Document:

Exhibit 10.11

 

Turning Point Brands, Inc. 

5201 Interchange Way 

Louisville, KY 40229

 

November 23, 2015

 

Mark Stegeman 

13329 Ridgemoor Drive 

Prospect, KY 40059

 

Dear Mr. Stegeman:

 

As discussed, Turning
Point Brands, Inc., together with any successor thereto (“Turning Point” and, together with its applicable employing
subsidiaries, the “Company”), agrees to continue to retain your services on the terms, provisions and conditions
set forth in this employment letter (this “Agreement”). If you find these terms, provisions and conditions acceptable,
please sign this Agreement where indicated and return it to me as soon as possible. This Agreement is contingent upon Turning Point
completing the initial public offering of its common stock (the “IPO”) on or before July 1, 2016 (such actual
date of the IPO, the “Effective Date”). As of the Effective Date, this Agreement shall supersede and replace,
in its entirety, that certain employment agreement, dated August 14, 2015, by and between you and Turning Point and certain of
its subsidiaries (the “Prior Agreement”), and you shall no longer have any rights or benefits thereunder. In
the event the IPO does not occur on or before July 1, 2016, then this Agreement shall be void, and the Prior Agreement shall remain
in full force and effect in accordance with its terms.

 

Position: Unless and until
changed by the Company, your job position and title will be Senior Vice President and Chief Financial Officer of the Company, reporting
to the Chief Executive Officer of the Company.

 

Duration of Employment: You
will continue to be employed by the Company for an initial term of one year, commencing on the Effective Date and ending on the
one-year anniversary of the Effective Date (the “Initial Term”), and your employment period will be automatically
renewed at the expiration of the Initial Term, or upon the applicable anniversary thereof, whichever applicable, unless either
you or the Company provides the other with a written notice of non-renewal at least 60 days prior to the applicable expiration
date (the Initial Term and any renewal period(s) together, the “Term”).

 

Location of Employment: You
will continue to be employed by the Company based out of Louisville, Kentucky.

 

Salary: Your annual base
compensation (“Salary”) will be $350,000, per calendar year, unless adjusted by the Board of Directors of Turning
Point (the “Board”) in its sole discretion. Salary will be disbursed in periodic installments throughout the
year in accordance with the Company’s regular payroll cycle and policies.

 

    	 

    	 

    

Annual Bonus: You may be
eligible to earn an annual bonus of up to 50% of your Salary pursuant to the terms and conditions of the Company’s annual
bonus award program as may be in effect from time to time. Eligibility for any annual bonus will be based on your achievement of
designated performance metrics as set forth in the Company’s annual bonus award program. Such eligibility and the amount,
if any, of the annual bonus shall be determined by the Board in its sole discretion.

 

Compensation Review: The
Board intends to review your compensation on an annual basis, with the first such review to occur in or around March 2017.

 

Annual Paid Vacation Allowance:
Three weeks, subject to the terms and conditions herein and in the Company’s vacation policies as in effect from time to
time.

 

Severance Benefits Period:
A period of 12 months following a termination of your employment with the Company and its subsidiaries by the Company
without Cause or resignation of your employment with the Company and its subsidiaries by you for Good Reason, other than in the
event of a Change of Control or if such severance occurs within 12 months after the Effective Date. If you resign for Good Reason
or are terminated by the Company without Cause within one year following a Change of Control or within 12 months following the
Effective Date, the Severance Benefits Period shall be a period of 24 months following such termination of employment.

 

Restricted Period: The Term
plus an additional 12 months following any Separation, unless such Separation triggers a Severance Benefit Period of
24 months, in which case the Restricted Period shall continue for 24 months following the Term.

 

Stock Incentives: As soon
as reasonably practicable after the Effective Date, the Company intends to recommend to the Board that it award you a number of
options to acquire Turning Point stock with a grant date fair value (as determined under FASB ASC Topic 718) equal to $500,000.
The stock options would be granted under the terms of the Turning Point Brands, Inc. 2015 Equity Incentive Plan, would have an
exercise price per share equal to that fair market value on the grant date, would vest 50% upon grant, and 25% more on each of
the 1st and 2nd anniversaries of grant, and will remain exercisable until the 10th anniversary of grant, unless your employment
ends sooner. Separate plan and grant documents for stock incentives will be provided to you when the grant is actually made. Our
stock incentive program may be authorized, amended or discontinued by the Board in its sole discretion. Nothing in this Agreement
shall have any effect on any existing agreements regarding the Company’s equity incentive programs in which you participate,
have participated or are eligible to participate, including without limitation restricted stock, options, common stock, or any
other equity instrument (“Equity Incentive Programs”).

 

Additional Benefits: You
will remain entitled to participate in the medical, dental and 401(k) savings benefit plans offered to the Company’s
employees pursuant to the terms and conditions of each such benefit plan in effect from time to time, which may be authorized,
amended or discontinued by the Company in its sole discretion. The Company will provide a description of the group benefit programs
and enrollment forms.

 

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Additional Terms and Conditions

 

1.Your Representations: You
represent that you are eligible to accept and continue employment, and that you have not previously been, are not currently and
will not be subject to any agreement or obligation which would bar or limit your ability to perform your duties and responsibilities
with the Company. You also represent that all information you have submitted to the Company as part of any application process
and your prior employment with the Company, including without limitation your resume, application for employment and employment
records, is true and complete.

 

2.Duties and Responsibilities:
You will be responsible for carrying out all duties and responsibilities associated with your Position, as set forth in a separate
Job Description or similarly styled document provided to you, and as otherwise directed by the Company, which may include travel
as necessary consistent with your prior employment with the Company. Additional responsibilities and necessary travel may be added,
or your Position changed, at the Board’s sole discretion, from time to time, without written modification of this Agreement.
You will be subject to, and agree to abide by, such rules, policies and procedures as the Company maintains (including, but not
limited to, the Turning Point Brands, Inc. Code of Business Conduct and Ethics (as amended from time to time, the “Code
of Conduct and Ethics”)) or may from time to time establish with respect to executives, employees in general, standard
operating procedures, business operations, etc.

 

3.Use of Vacation: Your Annual
Paid Vacation Allowance may be used at any time, subject to the Company’s policies regarding vacations. Vacation days will
not carry over from one year to the next, and no compensation will be paid for unused vacation (except as may be required by law
upon separation from employment).

 

4.Separation from Employment:
You will, upon separation from employment with the Company and its subsidiaries for any reason (such as termination, resignation,
death or disability) (each, a “Separation”), receive such salary and other benefits as have accrued as of the
date and time of Separation, and as may otherwise be required by law, as well as such Salary, bonuses and benefits as may be due
and owing under this Agreement. Notwithstanding the forgoing, in the event that the Company determines in good faith that your
Separation is not considered a “separation from service” under Treasury Regulation § 1.409A-1(h) because (a) you
have not separated but have changed status to a part time employee, consultant or independent contractor performing more than 20%
of the average level of bona fide services (whether as an employee, consultant or independent contractor) you performed over the
immediately preceding 36-month period, or (b) you are continuing employment with another entity that is considered a
single entity with the Company (“Employer Group”) under Section 414(b) or (c) of the Internal Revenue
Code of 1986, as amended (the “Code”), any Severance Benefits to which you may be entitled under other provisions
of this Agreement shall begin immediately when your status changes such that the Company determines that you have “separated
from service” under Treasury Regulation § 1.409A-1(h). For
this purpose, service performed as an employee or as an independent contractor is counted, except that service as a member of the
board of directors of a member of the Employer Group is not counted unless termination benefits under this Agreement are aggregated
for purposes of Section 409A of the Code with benefits under any other Employer Group plan or agreement in which you also participate
as a director.

 

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Notwithstanding any provisions of this
Agreement to the contrary, if you are a “specified employee” (within the meaning of Section 409A of the Code and
determined pursuant to procedures adopted by the Company) at the time of your separation from service and if any portion of the
payments or benefits to be received by you upon separation from service would be considered deferred compensation under Section 409A
of the Code, amounts that would otherwise be payable pursuant to this Agreement during the six-month period immediately following
your separation from service shall instead be paid or made available, with interest at the Wall Street Journal prime rate as of
the date of separation from service, on the earlier of (i) the first business day of the seventh month following the date
of your separation from service or (ii) your death.

 

4.1Resignation:
You may resign at any time for any reason. In such event, the Company may, in the Board’s sole discretion, choose to relieve
you of your duties prior to the expiration of the notice period and pay you two weeks’ compensation or your notice period,
whichever is shorter. If you resign (other than for Good Reason), you shall not be entitled to receive the Severance Benefits.
If you resign for Good Reason, you shall be entitled to receive all Severance Benefits, provided that you have executed and delivered
a Release and Severance Agreement in the form of Exhibit A attached hereto (as may be modified by the Company due to
subsequent changes in the law), and all applicable revocation periods
relating to the release expire, within 55 days following the date of such termination of employment.

 

4.2Good Reason:
As used herein, the term “Good Reason” means any of the following without your consent: (i) a material
diminution in your duties, position, authorities or responsibilities; (ii) the failure by the Company to pay or provide to
you, within 30 days after receipt of a written demand therefor, any material amount of compensation or expense reimbursement
or any benefit which is due, owing and payable pursuant to the terms hereof or of any applicable plan, program, arrangement or
policy; (iii) a reduction in your Salary, other than a reduction generally applicable to similarly situated executives of the Company;
(iv) a material reduction in your employee benefits, other than a reduction generally applicable to similarly situated executives
of the Company; (v) the breach in any material respect by the Company of any of its other obligations or agreements set forth
herein; (vi) the Company requires you to be based at any office or location more than 50 miles from the Location of Employment,
or (vii) the Company gives notice that it does not wish to renew this Agreement upon expiration of the Term.
A termination for Good Reason shall not occur unless: (x) you provide the Company with a written notice detailing the specific
circumstances alleged to constitute Good Reason within 90 days after the first occurrence of such circumstances, (y) the Company
fails to cure such Good Reason event(s) within 30 days following receipt of such notice to cure such circumstances in all material
respects, and (z) following the Company’s failure to cure during the 30 day cure period, you terminate employment no later
than 90 days after the expiration of such period.

 

4.3Change of
Control: As used herein, the term “Change of Control” shall mean:

 

(a)any sale, lease,
exchange or other disposition (in one transaction or a series of related transactions) of all or substantially all of the assets
of Turning Point, other than a transaction or series of transactions in which the transferee is controlled by the Management Group;

 

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(b)a majority of
the Board shall consist of Persons who are not Continuing Directors, as the case may be; or

 

(c)(i) any Person
or group of related Persons (other than the Management Group), for purposes of Section 13(d) of the Exchange Act, becomes the beneficial
owner of the power, directly or indirectly, to vote or direct the voting of securities having more than fifty percent (50%) of
the ordinary voting power for the election of directors of Turning Point or (ii) any Person, together with its Affiliates, becomes
the owner, directly or indirectly, of more than sixty-six and two-thirds percent (66 2/3%) of the economic interests of Turning
Point.

 

For the avoidance of
doubt, the consummation of the transactions contemplated in connection with the IPO will not constitute a Change of Control.

 

“Affiliate”
shall mean, with respect to a Person, any entity (i) that, directly or indirectly, is controlled by, controls or is under common
control with, the Person or (ii) in which the Person has a significant equity interest.

 

“Continuing
Director” means, as of any date of determination, any Person who (a) was a member of the Board on the Effective Date
or (b) was nominated for election or elected to the Board with the affirmative vote of a majority of the Continuing Directors who
were members of such Board at the time of such nomination or election (other than as a result of any actual or threatened proxy
contest).

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Management
Group” shall mean one or more of the members of the senior executive management of Turning Point on the Effective Date.

 

“Person”
shall mean any individual, corporation, partnership, association, limited liability company, joint-stock company, trust, unincorporated
organization, government, political subdivision or other entity.

 

4.4Death
or Disability: The employment relationship will be severed, and this Agreement terminated, upon your death or disability.
For purposes of this Agreement, you will be considered “disabled” if you are so considered under any applicable
disability insurance policy maintained by the Company, or if no such disability insurance policy is in effect, on the date that
a physician mutually agreed to by the parties determines that you are or will be unable by reason of illness, accident or other
physical or mental condition to perform your duties for a continuous period of 120 days, or for a period of more than 120 days
in any 12 month period, and that there is no objectively reasonable accommodation that would allow you to perform your
duties.

 

In the event of the
termination of your employment due to death or disability, notwithstanding anything to the contrary in this Agreement, the Company
will pay a lump sum payment to you in amount equal to the cost of COBRA coverage for continued medical coverage for you (except
in the event of death) and your dependents for six months, payable on the 60th day following the date of such termination
of employment. Moreover, you may be eligible for disability benefits under the Company’s disability benefits plan in accordance
with the terms of such plan, if any, in effect at such time.

