Document:

EX-10.1

 Exhibit 10.1 

TRANSITION SERVICES AGREEMENT 

by and between 
 VECTOR
GROUP LTD. 
 and 

DOUGLAS ELLIMAN INC. 

Dated as of December 21, 2021 

 TABLE OF CONTENTS 
  

							
	ARTICLE I	  			
	DEFINITIONS	  			
	 Section 1.1.
	 	General	  	 	1	 
	 Section 1.2.
	 	Reference; Interpretation	  	 	3	 
		
	ARTICLE II	  			
	SERVICES	  			
			
	 Section 2.1.
	 	Services	  	 	3	 
	 Section 2.2.
	 	Standard of Service	  	 	4	 
	 Section 2.3.
	 	Additional Services	  	 	4	 
		
	ARTICLE III	  			
	LICENSES AND PERMITS	  			
		
	ARTICLE IV	  			
	PAYMENT	  			
			
	 Section 4.1.
	 	General	  	 	4	 
	 Section 4.2.
	 	Additional Expenses	  	 	4	 
	 Section 4.3.
	 	Adjustments	  	 	5	 
	 Section 4.4.
	 	Invoices	  	 	5	 
	 Section 4.5.
	 	Failure to Pay	  	 	5	 
	 Section 4.6.
	 	Termination of Services	  	 	6	 
		
	ARTICLE V	  			
	INDEMNIFICATION	  			
			
	 Section 5.1.
	 	Indemnification of Party Receiving Services	  	 	6	 
	 Section 5.2.
	 	Indemnification of Party Providing Services	  	 	6	 
	 Section 5.3.
	 	Third Party Claims	  	 	6	 
	 Section 5.4.
	 	Indemnification Payments	  	 	8	 
	 Section 5.5.
	 	Survival	  	 	8	 
		
	ARTICLE VI	  			
	COOPERATION; CONFIDENTIALITY; TITLE	  			
			
	 Section 6.1.
	 	Services Cooperation	  	 	8	 
	 Section 6.2.
	 	Distribution Cooperation	  	 	8	 
	 Section 6.3.
	 	Confidentiality	  	 	9	 
	 Section 6.4.
	 	Internal Use; Title, Copies, Return	  	 	9	 
		
	ARTICLE VII	  			
	TERM	  			
	 Section 7.1.
	 	Duration	  	 	9	 
	 Section 7.2.
	 	Early Termination by Spinco	  	 	9	 
	 Section 7.3.
	 	Early Termination by Vector	  	 	10	 
	 Section 7.4.
	 	Suspension Due to Force Majeure	  	 	10	 
	 Section 7.5.
	 	Consequences of Termination	  	 	10	 

							
	ARTICLE VIII	  			
	RECORDS; DATA SECURITY	  			
	 Section 8.1.
	 	Records Retention	  	 	10	 
	 Section 8.2.
	 	Data Security	  	 	10	 
		
	ARTICLE IX	  			
	DISPUTE RESOLUTION	  			
			
	 Section 9.1.
	 	Negotiation	  	 	11	 
	 Section 9.2.
	 	Mediation	  	 	11	 
	 Section 9.3.
	 	Arbitration	  	 	11	 
	 Section 9.4.
	 	Arbitration Period	  	 	12	 
	 Section 9.5.
	 	Treatment of Negotiations, Mediation and Arbitration	  	 	12	 
	 Section 9.6.
	 	Continuity of Service and Performance	  	 	12	 
	 Section 9.7.
	 	Consolidation	  	 	12	 
		
	ARTICLE X	  			
	NOTICES	  			
		
	ARTICLE XI	  			
	MISCELLANEOUS	  			
			
	 Section 11.1.
	 	Taxes	  	 	13	 
	 Section 11.2.
	 	Relationship of Parties	  	 	13	 
	 Section 11.3.
	 	Complete Agreement; Construction	  	 	13	 
	 Section 11.4.
	 	Other Agreements	  	 	13	 
	 Section 11.5.
	 	Counterparts	  	 	13	 
	 Section 11.6.
	 	Survival of Agreements	  	 	13	 
	 Section 11.7.
	 	Waivers and Consents	  	 	13	 
	 Section 11.8.
	 	Amendments	  	 	13	 
	 Section 11.9.
	 	Assignment	  	 	13	 
	 Section 11.10.
	 	Successors and Assigns	  	 	14	 
	 Section 11.11.
	 	No Circumvention	  	 	14	 
	 Section 11.12.
	 	Subsidiaries	  	 	14	 
	 Section 11.13.
	 	Third Party Beneficiaries	  	 	14	 
	 Section 11.14.
	 	Titles and Headings	  	 	14	 
	 Section 11.15.
	 	Exhibits and Schedules	  	 	14	 
	 Section 11.16.
	 	Governing Law	  	 	14	 
	 Section 11.17.
	 	Consent to Jurisdiction	  	 	14	 
	 Section 11.18.
	 	Specific Performance	  	 	14	 
	 Section 11.19.
	 	WAIVER OF JURY TRIAL	  	 	14	 
	 Section 11.20.
	 	Severability	  	 	15	 
	 Section 11.21.
	 	Interpretation	  	 	15	 
	 Section 11.22.
	 	No Duplication; No Double Recovery	  	 	15	 
	 Section 11.23.
	 	DISCLAIMER OF WARRANTIES	  	 	15	 

 TRANSITION SERVICES AGREEMENT 

This TRANSITION SERVICES AGREEMENT, dated as of December 21, 2021 (this “Agreement”), between Vector Group Ltd., a Delaware corporation
(“Vector”), and Douglas Elliman Inc., a Delaware corporation (“Spinco”). Each of Vector and Spinco is referred to herein as a “Party” and, collectively, as the “Parties”. 

W I T N E S S E T H: 
 WHEREAS,
Vector and Spinco have entered into a Distribution Agreement, dated as of the date hereof (the “Distribution Agreement”), which sets forth the terms pursuant to which Vector will transfer certain assets to Spinco and Vector will
distribute the common stock of Spinco to the holders of Vector common stock on a pro rata basis (including Vector common stock underlying outstanding stock option awards and restricted stock awards) (the “Distribution”); and 

WHEREAS, in connection with the Distribution, and in order to ensure an orderly transition under the Distribution Agreement, it will be
necessary for each of the Parties to provide to the other the Services described herein for a transitional period. 
 NOW, THEREFORE, in
consideration of the foregoing and the mutual agreements, provisions and covenants contained in this Agreement, the Parties hereby agree as follows: 

ARTICLE I 
 DEFINITIONS 

Section 1.1. General. As used in this Agreement, the following terms have the respective meanings set forth below: 

“AAA” shall have the meaning set forth in Section 9.2. 

“Additional Services” shall have the meaning set forth in Section 2.3. 

“Affiliate” shall, subject to the next succeeding sentence, have the meaning assigned to that term in the Distribution
Agreement. For clarity, unless the context otherwise requires, a reference to a Person’s “Affiliates” shall be deemed to mean such Person’s Affiliates following the Distribution; provided that, for the avoidance of doubt,
for purposes of this Agreement Spinco and Vector shall not be considered Affiliates. 
 “Agreement” shall have the meaning
set forth in the preamble. 
 “Agreement Disputes” shall have the meaning set forth in Section 9.1. 

“Applicable Privacy Laws” shall have the meaning set forth in Section 8.2. 

“Applicable Rate” shall mean the Prime Rate plus three percent (3%) per annum. 

“Bankruptcy Event” with respect to a Party shall mean the filing of an involuntary petition in bankruptcy or similar
proceeding against such Party seeking its reorganization, liquidation or the appointment of a receiver, trustee or liquidator for it or for all or substantially all of its assets, whereupon such petition shall not be dismissed within sixty
(60) days after the filing thereof, or if such Party shall (i) apply for or consent in writing to the appointment of a receiver, trustee or liquidator of all or substantially all of its assets, (ii) file a voluntary petition or admit
in writing its inability to pay its debts as they become due, (iii) make a general assignment for the benefit of creditors, (iv) file a petition or an answer seeking reorganization or an arrangement with its creditors or take advantage of
any insolvency law with respect to itself as debtor, or (v) file an answer admitting the material allegations of a petition filed against it in any bankruptcy, reorganization, insolvency proceedings or any similar proceedings. 

 “Business Day” shall mean any day other than a Saturday, a Sunday or a day
on which banks in New York City, New York are authorized or obligated by law or executive order to close. 
 “Change of
Control” of a company shall mean an event or series of events by which any person or group (so long as such “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of Securities and Exchange Act of 1934,
as amended (the “Exchange Act”)) beneficially owns (within the meaning of Rule 13d-3 (as in effect on the effective date of this Agreement) promulgated under the Exchange Act), in the
aggregate, more than fifty percent (50%) of the shares of the capital stock of such company, having sufficient votes to elect (or otherwise designate) at such time a majority of the members of the board of directors of such company. 

“Commencement Date” shall have the meaning ascribed to that term in Section 7.1. 

“Dispute Notice” shall have the meaning set forth in Section 9.1. 

“Distribution” shall have the meaning set forth in the preamble. 

“Distribution Agreement” shall have the meaning set forth in the preamble. 

“Existing Services” shall have the meaning set forth in Section 4.3. 

“Fees” shall have the meaning set forth in Section 4.3. 

“Indemnifying Party” shall have the meaning set forth in Section 5.3. 

“Indemnitee” shall have the meaning set forth in Section 5.3. 

“Information Security Incident” shall have the meaning set forth in Section 8.2. 

“Loss” shall mean any and all damages, losses, deficiencies, Liabilities, obligations, penalties, judgments, settlements,
claims, payments, fines, interest, costs and expenses (including the costs and expenses of any and all Actions and demands, assessments, judgments, settlements and compromises relating thereto and the reasonable costs and expenses of
attorneys’, accountants’, consultants’ and other professionals’ fees and expenses incurred in the investigation or defense thereof or the enforcement of rights hereunder), excluding special, consequential, indirect and/or
punitive damages (other than special, consequential, indirect and/or punitive damages awarded to any third party against an Indemnitee). 

“Mediation Period” shall have the meaning set forth in Section 9.2. 

“New York Courts” shall have the meaning set forth in Section 11.15. 

“Outside Notice Date” shall have the meaning set forth in Section 5.3. 

“Overlap Individuals” shall mean Persons who are directors of both Vector and Spinco or employees of both Vector and Spinco
if such employee is compensated by both companies. 
 “Party” shall have the meaning set forth in the preamble. 

“Person” shall mean any natural person, corporation, business trust, limited liability company, joint venture, association,
company, partnership or government, or any agency or political subdivision thereof. 
 “Personal Information” shall mean
any information that (i) identifies, relates to, describes, is reasonably capable of being associated with or could reasonably be linked, directly or indirectly, with, an individual, browser, device or household, or (ii) is considered
“personally identifiable information,” “personal data” or a similar term under applicable law. 

  
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 “Prime Rate” shall mean the rate per annum publicly announced by Citibank,
N.A. (or successor thereto) from time to time as its prime rate in effect at its principal office in New York City. For purposes of this Agreement, any change in the Prime Rate shall be effective on the date such change in the Prime Rate is publicly
announced as effective. 
 “Rules” shall have the meaning set forth in Section 9.3. 

“Services” shall mean, collectively, the Spinco Services and the Vector Services. 

“Spinco” shall have the meaning set forth in the preamble. 

“Spinco Services” shall mean those transitional services, including any Additional Services, to be provided by Spinco to
Vector set forth on Schedule A hereto to assist Vector in operating Vector’s business following the Distribution. Services or actions of Overlap Individuals shall not be considered to be Spinco Services under this Agreement unless expressly
agreed in writing by both Parties. 
 “Third Party” shall mean any Person who is not a Party. 

“Third Party Claim” shall have the meaning set forth in Section 5.3. 

“Vector” shall have the meaning set forth in the preamble. 

“Vector Services” shall mean those transitional services, including any Additional Services, to be provided by Vector to
Spinco set forth on Schedule B hereto to assist Spinco in operating Spinco’s business following the Distribution. Services or actions of Overlap Individuals shall not be considered to be Vector Services under this Agreement unless expressly
agreed in writing by both Parties. 
 Section 1.2. Reference; Interpretation. References in this Agreement to any gender include
references to all genders, and references to the singular include references to the plural and vice versa. The words “include”, “includes” and “including” when used in this Agreement shall be deemed
to be followed by the phrase “without limitation.” Unless the context otherwise requires, references in this Agreement to Articles, Sections and Schedules shall be deemed references to Articles and Sections of, and Schedules to,
this Agreement. Unless the context otherwise requires, the words “hereof”, “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and
not to any particular Article, Section or provision of this Agreement. Any capitalized terms used but not defined in this Agreement have the meanings given to them in the Distribution Agreement. 

ARTICLE II 
 SERVICES 

Section 2.1. Services. (a) Spinco shall provide to Vector each Spinco Service for the term set forth opposite the description of
such Spinco Service in Schedule A. Upon conclusion of the term set forth opposite the description of such Spinco Service, this Agreement shall be deemed terminated with respect to such Spinco Service. Additional Services may be provided by Spinco to
Vector as provided in Section 2.3. At its option, (i) Spinco may cause any Spinco Service it is required to provide hereunder to be provided by a Third Party that is providing, or may from time to time provide, the same or similar services
for Spinco and/or (ii) to the extent any Spinco Service is already provided by a Third Party, Spinco shall have the right to change the Third Party that is providing such Spinco Service to any Third Party that is providing, or may from time to
time provide, the same or similar services for Spinco, at any time upon reasonable notice to Vector. In the event of such a change as permitted in clauses (i) or (ii) above results in a change in cost of Spinco for the provision of such Spinco
Service, the applicable schedules to this agreement shall be updated to reflect the revised fees as allocated to Vector, provided that if such a change results in an increase over 10% of the costs then currently contemplated by Schedule A
such an amendment will require the consent (which consent shall not be unreasonably withheld, conditioned or delayed) of Vector. 

