Document:

Engagement Letter

 Exhibit 10.2 

 

			
	
 

 4510 E. Thousand Oaks Blvd

Westlake Village, CA 91362
	  	

 August 16, 2010 

Microvision, Inc. 
 6222 185th Avenue NE

 Redmond, Washington 98052 
  

	Re:	Engagement of Reedland Capital Partners, an Institutional Division of Financial West Group as Placement Agent for Microvision, Inc. 

Gentlemen: 
 This letter (this “Engagement
Letter”) will confirm our agreement with Microvision, Inc. (the “Company”) with respect to the engagement of Reedland Capital Partners, an Institutional Division of Financial West Group (“FWG/Reedland”) as the Company’s
placement agent, solely in connection with the placement of the Company’s common stock to Azimuth Opportunity, Ltd. (collectively with its affiliated funds, the “Investor”), as more fully described herein. FWG/Reedland hereby agrees,
on a best efforts basis and subject to the satisfactory completion of our continuing due diligence, to place up to Sixty Million Dollars ($60,000,000) of the Company’s authorized but unissued common stock (the “Common Stock” or
“Common Shares”) with the Investor, as more particularly set forth below and subject to the terms and conditions of this Engagement Letter. 

The Common Stock will be offered and sold on such terms as the Company and the Investor may agree upon in that certain “Common Stock Purchase
Agreement”, dated August 16, 2010, by and between the Company and the Investor (the “Purchase Agreement”) and the offering and sale of such Common Stock shall be made in reliance upon the provisions of Section 4(2) of the
Securities Act of 1933 (the “Securities Act”) and Regulation D promulgated pursuant to the Securities Act, as amended (“Regulation D”). FWG/Reedland will use no offering materials other than the Company’s publicly filed
reports and such other materials, including the Purchase Agreement and a registration rights agreement, as the Company will have approved prior to their use. The parties hereto agree that the Common Shares will be offered and sold by the Company in
compliance with all applicable federal and state securities laws and regulations, including but not limited to Regulation D. The Investor shall certify to the Company in writing in the Purchase Agreement that it is an “accredited investor”
as that term is defined by Rule 501(c) of Regulation D. The placement of the Common Stock by FWG/Reedland to the Investor as contemplated hereby may be referred to herein as the “Offering”. 

30 Sunnyside Avenue | Mill Valley | CA 94941 | (415) 383-4700 | Fax (415) 383-4799 

 The term of FWG/Reedland’s engagement (the “Engagement Period”) as placement agent for the
offer and sale of the Common Stock to the Investor will commence on the date of actual receipt by FWG/Reedland of an executed copy of this Engagement Letter from the Company and, unless extended pursuant to the further written agreement of the
parties, will expire upon the earlier of (i) September 1, 2012, (ii) the date that all the shares of Common Stock under the Purchase Agreement have been issued and sold, (iii) the date that the Investor has purchased an aggregate
of $60,000,000 of shares of Common Stock, or that number of shares which is one share less than twenty percent (20.0%) of the total issued and outstanding shares of Common Stock as of the effective date of the Purchase Agreement, whichever
occurs first, pursuant to the Purchase Agreement, (iv) the date that the Offering is terminated by the Company or the Investor or (v) the date that FWG/Reedland breaches any representation or covenant in this Engagement Letter. To the
extent the Company so requests, FWG/Reedland will assist with each settlement of the purchase of the Common Stock pursuant to the Offering (each, a “Closing”). There may be multiple Closings of the Offering during the Engagement Period.

 Upon the date of each Closing of the purchase of the Common Shares, the Company hereby agrees to pay FWG/Reedland a cash commission equal to
one percent (1.00%) of the aggregate dollar amount paid to the Company for the Common Shares purchased by the Investor in connection therewith. Such cash commission(s) shall be payable to FWG/Reedland at the direction of the Company via wire
transfer in accordance with the wiring instructions annexed hereto as Exhibit B. 
 This Engagement Letter is for the confidential use of the
Company and FWG/Reedland only, and may not be disclosed by the Company or by FWG/Reedland (in whole or in part) for any reason to any person other than their respective Board of Directors, executive management or its attorneys, accountants or
financial advisors, and then only on a confidential basis in connection with the proposed Offering, except where disclosure is required by applicable law, stock exchange rule or regulation, or is previously agreed to in writing to by the Company and
FWG/Reedland. The parties hereto acknowledge and agree that, notwithstanding the preceding sentence, (i) the arrangement contemplated hereby will be disclosed by the Company in its SEC filings and this Engagement Letter may be filed with the
SEC and (ii) the arrangement contemplated hereby may also be disclosed by the Company in its reports filed pursuant to the Securities Exchange Act of 1934, as amended. 

