Document:

Zep Inc. Long-Term Incentive Plan, dated October 31, 2007

 Exhibit 10.4 
 ZEP INC. 
 LONG-TERM INCENTIVE PLAN 
 (Effective as of October 31, 2007) 
  

	1.	Purpose 

 The purposes of the Zep Inc. Long-Term
Incentive Plan (the “Plan”) are to provide additional incentives to those officers, key executives and directors of Zep Inc. (the “Company”) and key employees of its Subsidiaries (as hereinafter defined) whose substantial
contributions are essential to the continued growth and profitability of the Company’s businesses, to strengthen their commitment to the Company and its Subsidiaries, to further motivate those officers, other executives and directors to perform
their assigned responsibilities diligently and skillfully, and to attract and retain competent and dedicated individuals whose efforts will result in the long term growth and profitability of the Company and, over time, appreciation in the market
value of its stock. To accomplish these purposes, the Plan provides that the Company may grant to Eligible Employees, Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Performance Units and Performance Shares (as each term is hereinafter defined) and to eligible Directors, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock and Restricted Stock Units. 
 In connection with the spin-off (the “Spin-off”) of the Company by Acuity Brands, Inc. (“Acuity Brands”), effective October 31,
2007, Options and Awards will be granted under this Plan as Conversion Awards to former employees of Acuity Brands and its Subsidiaries who remain or become employees of the Company and its Subsidiaries. 
  

	2.	Definitions For purposes of the Plan: 

 (a)
“Acuity Brands” means Acuity Brands, Inc., a Delaware corporation, or any successor corporation. 
 (b) “Acuity Brands
Conversion Awards” means Options or Awards that are issued in substitution of, or in connection with, stock options or grants of restricted stock or restricted stock units that were granted under the Acuity Brands Long-Term Incentive Plan to
employees of Acuity Brands and its Subsidiaries who became employees of the Company and its Subsidiaries (or who were otherwise considered Transferred Individuals under the Employee Benefits Agreement) as of the date of the Spin-off of the Company
to the stockholders of Acuity Brands. As provided in Sections 6(j) and 7(c), the Acuity Brands Conversion Awards shall have the same material terms and conditions under the Plan as such awards had under the Acuity Brands Long-Term Incentive
Plan. 
 (c) “Acuity Brands Long-Term Incentive Plan” means the long-term incentive plan sponsored by Acuity Brands, known as the
Acuity Brands, Inc. Long-Term Incentive Plan. 
 (d) “Adjusted Fair Market Value” means in the event of a Change in Control, the

 
greater of (i) the highest price per share paid to holders of the Shares in any transaction (or series of transactions) constituting or resulting in a
Change in Control or (ii) the highest Fair Market Value of a Share during the ninety (90) day period ending on the date of a Change in Control. 
 (e) “Agreement” means the written agreement between the Company and an Optionee or Grantee evidencing the grant of an Option or Award and setting forth the terms and conditions thereof. The Committee may,
but need not, require that the Participant execute a copy of the Agreement before the Agreement becomes effective. 
 (f) “Award”
means a grant of a Stock Appreciation Right, Restricted Stock, Restricted Stock Units, Performance Awards, or any or all of them. 
 (g)
“Board” means the Board of Directors of the Company. 
 (h) “Business Unit” means any of the operating units of the
Company, or its Subsidiaries, designated as a Business Unit by the Committee. 
 (i) “Change in Capitalization” means any increase
or reduction in the number of Shares, or any change (including, but not limited to, a change in value) or exchange of Shares for a different number or kind of shares or other securities of the Company, by reason of a reclassification,
recapitalization, merger, consolidation, reorganization, spin-off, split-up, issuance of warrants or rights or debentures, stock dividend, stock split or reverse stock split, extraordinary cash dividend, property dividend, combination or exchange of
shares, repurchase of shares, public offering, private placement, change in corporate structure or otherwise. 
 (j) “Change in
Control” means any of the following events: 
 (i) The acquisition (other than from the Company) by any “Person” (as the term
is used for purposes of Sections 13(d) or 14(d) of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of the combined voting power of the
Company’s then outstanding voting securities; or 
 (ii) The individuals who, as of October 31, 2007, are members of the Board (the
“Incumbent Board”), cease for any reason to constitute at least two-thirds of the Board; provided, however, that if the election, or nomination for election by the Company’s stockholders, of any new director was approved by a vote of
at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Agreement, be considered as a member of the Incumbent Board; or 
 (iii) Consummation of a merger or consolidation involving the Company if the stockholders of the Company, immediately before such merger or consolidation do not, as a result of such merger or consolidation, own,
directly or indirectly, more than sixty percent (60%) of the combined voting power of the then outstanding voting securities of the corporation resulting from such merger or consolidation in substantially the same proportion as their ownership
of the combined voting power of the voting securities of the Company outstanding immediately before such merger or consolidation; or 
  

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 (iv) Consummation of a complete liquidation or dissolution of the Company or an agreement for the sale or
other disposition of all or substantially all of the assets of the Company. 
 Notwithstanding the foregoing, a Change in Control shall not
be deemed to occur pursuant to Section 2(j)(i), solely because twenty percent (20%) or more of the combined voting power of the Company’s then outstanding securities is acquired by (i) a trustee or other fiduciary holding
securities, under one or more employee benefit plans maintained by the Company or any of its subsidiaries or (ii) any corporation which, immediately prior to such acquisition, is owned directly or indirectly by the stockholders of the Company
in the same proportion as their ownership of stock in the Company immediately prior to such acquisition. 
 (k) “Code” means the
Internal Revenue Code of 1986, as amended. 
 (l) “Committee” means a committee consisting of two or more non-employee members of
the Board who are appointed by the Board to administer the Plan and to perform the functions set forth herein. The Board or the Committee may designate a subcommittee of members of the Committee to act on certain matters where such designation is
necessary or desirable. 
 (m) “Company” means Zep Inc., a Delaware corporation, or any successor corporation. 
 (n) “Director” means any individual who is a member of the Board of Directors of the Company; provided, however, that any Director who is
employed by the Company or any Employer shall not be considered a Director, but instead shall be considered an employee for purposes of the Plan. 
 (o) “Disability” means a physical or mental incapacity which impairs the Optionee’s or Grantee’s ability to substantially perform his duties for a period of one hundred eighty (180) consecutive days. The
determination of Disability shall be made by the Committee based upon the information provided to it. 
 (p) “Eligible Employee”
means any officer or other employee of the Company or a Subsidiary designated by the Committee as eligible to receive Options or Awards, subject to the conditions set forth herein. 
 (q) “Employee Benefits Agreement” means the Employee Benefits Agreement between Acuity Brands and the Company, dated as of October 31,
2007, which provides for the treatment of the employee plans in connection with the Spin-off of the Company from Acuity Brands. 
 (r)
“Employment Agreement” means with respect to a Participant who is an employee, the written agreement between the Company or a Subsidiary and the employee providing for the terms of such employee’s employment with the Company or a
Subsidiary, as it may be amended from time to time. 
 (s) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

  

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 (t) “Fair Market Value” means the fair market value of the Shares as determined in good faith
by the Committee; provided, however, that (A) if the Shares are admitted to trading on a national securities exchange, Fair Market Value on any date shall be the last sale price reported for the Shares on such exchange on such date or, if no
sale was reported on such date, on the last date preceding such date on which a sale was reported, and (B) if the Shares are not listed on any securities exchange, but nevertheless are publicly traded and reported (through the OTC Bulletin
Board or otherwise), Fair Market Value on such date shall be the closing sales price on such date (or, if there are no sales on such date, on the next preceding day). 
 For purposes of subsection (A), if the Shares are traded on more than one securities exchange then the largest U.S. exchange on which the Shares are traded shall be referenced to determine Fair Market Value.

 (u) “Grantee” means a person to whom an Award has been granted under the Plan. 
 (v) “Incentive Stock Option” means an Option within the meaning of Section 422 of the Code. 
 (w) “Named Executive Officer” means an Eligible Employee who as of the date of grant, vesting and/or payout of an Award or Option is deemed by
the Committee to be a “covered employee” as defined in Code Section 162(m) and the regulations and rulings thereunder. 
 (x)
“Nonqualified Stock Option” means an Option which is not an Incentive Stock Option. 
 (y) “Option” means an Incentive
Stock Option, a Nonqualified Stock Option, or either or both of them. 
 (z) “Optionee” means a person to whom an Option has been
granted under the Plan. 
 (aa) “Participant” means an Eligible Employee or Director who has an outstanding Award or Option under
the Plan. 
 (bb) “Performance Awards” means Performance Units, Performance Shares or either or both of them. 
 (cc) “Performance Cycle” means the time period specified by the Committee at the time a Performance Award is granted during which the
performance of the Company, a Subsidiary or a Business Unit will be measured. 
 (dd) “Performance Shares” means Restricted Stock
granted under Section 8 of the Plan. 
 (ee) “Performance Unit” means Performance Units granted under Section 8 of the
Plan. 
  