 

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4.5Termination
Without Cause: The Company may terminate this Agreement and your employment hereunder without your consent, for no stated
reason, or for a stated reason but without Cause, with or without notice. If you are terminated by the Company without Cause (as
defined below), you shall be entitled to receive the Severance Benefits, provided that you have executed and delivered a Release
and Severance Agreement in the form of Exhibit A attached hereto (as may be modified by the Company due to subsequent
changes in law), and all applicable revocation periods relating to the release expire, within 55 days following the date of such
Separation.

 

4.6 Termination
for Cause: Your employment with the Company may be terminated by the Company, and without your consent, for Cause at any
time, with or without notice. You shall not be entitled to receive the Severance Benefits if you are terminated for, or later are
determined to have failed to comply with this Agreement for, any one or more of the following reasons (“Cause”):

 

		·	Your failure to render required or expected services in accordance with your Job Description or
Position after being provided at least 10 days’ prior written notice of your failure to render such services;

 

		·	You are in breach of any of the terms and conditions of this Agreement, if not cured within 10 days
after written notice thereof;

 

		·	Insubordination, consisting of your continued failure to take specific action that is material
to the operation of the Company and within your individual control and consistent with your Position, duties and responsibilities,
after being provided at least 10 days’ prior written notice of your failure to take for such action, provided that
you have not, in good faith, objected to such action as either a breach of your fiduciary duties, or on legal grounds;

 

		·	Your material breach of any other agreement between you and the Employer Group if not cured within 10 days
after written notice thereof, or any material violation of any rule, policy, procedure or other requirement of the Company;

 

		·	Your commission of an act of fraud, embezzlement or similar dishonest act against any member of
the Employer Group or any customer, client or business associate of any member of the Employer Group;

 

		·	Your conviction for any felony or crime of dishonesty (as determined by a court of competent jurisdiction,
and which is not subject to further appeal);

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		·	Any egregious or unwarranted conduct by you that materially discredits any member of the Employer
Group or is materially detrimental to the reputation or standing of any member of the Employer Group; or

 

		·	Willful misconduct that is demonstrably deliberate on your part, or gross negligence.

 

5.Severance Benefits: The Severance
Benefits payable in certain Separation circumstances as provided herein shall consist of all of the following:

 

5.1Severance
Compensation: Continuation of your then current Salary (or, in the case of a Good Reason termination due to a reduction
in Salary, at the Salary in effect immediately prior to such reduction) during the Severance Benefits Period (“Severance
Pay”). Any Severance Pay will be paid to you incrementally, in accordance with the Company’s regular payroll cycle,
with the first such payment beginning on the 60th day following your Separation, and the first such payment will include
all accrued amounts during the 60-day period from your Separation date until the 60th day following your Separation
date. You will also receive a severance bonus equal to the average of the annual cash bonuses received by you for the 24 months
prior to your Separation (“Severance Bonus”). In the event of the termination of your employment by the Company
without Cause or resignation by you for Good Reason within one year following a Change of Control or within 12 months following
the Effective Date, your Severance Bonus shall instead be equal to two times the average of the annual cash bonuses received by
you for the 24 months prior to your Separation. Any Severance Bonus will be paid in two equal installments – the
first installment on the later of (i) when all other Company annual bonuses, if awarded, are next paid, or, if not awarded, when
such bonuses would have next been paid in April of the year following the year of services, and (ii) the 60th day following
your Separation, and the second installment at the end of the Restricted Period. Severance Pay and Severance Bonus payment timing
shall also be subject to the “specified employee” delay in paragraph 4 above for any portion of such amounts that are
subject to Section 409A of the Code. Normal payroll taxes and deductions will be withheld from any Severance Pay and Severance
Bonus payments.

 

5.2Health
Benefits Stipend and Access: The Company will pay a lump sum payment to you in amount equal to the cost of COBRA coverage
for continued medical coverage for you and your dependents for 12 months, payable on the 60th day following the date
of your Separation, and, to the extent determined by the Company to be permitted by the applicable plans and applicable laws (without
the imposition of any excise taxes or other penalties), allow you access to group health coverage at the COBRA premium rate payable
by you on an after-tax basis, during the Severance Benefit Period, plus the period of actual COBRA coverage to begin at the end
of the Severance Benefit Period.

 

5.3Other
Additional Benefits: All additional benefits and stock incentive rights (if any) will cease and expire upon Separation,
unless otherwise provided in this Agreement or by the separate written terms of those benefits.

 

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5.4280G Cap:
Notwithstanding any other provisions in this Agreement, in the event that any payment or benefit received or to be received by
you (including any payment or benefit received in connection with a Change of Control or the termination of your employment related
to such a Change of Control, whether pursuant to the terms of this Agreement or any other plan, program, arrangement or agreement)
(all such payments and benefits, together, the “Total Payments”) would be subject (in whole or part), to any
excise tax imposed under Section 4999 of the Code, or any successor provision thereto (the “Excise Tax”), then,
after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan,
program, arrangement or agreement, the Company will reduce the Total Payments to the extent necessary so that no portion of the
Total Payments is subject to the Excise Tax (but in no event to less than zero); provided, however, that the Total Payments will
only be reduced if the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state,
municipal and local income and employment taxes on such reduced Total Payments and after taking into account the phase out of itemized
deductions and personal exemptions attributable to such reduced Total Payments), is greater than or equal to the net amount of
such Total Payments without such reduction (but after subtracting the net amount of federal, state, municipal and local income
and employment taxes on such Total Payments and the amount of Excise Tax to which you would be subject in respect of such unreduced
Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such
unreduced Total Payments).

 

In the case of a reduction in the Total
Payments, the Total Payments will be reduced in the following order: (i) payments that are payable in cash that are valued at full
value under Treasury Regulation § 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable
last reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation §
1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation Section
1.280G-1, Q&A 24), will next be reduced; (iii) payments that are payable in cash that are valued at less than full value under
Treasury Regulation § 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (iv) payments
and benefits due in respect of any equity valued at less than full value under Treasury Regulation § 1.280G-1, Q&A 24,
with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24), will
next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata.
Any reductions made pursuant to each of clauses (i)-(v) above will be made in the following manner: first, a pro-rata reduction
of cash payment and payments and benefits due in respect of any equity not subject to Section 409A of the Code, and second, a pro-rata
reduction of cash payments and payments and benefits due in respect of any equity subject to Section 409A of the Code as deferred
compensation.

 

For purposes of determining whether and
the extent to which the Total Payments will be subject to the Excise Tax: (i) no portion of the Total Payments the receipt or enjoyment
of which you shall have waived at such time and in such manner as not to constitute a “payment” within the meaning
of Section 280G(b) of the Code will be taken into account; (ii) no portion of the Total Payments will be taken into account which,
in the opinion of a nationally recognized tax counsel (“Tax Counsel”) selected by the Company and reasonably
acceptable to you and the accounting firm which was, immediately prior to the change in control, the Company’s independent
auditor (the “Auditor"), does not constitute a “parachute payment” within the meaning of Section
280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion
of such Total Payments will be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for
services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount”
(as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (iii) the value of any
non-cash benefit or any deferred payment or benefit included in the Total Payments will be determined by the Auditor in accordance
with the principles of Sections 280G(d)(3) and (4) of the Code.

 

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At the time that payments are made under
this Agreement, the Company will provide you with a written statement setting forth the manner in which such payments were calculated
and the basis for such calculations, including but not limited to, any opinions or other advice the Company received from Tax Counsel,
the Auditor, or other advisors or consultants (and any such opinions or advice which are in writing will be attached to the statement).
If you object to the Company’s calculations, the Company will pay to you such portion of the Total Payments (up to 100% thereof)
as you determine is necessary to result in the proper application of this subsection. All determinations required by this subsection
(or requested by either you or the Company in connection with this subsection) will be at the expense of the Company. The fact
that your right to payments or benefits may be reduced by reason of the limitations contained in this subsection will not of itself
limit or otherwise affect any other rights you have under this Agreement.

 

If you receive reduced payments and benefits
by reason of this subsection and it is established pursuant to a determination of a court of competent jurisdiction which is not
subject to review or as to which the time to appeal has expired, or pursuant to an Internal Revenue Service proceeding, that you
could have received a greater amount without resulting in any Excise Tax, then the Company shall thereafter pay you the aggregate
additional amount which could have been paid without resulting in any Excise Tax as soon as reasonably practicable.

 

5.5Resignations.
Following the termination of your employment for any reason, if and to the extent requested by the Board, you hereby agree
to resign from all fiduciary positions (including as trustee) and all other offices and positions you hold as of the date of such
termination; provided, however, that if you fail to tender your resignation after the Board has made such request, then you will
be deemed to have resigned from such offices and positions. 

 

6.Indemnification: The Company
shall, to the fullest extent to which it is empowered to do so by applicable law, defend, indemnify and hold you harmless from
and against all claims, demands, lawsuits, liabilities, losses, damages, penalties, fines, costs and expense (including, but not
limited to, reasonable related attorneys’ fees) arising from any actual, threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative, investigative or otherwise, to which you are or are threatened to be made
a party by reason of your services as an officer and/or director of the Company.

 

7.Non-Disclosure; Non-Use: You
agree not to disclose, give, sell or otherwise divulge the “Confidential Information” (as defined in the Code
of Conduct and Ethics) to any other person or entity at any time without the Company’s prior written consent. You further
agree not to (i) use any of the Confidential Information for your own account for or for the account of any other person or
entity or (ii) use or retain, without the Company’s prior written consent, any figures, calculations, letters, papers,
drawings, computer printouts, computer discs or tapes, or copies thereof or other Confidential Information of any type or description
pertaining to the Company, except in furtherance of the Company’s interests.

 

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You further agree that, upon your Separation,
that you will (i) return physical copies of the Company’s information and Confidential Information in your possession,
under your control or removed from the Company’s premises by you or under your direction, (ii) destroy all electronic
copies of the Company’s information and Confidential Information in your possession, under your control or which was copied
or removed from the Company’s premises or equipment by you or under your direction and (iii) return all Company property
in your possession or under your control, including without limitation the following: Company computers, Blackberry or other mobile
devices, cellular telephones, Company automobiles and keys and access cards to Company property.

 

In the event that you are legally compelled
by regulatory or legal process to disclose the Confidential Information, the foregoing confidentiality obligations shall not apply
to you with respect to such information, provided that you have given the Company prompt prior written notice of such compulsion,
cooperate with the Company in connection with any of its efforts to prevent or limit the scope of such disclosure and, following
completion of such efforts, you only disclose such information as required under such regulatory or legal process then applicable
to you.

 

Nothing in this paragraph 7, or in the
remainder of this Agreement, shall prohibit you from filing a charge with the U.S. Equal Employment Opportunity Commission or any
similar state or local fair employment practices agency, or from talking to or cooperating with the U.S. Equal Employment Opportunity
Commission or any similar state or local fair employment practices agency, and no notice to the Company is required under these
circumstances.

 

8.Non-Competition: You acknowledge
and agree that, during the course of employment with the Company, you may: (i) receive significant training in, and generate
and use, the Company’s good will and experience; (ii) be exposed to confidential aspects of the Company’s business
and have access to and became familiar with Confidential Information, and (iii) perform services for the Company that are
special, unique, extraordinary and intellectual in character—none of which is commonly known or readily accessible to the
public and any of which place or placed you in a position of confidence and trust with the customers, potential customers, vendors,
employees of the Company and other persons, the loss of which cannot adequately be compensated by damages in an action at law.

 

You acknowledge and
agree that the Company desires to enter into this Agreement to, in part, protect the Company’s vital interest in maintaining
its Confidential Information, protect the Company’s investment in your training and development, protect the Company’s
business and good will, and avoid Competition (as defined below) with you or any other person or entity with which you are employed
or affiliated for a time certain following your Separation. For purposes of this Agreement, “Competition” means
engaging in, aiding, assisting, owning, or controlling (whether as a shareholder, principal, partner, employee, trustee, officer,
director agent, independent contractor, or otherwise) any interest greater than two percent (2%) in any firm, corporation,
business, or other entity which is (or with any other person(s) who are) engaged in competition with the Company in any line of
business which, at the time of your Separation (or within three months following your Separation), comprised fifteen percent (15%) or
more of the Company’s gross sales revenues.

 

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For purposes of this
Agreement, the “Restricted Area” shall be the entire United States of America.

 

You agree that, during
the Restricted Period, you will not, directly or indirectly, alone or with others, engage in Competition with the Company, its
successors or assigns or any purchaser of all or substantially all of Company’s assets within your Restricted Area.

 

You acknowledge having
carefully read and considered the non-competition provisions of this Agreement and, having done so, agree that the covenants and
restrictions contained herein are, taken as a whole, fair and reasonable in their duration, geographic scope and scope of restricted
activities, do not unduly restrict your ability to obtain or maintain a livelihood and are necessary to protect the Company’s
good will, trade secrets, Confidential Information and business interests. You expressly agree not to raise any issue disputing
the reasonableness of the: (i) geographic scope, (ii) type of employment or line of business or (iii) duration of
any such covenants in any proceeding to enforce such covenants and restrictions.

