Document:

Tax Disaffiliation Agreement

 Exhibit 10.1 
 TAX DISAFFILIATION AGREEMENT 
 TAX DISAFFILIATION AGREEMENT dated as of October 31, 2007
(this “Agreement”), between ACUITY BRANDS, INC., a Delaware corporation (“Parent”), and Zep Inc., a Delaware corporation (“SpinCo”). 
 WHEREAS, as of the date of this Agreement, Parent is the common parent of an affiliated group of corporations within the meaning of Section 1504(a)
of the Internal Revenue Code of 1986, as amended (the “Code”), which currently files consolidated federal income tax returns, and SpinCo is a member of such affiliated group; 
 WHEREAS, pursuant to the Agreement and Plan of Distribution dated October 31, 2007 (the “Distribution Agreement”), by and between
Parent and SpinCo, after engaging in certain Corporate Transactions (as defined in the Distribution Agreement), Parent shall distribute to its stockholders all of the outstanding shares of stock of SpinCo, together with associated preferred stock
purchase rights, on a pro rata basis (the “Distribution”); 
 WHEREAS, Parent and SpinCo intend that the Distribution will
qualify as a distribution described in Section 355 of the Code and will not result in the recognition of any taxable gain or income to Parent, SpinCo or any of their respective stockholders; 
 WHEREAS, as a result of the Distribution, SpinCo and its subsidiaries shall cease to be members of the Parent affiliated group for all applicable tax
purposes; 
 WHEREAS, Parent and SpinCo desire, on behalf of themselves, their subsidiaries and their successors, to set forth their rights
and obligations with respect to Taxes due for periods before and after the Distribution and to address certain other Tax matters; 
 NOW,
THEREFORE, in consideration of the transactions recited above and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows: 
 ARTICLE I 
 Definitions

 Section 1.1 Definition of Terms. The following terms shall have the following meanings. All section references are to this
Agreement unless otherwise stated. 
 “Active Trade or Business” means the active conduct by SpinCo of the businesses
conducted by the members of the SpinCo Group as of the Distribution Date (determined in accordance with Section 355(b) of the Code). 
 “Acuity Canada” means Acuity Holdings, Inc., a Canadian corporation, which historically has conducted part of both the Parent Business and the SpinCo Business. 
 “Affiliate” means, when used with respect to any specified person, a person that directly or indirectly controls, is controlled by, or
is under common control with such specified person, in 

 
each case after the Distribution. As used herein, “control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such person, whether through the ownership of voting securities or other interests, by contract or otherwise. For the avoidance of doubt, SpinCo is not an Affiliate of Parent for purposes of this
Agreement. 
 “Agreement” has the meaning set forth in the recitals. 
 “Ancillary Agreement” has the meaning set forth in the Distribution Agreement. 
 “Applicable Rate” has the meaning set forth in the Distribution Agreement. 
 “Business Day” has the meaning set forth in the Distribution Agreement. 
 “Code” has the meaning set forth in the recitals. 
 “Distribution” has the meaning set forth in the recitals. 
 “Distribution
Date” has the meaning set forth in the Distribution Agreement. 
 “Final Determination” means the final resolution
of liability for any Tax for any taxable period by or as a result of (i) a final and unappealable decision, judgment, decree or other order by any court of competent jurisdiction; (ii) a final settlement with the IRS, a closing agreement
or accepted offer in compromise under Section 7121 or 7122 of the Code, or a comparable arrangement under the laws of another jurisdiction; (iii) any allowance of a refund in respect of an overpayment of Tax, but only after the expiration
of all periods during which such amount may be recovered by the Taxing Authority imposing the Tax; or (iv) any other final disposition, including by reason of the expiration of the applicable statute of limitations. 
 “Foreign Income Tax Basket” has the meaning set forth in Section 2.2(e). 
 “Group” means the Parent Group or the SpinCo Group, or both, as the context requires. 
 “Income Taxes” means all federal, state, local, and foreign income Taxes or other Taxes based on income or net worth. 
 “Income Tax Return” means any Tax Return relating to Income Taxes. 
 “Indemnitee” has the meaning set forth in Section 5.1. 
 “Indemnifying Party” has the meaning set forth in Section 5.1. 
 “IRS” means the U.S. Internal Revenue Service. 
 “Joint Return” means (i) any Tax Return that includes both a member of the Parent Group and a member of the SpinCo Group and (ii) any Tax Return of Acuity Canada for a Pre-Distribution Tax
Period and for the Straddle Period. 
 “Non-Income Taxes” means any Taxes other than Income Taxes. 
 “Parent Assets” has the meaning set forth in the Distribution Agreement. 
 “Parent Business” has the meaning set forth in the Distribution Agreement. 
 “Past Practices” has the meaning set forth in Section 3.3(a). 
 “Post-Distribution Tax Period” means any taxable period beginning after the Distribution Date and the portion of any Straddle Period
beginning after the Distribution Date. 
  

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 “Pre-Distribution Tax Period” means any taxable period ending on or before the close of
the Distribution Date and the portion of any Straddle Period ending on the Distribution Date. 
 “Proposed Acquisition
Transaction” has the meaning set forth in Section 4.2(b). 
 “Reportable Transaction” means a listed
transaction or other reportable transaction as defined in the Treasury Regulations under Section 6011 of the Code. 
 “Restricted Period” means the period beginning on the Distribution Date and ending on, and including, the last day of the two year period following the Distribution Date. 
 “Ruling Documents” means the request for a ruling under Section 355 and various other Sections of the Code filed with the IRS in
connection with the Distribution, together with any supplemental filings or ruling requests or other materials subsequently submitted to the IRS on behalf of Parent, its subsidiaries and shareholders to the IRS, the appendices and exhibits thereto,
and any rulings issued by the IRS to Parent in connection with the Distribution. 
 “Satisfactory Guidance” means either a
ruling from the IRS or an Unqualified Tax Opinion, at the election of SpinCo, in either case reasonably satisfactory to Parent in both form and substance, including with respect to any underlying assumptions or representations. 
 “Separate Return” means (i) in the case of the SpinCo Group, a Tax Return of any member of that Group (including any consolidated,
combined, affiliated or unitary Return) that does not include, for all or any portion of the relevant taxable period, any member of the Parent Group and (ii) in the case of the Parent Group, a Tax Return of any member of that Group (including
any consolidated, combined, affiliated or unitary Return) that does not include, for all or any portion of the relevant taxable period, any member of the SpinCo Group. Notwithstanding the foregoing, the Tax Returns of Acuity Canada for
Pre-Distribution Tax Periods and for the Straddle Period shall be treated as Joint Returns and not as Separate Returns for purposes of this Agreement. 
 “SpinCo” has the meaning set forth in the recitals. 
 “SpinCo Assets” has
the meaning set forth in the Distribution Agreement. 
 “SpinCo Business” has the meaning set forth in the Distribution
Agreement. 
 “SpinCo Capital Stock” means (i) all classes or series of capital stock of SpinCo, including common stock
and all other instruments treated as equity in SpinCo for U.S. federal income tax purposes and (ii) all options, warrants and other rights to acquire such capital stock. 
 “SpinCo Group” means SpinCo and its Affiliates. 
 “Straddle Period” means, with respect to a given entity, any taxable period beginning on or before the Distribution Date and ending after the Distribution Date; provided, however, that
the term “Straddle Period” shall not include any U.S. federal income taxable period of the Parent Group. 
 “Taxes” means all forms of taxation or duties imposed, or required to be collected or withheld, including charges, together with any related interest, penalties or other additional amounts. For the avoidance of doubt, the
term “Taxes” does not include amounts to be paid to any governmental authority pursuant to escheat law. 
  

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 “Taxing Authority” means any national, municipal, governmental, state, federal, foreign,
or other body, or any quasi-governmental or private body, having jurisdiction over the assessment, determination, collection or imposition of any Tax. 
 “Tax Advisor” means a tax counsel or other tax advisor of recognized standing reasonably acceptable to both parties. 
 “Tax Benefit” means the amount of the reduction in the Tax liability of an entity (or of the consolidated or combined group of which it is a member), whether temporary or permanent, for any taxable
period that arises, or may arise in the future, as a result of any adjustment to, or addition or deletion of, a Tax Item in the computation of the Tax liability of the entity (or the consolidated or combined group of which it is a member).

 “Tax Contest” means an audit, review, examination or any other administrative or judicial proceeding with the purpose or
effect of determining or redetermining Taxes. 
 “Tax Detriment” means the amount of the increase in the Tax liability of an
entity (or of the consolidated or combined group of which it is a member), whether temporary or permanent, for any taxable period that arises, or may arise in the future, as a result of any adjustment to, or addition or deletion of, a Tax Item in
the computation of the Tax liability of the entity (or the consolidated or combined group of which it is a member). 
 “Tax-Free
Status” means the qualification of the contribution of property to SpinCo and the Distribution together as a reorganization described in Sections 355 and 368(a)(1)(D) of the Code in which the SpinCo stock distributed is “qualified
property” for purposes of Section 361(c) of the Code and that qualifies for tax-free treatment under comparable provisions of state, local and foreign law. For the avoidance of doubt, recognition of income or gain that relates to
intercompany items shall not cause the Distribution to fail to achieve Tax-Free Status. 
 “Tax Item” means any item of
income, gain, loss, deduction, credit, recapture of credit, or any other item (including the basis or adjusted basis of property) which increases or decreases Income Taxes paid or payable in any taxable period. 
 “Tax Opinion” means the opinion of King & Spalding LLP regarding the Tax-Free Status of the Distribution and any other opinion
issued to allow a party to take actions otherwise restricted by this Agreement. 
 “Tax Return” means any return, report,
certificate, form or similar statement or document (including any related or supporting information or schedule attached thereto and any information return, amended tax return, claim for refund or declaration of estimated Tax) required or permitted
to be supplied to, or filed with, a Taxing Authority in connection with the determination, assessment or collection of any Tax or the administration of any laws, regulations or administrative requirements relating to any Tax. 
 “Transactions” means the Distribution, the Corporate Transactions, any other transactions contemplated by the Distribution Agreement and
any other transfer of assets (whether by contribution, sale or otherwise) between any member of the Parent Group and the SpinCo Group in connection with the Distribution (including without limitation the transfer by Acuity Canada to a Parent
Affiliate of the assets of Acuity Canada relating to the Parent Business). 
  

