Document:

Document

Exhibit 10.2
AMENDMENT TO COLLATERAL ASSIGNMENT OF INTERESTS
THIS AMENDMENT TO COLLATERAL ASSIGNMENT OF INTERESTS (this “Amendment”), is made as of September 29, 2017 and between CARTER VALIDUS OPERATING PARTNERSHIP II, LP, a Delaware limited partnership (“Assignor”) and KEYBANK NATIONAL ASSOCIATION (“KeyBank”), as Agent for itself and the other Lenders (the “Lenders”) from time to time a party to the Credit Agreement (as hereinafter defined) (KeyBank, in its capacity as Agent, is hereinafter referred to as “Agent”).
W I T N E S S E T H:
WHEREAS, the Assignor, KeyBank, Agent and the other Lenders are party to that certain Second Amended and Restated Credit Agreement dated as of December 22, 2015, as amended by that certain First Amendment to Second Amended and Restated Credit Agreement and Amendment to Other Loan Documents dated September 30, 2016 (as the same has been and may be further varied, extended, supplemented, consolidated, amended, replaced, renewed, modified or restated, the “Credit Agreement”); and
WHEREAS, pursuant to the Credit Agreement, Assignor executed that certain Collateral Assignment of Interests in favor of Agent, dated as of December 17, 2014, as amended by that certain First Amendment to Collateral Assignment of Interests dated as of December 23, 2014 by and between Assignor and Agent, that certain Second Amendment to Collateral Assignment of Interests dated as of December 31, 2014, that certain Amendment to Collateral Assignment of Interests dated as of February 17, 2015, that certain Amendment to Collateral Assignment of Interests dated as of April 1, 2015, that certain Amendment to Collateral Assignment of Interests dated as of June 1, 2015, that certain Amendment to Collateral Assignment of Interests dated as of June 12, 2015, that certain Amendment to Collateral Assignment of Interests dated as of July 22, 2015, that certain Amendment to Collateral Assignment of Interests dated as of July 24, 2015, that certain Amendment to Collateral Assignment of Interests dated as of August 19, 2015, that certain Amendment to Collateral Assignment of Interests dated as of August 28, 2015, that certain Amendment to Collateral Assignment of Interests dated as of August 31, 2015, that certain Amendment to Collateral Assignment of Interests dated as of October 14, 2015, that certain Amendment to Collateral Assignment of Interests dated as of December 22, 2015, that certain Amendment to Collateral Assignment of Interests dated as of February 3, 2016, that certain Amendment to Collateral Assignment of Interests dated as of March 17, 2016, that certain Amendment to Collateral Assignment of Interests dated as of June 1, 2016, that certain Amendment to Collateral Assignment of Interests dated as of September 23, 2016, that certain Amendment to Collateral Assignment of Interests dated as of November 8, 2016, that certain Amendment to Collateral Assignment of Interests dated as of February 28, 2017, that certain Amendment to Collateral Assignment of Interests dated as of March 31, 2017, that certain Amendment to Collateral Assignment of Interests dated as of May 15, 2017, that certain Amendment to Collateral Assignment of Interests dated as of June 28, 2017, that certain Amendment to Collateral Assignment of Interests 