  
 3 

 (b) Vector shall provide to Spinco each Vector Service for the term set forth opposite the
description of such Vector Service in Schedule B. Upon conclusion of the term set forth opposite the description of such Vector Service, this Agreement shall be deemed terminated with respect to such Vector Service. Additional Services may be
provided to Spinco by Vector as provided in Section 2.3. At its option, (i) Vector may cause any Vector Service it is required to provide hereunder to be provided by a Third Party that is providing, or may from time to time provide, the
same or similar services for Vector and/or (ii) to the extent any Vector Service is already provided by a Third Party, Vector shall have the right to change the Third Party that is providing such Vector Service to any Third Party that is
providing, or may from time to time provide, the same or similar services for Vector, at any time upon reasonable notice to Spinco. In the event of such a change as permitted in clauses (i) or (ii) above results in a change in cost of Vector
for the provision of such Vector Service, the applicable schedules to this agreement shall be updated to reflect the revised fees as allocated to Spinco, provided that if such a change results in an increase over 10% of the costs then
currently contemplated by Schedule B such an amendment will require the consent (which consent shall not be unreasonably withheld, conditioned or delayed) of Spinco. 

Section 2.2. Standard of Service. Spinco and Vector shall maintain sufficient resources to perform their respective obligations
hereunder. In performing the Services, Spinco and Vector shall provide substantially the same level of service and use substantially the same degree of care as their respective personnel provided and used in providing such Services prior to
completion of the Distribution for itself (but in no event less than a reasonable degree of care), subject in each case to any provisions set forth on Schedule A or Schedule B with respect to each such Service. Each Party shall provide reasonable
assistance to the other Party in migrating the applicable Services to the recipient of such Services. 
 Section 2.3. Additional
Services. From time to time after the date hereof, the Parties may identify additional services that one Party will provide to the other Party in accordance with the terms of this Agreement (the “Additional Services”). The
Parties shall cooperate and act in good faith to agree on the terms pursuant to which any such Additional Service shall be provided and to amend Schedule A or Schedule B, as applicable, in accordance with such terms. 

ARTICLE III 
 LICENSES AND PERMITS

 Each Party warrants and covenants that all duties and obligations (including with respect to Spinco, all Spinco Services, and with
respect to Vector, all Vector Services) to be performed hereunder shall be performed in compliance with all material applicable federal, state and local laws, rules and regulations. Each Party shall obtain and maintain all material permits,
approvals and licenses necessary or appropriate to perform its duties and obligations (including with respect to Spinco, the Spinco Services, and with respect to Vector, the Vector Services) hereunder and shall at all times comply with the terms and
conditions of such permits, approvals and licenses. 
 ARTICLE IV 

PAYMENT 
 Section 4.1.
General. (a) In consideration for the provision of each of the Spinco Services, Vector shall pay to Spinco the fee set forth for such Spinco Service on Schedule A. 

(b) In consideration for the provision of each of the Vector Services, Spinco shall pay to Vector the fee as set forth for such Vector Service
on Schedule B. 
 Section 4.2. Additional Expenses. (a) In addition to the fees payable in accordance with Section 4.1(a),
Vector shall reimburse Spinco for all reasonable and necessary out-of-pocket costs and expenses incurred by Spinco with respect to Third Parties in connection with the
provision of Spinco Services to Vector pursuant to the terms of this Agreement or paid by Spinco on behalf of Vector that are not already contemplated by Schedule A; provided that if Spinco expects to incur in respect of a Third Party in any
month costs and expenses in excess of $25,000 and not already contemplated by Schedule A, Spinco shall use commercially reasonable efforts to provide to Vector prior to the first day of such month a written notice setting forth Spinco’s
reasonable estimate of the expenses it expects to incur. 

  
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 (b) In addition to the fees payable for expenses in accordance with Section 4.1(b),
Spinco shall reimburse Vector for all reasonable and necessary out-of-pocket costs and expenses incurred by Vector with respect to Third Parties in connection with the
provision of Vector Services to Spinco pursuant to the terms of this Agreement or paid by Vector on behalf of Spinco that are not already contemplated by Schedule B; provided that if Vector expects to incur in respect of a Third Party in any
month costs and expenses in excess of $25,000 and not already contemplated by Schedule B, Vector shall use commercially reasonable efforts to provide to Spinco prior to the first day of such month a written notice setting forth Vector’s
reasonable estimate of the expenses it expects to incur. 
 Section 4.3. Adjustments. Spinco and Vector shall review and
evaluate the fees payable in accordance with Section 4.1 (the “Fees”) for existing services contemplated on Schedule A or Schedule B (the “Existing Services”) for reasonableness annually and work in good faith
to equitably adjust such Fees for Existing Services as appropriate to reflect among other things changes in compensation due to promotions or replacement of personnel at a lower or higher compensation level, increases or decreases in the percentage
of labor-based allocation based on increased or decreased efforts of a particular individual, or adjustments to percentage of non-labor allocations tied to headcounts or other reasonable metrics. Spinco and
Vector shall work together in good faith to determine an appropriate date for such adjustments to take effect (which may be retroactive to the date of such changes). 

Section 4.4. Invoices. (a) Spinco will invoice Vector in U.S. dollars: (i) as of the last day of each calendar month for any
fees payable by Vector in accordance with Section 4.1(a) for Spinco Services listed on Schedule A provided pursuant to the terms of this Agreement during such month; (ii) as of the last day of each calendar month for any amounts payable by
Vector in accordance with Section 4.2(a) (and enclosing invoices from the relevant Third Parties); and (iii) as of the last day of each calendar month for any taxes (excluding income taxes) accrued with respect to the provision of Spinco
Services to Vector during such month. Spinco shall deliver or cause to be delivered to Vector each such invoice within thirty (30) days following the last day of the calendar month to which such invoice relates. Vector shall pay each such
invoice received by electronic funds transfer as follows: in the case of clauses (i) and (ii), within forty-five (45) Business Days of the date on which such invoice was received, and in the case of clause (iii), not later than one
(1) Business Day prior to the due date for such tax payments; provided that Spinco delivers such invoice not less than three (3) Business Days prior to the due date for such tax payments. 

(b) Vector will invoice Spinco in U.S. dollars: (i) as of the last day of each calendar month for any fees payable by Spinco in accordance
with Section 4.1(b) for Vector Services listed on Schedule B provided pursuant to the terms of this Agreement during such month; (ii) as of the last day of each calendar month for any amounts payable by Spinco in accordance with
Section 4.2(b) (and enclosing invoices from such Third Parties); and (iii) as of the last day of each calendar month for any taxes (excluding income taxes) accrued with respect to the provision of Vector Services to Spinco during such
month. Vector shall deliver or cause to be delivered to Spinco each such invoice within thirty (30) days following the last day of the calendar month to which such invoice relates. Spinco shall pay each such invoice received by electronic funds
transfer: in the case of clauses (i) and (ii), within forty-five (45) Business Days of the date on which such invoice was received, and in the case of clause (iii), not later than one (1) Business Day prior to the due date for such
tax payments; provided that Vector delivers such invoice not less than three (3) Business Days prior to the due date for such tax payments. 

Section 4.5. Failure to Pay. Any undisputed amount not paid when due shall be subject to a late payment fee computed daily at a
rate equal to the Applicable Rate from the due date of such amount to the date such amount is paid. Each Party agrees to pay the other Party’s reasonable attorneys’ fees and other costs incurred in collection of any amounts owed to such
other Party hereunder and not paid when due. Notwithstanding anything to the contrary contained herein, in the event either Party fails to make a payment of any undisputed amount when due hereunder, and such failure continues for a period of thirty
(30) days following delivery of notice to such non-paying Party of such failure, the other Party shall have the right to cease provision of such Services to such
non-paying Party until such overdue payment (and any applicable late payment fee accrued with respect thereto) is paid in full. Such right of the Party providing services shall not in any manner limit or
prejudice any of such Party’s other rights or remedies in the event of the non-paying Party’s failure to make payments when due hereunder, including without limitation any rights or remedies pursuant
to Articles V, VII and IX. 

  
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 Section 4.6. Termination of Services. In the event of a termination of Services
pursuant to Article VII, with respect to the calendar month in which such Services cease to be provided, the recipient of such Services shall be obligated to pay a fee for such Services calculated as set forth on Schedule A or Schedule B, as
applicable for the portion of the month prior to the termination. Where possible, the Parties agree to work together cooperatively to seek to have terminations occur as of month ends, but this Agreement shall not limit a Party’s right to effect
a termination in accordance with this Agreement other than as of a month end. 
 ARTICLE V 

INDEMNIFICATION 

Section 5.1. Indemnification of Party Receiving Services. (a) Spinco agrees to indemnify, defend and hold Vector harmless
from and against any Loss to which Vector may become subject arising out of, by reason of or otherwise in connection with the provision hereunder by Spinco of Spinco Services, other than Losses resulting from Vector’s gross negligence, willful
misconduct or breach of its obligations pursuant to this Agreement. Notwithstanding any provision in this Agreement to the contrary, Spinco shall not be liable under this Section 5.1 for any consequential, special or punitive damages (including
but not limited to lost profits), except to the extent that such consequential, special or punitive damages relate to a Loss resulting from a Third Party Claim (as defined below). 

(b) Vector agrees to indemnify, defend and hold Spinco harmless from and against any Loss to which Spinco may become subject arising out of, by
reason of or otherwise in connection with the provision hereunder by Vector of Vector Services, other than Losses resulting from Spinco’s gross negligence, willful misconduct or breach of its obligations pursuant to this Agreement.
Notwithstanding any provision in this Agreement to the contrary, Vector shall not be liable under this Section 5.1 for any consequential, special or punitive damages (including but not limited to lost profits), except to the extent that such
consequential, special or punitive damages relate to a Loss resulting from a Third Party Claim (as defined below). 
 Section 5.2.
Indemnification of Party Providing Services. (a) Vector agrees to indemnify, defend and hold Spinco harmless from and against any Loss to which Spinco may become subject arising out of, by reason of or otherwise in connection with, the
provision hereunder by Spinco of Spinco Services to Vector where such Losses resulted from Vector’s gross negligence, willful misconduct or breach of its obligations pursuant to this Agreement. Notwithstanding any provision in this Agreement to
the contrary, Vector shall not be liable under this Section 5.2 for any consequential, special or punitive damages (including but not limited to lost profits), except to the extent that such consequential, special or punitive damages relate to
a Loss resulting from a Third Party Claim (as defined below). 
 (b) Spinco agrees to indemnify, defend and hold Vector harmless from and
against any Loss to which Vector may become subject arising out of, by reason of or otherwise in connection with the provision hereunder by Vector of Vector Services to Spinco where such Losses resulted from Spinco’s gross negligence, willful
misconduct or breach of its obligations pursuant to this Agreement. Notwithstanding any provision in this Agreement to the contrary, Spinco shall not be liable under this Section 5.2 for any consequential, special or punitive damages (including
but not limited to lost profits), except to the extent that such consequential, special or punitive damages relate to a Loss resulting from a Third Party Claim (as defined below). 

Section 5.3. Third Party Claims. (a) If a claim or demand is made against Vector or Spinco (each, an
“Indemnitee”) by any Third Party (a “Third Party Claim”) as to which such Indemnitee is entitled to indemnification pursuant to this Agreement, such Indemnitee shall notify the Party which is or may be required
pursuant to Section 5.1 or Section 5.2 hereof to make such indemnification (the “Indemnifying Party”) in writing, and in reasonable detail, of the Third Party Claim promptly and in any event by the date (the
“Outside Notice Date”) that is the fifteenth (15th) Business Day after receipt by such Indemnitee of written notice of the Third Party Claim; provided, however, that failure to give such notification shall not affect
the indemnification provided hereunder except to the extent the Indemnifying Party shall have been actually prejudiced as a result of such failure (except that the Indemnifying Party shall not be liable for any expenses incurred during the period
beginning immediately after the Outside Notice Date and ending on the date that the Indemnitee gives the required notice). Thereafter, the Indemnitee shall deliver to the Indemnifying Party, promptly (and in any event within ten Business Days) after
the Indemnitee’s receipt thereof, copies of all notices and documents (including court papers) received by the Indemnitee relating to the Third Party Claim. Notwithstanding anything to the contrary contained herein, neither Party shall be
required to provide notice to the other Party for Third Party Claims for which a Party is providing legal support as part of the Services to the extent that such Party has received notice in such capacity. 

  
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 (b) If a Third Party Claim is made against an Indemnitee, the Indemnifying Party shall be
entitled to participate in the defense thereof and, if it so chooses and acknowledges in writing its obligation to indemnify the Indemnitee therefor, to assume the defense thereof with counsel selected by the Indemnifying Party, provided,
however, that such counsel is not reasonably objected to by the Indemnitee. Should the Indemnifying Party so elect to assume the defense of a Third Party Claim, the Indemnifying Party shall, within thirty (30) days (or sooner if the
nature of the Third Party Claim so requires), notify the Indemnitee of its intent to do so, and the Indemnifying Party shall thereafter not be liable to the Indemnitee for legal or other expenses subsequently incurred by the Indemnitee in connection
with the defense thereof; provided, however, that such Indemnitee shall have the right to employ counsel to represent such Indemnitee if, in such Indemnitee’s reasonable judgment, a conflict of interest between such Indemnitee and
such Indemnifying Party exists in respect of such claim which would make representation of both such parties by one counsel inappropriate, and in such event the fees and expenses of such separate counsel shall be paid by such Indemnifying Party. If
the Indemnifying Party assumes such defense, the Indemnitee shall have the right to participate in the defense thereof and to employ counsel, subject to the proviso of the preceding sentence, at its own expense, separate from the counsel employed by
the Indemnifying Party, it being understood that the Indemnifying Party shall control such defense. The Indemnifying Party shall be liable for the fees and expenses of counsel employed by the Indemnitee for any period during which the Indemnifying
Party has failed to assume the defense thereof (other than during the period prior to the time the Indemnitee shall have given notice of the Third Party Claim as provided above). If the Indemnifying Party so elects to assume the defense of any Third
Party Claim, all of the Indemnitees shall cooperate with the Indemnifying Party in the defense or prosecution thereof, including by providing or causing to be provided agreements, documents, books, records, files and witnesses as soon as reasonably
practicable after receiving any request therefor from or on behalf of the Indemnifying Party, except to the extent that providing or causing the foregoing to be provided would constitute a waiver of any Indemnitee’s attorney-client privilege.

