Document:

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	  	 15

				
	 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

  
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	 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	  	24
				
	 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	  	26
				
	 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

  
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	 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	  	

  

  
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 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). 

  
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 “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. 

  
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 “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). 

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

“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. 

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

“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. 

  
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 “Retained Severance Benefits” has the meaning set forth in Section 6.1(b).

 “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. 

  
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 “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

  
 -7- 

 
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. 

“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). 

  
 -8- 

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

  
 -9- 

 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: 
  

	 	•	 	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)

  
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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. 

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. 

  
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 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. 

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. 

  
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 (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 

  
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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 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 

  
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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, 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. 

  
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 (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

  
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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

  
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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. 

  
 -22- 

 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

  
 -23- 

 
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. 
 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 

  
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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 

  
 -25- 

 
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. 
 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 

  
 -26- 

 
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

  
 -27- 

 
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. 
 (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 

  
 -28- 

 
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

  
 -30- 

 
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).

  
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 (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-EX-10.3

 Exhibit 10.3 
  

 
 TRANSITION SERVICES AGREEMENT 

BETWEEN 
 THE TIMKEN COMPANY 

AND 
 TIMKENSTEEL CORPORATION 

Dated             , 2014 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
		
	 ARTICLE I         DEFINITIONS
	  	 	1	  
			
	 Section 1.1
	 	Definitions	  	 	1	  
		
	 ARTICLE II         PERFORMANCE AND SERVICES
	  	 	3	  
			
	 Section 2.1
	 	General	  	 	3	  
			
	 Section 2.2
	 	Additional Services	  	 	4	  
			
	 Section 2.3
	 	Service Requests	  	 	4	  
			
	 Section 2.4
	 	Access	  	 	5	  
			
	 Section 2.5
	 	Books and Records; Retention and Transfer of Materials and Service Recipient Data	  	 	5	  
		
	 ARTICLE III         SERVICE QUALITY; INDEPENDENT CONTRACTOR
	  	 	6	  
			
	 Section 3.1
	 	Service Quality	  	 	6	  
			
	 Section 3.2
	 	Independent Contractor; Assets	  	 	7	  
			
	 Section 3.3
	 	Uses of Services	  	 	7	  
			
	 Section 3.4
	 	Transition of Responsibilities	  	 	7	  
			
	 Section 3.5
	 	Disclaimer of Warranties: Force Majeure	  	 	7	  
		
	 ARTICLE IV         FEES; PAYMENT
	  	 	8	  
			
	 Section 4.1
	 	Fees	  	 	8	  
			
	 Section 4.2
	 	Taxes	  	 	8	  
			
	 Section 4.3
	 	Invoices and Payment	  	 	9	  
			
	 Section 4.4
	 	Timing of Payment; No Offsets	  	 	9	  
			
	 Section 4.5
	 	Non-Payment	  	 	9	  
			
	 Section 4.6
	 	Payment Disputes	  	 	9	  
		
	 ARTICLE V         CONFIDENTIALITY
	  	 	10	  
			
	 Section 5.1
	 	Confidentiality	  	 	10	  
			
	 Section 5.2
	 	Security	  	 	10	  
		
	 ARTICLE VI         TERMINATION
	  	 	11	  
			
	 Section 6.1
	 	Term	  	 	11	  
			
	 Section 6.2
	 	Option to Extend Term	  	 	11	  
			
	 Section 6.3
	 	Partial Termination	  	 	11	  
			
	 Section 6.4
	 	Termination of Entire Agreement	  	 	12	  
			
	 Section 6.5
	 	Procedures on Termination	  	 	12	  

 TABLE OF CONTENTS 

(Continued) 
  

							
	 	 	 	  	Page	 
			
	 Section 6.6
	 	Effect of Termination	  	 	12	  
		
	 ARTICLE VII         INDEMNIFICATION AND DISPUTE RESOLUTION
	  	 	13	  
			
	 Section 7.1
	 	Limitation of Liability	  	 	13	  
			
	 Section 7.2
	 	Indemnification by TimkenSteel	  	 	13	  
			
	 Section 7.3
	 	Indemnification by Timken	  	 	13	  
			
	 Section 7.4
	 	Exclusive Remedy	  	 	14	  
			
	 Section 7.5
	 	Risk Allocation	  	 	14	  
			
	 Section 7.6
	 	Indemnification Procedures	  	 	14	  
			
	 Section 7.7
	 	Express Negligence	  	 	14	  
			
	 Section 7.8
	 	Dispute Resolution	  	 	14	  
		
	 ARTICLE VIII         MISCELLANEOUS
	  	 	14	  
			
	 Section 8.1
	 	Amendment and Modification	  	 	14	  
			
	 Section 8.2
	 	Waiver	  	 	15	  
			
	 Section 8.3
	 	Notices	  	 	15	  
			
	 Section 8.4
	 	Entire Agreement	  	 	15	  
			
	 Section 8.5
	 	No Third-Party Beneficiaries	  	 	15	  
			
	 Section 8.6
	 	Governing Law	  	 	16	  
			
	 Section 8.7
	 	Assignment	  	 	16	  
			
	 Section 8.8
	 	Severability	  	 	16	  
			
	 Section 8.9
	 	Execution in Counterparts	  	 	16	  
			
	 Section 8.10
	 	Rules of Construction	  	 	16	  
			
	 Section 8.11
	 	Successors and Assigns	  	 	17	  
			
	 Section 8.12
	 	Performance	  	 	17	  
			
	 Section 8.13
	 	No Public Announcement	  	 	17	  

 ANNEXES 
  

			
	 Annex A
	  	Authorized Representatives
		
	 Annex B
	  	Timken Services and Fees
		
	 Annex C
	  	TimkenSteel Services and Fees
		
	 SCHEDULES        
	  	
		
	 Schedule C.2
	  	Central Yard Commercial Terms

  
 -ii- 

 TRANSITION SERVICES AGREEMENT 

THIS TRANSITION SERVICES AGREEMENT dated             , 2014 (this “Agreement”), is
between The Timken Company, an Ohio corporation (“Timken”), and TimkenSteel Corporation, an Ohio corporation (“TimkenSteel”). Timken and TimkenSteel are sometimes referred to herein individually as a
“Party”, and collectively as the “Parties”. 
 RECITALS 

A.       TimkenSteel and Timken are Parties to that certain Separation and Distribution Agreement dated as of the
Distribution Date (the “Separation Agreement”). 
 B.       Pursuant to the Separation
Agreement, the Parties agreed to separate Timken into two companies (1) TimkenSteel which will own and conduct, directly and indirectly, the Steel Business; and (2) Timken, which will continue to own and conduct, directly and indirectly,
the Bearings Business (the “Separation”). 
 C.       In connection with the transactions
contemplated by the Separation Agreement and in order to ensure a smooth transition following the Separation, each Party desires that the other Party provide, or cause its Affiliates or contractors to provide, certain transition services. 

D.       It is the intent of the Parties that the Services be provided at cost, and therefore, the Fees set forth
on Annex B and Annex C were calculated to reflect costs. 
 In consideration of the forgoing and the mutual covenants and
agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

ARTICLE I 
 DEFINITIONS 

Section 1.1   Definitions. Unless otherwise defined herein, each capitalized term will have the meaning specified for such term in the
Separation Agreement. As used in this Agreement: 
 “Additional Services” means the Additional Timken Services or the
Additional TimkenSteel Services, individually, or the Additional Timken Services and the Additional TimkenSteel Services, collectively, as the context may indicate. Any Additional Services provided pursuant to this Agreement will be deemed to be
“Services” under this Agreement. 
 “Additional TimkenSteel Service” has the meaning set forth in
Section 2.2(b). 
 “Additional Timken Service” has the meaning set forth in Section 2.2(a). 

“Agreement” has the meaning set forth in the Preamble. 

 “Authorized Representative” means, for each Party, any of the individuals listed on
Annex A under the name of such Party. 
 “Availed Party” has the meaning set forth in Section 5.2(a). 

“Fees” means the fees for a particular Service as set forth on Annex B or Annex C as the case may be. 

“Force Majeure Events” has the meaning set forth in Section 3.5(b). 

“Materials” has the meaning set forth in Section 2.5(a). 

“Partial Termination” has the meaning set forth in the Section 6.3(a). 

“Party” has the meaning set forth in the Preamble. 

“Payment Due Date” has the meaning set forth in Section 4.4. 

“Safety and Security Policies” has the meaning set forth in Section 5.2(a). 

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

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

“Service Provider” means (a) in the case of Timken Services, Timken or any of its Subsidiaries providing a Timken Service
hereunder, or (b) in the case of TimkenSteel Services, TimkenSteel or any of its Subsidiaries providing a TimkenSteel Service hereunder. 