The terms of this Engagement Letter will be governed by and interpreted in accordance with the laws of the State of California, and any disputes arising
hereunder shall be exclusively and finally settled by an arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules in San Francisco, California. The arbitration shall be conducted by a
single arbitrator mutually agreed upon by the parties. The determination, finding, judgment, and/or award made by the arbitrator shall be made in writing, shall state the basis for such determination, shall be signed by the arbitrator and shall be
final and binding on all parties, and there shall be no appeal or reexamination thereof, except for fraud, perjury, evident partiality, or misconduct by an arbitrator prejudicing the rights of any party and to correct manifest clerical errors. The
arbitrator shall award to the prevailing party, if any, as determined by the arbitrator, its reasonable attorneys’ fees and costs. 

 During the Engagement Period and for 60 days thereafter, the Company agrees that any reference to
FWG/Reedland in any press release or other communications issued by the Company to the public relating to the Offering will refer to FWG/Reedland as “Reedland Capital Partners, an Institutional Division of Financial West Group”.
Additionally, the Company acknowledges that FWG/Reedland may at its option and expense (and only after the first public disclosure or announcement of the Offering by the Company) place announcements and advertisements or otherwise publicize
FWG/Reedland’s role in facilitating the Offering (which may include the reproduction of the Company’s logo), stating that FWG/Reedland acted as placement agent in connection with such transaction; provided, however, that FWG/Reedland shall
first submit a copy of any such announcement or advertisement to the Company for its approval, which approval shall not be unreasonably withheld. 

The Company hereby agrees that: (1) within three (3) days of each date that the Company provides the Investor with a “Fixed Notice
Request” (as defined in the Purchase Agreement) it will provide FWG/Reedland with a copy of such Fixed Notice Request by facsimile to (415) 383-4799 (Attn: Jason Cohen), and (2) it will comply with all applicable federal and state
securities laws and regulations with respect to the Offering. 
 FWG/Reedland hereby agrees and represents that: (1) FWG/Reedland is an
institutional division of Financial West Group (member FINRA/SIPC), which is a broker/dealer registered by FINRA in accordance with all applicable laws and regulations in each jurisdiction in which FWG/Reedland intends to use its best efforts to
place the Offering, including, without limitation, in the State of Washington and payment of the commission contemplated under this agreement will not jeopardize the Company’s compliance with Regulation D and applicable federal and state
securities laws; (2) FWG/Reedland will not make any representations to the Investor about the Company other than information included in the Company’s public filings or otherwise conveyed to FWG/Reedland by the Company in writing;
(3) FWG/Reedland will not do any advertising or make any general solicitation on behalf of the Company in connection with the Offering; (4) FWG/Reedland will comply with all applicable federal and state securities laws and regulations with
respect to the Offering; (5) FWG/Reedland is not affiliated with the Investor or the Company; and (6) FWG/Reedland agrees to keep confidential any nonpublic material information about the Company conveyed to FWG/Reedland by the Company. In
further consideration of FWG/Reedland’s placement of the Common Shares, the Company and FWG/Reedland agree to be fully bound by all of the indemnification provisions set forth on Exhibit A, a copy of which is attached hereto and is fully
incorporated herein by this reference. 
 The parties acknowledge and agree that nothing contained herein shall modify or affect the rights or
obligations of the Company and the Investor under the Purchase Agreement. 
 [THIS SPACE INTENTIONALLY LEFT BLANK] 

 If the foregoing is acceptable, please sign and return to us a copy of this Engagement Letter, which will
represent the entire agreement between the Company and FWG/Reedland with respect to the matters addressed herein and will supersede all previous oral or written agreements or understandings of any nature whatsoever between the parties. We look
forward to working with you. 
  

									
	Sincerely,	 		 	
			
	Reedland Capital Partners	 		 	Microvision, Inc.
					