 (c) If the Indemnifying Party acknowledges in writing responsibility under this Article V for a Third Party Claim, then in no event will
the Indemnitee admit any liability with respect to, or settle, compromise or discharge, any Third Party Claim without the Indemnifying Party’s prior written consent; provided, however, that the Indemnitee shall have the right to
settle, compromise or discharge such Third Party Claim without the consent of the Indemnifying Party if the Indemnitee releases the Indemnifying Party from its indemnification obligation hereunder with respect to such Third Party Claim and such
settlement, compromise or discharge would not otherwise adversely affect the Indemnifying Party. If the Indemnifying Party acknowledges in writing liability for a Third Party Claim, the Indemnitee will agree to any settlement, compromise or
discharge of a Third Party Claim that the Indemnifying Party may recommend and that by its terms obligates the Indemnifying Party to pay the full amount of the liability in connection with such Third Party Claim and releases the Indemnitee
completely in connection with such Third Party Claim and that would not otherwise adversely affect the Indemnitee. If an Indemnifying Party elects not to assume the defense of a Third Party Claim, or fails to notify an Indemnitee of its election to
do so as provided herein, such Indemnitee may compromise, settle or defend such Third Party Claim. 
 (d) Notwithstanding the foregoing, the
Indemnifying Party shall not be entitled to assume the defense of any Third Party Claim (and shall be liable for the fees and expenses of counsel incurred by the Indemnitee in defending such Third Party Claim) if the Third Party Claim seeks an
order, injunction or other equitable relief or relief for other than money damages against the Indemnitee which the Indemnitee reasonably determines, after conferring with its counsel, cannot be separated from any related claim for money damages. If
such equitable relief or other relief portion of the Third Party Claim can be so separated from that for money damages, the Indemnifying Party shall be entitled to assume the defense of the portion relating to money damages. 

(e) In the event and to the extent of payment by an Indemnifying Party to any Indemnitee in connection with any Third Party Claim, such
Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third Party Claim against any claimant or
plaintiff asserting such Third Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim. 

  
 7 

 (f) Spinco and Vector shall cooperate as may reasonably be required in connection with the
investigation, defense and settlement of any Third Party Claim. In furtherance of this obligation, the Parties agree that if an Indemnifying Party chooses to defend or to compromise or settle any Third Party Claim, Vector or Spinco, as the case may
be, shall use its commercially reasonable efforts to make available to the other Party, upon written request, their former and then current directors, officers, employees and agents and those of their subsidiaries as witnesses and any records or
other documents within its control or which it otherwise has the ability to make available, to the extent that (i) any such Person, records or other documents may reasonably be required in connection with such defense, settlement or compromise
and (ii) making such Person, records or other documents so available would not constitute a waiver of the attorney-client privilege of Vector or Spinco, as the case may be. At the request of an Indemnifying Party, an Indemnitee shall enter into
a reasonably acceptable joint defense agreement. 
 (g) The remedies provided in this Article V shall be cumulative and shall not preclude
assertion by any Indemnitee of any other rights or the seeking of any and all other remedies against any Indemnifying Party. 

Section 5.4. Indemnification Payments. (a) Indemnification required by this Article V shall be made by periodic payments of the
amount thereof during the course of the investigation or defense, as and when bills are received or any Loss is incurred. If the Indemnifying Party fails to make an indemnification payment required by this Article V within thirty (30) days
after receipt of a bill therefor or notice that a Loss has been incurred, the Indemnifying Party shall also be required to pay interest on the amount of such indemnification payment, from the date of receipt of the bill or notice of the Loss to, but
not including the date of payment, at the Applicable Rate. 
 (b) The amount of any claim by an Indemnitee under this Agreement shall be
(i) reduced to reflect any actual tax savings or insurance proceeds received by any Indemnitee that result from the Losses that gave rise to such indemnity, and (ii) increased by an amount equal to any tax cost incurred by any Indemnitee
that results from receipt of payments under this Article V. 
 Section 5.5. Survival. The Parties’ obligations under this
Article V shall survive the termination of this Agreement. 
 ARTICLE VI 

COOPERATION; CONFIDENTIALITY; TITLE 

Section 6.1. Services Cooperation. Each Party shall use commercially reasonable efforts to cooperate with the other Party in all
matters relating to the provision and receipt of the Services. Such cooperation shall include, but not be limited to, exchanging information, providing electronic access to systems used in connection with the Services, performing true-ups and adjustments and obtaining all consents, licenses, sublicenses or approvals necessary to permit each Party to perform its obligations hereunder. Vector and Spinco shall maintain reasonable documentation
related to the Services and cooperate with each other in making such information available to the other Party as needed. 

Section 6.2. Distribution Cooperation. For a period of up to two (2) years after the Commencement Date, except as otherwise
set forth in the Distribution Agreement or a Commercial Arrangement, the Parties shall, and shall cause each of their respective Affiliates and employees to (i) provide reasonable cooperation and assistance to the other Party in connection with
the completion of the Plan of Reorganization, (ii) provide knowledge transfer regarding its applicable Business or Vector’s historical business and (iii) assist the other Party in the orderly and efficient transition in becoming an
independent company; in each case, except as may otherwise be agreed to by the Parties in writing, at no additional cost to the Party requesting such assistance other than for the actual out-of-pocket costs (which shall not include the costs of salaries and benefits of employees of such Party or any pro rata portion of overhead or other costs of employing such employees which would
have been incurred by such employees’ employer regardless of the employees’ service with respect to the foregoing) incurred by any such Party, if applicable. The cooperation and assistance provided for in this Section shall not be
required to the extent such cooperation and assistance would result in an undue burden on any Party or would unreasonably interfere with any of its employees normal functions and duties. 

  
 8 

 Section 6.3. Confidentiality. Each Party shall keep confidential from Third
Parties the Schedules to this Agreement and all non-public information received from the other Party regarding the Services, including, without limitation, any information received with respect to products and
services of Vector or Spinco, and to use such information only for the purposes set forth in this Agreement unless (i) otherwise agreed to in writing by the Party from which such information was received or (ii) required by applicable law,
regulation or any securities exchange (in which case the Parties shall cooperate in seeking to obtain a protective order or other arrangement pursuant to which the confidentiality of such information is preserved). The covenants in this Article VI
shall survive any termination of this Agreement for a period of three (3) years from the date such termination becomes effective. 

Section 6.4. Internal Use; Title, Copies, Return. Except to the extent inconsistent with the express terms of the Distribution
Agreement and any Ancillary Agreement other than this Agreement, each Party agrees that: 
 (a) title to all systems used in performing any
Service provided hereunder shall remain with the Party providing such Service or its Third Party vendors; and 
 (b) to the extent the
provision of any Service involves intellectual property, including without limitation software programs or patented or copyrighted material, or material constituting trade secrets, the recipient of such Service shall not copy, modify, reverse
engineer, decompile or in any way alter any of such material, or otherwise use such material in a manner inconsistent with the terms and provisions of this Agreement, without the express written consent of the Party providing such Service; and upon
the termination of any Service, the recipient of such Service shall return to the Party providing such Service, as soon as practicable, any equipment or other property of the Party providing such Service relating to such Service which is owned or
leased by the Party providing such Service and is or was in its possession or control. 
 ARTICLE VII 

TERM 
 Section 7.1.
Duration. (a) Except as provided in Sections 4.6, 5.5, 6.2, 6.3, 7.2, 7.3, 7.4 and 7.5, the term of this Agreement shall commence on the date hereof (the “Commencement Date”) and shall continue in full force and effect until
the earlier of (i) the date that is the day prior to the third (3rd) anniversary of the Commencement Date, unless otherwise mutually agreed by the Parties and (ii) the earlier termination of all Services in accordance with Section 4.5
or 7.1(b). 
 (b) As Vector becomes self-sufficient or engages other sources to provide any Spinco Service, Vector shall be entitled to
release Spinco from providing any or all of the Spinco Services hereunder by delivering a written notice thereof to Spinco at least twenty (20) Business Days prior to the effective date of release of such Spinco Service(s). At the end of such
twenty (20) Business Day period (or such shorter period as may be agreed by the Parties), Spinco shall discontinue the provision of the Spinco Services specified in such notice and any such Spinco Services shall be excluded from this Agreement,
Schedule A shall be deemed to be amended accordingly, and this Agreement shall be deemed to be terminated with respect to such Spinco Service. Spinco shall also be entitled to release Vector from providing any or all of the Vector Services hereunder
by delivering a written notice thereof to Vector at least twenty (20) Business Days prior to the effective date of release of such Vector Service(s). At the end of such twenty (20) Business Day period (or such shorter period as may be
agreed by the Parties), Vector shall discontinue the provision of the Vector Services specified in such notice and any such Vector Services shall be excluded from this Agreement, Schedule B shall be deemed to be amended accordingly, and this
Agreement shall be deemed to be terminated with respect to such Vector Service. 
 Section 7.2. Early Termination by Spinco.
Spinco may terminate this Agreement by giving written notice to Vector under the following circumstances: 

  
 9 

 (a) if Vector shall default in the performance of any of its material obligations under this
Agreement, and such default or breach shall continue and not be remedied for a period of thirty (30) days after Spinco has given written notice to Vector specifying such default and requiring it to be remedied; 

(b) if a Bankruptcy Event has occurred with respect to Vector; or 

(c) if a Change of Control of Vector has occurred. 

Section 7.3. Early Termination by Vector. Vector may terminate this Agreement by giving written notice to Spinco under the
following circumstances: 
 (a) if Spinco shall default in the performance of any of its material obligations under this Agreement and such
default shall continue and not be remedied for a period of thirty (30) days after Vector has given written notice to Spinco specifying such default and requiring it to be remedied; 

(b) if a Bankruptcy Event has occurred with respect to Spinco; or 

(c) if a Change of Control of Spinco has occurred. 

Section 7.4. Suspension Due to Force Majeure. In the event the performance by either Vector or Spinco of its duties or obligations
hereunder is interrupted or interfered with by reason of any Force Majeure, the Party affected by such Force Majeure shall not be deemed to be in default of this Agreement by reason of its non-performance due
to such Force Majeure, but shall give notice to the other Party of the Force Majeure and the fee provided for in Section 4.1 shall be equitably adjusted to reflect the reduced performance. In such event, the Party affected by such Force Majeure
shall resume the performance of its duties and obligations hereunder as soon as reasonably practicable after the end of the Force Majeure. 

Section 7.5. Consequences of Termination. In the event this Agreement expires or is terminated in accordance with this Article
VII, then (a) all Services to be provided will promptly cease, (b) each of Spinco and Vector shall, upon request of the other Party, promptly return or destroy all non-public confidential information
and Personal Information received from the other Party in connection with this Agreement (including the return of all information received with respect to the Services or products of Vector or Spinco, as the case may be), without retaining a copy
thereof (other than one copy for file purposes), and (c) each of Spinco and Vector shall honor all credits and make any accrued and unpaid payment to the other Party as required pursuant to the terms of this Agreement, and no rights already
accrued hereunder shall be affected. 
 ARTICLE VIII 

RECORDS; DATA SECURITY 

Section 8.1. Records Retention. Each of the Parties shall create and maintain full and accurate books in connection with the
provision of the Services, and all other records relevant to this Agreement, and upon reasonable notice from the other Party shall make available for inspection and copy by such other Party’s agents such records during reasonable business
hours. 
 Section 8.2. Data Security. In their respective provision of the Services, each Party shall comply with
all applicable federal, state, local and international laws, regulations and directives governing the collection, use, storage, processing, transmission, transfer, disclosure and protection of Personal Information (“Applicable Privacy
Laws”) and shall immediately inform the other Party if they believe that processing Personal Information as contemplated by this Agreement would violate Applicable Privacy Laws. Each Party shall process Personal Information only as
instructed by the other Party as required to provide the applicable Services or as otherwise required by applicable law, and will not sell the Personal Information or process it for any other purpose. The Parties shall ensure that all personnel
authorized to process Personal Information have agreed to maintain the confidentiality of the Personal Information and that access to Personal Information is limited to only those who need to know the Personal Information in order perform the
specific Vector Services or Spinco Services under this Agreement. Each Party shall implement reasonable administrative, physical, technical and organizational measures designed to protect 

  
 10 

 
Personal Information from any unauthorized access to or acquisition, disclosure, disposal, loss or use of such Personal Information (an “Information Security Incident”). Each
Party shall notify the other Party within 72 hours following the discovery of any actual or suspected Information Security Incident and assist the other Party in any efforts to contain, investigate or remediate such Information Security Incident.
Each Party shall assist the other Party in fulfilling its obligations to respond to data subjects’ requests for exercising their rights under Applicable Privacy Laws and shall make available all information necessary to demonstrate compliance
with Applicable Privacy Laws. The Parties agree to enter into any further privacy or data security agreements as required to comply with Applicable Privacy Laws. 

ARTICLE IX 
 DISPUTE RESOLUTION

 Section 9.1. Negotiation. In the event of a controversy, dispute or claim arising out of, in connection with, or in relation
to the interpretation, performance, nonperformance, validity or breach of this Agreement or otherwise arising out of, or in any way related to this Agreement or the transactions contemplated hereby, including any claim based on contract, tort,
statute or constitution (but excluding any controversy, dispute or claim arising out of any agreement relating to the use or lease of real property if any Third Party is a necessary party to such controversy, dispute or claim) (collectively,
“Agreement Disputes”), the Party claiming such Agreement Dispute shall give written notice to the other Party setting forth the Agreement Dispute and a brief description thereof (a “Dispute Notice”) pursuant to the
terms of the notice provisions of Article X hereof. Following delivery of a Dispute Notice, the general counsel of the other Party and/or such other executive officer designated by the other Party shall negotiate for a reasonable period of time to
settle such Agreement Dispute; provided, however, that such reasonable period shall not, unless otherwise agreed by the Parties in writing, exceed forty-five (45) calendar days from the time of receipt by a Party of a Dispute
Notice; provided, further, that in the event of any arbitration in accordance with Section 9.3 hereof, the Parties shall not assert the defenses of statute of limitations and laches arising during the period beginning after the
date of receipt of the Dispute Notice, and any contractual time period or deadline under this Agreement to which such Agreement Dispute relates occurring after the Dispute Notice is received shall not be deemed to have passed until such Agreement
Dispute has been resolved. 
 Section 9.2. Mediation. If, within forty-five (45) calendar days (or such longer period as
may be agreed in writing between the Parties) after receipt by a Party of a Dispute Notice, the Parties have not succeeded in negotiating a resolution of the Agreement Dispute, the Parties agree to submit the Agreement Dispute at the earliest
possible date to mediation conducted in accordance with the Commercial Mediation Rules of the American Arbitration Association (“AAA”), and to bear equally the costs of the mediation; provided, however, that each Party
shall bear its own costs in connection with such mediation. The Parties agree to participate in good faith in the mediation and negotiations related thereto for a period of thirty (30) days or such longer period as they may mutually agree
following the initial mediation session (the “Mediation Period”). 
 Section 9.3. Arbitration. If the Agreement
Dispute has not been resolved for any reason after the Mediation Period, such Agreement Dispute shall be determined, at the request of either Party, by arbitration conducted in New York City, New York, before and in accordance with the then-existing
Commercial Arbitration Rules of the AAA, except as modified herein (the “Rules”). There shall be three arbitrators. Each Party shall appoint one arbitrator within twenty (20) calendar days of receipt by respondent of a copy of
the demand for arbitration. The two party-appointed arbitrators shall have twenty (20) calendar days from the appointment of the second arbitrator to agree on a third arbitrator who shall chair the arbitral tribunal. Any arbitrator not timely
appointed by the Parties under this Section 9.3 shall be appointed by the AAA in accordance with the listing, ranking and striking method in the Rules, and in any such procedure, each Party shall be given a limited number of strikes, excluding
strikes for cause. Any controversy concerning whether an Agreement Dispute is an arbitrable Agreement Dispute, whether arbitration has been waived, whether an assignee of this Agreement is bound to arbitrate, or as to the interpretation of
enforceability of this Article IX shall be determined by the arbitrators. In resolving any Agreement Dispute, the Parties intend that the arbitrators shall apply the substantive laws of the State of New York, without regard to any choice of law
principles thereof that would mandate the application of the laws of another jurisdiction. The Parties intend that the provisions to arbitrate set forth herein be valid, enforceable and irrevocable, and any award rendered by the arbitrators shall be
final and binding on the Parties. The Parties agree to comply with any award made in any such arbitration proceedings and agree to enforcement of or entry of judgment upon such award in the United States

  
 11 

 
District Court for the Southern District of New York. The arbitrators shall be entitled, if appropriate, to award any remedy in such proceedings, including monetary damages, specific performance
and all other forms of legal and equitable relief; provided, however, the arbitrators shall not be entitled to award punitive, exemplary, treble or any other form of non-compensatory damages
except in connection with indemnification for a Third Party Claim (and in such a case, only to the extent awarded in such Third Party Claim). 

