Document:

Exhibit

Exhibit 10.2

FORM OF
TRANSITION SERVICES AGREEMENT
BY AND BETWEEN
W. R. GRACE & CO.—CONN.
AND
GCP APPLIED TECHNOLOGIES INC.
DATED AS OF [●], 2016

TABLE OF CONTENTS
Page
Article I DEFINITIONS    1
Section 1.01.Definitions    1
Article II SERVICES    5
Section 2.01.Services    5
Section 2.02.Performance of Services    5
Section 2.03.Charges for Services    7
Section 2.04.Reimbursement for Out-of-Pocket Costs and Expenses    7
Section 2.05.Changes in the Performance of Services    7
Section 2.06.Transitional Nature of Services    8
Section 2.07.Subcontracting    8
Article III OTHER ARRANGEMENTS    8
Section 3.01.Access    8
Article IV BILLING; TAXES    9
Section 4.01.Procedure    9
Section 4.02.Late Payments    9
Section 4.03.Taxes    10
Section 4.04.No Set-Off    10
Article V TERM AND TERMINATION    10
Section 5.01.Term    10
Section 5.02.Early Termination    10
Section 5.03.Interdependencies    11
Section 5.04.Effect of Termination    11
Section 5.05.Information Transmission    12
Article VI CONFIDENTIALITY; PROTECTIVE ARRANGEMENTS    12
Section 6.01.Grace Conn and GCP Obligations    12
Section 6.02.No Release; Return or Destruction    12
Section 6.03.Privacy and Data Protection Laws    13
Section 6.04.Protective Arrangements    13
Article VII LIMITED LIABILITY AND INDEMNIFICATION    13
Section 7.01.Limitations on Liability    13

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Section 7.02.Obligation to Re-Perform; Liabilities    14
Section 7.03.Third-Party Claims    14
Section 7.04.Provider Indemnity    14
Section 7.05.Indemnification Procedures    15
Article VIII MISCELLANEOUS    15
Section 8.01.Mutual Cooperation    15
Section 8.02.Further Assurances    15
Section 8.03.Audit Assistance    15
Section 8.04.Title to Intellectual Property    15
Section 8.05.Independent Contractors    16
Section 8.06.Counterparts; Entire Agreement; Corporate Power    16
Section 8.07.Governing Law    17
Section 8.08.Assignability    17
Section 8.09.Third-Party Beneficiaries    17
Section 8.10.Notices    18
Section 8.11.Severability    18
Section 8.12.Force Majeure    19
Section 8.13.Headings    19
Section 8.14.Survival of Covenants    19
Section 8.15.Waivers of Default    19
Section 8.16.Dispute Resolution    19
Section 8.17.Specific Performance    20
Section 8.18.Amendments    20
Section 8.19.Interpretation    20
Section 8.20.Mutual Drafting    21

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TRANSITION SERVICES AGREEMENT
This TRANSITION SERVICES AGREEMENT, dated as of [●], 2016 (this “Agreement”), is by and between W. R. Grace & Co.—Conn., a Connecticut corporation (“Grace Conn”), and GCP Applied Technologies Inc. a Delaware corporation (“GCP”).
R E C I T A L S:
WHEREAS, the board of directors (the “Grace Board”) of W. R. Grace & Co., a Delaware corporation (“Grace”), has determined that it is in the best interests of Grace and its stockholders to create a new publicly traded company that will operate the GCP Business;
WHEREAS, in furtherance of the foregoing, the Grace Board has determined that it is appropriate and desirable to separate the GCP Business from the Grace Business (the “Separation”) and, following the Separation, make a distribution, on a pro rata basis, to holders of Grace Shares on the Record Date of all the outstanding GCP Shares (the “Distribution”);
WHEREAS, in order to effectuate the Separation and the Distribution, Grace, GCP and Grace Conn, have entered into a Separation and Distribution Agreement, dated as of [●], 2015 (the “Separation and Distribution Agreement”); and
WHEREAS, in order to facilitate and provide for an orderly transition in connection with the Separation and the Distribution, the Parties desire to enter into this Agreement to set forth the terms and conditions pursuant to which each of the Parties shall provide Services to the other Party for a transitional period.
NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

Article I 
DEFINITIONS
Section 1.01.    Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:
“Action” shall mean any demand, action, claim, dispute, suit, countersuit, arbitration, inquiry, subpoena, proceeding or investigation of any nature (whether criminal, civil, legislative, administrative, regulatory, prosecutorial or otherwise) by or before any federal, state, local, foreign or international Governmental Authority or any arbitration or mediation tribunal.
“Affiliate” has the meaning set forth in the Separation and Distribution Agreement.
“Agreement” has the meaning set forth in the Preamble.
“Ancillary Agreements” has the meaning set forth in the Separation and Distribution Agreement.
“Charge” and “Charges” have the meaning set forth in Section 2.03.
“Confidential Information” means all Information that is either confidential or proprietary disclosed pursuant to a Service.  For the avoidance of doubt, Confidential Information hereunder shall not apply to Information disclosed under the Cross License Agreement.  
“Cross License Agreement” shall have the meaning set forth in the Separation and Distribution Agreement.
“Dispute” has the meaning set forth in Section 8.16(a).
“Distribution” has the meaning set forth in the Recitals. 
“Distribution Date” shall mean the date of the consummation of the Distribution, which shall be determined by the Grace Board in its sole and absolute discretion.
“Effective Time” shall mean 11:59 p.m., New York City time, on the Distribution Date.
“Force Majeure” shall mean, with respect to a Party, an event or circumstance beyond the reasonable control of such Party (or any Person acting on its behalf) which (a) does not arise or result from the fault or negligence of such Party (or any Person acting on its behalf) and (b) by its nature would not reasonably have been foreseen by such Party (or such Person), or, if it would reasonably have been foreseen, was unavoidable, and includes acts of God, acts of civil or military authority, embargoes, epidemics, war, riots, insurrections, fires, explosions, earthquakes, floods, unusually severe weather conditions, labor problems or unavailability of parts, or, in the case of computer systems, any failure in electrical or air conditioning equipment.  Notwithstanding the foregoing, neither of the following shall be deemed an event of Force Majeure:  (i) the receipt by a Party of an unsolicited takeover offer or other acquisition proposal, even if unforeseen or 

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unavoidable, and such Party’s response thereto and (ii) the inability to obtain sufficient funds needed for the performance of a Party’s obligations hereunder.
“GCP” has the meaning set forth in the Preamble. 
“GCP Business” has the meaning set forth in the Separation and Distribution Agreement. 
“GCP Shares” shall mean the shares of common stock, par value $0.01 per share, of GCP.
“Governmental Authority” shall mean any nation or government, any state, municipality or other political subdivision thereof, and any entity, body, agency, commission, department, board, bureau, court, tribunal or other instrumentality, whether federal, state, local, domestic, foreign or multinational, exercising executive, legislative, judicial, regulatory, administrative or other similar functions of, or pertaining to, government and any executive official thereof.
“Grace” has the meaning set forth in the Recitals. 
“Grace Board” has the meaning set forth in the Recitals.
“Grace Business” has the meaning set forth in the Separation and Distribution Agreement.
“Grace Conn” has the meaning set forth in the Preamble.
“Grace Shares” shall mean the common shares of Grace.
“Information” shall mean information, whether or not patentable or copyrightable, in written, oral, electronic or other tangible or intangible forms, stored in any medium, including studies, reports, records, books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other software, marketing plans, customer names, communications by or to attorneys (including attorney-client privileged communications), memos and other materials prepared by attorneys or under their direction (including attorney work product), and other technical, financial, employee or business information or data.
“Interest Payment” has the meaning set forth in Section 4.02.
“Law” shall mean any national, supranational, federal, state, provincial, local or similar law (including common law), statute, code, order, ordinance, rule, regulation, treaty (including any income tax treaty), license, permit, authorization, approval, consent, decree, injunction, binding judicial or administrative interpretation or other requirement, in each case, enacted, promulgated, issued or entered by a Governmental Authority.

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“Level of Service” has the meaning set forth in Section 2.02(a).
“Liabilities” shall mean all debts, guarantees, assurances, commitments, liabilities, responsibilities, Losses, remediation, deficiencies, damages, fines, penalties, settlements, sanctions, costs, expenses, interest and obligations of any nature or kind, whether accrued or fixed, absolute or contingent, matured or unmatured, accrued or not accrued, asserted or unasserted, liquidated or unliquidated, foreseen or unforeseen, known or unknown, reserved or unreserved, or determined or determinable, including those arising under any Law, claim (including any Third-Party Claim), demand, Action, or order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority or arbitration tribunal, and those arising under any contract, agreement, obligation, indenture, instrument, lease, promise, arrangement, release, warranty, commitment or undertaking, or any fines, damages or equitable relief that is imposed, in each case, including all costs and expenses relating thereto.
“Losses” shall mean actual losses (including any diminution in value), costs, damages, penalties and expenses (including legal and accounting fees and expenses and costs of investigation and litigation), whether or not involving a Third-Party Claim.
“Minimum Service Period” means the period commencing on the Distribution Date and ending six (6) months after the Distribution Date.
“Parties” means the parties to this Agreement.
“Person” shall mean an individual, a general or limited partnership, a corporation, a trust, a joint venture, an unincorporated organization, a limited liability entity, any other entity and any Governmental Authority.
“Provider” means, with respect to any Service, the Party identified on Schedule 1 hereto as the “Provider” of such Service.
“Provider Indemnitees” has the meaning set forth in Section 7.03.
“Recipient” means, with respect to any Service, the Party receiving such Service hereunder.
“Recipient Indemnitees” has the meaning set forth in Section 7.04.
“Record Date” shall mean the close of business on the date to be determined by the Grace Board as the record date for determining holders of Grace Shares entitled to receive GCP Shares pursuant to the Distribution.
“Representatives” shall mean, with respect to any Person, any of such Person’s directors, officers, employees, agents, consultants, advisors, accountants, attorneys or other representatives.
“Separation” has the meaning set forth in the Recitals. 

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“Separation and Distribution Agreement” has the meaning set forth in the Recitals.
“Service Baseline Period” has the meaning set forth in Section 2.02(a).
“Service Period” means, with respect to any Service, the period commencing on the Distribution Date and ending on the earlier of (a) the date that a Party terminates the provision of such Service pursuant to Section 5.02 and (b) the end of the period set forth on Schedule 1.
“Services” has the meaning set forth in Section 2.01.
“Subsidiary” shall mean, with respect to any Person, any corporation, limited liability company, joint venture or partnership of which such Person (a) beneficially owns, either directly or indirectly, more than fifty percent (50%) of (i) the total combined voting power of all classes of voting securities, (ii) the total combined equity interests or (iii) the capital or profit interests, in the case of a partnership, or (b) otherwise has the power to vote, either directly or indirectly, sufficient securities to elect a majority of the board of directors or similar governing body.
“Tax” has the meaning set forth in the Tax Sharing Agreement.
“Tax Sharing Agreement” shall mean the Tax Sharing Agreement to be entered into by and between Grace, GCP, and Grace Conn, and/or their respective Subsidiaries in connection with the Separation, the Distribution and the other transactions contemplated by the Separation and Distribution Agreement.
“Taxing Authority” has the meaning set forth in the Tax Sharing Agreement.
“Termination Charges” shall mean, with respect to the termination of any Service pursuant to Section 5.02(a)(i), the sum of (a) any and all costs, fees and expenses (other than any severance or retention costs) payable by the Provider of such Service to a Third Party principally because of the early termination of such Service; provided, however, that the Provider shall use commercially reasonable efforts to minimize any costs, fees or expenses payable to any Third Party in connection with such early termination of such Service; and (b) any additional severance and retention costs, if any, because of the early termination of such Service that the Provider of such terminated Service incurs to employees who had been retained primarily to provide such terminated Service (it being agreed that the costs set forth in this clause (b) shall only be the amount, if any, in excess of the severance and retention costs that such Provider would have paid to such employees if the Service had been provided for the full period during which such Service would have been provided hereunder but for such early termination).
“Third Party” shall mean any Person other than the Parties or any of their Affiliates.
“Third-Party Claim” shall mean any Action commenced by any Third Party against any Party or any of its Affiliates.
ARTICLE II     
SERVICES