dated as of August 25, 2017, and that certain Amendment to Collateral Assignment of Interests dated as of September 20, 2017 (as the same has been and may be further varied, extended, supplemented, consolidated, amended, replaced, renewed, modified or restated, the “Assignment of Interests”), to provide security for the Secured Obligations (as defined in the Assignment of Interests); and
WHEREAS, the parties hereto desire to amend the Assignment of Interests as set forth herein.
NOW, THEREFORE, for and in consideration of the sum of Ten and No/100 ($10.00), the mutual covenants, promises, and agreements set forth herein below, and for other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged, the parties do hereby covenant and agree as follows:
1.Definitions.  Capitalized terms used in this Amendment, but which are not otherwise expressly defined in this Amendment, shall have the respective meanings given thereto in the Credit Agreement.
2.    Modification of the Assignment of Interests.  The parties hereto do hereby modify and amend the Assignment of Interests as follows:
(a)By modifying Exhibit “A” attached to the Assignment of Interests by adding the table set forth on Exhibit “A” attached to this Amendment and made a part hereof to the end of Exhibit “A” attached to the Assignment of Interests.  Assignor and Agent hereby agree that the term “Company” and “Companies” as used in the Assignment of Interests shall include each of the Companies set forth on Exhibit “A” attached to this Amendment (each, a “New Company” and collectively, the “New Companies").
3.    References to Assignment of Interests.  All references in the Loan Documents to the Assignment of Interests shall be deemed a reference to the Assignment of Interests, as modified and amended herein.
4.    Representations.  The Assignor represents and warrants to Agent and the Lenders as follows:
(a)    Authorization.  The execution, delivery and performance of this Amendment and the transactions contemplated hereby (i) are within the authority of the Assignor, (ii) have been duly authorized by all necessary proceedings on the part of the Assignor, (iii) do not and will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which the Assignor is subject or any judgment, order, writ, injunction, license or permit applicable to the Assignor, (iv) do not and will not conflict with or constitute a default (whether with the passage of time or the giving of notice, or both) under any provision of the articles of incorporation, bylaws, operating agreement, partnership agreement, declaration of trust or other charter documents of, or any mortgage, indenture, agreement, contract or other instrument binding upon, the Assignor or any of its properties or to which Assignor is subject, (v) do not and will not result in or require the imposition of any lien or other encumbrance on any of the properties, assets 

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or rights of the Assignor other than the liens and encumbrances created by the Loan Documents as amended hereby.
(b)    Enforceability.  The execution and delivery of this Amendment are valid and legally binding obligations of Assignor enforceable in accordance with the terms and provisions hereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and the effect of general principles of equity.
(c)    Approvals.  The execution, delivery and performance of this Amendment and the transactions contemplated hereby do not require the approval or consent of any Person or the authorization, consent, approval of or any license or permit issued by, or any filing or registration with, or the giving of any notice to, any court, department, board, commission or other governmental agency or authority other than those already obtained and the filing of UCC financing statements in the appropriate records office with respect hereto.
(d)    Reaffirmation. Assignor hereby repeats and reaffirms all representations and warranties, as modified hereby, made by it to the Agent in the Assignment of Interests on and as of the date hereof with the same force and effect as if such representations and warranties were set forth in this Amendment in full, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate on and as of such earlier date) and except for changes in factual circumstances or transactions not prohibited by the Loan Documents.
5.    No Default.  By execution hereof, the Assignor certifies that no Default or Event of Default has occurred and is continuing.
6.    Ratification.  Except as hereinabove set forth, all terms, covenants and provisions of the Assignment of Interests remain unaltered and in full force and effect, and the parties hereto do hereby expressly ratify and confirm the Assignment of Interests as modified and amended herein and the other Loan Documents.  Nothing in this Amendment shall be deemed or construed to constitute, and there has not otherwise occurred, a novation, cancellation, satisfaction, release, extinguishment or substitution of the Secured Obligations (as defined in the Assignment of Interests).
7.    Acknowledgment of the Assignor.  The Assignor hereby acknowledges, represents and agrees that the Assignment of Interests, as modified and amended herein, remains in full force and effect and constitutes the valid and legally binding obligation of the Assignor enforceable against the Assignor in accordance with its respective terms, and that the execution and delivery of this Amendment does not constitute, and shall not be deemed to constitute, a release, waiver or satisfaction of the Assignor’s obligations under the Loan Documents.
8.    Grant of Security Interest; No Impairment; Continuing Security Interest.
(a)    As security for the prompt payment and performance by Assignor of each and all of the indebtedness, liabilities, duties, responsibilities and obligations whether such indebtedness, liabilities, duties, responsibilities and obligations are now existing or are hereafter 

