EX-10.7 9 d888282dex107.htm EX-10.7 EX-10.7

Exhibit 10.7

FORM OF

NOVATION AND ASSUMPTION AGREEMENT

by and among

THE BABCOCK & WILCOX COMPANY,

a Delaware corporation,

and

BABCOCK & WILCOX ENTERPRISES, INC.,

a Delaware corporation,

and

DAMPKRAFT INSURANCE COMPANY, a South Carolina corporation

and

CREOLE INSURANCE COMPANY, a South Carolina corporation,

RECITALS

THIS NOVATION AND ASSUMPTION AGREEMENT (the “Agreement”), is entered into and effective as of                 , 2015 (the “Effective Date”) by and among THE BABCOCK & WILCOX COMPANY , a Delaware corporation (“RemainCo”), BABCOCK & WILCOX ENTERPRISES, INC., a Delaware corporation (“SpinCo”), CREOLE INSURANCE COMPANY, a South Carolina corporation (“Creole”), and DAMPKRAFT INSURANCE COMPANY, LTD., a South Carolina corporation (“Dampkraft”) and, solely with respect to Sections 2(a)(ii) and 2(c)(ii), respectively, the other RemainCo Entities signatory hereto and the other SpinCo Entities signatory hereto.

WHEREAS, Creole has issued the Existing Policies to one or more RemainCo Entities and one or more SpinCo Entities;

WHEREAS, pursuant to the Existing Policies, Creole is obligated, among other things, to pay or reimburse RemainCo Entities and/or SpinCo Entities for certain obligations;

WHEREAS, SpinCo, prior to the Separation, is a wholly owned Subsidiary of RemainCo;

WHEREAS, RemainCo intends to spin-off SpinCo from RemainCo through a dividend of common stock of SpinCo to the shareholders of RemainCo (the “Separation”);

WHEREAS, in connection with the Separation, Creole desires to transfer and Dampkraft desires to assume any Transferable Creole Policies insofar as such policies relate to SpinCo Entities;

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

WHEREAS, certain of the liabilities of RemainCo and/or SpinCo and their respective Affiliates that are insured by the Existing Policies under this Agreement are RemainCo Obligations and/or SpinCo Obligations under the ALAA, and the parties desire that the allocation of liability in this Agreement conform to that in the ALAA insofar as such overlap may exist; and

WHEREAS, each of RemainCo and SpinCo, each for itself and for its respective Subsidiaries, is willing to consent to the transfer, assumption, and novation of the matters set forth herein, subject to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual promises set out herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Definitions. The following terms used herein, including in the recitals and Exhibits hereto, shall have the following meanings:

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

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

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

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

“Assumption Time” means the time at which the Separation is effective on the Effective Date.

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

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

“Existing Policies” means the Transferable Creole Policies and the Wholly Retained Creole Policies.

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

 

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“Insured SpinCo Obligation” means an obligation of Creole or Dampkraft under the Existing Policies that arises from an obligation, (a) to any insurance company that is an Obligation of a SpinCo Entity or (b) to ACE or its Affiliates that is a SpinCo Obligation under the ALAA.

“Insured RemainCo Obligation” means an obligation of Creole under the Existing Policies that arises from an obligation, (a) to any insurance company that is an Obligation of a RemainCo Entity or (b) to ACE or its Affiliates that is an RemainCo Obligation under the ALAA.

“Insurer,” as a noun in reference to one or more insurance policies, means the Person identified in such policy or policies as the insurer.

“Loss Portfolio” means (a) all of the accumulated reserves (actual and incurred but not reported) which Creole holds in respect of its liabilities (actual and contingent) under the Transferable Creole Policy, (b) the unearned premium reserve with respect to each Transferable Creole Policy, (c) the other liabilities (comprising accounts payable, accrued expenses and loss payables) and (d) an amount as agreed upon between Creole and Dampkraft with respect to a loss deterioration reserve under the Transferable Creole Policy.

“Master Separation Agreement” means a Master Separation Agreement to be entered into between RemainCo and SpinCo in connection with the Separation.

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

“Parties” means RemainCo, SpinCo, Dampkraft and Creole collectively (and each individually is a “Party”).

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, a union, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof.