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Section 2.01.    Services.  Commencing as of the Effective Time, the Provider agrees to provide, or to cause one or more of its Subsidiaries to provide, to the Recipient, or any Subsidiary of the Recipient, the applicable services (the “Services”) set forth on Schedule 1 hereto.  
Section 2.02.    Performance of Services.
(a)    The Provider shall perform, or shall cause one or more of its Subsidiaries (directly, through one or more of its Subsidiaries or through a third-party service provider, as Provider may determine in its sole discretion) in a manner that is based on its past practice and that is substantially similar in all material respects to the analogous services provided by or on behalf of Grace Conn or any of its Subsidiaries to Grace Conn or its applicable functional group or Subsidiary (a “Level of Service”) during calendar year 2015 (the “Service Baseline Period”).
(b)    Nothing in this Agreement shall require the Provider to perform or cause to be performed any Service to the extent that the manner of such performance would constitute a violation of any applicable Law or any contract or agreement with a Third Party existing as of the Effective Time.  If the Provider is or becomes aware of any potential violation on the part of the Provider, the Provider shall use commercially reasonable efforts to promptly advise the Recipient of such potential violation, and the Provider and the Recipient will mutually seek an alternative that addresses such potential violation.  The Parties agree to cooperate in good faith and use commercially reasonable efforts to obtain any necessary Third Party consents required under any existing contract or agreement with a Third Party to allow the Provider to perform, or cause to be performed, all Services to be provided by the Provider hereunder in accordance with the standards set forth in this Section 2.02.  Unless otherwise agreed in writing by the Parties, all reasonable out-of-pocket costs and expenses (if any) incurred by any Party or any of its Subsidiaries in connection with obtaining any such Third Party consent that is required to allow the Provider to perform or cause to be performed such Services shall be divided proportionately between the Provider and the Recipient in accordance with such Parties’ respective utilization of such Services at such time.  If, with respect to a Service, the Parties, despite the use of such commercially reasonable efforts, are unable to obtain a required Third Party consent, or the performance of such Service by the Provider would constitute a violation of any applicable Law, the Provider shall have no obligation whatsoever to perform or cause to be performed such Service.
(c)    The Provider shall not be obligated to perform or to cause to be performed any Service in a manner that is materially more burdensome (with respect to service quality or quantity) than the applicable Level of Service during the Service Baseline Period.  If the Recipient requests that the Provider perform or cause to be performed any Service that exceeds the Level of Service during the Service Baseline Period (which request shall be given by providing to the Provider a Change Request Notice in the form attached hereto as Exhibit A), then the Parties shall engage in good faith discussions and negotiations to determine the feasibility of and the appropriate terms and conditions relating to, the performance of such higher-level Service.  If the Parties determine that the Provider shall provide the requested higher Level of Service, then such higher Level of Service shall be documented in a written amendment to this Agreement signed by the Parties.  Each amended section of Schedule 1 hereto, as agreed to in writing by the Parties, shall be deemed part of this Agreement as of the date of such written amendment and the Level of Service increases set 

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forth in such written amendment shall be deemed a part of the “Services” provided under this Agreement, in each case subject to the terms and conditions of this Agreement.
(d)    (i) Neither the Provider nor any of its Subsidiaries shall be required to perform or to cause to be performed any of the Services for the benefit of any Person other than the Recipient and its Subsidiaries, and (ii) EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 2.02 OR SECTION 7.04, EACH PARTY ACKNOWLEDGES AND AGREES THAT ALL SERVICES ARE PROVIDED ON AN “AS-IS” BASIS, THAT THE RECIPIENT ASSUMES ALL RISK AND LIABILITY ARISING FROM OR RELATING TO ITS USE OF AND RELIANCE UPON THE SERVICES, AND THAT THE PROVIDER MAKES NO OTHER REPRESENTATIONS AND GRANTS NO OTHER WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, WITH RESPECT TO THE SERVICES.  EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE OR PURPOSE OR THE NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.
(e)    Each Party shall be responsible for its own compliance with any and all Laws applicable to its performance under this Agreement.  No Party shall take any action knowingly in violation of any such applicable Law that results in Liability being imposed on the other Party.
Section 2.03.    Charges for Services.  Subject to the specific terms of this Agreement, the compensation to be received by Provider for each Service provided hereunder will be the fees or charges set forth in or calculated in the manner set forth in Schedule 1 (or any sub-schedule) relating to the particular Service, subject only to any escalation, reduction or other modifications provided for in Schedule 1.  In consideration for the provision of a Service, Recipient or its Subsidiaries receiving such Service shall pay to the Provider (or its designee) in the manner set forth in Article IV below, the fee or charge for such Service as set forth in or calculated in the manner set forth in Schedule 1 (each, a “Charge” and, collectively, the “Charges”).  The Provider shall provide the Recipient with an invoice for Charges along with reasonable documentation (and any additional documentation reasonably requested by the Recipient, promptly following such request, to the extent that such documentation is in the Provider’s or its Subsidiaries’ possession or control) to support the calculation of such Charges.
Section 2.04.    Reimbursement for Out-of-Pocket Costs and Expenses.  The Recipient shall reimburse the Provider for reasonable out-of-pocket costs and expenses reasonably incurred by the Provider or any of its Subsidiaries in connection with providing the Services (including reasonable travel-related expenses) to the extent that such costs and expenses are not included in the Charges for such Services; provided, however, that any such cost or expense in excess of five hundred dollars ($500.00), in the aggregate, that is not consistent with historical practice between the Parties for any Service (including business travel and related expenses) shall require advance written approval of the Recipient.  Any authorized travel-related expenses incurred in performing the Services shall be incurred and charged to the Recipient in accordance with the Provider’s then-applicable business travel policies.

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Section 2.05.    Changes in the Performance of Services.  Subject to the performance standards for Services set forth in Sections 2.02(a), 2.02(b) and 2.02(c), the Provider may make changes from time to time in the manner of performing the Services if the Provider is making similar changes in performing analogous services for itself and if the Provider furnishes to the Recipient reasonable prior written notice (in content and timing) of such changes.  No such change shall materially adversely affect the timeliness or quality of, or the Charges for, the applicable Service.  If any such change by the Provider reasonably requires the Recipient to incur an increase in costs and expenses of at least five percent (5%), in the aggregate, in order to continue to receive and utilize the applicable Services in the same manner as the Recipient was receiving and utilizing such Service prior to such change, the Provider shall be required to reimburse the Recipient for all such reasonable increases in costs and expenses.  Upon request, the Recipient shall provide the Provider with reasonable documentation, including any additional documentation reasonably requested by the Provider to the extent such documentation is in the Recipient’s or its Subsidiaries’ possession or control, to support the calculation of such increase in costs and expenses.
Section 2.06.    Transitional Nature of Services.  The Parties acknowledge the transitional nature of the Services and agree to cooperate in good faith and to use commercially reasonable efforts to effectuate a smooth transition of the Services from the Provider to the Recipient (or its designee).
Section 2.07.    Subcontracting.  A Provider may hire or engage one or more Third Parties to perform any or all of its obligations under this Agreement; provided, however, that (a) such Provider shall use the same degree of care (but at least reasonable care) in selecting each such Third Party as it would if such Third Party was being retained to provide similar services to the Provider and (b) such Provider shall in all cases remain primarily responsible for all of its obligations under this Agreement with respect to the scope of the Services, the performance standard for Services set forth in Sections 2.02(a), 2.02(b) and 2.02(c) and the content of the Services provided to the Recipient.  Subject to the confidentiality provisions set forth in Article VI, each Party shall, and shall cause their respective Affiliates to, provide, upon ten (10) Business Days’ prior written notice from the other Party, any Information within such Party’s or its Affiliates’ possession that the requesting Party reasonably requests in connection with any Services being provided to such requesting Party by a Third Party, including any applicable invoices, agreements documenting the arrangements between such Third Party and the Provider and other supporting documentation; provided, further, however, that each Party shall make no more than one such request during any calendar quarter.
ARTICLE III     
OTHER ARRANGEMENTS
Section 3.01.    Access.
(a)    GCP shall, and shall cause its Subsidiaries to, allow Grace Conn and its Subsidiaries and their respective Representatives reasonable access to the facilities of GCP and its Subsidiaries that is necessary for Grace Conn and its Subsidiaries to fulfill their obligations under this Agreement.  In addition to the foregoing right of access, GCP shall, and shall cause its Subsidiaries to, afford Grace Conn, its Subsidiaries and their respective Representatives, upon 

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reasonable advance written notice, reasonable access during normal business hours to the facilities, Information, systems, infrastructure and personnel of GCP and its Subsidiaries as reasonably necessary for Grace Conn to verify the adequacy of internal controls over information technology, reporting of financial data and related processes employed in connection with the Services being provided by GCP or its Subsidiaries, including in connection with verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided that (i) such access shall not unreasonably interfere with any of the business or operations of GCP or any of its Subsidiaries and (ii) in the event that GCP determines that providing such access could be commercially detrimental, violate any applicable Law or agreement or waive any attorney-client privilege, then the Parties shall use commercially reasonable efforts to permit such access in a manner that avoids each such harm and consequence.  Grace Conn agrees that all of its and its Subsidiaries’ employees shall, and that it shall use commercially reasonable efforts to cause its Representatives’ employees to, when on the property of GCP or its Subsidiaries, or when given access to any facilities, Information, systems, infrastructure or personnel of GCP or its Subsidiaries, conform to the policies and procedures of GCP and its Subsidiaries, as applicable, concerning health, safety, conduct and security which are made known or provided to Grace Conn from time to time.  
(b)    Grace Conn shall, and shall cause its Subsidiaries to, allow GCP and its Subsidiaries and their respective Representatives reasonable access to the facilities of Grace Conn and its Subsidiaries that is necessary for GCP and its Subsidiaries to fulfill their obligations under this Agreement.  In addition to the foregoing right of access, Grace Conn shall, and shall cause its Subsidiaries to, afford GCP, its Subsidiaries and their respective Representatives, upon reasonable advance written notice, reasonable access during normal business hours to the facilities, Information, systems, infrastructure and personnel of Grace Conn and its Subsidiaries as reasonably necessary for GCP to verify the adequacy of internal controls over information technology, reporting of financial data and related processes employed in connection with the Services being provided by Grace Conn or its Subsidiaries, including in connection with verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided that (i) such access shall not unreasonably interfere with any of the business or operations of Grace Conn or any of its Subsidiaries and (ii) in the event that Grace Conn determines that providing such access could be commercially detrimental, violate any applicable Law or agreement or waive any attorney-client privilege, then the Parties shall use commercially reasonable efforts to permit such access in a manner that avoids each such harm and consequence.  GCP agrees that all of its and its Subsidiaries’ employees shall, and that it shall use commercially reasonable efforts to cause its Representatives’ employees to, when on the property of Grace Conn or its Subsidiaries, or when given access to any facilities, Information, systems, infrastructure or personnel of Grace Conn or its Subsidiaries, conform to the policies and procedures of Grace Conn and its Subsidiaries, as applicable, concerning health, safety, conduct and security which are made known or provided to GCP from time to time.  
ARTICLE IV     
BILLING; TAXES
Section 4.01.    Procedure.  Charges for the Services shall be charged to and payable by the Recipient.  Amounts payable pursuant to this Agreement shall be paid by wire transfer (or such other method of payment as may be agreed between the Parties from time to time) to the Provider 

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(as directed by the Provider), on a monthly basis in the case of recurring fees, which amounts shall be due within thirty (30) days of the Recipient’s receipt of each such invoice, including reasonable documentation pursuant to Section 2.03.  Except as may otherwise be provided on Schedule 1 (or any sub-subschedule), all amounts due and payable hereunder shall be invoiced and paid in U.S. dollars.
Section 4.02.    Late Payments.  Charges not paid when due pursuant to this Agreement (and any amounts billed or otherwise invoiced or demanded and properly payable that are not paid within fifteen (15) days of the receipt of such bill, invoice or other demand) shall accrue interest at a rate per annum equal to the Prime Rate plus 5% or the maximum rate under applicable Law, whichever is lower (the “Interest Payment”).
Section 4.03.    Taxes.  Without limiting any provisions of this Agreement, the Recipient shall bear any and all Taxes and other similar charges (and any related interest and penalties) imposed on, or payable with respect to, any fees or charges, including any Charges, payable by it pursuant to this Agreement, including all sales, use, value-added, and similar Taxes, but excluding Taxes based on the Provider’s net income.  Notwithstanding anything to the contrary in the previous sentence or elsewhere in this Agreement, the Recipient shall be entitled to withhold from any payments to the Provider any such Taxes that the Recipient is required by applicable Law to withhold and shall pay such Taxes to the applicable Taxing Authority.
Section 4.04.    No Set-Off.  Except as mutually agreed to in writing by the Parties, no Party or any of its Affiliates shall have any right of set-off or other similar rights with respect to (a) any amounts received pursuant to this Agreement or (b) any other amounts claimed to be owed to the other Party or any of its Subsidiaries arising out of this Agreement.  
ARTICLE V     
TERM AND TERMINATION
Section 5.01.    Term.  This Agreement shall commence at the Effective Time and shall terminate upon the earlier to occur of (a) the last date on which either Party is obligated to provide any Service to the other Party in accordance with the terms of this Agreement; (b) the mutual written agreement of the Parties to terminate this Agreement in its entirety; and (c) the date that is the eighteen-month anniversary of the Distribution Date.  Unless otherwise terminated pursuant to Section 5.02, this Agreement shall terminate with respect to each Service as of the close of business on the last day of the Service Period for such Service.  The Parties may, by written consent executed at least ten (10) days prior to the last day of the Service Period for any individual Service, extend the Service Period for such Service on a month-to-month basis for a period not to exceed the eighteen-month anniversary of the Distribution Date.  To the extent that the Provider’s ability to provide a Service is dependent on the continuation of a specified Service, the Provider’s obligation to provide such dependent Service shall terminate automatically with the termination of such supporting Service.