“Service Recipient” means (a) in the case of Timken Services, TimkenSteel or any of its Subsidiaries receiving a Timken
Service hereunder, or (b) in the case of TimkenSteel Services, Timken or any of its Subsidiaries receiving a TimkenSteel Service. 

“Service Recipient Data” means all of the data and information owned and provided solely by the Service Recipient, or created by
the Service Provider solely on behalf, or for the benefit, of the Service Recipient (including any such data and information created by the Service Provider or the Service Recipient using the Service Provider’s computer systems or software) in
relation to the provision of the Services. 
 “Service Term” means the term for a particular Service as set forth on Annex
B or Annex C, as the case may be. 
 “Services” means the Timken Services or the TimkenSteel Services,
individually, or the Timken Services and the TimkenSteel Services, collectively, as the context may indicate. 
 “Systems” has
the meaning set forth in Section 5.2(a). 

  
 -2- 

 “Term” has the meaning set forth in Section 6.1. 

“Term Extension” has the meaning set forth in Section 6.2. 

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

“Timken Services” means the Services generally described on Annex B and any other Service provided by Timken or any of
its Subsidiaries pursuant to this Agreement. 
 “TimkenSteel” has the meaning set forth in the Preamble. 

“TimkenSteel Services” means the Services generally described on Annex C and any other Service provided by TimkenSteel or
any of its Subsidiaries pursuant to this Agreement. 
 ARTICLE II 

PERFORMANCE AND SERVICES 
 Section 2.1  
General. 
 (a)       During the Term, and subject to the terms and conditions of this Agreement, Timken
will use commercially reasonable efforts to provide, or cause to be provided, the Timken Services to TimkenSteel and its Subsidiaries. The applicable Fee for each Timken Service will be the specified Fee for such Timken Service set forth on Annex
B, and the applicable Service Term for each Timken Service will be the specified Service Term for such Timken Service set forth on Annex B, in each case, subject to adjustment for each Term Extension as provided in
Section 6.2. Notwithstanding anything to the contrary contained herein or on any Annex, Timken will have no obligation under this Agreement to: (i) operate the Steel Business or any portion thereof (it being acknowledged and agreed
by Timken and TimkenSteel that providing the Timken Services will not be deemed to be operating the Steel Business or any portion thereof); (ii) advance funds or extend credit to TimkenSteel; (iii) hire new employees for the purpose of
providing the Timken Services; (iv) provide Timken Services to any Person other than TimkenSteel Entities; or (v) implement systems, processes, technologies, plans or initiatives developed, acquired or utilized by Timken whether before or
after the Distribution Date. 
 (b)       During the Term, and subject to the terms and conditions of this
Agreement, TimkenSteel will use commercially reasonable efforts to provide, or cause to be provided, the TimkenSteel Services to Timken and the other Bearings Entities. The applicable Fee for each TimkenSteel Service will be the specified Fee for
such TimkenSteel Service set forth on Annex C, and the applicable Service Term for each TimkenSteel Service will be the specified Service Term for such TimkenSteel Service set forth on Annex C, in each case, subject to adjustment for
each Term Extension as provided in Section 6.2. Notwithstanding anything to the contrary contained herein or on any Annex, TimkenSteel will have no obligation under this Agreement to: (i) operate the Bearings Business or any portion
thereof (it being acknowledged and agreed by Timken and TimkenSteel that providing the TimkenSteel Services will not be deemed to 

  
 -3- 

 
be operating the Bearings Business or any portion thereof); (ii) advance funds or extend credit to Timken; (iii) hire new employees for the purpose of providing the TimkenSteel
Services; (iv) provide TimkenSteel Services to any Person other than Bearings Entities; or (v) implement systems, processes, technologies, plans or initiatives developed, acquired or utilized by TimkenSteel whether before or after the
Distribution Date. 
 (c)       Notwithstanding anything to the contrary in this Agreement, neither Timken nor
TimkenSteel (nor any of their respective Subsidiaries) will be required to perform Services hereunder or take any actions relating thereto that conflict with or violate any applicable Law, contract, license, sublicense, authorization, certification
or permit. 
 Section 2.2   Additional Services. 

(a)       If TimkenSteel reasonably determines that additional transition services (not listed on Annex B)
of the type previously provided by the Bearings Group to the Steel Business are necessary to conduct the Steel Business, and TimkenSteel or its Subsidiaries are not able to provide such services to the Steel Business, then TimkenSteel may provide
written notice thereof to Timken. Upon receipt of such notice by Timken, if Timken is willing, in its sole discretion, to provide such additional service during the Term, the Parties will negotiate in good faith an amendment to Annex B
setting forth the additional service (each such service an “Additional Timken Service”), the terms and conditions for the provision of such Additional Timken Service and the Fees payable by TimkenSteel for such Additional Timken
Service, such Fees to be determined on an arm’s-length basis with the intent that they reflect costs. 
 (b)
      If Timken reasonably determines that additional transition Services (not listed on Annex C) of the type previously provided by the TimkenSteel Group to the Bearings Business are necessary to conduct the
Bearings Business, and Timken or its Subsidiaries are not able to provide such services to the Bearings Business, then Timken may provide written notice thereof to TimkenSteel. Upon receipt of such notice by TimkenSteel, if TimkenSteel is willing,
in its sole discretion, to provide such additional service during the Term, the Parties will negotiate in good faith an amendment to Annex C setting forth the additional service (each such service an “Additional TimkenSteel
Service”), the terms and conditions for the provision of such Additional TimkenSteel Service and the Fees payable by Timken for such Additional TimkenSteel Service, such Fees to be determined on an arm’s-length basis with the intent
that they reflect costs. 
 Section 2.3   Service Requests. Any requests by a Party to the other Party regarding the Services or any
modification or alteration to the provision of the Services must be made by an Authorized Representative (it being understood that the receiving Party will not be obligated to agree to any modification or alteration requested thereby).
Notwithstanding anything to the contrary hereunder, each Party may avail itself of the remedies set forth in Section 6.4 without fulfilling the notice requirements of this Section 2.3. 

  
 -4- 

 Section 2.4   Access. 

(a)       Subject to Section 5.2, TimkenSteel, at the reasonable request of Timken, will make available
on a timely basis to Timken all information reasonably requested by Timken to enable it to provide the Timken Services. TimkenSteel will give Timken and its Affiliates, employees, agents and representatives, as reasonably requested by Timken,
reasonable access, during regular business hours and at such other times as are reasonably required, to the premises of the Steel Business for the purposes of providing the Timken Services. 

(b)       Subject to Section 5.2, Timken, at the reasonable request of TimkenSteel, will make available
on a timely basis to TimkenSteel all information reasonably requested by TimkenSteel to enable it to provide the TimkenSteel Services. Timken will give TimkenSteel and its Affiliates, employees, agents and representatives, as reasonably requested by
TimkenSteel, reasonable access, during regular business hours and at such other times as are reasonably required, to the premises of the Bearings Business for the purposes of providing the TimkenSteel Services. 

Section 2.5   Books and Records; Retention and Transfer of Materials and Service Recipient Data. 

(a)       For a period of 12 months following termination of this Agreement, the Service Provider will retain all
books, records, files, databases or computer software or hardware (including current and archived copies of computer files) (the “Materials”) with respect to matters relating to the Services provided to the Service Recipient
hereunder that are in a form and contain a level of detail substantially consistent with the records retention policies of the Service Provider prior to the Distribution Date (unless any such Materials have been delivered to the Service Recipient or
the Service Recipient otherwise has a copy of such Materials). The Service Provider will make such Materials available to the Service Recipient for its review, upon reasonable notice, at the Service Recipient’s expense, during regular business
hours, including in order to verify disputed charges under Section 4.6. If at any time during the 12-month period following the termination of this Agreement, the Service Recipient reasonably requests in writing that certain Materials be
delivered to the Service Recipient, the Service Provider promptly will arrange for the delivery of the requested Materials in a form reasonably requested by the Service Recipient to a location specified by, and at the expense of, the Service
Recipient. As promptly as practicable following the expiration of the Service Term (or earlier termination pursuant to Section 6.3) of a Service, the Service Provider will use commercially reasonable efforts to furnish to the Service
Recipient, and assist in the transition of Materials belonging to the Service Recipient and relating to such Service as clearly identified by the Service Recipient. 