 

9.No Solicitation, No Interference
and No Hire Covenants: You agree that, during the Restricted Period, you will not, directly or indirectly: (i) solicit
or encourage any employee or other service provider of the Company or its subsidiaries to leave such employment or service; (ii) interfere
with the relationship between the Company and any of its employees or service providers; or (iii) hire any person who, within
the six (6) month period preceding such hiring, was employed by, or providing services to, the Company or its subsidiaries.

 

10.Mutual Nondisparagement:
You agree that following the termination of your employment for any reason, you shall not publicly make any negative, disparaging,
detrimental or derogatory remarks or statements (written, oral, telephonic, electronic, or by any other method) about the Company
or its subsidiaries or any of their respective owners, partners, managers, directors, officers, employees or agents, including,
without limitation, any remarks or statements that could be reasonably expected to adversely affect in a material manner (i) the
conduct of the Company’s or its subsidiaries’ businesses or (ii) the business reputation or relationships of the
Company or its subsidiaries and/or any of their past or present officers, directors, agents, employees, attorneys, successors and
assigns, in each case, except to the extent required by law or legal process. Similarly, following termination of your employment
for any reason, neither the Company’s officers in their official capacity, nor the members of the Board, shall make any such
statements about you.

 

Nothing in this paragraph 10, or in
the remainder of this Agreement, shall prohibit you from filing a charge with the U.S. Equal Employment Opportunity Commission
or any similar state or local fair employment practices agency, or from talking to or cooperating with the U.S. Equal Employment
Opportunity Commission or any similar state or local fair employment practices agency, and no notice to the Company is required
under these circumstances.

 

    	11

    	 

    

11.Intellectual Property: You
agree that all patentable inventions, discoveries, and trade secrets, whether or not patented, and whether or not reduced to practice,
and all copyright interests that are or have been conceived or developed during your employment with the Company, either alone
or jointly with others, if on the Company’s time, using the Company’s facilities, specifically relating to the Company,
or to the Company’s business are done as “works made for hire” for the Company, and you hereby assign to the
Company all right, title, and interest in all such intellectual property. You agree that the Company shall be the sole owner of
all domestic and foreign patents, trademarks, trade names, service marks, domain names and other rights pertaining thereto related
to such intellectual property, and further agree to execute all documents consistent therewith that the Company reasonably determines
to be necessary or convenient for use in applying for, prosecuting, perfecting, or enforcing patents or other intellectual property
rights, including the execution of any assignments, patent applications, or other documents that the Company may reasonably request.
Upon your failure to do so within 10 business days following the Company’s written request, you hereby irrevocably appoint
the Company as your true and lawful attorney-in-fact with full power of delegation and substitution to execute, deliver, file and
record, and on your behalf and in the Company’s name, such documents consistent with this Agreement. This provision is intended
to apply only to the extent permitted by applicable law.

 

12.Arbitration: Any dispute,
claim or controversy arising out of or relating to this Agreement, including without limitation any dispute, claim or controversy
concerning validity, enforceability, breach or termination hereof), shall be finally settled through arbitration under the rules
of the American Arbitration Association for arbitration of employment disputes, such arbitration to be conducted in Jefferson County,
Kentucky. Each party will be entitled to present evidence and argument to the arbitrator(s). The arbitrator(s) will have the right
only to interpret and apply the provisions of this Agreement and may not change any of its provisions, except as expressly provided
herein. The arbitrator(s) will permit reasonable pre-hearing discovery of facts, to the extent necessary to establish a claim or
a defense to a claim, subject to supervision by the arbitrator(s). In addition, the Company shall propose a reasonable set of rules
to guide any such arbitration proceedings. Such rules shall be designed to lead to a prompt and just result without undue delay
or expense, but will not be unduly prejudicial to either party. The determination of the arbitrator(s) will be conclusive and binding
upon the parties and judgment upon the same may be entered in any court having jurisdiction thereof. The arbitrator(s) will give
written notice to the parties stating the arbitrator’s determination, and will furnish to each party a signed copy of such
determination. The expenses of arbitration will be borne by the Company, unless the arbitrator(s) determine that you have materially
failed to succeed in any claim, in which case the arbitrator(s) may equitably determine, consistent with the application of state
or federal law, to apportion some of the fees and expenses to you, not to exceed the maximum permitted by law. Each party shall
bear its own costs and expenses of counsel, unless the arbitrator(s) determine that the Company has material liability to you hereunder,
in which event the arbitrator(s) may equitably determine that your reasonable counsel fees shall be paid by the Company. Any arbitration
hereunder shall be governed by and construed in accordance with the substantive laws of the State of Kentucky and, where applicable,
federal law, without giving effect to the conflict of laws principles of such State.

 

13.Section 409A of the Code:
To the extent that Section 409A of the Code is applicable to any provisions of this Agreement, it is the intent of the parties
that such provisions comply with Section 409A of the Code and related regulations, and this Agreement shall be so construed.

 

    	12

    	 

    

Any reimbursements by the Company to you
of any eligible expenses under this Agreement that are not excludable from your income for Federal income tax purposes (the “Taxable
Reimbursements”) shall be made by no later than the earlier of the date on which they would be paid under the Company’s
normal policies and the last day of the calendar year following the year in which the expense was incurred. The amount of any Taxable
Reimbursements, and the value of any in-kind benefits to be provided to you, during any calendar year shall not affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year (except for any life-term or other aggregate
limitation applicable to medical expenses). The right to Taxable Reimbursement, or in-kind benefits, shall not be subject to liquidation
or exchange for another benefit.

 

14.Choice of Law: This Agreement
shall in all respects be interpreted, enforced and governed by the laws of the State of Kentucky, without giving effect to conflict
of laws principles of such State. The language of all parts of this Agreement shall in all cases be interpreted as a whole, according
to its fair meaning, and not strictly for or against any of the parties.

 

15.Choice of Forum: Subject
to paragraph 12 above, you consent to the exclusive jurisdiction of courts located in the State of Kentucky.

 

16.Equitable Remedies: Notwithstanding
any other provisions of this Agreement to the contrary, the Company will not be required to seek or participate in arbitration
regarding any actual or threatened breach by you of the Non-Disclosure, Non-Competition, No Solicitation, No Interference and No
Hire covenants contained in this Agreement or any other covenant under this Agreement for which equitable relief may be sought.
You agree that the Company will suffer irreparable harm for any such breach or threatened breach and that the Company may not be
adequately compensated by damages, and that, in addition to all other remedies, the Company shall be entitled to injunctive relief
and specific performance and to pursue such remedies in a court of competent jurisdiction in the State of Kentucky and no arbitrator
may make any ruling inconsistent with the findings or rulings of such court. You agree to waive any argument of lack of personal
jurisdiction or forum non-conveniens with respect to the pursuit of such injunctive relief and specific performance arising out
of or relating to this Agreement.

 

17.Remedies Cumulative: You
agree that nothing herein stated shall be construed as prohibiting the Company from pursuing any and all other remedies that may
be available to the Company at law, in equity, by contract or otherwise in connection with such violation or threatened violation,
including without limitation the recovery of monetary damages from you, all of which shall be cumulative to the fullest extent
permissible under applicable laws.

 

18.Insurance and Corporate Document
Protections: Nothing in this Agreement shall be deemed to preclude you from receiving any of the benefits or protections, including
without limitation representation, available to you following any Separation under (a) any officers and directors insurance
policy maintained by the Company which provides coverage during your employment by the Company as an officer or director of the
Company or (b) the Company’s bylaws, Certificate of Incorporation or under applicable law. Any such benefits and protections
shall or shall not be provided solely in accordance with the terms and conditions of any such policies, documents and applicable
law. The Company covenants to maintain, even after your Separation, its officers and directors insurance policy as in effect as
of your Separation from the Company or another officers and directors policy that provides equivalent or greater benefits and protections
to you.

 

    	13

    	 

    

19.Entire Agreement: Other than
agreements concerning Equity Incentive Programs and the Code of Conduct and Ethics, this Agreement constitutes and sets forth the
entire agreement between you and the Company with respect to the subject matter contained herein and supersedes any and all prior
and contemporaneous oral or written agreements or understandings between the parties, including, without limitation, the Prior
Agreement. You acknowledge and agree that no representation, promise, inducement or statement of intention has been made by the
Company that is not expressly set forth in this Agreement. No party hereto shall be bound by, or liable for, any alleged representation,
promise, inducement or statement of intention not expressly set forth in this Agreement. This Agreement cannot be amended, modified
or supplemented in any respect, except by a subsequent written agreement signed by all parties hereto.

 

20.Binding Effect: This Agreement
shall be binding upon and inure to the benefit of you and your heirs and the Company and its legal representatives, parent, successors
and assigns.

 

21.No Waiver: No action or inaction
by either party shall be taken as a waiver of its right to insist that the other party abide by the obligations under this Agreement,
unless such waiver is in writing, expressly waives such rights and is signed by legal counsel for the party making such waiver.

 

22.Severability: The parties
hereby agree that (a) the provisions of this Agreement will be severable in the event that for any reason whatsoever any of the
provisions hereof are invalid, void or otherwise unenforceable, (b) any such invalid, void or otherwise unenforceable provisions
will be replaced by other provisions which are as similar as possible in terms to such invalid, void or otherwise unenforceable
provisions but are valid and enforceable, and (c) the remaining provisions will remain valid and enforceable to the fullest extent
permitted by applicable law.

 

23.Survival: Any provision contained
in this Agreement, which by its nature or terms survives the Term or the Restricted Period (including but not limited to of the
Non-Disclosure, Non-Competition, No Solicitation, No Interference and No Hire covenants), shall survive the Term and the Restricted
Period and continue to be binding.

 

I trust that this adequately
outlines the Company’s offer and our discussions. If, however, you have any questions or concerns, please do not hesitate
to call me.

 

    	14

    	 

    

We are pleased to continue
your employment and look forward to a long and mutually rewarding relationship.

 

Sincerely,

 

	/s/ Lawrence Wexler	 	 
	Larry Wexler	 	 

 

I agree to the terms
and conditions of the employment offer set forth above.

 

	/s/ Mark Stegeman	 	11/23/2015
	Your Signature	 	Date

 

 

 

    	15

    	 

    

EXHIBIT A

 

FORM OF

 

RELEASE AND SEVERANCE AGREMENT

 

This Release and Severance Agreement (this
“Release”) is entered into by and between [____________] (“Employee”) and Turning Point
Brands, Inc. (“Turning Point” and, collectively with its parent(s), subsdiary(ies), and all other related companies,
the “Company”). Employee and Turning Point are referred to herein as the “Parties.”

 

RECITALS

 

		A.	Employee and Turning Point are parties to an Employment Letter, dated as of [______________________,
2016] (the “Employment Agreement”), which provides for severance after termination in certain circumstances,
conditioned upon Employee first signing a general release of claims following termination of Employee’s employment, which release
becomes irrevocable in accordance with its terms.

 

		B.	This Release is the contemplated release of claims under the Employment Agreement of which Employee
has had notice since the Employment Agreement was executed, it being annexed thereto (the “Presentation Date”).

 

		C.	Employee’s employment with the Company [ended] [will end] on [___________________]
(the “Separation Date”).

 

		D.	The Parties desire to settle any and all other claims, if any, that Employee may have against the
Company or any of its employees that are releaseable by law.

 

AGREEMENT

 

NOW, THEREFORE, in consideration for the covenants and
mutual promises contained in the Employment Agreement, the Parties agree as follows:

 

Part
I 

 

For and in consideration of the promises made herein by Employee
in Part II and Part III of this Release, and his performance thereof, the sufficiency of which, either separately or combined,
is hereby acknowledged, Turning Point agrees as follows:

 

1.1             
Severance Benefits to Employee. In exchange
for Employee signing this Release, complying with its terms, and not revoking this Release, the Company will pay to Employee the
“Severance Benefits” (as defined in the Employment Agreement), as and when therein required, if, and only if,
Employee signs this Release and returns it to the Company; and (2) the seven (7) day revocation period in Part II, Section 2.4
below has expired on or before the 55th day after Separation Date, provided that Employee has not exercised his right
to revoke this Release in accordance with Part II, Section 2.4 below.

 

    	16

    	 

    

1.2Separate and Adequate Age Claim Consideration.
The Parties expressly agree and acknowledge that a portion of the Severance Benefits in Section 1.1 above represents separate
and adequate consideration, to which Employee is not otherwise entitled, in exchange for Employee’s Age Claim Waiver, set out below
in Part II. Turning Point’s present promise to provide this consideration is exchanged for Employee’s present release of any Age
Claims at the time of the execution of this Release.