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Section 5.02.    Early Termination.  
(a)    Without prejudice to the Recipient’s rights with respect to Force Majeure, the Recipient may from time to time terminate this Agreement with respect to the entirety of any individual Service but not a portion thereof:
(i)    subsequent to the end of the Minimum Service Period, for any reason or no reason, upon the giving of at least thirty (30) days’ prior written notice to the Provider of such Service; provided, however, that any such termination (x) may only be effective as of the last day of a month and (y) shall be subject to the obligation to pay any applicable Termination Charges pursuant to Section 5.04; or
(ii)    if the Provider of such Service has failed to perform any of its material obligations under this Agreement with respect to such Service, and such failure shall continue to be uncured for a period of at least thirty (30) days after receipt by the Provider of written notice of such failure from the Recipient; provided, however, that any such termination may only be effective as of the last day of a month; and provided, further, that the Recipient shall not be entitled to terminate this Agreement with respect to the applicable Service if, as of the end of such period, there remains a good-faith Dispute between the Parties (undertaken in accordance with the terms of Section 8.16) as to whether the Provider has cured the applicable breach.
(b)    The Provider may terminate this Agreement with respect to any individual Service, but not a portion thereof, at any time upon prior written notice to the Recipient if the Recipient has failed to perform any of its material obligations under this Agreement relating to such Service, including making payment of Charges for such Service when due, and such failure shall continue to be uncured for a period of at least thirty (30) days after receipt by the Recipient of a written notice of such failure from the Provider; provided, however, that any such termination may only be effective as of the last day of a month; and provided, further, that the Provider shall not be entitled to terminate this Agreement with respect to the applicable Service if, as of the end of such period, there remains a good-faith Dispute between the Parties (undertaken in accordance with the terms of Section 8.16) as to whether the Recipient has cured the applicable breach. 
Section 5.03.    Interdependencies.  The Parties acknowledge and agree that (a) there may be interdependencies among the Services being provided under this Agreement; (b) upon the request of either Party, the Parties shall cooperate and act in good faith to determine whether (i) any such interdependencies exist with respect to the particular Service that a Party is seeking to terminate pursuant to Section 5.02 and (ii) in the case of such termination, the Provider’s ability to provide a particular Service in accordance with this Agreement would be materially and adversely affected by such termination of another Service; and (c) in the event that the Parties have determined that such interdependencies exist (and, in the case of such termination that the Provider’s ability to provide a particular Service in accordance with this Agreement would be materially and adversely affected by such termination), the Parties shall negotiate in good faith to amend Schedule 1 hereto with respect to such termination of such impacted Service, which amendment shall be consistent with the terms of comparable Services.

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Section 5.04.    Effect of Termination.  Upon the termination of any Service pursuant to this Agreement, the Provider of the terminated Service shall have no further obligation to provide the terminated Service, and the Recipient of such Service shall have no obligation to pay any future Charges relating to such Service; provided, however, that the Recipient shall remain obligated to the Provider for (a) the Charges owed and payable in respect of Services provided prior to the effective date of termination for such Service, and (b) any applicable Termination Charges (which, in the case of each of clauses (a) and (b), shall be payable only in the event that the Recipient terminates any Service pursuant to Section 5.02(a)(i)).  In connection with the termination of any Service, the provisions of this Agreement not relating solely to such terminated Service shall survive any such termination, and in connection with a termination of this Agreement, (i) Article I, this Article V, Article VII and Article IX,  and Liability for all due and unpaid Charges, and Termination Charges shall continue to survive indefinitely, and (ii) all confidentiality obligations hereunder shall survive until the end of the applicable period set forth in Section 6.01. 
Section 5.05.    Information Transmission.  The Provider, on behalf of itself and its respective Subsidiaries, shall use commercially reasonable efforts to provide or make available, or cause to be provided or made available, to the Recipient, in accordance with Section 6.1 of the Separation and Distribution Agreement, any Information received or computed by the Provider for the benefit of the Recipient concerning the relevant Service during the Service Period; provided, however, that, except as otherwise agreed to in writing by the Parties (a) the Provider shall not have any obligation to provide, or cause to be provided, Information in any non-standard format, (b) the Provider and its Subsidiaries shall be reimbursed for their reasonable costs in accordance with Section 6.3 of the Separation and Distribution Agreement for creating, gathering, copying, transporting and otherwise providing such Information, and (c) the Provider shall use commercially reasonable efforts to maintain any such Information in accordance with Section 6.4 of the Separation and Distribution Agreement. 
ARTICLE VI     
CONFIDENTIALITY; PROTECTIVE ARRANGEMENTS  
Section 6.01.    Grace Conn and GCP Obligations.  Subject to Section 6.04, until the five (5)-year anniversary of the date of the termination of this Agreement in its entirety, each of Grace Conn and GCP agrees, on behalf of itself and shall cause each of its Subsidiaries, to hold, and to cause its respective Representatives to hold, in strict confidence, with at least the same degree of care that applies to Grace Conn’s Confidential Information pursuant to policies in effect as of the Effective Time, all Confidential Information concerning the other Party or its Subsidiaries or their respective businesses  that is either in its possession (including Confidential Information in its possession prior to the date hereof) or furnished by such other Party or such other Party’s Subsidiaries or their respective Representatives at any time pursuant to this Agreement, and shall not use any such Confidential Information other than for its performance of this Agreement and such other  purposes as may be expressly permitted hereunder, except, in each case, to the extent that such Confidential Information has been (a) in, or later becomes part of, the public domain or generally available to the public, other than as a result of a disclosure by such Party or any of its Subsidiaries or any of their respective Representatives in violation of this Agreement; (b) later lawfully acquired from other sources by such Party or any of its Subsidiaries, which sources are not themselves bound 

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by a confidentiality obligation or other contractual, legal or fiduciary obligation of confidentiality with respect to such Confidential Information; or (c) independently developed or generated without reference to or use of the Confidential Information of the other Party or any of its Subsidiaries.  If any Confidential Information of a Party or any of its Subsidiaries is disclosed to the other Party or any of its Subsidiaries in connection with providing the Services, then such disclosed Confidential Information shall be used only as required to perform such Services.
Section 6.02.    No Release; Return or Destruction.  Each Party agrees (a) not to release or disclose, or permit to be released or disclosed, any Confidential Information of the other Party addressed in Section 6.01 to any other Person, except its Representatives or Affiliates who need to know such Confidential Information in their capacities as such (whom shall be advised of their obligations hereunder with respect to such Confidential Information) and except in compliance with Section 6.04, and (b) to use commercially reasonable efforts to maintain such Confidential Information in accordance with Section 6.9 of the Separation and Distribution Agreement.  Without limiting the foregoing, when any such Confidential Information is no longer needed for a Service hereunder or the purposes contemplated by the Separation and Distribution Agreement, this Agreement or any other Ancillary Agreements, each Party will promptly after request of the other Party either return to the other Party all such Confidential Information in a tangible form (including all copies thereof and all notes, extracts or summaries based thereon) or notify the other Party in writing that it has destroyed such information (and such copies thereof and such notes, extracts or summaries based thereon).
Section 6.03.    Privacy and Data Protection Laws.  Each Party shall comply with all applicable state, federal and foreign privacy and data protection Laws that are or that may in the future be applicable to the provision of the Services under this Agreement. 
Section 6.04.    Protective Arrangements.  In the event that a Party or any of its Subsidiaries either determines on the advice of its counsel that it is required to disclose any information pursuant to applicable Law or receives any request or demand under lawful process or from any Governmental Authority to disclose or provide information of the other Party (or any of its Subsidiaries) that is subject to the confidentiality provisions hereof, such Party shall notify the other Party (to the extent legally permitted) as promptly as practicable under the circumstances prior to disclosing or providing such information and shall cooperate, at the expense of the other Party, in seeking any appropriate protective order requested by the other Party.  In the event that such other Party fails to receive such appropriate protective order in a timely manner and the Party receiving the request or demand reasonably determines that its failure to disclose or provide such information shall actually prejudice the Party receiving the request or demand, then the Party that received such request or demand may thereafter disclose or provide information to the extent required by such Law (as so advised by its counsel) or by lawful process or such Governmental Authority, and the disclosing Party shall promptly provide the other Party with a copy of the information so disclosed, in the same form and format so disclosed, together with a list of all Persons to whom such information was disclosed, in each case to the extent legally permitted.
ARTICLE VII     
LIMITED LIABILITY AND INDEMNIFICATION

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Section 7.01.    Limitations on Liability.  
(a)    SUBJECT TO SECTION 7.02, THE LIABILITIES OF THE PROVIDER AND ITS SUBSIDIARIES AND THEIR RESPECTIVE REPRESENTATIVES, FOR THE SALE, DELIVERY, PROVISION OR USE OF ANY INDIVIDUAL SERVICE SHALL NOT EXCEED 25% OF THE AGGREGATE CHARGES PAID AND PAYABLE UNDER THIS AGREEMENT TO SUCH PROVIDER BY THE RECIPIENT IN RESPECT OF SUCH SERVICE, PROVIDED THAT, NOTWITHSTANDING THE FOREGOING, THE TOTAL LIABILITIES OF THE PROVIDER AND ITS SUBSIDIARIES AND THEIR RESPECTIVE REPRESENTATIVES, COLLECTIVELY, UNDER THIS AGREEMENT FOR ANY ACT OR FAILURE TO ACT IN CONNECTION HEREWITH (INCLUDING THE PERFORMANCE OR BREACH OF THIS AGREEMENT), OR FROM THE SALE, DELIVERY, PROVISION OR USE OF ANY SERVICES PROVIDED UNDER OR CONTEMPLATED BY THIS AGREEMENT, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, SHALL NOT EXCEED $3,000,000.00.
(b)    IN NO EVENT SHALL EITHER PARTY, ITS SUBSIDIARIES OR THEIR RESPECTIVE REPRESENTATIVES BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, PUNITIVE, EXEMPLARY, REMOTE, SPECULATIVE OR SIMILAR DAMAGES IN EXCESS OF COMPENSATORY DAMAGES OF THE OTHER PARTY IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT (OTHER THAN ANY SUCH LIABILITY WITH RESPECT TO A THIRD-PARTY CLAIM), AND EACH PARTY HEREBY WAIVES ON BEHALF OF ITSELF, ITS SUBSIDIARIES AND ITS REPRESENTATIVES ANY CLAIM FOR SUCH DAMAGES, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE.
(c)    The limitations in Section 7.01(a) and Section 7.01(b) shall not apply in respect of any Liability arising out of or in connection with (i) either Party’s Liability for breaches of confidentiality under Article VI, (ii) either Party’s obligations under Section 7.03, or (iii) the gross negligence, willful misconduct, or fraud of or by the Party to be charged.
Section 7.02.    Obligation to Re-Perform; Liabilities.  In the event of any breach of this Agreement by the Provider with respect to the provision of any Services (with respect to which the Provider can reasonably be expected to re-perform in a commercially reasonable manner), the Provider shall (a) promptly correct in all material respects such error, defect or breach or re-perform in all material respects such Services at the request of the Recipient and at the sole cost and expense of the Provider and (b) subject to the limitations set forth in Section 7.01, reimburse the Recipient and its Subsidiaries and Representatives for Liabilities attributable to such breach by the Provider.  The remedy set forth in this Section 7.02 shall be the sole and exclusive remedy of the Recipient for any such breach of this Agreement; provided, however, that the foregoing shall not prohibit the Recipient from exercising its right to terminate this Agreement in accordance with the provisions of Section 5.02(a)(ii).  Any request for re-performance in accordance with this Section 7.02 by the Recipient must be in writing and specify in reasonable detail the particular error, defect or breach, and such request must be made no more than one month from the later of (x) the date on which such breach occurred and (y) the date on which such breach was reasonably discovered by the Recipient.