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 (ff) “Restricted Stock” means Shares issued or transferred to a Participant which are subject
to restrictions. Restricted Stock may be awarded subject to restrictions which lapse over time without regard to the performance of the Company, a Subsidiary or a Business Unit, pursuant to Section 7 hereof, or may be awarded as Performance
Shares pursuant to Section 8 hereof. 
 (gg) “Restricted Stock Units (or RSUs)” means a right granted under Section 7 of
the Plan to receive a number of Shares, or a cash payment for each such Share equal to the Fair Market Value of a Share, on a specified date. 
 (hh) “Retirement” means the voluntary termination of employment by the Grantee or Optionee at any time on or after the Grantee or Optionee attains age 65. 
 (ii) “Shares” means the common stock, par value $.01 per share, of the Company (including any new, additional or different stock or securities
resulting from a Change in Capitalization). 
 (jj) “Stock Appreciation Right” (or “SAR”) means a right granted under
Section 9 of the Plan to receive for each Share subject to an Award a cash payment or Shares equal to the excess, if any, of (i) the Fair Market Value of a Share on the exercise date, over (ii) the exercise price of the SAR.

 (kk) “Subsidiary” means any corporation in an unbroken chain of corporations, beginning with the Company (or Acuity Brands, in
the case of Acuity Brands Conversion Awards), if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. The term “Subsidiary” shall also include a partnership in which the Company or a Subsidiary owns 50% or more of the profits interest or capital interest in the partnership. 
 (ll) “Successor Corporation” means a corporation, or a parent or subsidiary thereof within the meaning of Section 424(a) of the Code,
which issues or assumes an Option in a transaction to which Section 424(a) of the Code applies. 
 (mm) “Ten-Percent
Stockholder” means an Eligible Employee who, at the time an Incentive Stock Option is to be granted to him, owns (within the meaning of Section 422(b)(6) of the Code) stock possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company. 
 (nn) “Termination for Cause” means the Optionee or Grantee has terminated
employment and has been found by the Committee to be guilty of theft, embezzlement, fraud or misappropriation of the Company’s property or any action which, if the individual were an officer of the Company, would constitute a breach of
fiduciary duty, provided that if an Optionee or Grantee has an Employment Agreement, “Cause” shall mean Cause as defined in such Agreement. 
  

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	3.	Administration 

 (a) The Plan shall be administered
by the Committee, which shall hold such meetings as may be necessary for the proper administration of the Plan. No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to
the Plan, or any Agreements, Options or Awards under the Plan, and all members of the Committee shall be fully indemnified by the Company with respect to any such action, determination or interpretation. 
 (b) Subject to the express terms and conditions set forth herein, the Committee shall have the power from time to time: 
 (i) to determine those Eligible Employees and Directors to whom Options shall be granted under the Plan and the number of Incentive Stock Options and/or
Nonqualified Stock Options to be granted to each Eligible Employee or Director and to prescribe the terms and conditions (which need not be identical) of each Option, including the purchase price per Share subject to each Option, and to make any
amendment or modification to any Agreement consistent with the terms of the Plan; 
 (ii) to select those Eligible Employees and Directors to
whom Awards shall be granted under the Plan and to determine the amount of Shares payable, the number of SARs, Performance Units, Performance Shares, RSUs, and/or shares of Restricted Stock, to be granted pursuant to each Award, the terms and
conditions of each Award, including the restrictions or performance criteria relating to such Award, the maximum value of each Award, and to make any amendment or modification to any Agreement consistent with the terms of the Plan; 
 (iii) to delegate to the Chief Executive Officer the authority to grant Options or Awards with respect to Shares to employees of the Company from a pool
of Shares established by the Committee, provided that such grants are made in accordance with applicable law. 
 Provided, however, that the
Board can exercise any of the powers set forth in this Section 3(b), subject to any limitations imposed by Code Section 162(m) or Rule 16b-3 under the Exchange Act. 
 (c) Subject to the express terms and conditions set forth herein, the Committee shall have the power from time to time: 
 (i) to construe and interpret the Plan and the Options and Awards granted thereunder and to establish, amend and revoke rules and regulations for the
administration of the Plan, including, but not limited to, correcting any defect or supplying any omission, or reconciling any inconsistency in the Plan or in any Agreement, in the manner and to the extent it shall deem necessary or advisable to
make the Plan fully effective, and all decisions and determinations by the Committee in the exercise of this power shall be final, binding and conclusive upon the Company, a Subsidiary, and the Optionees and Grantees, as the case may be; 

 

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 (ii) to determine the duration and purposes for leaves of absence which may be granted to an Optionee or
Grantee on an individual basis without constituting a termination of employment or service for purposes of the Plan; 
 (iii) to exercise its
discretion with respect to the powers and rights granted to it as set forth in the Plan; and 
 (iv) generally, to exercise such powers and
to perform such acts as are deemed necessary or advisable to promote the best interests of the Company with respect to the Plan. 
  

	4.	Shares Subject to Program 

 (a) Subject to
adjustment as provided in (d) below, the aggregate number of Shares which are available for issuance pursuant to Options or Awards under the Plan is Four Million Three Hundred Thousand (4,300,000) Shares. Except for Awards of Options or
SARs, or Awards that must be settled in cash, the number of Shares reserved under the Plan that may be granted in the form of other Awards (“Full Value Grants”) will be counted against the 4,300,000 Plan maximum so that the maximum is
reduced by one and one-half (1.5) Shares for each Share subject to the Full Value Grants . The number of Incentive Stock Options that may be issued under the Plan is up to 2,000,000. Shares to be issued under the Plan shall be made available
from Shares currently authorized but unissued or Shares currently held (or subsequently acquired) by the Company as treasury shares, including Shares purchased in the open market or in private transactions. 
 (b) The following rules shall apply for purposes of the determination of the number of Shares available for grant under the Plan: 
 (i) If, for any reason, any Shares awarded or subject to purchase under the Plan are not delivered or purchased, or are reacquired by the Company, for
reasons including, but not limited to, a forfeiture of Restricted Stock or termination, expiration or cancellation of an Option, Stock Appreciation Right, Restricted Stock Units, or Performance Shares (“Returned Shares”), such Returned
Shares shall not be charged against the aggregate number of Shares available for issuance pursuant to Options or Awards under the Plan and shall again be available for issuance pursuant to an Option or Award under the Plan (with Returned Shares
relating to Full Value Grants counting as 1.5 shares). 
 (ii) Each Performance Share awarded that may be settled in Shares shall be counted
as one and one-half Shares subject to an Award. Performance Shares that may not be settled in Shares (or that may be settled in Shares but are not) shall not result in a charge against the aggregate number of Shares available for issuance. Each
Stock Appreciation Right to be settled in Shares shall be counted as one Share subject to an Award, regardless of the number of Shares that are actually issued upon exercise and settlement of the Stock Appreciation Right. Stock Appreciation Rights
that may only be settled in cash and may not be settled in Shares shall not result in a charge against the aggregate number of Shares available for issuance. In addition, if a Stock Appreciation Right is granted in connection with an Option and the
exercise of the Stock Appreciation Right results in the loss of the Option right, the Shares that otherwise would 

  

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have been issued upon the exercise of such related Option shall not result in a charge against the aggregate number of Shares available for issuance.

 (iii) Each Restricted Stock Unit that may be settled in Shares shall be counted as one and one-half Shares subject to an award. Restricted
Stock Units that may only be settled in cash and may not be settled in Shares shall not result in a charge against the aggregate number of Shares available for issuance. 
 (c) For purposes of Options or Awards to an individual who is a Named Executive Officer, the following rules shall apply to Options or Awards under the Plan: 
 (i) The maximum number of Options and Stock Appreciation Rights that, in the aggregate, may be granted pursuant to Awards in any one fiscal year of the
Company to any one Participant shall be five hundred thousand (500,000). 
 (ii) The maximum aggregate number of Shares of Restricted Stock,
number of Restricted Stock Units and Performance Shares or Units that may be granted pursuant to Awards in any one fiscal year of the Company to any one Participant shall be one hundred fifty thousand (150,000) Shares. 
 (d) In the event of any Change in Capitalization, the Committee shall make such adjustment in the number and class of Shares which may be delivered under
the Plan, and in the number and class of and/or price of Shares subject to outstanding Options or Awards granted under the Plan, as may be determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights;
provided, however, that the number of Shares subject to any Option or Award shall always be a whole number and the Committee shall make such adjustments as are necessary to insure Options or Awards of whole Shares. Equitable adjustments shall be
made by the Committee, as it determines are necessary and appropriate, in: 
 (i) the limitation on the aggregate number of Shares that may be
awarded as set forth in Section 4(a), including, without limitation, with respect to Incentive Stock Options; 
 (ii) the limitations on
the aggregate number of Shares that may be awarded to any one single Participant as set forth in Section 4(c); 
 (iii) the number and
class of Shares that may be subject to an Option or Award, and which have not been issued or transferred under an outstanding Option or Award; 
 (iv) the Option Price under outstanding Options and Stock Appreciation Rights and the number of Shares to be transferred in settlement of outstanding Options or Stock Appreciation Rights; and 
 (v) the terms, conditions or restrictions of any Option or Award or Agreement, including the price payable for the acquisition of Shares; provided,
however, that all such adjustments made in respect of each ISO shall be accomplished so that such Option shall continue to be an incentive stock option within the meaning of Code Section 422. 
  

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	5.	Eligibility 

 Subject to the provisions of the Plan,
the Committee shall have full and final authority to select those Eligible Employees and Directors who will receive Options and/or Awards; provided, however, that no Eligible Employee shall receive any Incentive Stock Options unless he is an
employee of the Company or a Subsidiary (other than a Subsidiary that is a partnership) at the time the Incentive Stock Option is granted. 
  