 

Part
II 

 

For and in consideration of the promises made herein by Turning
Point in Part I of this Release, and its performance thereof, the sufficiency of which is hereby acknowledged, Employee agrees
as follows:

 

2.1General
Release and Waiver of All Claims and Potential Claims. Employee hereby releases all claims and potential claims,
known and unknown, against the Company that are releasable by law. More specifically, for and on behalf of himself and his family,
dependents, heirs, executors, administrators and assigns, Employee hereby irrevocably and unconditionally releases the Company
and its respective predecessors, successors, and all their past, present or future assigns, parents, subsidiaries, affiliates,
insurers, attorneys, divisions, subdivisions and affiliated entities, together with their respective current and former officers,
directors, shareholders, fiduciaries, administrators, trustees, agents, servants, employees, attorneys, insurers and/or representatives,
and their respective predecessors, successors and assigns, heirs, executors, administrators, and any and all other affiliated persons,
firms, plans or corporations which may have an interest by or through them (collectively “Releasees”), both jointly
and individually, from any and all claims, actions, arbitrations, and lawsuits, of any nature whatsoever, known or unknown to Employee,
accrued or unaccrued, which he ever had, now has or may have had against Releasees since the beginning of time through the date
of execution of this Release. This general release and waiver of claims includes, but is not limited to, any and all claims, demands,
causes of action, suits, debts, complaints, liabilities, obligations, promises, agreements, controversies, damages and expenses
that are releasable by law (including, without limitation, attorneys fees and costs actually incurred or to be incurred) of any
nature or description whatsoever, in law or equity, whether known or unknown, in connection with or arising out of his employment
with the Company and/or termination of said employment. Claims being released include, without limitation, any and all employment-related
claims that are releasable by law arising under federal, state or local statutes, ordinances, resolutions, regulations or constitutional
provisions prohibiting discrimination in employment on the basis of sex, race, religion, national origin, age, disability and/or
veterans’ status, including, but not limited to, claims arising under Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§
1981, 1981a, 1983 and 1985, the Civil Rights Act of the State in which Employee resides and works, the Sarbanes-Oxley Act, 18 U.S.C.
§ 1514A, et seq., the Americans With Disabilities Act, the Age Discrimination in Employment Act, the Pregnancy Discrimination
Act, the Federal Rehabilitation Act of 1973, Executive Order 11246, the Employee Retirement Income Security Act of 1974, 29 U.S.C.
§ 1001 et seq., the Fair Labor Standards Act, 29 U.S.C. §§ 201, et seq., the Family and Medical Leave
Act, 29 U.S.C. §§ 2601, et seq., the Genetic Information Non-Discrimination Act, 42 U.S.C. §§ 2000ff
et seq, the minimum wage act, wage payment law and wage discrimination statutes and workers compensation statures
and similar state laws of the state in which Employee has provided services, in all instances as amended. This general release
and waiver of claims also includes, but is not limited to, any and all claims for unpaid benefits or entitlements asserted under
any plan, policy, benefits offering or program (except as otherwise required by law), any and all contract or tort claims, including,
without limitation, claims of wrongful discharge, assault, battery, intentional infliction of emotional distress, negligence, and/or
defamation against Releasees.

 

    	17

    	 

    

Nothing in this Section
2.1, Section 2.2, or any other provision in the remainder of this Release shall be construed to prevent Employee from making a
claim for indemnity under law or governance documents providing for indemnity or insurance against claims for acts or omissions
in his capacity acting as an officer or director of the Company. Furthermore, nothing in this Section 2.1, Section 2.2, or any
other provision in the remainder of this Release shall be construed to prohibit Employee from talking to, cooperating in any investigation
by, and/or filing a charge with, the U.S. Equal Employment Opportunity Commission (the “EEOC”) or any other
similar state or local fair employment practices administrative agency. However, by signing this Release, Employee hereby waives
the right to recover from Releasees any relief from any charge or claim pursued or otherwise prosecuted by him, or by persons or
entities like the EEOC acting by or through him, including, without limitation, the right to attorneys’ fees, costs, and any other
relief, whether legal or equitable, sought in such charge, claim, or other proceeding.

 

2.2Age Claim
Waiver. Employee further agrees that his full general release includes a waiver of his rights, if any, to assert or allege
discrimination based upon age pursuant to the Age Discrimination in Employment Act or any and all other federal, state or local
laws or regulations prohibiting discrimination on the basis of age (collectively, “Age Claim Waiver”).

 

2.3Adequate
Consideration Period/Consult an Attorney. Employee acknowledges that he is hereby instructed that he may and should
consult an attorney of his own choosing regarding the terms of this Release, and specifically including the Age Claim Waiver, and
that he has been given at least [twenty-one (21)] [forty-five (45)] days to consider the terms of this Release and whether
to sign this Release, although Employee may choose to sign this Release prior to the expiration of this [twenty-one (21)] [forty-five
(45)] day period. The Parties agree that if Employee fails to execute this Release prior to the expiration of the [twenty-one
(21)] [forty-five (45)] day period or prior to the deadline set forth in Section 1.1 hereof, this Release will be null and
void.

 

2.4Seven
(7) Day Revocation Period. Employee further agrees that he is hereby instructed by the Company that, following his signing
of this Release, Employee shall have up to seven (7) days to withdraw, rescind or revoke this Release by providing written notice
to [____________________________________________], but that, in the event Employee exercises his right to withdraw or
rescind this Release, all terms of this Release, including, without limitation, Turning Point’s duty to provide the Severance Benefits
provided in Part I, Section 1.1, above, shall be void and of no effect. 

 

2.5Permanent
Waiver of Re-employment.In order to effect the degree of separation contemplated by the Parties, Employee acknowledges
his present intent to permanently remove himself from the labor pool of Releasees as of the Separation Date and forever thereafter.
In order to accomplish this present permanent removal from Releasees’ labor pool, Employee agrees that he will not seek and will
not accept hiring, rehiring, placement, or reinstatement with Releasees, either as an employee, an independent contractor, a temporary
worker, or in any other capacity.

 

    	18

    	 

    

Part
III

Other Agreements

 

3.1Additional
Covenants by Employee. Employee represents, warrants and covenants that, as of the date he signs this Release, (1)
he is unaware of any wages (as that term is defined by applicable state law) that are owed to him by the Company and that have
not been paid; (2) he is unaware of any request for leave under the Family and Medical Leave Act that was denied; (3) he has no
known work-related injury, disability, or illness, and has not requested any accommodation under the Americans With Disabilities
Act or similar state law that has not been satisfied; and (4) he is unaware of any document, circumstance, occurrence, or any conduct
on behalf of the Company or any of its agents, employees, officers or directors, or any Releasee, which can or should be reported
to any state or federal authority as a violation of any law, standard, or regulation, upon which representations the Company expressly
relies in entering into this Release.

 

3.2Knowing
and Voluntary Agreement. Employee agrees and acknowledges that he has been advised to consult an attorney regarding
the terms of this Release and that he has carefully reviewed, studied and thought over the terms of this Release. Employee further
acknowledges and agrees that he knowingly and voluntarily entered into and signed this Release after deliberate consideration and
review of all of its terms and provisions, that he was not coerced, pressured or forced in any way by the Company, any Releasee
or anyone else to accept the terms of this Release, and that the decision to accept the terms of this Release was entirely his
own.

 

3.3No
Wrongdoing By the Parties. The Parties further agree that they have entered this Release to resolve any and all
claims, if any, Employee may have against the Company or any other Releasee, and that this Release does not constitute an admission
of, or is to be used as evidence of, any liability, violation or wrongdoing of any kind.

 

3.4Choice
of Law; Interpretation; Captions. The Parties understand and agree that this Release shall in all respects be interpreted,
enforced and governed under the laws of the State of Kentucky and the language of this Release shall in all cases be interpreted
as a whole, according to its fair meaning and not strictly for or against either of the Parties, regardless of which is the drafter
of this Release. Captions and headings used herein are for convenience of reference only.

 

3.5Exclusive
Jurisdiction; Venue. The Parties understand and agree that the federal and/or state courts located in the State
of Kentucky shall have exclusive jurisdiction with regard to any litigation relating to this Release and that venue shall be proper
only in the State of Kentucky and any federal court whose judicial district encompasses the State of Kentucky, and that any objection
to this jurisdiction or venue is specifically waived.

 

    	19

    	 

    

3.6Entire
Agreement.The Parties agree that this Release sets forth the entire agreement between the Parties on the subject
matter herein and fully supersedes any and all other prior agreements or understandings between them, except for the terms
in the Employment agreement referred to herein and any agreements between Employee and the Company regarding non-disclosure of
confidential information, intellectual property, non-solicitation of customers, employees or contractors, non-competition,
and/or other restrictive covenant obligations, which agreements, if any, shall remain in full force and effect according
to their terms. This includes, without limitation, Employee’s continuing obligations under Sections 7-11 of the Employment
Agreement. This Release may be amended or superseded only by a subsequent writing, executed by the Party against whom enforcement
is sought.

 

3.7Agreement
to Indemnify.The Parties agree that should Employee seek to overturn, set aside, or legally challenge any release
of claims, promise or covenant made by him under this Release, by judicial action or otherwise, the Company and/or Releasees shall
be entitled to recover from Employee its costs of defending and enforcing the terms of this Release and/or any other claim brought
by or against the Company or Releasees, including, without limitation, reasonable attorneys’ fees. The Parties acknowledge and
agree that each Releasee is an intended third-party beneficiary of this Release and may enforce the terms of this Release accordingly.

 

 

 

[signature page follows]

 

    	20

    	 

    

I, [_______________],
UNDERSTAND AND AGREE THAT THIS RELEASE CONSTITUTES A FULL AND FINAL RELEASE OF ALL CLAIMS THAT ARE RELEASEABLE BY LAW.

 

	 	 
	 	Print Name:_________________________
	 	Date:_________________________
	 	 
	STATE OF _________________________	)
	 	) SS:
	COUNTY OF _________________________	)
	 	 

 

Subscribed and sworn
to before me by _________, this _______ day of ______________, 20__.

 

	 	 
	 	Notary Public
	 	 
	 	My Commission expires:_________________________
	 	 
	 	-- and --
	 	 
	 	TURNING POINT BRANDS, INC.
	 	 
	 	By: _________________________
	 	 
	 	Title: _________________________
	 	 
	 	Date: _________________________
	 	 
	STATE OF _________________________	)
	 	) SS:
	COUNTY OF _________________________	)

 

Subscribed and sworn
to before me by __________________________, on behalf of Turning Point Brands, Inc., this _______ day of ______________, 20__.

 

	 	 
	 	Notary Public
	 	 
	 	My Commission expires: _________________________
	 	 

 

 

    	21Exhibit 10.1

 

TAX
MATTERS AGREEMENT

 

by and between

 

WESTROCK COMPANY

 

and

 

INGEVITY CORPORATION

 

Dated as of May 14,
2016

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Article I
	 	 
	DEFINITIONS
	 	 	 
	Section 1.01.	General	2
	Section 1.02.	Additional Definitions	12
	 	 	 
	Article II
	 	 
	PREPARATION, FILING AND PAYMENT OF TAXES SHOWN DUE
 ON TAX RETURNS
	 	 	 
	Section 2.01.	Combined Tax Returns	12
	Section 2.02.	Parent Separate Tax Returns	12
	Section 2.03.	SpinCo Separate Tax Returns	12
	Section 2.04.	Restructuring Transfer Tax Returns	13
	 	 	 
	Article III
	 	 
	TAX RETURN PROCEDURES
	 	 	 
	Section 3.01.	Procedures Relating to Combined Tax Returns and Parent Separate Tax Returns	13
	Section 3.02.	Procedures Relating to SpinCo Separate Tax Returns	14
	Section 3.03.	Preparation of all Tax Returns	14
	Section 3.04.	Tax Returns Reflecting Restructuring/Distribution Taxes	14
	 	 	 
	Article IV
	 	 
	TAX TIMING AND ALLOCATION
	 	 	 
	Section 4.01.	Timing of Payments	14
	Section 4.02.	Expenses	14
	Section 4.03.	Apportionment of SpinCo Taxes	15
	 	 	 
	Article V
	INDEMNIFICATION
	 	 	 
	Section 5.01.	Indemnification by Parent	15
	Section 5.02.	Indemnification by SpinCo	15
	Section 5.03.	Characterization of and Adjustments to Payments	15
	Section 5.04.	Timing of Indemnification Payments	16

 

     

     

    

 

	Article VI
	REFUNDS, DEDUCTIONS
	 	 	 
	Section 6.01.	Refunds	16
	Section 6.02.	Treatment of Deductions Associated with Equity-Related Compensation	16
	 	 	 
	Article VII
	TAX PROCEEDINGS
	 	 	 
	Section 7.01.	Notification of Tax Proceedings	17
	Section 7.02.	Tax Proceedings	17
	 	 	 
	Article VIII
	TAX-FREE STATUS OF THE TRANSACTIONS
	 	 	 
	Section 8.01.	Representations and Warranties	18
	Section 8.02.	Restrictions Relating to the Distribution	19
	Section 8.03.	Procedures Regarding Post-Distribution Rulings and Unqualified Tax Opinions	21
	Section 8.04.	Section 336(e) Election	22
	 	 	 