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Section 7.03.    Third-Party Claims.  In addition to (but not in duplication of) its other indemnification obligations (if any) under the Separation and Distribution Agreement, this Agreement or any other Ancillary Agreement, the Recipient shall indemnify, defend and hold harmless the Provider, its Subsidiaries and each of their respective Representatives, and each of the successors and assigns of any of the foregoing (collectively, the “Provider Indemnitees”), from and against any and all claims of Third Parties relating to, arising out of or resulting from the Provider’s furnishing or failing to furnish the Services provided for in this Agreement, other than (a) Third Party Claims arising out of the gross negligence, willful misconduct or fraud of any Provider Indemnitee and (b) as set forth in Section 2.02(b).  
Section 7.04.    Provider Indemnity.  In addition to (but not in duplication of) its other indemnification obligations (if any) under the Separation and Distribution Agreement, this Agreement or any other Ancillary Agreement, the Provider shall indemnify, defend and hold harmless the Recipient, its Subsidiaries and each of their respective Representatives, and each of the successors and assigns of any of the foregoing (collectively, the “Recipient Indemnitees”), from and against any and all Liabilities relating to, arising out of or resulting from the sale, delivery, provision or use of any Services provided by such Provider hereunder, but only to the extent that such Liability relates to, arises out of or results from the Provider’s gross negligence, willful misconduct or fraud. 
Section 7.05.    Indemnification Procedures.  The procedures for indemnification set forth in Sections 4.5, 4.6 and 4.7 of the Separation and Distribution Agreement shall govern claims for indemnification under this Agreement.
ARTICLE VIII     
MISCELLANEOUS
Section 8.01.    Mutual Cooperation.  Each Party shall, and shall cause its Subsidiaries to, cooperate with the other Party and its Subsidiaries in connection with the performance of the Services hereunder; provided, however, that such cooperation shall not unreasonably disrupt the normal operations of such Party or its Subsidiaries; and, provided, further, that this Section 8.01 shall not require such Party to incur any out-of-pocket costs or expenses unless and except as expressly provided in this Agreement or otherwise agreed to in writing by the Parties.
Section 8.02.    Further Assurances.  Each Party shall take, or cause to be taken, any and all reasonable actions, including the execution, acknowledgment, filing and delivery of any and all documents and instruments that any other Party may reasonably request in order to effect the intent and purpose of this Agreement and the transactions contemplated hereby.
Section 8.03.    Audit Assistance.  Each of the Parties and their respective Subsidiaries are or may be subject to regulation and audit by a Governmental Authority (including a Taxing Authority), standards organizations, customers or other parties to contracts with such Parties or their respective Subsidiaries under applicable Law, standards or contract provisions.  If a Governmental Authority, standards organization, customer or other party to a contract with a Party or its Subsidiary exercises its right to examine or audit such Party’s or its Subsidiary’s books, records, documents or accounting practices and procedures pursuant to such applicable Law, standards or 

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contract provisions, and such examination or audit relates to the Services, then the other Party shall provide, at the sole cost and expense of the requesting Party, all assistance reasonably requested by the Party that is subject to the examination or audit in responding to such examination or audits or requests for Information, to the extent that such assistance or Information is within the reasonable control of the cooperating Party and is related to the Services.
Section 8.04.    Title to Intellectual Property.  
(a)    Except as expressly provided for under the terms of this Agreement or the Separation and Distribution Agreement or the Cross License Agreement, the Recipient acknowledges that it shall acquire no right, title or interest (including any license rights or rights of use) in any intellectual property which is owned or licensed by the Provider, by reason of the provision of the Services hereunder.  The Recipient shall not remove or alter any copyright, trademark, confidentiality or other proprietary notices that appear on any intellectual property owned or licensed by the Provider, and the Recipient shall reproduce any such notices on any and all copies thereof.  The Recipient shall not attempt to decompile, translate, reverse engineer or make excessive copies of any intellectual property owned or licensed by the Provider, and the Recipient shall promptly notify the Provider of any such attempt, regardless of whether by the Recipient or any Third Party, of which the Recipient becomes aware.
Section 8.05.    Independent Contractors.  The Parties each acknowledge and agree that they are separate entities, each of which has entered into this Agreement for independent business reasons.  The relationships of the Parties hereunder are those of independent contractors and nothing contained herein shall be deemed to create a joint venture, partnership or any other relationship between the Parties.  Employees performing services hereunder do so on behalf of, under the direction of, and as employees of, the Provider, and the Recipient shall have no right, power or authority to direct such employees.
Section 8.06.    Counterparts; Entire Agreement; Corporate Power.  
(a)    This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party.
(b)    This Agreement, the Separation and Distribution Agreement and the Ancillary Agreements and the Exhibits, Schedules and appendices hereto and thereto contain the entire agreement between the Parties with respect to the subject matter hereof, supersede all previous agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter, and there are no agreements or understandings between the Parties other than those set forth or referred to herein or therein.
(c)    Grace Conn represents on behalf of itself and, to the extent applicable, each of its Subsidiaries, and GCP represents on behalf of itself and, to the extent applicable, each of its Subsidiaries, as follows:

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(i)    each such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; and
(ii)    this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance with the terms hereof, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and general equitable principles, regardless of whether such enforcement is considered in a proceeding in law or in equity.
(d)    Each Party acknowledges and agrees that delivery of an executed counterpart of a signature page to this Agreement (whether executed by manual, stamp or mechanical signature) by facsimile or by email in portable document format (PDF) shall be effective as delivery of such executed counterpart of this Agreement.  Each Party expressly adopts and confirms each such facsimile, stamp or mechanical signature (regardless of whether delivered in person, by mail, by courier, by facsimile or by email in portable document format (PDF)) made in its respective name as if it were a manual signature delivered in person, agrees that it will not assert that any such signature or delivery is not adequate to bind such Party to the same extent as if it were signed manually and delivered in person and agrees that, at the reasonable request of the other Party at any time, it will as promptly as reasonably practicable cause this Agreement to be manually executed (any such execution to be as of the date of the initial date thereof) and delivered in person, by mail or by courier.
(e)    Except as otherwise expressly provided in this Agreement, in the event of any conflict or inconsistency between the provisions of this Agreement and the provisions of the Tax Sharing Agreement, the provisions of the Tax Sharing Agreement shall control over the inconsistent provisions of this Agreement as to matters specifically addressed in the Tax Sharing Agreement.  For the avoidance of doubt, (i) the Tax Sharing Agreement shall govern all matters (including any indemnities and payments among the parties and each other member of their respective Groups and the allocation of any rights and obligations pursuant to agreements entered into with Third Parties) relating to Taxes or otherwise specifically addressed in the Tax Sharing Agreement
Section 8.07.    Governing Law.  This Agreement (and any claims or disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware, irrespective of the choice of Laws principles of the State of Delaware, including all matters of validity, construction, effect, enforceability, performance and remedies.  
Section 8.08.    Assignability.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns; provided, however, that neither Party may assign its rights or delegate its obligations under this Agreement without the express prior written consent of the other Party.  Notwithstanding the foregoing, no such consent shall be 

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required for the assignment of a Party’s rights and obligations under the Separation and Distribution Agreement, this Agreement and the other Ancillary Agreements in whole (i.e., the assignment of a Party’s rights and obligations under the Separation and Distribution Agreement, this Agreement and all the other Ancillary Agreements all at the same time) in connection with a change of control of a Party so long as the resulting, surviving or transferee Person assumes all the obligations of the relevant party thereto by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party.  Nothing herein is intended to, or shall be construed to, prohibit either Party or any of its Subsidiaries from being party to or undertaking a change of control.
Section 8.09.    Third-Party Beneficiaries.  Except as provided in Article VII with respect to the Provider Indemnitees in their capacities as such, (a) the provisions of this Agreement are solely for the benefit of the Parties and are not intended to confer upon any other Person except the Parties any rights or remedies hereunder; and (b) there are no other third-party beneficiaries of this Agreement and this Agreement shall not provide any other Third Party with any remedy, claim, Liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement.
Section 8.10.    Notices.  All notices, requests, claims, demands or other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person or by overnight courier service, to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 8.10):
If to Grace Conn, to: 
 
W. R. Grace & Co. 
7500 Grace Drive 
Columbia, Maryland  21044 
Attention:    General Counsel
with a copy to: 
 
Wachtell, Lipton, Rosen & Katz 
51 West 52nd Street 
New York, New York  10019 
Attention:    Andrew R. Brownstein 
    Gregory E. Ostling
If to GCP, to: 
 
GCP Applied Technologies Inc. 
62 Whittemore Avenue 
Cambridge, Massachusetts  02140 
Attention:    General Counsel

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with a copy (prior to the Effective Time) to: 
 
Wachtell, Lipton, Rosen & Katz 
51 West 52nd Street 
New York, New York  10019 
Attention:    Andrew R. Brownstein 
    Gregory E. Ostling
Any Party may, by notice to the other Party, change the address to which such notices are to be given.
Section 8.11.    Severability.  If any provision of this Agreement or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.  Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the Parties.  
Section 8.12.    Force Majeure.  No Party shall be deemed in default of this Agreement for any delay or failure to fulfill any obligation hereunder (other than the obligation to pay money) so long as and to the extent to which any delay or failure in the fulfillment of such obligations is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure.  In the event of any such excused delay, the time for performance of such obligations (other than a payment obligation) shall be extended for a period equal to the time lost by reason of the delay unless this Agreement has previously been terminated under Article V or under this Section 8.12.  A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such Force Majeure, (a) provide written notice to the other Party of the nature and extent of such Force Majeure; and (b) use commercially reasonable efforts to remove any such causes and resume performance under this Agreement as soon as reasonably practicable (and in no event later than the date that the affected Party resumes providing analogous services to, or otherwise resumes analogous performance under any other agreement for, itself, its Affiliates or any Third Party) unless this Agreement has previously been terminated under Article V or this Section 8.12.  The Recipient shall be (i) relieved of the obligation to pay Charges for the affected Service(s) throughout the duration of such Force Majeure and (ii) entitled to permanently terminate such Service(s) if the delay or failure in providing such Services because of a Force Majeure shall continue to exist for more than thirty (30) consecutive days (it being understood that the Recipient shall not be required to provide any advance notice of such termination to the Provider).  
Section 8.13.    Headings.  The Article, Section and Paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
Section 8.14.    Survival of Covenants.  Except as expressly set forth in this Agreement, the covenants, representations and warranties and other agreements contained in this Agreement, and 

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Liability for the breach of any obligations contained herein, shall survive the Effective Time and shall remain in full force and effect thereafter.
Section 8.15.    Waivers of Default.  Waiver by any Party of any default by the other Party of any provision of this Agreement shall not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice any other rights of the waiving Party.  No failure or delay by any Party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege.  
Section 8.16.    Dispute Resolution.  
(a)    In the event of any controversy, dispute or claim (a “Dispute”) arising out of or relating to any Party’s rights or obligations under this Agreement (whether arising in contract, tort or otherwise), calculation or allocation of the costs of any Service or otherwise arising out of or relating in any way to this Agreement (including the interpretation or validity of this Agreement), such Dispute shall be resolved in accordance with the dispute resolution process referred to in Article VII of the Separation and Distribution Agreement.
(b)    In any Dispute regarding the amount of a Charge or a Termination Charge, if such Dispute is finally resolved pursuant to the dispute resolution process set forth or referred to in Section 8.16(a) and it is determined that the Charge or the Termination Charge, as applicable, that the Provider has invoiced the Recipient, and that the Recipient has paid to the Provider, is greater or less than the amount that the Charge or the Termination Charge, as applicable, should have been, then (i) if it is determined that the Recipient has overpaid the Charge or the Termination Charge, as applicable, the Provider shall within fifteen (15) business days after such determination reimburse the Recipient an amount of cash equal to such overpayment, plus the Interest Payment, accruing from the date of payment by the Recipient to the time of reimbursement by the Provider; and (ii) if it is determined that the Recipient has underpaid the Charge or the Termination Charge, as applicable, the Recipient shall within fifteen (15) business days after such determination reimburse the Provider an amount of cash equal to such underpayment, plus the Interest Payment, accruing from the date such payment originally should have been made by the Recipient to the time of payment by the Recipient. 
Section 8.17.    Specific Performance.  Subject to Section 8.16, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Party or Parties who are, or are to be, thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief (on an interim or permanent basis) in respect of its rights or their rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative.  The Parties agree that the remedies at law for any breach or threatened breach, including monetary damages, may be inadequate compensation for any loss and that any defense in any Action for specific performance that a remedy at law would be adequate is waived.  Any requirements for the securing or posting of any bond with such remedy are hereby waived by each of the Parties.  Unless otherwise agreed in writing, the Parties shall continue to provide Services and honor all other commitments under this Agreement during the course of dispute resolution pursuant to the provisions of Section 8.16 

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and this Section 8.17 with respect to all matters not subject to such Dispute; provided, however, that this obligation shall only exist during the term of this Agreement.
Section 8.18.    Amendments.  No provisions of this Agreement or any Ancillary Agreement shall be deemed waived, amended, supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to enforce such waiver, amendment, supplement or modification.
Section 8.19.    Interpretation.  In this Agreement, (a) words in the singular shall be deemed to include the plural and vice versa and words of one gender shall be deemed to include the other genders as the context requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole (including all of the Schedules, Annexes and Exhibits hereto) and not to any particular provision of this Agreement; (c) Article, Section, Exhibit, Annex and Schedule references are to the Articles, Sections, Exhibits, Annexes and Schedules to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement shall be deemed to include the exhibits, schedules and annexes to such agreement; (e) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified; (f) the word “or” shall not be exclusive; (g) unless otherwise specified in a particular case, the word “days” refers to calendar days; (h) references to “business day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions are generally authorized or required by law to close in the United States or New York, New York; (i) references herein to this Agreement or any other agreement contemplated herein shall be deemed to refer to this Agreement or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented thereafter, unless otherwise specified; and (j) unless expressly stated to the contrary in this Agreement, all references to “the date hereof,” “the date of this Agreement,” “hereby” and “hereupon” and words of similar import shall all be references to [●], 2016.
Section 8.20.    Mutual Drafting.  This Agreement shall be deemed to be the joint work product of the Parties and any rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable to this Agreement.
[Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives.
W. R. GRACE & CO.—CONN.
		
	By:
	     
Name:   
Title:  

GCP APPLIED TECHNOLOGIES INC.
		
	By:
	     
Name:   
Title:  

-22-Exhibit

Exhibit 10.1

SUPERVALU INC.