Section 9.4. Arbitration Period. Any arbitration proceeding shall be concluded in a maximum of six (6) months from the
commencement of the arbitration. The Parties may agree in writing to extend the arbitration period if necessary to appropriately resolve the Agreement Dispute. 

Section 9.5. Treatment of Negotiations, Mediation and Arbitration. Without limiting the provisions of the Rules, unless otherwise
agreed in writing by the Parties or permitted by this Agreement, the Parties shall keep confidential all matters relating to and any negotiation, mediation, conference, arbitration, discussion or arbitration award pursuant to this Article IX
shall be treated as compromise and settlement negotiations for purposes of Rule 408 of the Federal Rules of Evidence and comparable state rules; provided, however, that such matters may be disclosed (i) to the extent reasonably
necessary in any proceeding brought to enforce the award or for entry of a judgment upon the award and (ii) to the extent otherwise required by Law or stock exchange rules. Nothing said or disclosed, nor any document produced, in the course of
any negotiations, conferences and discussions that is not otherwise independently discoverable shall be offered or received as evidence or used for impeachment or for any other purpose in any current or future arbitration. Nothing contained herein
is intended to or shall be construed to prevent any Party from applying to any court of competent jurisdiction for interim measures or other provisional relief in connection with the subject matter of any Agreement Disputes. Without prejudice to
such provisional remedies as may be available under the jurisdiction of a court, the arbitral tribunal shall have full authority to grant provisional remedies and to direct the parties to request that any court modify or vacate any temporary or
preliminary relief issued by such court, and to award damages for the failure of any Party to respect the arbitral tribunal’s orders to that effect. 

Section 9.6. Continuity of Service and Performance. Except as provided in Sections 4.5, 7.4 or 7.5 or otherwise agreed in writing,
the Parties will continue to provide Services and honor all other commitments under this Agreement and each Ancillary Agreement during the course of dispute resolution pursuant to the provisions of this Article IX with respect to all matters
not subject to such dispute resolution. 
 Section 9.7. Consolidation. The arbitrators may consolidate any Agreement Disputes
under this Agreement if the subject of the Agreement Disputes thereunder arise out of or relate essentially to the same set of facts or transactions. Such consolidated arbitration shall be determined by the arbitrator appointed for the arbitration
proceeding that was commenced first in time. 
 ARTICLE X 

NOTICES 
 All notices and other
communications hereunder shall be in writing, shall reference this Agreement and shall be emailed, hand delivered or mailed by registered or certified mail (return receipt requested) to the Parties at the following addresses (or at such other
address for a Party as shall be specified by like notice) and will be deemed given on the date on which such notice is received: 
 To Vector: 

Vector Group Ltd. 
 4400 Biscayne
Boulevard 
 Miami, Florida 33137 

Attention: General Counsel 

  
 12 

 To Spinco: 

Douglas Elliman Inc. 
 4400
Biscayne Boulevard 
 Miami, Florida 33137 

Attention: General Counsel 

ARTICLE XI 
 MISCELLANEOUS 

Section 11.1. Taxes. Except as may otherwise be specifically provided herein, each party shall bear all taxes, duties and other
similar charges (and any related interest and penalties) imposed as a result of its receipt of Services under this Agreement. 

Section 11.2. Relationship of Parties. Nothing in this Agreement shall be deemed or construed by the Parties or any Third Party as
creating the relationship of principal and agent, partnership or joint venture between the Parties, it being understood and agreed that no provision contained herein, and no act of the Parties, shall be deemed to create any relationship between the
Parties other than the relationship of independent contractor nor be deemed to vest any rights, interest or claims in any Third Parties. 

Section 11.3. Complete Agreement; Construction. This Agreement, including the Schedules hereto, shall constitute the entire
agreement between the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter. In the event of any inconsistency between this Agreement and any
Schedule hereto, the Schedule shall prevail. The rights and remedies of the Parties herein provided shall be cumulative and in addition to any other or further remedies provided by law or equity. 

Section 11.4. Other Agreements. This Agreement is not intended to address, and should not be interpreted to address, the matters
specifically and expressly covered by the Distribution Agreement or the other Ancillary Agreements. 
 Section 11.5.
Counterparts. This Agreement may be executed in more than one counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and
delivered to the other Party. This Agreement may be executed and delivered by electronic means, including “.pdf” or “.tiff” files, and any electronic signature shall constitute an original for all purposes. 

Section 11.6. Survival of Agreements. Except as otherwise contemplated by this Agreement, the Distribution Agreement or any other
Ancillary Agreement, all covenants and agreements of the Parties contained in this Agreement, the Distribution Agreement and each Ancillary Agreement shall survive the Distribution and remain in full force and effect in accordance with their
applicable terms. 
 Section 11.7. Waivers and Consents. The failure of any Party to require strict performance by the other
Party of any provision in this Agreement will not waive or diminish that Party’s right to demand strict performance thereafter of that or any other provision hereof. Any consent required or permitted to be given by any Party to the other Party
under this Agreement shall be in writing and signed by the Party giving such consent. 
 Section 11.8. Amendments. This
Agreement may not be modified or amended except by an agreement in writing signed by a duly authorized representative of each of the Parties. 

Section 11.9. Assignment. This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party
without the prior written consent of the other Party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void; provided, however, that a Party may assign this Agreement in
connection with a merger transaction in which such Party is not the surviving entity or the sale by such Party of all or substantially all of its Assets; provided, however, that the surviving entity of such merger or the transferee of
such Assets shall agree in writing, reasonably satisfactory to the other Party, to be bound by the terms of this Agreement as if named as a “Party” hereto. 

  
 13 

 Section 11.10. Successors and Assigns. The provisions of this Agreement and the
obligations and rights hereunder shall be binding upon, inure to the benefit of and be enforceable by (and against) the Parties and their respective successors and permitted transferees and assigns. 

Section 11.11. No Circumvention. The Parties agree not to directly or indirectly take any actions, act in concert with any Person
who takes an action (including the failure to take a reasonable action) such that the resulting effect is to materially undermine the effectiveness of any of the provisions of this Agreement or any Ancillary Agreement (including adversely affecting
the rights or ability of any Party to successfully pursue indemnification, contribution or payment pursuant to Article V). 

Section 11.12. Subsidiaries. Each of the Parties shall 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 or by any entity that becomes a Subsidiary of such Party on and after the effective Commencement Date. 

Section 11.13. Third Party Beneficiaries. This Agreement is solely for the benefit of the Parties and should not be deemed to
confer upon third parties any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement. 

Section 11.14. Titles and Headings. Titles and headings to sections herein are inserted for the convenience of reference only and
are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
 Section 11.15. Exhibits and
Schedules. The Exhibits and Schedules shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth verbatim herein. 

Section 11.16. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New
York, without giving effect to any conflict-of-laws or other rule that would result in the application of the laws of a different jurisdiction. 

Section 11.17. Consent to Jurisdiction. Subject to the provisions of Article IX hereof, each of the Parties irrevocably submits to
the jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan (and if the courts of the State of New York shall be unavailable, any New York State court or federal court sitting in the City
and County of New York, Borough of Manhattan) (the “New York Courts”), for the purposes of any suit, Action or other proceeding to compel arbitration or for provisional relief in aid of arbitration in accordance with Article IX or
to prevent irreparable harm, and to the non-exclusive jurisdiction of the New York Courts for the enforcement of any award issued thereunder. Each of the Parties further agrees that service of any process,
summons, notice or document by U.S. registered mail to such Party’s respective address set forth above shall be effective service of process for any Action, suit or proceeding in the New York Courts with respect to any matters to which it has
submitted to jurisdiction in this Section. Each of the Parties irrevocably and unconditionally waives any objection to the laying of venue of any Action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in the
New York Courts, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such Action, suit or proceeding brought in any such court has been brought in an inconvenient forum. 

Section 11.18. Specific Performance. The Parties agree that irreparable damage would occur in the event that the provisions of
this Agreement were not performed in accordance with their specific terms. Accordingly, it is hereby agreed that the Parties shall be entitled to an injunction or injunctions to enforce specifically the terms and provisions hereof in any court of
the United States or any state having jurisdiction, this being in addition to any other remedy to which they are entitled at law or in equity. 

Section 11.19. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES HEREBY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT 

  
 14 

 
OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

Section 11.20. Severability. In the event any one or more of the provisions contained in this Agreement should be held invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The Parties shall endeavor in good-faith negotiations
to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

Section 11.21. Interpretation. The Parties have participated jointly in the negotiation and drafting of this Agreement. This
Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting or causing any instrument to be drafted. 

Section 11.22. No Duplication; No Double Recovery. Nothing in this Agreement is intended to confer to or impose upon any Party a
duplicative right, entitlement, obligation or recovery with respect to any matter arising out of the same facts and circumstances (including with respect to the rights, entitlements, obligations and recoveries that may arise out of Section 5.1
or Section 5.2). 
 Section 11.23. DISCLAIMER OF WARRANTIES. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR THE
SCHEDULES ATTACHED HERETO, THE PARTIES ACKNOWLEDGE AND AGREE THAT THE SERVICES ARE PROVIDED AS-IS, THAT EACH RECIPIENT ASSUMES ALL RISKS AND LIABILITIES ARISING FROM OR RELATING TO ITS USE OF AND RELIANCE UPON
THE SERVICES AND EACH PROVIDER, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT THERETO. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH
PROVIDER HEREBY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICES, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, INCLUDING ANY REPRESENTATION OR WARRANTY IN REGARD TO QUALITY,
PERFORMANCE, NONINFRINGEMENT, COMMERCIAL UTILITY, MERCHANTABILITY OR FITNESS OF ANY SERVICE FOR A PARTICULAR PURPOSE. 

  
 15 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered on behalf of the
Parties as of the date first herein above written. 
  

			
	VECTOR GROUP LTD.
		
	By:	 	 /s/ J. Bryant Kirkland III

	Name:	 	J. Bryant Kirkland III
	Title:	 	Senior Vice President, Treasurer and Chief Financial Officer
	
	DOUGLAS ELLIMAN INC.
		
	By:	 	 /s/ Richard J. Lampen

	Name:	 	Richard J. Lampen
	Title:	 	Executive Vice President and Chief Operating Officer

  
 [Signature Page to
Transition Services Agreement]EX-10.2

 Exhibit 10.2 
  

 
  

TAX DISAFFILIATION AGREEMENT 

BETWEEN 
 VECTOR GROUP
LTD. 
 AND 

DOUGLAS ELLIMAN INC. 

dated as of December 21, 2021 
  

 
  

 

 TABLE OF CONTENTS 
  

							
	 SECTION 1.
	 	 Definition of Terms
	  	 	2	 
			
	 SECTION 2.
	 	 Allocation of Taxes and Tax-Related Losses
	  	 	10	 
			
	 2.1
	 	Allocation of Taxes	  	 	10	 
			
	 2.2
	 	Special Allocation of Certain Taxes	  	 	11	 
			
	 2.3
	 	Tax Payments	  	 	12	 
			
	 SECTION 3.
	 	 Preparation and Filing of Tax Returns
	  	 	12	 
			
	 3.1
	 	Combined Returns	  	 	12	 
			
	 3.2
	 	Separate Returns	  	 	12	 
			
	 3.3
	 	Agent	  	 	12	 
			
	 3.4
	 	Provision of Information	  	 	13	 
			
	 3.5
	 	Special Rules Relating to the Preparation of Tax Returns	  	 	13	 
			
	 3.6
	 	Refunds, Credits, Offsets, Tax Benefits	  	 	13	 
			
	 3.7
	 	Carrybacks	  	 	14	 
			
	 3.8
	 	Amended Returns	  	 	14	 
			
	 SECTION 4.
	 	 Tax Payments
	  	 	14	 
			
	 4.1
	 	Payment of Taxes to Tax Authority	  	 	14	 
			
	 4.2
	 	Indemnification Payments	  	 	14	 
			
	 4.3
	 	Interest on Late Payments	  	 	15	 
			
	 4.4
	 	Tax Consequences of Payments	  	 	15	 
			
	 4.5
	 	Adjustments to Payments	  	 	14	 
			
	 4.6
	 	Section 336(e) Election	  	 	16	 
			
	 4.7
	 	Certain Final Determinations	  	 	16	 
			
	 SECTION 5.
	 	 Cooperation and Tax Contests
	  	 	16	 
			
	 5.1
	 	Cooperation	  	 	16	 
			
	 5.2
	 	Notices of Tax Contests	  	 	17	 
			
	 5.3
	 	Control of Tax Contests	  	 	17	 
			
	 5.4
	 	Cooperation Regarding Tax Contests	  	 	18	 
			
	 SECTION 6.
	 	 Tax Records
	  	 	18	 
			
	 6.1
	 	Retention of Tax Records	  	 	18	 
			
	 6.2
	 	Access to Tax Records	  	 	18	 
			
	 6.3
	 	Confidentiality	  	 	18	 
			
	 SECTION 7.
	 	 Representations and Covenants
	  	 	19	 
			
	 7.1
	 	Covenants of Parent and Spinco	  	 	19	 

  
 i 

							
	 7.2
	 	Covenants of Spinco	  	 	19	 
			
	 7.3
	 	Covenants of Parent	  	 	20	 
			
	 7.4
	 	Exceptions	  	 	20	 
			
	 7.5
	 	Injunctive Relief	  	 	21	 
			
	 7.6
	 	Further Assurances	  	 	21	 
			
	 SECTION 8.
	 	General Provisions	  	 	21	 
			
	 8.1
	 	General Provisions	  	 	21	 
			
	 8.2
	 	Third-Party Beneficiaries	  	 	21	 

  

  
 ii 

 TAX DISAFFILIATION AGREEMENT 

THIS TAX DISAFFILIATION AGREEMENT (the “Agreement”) is dated as of December 21, 2021, by and between Vector Group Ltd.,
a Delaware corporation (“Parent”), and Douglas Elliman Inc., a Delaware corporation and a wholly-owned subsidiary of Parent (“Spinco” and, together with Parent, the “Parties”, and each, a
“Party”). Unless otherwise indicated, all “Section” references in this Agreement are to sections of the Agreement. 