	6.	Options 

 The Committee may grant Options in
accordance with the Plan and the terms and conditions of the Option shall be set forth in an Agreement. Options may be granted based upon the achievement of such Performance Measures (as listed on Appendix A) as the Committee may determine and
subject to such other terms and conditions as the Committee may specify. The Committee shall have sole discretion in determining the number of Shares underlying each Option to grant a Participant; provided, however, that in the case of any Incentive
Stock Option granted under the Plan, the aggregate Fair Market Value (determined at the time such Option is granted) of the Shares to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under
the Plan and all other incentive stock option plans of the Company and any Subsidiary) shall not exceed $100,000. Each Option and Agreement shall be subject to the following conditions: 
 (a) Purchase Price. The purchase price or the manner in which the purchase price is to be determined for Shares under each Option shall be set
forth in the Agreement, provided, that the purchase price per Share under each Option (other than Acuity Brands Conversion Awards) shall not be less than 100% of the Fair Market Value of a Share on the date the Option is granted (110% in the case of
an Incentive Stock Option granted to a Ten-Percent Stockholder). 
 (b) Duration. Options granted hereunder shall be for such term as
the Committee shall determine, provided that no Option shall be exercisable after the expiration of ten (10) years from the date it is granted (five (5) years in the case of an Incentive Stock Option granted to a Ten-Percent Stockholder).
The Committee may, subsequent to the granting of any Option, extend the term thereof, but in no event shall the term as so extended exceed the maximum term provided for in the preceding sentence. 
 (c) Non-Transferability. Unless the Committee otherwise provides for transferability in the Agreement, no Option granted hereunder shall be
transferable by the Optionee, otherwise than by will or the laws of descent and distribution, and an Option may be exercised during the lifetime of such Optionee only by the Optionee or his guardian or legal representative. The terms of such Option
shall be final, binding and conclusive upon the beneficiaries, executors, administrators, heirs and successors of the Optionee. 
 (d)
Vesting. Subject to Section 6(h) hereof, each Option shall be exercisable in such installments (which need not be equal or the same for each Optionee) and at such times (which may include performance requirements) as may be designated by
the Committee, but not less than a year from the grant date except as otherwise provided in the last sentence in this Section 6(d), and set forth in the Agreement. To the extent not exercised, installments shall 

  

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accumulate and be exercisable, in whole or in part, at any time after becoming exercisable, but not later than the date the Option expires. The Committee may
accelerate the exercisability of any Option or portion thereof at any time. 
 (e) Method of Exercise. The exercise of an Option shall
be made only by a written notice delivered in person or by mail to the Secretary of the Company at the Company’s principal executive office (or in such other manner and to such other person or address as may be designated by the Committee),
specifying the number of Shares to be purchased and accompanied by payment therefor and otherwise in accordance with the Agreement pursuant to which the Option was granted. The purchase price for any Shares purchased pursuant to the exercise of an
Option shall be paid in full upon such exercise, as determined by the Committee in its discretion or as provided in the Agreement, in cash, by check, or by transferring Shares to the Company or by attesting to the ownership of Shares upon such terms
and conditions as determined by the Committee. The written notice pursuant to this Section 6(e) may also provide instructions from the Optionee to the Company that upon receipt of the purchase price in cash from the Optionee’s broker or
dealer, designated as such on the written notice, in payment for any Shares purchased pursuant to the exercise of an Option, the Company shall issue such Shares directly to the designated broker or dealer. Any Shares the Optionee transfers to the
Company or attests to owning as payment of the purchase price under an Option shall be valued at their Fair Market Value on the day preceding the date of exercise of such Option. If requested by the Committee, the Optionee shall deliver the
Agreement evidencing the Option to the Secretary of the Company who shall endorse thereon a notation of such exercise and return such Agreement to the Optionee. No fractional Shares shall be issued upon exercise of an Option and the number of Shares
that may be purchased upon exercise shall be rounded to the nearest number of whole Shares. 
 (f) Rights of Optionees. No Optionee
shall be deemed for any purpose to be the owner of any Shares subject to any Option unless and until (i) the Option shall have been exercised pursuant to the terms thereof, (ii) the Company shall have issued and delivered the Shares to the
Optionee and (iii) the Optionee’s name shall have been entered as a stockholder of record on the books of the Company. Thereupon, the Optionee shall have full voting, dividend and other ownership rights with respect to such Shares.

 (g) Termination of Employment. The Agreement shall set forth the terms and conditions of the Option upon the termination of the
Optionee’s employment with the Company, a Subsidiary or a Business Unit (including an Optionee’s ceasing to be employed by a Subsidiary or Business Unit as a result of the sale of such Subsidiary or Business Unit or an interest in such
Subsidiary or Business Unit), as the Committee may, in its discretion, determine at the time the Option is granted or thereafter, provided, however no Option shall be exercisable beyond its maximum term as described in Section 6(b) hereof.

 (h) Effect of Change in Control. Unless otherwise provided in the Agreement, in the event of a Change in Control, all Options
outstanding on the date of such Change in Control shall become immediately and fully exercisable and the Committee, in its discretion, may terminate the Options upon a Change in Control, provided that at least 30 days prior to the Change in
Control, Committee notifies the Optionee that the Option will be terminated and provides the Optionee, at the election of the Committee, either, (i) a cash payment in the amount equal to the 

  

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excess, if any, of (x)(A) in the case of a Nonqualified Stock Option, the greater of (1) the Fair Market Value, on the date preceding the date of
cancellation, of the Shares subject to the Option or portion thereof cancelled, or (2) the Adjusted Fair Market Value of the Shares subject to the option or portion thereof cancelled, or (B) in the case of an Incentive Stock Option, the
Fair Market Value, at the time of cancellation, of the Shares subject to the Option or portion thereof cancelled, over (y) the aggregate purchase price for such Shares under the Option, or (ii) the right to exercise all Options (including
the Options vested as a result of the Change in Control) immediately prior to the Change in Control. 
 (i) Modification. Subject to
the terms of the Plan, the Committee may, in its discretion, modify outstanding Options. Notwithstanding the foregoing, (i) no modification of an Option shall adversely alter or impair any rights or obligations under the Agreement without the
Optionee’s consent, and (ii) the Committee shall not have authority, other than with stockholder approval, (A) to accept the surrender of outstanding Options when the Fair Market Value of a Share is less than the exercise price of the
Options and grant new Options or Awards in substitution for them, or (B) to reduce the exercise price of any outstanding Option. 
 (j)
Acuity Brands Conversion Awards. Each Acuity Brands Conversion Award for an option granted under the Acuity Brands Long-Term Incentive Plan shall reflect the adjustments provided for in the Employee Benefits Agreements and shall have the same
material terms and conditions as the award it replaces under the Acuity Brands Long-Term Incentive Plan, as determined by the Committee (with all references to Acuity Brands or a Subsidiary changed to refer to the Company or a Subsidiary).
Notwithstanding any other provision in this Plan to the contrary, no Acuity Brands Conversion Award in substitution of an award that qualified as an Incentive Stock Option immediately before the grant of the Acuity Brands Conversion Award shall
contain any term that is materially more favorable than the terms of the substituted award which makes the award no longer qualify as an Incentive Stock Option. 
  

	7.	Restricted Stock; Restricted Stock Units 

 The
Committee may grant Awards of Restricted Stock and Restricted Stock Units (RSUs), and may issue Shares of Restricted Stock in payment in respect of vested Performance Units (as hereinafter provided in Section 8(b)), which shall be evidenced by
an Agreement between the Company and the Grantee. Shares of Restricted Stock and RSUs may be granted or awarded based upon the achievement of such Performance Measures (as listed on Appendix A) as the Committee may determine and subject to such
other terms and conditions as the Committee may specify. Each Agreement shall contain such restrictions, terms and conditions as the Committee may, in its discretion, determine and (without limiting the generality of the foregoing) such Agreements
may require that an appropriate legend be placed on Share certificates. Subject to the terms of the Plan, the Committee may modify outstanding Awards of Restricted Stock and RSUs. Notwithstanding the foregoing, no modification of an Award shall
adversely alter or impair any rights or obligations under the Agreement without the Grantee’s consent. 
 (a) Restricted Stock.
Awards of Restricted Stock shall be subject to the following terms and provisions: 
  

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 (i) Shares of Restricted Stock granted pursuant to an Award hereunder shall be recorded in the name of
the Grantee as soon as reasonably practicable after the Award is granted, provided that the Grantee has executed an Agreement evidencing the Award and, in the discretion of the Committee, any other documents which the Committee may require as a
condition to the issuance of such Shares. If a Grantee shall fail to execute the documents which the Committee may require within the time period prescribed by the Committee at the time the Award is granted, the Committee may provide that the Award
is null and void. At the discretion of the Committee, Shares issued in connection with a Restricted Stock Award shall be deposited with an escrow agent designated by the Committee. Unless the Committee determines otherwise and as set forth in the
Agreement, upon delivery of the Shares to the escrow agent, the Grantee shall have all of the rights of a stockholder with respect to such Shares, including the right to vote the Shares and to receive all dividends or other distributions paid or
made with respect to the Shares. 
 (ii) Unless the Agreement provides otherwise, until any restrictions upon the Shares of Restricted Stock
awarded to a Grantee shall have lapsed in the manner set forth in (iii) below, such Shares shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise hypothecated, nor shall they be delivered to the Grantee.