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

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

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

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

 

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

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

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

“Subsidiary” means, with respect to any specified Person, any corporation, partnership, limited liability company, joint venture or other organization, whether incorporated or unincorporated, of which at least a majority of the securities or interests having by the terms thereof ordinary voting power to elect at least a majority of the board of directors or others performing similar functions with respect to such corporation or other organization is directly or indirectly owned or controlled by such specified Person or by any one or more of its Subsidiaries, or by such specified Person and one or more of its Subsidiaries.

“Transferable Creole Policy” means each insurance policy issued prior to the date hereof by Creole on which an SpinCo Entity is named or otherwise identified as an insured (including without limitation by being within a generic description such as “Affiliates” or “Subsidiaries”).

“Transferred Dampkraft Policy” means, as to any Transferable Creole Policy after the Assumption Time and giving effect to this Agreement, the aggregate of all rights, duties, and obligations of Dampkraft with respect to the SpinCo Entities that were, prior to the Assumption Time, Insureds of Creole under such Transferable Creole Policy

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

2. Assumption.

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

(i) Dampkraft hereby agrees to observe, pay, perform, satisfy, fulfill and discharge any and all now existing and hereafter arising duties, terms, provisions, covenants, obligations and liabilities of Creole under the Transferable Creole Policies and with respect to the Insured SpinCo Obligations, both insofar as transferred above (the “Dampkraft Assumption and Novation”); and

 

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

 

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

 

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

 

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

(iii) With respect to each Transferable Creole Policy that is subject to the Dampkraft Assumption and Novation, the aggregate of rights, duties, and obligations set forth in subsections (a)(i) and (a)(ii) above shall be treated as the Transferred Dampkraft Policy relating to such Transferable Creole Policy.

(b) No Transfer or Novation of Insured RemainCo Obligations to SpinCo Entities. Except to the extent that the Wholly Retained Creole Policies are determined to cover Insured SpinCo Obligations notwithstanding the absence of any SpinCo Entity as an Insured thereunder, the Wholly Retained Creole Policies are not novated or otherwise affected by the Dampkraft Assumption and Novation. The Transferable Creole Policies are novated to Dampkraft as set forth above only to the extent that one or more SpinCo Entities is an insured thereunder. To the extent that RemainCo Entities are insureds under the Transferable Creole Policies, the Parties acknowledge that Creole and not Dampkraft shall continue to observe, pay, perform, satisfy, fulfill and discharge any and all now existing and hereafter arising duties, terms, provisions, covenants, obligations and liabilities of the Insurer under the Transferable Creole Policies. The Parties further acknowledge that Creole and not Dampkraft shall continue to observe, pay, perform, satisfy, fulfill and discharge any and all now existing and hereafter arising duties, terms, provisions, covenants, obligations and liabilities of the Insurer with respect to the Insured RemainCo Obligations.

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

 

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Assumption Time, apply as a single, joint aggregate limit of liability as between (i) the resulting Transferred Dampkraft Policy and (ii) the portions of the Transferable Creole Policy that are retained pursuant to Section 2(b) above. Disputes as to priority of claims and/or allocation of the single, joint aggregate limit of liability shall be resolved pursuant to Section 12 hereof.

(d) Transfer of Assets. In consideration of Dampkraft’s agreement to assume and discharge Creole’s obligations under each Transferable Creole Policy, Creole agrees to transfer to Dampkraft no later than [●] days after the Effective Date all of the assets, liabilities, rights and obligations comprising the aggregate value of the Loss Portfolio.

3. Amendments. Neither this Agreement nor any provision hereof may be amended, changed, waived, discharged or terminated except by a written instrument signed by each Party.

4. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. Neither this Agreement nor any right or obligation hereunder may be assigned or conveyed by any Party without the prior written consent of the other Parties, which consent shall not be unreasonably withheld.

5. No Waiver. The failure or refusal by any Party to exercise any rights granted hereunder shall not constitute a waiver of such rights or preclude the subsequent exercise thereof, and no oral communication shall be asserted as a waiver of any such rights hereunder unless such communication shall be confirmed in a writing plainly expressing an intent to waive such rights and signed by the Party against whom such waiver is asserted.

6. Counterparts. This Agreement may be executed in any number of counterparts each of which when so executed and delivered shall constitute an original, but such counterparts together shall constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile or email transmission shall constitute effective execution and delivery of this Agreement as to the Parties and may be used in lieu of the original Agreement for all purposes. Signatures of the Parties and other Persons signatory hereto transmitted by facsimile or email shall be deemed to be their original signatures for all purposes.

