320-0484. 

  

	 	•	 	Short-Term and Long-Term Disability coverage for any future disability ends upon your last date of employment and cannot be converted to a private policy. If you are on a long-term disability leave as of your
last date of employment, information about your current disability benefits will be provided separately. 

  

	 	•	 	401(k) Savings Plan. As a 401(k) savings plan participant, you will be entitled to a distribution, either through a cash payout or through a rollover into a personal Individual Retirement Account (IRA) or
another employer’s plan. This is an important tax decision that should be discussed with your financial advisor. You should contact Fidelity Investments directly at 1-800-835-5093 to better understand your alternatives. You are also
welcome to contact Cheryl Beckman (502-774-6747) or Donna Wimbec (502-774-7306) directly with questions. Please note that it will take approximately four weeks from your last date of employment for your final
contributions and dividends to be credited to your account. Your account continues to participate in market performance (both up and down) during this period. Further, you may continue to direct your investments and make changes regarding your asset
allocation until your account is distributed. 

  

	 	•	 	Executive Savings Plan (Nonqualified Deferred Compensation Plan). As a participant in this executive benefit plan, you will be contacted within four weeks of your last date of employment with specific
information concerning the payment of this benefit. If you do not receive information within four weeks of this date, please contact Mullin TBG at 1-800-824-0040. Please note, if you enrolled in the
Plan for the current calendar year and made an election for a portion of your STIP or LTIP to be deferred, by law, this deferral must still be made into the plan even if your employment ended prior to the actual payment of these bonuses.

  

	 	•	 	Pension. Because you are a vested participant in the pension plan, the Brown-Forman Pension Center will send you detailed pension information approximately six weeks after your last date of employment. That
detailed information will also provide you with the lump sum benefit available to you from the Plan. You have a 120 day window from your last date of employment to elect the lump sum benefit. If you do not request a lump sum within that window, your
only option for form of payment will be monthly installment payments. If you have questions regarding your pension information, please contact the Brown-Forman Pension Center at 1-877-775-1477. You are also welcome to contact Cheryl Beckman
(502-774-6747) or Donna Wimbec (502-774-7306) directly with questions. 

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	 	•	 	SERP (Supplemental Executive Retirement Plan). As a participant in this executive benefit plan, you will be contacted approximately six weeks after your last date of employment with specific information
concerning the payment of this benefit. If you do not receive information six weeks after this date, please contact the Brown-Forman Pension Center at 1-877-775-1477. You are also welcome to contact Cheryl Beckman (502-774-6747) or Donna Wimbec
(502-774-7306) directly with questions. 

  

	 	•	 	B-F Live Well Work Life Services. Should you or your dependents want professional counseling, the Company encourages you to contact the Work Life Services Program. These completely confidential services are
provided by the Company through United Behavioral Health for 30 days after your last date of employment. Continuation of this benefit is also available under COBRA for 18 months at no cost to you. Even though this benefit is provided at no cost to
you, you still must elect it on the COBRA continuation form to be entitled to the benefit. United Behavioral Health may be reached at 1-866-374-6061. 

Short-Term Cash Incentive 
 You will receive a
short-term cash incentive for F’14 prorated by the number of calendar days you were employed during the F’14 fiscal year. It will be paid in the same manner as to other participants after the end of the fiscal year. Your plan has been
designed so that 80% of your short-term incentive is based on Brown-Forman’s actual performance and 20% is based on your Individual Performance Objectives (IPO’s). Company performance will be used as a proxy for your IPO score; thus, 100%
of your short-term incentive payout will be based on Brown-Forman’s actual performance. 
 Long-Term Cash, Stock Options, SSARs, and
Performance-Based Restricted Stock 
 You will receive a long-term cash incentive for the performance period F’14-F’16 prorated by the
number of whole months you were employed during F’14. Long-term cash incentives for the performance periods F’12-F’14, F’13-F’15, and F’14-F’16, respectively, will be adjusted for actual Company performance and be
paid at the same time and in the same manner as to employee participants, unless otherwise provided herein. 
 You will be treated as a retiree for purposes
of your stock options and stock-settled stock appreciation rights (“SSARs”). You will have 7 years from your last date of employment to exercise stock options and SSARs that are vested and exercisable as of your last date of employment
(however, you may not exercise stock options or SSARs beyond the expiration date indicated on the award agreement). SSARs granted in F’12, F’13, and F’14, respectively, will vest on the date indicated on the award agreements. Upon
vesting, you will have 7 years to exercise these awards. Your SSAR award issued in F’14 will be prorated based on the number of whole months worked during F’14. 

Performance-based restricted stock awards for the period F’11-F’14 are no longer subject to performance conditions and restrictions will lapse on
April 30, 2014. Performance-based restricted stock awards for the periods F’12-F’15, F’13-F’16, and F’14-F’17, respectively, will be adjusted for actual Company performance and paid at the same time and in the same
manner as to employee participants. Your performance-based restricted stock award issued in F’14 will be prorated based on the number of whole months worked during F’14. 

Please note that your short-term and long-term cash incentives, stock options, SSARs and performance-based restricted stock awards remain subject to the terms
and conditions of their respective award agreements and the Brown-Forman Omnibus Compensation Plan under which they were issued. 

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 Section 2 – Additional Benefits 

This section describes the additional compensation that the Company will pay you in return for your signing and fully complying with the Release and
Agreement in Section 3 of this letter (“Additional Benefits”). 
 Transition Payment 

The Company will pay you a one-time transition payment of Five Hundred Ninety-Eight Thousand Nine Hundred Fifty-Eight Dollars ($598,958) (“Transition
Payment”) payable in the payroll cycle following your last date of employment. This payment, less required withholdings, will be automatically deposited to your bank account through the normal semi-monthly payroll process. 

Fiscal 2014 Make-Whole Benefit 
 Should your last
date of employment be April 30, 2014, the Company shall provide you with the Transition Payment, to be paid in the payroll cycle following April 30, 2014. 

Should you determine that your last date of employment be before April 30, 2014, the Company shall pay you the Transition Payment, to be paid in the
payroll cycle following your last date of employment and the following additional payments: 
 Salary and Holiday Bonus. The Company
will pay you for any additional base salary or holiday bonus to which you otherwise would have been entitled had your last day of employment with the Company been April 30, 2014. This additional base salary and holiday bonus amount will be paid
in the payroll cycle following your last date of employment based on your current annualized rate of Five Hundred Ninety Eight Thousand Nine Hundred Fifty Eight Dollars ($598,958). 

Short-Term Cash Incentive. The Company will pay you your target short-term cash incentive for F’14 prorated by the number of
calendar days that you were not employed during the F’14 fiscal year. This amount will be paid in the payroll cycle following your last date of employment based on your current annualized rate of Four Hundred Fifteen Thousand Dollars
($415,000). 
 Long-Term Incentive. The Company will pay you your target long-term incentive for F’14 prorated by the number of
whole months that you were not employed during the F’14 fiscal year. The long-term incentive will be paid in cash in the payroll cycle following your last date of employment based on your current annualized rate of Seven Hundred Sixty Thousand
Dollars ($760,000). 
 Should the Company determine that your last day of employment be before April 30, 2014, the Company shall pay you the Transition
Payment and a payment equal in value to your Salary and Holiday Bonus, your Short-Term Cash Incentive, and your Long-Term Incentive as if you had been employed through April 30, 2014. The lump sum Transition Payment of Five Hundred Ninety Eight
Thousand Nine Hundred Fifty Eight Dollars ($598,958) and the payment for Salary and Holiday Bonus will be paid in the payroll cycle following your last date of employment. The Short-Term Cash Incentive and the Long-Term incentive will be paid at the
same time and in the same manner as is normal for such bonusable employees. 
 Health Insurance and COBRA 

The Company will pay for its portion of your health and dental coverage under COBRA for nine (9) months following April 30, 2014. In the event that
you continue to receive health and dental coverage under COBRA past January 31, 2015, you will be responsible for full payment of the cost of such coverage in order to ensure that the coverage is uninterrupted. 

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 Summary 

If you have any questions about this letter or the Release and Agreement, or if there is any other transition matter you wish to discuss, please contact me at
502-774-7747. I encourage you to take your time in reviewing these materials. If you decide to sign the Release and Agreement, please return one complete copy of this entire document (the letter as well as the signed Release and Agreement) to me, in
the self-addressed envelope provided. 
 Don, again, congratulations on your retirement from Brown-Forman, and on behalf of Paul Varga and the Brown-Forman
Board of Directors, thank you for your dedicated service and important contributions to the Company over the years. I wish you all the best in the future. 
  

	
	Yours truly,
	
	 /s/ Lisa Steiner

	Lisa Steiner,
	SVP, Chief HR Officer

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 Section 3 – Release and Agreement 

1. GENERAL 
 (a) PURPOSE. I
understand that I am entitled to the compensation and benefits described in Section 1 above (General Information), even if I do not sign this Section 3 Release and Agreement. I further understand that the Additional Benefits described in
Section 2 above are being offered by the Company to me conditioned upon and as consideration for my signing and fully complying with all aspects of this Section 3 Release and Agreement, and that I am not otherwise eligible for these
Additional Benefits. 
 (b) ENCOURAGEMENT TO CONSULT WITH ATTORNEY. I acknowledge that this Release and Agreement is a binding legal
document and that the Company advises me to consult with an attorney before signing this Release and Agreement. 
 (c) REVIEW AND
CONSIDERATION PERIOD. I acknowledge that I have been given at least 21 days to review and consider this Release and Agreement and have had the opportunity to use as much of that time as I wish before signing it. 

I wish to accept the Additional Benefits described in Section 2 of this letter and in exchange agree as follows: 

2. RELEASE AND COVENANT NOT TO SUE. I hereby release, to the extent permitted by law, the Company and all of its divisions, subsidiaries, affiliates,
employees, officers, directors, successors and assigns (hereinafter “the Company’) from all claims, actions, causes of action, direct or derivative suits, demands, grievances, promises, rights, warranties, debts, judgments, obligations,
liabilities, damages, losses, costs and expenses of every kind and nature, known or unknown, suspected or unsuspected, foreseen or unforeseen, which I may have or claim to have against the Company except as noted in Paragraph 2(d) below. 

(a) This release includes but is not limited to all claims that I may have for discrimination on the basis of religion, national origin, race,
sex, disability, age (including all claims under the Age Discrimination in Employment Act of 1967 as amended (ADEA)), and all other protected classifications under any other federal, state or local laws or regulations, except as noted in Paragraph
2(d) below. I also release, to the extent permitted by law, and except as noted in Paragraph 2(d) below, any and all common law and statutory claims, including but not limited to, contract, tort, or wrongful discharge claims. 

(b) Except as provided in Paragraph 2(d) below and to the extent permitted by law, I agree never to file any lawsuit, complaint, proceeding,
grievance or action of any sort arising from my employment or the termination of my employment with the Company prior to the Effective Date of this Agreement as set forth in Paragraph 4(a) below. If I violate this promise by suing the Company, then
I agree that I will forfeit any outstanding payments or benefits due under Section 2 of this letter and will repay to the Company any amounts and benefits already paid or provided pursuant to Section 2 of this letter. 

(c) This Release and Covenant Not to Sue covers both known and unknown claims that may exist prior to the Effective Date of this Agreement, as
set forth in Paragraph 4(a) below. 
 (d) This Release and Covenant Not to Sue does NOT cover: 

 

	 	(i)	any rights or claims arising after the Effective Date of this Release and Agreement; or 

  

	 	(ii)	 my right to communicate with, file a charge with, or participate in an investigation conducted by any federal, state, or local government

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agency or law enforcement entity, or to bring an action under Equal Employment Opportunity Commission (“EEOC”)-enforced statutes with respect to rights that I cannot be required to
waive; or 

  

	 	(iii)	my rights to commence an action or proceeding to enforce this Release and Agreement or to file a suit challenging its validity under the ADEA; or 

 

	 	(iv)	any rights or claims I may have for benefits under the provisions of any pension benefit plan maintained by the Company and which is applicable to me; or 

 

	 	(v)	any rights which I may have under the existing or then-current indemnification provision in the Company’s Articles, Bylaws, or any employee benefit plan with which I worked at the Company’s request, or any
such provisions applying to employees generally, for any actions or claims against me arising out of my tenure as an officer and employee of the Company; or 

  

	 	(vi)	any rights preserved by or created under this Agreement and/or the law. 

 (e) I agree that I
will not file any claim or suit against the Company for any reason without first engaging in discussions with a designated Company representative in a good faith effort to resolve the dispute. Any such claim or suit shall be filed in the state or
federal courts located in Jefferson County, Kentucky. In any claim or suit that I file, the prevailing party shall be entitled to its reasonable attorneys’ fees and costs. 

3. AGREEMENTS. 
 (a) MUTUAL
NON-DISPARAGEMENT. I will not make any statements (whether orally or in writing) which are intended to be derogatory or damaging to the Company, its business, the business reputation, practices, or conduct of its Board of Directors, or any of the
Company’s assets, businesses, or relations with customers, suppliers, or consumers. The Company’s Directors and the Executive Leadership Team in office as of the Effective Date shall also not make any statements (whether orally or in
writing) which are intended to be derogatory or damaging to me. This paragraph shall not restrict my ability or the ability of the Company to (i) respond to any inquiry from applicable regulatory or other authorities or to provide information
pursuant to legal process, court order, subpoena, or other effective directive by a court, administrative agency, arbitration panel, or legislative body, or pursuant to law, rule, regulation, or other requirement; (ii) enforce this Agreement;
(iii) discuss any person or the Company generally with legal counsel in a context in which it reasonably is expected that the attorney will maintain as confidential under the attorney-client privilege; or (iv) communicate with, or
participate in an investigation conducted by, the EEOC or any other federal, state, or local government agency or law enforcement entity. Further, this paragraph shall not require me to affirmatively take actions to enhance or support the Company or
other stakeholders. 
 (b) CONFIDENTIALITY. I acknowledge and reaffirm my ongoing legal and professional obligations to maintain
confidential and not use or disclose to any other person or entity other than as permitted or required by law any trade secrets or other non-public, confidential information belonging to the Company. Confidential information includes all non-public:
manufacturing, marketing and strategic information and data; costs and pricing structures; financial and accounting data; information regarding customers and suppliers; trade secrets and trademarks; information regarding the Board of Directors’
Committees and their activities; information regarding the shareholders’ shareholdings and relationships with the Company; and legal and/or regulatory information. Nothing in this Agreement shall prohibit or restrict me (or my attorney) from

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responding to any inquiry, or providing testimony, about the Company’s confidential or proprietary information by or before any federal or state administrative or regulatory agency or
authority, including pursuant to legal process, court order, subpoena, or other effective directive by a court, administrative agency, arbitration panel, or legislative body, or pursuant to law, rule, regulation, or other requirement, or in
connection with any communication with, or participation in an investigation conducted by, the EEOC or any other federal, state, or local government agency or law enforcement entity. 

(c) NON-COMPETITION. I agree, for a period of twelve (12) months following April 30, 2014, not to accept employment with or serve as
a Board member of, or consultant to, or have any other advisory or ownership relationship with (other than as an owner of less than one percent of its stock or as a consumer of its products) any spirits Supplier (“Supplier” being defined
as any U.S. or non-U.S. spirits producer, manufacturer, brand owner, primary brand marketer, or importer). Notwithstanding the foregoing, the Company agrees and acknowledges that this non-competition provision does not prohibit my employment with,
consultancy to, or ownership of (i) any company whose primary business is as a beverage alcohol distributor in the U.S., even if such distributor owns brands and/or is also licensed as a spirits supplier or importer; or (ii) any Supplier
whose annual volume is less than 100,000 cases, except Suppliers (x) of bourbon whiskey or Tennessee whiskey, or (y) whose principal place of business is in the Commonwealth of Kentucky or the State of Tennessee. 

(d) STANDSTILL. I agree that I will not directly or indirectly, enter into any discussions, negotiations, arrangements or understandings with,
or assist, advise, encourage, or otherwise participate in any attempt to take over the Company, the term “take over” being defined in the broadest possible manner to include without limitation the acquisition of greater than one percent
(1%) of the Company’s Class A Common Stock, any proxy solicitation involving the Company, the acquisition of a material portion of the Company’s assets, any attempt to elect Directors to the Company’s Board of Directors who
have not been nominated by the Board, advocating for the Company’s restructuring, merger or involvement in another business combination, or gaining any material voting interest in the Company, provided, however, that nothing in this Agreement
shall prohibit or restrict me (or my family or heirs) from acquiring or selling Class A Common Stock or other securities of the Company in amounts not to exceed 1% of any class thereof. Nothing in this paragraph shall be construed to prohibit
or restrict me from voting any shares that I own so long as those shares do not constitute more than 1% in the aggregate of any class of shares. 