P.O. Box 990
Minneapolis, MN 55440
952 828 4623
November 30, 2015
Eric A. Claus

Dear Eric:
We are pleased to set forth the terms of your employment in the position of Chief Executive Officer of Save-A-Lot (the “SAL Business”), a segment of SUPERVALU INC. (“Supervalu”), beginning on a date mutually agreed by Supervalu and you, but in no event later than February 3, 2016 (the “Start Date”). Until the separation of the SAL Business from Supervalu by means of a spinoff of all or substantially all of the common stock of Save-A-Lot, Inc. (“Save-A-Lot”), a newly formed direct or indirect subsidiary of Supervalu, to Supervalu’s stockholders or a similar transaction following which all or substantially all of the SAL Business becomes held by Supervalu’s stockholders (the “Separation”), you shall have primary responsibility for Moran Foods LLC, through which the SAL Business operates, including preparing the SAL Business for the Separation, and report to the Chief Executive Officer of Supervalu and, if, as and when requested by the Board of Directors of Supervalu (the “Supervalu Board”), the Supervalu Board. Contemporaneously with the Separation, Supervalu shall cause Save-A-Lot to assume this letter agreement (the “Letter Agreement”) and all of the obligations hereunder in writing, including, without limitation, that you shall become Chief Executive Officer of Save-A-Lot, shall have primary responsibility for Save-A-Lot, shall become a member of the Board of Directors of Save-A-Lot (the “Save-A-Lot Board”), and shall report to the Save-A-Lot Board. For the avoidance of doubt, you agree that Supervalu may satisfy the preceding sentence by causing Save-A-Lot to assume this Letter Agreement and the obligations set forth herein in a writing in which Save-A-Lot also assumes other agreements relating to the SAL Business.

The specific terms of your employment are as follows:

EFFECTIVE DATE: This Letter Agreement shall become effective upon execution by both you and Supervalu (the “Effective Date”).

ADDITIONAL CONDITIONS OF OFFER: You agree as a condition of your
employment with Supervalu and the SAL Business to fully comply with the terms of your
agreement(s) with the Red Apple Stores Inc. and its subsidiaries (the “Prior Employer”),
including, without limitation, any such terms pertaining to the nondisclosure of confidential
information, nonsolicitation of employees and customers, clients, vendors, and suppliers, and the return of documents and information to the Prior Employer. Without limiting the immediately preceding sentence, you shall return to the Prior Employer and shall not knowingly keep any documents or files (whether in hard copy or electronic format) that you obtained in the course of your employment with the Prior Employer (whether or not you believe such documents or files constitute or contain confidential information), other than documents and files belonging to you

1

and relating to your own terms and conditions of employment, compensation, and benefits. In
addition, you agree that, if the Start Date occurs prior to February 3, 2016, prior to the Start Date you shall provide Supervalu with a written waiver from the Prior Employer of the notice
requirement set forth in Section 5.6 of your employment agreement with the Prior Employer.

POSITIONS AND DUTIES: While you are employed with Supervalu or Save-A-Lot,
as applicable (the “Employer”), you shall have authority, duties and responsibilities that are
commensurate with your position as set forth in the initial paragraph of this Letter Agreement
and as are customarily exercised by a person holding such position, including, without limitation, (a) overall responsibility for leading and supervising the businesses and operations of the SAL Business, prior to the Separation, and Save-A-Lot, following the Separation, (b) responsibility for developing, refining and implementing the strategic plans of the SAL Business, prior to the Separation, and Save-A-Lot, following the Separation, (c) hiring, supervising and firing of your direct reports, and (d) such other duties as the person or body to whom you report may assign to you from time to time (consistent with your title and position) and, in each case, subject to the ultimate authority and direction of such person or body. Your primary place of employment will be in the St. Louis metropolitan area (i) at the executive offices of the SAL Business, prior to the Separation, and (ii) the executive offices of Save-A-Lot, after the separation, or at such other place as is mutually agreed by you and the Employer.

BASE SALARY: You will be paid a base salary while you are employed by the
Employer at an annualized rate of $850,000 (subject to applicable taxes and withholdings) (the “Base Salary”), which will be paid in substantially equal installments in accordance with the Employer’s usual and customary payroll policies.

ANNUAL BONUS: You will have the opportunity to earn a bonus for each fiscal year
of the Employer that you are employed by the Employer (the “Annual Bonus”), with a minimum of zero, a target of 100% of your Base Salary (the “Target Bonus”), and a maximum bonus of 200% of your Base Salary, to be paid not later than 2-1/2 months following the end of such fiscal year (subject to your continued employment through the applicable performance period). The Annual Bonus shall be based on the attainment of performance goals proposed by the Employer’s management to, and subject to the final approval of, the Leadership Development and Compensation Committee of the Supervalu Board (the “Supervalu LDCC”), in respect of fiscal years which commence prior to the Separation, and the Leadership Development and Compensation Committee of the Save-A-Lot Board (the “Save-A-Lot LDCC”), in respect of fiscal years which begin on or following the Separation. For the fiscal year of Supervalu ending in 2016, your Annual Bonus will be prorated based on actual performance (i.e., at the same payout percentage of the Target Bonus as applies to the current President and Chief Executive Officer of Save-A-Lot) and the number of days you are employed with Supervalu during such fiscal year. If the Separation does not occur prior to the time performance goals are established for the fiscal year ending in 2017 in the ordinary course of business, the performance goals for the Annual Bonus for the fiscal year ending in 2017 will be established by the Supervalu LDCC for the entire fiscal year ending in 2017. Such performance goals will be based solely on the performance of the SAL Business, and shall be transferred to Save-A-Lot without alteration in connection with the Separation. If the Separation occurs prior to the time performance goals are established for the fiscal year ending in 2017 in the ordinary course of business, the performance
goals for the Annual Bonus for the fiscal year ending in 2017 will be established by the Save-A-Lot LDCC.

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SIGNING BONUS: As soon as administratively practicable following the Start Date
(and in no event more than fifteen business days after the Start Date), Supervalu will make a cash payment to you of $325,000 (the “Signing Bonus”). If, however, you are terminated by the Employer for Cause (as defined in Supervalu’s Executive & Officer Severance Pay Plan as in effect on the Effective Date (the “Supervalu Severance Plan”)) or you resign for any reason other than for Good Reason (as defined below), in each case, prior to the first anniversary of the Start Date, then you will repay to the Employer the Signing Bonus within ten business days following your termination or resignation of employment. For purposes of this Letter Agreement, “Good Reason” means any one or more of the following events: (a) your Base Salary is reduced below the amount set forth herein; (b) your Target Bonus is reduced below the amount set forth herein; (c) your title is reduced from the title set forth herein, or your duties and responsibilities are materially and adversely diminished in comparison to the duties and responsibilities that you have under this Letter Agreement, other than in a general reduction of the number or scope of personnel for which you are responsible for supervising, which reduction occurs in connection with a restructuring or recapitalization of the Employer or the division of the Employer in which you work; (d) the program of long-term incentive compensation is materially and adversely diminished in comparison to the program of long-term incentive compensation as it exists for you under this Letter Agreement (for purposes of this clause (d), a reduction of 15% or more of the annualized target dollar amount of your long-term incentive compensation opportunity shall be considered to be material and adverse); (e) you are required to be based at a location more than 45 miles from St. Louis metropolitan area; (f) failure by the Employer to provide for the assumption of this Letter Agreement by any successor entity; or (g) a material breach by the Employer of the terms of this Letter Agreement; provided, however, that any diminution of duties or responsibilities that occurs solely as a result of the fact that the Employer ceases to be a public company shall not, in and of itself, constitute Good Reason. A resignation shall not constitute a resignation for Good Reason unless (i) you give notice to the Employer of any event or condition purported to give rise to Good Reason hereunder within 60 days following the date of the occurrence of any such event or condition, (ii) the Employer fails to cure such event or condition within 30 days following the receipt of such notice, and (iii) you terminate your employment within 30 days following the expiration of such cure period. For the avoidance of doubt, a Qualifying Sale Resignation (as defined below) shall not be deemed either a termination for Cause or a resignation without Good Reason for purposes of this paragraph.

INITIAL LTI AWARD(S): Subject to your continued employment, upon the earlier of
(a) the date of the Separation (the “Separation Date”) and (b) the date on which ordinary course long-term incentive awards for the fiscal year ending in 2017 are granted to senior executives of Supervalu generally (the “FY 2017 Grant Date”), you will be granted either (i) a Save-A-Lot long-term incentive award having an aggregate grant date value of $1.7 million (in the case of a grant under clause (a)) or (ii) a Supervalu long-term incentive award having an aggregate grant date value of $1.7 million (in the case of a grant under clause (b)) (the long-term incentive award described in this paragraph, the “Initial LTI Award”). In connection with the Separation, any Supervalu award granted to you prior to the Separation pursuant to this paragraph will be converted into a corresponding Save-A-Lot award having the same terms, conditions, and value (subject to non-material rounding) as applied to the Supervalu award granted to you prior to the
Separation, applying the same conversion methodology that applies to similar Supervalu awards held by Save-A-Lot employees in the Separation generally. The form, calculation methodology of the number, and the terms and conditions of the Initial LTI Award will be determined by the Save-A-Lot LDCC or the Supervalu LDCC, as applicable.

3

ANNUAL LTI AWARDS: In each fiscal year of Save-A-Lot following the Separation,
commencing with the fiscal year ending in 2018, provided that you remain employed with Save- A-Lot through the grant date, you will receive an annual long-term incentive award from Save- A-Lot with an aggregate grant date value of $1.7 million, with the allocation between award types, calculation methodology of the number, and terms and conditions to be determined by the Save-A-Lot LDCC.

BENEFITS: In addition to your compensation described in the preceding paragraphs,
you will be entitled to participate in the Employer’s comprehensive benefits programs including, without limitation, all programs available to senior executives of the Employer, subject to the eligibility requirements thereof. These programs as in effect on the Start Date are summarized in a document that you have received from Supervalu.

REIMBURSEMENT OF EXPENSES: The Employer will pay or reimburse you for all reasonable travel and other business related expenses incurred by you in performing your duties for the Employer in accordance with the Employer’s policies and procedures as in effect from time to time. You will be entitled to relocation benefits in accordance with Supervalu’s Relocation Policy – Tier 1, a copy of which you have received from Supervalu.

PAID TIME OFF: Supervalu has a Paid Time Off (PTO) policy that provides paid time off for needs such as vacation, personal illness, family needs, etc. You will be eligible for
27 days of PTO annually, which will be prorated during your first calendar year of employment based on the Start Date.

SEVERANCE: Prior to the Separation, you will be eligible for a severance benefit as
though you were a participant in the Supervalu Severance Plan at a “Tier I” level; provided,
however, that in no event shall your severance benefit pursuant to this Letter Agreement be less favorable than the severance benefits in effect under the Supervalu Severance Plan on the
Effective Date (i.e., you will be entitled to such benefits even if the Supervalu Severance Plan is thereafter eliminated and/or modified to include less favorable benefits (the “Guaranteed
Minimum Severance Benefits”)). Upon and following the Separation, you will be eligible to
participate in a Save-A-Lot severance plan having terms and conditions that are substantially no less favorable to you than the Guaranteed Minimum Severance Benefits. The severance benefits provided under this Paragraph are hereinafter referred to in this Letter Agreement as the “Termination Benefits.”

LIMITED TERMINATION RIGHT: If neither the Separation nor the consummation of a sale of all or substantially all of the SAL Business to one or more independent third parties (a “Sale” and such independent third party or parties, the “Buyers”) has occurred by the date that is 12 months following the Start Date (the “Outside Date”), then Supervalu shall have the right, but not the obligation, to extend you a Qualifying Offer during the 30-day period following the Outside Date (the “Offer Period”). A “Qualifying Offer” means a written offer of continued

employment that includes (a) your primary place of employment in the St. Louis metropolitan
area, or at such other place as is mutually agreed by you and Supervalu, (b) title, duties, and
reporting structure that are, in each case, no less favorable to you than as set forth in this Letter Agreement, (c) an annual base salary, target and maximum annual bonus opportunity, and severance benefits that are no less favorable to you than those set forth in this Letter Agreement, and (d) an annual long-term incentive opportunity with an aggregate grant date value of no less 

4

than $1.7 million that is established in a manner no less favorable to you than as set forth in this Letter Agreement. A “Nonqualifying Offer” is any offer other than a Qualifying Offer. 

If Supervalu does not make you a Qualifying Offer during the Offer Period (i.e., makes no offer or makes a Nonqualifying Offer during the Offer Period), you will have the right to give Supervalu notice of your resignation during the 30-day period following the earlier of Supervalu making a Nonqualifying Offer and the expiration of the Offer Period, with such resignation to be effective 30 days following Supervalu’s receipt of such notice or such other date mutually agreed by Supervalu and you. Upon such resignation, you will be entitled, subject to your execution, delivery, and non-revocation of a release of claims substantially in the form set forth in Exhibit B hereto (a “Release”), to receive the Termination Benefits. 