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created or arising under the Assignment of Interests or any other Loan Document, Assignor does hereby transfer, assign, pledge, convey, and grant to Agent, and does hereby grant a security interest to Agent in, all of Assignor’s right, title and interest in and to all Collateral referred to in Paragraph 2 of the Assignment of Interests with respect to the New Companies.
(b)    Except as otherwise expressly provided herein, nothing herein contained shall in any way (a) impair or affect the validity and priority of the lien of the Assignment of Interests as to the Collateral (as defined in the Assignment of Interests) originally encumbered prior to the date of this Amendment, (b) alter, waive, annul or affect any provision, condition or covenant in the Loan Documents, or (c) affect or impair any rights, powers or remedies under the Loan Documents.
(c)    In furtherance of the foregoing, Assignor hereby acknowledges, represents and agrees that the Assignment of Interests, as amended by this Amendment, creates a continuing security interest in the Collateral (including all Collateral with respect to the New Companies) and shall (x) remain in full force and effect until the indefeasible payment in full of the Obligations and the Lenders have no further obligation to make any advances or issue Letters of Credit under the Credit Agreement, (y) be binding upon Assignor and its permitted heirs, successors and assigns, and (z) inure, together with the rights and remedies of Agent hereunder and thereunder, to the benefit of Agent and the Lenders and their respective successors, transferees and assigns.
9.    Amendment as Loan Document.  This Amendment shall constitute a Loan Document.
10.    Counterparts.  This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment by signing any such counterpart.
11.    Governing Law.  THIS AMENDMENT SHALL PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE INTERNAL LAWS OF THE STATE OF NEW YORK.
12.    Final Agreement.  THIS AMENDMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
13.    Miscellaneous.  This Amendment shall be effective upon the execution hereof by Assignor and Agent and shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted successors, successors-in-title and assigns as provided in the Credit Agreement.  All captions in this Amendment are included herein for convenience of reference only and shall not constitute part of this Amendment for any other purpose.
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IN WITNESS WHEREOF, the parties hereto, acting by and through their respective duly authorized officers and/or other representatives, have duly executed this Amendment, under seal, as of the day and year first above written.

ASSIGNOR:

CARTER VALIDUS OPERATING PARTNERSHIP II, LP, a Delaware limited partnership
		
	By:
	Carter Validus Mission Critical REIT II, Inc., a Maryland corporation, its general partner

By: /s/ Lisa Collado
Name: Lisa Collado
Title:   Authorized Agent

AGENT:
KEYBANK NATIONAL ASSOCIATION, a national banking association, as Agent
By: /s/ Kristin Centracchio
Name: Kristin Centracchio
Title:   Vice President

AMENDMENT TO COLLATERAL ASSIGNMENT OF INTERESTS

EXHIBIT “A”
COMPANIES
	
					
	NAME OF ENTITY
	FORMATION DOCUMENTS
	STATE OF FORMATION
	TYPE OF INTEREST
	CERTIFICATE NUMBER

	DCII-2005 East Technology Circle, LLC
	Certificate of Formation filed on June 29, 2017 with the Secretary of State of Delaware and Limited Liability Company Agreement of DCII-2005 East Technology Circle, LLC dated as of August 4, 2017
	Delaware
	100% of the limited liability company interests
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EXHIBIT “A” – PAGE 1Exhibit

AZZ INC. SEVERANCE PAY PLAN 
(A part of the AZZ Inc. Group Insurance Plan)

		
	1.
	INTRODUCTION

1.1    Overview.  As an Eligible Employee who incurs an Eligible Termination (both defined below), you may be entitled to severance pay and benefits, generally in an amount and form, at such times, and subject to the terms, described in this document.
1.2    Effective Date.  This AZZ Inc. Severance Pay Plan (this “Plan”), a benefit provided under the AZZ Inc. Group Insurance Plan (the “Welfare Plan”), is effective as of September 30, 2017.  
1.3    Participating Companies.  This Plan generally provides severance pay and benefits for the Eligible Employees of AZZ Inc. (“AZZ”) and its U.S. subsidiaries.  However, the Plan Administrator (as defined in Section 7.3 below) may designate any subsidiary of AZZ as a company that does not participate in the Plan.  For purposes of this Plan, AZZ’s and all of its U.S. subsidiaries that participate in the Plan are referred to as the “Company”.  
1.4    Purpose; Controlling Document.  This document, along with the Welfare Plan document, serves as the plan document; and this Plan document serves as the summary plan description for this Plan.  With respect to Eligible Employees, this Plan replaces and supersedes any other severance policy or severance plan in which an Eligible Employee might otherwise be entitled to participate.  All such other severance policies or severance plans are hereby terminated with respect to Eligible Employees, except to the extent that an Eligible Employee and the Company have entered into an individual employment agreement providing for severance pay or the Company has otherwise made a written, binding promise of severance pay to an Eligible Employee (e.g., in a written offer letter).
		