RECITALS 
 WHEREAS, the
Board of Directors of Parent determined that, based on the Corporate Business Purposes, it is in the best interests of Parent and its stockholders to separate the businesses of Spinco, all as more fully described in Spinco’s registration
statement on Form 10, from Parent’s other businesses on the terms and conditions set forth in the Distribution Agreement between Parent and Spinco dated on or about the date hereof (the “Distribution Agreement”); 

WHEREAS, pursuant to the Distribution Agreement, Parent intends to complete (or cause to be completed) the Contribution; 

WHEREAS, the Board of Directors of Parent has authorized the distribution to the holders (as of the record date) of the issued and outstanding
shares of common stock, par value $0.01 per share, of Parent (collectively, the “Parent Shares”) of the issued and outstanding shares of common stock, par value $0.01 per share, of Spinco (each, a “Spinco Share” and
collectively, the “Spinco Shares”), on the basis of one Spinco Share for every two Parent Shares (the “Distribution”); 

WHEREAS, Parent and Spinco intend the Contribution and Distribution to qualify for the Tax-Free
Status; 
 WHEREAS, the Boards of Directors of Parent and Spinco have each determined that the Distribution and the other transactions
contemplated by the Distribution Agreement and the Ancillary Agreements are in furtherance of and consistent with the Corporate Business Purposes and, as such, are in the best interests of their respective companies and stockholders or sole
stockholder, as applicable, and have approved the Distribution Agreement and each of the Ancillary Agreements; 
 WHEREAS, the Parties set
forth in the Distribution Agreement the principal arrangements between them regarding the separation of the Spinco Group from the Parent Group; and 

WHEREAS, the Parties desire to provide for and agree upon the allocation between the Parties of liabilities for Taxes arising prior to, as a
result of, and subsequent to the Distribution, and to provide for and agree upon other matters relating to Taxes; 
 NOW, THEREFORE, in
consideration of the mutual covenants contained in this Agreement, the Parties hereby agree as follows: 

 SECTION 1. Definition of Terms. For purposes of this Agreement (including the
recitals hereof), the following terms have the following meanings: 
 “Affiliate” has the meaning set forth in the Distribution
Agreement. For the avoidance of doubt, the term “Affiliate” as it applies to Spinco shall include members of the Spinco Group. 

“Agreed Treatment” means the treatment of the Contribution and the Distribution in accordance with the Tax-Free Status. 
 “Agreement” has the meaning set forth in the preamble hereof. 

“Ancillary Agreements” means the agreements encompassed by such term in the Distribution Agreement but excluding, for the avoidance
of doubt, the reference therein to the “Tax Disaffiliation Agreement”. 
 “Business Day” has the meaning set forth in
the Distribution Agreement. 
 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 

“Combined Return” means a consolidated, combined or unitary Tax Return that includes, by election or otherwise, one or more members
of the Parent Group and one or more members of the Spinco Group. 
 “Companies” means Parent and Spinco. 

“Company” means Parent or Spinco, as the context requires. 

“Compensatory Equity Interests” means options, stock appreciation rights, restricted stock, restricted stock units or other rights
with respect to Parent Shares or Spinco Shares that are granted by Parent, Spinco or any of their respective Subsidiaries in connection with employee or director compensation or other employee benefits. 

“Compensatory Equity Net Share Settlements” means “net share settlement” transactions with respect to Compensatory Equity
Interests between either Party (or any of their respective Subsidiaries) on the one hand and the employee (or director, as the case may be) of such Party or the other Party (or any of their respective Subsidiaries) on the other hand, in each case
pursuant to the terms of the relevant agreement with respect to such Compensatory Equity Interests. 
 “Contribution” means the
contribution of Assets to, and the Assumption of Liabilities by (each as defined in the Distribution Agreement), Spinco. 

“Controlling Party” means, with respect to a Tax Contest, the Person that has responsibility, control and discretion in handling,
defending, settling or contesting such Tax Contest. 

  
 2 

 “Corporate Business Purposes” means the Corporate Business Purposes as set forth
in the Tax Opinion Representations (including any appendices thereto) and the “Reasons for the Distribution” in Spinco’s registration statement on Form 10, as amended. 

“Deconsolidation Taxes” means any Taxes imposed on any member of the Parent Group or the Spinco Group as a result of or in
connection with the Contribution and the Distribution (or any portion thereof), but excluding any Transfer Taxes, Distribution Taxes, and, for the avoidance of doubt, Taxes arising from the Equity Award Transfer. 

“Disclosing Party” has the meaning set forth in Section 6.3. 

“Distribution” has the meaning set forth in the recitals hereof, it being understood that, for the avoidance of doubt, the
Distribution excludes the Equity Award Transfer. 
 “Distribution Agreement” has the meaning set forth in the recitals hereof.

 “Distribution Date” has the meaning set forth in the Distribution Agreement. 

“Distribution Taxes” means any Taxes arising from a Final Determination that the Contribution and the Distribution failed to be tax-free to Parent in accordance with the requirements of section 355 or section 368(a)(1)(D) of the Code (including any Taxes resulting from the application of section 355(d) or (e) of the Code to
the Distribution), or that any stock of Spinco failed to qualify as “qualified property” within the meaning of section 355(c)(2) or 361(c)(2) of the Code (including as a result of the application of section 355(d) or 355(e) of the
Code to the Distribution) or where applicable, failed to be stock permitted to be received without recognition of gain or loss under section 361(a) of the Code, and shall include any Taxes resulting from an election under section 336(e) of the
Code in the circumstances set forth in Section 4.6 hereof. For the avoidance of doubt, “Distribution Taxes” does not include any Taxes arising from the Equity Award Transfer. 

“Due Date” has the meaning set forth in Section 4.3. 

“Effective Time” means 11:59 p.m., New York City time, on the Distribution Date. 

“Employee Matters Agreement” means the Employee Matters Agreement by and between Parent and Spinco entered into on or about the date
hereof. 
 “Equity Award Transfer” means the transfer of Spinco Shares with respect to Parent Equity Awards, which transfer shall
not exceed 3.5% of the total outstanding shares of Spinco. 
 “Escheat Liability” means any unclaimed property or escheat
liability, including any interest, penalty, administrative charge, or addition thereto and further including all costs of responding to or defending against an audit, examination, or controversy with respect to such liability, imposed by or on
behalf of a governmental entity with respect to any property or obligation (including, without limitation, uncashed checks to vendors, customers, or employees and non-refunded overpayments). 

  
 3 

 “Excess Taxes” means the excess of (x) the Taxes for which Parent Group is
liable if an election is made pursuant to section 336(e) of the Code under Section 4.6 of this Agreement, over (y) the Taxes for which Parent Group is liable if such an election is not made, in each case taking into account the
allocation of Taxes that is otherwise applicable in this Agreement but without regard to Section 4.6 hereof. 
 “Expert Law
Firm” means a law firm nationally recognized for its expertise in the matter for which its opinion is sought. 

“Thirty-Five-Percent Equity Interest” means, in respect of any corporation (within the meaning of the Code), stock or other equity
interests of such corporation possessing (i) at least thirty-five percent (35%) of the total combined voting power of all classes of stock or equity interests entitled to vote, or (ii) at least thirty-five percent (35%) of the total value
of shares of all classes of stock or of the total value of all equity interests. 
 “Filer” means the Company that is responsible
for filing the applicable Tax Return pursuant to Sections 3.1 or 3.2. 
 “Final Determination” means a determination within the
meaning of section 1313 of the Code or any similar provision of state or local Tax Law. 
 “Group” means the Parent Group or
the Spinco Group, as the context requires. 
 “Income Tax” or “Income Taxes” means any Tax that is imposed on or
measured by or referred to as income, gross income, gross receipts, profits, capital stock, franchise or other similar Tax. 

“Indemnified Party” has the meaning set forth in Section 4.5. 

“Indemnifying Party” has the meaning set forth in Section 4.5. 

“Interest Rate” means (x) the “Prime Rate” as set forth in the Distribution Agreement, or (y) if higher and if
with respect to a payment to indemnify for a Tax to which the “large corporate underpayment” provision within the meaning of section 6621(c) of the Code applies, such interest rate that would be applicable at such time to such “large
corporate underpayment.” 
 “IRS” means the Internal Revenue Service. 

“Parent” has the meaning set forth in the preamble hereof. 

“Parent Business” has the meaning ascribed to the term “Distributing Business” in the Tax Opinion Representations that
constitutes an active trade or business (within the meaning of section 355(b) of the Code) of the separate affiliated group (as defined in section 355(b)(3)(B) of the Code) of Parent. 

“Parent Equity Award” has the meaning ascribed to the term “Vector Equity Award” in the Employee Matters Agreement. 

  
 4 

 “Parent Group” has the meaning ascribed to the term “Parent Group” in
the Distribution Agreement. 
 “Parent Indemnified Party” includes each member of the Parent Group, each of their representatives
and Affiliates, each of their respective directors, officers, managers and employees, and each of their heirs, executors, trustees, administrators, successors and assigns. 

“Parent Restricted Action” means any action by Parent or any of its Subsidiaries inconsistent with the covenants set forth in
Section 7.4(a); and, for the avoidance of doubt, an action shall be and remain a Parent Restricted Action even if Parent or any of its Subsidiaries is permitted to take such an action pursuant to Section 7.5(b). 

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

“Parent Tainting Act” means any breach of a representation or covenant made by Parent in Section 7.1 of this Agreement or the
taking of a Parent Restricted Action, if as a result of such breach or taking of a Parent Restricted Action a Final Determination is made that the Contribution and the Distribution (excluding, for the avoidance of doubt, the Equity Award Transfer)
failed to be tax-free by reason of (i) failing to qualify as a transaction described in section 355 and section 368(a)(1)(D) of the Code, or (ii) any stock of Spinco failing to qualify as
“qualified property” within the meaning of section 355(c)(2) or 361(c)(2) of the Code (including as a result of the application of section 355(d) or 355(e) of the Code to the Distribution) or where applicable, failing to be stock
permitted to be received without recognition of gain or loss under section 361(a) of the Code. It is understood and agreed that the Equity Award Transfer does not constitute, by itself, a Parent Restricted Action or a Parent Tainting Act,
although it may be taken into account in determining whether some other Parent Tainting Act has resulted. 

“Non-Controlling Party” has the meaning set forth in Section 5.3(a). 

“Non-Filer” means any Company that is not responsible for filing the applicable Tax Return
pursuant to Sections 3.1 or 3.2. 
 “Non-Income Tax” or
“Non-Income Taxes” means any Tax that is not an Income Tax. 
 “Other Party” has
the meaning set forth in Section 4.6(b). 
 “Party” has the meaning set forth in the preamble hereof. 

“Parties” has the meaning set forth in the preamble hereof. 

“Payment Date” means (x) with respect to any U.S. federal income tax return, the date on which any required installment of
estimated taxes determined under section 6655 of the Code is due, the date on which (determined without regard to extensions) filing the return determined under section 6072 of the Code is required, and the date the return is filed, and
(y) with respect to any other Tax Return, the corresponding dates determined under the applicable Tax Law. 

  
 5 

 “Periodic Taxes” means Taxes imposed on a periodic basis that are not based upon
or related to income or receipts. Periodic Taxes include property Taxes and similar Taxes. 
 “Permitted Acquisition” means any
acquisition (as a result of the Distribution but excluding, for the avoidance of doubt, as a result of the Equity Award Transfer) of Spinco Shares solely by reason of holding Parent Shares, but does not include such an acquisition if such Parent
Shares, before such acquisition, were themselves acquired in a manner to which the flush language of section 355(e)(3)(A) of the Code applies (thus causing, for the avoidance of doubt, section 355(e)(3)(A)(i), (ii), (iii) or
(iv) of the Code not to apply). 
 “Person” means any individual, corporation, company, limited liability company,
partnership, trust, incorporated or unincorporated association, joint venture or other entity of any kind. 
 “Post-Distribution
Period” means any Tax Year or other taxable period beginning after the Distribution Date and, in the case of any Straddle Period, that part of the Tax Year or other taxable period that begins at the beginning of the day after the Distribution
Date. 
 “Pre-Distribution Period” means any Tax Year or other taxable period that ends on
or before the Distribution Date and, in the case of any Straddle Period, that part of the Tax Year or other taxable period through the end of the day on the Distribution Date. 

“Preparer” means the Company that is responsible for the preparation and filing of the applicable Tax Return pursuant to
Sections 3.1 or 3.2. 
 “Receiving Party” has the meaning set forth in Section 6.3. 

“Responsible Party” has the meaning set forth in Section 4.6(b). 