	Article IX
	COOPERATION
	 	 	 
	Section 9.01.	General Cooperation	23
	Section 9.02.	Retention of Records	23
	 	 	 
	Article X
	MISCELLANEOUS
	 	 	 
	Section 10.01.	Dispute Resolution	24
	Section 10.02.	Tax Sharing Agreements	24
	Section 10.03.	Interest on Late Payments	24
	Section 10.04.	Survival of Covenants	24
	Section 10.05.	Severability	24
	Section 10.06.	Entire Agreement	25
	Section 10.07.	No Third-Party Beneficiaries	25
	Section 10.08.	Specific Performance	25
	Section 10.09.	Amendment	25
	Section 10.10.	Rules of Construction	25
	Section 10.11.	Counterparts	26
	Section 10.12.	Coordination with Separation and Distribution Agreement	26
	Section 10.13.	Coordination with the Employee Matters Agreement	26
	Section 10.14.	Governing Law	26
	Section 10.15.	Assignability	26
	Section 10.16.	Notices	26
	Section 10.17.	Effective Date	27

 

    	 	ii 	 

     

    

 

DEFINED TERMS

 

	 	Page
	 	 
	Acquisition Transaction	2
	Adjustment	2
	Affiliate	2
	Agreement	1, 2
	Ancillary Agreement	3
	Benefited Party	3, 16
	Cash Transfer	3
	Code	3
	Combined Tax Return	3
	Contribution	3
	Disqualifying Action	3
	Distribution	1, 3
	Distribution Date	3
	Due Date	3
	Effective Time	3
	Employee Matters Agreement	3
	Equity Securities	3
	Fifty-Percent or Greater Interest	3
	Final Determination	3
	Income Tax Return	4
	Income Taxes	4
	Indemnified Party	4
	Indemnifying Party	4
	Information	4, 23
	Internal Contribution	4
	Internal Controlled	4
	Internal Controlled Entity	4
	Internal Controlled Group	4
	Internal Distributing	5
	Internal Distributing Acquisition Transaction	5
	Internal Distributing Active Trade or Business	5
	Internal Distributing Entity	5
	Internal Distributing Group	6
	Internal Distribution	6
	IRS	6
	IRS Ruling	6
	IRS Ruling Request	6
	Law	6
	Liability	6
	Non-Income Tax Return	6
	Notified Action	6, 21
	Ordinary Course of Business	6
	Parent	1, 6

 

    	 	iii 	 

     

    

 

	Parent Board	6
	Parent Business	6
	Parent Disqualifying Action	6
	Parent Entity	7
	Parent Group	7
	Parent Mergers	7
	Parent Separate Tax Return	7
	Parent Tax Proceeding	7, 17
	Parent Taxes	7
	Parties	1
	Party	1, 8
	Past Practice	8, 13
	Payment Date	8
	Person	8
	Plan of Reorganization	8
	Post-Distribution Ruling	8, 21
	Prime Rate	8
	Record Holders	8
	Refund	8
	Representatives	8
	Restriction Period	8
	Restructuring	1, 8
	Restructuring Transfer Taxes	9
	Restructuring/Distribution Taxes	8
	SAG	9
	Section 336(e) Election	9, 22
	Separate Return	9
	Separation and Distribution Agreement	1, 9
	SpinCo	1, 9
	SpinCo Active Trade or Business	9
	SpinCo Assets	9
	SpinCo Business	9
	SpinCo Disqualifying Action	9
	SpinCo Entity	9
	SpinCo Group	10
	SpinCo Liabilities	10
	SpinCo Separate Tax Return	1
	SpinCo Shares	10, 17
	SpinCo Tax Proceeding	10
	SpinCo Taxes	10
	Subsidiary	10
	Tax	10
	Tax Attributes	11
	Tax Counsel	11
	Tax Item	11
	Tax Materials	11

 

    	 	iv 	 

     

    

 

	Tax Matter	11, 23
	Tax Opinions	11
	Tax Package	11
	Tax Proceeding	11
	Tax Return	11
	Tax-Free Status	11
	Taxing Authority	12
	Taxing Jurisdiction	12
	Transactions	12
	Transfer Taxes	12
	Treasury Regulations	12
	U.S.	12
	Unqualified Tax Opinion	12
	Waiver	12, 21

 

    	 	v 	 

     

    

 

TAX MATTERS AGREEMENT

 

THIS TAX MATTERS AGREEMENT (this “Agreement”),
dated as of May 14, 2016, is by and between WestRock Company, a Delaware corporation (“Parent”),
and Ingevity Corporation, a Delaware corporation (“SpinCo”). Each of Parent and SpinCo is sometimes referred
to herein as a “Party” and, collectively, as the “Parties.”

 

RECITALS

 

WHEREAS, Parent, through its respective
Subsidiaries, is engaged in the Parent Business and the SpinCo Business;

 

WHEREAS, the Parent Board has determined
that it is in the best interests of Parent and its stockholders to create a new publicly traded company which shall operate the
SpinCo Business;

 

WHEREAS, Parent and SpinCo have entered
into the Separation and Distribution Agreement, dated as of May 14, 2016 (the “Separation and Distribution
Agreement”), providing for the separation of the SpinCo Business from the Parent Business, pursuant to which (a) Parent
will, and will cause its Subsidiaries to, transfer the SpinCo Assets and the SpinCo Liabilities to SpinCo and its Subsidiaries,
as a result of which transfer SpinCo and its Subsidiaries will own, directly and through their respective Subsidiaries, the SpinCo
Business (the “Restructuring”) and (b) Parent will distribute all of the outstanding shares of common stock,
par value $0.01 per share, of SpinCo (“SpinCo Shares”) owned by Parent to the Record Holders of the issued
and outstanding shares of common stock, par value $0.01 per share, of Parent on a pro rata basis (the “Distribution”);

 

WHEREAS, Parent and its Subsidiaries have
engaged in the Internal Contribution (as defined below) and Internal Distribution (as defined below) to facilitate the Distribution;

 

WHEREAS, for U.S. federal Income Tax purposes,
it is intended that (i) the Contribution (as defined herein) and the Distribution, taken together, and (ii) the Internal Contribution
and the Internal Distribution, taken together, shall in each case qualify as a tax-free transaction under Sections 355(a) and 368(a)(1)(D)
of the Code; and

 

WHEREAS, the Parties wish to (a) provide
for the payment of Tax liabilities and entitlement to refunds thereof, (b) allocate responsibility for, and cooperation in, the
filing of Tax Returns, and provide for certain other matters relating to Taxes, and (c) set forth certain covenants and indemnities
relating to the preservation of the tax-free status of certain steps of the Restructuring and the Distribution.

 

NOW, THEREFORE, in consideration of the
foregoing and the terms, conditions, covenants and provisions of this Agreement, each of the Parties mutually covenants and agrees
as follows:

 

     

     

    

 

Article
I

DEFINITIONS

 

Section 1.01.         General.
As used in this Agreement, the following terms shall have the following meanings:

 

“Acquisition Transaction”
means a transaction or series of transactions (or any agreement, understanding or arrangement, within the meaning of Section 355(e)
of the Code and Treasury Regulations Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction
or series of transactions), whether such transaction is supported, permitted or solicited by management or shareholders of SpinCo,
is a hostile acquisition, or otherwise, as a result of which SpinCo would merge or consolidate with or enter into any other reorganization
transaction with any other Person or as a result of which one or more Persons would (directly or indirectly) acquire, or have the
right to acquire, from SpinCo and/or one or more holders of outstanding shares of Equity Securities of SpinCo, as the case may
be, a number of shares of Equity Securities of SpinCo that would, when combined with any other direct or indirect changes in ownership
of the Equity Securities of SpinCo pertinent for purposes of Section 355(e) of the Code (including the Parent Mergers), comprise
a 50% or greater interest in SpinCo (A) by value, as of the date of such transaction, or in the case of a series of transactions,
the date of the last transaction of such series, or (B) by vote, as of the date of such transaction, or in the case of a series
of transactions, the date of the last transaction of such series. Notwithstanding the foregoing, an Acquisition Transaction shall
not include (A) the adoption by SpinCo of a shareholder rights plan or (B) issuances of Equity Securities by SpinCo that satisfy
Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating
to acquisitions by a retirement plan of an employer) of Treasury Regulations Section 1.355-7(d). For purposes of determining whether
a transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power shall be treated as
an indirect acquisition of shares of Equity Securities by the shareholders whose voting power is increased thereby and any redemption
of shares of Equity Securities shall be treated as an indirect acquisition of shares of Equity Securities by the non-exchanging
shareholders. For purposes of this definition, each reference to SpinCo shall include a reference to any entity treated as successor
thereto. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and shall
be interpreted accordingly. Any clarification of, or change in, the statute or regulations promulgated under Section 355(e) of
the Code or published IRS guidance with respect thereto shall be incorporated in this definition and its interpretation.

 

“Adjustment” means any
change in the Tax liability of a taxpayer, whether in connection with a Tax Proceeding, resulting from a change in facts or subsequent
transactions, pursuant to amendment or otherwise, determined issue-by-issue, transaction-by-transaction, or with respect to a taxable
period, as the case may be.

 

“Affiliate” has the meaning
set forth in the Separation and Distribution Agreement.

 

“Agreement” has the meaning
set forth in the preamble.

 

    	 	2 	 

     

    

 

“Ancillary Agreement”
has the meaning set forth in the Separation and Distribution Agreement.

 

“Benefited Party” has
the meaning set forth in Section 6.01(b).

 

“Cash Transfer” has the
meaning set forth in the Separation and Distribution Agreement.

 

“Code” means the Internal
Revenue Code of 1986, as amended.

 

“Combined Tax Return”
means a consolidated, combined, unitary, affiliated or similar Income Tax Return or Non-Income Tax Return that actually includes,
by election or otherwise, one or more members of the Parent Group together with one or more members of the SpinCo Group.

 

“Contribution” means
the contribution and assignment by Parent and certain of its Subsidiaries of certain SpinCo Assets and SpinCo Liabilities to SpinCo
in exchange for SpinCo Shares and the Cash Transfer, pursuant to the Plan of Reorganization and the Separation and Distribution
Agreement.

 

“Disqualifying Action”
means a Parent Disqualifying Action or a SpinCo Disqualifying Action.

 

“Distribution” has the
meaning set forth in the recitals.

 

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

 

“Due Date” means (i)
with respect to a Tax Return, the date (taking into account all valid extensions) on which such Tax Return is required to be filed
under applicable Law and (ii) with respect to a payment of Taxes, the date on which such payment is required to be made to avoid
the incurrence of interest, penalties and/or additions to Tax.

 

“Effective Time” has
the meaning set forth in the Separation and Distribution Agreement.

 

“Employee Matters Agreement”
has the meaning set forth in the Separation and Distribution Agreement.

 

“Equity Securities” means,
with respect to a Person, all classes or series of capital stock of such Person (or any entity treated as a successor to such Person)
and all other instruments treated as stock in such Person (or any entity treated as a successor to such Person) for U.S. federal
Income Tax purposes, and including all options, warrants or any other rights to acquire such stock.

 

“Fifty-Percent or Greater Interest”
has the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the Code.

 

“Final Determination”
means the final resolution of liability for any Tax or Tax Item, which resolution may be for a specific issue or adjustment or
for a taxable period, by or as a result

 

    	 	3 	 

     

    

 

of (i) IRS Form 870 or 870-AD (or any successor
forms thereto), on the date of acceptance by or on behalf of the taxpayer, or by a comparable form under the Laws of any Taxing
Jurisdiction, except that an IRS Form 870 or 870-AD or comparable form shall not constitute a Final Determination to the extent
that it reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for Refund or the right
of the Taxing Authority to assert a further deficiency in respect of such issue or adjustment or for such taxable period (as the
case may be); (ii) a final decision, judgment, decree or other order by any court of competent jurisdiction that can no longer
be appealed; (iii) a final settlement with the IRS, a closing agreement or accepted offer in compromise under Sections 7121 or
7122 of the Code, or a comparable agreement under the Laws of any Taxing Jurisdiction; (iv) any allowance of a Refund or credit
in respect of an overpayment of Tax, but only after the expiration of all periods during which such Refund or credit may be recovered
by the jurisdiction imposing the Tax; or (v) any other final resolution, including by reason of the expiration of the applicable
statute of limitations, the execution of a pre-filing agreement with the IRS or other Taxing Authority or by mutual agreement of
the Parties.

 

“Income Tax Return” means
any Tax Return relating to Income Taxes.

 

“Income Taxes” means
any Taxes measured by or calculated with respect to net income, profits, net receipts or gross receipts (including any margin Tax,
capital Tax, excise Tax or franchise Tax), but excluding (i) any Transfer Taxes and (ii) those Taxes listed on Schedule 1.