(b)       The Service Recipient Data will be and will remain the property of the Service Recipient. The Service
Provider will use the Service Recipient Data solely to provide the Services to the Service Recipient as set forth herein and for no other purpose whatsoever. During the Term, the Service Provider will, to the extent reasonably practicable, promptly
provide the Service Recipient Data to the Service 

  
 -5- 

 
Recipient upon the Service Recipient’s reasonable request and at the Service Recipient’s expense. As promptly as practicable following the termination or expiration of this Agreement
for any reason, the Service Provider will use commercially reasonable efforts to deliver to the Service Recipient or destroy (and certify such destruction in writing if so requested by the Service Recipient), at Service Recipient’s option, all
Service Recipient Data; provided, however, that the Service Provider will not be required to erase or destroy Service Recipient Data included in computer files stored securely by the Service Provider that are created during automatic
system backups. 
 (c)       Notwithstanding anything herein to the contrary, and subject to
Section 5.1, the Service Provider may retain copies of the Materials and the Service Recipient Data in accordance with policies and procedures implemented by the Service Provider to comply with applicable Law, professional standards or
reasonable business practice, including document retention policies as in effect from time to time and in accordance with past practices. Each Party will use commercially reasonable efforts to provide the other Party with notice of material
modifications to its record retention policies in a timely manner. 
 ARTICLE III 

SERVICE QUALITY; INDEPENDENT CONTRACTOR 

Section 3.1   Service Quality. 

(a)       The Service Provider will perform the Services in a manner and quality that is substantially consistent
with the Party’s past practice (including as to quantity) in performing the Services for the Business, and in any event in compliance with any terms or service levels set forth on the applicable Annex. The Service Recipient will use the
Services in substantially the same manner and on substantially the same scale as they were used by such Party and its Affiliates in the past practice of the Business, prior to the Distribution Date. 

(b)       Each Party acknowledges and agrees that certain of the Services to be provided under this Agreement have
been, and will continue to be provided (in accordance with this Agreement and the Annexes hereto) to the Bearings Business or the Steel Business, as applicable, by Third Parties designated by the Party responsible for providing such Services
hereunder. To the extent so provided, the Party responsible for providing such Services will use commercially reasonable efforts to (i) cause such Third Parties to provide such Services under this Agreement and/or (ii) enable the Party
seeking the benefit of such Services and its Subsidiaries to avail itself of such Services; provided, however, that if any such Third Party is unable or unwilling to provide any such Services, the Parties agree to use their
commercially reasonable efforts to determine the manner, if any, in which such Services can best be provided (it being acknowledged and agreed that any costs or expenses to be incurred in connection with obtaining a Third Party to provide any such
Services will be paid by the Party to which such Services are provided; provided that the Party responsible for providing such Services will use commercially reasonable efforts to communicate the costs or expenses expected to be incurred in
advance of incurring such costs or expenses). 

  
 -6- 

 Section 3.2   Independent Contractor; Assets. 

(a)       The Parties are independent contractors. All employees and representatives of a Party and any of its
Subsidiaries involved in providing Services will be under the exclusive direction, control and supervision of the Party or its Subsidiaries (or their subcontractors) providing such Services, and not of the Service Recipient. The Party or its
Subsidiaries (or their subcontractors) providing the Services will be solely responsible for compensation of its employees, and for all withholding, employment or payroll taxes, unemployment insurance, workers’ compensation, and any other
insurance and fringe benefits with respect to such employees. The Party or its Subsidiaries (or their subcontractors) providing the Services will have the exclusive right to hire and fire any of its employees in accordance with applicable Law. The
Service Recipient will have no right to direct and control any of the employees or representatives of the Party or its Subsidiaries (or their subcontractors) providing such Services. 

(b)       All procedures, methods, systems, strategies, tools, equipment, facilities and other resources used by a
Party, any of its Subsidiaries or any Third Party service provider in connection with the provision of the Services hereunder will remain the property of such Party, its Subsidiaries or such service providers and, except as otherwise provided
herein, will at all times be under the sole direction and control of such Party, its Subsidiaries or such Third Party service provider. No license under any patents, know-how, trade secrets, copyrights or other rights is granted by this Agreement or
any disclosure in connection with this Agreement by either Party. 
 Section 3.3   Uses of Services. The Service Provider will be
required to provide the Services only to the Service Recipient and the Service Recipient’s Subsidiaries in connection with the Service Recipient’s operation of the Business. The Service Recipient may not resell any Services to any Person
whatsoever or permit the use of such Services by any Person other than in connection with the operation of the Business in the ordinary course of business. 

Section 3.4   Transition of Responsibilities. Each Party agrees to use commercially reasonable efforts to reduce or eliminate its and its
Subsidiaries’ dependence on each Service as soon as is reasonably practicable. Each Party agrees to cooperate with the other Party to facilitate the smooth transition of the Services being provided to the Service Recipient by the Service
Provider. 
 Section 3.5   Disclaimer of Warranties: Force Majeure. 

(a)       Except as expressly set forth in this Agreement: (i) each Party acknowledges and agrees that the
other Party makes no warranties of any kind with respect to the Services to be provided hereunder; and (ii) each Party hereby expressly disclaims all warranties with respect to the Services to be provided hereunder, as further set forth
immediately below. 

  
 -7- 

 EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE SERVICES TO BE PROVIDED UNDER THIS AGREEMENT
WILL BE PROVIDED AS-IS, WHERE-IS, WITH ALL FAULTS, AND WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF NON-INFRINGEMENT, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY TO ANY REPRESENTATION OR DESCRIPTION,
TITLE OR ANY OTHER WARRANTY WHATSOEVER. 
 (b)       Notwithstanding anything to the contrary contained in this
Agreement, neither Party will be liable for any interruption, delay or failure to perform any obligation under this Agreement (but specifically excluding any inability or failure to pay for Services rendered hereunder) when such interruption, delay
or failure results from causes beyond such Party’s reasonable control, including any Law or act of any Governmental Authority, riot, terrorism, insurrection or other hostilities, embargo, fuel or energy shortage, equipment breakdowns, power
failure, pandemic, epidemic, fire, flood, earthquake or act of God, strikes, lockouts, labor shortages, failure of a Third Party to satisfy its contractual obligations, or any other similar cause (“Force Majeure Events”);
provided, however, that the affected Party promptly notifies the other Party, in writing, upon learning of the occurrence of the Force Majeure Event. Subject to compliance with the foregoing, a Party’s obligations hereunder will
be postponed for such time as its performance is suspended or delayed on account of the Force Majeure Event and, upon the cessation of the Force Majeure Event, such Party will use commercially reasonable efforts to resume promptly its performance
hereunder. 
 ARTICLE IV 
 FEES;
PAYMENT 
 Section 4.1   Fees. The Service Recipient will pay the Service Provider the Fees for the Services provided by such Service
Provider under this Agreement. The Fees for the Timken Services are set forth on Annex B and the Fees for the TimkenSteel Services are set forth on Annex C, in each case, subject to adjustment for each Term Extension as provided in
Section 6.2. 
 Section 4.2   Taxes. To the extent required or permitted by applicable Law, there will be added to any Fees
due under this Agreement, and each Party agrees to pay to the other, amounts equal to any taxes, however designated or levied, based upon such Fees, or upon this Agreement or the Services provided under this Agreement, or their use, including state
and local privilege or excise taxes based on gross revenue and any taxes or amounts in lieu thereof paid or payable by the Service Provider hereunder. In the event taxes are not added to an invoice from the Service Provider hereunder, the Service
Recipient is responsible to remit to the appropriate tax jurisdiction any additional amounts due including tax, interest and penalty. The Parties will cooperate with each other to minimize any of these taxes to the extent reasonable. If additional
amounts are determined to be due on the Services provided hereunder as a result of an audit by a 

  
 -8- 

 
tax jurisdiction, the Service Recipient hereunder agrees to reimburse the Service Provider for the additional amounts due including tax, interest and penalty. The Party obligated to make such
reimbursement will have the right to contest the assessment with the tax jurisdiction at its own expense. The Service Provider hereunder will be responsible for penalty or interest associated with its failure to remit invoiced taxes. The Parties
further agree that, notwithstanding the foregoing, neither Party will be required to pay any franchise taxes, taxes based on the income of the other Party or personal property taxes on property owned or leased by a Party and used by such Party to
provide Services. Notwithstanding anything else in this Agreement to the contrary, the obligations of this Section 4.2 will remain in effect until the expiration of the relevant statutes of limitation. 