(e) PROSPECTIVE EMPLOYMENT. I and the Company agree that all third party inquiries regarding my employment at Brown Forman, including, but not
limited to, all inquiries from prospective employers, shall be referred to the Company’s Human Resources Department and shall be handled pursuant to (i) what is the current Company policy, which policy provides that such inquiries shall be
responded to with only the following information: my dates of employment; the positions held during my employment with the Company; and if requested by the party making the inquiry, confirmation of my final compensation package; as well as
(ii) the attached December 4, 2013 commentary. In addition, the Company will fund executive outplacement services at a total cost not to exceed Fifty Thousand Dollars ($50,000.00), which Fifty Thousand Dollars ($50,000) will be paid
directly to the outplacement agency I select upon presentation to the Company of an invoice. Such invoice must be submitted to the Company for payment within six months of the date of this Release and Agreement 

(f) UNEMPLOYMENT CLAIM. The Company agrees not to contest any claim that I may make for unemployment compensation benefits. 

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 (g) INDEMNIFICATION. As of the execution date of this Release and Agreement, the Company
confirms that it has no intent to assert any legal cause of action against me. Moreover, the Company agrees to indemnify and hold me harmless to the fullest extent permitted by applicable law and/or, at a minimum, the organizational documents and
policies of the Company, including all policies allowing the advancement of reasonable and documented attorneys’ fees and expenses and all policies concerning amounts paid in settlement, for my actions or inactions in accordance with my
performance of duties as an officer, employee, or agent of the Company or as a fiduciary of any benefit plan of the Company. The Company also agrees to provide me with directors’ and officers’ liability insurance coverage after my
employment with regard to matters occurring during my employment with the Company, which coverage will be at a level at least equal to the greatest level afforded other current officers of the Company. 

(h) COOPERATION. I agree to (i) cooperate with reasonable requests made to me by the Company to provide information and to respond to questions related
to matters that occurred while I was employed by the Company and of which I have knowledge; and (ii) at the Company’s request, participate in any proceeding or litigation before any arbitral, administrative, judicial, legislative, or other
body or agency related to such matters. My agreement to cooperate or participate in this regard, however, is premised upon being compensated for reasonable attorneys’ fees and expenses, including but not limited to, reasonable fees and expenses
of any lawyer I choose to retain in connection with, as well as reasonable travel, lodging, and meal expenses incurred by me in, performing all acts and executing and delivering any documents that may be reasonably necessary to carry out the
provisions of this paragraph. 
 4. OTHER MATTERS 

(a) RIGHT TO REVOKE. I understand that I may revoke this Release and Agreement within seven (7) days after I sign it by delivering or
sending a written notice of revocation to Lisa Steiner, SVP Chief HR Officer (with a copy to the General Counsel) at 850 Dixie Highway, Louisville, KY 40210, by no later than the close of business on the seventh day after I sign this Release and
Agreement. I understand that if I revoke this Release and Agreement, it shall not be effective or enforceable, and I will not receive the Additional Benefits described in Section 2 of this letter. I also understand that if I sign this Release
and Agreement, Additional Benefits will not be paid until this revocation period expires. This Release and Agreement becomes effective on the eighth day after it is signed by me and not revoked (“the Effective Date”). To the extent that
the end of the revocation period or the Effective Date fall on a Saturday, Sunday or holiday, the date will be considered the next business day. 

(b) ENTIRE AGREEMENT. I agree that this is the entire agreement between me and the Company, that the Company has not made any promises to me
other than in this letter, and that no changes may be made to this agreement unless in writing and signed by me and the Company. 
 (c)
SEVERABILITY; GOVERNING LAW; VENUE. I agree that if any part of this Release and Agreement is found to be illegal or unenforceable, the rest of the Release and Agreement will nevertheless be enforceable. This Release and Agreement shall be governed
by and construed in accordance with the laws of the Commonwealth of Kentucky, without giving effect to the principles of conflict of laws; all disputes arising under or relating to this Agreement, or its breach, shall be decided in the state or
federal courts located in Jefferson County, Kentucky, except that the Company may seek enforcement of any of the covenants or commitments contained herein in any jurisdiction where it is necessary in its judgment to do so. In the event I fail to
comply with any of the commitments set forth in this Release and Agreement, the Company may seek to terminate this agreement and recover the Additional Benefits provided to me. 

  Page
 12
 
  

 I ACKNOWLEDGE AND AFFIRM THAT I HAVE CAREFULLY READ THIS RELEASE AND AGREEMENT. I UNDERSTAND IT AND HAVE NO
QUESTIONS ABOUT WHAT IT MEANS. I HAVE NOT BEEN FORCED OR INTIMIDATED IN ANY WAY TO SIGN IT, AND I AM KNOWINGLY AND VOLUNTARILY ENTERING INTO IT. 
  

	
	 /s/ Donald C. Berg

	Donald C. Berg
	
	 May 14, 2014

	Dated

  

			
	BROWN-FORMAN:
		
	By:	 	 /s/ Lisa Steiner

	Printed Name:	 	 Lisa Steiner

	Date:	 	 May 15, 2014

  Page
 13
 
  

 IMPORTANT! 

Your health care stops at termination and must be activated 

under COBRA before any claims can be considered. 

In order for the Company to pay your COBRA premiums under the terms of your Release and Agreement you must sign and return the COBRA forms for
coverage to be activated.EX-10.2

 Exhibit 10.2 

EMPLOYEE MATTERS AGREEMENT 

between 
 THE TIMKEN COMPANY

 and 
 TIMKENSTEEL
CORPORATION 
 Dated as of
                    , 2014 

							
	 ARTICLE I DEFINITIONS
	  	 	1	  
			
	 Section 1.1
	    	Certain Defined Terms	  	 	1	  
			
	 Section 1.2  
	    	Other Capitalized Terms	  	 	9	  
		
	 ARTICLE II GENERAL PRINCIPLES; EMPLOYEE TRANSFERS
	  	 	10	  
			
	 Section 2.1
	    	Bearings Group Employee Liabilities	  	 	10	  
			
	 Section 2.2
	    	TimkenSteel Group Employee Liabilities	  	 	10	  
			
	 Section 2.3
	    	Bearings Benefit Plans/TimkenSteel Benefit Plans	  	 	11	  
			
	 Section 2.4
	    	Employee Transfers	  	 	11	  
			
	 Section 2.5
	    	Collective Bargaining Agreements	  	 	12	  
		
	 ARTICLE III NON-U.S. EMPLOYEE TRANSFERS AND BENEFIT PLANS
	  	 	12	  
			
	 Section 3.1
	    	UK Pension	  	 	12	  
			
	 Section 3.2
	    	IRBP	  	 	12	  
			
	 Section 3.3
	    	Mexico Pension	  	 	13	  
		
	 ARTICLE IV SERVICE CREDIT
	  	 	13	  
			
	 Section 4.1
	    	Service Credit for Employee Transfers	  	 	13	  
		
	 ARTICLE V LITIGATION AND COMPENSATION
	  	 	14	  
			
	 Section 5.1
	    	Employee-Related Litigation	  	 	14	  
			
	 Section 5.2
	    	Vacation	  	 	15	  
			
	 Section 5.3
	    	Annual Bonuses	  	 	15	  
			
	 Section 5.4
	    	Employment Agreements	  	 	16	  
			
	 Section 5.5
	    	Repayment Agreements	  	 	16	  
		
	 ARTICLE VI CERTAIN WELFARE BENEFIT PLAN MATTERS
	  	 	16	  
			
	 Section 6.1
	    	TimkenSteel Spinoff Welfare Plans	  	 	16	  
			
	 Section 6.2
	    	Continuation of Elections	  	 	18	  
			
	 Section 6.3
	    	Deductibles and Other Cost-Sharing Provisions	  	 	18	  
			
	 Section 6.4
	    	Flexible Spending Account Treatment	  	 	19	  
			
	 Section 6.5
	    	Workers’ Compensation	  	 	19	  
			
	 Section 6.6
	    	COBRA	  	 	20	  
			
	 Section 6.7
	    	Timken VEBA	  	 	20	  
		
	 ARTICLE VII TAX-QUALIFIED DEFINED BENEFIT PLANS
	  	 	21	  
			
	 Section 7.1
	    	TimkenSteel Spinoff DB Plans	  	 	21	  
			
	 Section 7.2
	    	Continuation of Elections	  	 	23	  
			
	 Section 7.3
	    	Delayed Transfer Employees	  	 	23	  

  
 -i- 

							
	 ARTICLE VIII U.S. TAX-QUALIFIED DEFINED CONTRIBUTION PLANS
	  	 	23	  
			
	 Section 8.1
	    	TimkenSteel Spinoff DC Plans	  	 	23	  
			
	 Section 8.2
	    	Continuation of Elections	  	 	24	  
			
	 Section 8.3
	    	Assumed DC Plans	  	 	25	  
			
	 Section 8.4
	    	Contributions Due	  	 	25	  
		
	 ARTICLE IX NONQUALIFIED RETIREMENT PLANS
	  	 	25	  
			
	 Section 9.1
	    	TimkenSteel Spinoff Nonqualified Plans	  	 	25	  
			
	 Section 9.2
	    	No Distributions on Separation	  	 	26	  
			
	 Section 9.3
	    	Section 409A	  	 	27	  
			
	 Section 9.4
	    	Continuation of Elections	  	 	27	  
			
	 Section 9.5
	    	Delayed Transfer Employees	  	 	27	  
			
	 Section 9.6
	    	Timken Director Plan	  	 	27	  
		
	 ARTICLE X TIMKEN EQUITY COMPENSATION AWARDS
	  	 	27	  
			
	 Section 10.1
	    	Outstanding Timken Equity Compensation Awards	  	 	27	  
			
	 Section 10.2
	    	Conformity with Non-U.S. Laws	  	 	31	  
			
	 Section 10.3
	    	Tax Withholding and Reporting	  	 	32	  
			
	 Section 10.4
	    	Employment Treatment	  	 	32	  
			
	 Section 10.5
	    	Payment of Option Exercise Prices	  	 	33	  
			
	 Section 10.6
	    	Dividends/Dividend Equivalents	  	 	33	  
			
	 Section 10.7
	    	Equity Award Administration	  	 	33	  
			
	 Section 10.8
	    	Registration	  	 	34	  
		
	 ARTICLE XI BENEFIT PLAN REIMBURSEMENTS, BENEFIT PLAN THIRD-PARTY CLAIMS
	  	 	34	  
			
	 Section 11.1
	    	General Principles	  	 	34	  
			
	 Section 11.2
	    	Benefit Plan Third-Party Claims	  	 	34	  
		
	 ARTICLE XII INDEMNIFICATION
	  	 	34	  
			
	 Section 12.1
	    	Indemnification	  	 	34	  
		
	 ARTICLE XIII COOPERATION
	  	 	34	  
			
	 Section 13.1
	    	Cooperation	  	 	34	  
		
	 ARTICLE XIV MISCELLANEOUS
	  	 	35	  
			
	 Section 14.1
	    	Vendor Contracts	  	 	35	  
			
	 Section 14.2
	    	Further Assurances	  	 	35	  
			
	 Section 14.3
	    	Employment Taxes Withholding Reporting Responsibility	  	 	35	  

  
 -ii- 

							
			
	 Section 14.4
	    	Data Privacy	  	 	35	  
			
	 Section 14.5
	    	Third Party Beneficiaries	  	 	36	  
			
	 Section 14.6
	    	Effect if Distribution Does Not Occur	  	 	36	  
			
	 Section 14.7
	    	Incorporation of Separation Agreement Provisions	  	 	36	  
			
	 Section 14.8
	    	No Representation or Warranty	  	 	36	  

 Schedule 5.4: Employment Agreements 

Schedule 6.1(a): Split Retiree Welfare Plans 
 Schedule 6.1(b):
Split Welfare Plans 
 Schedule 7.1(a): Split DB Plans 

Schedule 8.1(a): Split DC Plans 
 Schedule 8.3: Assumed DC Plans

 Schedule 9.1(a): Split Nonqualified Plans 
 Schedule 9.1(c):
TimkenSteel Excess Benefit Agreements 
  

  
 -iii- 

 EMPLOYEE MATTERS AGREEMENT 

EMPLOYEE MATTERS AGREEMENT, dated as of             , 2014 (this “Employee
Matters Agreement”), between The Timken Company, an Ohio corporation (“Timken”), and TimkenSteel Corporation, an Ohio corporation and a preexisting, wholly owned subsidiary of Timken (“TimkenSteel”). 

RECITALS 
 A. The parties
to this Employee Matters Agreement have entered into the Separation and Distribution Agreement (the “Separation Agreement”), dated as of the date hereof, pursuant to which Timken intends to distribute to its shareholders, on a
pro rata basis, all the outstanding common shares, without par value, of TimkenSteel then owned by Timken (the “Distribution”). 

B. The parties wish to set forth their agreements as to certain matters regarding the treatment of, and the compensation and employee benefits
provided to, current and former employees of Timken and TimkenSteel and their Subsidiaries. 
 C. This Employee Matters Agreement
incorporates the agreement of the parties with regard to certain assets and liabilities that were separated prior to the Distribution, which agreement was originally set forth in the Benefit Plan Transfer Agreement, effective as of May 1, 2014.

 AGREEMENT 
 In
consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, the parties agree as follows: 

ARTICLE I 
 DEFINITIONS

 Section 1.1 Certain Defined Terms. For the purposes of this Employee Matters Agreement: 

“2012 Performance-Based RSU” means a Timken Performance-Based RSU granted during the 2012 calendar year. 

“2013 Performance-Based RSU” means a Timken Performance-Based RSU granted during the 2013 calendar year. 

“2014 SEMPP Award” has the meaning set forth in Section 5.3(b). 

“APA” has the meaning set forth in Section 5.3(a). 

“Applicable Transfer Date” means the date on which a Delayed Transfer Employee actually commences employment with the
TimkenSteel Group or the Bearings Group (as applicable). 

  
 -1- 

 “Assumed DC Plans” has the meaning set forth in Section 8.3(a). 

“Bearings Benefit Plans” means (i) the Split DB Plans, the Split Retiree Welfare Plans, and the Timken VEBA, and
(ii) any other Benefit Plan that, as of the close of business on the day before the Distribution Date, is sponsored or maintained solely by any member of the Bearings Group. Bearings Benefit Plan will also mean any multiemployer plan (as
defined in Section 3(37) of ERISA) to which any member of the Bearings Group contributes for the benefit of its employees. For the avoidance of doubt, no member of the Bearings Group will be deemed to sponsor or maintain any Benefit Plan if its
relationship to such Benefit Plan is solely to administer such Benefit Plan or provide to TimkenSteel any reimbursement in respect of such Benefit Plan. 

“Bearings Non-U.S. Benefit Plans” means the Non-U.S. Benefit Plans sponsored or maintained by a member of the Bearings Group.

 “Bearings Deferred Share” means a deferred share award with respect to Timken Common Shares relating to a Timken
Deferred Share described in Section 10.1(a)(ii)(B). 
 “Bearings Employee” means each individual who, as of the
close of business on the Distribution Date, is employed by a member of the Bearings Group (including, for the avoidance of doubt, any such individual who is on a leave of absence, whether paid or unpaid). Bearings Employees also include Bearings
Transferees, effective as of the Applicable Transfer Date. Notwithstanding the foregoing, the phrase “Distribution Date” in the first sentence of this definition will be deemed to read “Plan Split Date” and Bearings Employees
will not include any TimkenSteel Employees, in each case, (i) for the purpose of allocating Liability with respect to the Split DB Plans, Split Retiree Welfare Plans, and Timken VEBA under Section 5.1(a) and (ii) for all
purposes under Article VII and Sections 3.3, 6.1(a), 6.2(a), 6.3(a), and 6.7. 
 “Bearings Equity
Compensation Award” means each Bearings Option, Bearings Performance Share, Bearings Restricted Share, Bearings Deferred Share, and Bearings Time-Based RSU. 

“Bearings Flexible Account Plan” has the meaning set forth in Section 6.4. 

“Bearings Option” means an option to acquire Timken Common Shares relating to a Timken Option described in
Section 10.1(a)(i). 
 “Bearings Performance Share” means a performance share award with respect to Timken
Common Shares relating to Timken Performance Shares described in Section 10.1(a)(iii). 
 “Bearings Price”
means the Option Exercise Price multiplied by a fraction, (a) the numerator of which is the average of the high and low sale price of a Timken Common Share solely on the New York Stock Exchange on the Trading Day immediately following the
Distribution Date (as traded on the “regular way” market) as reported by Bloomberg L.P. or any successor thereto and (b) the denominator of which is the average of the high and low sale price of a Timken Common Share solely on the New
York Stock Exchange on the Distribution Date (as traded on the “regular way” market) as reported by Bloomberg L.P. or any successor thereto. 