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 “Transaction Taxes” means all (i) Taxes of any member of the Parent Group or the
SpinCo Group resulting from, or arising in connection with, the failure of the contribution of property to SpinCo and/or the Distribution to have Tax-Free Status, (ii) Taxes of the type described in clause (i) of any third party for which
any member of the Parent Group or SpinCo Group becomes liable, and (iii) reasonable out of pocket legal, accounting and other advisory and court fees in connection with liability for Taxes described in clauses (i) or (ii). 
 “Unqualified Tax Opinion” means an unqualified “will” opinion of a Tax Advisor that permits reliance by Parent. The Tax
Advisor, in issuing its opinion, shall be permitted to rely on the validity and correctness, as of the date given, of any previously issued Tax Opinion or Ruling Document, unless such reliance would be unreasonable under the circumstances.

 ARTICLE II 
 Tax
Sharing 
 Section 2.1 Responsibility and Indemnification for Taxes. 
 (a) From and after the Distribution Date, without duplication, each of Parent and SpinCo shall be responsible for, and shall pay its
respective share of, the liability for Taxes of Parent, SpinCo and their respective Affiliates, as provided in this Agreement. Parent shall indemnify and hold harmless SpinCo and its Affiliates from any Taxes for which Parent is responsible under
this Agreement. SpinCo shall indemnify and hold harmless Parent and its Affiliates from any Taxes for which SpinCo is responsible pursuant to this Agreement. 
 (b) Payments to Taxing Authorities and between the parties, as the case may be, shall be made in accordance with the provisions of this
Agreement. 
 Section 2.2 SpinCo’s Liability for Taxes. SpinCo shall be liable for the following Taxes: 
 (a) except as provided for in Section 2.3(e), all Non-Income Taxes incurred with respect to any SpinCo Separate Return or otherwise
with respect to the SpinCo Assets or the SpinCo Business for any taxable period; 
 (b) any Transaction Taxes that are
attributable to: 
 (i) any inaccurate statement or representation of fact or intent (or omission to state a material fact)
made by SpinCo in Section 4.1; 
 (ii) any inaccurate statement or representation of fact or intent (or omission to state
a material fact) in a letter or certificate that is provided by any member of the SpinCo Group and that forms the basis for the Tax Opinion; 
 (iii) any action or omission by any member of the SpinCo Group after the date of this Agreement inconsistent with the covenants set forth in this Agreement; or 
  

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 (iv) any other action or omission by any member of the SpinCo Group after the date of
this Agreement, including any action or omission that would have resulted in SpinCo being in breach of Section 4.2(b) but for the receipt by SpinCo of a ruling of the IRS, an Unqualified Tax Opinion, or a waiver; 
 (c) any increase in the U.S. federal, state, local or foreign Income Tax liability of Parent, SpinCo or any member of either of their
respective Groups with respect to any Pre-Distribution Tax Period, but only if, and then to the extent that, such increased Income Tax liability is attributable to either (i) SpinCo’s willful misconduct or material breach of its
obligations under this Agreement or (ii) a change in any item of income, gain, deduction, loss, credit or other allowance from that which was reported on, or omitted from, an Income Tax Return as originally filed for a Pre-Distribution Tax
Period, whether that change arises from a Tax Contest, amended Tax Return, claim for refund or otherwise, that increases the amount of income or gain attributable to SpinCo or any SpinCo Affiliate in a Pre-Distribution Tax Period and correspondingly
decreases the amount of income or gain attributable to SpinCo or any SpinCo Affiliate in a Post-Distribution Tax Period or that decreases the amount of deductions, losses, credits or other allowances attributable to SpinCo or a SpinCo Affiliate in a
Pre-Distribution Tax Period and correspondingly increases the amount of deductions, losses, credits or other allowances attributable to SpinCo or any SpinCo Affiliate in a Post-Distribution Tax Period; 
 (d) the amount, if any, by which the aggregate foreign Income Taxes attributable to SpinCo Separate Returns for the portion of the
Straddle Period ending on the Distribution Date exceed the estimated amount payable by Parent with respect thereto under Section 2.4(c); 
 (e) the first $100,000, in the aggregate, of additional foreign Income Taxes owed by SpinCo and the SpinCo Affiliates as a result of amendments to, or Tax Contests involving, SpinCo Separate Returns for taxable
periods that end on or before the Distribution Date (the “Foreign Income Tax Basket”); and 
 (f) all Taxes incurred
with respect to SpinCo and any SpinCo Affiliate for any Post-Distribution Tax Period. 
 Section 2.3 Parent’s Liability for
Taxes. Parent shall be liable for the following Taxes: 
 (a) all Non-Income Taxes incurred with respect to any Parent
Separate Return or otherwise with respect to the Parent Assets or the Parent Business for any taxable period; 
 (b) except as
provided for in Sections 2.2(b) and (c), all U.S. federal, state and local Income Taxes incurred by Parent, SpinCo, or any member of their respective Groups with respect to any Pre-Distribution Tax Period; 
 (c) except as provided for in Section 2.2(c), all foreign Income Taxes (i) that are required to be reported on a Parent Separate
Return for any taxable period, (ii) of Acuity Canada that are attributable to any Pre-Distribution Tax Period (including the portion of 

  

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the Straddle Period ending on the Distribution Date), (iii) that are shown as due on any SpinCo Separate Return as originally filed for any taxable
period that ends on or before the Distribution Date (excluding Straddle Periods), and/or (iv) that exceed the Foreign Income Tax Basket and result from amendments to, or Tax Contests involving, SpinCo Separate Returns for taxable periods that
end on or before the Distribution Date; 
 (d) all Taxes incurred with respect to Parent and any Parent Affiliate for any
Post-Distribution Tax Period; and 
 (e) any stamp, sales, use, gross receipts, value-added, withholding, real estate transfer
or other similar Taxes imposed in connection with the Transactions. 
 Section 2.4 Payment of Allocable Taxes. 
 (a) With respect to each payment of Tax that is due after the Distribution Date in connection with the filing of any Tax Return, including
estimated tax installments and payments made in connection with extension requests, the party responsible for filing such Tax Return under Article III shall notify the other party in writing of the amount of the tax sharing payment due from such
other party, if any, calculated under the principles of this Agreement, and such other party shall make its tax sharing payment to the first party (to the extent not previously paid or credited); provided, however, that neither party shall be
required to make a tax sharing payment to the other party under this Section 2.4(a) until five (5) days after the applicable Tax payment is made to the applicable Taxing Authority. Tax sharing payments made under this Section 2.4(a),
as well as tax sharing payments made by, or credited to, a party prior to the Distribution Date, shall be adjusted when each applicable Tax Return and the calculation of the applicable Tax liability is finalized. 
 (b) If any Tax Return for a Pre-Distribution Tax Period is examined by a Taxing Authority and such examination results in additional Taxes
due, the party responsible for such additional Taxes under Section 2.2 or 2.3, as applicable, shall pay or cause its Affiliate to pay the indemnified amount to the other party within five (5) days after such other party makes payment of
such additional Taxes following a Final Determination. 
 (c) Section 2.4(a) shall not apply to any payment of foreign
Income Tax that is due after the Distribution Date in connection with the filing of any SpinCo Separate Return for any Straddle Period. Rather, within sixty (60) days after the Distribution Date, Parent shall provide a statement to SpinCo
containing a reasonably detailed estimate of the amount of such foreign Income Taxes attributable to the portion of the Straddle Period ending on the Distribution Date. Parent and SpinCo shall cooperate with each other in good faith to reach
agreement on such estimated amount within thirty (30) days after Parent provides such statement to SpinCo. Within five (5) days after the estimated amount is finally determined by agreement of the parties or pursuant to Article VI, Parent
shall pay such finally determined amount to SpinCo. There shall be no “true up” or other adjustment payable by, or refundable to, Parent when the Straddle Period foreign Income Tax Returns described in this Section 2.4(a) are
finalized and filed, and Parent shall not be liable for any additional foreign Income Taxes due, and shall not be entitled to receive 

  