	2.
	ELIGIBILITY

2.1    General Requirements.  You will be an “Eligible Employee” who may be eligible to receive severance benefits under this Plan if:
		
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	Employment.  You are classified by the Company, under its applicable standard personnel policies and procedures, as an active, full-time employee of the Company;

		
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	Eligibility Period.  You have been continuously employed by the Company for at least 90 days; and 

		
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	Not Excluded.  You do not fall within one of the categories described in Section 2.2 below.  

2.2    Excluded Individuals.  The following individuals will not be Eligible Employees and will not be eligible to participate in this Plan: 
		
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	Part-Time or Temporary Employees – individuals who provide services to the Company and who the Company classifies under its applicable customary worker classification procedures as part-time or temporary employees.

		
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	Employees With Written Employment Agreements – individuals who have written employment agreements or offer letters with the Company that provide 

for severance benefits, except such agreements that merely reference the Company’s general severance policy for such benefits.  
		
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	Employees with Written Change in Control Agreements – individuals who have written change in control agreements that provide for severance benefits with respect to terminations of employment following a change in control of the Company; provided, this change in control exclusion will apply to an individual’s termination of employment only if it results in the individual being eligible (whether or not subject to conditions, such as signing a release) to receive severance pay under that change in control agreement.

		
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	Union Employees – individuals who are covered under a collective bargaining agreement between a union and the Company, if severance benefits were the subject of good faith bargaining, except to the extent that the collective bargaining agreement requires participation in the Plan.

		
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	Foreign Employees – individuals who are non-resident aliens and receive no U.S. source income.  

		
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	Non-Employee Service Providers – individuals who provide services to the Company and who the Company does not classify under its customary worker classification procedures as employees, even if the individuals are common law employees, including, but not limited to, independent contractors, contractor’s employees and leased employees.

		
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	Individuals on Indefinite Unpaid Leaves of Absence – individuals who are absent from work on indefinite unpaid leaves of absence, except to the extent eligibility is required by applicable law. 

2.3    Eligible Termination.  If you are an Eligible Employee, you will incur an “Eligible Termination,” and therefore may be eligible to receive benefits under the Plan, if your employment is involuntarily terminated by the Company (and you thereby incur a Separation from Service, as defined below).  The Plan Administrator retains the authority in all cases to determine whether or not a termination is an “Eligible Termination” for purposes of this Plan; but, as a guideline, an “Eligible Termination” does not typically include any of the following:
		
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	Your termination for Cause.  For purposes hereof, “Cause” means termination of your employment due to what the Plan Administrator determines in its sole discretion to be (i) fraud, malfeasance, negligence, dishonesty, or willful misconduct with respect to the Company; (ii) refusal or repeated failure to follow the established reasonable and lawful policies of the Company applicable to persons in your same or similar position; (iii) indictment for, or conviction of, a felony, a crime or any other crime that may cause disrepute or harm to the Company; (iv) an action involving moral turpitude, (v) your inadequate performance; or (vi) any act or omission by you that is in any way harmful to the Company.

		
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	Your automatic termination due to your disability or any other leave of absence from which you failed to return; 

		
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	Your death;

		
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	Your voluntary termination for any reason, including retirement; or 

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	The sale of some or all of the stock or assets of the Company (i.e., AZZ or one or more of its subsidiaries) that results in, or is related to, your termination of employment either if (i) you are offered a position with a successor company (either the buyer or a company related to the buyer), regardless of whether you accept or reject the offer, or (ii) you are not offered employment with such a successor company because you fail any pre-employment screening or testing (including, but not limited to, drug testing).  

Your “Last Day Worked” will be the day your active employment ends and you have a Separation from Service due to your Eligible Termination.  
		