“Restriction Period” means the period beginning on the Distribution Date and ending twenty-four (24) months after the
Distribution Date. 
 “Satisfactory Guidance” means either a ruling from the IRS or an Unqualified Opinion, in either case
reasonably satisfactory to Parent or Spinco (as the context dictates) in both form and substance. 
 “Separate Return” means
(a) in the case of any Tax Return required under relevant Tax Law to be filed by any member of the Parent Group (including any consolidated, combined or unitary Tax Return), any such Tax Return that does not include any member of the Spinco
Group, and (b) in the case of any Tax Return required under relevant Tax Law to be filed by any member of the Spinco Group (including any consolidated, combined or unitary Tax Return), any such Tax Return that does not include any member of the
Parent Group. 
 “Spinco” has the meaning set forth in the preamble hereof. 

“Spinco Business” has the meaning ascribed to the term “Controlled Business” in the Tax Opinion Representations that
constitutes an active trade or business (within the meaning of section 355(b) of the Code) of the separate affiliated group (as defined in section 355(b)(3)(B) of the Code) of Spinco. 

  
 6 

 “Spinco Share” or “Spinco Shares” has the meaning set forth in the
recitals to this Agreement. 
 “Spinco Group” has the meaning ascribed to the term “Spinco Group” in the Distribution
Agreement. 
 “Spinco Indemnified Party” includes each member of the Spinco Group, each of their representatives and Affiliates,
each of their respective directors, officers, managers and employees, and each of their heirs, executors, trustees, administrators, successors and assigns. 

“Spinco Restricted Action” means any action by Spinco or any of its Subsidiaries inconsistent with the covenants set forth in
Section 7.3; and, for the avoidance of doubt, an action shall be and remain a Spinco Restricted Action even if Spinco or any of its Subsidiaries is permitted to take such an action pursuant to Section 7.5(a). 

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

“Spinco Tainting Act” means any breach of a representation or covenant made by Spinco in Section 7.1 of this Agreement or the
taking of a Spinco Restricted Action, if as a result of such breach or taking of a Spinco Restricted Action a Final Determination is made that the Contribution and the Distribution (excluding, for the avoidance of doubt, the Equity Award Transfer)
failed to be tax-free by reason of (i) failing to qualify as a transaction described in section 355 and section 368(a)(1)(D) of the Code, or (ii) any stock of Spinco failing to qualify as
“qualified property” within the meaning of section 355(c)(2) or 361(c)(2) of the Code (including as a result of the application of section 355(d) or 355(e) of the Code to the Distribution) or where applicable, failing to be stock permitted
to be received without recognition of gain or loss under section 361(a) of the Code. It is understood and agreed that the Equity Award Transfer does not constitute, by itself, a Spinco Restricted Action or a Spinco Tainting Act, although it may
be taken into account in determining whether some other Spinco Tainting Act has resulted. 
 “Straddle Period” means any taxable
period beginning on or prior to, and ending after, the Distribution Date. 
 “Subsidiary” when used with respect to any Person,
means (i)(A) a corporation a majority in voting power of whose share capital or capital stock with voting power, under ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by such Person, by one or more
Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such Person, whether or not such power is subject to a voting agreement or similar encumbrance, (B) a partnership or limited liability company in which such Person
or a Subsidiary of such Person is, at the date of determination, (1) in the case of a partnership, a general partner of such partnership with the power affirmatively to direct the policies and management of such partnership or (2) in the
case of a limited liability company, the managing member or, in the absence of a managing member, a member with the power affirmatively to direct the policies and management of such limited liability company, or (C) any other Person (other than
a corporation) in which such Person, one or more Subsidiaries of such Person or such 

  
 7 

 
Person and one or more Subsidiaries of such Person, directly or indirectly, at the date of determination thereof, has or have (1) the power to elect or direct the election of a majority of
the members of the governing body of such Person, whether or not such power is subject to a voting agreement or similar encumbrance, or (2) in the absence of such a governing body, at least a majority ownership interest or (ii) any other
Person of which an aggregate of 50% or more of the equity interests are, at the time, directly or indirectly, owned by such Person and/or one or more Subsidiaries of such Person. For the avoidance of doubt, the term “Subsidiary” as it
applies to Spinco shall include the members of the Spinco Group. 
 “Tax” or “Taxes” means any income, gross income,
gross receipts, profits, capital stock, franchise, withholding, payroll, social security, workers’ compensation, employment, unemployment, disability, property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license,
lease, transfer, import, export, value added, alternative minimum, estimated or other similar tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any Tax Authority, any Escheat Liability, abandoned,
or unclaimed property law, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing, together with any reasonable expenses, including attorneys’ fees, incurred in defending against any such tax. 

“Tax Adjustment” has the meaning set forth in Section 4.7. 

“Tax Authority” means, with respect to any Tax, the governmental entity or political subdivision, agency, commission or authority
thereof that imposes such Tax, and the agency, commission or authority (if any) charged with the assessment, determination or collection of such Tax for such entity or subdivision. 

“Tax Benefit” means a reduction in the Tax liability of a taxpayer (or of the Group of which it is a member) for any taxable period.
Except as otherwise provided in this Agreement, a Tax Benefit shall be deemed to have been realized or received from a Tax Item in a taxable period only if and to the extent that the Tax liability of the taxpayer (or of the Group of which it is a
member) for such period, after taking into account the effect of the Tax Item on the Tax liability of such taxpayer in the current period and all prior periods, is less than it would have been if such Tax liability were determined without regard to
such Tax Item. 
 “Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the
purpose, potential or effect of redetermining Taxes of any member of either Group (including any administrative or judicial review of any claim for refund). 

“Tax Counsel” means Sullivan & Cromwell LLP. 

“Tax-Free Status” means the qualification of the Contribution and the
Distribution (a) as a transaction described in section 355 and section 368(a)(1)(D) of the Code, (b) as a transaction in which the stock of Spinco distributed by Parent is “qualified property” for purposes of sections
355(c)(2), 355(d), 355(e) and 361(c) of the Code, and (c) a transaction in which shareholders of Parent will not recognize income, gain or loss upon the Distribution under section 355(a) of the Code (except with respect to cash received in lieu
of fractional shares). For the avoidance of doubt, “Tax-Free Status” does not relate to (x) any Taxes arising from the Equity Award Transfer or (y) any qualification of the Equity Award
Transfer for any particular tax treatment. 

  
 8 

 “Tax Item” means, with respect to any Tax, any item of income, gain, loss,
deduction, credit, adjustment in basis, or other attribute that may have the effect of increasing or decreasing any Tax. 
 “Tax
Law” means the law of any governmental entity or political subdivision thereof, and any controlling judicial or administrative interpretations of such law, relating to any Tax. 

“Tax Opinion” means the opinion (or opinions) to be delivered by Tax Counsel to Parent in connection with the Distribution to the
effect that (i) Parent will not recognize gain or loss upon the Distribution (excluding, for the avoidance of doubt, the Equity Award Transfer) under section 355(c) or section 361(c) of the Code, and (ii) shareholders of Parent will not
recognize gain or loss upon the Distribution (excluding, for the avoidance of doubt, the Equity Award Transfer) under section 355(a) of the Code, and no amount will be included in such shareholders’ income, except in respect of cash
received in lieu of fractional Spinco Shares. 
 “Tax Opinion Representations” means the written and signed representations
delivered to Tax Counsel in connection with the Tax Opinion. 
 “Tax Records” means Tax Returns, Tax Return work papers,
documentation relating to any Tax Contests, and any other books of account or records required to be maintained under applicable Tax Laws (including but not limited to section 6001 of the Code) or under any record retention agreement with any
Tax Authority. 
 “Tax Return” means any report of Taxes due, any claims for refund of Taxes paid, any information return with
respect to Taxes, or any other similar report, statement, declaration, or document filed or required to be filed (by paper, electronically or otherwise) under any applicable Tax Law, including any attachments, exhibits, or other materials submitted
with any of the foregoing, and including any amendments or supplements to any of the foregoing. 
 “Tax Year” means, with respect
to any Tax, the year, or shorter period, if applicable, for which the Tax is reported as provided under applicable Tax Law. 

“Transactions” means the transactions contemplated by the Distribution Agreement (excluding the Equity Award Transfer) and includes,
for the avoidance of doubt, (i) the Contribution and (ii) the Distribution. 
 “Transfer Taxes” means all U.S. federal,
state, local or foreign sales, use, privilege, transfer, documentary, gains, stamp, duties, recording, and similar Taxes and fees (including any penalties, interest or additions thereto) imposed upon any Party hereto or any of its Affiliates in
connection with the Distribution. 
 “Transition Services Agreement” means the transition services agreement between Parent and
Spinco dated on or about the date hereof. 

  
 9 

 “Treasury Regulations” means the regulations promulgated from time to time under
the Code as in effect for the relevant Tax Year. 
 “Unqualified Opinion” means an unqualified “will” opinion of an
Expert Law Firm that permits reliance by Parent or Spinco (as the context dictates). For the avoidance of doubt, an Unqualified Opinion must be based on factual representations and assumptions that are reasonably satisfactory to Parent or Spinco (as
the context dictates). 
 SECTION 2. Allocation of Taxes and Tax-Related Losses. 

2.1 Allocation of Taxes. Except as provided in Section 2.2, Taxes shall be allocated as follows: 

(a) Parent shall be liable for and shall be allocated (i) any Taxes attributable to members of the Parent Group for all periods, and
(ii) any Taxes attributable to members of the Spinco Group for any Pre-Distribution Period, in each case including, for the avoidance of doubt, Taxes attributable to or arising in connection with the
matters set forth in Schedule A. 
 (b) Spinco shall be liable for and shall be allocated any Taxes attributable to members of the Spinco
Group for any Post-Distribution Period. 
 (c) In applying the provisions of Sections 2.1(a) and 2.1(b) (but subject to the provisions
of Section 2.2): 
 (i) Any Taxes, other than Periodic Taxes, in respect of a Straddle Period shall be allocated between
the Pre-Distribution Period and the Post-Distribution Period on a “closing of the books” basis by assuming that the books of the members of the Parent Group and the members of the Spinco Group were
closed on the Distribution Date. For purposes of the foregoing, depreciation and amortization deductions with respect to property placed in service after the Distribution Date shall be allocated to the Post-Distribution Period, and all other
depreciation and amortization deductions shall be allocated on a per diem basis. 
 (ii) Any Periodic Taxes in respect of a
Straddle Period shall be allocated to the Pre-Distribution Period in an amount equal to such Periodic Taxes for the entire Straddle Period multiplied by a fraction the numerator of which is the number of
calendar days in the period ending on the Distribution Date and the denominator of which is the number of calendar days in the entire period. The portion of any Periodic Taxes in respect of a Straddle Period not allocated to the Pre-Distribution Period shall be allocated to the Post-Distribution Period. For the avoidance of doubt, if a Party has prepaid Periodic Taxes that are allocated to the other Party under any provisions of this
Agreement, the second Party shall reimburse the first Party to the extent so allocated. 
 (iii) Taxes attributable to any
transaction or action taken by or with respect to any member of the Spinco Group before the Effective Time on the Distribution Date shall be allocated to the Pre-Distribution Period, and Taxes attributable to
any transaction or action taken by or with respect to any member of the Spinco Group after the Effective Time on the Distribution Date shall be allocated to the Post-Distribution Period. 

  
 10 

 (iv) In determining the allocation of any Escheat Liability, the liability
shall be allocated to the Party whose Group members actually hold (or are required to hold) the property subject to the Escheat Liability at the time a payment or remittance in respect of such liability is required to be made to the applicable
governmental entity. 
 (v) Any Taxes arising from the Equity Award Transfer shall be treated as Taxes described in
Section 2.1(a) hereof, except to the extent such Taxes are specifically addressed by the Employee Matters Agreement. 
 2.2 Special
Allocation of Certain Taxes. Notwithstanding any other provision of this Agreement: 
 (a) Any and all Deconsolidation Taxes shall be
borne by Parent. 
 (b) Spinco shall indemnify and hold harmless each Parent Indemnified Party from and against any liability of Parent for
Distribution Taxes to the extent such Distribution Taxes are attributable to a Spinco Tainting Act, provided, however, that Spinco shall have no obligation to indemnify any Parent Indemnified Party hereunder if there has occurred,
prior to such Spinco Tainting Act, a Parent Tainting Act and such Distribution Taxes are attributable to such Parent Tainting Act. It is understood and agreed that, in determining the amounts payable under this Section 2.2(b), there shall be
included all costs, expenses and damages associated with shareholders litigation or controversies and any amount paid by Parent in respect of the liability of its shareholders, whether paid to its shareholders or to any Tax Authority, in connection
with liability that may arise to shareholders as a result of receiving or accruing an amount payable under this Section 2.2(b), and all reasonable costs and expenses associated with such payments. 

(c) Parent shall indemnify and hold harmless each Spinco Indemnified Party from and against any liability of Spinco for Distribution Taxes to
the extent that Spinco is not liable for such Taxes pursuant to Section 2.2(b). 
 (d) The Companies shall cooperate with each other and
use their commercially reasonable efforts to reduce and/or eliminate any Transfer Taxes. If any Transfer Tax remains payable after application of the first sentence of this Section 2.2(d) and notwithstanding any other provision in this
Section 2, all Transfer Taxes shall be allocated to Parent. 
 2.3 Tax Payments. Each Company shall be liable for and shall pay
the Taxes allocated to it by this Section 2 either to the applicable Tax Authority or to the other Company in accordance with Section 4 and the other applicable provisions of this Agreement. 

  
 11 

 SECTION 3. Preparation and Filing of Tax Returns. 

3.1 Combined Returns. 
 (a)
Parent shall be responsible for preparing and filing (or causing to be prepared or filed) all Combined Returns for any Tax Year. For any such return, Spinco shall furnish any relevant information, including pro forma returns, disclosures,
apportionment data and supporting schedules, relating to any member of the Spinco Group necessary for completing any such return in a format suitable for inclusion in such return, provided that Spinco shall have the right to review and
approve items on such returns if and to the extent such items directly relate to Taxes for which Spinco would be liable under Section 2, such approval not to be unreasonably delayed, conditioned or withheld by Spinco. 

(b) For the period in which the Transition Services Agreement is in effect, Spinco shall assist in the preparation of any Tax Returns which may
be requested by Parent in accordance with the terms of the Transition Services Agreement (even if, for the avoidance of doubt, the responsibility for preparation such Tax Return may be allocated to Parent under other provisions of this Agreement).
Nothing in this Section 3.1(b) shall be construed to affect Parent’s right or responsibility to file the Tax Returns whose filing is allocated to Parent under other provisions of this Agreement. 