  
 -2- 

 “Bearings Restricted Share” means a restricted Timken Common Share relating to
Timken Restricted Shares described in Section 10.1(a)(ii)(A). 
 “Bearings Time-Based RSU” means a restricted
stock unit award with respect to Timken Common Shares relating to Timken Time-Based RSUs described in Section 10.1(a)(ii)(C) that vests based solely on the passage of time. 

“Bearings Transferees” means the Delayed Transfer Employees who transfer from the TimkenSteel Group to the Bearings Group.

 “Bearings Welfare Plan” means each Bearings Benefit Plan that is a Welfare Plan, other than the Split Retiree Welfare
Plans. 
 “Benefit Plan” means, with respect to an entity, each plan, program, policy, agreement, arrangement or
understanding that is maintained primarily for the benefit of employees in the United States and is a deferred compensation, executive compensation, incentive bonus or other bonus, pension, profit sharing, savings, retirement, severance pay, salary
continuation, life, death benefit, health, hospitalization, sick leave, vacation pay, disability or accident insurance or other employee benefit plan, program, agreement or arrangement, including any “employee benefit plan” (as defined in
Section 3(3) of ERISA) sponsored, maintained or contributed to by such entity or to which such entity is a party or under which such entity has any obligation; provided that no Timken Equity Compensation Award, nor any plan under which any such
Timken Equity Compensation Award is granted, will constitute a “Benefit Plan” under this Employee Matters Agreement. In addition, no Employment Agreement will constitute a Benefit Plan for purposes hereof. For the avoidance of doubt,
Excess Benefit Agreements between Timken (or TimkenSteel) and certain employees will be considered Benefit Plans. 

“COBRA” means the continuation coverage requirements under Code Section 4980B and ERISA Sections 601-608. 

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

“Collective Bargaining Agreement” means any collective bargaining agreement, labor agreement, pension and insurance
agreement, 401(k) agreement, SUB agreement or other written agreement to which Timken, TimkenSteel, or any of their respective direct or indirect Subsidiaries is a party with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
Allied Industrial and Service Workers’ International Union, its predecessors-in-interest, and their respective constituent local unions. 

“Death Benefit Agreements” has the meaning set forth in Section 5.1(b). 

“Delayed Transfer Employee” has the meaning set forth in Section 2.4. 

  
 -3- 

 “Distribution” has the meaning set forth in the Recitals. 

“Employee Matters Agreement” has the meaning set forth in the preamble. 

“Employment Agreement” means any individual employment, retention, consulting, change in control, split dollar life
insurance, sale bonus, incentive bonus, severance or other individual compensatory agreement between any current or former employee and Timken or any of its Affiliates. For the avoidance of doubt, Excess Benefit Agreements between Timken (or
TimkenSteel) and certain employees will not constitute Employment Agreements. 
 “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended. 
 “Estimated Retirement Plan Transfer Amount” has the meaning set forth in
Section 7.1(b). 
 “Final Retirement Plan Transfer Amount” has the meaning set forth in
Section 7.1(c). 
 “Flex Plan Amount” has the meaning set forth in Section 6.4. 

“Former Bearings Business Employee” means any individual who (i) on or before the close of business on the Distribution
Date retired or otherwise separated from service from Timken and its Affiliates, and (ii) is not a Former TimkenSteel Business Employee. Notwithstanding the foregoing, the phrase “Distribution Date” in the prior sentence will be
deemed to read “Plan Split Date” (i) for the purpose of allocating Liability with respect to the Split DB Plans, Split Retiree Welfare Plans, and Timken VEBA under Section 5.1(a) and (ii) for all purposes under
Article VII and Sections 3.3, 6.1(a), 6.2(a), 6.3(a), and 6.7. 
 “Former TimkenSteel Business
Employee” means any individual (i) who on or before the close of business on the Distribution Date retired or otherwise separated from service from Timken and its Affiliates, and (ii) whose last day worked with Timken and its
Affiliates prior to the close of business on the Distribution Date was with (A) the Steel Business, (B) the TimkenSteel Former Businesses or (C) any Person that will be a direct or indirect Subsidiary of TimkenSteel immediately after
the Distribution. Notwithstanding the foregoing, the phrase “Distribution Date” in the prior sentence will be deemed to read “Plan Split Date” (i) for the purpose of allocating Liability with respect to the Split DB Plans,
Split Retiree Welfare Plans, and Timken VEBA under Section 5.1(a) and (ii) for all purposes under Article VII and Sections 6.1(a), 6.2(a), 6.3(a), and 6.7. 

“Group” means the Bearings Group or the TimkenSteel Group, as the context requires. 

“Life Insurance Policy” has the meaning set forth in Section 5.1(b). 

  
 -4- 

 “Mexico Spinoff Pension Plan” has the meaning set forth in
Section 3.3(a). 
 “Mexico Split Pension Plan” has the meaning set forth in Section 3.3(a). 

“Non-U.S. Benefit Plan” means, with respect to an entity, each plan, program, policy, agreement, arrangement or understanding
that is maintained primarily for the benefit of employees outside of the United States and is a deferred compensation, executive compensation, incentive bonus or other bonus, pension, profit sharing, savings, retirement, severance pay, salary
continuation, life, death benefit, health, hospitalization, sick leave, vacation pay, disability or accident insurance or other employee benefit plan, program, agreement or arrangement, sponsored, maintained or contributed to by such entity or to
which such entity is a party or under which such entity has any obligation; provided that no Timken Equity Compensation Award, nor any plan under which any such Timken Equity Compensation Award is granted, will constitute a “Non-U.S. Benefit
Plan” under this Employee Matters Agreement. In addition, no Employment Agreement will constitute a Non-U.S. Benefit Plan for purposes hereof. 

“Option Exercise Price” means the pre-adjustment exercise price of the applicable Timken Option. 

“Plan Payee” means, as to an individual who participates in a Benefit Plan, such individual’s dependents, beneficiaries,
alternate payees and alternate recipients, as applicable under such Benefit Plan. 
 “Plan Split Date” means May 1,
2014. 
 “Pre-Distribution Action” means an Action by any Third Party with respect to a Split Plan, Bearings Employee,
Former Bearings Business Employee, TimkenSteel Employee, or Former TimkenSteel Business Employee that (i) arises from an act, omission, or event that occurred prior to (A) the Plan Split Date, in the case of any Action arising out of or
otherwise related to a Split Retiree Welfare Plan, a Split DB Plan, or the Timken VEBA, or (B) the Distribution, in the case of any other Action, and (ii) is not otherwise designated as TimkenSteel Litigation in the Separation Agreement.

 “Repayment Agreement” means any The Timken Company Repayment Agreement (with respect to relocation expenses),
Educational Reimbursement Program Repayment Agreement, or Educational Assistance Repayment Agreement. 
 “Represented Former
TimkenSteel Employee” means any Former TimkenSteel Business Employee who immediately prior to his or her retirement or separation from service from Timken and its Affiliates was covered by a Collective Bargaining Agreement. 

“Represented TimkenSteel Employee” means any TimkenSteel Employee who, as of the close of business on the Plan Split Date, is
covered by a Collective Bargaining Agreement. 
 “Retained Severance Benefits” has the meaning set forth in
Section 6.1(b). 

  
 -5- 

 “Scheme” has the meaning set forth in Section 3.1. 

“SEMPP” has the meaning set forth in Section 5.3(b). 

“Separation Agreement” has the meaning set forth in the Recitals. 

“Split DB Plans” has the meaning set forth in Section 7.1(a). 

“Split DC Plans” has the meaning set forth in Section 8.1(a). 

“Split Nonqualified Plans” has the meaning set forth in Section 9.1(a). 

“Split Non-U.S. Plan” means a Non-U.S. Benefit Plan sponsored, maintained or contributed to by the Bearings Group that
transferred liabilities to a Non-U.S. Benefit Plan sponsored, maintained or contributed to by the TimkenSteel Group in connection with the Distribution. 

“Split Plans” means the Split Welfare Plans, Split Retiree Welfare Plans, Split DB Plans, Split DC Plans, Split Nonqualified
Plans, and Split Non-U.S. Plans. 
 “Split Retiree Welfare Plans” has the meaning set forth in Section 6.1(a).

 “Split Welfare Plans” has the meaning set forth in Section 6.1(b). 

“Steel Section” has the meaning set forth in Section 3.1(a). 

“Steel UK” has the meaning set forth in Section 3.1(b). 

“Timken” has the meaning set forth in the preamble. 

“Timken Compensation Committee” means the Compensation Committee of the Board of Directors of Timken. 

“Timken Deferred Share” means a deferred share award granted by Timken under a Timken LTIP before the Distribution Date. 

“Timken Director Plan” has the meaning set forth in Section 9.6. 

“Timken Equity Compensation Award” means each Timken Option, Timken Performance Share, Timken Restricted Share, Timken
Deferred Share, Timken Performance-Based RSU or Timken Time-Based RSU. 
 “Timken Option” means an option to acquire Timken
Common Shares granted by Timken under a Timken LTIP before the Distribution Date. 
 “Timken LTIP” means either of The
Timken Company Long-Term Incentive Plan for directors, officers and other key employees (amended and restated as of February 5, 2008) or The Timken Company 2011 Long-Term Incentive Plan for directors, officers and other key employees. 

  
 -6- 

 “Timken Performance Share” means a performance share award granted by Timken
under a Timken LTIP before the Distribution Date. 
 “Timken Performance-Based RSU” means a performance-based restricted
stock unit award granted by Timken under a Timken LTIP before the Distribution Date. 
 “Timken PRSU Price” means the
average closing price of Timken Common Shares solely on the New York Stock Exchange as reported by Bloomberg L.P. or any successor thereto for the period of the five consecutive Trading Days ending on the Distribution Date (as traded on the
“regular way” market). 
 “Timken Restricted Share” means a restricted Timken Common Share granted by Timken
under a Timken LTIP before the Distribution Date. 
 “Timken Time-Based RSU” means a time-based restricted stock unit award
granted by Timken under a Timken LTIP before the Distribution Date. 
 “Timken VEBA” has the meaning set forth in
Section 6.7. 
 “TimkenSteel” has the meaning set forth in the preamble. 

“TimkenSteel Benefit Plan” means (i) the TimkenSteel Spinoff DB Plans, the TimkenSteel Spinoff Retiree Welfare Plans,
and the TimkenSteel VEBA, and (ii) any Benefit Plan sponsored or maintained by any member of the TimkenSteel Group. TimkenSteel Benefit Plan will also mean any multiemployer plan (as defined in Section 3(37) of ERISA) to which any member
of the TimkenSteel Group contributes for the benefit of its employees. For the avoidance of doubt, no member of the TimkenSteel Group will be deemed to sponsor or maintain any Benefit Plan if its relationship to such Benefit Plan is solely to
administer such Benefit Plan or provide to Timken any reimbursement in respect of such Benefit Plan. 
 “TimkenSteel Common
Shares” means the common stock, without par value, of TimkenSteel. 
 “TimkenSteel Deferred Share” means a
deferred share award relating to TimkenSteel Common Shares granted by TimkenSteel as of the Distribution under a TimkenSteel LTIP pursuant to Section 10.1(a)(ii)(B). 

“TimkenSteel Employee” means each individual who, as of the close of business on the Distribution Date, is employed by a
member of the TimkenSteel Group (including, for the avoidance of doubt, any such individual who is on a leave of absence, whether paid or unpaid). TimkenSteel Employees also include TimkenSteel Transferees, effective as of the Applicable Transfer
Date. Notwithstanding the foregoing, the phrase “Distribution Date” in the first sentence of this definition will be deemed to read “Plan Split Date” and TimkenSteel Employee will include any individual whom Timken has, as of the
Plan Split Date, designated to become employed by the TimkenSteel Group on or prior to the Distribution Date, in each case, (i) for the purpose of allocating Liability with respect to the Split DB Plans, Split Retiree Welfare Plans, and Timken
VEBA under Section 5.1(a) and (ii) for all purposes under Article VII and Sections 3.3, 6.1(a), 6.2(a), 6.3(a), and 6.7. 

  
 -7- 

 “TimkenSteel Employment Agreement” has the meaning set forth in
Section 5.4. 
 “TimkenSteel Equity Compensation Award” means each TimkenSteel Option, TimkenSteel Performance
Share, TimkenSteel Restricted Share, TimkenSteel Deferred Share, or TimkenSteel Time-Based RSU. 
 “TimkenSteel Flexible Account
Plan” has the meaning set forth in Section 6.4. 
 “TimkenSteel LTIP” means the TimkenSteel 2014
Equity and Incentive Compensation Plan and any stock-based or other incentive plan identified by TimkenSteel before the Distribution Date. 

“TimkenSteel Non-U.S. Benefit Plan” means any Non-U.S. Benefit Plan sponsored or maintained by a member of the TimkenSteel
Group. 
 “TimkenSteel Option” means an option to acquire TimkenSteel Common Shares granted by TimkenSteel as of the
Distribution under a TimkenSteel LTIP pursuant to Section 10.1(a)(i)(B). 
 “TimkenSteel Performance Share”
means performance share awards relating to TimkenSteel Common Shares granted by TimkenSteel as of the Distribution under a TimkenSteel LTIP. 

“TimkenSteel Price” means the Option Exercise Price multiplied by a fraction, (a) the numerator of which is the average
of the high and low sale price of a TimkenSteel Common Share solely on the New York Stock Exchange on the Trading Day immediately following the Distribution Date (as traded on the “regular way” market) as reported by Bloomberg L.P. or any
successor thereto and (b) the denominator of which is the average of the high and low sale price of a Timken Common Share solely on the New York Stock Exchange on the Distribution Date (as traded on the “regular way” market) as
reported by Bloomberg L.P. or any successor thereto. 
 “TimkenSteel Restricted Share” means a restricted TimkenSteel
Common Share granted by TimkenSteel as of the Distribution under a TimkenSteel LTIP pursuant to Section 10.1(a)(ii)(A). 

“TimkenSteel Retiree Welfare Claims” has the meaning set forth in Section 6.1(a). 

“TimkenSteel Spinoff DB Plans” has the meaning set forth in Section 7.1(a). 

“TimkenSteel Spinoff DC Plans” has the meaning set forth in Section 8.1(a). 

“TimkenSteel Spinoff Nonqualified Plans” has the meaning set forth in Section 9.1(a). 

  
 -8- 

 “TimkenSteel Spinoff Retiree Welfare Plans” has the meaning set forth in
Section 6.1(a). 
 “TimkenSteel Spinoff Welfare Plan” has the meaning set forth in Section 6.1(b).

 “TimkenSteel Time-Based RSU” means restricted stock unit award with respect to TimkenSteel Common Shares granted by
TimkenSteel as described in Section 10.1(a)(ii)(C) that vests based solely on the passage of time. 
 “TimkenSteel
Transferees” means the Delayed Transfer Employees who transfer from the Bearings Group to the TimkenSteel Group. 

“TimkenSteel VEBA” has the meaning set forth in Section 6.7. 

“TimkenSteel Welfare Claims” has the meaning set forth in Section 6.1(b). 

“TimkenSteel Workers’ Compensation Claim” has the meaning set forth in Section 6.5. 

“Trading Day” means the period of time during any given calendar day, beginning at 9:30 a.m. (New York time) (or such other
time as the New York Stock Exchange publicly announces is the official open of trading), and ending at 4:01 p.m. (New York time) (or one minute after such other time as the New York Stock Exchange publicly announces is the official close of
trading), in which trading and settlement in Timken Common Shares or TimkenSteel Common Shares is permitted on the New York Stock Exchange. 

“True-Up Amount” has the meaning set forth in Section 7.1(c). 

“TUK” has the meaning set forth in Section 3.1(b). 

“TUK Section” has the meaning set forth in Section 3.1(a). 

“Vendor Contract” has the meaning set forth in Section 14.1. 