Section 4.3   Invoices and Payment. Unless otherwise specified in Annex B or Annex C, within 15 days following the end
of each month during the Term (or within 15 days after receipt of a Third Party supplier’s invoice in the case of Services that are provided by a Third Party supplier), the Service Provider will submit to the Service Recipient for payment a
written statement of amounts due under this Agreement for such month. The statement will set forth the Fees, in the aggregate and itemized, based on the descriptions set forth on Annex B or Annex C, as the case may be. Each statement
will specify the nature of any amounts due for any Fees as set forth on Annex B or Annex C and will contain reasonably satisfactory documentation in support of such amounts as specified therein and such other supporting detail as the
Service Recipient may reasonably require to validate such amounts due. 
 Section 4.4   Timing of Payment; No Offsets. Unless otherwise
specified in Annex B or Annex C, each Party will pay all amounts due pursuant to this Agreement no later than 45 days following the end of each month during the Term (or, in the case of Services that are provided by a Third Party
supplier, no later than 45 days following the end of the billing period for such Services) (the “Payment Due Date”). Neither Party will offset any amounts owing to it by the other Party or any of its Subsidiaries against amounts
payable by such Party hereunder or any other agreement or arrangement. All timely payments under this Agreement will be made without early payment discount. 

Section 4.5   Non-Payment. If either Party fails to pay the full amount of any invoice by the Payment Due Date, such failure will be
considered a material default under this Agreement. The remedies provided to each Party by this Section 4.5 and by Section 6.4 will be cumulative with respect to any other applicable provisions of this
Agreement. Payments made after the date they are due will bear interest at an annual rate equal to that announced publicly by The Wall Street Journal as its prime rate plus 2.0% (compounded monthly). 

Section 4.6   Payment Disputes. The Service Recipient may object to any amounts for any Service invoiced to it at any time before, at the
time of, or after payment is made, provided such objection is made in writing to the Service Provider within 60 days following the end of the Term. The Service Recipient will timely pay the disputed items in full while resolution of the dispute is
pending; provided, however, that the Service Provider will pay interest at an annual rate equal to the Prime Rate plus 2.0% 

  
 -9- 

 
(compounded monthly) on any amounts it is required to return to the Service Recipient upon resolution of the dispute. Payment of any amount will not constitute approval thereof. Any dispute under
this Section 4.6 will be resolved in accordance with the provisions of Section 7.8. 
 ARTICLE V 

CONFIDENTIALITY 
 Section 5.1  
Confidentiality. Each Party agrees that the specific terms and conditions of this Agreement and any information, Service Recipient Data and Materials conveyed or otherwise received by or on behalf of a Party in conjunction herewith are
confidential and are subject to the terms of the confidentiality provisions set forth in Section 6.7 of the Separation Agreement. 

Section 5.2   Security. 
 (a)
      If either Party (including its Affiliates and their employees, authorized agents and subcontractors) is given access to the other Party’s computer systems or software (collectively,
“Systems”), premises, equipment, facilities or data in connection with the Transition Services, the Party given access (the “Availed Party”) will comply with (and will cause its Affiliates, and their employees,
authorized agents and subcontractors to comply with) all of the other Party’s policies and procedures in relation to the use and access of the other Party’s Systems, premises, equipment, facilities or data (collectively, “Safety
and Security Policies”), and will not tamper with, compromise or circumvent any safety, security or audit measures employed by such other Party. The Availed Party will access and use only those Systems, premises, equipment, facilities and
data of the other Party for which it has been granted the right to access and use. 
 (b)       Each Party will
use commercially reasonable efforts to ensure that only those of its personnel who are specifically authorized to have access to the Systems, premises, equipment, facilities and data of the other Party gain such access, and use commercially
reasonable efforts to prevent unauthorized access, use, destruction, alteration or loss of such Systems, premises, equipment, facilities or data (including, in each case, any information contained therein), including notifying its personnel of the
restrictions set forth in this Agreement and of the Safety and Security Policies. 
 (c)       If, at any time,
the Availed Party determines that any of its personnel has sought to circumvent, or has circumvented, the Safety and Security Policies, that any unauthorized Availed Party personnel has accessed the Systems, premises, equipment, facilities or data,
or that any of its personnel has engaged in activities that may lead to the unauthorized access, use, destruction, alteration or loss of, or damage to, premises, facilities, equipment, data, information or software of the other Party, the Availed
Party will promptly terminate any such person’s access to the Systems, premises, equipment, facilities or data and promptly notify the other Party. In addition, such other Party will have the right to deny personnel of the Availed Party access
to its Systems, premises, equipment, facilities or data upon notice to the Availed Party in the event that the other Party reasonably believes that such personnel have engaged in any of the activities set

  
 -10- 

 
forth above in this Section 5.2(c) or otherwise pose a security concern. The Availed Party will use commercially reasonable efforts to cooperate with the other Party in investigating
any apparent unauthorized access to such other Party’s Systems, premises, equipment, facilities or data. 
 (d)
      If any Systems, premises, equipment or facilities of a Party are damaged (ordinary wear and tear excepted) due to the conduct of the Availed Party or any of its Affiliates, or their employees, authorized agents or
subcontractors, the Availed Party will be liable to the other Party for all costs associated with such damage, to the extent such costs exceed any available insurance proceeds. 

ARTICLE VI 
 TERMINATION 

Section 6.1   Term. The term of this Agreement (the “Term”) will commence on the Distribution Date and end on the earliest
to occur of (a) the two-year anniversary of the Distribution Date, subject to Section 6.2, (b) the date on which the provision of all Services has been terminated by the Parties pursuant to Section 6.3 and
(c) the date this Agreement is terminated pursuant to Section 6.4. 
 Section 6.2   Option to Extend Term. Upon written
request from the Service Recipient delivered to the Service Provider no later than 30 days (or such other time specified in Annex B or Annex C with respect to such Service), prior to the end of the Service Term for such Service,
the Parties will extend the Service Term of such Service for up to 90 days (or for such other period specified in Annex B or Annex C with respect to such Service), on the terms and conditions contained in this Agreement (such
extension, a “Term Extension”). In the event a Term Extension for a Service would exceed the Term of this Agreement, the Term of this Agreement will be extended for the duration of the Term Extension. The Parties agree that, during
the Term Extension for a Service, unless otherwise specified in Annex B or Annex C with respect to such Service, the Fees for such Service will be increased by an additional 25% of the Fee for such Service set forth in Annex B
or Annex C. 
 Section 6.3   Partial Termination. 

(a)       The Service Recipient will provide no less than 30 days written notice (unless a shorter time is mutually
agreed upon by the Parties or unless otherwise specified in Annex B or Annex C with respect to a Service) to the Service Provider of any Services that, prior to the expiration of the Service Term or Term Extension, are no longer needed
from the Service Provider, in which case this Agreement will terminate as to such Services (a “Partial Termination”). The Parties will mutually agree as to the effective date of any Partial Termination. 

(b)       In the event of any termination prior to the scheduled expiration of the Service Term or of any Partial
Termination hereunder, with respect to any terminated Services in which the Fee for such terminated Services is charged as a flat monthly rate, if termination occurs other than the end of the month, there will be no proration of

  
 -11- 

 
the monthly rate. To the extent any amounts due or advances made hereunder related to costs or expenses that have been or will be incurred and that cannot be recovered by the Service Provider,
such amounts due or advances made will not be prorated or reduced and the Service Provider will not be required to refund to the Service Recipient any prorated amount for such costs or expenses; and the Service Recipient will reimburse the Service
Provider for (i) Service Recipient’s proportional share of any Third Party costs or charges that are required to be paid in connection with the provision of any Services and that cannot be terminated and (ii) any Third Party
cancellation or similar charges incurred as a result of the Service Recipient’s early termination. 
 Section 6.4   Termination of
Entire Agreement. Subject to the provisions of Section 6.6, a Party will have the right to terminate this Agreement or effect a Partial Termination effective upon delivery of written notice to the other Party if the other Party: 

(a)       makes an assignment for the benefit of creditors, or becomes bankrupt or insolvent, or is petitioned into
bankruptcy, or takes advantage (with respect to its own property and business) of any state, federal or foreign bankruptcy or insolvency act, or if a receiver or receiver/manager is appointed for all or any substantial part of its property and
business and such receiver or receiver/manager remains undischarged for a period of 30 days; or 
 (b)
      materially defaults in the performance of any of its covenants or obligations contained in this Agreement (or, in the case of a Partial Termination, with respect to the Services being terminated) and such default
is not remedied to the non-defaulting Party’s reasonable satisfaction within 45 days after receipt of written notice by the defaulting Party informing such Party of such default, or if such default is not
capable of being cured within 45 days, if the defaulting Party has not promptly begun to cure the default within such 45-day period and thereafter proceeded with all diligence to cure the same. 

Section 6.5   Procedures on Termination. Following any termination of this Agreement or Partial Termination, each Party will cooperate with
the other Party as reasonably necessary to avoid disruption of the ordinary course of the other Party’s and its Subsidiaries’ businesses. Termination will not affect any right to payment for Services provided prior to termination. 