3.2 Separate Returns. 
 (a)
Tax Returns to be Prepared by Parent. Parent shall be responsible for preparing and filing (or causing to be prepared and filed) all Separate Returns which relate to one or more members of any Group and for which Spinco is not responsible
under Section 3.2(b), provided, however, that in the case of such returns which relate to one or more members of the Spinco Group for any Pre-Distribution Period or Straddle Period, Spinco
shall have the right to review and approve such returns, such approval not to be unreasonably delayed, conditioned or withheld by Spinco. 

(b) Tax Returns to be Prepared by Spinco. Spinco shall be responsible for preparing and filing (or causing to be prepared and filed) all
Separate Returns which relate to one or more members of the Spinco Group for any Post-Distribution Period. 
 3.3 Agent. Subject to
the other applicable provisions of this Agreement (including, without limitation, Section 5), Parent and Spinco (and their respective Affiliates) shall designate the other Party as its agent and attorney-in-fact to take such action (including execution of documents) as such other Party may deem reasonably appropriate in matters relating to the preparation or filing of any Tax Return described in
Sections 3.1 and 3.2. 
 3.4 Provision of Information. 

(a) Parent shall provide to Spinco, and Spinco shall provide to Parent, any information about members of the Parent Group or the Spinco Group,
respectively, that the Preparer reasonably requires to determine the amount of Taxes due on any Payment Date with respect to a Tax Return for which the Preparer is responsible pursuant to Section 3.1 or 3.2 and to properly and timely file all
such Tax Returns. 

  
 12 

 (b) If a member of the Spinco Group supplies information to a member of the Parent Group, or
a member of the Parent Group supplies information to a member of the Spinco Group, and an officer of the requesting member intends to sign a statement or other document under penalties of perjury in reliance upon the accuracy of such information,
then a duly authorized officer of the member supplying such information shall certify, to the best of such officer’s knowledge, the accuracy of the information so supplied. 

3.5 Special Rules Relating to the Preparation of Tax Returns. 

(a) In General. All Tax Returns that include any members of the Parent Group or Spinco Group, or any of their respective Affiliates,
shall be prepared in a manner that is consistent with the Tax Opinion (including, for the avoidance doubt, the Tax Opinion Representations). Except as otherwise set forth in this Agreement, all Tax Returns for which Parent has the right to prepare,
review, approve or file under Sections 3.1 and 3.2 shall be prepared (x) in accordance with elections, Tax accounting methods and other practices used with respect to such Tax Returns filed prior to the Distribution Date (unless such past
practices are not permissible under applicable law), or (y) to the extent any items are not covered by past practices (or in the event such past practices are not permissible under applicable Tax Law), in any reasonable manner, in accordance
with the preparation, review, approval and filing responsibilities of Sections 3.1 and 3.2; provided, however, that in each case of (x) and (y) to the extent that a change in such elections, methods or practices could not
reasonably be expected to result in any adverse impact on Parent and would not be inconsistent with applicable law, such Tax Returns shall be prepared in accordance with reasonable practices selected by Spinco. 

(b) Election to File Consolidated, Combined or Unitary Tax Returns. Subject to Spinco’s reasonable approval, Parent shall elect to
file any Tax Return on a consolidated, combined or unitary basis, if such Tax Return would include at least one member of each Group and the filing of such Tax Return is elective under the relevant Tax Law. 

3.6 Refunds, Credits, Offsets, Tax Benefits  

(a) Any refunds, credits, or offsets with respect to Taxes allocated to Parent pursuant to this Agreement shall be for the account of Parent.
Any refunds, credits or offsets with respect to Taxes allocated to Spinco pursuant to this Agreement shall be for the account of Spinco. 

(b) Parent shall forward to Spinco, or reimburse Spinco for, any such refunds, credits or offsets, plus any interest received thereon, net of
any Taxes incurred with respect to the receipt or accrual thereof and any expenses incurred in connection therewith, that are for the account of Spinco within fifteen (15) Business Days from receipt thereof by Parent or any of its Affiliates.
Spinco shall forward to Parent, or reimburse Parent for, any refunds, credits or offsets, plus any interest received thereon, net of any Taxes incurred with respect to the receipt or accrual thereof and any expenses incurred in connection therewith,
that are for the account of Parent within fifteen (15) Business Days from receipt thereof by Spinco or any of its Affiliates. Any refunds, credits or offsets, plus any interest received thereon, or reimbursements not forwarded or made within
the fifteen (15) Business Day period specified above shall bear interest from the date received by the refunding or reimbursing party (or its Affiliates) through and including the date of payment at the Interest Rate (treating the date received
as the Due Date for purposes of determining such interest). If, subsequent to a Tax Authority’s allowance of a refund, credit or offset, such Tax Authority reduces or eliminates such allowance, any refund, credit or offset, plus any interest
received thereon, forwarded or reimbursed under this Section 3.6 shall be returned to the party who had forwarded or reimbursed such refund, credit or offset and interest upon the request of such forwarding party in an amount equal to the
applicable reduction, including any interest received thereon. 

  
 13 

 3.7 Carrybacks. To the extent permitted under applicable Tax Laws, the Spinco
Group shall make the appropriate elections in respect of any Tax Returns to waive any option to carry back any net operating loss, any credits or any similar item from a Post-Distribution Period to any
Pre-Distribution Period or to any Straddle Period. Any refund of or credit for Taxes resulting from any such carryback by a member of the Spinco Group that cannot be waived shall be payable to Spinco net of
any Taxes incurred with respect to the receipt or accrual thereof and any expenses incurred in connection therewith. 
 3.8 Amended
Returns. Any amended Tax Return or claim for Tax refund, credit or offset with respect to any member of the Parent Group or Spinco Group may be made only by the Company (or its Affiliates) responsible for filing the original Tax Return
with respect to such member pursuant to Sections 3.1 or 3.2 (and, for the avoidance of doubt, subject to the same preparation, review, approval and filing rights set forth in Sections 3.1 or 3.2, to the extent applicable). Such Company (or its
Affiliates) shall not, without the prior written consent of the other Company (which consent shall not be unreasonably withheld or delayed), file, or cause to be filed, any such amended Tax Return or claim for Tax refund, credit or offset to the
extent that such filing, if accepted, is likely to increase the Taxes allocated to, or the Tax indemnity obligations under this Agreement of, such other Company for any Tax Year (or portion thereof). 

SECTION 4. Tax Payments. 

4.1 Payment of Taxes to Tax Authority. Parent shall be responsible for remitting to the proper Tax Authority the Tax shown on any
Tax Return for which it is responsible for filing pursuant to Section 3.1 or Section 3.2, and Spinco shall be responsible for remitting to the proper Tax Authority the Tax shown on any Tax Return for which it is responsible for filing
pursuant to Section 3.2. 
 4.2 Indemnification Payments. 

(a) Tax Payments Made by the Parent Group. If any member of the Parent Group is required to make a payment to a Tax Authority for Taxes
allocated to Spinco under this Agreement, Spinco will pay the amount of Taxes allocated to it to Parent not later than the later of (i) five (5) Business Days after receiving notification requesting such amount, and (ii) five
(5) Business Days prior to the date such payment is required to be made to such Tax Authority. Notwithstanding the preceding sentence, if any member of the Parent Group has made a prepayment of Periodic Taxes that are allocated to Spinco under
this Agreement, Spinco will pay the amount of such Taxes allocated to it to Parent not later than thirty (30) Business Days after the Distribution Date. 

  
 14 

 (b) Tax Payments Made by the Spinco Group. If any member of the Spinco Group is
required to make a payment to a Tax Authority for Taxes allocated to Parent under this Agreement, Parent will pay the amount of Taxes allocated to it to Spinco not later than the later of (i) five (5) Business Days after receiving
notification requesting such amount, and (ii) five (5) Business Days prior to the date such payment is required to be made to such Tax Authority. Notwithstanding the preceding sentence, if any member of the Spinco Group has made a
prepayment of Periodic Taxes that are allocated to Parent under this Agreement, Parent will pay the amount of such Taxes allocated to it to Spinco not later than thirty (30) Business Days after the Distribution Date. 

4.3 Interest on Late Payments. Payments pursuant to this Agreement that are not made by the date prescribed in this Agreement or,
if no such date is prescribed, not later than five (5) Business Days after demand for payment is made (the “Due Date”) shall bear interest for the period from and including the date immediately following the Due Date through
and including the date of payment at the Interest Rate. Such interest will be payable at the same time as the payment to which it relates. Interest will be calculated on the basis of a year of 365 days and the actual number of days for which
due. Any payments of interest made under this Section 4.3 shall be treated as taxable or deductible, as the case may be, to the Party entitled under this Agreement to retain such payment or required under this Agreement to make such payment, in
either case except as otherwise required by applicable law. 
 4.4 Tax Consequences of Payments. For all Tax purposes and to
the extent permitted by applicable Tax Law, and pursuant to Arrowsmith v. Commissioner, 344 U.S. 6 (1952), the parties hereto shall treat any payment (except as provided in Section 4.3) made pursuant to this Agreement as a capital
contribution or a distribution, as the case may be, immediately prior to the Distribution or as payments of an assumed or retained liability. 

4.5 Adjustments to Payments. The amount of any payment made pursuant to this Agreement shall be adjusted as follows: 

(a) If the receipt or accrual of any indemnity amounts for which any Party hereto (the “Indemnifying Party”) is required to
pay another Party (the “Indemnified Party”) under this Agreement causes, directly or indirectly, an increase in the taxable income of the Indemnified Party under one or more applicable Tax Laws, such payment shall be increased so
that, after the payment of any Taxes with respect to the payment, the Indemnified Party shall have realized the same net amount it would have realized had the payment not resulted in taxable income. For the avoidance of doubt, any liability for
Taxes due to an increase in taxable income described in the immediately preceding sentence shall be governed by this Section 4.5(a) and not by Section 2.2. 

(b) To the extent that Taxes for which the Indemnifying Party is required to pay to the Indemnified Party pursuant to this Agreement gives rise
to a deduction, credit or other Tax Benefit (including as a result of any election set forth in Section 4.6) to the Indemnified Party or any of its Affiliates, the amount of any payment made to the Indemnified Party by the Indemnifying Party
shall be decreased by taking into account any resulting reduction in Taxes actually realized by the Indemnified Party or any of its Affiliates resulting from such Tax Benefit (including as a result of any election set forth in Section 4.6). If
such a reduction in Taxes of the Indemnified Party occurs following the payment made to the Indemnified Party with respect to the relevant indemnified Taxes, the Indemnified Party shall promptly repay the Indemnifying Party the amount of such
reduction when actually realized. If the Tax Benefit arising from the foregoing reduction of Taxes described in this Section 4.5(b) is subsequently decreased or eliminated, then the Indemnifying Party shall promptly pay the Indemnified Party
the amount of the decrease in such Tax Benefit. This Section 4.5(b) shall not apply to the extent that Section 3.6(b) would also apply to cause recovery of the same amounts to the Indemnifying Party. 

  
 15 

 4.6 Section 336(e) Election.  

(a) Upon request by Parent, Spinco shall join with Parent in making a protective election under section 336(e) of the Code (and any similar
election under state or local law) (collectively, a “Section 336(e) Election”) with respect to the Distribution in accordance with Treasury Regulations section 1.336-2(h)
and (j) (and any applicable provisions under state and local law), provided that Spinco shall indemnify Parent for any cost to the Parent Group of making such an election (but it being understood that any such cost arising from Taxes shall be
limited to Excess Taxes). Parent and Spinco shall cooperate in the timely completion and/or filings of such elections and any related filings or procedures (including filing or amending any Tax Returns to implement an election that becomes
effective). 
 (b) If the Contribution and/or the Distribution fails to qualify (in whole or in part) for the
Tax-Free Status and Spinco or any member of the Spinco Group realizes an increase in Tax basis as a result of the Section 336(e) Election (the “Section 336(e) Tax
Basis”), then the cash Tax savings realized by Spinco and each member of the Spinco Group as a result of the Section 336(e) Tax Basis shall be shared between Parent and Spinco in the same proportion as the Taxes giving rise to the
Section 336(e) Tax Basis were borne by Parent and Spinco (after giving effect to the indemnification obligations in this Agreement). 

4.7 Certain Final Determinations. If an adjustment (a “Tax Adjustment”) pursuant to a Final Determination in a
Tax Contest initiated by a Tax Authority results in a Tax greater than the Tax shown on the relevant Tax Return for any Pre-Distribution Period, the Indemnified Party shall pay to the Indemnifying Party an
amount equal to any Tax Benefit as and when actually realized by such Indemnified Party as a result of such Tax Adjustment. The Parties agree that if an Indemnified Party is required to make a payment to an Indemnifying Party pursuant to this
Section 4.7, the Parties shall negotiate in good faith to set off the amount of such payment against any indemnity payments owed by the Indemnifying Party to the Indemnified Party, taking into account time value and similar concepts as
appropriate. 
 SECTION 5. Cooperation and Tax Contests. 

5.1 Cooperation. In addition to the obligations enumerated in Sections 3.4 and 5.4, Parent and Spinco will cooperate (and
cause their respective Subsidiaries and Affiliates to cooperate) with each other and with each other’s agents, including accounting firms and legal counsel, in connection with Tax matters, including provision of relevant documents and
information in their possession and making available to each other, as reasonably requested and available, personnel (including officers, directors, employees and agents of the Parties or their respective Subsidiaries or Affiliates) responsible for
preparing, maintaining, and interpreting information and documents relevant to Taxes, and personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any administrative or judicial proceedings
relating to Taxes. 

  
 16 

 5.2 Notices of Tax Contests. Each Company shall provide prompt notice to the
other Company of any pending or threatened Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware relating to (i) Taxes for which it is or may be indemnified by such other Company hereunder or (ii) Tax Items
that may affect the amount or treatment of Tax Items of such other Company. Such notice shall contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be accompanied by copies of any
notice and other documents received from any Tax Authority in respect of any such matters; provided, however, that failure to give such notification shall not affect the indemnification provided hereunder except, and only to the extent
that, the indemnifying Company shall have been actually prejudiced as a result of such failure. Thereafter, the indemnified Company shall deliver to the indemnifying Company such additional information with respect to such Tax Contest in its
possession that the indemnifying Company may reasonably request. 
 5.3 Control of Tax Contests. 