If, prior to the Separation Date or, if applicable, the Outside Date, (i) a Sale is
consummated (the date on which a Sale is consummated, the “Sale Date”), (ii) the Buyers do not make a Qualifying Offer to you on or prior to the Sale Date, and (iii) you do not commence employment with the Buyers or any of their respective affiliates as of the Sale Date, then you will have the right to give Supervalu notice of your resignation during the 30-day period following the Sale Date (such resignation, a “Qualifying Sale Resignation”), with such resignation to be effective 30 days following Supervalu’s receipt of such notice or such other date mutually agreed by Supervalu and you. Upon a Qualifying Sale Resignation, you will be entitled, subject to your execution, delivery, and non-revocation of a Release, to the Termination Benefits; provided, however, that, if you become employed by the Buyers or any of their respective affiliates within two years following your termination of employment with Supervalu, you will be required to repay to Supervalu any Termination Benefits paid to you promptly following your commencement of employment with the Buyers or their respective affiliates. 

If, prior to the Separation Date or, if applicable, the Outside Date: (i) a Sale is
consummated and (ii) on or prior to the Sale Date, you receive a Qualifying Offer from the
Buyers but do not accept such Qualifying Offer on or prior to the Sale Date, then Supervalu may terminate your employment within the 30 day period following the Sale Date. Such termination of employment by Supervalu will be deemed a voluntary resignation by you for purposes of the Supervalu Severance Plan and any other plan, policy, agreement, or arrangement of Supervalu, and will not entitle to you to any severance or separation benefits pursuant to this Letter Agreement or otherwise.

If the time period for executing, delivery, and not revoking a Release referenced above
(as set forth in such Release) begins and ends in different taxable years, any payments or benefits under this Letter Agreement that constitute nonqualified deferred compensation under
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the payment or settlement of which is conditioned on the effectiveness of the Release shall be paid in the later taxable year.
CERTAIN REPRESENTATIONS AND COVENANTS: You represent and warrant
that, as of the Effective Date, you are not a party to any agreement containing or otherwise
subject to a noncompetition provision or other restriction with respect to (a) the nature of any
services that you are entitled or obligated to perform or conduct for Supervalu, Save-A-Lot, or
any of their respective affiliates under this Letter Agreement, or (b) the disclosure or use of any confidential information that directly or indirectly relates to the nature of the business of
Supervalu, Save-A-Lot, or any of their respective affiliates, or the services that you are entitled or obligated to perform under this Letter Agreement. In addition, you represent and warrant that 

5

(i) you are a lawful permanent resident of the United States, (ii) you are authorized to work in the United States, and (iii) you will not require employer sponsorship in order to maintain such status and work authorization. You agree to complete Form I-9 in accordance with Supervalu procedures upon commencement of employment and to maintain such status and work authorization throughout your employment with the Employer. You acknowledge and agree that any breach of the foregoing representations and covenants shall constitute Cause for purposes of this Letter Agreement, all equity awards granted to you by the Employer, and all severance arrangements for which you may otherwise be eligible. Supervalu represents and warrants that it has the power and authority to execute and deliver this Letter Agreement and to perform its obligations hereunder.

MISCELLANEOUS: Your employment with the Employer will be “at-will.” “At-will” means that either you or the Employer are free to terminate the employment relationship at any time, for any reason. This Letter Agreement does not change the nature of your “at-will” employment and does not guarantee employment for any specific period of time. You will be provided with a Supervalu Tier II Change of Control Severance Agreement (the “Supervalu COC Agreement”), with terms consistent with other Supervalu Tier II COC Agreements of other senior executives of Supervalu, which will become effective on the Start Date. On the Separation Date, Supervalu will cause the Supervalu COC Agreement to be replaced with a Save-A-Lot Change of Control Severance Agreement (the “Save-A-Lot COC Agreement”) having terms and conditions substantially no less favorable than the Supervalu COC Agreement.In the event that you become entitled to severance payments or benefits as provided pursuant to this Letter Agreement, such payments and benefits will be your sole and exclusive severance payments and benefits and you will not be entitled to any other severance payments or benefits from the Employer. You acknowledge and agree that neither the Separation nor a Sale shall constitute a “change of control” (or a term of similar import) for the purposes of your Supervalu COC Agreement or any other plan, policy, agreement, or arrangement of Supervalu, or an event entitling you to severance or separation benefits pursuant to this Letter Agreement or otherwise (other than as set forth in the section entitled “Limited Termination Right” above).

NONCOMPETITION, NONSOLICITATION, CONFIDENTIALITY, AND
MANDATORY ARBITRATION: By accepting this offer, you agree, effective as of the
Effective Date, to the confidentiality, noncompetition, and nonsolicitation provisions contained in the “Terms and Conditions of Employment” attached as Exhibit A, and that are incorporated herein by reference. You also agree that any and all employment disputes occurring during or after your employment with the Employer are subject to mandatory arbitration as set forth in the “Terms and Conditions of Employment.” In addition, you acknowledge and agree that this Letter Agreement and the discussions and correspondences that led to this Letter Agreement shall constitute “Confidential Information” for purposes of the Confidentiality Agreement, dated
as of October 23, 2015, by and between Supervalu and you (unless such information is already publicly available through no fault of your own).

LEGAL FEES: Upon presentation of appropriate documentation, Supervalu will pay or reimburse you for your reasonable counsel fees incurred in connection with the negotiation and documentation of this Letter Agreement (at such counsel’s standard hourly rates), up to a
maximum of $20,000 in the aggregate.

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ENTIRE AGREEMENT: This Letter Agreement is intended to be the entire agreement between Supervalu and you with respect to the matters described herein. No waiver or modification hereof shall be valid unless made in writing, signed by both you and Supervalu.
SECTION 409A. The Employer and you intend that the payments and benefits provided for in this Letter Agreement either be exempt from the application of Section 409A of the Code and the rules and regulations thereunder, or be provided in a manner that does not result in tax penalties to you under Section 409A of the Code, and any ambiguity herein shall be interpreted so as to be consistent with the intent of this paragraph. Notwithstanding anything contained herein to the contrary, all payments and benefits paid on account of your termination of employment that constitute nonqualified deferred compensation within the meaning of Section 409A of the Code shall be paid or provided only at the time of a termination of your employment that constitutes a “separation from service” from the Employer within the meaning of Section 409A of the Code and the regulations and guidance promulgated thereunder (determined after applying the presumptions set forth in Treas. Reg. Section 1.409A-1(h)(1)). Further, if at the time of your termination of employment with the Employer you are a “specified employee” as defined in Section 409A of the Code as determined by the Employer in accordance with Section 409A of the Code, and the Employer determines that the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary to prevent any accelerated or additional tax or interest on account of Section 409A of the Code, then the Employer will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in payments or benefits ultimately paid or provided to you) until the date that is six months following the date of your termination of employment with the Employer (or, if earlier, the date of your death), whereupon the Employer will pay you a lump sum amount equal to the cumulative amounts that would have otherwise been previously paid to you under this Letter Agreement during the period in which such payments or benefits were deferred. For purposes of the limitations on nonqualified deferred compensation under Section 409A of the Code, each payment of compensation under this Letter Agreement shall be treated as a separate payment of compensation for purposes of applying the exclusion under Section 409A of the Code for certain short-term deferral amounts and otherwise. In no event may you, directly or indirectly, designate the calendar year of any payment under this Letter Agreement.
Notwithstanding anything to the contrary in this Letter Agreement, in-kind benefits and reimbursements provided under this Letter Agreement during any calendar year shall not affect in-kind benefits or reimbursements to be provided in any other calendar year, other than an arrangement providing for the reimbursement of medical expenses referred to in Section 105(b) of the Code, and are not subject to liquidation or exchange for another benefit. Notwithstanding anything to the contrary in this Letter Agreement, reimbursement requests must be timely
submitted by you and, if timely submitted, reimbursement payments shall be promptly made to you following such submission, but in no event later than December 31st of the calendar year following the calendar year in which the expense was incurred. In no event shall you be entitled to any reimbursement payments after December 31st of the calendar year following the calendar year in which the expense was incurred. This paragraph shall only apply to in-kind benefits and reimbursements that would result in taxable compensation income to you.

CONTROLLING LAW: This Letter Agreement shall in all respects be interpreted,
enforced and governed by the laws of the State of Minnesota without regard to its conflicts of
laws principles.

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SEVERABILITY: You agree that the terms of this Letter Agreement (including,
without limitation, Exhibit A hereto) are severable, and if any provision of this Letter Agreement (including, without limitation, Exhibit A hereto) is found to be void and unenforceable by a court, that judgment will not affect, impair or invalidate the remainder of this Letter Agreement.

COUNTERPARTS: This Letter Agreement may be executed in separate counterparts
(including by facsimile or other electronic means), each of which shall deemed to be an original but all of which taken together shall constitute one and the same instrument.

(Signature Page Follows)

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If the foregoing accurately expresses our mutual understanding, please execute the enclosed copy of this letter in the space provided below, and return to the undersigned.

Sincerely,

SUPERVALU INC.

By: 
          /s/ Matthew E. Ruebel______________
Name: Matthew E. Rubel
Title: Chair, Leadership Development and
Compensation Committee

Date:                          11/30/2015                     

AGREED AND ACCEPTED:

        /s/ Eric A. Claus                                      
Name: Eric A. Claus

Date:                          11/30/2015                     

[Signature Page to Offer Letter]

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EXHIBIT A
TERMS AND CONDITIONS OF EMPLOYMENT
The following are confidentiality, noncompetition, nonsolicitation and mandatory arbitration agreements referenced in the attached offer letter.  By accepting this offer of employment, you agree to these terms and conditions.  As they concern important legal rights, you are urged to read carefully, and consult counsel, if necessary, to ensure you understand these provisions.
As used below, “You” refers to the individual to whom this offer of employment is being extended.  The “Employer” in this Exhibit A refers to (a) prior to the Separation, SUPERVALU INC. and all of its subsidiaries, affiliates, and related companies, and (b) upon and following the Separation, Save-A-Lot, Inc., and all of its subsidiaries, affiliates, and related companies and SUPERVALU INC. and all of its subsidiaries, affiliates, and related companies.
You affirm, agree and understand that the offer letter, as attached (the “Letter Agreement”), includes the following provisions, and that by accepting the Employer’s offer of employment, You agree to abide by, and be bound by, the following:
		
	1.
	Confidentiality.  You acknowledge that, in the course of your employment with the Employer, You will have access to confidential information that was obtained or developed by the Employer at great expense and that is zealously guarded from unauthorized disclosure.  Your access to and possession of this information will be due solely to your employment with the Employer.  You agree that You will not, at any time during or following termination of employment for any reason, disclose, use, or otherwise make available to any third party, any confidential information relating to the Employer’s business, products, services, customers, vendors, or suppliers; trade secrets, data, specifications, techniques; long- and short-term plans, existing and prospective client, vendor, supplier, and employee lists, contacts, and information; financial, personnel, and information system information and applications; and any other information concerning the business of the Employer that is not disclosed to the general public or known in the industry, except with the express written consent of the Employer.  All confidential information, including all copies, notes regarding, and replications of such confidential information will remain the sole property of the Employer, as applicable, and must be returned to the Employer immediately upon your termination from the Employer.

		
	2.
	Nonsolicitation of Customers, Vendors, and Suppliers.  You specifically acknowledge that the confidential information described above includes confidential data pertaining to existing and prospective customers, vendors, and suppliers of the Employer, that such data is a valuable and unique asset of the business of the Employer, and that the success or failure of their businesses depends upon their ability to establish and maintain close and continuing personal contacts and working relationships with such existing and prospective customers, vendors, and suppliers and to develop proposals which are specific to such existing and prospective customers, vendors and suppliers.  Therefore, You agree that for 12 months following the date of your termination from the Employer, You will not (except on behalf of the Employer, or with the Employer’s express written consent) solicit, approach, contact or attempt to solicit, approach, or contact, either directly or indirectly, on your own behalf or on behalf of any other person or entity, any existing or prospective customers, vendors, or suppliers of the Employer with whom You had contact or about 

A-1

whom You gained confidential information during your employment with the Employer for the purpose of obtaining business or engaging in any commercial relationship that would be competitive with the Business of the Employer (as defined below) or cause such customer, supplier, or vendor to materially change or terminate its business or commercial relationship with the Employer.  This provision is in addition to, and not in lieu of, similar provisions in any other agreement(s) between You and the Employer.

		
	3.
	Nonsolicitation of Employees.  You specifically acknowledge that the confidential information described above also includes confidential data pertaining to employees and agents of the Employer, and You further agree that for 12 months following your termination of employment, You will not, directly or indirectly, on your own behalf or on behalf of any other person or entity, solicit, contact, approach, encourage, induce or attempt to solicit, contact, approach, encourage, or induce any of the employees or agents of the Employer to terminate their employment or agency with the Employer.