Section 6.6   Effect of Termination. Section 4.1 and Section 4.2 (in each case, with respect to Fees and Taxes
attributable to periods prior to termination), Section 2.5, Section 3.2, Section 4.3, Section 4.4, Section 4.6, and Section 6.5, this Section 6.6 and ARTICLE
I, ARTICLE V, ARTICLE VII and ARTICLE VIII will survive any termination of this Agreement. In the event of a Partial Termination, this Agreement will remain in full force and effect with respect to the
Services which have not been terminated by the Parties as provided herein. For the avoidance of doubt, the termination of this Agreement with respect to the Services provided under one Annex, but not the other Annex, will not be a termination
of this Agreement. 

  
 -12- 

 ARTICLE VII 

INDEMNIFICATION AND DISPUTE RESOLUTION 

Section 7.1   Limitation of Liability. 

(a)       No Party nor any of such Party’s Affiliates will be liable, whether in contract, tort (including
negligence and strict liability) or otherwise, for any special, indirect, punitive, incidental or consequential damages whatsoever that in any way arise out of, relate to, or are a consequence of, its performance or nonperformance hereunder, or the
provision of or failure to provide any Service hereunder, including loss of profits, diminution in value, business interruptions and claims of customers, whether or not such damages are foreseeable or any Party has been advised of the possibility or
likelihood of such damages. 
 (b)       Except for Liabilities arising out of or related to the gross
negligence, willful misconduct or bad faith of the defaulting Party or in respect of Section 5.2(d) or ARTICLE VII, in no event will a Party’s aggregate liability arising under or in connection with this Agreement (or the
provision of Services hereunder) exceed the Fees paid or payable to such Party from the other Party pursuant to this Agreement in respect of the Service from which such Liability flows. 

(c)       Each Party will use commercially reasonable efforts to mitigate the Liabilities for which the other is
responsible hereunder. 
 Section 7.2   Indemnification by TimkenSteel. TimkenSteel will indemnify, defend and hold harmless each of the
Bearings Indemnified Parties for any Liabilities attributable to any Third-Party Claims asserted against them to the extent arising from or relating to: (i) any material breach of this Agreement by TimkenSteel; (ii) any gross negligence,
willful misconduct or bad faith by TimkenSteel, the other TimkenSteel Entities, or its or their employees, suppliers or contractors, in the provision of the TimkenSteel Services by TimkenSteel, the other TimkenSteel Entities or its or their
employees, suppliers or contractors pursuant to this Agreement; and (iii) the provision of the Timken Services by Timken, the other Bearings Entities or its or their employees, suppliers or contractors, except to the extent that such
Third-Party Claims for Liabilities are Finally Determined to have arisen out of the material breach of this Agreement, gross negligence, willful misconduct or bad faith of Timken, the other Bearings Entities or its or their employees, suppliers or
contractors in providing the Timken Services. 
 Section 7.3   Indemnification by Timken. Timken will indemnify, defend and hold harmless
each of the TimkenSteel Indemnified Parties for any Liabilities attributable to any Third-Party Claims asserted against them to the extent arising from or relating to: (i) any material breach of this Agreement by Timken; (ii) any gross
negligence, willful misconduct or bad faith by Timken, the other Bearings Entities, or its or their employees, suppliers or contractors, in the provision of the Timken Services by Timken, the other Bearings Entities or its or their employees,
suppliers or contractors pursuant to this Agreement; and (iii) the provision of the TimkenSteel Services by TimkenSteel, the other TimkenSteel Entities or its or their employees, suppliers or contractors, except to

  
 -13- 

 
the extent that such Third-Party Claims for Liabilities are Finally Determined to have arisen out of the material breach of this Agreement, gross negligence, willful misconduct or bad faith of
TimkenSteel, the other TimkenSteel Entities or its or their employees, suppliers or contractors in providing the TimkenSteel Services. 

Section 7.4   Exclusive Remedy. Except for equitable relief and rights pursuant to Section 4.2, Section 4.5 or
ARTICLE V, the indemnification provisions of this ARTICLE VII will be the exclusive remedy for breach of this Agreement. 

Section 7.5   Risk Allocation. Each Party agrees that the Fees charged under this Agreement reflect the allocation of risk between the
Parties, including the disclaimer of warranties in Section 3.5(a) and the limitations on liability in Section 7.1. Modifying the allocation of risk from what is stated here would affect the Fees that each Party charges, and
in consideration of those Fees, each Party agrees to the stated allocation of risk. 
 Section 7.6   Indemnification Procedures. All
claims for indemnification pursuant to Section 5.2(d) or this ARTICLE VII will be made in accordance with the provisions set forth in Article V of the Separation Agreement. Notwithstanding anything to the contrary hereunder,
neither Party may assert against the other Party or submit to arbitration or legal proceedings any cause of action, dispute or claim for indemnification which accrued more than two years after the later of (a) the occurrence of the act or event
giving rise to the underlying cause of action, dispute or claim and (b) the date on which such act or event was, or should have been, in the exercise of reasonable due diligence, discovered by the Party asserting the cause of action, dispute or
claim. 
 Section 7.7   Express Negligence. THE INDEMNITY, RELEASES AND LIMITATIONS OF LIABILITY IN THIS AGREEMENT (INCLUDING ARTICLE
II AND THIS ARTICLE VII) ARE INTENDED TO BE ENFORCEABLE AGAINST THE PARTIES IN ACCORDANCE WITH THE EXPRESS TERMS AND SCOPE THEREOF NOTWITHSTANDING ANY EXPRESS NEGLIGENCE RULE OR ANY SIMILAR DIRECTIVE THAT WOULD PROHIBIT OR OTHERWISE
LIMIT INDEMNITIES BECAUSE OF THE NEGLIGENCE OR GROSS NEGLIGENCE (WHETHER SOLE, JOINT OR CONCURRENT OR ACTIVE OR PASSIVE) OR OTHER FAULT OR STRICT LIABILITY OF ANY OF THE INDEMNIFIED PARTIES. 

Section 7.8   Dispute Resolution. Except for claims arising under ARTICLE V, any Dispute arising out of or relating to this
Agreement will be resolved as provided in Article VII of the Separation Agreement. 
 ARTICLE VIII 

MISCELLANEOUS 
 Section 8.1  
Amendment and Modification. This Agreement may not be amended, modified or supplemented in any manner, whether by course of conduct or otherwise, except by an instrument in writing specifically designated as an amendment hereto, signed on
behalf of each Party. 

  
 -14- 

 Section 8.2   Waiver. No failure or delay of any Party in exercising any right or remedy under
this Agreement will operate as a waiver thereof, nor will any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, or any course of conduct, preclude any other or
further exercise thereof or the exercise of any other right or power. Any agreement on the part of any Party to any such waiver will be valid only if set forth in a written instrument executed and delivered by a duly authorized officer on behalf of
such Party. 
 Section 8.3   Notices. All notices and other communications hereunder will be in writing and will be deemed duly given
(a) on the date of delivery if delivered personally, or if by facsimile or electronic transmission, upon written confirmation of receipt by facsimile, e-mail or otherwise, (b) on the first Business Day following the date of dispatch if
delivered utilizing a next-day service by a recognized next-day courier or (c) on the earlier of confirmed receipt or the fifth Business Day following the date of mailing if delivered by registered or certified mail, return receipt requested,
postage prepaid. All notices hereunder will be delivered to the addresses set forth below, or pursuant to such other instructions as may be designated in writing by the Party to receive such notice: 

If to Timken: 
 The Timken Company

 4500 Mount Pleasant Street NW 

North Canton, Ohio 44720-5450 

Attention: Senior Vice President and General Counsel 

if to TimkenSteel: 
 TimkenSteel
Corporation 
 1835 Dueber Avenue, S.W. 

Canton, Ohio 44706-2798 
 Attention:
General Counsel 
 Section 8.4   Entire Agreement. This Agreement, including the Annexes hereto and the sections of the Separation
Agreement referenced herein, constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, discussions, understandings and commitments, written or oral,
between the Parties with respect to such subject matter. 
 Section 8.5   No Third-Party Beneficiaries. Except to the extent otherwise
provided in ARTICLE VII, nothing in this Agreement or the Ancillary Agreements, express or implied, is intended to or will confer upon any Person other than the Parties to this Agreement and such Ancillary Agreements and their respective
successors and permitted assigns any legal or equitable right, benefit or remedy of any nature under or by reason of this Agreement or the Ancillary Agreements. 

  
 -15- 

 Section 8.6   Governing Law. This Agreement will be governed by and construed and enforced in
accordance with the substantive Laws of the State of Ohio, without regard to any conflicts of law provision or rule thereof that would result in the application of the Laws of any other jurisdiction. 