 

“Indemnified Party” means
the Party which is entitled to seek indemnification from another Party pursuant to the provisions of Article V.

 

“Indemnifying Party”
means the Party from which another Party is entitled to seek indemnification pursuant to the provisions of Article V.

 

“Information” has the
meaning set forth in Section 9.01.

 

“Internal Contribution”
means the deemed contribution of assets to Internal Controlled upon its conversion to a state law corporation, pursuant to the
Plan of Reorganization and the Separation and Distribution Agreement.

 

“Internal Controlled”
shall mean the successor of WestRock Virginia Corporation, a Delaware corporation, after the completion of both (i) its conversion
to a limited liability company organized under the laws of the State of Delaware disregarded as separate from Internal Distributing
for U.S. federal income Tax purposes, and (ii) its subsequent conversion to a state law corporation, in each case pursuant to the
Plan of Reorganization.

 

“Internal Controlled Entity”
means any member of the Internal Controlled Group other than Internal Controlled.

 

“Internal Controlled Group”
means individually or collectively, as the case may be, (a) Internal Controlled and any of its Subsidiaries (including, for the
avoidance of doubt, any such Subsidiary that is treated as a “disregarded entity” for U.S. federal Income Tax purposes
(or for purposes of any state, local or foreign Tax law)) immediately after the Internal Distribution (giving effect to the Restructuring
completed up to such time and the Internal Distribution), (b) any

 

    	 	4 	 

     

    

 

Person that shall have merged or liquidated
into Internal Controlled or any such Subsidiary and (c) any predecessor or successor to any Person otherwise described in this
definition.

 

“Internal Distributing”
shall mean Ingevity Virginia Corporation, a Virginia corporation.

 

“Internal Distributing Acquisition
Transaction” means a transaction or series of transactions (or any agreement, understanding or arrangement, within the
meaning of Section 355(e) of the Code and Treasury Regulations Section 1.355-7, or any other regulations promulgated thereunder,
to enter into a transaction or series of transactions), whether such transaction is supported, permitted or solicited by management
or shareholders of SpinCo and/or Internal Distributing, is a hostile acquisition, or otherwise, as a result of which Internal Distributing
would merge or consolidate with or enter into any other reorganization transaction with any other Person or as a result of which
one or more Persons would (directly or indirectly) acquire, or have the right to acquire, from Internal Distributing and/or one
or more holders of outstanding shares of Equity Securities of Internal Distributing, as the case may be, a number of shares of
Equity Securities of Internal Distributing that would, when combined with any other direct or indirect changes in ownership of
the Equity Securities of Internal Distributing pertinent for purposes of Section 355(e) of the Code (including the Parent Mergers),
comprise a 50% or greater interest in Internal Distributing (A) by value, as of the date of such transaction, or in the case of
a series of transactions, the date of the last transaction of such series, or (B) by vote, as of the date of such transaction,
or in the case of a series of transactions, the date of the last transaction of such series. Notwithstanding the foregoing, an
Internal Distributing Acquisition Transaction shall not include (A) the adoption by Internal Distributing of a shareholder rights
plan or (B) issuances of Equity Securities by Internal Distributing that satisfy Safe Harbor VIII (relating to acquisitions in
connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an
employer) of Treasury Regulations Section 1.355-7(d). For purposes of determining whether a transaction constitutes an indirect
acquisition, any recapitalization resulting in a shift of voting power shall be treated as an indirect acquisition of shares of
Equity Securities by the shareholders whose voting power is increased thereby and any redemption of shares of Equity Securities
shall be treated as an indirect acquisition of shares of Equity Securities by the non-exchanging shareholders. For purposes of
this definition, each reference to Internal Distributing shall include a reference to any entity treated as successor thereto.
This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and shall be interpreted
accordingly. Any clarification of, or change in, the statute or regulations promulgated under Section 355(e) of the Code or published
IRS guidance with respect thereto shall be incorporated in this definition and its interpretation.

 

“Internal Distributing Active Trade
or Business” means the active conduct (as defined in Section 355(b)(2) of the Code and the regulations thereunder) by
Internal Distributing and its “separate affiliated group” (as defined in Section 355(b)(3)(B) of the Code) of the business
of manufacturing and selling specialty chemicals, immediately prior to the Internal Distribution.

 

“Internal Distributing Entity”
means any member of the Internal Distributing Group other than Internal Distributing.

 

“Internal Distributing Group”
means individually or collectively, as the case may be, (a) Internal Distributing and any of its Subsidiaries (including, for the
avoidance of doubt, any such

 

    	 	5 	 

     

    

 

Subsidiary that is treated as a “disregarded
entity” for U.S. federal Income Tax purposes (or for purposes of any state, local or foreign Tax law)) immediately after
the Internal Distribution (giving effect to the Restructuring completed up to such time and the Internal Distribution), (b) any
Person that shall have merged or liquidated into Internal Distributing or any such Subsidiary and (c) any predecessor or successor
to any Person otherwise described in this definition.

 

“Internal Distribution”
shall mean the distribution by Internal Distributing of all the common stock of Internal Controlled to Parent (or a wholly owned
subsidiary of Parent disregarded for U.S. federal income Tax purposes) in a transaction intended to qualify as a distribution that
is generally tax free pursuant to Sections 355(a) and 368(a)(1)(D) of the Code.

 

“IRS” means the U.S.
Internal Revenue Service.

 

“IRS Ruling” means the
U.S. federal income Tax ruling, and any supplements thereto, issued to Parent by the IRS in connection with the Restructuring and
the Distribution.

 

“IRS Ruling Request”
means any letter filed by Parent with the IRS requesting a ruling regarding certain tax consequences of the Transactions and any
amendment or supplement to such ruling request letter.

 

“Law” has the meaning
set forth in the Separation and Distribution Agreement.

 

“Liability” has the meaning
set forth in the Separation and Distribution Agreement.

 

“Non-Income Tax Return”
means any Tax Return relating to Taxes other than Income Taxes.

 

“Non-Income Taxes” means
(i) any Taxes other than Income Taxes and (ii) for the avoidance of doubt, those Taxes listed on Schedule 1.

 

“Notified Action” has
the meaning set forth in Section 8.03(a).

 

“Ordinary Course of Business”
means an action taken by a Person only if such action is taken in the ordinary course of the normal day-to-day operations of such
Person.

 

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

 

“Parent Board” has the
meaning set forth in the Separation and Distribution Agreement.

 

“Parent Business” has
the meaning set forth in the Separation and Distribution Agreement.

 

“Parent Disqualifying Action”
means (i) any action (or the failure to take any action) by Parent or any Parent Entity (including entering into any agreement,
understanding or arrangement or any negotiations or discussions with respect to any transaction or series of transactions) that,
(ii) any acquisition of all or a portion, or any event (or series of events) involving, the Equity Securities of Parent, any assets
of Parent or any Equity Securities or assets of any Parent Entity, Internal Controlled or any Internal Controlled Entity that,
or (iii) any inaccuracy in or breach

 

    	 	6 	 

     

    

 

by Parent or any Parent Entity of any of the
representations, warranties or covenants of or made by Parent in this Agreement or in connection with the Tax Opinions, the IRS
Ruling, or any IRS Ruling Request (other than, in each case, any representations and warranties made by Parent on behalf of, or
with respect to, SpinCo or any SpinCo Entity) that, in each case, causes any of the Transactions to fail to have Tax-Free Status;
provided, however, that the term “Parent Disqualifying Action” shall not include any action expressly
contemplated by the Separation and Distribution Agreement or any Ancillary Agreement or that is undertaken pursuant to the Restructuring,
the Distribution or the Plan of Reorganization.

 

“Parent Entity” means
any member of the Parent Group other than Parent.

 

“Parent Group” means,
individually or collectively, as the case may be, (a) Parent and any of its Subsidiaries (including, for the avoidance of doubt,
any such Subsidiary that is treated as a “disregarded entity” for U.S. federal Income Tax purposes (or for purposes
of any state, local or foreign Tax law)) immediately after the Effective Time (and giving effect to the Restructuring and the Distribution),
(b) any Person that shall have merged or liquidated into Parent or any such Subsidiary and (c) any predecessor or successor to
any Person otherwise described in this definition.

 

The “Parent Mergers”
means the Mergers, as defined in the Second Amended and Restated Business Combination Agreement, dated as of April 17, 2015, by
and among Parent (then named Rome-Milan Holdings, Inc.), MeadWestvaco Corporation, a Delaware Corporation, Rock-Tenn Company, a
Georgia Corporation, Milan Merger Sub, LLC, a Delaware limited liability company and Rome Merger Sub, Inc., a Georgia corporation,
as restated and amended by the First Amendment to the Second Amended and Restated Business Combination Agreement, by and among
Parent (then named Rome-Milan Holdings, Inc.), MeadWestvaco Corporation, Rock-Tenn Company, Milan Merger Sub, LLC and Rome Merger
Sub, Inc.

 

“Parent Separate Tax Return”
means any Separate Return required to be filed by any member of the Parent Group.

 

“Parent Tax Proceeding”
has the meaning set forth in Section 7.02(a).

 

“Parent Taxes” means,
without duplication, (i) any Taxes of or imposed on Parent or any Parent Entity (including any Taxes reported on or otherwise imposed
with respect to a Combined Tax Return, but excluding any Restructuring/Distribution Taxes), whether imposed as a result of an Adjustment,
amendment or otherwise, (ii) any Restructuring Transfer Taxes (A) due in connection with an originally-filed Tax Return that Parent
determines to be due or (B) attributable to, or arising with respect to, assets or activities of the Parent Business (in the case
of clause (B), whether imposed as a result of an Adjustment, amendment or otherwise), (iii) any Restructuring/Distribution Taxes,
whether imposed as a result of an Adjustment, amendment or otherwise, and (iv) any Taxes attributable to a Parent Disqualifying
Action, whether imposed as a result of an Adjustment, amendment or otherwise; provided, that, notwithstanding anything in
clauses (i) through (iv) to the contrary, Parent Taxes shall not include any SpinCo Taxes (including, for the avoidance of doubt,
any Taxes attributable to a SpinCo Disqualifying Action).

 

“Party” has the meaning
set forth in the preamble.

 

    	 	7 	 

     

    

 

“Past Practice” has the
meaning set forth in Section 3.01(a).

 

“Payment Date” means
(i) with respect to any Combined Tax Return, the earliest of the due date for any required installment of estimated taxes determined
under Section 6655 of the Code or any similar provision of foreign Tax Law, the due date (determined without regard to extensions)
for filing the return determined under Section 6072 of the Code or any similar provision of foreign Tax Law, and the date the return
is filed, and (ii) with respect to any other Tax Return, the corresponding dates determined under the applicable Tax Law.

 

“Person” has the meaning
set forth in the Separation and Distribution Agreement.

 

“Plan of Reorganization”
has the meaning set forth in the Separation and Distribution Agreement.

 

“Post-Distribution Ruling”
has the meaning set forth in Section 8.02(d).

 

“Post-Separation Period”
means any taxable period (or portion thereof) beginning on or after the Distribution Date, including for the avoidance of doubt,
the portion of any Straddle Period beginning on or after the Distribution Date.

 

“Prime Rate” has the
meaning set forth in the Separation and Distribution Agreement.

 

“Record Holders” has
the meaning set forth in the Separation and Distribution Agreement.

 

“Refund” means any refund
(or credit in lieu thereof), drawback or other recovery of Taxes (including any overpayment of Taxes that can be refunded
or, alternatively, applied to other Taxes payable), including any interest paid on or with respect to such refund, credit,
drawback or other recovery of Taxes; provided, however, that for purposes of this Agreement, the amount of any
Refund required to be paid to another Party shall be reduced by the net amount of any Income Taxes imposed on, related to, or
attributable to, the receipt or accrual of such Refund.

 

“Representatives” has
the meaning set forth in the Separation and Distribution Agreement.

 

“Restriction Period”
means the period beginning on the date hereof and ending on the twenty five (25) month anniversary of the Distribution Date.

 

“Restructuring” has the
meaning set forth in the recitals and includes, for the avoidance of doubt, the Contribution and the Distribution.

 

“Restructuring/Distribution Taxes”
means any Taxes imposed on, in connection with, or by reason of the Restructuring or the Distribution (not including any Transfer
Taxes), other than any such Taxes caused by a Disqualifying Action.

 

“Restructuring Transfer Taxes”
means any Transfer Taxes imposed on, in connection with, or by reason of the Restructuring or the Distribution.

 

    	 	8 	 

     

    

 

“SAG”
has the meaning ascribed to the term “separate affiliated group” in Section 355(b)(3)(B) of the Code.

 

“Section 336(e) Election”
has the meaning set forth in Section 8.04.