		
	4.
	Noncompetition.  You covenant and agree that for 12 months following your termination of employment, You will not, in any geographic market in which You worked or had direct or indirect responsibilities on behalf of the Employer, and for any business line or lines for or other functions for which You had direct or indirect responsibility for any sales, marketing, operational, logistical, or other management or oversight responsibility, engage in or carry on, directly or indirectly, as an owner, employee, agent, associate, consultant, partner, or in any other capacity, a business competitive with the Business of the Employer.

		
	a.
	The “Business of the Employer” shall mean any business or activity involved in grocery or general  merchandise retailing and supply chain logistics, including but not limited to grocery distribution, business-to-business portal, retail support services, and third-party logistics, of the type provided by the Employer, or presented in concept to You by the Employer at any time during your employment with the Employer, for which you had or were proposed to have any business or business line or operational responsibilities.

		
	b.
	To “engage in or carry on” shall mean to have ownership in such business (excluding ownership of up to 1% of the outstanding shares of a publicly traded company) or to consult, work in, direct, or have responsibility for any area of such business, including but not limited to operations, logistics, sales, marketing, finance, recruiting, sourcing, purchasing, information technology, or customer service.

		
	5.
	Remedies.  You and the Employer each acknowledges and agrees that the Employer will suffer irreparable harm from a breach by You of any of the covenants or agreements contained in Section 1, 2, 3, or 4 of this Exhibit A.  You further acknowledge that the restrictive covenants set forth in Section 4 of this Exhibit A are of a special, unique, and extraordinary character, the loss of which cannot be adequately compensated by monetary damages.  You agree that the terms and provisions of Sections 1, 2, 3, and 4 of this Exhibit A are fair and reasonable and are reasonably required for the protection of the Employer in whose favor such restrictions operate.  You acknowledge that, but for your agreements to be bound by the restrictive covenants set forth in this Exhibit A, the Employer would not have entered into the Letter Agreement.  In the event of an alleged or threatened breach by You of any of the provisions of Section 1, 2, 3, or 4 of this Exhibit A, 

A-2

the Employer or its successors or assigns may, in addition to all other rights and remedies existing in its or their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive or other equitable relief in order to enforce or prevent any violations of the provisions hereof.

		
	6.
	Mandatory Arbitration.  You covenant and agree that any controversy or claim arising out of or relating to your employment relationship with the Employer or the termination of that relationship must be submitted for final and binding resolution by a private and impartial arbitration, under the Employment Dispute Resolution rules of the American Arbitration Association.  This includes, but is not limited to, any claim that could be asserted in court or before an administrative agency or claims for which You have an alleged cause of action, including without limitation claims for breach of any contract or covenant (express or implied); tort claims; claims for discrimination, harassment or retaliation under local, state or federal statutes; claims for wrongful discharge; claims for violations of the Family and Medical Leave Act or any other local, state, federal or other governmental law, statute, regulation, and whether based on statute or common law.  This includes claims against the Employer, any of its affiliated or subsidiary entities, or its individual officers, directors, or employees.

This does not include the following claims:
		
	a.
	claims for workers compensation or unemployment benefits;

		
	b.
	claims under the National Labor Relations Act, as amended;

		
	c.
	claims based on current or future employee benefit and/or welfare plans that contain a dispute resolution procedure therein; or

		
	d.
	claims by the Employer for injunctive or other equitable relief based on your alleged breach of covenants under this Exhibit A.

The burden of proof at arbitration shall be on the party seeking relief.  Each party shall bear its own costs and attorneys’ fees.  In reaching a decision, the arbitrator shall apply the governing substantive law applicable to the claims, causes of action and defenses asserted by the parties.  The arbitrator shall have the power to award all remedies (including attorneys’ fees) that could be awarded by a court or administrative agency in accordance with the governing and applicable substantive law.
However, you agree that, if your employment with the Employer is terminated by the Employer prior to a Change of Control (as defined in the Supervalu COC Agreement or Save-A-Lot COC Agreement (as each such term is defined in the Letter Agreement), as applicable), any severance payments payable in connection with such termination will be as set forth in the Letter Agreement and not the Supervalu COC Agreement or Save-A-Lot COC Agreement, as applicable, unless such termination is an “Anticipatory Separation,” as defined in the Supervalu COC Agreement or Save-A-Lot COC Agreement, as applicable.
You also agree that the arbitration procedure described herein does not alter your status as an “at-will” employee, meaning both you and the Employer have the right to terminate employment at any time and for any reason.

A-3

		
	7.
	Governing Law.  You agree that the internal law, and not the law of conflicts, of the State of Minnesota, shall govern all questions concerning the validity, construction and effect of this Exhibit A.  The exclusive venue for any arbitration or court proceeding relating to this Agreement shall be a state court or arbitration forum, as required above, within the state of Minnesota unless the parties mutually agree to a different venue.  You consent to personal jurisdiction in Minnesota.

A-4

EXHIBIT B
FORM OF RELEASE

AGREEMENT AND GENERAL RELEASE

This Agreement and General Release (“Release”) is entered into between SUPERVALU INC., and all its past and present subsidiary, related, and affiliated companies including [IDENTIFY SPECIFIC AFFILIATE] (the “Company”) and [NAME] (the “Executive”).

The Executive and the Company understand that all words used in this Release have their plain meanings in ordinary English. The Executive and the Company agree as follows:

		
	1. 
	Termination Date. On [DATE] (the “Termination Date”), the Executive’s employment, as an employee and officer of the Company and any of its affiliates, shall terminate.

		
	2. 
	Severance Pay; Time and Form of Payment.

a. In accordance with the terms of the Executive and Officer Severance Plan, the Company will provide to the Executive the following payments and benefits:

i. [LIST AMOUNTS PURSUANT TO THE AGREEMENT PROVISIONS]

b. The consideration referenced in this Section 2 shall be deemed income to the Executive solely in the year in which it is received by the Executive. The payments and benefits provided under this Section 2 shall be in full satisfaction of the Company’s obligations to the Executive upon [his/her]termination of employment. Subject to the aforesaid, the Executive shall not be entitled to any other payments or benefits of any kind (or other damages in respect of a termination or claim for breach of this Release) beyond those specified in this Section 2, including but not limited to under any company bonus, stock compensation, incentive, or benefit plan or agreement; nor will the consideration referenced in this Section 2 entitle the Executive to any increased retirement, 401(k) benefits or matching benefits, or deferred compensation or any other benefits.

c. With the exception of the Executive’s continued participation in the Company’s medical, dental, and life insurance plans as set forth in the Severance Plan, the Executive’s current participation in all other Company benefit plans will end on [DATE]. Appropriate continuation and/or conversion documents for these benefit plans, if any, shall be provided by the Company to the Executive.

d. Required taxes will be withheld from payments under this Release, and appropriate tax documents will be issued reflecting amounts received pursuant 

-1

to this Release. Severance pay is not eligible for contributions to the 401(k) plan, flexible spending account plan or any deferred compensation plan.

		
	3. 
	Tax Consequences of Severance Payment. Executive agrees that 100% of the amounts referenced in Section 2 will be treated as income subject to W-2 reporting and withholdings pursuant to state and federal laws. It is understood that the Company makes no representations or warranties with respect to the tax consequences of the payments referenced in Section 2. Executive agrees to pay any amount that may be determined to be due and owing by [him/her] as taxes, interest, penalties, or other government-required payments, arising out of the payments set forth in Section 2, for which [s]he is solely responsible. Executive further agrees that [s]he shall hold the Company harmless against, and indemnify the Company for, any and all claims, demands, deficiencies, judgments or recoveries by the Internal Revenue Service, or any other taxing authority or other governmental agency (whether federal, state or local), which may be made against the Company to withhold any portion of the amounts referenced in Section 2 or otherwise pay taxes in connection with the amounts referenced in Section 2, including amounts paid by the Company as taxes, attorneys’ fees, fines, penalties, interest or otherwise.

		
	4. 
	Release of the Company. In exchange for the aforementioned payment and benefits described in Section 2, the Executive agrees as follows: 

a. “Released Parties” means SUPERVALU INC. and all its past and present subsidiary, related, and affiliated companies; all present or past officers, directors, employees, agents, representatives, successors and assigns thereof; and any person who acted on behalf of or on instructions of SUPERVALU INC.

b. By this Release, the Executive voluntarily waives and releases any and all liabilities, debts, promises, agreements, costs or expenses (including but not limited to attorneys’ fees and/or dispute resolution costs), damages (including but not limited to liquidated damages or punitive damages), causes of action, judgments or claims of any kind or description, known or unknown, suspected or unsuspected, fixed or contingent, which the Executive ever had, now has or may have against the Released Parties arising from or related to the Executive’s employment with and/or Termination from the Company or any other act or omission occurring before the Executive’s execution of this Release. This release includes, but is not limited to, any claims the Executive may have for wages, commissions, penalties, vacation pay or other benefits; breach of contract or promise; promissory estoppel; fraud or misrepresentation; violation of public policy; discrimination or retaliation, including but not limited to any claim arising under, or based upon, the Family Medical Leave Act, the Age Discrimination in Employment Act, as amended, the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, sections 1981 through 1988 of Title 42 of 

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the United States Code, as amended, the Rehabilitation Act of 1973; the Americans with Disabilities Act, [INSERT STATE LAW], or other federal, state, or local civil rights laws or common laws; defamation, including libel, slander, and self-publication defamation; infliction of emotional distress; breach of the covenant of good faith and fair dealing; negligence; wrongful termination of employment; any other wrongful or unlawful acts, omissions, statements or practices; and/or any other claim of any kind whatsoever, including but not limited to any claim for damages or declaratory or injunctive relief of any kind.

c. The Executive further acknowledges and agrees that the Executive shall not institute nor authorize any other party, whether governmental or otherwise, to institute any proceeding against any of the Released Parties based upon any claims of any kind or description which the Executive has released under Section 4.b. If any agency or court assumes jurisdiction of any complaints, claims, or actions against any of the Released Parties by or on behalf of the Executive arising out of any act or omission occurring before the Executive’s execution of this Release, the Executive will request that the agency or court withdraw the matter or dismiss the matter in its entirety, with prejudice, and will execute all necessary documents to effect such withdrawal and/or dismissal.

d. Nothing in this Release is intended to or does: (1) impose any condition, penalty, or other limitation affecting the Executive’s right to challenge this Release; (2) constitute an unlawful release or waiver of any of the Executive’s rights under any laws; (3) waive or release any claim or right that the Executive has as a SUPERVALU shareholder, or as a participant in SUPERVALU Employment Stock Ownership Plan, 401(k) plan, pension plan or profit sharing plan; (4) waive or release any pending claim that the Executive has for workers’ compensation benefits or pending or future claims for benefits under the Company’s health and welfare benefit plans or qualified retirement plans; (5) waive or release any claim that arises after this Release is signed; (6) waive or release the Executive’s right to file an administrative charge with any local, state, or federal administrative agency with jurisdiction to receive and investigate the Executive’s claims under applicable law, although the Executive does waive and release the Executive’s right to recover any monetary or other damages under such applicable law, including but not limited to compensatory damages, punitive damages, liquidated damages, or attorneys’ fees and costs; or (7) prevent or interfere with the Executive’s ability or right to provide truthful testimony, if under subpoena or court order to do so, or respond as otherwise provided by law.

		
	5. 
	ADEA [& MHRA OR OTHER APPLICABLE STATE LAW] Compliance.

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This Release includes, but is not limited to, a release of claims arising under the Age Discrimination in Employment Act (“ADEA”) [and the Minnesota Human Rights Act (“MHRA”), Minn. Stat. § 363A, et seq]. The Executive has been informed of [his/her] right to review and consider this Agreement & Release for 21-calendar days, if the Executive so chooses, and understands that [s]he may sign this Release before the 21-day period has ended, but if the Executive does so, the Executive is waiving and releasing any rights to the full 21-day period. In no case may the Executive sign the Release before close of business on the Executive’s last day of work. The Executive further agrees and acknowledges that (a) the Executive has read and understands this Release in its entirety; (b) the Company advises the Executive to consult with an attorney prior to executing this Release; (c) the Executive’s waiver of rights under this Release is knowing and voluntary as required under the ADEA; and (d) nothing contained in this Release waives any claim that may arise after the date of its execution. The Executive may rescind this Release insofar as it extends to potential claims under the ADEA [and MHRA] by providing written notice to the Company within fifteen/seven (15/7) calendar days after the date of [his/her] signature below. To be effective, the rescission must be in writing and delivered to the Company either by hand or by mail within the fifteen/seven (15/7)-day period. If delivered by mail, the rescission must be: (i) postmarked within the fifteen/seven (15/7)-day period; properly addressed to Michele Murphy, 7075 Flying Cloud Drive, Eden Prairie, Minnesota 55344; and (iii) sent by certified mail, return receipt requested. In the event of such a rescission, all of the Company’s obligations under the Release shall be null and void, but the cessation of the Executive’s employment will be unaffected.