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any refunds of foreign Income Taxes, resulting from any amendment to, or Tax Contest involving, SpinCo Separate Returns for any Straddle Period, except to
the extent that any such additional Taxes due are attributable to Parent’s willful misconduct or material breach of its obligations under this Agreement. For the avoidance of doubt, this Section 2.4(c) does not apply to Income Tax Returns
of Acuity Canada for the Straddle Period. 
 Section 2.5 Allocation of Certain Income Taxes and Income Tax Items. 
 (a) If Parent, SpinCo or any of their respective Affiliates is permitted but not required under applicable Tax laws to treat the
Distribution Date as the last day of a taxable period, then the parties shall treat such day as the last day of a taxable period under such applicable Tax law and shall file any elections necessary or appropriate to such treatment, provided that
this Section 2.5(a) shall not be construed to require Parent to change its taxable year. 
 (b) Transactions occurring,
or actions taken, on the Distribution Date but after the Distribution outside the ordinary course of business by, or with respect to, SpinCo or any of its Affiliates shall be deemed subject to the “next day rule” of Treasury Regulation
Section 1.1502-76(b)(1)(ii)(B) (and under any comparable or similar provision under state, local or foreign laws or regulations, provided that if there is no comparable or similar provision under state, local or foreign laws or regulations,
then the transaction will be deemed subject to the “next day rule” and as such shall for purposes of this Agreement be treated (and consistently reported by the parties) as occurring in a Post-Distribution Tax Period of SpinCo or a SpinCo
Affiliate, as appropriate). 
 (c) Any Taxes for a Straddle Period shall, for purposes of this Agreement, be apportioned
between the portion of the period ending on and including the Distribution Date and the portion of the period beginning after the Distribution Date, and each such portion of such period shall be deemed to be a taxable period (whether or not it is in
fact a taxable period). Any allocation of income or deductions required to determine any Income Taxes for a Straddle Period shall be made by means of a closing of the books and records of SpinCo and its Affiliates as of the close of business on the
Distribution Date, provided that (i) Parent may elect to allocate Tax Items (other than any extraordinary Tax Items) ratably in the month in which the Distribution occurs (and if Parent so elects, SpinCo shall so elect) as described in Treasury
Regulations Section 1.1502-76(b)(2)(iii) and corresponding provisions of state, local, and foreign Tax laws; and (ii) subject to clause (i), exemptions, allowances or deductions that are calculated on an annual basis, and not on a closing
of the books method (including, but not limited to, depreciation and amortization deductions) shall be allocated between the period ending on and including the Distribution Date and the period beginning after the Distribution Date based on the
number of days for the portion of the Straddle Period ending on and including the Distribution Date, on the one hand, and the number of days for the portion of the Straddle Period beginning after the Distribution Date, on the other hand. 

(d) Tax attributes determined on a consolidated or combined basis for taxable periods ending before or including the Distribution Date
shall be allocated to Parent and its Affiliates, and SpinCo and its Affiliates, in accordance with the Code and the Treasury 

  

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Regulations (and any applicable state, local, or foreign law or regulation). Parent shall reasonably determine the amounts and proper allocation of such
attributes. Parent and SpinCo agree to compute their Tax liabilities for taxable periods after the Distribution Date consistent with that determination and allocation, and treat the Tax Items as reflected on any federal (or applicable state, local
or foreign) Income Tax Return filed by the parties as presumptively correct. 
 Section 2.6 Tax Refunds. Except as provided in
Section 2.7: 
 (a) Parent shall be entitled to all refunds (including refunds paid by means of a credit against other or
future Tax liabilities) and credits with respect to any Tax for which Parent is responsible under this Agreement. SpinCo shall be entitled to all refunds (including refunds paid by means of a credit against other or future Tax liabilities) and
credits with respect to any Tax for which SpinCo is responsible under this Agreement. 
 (b) Parent and SpinCo shall each
forward to the other party, or reimburse such other party for, any refunds received by the first party and due to such other party pursuant to this Section. Where a refund is received in the form of a credit against other or future Tax liabilities,
reimbursement with respect to such refund shall be due in each case on the due date for payment of the Tax against which such refund has been credited. All payments made pursuant to this Section 2.6 shall describe in reasonable detail the basis
for the calculation of the amount being paid. 
 (c) If one party reasonably so requests, the other party (at the first
party’s expense) shall file for and pursue any refund to which the first party is entitled under this Section, provided that the other party need not pursue any refund on behalf of the first party unless the first party provides the other party
a certification by an appropriate officer of the first party setting forth the first party’ s belief (together with supporting analysis) that the Tax treatment of the Tax Items on which the entitlement to such refund is based is more likely
than not correct, and is not a Tax Item arising from a Reportable Transaction. 
 (d) If the other party pays any amount to
the first party under this Section 2.6 and, as a result of a subsequent Final Determination, the first party is not entitled to some or all of such amount, the other party shall notify the first party of the amount to be repaid to the other
party, and the first party shall then repay such amount to the other party, together with any interest, fines, additions to Tax, penalties or any other additional amounts imposed by a Taxing Authority relating thereto. 
 Section 2.7 Carrybacks. 
 (a) Notwithstanding anything in this Agreement, SpinCo shall file (or cause to be filed) on a timely basis any available election to waive the carryback of net operating losses, Tax credits or other Tax Items by SpinCo or any Affiliate from
a Post-Distribution Tax Period to a Straddle Period or Pre-Distribution Tax Period. 
 (b) If, notwithstanding the provisions
of Section 2.7(a), SpinCo is required to carry back losses or credits, SpinCo shall be entitled to any refund of any Tax obtained 

  

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by Parent or a Parent Affiliate as a result of the carryback of losses or credits of SpinCo or a SpinCo Affiliate from any Post-Distribution Tax Period to
any Pre-Distribution Tax Period or Straddle Period. Such refund is limited to the net amount received by Parent or a Parent Affiliate (by refund, offset against other Taxes, or otherwise), net of any Tax Detriment incurred by Parent or such
Affiliate resulting from such refund. Upon request by SpinCo, Parent shall advise SpinCo of an estimate of any Tax Detriment Parent projects will be associated with any carryback of losses or credits of SpinCo and its Affiliates provided in this
Section 2.7(b). 
 (c) If SpinCo has a Tax Item that must be carried back to any Pre-Distribution Tax Period, SpinCo
shall notify in writing Parent that such Tax Item must be carried back. Such notification shall include a description in reasonable detail of the grounds for the refund and the amount thereof, and a certification by an appropriate officer of SpinCo
setting forth SpinCo’s belief (together with supporting analysis) that the Tax treatment of such Tax Item is more likely than not correct, and is not a Tax Item arising from a Reportable Transaction. 
 (d) If Parent pays any amount to SpinCo under Section 2.7(b) and, as a result of a subsequent Final Determination, SpinCo is not
entitled to some or all of such amount, Parent shall notify SpinCo of the amount to be repaid to Parent, and SpinCo shall then repay such amount to Parent, together with any interest, fines, additions to Tax, penalties or any other additional
amounts imposed by a Taxing Authority relating thereto. 
 ARTICLE III 
 Preparation and Filing of Tax Returns 
 Section 3.1 Parent
Responsibility. 
 (a) Subject to paragraph (b) below, Parent shall make all determinations with respect to, have
ultimate control over the preparation of, and file or cause to be filed, as it determines to be mandatory or advisable, all (i) Joint Returns for all taxable periods (except for Tax Returns with respect to Acuity Canada for the Straddle Period,
which shall be SpinCo’s responsibility to file), (ii) Parent Separate Returns for all taxable periods, and (iii) SpinCo Separate Returns relating to Income Taxes for periods that end on or prior to the Distribution Date (i.e.,
excluding Straddle Periods, which shall be SpinCo’s responsibility to file). 
 (b) Parent shall submit to SpinCo the
portions of any Tax Returns described in Section 3.1 that include SpinCo, a SpinCo Affiliate, the SpinCo Assets or the SpinCo Business or that involve Taxes for which SpinCo is potentially liable under this Agreement, no later than forty five
(45) days prior to the due date (including extensions) for filing of any such Tax Returns (or if such due date is within 45 days following the Distribution Date, as promptly as practicable following the Distribution Date). Within fifteen
(15) days after delivery of any such portions of any Tax Return, SpinCo shall provide comments to Parent in writing to the extent SpinCo objects to any item reflected 

  

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in such Tax Return. Such SpinCo comments shall be incorporated into the Tax Return upon the consent of Parent, not to be unreasonably withheld. If SpinCo
does not so notify Parent of any objection, SpinCo shall be considered to have consented to the filing of such Tax Return. 
 (c) Parent shall prepare and provide to SpinCo all tax information relating to the Parent Assets and the Parent Business that is required by SpinCo to complete any Income Tax Return of Acuity Canada for the Straddle Period, in the format
reasonably requested by SpinCo, and at least 100 days before the due date (including extensions) for the filing of any such Income Tax Return. 
 (d) The dates for submissions of Tax Returns or tax information to SpinCo required in this section may be modified by mutual agreement of the parties. 
 Section 3.2 SpinCo Responsibility. 
 (a) Subject to paragraph (b) below, SpinCo shall make all determinations with respect to, have ultimate control over the preparation of, and file all Tax Returns (other than those described in Section 3.1)
for the SpinCo Group as it determines to be mandatory or advisable and for all tax periods. 
 (b) SpinCo shall submit to
Parent any Tax Return of Acuity Canada for any Pre-Distribution Tax Period, and any other Tax Return described in Section 3.2(a) that includes Parent, a Parent Affiliate, the Parent Assets or the Parent Business or that otherwise involves Taxes
for which Parent could be liable under this Agreement, no later than forty five (45) days prior to the due date (including extensions) for filing of any such Tax Return (or if such due date is within 45 days following the Distribution Date, as
promptly as practicable following the Distribution Date). Within fifteen (15) days after delivery of any such Tax Returns, Parent shall provide comments to SpinCo in writing to the extent Parent objects to any item reflected in such Tax Return.
Such Parent comments shall be incorporated into the Tax Return upon the consent of SpinCo, not to be unreasonably withheld. If Parent does not notify SpinCo of any objection, Parent shall be considered to have consented to the filing of such Tax
Return. 
 (c) SpinCo shall prepare and provide to Parent all tax information related to members of the SpinCo Group required
to complete any Joint Return or SpinCo Separate Return required to be prepared by Parent, in the format reasonably requested by Parent and consistent with past practices, and at least 110 days before the due date (including extensions) of the
relevant federal Joint Return and at least 100 days before the due date (including extensions) of any other Joint Return or SpinCo Separate Return required to be filed by Parent. 
 (d) The dates for submissions of Tax Returns or tax information to Parent required in this section may be modified by mutual agreement of
the parties. 
 Section 3.3 Tax Accounting Practices. 
  