	3.
	SEVERANCE PAY

3.1    Process for Determining Severance Pay Amounts.  As an Eligible Employee who incurs an Eligible Termination, you may be eligible for a certain amount of severance pay.  In order to receive severance pay (other than accrued but unused paid time off; “PTO”) payable under this Plan, you must first sign and not revoke a release agreement that will include a release of the Company and may include various restrictive covenants (all as described in Section 4 below; a “Release”).
The following general guidelines for severance pay will be used to determine amounts available under the Plan; but in all cases, the Plan Administrator will have complete discretionary authority to award greater or lesser amounts of severance pay and/or benefits, including no severance pay and/or benefits.  The Plan Administrator will communicate to you the level of pay and benefits, if any, you will be offered under the Plan before you sign your Release.  Under these guidelines, the following terms of this Section 3 and Section 4 will apply:
3.2    Paid Time Off Pay.   You will receive a cash payment equal to the value of any accrued but unused PTO hours that you have earned and for which you have been credited through your Last Day Worked.  This value will be measured based on the level of your base wages in effect as of your Last Day Worked.  This amount will be paid to you in a single lump sum within 30 days after your date of Separation from Service (or such earlier date as may be required by applicable law) only to the extent provided under, and consistent with, the Company’s PTO policy.
3.3    Severance Pay.
a)Guideline for Severance Pay Amount.  As a general guideline, the amount of severance pay that may be available to you under this Plan upon your Eligible Termination will be determined under the following schedule:
	
		
	If You are an Eligible Employee Who is Not Classified as a Director or Above, and:

	Your Years of Employment Are:
	You May Receive Severance Pay Equal to Base Pay for a Period of:

	Less than 1
	1 week

	1 or More
	1 week plus an additional 1 week for each Year of Employment (but not more than 26 weeks of base pay)

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	If You are an Eligible Employee Who is Classified as a Director or Above, and:

	Your Years of Employment Are:
	You May Receive Severance Pay Equal to Base Pay for a Period of:

	Less than 1
	1 week

	1 or More
	1 week plus an additional 2 weeks for each Year of Employment (but not more than 26 weeks of base pay)

		
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	Whether or not you are classified as a “Director or Above” will be determined by your position on your Last Day Worked.

		
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	For this purpose, “Years of Employment” means the number of full and partial 12-month periods of continuous employment you have worked as a full-time, regular employee with the Company beginning on your most recent date of hire or rehire with the Company (and, to the extent determined by the Plan Administrator, in its sole discretion, with predecessor employers acquired by the Company).  For example, if you have been continuously employed by the Company as a full-time, regular employee for 25 months, you will be considered to have 3 Years of Employment.

		
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	The rate of severance pay will be calculated by using your base weekly salary or wage level in effect as of your Last Day Worked.

However, in all cases the Plan Administrator will have complete discretionary authority to award lesser amounts of severance pay (including no severance pay) or greater amounts of severance pay (but not more than 52 weeks of base pay).  The Plan Administrator will communicate to you the level of severance pay, if any, you will be offered under this Plan before you sign your Release.
b)Payment of Severance Pay in a Lump Sum.  Except to the extent the Plan Administrator determines, in his sole discretion, that your severance pay is to be paid in installments as set forth in subsection (c) below, the amount of severance pay determined and payable to you in Section 3.3(a) (if any) will be paid to you in a lump sum upon the date you have a Separation from Service.  
c)Payment of Severance Pay in Installments.  To the extent the Plan Administrator determines, in his sole discretion, that an amount of severance pay determined and payable to you in Section 3.3(a) (if any) will be paid to you in substantially equal installments, that amount of severance pay will be paid as salary continuation for the period of base pay that is payable to you in installments (your “Severance Period”), beginning upon the date you have a Separation from Service (the “Payment Commencement Date”).  These installment payments will be paid in accordance with the Company’s regular payroll procedures for other similarly-situated, active employees.
3.4    Coordination of Severance Pay with Various Benefits. The amount of any severance pay payable will be reduced on a dollar-for-dollar basis by any severance, separation or termination pay or benefits that the Company pays or is required to pay to you through insurance or otherwise under any plan or contract of the Company or under any federal or state law.  The provisions in the two bullets below are illustrative only:  

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	Withholding.  The Company will withhold from severance pay any amounts required to be withheld pursuant to applicable federal, state or local law; any applicable insurance premiums; and any other amounts authorized or required by Company policy including, but not limited to, withholding for garnishments, judgments or other court orders.

		
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	WARN Benefits.  The Worker Adjustment and Retraining Notification Act and similar state laws (collectively, “WARN”) generally require employers to provide certain pay and benefits to employees in the event that required notification procedures are not followed in advance of a plant closing or mass layoff.  If the Company incurs any such liability under WARN with respect to your termination, the amount of severance pay otherwise payable to you under this Plan will be reduced by the Company’s legally-required payments and benefits provided to you.

