Common use of Establishment of Welfare Plans Clause in Contracts

Establishment of Welfare Plans. (a) On or prior to January 1, 2015, KLX shall establish and adopt Welfare Plans that will provide welfare benefits to each eligible KLX Employee who is, as of the Distribution Date, a participant in any of the B/E Welfare Plans (and their eligible spouses and dependents, as the case may be) under terms and conditions that are substantially similar to the B/E Welfare Plans (the “KLX Welfare Plans”). Coverage and benefits under the B/E Welfare Plans shall then be provided to the KLX Employees on an uninterrupted basis under the newly established KLX Welfare Plans which shall contain substantially the same terms and conditions as in effect under the corresponding B/E Welfare Plans immediately prior to the Distribution Date, unless otherwise noted on Schedule 4.01(a). KLX Employees shall cease to be eligible for coverage under the B/E Welfare Plans on January 1, 2015, unless otherwise noted on Schedule 4.01(a). For the avoidance of doubt, KLX shall not participate in any B/E Welfare Plans on or after January 1, 2015, and B/E Employees and Former B/E Employees shall not participate in any KLX Welfare Plans at any time. During the period, if any, after the Distribution Date and before January 1, 2015, coverage for KLX Employees under the B/E Welfare Plans shall be provided pursuant to the terms set forth in the Transition Services Agreement.

Establishment of Welfare Plans. (a) On or prior to January 1the Distribution Date, 2015, KLX ESG SpinCo shall establish and adopt Welfare Plans welfare plans that will provide welfare benefits to each eligible KLX ESG Employee who is, as of the Distribution Date, a participant in any of the B/E KLX welfare plans (KLX Welfare Plans Plans) (and their eligible spouses and dependents, as the case may be) under terms and conditions that are substantially similar comparable to the B/E KLX Welfare Plans (the “KLX ESG Welfare Plans”). Coverage and benefits under the B/E KLX Welfare Plans shall then be provided to the KLX ESG Employees on an uninterrupted basis under the newly established KLX ESG Welfare Plans which shall contain substantially the same comparable terms and conditions as in effect under the corresponding B/E KLX Welfare Plans immediately prior to the Distribution Date, unless otherwise noted on Schedule 4.01(a4.1(a). KLX ESG Employees shall cease to be eligible for coverage under the B/E KLX Welfare Plans on January 1the Distribution Date or the Transfer Date, 2015as applicable, unless otherwise noted on Schedule 4.01(a4.1(a). For the avoidance of doubt, KLX ESG SpinCo shall not participate in any B/E KLX Welfare Plans on or after January 1, 2015the Distribution Date, and B/E KLX Employees and Former B/E KLX Employees shall not participate in any KLX ESG Welfare Plans at any time. During the period, if any, after the Distribution Date and before January 1or the Transfer Date, 2015as applicable, coverage for KLX ESG Employees under the B/E KLX Welfare Plans shall be provided pursuant to the terms set forth in the Transition Services Agreement.