		
	6. 
	Confidentiality. The Executive acknowledges that the Executive has received access to Confidential Information (as defined below) about the Company or its affiliates, that this Confidential Information was obtained or developed by the Company or its affiliates at great expense and is zealously guarded by the Company and its affiliates from unauthorized disclosure, and that the Executive’s possession of this special knowledge is due solely to the Executive’s employment with the Company. In recognition of the foregoing, the Executive will not, at any time during or following Termination of employment for any reason, disclose, use, or otherwise make available to any third party, any information relating to the Company’s or affiliates’ business, products, services, customers, vendors, or suppliers; trade secrets, data, specifications, developments, inventions and research activity; marketing and sales strategies, information and techniques; long and short term plans; existing and prospective client, vendor, supplier, and employee lists, contacts, and information; financial, personnel, and information system information and applications; and any other information concerning the business of the Company or its affiliates which is not disclosed to the general public or known in the industry (the “Confidential Information”), except with the express written consent of the Company. All Confidential Information, including all copies, notes regarding, and replications of such Confidential Information will remain the sole property of the Company, as applicable, and must be returned to the Company immediately upon the ending of the Executive’s employment. This provision is in addition to, and not in lieu of, similar provisions in any other agreement(s) between the Executive and the Company.

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	7. 
	Non-Solicitation of Existing or Prospective Customers, Vendors, or Suppliers. The Executive specifically acknowledges that the Confidential Information described in Section 6 above includes confidential data pertaining to existing and prospective customers, vendors, and suppliers of the Company, that such data is a valuable and unique asset of the business of the Company, and that the success or failure of the Company’s businesses depends upon its ability to establish and maintain close and continuing personal contacts and working relationships with such existing and prospective customers, vendors, and suppliers and to develop proposals which are specific to such existing and prospective customers, vendors and suppliers. Therefore, the Executive agrees that for twelve (12) months following the Termination Date, the Executive will not (except with the Company’s express written consent) solicit, approach, contact or attempt to solicit, approach, or contact, either directly or indirectly, on the Executive’s own behalf or on behalf of any other person or entity, any existing or prospective customers, vendors, or suppliers of the Company with whom the Executive had contact or about whom the Executive gained Confidential Information during the Executive’s employment with the Company for the purpose of obtaining business or engaging in any commercial relationship that would be competitive with the “Business of the Company” (as defined below) or cause such customer, supplier, or vendor to materially change or terminate its business or commercial relationship with the Company. This provision is in addition to, and not in lieu of, similar provisions in any other agreement(s) between the Executive and the Company.

		
	8. 
	Non-Solicitation of Employees. The Executive specifically acknowledges that the Confidential Information described above also includes confidential data pertaining to employees and agents of the Company, and the Executive further agrees that for twelve (12) months following the Termination Date, the Executive will not, directly or indirectly, on the Executive’s own behalf or on behalf of any other person or entity, solicit, contact, approach, encourage, induce or attempt to solicit, contact, approach, encourage, or induce any of the employees or agents of the Company to terminate their employment or agency with the Company.

		
	9. 
	Noncompetition. You covenant and agree that for 12 months following your termination of employment, You will not, in any geographic market in which You worked or had direct or indirect responsibilities on behalf of the Employer, and for any business line or lines for or other functions for which You had direct or indirect responsibility for any sales, marketing, operational, logistical, or other management or oversight responsibility, engage in or carry on, directly or indirectly, as an owner, employee, agent, associate, consultant, partner, or in any other capacity, a business competitive with the Business of the Employer.

a. The “Business of the Employer” shall mean any business or activity involved in grocery or general merchandise retailing and supply chain logistics, including but not limited to grocery distribution, business-to-business portal, retail support services, and third-party logistics, of the type provided by the Employer, or presented in concept to You by the Employer at any time during 

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your employment with the Employer, for which you had or were proposed to have any business or business line or operational responsibilities.

b. To “engage in or carry on” shall mean to have ownership in such business (excluding ownership of up to 1% of the outstanding shares of a publicly traded company) or to consult, work in, direct, or have responsibility for any area of such business, including but not limited to operations, logistics, sales, marketing, finance, recruiting, sourcing, purchasing, information technology, or customer service.

		
	10. 
	Non-Disparagement. The Executive agrees [s]he will not make, cause to be made, issue, release, authorize or confirm any comments or statements concerning the Company, either in writing, electronically, orally, or otherwise that (a) are disparaging or defamatory or portray the Company in a negative light, (b) in any way impair the reputation, goodwill, or legitimate business interest of the Company; or (c) disparage the employees, agents, officers, directors, pricing, products, policies, or services of the Company. This will apply, without limitation, to any (i) member of the general public; (ii) social media websites including but not limited to Facebook, LinkedIn Twitter, My Space, Google Plus, YouTube, etc.; (iii) current, former or prospective employees and agents of the Company; (iv) current or future customers, licensees or vendors, referral sources; or (v) members of the press or other media. Notwithstanding the above, nothing herein shall preclude the Executive from testifying under oath under power of a subpoena.

		
	11. 
	Remedies for Breach. Any breach by the Executive of the covenants in Sections 6-10 will likely cause irreparable harm to the Company or its affiliates for which money damages could not reasonably or adequately compensate the Company or its affiliates. Accordingly, the Company or any of its affiliates shall be entitled to all forms of injunctive relief (whether temporary, emergency, preliminary, prospective, or permanent) to enforce such covenants, in addition to damages and other available remedies, and the Executive consents to the issuance of such an injunction without the necessity of the Company or any such affiliate posting a bond, or if a court requires a bond to be posted, with a bond of no greater than $500 in principal amount. In the event that injunctive relief or damages are awarded to the Company or any affiliate for any breach by the Executive of the covenants contained in Sections 6-10, the Executive further agrees that the Company shall be entitled to recover its costs and attorney’s fees necessary to obtain such remedies. In addition, the Executive agrees that upon the Executive’s breach of any covenant in Sections 6-10, all unexercised options issued under any stock option plans of the Company will immediately terminate and the Company shall have the right to exercise any and all of the rights described above.

		
	12. 
	Advice of Counsel. The Executive has carefully read and understands all the provisions of this Release and understands that important rights are being released. The Executive acknowledges that the Company has advised the Executive to consult with counsel before signing this Release, and that [s]he has done so.

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	13. 
	Agreement to Cooperate. The Executive agrees to cooperate with the Company in regard to any legal matter, litigation, pre-litigation, administrative, governmental, or other judicial proceeding, inquiry, or investigation involving the Company and concerning any matters as to which the Executive was involved or had knowledge during the Executive’s employment. This includes, but is not limited to, providing the Company with information or providing testimony in any proceeding. The Company shall reimburse the Executive for reasonable out-of-pocket expenses incurred by the Executive in connection with such undertakings, and shall compensate the Executive for time involved at an hourly rate based on the Executive’s final base salary at time of [his/her] Termination Date.

		
	14. 
	Return of Property. The Executive acknowledges that [s]he has returned all Company property in the Executive’s possession prior to the date hereof including, but not limited to, equipment, ID cards, Corporate Cards, all copies of customer lists, forms, plans, documents, systems designs, product features, technology, other written and computer materials belonging to the Company or its clients. The Executive will not at any time copy or reproduce any of the Company’s or its clients’ property. The Executive further understands that all designs, improvements, writings and discoveries made by the Executive during employment that relate to the Company’s business is the exclusive property of the Company and the Executive cannot use, sell or give them to anyone else.

		
	15. 
	Terms of Severance Agreement and General Release Confidential. The Executive shall keep the terms of this Release strictly confidential. The Executive may disclose the terms to [his/her] attorney, tax advisor and spouse/domestic partner (with any such person required to agree to be subject to the confidentiality requirements of this Section 15), but the terms otherwise shall not be disclosed by the Executive to third persons unless required by law.

		
	16. 
	Dispute Resolution.

		
	a. 
	ERISA §503 Procedure. The Executive and the Company agree that any controversy, claim or dispute arising out of or relating to this Release or relating to the Executive’s employment with the Company or the Termination/end of such relationship (including, but not limited to, any dispute concerning the amount of compensation due to Executive), shall be subject to a claims adjudication process analogous to the ERISA §503 process set forth in the current SUPERVALU INC. Executive & Officer Severance Pay Plan. Notwithstanding the foregoing, in any litigation or arbitration regarding such matter, deference shall not be afforded to any determination that is made in whole or in part under that process.

		
	b. 
	Arbitration Process. Any controversy, claim or dispute which is not resolved after exhausting the process set forth in Section 16.a., excluding claims by the Company relating to Executive’s breach of any of Executive’s covenants set forth in Sections 6-10 herein, shall be resolved by final and binding arbitration 

-7

under the Employment Dispute Resolution rules and auspices of the American Arbitration Association, or other neutral arbitrator and rules as mutually agreed to by the Executive and the Company. Executive and the Company agree that such claims may be brought in an appropriate administrative forum, but at the point at which Executive or the Company seeks a judicial forum to resolve the matter, the agreement for binding arbitration becomes effective, and Executive and the Company hereby knowingly and voluntarily waive any right to have any such dispute tried and adjudicated by a judge or jury. The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. § 1, et seq. The place of arbitration shall be Minneapolis, Minnesota, or other location mutually agreed to by the Executive and the Company. The arbitrator shall apply the law as established by decisions of the applicable federal and state courts in deciding the merits of claims and defenses. The arbitrator is required to state, in writing, the reasoning on which the award rests.

		
	c. 
	Judicial Enforcement. The foregoing not to the contrary, the Company may seek to enforce the Executive’s covenants set forth in Sections 6-10 above in any court of competent jurisdiction. Executive and the Company agree that any award rendered by the arbitrator shall be final and binding and that judgment upon the final award may be entered in any court having jurisdiction thereof. The arbitrator may grant any remedy or relief that the arbitrator deems just and equitable, including any remedy or relief that would have been available to Executive, the Company or any of its affiliates had the matter been heard in court. All expenses of the arbitration, including the required travel and other expenses of the arbitrator and any witnesses, and the costs relating to any proof produced at the direction of the arbitrator, shall be borne equally by Executive and the Company unless otherwise mutually agreed or unless the arbitrator directs otherwise in the award. The arbitrator’s compensation shall be borne equally by Executive and the Company unless otherwise mutually agreed or unless the law provides otherwise.

		
	d. 
	Attorneys’ Fees. The Executive and the Company each shall pay their own attorneys’ fees for any dispute addressed by Section 16.

		
	e. 
	Injunction and Finality. Executive agrees that any breach of the covenants contained in Sections 6-10 would irreparably injure the Company. Accordingly, Executive agrees that the Company may, in addition to pursuing any other remedies it may have in law or in equity, cease making any payments or providing any benefits otherwise required by this Release and obtain an injunction against Executive from any court having jurisdiction over the matter restraining any further violation of this Agreement by Executive; provided, however, that the Company may not cease making any payments required by this Agreement until a court or arbitrator(s) having jurisdiction 

-8

over the matter has made a final non-appealable determination on the merits of such action in the Company's favor.

		
	17. 
	409A. [Set forth compliance].

		
	18. 
	No Assignment. The terms and conditions of this Release are personal to the Executive and may not be assigned to any person or entity without the prior written consent of the Company.

		
	19. 
	Entire Agreement. Except for any confidentiality, non-competition or nonsolicitation provisions or similar provisions in other agreements between the Company and the Executive that continue to be applicable after the Executive’s employment ends, this Release is the entire agreement between the Executive and the Company concerning the Executive’s employment and the Termination of the Executive’s employment and it supersedes all other agreements and arrangements relating to severance or end of employment payments. It is the Executive’s intent to be legally bound by the terms of the Release. No amendments, modifications or waivers of this Release shall be binding unless made in writing and signed by both the Executive and the Company.

		
	20. 
	No Waivers. No waiver by either party, at any time, of any breach by the other party of, or of compliance by the other party with, any condition or provision of this Release to be performed or complied with by such other party shall be deemed a waiver of any similar or dissimilar provision or condition of this Release or any other breach of or failure to comply with the same condition or provision at the same time or at any prior or subsequent time.

		
	21. 
	Severability. The Executive and the Company agree that if any part, term, or provision of these Terms and Conditions should be held to be unenforceable, invalid, or illegal under any applicable law or rule, the offending term or provision shall be applied to the fullest extent enforceable, valid, or lawful under such law or rule, or, if that is not possible, the offending term or provision shall be struck and the remaining provisions of these Terms and Conditions shall not be affected or impaired in any way. To the extent permitted by applicable law, the Executive and the Company waive any provision of law that renders any provision of this Release invalid or unenforceable in any respect. However, if the Executive’s release of claims set forth in this Release is held invalid, illegal, or unenforceable, the Company may void this Agreement.

		
	22. 
	Governing Law. This Release will be governed by the laws of the State of Minnesota, without giving effect to its conflict of laws rules. Any action brought by Executive or the Company with respect to this Release shall be brought and maintained in a court of competent jurisdiction in the State of Minnesota.

		
	23. 
	Construction. Executive acknowledges and agrees that no promises or representations have been made to induce [him/her] to sign this Release other than as expressly set forth herein and that [s]he has signed this Release as a free and voluntary act. Further, this 

Release has been entered into after review of its terms by the Executive and [his/her] counsel. Therefore, there shall be no strict construction for or against either party. No ambiguity or admission shall be construed against the Company on the grounds that this Release or any of its provisions was drafted or prepared by the Company.

IN WITNESS WHEREOF, the parties, the Executive and SUPERVALU INC., hereby execute this Agreement and General Release.

Dated:                                                                                                                       
                                        [NAME]

Dated:                                               
                                                                            SUPERVALU INC.

                                            
      By:    [Name]
      Its:     [Title]

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