7. No Third Party Beneficiary. This Agreement shall not be deemed to give any right or remedy to any third party whatsoever unless otherwise specifically granted hereunder.

8. Parties’ Representations. As of the Effective Date, each of the Parties expressly represents on its own behalf: (a) it is an entity in good standing in its jurisdiction of organization; (b) it has all requisite corporate power and authority to enter into this Agreement, and to perform its obligations hereunder; (c) the execution and delivery by it of this Agreement, and the performance by it of its obligations under this Agreement, have been duly authorized by all necessary corporate or other action; (d) this Agreement, when duly executed and delivered by it, and subject to the due execution and delivery hereof by the other Parties, will be a valid and binding obligation of it, enforceable against it, its successors and permitted assigns, in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity

 

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principles; (e) the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby in accordance with the respective terms and conditions hereof will not (i) violate any provision of its Organizational Documents, (ii) violate any applicable order, judgment, injunction, award or decree of any court, arbitrator or governmental or regulatory body against it, or binding upon it, or any agreement with, or condition imposed by, any governmental or regulatory body, foreign or domestic, binding upon it as of the date hereof, or (iii) violate any agreement, contract, obligation, promise or undertaking that is legally binding and to which it is a party or by which it is bound; and (f) the signatory hereto on behalf of it is duly authorized and legally empowered to enter into this Agreement on its behalf.

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

 

If to Dampkraft: Dampkraft Insurance Company, c/o Babcock & Wilcox
or any SpinCo Entity: Enterprises, Inc.
13024 Ballantyne Corporate Place, Suite 700
Charlotte, North Carolina 28277
Attention: Senior Manager - Insurance (with copy to General Counsel)
Telephone: [●]
Facsimile: [●]
Electronic Mail: [●]
If to Creole: Creole Insurance Company
or any RemainCo Entity:
Creole Insurance Company, c/o The Babcock & Wilcox Company, Inc.
11525 North Community House Road
Suite 600
Charlotte, NC 28277
Attention: Chief Risk Officer
(with copy to General Counsel)
Telephone: [●]
Facsimile: [●]
Electronic Mail: [●]

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

 

  (A) upon personal delivery; or

 

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

 

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

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

12. Dispute Resolution. Any and all disputes arising out of this Agreement shall be resolved in accordance with the procedures set for in Section V of the Master Separation Agreement. Issues as to whether a given obligation is an Insured SpinCo Obligation or an Insured RemainCo Obligation shall be resolved as set forth in the ALAA, which resolution shall be binding for all purposes of this Agreement. Any such assertions may be made, to the extent appropriate, in connection with the dispute resolution under the ALAA but may not be made as a basis for challenging such resolution.

13. Severability. If any term or other provision of this Agreement or the Exhibits attached hereto is determined by a nonappealable decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the court, administrative agency or arbitrator shall interpret this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable.

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

 

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

[Remainder of Page Intentionally Left Blank]

 

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

 

THE BABCOCK & WILCOX COMPANY
By:

 

Name:
Title:
CREOLE INSURANCE COMPANY
By:

 

Name:
Title:
BABCOCK & WILCOX ENTERPRISES, INC.
By:

 

Name:
Title:
DAMPKRAFT INSURANCE COMPANY
By:

 

Name:
Title:

ACKNOWLEDGED AND AGREED FOR PURPOSES OF SECTION 2:

SPINCO ENTITIES:

DAMPKRAFT INSURANCE COMPANY

ADTEC AB

GOTAVERKEN EMISSION TECHNOLOGY AB

AMERICON EQUIPMENT SERVICES, INC.

AMERICON, INC.

B&W DE PANAMA, INC.

B&W PGG LUXEMBOURG CANADA HOLDINGS SARL

B&W PGG LUXEMBOURG FINANCE SARL

B&W PGG LUXEMBOURG HOLDINGS SARL

BABCOCK & WILCOX CONSTRUCTION CO., INC.

BABCOCK & WILCOX MONTERREY FINANCE SARL

BABCOCK & WILCOX DE MONTERREY S.A. DE C.V.

BABCOCK & WILCOX EBENSBURG POWER, LLC

BABCOCK & WILCOX EQUITY INVESTMENTS, LLC

 

By:

 

Name:

 

Title:

 

BABCOCK & WILCOX GLOBAL SALES & SERVICES – CHILE SPA

BABCOCK & WILCOX GLOBAL SALES & SERVICES SARL

BABCOCK & WILCOX INDIA HOLDINGS, INC.