 (iii) Restrictions upon Shares of Restricted Stock awarded hereunder shall lapse at such time or times and on such terms and conditions as
the Committee may provide in the Agreement, but generally no sooner than one year for performance-based awards and three years for time-vesting, non performance-based awards (graded vesting may be provided). Unless the Agreement provides otherwise,
in the event of a Change in Control, all restrictions upon any Shares of Restricted Stock (other than Performance Shares) shall lapse immediately and all such Shares shall become fully vested in the Grantee. 
 (iv) The Agreement shall set forth the terms and conditions that shall apply upon the termination of the Grantee’s employment with the Company, a
Subsidiary or a Business Unit (including a forfeiture of Shares for which the restrictions have not lapsed upon Grantee’s ceasing to be employed) as the Committee may, in its discretion, determine at the time the Award is granted or thereafter.

 (v) At the time the Award of Shares of Restricted Stock is granted, the Committee may, in its discretion, determine that the payment to
the Grantee of dividends, or a specified portion thereof, declared or paid on such Shares by the Company shall be (i) deferred until the lapsing of the restrictions imposed upon such Shares and (ii) held by the Company for the account of
the Grantee until such time. In the event of such deferral, the Committee may provide that interest shall be credited at the end of each year (or portion thereof) on the amount of the account at the beginning of the year at a rate per annum as the
Committee, in its discretion, may determine. Payment of deferred dividends, together with interest accrued thereon, shall be made upon the lapsing of restrictions imposed on such Shares, and any dividends deferred (together with any interest accrued
thereon) in respect of any Shares of Restricted Stock shall be forfeited upon the forfeiture of such Shares pursuant to Section 7(a)(iv) or otherwise. 
 (vi) Upon the lapse of the restrictions on Shares of Restricted Stock, the Committee shall cause a stock certificate to be delivered to, or for the Shares to be credited to an 

  

 12 

 
account on behalf of, the Grantee with respect to such Shares, free of all restrictions hereunder (except any restrictions under Section 16).

 (b) Restricted Stock Units (RSUs). Awards of Restricted Stock Units shall be subject to the following terms and conditions:

 (i) The Committee, in its discretion, shall determine the number of RSUs to grant to a Participant and the restrictions, terms and
conditions of the Award, including whether the Award will be paid in cash, Shares or a combination of the two and the time when the Award will be payable (i.e., at vesting, termination of employment or another date). 
 (ii) Unless the Agreement provides otherwise, RSUs shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise
hypothecated. 
 (iii) Restrictions upon RSUs awarded hereunder shall lapse at such time or times and on such terms and conditions as the
Committee may provide in the Agreement. Unless the Agreement provides otherwise, in the event of a Change in Control, all restrictions upon any RSUs shall lapse immediately and all such RSUs shall become fully vested in the Grantee. 
 (iv) The Agreement shall set forth the terms and conditions that shall apply upon the termination of the Grantee’s employment with the Company, a
Subsidiary or a Business Unit (including a forfeiture of RSUs for which the restrictions have not lapsed upon Grantee’s ceasing to be employed) as the Committee may, in its discretion, determine at the time the Award is granted or thereafter.

 (c) Acuity Brands Conversion Awards. Each Acuity Brands Conversion Award relating to restricted stock or restricted stock units
granted under the Acuity Brands Long-Term Incentive Plan shall reflect the provisions of the Employee Benefits Agreement and shall have the same material terms and conditions as the award under the Acuity Brands Long-Term Incentive Plan, as
determined by the Committee (with all references to Acuity Brands or a Subsidiary changed to refer to the Company or a Subsidiary). 
  

	8.	Performance Awards 

 (a) Performance
Objectives. The Committee will select one or more of the Performance Measures listed on Appendix A attached hereto for purposes of Performance Awards under the Plan. Performance Measures may be in respect of the performance of the Company
and its Subsidiaries (which may be on a consolidated basis), a Subsidiary or a Business Unit, or any combination of the foregoing. Performance Awards may also include performance levels that relate to individual achievements or goals. Performance
objectives may be absolute or relative and may be expressed in terms of a progression within a specified range, with the Grantee becoming vested in (i) a minimum percentage of such Performance Awards in the event the Minimum Acceptable
Objective is met or, if surpassed, a greater percentage (ii) an intermediate percentage of such Performance Awards in the event the Good Objective is met or, if surpassed, a greater percentage and (iii) one hundred percent (100%) of
such Performance Awards in the event the Maximum Realistic Objective is met or surpassed. In addition to adjustments provided for by the Agreement, the Committee may, in determining whether the performance levels have been met, adjust the financial
results for a Performance Cycle to 

  

 13 

 
exclude the effect of unusual charges or income items, or other events (such as acquisition or divestitures and equity and other restructurings), which are
distortive of financial results for the Performance Cycle; provided, that, with respect to Named Executive Officers, in determining financial results, items whose exclusion from consideration will increase the Award shall only have their effects
excluded if they constitute “extraordinary” or “unusual” events or items under generally accepted accounting principles and all such events and items shall be excluded. The Committee shall also adjust the performance calculations
to exclude the unanticipated effect on financial results of changes in the Code, or other tax laws, and the regulations thereunder. The Committee may decrease the amount of an Award otherwise payable if, in the Committee’s view, the financial
performance during the Performance Cycle justifies such adjustment, regardless of the extent to which the Performance Measure was achieved. 
 The Agreement may provide the Committee with the right, during a Performance Cycle or after it has ended, to revise the performance levels for the Performance Measure and the Award amounts, if unforeseen events (including, without
limitation, a Change in Capitalization, an equity restructuring, an acquisition or a divestiture) occur which have a substantial effect on the financial results and which in the judgment of the Committee make the application of the performance
levels unfair unless a revision is made. For Named Executive Officers, such changes shall be made in a manner that is not inconsistent with Code Section 162(m). 
 Except with respect to Named Executive Officers, the Committee may establish additional Performance Measures for purposes of Performance Awards under the Plan. Further, in the event that applicable tax and/or
securities laws (including, but not limited to, Code Section 162(m) and Section 16 of the Exchange Act) change to permit Committee discretion to alter the governing Performance Measures for Named Executive Officers without obtaining
stockholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining stockholder approval. 
 (b) Performance Units. The Committee may grant Performance Units, the terms and conditions of which shall be set forth in an Agreement between the Company and the Grantee. Each Performance Unit shall, contingent upon the attainment
of specified performance objectives within the Performance Cycle, represent one (1) Share. Each Agreement shall specify the number of the Performance Units to which it relates, the performance objectives which must be satisfied in order for the
Performance Units to vest, the Performance Cycle within which such objectives must be satisfied, and the form of payment in respect of vested Performance Units. 
 (i) Vesting and Forfeiture. A Grantee shall become vested with respect to the Performance Units to the extent that the performance objectives set forth in the Agreement are satisfied for the Performance Cycle.
Subject to Section 8(d) hereof, if the Minimum Acceptable Objective specified in the Agreement is not satisfied for the applicable Performance Cycle, the Grantee’s rights with respect to the Performance Units shall be forfeited.

 (ii) Payment of Awards. Payment of Performance Units to Grantees in respect of vested Performance Units shall be made within sixty
(60) days after the last day of the Performance Cycle to which such Award relates. Subject to Section 8(d), such payments may be made entirely in Shares, entirely in cash, or in such combination of Shares and cash as the Committee in its
discretion, shall determine at any time prior to such payment, provided, 

  

 14 

 
however, that if the Committee in its discretion determines to make such payment entirely or partially in Shares of Restricted Stock, the Committee must
determine the extent to which such payment will be in Shares of Restricted Stock at the time the Award is granted. Except as provided in Section 8(d), and except as the Committee otherwise provides in the Agreement, if payment is made in the
form of cash, the amount payable in respect of any Share shall be equal to the average of the Fair Market Value of such Share for the last ten (10) trading days of the Performance Cycle. 
 (iii) Termination of Employment. The Agreement shall set forth the terms and conditions of the Award of Performance Units upon the termination of
the Grantee’s employment with the Company, a Subsidiary, or a Business Unit (including a Grantee’s ceasing to be employed by a Subsidiary or Business Unit as a result of the sale of such Subsidiary or Business Unit or an interest in such
Subsidiary or Business Unit) as the Committee may, in its discretion, determine at the time the Award is granted or thereafter. 
 (c)
Performance Shares. The Committee, in its discretion, may grant Awards of Performance Shares and shall be evidenced by an Agreement between the Company and the Grantee. Each Agreement shall contain such restrictions, if any, and the terms and
conditions as the Committee may, in its discretion, require, and (without limiting the generality of the foregoing) such Agreements may require that an appropriate legend be placed on Share certificates. Awards of Performance Shares shall be subject
to the following terms and provisions: 
 (i) Rights of Grantee. The Committee shall provide at the time an Award of Performance Shares
is made, the time or times at which the Performance Shares granted pursuant to such Award hereunder shall be issued in the name of the Grantee; provided, however, that no Performance Shares shall be issued until the Grantee has executed an
Agreement evidencing the Award, and, in the discretion of the Committee, any other documents which the Committee may require as a condition to the issuance of such Performance Shares. If a Grantee shall fail to execute the documents which the
Committee may require within the time period prescribed by the Committee at the time the Award is granted, the Award shall be null and void. At the discretion of the Committee, Shares issued in connection with an Award of Performance Shares shall be
deposited together with the stock powers with an escrow agent designated by the Committee. Except as restricted by the terms of the Agreement, upon delivery of the Shares to the escrow agent, the Grantee shall have, in the discretion of the
Committee, all of the rights of a stockholder with respect to such Shares, including the right to vote the shares and to receive all dividends or other distributions paid or made with respect to the shares. 
 (ii) Nontransferability. Unless the Agreement provides otherwise, until any restrictions upon the Performance Shares awarded to a Grantee shall
have lapsed in the manner set forth in Sections 8(c)(3) or 8(d), such Performance Shares shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise hypothecated, nor shall they be delivered to the Grantee. The
Committee may also impose such other restrictions and conditions on the Performance Shares, if any, as it deems appropriate. 
 (iii)
Lapse of Restrictions. Subject to Section 8(d), restrictions upon Performance Shares awarded hereunder shall lapse and such Performance Shares shall become 