	By:	 	/s/ Robert Schacter	 		 	By:	 	/s/ Jeff T. Wilson
		 	Robert Schacter	 		 	Name:	 	Jeff T. Wilson
		 		 	Title:	 	Chief Financial Officer
				
	Agreed & Accepted:	 		 		 	
				
	 Financial West Group
  
	 		 		 	
	By:	 	/s/ Thomas B. Krueger 	 		 		 	
	Name:	 	Thomas B. Krueger	 		 		 	
	Title:	 	 Chief Compliance Officer
  
	 		 		 	

 Exhibit A to Engagement Letter 

Company Indemnification Provisions 

Microvision, Inc. (the “Company”) agrees to indemnify and hold harmless Reedland Capital Partners, an Institutional Division of Financial West
Group (“FWG/Reedland”), and its directors, officers, and each person, if any, who controls FWG/Reedland within the meaning of Section 15 of the Securities Act of 1933, as amended, or Section 20(a) of the Securities Exchange Act
of 1934, as amended (collectively, the “Indemnitees” and each individually an “Indemnitee”), to the fullest extent permitted by applicable law, from and against any and all claims, demands, causes of action, obligations, losses,
damages, liabilities, costs or expenses arising in law, equity or otherwise, of any nature whatsoever, including without limitation, any and all reasonable legal, accounting and other professional fees and related costs and disbursements and other
costs, expenses, or disbursements relating thereto (collectively, the “Liabilities”), directly or indirectly, based upon or arising out of, or in connection with: 

 

	 	(a)	Any act or omission of the Company (or any affiliate thereof) in connection with the Engagement Letter between FWG/Reedland and the Company to which this Exhibit A is
an integral part (the “Engagement Letter”) or the transactions contemplated thereby, including, without limitation, any violation of applicable laws or regulations by the Company (or any affiliate thereof); or 

 

	 	(b)	any untrue or alleged untrue statement of a material fact contained in any document or other information of any nature whatsoever (oral or written) furnished by the
Company (or any affiliate thereof) to Azimuth Opportunity, Ltd. (collectively with its affiliated funds, the “Investor”) in connection with the Offering; or 

 

	 	(c)	any omission to state a material fact necessary to make any of the documents or other information of any nature whatsoever (oral or written) furnished by the Company
(or any affiliate thereof), to the Investor, pursuant to any offering materials, not misleading; or 

  

	 	(d)	any breach by the Company (or any affiliate thereof) of any of the terms of the Engagement Letter between FWG/Reedland and the Company, or any purchase and sale
agreement, registration rights agreement, or other agreement between the Company and the Investor, or the terms of the securities purchased or issuable pursuant thereto. 

The Company may, at its own expense, seek reimbursement of amounts already paid to such Indemnitee once and to the extent the relevant Liabilities are
determined in a final judgment by court of competent jurisdiction (not subject to further appeal) to have resulted primarily and proximately from any Indemnitee’s gross negligence or willful misconduct. These indemnification provisions are in
addition to any liability that the Company may otherwise have to any Indemnitee or the Investor. 

 The Company further agrees that no Indemnitee will have any liability for any Liabilities (whether direct
or indirect, in contract or tort or otherwise) to the Company (or any affiliate thereof), or to any person (including, without limitation, Company shareholders) claiming through the Company (or any affiliate thereof) in connection with the
engagement of FWG/Reedland or for or in connection with the acts or omissions of any such Indemnitee or any other Indemnitee, except to the extent that any such Liabilities are found in final judgement by a court of competent jurisdiction (not
subject to further appeal) to have resulted primarily and proximately from the gross negligence or willful misconduct (including a breach of any of the Reedland Covenants) of the Indemnitee seeking indemnification. 