Section 8.7   Assignment. Except as specifically provided in this Agreement, neither this Agreement nor any of the rights, interests or
obligations hereunder may be assigned or delegated, in whole or in part, by operation of law or otherwise, by either Party without the prior written consent of the other Party to this Agreement or such rights, interests or obligations being so
assigned or delegated, and any such assignment without such prior written consent will be null and void. If any Party to this Agreement (or any of its successors or permitted assigns) (a) will consolidate with or merge into any other Person and
will not be the continuing or surviving corporation or entity of such consolidation or merger or (b) will transfer all or substantially all of its properties and/or Assets to any Person, then, and in each such case, the Party (or its successors
or permitted assigns, as applicable) will ensure that such Person assumes all of the obligations of such Party (or its successors or permitted assigns, as applicable) under this Agreement and all applicable Ancillary Agreements, in which case the
consent described in the previous sentence will not be required. 
 Section 8.8   Severability. Whenever possible, each provision or
portion of any provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable Law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in
any respect under any applicable Law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed
and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained in this Agreement. 

Section 8.9   Execution in Counterparts. This Agreement may be executed in one or more counterparts, and by the different Parties in
separate counterparts, each of which when executed will be deemed to be an original but all of which taken together will constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or
portable document format (PDF) will be as effective as delivery of a manually executed counterpart of any such Agreement. 
 Section 8.10  
Rules of Construction. Interpretation of this Agreement will be governed by the following rules of construction: (a) words in the singular will be held to include the plural and vice versa and words of one gender will be held to include
the other gender as the context requires, (b) references to the terms Article, Section, paragraph, clause, Exhibit and Schedule are references to the Articles, Sections, paragraphs, clauses, Exhibits and Schedules of this Agreement unless
otherwise specified, (c) the terms “hereof,” “herein,” “hereby,” “hereto,” and derivative or similar words refer to this 

  
 -16- 

 
entire Agreement, including the Annexes, Schedules and Exhibits hereto, (d) references to “$” will mean U.S. dollars, (e) the word “including” and words of similar
import when used in this Agreement will mean “including without limitation,” unless otherwise specified, (f) the word “or” will not be exclusive, (g) the word “will” will be construed to have the same meaning
and effect as the word “shall”; (h) references to “written” or “in writing” include in electronic form, (i) provisions will apply, when appropriate, to successive events and transactions, (j) the table of
contents and headings contained in this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement, (k) the Parties have each participated in the negotiation and drafting of this
Agreement and if an ambiguity or question of interpretation should arise, this Agreement will be construed as if drafted jointly by the Parties and no presumption or burden of proof will arise favoring or burdening either Party by virtue of the
authorship of any of the provisions in this Agreement or any interim drafts of this Agreement, and (l) a reference to any Person includes such Person’s successors and permitted assigns. 

Section 8.11   Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the Parties and their successors and
permitted assigns; provided, however, that the rights and obligations of either Party under this Agreement will not be assignable by such Party without the prior written consent of the other Party. The successors and permitted assigns
hereunder will include any permitted assignee as well as the successors in interest to such permitted assignee (whether by merger, liquidation (including successive mergers or liquidations) or otherwise). 

Section 8.12   Performance. Each Party will cause to be performed, and hereby guarantees the performance of, all actions, agreements and
obligations set forth herein to be performed by any Subsidiary of such Party. 
 Section 8.13   No Public Announcement. Neither Timken
nor TimkenSteel will, without the approval of the other, make any press release or other public announcement concerning the transactions contemplated by this Agreement, except as and to the extent that either Party is obligated by Law or the rules
of any regulatory body, stock exchange or quotation system, in which case the other Party will be advised and the Parties will use commercially reasonable efforts to cause a mutually agreeable release or announcement to be issued; provided,
however, that the foregoing will not preclude communications or disclosures necessary to implement the provisions of this Agreement or to comply with applicable Law, accounting and SEC disclosure obligations or the rules of any stock
exchange. 
 [Signatures on Following Page] 

  
 -17- 

 IN WITNESS WHEREOF, the Parties have caused this 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:

 Annex A 

AUTHORIZED REPRESENTATIVES 
 TIMKEN 

The Timken Company 
 4500 Mt. Pleasant Street, NW 

North Canton, Ohio 44720 
  

			
	 Douglas H. Smith

Senior Vice President and Chief

Technology Officer
  

Douglas C. Nelson

Vice President – Total Rewards
  

Michael A. Discenza

Assistant Controller
	  	 Sandra L. Rapp
 Director – IT Infrastructure and
Business
 Alignment
  

Richard M. Boyer
 Vice President – Manufacturing –

Bearings and Power Transmission
  

 TIMKENSTEEL 
 TimkenSteel
Corporation 
 1835 Dueber Avenue, SW 
 Canton, Ohio 44706 

 

			
	 Raymond V. Fryan
 Director – Advanced Engineering
and
 Quality – Steel
	  	 Richard E. Hawkins
 Director – Strategic IT
Project

		
	 Eric D. Murray
 General Manager – Total
Rewards
	  	 James M. Gresh
 Vice President – Strategy and

International – Steel

		
	 Amanda J. Sterling
 Controller – Steel
Group
	  	

  

 Annex B 

TIMKEN SERVICES AND FEES 
 Timken will provide
TimkenSteel the following specific services as requested by TimkenSteel on the terms specified in this Annex B. 
 Section B.1 

 

									
	  

Engineering
 Services

 
	  	 Description

 
	 	  	  	
Fee(s)
  
	  	
Service Term
  

	Global labs and assets	  	 ASPEX lab – Timken will provide services related to
ASPEX sample prep, processing, analysis until the TimkenSteel Lab is operational or for the term indicated. Includes three Aspex units and preparation equipment.
  

TimkenSteel associates to operate equipment and to conduct related activities.
  
	 	 	  	$9,675 per month	  	9 months
	  	 Steel storage capacity - Timken will allow current steel
being stored to remain until TimkenSteel storage is ready to transfer steel into new facility or for the term indicated.
  
	 	 	  	No fee	  	9 months
	  	 Corrosion laboratory - Timken will provide services related
to corrosion testing until the TimkenSteel lab is operational or for the term indicated.
  

TimkenSteel associates to operate equipment and to conduct related activities.
  
	 	 	  	$2,700 per month	  	9 months
	  	 Electron microscopy lab - Timken will provide services
related to SEM analysis until the TimkenSteel Lab SEM is operational or for the term indicated.
  
	 	 	  	$2,250 per month	  	9
months

									
	  

Engineering
 Services

 
	  	 Description

 
	 	  	  	
Fee(s)
  
	  	
Service Term
  

	 	  	 Mechanical testing lab - Timken will provide services
related to Mechanical Test until the TimkenSteel lab is operational or for the term indicated. Includes MTS frame, and RR Moore test rig.
  

TimkenSteel associates to operate equipment and to conduct related activities.
  
	 	 	  	$717 per month	  	9 months
	  	 Gleeble – Timken will provide facility / occupation
related services related to Gleeble until the TimkenSteel Lab is operational or for the term indicated.
  

TimkenSteel associates will be providing services while on site at WHQ. Timken associates may operate facilities when not being used by TimkenSteel or during off
shift.
  
	 	 	  	$533 per month	  	9 months
	  	 Heat treat laboratory - Timken will provide services related
to Heat Treatment until the TimkenSteel lab is operational or for the term indicated.
  
	 	 	  	$480 per month	  	9 months
	  	 Ultrasonic laboratory - Timken will provide services related
to UT testing and analysis of related results until the TimkenSteel lab is operational or for the term indicated. Note – focus is Sonix1.
  
	 	 	  	$11,250 per month	  	9
months

  
 B-2 

									
	  

Engineering
 Services

 
	  	 Description

 
	 	  	  	
Fee(s)
  
	  	
Service Term
  

	 	  	 Melting laboratory - Timken will provide services related to
VIM Melting until the TimkenSteel Lab is operational or for the term indicated.
  

TimkenSteel associates to operate equipment and to conduct related activities.
  
	 	 	  	$5,600 per month	  	9 months
	  	 Rolling Mill - Timken will provide services related to
Test Rolling until the TimkenSteel Lab is operational or for the term indicated.
  
	 	 	  	$2,000 per month	  	9 months
	  	 Data Transfer – Data transfer for Aspex, SEM, UT and
Gleeble assets.
  
	 	 	  	No fee	  	9 months
	  	 Machinability Broaching – Timken will provide
services related to machinability testing utilizing the broach.
  
 TimkenSteel associates to
operate equipment and to conduct related activities.
  