  

 15 

 
vested at such time or times and on such terms, conditions and satisfaction of performance and other objectives as the Committee may, in its discretion,
determine at the time an Award is granted. 
 (iv) Termination of Employment. The Agreement shall set forth the terms and conditions
of the Award of Performance Shares upon the termination of the Grantee’s employment with the Company, a Subsidiary or a Business Unit (including a Grantee’s ceasing to be employed by a Subsidiary or Business Unit as a result of the sale of
such Subsidiary or Business Unit or an interest in such Subsidiary or Business Unit) as the Committee may, in its discretion, determine at the time the Award is granted or thereafter. 
 (v) Treatment of Dividends. At the time the Award of Performance Shares is granted, the Committee may, in its discretion, determine that the
payment to the Grantee of dividends, or a specified portion thereof, declared or paid on Performance Shares issued by the Company to the Grantee shall be (i) deferred until the lapsing of the restrictions imposed upon such Performance Shares
and (ii) held by the Company for the account of the Grantee until such time. In the event of such deferral, the Committee may provide that interest shall be credited at the end of each year (or portion thereof) on the amount of the account at
the beginning of the year at a rate per annum as the Committee, in its discretion, may determine. Payments of deferred dividends, together with interest accrued thereon as aforesaid, shall be made upon the lapsing of restrictions imposed on such
Performance Shares, except that any dividends deferred (together with any interest accrued thereon) in respect of any Performance Shares shall be forfeited upon the forfeiture of such Performance Shares pursuant to Section 8(c)(iv) or
otherwise. 
 (vi) Delivery of Shares. Upon the lapse of the restrictions on Performance Shares awarded hereunder, the Committee shall
cause a stock certificate to be delivered to, or for the Shares to be credited to an account on behalf of, the Grantee with respect to such Shares, free of all restrictions hereunder. 
 (d) Effect of Change in Control. Unless the Agreement provides otherwise, in the event of a Change in Control: 
 (i) With respect to the Performance Units, the Grantee shall (i) become vested in a percentage of Performance Unit as determined by the Committee at
the time of the Award of such Performance Units and as set forth in the Agreement and (ii) be entitled to receive in respect of all Performance Units which become vested as a result of a Change in Control, a cash payment within ten
(10) days after such Change in Control equal to the product of the Adjusted Fair Market Value of a Share multiplied by the number of Performance Units which become vested in accordance with this Section 8(d); and 
 (ii) With respect to the Performance Shares, all restrictions shall lapse immediately on all or a portion of the Performance Shares as determined by the
Committee at the time of the Award of such Performance Shares and as set forth in the Agreement. 
  

 16 

 (e) Nontransferability. Unless the Agreement provides otherwise, no Performance Awards shall be
transferable by the Grantee otherwise than by will or the laws of descent and distribution. 
 (f) Definitions. For purposes of
Performance Awards, the following definitions shall apply: 
 (i) “Good Objective” means a challenging and above average level of
performance of the Company, a Subsidiary or a Business Unit during a Performance Cycle for which a performance Award is granted, as determined by the Committee at the time such Performance Award is granted. 
 (ii) “Maximum Realistic Objective” means an excellent level of performance of the Company, a Subsidiary or a Business Unit during a Performance
Cycle for which a Performance Award is granted, as determined by the Committee at the time such Performance Award is granted. 
 (iii)
“Minimum Acceptable Objective” means a minimum level of performance of the Company, a Subsidiary or a Business Unit during a Performance Cycle for which a Performance Award is granted, as determined by the Committee at the time such
Performance Award is granted. 
  

	9.	Stock Appreciation Rights (SARs) 

 The Committee may
grant SARs pursuant to the Plan, which SARs shall be evidenced by an Agreement in such form as the Committee shall from time to time approve. SARs may be granted based upon the achievement of such Performance Measures (as listed on Appendix A) as
the Committee may determine and subject to such other terms and conditions as the Committee may specify. SARs shall comply with and be subject to the following terms and conditions: 
 (a) Exercise Price. The exercise price of any SAR granted under the Plan shall be determined by the Committee at the time of the grant of such SAR,
provided that the exercise price of a SAR shall not be less than the Fair Market Value of a Share on the date of grant. 
 (b) Payment
Upon Exercise. The exercise of a SAR with respect to any number of Shares shall entitle the Participant to a cash payment for each such Share or a number of whole Shares (any fractional Share will be paid in cash) of stock equal in value to the
excess of (i) the Fair Market Value of a Share on the exercise date over (ii) the exercise price of the SAR. All payments under this Section 9(b) shall be subject to tax withholding as provided in Section 17(b), and shall be made
as soon as practicable but in no event later than five business days, after the effective date of the exercise of the SAR. 
 (c)
Duration. SARs granted hereunder shall be for such term as the Committee shall determine, provided that no SAR shall be exercisable after the expiration of ten (10) years from the date it is granted. The Committee may, subsequent to the
granting of any SAR, extend the term thereof, but in no event shall the term as so extended exceed the maximum term provided for in the preceding sentence. 
  

 17 

 (d) Non-Transferability. Unless the Committee otherwise provides for transferability in the
Agreement, no SAR granted hereunder shall be transferable by the Grantee, otherwise than by will or the laws of descent and distribution, and a SAR may be exercised during the lifetime of such Grantee only by the Grantee or his guardian or legal
representative. The terms of such SAR shall be final, binding and conclusive upon the beneficiaries, executors, administrators, heirs and successors of the Grantee. 
 (e) Vesting. Subject to Section 9(h) hereof, each SAR shall be exercisable in such installments (which need not be equal or the same for each Grantee) and at such times (which may include performance
requirements) as may be designated by the Committee and set forth in the Agreement. To the extent not exercised, installments shall accumulate and be exercisable, in whole or in part, at any time after becoming exercisable, but not later than the
date the SAR expires. The Committee may accelerate the exercisability of any SAR or portion thereof at any time. 
 (f) Method of
Exercise. The exercise of a SAR shall be made only by a written notice delivered in person or by mail to the Secretary of the Company at the Company’s principal executive office (or in such other manner and to such other person or address
as may be designated by the Committee), specifying the number of Shares with respect to which the SAR is being exercised and otherwise complying with such other rules as the Committee may establish. 
 (g) Termination of Employment. The Agreement shall set forth the terms and conditions of the SAR upon the termination of the Grantee’s
employment with the Company, a Subsidiary or a Business Unit (including a Grantee’s ceasing to be employed by a Subsidiary or Business Unit as a result of the sale of such Subsidiary or Business Unit or an interest in such Subsidiary or
Business Unit), as the Committee may, in its discretion, determine at the time the SAR is granted or thereafter, provided, however no SAR shall be exercisable beyond its maximum term as described in Section 9(c) hereof. 
 (h) Effect of Change in Control. Unless otherwise provided in the Agreement, in the event of a Change in Control, (i) all SARs outstanding on
the date of such Change in Control shall become immediately and fully exercisable and (ii) the Grantee will automatically receive a cash payment in the amount equal to the excess, if any, of the Fair Market Value, on the date of the Change in
Control, of the Shares subject to the SAR over (y) the aggregate exercise price of the Shares under the SAR. 
 (i) Modification.
Subject to the terms of the Plan, the Committee may, in its discretion, modify outstanding SARs. Notwithstanding the foregoing, (a) no modification of a SAR shall adversely alter or impair any rights or obligations under the Agreement without
the Grantee’s consent, and (b) without stockholder approval, the Committee shall not have authority (A) to accept the surrender of outstanding SARs when the Fair Market Value of a Share is less than the exercise price of the SARs and
grant new SARs or Awards in substitution for them, or (B) to reduce the exercise price of any outstanding SAR. 
  

 18 

	10.	Release of Financial Information 

 A copy of the
Company’s annual report to stockholders shall be delivered to each Optionee and Grantee at the time such report is distributed to the Company’s stockholders. Upon reasonable request the Company shall furnish as soon as reasonably
practicable, to each Optionee and Grantee a copy of its most recent annual report and each quarterly report and current report filed under the Exchange Act since the end of the Company’s prior fiscal year. 
  