BABCOCK & WILCOX INDIA PRIVATE LIMITED

BABCOCK & WILCOX INTERNATIONAL INVESTMENTS CO., INC.

BABCOCK & WILCOX INTERNATIONAL SALES AND SERVICE CORPORATION

BABCOCK & WILCOX INTERNATIONAL, INC.

BABCOCK & WILCOX POWER GENERATION GROUP CANADA CORP.

BABCOCK & WILCOX POWER GENERATION GROUP, INC.

BABCOCK & WILCOX VOLUND A/S

DELTA POWER SERVICES, LLC

DIAMOND OPERATING CO., INC.

DIAMOND POWER AUSTRALIA HOLDINGS, INC.

DIAMOND POWER CENTRAL & EASTERN EUROPE S.R.O.

DIAMOND POWER CHINA HOLDING, INC.

DIAMOND POWER DO BRASIL LIMITADA

 

By:

 

Name:

 

Title:

 

DIAMOND POWER EQUITY INVESTMENTS, INC.

DIAMOND POWER FINLAND OY

DIAMOND POWER GERMANY GMBH

DIAMOND POWER INTERNATIONAL, INC.

DIAMOND POWER MACHINE (HUBEI) CO., INC.

DIAMOND POWER SERVICES S.E.A. LTD.

DIAMOND POWER SPECIALTY (PROPRIETARY) LIMITED

DIAMOND POWER SPECIALTY LIMITED

DIAMOND POWER SWEDEN AB

DPS ANSON, LLC

DPS BERLIN, LLC

DPS CADILLAC, LLC

DPS FLORIDA, LLC

DPS GREGORY, LLC

DPS MECKLENBURG, LLC

DPS PIEDMONT, LLC

EBENSBURG ENERGY, LLC

EBENSBURG INVESTORS LIMITED PARTNERSHIP

 

By:

 

Name:

 

Title:

 

EBENSBURG POWER COMPANY

GOTAVERKEN MILIJO AB

LOIBL ALLEN-SHERMAN HOFF GMBH

MEGTEC ACQUISITION, LLC

MEGTEC ENERGY & ENVIRONMENTAL LLC

MEGTEC ENVIRONMENTAL LIMITED

MEGTEC EUROPE COOPERATIEF U.A.

MEGTEC HOLDINGS, INC.

MEGTEC IEPG BV

MEGTEC INDIA HOLDINGS, LLC

MEGTEC PPG BV

MEGTEC SYSTEMS AB

MEGTEC SYSTEMS AMAL AB

MEGTEC SYSTEMS AUSTRALIA, INC.

MEGTEC SYSTEMS INDIA PRIVATE LTD.

MEGTEC SYSTEMS LIMITED

MEGTEC SYSTEMS S.A.S.

MEGTEC SYSTEMS SHANGHAI LTD.

MEGTEC SYSTEMS, INC.

MEGTEC THERMAL ENERGY & ENVIRONMENTAL

TECHNOLOGY (SHANGHAI), LTD.

 

By:

 

Name:

 

Title:

 

MEGTEC TURBOSONIC INC.

MEGTEC TURBOSONIC TECHNOLOGIES, INC.

MTS ASIA, INC.

MTS ENVIRONMENTAL GMBH

O&M HOLDING COMPANY

P.T. BABCOCK & WILCOX ASIA

PALM BEACH RESOURCE RECOVERY CORPORATION

POWER SYSTEMS OPERATIONS, INC.

REVLOC RECLAMATION SERVICE, INC.

SERVICIOS DE FABRICACION DE VALLE SOLEADO, S.A. DE C.V.

SERVICIOS PROFESIONALES DE VALLE SOLEADO, S.A. DE C.V.

SOFCO – EFS HOLDINGS LLC

BABCOCK & WILCOX TECHNOLOGY, INC.

BABCOCK & WILCOX HOLDINGS, INC.