	 	 	  	$1,000 per month	  	9 months
	  	 Laboratory maintenance & repairs – for items beyond
normal wear and tear.
  
	 	 	  	Actual costs on a Time and Material basis	  	9 months
	Associate Access to WHQ	  	 Associate Access – Timken will provide associates
access to the necessary laboratories for purposes of the Services hereunder.
  
 Lab
Associates – Treat as contingents, sign in at front desk
  
 All other
TimkenSteel Associates – Treat as visitors
  
	 	 	  	No fee	  	9
months

  
 B-3 

									
	  

Engineering
 Services

 
	  	 Description

 
	 	  	  	
Fee(s)
  
	  	
Service Term
  

	Technical archives	  	Library services - Timken will provide reasonable access to library catalog documents that are part of
the Steel Business.	 	 	  	$750 per month	  	6 months

 Section B.2 
  

	1.	TimkenSteel may extend the Service Term for the Services provided under this Section B.2 by delivering a written request to Timken 90 days prior to the end of the Service Term for such Service.

  

									
	  

Finance and
 Facilities

Services
  
	  	 Description

 
	 	  	  	 Fee(s)

 
	  	
Service Term
  

	 Payroll
	  	 FTS payroll services - Timken will provide all aspects of
payroll processing for TimkenSteel company active associates and retirees consistent with existing practices. Includes all internal customer support and external vendor management.

 
 TimkenSteel will provide notice to Timken of TimkenSteel’s intention to discontinue use
of the payroll services no later than 90 days prior to terminating its use of the payroll services.
  
	 	 	  	$23,000 per month	  	19 months
	Finance and accounting support	  	 Financial Close Support - After the Separation,
TimkenSteel will require support from certain associates in Timken’s finance and accounting function to participate in TimkenSteel’s annual financial close process. The support tasks required are for the legal entities involved in the
Separation and include but are not limited to:
  
	 	 	  	 No fee;

TimkenSteel will reimburse Timken for any non-labor out-of-pocket expenses incurred in the provision of this support.
	  	8
months

  
 B-4 

									
	  

Finance and
 Facilities

Services
  
	  	 Description

 
	 	  	  	 Fee(s)

 
	  	
Service Term
  

	 	  	 • Q2 and year-end
financial closing
 • Q2 and year-end financial carve-out activities

• Legal entity and business performance reporting

• Preparation of special tax reporting packages

• Preparation of special external reporting packages

• Preparation of special unit reporting packages

Terms of Support

• Service will be provided during normal business hours in the location of the associate providing the
support.
 • Timken and TimkenSteel will designate a contact point for services, and all questions and
information requests will be submitted and addressed through these contact points.
 • Timken and TimkenSteel
will identify senior members of their respective finance and accounting organizations to act as escalation points to resolve disputes regarding the provision of this service.
	 	 	  	 	  	 
	 FTS
	  	Accounts receivable and related services – Timken will provide, using FTS/TERI operations, services
related to accounts receivable claims initiation, cash application, past due follow up, and related transactional processing services consistent with existing practices.	 	 	  	$11,220 per month	  	18
months

  
 B-5 

									
	  

Finance and
 Facilities

Services
  
	  	 Description

 
	 	  	  	 Fee(s)

 
	  	
Service Term
  

	 	  	 TSBMR document processing – Timken will provide,
using FTS/TERI operations, services related to transactional processing of all TSMBR processing tasks related to accounts payable and accounts receivable consistent with existing practices.

 
	 	 	  	$5,610 per month	  	18 months
	  	 Vendor invoice processing – Timken will, using
FTS/TERI operations, post vendor invoices to the accounts payable system consistent with existing practices.
  
	 	 	  	$3,740 per month	  	18 months
	  	 Purchasing admin – Timken will, using FTS/TERI
operations, continue to support purchasing administration tasks consistent with existing practices.
  
	 	 	  	$935 per month	  	18 months
	  	 Laptop leasing admin – Timken will, continue to
manage the TimkenSteel laptop leasing program consistent with existing practices.
  
	 	 	  	$935 per month	  	18 months
	 UK support
	  	 UK finance support – Timken UK Limited will provide
finance and accounting support in the UK and will participate in TimkenSteel’s monthly financial close process. The support tasks required include:

• Monthly vendor payments and purchase requisitions

• Management of lease contracts and payments

• Quarterly VAT returns and payments

• Management of statutory accounts and statutory tax preparation

 
	 	 	  	$3,000 per month	  	12
months

  
 B-6 

									
	  

Finance and
 Facilities

Services
  
	  	 Description

 
	 	  	  	 Fee(s)

 
	  	
Service Term
  

	 	  	 • Preparation of tax
and year-end reporting packages
 • Management of Pension and FASB 87

• Payroll for local associates and year end payroll submissions

• Management of local associate expenses, credit cards, and insurance

• Record retention for TimkenSteel

• Monthly general ledger account reconciliations per Corporate policy

• Monthly load of financial results into HFM for consolidation

 
	 	 	  	 	  	 

  
 B-7 

 Section B.3 
  

	1.	TimkenSteel may extend the Service Term for the Services provided under this Section B.3 by delivering a written request to Timken 90 days prior to the end of the Service Term for such Service.

  

									
	 Information

Technology
 Services

 
	  	 Description

 
	 	  	  	
Fee(s)
  
	  	
Service
 Term

 

	EDI	  	 GenTran EDI systems – Timken will provide continued
access, use and production support of services relating to GenTran systems, including: set up of new trading partners, changes to existing partners, responding to inquiries, ensuring that requirements and updates are met, mapping and integration of
EDI data to internal systems and providing secure environments.
  
	 	 	  	$2,900 per month	  	24
months

  
 B-8 

									
	 Information

Technology
 Services

 
	  	 Description

 
	 	  	  	
Fee(s)
  
	  	
Service
 Term

 

	Mainframe support	  	 Mainframe environment support - Timken will provide
continued access, use and production support of services relating to the mainframe environment, including, but not limited to maintenance and operational support for the mainframe application, interfaces, batch jobs, vendor/third party management,
access, security, version and change control, patches and updates, performance tuning, database support, hosting, and level 2/3 help desk support for the mainframe system. Mainframe environment support does not include Millennium application
licensing and related costs which will be paid by TimkenSteel.
  
 Timken will provide notice
to TimkenSteel of Timken’s intention to discontinue use of the mainframe services no later than 90 days prior to terminating its use of the mainframe services. If TimkenSteel determines to continue use of the mainframe services, it would be
obligated to enter into a separate contract with the third party mainframe service provider.
	 	 	  	$38,080 per month for the first 18 months. Rates and utilization levels to be reviewed
and adjusted after the first 18 months based on the percent active user population and mainframe cost base.	  	24
months

  
 B-9 

									
	 Information

Technology
 Services

 
	  	 Description

 
	 	  	  	
Fee(s)
  
	  	
Service
 Term

 

	 Overall support
	  	 Application and infrastructure support services - Timken will
provide application and infrastructure support services including, but not limited to:
 • Information
security hardware, software, processes and tools (firewalls, scanning, monitoring);
 • Resources to support
OnBase related document processing
 • Internet, server support, and database support

• SharePoint

• Mobility environment (MDM service, Mobile Iron)

• Data communications networks

• Application development and maintenance support including Payroll, HRIS, Recruiting, Benefits Administration,
Kronos, Timken Supplier Network, Extensity, SAP (including Basis), HCM, Hyperion and AR Securitization/Subledger

• Systems integration/ middleware (MQSeries, BEA, and other related systems)

• Unified Communications including telephone forwarding to new Bearing phone numbers and email forwarding to
new Steel email accounts
 • Other applications as requested by TimkenSteel
	 	 	  	No fees will be charged for the months of July and August 2014. From the period of
September 2014 through January 2015, fees will be $22,400 per month for up to 320 hours of support per month across all functions (no more than 80 hours per month allocated to HR and Payroll functions). Additional hours beyond January 2015 will be
charged at $70 per hour up to 160 hours per month (no more than 40 hours per month allocated to HR and Payroll functions), and will be reconciled monthly. Extension will be based on January 15 conditions.	  	12 months

  
 B-10 

 Section B.4 
  

									
	 Employee

Benefits
 Services

 
	  	 Description

 
	 	  	  	
Fee(s)
  
	  	
Service Term
  

	Expatriate Health Insurance	  	Expatriate Health Insurance Services - Timken will provide expatriate health insurance coverage through its
fully insured arrangement with Aetna International for the benefit of Alex Reid, a TimkenSteel expatriate.	 	 	  	$1,758 per month	  	18 months. No extension permitted

  
 B-11 

 Annex C 

TIMKENSTEEL SERVICES AND FEES 
 TimkenSteel will
provide Timken the following specific services as requested by Timken on the terms specified in this Annex C. 
 Section C.1 

 

							
	 Engineering

Services
	  	Description	  	Fee(s)	  	Service
Term
	Global labs and assets	  	Gleeble – TimkenSteel to provide services while on site at WHQ.	  	$2,000 per month	  	6 months
	  	Melting – TimkenSteel to provide services while on site at WHQ.	  	$1,500 per heat	  	9 months
	  	Rolling Mill – TimkenSteel to provide services while on site at WHQ.	  	$500 per heat	  	9 months
	  	Chemistry laboratory – TimkenSteel will provide services related to Chemical analysis.	  	$8,000 per month	  	3 months
	  	Laboratory maintenance & repairs – for items beyond normal wear and tear of machines.	  	Actual costs on a Time and Material basis	  	9 months

 Section C.2 
  

							
	 Operations

Services
	  	Description	  	Fee(s)	  	Service
Term
	Central tube yard	  	 Central tube yard services – TimkenSteel will provide services, facilities and
utilities for storage and operations as described in Schedule C.2 until the Timken tube yard move is completed or for the term indicated.
  