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 (a) Except as provided in Section 3.3(b), any Tax Return for any Pre-Distribution
Tax Period, to the extent it relates to members of the SpinCo Group, shall be prepared in accordance with practices, accounting methods, elections, conventions and Tax positions used with respect to the Tax Return in question for periods prior to
the Distribution (“Past Practices”), and, in the case of any item the treatment of which is not addressed by Past Practices, in accordance with generally acceptable Tax accounting practices. Parent and SpinCo shall notify each
other, in connection with the submissions of Tax Returns for review under Section 3.1(b) or 3.2(b), as applicable, with respect to any material item that is proposed to be reported in a manner that is not consistent with Past Practices.
Notwithstanding the foregoing, for any Tax Return described in this Section 3.3(a), (i) a party will not be required to follow Past Practices with either the written consent of the other party (not to be unreasonably withheld) or a
“should” level opinion from a Tax Advisor that the proposed method of reporting is correct and (ii) Parent shall have the right to determine which entities will be included in any Joint Return that it is responsible for filing.

 (b) The parties shall report the Transactions for all Tax purposes in a manner consistent with the Ruling Documents and the
Tax Opinion, unless, and only to the extent, an alternative position is required pursuant to a Final Determination. Parent shall determine the Tax treatment to be reported on any Tax Return of any Tax issue relating to the Transactions that is not
covered by the Ruling Documents or the Tax Opinion. 
 Section 3.4 Right to Review Tax Returns. Upon request, each party shall
provide to the other party the portion of any Tax Return for a Pre-Distribution Tax Period that relates to the other party’s Group that the first party is responsible for preparing under this Article III. 
 ARTICLE IV 
 Tax-Free Status of
Distribution 
 Section 4.1 Representations. 
 (a) SpinCo, for itself and the SpinCo Affiliates, represents and warrants that: 
 (i) SpinCo has reviewed the information and representations made in the Ruling Documents submitted to the IRS prior to the date of this
Agreement and the representations made by SpinCo in the certificate that forms the basis for the Tax Opinion and, to the knowledge and belief of SpinCo, all of such information or representations that relate to SpinCo or any SpinCo Affiliate, or the
business or operations of either, are true, correct and complete; and 
 (ii) to the knowledge and belief of SpinCo, no
officer or director of SpinCo or any SpinCo Affiliate (nor any person acting with the permission of any such officer or director) has participated in any “agreement, understanding, arrangement or substantial negotiations” (as those terms
are used in Treasury Regulations section 1.355-7(h)) with respect to any transaction involving the issuance or other acquisition of SpinCo Capital Stock (excluding for this purpose (x) issuances of SpinCo Capital Stock meeting the requirements
of Safe Harbor 

  

 12 

 
VIII of Treasury Regulation Section 1.355-7(d) (relating to certain compensatory transfers of stock), (y) transfers on an established market of
SpinCo Capital Stock described in Safe Harbor VII of Treasury Regulation Section 1.355-7(d) or (z) issuances of SpinCo Capital Stock described in Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury
Regulation Section 1.355-7(d)), or any merger or acquisition involving all or substantially all of the assets of SpinCo or a SpinCo Affiliate. 
 (b) Parent, for itself and the Parent Affiliates, represents and warrants that: 
 (i) Parent
has reviewed the information and representations made in the Ruling Documents submitted to the IRS prior to the date of this Agreement and the representations made by Parent in the certificate that forms the basis for the Tax Opinion and, to the
knowledge and belief of Parent, all of such information or representations are true, correct and complete; and 
 (ii) to the
knowledge and belief of Parent, no officer or director of Parent or any Parent Affiliate (nor any person acting with the permission of any such officer or director) has participated in any “agreement, understanding, arrangement or substantial
negotiations” (as those terms are used in Treasury Regulations section 1.355-7(h)) with respect to any transaction involving the issuance or other acquisition of SpinCo Capital Stock (excluding for this purpose (x) issuances of SpinCo
Capital Stock meeting the requirements of Safe Harbor VIII of Treasury Regulation Section 1.355-7(d) (relating to certain compensatory transfers of stock), (y) transfers on an established market of SpinCo Capital Stock described in Safe
Harbor VII of Treasury Regulation Section 1.355-7(d) or (z) issuances of SpinCo Capital Stock described in Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d)), or
any merger or acquisition involving all or substantially all of the assets of SpinCo or a SpinCo Affiliate. 
 Section 4.2
Covenants. 
 (a) Each of SpinCo and Parent will not take or fail to take, or permit its Affiliates to take or fail to
take, any action where that action or omission would (i) violate, be inconsistent with or cause to be untrue any covenant, representation or statement in the Ruling Documents, any Tax Opinion or a letter or certificate that forms the basis
therefor, or (ii) prevent, or be reasonably likely to prevent, the Tax-Free Status. 
 (b) Neither SpinCo nor any SpinCo
Affiliate will, directly or indirectly: 
 (i) enter into, or otherwise be a party to, any transaction or arrangement
(including, without limitation, stock issuances, stock acquisitions, and transactions involving the stock or substantially all of the assets of SpinCo or any SpinCo Affiliate) pursuant to which one or more persons acquire stock of SpinCo or any
SpinCo Affiliate representing a “50-percent or greater interest” within the 

  

 13 

 
meaning of Section 355(d)(4) of the Code that would cause Section 355(e) of the Code to apply to the Distribution; 
 (ii) take or fail to take any other action (including, without limitation, any voluntary cessation or disposition of its Active Trade or
Business) that would cause the contribution of property to SpinCo and/or the Distribution to fail to have Tax-Free Status; 
 (iii) during the Restricted Period, permit any transaction or series of transactions (or any agreement, understanding or arrangement to enter into a transaction or series of transactions) as determined for purposes of Section 355(e) of
the Code, in connection with which any person would (directly or indirectly) acquire, or have the right to acquire, from any other person, any interest in SpinCo Capital Stock which, when aggregated with all other such specified transactions
undertaken during the Restricted Period, would involve the acquisition (determined under the principles of Section 355(e) of the Code) by one or more persons of more than forty percent (40%) (by vote or by value) of the SpinCo Capital
Stock (a “Proposed Acquisition Transaction”). For these purposes, any recapitalization, repurchase or redemption of SpinCo Capital Stock shall be treated as an indirect acquisition of such stock by any non-exchanging shareholder to
the extent such shareholder’s percentage interest in SpinCo Capital Stock increases by vote or value. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (w) the adoption by SpinCo of a shareholder rights
plan that meets the requirements of IRS Revenue Ruling 90-11, (x) issuances of SpinCo Capital Stock meeting the requirements of Safe Harbor VIII of Treasury Regulation Section 1.355-7(d) (relating to certain compensatory transfers of
stock), (y) transfers on an established market of SpinCo Capital Stock described in Safe Harbor VII of Treasury Regulation Section 1.355-7(d) or (z) issuances of SpinCo Capital Stock described in Safe Harbor IX (relating to
acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d); 
 (iv) during the
Restricted Period, permit any transaction or series of transactions (or any agreement, understanding or arrangement to enter into a transaction or series of transactions) as determined for purposes of Section 355(e) of the Code, in connection
with which any member of the SpinCo Group would merge or consolidate with any person (other than any other member of the SpinCo Group) or transfer its assets to such a person in a transaction described in Section 355(e)(3)(B) of the Code and as
a result of which, after taking into account any acquisition of SpinCo Capital Stock required to be taken into account for purposes of clause (iii) above, the stockholders of SpinCo immediately after the Distribution would continue to own,
directly or indirectly, less than sixty percent (60%) (by vote or by value) of the capital stock or other ownership interests in the acquiring person; or 
  