 

“Separate Return” means
(i) in the case of any Tax Return required to be filed by any member of the Parent Group (including any consolidated, combined,
unitary or similar Tax Return), any such Tax Return that does not include any member of the SpinCo Group and (ii) in the case of
any Tax Return required to be filed by any member of the SpinCo Group (including any consolidated, combined, unitary or similar
Tax Return), any such Tax Return that does not include any member of the Parent Group.

 

“Separation and Distribution Agreement”
has the meaning set forth in the recitals.

 

“SpinCo” has the meaning
set forth in the preamble.

 

“SpinCo Active Trade or Business”
means the trade or business actively conducted (within the meaning of Section 355(b) of the Code) by SpinCo (taking into account
Section 355(b)(3) of the Code and Revenue Ruling 2007-42, 2007-2 C.B. 44) immediately prior to the Distribution and relied upon
to satisfy the requirements of Section 355(b) of the Code with respect to the Distribution, as set forth in the Tax Materials.

 

“SpinCo Assets” has the
meaning set forth in the Separation and Distribution Agreement.

 

“SpinCo Business” has
the meaning set forth in the Separation and Distribution Agreement.

 

“SpinCo Disqualifying Action”
means (i) any action (or the failure to take any action) by SpinCo or any SpinCo Entity (including entering into any agreement,
understanding or arrangement or any negotiations or discussions with respect to any transaction or series of transactions) that,
(ii) any acquisition of all or a portion, or any event (or series of events) involving, the Equity Securities of SpinCo, any assets
of SpinCo or any Equity Securities or assets of any SpinCo Entity, Internal Distributing or any Internal Distributing Entity that,
or (iii) any inaccuracy in or breach by SpinCo or any SpinCo Entity of any of the representations, warranties or covenants of or
made by SpinCo in this Agreement or in connection with the Tax Opinions, the IRS Ruling or any IRS Ruling Request (irrespective
of whether Parent made the same representation or warranty on behalf of, or with respect to, SpinCo or any SpinCo Entity), that,
in each case, causes any of the Transactions to fail to have Tax-Free Status (regardless of whether a Post-Distribution Ruling,
Unqualified Tax Opinion or Waiver may have been obtained or provided with respect to such action, event, inaccuracy or breach);
provided, however, that the term “SpinCo Disqualifying Action” shall not include any action expressly
contemplated by the Separation and Distribution Agreement or any Ancillary Agreement or that is undertaken pursuant to the Restructuring,
the Distribution or the Plan of Reorganization.

 

“SpinCo Entity” means
any member of the SpinCo Group other than SpinCo.

 

“SpinCo Group” means
individually or collectively, as the case may be, (a) SpinCo and any of its Subsidiaries (including, for the avoidance of doubt,
any such Subsidiary that is treated

 

    	 	9 	 

     

    

 

as a “disregarded entity” for
U.S. federal Income Tax purposes (or for purposes of any state, local or foreign Tax law)) immediately after the Effective Time
(and giving effect to the Restructuring and the Distribution), (b) any Person that shall have merged or liquidated into SpinCo
or any such Subsidiary and (c) any predecessor or successor to any Person otherwise described in this definition.

 

“SpinCo Liabilities”
has the meaning set forth in the Separation and Distribution Agreement.

 

“SpinCo Separate Tax Return”
means any Separate Return required to be filed by any member of the SpinCo Group.

 

“SpinCo Tax Proceeding”
has the meaning set forth in Section 7.02(a).

 

“SpinCo Taxes” means,
without duplication, (i) any Income Taxes of or imposed on any member of the SpinCo Group (including any Taxes reported on or otherwise
imposed with respect to a Combined Tax Return), in each case, for any Post-Separation Period, attributable to, or arising with
respect to, assets or activities of the SpinCo Business (excluding any Restructuring/Distribution Taxes or any Restructuring Transfer
Taxes), whether imposed as a result of an Adjustment, amendment or otherwise, (ii) any Non-Income Taxes of or imposed on any member
of the Parent Group or any member of the SpinCo Group (including any Taxes reported on or otherwise imposed with respect to a Combined
Tax Return), in each case, required to be paid in any Post-Separation Period, attributable to, or arising with respect to, assets
or activities of the SpinCo Business (excluding any Restructuring/Distribution Taxes or any Restructuring Transfer Taxes), whether
imposed as a result of an Adjustment or amendment or otherwise, (iii) any Restructuring Transfer Taxes resulting from an Adjustment
or amendment and attributable to, or arising with respect to, assets or activities of the SpinCo Business, and (iv) any Taxes attributable
to a SpinCo Disqualifying Action, whether imposed as a result of an Adjustment, amendment or otherwise; provided, that SpinCo
Taxes shall not include any Taxes attributable to a Parent Disqualifying Action.

 

“Straddle Period” means
any taxable period beginning on or prior to the Distribution Date and ending after the Distribution Date.

 

“Subsidiary” has the
meaning set forth in the Separation and Distribution Agreement.

 

“Tax” means (i) all taxes,
charges, fees, duties, levies, imposts, or other similar assessments, imposed by any U.S. federal, state or local or foreign governmental
authority, including, but not limited to (A) income, gross receipts, excise, property, sales, use, license, capital stock, transfer,
franchise, margin, payroll, withholding, social security, value added and other taxes and (B) for the avoidance of doubt, those
taxes listed on Schedule 1, (ii) any interest, penalties or additions attributable thereto and (iii) all liabilities
in respect of any items described in clause (i) or (ii) payable by reason of contract, transferee or successor liability, operation
of Law or Treasury Regulations Section 1.1502-6(a) (or any predecessor or successor thereof or any analogous or similar provision
under Law).

 

    	 	10 	 

     

    

 

“Tax Attributes” means
net operating losses, capital losses, credits, earnings and profits, overall foreign losses, previously taxed income, separate
limitation losses and all other Tax attributes.

 

“Tax Counsel” shall mean
tax counsel of recognized national standing that is acceptable to Parent.

 

“Tax Item” means any
item of income, gain, loss, deduction, credit, recapture of credit or any other item that increases or decreases Taxes paid or
payable.

 

“Tax Materials” means
(i) the IRS Ruling, (ii) the Tax Opinions, (iii) each submission to the IRS in connection with any IRS Ruling Request, (iv) the
representation letters from Parent and SpinCo addressed to Tax Counsel supporting the Tax Opinions and (v) any other materials delivered
or deliverable by Parent or SpinCo in connection with the rendering by Tax Counsel of the Tax Opinions or the issuance by the IRS
of the IRS Ruling.

 

“Tax Matter” has the
meaning set forth in Section 9.01.

 

“Tax Opinions” shall
mean the opinions issued by Tax Counsel to Parent with respect to certain Tax aspects of the Contribution and the Distribution,
as referenced in Section 3.3(a)(iv) of the Separation and Distribution Agreement.

 

“Tax Package” means all
relevant Tax-related information relating to the operations of the Parent Business or the SpinCo Business, as applicable, that
is reasonably necessary to prepare and file the applicable Tax Return.

 

“Tax Proceeding” means
any audit, assessment of Taxes, pre-filing agreement, other examination by any Taxing Authority, proceeding, appeal of a proceeding
or litigation relating to Taxes, whether administrative or judicial, including proceedings relating to competent authority determinations.

 

“Tax Return” means any
return, report, certificate, form or similar statement or document (including any related or supporting information or schedule
attached thereto and any information return, or declaration of estimated Tax) supplied to, filed with or required to be supplied
to or filed with, a Taxing Authority in connection with the payment, determination, assessment or collection of any Tax or the
administration of any Laws relating to any Tax and any amended Tax return or claim for refund.

 

“Tax-Free Status” means,
with respect to (a) the Contribution and the Distribution, taken together, and (b) the Internal Contribution and the Internal Distribution,
taken together, the qualification in each case thereof (i) as a reorganization described in Sections 355(a) and 368(a)(1)(D) of
the Code, (ii) as a transaction in which the stock distributed thereby is “qualified property” for purposes of Sections
355(c)(2) and 361(c) of the Code, and (iii) as a transaction in which Parent, SpinCo, members of the Parent Group, members of the
SpinCo group and the shareholders of Parent recognize no income or gain for U.S. federal Income Tax purposes pursuant to Sections
355, 361 and 1031 of the Code, other than intercompany items or excess loss accounts taken into account pursuant to the Treasury
Regulations promulgated pursuant to Section 1502 of the Code.

 

    	 	11 	 

     

    

 

“Taxing Authority” means
any governmental authority or any subdivision, agency, commission or entity thereof or any quasi-governmental or private body having
jurisdiction over the assessment, determination, collection or imposition of any Tax (including the IRS).

 

“Taxing Jurisdiction”
means the United States and every other government or governmental unit having jurisdiction to tax Parent, SpinCo or any of their
respective Affiliates.

 

“Transactions” means
the transactions referred to in the definition of “Tax-Free Status.”

 

“Transfer Taxes” means
all sales, use, transfer, real property transfer (whether such transfer is direct or indirect), intangible, recordation, registration,
documentary, stamp or similar Taxes.

 

“Treasury Regulations”
means the final and temporary (but not proposed) income Tax regulations promulgated under the Code, as such regulations may be
amended from time to time (including corresponding provisions of succeeding regulations).

 

“U.S.” means the United
States of America.

 

“Unqualified Tax Opinion”
means a “will” opinion, without substantive qualifications, of a nationally recognized law firm, which law firm is
reasonably acceptable to Parent, to the effect that a transaction will not affect the conclusions set forth in the Tax Opinions.

 

“Waiver” has the meaning
set forth in Section 8.02(d).

 

Section 1.02.         Additional
Definitions. Capitalized terms not defined in this Agreement shall have the meaning
ascribed to them in the Separation and Distribution Agreement.

 

Article
II

PREPARATION, FILING AND PAYMENT OF TAXES SHOWN DUE

ON TAX RETURNS

 

Section 2.01.         Combined
Tax Returns. Parent shall prepare and file (or cause to be prepared and filed)
all Combined Tax Returns and shall pay (or cause to be paid) all Taxes shown to be due and payable on such Tax Returns; provided,
that SpinCo shall reimburse Parent for any such Taxes that are SpinCo Taxes.

 

Section 2.02.         Parent
Separate Tax Returns. Parent shall prepare and file (or cause to be prepared and
filed) all Parent Separate Tax Returns and shall pay (or cause to be paid) all Taxes shown to be due and payable on such Tax Returns;
provided, that SpinCo shall reimburse Parent for any such Taxes that are SpinCo Taxes.

 

Section 2.03.         SpinCo
Separate Tax Returns. SpinCo shall prepare and file (or cause to be prepared and filed) all SpinCo Separate Tax Returns
(a) for Income Taxes with respect to all taxable periods beginning after the Distribution Date, and (b) for Non-Income Taxes with
respect to all Straddle Periods and all taxable periods beginning after the Distribution Date, and shall pay (or cause to be paid)
all Taxes shown to be due and payable on such Tax Returns; provided, that Parent shall reimburse SpinCo for any such Taxes
that are Parent Taxes. Parent shall prepare and file (or cause to be prepared and filed) all other SpinCo Separate Tax Returns
and shall pay (or cause to be paid) all Taxes shown to be due and payable on such Tax Returns; provided, that SpinCo shall
reimburse Parent for any such Taxes that are SpinCo Taxes.

 

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Section 2.04.         Restructuring
Transfer Tax Returns. Parent shall prepare and file (or cause to be prepared and
filed) all Tax Returns required to be filed with respect to Restructuring Transfer Taxes and Parent shall pay (or cause to be
paid) all Taxes shown to be due and payable on such Tax Returns; provided, that SpinCo shall reimburse Parent for any such
Taxes that are SpinCo Taxes.

 

Article
III

TAX RETURN PROCEDURES

 

Section 3.01.         Procedures
Relating to Combined Tax Returns and Parent Separate Tax Returns.

 

(a)          In
connection with the preparation of any Combined Tax Return pursuant to Section 2.01, any Parent Separate Tax Return pursuant
to Section 2.02 or any SpinCo Separate Tax Return required by this Agreement to be filed by Parent that may include Tax
Items relating to the activities or assets of the SpinCo Business, SpinCo will (and will cause the SpinCo Entities to) assist
and cooperate with Parent by preparing and providing to Parent such information and other documentation as may be requested by
or necessary to enable Parent, in such form as Parent may reasonably request, to prepare such Combined Tax Return, Parent
Separate Tax Return or SpinCo Separate Tax Return, including, but not limited to, pro forma Tax Returns for SpinCo and
any SpinCo Entity to be included in such Combined Tax Return or equivalent financial data to be used in the preparation of such
Parent Separate Tax Return or SpinCo Separate Tax Return, as applicable. Any such pro forma Tax Return or equivalent financial
data shall be prepared in accordance with past practices, accounting methods, elections and conventions (“Past Practice”),
unless otherwise required by Law or reasonably requested in writing by Parent, and shall be delivered no later than sixty (60)
days following Parent’s request therefor. At its option, Parent may engage an accounting firm of its choice to review the
pro forma Tax Return or equivalent financial data, supporting documentation, and statements submitted by SpinCo and in connection
therewith, shall determine whether such Tax Return was prepared in accordance with Past Practice. All costs and expenses associated
with such review will be borne by Parent.