In order to provide for just and equitable contribution, if a claim for indemnification pursuant to these indemnification provisions is made but it is
found in final judgement by a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, then the Company, on the one hand, and the claiming Indemnitees on the other hand, will
contribute to the losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements (collectively, the “Losses”) to which such Indemnitees may be subject. Said contribution will be made in
accordance with all relative benefits received by, and the fault of, the Company on the one hand, and such Indemnitees on the other hand, in connection with the statements, acts or omissions which resulted in such Losses, together with the relevant
equitable considerations and will be determined pursuant to the arbitration provisions set forth in the Engagement Letter. No person found liable for fraudulent misrepresentation will be entitled to contribution from any person who is not also found
liable for such fraudulent misrepresentation. Notwithstanding any of the foregoing, the Indemnitees will not be obligated to contribute in the aggregate for all of the Losses in any amount that exceeds the aggregate amount of fees actually received
by FWG/Reedland pursuant to the Engagement Letter. 
 If any action, suit, proceeding, or investigation commenced which gives rise to a claim
for indemnification and which, in any Indemnitee’s reasonable judgement, gives rise to a conflict of interest between the Company and the Indemnitees, then the Company will be entitled to participate in the defense of any claim, action, suit or
proceeding as to which indemnification is being sought, and the Company may (but will not be required to) assume the defense against the claim, action, suit or proceeding with counsel satisfactory to it. After the Company notifies the Indemnitee
that the Company wishes to assume the defense of a claim, action, suit or proceeding, the Company will not be liable for any further legal or other expenses incurred by the Indemnitee in connection with the defense against the claim, action, suit or
proceeding, provided, however, the Indemnitees will have the right to retain legal counsel of their own choice to represent and advise them, and the Company will pay the reasonable fees, expenses and disbursements of one (1) law firm for all
Indemnitees incurred from time to time in the manner set forth above. Such law firm will, to the extent consistent with their professional responsibilities, cooperate with the Company and any counsel designated by the Company. Neither the Company
nor any affiliate thereof will, without the prior written consent of the Indemnitee seeking indemnification, settle or compromise any actual, potential or threatened claim for which indemnification is sought hereunder, or permit a default or consent
to the entry of any judgement in respect thereof, unless 

 
such settlement, compromise or consent includes, as an unconditional term thereof, the giving by the claimant to the Indemnitees of an unconditional release from all liability in respect of such
claim. 
 Neither termination nor completion of the engagement of FWG/Reedland pursuant to the Engagement Letter will affect these
indemnification provisions, which will survive any such termination or completion and remain operative and in full force and effect. If any term, provision, covenant or restriction contained in the Engagement Letter or this Exhibit A is held by a
court of competent jurisdiction or other authority to be invalid, void, unenforceable or against its regulatory policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall remain in full force and effect and
shall in no way be affected, impaired or invalidated. 

 Exhibit B to Engagement Letter 

FWG/Reedland Wiring Instructions 

(Financial West Group)Form of Restructuring Transaction Retention Agreement

 Exhibit 10.1 

CHANGE IN CONTROL AGREEMENT 

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

	1.	DEFINITIONS: Capitalized terms are defined in Exhibit A. 

 

	2.	SEVERANCE BENEFITS: If Executive experiences a Covered Termination he will be entitled to the following
benefits; provided that the benefits described in Sections 2(b), (c), (d), (e) and (f) shall only be payable if the Executive executes a waiver and release prepared by the Employer that is no longer subject to rescission within 60 days of
the Covered Termination Date which releases the Company and its affiliates, directors, officers and other customary persons from any claim or liability arising out of or related to Executive’s employment with or termination of employment from
the Company, the Employer or any of their affiliates (except for amounts to which Executive is legally entitled pursuant to employee benefit plans, Executive’s right to enforce this Agreement and rights to insurance coverage or
indemnification). 

  

	 	(a)	Accrued Benefits. The Accrued Benefits, payable within sixty (60) days after the Covered Termination Date, or such earlier time as may be required by
applicable law. 

  

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

  

	 	(c)	 Unvested Equity Awards. As of the Covered Termination Date, unless otherwise settled in accordance with the provisions of Section 4
of this Agreement and the plans and agreements referred to therein, a fully vested and non-forfeitable interest in any outstanding unvested equity awards, and to the extent applicable, payable within the
60th day after the Covered Termination Date; provided that
no such award that is subject to Code Section 409A will be paid on a date earlier than is provided in the applicable equity award agreement; provided further that that any performance shares shall be paid out at the target rate, prorated on the
basis of the number of days of the Executive’s participation during the applicable performance period to which the performance shares related divided by the 

 

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aggregate number of days in such performance period, taking into account service rendered through the payment date. 

 

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

 

	 	(e)	Severance Payment Based on Bonus. 

  

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

  

	 	(2)	Prior Performance Year. If a bonus for the prior calendar year has not been paid under EICP as of the Executive’s Covered Termination Date, then
Executive will be entitled to the actual amount of the bonus determined under the EICP for such prior calendar year (such amount to be determined without the exercise of any downward discretion), in a lump sum in cash at the same time such bonus is
paid to other EICP participants. 

  

	 	(f)	Health Care Benefits. An amount equal to three (3) times the full annual cost of coverage for medical, dental and vision benefits under the
Company’s Health Care Plan and Vision Insurance Plan provided to Executive and his covered dependents for the year in which Executive’s Covered Termination Date occurs, in a lump sum in cash within sixty (60) days after the Covered
Termination Date. 