 14 

 (v) during the Restricted Period, liquidate or partially liquidate, including by way of
merger or consolidation, SpinCo or any corporation that constitutes a SpinCo Affiliate immediately after the Distribution; 
 (c) Notwithstanding paragraph (b), clauses (iii) through (v) of paragraph (b) shall not apply upon the prior written consent of Parent, which consent may not be withheld if Parent determines in good faith that SpinCo has
provided it with Satisfactory Guidance that the proposed actions will not result in Transaction Taxes. In addition, in the event that SpinCo intends to consummate any Proposed Acquisition Transaction or any transaction described in clause
(iv) of paragraph (b) more than one year after the Distribution Date, then SpinCo shall be permitted to consummate such proposed transaction, provided that SpinCo shall provide Parent with an unconditional certification that it did not
have any agreement, understanding, arrangement, or substantial negotiations, within the meaning of Treasury Regulations Section 1.355-7(h), with the counterparty to such transaction within 12 months after the Distribution Date, and Parent after
reasonable investigation is satisfied with the correctness of such certification. 
 Section 4.3 Procedures Regarding Opinions and
Rulings. 
 (a) If SpinCo may take certain actions conditioned upon the receipt of Satisfactory Guidance, Parent, at the
request of SpinCo, shall use commercially reasonable efforts to obtain expeditiously, or to assist SpinCo in obtaining, such Satisfactory Guidance. Parent shall not be required to take any action pursuant to this Section 4.3(a) if SpinCo fails
to certify, upon request, that all information and representations relating to any member of the SpinCo Group in the relevant documents are true, correct and complete. SpinCo shall reimburse Parent for all reasonable out-of-pocket costs and expenses
incurred by Parent in obtaining Satisfactory Guidance. 
 (b) Parent shall have the right to obtain a ruling from the IRS (or
any other Taxing Authority) or an Unqualified Tax Opinion at any time in its sole discretion. Parent shall reimburse SpinCo for all reasonable out-of-pocket costs and expenses incurred by the SpinCo Group in obtaining such a ruling or Unqualified
Tax Opinion. 
 ARTICLE V 
 Tax Contests; Indemnification; Cooperation 
 Section 5.1 Notice. 
 (a) Within 15 Business Days after a party (the “Indemnitee”) becomes aware of the existence of a Tax Contest that may give rise
to an indemnification claim under this Agreement by it against the other party (the “Indemnifying Party”), the Indemnitee shall promptly notify the Indemnifying Party of the Tax Contest, and thereafter shall promptly forward or make
available to the Indemnifying Party copies of notices and communications with a Taxing Authority relating to such Tax Contest. 
 (b) The Indemnifying Party shall not be responsible for any increase in amounts to which the Indemnitee is otherwise entitled to the extent that such increase results 

  

 15 

 
solely from the failure of the Indemnitee to provide timely notice as required pursuant to Section 5.1(a). 
 Section 5.2 Control of Tax Contests. 
 (a) Except as otherwise provided in paragraph (b): 
 (i) Parent may elect to control, and to
have sole discretion in handling, settling or contesting, any Tax Contest relating to any Joint Returns, any Parent Separate Returns, any SpinCo Separate Returns relating to U.S. state and local Income Taxes for taxable periods ending on or before
the Distribution Date (i.e., excluding Straddle Periods), or the Tax treatment of the Transactions, provided that (x) Parent shall act in good faith in connection with its control of any such Tax Contests and (y) SpinCo shall have
the right to participate in and advise on (including, without limitation, the opportunity to review and comment upon Parent’s communications with the Taxing Authority, which comments shall be incorporated upon the consent of Parent, not to be
unreasonably withheld) such items for which SpinCo could be liable under Article II as a result of such Tax Contest; and 
 (ii) If SpinCo disagrees with Parent’s decision to settle a Tax Contest that may reasonably be expected to affect amounts for which it is liable under Article II, it shall have the right to contest its liability to Parent under Article
II notwithstanding the settlement. SpinCo shall provide written notice to Parent of its intention to contest its liability as a result of any settlement (and its irrevocable election described below) prior to the time such settlement is entered
into. Any such contest by SpinCo shall be made under the procedures set forth in Article VI. Under those procedures, SpinCo may irrevocably elect, in its sole discretion, to require the Tax Advisor or the arbitrator to determine either (x) the
amount of a settlement with the relevant Taxing Authority that would most accurately reflect the litigation risk of the relevant issue, or (y) the most likely outcome of the issue if it were litigated without a settlement. In either such case,
SpinCo shall be liable to Parent, or Parent shall be liable to SpinCo, based solely on the determination of the Tax Advisor or the arbitrator as if a settlement or litigation implementing such determination had actually occurred, without regard to
the actual settlement. For the avoidance of doubt, this clause (ii) shall not limit Parent’s ability to settle a Tax Contest. 
 (b) Parent and SpinCo shall jointly control Tax Contests relating to Tax liability arising from the failure of the Distribution to qualify for tax-free treatment under Section 355 of the Code, if SpinCo
potentially would be liable to Parent under Article II as a result of such Tax Contest. Neither party shall have the right to settle any such Tax Contest without the consent of the other party. 
 (c) SpinCo shall have sole control over any Tax Contest relating to the SpinCo Separate Returns (other than U.S. state and local Income
Tax Returns for taxable periods 

  

 16 

 
ending on or before the Distribution Date); provided, however, that if Parent is responsible under this Agreement for any Taxes relating to
such Tax Contest, then: 
 (i) SpinCo may elect to control, and to have sole discretion in handling, settling or contesting
such Tax Contest, provided that (x) SpinCo shall act in good faith in connection with its control of any such Tax Contest and (y) Parent shall have the right to participate in and advise on (including, without limitation, the opportunity
to review and comment upon SpinCo’s communications with the Taxing Authority, which comments shall be incorporated upon the consent of SpinCo, not to be unreasonably withheld) such items for which Parent could be liable under Article II as a
result of such Tax Contest; and 
 (ii) If Parent disagrees with SpinCo’s decision to settle such Tax Contest, it shall
have the right to contest its liability to SpinCo under Article II notwithstanding the settlement. Parent shall provide written notice to SpinCo of its intention to contest its liability as a result of any settlement (and its irrevocable election
described below) prior to the time such settlement is entered into. Any such contest by Parent shall be made under the procedures set forth in Article VI. Under those procedures, Parent may irrevocably elect, in its sole discretion, to require the
Tax Advisor or the arbitrator to determine either (x) the amount of a settlement with the relevant Taxing Authority that would most accurately reflect the litigation risk of the relevant issue, or (y) the most likely outcome of the issue
if it were litigated without a settlement. In either such case, Parent shall be liable to SpinCo, or SpinCo shall be liable to Parent, based solely on the determination of the Tax Advisor or the arbitrator as if a settlement or litigation
implementing such determination had actually occurred, without regard to the actual settlement. For the avoidance of doubt, this clause (ii) shall not limit SpinCo’s ability to settle a Tax Contest. 
 (d) Any out-of-pocket expenses incurred in handling, settling or contesting any Tax Contest shall be borne ratably by the parties based on
their ultimate liability under this Agreement for the Taxes to which the Tax Contest relates; provided, however, that (x) if SpinCo contests a settlement made by Parent as provided in clause (ii) of paragraph (a), Parent
shall bear the costs relating to SpinCo’s contest of such settlement unless Parent substantially prevails in such contest and (y) if Parent contests a settlement made by SpinCo as provided in clause (ii) of paragraph (c), SpinCo shall
bear the costs related to Parent’s contest of such settlement unless SpinCo substantially prevails in such contest. 
 Section 5.3
Indemnification Payments. 
 (a) An Indemnitee shall be entitled to make a claim for payments pursuant to this
Agreement when the Indemnitee determines that it is entitled to such payment and the amount of such payment. The Indemnitee shall provide to the Indemnifying Party notice of such claim within ten (10) days of the date on which it first becomes
so entitled to claim such payment, including a description of such claim and a detailed calculation of the amount of the indemnification payment that is claimed; provided, however, that no 

  

 17 

 
delay on the part of the Indemnitee in notifying the Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then
solely to the extent) the Indemnifying Party is actually and materially prejudiced thereby. Except as provided in paragraph (b), the Indemnifying Party shall make the claimed payment to the Indemnitee within ten (10) days after receiving such
notice, unless the Indemnifying Party reasonably disputes its liability for, or the amount of, such payment. 
 (b) If the
Indemnitee will be obligated to make the payment described in paragraph (a) to a Taxing Authority or other third party (including expenses reimbursable under this Agreement), the Indemnifying Party shall not be obligated to pay the Indemnitee
more than five (5) days before the Indemnitee incurs such expense or makes such payment. If the Indemnitee’s claim for payment arises from a payment that the Indemnifying Party will receive from a third party, such as a refund, the
Indemnifying Party shall not be obligated to pay the Indemnitee until five (5) days after the Indemnifying Party receives such payment. 
 (c) In the case of a claim under Article II where no payment will be made to or received from a Taxing Authority, paragraph (b) shall be applied to the payments that would be made to or from a Taxing Authority if
the SpinCo Group were treated as a standalone group for all taxable periods. 
 Section 5.4 Interest. If either party fails to make an indemnification payment required by this Agreement within ten (10) Business Days after receipt of notice and demand for payment under the terms of this Agreement, such
party also shall be required to pay interest on the amount of such indemnification payment, accruing from the date of notice and demand for payment (or, if later, accruing from the date on which the payment is due under this Agreement) to, but not
including, the date of payment, at (a) prior to the tenth (10th) Business Day following a final determination or agreement of the parties
pursuant to the terms of this Agreement with respect to the amount of the indemnity payment, the Applicable Rate and (b) on or after such tenth (10th) Business Day, the Applicable Rate plus four percent (4%). 
 Section 5.5 Treatment of Payments. The
amount of all indemnification obligations under this Agreement shall be decreased to take into account the Tax Benefits to the Indemnitee of the deductibility or creditability of any indemnified item and shall be increased where necessary so that,
after all the required deductions have been made and Taxes imposed, the Indemnitee receives the net amount it would have been entitled to receive under this Agreement in the absence of such deductions and Taxes. Any payments made to one party by
another party pursuant to this Agreement shall be treated by the parties for all Tax purposes as a distribution by, or capital contribution to, SpinCo, as the case may be, made immediately prior to the Distribution, except to the extent otherwise
required by a Final Determination. 
 Section 5.6 Expenses. Except as otherwise provided herein, each party and its Affiliates
shall bear their own expenses incurred in connection with the preparation of Tax Returns, Tax Contests, and all other matters under this Agreement. 
 Section 5.7 Cooperation. Each member of the Parent Group and the SpinCo Group shall cooperate fully with all reasonable requests from the other party in connection with the 