Timken will provide notice to TimkenSteel of Timken’s intention to extend this services no later than 90 days prior to the expiration of these
services.
	  	$12.89 per process ton. (A daily process ton total is the summation of all tons received into the storage yard plus all
tons pulled from the storage yard which are accounted for in the Timken SAP system. Timken has responsibility for all destination freight costs from the storage yard.)	  	9 months

  

							
	 Operations

Services
	  	Description	  	Fee(s)	  	Service
Term
	GRP	  	Electricity – TimkenSteel will supply electricity to the GRP facility until separate Timken supply is in place	  	Fixed electricity rate to be based on current process/contract. (Metered volume from the Canton District Electric
invoice based upon the firm GS-4 tariff rate. Electricity usage will be determined based on existing meter into GRP)	  	12 months; No extension permitted
	 	  	Natural gas – TimkenSteel will supply natural gas to the GRP facility until separate Timken supply is in place – this supply
arrangement will not exceed the term indicated 	  	Fixed natural gas rate to be based on current process/contract. (Timken is currently charged for the total combined
volume of natural gas metered at two locations: main building and heat treat. The total charge will be based upon the NYMEX settle rate for natural gas each month)	  	4 months; No extension permitted
	 	  	Potable water – TimkenSteel will supply potable water to the GRP facility until separate Timken supply is in place – this
supply arrangement will not exceed the term indicated 	  	Fixed water rate to be based on current process/contract. (GRP is currently charged for water usage costs through a
combination of sub-meter actual and agreed upon allocations.) Water usage will be determined based on existing meter into GRP	  	4 months; No extension permitted

  
 C-2 

 Section C.3 
  

	 	1.	Timken may extend the Service Term for the Services provided under this Section C.3 by delivering a written request to TimkenSteel 90 days prior to the end of the Service Term for such Service.

  

							
	
Finance and
 Facilities

Services
	  	Description	  	Fee(s)	  	Service
Term
	Finance and accounting support	  	 Financial Close Support - After the Separation, Timken
will require support from certain associates in TimkenSteel’s finance and accounting function to participate in Timken’s annual financial close process. The support tasks required are for the legal entities involved in the Separation and
include but are not limited to:
 • Q2 and year-end financial closing

• Q2 and year-end financial carve-out activities

• Legal entity and business performance reporting

• Preparation of special tax reporting packages

• Preparation of special external reporting packages

• Preparation of special unit reporting packages

 
 Support for the closing activities will require participation by business employees who
immediately prior to the Separation were employed by the following legal entities:
	  	 No fee;
  

Timken will reimburse TimkenSteel for any non-labor out-of-pocket expenses incurred in the provision of this support
	  	8 months

  
 C-3 

							
	
Finance and
 Facilities

Services
	  	Description	  	Fee(s)	  	Service
Term
	 	  	
•   TimkenSteel

•   EDC, Inc.

•   TSB Metal Recycling LLC

•   Timken Communications Company

•   Timken Boring Specialties LLC

 
 Terms of Support

•   Service will be provided during normal business hours in the location of the associate providing
the support.
 •   Timken and TimkenSteel will designate a contact point for services, and all
questions and information requests will be submitted and addressed through these contact points.

•   Timken and TimkenSteel will identify senior members of their respective finance and accounting
organizations to act as escalation points to resolve disputes regarding the provision of this service.
  
	  	 	  	 
	Facilities Services	  	 Storage – BIC basement – TimkenSteel will allow
certain designated areas to be used for short-term storage of Timken’s records and files and space for the Travel department agents of BCD. The designated areas include the Engineering vault (BIC1F), the vault formerly used by Payroll (BIC1U),
the Communications vault (BIC1V) and Travel department area of 1000 sq. ft.
  
	  	 BIC1F - $1,106 per month

BIC1U - $304 per month
 BIC1V - $231 per month

Travel - $667 per month
	  	18 months

  
 C-4 

 Section C.4 
  

							
	
Information
 Technology

Services
	  	Description	  	Fee(s)	  	Service
Term
	Overall support	  	 Application and infrastructure support services -
TimkenSteel will provide application and infrastructure support services including, but not limited to:

• Information security hardware, software, processes and tools (firewalls, scanning, monitoring);

• Resources to support OnBase related document processing

• Internet, server support, and database support

• SharePoint

• Mobility environment (MDM service, Mobile Iron)

• Data communications networks

• Application development and maintenance support including Payroll, HRIS, Recruiting, Benefits Administration,
Kronos, Timken Supplier Network, Extensity, SAP (including Basis), HCM, Hyperion and AR Securitization/Subledger

• Systems integration/middleware (MQSeries, BEA, and other related systems)

• Unified Communications including telephone forwarding to new Timken phone numbers and email forwarding to new
TimkenSteel email accounts
 • Other applications as requested by Timken

 
	  	No fees will be charged for the months of July and August 2014. Beginning September 2014, additional fees will be charged at $70 per hour up to 160
hours per month, and will be reconciled monthly. Extension will be based on September 2014 conditions.	  	12 months

  

  
 C-5 

 SCHEDULE C.2 

CENTRAL YARD COMMERCIAL TERMS 
 Scope of
Service: TimkenSteel will provide steel storage and product processing services to Timken for steel products that TimkenSteel delivers directly to the Central Yard pursuant to a TimkenSteel order (the “Product”). 

 

	1.	Location: 

 All storage and processing of the Product will be completed within the footprint
of the area defined and identified as the “Central Yard” at the TimkenSteel – Gambrinus steel storage yard. 
  

	2.	Processing Services: 

 TimkenSteel will provide the following Product processing services:

  

	 	a.	Receiving the Product into the Central Yard and acknowledging receipt in Timken’s SAP system; 

  

	 	b.	Storing the Product within the Central Yard, and maintaining mill-supplied identification and segregation of the Product; 

  

	 	c.	Acknowledging, in Timken’s SAP system, of requests for Product transfers and Product shipments; 

  

	 	d.	Pulling from inventory and repackaging Product (including re-bundling, measuring and tagging) to meet Product transfer requirements of SAP signals; 

 

	 	e.	Re-bundling, measuring, tagging and placing in a storage location all residual Product from the repackaged Product; 

  

	 	f.	Recording, in Timken’s SAP system, all transactions created in the pulling of the Product; 

  

	 	g.	Providing logistics services, including obtaining transportation for the Product and loading the Product onto trucks for shipment. Carriers are to be selected and scheduled using a routing guide and procedure provided
by Timken. 

 For the avoidance of doubt, the processing services do not apply to steel that is returned to either TimkenSteel or
the Central Yard by Timken. 
  

	3.	Product Service Lead Times: 

  

	 	a.	Receipt of the Product: The Product will be stored in the Central Yard and acknowledged in Timken’s SAP system within 24 hours of receipt. 

 

	 	b.	Processing of the Product: The Product will be available for shipment and all transactions will be acknowledged in Timken’s SAP system within seven days of an SAP signal. 

	4.	Freight: 

 Timken will be responsible for all incoming and outgoing freight charges relating
to the Product. Unless otherwise specified freight terms will be Collect. 
  

	5.	Product Ownership: 

 Title of the Product will transfer from TimkenSteel to Timken upon
receipt of the Product into the Central Yard. All Product stored and processed within the Central Yard will be owned by Timken. Timken will retain ownership of all printers and bar code readers utilized within the Central Yard. 

 

	6.	Quality: 

 TimkenSteel will utilize Timken’s global quality tracking system to address
quality issues resulting from the services provided pursuant to this Schedule C.2.

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