(a) Controlling Party. Subject to the limitations set forth in Section 5.3(b), each Filer (or the appropriate member of its Group)
shall, at its own cost and expense, be the Controlling Party with respect to any Tax Contest involving a Tax reported (or that, it is asserted, should have been reported) on a Tax Return for which such Company is responsible for filing (or causing
to be filed) pursuant to Section 3 of this Agreement (it being understood, for the avoidance of doubt but subject to the other provisions of this Section 5.3(a), that Parent shall be the Controlling Party with respect to any Tax Contest
involving Distribution Taxes), in which case any Non-Filer that could have liability under this Agreement for a Tax to which such Tax Contest relates shall be treated as the “Non-Controlling Party.” Notwithstanding the immediately preceding sentence, if a Non-Filer (x) acknowledges to the Filer in writing its full liability under this
Agreement to indemnify for any Tax, and (y) provides to the Filer evidence (that is satisfactory to the Filer as determined in the Filer’s reasonable discretion) of the Non-Filer’s financial
readiness and capacity to make such indemnity payment, then thereafter with respect to the Tax Contest relating solely to such Tax the Non-Filer shall be the Controlling Party (subject to Section 5.3(b))
and the Filer shall be treated as the Non-Controlling Party. For the avoidance of doubt, Parent shall, at its own cost and expense, be the Controlling Party with respect to the matters set forth in Schedule A.

 (b) Non-Controlling Party Participation Rights. With respect to a Tax Contest of any Tax
Return that could result in a Tax liability that is allocated under this Agreement, (i) the Non-Controlling Party shall, at its own cost and expense, be entitled to participate in such Tax Contest and to
provide comments and suggestions to the Controlling Party, such comments and suggestions not to be unreasonably rejected, (ii) the Controlling Party shall keep the Non-Controlling Party updated and
informed, and shall consult with the Non-Controlling Party, (iii) the Controlling Party shall act in good faith with a view to the merits in connection with the Tax Contest, and (iv) the Controlling
Party shall not settle or compromise such Tax Contest without the prior written consent of the Non-Controlling Party (which consent shall not be unreasonably withheld). 

  
 17 

 5.4 Cooperation Regarding Tax Contests. The Parties shall provide each other
with all information relating to a Tax Contest which is needed by the other Party or Parties to handle, participate in, defend, settle or contest the Tax Contest. At the request of any party, the other Parties shall take any action (e.g.,
executing a power of attorney) that is reasonably necessary in order for the requesting Party to exercise its rights under this Agreement in respect of a Tax Contest. Spinco shall assist Parent, and Parent shall assist Spinco, in taking any remedial
actions that are necessary or desirable to minimize the effects of any adjustment made by a Tax Authority. The Indemnifying Party or Parties shall reimburse the Indemnified Party or Parties for any reasonable out-of-pocket costs and expenses incurred in complying with this Section 5.4. 
 SECTION
6. Tax Records. 
 6.1 Retention of Tax Records. Each of Parent and Spinco shall preserve, and shall cause their
respective Subsidiaries to preserve, all Tax Records that are in their possession, and that could affect the liability of any member of the other Group for Taxes, for as long as the contents thereof may become material in the administration of any
matter under applicable Tax Law, but in any event until the later of (x) the expiration of any applicable statute of limitations, as extended, and (y) seven years after the Distribution Date. 

6.2 Access to Tax Records. Spinco shall make available, and cause its Subsidiaries to make available, to members of the Parent
Group for inspection and copying the portion of any Tax Record in their possession that relates to a Pre-Distribution Period or Post-Distribution Period and which is reasonably necessary for the preparation,
review, approval or filing of a Tax Return by a member of the Parent Group or any of their Affiliates or with respect to any Tax Contest with respect to such return. Parent shall make available, and cause its Subsidiaries to make available, to
members of the Spinco Group for inspection and copying the portion of any Tax Record in their possession that relates to a Pre-Distribution Period and which is reasonably necessary for the preparation, review,
approval or filing of a Tax Return by a member of the Spinco Group or any of their Affiliates or with respect to any Tax Contest with respect to such return. 

6.3 Confidentiality. Each party hereby agrees that it will hold, and shall use its reasonable best efforts to cause its officers,
directors, employees, accountants, counsel, consultants, advisors and agents to hold, in confidence all records and information prepared and shared by and among the Parties in carrying out the intent of this Agreement, except as may otherwise be
necessary in connection with the filing of Tax Returns or any administrative or judicial proceedings relating to Taxes or unless disclosure is compelled by a governmental authority. Information and documents of one Party (the “Disclosing
Party”) shall not be deemed to be confidential for purposes of this Section 6.3 to the extent that such information or document (i) is previously known to or in the possession of the other Party or Parties (the “Receiving
Party”) and is not otherwise subject to a requirement to be kept confidential, (ii) becomes publicly available by means other than unauthorized disclosure under this Agreement by the Receiving Party or (iii) is received from a
third party without, to the knowledge of the Receiving Party after reasonable diligence, a duty of confidentiality owed to the Disclosing Party. 

  
 18 

 SECTION 7. Representations and Covenants. 

7.1 Covenants of Parent and Spinco. 

(a) Parent hereby covenants that, to the fullest extent permissible under U.S. federal income and state Tax Laws, it will, and will cause the
members of the Parent Group to, treat the applicable Transactions in accordance with the Agreed Treatment. Spinco hereby covenants that, to the fullest extent permissible under U.S. federal income and state Tax Laws, it will, and will cause each
Subsidiary of Spinco to, treat the applicable Transactions in accordance with the Agreed Treatment. 
 (b) Parent further covenants that, as
of and following the date hereof, Parent shall not and shall cause the members of the Parent Group not to take any action that (or fail to take any action the omission of which) would be inconsistent with the applicable Transactions qualifying for
the Agreed Treatment or that would preclude the applicable Transactions from qualifying for the Agreed Treatment. 
 (c) Spinco further
covenants that, as of and following the date hereof, Spinco shall not and shall cause its Subsidiaries not to take any action that (or fail to take any action the omission of which) would be inconsistent with the applicable Transactions qualifying
for the Agreed Treatment or that would preclude the applicable Transactions from qualifying for the Agreed Treatment. 
 7.2 Covenants of
Spinco. 
 (a) Without limiting the generality of the provisions of Section 7.1, Spinco, on behalf of itself and its
Subsidiaries, agrees and covenants that Spinco and each of its Subsidiaries will not, directly or indirectly, during the Restriction Period, (i) take any action that would result in Spinco’s ceasing to be engaged in the active conduct of
the Spinco Business with the result that Spinco is not engaged in the active conduct of a trade or business within the meaning of section 355(b)(2) of the Code, (ii) redeem or otherwise repurchase (directly or through an Affiliate of
Spinco) any of Spinco’s outstanding stock, other than through stock purchases meeting the requirements of section 4.05(1)(b) of Revenue Procedure 96-30, 1996-1 C.B.
696 (but it being understood, for the avoidance of doubt, that no agreement or covenant under this Section 7.2(a)(ii) is being entered with respect to Compensatory Equity Net Share Settlements), (iii) amend the certificate of incorporation
(or other organizational documents) of Spinco that would convert one class of Spinco’s stock into another class of its stock or affect the relative voting rights of any class of Spinco’s stock, (iv) liquidate or partially liquidate
Spinco, (v) merge Spinco with any other corporation (other than in a transaction that does not affect the relative shareholding of Spinco shareholders), sell or otherwise dispose of (other than in the ordinary course of business) the assets of
Spinco and its Subsidiaries, or take any other action or actions if such merger, sale, other disposition or other action or actions in the aggregate would have the effect that one or more Persons acquire (or have the right to acquire), directly or
indirectly, as part of a plan or series of related transactions, assets representing one-half or more of the asset value of the Spinco Group, or (vi) take any other action or actions that in the aggregate
would have the effect that one or more Persons acquire (or have the right to acquire), directly or indirectly, as part of a plan or series of related transactions, stock of Spinco (including by virtue of the Equity Award Transfer) representing a
Thirty-Five-Percent Equity Interest in Spinco (as determined for purposes of section 355(e) of the Code), other than a Permitted Acquisition. 

  
 19 

 7.3 Covenants of Parent. 

(a) Without limiting the generality of the provisions of Section 7.1, Parent, on behalf of itself and each member of the Parent Group,
agrees and covenants that Parent and each member of the Parent Group will not, directly or indirectly, during the Restriction Period, (i) take any action that would result in Parent’s ceasing to be engaged in the active conduct of the
Parent Business with the result that Parent is not engaged in the active conduct of a trade or business within the meaning of section 355(b)(2) of the Code, (ii) redeem or otherwise repurchase (directly or through an Affiliate of Parent)
any of Parent’s outstanding stock, other than through stock purchases meeting the requirements of section 4.05(1)(b) of Revenue Procedure 96-30, 1996-1 C.B.
696 (but it being understood, for the avoidance of doubt, that no agreement or covenant under this Section 7.3(a)(ii) is being entered with respect to Compensatory Equity Net Share Settlements), (iii) amend the certificate of incorporation
(or other organizational documents) of Parent that would convert one class of Parent’s stock into another class of its stock or affect the relative voting rights of any class of Parent’s stock, (iv) liquidate or partially liquidate
Parent, (v) merge Parent with any other corporation (other than in a transaction that does not affect the relative shareholding of Parent shareholders), sell or otherwise dispose of (other than in the ordinary course of business) the assets of
Parent and its Subsidiaries, or take any other action or actions if such merger, sale, other disposition or other action or actions in the aggregate would have the effect that one or more Persons acquire (or have the right to acquire), directly or
indirectly, as part of a plan or series of related transactions, assets representing one-half or more of the asset value of the Parent Group, or (vi) take any other action or actions that in the aggregate
would have the effect that one or more Persons acquire (or have the right to acquire), directly or indirectly, as part of a plan or series of related transactions, stock of Parent representing a Thirty-Five-Percent Equity Interest in Parent (as
determined for purposes of section 355(e) of the Code). 
 (b) Nothing in this Section 7 shall be construed to give Spinco or any
Affiliates of Spinco any right to remedies other than indemnification for any increase in the actual Tax liability (and/or decrease in Tax Benefit) of Spinco or any Affiliate of Spinco that results from Parent Group’s failure to comply with the
covenants and representations in this Section 7. 
 7.4 Exceptions. 

(a) Exceptions with Respect to Spinco. 

(i) Notwithstanding Section 7.2 above, Spinco or any of its Subsidiaries may take a Spinco Restricted Action if Parent
consents in writing to such Spinco Restricted Action, or if Spinco provides Parent with Satisfactory Guidance concluding that such Spinco Restricted Action will not alter the Tax-Free Status of the
Distribution in respect of Parent and Parent’s shareholders. 
 (ii) Spinco and each of its Subsidiaries agree that
Parent and each Parent Affiliate are to have no liability for any Tax resulting from any Spinco Restricted Actions permitted pursuant to this Section 7.4(a) and, subject to Section 2.2, agree to indemnify and hold harmless each Parent
Indemnified Party against any such Tax. Spinco shall bear all costs incurred by it, and all reasonable costs incurred by Parent, in connection with requesting and/or obtaining any Satisfactory Guidance. 

  
 20 

 (b) Exceptions with Respect to Parent. 

(i) Notwithstanding Section 7.3 above, Parent or any of its Subsidiaries may take a Parent Restricted Action if Spinco
consents in writing to such Parent Restricted Action, or if Parent provides Spinco with Satisfactory Guidance concluding that such Parent Restricted Action will not alter the Tax-Free Status of the
Distribution in respect of Spinco and Spinco’s shareholders. 
 (ii) Parent and each of its Subsidiaries agree that
Spinco and each Spinco Affiliate are to have no liability for any Tax resulting from any Parent Restricted Actions permitted pursuant to this Section 7.4(b) and, subject to Section 2.2, agree to indemnify and hold harmless each Spinco
Indemnified Party against any such Tax. Parent shall bear all costs incurred by it, and all reasonable costs incurred by Spinco, in connection with requesting and/or obtaining any Satisfactory Guidance. 

7.5 Injunctive Relief. For the avoidance of doubt, Parent shall have the right to seek injunctive relief to prevent Spinco or any
of its Subsidiaries from taking any action that is not consistent with the covenants of Spinco or any of its Subsidiaries under Section 7.1 or 7.2. 

7.6 Further Assurances. For the avoidance of doubt, (i) neither Parent nor a member of the Parent Group shall take any action on
the Distribution Date that would result in an increase of the actual Tax liability (and/or decrease of any Tax Benefit) of Spinco or any of its Subsidiaries, other than in the ordinary course of business, except for actions undertaken in connection
with the Distribution, which actions are described in the Tax Opinion or the Tax Opinion Representations, and (ii) neither Spinco nor any of its Subsidiaries shall take any action on the Distribution Date that would result in an increase of the
actual Tax liability (and/or decrease of any Tax Benefit) of Parent or a member of the Parent Group, other than in the ordinary course of business, except for actions undertaken in connection with the Distribution, which actions are described in the
Tax Opinion or the Tax Opinion Representations. 
 SECTION 8. General Provisions. 

8.1 General Provisions. Without limiting any provision of this Agreement, the provisions of Article IX of the Distribution Agreement,
except for Sections 9.12 (Payment Terms), 9.15 (Third-Party Beneficiaries), and 9.20 (Specific Performance) thereof, shall apply to this Agreement, mutatis mutandis. 

8.2 Third-Party Beneficiaries. Except with respect to Parent Indemnified Parties and Spinco Indemnified Parties, and in each
case, only where and as indicated herein, this Agreement is solely for the benefit of the Parties and their respective Subsidiaries and Affiliates and should not be deemed to confer upon any other Person any remedy, claim, liability, reimbursement,
cause of action or other right in excess of those existing without reference to this Agreement. Notwithstanding anything in this Agreement to the contrary, this Agreement is not intended to confer upon any Spinco Indemnified Parties any rights or
remedies against Spinco hereunder, and this Agreement is not intended to confer upon any Parent Indemnified Parties any rights or remedies against Parent hereunder. 

[Signature page follows] 

  
 21 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by the respective
officers as of the date set forth above. 
  

			
	Vector Group Ltd.
		
	By:	 	 /s/ J. Bryant Kirkland III

	Name:	 	J. Bryant Kirkland III
	Title:	 	Senior Vice President, Treasurer and Chief Financial Officer
	
	Douglas Elliman Inc.
		
	By:	 	 /s/ Richard J. Lampen

	Name:	 	Richard J. Lampen
	Title:	 	Executive Vice President and Chief Operating Officer

  
 [Signature page to Tax
Disaffiliation Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}]]