“Welfare Plan” means each Benefit Plan that provides life insurance, health care, dental care, vision care, employee
assistance programs (EAP), accidental death and dismemberment insurance, disability, severance, vacation or other group welfare or fringe benefits or is otherwise an “employee welfare benefit plan” as described in Section 3(1) of
ERISA. 
 “Workers’ Compensation Event” means the event, injury, illness or condition giving rise to a workers’
compensation claim. 
 Section 1.2 Other Capitalized Terms. Capitalized terms not defined in this Employee Matters Agreement,
including the following, will have the meanings ascribed to them in the Separation Agreement: 

  
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	 	•	 	Action 

  

	 	•	 	Affiliate 

  

	 	•	 	Ancillary Agreements 

  

	 	•	 	Bearings Entities 

  

	 	•	 	Bearings Group 

  

	 	•	 	Damages 

  

	 	•	 	Distribution Date 

  

	 	•	 	Distribution Ratio 

  

	 	•	 	Governmental Authority 

  

	 	•	 	Law 

  

	 	•	 	Liability 

  

	 	•	 	Person 

  

	 	•	 	Shared Liability 

  

	 	•	 	Steel Business 

  

	 	•	 	Subsidiary 

  

	 	•	 	Tax 

  

	 	•	 	Third Party 

  

	 	•	 	Third-Party Claim 

  

	 	•	 	Timken Common Shares 

  

	 	•	 	TimkenSteel Entities 

  

	 	•	 	TimkenSteel Former Businesses 

  

	 	•	 	TimkenSteel Group 

  

	 	•	 	TimkenSteel Litigation 

  

	 	•	 	Transition Services Agreement 

 ARTICLE II 

GENERAL PRINCIPLES; EMPLOYEE TRANSFERS 

Section 2.1 Bearings Group Employee Liabilities. Except as specifically provided in this Employee Matters Agreement, the Bearings
Group will be solely responsible for (i) all employment, compensation and employee benefits Liabilities relating to Bearings Employees and Former Bearings Business Employees, (ii) all Liabilities arising under each Bearings Benefit Plan,
and (iii) any other Liabilities expressly assigned or allocated to a Bearings Group member under this Employee Matters Agreement. 

Section 2.2 TimkenSteel Group Employee Liabilities. Except as specifically provided in this Employee Matters Agreement, the
TimkenSteel Group will be solely responsible for (i) all employment, compensation and employee benefits Liabilities relating to TimkenSteel Employees and Former TimkenSteel Business Employees, (ii) all Liabilities arising under each
TimkenSteel Benefit Plan, and (iii) any other Liabilities expressly assigned or allocated to a TimkenSteel Group member under this Employee Matters Agreement. Subject to Section 5.1(b), to the extent any of the Liabilities assigned
to TimkenSteel pursuant to this Section 2.2 or Section 6.1 are funded by a life insurance policy held by a member of the Bearings Group on the life of a TimkenSteel Employee or Former TimkenSteel Business Employee, such
policy will be assigned to TimkenSteel. 

  
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 Section 2.3 Bearings Benefit Plans/TimkenSteel Benefit Plans. 

(a) Except as otherwise provided herein, effective as of (i) the Plan Split Date, in the case of the Split DB Plans, the Split Retiree
Welfare Plans, the Timken VEBA, and the Mexico Split Pension Plan and (ii) the Distribution, in the case of all other Bearings Benefit Plans and Bearings Non-U.S. Benefit Plans, the Bearings Group will be exclusively responsible for
administering each Bearings Benefit Plan and Bearings Non-U.S. Benefit Plan in accordance with its terms and for all obligations and liabilities with respect to the Bearings Benefit Plans and Bearings Non-U.S. Benefit Plans and all benefits owed to
participants in the Bearings Benefit Plans and Bearings Non-U.S. Benefit Plans, whether arising before, on or after the Distribution Date or Plan Split Date, as applicable. 

(b) Except as otherwise provided herein, effective as of (i) the Plan Split Date, in the case of the TimkenSteel Spinoff DB Plans, the
TimkenSteel Spinoff Retiree Welfare Plans, the TimkenSteel VEBA, and the Mexico Spinoff Pension Plan and (ii) the Distribution, in the case of all other TimkenSteel Benefit Plans and TimkenSteel Non-U.S. Benefit Plans, the TimkenSteel Group
will be exclusively responsible for administering each TimkenSteel Benefit Plan and TimkenSteel Non-U.S. Benefit Plan in accordance with its terms and for all obligations and liabilities with respect to the TimkenSteel Benefit Plans and TimkenSteel
Non-U.S. Benefit Plans and all benefits owed to participants in the TimkenSteel Benefit Plans and TimkenSteel Non-U.S. Benefit Plans, whether arising before, on or after the Distribution Date or Plan Split Date, as applicable. 

Section 2.4 Employee Transfers. Upon mutual agreement of TimkenSteel and Timken, any employee whose employment transfers within 6
months after the Distribution Date from the Bearings Group to the TimkenSteel Group or from the TimkenSteel Group to the Bearings Group because such employee was inadvertently and erroneously treated as employed by the wrong employer on the
Distribution Date and who was continuously employed by a member of the TimkenSteel Group or the Bearings Group (as applicable) from the Distribution Date through the date such employee commences employment with a member of the Bearings Group or
TimkenSteel Group (as applicable) will be a “Delayed Transfer Employee”; provided, however, that no employee of either Group who is covered by a Collective Bargaining Agreement at the time such employee transfers to
the other Group will be a Delayed Transfer Employee. Notwithstanding anything herein to the contrary, no employee will be considered a Delayed Transfer Employee unless the mutual agreement with respect to, and Applicable Transfer Date of, any
Delayed Transfer Employee occurs on or before the date that is 6 months after the Distribution Date. 

  
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 Section 2.5 Collective Bargaining Agreements. 

(a) Effective as of the Distribution Date, Timken or a Bearings Group member will retain or assume each Collective Bargaining Agreement then in
effect covering Bearings Employees and TimkenSteel or a TimkenSteel Group member will retain or assume each Collective Bargaining Agreement then in effect covering TimkenSteel Employees. 

(b) The parties agree that certain subjects of this Employee Matters Agreement have been, and may in the future be, the subject of effects
bargaining with the United Steelworkers Union and that certain provisions shall be deemed modified to the extent necessary to conform with any agreements reached by the parties with the United Steelworkers Union as a result of such effects
bargaining. 
 (c) The terms of this Employee Matters Agreement will be adjusted or conformed, as and where necessary, so as to not breach or
otherwise contravene any Collective Bargaining Agreement found to be applicable. 
 ARTICLE III 

NON-U.S. EMPLOYEE TRANSFERS AND BENEFIT PLANS 

Section 3.1 UK Pension. Timken and TimkenSteel will use all reasonable endeavors to procure the sectionalization of the Timken UK
Pension Scheme (the “Scheme”) with effect from the Distribution Date such that: 
 (a) the Scheme shall be split into the
Timken UK Limited section (the “TUK Section”) and the TimkenSteel Limited section (the “Steel Section”) to the extent permissible under UK legislation; 

(b) Timken UK Limited (“TUK”) will be the sole participating employer responsible for the TUK Section and TimkenSteel Limited
(“Steel UK”) will be the sole participating employer responsible for the Steel Section; 
 (c) the liabilities relating to
members of the Scheme employed and formerly employed by TUK shall be allocated to the TUK Section and the liabilities relating to members of the Scheme employed and formerly employed by Steel UK shall be allocated to the Steel Section; and 

(d) the assets of the Scheme shall also be separated and allocated to the TUK Section and the Steel Section in proportion to the liabilities
which the TUK Section and the Steel Section bear to the aggregate liabilities of the Scheme. 
 Section 3.2 IRBP. Timken will
retain all obligations and liabilities related to The Timken Company International Retirement Benefit Plan and any corresponding assets related thereto. 

  
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 Section 3.3 Mexico Pension. 

(a) Effective as of the Plan Split Date, a TimkenSteel Entity has established and adopted a defined benefit pension plan (the “Mexico
Spinoff Pension Plan”) to provide retirement benefits to certain TimkenSteel Employees in Mexico who participated in the Plan de Jubilacion de los Empleados de Planta de Timken de Mexico (the “Mexico Split Pension Plan”)
prior to the Plan Split Date. The Mexico Spinoff Pension Plan assumed liability for all benefits accrued or earned by TimkenSteel Employees and their Plan Payees under the Mexico Split Pension Plan as of the Plan Split Date. As of the Plan Split
Date, TimkenSteel or a member of the TimkenSteel Group is solely responsible for taking all necessary, reasonable, and appropriate actions to maintain and administer the Mexico Spinoff Pension Plan so that it complies with applicable local law. As
of the Plan Split Date, the liabilities under the Mexico Split Pension Plan relating to TimkenSteel Employees and their Plan Payees have ceased to be liabilities of the Mexico Split Pension Plan, and have been assumed by the Mexico Spinoff Pension
Plan, and the Bearings Group and the Mexico Split Pension Plan will retain all liabilities with respect to Former TimkenSteel Business Employees, Bearings Employees, and Former Bearings Business Employees. 

(b) On the Plan Split Date, Timken or a member of the Bearings Group caused the Mexico Split Pension Plan (or any applicable trust related
thereto) to transfer to the Mexico Spinoff Pension Plan (or any applicable trust related thereto) a portion of the assets of the Mexico Split Pension Plan, in cash or in kind, equal to the projected benefit obligation of liabilities being assumed by
the Mexico Spinoff Pension Plan pursuant to Section 3.3(a), as determined in the actuarial valuation prepared by Lockton Companies, as of April 30, 2014. 

ARTICLE IV 
 SERVICE
CREDIT 
 Section 4.1 Service Credit for Employee Transfers. Subject to the terms of any applicable Collective Bargaining
Agreement, the Benefit Plans will provide the following service crediting rules effective as of the Distribution Date: 
 (a) From and after
(i) the Plan Split Date, in the case of the TimkenSteel Spinoff DB Plans, the TimkenSteel Spinoff Retiree Welfare Plans, and the TimkenSteel VEBA, and (ii) the Distribution Date, in the case of all other TimkenSteel Benefit Plans,
TimkenSteel will, and will cause its Affiliates and successors to, provide credit under the TimkenSteel Benefit Plans to each TimkenSteel Employee for service with the Bearings Group prior to the Distribution Date or Plan Split Date, as applicable,
for purposes of eligibility, vesting, and benefit service under the appropriate TimkenSteel Benefit Plans in which the TimkenSteel Employee is otherwise eligible, subject to the terms of those plans; provided, however, that service
will not be recognized to the extent that such recognition would result in the duplication of benefits taking into account both Bearings Benefit Plans and TimkenSteel Benefit Plans. 

  
 -13- 

 (b) A Delayed Transfer Employee’s service with the TimkenSteel Group or the Bearings Group
(as applicable) following the Distribution will be recognized for purposes of eligibility, vesting and benefit service under the appropriate Bearings Benefit Plans or TimkenSteel Benefit Plans as appropriate in which they are otherwise eligible,
subject to the terms of those plans; provided, however, that this paragraph (b) will not apply to service crediting under the Split DB Plans or TimkenSteel Spinoff DB Plans; and provided, further, that service will
not be recognized to the extent that such recognition would result in the duplication of benefits taking into account both Bearings Benefit Plans and TimkenSteel Benefit Plans. 

(c) Except as provided in Section 4.1(b), with respect to an employee hired by the TimkenSteel Group or the Bearings Group after
the Distribution Date, the Benefit Plans of the TimkenSteel Group for employees hired by the TimkenSteel Group or Bearings Group for employees hired by the Bearings Group will not recognize such employee’s service with the Bearings Group for
employees hired by the TimkenSteel Group or TimkenSteel Group for employees hired by the Bearings Group unless required by Law or an applicable collective bargaining agreement. 

ARTICLE V 
 LITIGATION
AND COMPENSATION 
 Section 5.1 Employee-Related Litigation. 

(a) Notwithstanding any provision of this Employee Matters Agreement to the contrary, Liability with respect to any Pre-Distribution Action:
(i) will be a TimkenSteel Liability under the Separation Agreement to the extent it can be readily attributed to TimkenSteel Employees and/or Former TimkenSteel Business Employees; (ii) will be a Bearings Liability under the Separation
Agreement to the extent it can be readily attributed to Bearings Employees and/or Former Bearings Business Employees; and (iii) will be a Shared Liability under the Separation Agreement to the extent it cannot be readily attributed to Bearings
Employees and Former Bearings Business Employees, or TimkenSteel Employees and Former TimkenSteel Business Employees, as described in clauses (i) and (ii). A Pre-Distribution Action will be subjection to Section 6.8 of the Separation
Agreement. 
 (b) Timken will have sole authority for administering, and making decisions with respect to, the claims being pursued to
designate Timken as the beneficiary under the life insurance policies (the “Life Insurance Policies”) on the lives of Bill Bowling and Philip Weigel associated with the death benefit agreements that Timken or one of its current or
former Affiliates entered into with Bill Bowling and Philip Weigel (the “Death Benefit Agreements”), and will use its reasonable efforts to obtain such redesignation. Timken will retain responsibility for paying all amounts owed
under the Death Benefit Agreement with Philip Weigel. TimkenSteel will reimburse Timken for all amounts Timken pays to the beneficiaries of the Death Benefit Agreement with Philip Weigel to the extent a member of the Bearings Group does not receive
reimbursements for such amounts pursuant to a Life Insurance Policy for Philip Weigel. To the extent a member of the Bearings Group is a beneficiary under a Life Insurance Policy for Philip 

  
 -14- 

 
Weigel, Timken will take commercially reasonable actions necessary to obtain the proceeds under the Life Insurance Policy. Timken and TimkenSteel acknowledge that Timken has paid the
beneficiaries of the Death Benefit Agreement with Bill Bowling the full amount due under such Death Benefit Agreement, and hereby agree that Timken will retain any reimbursement that it receives for such amounts pursuant to a Life Insurance Policy
for Bill Bowling. 
 Section 5.2 Vacation. Subject to the terms of any applicable Collective Bargaining Agreement and except to
the extent not permitted by applicable law, the Bearings Group will assume or retain, as applicable, responsibility for accrued vacation attributable to Bearings Employees as of the Distribution Date, or Applicable Transfer Date. Subject to the
terms of any applicable Collective Bargaining Agreement and except to the extent not permitted by applicable law, the TimkenSteel Group will assume or retain, as applicable, responsibility for accrued vacation attributable to TimkenSteel Employees
as of the Distribution Date, or Applicable Transfer Date. 
 Section 5.3 Annual Bonuses. 

(a) Eligible employees of the Bearings Group and TimkenSteel Group will continue to participate in the Timken Annual Performance Award Pay Plan
(“APA”) through the Distribution Date or, for TimkenSteel Transferees, the Applicable Transfer Date. Timken will remain responsible for and will pay any awards earned under the APA to all Bearings Employees and Former Bearings
Business Employees, and TimkenSteel will be responsible for and will pay any awards earned under the APA by TimkenSteel Employees and Former TimkenSteel Business Employees. The Bearings Group will be responsible for establishing and paying any
annual bonus for its employees for performance periods after the Distribution Date or, for Bearings Transferees, the Applicable Transfer Date, and the TimkenSteel Group will be responsible for establishing and paying any annual bonus for its
employees for performance periods after the Distribution Date. 
 (b) Eligible employees of the Bearings Group and the TimkenSteel Group will
continue to participate in the Timken Senior Executive Management Performance Plan (the “SEMPP”) through December 31, 2014. The determination of whether any portion of an award under the SEMPP with respect to the 2014 fiscal
year (a “2014 SEMPP Award”) has been earned will be made based upon the achievement of the applicable management objectives measured as of December 31, 2014. Such determination will be made by the Timken Compensation Committee
in accordance with the SEMPP. With respect to TimkenSteel Employees, the amount of any 2014 SEMPP Award will be prorated based on the number of days of the 2014 fiscal year completed as of the Distribution Date. Notwithstanding any provision of the
SEMPP, Timken will pay each 2014 SEMPP Award held by a Bearings Employee or a Former Bearings Business Employee, and TimkenSteel will pay each 2014 SEMPP Award held by a TimkenSteel Employee or a Former TimkenSteel Business Employee. 

  
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 Section 5.4 Employment Agreements. Subject to Section 5.1(b), effective
as of the Distribution, TimkenSteel or a member of the TimkenSteel Group will assume and be solely responsible for any Employment Agreement to which a TimkenSteel Employee or a Former TimkenSteel Business Employee is a party (a “TimkenSteel
Employment Agreement”), including the agreements listed on Schedule 5.4, and the Bearings Group will have no liabilities with respect thereto. Notwithstanding any provision to the contrary, (i) the TimkenSteel Employment
Agreements will be the responsibility of one or more members of the TimkenSteel Group following the Distribution Date; and (ii) Timken will retain and be solely and exclusively responsible for all obligations and liabilities with respect to, or
in any way related to, any Employment Agreement that is not a TimkenSteel Employment Agreement. 
 Section 5.5 Repayment
Agreements. With respect to each TimkenSteel Employee who has entered into a Repayment Agreement with Timken, Timken will assign all of its rights under such Repayment Agreement to TimkenSteel, and TimkenSteel will assume and be responsible for
paying any amounts Timken owes to the TimkenSteel Employee under such Repayment Agreement as of the Distribution Date or Applicable Transfer Date in accordance with the terms of such agreement and any underlying Timken policy in effect as of the
Distribution Date. TimkenSteel may retain any amounts it receives if any TimkenSteel Employee becomes obligated to repay reimbursements made under any such Repayment Agreement assumed by TimkenSteel. 