 

By:

 

Name:

 

Title:

 

EXHIBIT I – SPINCO ENTITIES

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

Schedule 1.1(d)

Designated SpinCo Entities

 

Reference ID

   

Name

333    Ahahsain Hudson Heat Transfer Co. Ltd
398    Advanced Refractory Technologies, Inc.
   A.M. Lockett & Co., Limited
   Amcermet Corporation
   Applied Synergistics, Inc.
924    ASEA Babcock
235    Ash Acquisition Company
326    B & W Clarion, Inc.
574    B&W Ebensburg Pa., Inc.
383    B&W Fort Worth Power,Inc.
922    B&W Mexicana, S.A. de C.V.
9991    B&W North Branch G.P., Inc.
9990    B&W North Branch L.P., Inc.
586    B&W Saba, Inc.
591    B&W Service Company
   B&W Tubular Products Limited
212    Babcock & Wilcox Asia Investment Co., Inc.
115    Babcock & Wilcox Asia Limited
533    Babcock & Wilcox Canada Leasing Ltd.
   Babcock & Wilcox China Holdings, Inc.
215    Babcock & Wilcox China Investment Co., Inc.
   Babcock & Wilcox Denmark Holdings, LLC
594    Babcock & Wilcox do Brasil Limitada
528    Babcock & Wilcox do Brasil Participacoes Limitada
206    Babcock & Wilcox Egypt SAE
169    Babcock & Wilcox Fibras Ceramicas Limitada
557    Babcock & Wilcox Foreign Sales Corporation
175    Babcock & Wilcox Gama Kazan Teknolojisi A.S.
552    Babcock & Wilcox General Contracting Company
395    Babcock & Wilcox HRSG Company
   Babcock & Wilcox Industries, Ltd.
   Babcock & Wilcox International Construction Co., Inc.
305    Babcock & Wilcox Jonesboro Power, Inc.
   Babcock & Wilcox Refractories limited
323    Babcock & Wilcox Salt City Power, Inc.
322    Babcock & Wilcox Tracy Power, Inc.
314    Babcock & Wilcox Victorville Power, Inc:
727    Babcock & Wilcox Volund France SAS
315    Babcock PFBC, Inc.
559    Babcock Southwest Construction Corporation

Reference ID

   

Name

936    Babcock-Ultrapower Jonesboro
937    Babcock-Ultrapower West Enfield
951    Bailey Beijing Controls Co.,Ltd.
516    Bailey Controls Australia Pty. Limited
517    Bailey Controls International Sales & Services Company, Inc.
954    Bailey Controls Jordan for Process Controls Services, ltd.
563    Bailey Controls Sales & Service (Australia) Pty. Limited
564    Bailey Controls Sales & Services Canada Inc.
561    Bailey do Brasil lnstrumentos Industrials Limitada
114    Bailey International, Inc.
923    Bailey Japan Company Limited
542    Bailey Meter and Controls Company
   Bailey Meter Company
562    Bailey Meter Co. (Japan) Ltd.
   Bailey Meter Company Limited
   Bailey Meter GmbH
   C.C. Moore & Company Engineers
329    Clarion Energy, Inc.
328    Clarion Power Company
   Control Components France
514    Control Components Italy S.R.L.
   Control Components, Inc. (California)
   Control Components, Inc. (Delaware)
948    Control Components Japan
545    Detroit Broach & Machine Corporation
551    Diamond Blower Company Limited
   Diamond Canapower Ltd.
518    Diamond Power lmportacao e Exportacao Ltda.
144    Diamond Power Korea Inc.
526    Diamond Power Specialty (Japan) Ltd.
558    Diamond Power Specialty (Proprietary) Limited
546    Diamond Power Specialty Corporation (Delaware)
   Diamond Power Speciality Corporation (Ohio)
529    Diamond Power Specialty GmbH
   DPS Berkeley, LLC
   DPS Lowell Cogen, LLC
   DPS Michigan, LLC
   DPS Mojave, LLC
   DPS Sabine, LLC
332    Ebensburg Energy, Inc.
397    Ejendomsaktieselskabet Falkevej2
968    EPC Business Trust
919    Especialidades Termomecanicas, S.A. de C.V.

Reference ID

   