 In no event shall the benefits provided for in Sections 2(a), (d), (e) and (f) above
or any payment provided for in (c) above that is not subject to Code Section 409A be paid later than March 15th of the calendar year immediately following the calendar year in which the Executive’s Covered Termination Date
occurs. 
  

	3.	
LIMITATION ON PAYMENTS AND BENEFITS: Notwithstanding any provision of this
Agreement to the contrary, if any amount or benefit to be paid or provided under this Agreement would be an “Excess Parachute Payment,” within the meaning of Section 280G of the Code, or any successor provision thereto, but for the
application of this sentence, then the payments and benefits identified in the last sentence of this Section 3 to be paid or provided under this Agreement will be reduced to the minimum extent necessary (but in no event to less than zero) so
that no portion of any such payment or benefit, as so reduced, constitutes an Excess Parachute Payment; provided, however, that no such reduction shall be made if it is not thereby possible to eliminate all Excess Parachute Payments under this
Agreement; provided, however, that the foregoing reduction will be made only if and to the extent that such reduction would result in an 

 

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increase in the aggregate payment and benefits to be provided, determined on an after-tax basis (taking into account the excise tax imposed pursuant to Section 4999 of the Code, or any
successor provision thereto, any tax imposed by any comparable provision of state law, and any applicable federal, state and local income and employment taxes). Whether requested by Executive, the Employer or the Company, the determination of
whether any reduction in such payments or benefits to be provided under this Agreement or otherwise is required pursuant to the preceding sentence will be made at the expense of the Company by the Company’s independent accountants. The fact
that Executive’s right to payments or benefits may be reduced by reason of the limitations contained in this Section 3 will not of itself limit or otherwise affect any other rights of the Executive other than pursuant to this Agreement. In
the event that any payment or benefit intended to be provided under this Agreement or otherwise is required to be reduced pursuant to this Section 3, the Company will reduce the Executive’s payment and/or benefits, to the extent required,
in the following order: (i) the lump sum payment provided under Section 2(d); (ii) the lump sum payment provided under Section 2(e)(1); (iii) the lump sum payment related to Health Care Benefits provided under
Section 2(f); and (iv) the accelerated vesting of equity-based awards described in Section 2(c). 

  

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

  

	5.	INTERNAL REVENUE CODE 409A: 

 

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

 

	 	(b)	 Waiting Period for Specified Employees. Notwithstanding any provision of this Agreement to the contrary, if Executive is a
“Specified Employee” (as that term is defined in Code Section 409A) as of Executive’s Covered Termination Date, then any amounts or benefits which are payable under this Agreement upon

  

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Executive’s “Separation from Service” (within the meaning of Code Section 409A), which are subject to the provisions of Code Section 409A and not otherwise excluded under
Code Section 409A, and would otherwise be payable during the first six-month period following such Separation from Service, shall be paid on the first business day that (i) is at least six months after the date after Executive’s
Covered Termination Date or (ii) follows Executive’s date of death, if earlier (the “Waiting Period”). The benefits in Sections 2(a), (d), (e) and (f) and certain of the benefits in Section 2(c) are excluded from
Code Section 409A under the “short-term deferral exclusion” and thus the Waiting Period does not apply such benefits. 

  

	6.	CONFIDENTIALITY AND NON-DISCLOSURE: Executive acknowledges that pursuant to this
Agreement, the Company and the Employer agree to provide to him Confidential Information and has previously provided him other such Confidential Information. In return for this and other consideration, provided under this Agreement, Executive agrees
that he will not, while employed by the Company, Employer or any Affiliate and thereafter, disclose or make available to any other person or entity, or use for his own personal gain, any Confidential Information, except for such disclosures as
required in the performance of his duties hereunder as may otherwise be required by law or legal process (in which case Executive shall notify the Company of such legal or judicial proceeding as soon as practicable following his receipt of notice of
such a proceeding, and permit the Company to seek to protect its interests and information). 