  

 18 

 
preparation and filing of Tax Returns, Tax Contests, and all other matters covered by this Agreement. 
 (a) Such cooperation shall include: 
 (i) the retention until the expiration of the applicable statute of limitations, and the provision upon request, of Tax Returns, books, records (including information regarding ownership and Tax basis of property),
documentation and other information relating to Tax Returns, including accompanying schedules, related workpapers, and documents relating to rulings or other determinations by Taxing Authorities; 
 (ii) the execution of any document that may be necessary or reasonably helpful in connection with any Tax Contest, the filing of a Tax
Return by a member of the Parent Group or the SpinCo Group, obtaining a tax opinion or private letter ruling, or other matters covered by this Agreement, including certification (provided in such form as may be required by applicable law or
reasonably requested and made to the best of a party’s knowledge) of the accuracy and completeness of the information it has supplied; 
 (iii) the use of the parties’ reasonable best efforts to obtain any documentation that may be necessary or reasonably helpful in connection with any of the foregoing; 
 (iv) the use of the parties’ reasonable best efforts to make the applicable party’s current or former officers, employees,
agents and facilities available on a reasonable and mutually convenient basis in connection with the foregoing matters; and 
 (v) making determinations with respect to actions described in Section 4.2(c) as promptly as practicable including, without limitation, making determinations within 10 days with respect to modifications and amendments of employee stock
purchase agreements or equity compensation plans under Section 4.2(b)(i)(x). 
 (b) If a party fails to comply with any
of its obligations set forth in this Section 5.7 upon reasonable request and notice by the other party, and such failure results in the imposition of additional Taxes, the nonperforming party shall be liable in full for such additional Taxes.

 Section 5.8 Confidentiality. Any information or documents provided under this Agreement shall be kept confidential by the
recipient, except as may otherwise be necessary in connection with the filing of Tax Returns or with any Tax Contest. In addition, if Parent or SpinCo determines that providing such information could be commercially detrimental, violate any law or
agreement or waive any privilege, the parties shall use reasonable best efforts to permit compliance with the obligations under this Agreement in a manner that avoids any such harm or consequence. 
  

 19 

 Section 5.9 Retention of Tax Records. SpinCo may request from Parent and retain copies of
(i) with respect to any Joint Return, all pro forma federal and state Tax Returns, supporting schedules and workpapers related to members of the SpinCo Group, and (ii) any Separate Returns for any SpinCo Group members, including supporting
schedules and workpapers. If either Parent or SpinCo intends to dispose of documentation with respect to any Pre-Distribution Tax Period, including books, records, Tax Returns and all supporting schedules and information relating thereto (after the
expiration of the applicable statute of limitations), of any member of the other Group, or in the case of the SpinCo Group any member included in a Joint Return, they shall provide written notice to the other party describing the documentation to be
disposed of 30 days prior to taking such action. The other party may arrange to take delivery of the documentation described in the notice at its own expense during the succeeding 30 day period. 
 ARTICLE VI 
 Resolution of Disputes

 Any controversy, dispute or claim arising out of, in connection with, or in relation to the interpretation, performance, nonperformance, validity or
breach of this Agreement or otherwise arising out of, or in any way related to this Agreement shall be resolved under dispute resolution procedures similar to those contained in Article V of the Distribution Agreement; provided,
however, that if the dispute is to be referred to non-binding mediation under such procedures, a mediator who qualifies as a Tax Advisor shall be selected, or the parties shall select a Tax Advisor in lieu of selecting a mediator. 

ARTICLE VII 
 Miscellaneous
Provisions 
 Section 7.1 Notice. All payments, notices and other communications hereunder shall be in writing, shall
reference this Agreement and shall be hand delivered or mailed by registered or certified mail (return receipt requested) (and, as a courtesy and not a requirement, shall also be sent by electronic message transmission) to the parties at the
following addresses (or at such other addresses for a party as shall be specified by like notice) and will be deemed given on the date on which such notice is received): 
  

			
	To Parent:	  	
		
		  	Acuity Brands, Inc.
		  	1170 Peachtree Street, N.E. Suite 2400 Atlanta, Georgia 30309
		  	Attention: Barry R. Goldman
		  	Telephone: 404-853-1400
		  	Email: barry.goldman@acuitybrands.com
		
	To SpinCo:	  	

  

 20 

			
		
		 	Zep Inc.
		 	4401 Northside Parkway Suite 700 Atlanta, Georgia 30327
		 	Attention: C. Francis Whitaker, III
		 	Telephone: 404-352-1680
		 	Email: frank.whitaker@acuitysp.com

 Section 7.2 Severability. If any provision of this Agreement is determined to be
invalid, illegal or unenforceable, the remaining provisions of this Agreement will remain in full force, as long as the essential terms and conditions of this Agreement for each party remain valid, binding and enforceable. 
 Section 7.3 Integration; Amendments. Except as expressly stated herein, this Agreement embodies the entire understandings among the parties
with respect to such matters. No promises, covenants or representations of any kind, other than those expressly stated herein, have been made to induce any party to enter into this Agreement. All prior tax sharing agreements among any of the parties
or their respective Affiliates are hereby terminated. This Agreement shall not be modified or terminated except by a writing duly signed by each of the parties hereto, and no waiver of any provisions of this Agreement shall be effective unless in a
writing duly signed by the party sought to be bound. If, and to the extent, the provisions of this Agreement conflict with the Distribution Agreement or any Ancillary Agreement, the provisions of this Agreement shall control. 
 Section 7.4 Construction. The language of this Agreement shall be construed according to its fair meaning and shall not be strictly construed
for or against any party. Notwithstanding the foregoing, the purposes of Article IV are to ensure the Tax-Free Status and, accordingly, the parties agree that the language thereof shall be interpreted in a manner that serves this purpose to the
greatest extent possible. Headings of sections in this Agreement are inserted for convenience only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
 Section 7.5 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but
all of which together shall constitute one and the same. 
 Section 7.6 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF GEORGIA. 
 Section 7.7 Jurisdiction. Without limiting the provisions of Article VI hereof, each of the parties irrevocably submits to the exclusive jurisdiction of (a) the state courts of the State of Georgia, located in the City
of Atlanta, and (b) the United States District Court for the Northern District of Georgia, for the purposes of any suit, action or other proceeding arising out of this Agreement or any transaction contemplated hereby. Each of the parties agrees
to commence any action, suit or proceeding relating hereto either in the United States District Court for the 

  

 21 

 
Northern District of Georgia or if such suit, action or other proceeding may not be brought in such court for jurisdictional reasons, in the state courts of
the State of Georgia, located in the City of Atlanta. Each of the parties irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated
hereby or thereby in (i) the state courts of the State of Georgia, located in the City of Atlanta, or (ii) the United States District Court for the Northern District of Georgia, and hereby further irrevocably and unconditionally waives and
agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. 
 Section 7.8 Waiver of Jury Trial. Each party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any dispute arising out of this Agreement.

 Section 7.9 Successors and Assigns. Neither this Agreement nor any of the rights, interests or obligations under this
Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the parties without the prior written consent of the other party; provided, however, that no such consent shall be required in the event of a merger,
consolidation or sale of either Parent or SpinCo. Subject to the preceding sentence, this Agreement shall be binding on, and shall injure to the benefit of, and be enforceable by, the parties hereto and their respective successors and assigns.

 Section 7.10 Affiliates. Each of the parties hereto shall cause to be performed, and hereby guarantees the performance of, all
actions, agreements and obligations set forth herein to be performed by any Affiliate of such party or by any entity that is contemplated to be an Affiliate of such party on and after the Distribution Date. 
 Section 7.11 Injunctions. Nothing in this Agreement (including Article VI) will prevent any party from seeking injunctive relief as it deems
necessary or appropriate. 
 Section 7.12 Survival. Except with respect to Sections 5.6, 5.7, 5.8 and 5.9, which shall remain in
effect without limitation as to time, the provisions in this Agreement shall be unconditional and absolute and shall remain in effect until the expiration of the statute of limitations for all taxable periods that end before or include
August 31 of the calendar year in which the Distribution occurs and the resolution of all disputes under this Agreement that arose during those periods. 
  

 22 

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

			
	ACUITY BRANDS, INC.
		
	By	 	 /s/ Vernon J. Nagel

	Name:	 	Vernon J. Nagel
	Title:	 	President and Chief Executive Officer
	
	ZEP INC.
		