3.5    Excess Parachute Payments.  If an Eligible Employee is a disqualified individual (as defined in Section 280G of the Internal Revenue Code of 1986, as amended (Section280G)), and, in conjunction with a change in control, all or a portion of the severance pay payable hereunder, when combined with all other amounts payable to such Eligible Employee, constitutes an excess parachute payment (as defined in Section 280G), then the amount of severance pay payable hereunder will be reduced (but not below $0) to the extent necessary to prevent such excess parachute treatment.
		
	4.
	GENERAL RELEASE

As a condition to your receiving any severance pay (as described above), you must sign and not revoke a written Release containing any terms specified by the Company for (i) your release of the Company, its affiliates, and their representatives from all claims arising from your employment or termination; (ii) to the extent applicable, your non-revocation of the Release during the 7-day period applicable to age-based claims; and (iii) to the extent required by the Plan Administrator, your promise to comply with specified confidentiality, noncompetition and/or nonsolicitation provisions.  The Plan Administrator may terminate your eligibility for severance pay if you fail to sign, or follow the terms of, your Release or if you revoke your Release.  You must sign the Release after your Last Day Worked and within the time period specified by the Plan Administrator in order to be eligible for any benefits under this Plan, but in no event later than the 60th day following your separation from service (after which date your severance pay will be forfeited).  Notwithstanding the terms of Section 3.3(b) or 3.3(c), in no event will any severance pay be paid to you or on your behalf until after you have signed your Release and your revocation period has ended; provided, (i) for lump-sum payments of severance under Section 3.3(b), in no event will such payment be made later than 74 days after the date of your Separation from Service; and (ii) for installment payments of severance under Section 3.3(c), (A) any amounts payable to you under said section before the time you have signed your Release and your revocation period has expired will be paid to you, without interest, in a single lump sum as a catch up for such missed payments, and (B) in no event will the initial installment payment and catch up be made later than 74 days after the date of your Separation from Service.
		
	5.
	SECTION 409A COMPLIANCE

5.1    General.  The Company intends that all of the severance pay described above will be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) under the short-term deferral exemption and/or the separation pay exemption to the full extent available under Section 409A, and such provisions shall be interpreted accordingly.  In no event will the payment of any amount of severance pay that is exempt under the separation pay exemption be made after the last day of the second calendar year beginning after the date of the Eligible Employee’s Separation from Service.  In addition, in no event will the amount of severance pay, 

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which is payable under Section 3.3(c) in the form of installments and which is not exempt from Section 409A under the short-term deferral rule, exceed 2 times the maximum compensation limit under Section 401(a)(17) of the Internal Revenue Code of 1986, as amended.  Each payment of severance under this Plan will be considered a separate payment for purposes of Section 409A.
5.2    Separation from Service.  For purposes of this Plan, the term “Separation from Service” means Separation from Service as defined in Section 409A.
		
	6.
	ADMINISTRATION

6.1    Interpretation.  The Plan Administrator has the exclusive authority and discretion to interpret this Plan with respect to any question arising under this Plan, including eligibility for benefits and the amount, term and duration of benefits.  Any variation in the amount, term or duration of an individual’s severance pay from the amount, term or duration described in the guidelines above will affect only the individual(s) to whom the variation applies.  The interpretations, decisions and determinations of the Plan Administrator are conclusive and binding on the Company and all of its employees, including the applicable Eligible Employees.
6.2    Rights.  This Plan does not create any vested rights in any individual.  In addition, this Plan does not affect the right of the Company to conduct its business affairs, including laying off or terminating the employment of any employee.
6.3    Amendment and Termination.  AZZ reserves the right to amend or terminate (in whole or in part) this Plan and the Welfare Plan at any time.
		
	7.
	SUPPLEMENTAL INFORMATION

7.1    Severance Pay Claims.
		
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	Claims.  If you do not receive severance pay or if you disagree with the amount or length of payments, you may file a claim in writing with the Plan Administrator.  A response to your claim will be provided to you within 90 days (180 days if you are notified of an extension).  If your claim is denied, the Plan Administrator will provide written notice to you setting forth the specific reasons for denial and the provisions in this Plan or other documents used to arrive at the decision.  You will also receive a description of any additional material or information necessary to perfect your claim and an explanation of why such additional material or information is necessary and a description of the Plan's review procedures and the time limits applicable to such procedures.  