Name

550    Ferry-Diamond Engineering Company Limited
928    Fibras Ceramicas C.A.
509    Fibras Ceramicas, Inc.
547    Globe Steel Tubes Corporation
   Greer Land Co.
   Holmes Insulations Limited
   Ivey-Cooper Services, L.L.C.
941    lsolite Babcock Refractories Company, Ltd.
927    lsolite Eastern Union Refractories Co., Ltd.
920    KBW Gasification Systems, Inc.
512    LT Produkter i Skutskar AB
938    Maine Power Services
345    McDermott Heat Transfer Company
344    McDermott Productos Industriales de Mexico, S.A. de C.V.
946    Medidores Bailey, S.A. de C.V.
942    Morganite Ceramic Fibres Limited
943    Morganite Ceramic Fibres Pty. Limited
944    Morganite Ceramic Fibres S. A.
544    National Ecology (Alabama) Incorporated
575    National Ecology (Utah) Incorporated
   National Ecology Company
976    Nooter/Eriksen - Babcock & Wilcox, L.L.C.
933    North American CWF Partnership
9989    North Branch Power Company L.P.
971    North County Operations Associates
   North County Recycling, Inc.
1153    P. T. Heat Exchangers Indonesia
934    Palm Beach Energy Associates
   Piedmont Tool Machine Company
581    Power Systems Sunnyside Operations GP, Inc.
583    Power Systems Sunnyside Operations LP, Inc.
508    Productos de Caolin, Inc,
577    PSO Caribbean, Inc.
932    South Point CWF
556    Sunland Construction Co., Inc.
988    Sunnyside Cogeneration Associates
582    Sunnyside II, Inc.
992    Sunnyside II, L.P
303    Sunnyside Ill, Inc.
993    Sunnyside Operations Associates L.P.
571    Termobloc Industria E Comercio Ltda.
953    Thermax Babcock & Wilcox Limited
502    TLT - Babcock, Inc.
1152    W.E. Smith Hudson Pty. Ltd.

Schedule 1.1(l)

SpinCo Subsidiaries1

 

Reference ID

   

Name

   

Jurisdiction

   

Formation

   Dampkraft Insurance Company    South Carolina    4/14/2015
   Adtec AB      
   Gotaverken Emission Techology AB      
553    Americon Equipment Services, Inc.    Delaware    12/3/1985
554    Americon, Inc.    Delaware    3/29/1985
127    B&W de Panama, Inc.    Panama    3/5/1986
2075    B&W PGG Luxembourg Canada Holdings SARL    Luxembourg    11/21/2013
2054    B&W PGG Luxembourg Finance SARL    Luxembourg    11/15/2011
2053    B&W PGG Luxembourg Holdings SARL    Luxembourg    11/15/2011
555    Babcock & Wilcox Construction Co., Inc.    Delaware    3/29/1985
2107    Babcock & Wilcox Monterrey Finance SARL    Luxembourg    12/5/2014
2011    Babcock & Wilcox de Monterrey S.A. de C.V.    Mexico    9/16/2009
327    Babcock & Wilcox Ebensburg Power, LLC    Delaware    12/2/1986
302    Babcock & Wilcox Equity Investments, LLC    Delaware    12/10/1984
2080    Babcock & Wilcox Global Sales & Services - Chile SpA    Chile    5/19/2014
2081    Babcock & Wilcox Global Sales & Services SARL    Luxembourg    3/19/2014
2028    Babcock & Wilcox India Holdings, Inc.    Delaware    3/4/2010
598    Babcock & Wilcox India Private Limited    India    2/3/1999
126    Babcock & Wilcox International Investments Co., Inc.    Panama    10/23/1985
530    Babcock & Wilcox International Sales and Service Corporation    Delaware    9/27/1973
541    Babcock & Wilcox International, Inc.    Delaware    5/20/1981
2072    Babcock & Wilcox Power Generation Group Canada Corp.    Nova Scotia    11/27/2013
500    Babcock & Wilcox Power Generation Group, Inc.    Delaware    12/16/1977
599    Babcock & Wilcox Volund A/S    Denmark    11/22/1999
1988    Delta Power Services, LLC    Delaware    3/1/2001
766    Diamond Operating Co., Inc.    Delaware    3/1/2002
1572    Diamond Power Australia Holdings, Inc.    Delaware    9/3/2002
1984    Diamond Power Central & Eastern Europe s.r.o.    Czech Republic    3/25/2008

 

1  NTD: This schedule to be updated to include names of any entities formed for the Spin that will be within the SpinCo Group.