ARTICLE VI 
 CERTAIN
WELFARE BENEFIT PLAN MATTERS 
 Section 6.1 TimkenSteel Spinoff Welfare Plans. 

(a) Effective as of the Plan Split Date, TimkenSteel established the TimkenSteel Corporation Welfare Benefit Plan for Retirees and the
TimkenSteel Corporation Bargaining Unit Welfare Benefit Plan for Retirees (together, the “TimkenSteel Spinoff Retiree Welfare Plans”). Each TimkenSteel Spinoff Retiree Welfare Plan has terms and features (including benefit coverage
options, employer contribution provisions and retiree medical coverage) that are substantially similar to one of the Bearings Benefit Plans listed on Schedule 6.1(a) (such Bearings Benefit Plans, the “Split Retiree Welfare
Plans”) such that (for the avoidance of doubt) each Split Retiree Welfare Plan is substantially replicated by a TimkenSteel Spinoff Retiree Welfare Plan, except as otherwise provided on Schedule 6.1(a). As of the Plan Split Date,
each TimkenSteel Spinoff Retiree Welfare Plan covers those TimkenSteel Employees and Former TimkenSteel Business Employees and their Plan Payees who immediately prior to the Plan Split Date were participating in, or entitled to present or future
benefits under, the corresponding Split Retiree Welfare Plan. The TimkenSteel Group and the TimkenSteel Spinoff Retiree Welfare Plans are solely responsible for all claims incurred by TimkenSteel Employees and Former TimkenSteel Business Employees
and their Plan Payees under the TimkenSteel Spinoff Retiree Welfare Plans and Split Retiree Welfare Plans (“TimkenSteel Retiree Welfare Claims”) before, on and after the Plan Split Date, but only to the extent such claims are not
payable under an insurance policy held by the Bearings Group. To the extent any TimkenSteel Retiree Welfare Claims are payable under an insurance policy held by the Bearings Group, 

  
 -16- 

 
Timken will take all commercially reasonable actions necessary to process such claim and obtain payment under the applicable insurance policy. Effective as of the Plan Split Date, TimkenSteel
Employees and their Plan Payees ceased to be covered by the Split Retiree Welfare Plans. The Bearings Group and the Split Retiree Welfare Plans will remain solely responsible for all claims incurred by Bearings Employees and Former Bearings Business
Employees and their Plan Payees, whether incurred before, on, or after the Plan Split Date. 
 (b) Effective not later than the Distribution,
TimkenSteel or a member of the TimkenSteel Group will establish certain other welfare benefit plans (such plans, the “TimkenSteel Spinoff Welfare Plans”). TimkenSteel will cause each TimkenSteel Spinoff Welfare Plan to have terms
and features (including benefit coverage options, employer contribution provisions and retiree medical coverage) that are substantially similar to one of the Bearings Benefit Plans listed on Schedule 6.1(b) (such Bearings Benefit Plans, the
“Split Welfare Plans”) such that (for the avoidance of doubt) each Split Welfare Plan is substantially replicated by a TimkenSteel Spinoff Welfare Plan, except as otherwise provided on Schedule 6.1(b). From and after the
Distribution Date or Applicable Transfer Date, TimkenSteel will cause each TimkenSteel Spinoff Welfare Plan to cover those TimkenSteel Employees and Former TimkenSteel Business Employees and their Plan Payees who immediately prior to the
Distribution or Applicable Transfer Date were participating in, or entitled to present or future benefits under, the corresponding Split Welfare Plan, except as otherwise provided in the Transition Services Agreement. With respect to any severance
benefits owed to any Bearings Employee, Former Bearings Business Employee, TimkenSteel Employee, or Former TimkenSteel Business Employee as a result of a termination of employment occurring on or prior to the Distribution Date (the “Retained
Severance Benefits”), the Bearings Group and the applicable Bearings Welfare Plans (including the Split Welfare Plans) will be solely responsible for all such Retained Severance Benefits. The TimkenSteel Group and the TimkenSteel Spinoff
Welfare Plans will be solely responsible for all claims incurred by TimkenSteel Employees and Former TimkenSteel Business Employees and their Plan Payees under the TimkenSteel Spinoff Welfare Plans and Split Welfare Plans (except with respect to
Retained Severance Benefits or as otherwise provided in the Transition Services Agreement) (“TimkenSteel Welfare Claims”) before, on and after the Distribution Date or Applicable Transfer Date, but only to the extent such claims are
not otherwise payable under an insurance policy held by the Bearings Group. To the extent any TimkenSteel Welfare Claims are payable under an insurance policy held by the Bearings Group, Timken will take all commercially reasonable actions necessary
to process such claim and obtain payment under the applicable insurance policy. Effective as of the Distribution Date or Applicable Transfer Date, Timken will cause TimkenSteel Employees and their Plan Payees to cease to be covered by the Bearings
Welfare Plans (including the Split Welfare Plans), except as otherwise provided in the Transition Services Agreement. The Bearings Group and the Bearings Welfare Plans will remain solely responsible for all claims incurred by Bearings Employees and
Former Bearings Business Employees and their Plan Payees, whether incurred before, on, or after the Distribution Date. 

  
 -17- 

 (c) For purposes of this Section 6.1, a claim will be deemed “incurred” on
the date that the event that gives rise to the claim occurs (for purposes of life insurance, severance, sickness, accident and disability programs) or on the date that treatment or services are provided (for purposes of health care programs). 

Section 6.2 Continuation of Elections. 

(a) As of the Plan Split Date, TimkenSteel has caused the TimkenSteel Spinoff Retiree Welfare Plans to recognize elections and designations
(including, without limitation, all coverage and contribution elections and beneficiary designations, all continuation coverage and conversion elections, and all qualified medical child support orders and other orders issued by courts of competent
jurisdiction) in effect with respect to Former TimkenSteel Business Employees prior to the Plan Split Date under the corresponding Split Retiree Welfare Plan, to the extent such elections and designations and orders are applicable to such Split
Retiree Welfare Plan, and will continue to apply and maintain in force comparable elections and designations and orders under the TimkenSteel Spinoff Retiree Welfare Plans for the remainder of the period or periods for which such elections or
designations are by their terms effective. 
 (b) As of the Distribution Date, or Applicable Transfer Date, TimkenSteel will cause the
TimkenSteel Spinoff Welfare Plans to recognize elections and designations (including, without limitation, all coverage and contribution elections and beneficiary designations, all continuation coverage and conversion elections, and all qualified
medical child support orders and other orders issued by courts of competent jurisdiction) in effect with respect to TimkenSteel Employees and Former TimkenSteel Business Employees prior to the Distribution Date, or Applicable Transfer Date, under
the corresponding Split Welfare Plan, to the extent such elections and designations and orders are applicable to such Split Welfare Plan, and apply and maintain in force comparable elections and designations and orders under the TimkenSteel Spinoff
Welfare Plans for the remainder of the period or periods for which such elections or designations are by their original terms effective. 

Section 6.3 Deductibles and Other Cost-Sharing Provisions. 

(a) As of the Plan Split Date, TimkenSteel has caused the TimkenSteel Spinoff Retiree Welfare Plans to recognize all amounts applied to
deductibles, co-payments and out-of-pocket maximums with respect to TimkenSteel Employees and Former TimkenSteel Business Employees under the corresponding Split Retiree Welfare Plan during the plan year in which the Plan Split Date occurs, and the
TimkenSteel Spinoff Retiree Welfare Plans have not imposed any limitations on coverage for preexisting conditions other than such limitations as were applicable under the corresponding Split Retiree Welfare Plan prior to the Plan Split Date. 

(b) As of the Distribution Date, or Applicable Transfer Date, TimkenSteel will cause the TimkenSteel Spinoff Welfare Plans to recognize all
amounts applied to deductibles, co-payments and out-of-pocket maximums with respect to TimkenSteel Employees and Former TimkenSteel Business Employees under the 

  
 -18- 

 
corresponding Split Welfare Plan during the plan year in which the Distribution or Applicable Transfer Date occurs, and the TimkenSteel Spinoff Welfare Plans will not impose any limitations on
coverage for preexisting conditions other than such limitations as were applicable under the corresponding Split Welfare Plan prior to the Distribution Date or Applicable Transfer Date. 

Section 6.4 Flexible Spending Account Treatment. Notwithstanding Sections 6.2 and 6.3 to the contrary, with respect to the
portion of a Split Welfare Plan that consists of medical and dependent care flexible spending accounts (the “Bearings Flexible Account Plan”), as of the Distribution or Applicable Transfer Date, TimkenSteel will be solely
responsible for all liabilities with respect to TimkenSteel Employees and Former TimkenSteel Business Employees, and the applicable TimkenSteel Spinoff Welfare Plan (the “TimkenSteel Flexible Account Plan”) will, as required under
Section 6.2, give effect to the elections of TimkenSteel Employees and Former TimkenSteel Business Employees that were in effect under the corresponding Split Welfare Plan as of the Distribution Date or Applicable Transfer Date. As soon
as practicable following the Distribution or Applicable Transfer Date, Timken will transfer to TimkenSteel in cash an amount equal to the total amount that TimkenSteel Employees and Former TimkenSteel Business Employees have contributed to the
Bearings Flexible Account Plan through the Distribution Date or Applicable Transfer Date for the calendar year that includes the Distribution or Applicable Transfer Date less all amounts that have been paid from Bearings Flexible Account Plan
through the Distribution Date or Applicable Transfer Date for medical and dependent care claims incurred by the TimkenSteel Employees and Former TimkenSteel Business Employees in the calendar year that includes the Distribution or Applicable
Transfer Date (such difference, the “Flex Plan Amount”). If the Flex Plan Amount is less than $0, as soon as practicable after the Distribution or Applicable Transfer Date, TimkenSteel will transfer to Timken in cash an amount equal
to all amounts that have been paid from Bearings Flexible Account Plan through the Distribution Date for medical expense and dependent care claims incurred by the TimkenSteel Employees and Former TimkenSteel Business Employees in the calendar year
that includes the Distribution or Applicable Transfer Date less the total amount that TimkenSteel Employees and Former Timken Steel Business Employees have contributed to Bearings Flexible Account Plan through the Distribution Date or Applicable
Transfer Date for the calendar year that includes the Distribution or Applicable Transfer Date. After the Distribution Date or Applicable Transfer Date, the TimkenSteel Flexible Account Plan will be responsible for reimbursement of all previously
unreimbursable medical expense and dependent care claims incurred by TimkenSteel Employees and Former TimkenSteel Business Employees, regardless of when the claims were incurred. 

Section 6.5 Workers’ Compensation. The Bearings Group will be solely responsible for all United States (including its
territories) workers’ compensation claims of Bearings Employees and Former Bearings Business Employees, regardless of when the Workers’ Compensation Events to which such claims relate occur. The Bearings Group will have sole authority for
administering, making decisions with respect to, and paying all United States (including its territories) workers’ compensation claims of TimkenSteel Employees and Former TimkenSteel Business Employees with respect to

  
 -19- 

 
Workers’ Compensation Events occurring before the Distribution Date or Applicable Transfer Date (“TimkenSteel Workers’ Compensation Claims”), subject to the prior
consent of TimkenSteel, which consent shall not be unreasonably withheld. The consent described in the immediately preceding sentence will be evidenced in writing with respect to any decision relating to (a) the settlement of a TimkenSteel
Workers’ Compensation Claim, (b) the designation of an “allowed condition,” or (c) the administration of ongoing litigation. TimkenSteel will, and will cause any other TimkenSteel Entity (and each of their respective
successors and assigns) to, jointly and severally indemnify, defend and hold harmless Timken and each member of the Bearings Group and each of their respective successors and assigns from and against any and all Damages incurred by Timken arising
out of or in connection with a TimkenSteel Workers’ Compensation Claim, whether such Damages arise or accrue prior to, on or following the Distribution Date, but only to the extent such Damages are not payable under an insurance policy held by
the Bearings Group. To the extent any such Damages are payable under an insurance policy held by the Bearings Group, Timken will take all commercially reasonable actions necessary to obtain payment of such Damages under the applicable insurance
policy. The TimkenSteel Group will be solely responsible for all workers’ compensation claims of TimkenSteel Employees with respect to Workers’ Compensation Events occurring on or after the Distribution Date. 

Section 6.6 COBRA. Effective as of the Distribution Date or Applicable Transfer Date, TimkenSteel or a member of the TimkenSteel
Group will assume or will cause the TimkenSteel Spinoff Welfare Plans to assume sole responsibility for compliance with COBRA after the Distribution Date or Applicable Transfer Date for all TimkenSteel Employees, Former TimkenSteel Business
Employees and their “qualified beneficiaries” for whom a “qualifying event” occurs before, on or after the Distribution Date or the Applicable Transfer Date; provided, however, that Timken or a member of the
Bearings Group will be responsible for furnishing any election notice required under COBRA to any TimkenSteel Transferee. Timken, the Bearings Group, or a Split Welfare Plan will remain solely responsible for compliance with COBRA before, on and
after the Distribution Date or Applicable Transfer Date for Bearings Employees, Former Bearings Business Employees and their “qualified beneficiaries”; provided, however, that TimkenSteel or a member of the TimkenSteel Group
will be responsible for furnishing any election notice required under COBRA to any Bearings Transferee. The terms “qualified beneficiaries” and “qualifying event” will have the meanings given to them under Code Section 4980B
and ERISA Sections 601-608. For the avoidance of doubt, Section 6.1(b) will govern whether the TimkenSteel Spinoff Welfare Plans or Split Welfare Plans are responsible for claims incurred by TimkenSteel Employees, Former TimkenSteel
Business Employees, or their qualified beneficiaries, while receiving continuation coverage under COBRA. 
 Section 6.7 Timken
VEBA. As of the Plan Split Date, TimkenSteel has established the Voluntary Employees’ Beneficiary Association sponsored by TimkenSteel or its Affiliates as a tax exempt trust under Section 501(c)(9) of the Code (the
“TimkenSteel VEBA”). Timken will or will cause the trustee of The Timken Company Voluntary Employees’ Beneficiary Association Trust (the “Timken VEBA”) to segregate, and then transfer to the trustee of the
TimkenSteel VEBA, a portion of the 

  
 -20- 

 
assets held by the Timken VEBA equal to: the fair market value, as of the Plan Split Date, of the assets of the Timken VEBA multiplied by a fraction, the numerator of which is the accumulated
post-retirement health benefit obligation determined under ASC 715-60 for Represented TimkenSteel Employees and Represented Former TimkenSteel Employees whose right to post-retirement health benefits is subject to or otherwise based in whole or in
part on 1 or more Collective Bargaining Agreements, and the denominator of which is the accumulated post-retirement health benefit obligation determined under ASC 715-60 for all participants and dependents whose right to post-retirement health
benefits is subject to or otherwise based in whole or in part on 1 or more Collective Bargaining Agreements. For this purpose, the ASC 715-60 accumulated post-retirement health benefit obligation will be measured at the Plan Split Date using the
discount rate in effect at the Plan Split Date, and those other actuarial assumptions then being used by Towers Watson to satisfy Timken’s ASC 715-60 reporting obligation. The segregation described in this Section 6.7 shall occur no
later than 30 days after the Plan Split Date. The transfer described in this Section 6.7 shall occur within 180 days after the Distribution Date (unless the parties otherwise agree to postpone such transfer date) and shall be made in
cash or, to the extent agreed by the parties, marketable securities. 
 ARTICLE VII 

TAX-QUALIFIED DEFINED BENEFIT PLANS 

Section 7.1 TimkenSteel Spinoff DB Plans. 