		
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	Appeals.  You may appeal any denial of benefits.  You appeal should provide additional information and evidence that will help the Plan Administrator in its review of its original decision including, (i) the reasons supporting your claim for benefits, (ii) the reasons your claim for benefits should not have been denied, and (iii) any additional comments, documents, records or other information that you believe would be beneficial in the review of your appeal You may, upon request and free of charge, have reasonable access to the relevant documents relating to you your claim in order to help you prepare for the appeal.  Your appeal must be filed with the Plan Administrator in writing within 60 days after you receive written notice of denial of your claim.  The Plan Administrator then will consider your appeal and will notify you of its decision within 60 days (120 days if you are notified of an extension) after the filing of your appeal for review.  If the Plan Administrator’s decision on review is unfavorable, the notification you receive will explain the reasons for the denial and the provisions in this Plan or other documents used to arrive at the decision, include a statement that the you 

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are is entitled to receive, upon request and free of charge, reasonable access to, and copies of all documents, records, and other information relevant to the claim for benefit and a statement of your right to bring a civil action under ERISA Section 502(a) provided you have exhausted all your administrative remedies under the Plan. 
		
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	Lawsuit.  If your claim and appeal are both denied or if the Plan Administrator fails to respond to them, you may file a lawsuit in the applicable federal district court; provided, any such lawsuit under Section 502(a) must be filed no later than 1 year after you have exhausted the Plan’s claims procedures.  Any complaint filed with a court after that deadline will be considered untimely. 

7.2    Your Rights Under ERISA.  As a participant in this Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  ERISA provides that all Plan participants will be entitled to:
		
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	Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as worksites, all Plan documents and copies of all documents filed by this Plan with the U.S. Department of Labor, such as detailed annual reports.

		
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	Obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator.  For example, you may request a current list of participating companies under this Plan.  The Plan Administrator may make a reasonable charge for the copies.

		
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	Receive a summary of this Plan’s annual financial report.  The Plan Administrator is required by law to furnish each participant under this Plan with a copy of this summary annual report.

In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan.  The people who operate this Plan, called “fiduciaries” of this Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries.  No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way solely in order to prevent you from obtaining a benefit or for exercising your rights under ERISA.
If your claim for a benefit is denied, in whole or in part, you must receive a written explanation of the reason for the denial.  You have the right to have this Plan reviewed and reconsider your claim.  Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request materials from this Plan and do not receive them within 30 days, you may file suit in a federal court.  In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.  If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court (although the court may refuse to consider your claim if you have not completed the Plan’s appeals process as described above).  If you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor.  If you have any questions about this Plan, you should contact the Plan Administrator.  You should contact the nearest Area Office of the U.S. Employee Benefits Security Administration, Department of Labor, if you have any questions about this document or about your rights under ERISA.

7

7.3    General Information.
		
	•
	Name, Address, and Telephone Number of the Plan Sponsor:

AZZ Inc.
c/o Chief Human Resources Officer
One Museum Place
3100 West 7th Street, Suite 500
Fort Worth, Texas 76107
		
	•
	Name, Address, and Telephone Number of the Plan Administrator:

Chief Human Resources Officer
AZZ Inc.
One Museum Place
3100 West 7th Street, Suite 500
Fort Worth, Texas 76107
		
	•
	Plan Name:   The AZZ Inc. Severance Pay Plan (as described herein) is a benefit provided under, and a part of the AZZ Inc. Group Insurance Plan.

		
	•
	Type of Plan: The AZZ Inc. Severance Pay Plan for Employees provides severance benefits, and the remainder of the Welfare Plan provides other welfare benefits.

		
	•
	Plan Number Assigned to this Plan:  502

		
	•
	Plan Year:  January 1 – December 31

		
	•
	Type of Administration:  Self-Administration

		
	•
	Employer Identification Number of Plan Sponsor:  75-0948250

		
	•
	Agent for Legal Process: Legal process regarding any matter related to this Plan may be served on the Chief Legal Officer at the address listed above.

		
	•
	Funding Medium: Benefits are payable solely from the general assets of the Company.  

	
		
	

September 30, 2017
   
	AZZ INC.

BY:  /s/ Matt Emery

TITLE:  Chief Human Resources Officer

8

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