	11.	Foreign Employees. 

 In order to facilitate the
making of any grant of Options or Awards under this Plan, the Committee may provide for such special terms for Options or Awards to Participants who are foreign nationals or who are employed by the Company or any Subsidiary outside of the United
States of America as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom, which special terms may be contained in an Appendix attached hereto. Moreover, the Committee may approve such
supplements to or amendments, restatements or alternative versions of this Plan as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of this Plan as in effect for any other purpose, and the Secretary or
other appropriate officer of the Company may certify any such document as having been approved and adopted in the same manner as this Plan. No such special terms, supplements, amendments or restatements, however, shall include any provisions that
are inconsistent with the terms of this Plan as then in effect unless this Plan could have been amended to eliminate such inconsistency without further approval by the shareholders of the Company. 
  

	12.	Termination and Amendment of the Plan 

 (a) The Plan
shall terminate on October 31, 2017, and no Option or Award may be granted thereafter. The Board may sooner terminate or amend the Plan (other than to reduce the rights of Optionees and Grantees, as the case may be, under Sections 6(h),
7(a)(iii) and 8(d)), at any time and from time to time; provided, however, that to the extent required by the rules of the exchange on which the Shares are listed or applicable law, no amendment shall be effective unless approved by the
stockholders of the Company at an annual or special meeting. 
 (b) Except as provided in Section 4(d) hereof, rights and obligations
under any Option or Award granted before any amendment of the Plan shall not be adversely altered or impaired by such amendment, except with the consent of the Optionee or Grantee, as the case may be. 
  

	13.	Nonexclusivity of the Plan 

 The adoption of the
Plan by the Board shall not be construed as amending, modifying or rescinding any previously approved incentive arrangement or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable,
including, without limitation, the granting of stock options otherwise than under the Plan, to the extent permitted by the rules of the exchange on which the Shares are listed or applicable law, and such arrangements may be either applicable
generally or only in specific cases. 
  

 19 

	14.	Limitation of Liability 

 As illustrative of the
limitations of liability of the Company, but not intended to be exhaustive thereof, nothing in the Plan shall be construed to: 
 (a) give any
person any right to be granted an Option or Award other than at the sole discretion of the Committee; 
 (b) give any person any rights
whatsoever with respect to Shares except as specifically provided in the Plan; 
 (c) limit in any way the right of the Company to terminate
the employment of any person at any time (with or without Cause); or 
 (d) be evidence of any agreement or understanding, expressed or
implied, that the Company will employ any person in any particular position at any particular rate of compensation or for any particular period of time. 
  

	15.	Securities Law Regulation and Other Approvals; Governing Law 

 (a) This Plan and the rights of all persons claiming hereunder shall be construed and determined in accordance with the laws of the State of Delaware without giving effect to the conflicts of laws principles thereof,
except to the extent that such law is preempted by federal law. 
 (b) The obligation of the Company to sell or deliver Shares with respect
to Options and Awards granted under the Plan shall be subject to all applicable laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be
deemed necessary or appropriate by the Committee. 
 (c) The Plan is intended to comply with Rule 16b-3 promulgated under the Exchange
Act and the Committee shall interpret and administer the provisions of the Plan or any Agreement in a manner consistent therewith. Any provisions inconsistent with such Rule shall be inoperative and shall not affect the validity of the Plan.

 (d) The Board may make such changes as may be necessary or appropriate to comply with the rules and regulations of any government
authority, or to obtain for Eligible Employees granted Incentive Stock Options the tax benefits under the applicable provisions of the code and regulations promulgated thereunder. 
 (e) Each Option and Award is subject to the requirement that, if at any time the Committee determines, in its discretion, that the listing, registration
or qualification of Shares issuable pursuant to the Plan is required by any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in
connection with, the grant of an Option or Award or the issuance of Shares, no Options or Awards shall be granted or payment made or Shares issued, in whole or in part, unless such listing, registration, qualification, consent or approval has been
effected or obtained free of any conditions as acceptable to the Committee. 
  

 20 

 (f) Notwithstanding anything contained in the Plan to the contrary, in the event that the disposition of
Shares acquired pursuant to the Plan is not covered by a then current registration statement under the Securities Act of 1933, as amended, and is not otherwise exempt from such registration, such Shares shall be restricted against transfer to the
extent required by the Securities Act of 1933, as amended, and Rule 144 or other regulations thereunder. The Committee may require any individual receiving Shares pursuant to the Plan, as a condition precedent to receipt of such Shares
(including upon exercise of an Option), to represent and warrant to the Company in writing that the Shares acquired by such individual are acquired without a view to any distribution thereof and will not be sold or transferred other than pursuant to
an effective registration thereof under said Act or pursuant to an exemption applicable under the Securities Act of 1933, as amended, or the rules and regulations promulgated thereunder. The certificates evidencing any of such Shares shall be
appropriately legended to reflect their status as restricted securities as aforesaid. 
 (g) In the event that changes are made to Code
Section 162(m) to permit greater flexibility with respect to any Award or Option under the Plan, the Committee may, subject to this Section 15, make any adjustments it deems appropriate in such Award or Option. 
  

	16.	Miscellaneous 

 (a) Multiple Agreements. The
terms of each Option or Award may differ from other Options or Awards granted under the Plan at the same time, or at some other time. The Committee may also grant more than one Option or Award to a given Eligible Employee during the term of the
Plan, either in addition to, or, subject to the provisions of the Plan, in substitution for, one or more Options or Awards previously granted to that Eligible Employee. The grant of multiple Options and/or Awards may be evidenced by a single
Agreement or multiple Agreements, as determined by the Committee. 
 (b) Withholding of Taxes. 
 (i) The Company shall have the right to deduct from any distribution of cash to any Optionee or Grantee, an amount equal to the federal, state and local
income taxes and other amounts as may be required by law to be withheld (the “Withholding Taxes”) with respect to any Option or Award. If an Optionee or Grantee is entitled to receive Shares upon exercise of an Option or pursuant to an
Award, the Optionee or Grantee shall pay the Withholding Taxes to the Company prior to the issuance, or release from escrow, of such Shares. In satisfaction of the Withholding Taxes to the Company, the Optionee or Grantee may make an irrevocable
written election (the “Tax Election”), to have withheld a portion of the Shares issuable to him or her upon exercise of the Option or pursuant to an Award having an aggregate Fair Market Value equal to the Withholding Taxes. 
 (ii) If an Optionee makes a disposition, within the meaning of Section 424(c) of the Code and regulations promulgated thereunder, of any Share or
Shares issued to him pursuant to his exercise of an Incentive Stock Option within the two-year period commencing on the day after the date of the grant or within the one-year period commencing on the day after the date of transfer of such Share or
Shares to the Optionee pursuant to such exercise, the Optionee shall, within ten (10) days of such disposition, notify the Company thereof, by delivery of written 

  

 21 

 
notice to the Company at its principal executive office, and immediately deliver to the Company the amount of Withholding Taxes. 
 (c) Designation of Beneficiary. To the extent applicable to the type of Award, each Grantee (other than an Optionee) may designate a person or
persons to receive in the event of his or her death, any Award or any amount payable pursuant thereto, to which he or she would then be entitled under the terms of the Plan. Such designation will be made upon forms supplied by and delivered to the
Company and may be revoked in writing. 
 (d) Deferral. The Committee may permit a Participant to defer to another plan or program
such Participant’s receipt of Shares or cash that would otherwise be due to such Participant by virtue of the exercise of an Option or SAR, the vesting of Restricted Stock or RSUs or the earning of Performance Awards. If any such deferral
election is required or permitted, the Committee shall, in its sole discretion, establish rules and procedures for such payment deferrals. 
 (e) Compliance With Section 409A. The Plan shall at all times be operated and administered in accordance with the requirements of Code Section 409A and the regulations and rulings thereunder (“Section 409A”). The
Plan may be amended or may be interpreted by the Committee as it deems necessary or appropriate for Options or Awards to comply with Section 409A and to avoid a plan failure under Section 409A. 
  

	17.	Effective Date 

 This Plan shall be effective
October 31, 2007. 
  

 22 

 APPENDIX A 
 to 
 ZEP INC. 
 LONG-TERM INCENTIVE PLAN 
  

			
	 Performance Measure
	  	 General Definition

	 AATP Margin
	  	AATP divided by Sales
		
	 Adjusted After-Tax Profit (AATP)
	  	APTP minus book income taxes (reported tax rate applied to APTP). The measure may include or exclude income from discontinued operations, extraordinary items, changes in accounting principles,
and restructuring expense
		
	 Adjusted EBIT
	  	EBIT excluding gain on asset sales
		
	 Adjusted Pre-Tax Profit (APTP)
	  	Income before provision for income taxes plus interest expense plus implied interest on capitalized operating leases. The measure may include or exclude income from discontinued operations,
extraordinary items, changes in accounting principles, and restructuring expense
		
	 Capitalized Economic Profit
	  	Economic Profit divided by a predetermined rate reflecting the cost of capital
		
	 Capitalized Entity Value
	  	Sum of average invested capital in the business and the Capitalized Economic Profit
		
	 Capitalized Equity Value
	  	Capitalized Entity Value minus total debt
		
	 Cashflow
	  	Net cash provided by operating activities less net cash used for investing activities
		
	 Cashflow Return on Capital
	  	Cashflow divided by average invested capital
		
	 Cashflow Return on Capitalized Entity/Equity Value
	  	Cashflow divided by Capitalized Entity/Equity Value
		
	 Cashflow Return on Investment
	  	The amount comprised of net income plus depreciation and amortization minus working capital expenditures, divided by the amount comprised of gross fixed assets plus net working capital excluding
cash and debt
		
	 Change in Capital
	  	Capital expenditures plus/minus change in operating working capital plus net proceeds from asset sales
		
	 Change in Operating Working Capital
	  	GAAP cash flow of accounts receivable (including allowance for doubtful accounts), inventory, and accounts payable
		
	 Change in Price of Shares
	  	Percentage increase in per-share price. This measure may be adjusted for Change in Capitalization (as defined in the Plan).
		