(a) Effective as of the Plan Split Date, TimkenSteel has established and adopted certain defined benefit plans that are intended to qualify
under Code Section 401(a), along with a related master trust or trusts that is exempt under Code Section 501(a) (such plans and trusts, the “TimkenSteel Spinoff DB Plans”). On the Plan Split Date, each TimkenSteel Spinoff
DB Plan has terms and features (including benefit accrual provisions) that are substantially similar to one of the Benefit Plans listed on Schedule 7.1(a) (such Benefit Plans, the “Split DB Plans”), such that (for the
avoidance of doubt) each Split DB Plan is substantially replicated by a corresponding TimkenSteel Spinoff DB Plan. Each TimkenSteel Spinoff DB Plan assumed liability for all benefits accrued or earned (whether or not vested) by TimkenSteel Employees
and Former TimkenSteel Business Employees and their respective Plan Payees under the corresponding Split DB Plan as of the Plan Split Date. As of the Plan Split Date, TimkenSteel or a member of the TimkenSteel Group is solely responsible for taking
all necessary, reasonable, and appropriate actions (including the submission of the TimkenSteel Spinoff DB Plans to the Internal Revenue Service for a determination of tax-qualified status) to establish, maintain and administer the TimkenSteel
Spinoff DB Plans so that they are qualified under Section 401(a) of the Code and that the related trusts thereunder are exempt under Section 501(a) of the Code. The portion of liabilities relating to TimkenSteel Employees and Former
TimkenSteel Business Employees and their respective Plan Payees have ceased to be liabilities of the applicable Split DB Plan, and have been assumed by the corresponding TimkenSteel Spinoff DB Plan in accordance with this Section and
Section 414(l) of the Code, Treasury Regulation Section 1.414(l)-1 and Section 208 of ERISA. 

  
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 (b) Timken or a member of the Bearings Group has caused its actuary to determine the estimated
value, as of the Plan Split Date, of the assets required to be held on behalf of each TimkenSteel Spinoff DB Plan in accordance with the assumptions and methodologies set forth in Treasury Regulation Section 1.414(l)-1 and ERISA
Section 4044 (the “Estimated Retirement Plan Transfer Amount” for each such plan). Within 60 days after the Plan Split Date, Timken or a member of the Bearings Group caused the trust for each Split DB Plan to transfer to the
trust of each TimkenSteel Spinoff DB Plan an amount in cash or in-kind equal to 95% of the Estimated Retirement Plan Transfer Amount for such plan. 

(c) Within 3 months after the Plan Split Date, Timken or another member of the Bearings Group will cause its actuary to provide TimkenSteel
with a revised calculation of the value, as of the Plan Split Date, of the assets to be transferred to each TimkenSteel Spinoff DB Plan determined in accordance with the assumptions and methodologies set forth in Treasury Regulation
Section 1.414(l)-1 and ERISA Section 4044 and reflecting any demographic updates (the “Final Retirement Plan Transfer Amount” for each such TimkenSteel Spinoff DB Plan). Within 120 days after the Plan Split Date, Timken
will cause each Split DB Plan to transfer to the corresponding TimkenSteel Spinoff DB Plan an amount in cash or in kind equal to (i) the Final Retirement Plan Transfer Amount, minus (ii) any amounts previously transferred from such Split
DB Plan (A) directly to the corresponding TimkenSteel Spinoff DB Plan or (B) to a Third Party on behalf of the corresponding TimkenSteel Spinoff DB Plan (such amount, the “True-Up Amount”). If the True-Up Amount is a
negative number with respect to any TimkenSteel Spinoff DB Plan, TimkenSteel will cause each such TimkenSteel Spinoff DB Plan to transfer to the corresponding Split DB Plan an amount, in cash or in kind, by which the amounts described in clause
(ii) in the preceding sentence exceed the Final Retirement Plan Transfer Amount. The parties hereto acknowledge that the Split DB Plans’ transfer of the True-Up Amount to the corresponding TimkenSteel Spinoff DB Plans will be in full
settlement and satisfaction of the obligations of Timken and the Split DB Plans to transfer assets to the TimkenSteel Spinoff DB Plans pursuant to this Section. Any amounts transferred between a Split DB Plan and a TimkenSteel Spinoff DB Plan
pursuant to Section 7.1(b) or 7.1(c), or otherwise to effectuate this Article VII, will be adjusted for earnings in a manner to be determined by mutual agreement of Timken and TimkenSteel. 

(d) From and after the Plan Split Date, TimkenSteel and the members of the TimkenSteel Group are solely and exclusively responsible for all
obligations and liabilities with respect to, or in any way related to, the TimkenSteel Spinoff DB Plans, whether accrued before, on or after the Plan Split Date. For the avoidance of doubt, the TimkenSteel Spinoff DB Plans will have the sole and
exclusive obligation to the extent required by Law and the terms of the applicable TimkenSteel Spinoff DB Plan to restore the unvested accrued benefits attributable to any Former TimkenSteel Business Employee who becomes employed by a member of the
TimkenSteel Group and whose employment with Timken or any of its Affiliates terminated on or before the Plan Split Date at a time when such individual’s benefits under the Split DB Plan were not fully vested. Furthermore, the TimkenSteel
Spinoff DB Plans will have the sole obligation to restore accounts attributable to any lost participants who were formerly employed in the Steel Business to the extent required by applicable Law. 

  
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 Section 7.2 Continuation of Elections. As of the Plan Split Date, TimkenSteel (acting
directly or through a member of the TimkenSteel Group) will cause the TimkenSteel Spinoff DB Plans to recognize and maintain all existing elections, including beneficiary designations, payment form elections and rights of alternate payees under
qualified domestic relations orders with respect to TimkenSteel Employees and Former TimkenSteel Business Employees and their respective Plan Payees under the corresponding Split DB Plan. 

Section 7.3 Delayed Transfer Employees. Notwithstanding any provision of this Employee Matters Agreement to the contrary, for
purposes of this Article VII, the term “Bearings Employees” will not include Bearings Transferees, and the term “TimkenSteel Employees” will not include TimkenSteel Transferees. Timken and TimkenSteel will cooperate in good faith
to address any loss a Delayed Transfer Employee experiences under a Split DB Plan or TimkenSteel Spinoff DB Plan by reason of such employee’s transfer described in Section 2.4. 

ARTICLE VIII 
 U.S.
TAX-QUALIFIED DEFINED CONTRIBUTION PLANS 
 Section 8.1 TimkenSteel Spinoff DC Plans. 

(a) Effective as of the Distribution Date, TimkenSteel or another member of the TimkenSteel Group will adopt and establish certain defined
contribution plans that are intended to qualify under Code Section 401(a), and a related master trust or trusts exempt under Code Section 501(a) (such plans and trusts, the “TimkenSteel Spinoff DC Plans”). Each TimkenSteel
Spinoff DC Plan will have terms and features (including employer contribution provisions) that are substantially similar to one of the Benefit Plans listed on Schedule 8.1(a) (such Benefit Plans, the “Split DC Plans”) such
that (for the avoidance of doubt) each Split DC Plan is substantially replicated by a corresponding TimkenSteel Spinoff DC Plan. TimkenSteel or a member of the TimkenSteel Group will be solely responsible for taking all necessary, reasonable, and
appropriate actions (including the submission of the TimkenSteel Spinoff DC Plans to the Internal Revenue Service for a determination of tax-qualified status) to establish, maintain and administer the TimkenSteel Spinoff DC Plans so that they are
qualified under Section 401(a) of the Code and that the related trusts thereunder are exempt under Section 501(a) of the Code. Each TimkenSteel Spinoff DC Plan will assume liability for all benefits accrued or earned (whether or not
vested) by TimkenSteel Employees and Former TimkenSteel Business Employees under the corresponding Split DC Plan as of the Distribution Date or Applicable Transfer Date. 

(b) On or as soon as reasonably practicable following the Distribution Date or Applicable Transfer Date (but not later than 30 days
thereafter), Timken or another member of the Bearings Group will cause each Split DC Plan to transfer to the applicable TimkenSteel Spinoff DC Plan, and TimkenSteel or another member of the 

  
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TimkenSteel Group will cause such TimkenSteel Spinoff DC Plan to accept the transfer of, the accounts, liabilities and related assets in such Split DC Plan attributable to TimkenSteel Employees
and Former TimkenSteel Business Employees and their respective Plan Payees. The transfer of assets will be in cash or in kind (as determined by the transferor) and include outstanding loan balances and amounts forfeited by Former TimkenSteel
Business Employees that have not yet been reallocated or applied to the payment of contributions or expenses and be conducted in accordance with Code Section 414(l) and Treasury Regulation Section 1.414(l)-1 and Section 208 of ERISA.

 (c) On or as soon as reasonably practicable following the Applicable Transfer Date (but not later than 30 days thereafter), TimkenSteel or
a member of the TimkenSteel Group will cause the accounts, related liabilities, and related assets in the corresponding TimkenSteel Spinoff DC Plan(s) attributable to any Bearings Transferees and their respective Plan Payees (including any
outstanding loan balances) to be transferred in cash or in-kind (as determined by the transferor) in accordance with Code Section 414(l) and Treasury Regulation Section 1.414(l)-1 and Section 208 of ERISA to the applicable Split DC
Plan(s). Timken or another member of the Bearings Group will cause the applicable Split DC Plan(s) to accept such transfer of accounts, liabilities and assets. 

(d) From and after the Distribution Date, except as specifically provided in paragraph (c) above, TimkenSteel and the TimkenSteel Group
will be solely and exclusively responsible for all obligations and liabilities with respect to, or in any way related to, the TimkenSteel Spinoff DC Plans, whether accrued before, on or after the Distribution Date. For the avoidance of doubt, the
TimkenSteel Spinoff DC Plans will, to the extent required by Law and the terms of the applicable TimkenSteel Spinoff DC Plans, have the sole and exclusive obligation to restore the unvested portion of any account attributable to any individual who
becomes employed by a member of the TimkenSteel Group and whose employment with Timken or any of its Affiliates, or a member of the Bearings Group, terminated on or before the Distribution at a time when such individual’s benefits under the
Split DC Plans were not fully vested. Furthermore, the TimkenSteel Spinoff DC Plans will have the sole obligation to restore accounts attributable to any lost participants who were formerly employed in the Steel Business to the extent required by
applicable Law. 
 Section 8.2 Continuation of Elections. As of the Distribution Date, or Applicable Transfer Date, TimkenSteel
(acting directly or through a member of the TimkenSteel Group) will cause the TimkenSteel Spinoff DC Plans to recognize and maintain all elections, including investment and payment form elections, beneficiary designations, and the rights of
alternate payees under qualified domestic relations orders with respect to TimkenSteel Employees and Former TimkenSteel Business Employees and their respective Plan Payees under the corresponding Split DC Plan. 

  
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 Section 8.3 Assumed DC Plans. 

(a) Effective as the Distribution Date, TimkenSteel or a member of the TimkenSteel Group will assume and be solely responsible for the defined
contribution plans listed on Schedule 8.3 (the “Assumed DC Plans”) and the Bearings Group will have no liabilities with respect thereto. From and after the Distribution Date, TimkenSteel or a member of the TimkenSteel Group
will be solely responsible for taking all necessary, reasonable, and appropriate actions (including the submission of the Assumed DC Plans to the Internal Revenue Service for a determination of tax-qualified status) to maintain and administer the
Assumed DC Plans so that they are qualified under Section 401(a) of the Code and that the related trusts thereunder are exempt under Section 501(a) of the Code. From and after the Distribution Date, TimkenSteel and the TimkenSteel Group
will assume and be solely and exclusively responsible for all assets, obligations, and liabilities associated with, or in any way related to, the Assumed DC Plans, whether accrued before, on or after the Distribution Date. 

(b) As of the Distribution Date, TimkenSteel (acting directly or through a member of the TimkenSteel Group) will cause the Assumed DC Plans to
recognize and maintain all elections, including investment and payment form elections, beneficiary designations, and the rights of alternate payees under qualified domestic relations orders that were in effect with respect to TimkenSteel Employees
and Former TimkenSteel Business Employees and their respective Plan Payees under the Assumed DC Plans immediately prior to the Distribution Date. 

Section 8.4 Contributions Due. 

(a) All amounts payable to the Split DC Plans and Assumed DC Plans with respect to employee deferrals, matching contributions and employer
contributions for TimkenSteel Employees relating to a time period ending on or prior to the Distribution Date, determined in accordance with the terms and provisions of the Split DC Plans, the Assumed DC Plans, ERISA and the Code, will be paid by
Timken or another member of the Bearings Group to the appropriate Split DC Plan or Assumed DC Plan prior to the date of any asset transfer described in Section 8.1(b) or Section 8.3(a). 

ARTICLE IX 
 NONQUALIFIED
RETIREMENT PLANS 
 Section 9.1 TimkenSteel Spinoff Nonqualified Plans. 

(a) Effective as of the Distribution, TimkenSteel or another member of the TimkenSteel Group will establish certain nonqualified retirement
plans (such plans, the “TimkenSteel Spinoff Nonqualified Plans”). Each TimkenSteel Spinoff Nonqualified Plan will have terms and features (including employer contribution provisions) that are substantially similar to one of the
Bearings Benefit Plans listed on Schedule 9.1(a) (such plans, the “Split Nonqualified Plans”) such that (for the avoidance of doubt), each Split Nonqualified Plan is substantially replicated by a corresponding TimkenSteel
Spinoff Nonqualified Plan. TimkenSteel or a member of the TimkenSteel Group will be solely responsible for taking all necessary, reasonable, and appropriate actions to establish, maintain and administer the TimkenSteel Spinoff Nonqualified Plans so
that they do not result in adverse Tax consequences under Code Section 409A. Each TimkenSteel 

  
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Spinoff Nonqualified Plan will assume liability for all benefits accrued or earned (whether or not vested) by TimkenSteel Employees and Former TimkenSteel Business Employees and their respective
Plan Payees under the corresponding Split Nonqualified Plan as of the Distribution Date. From and after the Distribution Date, TimkenSteel and the TimkenSteel Group will be solely and exclusively responsible for all obligations and liabilities with
respect to, or in any way related to, the TimkenSteel Spinoff Nonqualified Plans, whether accrued before, on or after the Distribution Date, except that Timken will be responsible for distributing any Timken Common Shares that are to be distributed
pursuant to any Spinoff Nonqualified Plan. Furthermore, TimkenSteel and the TimkenSteel Group will have the sole obligation to restore in the TimkenSteel Spinoff Nonqualified Plans benefits under the Split Nonqualified Plans attributable to any lost
participants who were formerly employed in the Steel Business. 
 (b) From and after the Distribution Date, Timken and the Bearings Group
will be solely and exclusively responsible for all obligations and liabilities with respect to, or in any way related to, the nonqualified retirement plans sponsored or maintained by a member of the Bearings Group (including, but not limited to, the
Split Nonqualified Plans) to the extent such obligations and liabilities are not specifically assumed by a TimkenSteel Group member or the TimkenSteel Spinoff Nonqualified Plans pursuant to Section 9.1(a) or Section 9.1(c),
except that TimkenSteel will be responsible for distributing any TimkenSteel Common Shares that are to be distributed pursuant to any Split Nonqualified Plan. 

(c) Effective as of the Distribution, the TimkenSteel Group will assume and be solely responsible for all obligations and liabilities with
respect to the Excess Benefits Agreements listed on Schedule 9.1(c) between Timken and certain employees, and the Bearings Group will have no liability with respect thereto. Notwithstanding any provision to the contrary, Timken will retain
and be solely and exclusively responsible for all obligations and liabilities with respect to, or in any way related to, any Excess Benefits Agreements between Timken or its Affiliates and certain service providers and former service providers not
specifically assumed by TimkenSteel pursuant to this Section 9.1(c). 
 Section 9.2 No Distributions on Separation.
Timken and TimkenSteel acknowledge that neither the Distribution nor any of the other transactions contemplated by this Employee Matters Agreement, the Separation Agreement or the other Ancillary Agreements will trigger a payment or distribution of
compensation under any Benefit Plan that is a nonqualified retirement plan for any Bearings Employee, TimkenSteel Employee, former Bearings Employee or Former TimkenSteel Business Employee and, consequently, that the payment or distribution of any
compensation to which any Bearings Employee, TimkenSteel Employee, former Bearings Employee or Former TimkenSteel Business Employee is entitled under any such Benefit Plan will occur upon such individual’s separation from service from the
Bearings Group or the TimkenSteel Group, as applicable, or at such other time as specified in the applicable Benefit Plan. 