	By	 	 /s/ John K. Morgan

	Name:	 	John K. Morgan
	Title:	 	President and Chief Executive OfficerExecutive Consultation between First-Citizens Bank and Lewis R. Holding

 Exhibit 10.1 
 STATE OF NORTH CAROLINA 
 COUNTY OF WAKE 
 EXECUTIVE CONSULTATION, 
 SEPARATION FROM SERVICE AND 
 DEATH BENEFIT AGREEMENT 
 THIS
EXECUTIVE CONSULTATION, SEPARATION FROM SERVICE AND DEATH BENEFIT AGREEMENT (“Agreement”) is made and entered into this 17th day of September, 2007, to be effective as of the 1st day of January, 2005, by and between FIRST-CITIZENS
BANK & TRUST COMPANY, a North Carolina banking corporation with its principal office in Raleigh, Wake County, North Carolina (“Company”) and LEWIS R. HOLDING (“Executive”); 
 W I T N E S S E T H 
 WHEREAS,
Executive is an employee of Company who has provided guidance, leadership and direction in the growth, management and development of Company and has learned trade secrets, confidential procedures and information, and technical and sensitive plans of
Company; and 
 WHEREAS, Company desires to limit Executive’s availability to other employers or entities which are in
competition with Company following Executive’s separation from service with Company; and 
 WHEREAS, Company has offered to
Executive a non-competition arrangement and a consultation arrangement together with a death benefit arrangement for Executive’s designated beneficiary or estate, as applicable, and the parties hereto have reached an agreement concerning those
arrangements and other matters contained herein and desire to set forth the terms and conditions thereof. 
 NOW, THEREFORE, for and
in consideration of the mutual promises and undertakings herein set forth, Executive and Company hereby agree as follows: 
 1.
Administration of the Agreement. The Agreement shall be administered by the Board of Directors of the Company or its delegate (the “Administrator”). Subject to the provisions of the Agreement, the Administrator shall have full
and final authority in its discretion 

  

 - 1 - 

 
to take any action with respect to the Agreement including, without limitation, the authority to (i) determine all matters relating to the payments;
(ii) establish, amend and rescind rules and regulations for the administration of the Agreement; and (iii) construe and interpret the Agreement, to interpret rules and regulations for administering the Agreement and to make all other
determinations deemed necessary or advisable for administering the Agreement. Except to the extent otherwise required under Section 409A of the Internal Revenue Code of 1986, as amended (“Code”), the Administrator shall have the
authority, in its sole discretion, to accelerate the date that any Consultation Payments or Separation Payments which were not otherwise vested or earned shall become vested or earned in whole or in part without any obligation to accelerate such
date with respect to any other employee. The Administrator also may in its sole discretion determine that Executive’s rights or payments under the Agreement shall be subject to reduction, cancellation, forfeiture or recoupment due to conduct by
Executive that is determined by the Administrator to be detrimental to the business or reputation of the Company, including, without limitation, upon termination of employment for cause; violation of policies of the Company; or breach of
non-solicitation, noncompetition, confidentiality or other restrictive covenants that apply to the Executive. In addition to action by meeting in accordance with applicable laws, any action of the Administrator with respect to the Agreement may be
taken by a written instrument signed by the Administrator (including, where the Board or a committee serves as the Administrator, by written consent signed by all of the members of the Board, or all of the members of a committee, and any such action
so taken by written consent shall be as fully effective as if it had been taken by a majority of the members at a meeting duly held and called). No individual shall be liable while acting as Administrator for any action or determination made in good
faith with respect to the Agreement, and any such individual shall be entitled to indemnification and reimbursement in the manner provided in the Company’s certificate of incorporation and bylaws and/or under applicable law. 
 2. Consultation Payments. Following Executive’s separation from service with Company on or after his Vesting Date (as defined in
Section 7), Company shall pay to Executive the sum of NINE THOUSAND EIGHT HUNDRED SEVENTY-TWO and 17/100 Dollars ($9,872.17) per month, beginning six months and one week after Executive’s date of separation for a period of ten
(10) years, or until Executive’s death, whichever first occurs (“Consultation Payments”). If Executive should die during the ten-year period during which Consultation Payments are being made under this Paragraph 2, then those
payments shall terminate. 
  

 - 2 - 

 The monthly Consultation Payments shall be paid for and in consideration of Executive’s support,
sponsorship, advisory and other services provided to Company (“Consultation Services”), such sum to be payable to Executive whether or not Executive’s Consultation Services are utilized in said month by Company. Except as set forth
below, Consultation Payments hereunder shall be payable each month without deductions and Executive agrees to be solely responsible for the payment of all income and other taxes out of said funds and all Social Security, self-employment and any
other taxes or assessments, if any, applicable on said compensation. 
 For and in consideration of said monthly Consultation Payments to
Executive, Executive will provide Consultation Services as an independent contractor to Company, as and when Company may request, which services may be provided with respect to all phases of Company’s business and particularly those phases in
which Executive has particular expertise and knowledge. Executive’s services shall be limited to those of an independent contractor, shall not be on a day-to-day regularly scheduled operational basis and shall be provided only when Executive is
reasonably available and willing, which willingness will not be unreasonably withheld. 
 Effective as of Executive’s date of
separation, Executive and Company agree that Executive shall be, under the terms of this Agreement, an independent contractor, and Executive agrees that Executive’s rights and privileges and obligations are only as provided in this Agreement as
to matters covered herein. Notwithstanding the foregoing, if Company determines that the Consultation Payments are compensation for other than payments for Consultation Services, and such payments shall be subject to any and all applicable
withholding, Social Security, employment, income and other taxes or assessments, if any, under applicable tax law, the said payments shall be subject to the required withholdings. 
 3. Separation Payments. Following Executive’s separation from service with Company on or after his Vesting Date (as defined in
Section 7), Company shall pay to Executive the sum of TWENTY-NINE SIX HUNDRED SIXTEEN and 50/100 Dollars ($29,616.50) per month, beginning six months and one week after Executive’s date of separation for a period of ten (10) years, or
until Executive’s death, whichever first occurs (the “Separation 

  

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Payments”). Such payments shall be subject to any and all applicable withholding, Social Security, employment, income and other taxes or assessments, if
any, under the applicable tax law. If Executive should die during the ten-year period during which payments are being made under this Paragraph 3, then those payments shall terminate and future payments, if any, shall be made to Executive’s
designated beneficiary(ies) or Executive’s estate in accordance with the provisions of Paragraph 4 of this Agreement. 
 4.
Continuation of Payments. Following Executive’s death during the original ten-year period of payments, under Paragraph 3 above, the sum of THIRTY-NINE FOUR HUNDRED EIGHTY-EIGHT and 67/100 Dollars ($39,488.67) per month shall be paid
to such individual or individuals as Executive shall have designated in writing as his beneficiary(ies) as provided in Paragraph 13 below or, in the absence of such designation, to Executive’s estate, as applicable, beginning the first calendar
month following the date of Executive’s death and continuing thereafter until the expiration of said original ten-year period. Once the monthly payments have begun to Executive, whether paid by Company or as otherwise provided herein, the
maximum payment period under this Agreement shall be ten (10) years. 
 5. Covenant Not To Compete. For and in
consideration of the monthly payments described in Paragraphs 2 and 3, Executive agrees not to become an officer or employee of, provide any consultation to, nor participate in any manner with, any other entity of any type or description involved in
any major element of business which Company is performing at the time of Executive’s separation from service with the Company, nor will Executive perform or seek to perform any consultation or other type of work or service with any other firm,
person or entity, directly or indirectly, in any such business which competes with Company, whether done directly or indirectly, in ownership, consultation, employment or otherwise. Executive agrees not to reveal to outside sources, without the
consent of Company, any matters, the revealing of which could, in any manner, adversely affect or disclose Company’s business or any part thereof, unless required by law to do so. This Covenant Not To Compete by Executive is limited to the
geographic area consisting of each county or like jurisdictional entity in which either Company or any banking or investment entity owned directly or indirectly by the parent of Company shall maintain a banking or other business office at the time
of Executive’s separation from service, shall exist for and during the term of all payments to be made under Paragraphs 2 and 3, whether made directly by Company or as otherwise provided herein, and shall not prevent Executive from purchasing
or acquiring, as an investor only, a financial interest of less than 5% in a business or other entity which is in competition with Company. 
  

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 Executive acknowledges that the remedy at law for breach of Executive’s Covenant Not To Compete will
be inadequate and that Company shall be entitled to injunctive relief as to any violation thereof; however, nothing herein shall be construed as prohibiting Company from pursuing any other remedies available to it, in addition to injunctive relief,
whether at law or in equity, including the recovery of damages. In the event Executive shall breach any condition of Executive’s Covenant Not To Compete, then Executive’s right to any of the payments becoming due under Paragraphs 2 and 3
of this Agreement after the date of such breach shall be forever forfeited and the right of Executive’s designated beneficiary(ies) or Executive’s estate to any payments under this Agreement shall likewise be forever forfeited. This
forfeiture is in addition to and not in lieu of any of the above-described remedies of Company and shall be in addition to any injunctive or other relief as described herein. Executive further acknowledges that any breach of Executive’s
Covenant Not To Compete shall be deemed a material breach of this Agreement. 
 6. Death Benefits. In the event Executive dies
while employed by Company or within six months and one week after Executive’s date of separation from service with Company due to retirement, Company will pay the sum of THIRTY-NINE FOUR HUNDRED EIGHTY-EIGHT and 67/100 Dollars ($39,488.67) per
month for a period of ten (10) years, to such individual or individuals as Executive shall have designated in writing as his beneficiary(ies) as provided in Paragraph 13 below or, in the absence of such designation, to Executive’s estate,
as applicable. The first payment shall be made not later than two months following Executive’s death. 
 7. Forfeiture of Benefits. This Agreement is subject to termination by Company at any time and without stated cause prior to the 1st day of January, 2011 or such earlier date as the Executive and Company may mutually agree (the “Vesting Date”). In the event Company shall terminate this Agreement prior to the Vesting Date, Executive shall
forfeit all rights to receive any payment provided for herein. Likewise, in the event Executive’s employment is terminated prior to his Vesting Date, either voluntarily or involuntarily, for reasons other than his death, Executive shall forfeit
all rights to receive any payment provided for herein. Executive acknowledges and agrees that, prior to the earlier of his death or Vesting Date, nothing contained herein shall be construed as conferring upon Executive any vested benefits or any
vested rights to receive any payment provided for herein. 
  