	 Change in Working Capital
	  	Increase or decrease in working capital

			
	 Performance Measure
	  	 General Definition

	 Debt
	  	Third-party debt recorded on the balance sheet. The measure may include or exclude lease obligations, accounts payable, and current or long-term accrued liabilities
		
	 Debt Reduction
	  	Decrease in total debt from one period to another
		
	 Earnings Before Interest and Taxes (EBIT)
	  	Earnings minus interest and taxes. The measure may include or exclude income from discontinued operations, extraordinary items, changes in accounting principles, and restructuring expense

		
	 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
	  	Earnings minus interest, taxes, depreciation, and amortization. The measure may include or exclude income from discontinued operations, extraordinary items, changes in accounting principles,
and restructuring expense
		
	 Earnings Per Share
	  	Primary or fully diluted earnings per share. The measure may include or exclude income from discontinued operations, extraordinary items, changes in accounting principles, and restructuring
expense
		
	 Economic Profit
	  	AATP minus a charge for capital
		
	 Net Income
	  	Net income as reported in Zep Inc.’s annual financial statements or the books and records of its segments. The measure may include or exclude income from discontinued operations,
extraordinary items, changes in accounting principles, and restructuring expense
		
	 Net Income Return on Capital
	  	Net Income divided by average invested capital
		
	 Operating Working Capital
	  	Net accounts receivable plus inventory minus accounts payable
		
	 Return on Assets (ROA)
	  	Net Income divided by average total assets
		
	 Return on Equity (ROE)
	  	Net Income divided by average stockholders’ equity
		
	 Return on Gross Investment
	  	Sum of Net Income plus depreciation divided by sum of average invested capital plus accumulated depreciation
		
	 Return on Invested Capital
	  	Net Income or AATP divided by average invested capital
		
	 Return on Net Assets (RONA)
	  	Net Income, APTP, or income before taxes, divided by average net assets
		
	 Sales
	  	Net sales of products and service revenues
		
	 Sales Growth
	  	Percentage change in Sales from year to year
		
	 Total Return to Stockholders
	  	Percentage change in stockholder value (stock price plus reinvested dividends)
		
	 Working Capital
	  	Current assets minus current liabilitiesZep Inc. Non-Employee Director Deferred Compensation Plan, dated Oct. 31, 2007

 Exhibit 10.5 
 ZEP INC. 
 NONEMPLOYEE DIRECTOR DEFERRED COMPENSATION PLAN 
 (Effective as of October 31, 2007) 
  

	1.	Purpose. 

 The Zep Inc. Nonemployee Director
Deferred Compensation Plan (the “Plan”) is intended to increase the alignment of the interests of eligible members of the Board with the interests of stockholders of Zep Inc. (the “Corporation”) by increasing their incentive to
contribute to the success of the Corporation’s business through a mandatory deferral of a portion of the Eligible Director’s Annual Fee into Deferred Stock Units and permitting Eligible Directors to elect to defer the remainder of their
fees for investment in an interest bearing account or in Deferred Stock Units, on the terms and conditions set forth herein. 
 The Plan is
effective as of October 31, 2007, and is established in connection with the spin-off of the Corporation by Acuity Brands, Inc. 
  

	2.	Definitions. When used in this Plan, unless the context otherwise requires: 

 2.1 “Account” shall mean the records maintained by the Committee (or its designee) to determine the Eligible Director’s deferrals, including any mandatory deferrals. Such Account may be reflected as
entry in the Corporation’s records, or as a separate account under a trust or as a combination of both. Each Eligible Director’s Account may consist of several subaccounts: a Deferral Subaccount to reflect the Eligible Director’s
deferrals, a Mandatory Deferral Subaccount to reflect mandatory deferrals of the Eligible Director’s fees and a subaccount to reflect any grants of Deferred Stock Units. The Committee may establish such additional subaccounts as it deems
necessary for the proper administration of the Plan. 
 2.2 “Acuity Brands” shall mean Acuity Brands, Inc., a Delaware corporation.

 2.3 “Acuity Brands Deferred Stock Units” means the deferred stock units representing shares of Acuity Brands common stock
credited to an Eligible Director under the Prior Plan which are transferred to this Plan. 
 2.4 “Annual Fee” shall mean the annual
fee payable, in cash or under this Plan, to an Eligible Director for service on the Board. The Annual Fee may include the fees for a specified number of Board and/or Committee meetings. 
 2.5 “Board” shall mean the Board of Directors of the Corporation. 
 2.6 “Board Meeting Fee” shall mean the fee, if any, payable in cash or under this Plan to an Eligible Director for attendance at any meeting of
the Board. 

 2.7 “Chairman Fee” shall mean the fee, if any, payable in cash or under this Plan to an
Eligible Director for service as the Chairman of a committee of the Board. 
 2.8 “Change in Capitalization” shall mean any
increase or reduction in the number of Shares, or any change (including, but not limited to, a change in value) or exchange of Shares for a different number or kind of shares or other securities of the Corporation, by reason of a reclassification,
recapitalization, merger, consolidation, reorganization, spin-off, split-up, issuance of warrants or rights or debentures, stock dividend, stock split or reverse stock split, extraordinary cash dividend, property dividend, combination or exchange of
shares, repurchase of shares, public offering, private placement, change in corporate structure or otherwise. 
 2.9 “Change of
Control” shall mean: 
 (a) The acquisition (other than from the Corporation) by any “Person” (as the term
person is used for purposes of Sections 13(d) or 14(d) of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of the combined voting power of the
Corporation’s then outstanding voting securities; or 
 (b) The individuals who, as of the Effective Date, are members of
the Board (the “Incumbent Board”) cease for any reason to constitute at least two-thirds of the Board; provided, however, that, if the election, or nomination for election by the Corporation’s stockholders, of any new
director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; or 
 (c) Consummation of a merger or consolidation involving the Corporation if the stockholders of the Corporation, immediately before such
merger or consolidation do not, as a result of such merger or consolidation, own, directly or indirectly, more than sixty percent (60%) of the combined voting power of the then outstanding voting securities of the corporation resulting from
such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the voting securities of the Corporation outstanding immediately before such merger or consolidation; or 
 (d) Consummation of a complete liquidation or dissolution of the Corporation of the sale or other disposition of all or substantially all
of the assets of the Corporation. 
 Notwithstanding the foregoing, a Change in Control shall not be deemed to occur pursuant
to paragraph (i) solely because twenty percent (20%) or more of the combined voting power of the Corporation’s then outstanding securities is acquired by (i) a trustee or other fiduciary holding securities under one or more
employee benefit plans maintained by the Corporation or any of its subsidiaries, or (ii) any corporation which, immediately prior to such acquisition, is owned directly or indirectly by the stockholders of the Corporation in the same proportion
as their ownership of stock in the Corporation immediately prior to such acquisition. 
  

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 2.10 “Committee” shall mean the Compensation Committee of the Board or such other committee as
may be designated by the Board. In the absence of the appointment of a Committee, the Board shall serve as the Committee. 
 2.11
“Committee Meeting Fee” shall mean the fee, if any, payable in cash or under this Plan to an Eligible Director for attendance at any meeting of a committee of the Board. 
 2.12 “Corporation” shall mean Zep Inc., a Delaware corporation. 
 2.13 “Deferral Subaccount” shall mean the subaccount maintained to reflect the Eligible Director’s elective deferral of fees and any earnings thereon. 
 2.14 “Deferred Stock Units” shall mean the units equivalent to one Share and which are credited pursuant to Article V hereof. 
 2.15 “Effective Date” shall mean October 31, 2007. 
 2.16 “Eligible Director” shall mean each member of the Board who is not at the time of reference an employee of the Corporation or any Subsidiary. 
 2.17 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 2.18 “Fair Market Value” shall mean the fair market value of the Shares as determined in good faith by the Committee; provided,
however, that (A) if the Shares are admitted to trading on a national securities exchange, Fair Market Value on any date shall be the last sale price reported for the Shares on such exchange on such date or, if no sale was reported on such
date, on the last date preceding such date on which a sale was reported, and (B) if the Shares are not listed on any securities exchange, but nevertheless are publicly traded and reported (through the OTC Bulletin Board or otherwise), Fair
Market Value on such date shall be the closing sales price on such date (or, if there are no sales on such date, on the next preceding day). 
 For purposes of subsection (A), if the Shares are traded on more than one securities exchange then the largest U.S. exchange on which the Shares are traded shall be referenced to determine Fair Market Value. 
 2.19 “Investment Fund” shall mean an interest bearing fund providing a rate of interest based upon an index or a rate specified by the
Committee or such other deemed investment fund (or funds) as the Committee may establish as the basis for calculating earnings, gain and losses for all or a portion of the Eligible Director’s Account. 
 2.20 “Mandatory Deferral Subaccount” shall mean the subaccount maintained to reflect the mandatory deferral of the Eligible Director’s
fees, and any earnings thereon. 
 2.21 “Optional Amount” shall mean the amount elected to be deferred by an Eligible Director for
any year during the term hereof pursuant to Section 5.2 hereof. 
  