  
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 Section 9.3 Section 409A. Timken and TimkenSteel will cooperate in good faith so
that the Distribution will not result in adverse Tax consequences under Code Section 409A to any current or former employee of any member of the Bearings Group or any member of the TimkenSteel Group, or their respective Plan Payees, in respect
of his or her benefits under any Bearings Benefit Plan or TimkenSteel Benefit Plan. 
 Section 9.4 Continuation of Elections. As
of the Distribution Date, or Applicable Transfer Date and as permitted by Code Section 409A, TimkenSteel (acting directly or through a member of the TimkenSteel Group) will cause each TimkenSteel Spinoff Nonqualified Plan to recognize and
maintain all elections, including deferral, investment and payment form elections, beneficiary designations, and the rights of alternate payees under qualified domestic relations orders with respect to TimkenSteel Employees and their Plan Payees
under the corresponding Split Nonqualified Plan. 
 Section 9.5 Delayed Transfer Employees. Any TimkenSteel Transferee will be
treated in the same manner as a TimkenSteel Employee under this Article IX, except that such TimkenSteel Transferee may experience a separation from service (within the meaning of Code Section 409A) on his or her Applicable Transfer Date. Such
a TimkenSteel Transferee’s Applicable Transfer Date will be treated as the Distribution Date. In addition, the Bearings Group will assume and be solely responsible, pursuant to the terms of the applicable Split Nonqualified Plan, for any
benefits accrued by any Bearings Transferee under any TimkenSteel Spinoff Nonqualified Plan, and the TimkenSteel Group will have no liability with respect thereto. Notwithstanding any provision of this Employee Matters Agreement to the contrary, for
purposes of this Article IX, the term “Bearings Employees” will not include Bearings Transferees and the term “TimkenSteel Employees” will not include TimkenSteel Transferees, in each case, with respect to TimkenSteel Spinoff
Nonqualified Plans and Split Nonqualified Plans that are defined benefit plans. 
 Section 9.6 Timken Director Plan. 

(a) Timken has adopted The Timken Company Director Deferred Compensation Plan (the “Timken Director Plan”). From and after the
Distribution Date, Timken and the Bearings Group will be solely and exclusively responsible for liability accrued prior to the Distribution Date for all deferred amounts under the Timken Director Plan. 

ARTICLE X 
 TIMKEN EQUITY
COMPENSATION AWARDS 
 Section 10.1 Outstanding Timken Equity Compensation Awards. 

(a) Each Timken Equity Compensation Award that is outstanding as of the Distribution will be adjusted as described below, so that each holder
of a Timken Equity Compensation Award will hold adjusted equity awards comprised of a TimkenSteel Equity Compensation Award and a Bearings Equity Compensation Award unless otherwise provided in this Section 10.1(a); provided,
however, that, effective immediately prior to the Distribution, the Timken Compensation Committee may provide for different adjustments with respect to some or all of a holder’s Timken Equity Compensation Awards. For greater certainty,
any adjustments made by the Timken Compensation Committee will be deemed incorporated by reference herein as if fully set forth below and will be binding on the parties hereto and their respective Subsidiaries. 

  
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 (i) Each Timken Option generally will be adjusted in the manner described below,
effective as of the Distribution Date and immediately prior to the Distribution, so that immediately following the Distribution each Timken Option holder will hold Bearings Options and TimkenSteel Options in lieu of the Timken Options previously
held. The following procedure will generally be applied to each Timken Option with the same grant date and exercise price held by each Timken Option holder as of the Distribution Date: 

(A) The Bearings Option will have an exercise price equal to the applicable Bearings Price. The number of Bearings Options
will equal the number of Timken Options to which they relate. Such Bearings Options will be subject to the same vesting requirements and dates and other terms and conditions as the Timken Options to which they relate. 

(B) The TimkenSteel Option will have an exercise price equal to the applicable TimkenSteel Price. The number of TimkenSteel
Options will equal the number of Timken Options multiplied by the Distribution Ratio, rounded down to the nearest whole option. Such TimkenSteel Options will be subject to the same vesting requirements and dates and other terms and conditions as the
Timken Options to which they relate. 
 (ii) With respect to Timken Restricted Shares, Timken Deferred Shares, and Timken
Performance-Based RSUs and Timken Time-Based RSUs: 
 (A) Each holder of Timken Restricted Shares will generally receive
from TimkenSteel, as of the time of the Distribution Date and immediately prior to the Distribution, TimkenSteel Restricted Shares determined in the same manner as for other shareholders of Timken Common Shares based on the Distribution Ratio, with
the value of any fractional share paid to the holder in cash, less any applicable taxes, as soon as practicable following the Distribution Date (with such cash payment to be made by TimkenSteel to TimkenSteel Employees and Former TimkenSteel
Business Employees on the Distribution Date and by Timken to all other holders), except to the extent that such cash payment would result in adverse Tax consequences to the holder under Code Section 409A. Such TimkenSteel Restricted Shares will
be subject to the same vesting requirements and dates and other terms and conditions as the Timken Restricted Shares to which they relate (including the right to receive dividends or other 

  
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distributions paid on TimkenSteel Common Shares). Each Timken Restricted Share will continue to be one Bearings Restricted Share which will be subject to the same vesting requirements and dates
and other terms and conditions as the Timken Restricted Shares to which it relates. 
 (B) Each holder of Timken Deferred
Shares will generally receive from TimkenSteel, as of the time of the Distribution Date and immediately prior to the Distribution, an award for TimkenSteel Deferred Shares, determined in the same manner as for shareholders of Timken Common Shares
based on the Distribution Ratio, with the value of any fractional share paid to the holder in cash, less any applicable taxes, as soon as practicable following the Distribution Date (with such cash payment to be made by TimkenSteel to TimkenSteel
Employees and Former TimkenSteel Business Employees on the Distribution Date and by Timken to all other holders), except to the extent that such cash payment would result in adverse Tax consequences to the holder under Code Section 409A. All
TimkenSteel Deferred Shares will be subject to the same vesting requirements and dates and other terms and conditions as the Timken Deferred Shares to which they relate (including the right to be credited with dividends or other distributions paid
on TimkenSteel Common Shares). Each Timken Deferred Share will continue to be a Bearings Deferred Share which will be subject to the same vesting requirements and dates and other terms and conditions as the Timken Deferred Share to which it relates.

 (C) Each holder of Timken Time-Based RSUs will generally receive from TimkenSteel, as of the time of the Distribution
Date and immediately prior to the Distribution, TimkenSteel Time-Based RSUs, determined in the same manner as for shareholders of Timken Common Shares based on the Distribution Ratio, with the value of any fractional share paid to the holder in
cash, less any applicable taxes, as soon as practicable following the Distribution Date (with such cash payment to be made by TimkenSteel to TimkenSteel Employees and Former TimkenSteel Business Employees on the Distribution Date and by Timken to
all other holders), except to the extent that such cash payment will result in adverse Tax consequences to the holder under Code Section 409A. All TimkenSteel Time-Based RSUs will be subject to the same vesting requirements and dates and other
terms and conditions as the Timken Time-Based RSUs to which they relate. Each Timken Time-Based RSU will continue to be a Bearings Time-Based RSU which will be subject to the same vesting requirements and dates and other terms and conditions as the
Timken Time-Based RSU to which it relates. 

  
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 (D) The determination of whether any portion of a 2012 Performance-Based RSU
award has been earned will be made based upon the achievement of the applicable management objectives measured as of the Distribution Date. Such determination will be made by the Timken Compensation Committee in accordance with the applicable Timken
LTIP. Notwithstanding any provision of the applicable award agreement, Timken will pay each such award held by a Bearings Employee or a Former Bearings Business Employee, and TimkenSteel will pay each such award held by a TimkenSteel Employee or a
Former TimkenSteel Business Employee, in cash between January 1, 2015 and March 15, 2015 based on the Timken PRSU Price for each Timken Common Share earned with respect to such 2012 Performance-Based RSU. 

(E) The determination of whether any portion of a 2013 Performance-Based RSU award has been earned will be made based upon the
achievement of the applicable management objectives measured as of the Distribution Date, and prorated based on the percentage of the applicable performance period completed as of the Distribution Date. Such determination will be made by the Timken
Compensation Committee in accordance with the applicable Timken LTIP. Notwithstanding any provision of the applicable award agreement, Timken will pay each such award held by a Bearings Employee or a Former Bearings Business Employee, and
TimkenSteel will pay each such award held by a TimkenSteel Employee or a Former TimkenSteel Business Employee, in cash between January 1, 2016 and March 15, 2016 based on the Timken PRSU Price for each Timken Common Share earned with
respect to such 2013 Performance-Based RSU. Timken and TimkenSteel will grant new performance-based restricted stock unit awards to their respective employees for the period from the Distribution Date through December 31, 2015. 

(iii) Each holder of Timken Performance Shares will generally receive from TimkenSteel, as of the time of the Distribution Date
and immediately prior to the Distribution, TimkenSteel Performance Shares determined in the same manner as for other shareholders of Timken Common Shares based on the Distribution Ratio, with the value of any fractional share paid to the holder in
cash, less any applicable taxes, as soon as practicable following the Distribution Date (with such cash payment to be made by TimkenSteel to TimkenSteel Employees and Former TimkenSteel Business Employees on the Distribution Date and by Timken to
all other holders, except to the extent such cash payment will result in adverse tax consequences under Code Section 409A). Such TimkenSteel Performance Shares will be subject to the same vesting requirements and dates and other terms and
conditions as the Timken Performance Shares to which they relate (including the right to receive dividends 

  
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or other distributions paid on TimkenSteel Common Shares). Each Timken Performance Share will continue to be one Bearings Performance Share which will be subject to the same vesting requirements
and dates and other terms and conditions as the Timken Performance Shares to which it relates. 
 (b) In the event a change in control (as
defined in the applicable equity incentive plan or award agreement) occurs with respect to Timken, then (i) any accelerated vesting and/or exercisability applicable to Bearings Equity Compensation Awards held by Bearings Employees and Former
Bearings Business Employees shall apply to the TimkenSteel Equity Compensation Awards then held by such individuals, and (ii) all Bearings Equity Compensation Awards then held by TimkenSteel Employees and Former TimkenSteel Business Employees
shall fully vest (and, to the extent applicable, become exercisable). In the event a change in control (as defined in the applicable equity incentive plan or award agreement) occurs with respect to TimkenSteel, then (i) any accelerated vesting
and/or exercisability applicable to TimkenSteel Equity Compensation Awards held by TimkenSteel Employees and Former TimkenSteel Business Employees shall apply to the Bearings Equity Compensation Awards then held by such individuals, and
(ii) all TimkenSteel Equity Compensation Awards then held by Bearings Employees and Former Bearings Business Employees shall fully vest (and, to the extent applicable, become exercisable). Notwithstanding the foregoing, this
Section 10.1(b) will not apply to the extent that it would cause adverse tax consequences under Code Section 409A. 
 (c)
Prior to the Distribution Date, TimkenSteel will establish equity compensation plans, so that upon the Distribution, TimkenSteel will have in effect an equity compensation plan that allows grants of equity compensation awards subject to
substantially the same terms as those that apply to the corresponding Timken Equity Compensation Awards. From and after the Distribution Date, each TimkenSteel Equity Compensation Award will be subject to the terms of the applicable TimkenSteel
equity compensation plan, the award agreement governing such TimkenSteel Equity Compensation Award and any Employment Agreement to which the applicable holder is a party. From and after the Distribution Date, TimkenSteel will retain, pay, perform,
fulfill and discharge all Liabilities arising out of or relating to the TimkenSteel Equity Compensation Awards. Timken will retain, pay, perform, fulfill and discharge all Liabilities arising out of or relating to the Bearings Equity Compensation
Awards. 
 (d) In all events, the adjustments provided for in this Section 10.1 will be made in a manner that, as determined by
Timken, avoids adverse Tax consequences to holders under Code Section 409A. 
 Section 10.2 Conformity with Non-U.S. Laws.
Notwithstanding anything to the contrary in this Agreement, (i) to the extent any of the provisions in this Article X (or any equity award described herein) do not conform with applicable non-U.S. laws (including provisions for the collection
of withholding taxes), such provisions shall be modified to the extent necessary to conform with such non-U.S. laws in such manner as is equitable and to preserve the intent hereof, as determined by the parties in good faith, and (ii) the
provisions of this Article X may be modified to the extent necessary to avoid undue cost or administrative burden arising out of the application of this Article X to awards subject to non-U.S. laws. 

  
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 Section 10.3 Tax Withholding and Reporting. 

(a) Except as otherwise required by applicable non-U.S. law, the appropriate member of the Bearings Group will be responsible for all payroll
taxes, withholding and reporting with respect to Bearings Equity Compensation Awards and TimkenSteel Equity Compensation Awards held by Bearings Employees and Former Bearings Business Employees. Except as otherwise required by applicable non-U.S.
law, the appropriate member of the TimkenSteel Group will be responsible for all payroll taxes, withholding and reporting with respect to Bearings Equity Compensation Awards and TimkenSteel Equity Compensation Awards held by TimkenSteel Employees
and Former TimkenSteel Business Employees. Timken and TimkenSteel hereby designate the other party as an agent for withholding pursuant to IRS Revenue Procedure 70-6 and to accept such designation to effectuate the intent of this
Section 10.3(a). 
 (b) If Timken or TimkenSteel determines in its reasonable judgment that any action required under this
Article X will not achieve the intended tax, accounting and legal results, including, without limitation, the intended results under Code Section 409A or FASB ASC Topic 718 – Stock Compensation, then at the request of Timken or
TimkenSteel, as applicable, Timken and TimkenSteel will mutually cooperate in taking such actions as are necessary or appropriate to achieve such results, or most nearly achieve such results if the originally-intended results are not fully
attainable. 
  (c) Tax deductions with respect to Bearings Equity Compensation Awards and TimkenSteel Equity Compensation Awards will be
allocated in accordance with the Tax Sharing Agreement, dated                     , 2014, by and between The Timken Company and TimkenSteel
Corporation. 
  Section 10.4 Employment Treatment. 

(a) Continuous employment with the TimkenSteel Group and the Bearings Group following the Distribution Date will be deemed to be continuing
service for purposes of vesting and exercisability for the TimkenSteel Equity Compensation Awards and the Bearings Equity Compensation Awards. However, in the event that a TimkenSteel Employee terminates employment after the Distribution Date and
becomes employed by the Bearings Group, for purposes of Article X, the TimkenSteel Employee will be deemed terminated and the terms and conditions of the applicable performance incentive plan under which grants were made will apply. Similarly, in
the event that a Bearings Employee terminates employment after the Distribution Date and becomes employed by the TimkenSteel Group, for purposes of Article X, the Bearings Employee will be deemed terminated and the terms and conditions of the
performance incentive plan under which grants were made will apply. Notwithstanding the foregoing, for purposes of this Article X only, if an individual is a Delayed Transfer Employee, such individual will not be considered to have terminated on his
or her Applicable Transfer Date. In addition, a non-employee member of the board of directors of Timken or TimkenSteel will be treated in a similar manner to that described in this Section 10.4(a). 

  
 -32- 

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

Section 10.5 Payment of Option Exercise Prices. Upon the exercise of a Bearings Option or a TimkenSteel Option, the exercise price
of such stock option will be remitted in cash by the option administrator to the issuer of the option (the appropriate member of the Bearings Group or the TimkenSteel Group, as applicable) and the applicable withholding taxes will be remitted in
cash by the option administrator to the entity (the appropriate member of the Bearings Group or the TimkenSteel Group, as applicable) responsible for payroll taxes, withholding and reporting with respect to the option pursuant to
Section 10.3. Upon vesting or payment, as applicable, of restricted shares, restricted stock units, performance shares or deferred shares, the applicable withholding will be remitted in cash by the administrator to the entity (the
appropriate member of the Bearings Group or the TimkenSteel Group, as applicable) responsible for payroll taxes, withholding and reporting with respect to such awards pursuant to Section 10.3. To the extent necessary to provide the
withholding amount in cash to the entity responsible for payroll taxes, withholding, and reporting, the issuer of the applicable award will provide the withholding amount in cash. Notwithstanding the foregoing, the method of remittance of the
exercise price of any stock option or any applicable withholding taxes may vary for legal or administrative reasons. 
 Section 10.6
Dividends/Dividend Equivalents. With respect to dividends on TimkenSteel Restricted Shares or dividend equivalents on TimkenSteel Deferred Shares payable by TimkenSteel to a Bearings Employee, TimkenSteel will make such payments to Timken,
and Timken, as an agent for TimkenSteel, will make such payments to such Bearings Employees and will be responsible for payroll taxes, withholding and reporting in accordance with Section 10.3(a). With respect to dividends on Bearings
Restricted Shares or dividend equivalents on Bearings Deferred Shares payable by Timken to a TimkenSteel Employee, Timken will make such payments to TimkenSteel, and TimkenSteel, as an agent for Timken, will make such payments to such TimkenSteel
Employees and will be responsible for payroll taxes, withholding and reporting in accordance with Section 10.3(a). 

Section 10.7 Equity Award Administration. TimkenSteel and Timken agree that Computershare Limited will be the administrator and
recordkeeper for the TimkenSteel and Bearings Equity Compensation Awards outstanding as of the Distribution for the life of the relevant awards, unless the parties mutually agree otherwise. 