Reference ID

   

Name

   

Jurisdiction

   

Formation

1573    Diamond Power China Holdings, Inc.    Delaware    9/3/2002
521    Diamond Power do Brasil Limitada    Brazil    2/13/1998
1574    Diamond Power Equity Investments, Inc.    Delaware    9/3/2002
525    Diamond Power Finland OY    Finland    3/14/1985
504    Diamond Power Germany GmbH    Germany    10/30/2001
597    Diamond Power International, Inc.    Delaware    3/6/1997
949    Diamond Power Machine (Hubei) Co., Inc.    China    4/20/2004
1908    Diamond Power Services S.E.A. Ltd.    Thailand    2/22/2000
522    Diamond Power Specialty (Proprietary) Limited    Republic of South Africa    4/29/1998
523    Diamond Power Specialty Limited    United Kingdom    3/5/1913
524    Diamond Power Sweden AB    Sweden    3/2/1965
2079    DPS Anson, LLC    Delaware    1/15/2014
2044    DPS Berlin, LLC    Delaware    2/24/2011
1997    DPS Cadillac, LLC    Delaware    2/17/2006
1995    DPS Florida, LLC    Delaware    10/25/2005
1993    DPS Gregory, LLC    Delaware    11/10/2004
1992    DPS Mecklenburg, LLC    Delaware    9/27/2004
9999    DPS Piedmont, LLC    Delaware    6/29/2010
2082    Ebensburg Energy, LLC    Delaware    3/27/2014
967    Ebensburg Investors Limited Partnership    Pennsylvania    3/26/1992
331    Ebensburg Power Company    Pennsylvania    12/9/1986
2027    Gotaverken Milijo AB    Sweden    12/3/2003
2055    Loibl Allen-Sherman Hoff GmbH    Germany    12/16/1993
2104    MEGTEC Acquisition, LLC    Delaware    8/8/2008
2097    MEGTEC Energy & Environmental LLC    Delaware    4/22/2008
2092    MEGTEC Environmental Limited    United Kingdom    12/12/2003
2100    MEGTEC Europe Cooperatief U.A.    Netherlands    8/20/2008
2083    MEGTEC Holdings, Inc.    Delaware    8/8/2008
2089    MEGTEC IEPG BV    Netherlands   
2103    MEGTEC India Holdings, LLC    Delaware    4/22/2008
2101    MEGTEC PPG BV    Netherlands    9/17/2008
2091    MEGTEC Systems AB    Sweden    8/8/1970
2095    MEGTEC Systems Amal AB    Sweden    7/17/2001
2098    MEGTEC Systems Australia, Inc.    Delaware    1/12/1999
2087    MEGTEC Systems India Private Ltd.    India    12/19/2005
2094    MEGTEC Systems Limited    United Kingdom    9/17/2008
2093    MEGTEC Systems S.A.S.    France    11/23/1974
2086    MEGTEC Systems Shanghai Ltd.    China   
2096    MEGTEC Systems, Inc.    Delaware    7/7/1997

Reference ID

   

Name

   

Jurisdiction

   

Formation

2085    MEGTEC Thermal Energy & Environmental Technology (Shanghai), LTD.    China   
2088    MEGTEC TurboSonic Inc.    Ontario    7/1/2000
2099    MEGTEC TurboSonic Technologies, Inc.    Delaware    4/14/1961
2101    MTS Asia, Inc.    Delaware    6/17/2001
2090    MTS Environmental GmbH    Germany    2/27/2008
1989    O&M Holding Company    Delaware    6/26/2008
707    P.T. Babcock & Wilcox Asia    Indonesia    8/24/2000
534    Palm Beach Resource Recovery Corporation    Florida    10/26/1984
560    Power Systems Operations, Inc.    Delaware    10/22/1985
568    Revloc Reclamation Service, Inc.    Delaware    7/2/1990
2013    Servicios de Fabricacion de Valle Soleado, S.A. de C.V.    Mexico    7/31/2009
2012    Servicios Profesionales de Valle Soleado, S.A. de C.V.    Mexico    7/31/2009
767    SOFCo - EFS Holdings LLC    Delaware    2/22/2002
595    Babcock & Wilcox Technology, Inc.    Delaware    3/6/1997
   Babcock & Wilcox Holdings, Inc.    Delaware    4/20/2015

EXHIBIT II – REMAINCO ENTITIES

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

Schedule 1.1(b)

Designated RemainCo Entities

 

Reference ID

   