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 2.22 “Plan” shall mean the Zep Inc. Nonemployee Director Deferred Compensation Plan, as amended
and restated herein, and as such Plan may be amended from time to time. 
 2.23 “Post-Section 409A Account” shall mean the
amounts credited to the Participant’s Account on or after January 1, 2005 in the Prior Plan that are transferred to this Plan, and any earnings on such amounts, and amounts credited to the Participant’s Account under this Plan after
the Effective Date. 
 2.24 “Pre-Section 409A Account” shall mean the amounts credited to the Eligible Director’s Account
as of December 31, 2004 in the Prior Plan that are transferred to this Plan, and any earnings on such amounts. 
 2.25 “Prior
Plan” shall mean the Acuity Brands, Inc. Nonemployee Director Deferred Compensation Plan. 
 2.26 “Required Amount” shall mean
one-half of the Annual Fee. 
 2.27 “Section 409A” shall mean Section 409A of the Internal Revenue Code of 1986, as amended
(“Code”), and the regulations and rulings thereunder. 
 2.28 “Shares” shall mean the Common Stock, par value $.01 per
share, of the Corporation. 
 2.29 “Subsidiary” shall mean any corporation more than 50% of whose stock having general voting power
is owned by the Corporation or by a Subsidiary of the Corporation. 
  

	3.	Administration. 

 3.1 The Plan shall be administered
by the Committee. 
 3.2 The Committee may make such rules and establish such procedures for the administration of the Plan as it deems
appropriate to carry out the purposes of the Plan. The interpretation and application of the Plan or of any rule or procedure, and any other matter relating to or necessary to the administration of the Plan, shall be determined by the Committee, and
any such determination shall be final and binding on all persons. 
  

	4.	Number of Shares; Adjustment Upon Change In Capitalization. 

 4.1 Number of Shares. Subject to adjustment as provided in Section 4.2 below, the aggregate number of Shares that may be issued under the Plan is Three Hundred Thousand (300,000) Shares. 
 4.2 Change in Capitalization. In the event of any Change in Capitalization, the Committee shall make such adjustment in the number and class of
Shares which may be delivered under the Plan, as may be determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights; provided, however, that the number of Shares shall always be a whole number and the
Committee shall make such adjustments as are necessary to insure Awards of whole Shares. 
  

 4 

	5.	Deferrals And Deferred Stock Units. 

 5.1
Crediting of Deferrals. Commencing on the Effective Date, on the first day of each February, May, August and November thereafter (or on such other dates as may be determined by the Committee), the Account of each Eligible Director shall
automatically be credited with (a) a number of Deferred Stock Units equal to one-fourth of the Required Amount divided by the Fair Market Value of a Share, plus (b) one-fourth of the Optional Amount, if any. The Eligible Director shall
elect in such manner as provided by the Committee whether to have the Optional Amount credited in Deferred Stock Units (in which event the Optional Amount shall be divided by the Fair Market Value of a Share) or deemed to be invested in the
Investment Fund. 
 5.2 Optional Amount Deferral Election. Each Eligible Director shall be entitled to elect, with respect to each
year during the term of this Plan such portion of the Annual Fee in excess of the Required Amount and such portion of any Board Meeting Fee, the Committee Meeting Fee, or Chairman Fee, if applicable, which the Eligible Director desires to defer to
the Plan. Such election shall be made and submitted prior to the start of each such year (or within thirty (30) days of the initial Effective Date of the Plan or the Eligible Director’s initial eligibility date under the Plan), on such
form as shall be determined from time to time by the Committee, which the Committee may provide is a continuing deferral election. The Eligible Director may elect to have the deferrals credited in Deferred Stock Units or deemed to be invested in the
Investment Fund, provided that once the Eligible Director makes such investment election for such year’s deferrals the election may not be changed with respect to such deferrals. 
 5.3 Transfer of Accounts and Acuity Brands Deferred Stock Units from the Prior Plan. Effective as of October 31, 2007, or as soon thereafter
as is practical, Acuity Brands shall transfer from the Prior Plan the amount credited to the Account of each Eligible Director who was a participant in the Prior Plan and credit such amount to the Account of the Eligible Director under this Plan.
With respect to Acuity Brands Deferred Stock Units, the Eligible Director shall be credited with a number of Acuity Brands Deferred Stock Units under this Plan equal to (a) the number of Acuity Brands Deferred Stock Units in the Eligible
Director’s Account under the Prior Plan as of the date of the distribution of the shares of the Corporation’s common stock to the stockholders of Acuity Brands (the “Distribution Date”), multiplied by (b) the closing per
share price of Acuity Brands common stock (trading with a due bill) on the Distribution Date, divided by the closing per share price of the Acuity Brands’ common stock (on a when-issued basis) on the Distribution Date (or such other price as
determined by the Committee to be appropriate and equitable). 
 5.4 Dividends On Deferred Stock Units. As of each dividend payment
date declared with respect to the Shares (and with respect to Acuity Brands Common Stock), the Corporation shall credit to each Account an amount equal to the product of (x) the dividend per Share payable on such dividend payment date and
(y) the number of Deferred Stock Units credited to such Eligible Director’s account as of the applicable dividend record date. The dividends shall be credited to and deemed to be invested in the Investment Fund. All amounts credited to an
Eligible Director’s Account resulting from the crediting of dividends shall be paid in cash. 
  

	6.	Payment Of Account. 

  

 5 

 6.1 Upon the termination of service of an Eligible Director, the Eligible Director shall receive payment
of his Pre-Section 409A Account and Post-Section 409A Account in the manner provided in this Section 6. The amount credited to the Eligible Director’s Account in Deferred Stock Units shall be paid in whole Shares (with any
fractional Share paid in cash), and the Acuity Brands Deferred Stock Units shall be paid in whole shares of Acuity Brands Common Stock, and the amount credited to the Investment Fund shall be paid in cash. 
 6.2 The Pre-Section 409A Account shall be paid in a lump sum upon the Eligible Director’s termination of service. Notwithstanding the
foregoing, an Eligible Director may elect to receive the distribution with respect to his or her Pre-Section 409A Account in five substantially equal annual installments commencing as soon as practicable following the Eligible Director’s
termination of service. Any such election may be made or changed at any time without limitation, provided, however, that any election (and any modification or revocation of any election) shall not be given effect unless made at least two years prior
to the Eligible Director’s termination of service. 
 6.3 The Post-Section 409A Account shall be paid in a lump sum or in five
substantially equal annual installments upon the Eligible Director’s termination of service in accordance with the Eligible Director’s election on a form provided by the Committee at the time the Eligible Director commences participation
in the Plan and at such other time as may be permitted by Section 409A and the Committee. An Eligible Director may, not less than twelve (12) months prior to termination of service, elect to change the method of payment of the
Post-Section 409A Account, provided that (i) only one such change is permitted and after such election change, the election is irrevocable , (ii) the payment date for the Post-Section 409A Account will be deferred for 5 years,
and (iii) the election shall not become effective for 12 months. The change of election shall be made on a form provided by the Committee. 
 6.4 The holder of Deferred Stock Units shall have none of the rights of a stockholder of the Corporation. The Corporation’s obligation hereunder with respect to Deferred Stock Units shall be an unsecured promise to distribute Shares at
the times described herein. 
 6.5 If an Eligible Director is a “key employee,” as defined in Section 409A and the regulations
and rulings thereunder, at the time the Eligible Director becomes entitled to a distribution under this Section 6, then no distribution shall be made to such Eligible Director of his Post-Section 409A Account before the date which is six
(6) months after the date the payments would otherwise commence, except in the event of death or as otherwise permitted by Section 409A. 
  

	7.	Term of Plan. 

 The Plan shall remain in effect
until all amounts have been paid under the terms of the Plan. 
  

	8.	Amendment; Termination. 

 The Board may at any time
and from time to time alter, amend, suspend, or terminate the Plan in whole or in part. The termination or any modification or amendment of the Plan shall not, without the consent of the Eligible Director, reduce the amount credited to the Eligible

  

 6 

 
Director’s Account at such time. If the Plan is terminated, the amounts credited to the Eligible Directors’ Accounts upon such termination shall be
paid in a lump sum, provided that (i) the Corporation terminates at the same time any other arrangement that would be aggregated with the Plan under Section 409A; (ii) the Corporation does not adopt any other arrangement that would be
aggregated with the Plan under Section 409A for three years; (iii) the payments upon such termination shall not commence until 12 months after the date of termination and shall be completed within 24 months after such termination; and
(iv) such other requirements as may be imposed by Section 409A are satisfied. 
  

	9.	Miscellaneous. 

 9.1 The Eligible Director’s
Account and Deferred Stock Units held hereunder shall not be assignable or transferable by the Eligible Director except by will or by the laws of descent and distribution. 
 9.2 Nothing in the Plan shall be construed as conferring any right upon any Eligible Director to continue as a member of the Board. 
 9.3 The Plan and all rights hereunder shall be construed in accordance with and governed by the laws of the State of Delaware. 
 9.4 The Corporation shall have the right to require, prior to any payment hereunder, payment by the recipient of any federal, state, local or other taxes
which may be required to be withheld or paid in connection with such payment hereunder. 
 IN WITNESS WHEREOF, this Plan has been executed by
the Corporation, to be effective on the Effective Date. 
  

			
	ZEP INC.
		
	By:	 	 /s/ John K.Morgan

  

 7

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