  
 -33- 

 Section 10.8 Registration. TimkenSteel will register the TimkenSteel Common Shares
relating to the TimkenSteel Equity Compensation Awards and make any necessary filings with the appropriate Governmental Authorities as required under U.S. and foreign securities Laws. 

ARTICLE XI 
 BENEFIT PLAN
REIMBURSEMENTS, BENEFIT PLAN THIRD- 
 PARTY CLAIMS 

Section 11.1 General Principles. From and after the Distribution Date, any services that a member of the TimkenSteel Group will
provide to the members of the Bearings Group or that a member of the Bearings Group will provide to the members of the TimkenSteel Group relating to any Benefit Plans will be set forth in the Transition Services Agreements (and, to the extent
provided therein, a member of the TimkenSteel Group or the Bearings Group will provide administrative services referred to in this Employee Matters Agreement). 

Section 11.2 Benefit Plan Third-Party Claims. Any Third-Party Claim relating to the matters addressed in this Agreement shall be
governed by the applicable provisions of the Separation Agreement. 
 ARTICLE XII 

INDEMNIFICATION 

Section 12.1 Indemnification. All Liabilities assumed by or allocated to TimkenSteel or the TimkenSteel Group pursuant to this
Employee Matters Agreement will be deemed to be TimkenSteel Liabilities for purposes of Article V of the Separation Agreement, and all Liabilities retained or assumed by or allocated to Timken or the Bearings Group pursuant to this Employee Matters
Agreement will be deemed to be Bearings Liabilities for purposes of Article V of the Separation Agreement. All such TimkenSteel Liabilities and Bearings Liabilities shall be governed by the applicable indemnification terms of the Separation
Agreement. 
 ARTICLE XIII 

COOPERATION 

Section 13.1 Cooperation. Following the date of this Employee Matters Agreement, Timken and TimkenSteel will, and will cause their
respective Subsidiaries, agents and vendors to, use reasonable best efforts to cooperate with respect to any employee compensation, benefits or human resources systems matters that Timken or TimkenSteel, as applicable, reasonably determines require
the cooperation of both Timken and TimkenSteel in order to accomplish the objectives of this Employee Matters Agreement. Without limiting the generality of the preceding sentence, (a) Timken and TimkenSteel will cooperate in coordinating each
of their respective payroll systems in connection with the transfers of Bearings Employees to the Bearings Group and the Distribution, (b) Timken will, and will cause its Subsidiaries to, transfer records to TimkenSteel as reasonably necessary
for the proper administration of the TimkenSteel 

  
 -34- 

 
Benefit Plans, to the extent such records are in Timken’s possession, (c) Timken and TimkenSteel will share, with each other and with their respective agents and vendors (without
obtaining releases), all employee, participant and beneficiary information necessary for the efficient and accurate administration of the Benefit Plans, and (d) Timken and TimkenSteel will share such information as is necessary to administer
equity awards pursuant to Article X, to provide any required information to holders of such equity awards, and to make any governmental filings with respect thereto. 

ARTICLE XIV 

MISCELLANEOUS 

Section 14.1 Vendor Contracts. Prior to the Distribution, Timken and TimkenSteel will use reasonable best efforts to
(a) negotiate with the current Third Party providers to separate and assign the applicable rights and obligations under each group insurance policy, health maintenance organization, administrative services contract, Third Party administrator
agreement, letter of understanding or arrangement that pertains to one or more Bearings Benefit Plans and one or more TimkenSteel Benefit Plans (each, a “Vendor Contract”) to the extent that such rights or obligations pertain to
TimkenSteel Employees and Former TimkenSteel Business Employees and their respective Plan Payees or, in the alternative, to negotiate with the current Third Party providers to provide substantially similar services to the TimkenSteel Benefit Plans
on substantially similar terms under separate contracts with TimkenSteel or the TimkenSteel Benefit Plans and (b) to the extent permitted by the applicable Third Party provider, obtain and maintain pricing discounts or other preferential terms
under the Vendor Contracts. 
 Section 14.2 Further Assurances. Prior to the Distribution, if either party identifies any
commercial or other service that is needed to ensure a smooth and orderly transition of its business in connection with the consummation of the transactions contemplated hereby, and that is not otherwise governed by the provisions of this Employee
Matters Agreement, the parties will cooperate in determining whether there is a mutually acceptable arm’s-length basis on which the other party will provide such service. 

Section 14.3 Employment Taxes Withholding Reporting Responsibility. TimkenSteel and Timken hereby agree to follow the standard
procedure for United States employment Tax withholding as provided in Section 4 of Rev. Proc. 2004-53, I.R.B. 2004-34. Timken will withhold and remit all employment taxes for the last payroll date preceding the Distribution Date with respect to
all current and former employees of Timken and TimkenSteel who receive wages on such payroll date. 
 Section 14.4 Data Privacy.
The parties agree that any applicable data privacy Laws and any other obligations of the TimkenSteel Group and the Bearings Group to maintain the confidentiality of any employee information or information held by any benefit plans in accordance with
applicable Law will govern the disclosure of employee information among the parties under this Employee Matters Agreement. TimkenSteel and Timken will ensure that they each have in place appropriate technical and organizational security measures to
protect the personal data of the TimkenSteel Employees, Former TimkenSteel Business Employees, Bearings Employees and Former Bearings Business Employees. 

  
 -35- 

 Section 14.5 Third Party Beneficiaries. Nothing contained in this Employee Matters
Agreement will be construed to create any third-party beneficiary rights in any Person, including without limitation any TimkenSteel Employee, Bearings Employee, Former Bearings Business Employee, or Former TimkenSteel Business Employee (including
any dependent or beneficiary thereof) nor will this Employee Matters Agreement be deemed to amend any Benefit Plan of Timken, TimkenSteel, or their Affiliates or to prohibit Timken, TimkenSteel or their respective Affiliates from amending or
terminating any Benefit Plan. 
 Section 14.6 Effect if Distribution Does Not Occur. If the Distribution does not occur, then
all actions and events that are, under this Employee Matters Agreement, to be taken or occur effective as of the Distribution, or otherwise in connection with the Distribution will not be taken or occur except to the extent specifically agreed by
the parties. 
 Section 14.7 Incorporation of Separation Agreement Provisions. The following provisions of the Separation
Agreement are hereby incorporated herein by reference, and unless otherwise expressly specified herein, such provisions will apply as if fully set forth herein (references in this Section 14.7 to an “Article” or
“Section” will mean Articles or Sections of the Separation Agreement, and references in the material incorporated herein by reference will be references to the Separation Agreement): Article IV (relating to Further Assurances; Additional
Information); Article V (relating to Release; Indemnification; and Guarantees); Article VI (relating to Exchange of Information; Litigation Management; Confidentiality); Article VII (relating to Dispute Resolution); and Article VIII (relating to
Miscellaneous). 
 Section 14.8 No Representation or Warranty. Each of Timken (on behalf of itself and each other Bearings
Entity) and TimkenSteel (on behalf of itself and each other TimkenSteel Entity) understands and agrees that, except as expressly set forth in this Employee Matters Agreement, the Separation Agreement or in any other Ancillary Agreement, no party
(including its Affiliates) to this Employee Matters Agreement, the Separation Agreement or any other Ancillary Agreement, makes any representation or warranty with respect to any matter in this Employee Matters Agreement, including, without
limitation, any representation or warranty with respect to the legal or Tax status or compliance of any Benefit Plan, compensation arrangement or Employment Agreement, and Timken disclaims any and all liability with respect thereto. Except as
expressly set forth in this Employee Matters Agreement, the Separation Agreement or any other Ancillary Agreement, none of Timken, TimkenSteel or any of their respective Subsidiaries (including their respective Affiliates) makes any representation
or warranty about and will not have any Liability for (i) the accuracy of or omissions from any information, documents or materials made available in connection with entering into this Employee Matters Agreement, the Separation Agreement or any
other Ancillary Agreement or the transactions contemplated hereby or thereby. 

  
 -36- 

 IN WITNESS WHEREOF, the parties have caused this Employee Matters Agreement to be executed on the
date first written above by their respective duly authorized officers. 
  

			
	THE TIMKEN COMPANY
		
	By:	 	 
		 	Name:
		 	Title:
	
	TIMKENSTEEL CORPORATION
		
	By:	 	 
		 	Name:
		 	Title:

 [Signature Page to Employee Matters Agreement] 

  
 -37- 

 Schedule 5.4 

Employment Agreements 
  

	 	1.	Employment Agreement, dated as of March 1, by and between Timken and Terry Fearn 

  

	 	2.	Employment Agreement, dated as of June 1, by and between Timken and Kelly Strunck 

  

	 	3.	Employment Agreement, dated as of March 1, 2012, by and between Timken and Marsha Whalen 

  

	 	4.	Employment Agreement, dated as of May 7, 2012, by and between Timken and Marina Zimmerman 

  

	 	5.	Employment Agreement for Less than full time Exempt Employees, dated as of January 1, 2014, by and between Timken and Lisa Bortz 

 

	 	6.	Employment Agreement for Less than full time Exempt Employees, dated as of January 1, 2014, by and between Timken and Karen Hammond 

 

	 	7.	Employment Agreement for Exempt Employees, dated as of March 1, 2008, by and between Timken and Pamela S. Clawson 

  

	 	8.	Employment Agreement for Exempt Employees, dated as of June 19, 2001, by and between Timken and Mikel W. Smith 

  

	 	9.	Employment Agreement for Non-Exempt Employees, dated as of March 1, 2007, by and between Timken and Paul R. Bracken 

  

	 	10.	Employment Agreement for Non-Exempt Employees, dated as of October 28, 2013, by and between Timken and Essie Dillard 

  

	 	11.	Employment Agreement for Non-Exempt Employees, dated as of October 10, 2011, by and between Timken and Dianne Gary 

  

	 	12.	Employment Agreement for Non-Exempt Employees, dated as of August 1, 2013, by and between Timken and Joe Owens 

  

	 	13.	Employment Agreement for Non-Exempt Employees, dated as of August 1, 2013, by and between Timken and Doug Sikora 

  

	 	14.	Employment Agreement for Non-Exempt Employees, dated as of May 1, 2009, by and between Timken and Daniel L. Smith 

  

	 	15.	Letter regarding Repatriation to Canton, Ohio, USA, dated February 4, 2013, with Kevin Raketich 

  

	 	16.	Letter regarding International Temporary Assignment to Nagoya, Japan, dated May 21, 2012, with Kevin A. Simms 

  

	 	17.	Letter regarding International Temporary Assignment to Nagoya, Japan, dated July 4, 2011, with Robert Perez 

	 	18.	Letter regarding Continuing Tax Preparation Services, date August 8, 2012, with Mark C. Stacey 

  

	 	19.	Employee Death Benefit Agreement, dated as of March 9, 2004, by and between Ward J. Timken, Jr. and Timken 

  

	 	20.	Employee Death Benefit Agreement, dated as of June 18, 1991, by and between Charles H. West and Timken 

  

	 	21.	Severance Agreement between William P. Bryan and Timken 

  

	 	22.	Severance Agreement between Frank A. DiPiero and Timken 

  

	 	23.	Severance Agreement between James M. Gresh and Timken 

  

	 	24.	Severance Agreement between Christopher J. Holding and Timken 

  

	 	25.	Severance Agreement between Robert N. Keeler and Timken 

  

	 	26.	Severance Agreement between Thomas D. Moline and Timken 

  

	 	27.	Severance Agreement between Shawn J. Seanor and Timken 

  

	 	28.	Severance Agreement between Ward J. Timken, Jr. and Timken 

  

	 	29.	Severance Agreement between Donald L. Walker and Timken 

  
 -2- 

 Schedule 6.1(a) 

Split Retiree Welfare Plans 
  

	 	1.	The Timken Company Welfare Benefit Plan for Retirees, subject to the following changes: 

  

	 	a.	The MPB retiree death benefit will not be provided; 

  

	 	b.	The default claims and appeals procedures will be amended to comply with new requirements under the Patient Protection and Affordable Care Act, as amended (“PPACA”); 

 

	 	c.	The list of participating employers will be modified; and 

  

	 	d.	Certain other inapplicable provisions will be deleted from the plan. 

  

	 	2.	The Timken Company Bargaining Unit Welfare Benefit Plan for Retirees, subject to the following changes: 

  

	 	a.	The default claims and appeals procedures will be amended to comply with new requirements under PPACA; and 

  

	 	b.	Certain other inapplicable provisions will be deleted from the plan. 

  
 -3- 

 Schedule 6.1(b) 

Split Welfare Plans 
  

	 	1.	The Timken Company Welfare Benefit Plan for Employees, subject to the following changes: 

  

	 	a.	Medical and dental insurance for certain foreign-based employees will not be provided; 

  

	 	b.	Hourly Supplemental Unemployment Income benefits will not be provided; 

  

	 	c.	The list of participating employers will be modified; 

  

	 	d.	The default claims and appeals procedures will be amended to comply with new requirements under PPACA; and 

  

	 	e.	Certain other inapplicable provisions will be deleted from the plan. 

  

	 	2.	The Timken Company Bargaining Unit Welfare Benefit Plan for Employees, subject to the following changes: 

  

	 	a.	Group AD&D insurance will not be provided; 

  

	 	b.	Dependent life insurance will not be provided; 

  

	 	c.	The default claims and appeals procedures will be amended to comply with new requirements under PPACA; and 

  

	 	d.	Certain other inapplicable provisions will be deleted from the plan. 

  

	 	3.	The Timken Company Flexible Benefits Program for Salaried and Certain Hourly Employees, subject to the following changes: 

  

	 	a.	The list of participating employers will be modified; and 

  

	 	b.	Certain other inapplicable provisions will be deleted from the plan. 

  

	 	4.	The Timken Company Flexible Benefits Program for Certain Bargaining Unit Employees, subject to the following changes: 

  

	 	a.	The list of participating employers will be modified; and 

  

	 	b.	Certain other inapplicable provisions will be deleted from the plan. 

  

	 	5.	Supplemental Unemployment Benefit Plan for Employees Represented by the United Steelworkers Union (the “SUB Plan”), subject to the following changes: 

 

	 	a.	The maximum benefit limits will be modified. 

  
 -4- 

 Schedule 7.1(a) 

Split DB Plans 
  

	 	1.	The Timken-Latrobe-MPB-Torrington Retirement Plan 

  

	 	2.	The Timken Company Pension Plan 

  
 -5- 

 Schedule 8.1(a) 

Split DC Plans 
  

	 	1.	The Timken Company Savings and Investment Pension Plan 

  

	 	2.	The Timken Company Voluntary Investment Pension Plan 

  

	 	3.	The Timken Company Savings Plan for Certain Bargaining Associates 

  
 -6- 

 Schedule 8.3 

Assumed DC Plans 
  

	 	1.	Timken Latrobe Steel Voluntary Investment Program 

  

	 	2.	The OH&R Investment Plan 

  
 -7- 

 Schedule 9.1(a) 

Split Nonqualified Plans 
  

	 	1.	The Timken Company 1996 Deferred Compensation Plan for officers and other key employees 

  

	 	2.	Amended and Restated Supplemental Pension Plan of the Timken Company 

  
 -8- 

 Schedule 9.1(c) 

TimkenSteel Excess Benefit Agreements 
  

	 	1.	Amended and Restated Employee Excess Benefits Agreement, dated as of December 17, 2008, by and between Ward J. Timken, Jr. and Timken 

 

	 	2.	Amended and Restated Employee Excess Benefits Agreement, dated as of December 4, 2008, by and between Donald L. Walker and Timken, as amended by Amendment No. 1 to the Employee Excess Benefits Agreement, dated
as of August 14, 2009, by and between Donald L. Walker and Timken 

  

	 	3.	Amended and Restated Employee Excess Benefits Agreement, dated as of December 3, 2008, by and between Salvatore J. Miraglia Jr. and Timken, as amended by an Amendment to the Employee Excess Benefits Agreement,
dated as of December 21, 2011, by and between Salvatore J. Miraglia Jr. and Timken, and as further amended by an Amendment to the Employee Excess Benefits Agreement, dated as of April 5, 2012, by and between Salvatore J. Miraglia Jr. and
Timken 

  

	 	4.	Employee Excess Benefits Agreement, dated as of August 13, 1987, by and between C. H. West and Timken 

  

	 	5.	Employee Excess Benefits Agreement, dated as of January 1, 1990, by and between B. J. Bowling and Timken 

  

	 	6.	Employee Excess Benefits Agreement, dated as of August 6, 1991, by and between C. Philip Weigel and Latrobe Steel Company 

  
 -9-

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