  

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

  

	8.	NON-SOLICITATION AND NON-COMPETITION: 

 

	 	(a)	For consideration provided under this Agreement, including, but not limited to the Company’s and the Employer’s agreement to provide Executive with
Confidential Information regarding the Company and the Employer and their respective businesses, Executive agrees that while employed by the Employer or an Affiliate and for twenty-four (24) months following a Covered Termination he shall not,
without the prior written consent of the Company and the Employer, directly or indirectly, (i) hire or induce, entice or solicit (or attempt to induce, entice or solicit) any employee of the Company or any of its Affiliates or ventures to leave
the employment of the Company or any of its Affiliates or ventures or (ii) solicit or attempt to solicit the business of any customer or acquisition prospect of the Company or any of its Affiliates or ventures with whom Executive had any actual
contact while employed by the Employer or an Affiliate. 

  

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	 	(b)	Additionally, for consideration provided under this Agreement, including, but not limited to the Company’s and the Employer’s agreement to provide Executive
with Confidential Information regarding the Company and the Employer and their respective businesses, Executive agrees that while employed by the Employer or an Affiliate and for twenty-four (24) following a Covered Termination he will not,
without the prior written consent of the Company and the Employer, acting alone or in conjunction with others, either directly or indirectly, engage in any business that is in competition with the Company, the Employer or an Affiliate or accept
employment with or render services at a comparable level of responsibility to such a business as an officer, agent, employee, independent contractor or consultant, or otherwise engage in activities that are in competition with the Company, the
Employer or an Affiliate. 

  

	 	(c)	The restrictions contained in this Section 8 are limited to a 50-mile radius around any geographical area in which the Company, the Employer or an Affiliate
engages (or has definite plans to engage) in operations or the marketing of its products or services at the time of a Covered Termination. 

  

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

  

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

 

			
	 If to Company or the Employer:
	  	The Babcock & Wilcox Company
		  	13024 Ballantyne Corporate Place
		  	Suite 700
		  	Charlotte, NC 28277
		  	ATTENTION: Vice President, HR

  

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	If to Executive:	  		  	  

		  		  	  

		  		  	  

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

 

	10.	APPLICABLE LAW: The validity, interpretation, construction and performance of this Agreement will be governed
by and construed in accordance with the substantive laws of the State of Delaware, but without giving effect to the principles of conflict of laws of such State. 

 

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

 

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

  

	13.	NO ASSIGNMENT; SUCCESSORS: Executive’s right to receive payments or benefits under this
Agreement will not be assignable or transferable, whether by pledge, creation of a security interest or otherwise, whether voluntary, involuntary, by operation of law or otherwise, other than a transfer by will or by the laws of descent or
distribution, and in the event of any attempted assignment or transfer contrary to this Section 13 the Company or Employer will have no liability to pay any amount so attempted to be assigned or transferred. This Agreement inures to the benefit
of and is enforceable by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

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

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

  

	15.	 CONFLICTS: This Agreement constitutes the entire understanding of the parties with respect to its subject
matter and supersedes any other agreement or other understanding, whether oral or written, express or implied, between them concerning, related to or otherwise in connection with, the subject matter hereof [as applicable: ; provided that: if
Executive is entitled to payments and benefits under both Section 2 of this Agreement and the Restructuring Transaction Retention Agreement between McDermott International, Inc. and Executive, dated as of December 10, 2009 (as assumed by
the Company, the “Retention Agreement”), this Agreement shall supersede the Retention Agreement. Additionally, Paragraph X of the Retention Agreement is hereby amended to

  

 6 

	 	 
eliminate the preservation of and reference to benefits under Section I(f) of the “Change in Control Agreement” defined in the Retention Agreement]. 

 

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

  

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

  

	18.	TERM: The effective date of this Agreement shall commence on
                     (“Effective Date”) and shall end on the earlier of (a) the date one year after a Change in Control occurs,
or (b) the date on which Executive’s employment is terminated under circumstances that do not constitute a Covered Termination; provided that terms of this Agreement which must survive the termination this Agreement in order to be
effectuated (including the provisions of Sections 6, 7 and 8) will survive. 

  

 7 

			
	THE BABCOCK & WILCOX COMPANY
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		
	Date:	 	  

	
	BABCOCK & WILCOX INVESTMENT COMPANY
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		
	Date:	 	  

	
	EXECUTIVE
		
	By:	 	  

	Name:	 	  

		
	Date:	 	  

  

 8 

 EXHIBIT A 

DEFINITIONS 

The following terms have the meanings set forth below. 