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 8. Claims Procedure. Any claim for benefits under this Agreement shall be made in writing
to Company. If any claim for benefits under this Agreement is wholly or partially denied, notice of the decision shall be furnished to the claimant within a reasonable period of time, not to exceed 90 days after receipt of the claim by Company,
unless special circumstances require an extension of time for processing the claim. If such an extension of time is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-day period.
In no event shall such extension exceed the period of 90 days from the end of such initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date on which the administrator expects to render
a decision. 
 Company shall provide every claimant who is denied a claim for benefits written notice setting forth, in a manner calculated
to be understood by the claimant, the following: (i) specific reasons for the denial; (ii) specific reference to pertinent provisions upon which the denial is based; (iii) a description of any additional material or information
necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and (iv) an explanation of the Agreement’s claims review procedure as set forth below. 
 The claimant may appeal the denial of his claim to Company for a full and fair review. A claimant (or his duly authorized representative) may request a
review by filing a written application for review with the Administrator at any time within 60 days after receipt by the claimant of written notice of the denial of his claim. The claimant or his duly authorized representative may request, upon
written application to Company, to review pertinent documents, and submit issues and comments in writing. 
 The decision on review shall be
made by the Administrator, who may, in its or his/her discretion, hold a hearing on the denied claim; the Administrator shall make this decision promptly, and not later than 60 days after Company receives the request for review, unless special
circumstances require extension of time for processing, in which case a decision shall be rendered as soon as possible, but not later than 120 days after receipt of the request for review. If such an extension of time for review is required, written
notice of the extension (including the 

  

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special circumstances requiring the extension of time) shall be furnished to the claimant prior to the commencement of the extension. In the event that the
decision on review is not furnished within the time period set forth in this paragraph, the claim shall be deemed denied on review. 
 The
decision on review shall be in writing and shall include reasons for the decision, written in a manner calculated to be understood by the claimant, and specific references to the pertinent provisions in the relevant documents on which the decision
is based. 
 9. Assignment of Rights; Spendthrift Clause. Neither Executive nor Executive’s estate, or any designated
beneficiary shall have any right to sell, assign, transfer or otherwise convey the right to receive any payment hereunder. To the extent permitted by law, no benefits payable under this Agreement shall be subject to the claim of any creditor of
Executive or Executive’s estate or any designated beneficiary, or to any legal process by any creditor of any such person. 
 10.
Unfunded Plan. Executive and Company do not intend that the amounts payable hereunder be held by Company in trust or as a segregated fund for Executive or any other person entitled to payments hereunder. The benefits provided under this
Agreement shall be payable solely from the general assets of Company, and neither Executive nor any other person entitled to payments hereunder shall have any interest in any assets of Company by virtue of this Agreement. Company’s obligation
under this Agreement shall be merely that of an unfunded and unsecured promise of Company to pay money in the future. To the extent that this Agreement may be deemed to be a “pension plan,” Executive and Company intend that it be unfunded
for federal income tax purposes, as well as for Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). 
 11. Payments and Funding. Any payments under this Agreement shall be independent of, and in addition to, those under any other plan, program or agreement which may be in effect between the parties hereto, or any other
compensation payable to Executive or Executive’s designee by Company. This Agreement shall not be construed as a contract of employment nor does it restrict the right of Company to discharge Executive at will or the right of Executive to
terminate said Executive’s employment at will. 
 Company may, in its sole discretion, purchase an insurance policy on the life of
Executive to fund or assist in the funding of this Agreement. Executive agrees to promptly supply to Company and its selected or prospective insurance carrier, upon request, any and all 

  

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information requested, in order to enable the insurance carrier to evaluate the risks involved, in providing the insurance requested by Company. Any and all
rights to any and all benefits under such insurance policy on the life of Executive shall be solely the property of Company and all proceeds of such policy shall be payable by the insurer solely to Company, as owner of such policy. Executive
specifically waives any rights in any insurance policy on Executive’s life owned by Company pursuant to this Agreement. Such policy shall not serve in any way as security to Executive for Company’s performance under this Agreement.
The rights accruing to Executive or any designee hereunder shall be solely those of an unsecured creditor of Company and shall be subordinate to the rights of the depositors of Company. 
 12. Survivor Annuities and QDROs. Nothing contained in this Agreement is intended to give nor shall give any spouse or former spouse of
Executive nor any other person any right to benefits under this Agreement by virtue of sections 401(a)(11) and 417 of the Code (relating to qualified preretirement survivor annuities and qualified joint and survivor annuities) or Code Sections
401(a)(13)(B) and 414(p) (relating to qualified domestic relations orders). 
 13. Designation of Beneficiary(ies). In order to
designate one or more beneficiaries as described in Paragraph 4 or 6 above, Executive shall file a written designation with Company in the form attached as Exhibit A to this Agreement. Each such designation shall specify, by name(s), the person(s)
to whom any amounts payable under this Agreement shall be paid following Executive’s death. From time to time, Executive may change or revoke a beneficiary designation without the consent of the beneficiary(ies) by filing a new beneficiary
designation form with Company, and the filing of a new designation form automatically shall revoke any and all designation forms previously filed with Company. A beneficiary designation form not properly filed with Company prior to Executive’s
death shall be of no force or effect under this Agreement. 
 Subject to reasonable restrictions imposed by Company and to Company’s
right to refuse to accept such a designation for reasons satisfactory to it, Executive may designate more than one beneficiary and/or alternative or contingent beneficiaries, in which case Executive’s designation form shall specify the relative
shares and terms and conditions upon which amounts shall be paid to such multiple or alternative or contingent beneficiaries. 
 If, at the
time of Executive’s death, (i) no beneficiary designation is on file with Company, (ii) no beneficiary designated by Executive has survived Executive, or (iii) there are 

  

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other circumstances not covered by the beneficiary designation form on file with Company, then Executive’s estate conclusively shall be deemed to be the
beneficiary designated to receive any amounts then remaining payable to Executive under this Agreement. 
 In making all determinations
regarding Executive’s beneficiary, the latest designation form filed by Executive with Company shall control, and all changes in circumstances that occur after the filing of that designation shall be ignored. For example, if Executive’s
spouse is designated as beneficiary in the latest designation filed by Executive but, thereafter, is divorced from Executive, such designation shall remain valid until and unless Executive files a later beneficiary designation form with Company
naming a different beneficiary. 
 Any check for a payment under this Agreement that is issued on or before the date of Executive’s
death shall remain payable to Executive and shall be handled accordingly, whether or not the check actually is received by Executive prior to death. Any check issued after the date of Executive’s death shall be the property of Executive’s
beneficiary(ies) determined in accordance with this Paragraph 13. 
 14. Suicide. In the event Executive commits suicide within
two years of the date of this Agreement, all payments provided for herein to be paid to Executive’s designated beneficiary or Executive’s estate shall be forfeited. 
 15. Binding Effect. This Agreement shall be binding upon Executive, his heirs, personal representatives and assigns, and upon Company, its
successors and assigns. 
 16. Amendment of Agreement. This Agreement may not be altered, amended or revoked except by a
written agreement signed by Company and Executive; provided, however, that if Company determines to its reasonable satisfaction that an alteration or amendment of the Agreement is necessary or advisable in order for the Agreement to comply with the
Code, the Treasury Regulations, or any other applicable tax authority (collectively “Tax Law”), then, upon written notice to Executive, Company may unilaterally amend the Agreement in such manner and to such an extent as it reasonably
considers necessary or advisable in order to comply with the Tax Law. Nothing in this Paragraph 16 shall be deemed to limit Company’s right to terminate this Agreement at any time and without stated cause as provided in Paragraph 7. 

 

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 17. Compliance with Code Section 409A. Notwithstanding any other provision in the
Agreement to the contrary, if and to the extent that Code Section 409A is deemed to apply to the Agreement, it is the general intention of Company that the Agreement shall, to the extent practicable, comply with Code Section 409A, and the
Agreement shall, to the extent practicable, be construed in accordance therewith. Without in any way limiting the effect of the foregoing, in the event that Code Section 409A requires that any special terms, provisions or conditions be included
in the Agreement, then such terms, provisions and conditions shall, to the extent practicable, be deemed to be made a part of the Agreement, as applicable. Further, in the event that the Agreement shall be deemed not to comply with Code
Section 409A, then neither the Company, the Administrator nor its or their designees or agents shall be liable to any Executive or other person for actions, decisions or determinations made in good faith. 
 18. Interpretation. Where appropriate in this Agreement, words used in the singular shall include the plural and words used in the
masculine shall include the feminine. 
 19. Invalid Provision. The invalidity or unenforceability of any particular provision
of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were not contained herein. 
 20. Governing Law. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of North
Carolina. 
 21. Entire Agreement. This Agreement contains the entire agreement and understanding of the parties with respect
to the subject matter hereof and supersedes and replaces any and all prior agreements and understandings, whether oral or written, with respect to the subject matter hereof. 
  

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 IN TESTIMONY WHEREOF, Company has caused this Agreement to be executed in its corporate name by
its Executive Vice President, and attested by its Assistant Secretary, all by the authority of its Board of Directors duly given, and Executive has hereunto set his hand and adopted as his seal the typewritten word “SEAL” appearing beside
his name, as of the day and year first above written. 
  

							
		 		 	FIRST-CITIZENS BANK & TRUST COMPANY
				
		 		 	By:	 	 /s/ LOU J. DAVIS

			
	ATTEST:	 		 	
			
	 /s/ LEE B. HARDEMAN
	 		 	
	Assistant Secretary	 		 	
		 		 	 /s/ LEWIS R. HOLDING

		 		 	Executive

  

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