Name

2037    American Centrifuge Manufacturing, LLC
460    B&W Energy Investments, Inc.
950    B&W Fuel Company
535    B&W Fuel, Inc.
537    B&W Nuclear Service Company
960    B&W Nuclear Service Company
536    B&W Nuclear, Inc.
381    B&W Special Projects, Inc.
569    B&W Triso Corporation
573    B&W/OHM Weldon Spring, Inc.
565    Babcock & Wilcox Government Services Company
   Babcock & Wilcox Michoud Operations, LLC
   Babcock & Wilcox Modular Nuclear Energy, LLC
2007    Babcock & Wilcox Nevada, LLC
   Babcock & Wilcox Nuclear Services (U.K.) Limited
945    Babcock-Brown Boveri Reaktor GmbH
   BCE Parts Ltd.
   Burlington Niche Services Ltd.
   BWXT Hanford Company
   BWXT of Idaho, Inc.
   BWXT of Ohio, Inc.
590    BWXT Protec, Inc.
   C3 Nuclear Limited
   Columbia Basin Ventures, LLC
321    Conam Nuclear, Inc.
1914    CTR Solutions, LLC
   DM Petroleum Operations Company
961    Enserch Environmental Management Company, Inc.
461    International Disarmament Corporation
   Isotek Systems, LLC
   Nuclear Materials and Equipment Corporation
   Nuclear Production Partners, LLC
958    Olin Pantex Inc.
   Rocky Flats Technical Associates, Inc.
1980    Savannah River Alliance LLC
2008    Savannah River Tactical Services LLC
570    Triso
   Tubesolve Ltd.

Schedule 1.1(e)

RemainCo Subsidiaries2

 

Reference ID

   

Name

   

Jurisdiction

   

Formation

2058    B&W NE Luxembourg SARL    Luxembourg    6/7/2012
2046    B&W Nuclear Maintenance Services, Inc.    Delaware    3/23/2011
532    Babcock & Wilcox Canada Ltd.    Ontario    6/5/1922
2049    Babcock & Wilcox Commercial Power, Inc.    Delaware    6/15/2011
2014    Babcock & Wilcox Conversion Services, LLC    Delaware    7/14/2009
2002    Babcock & Wilcox Intech, Inc.    Tennessee    7/29/1994
2048    Babcock & Wilcox International Technical Services, Inc.    Delaware    6/1/2011
380    Babcock & Wilcox Investment Company    Delaware    7/12/1990
2042    Babcock & Wilcox Modular Reactors LLC    Delaware    12/21/2010
2056    Babcock & Wilcox mPower, Inc.    Delaware    1/11/2012
2071    Babcock & Wilcox NOG Technologies, Inc.    Delaware    6/12/2013
2059    Babcock & Wilcox Nuclear Energy Europe SAS    France    7/5/2012
1967    Babcock & Wilcox Nuclear Energy, Inc.    Delaware    5/23/2007
1974    Babcock & Wilcox Nuclear Operations Group, Inc.    Delaware    11/20/2007
2035    BWSR, LLC    Delaware    5/19/2010
1961    Babcock & Wilcox Technical Services (U.K.) Limited    United Kingdom    12/19/2006
1970    Babcock & Wilcox Technical Services Clinch River, LLC    Delaware    5/16/2007
572    Babcock & Wilcox Technical Services Group, Inc.    Delaware    12/11/1991
587    Babcock & Wilcox Technical Services Savannah River Company    Delaware    9/1/1995
710    Babcock & Wilcox Technical Services Y-12, LLC    Delaware    4/20/2000
596    Babcock & Wilcox Government and Nuclear Operations, Inc.    Delaware    3/19/1997
580    BWXT Federal Services, Inc.    Delaware    10/13/1994
1576    BWXT Washington, Inc.    Delaware    9/29/2004
189    Creole Insurance Company, Ltd.    South Carolina    6/7/1973
2062    Generation mPower Canada Ltd    Saskatchewan    10/17/2012
2043    Generation mPower LLC    Delaware    12/16/2010
2009    Idaho Treatment Group, LLC    Delaware    12/22/2008

 

2  NTD: This schedule to be updated to include names of entities formed for the Spin that will be within the RemainCo Group.

Reference ID

   

Name

   

Jurisdiction

   

Formation

2003    Intech International, Inc.    Ontario    12/17/1997
2110    Kansas City Advanced Manufacturing, LLC    Delaware    1/27/2015
1968    Marine Mechanical Corporation    Delaware    2/3/1994
2005    NFS Holdings, Inc.    Delaware    9/25/2007
2004    NOG-Erwin Holdings, Inc.    Delaware    7/30/2008
2006    Nuclear Fuel Services, Inc.    Delaware    9/25/2007
2029    The Babcock & Wilcox Company    Delaware    3/8/2010
3087    BWXT Foreign Holdings, LLC    Delaware    4/20/2015
   BWXT Canada Holdings Corp.    Nova Scotia