“Accrued Benefits” shall mean: 
  

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

 

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

  

	 	iii	Any earned vacation pay not theretofore used or paid in accordance with the Company’s policy for payment of earned and unused vacation time; and

  

	 	iv	All other payments and benefits to which Executive may be entitled under the terms of any applicable compensation arrangement or benefit plan or program of the Company
that do not specify the time of distribution; provided that Accrued Benefits shall not include any entitlement to severance under any severance policy of the Company generally applicable to the salaried employees of the Company.

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

“Cause” means 
  

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

  

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

 

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

 

 - 9 - 

 The cessation of employment of Executive under subparagraph (i) and (ii) above
shall not be deemed to be for “Cause” unless and until there shall have been delivered to Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the
Compensation Committee of the Board of Directors of the Company at a meeting of such Committee called and held for such purpose (after reasonable notice is provided to Executive and he is given an opportunity, together with his counsel, to be heard
before such Committee), finding that, in the good faith opinion of such Committee, Executive is guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the particulars thereof in detail. 

A “Change in Control” will be deemed to have occurred upon the occurrence of any of the following: 

 

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

  

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

  

	 	(c)	 Major Mergers and Acquisitions: Consummation of a Business Combination unless, immediately following such Business Combination,
(i) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Voting Stock immediately before such Business Combination beneficially own, directly or indirectly, more than 51% of the then
outstanding shares of voting stock of the parent corporation resulting from such Business Combination in substantially the same relative proportions as their ownership, immediately before such Business Combination, of the Outstanding Voting Stock,
(ii) if the Business Combination involves the issuance or payment by the Company of consideration to another entity or its shareholders, the total fair market value of such consideration plus the principal amount of the consolidated long-term
debt of the entity or business being acquired (in each case, determined as of the date of consummation of such Business Combination by a majority of the Incumbent Directors) does not exceed 50% of the sum of the fair market value of the Outstanding
Voting Stock plus the principal amount of the Company’s consolidated long-term debt (in each case, determined immediately before such consummation by a majority of the Incumbent Directors), (iii) no Person (other than any corporation
resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of the then outstanding shares of voting 

 

 - 10 - 

	 	 
stock of the parent corporation resulting from such Business Combination and (iv) a majority of the members of the board of directors of the parent corporation resulting from such Business
Combination were Incumbent Directors of the Company immediately before consummation of such Business Combination; or 

  

	 	(d)	Major Asset Dispositions: Consummation of a Major Asset Disposition unless, immediately following such Major Asset Disposition, (i) individuals and
entities that were beneficial owners of the Outstanding Voting Stock immediately before such Major Asset Disposition beneficially own, directly or indirectly, more than 70% of the then outstanding shares of voting stock of the Company (if it
continues to exist) and of the entity that acquires the largest portion of such assets (or the entity, if any, that owns a majority of the outstanding voting stock of such acquiring entity) and (ii) a majority of the members of the Board (if it
continues to exist) and of the entity that acquires the largest portion of such assets (or the entity, if any, that owns a majority of the outstanding voting stock of such acquiring entity) were Incumbent Directors of the Company immediately before
consummation of such Major Asset Disposition. 

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

 

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

  

	 	(2)	“group” is used as it is defined for purposes of Section 13(d)(3) of the Exchange Act; 

 

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

 

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

 

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

  

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

 

 - 11 - 

	 	(7)	“Business Combination” means 

  

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

  

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

 

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

 

	 	(9)	“Major Asset Disposition” means the sale or other disposition in one transaction or a series of related transactions of 70% or more of the assets of
the Company and its subsidiaries on a consolidated basis; and any specified percentage or portion of the assets of the Company will be based on fair market value, as determined by a majority of the Incumbent Directors. 

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

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

“Covered Termination” means a termination of Executive’s employment (such that Executive ceases to be employed by
the Employer, the Company or an Affiliate) that is a “Separation from Service” (as defined in Code Section 409A and the Treasury regulations and guidance issued thereunder) within the 1-year period following a Change in Control during
the term of this Agreement due to: 
  

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

 

	 	(1)	death; 

  

 - 12 - 

	 	(2)	Disability; or 

  

	 	(3)	termination for Cause; or 

  

	 	(b)	a termination by Executive for Good Reason. 

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

“EICP” means The Babcock & Wilcox Company Executive Incentive Compensation Plan, or any successor plan thereto.

 “Employer” means Babcock & Wilcox Investment Company, and any successor thereto. 

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

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

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

 

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

  

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

  

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

  

 - 13 - 

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

  

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

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

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

 

 - 14 -

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