 

(b)          Parent
(or its designee) shall determine the entities to be included in any Combined Tax Return and make or revoke any Tax elections,
adopt or change any Tax accounting methods, and determine any other position taken on or in respect of any Combined Tax Return,
Parent Separate Tax Return or any SpinCo Separate Tax Return required by this Agreement to be filed by Parent. Notwithstanding
the immediately preceding sentence, any such Combined Tax Return, Parent Separate Tax Return or SpinCo Separate
Tax Return shall, to the extent relating to SpinCo, any SpinCo Entity or the activities or assets of the SpinCo Business,
be prepared in good faith. Parent shall deliver to SpinCo for its review a draft of any Combined Tax Return, Parent Separate
Tax Return or SpinCo Separate Tax Return, in each case, if such Tax Return reflects or relates to Taxes for which SpinCo
would reasonably be expected to be liable hereunder, at least fifteen (15) days prior to the Due Date for such Tax Return to enable
SpinCo to analyze and comment on such Tax Return (along with a statement setting forth the calculation of the Tax shown due and
payable on such Tax Return reimbursable by SpinCo under Section 2.01 or Section 2.02). Parent shall in good faith consider any
such reasonable comments received from SpinCo and Parent and SpinCo shall attempt in good faith to resolve any issues arising
out of the review of any such Tax Return; provided, however, that nothing herein shall prevent Parent from timely
filing (or causing to be filed) any such Tax Return.

 

    	 	13 	 

     

    

 

Section 3.02.         Procedures
Relating to SpinCo Separate Tax Returns. In the case of any SpinCo Separate Tax Return required by this Agreement
to be filed by SpinCo that reflects or relates to Taxes for which Parent would reasonably be expected to be liable hereunder,
SpinCo shall (1) unless otherwise required by Law or agreed to in writing by Parent, prepare (or cause to be prepared) such Tax
Return in a manner consistent with Past Practice to the extent such items affect the Taxes for which Parent may be responsible
pursuant to this Agreement, and (2) submit to Parent a draft of any such Tax Return (along with a statement setting forth the
calculation of the Tax shown due and payable on such Tax Return reimbursable by Parent under Section 2.03) at least fifteen (15)
days prior to the Due Date for such Tax Return to enable Parent to analyze and comment on such Tax Return. SpinCo shall reflect
any such reasonable comments received from Parent in good faith, to the extent such comments relate to Taxes for which Parent
would reasonably be expected to be liable hereunder.

 

Section 3.03.         Preparation
of all Tax Returns. Except as required by applicable Law or as a result of a Final
Determination, (i) neither Parent nor SpinCo shall (nor shall cause or permit any members of the Parent Group or SpinCo Group,
respectively, to) take any position that is either inconsistent with the Tax-Free Status (or analogous status under any state
or local Law) or, with respect to a specific Tax Item on any Tax Return, treat such Tax Item in a manner that is inconsistent
with the manner such Tax Item is reported on a Tax Return prepared or filed by Parent pursuant to Article II hereof (including,
without limitation, the claiming of a deduction previously claimed on any such Tax Return) and (ii) Parent and SpinCo shall (and
shall cause the members of the Parent Group and SpinCo Group, respectively, to) prepare all Tax Returns in a manner consistent
with the terms of this Agreement and the Separation and Distribution Agreement.

 

Section 3.04.         Tax
Returns Reflecting Restructuring/Distribution Taxes. Notwithstanding
anything to the contrary in Articles II, III and IV, the portion of any Tax Return that relates to any Restructuring/Distribution
Taxes or any Taxes attributable to a Parent Disqualifying Action shall be prepared by Parent in the manner determined by Parent
in its sole discretion.

 

Article
IV

TAX TIMING AND ALLOCATION

 

Section 4.01.         Timing
of Payments. All Taxes required to be paid or caused to be paid pursuant to Article
II by either Parent or SpinCo, as the case may be, to an applicable Taxing Authority or to be reimbursed by Parent or SpinCo to
the other Party (or any member of its Group) pursuant to this Agreement, shall, in the case of a payment to a Taxing Authority,
be paid on or before the Due Date for the payment of such Taxes and, in the case of a payment to the other Party, be paid at least
two (2) business days before the Due Date for the payment of such Taxes by the other Party.

 

Section 4.02.         Expenses.
Except as otherwise expressly provided herein (including in Section 3.01), each Party shall bear its own expenses incurred in
connection with this Agreement.

 

Section 4.03.         Apportionment
of SpinCo Taxes. For all purposes of this Agreement, Parent shall determine in
its sole discretion exercised in good faith which Tax Items are properly

 

    	 	14 	 

     

    

 

attributable to assets or activities of the
SpinCo Business (and in the case of a Tax Item that is properly attributable to both the SpinCo Business and the Parent Business,
the allocation of such Tax Item between the SpinCo Business and the Parent Business).

 

Article
V

INDEMNIFICATION

 

Section 5.01.         Indemnification
by Parent. Parent shall pay, and shall indemnify and hold SpinCo and the SpinCo
Entities harmless from and against, without duplication, (i) all Parent Taxes, (ii) all Taxes incurred by SpinCo or any SpinCo
Entity as a result of any inaccuracy in or breach by Parent or any Parent Entity of any of the representations, warranties or
covenants of or made by Parent in this Agreement, and (iii) any costs and expenses related to the foregoing (including reasonable
fees of attorneys and experts and out-of-pocket expenses).

 

Section 5.02.         Indemnification
by SpinCo. SpinCo shall pay, and shall indemnify and hold Parent and the Parent
Entities harmless from and against, without duplication, (i) all SpinCo Taxes, (ii) all Taxes incurred by Parent or any Parent
Entity as a result of any inaccuracy in or breach by SpinCo or any SpinCo Entity of any of the representations, warranties or
covenants of or made by SpinCo in this Agreement, and (iii) any costs and expenses related to the foregoing (including reasonable
fees of attorneys and experts and out-of-pocket expenses).

 

Section 5.03.         Characterization
of and Adjustments to Payments.

 

(a)          For
all Tax purposes, the Parties agree to treat (and to cause their respective Affiliates to treat) (i) any payment required by this
Agreement (other than payments with respect to interest accruing after the Distribution Date) as either a contribution by Parent
to SpinCo or a distribution by SpinCo to Parent, as the case may be, occurring immediately prior to the Distribution or as a payment
of an assumed or retained Liability and (ii) any payment of non-federal Taxes by or to a Taxing Authority or any payment of interest
as taxable or deductible, as the case may be, to the Party entitled under this Agreement to retain such payment or required under
this Agreement to make such payment, in each case, except as otherwise required by applicable Law.

 

(b)          Any
indemnification payment under this Article V and under Article VI of the Separation and Distribution Agreement shall be increased
to take into account any inclusion in taxable income of the Indemnified Party arising from the receipt of such indemnity payment
and shall be decreased to take into account any reduction in taxable income of the Indemnified Party arising from such indemnified
Liability. For purposes hereof, any adjustment to an indemnification payment on account of Taxes shall be determined (i) using
the highest marginal rates in effect for Parent, in the case of an Indemnified Party that is a member of the Parent Group, or for
SpinCo, in the case of an Indemnified Party that is a member of the SpinCo Group, at the time of the determination and (ii) assuming
that the Indemnified Party will be liable for Taxes at such rate and has no Tax Attributes at the time of the determination.

 

Section 5.04.         Timing
of Indemnification Payments. Indemnification payments required pursuant to this
Article V shall be paid by the Indemnifying Party to the Indemnified Party within ten (10) business days of the receipt by the
Indemnifying Party of notification of the amount owed, together with reasonable documentation showing (i) the basis for the calculation
of such

 

    	 	15 	 

     

    

 

amount and (ii) if the Indemnified Party has
already paid such amount to the relevant Taxing Authority or other recipient, evidence of such payment.

 

Article
VI

REFUNDS, DEDUCTIONS

 

Section 6.01.         Refunds.

 

(a)          Parent
shall be entitled to all Refunds of Taxes for which Parent is responsible pursuant to Article II or for which Parent is or may
be liable pursuant to Article V, and SpinCo shall be entitled to all Refunds of Taxes for which SpinCo is responsible pursuant
to Article II or for which SpinCo is or may be liable pursuant to Article V. A Party receiving a Refund to which the other Party
is entitled pursuant to this Agreement shall pay the amount to which such other Party is entitled within ten (10) days after the
receipt of the Refund.

 

(b)          In
the event of an Adjustment relating to Taxes for which one Party is responsible pursuant to Article II or is or may be liable
pursuant to Article V which would have given rise to a Refund but for an offset against the Taxes for which the other Party is
or may be liable pursuant to Article V (the “Benefited Party”), then the Benefited Party shall pay to the other
Party, within ten (10) days of the Final Determination of such Adjustment an amount equal to the lesser of (i) the amount of such
hypothetical Refund or (ii) the amount of such reduction in the Taxes of the Benefited Party, in each case plus interest at the
rate set forth in Section 6621(a)(1) of the Code on such amount for the period from the filing date of the Tax Return that would
have given rise to such Refund to the payment date. For purposes of this Section 6.01(b), a decrease in taxable income shall be
considered to decrease Taxes of a Benefited Party, and an increase in taxable income shall be considered to increase
Taxes for which a party is or may be liable.

 

(c)          Notwithstanding
Section 6.01(a), to the extent that a Party applies or causes to be applied an overpayment of Taxes as a credit toward or a reduction
in Taxes otherwise payable (or a Taxing Authority requires such application in lieu of a Refund) and such overpayment of Taxes,
if received as a Refund, would have been payable by such Party to the other Party pursuant to this Section 6.01, such Party shall
pay such amount to the other Party no later than the Due Date of the Tax Return for which such overpayment is applied to reduce
Taxes otherwise payable.

 

(d)          To
the extent that the amount of any Refund under this Section 6.01 is later reduced by a Taxing Authority or a Tax Proceeding, such
reduction shall be allocated to the Party to which such Refund was allocated pursuant to this Section 6.01 and an appropriate adjusting
payment shall be made.

 

Section 6.02.         Treatment
of Deductions Associated with Equity-Related Compensation. The treatment of Tax
deductions associated with equity-related compensation shall be governed by Section 5.3 of the Employee Matters Agreement.

 

    	 	16 	 

     

    

 

Article
VII

TAX PROCEEDINGS

 

Section 7.01.         Notification
of Tax Proceedings. Within thirty (30) days after an Indemnified Party becomes
aware of the commencement of a Tax Proceeding that may give rise to Taxes for which an Indemnifying Party is responsible pursuant
to Article V, such Indemnified Party shall notify the Indemnifying Party of such Tax Proceeding, and thereafter shall promptly
forward or make available to the Indemnifying Party copies of notices and communications relating to such Tax Proceeding. The
failure of the Indemnified Party to notify the Indemnifying Party of the commencement of any such Tax Proceeding within such thirty
(30)-day period or promptly forward any further notices or communications shall not relieve the Indemnifying Party of any obligation
which it may have to the Indemnified Party under this Agreement except to the extent that the Indemnifying Party is actually prejudiced
by such failure.

 

Section 7.02.         Tax
Proceedings.

 

(a)          Generally.
Except as provided in Section 7.02(c)(i), Parent (or such member of the Parent Group as Parent shall designate) shall have the
sole right to control, and to represent the interests of the members of the Parent Group and the members of the SpinCo Group and
to employ counsel of its choice at its expense in, any Tax Proceeding (including any Tax Proceeding with respect to Restructuring/Distribution
Taxes) relating to (i) any Combined Tax Return, (ii) any Parent Separate Tax Return, (iii) any Restructuring/Distribution Taxes,
(iv) any SpinCo Separate Tax Return required by this Agreement to be filed by Parent or (v) any Non-Income Taxes
that are both SpinCo Taxes and Parent Taxes (each, a “Parent Tax Proceeding”). Except as provided in Section
7.02(c)(ii), SpinCo (or such member of the SpinCo Group as SpinCo shall designate) shall have the sole right to control, and to
represent the interests of the members of the SpinCo Group and to employ counsel of its choice at its expense in, (i) any Tax
Proceeding relating to any SpinCo Separate Tax Return required by this Agreement to be filed by SpinCo and (ii) any Non-Income
Taxes or Restructuring Transfer Taxes that are attributable to, or arise with respect to, assets or activities of the SpinCo Business,
in each case, other than a Parent Tax Proceeding (a “SpinCo Tax Proceeding”).

 

(b)          Power
of Attorney. SpinCo shall (and shall cause the members of the SpinCo Group to) execute and deliver to Parent (or such member
of the Parent Group as Parent shall designate) any power of attorney or other document reasonably requested by Parent (or such
designee) in connection with any Parent Tax Proceeding.

 

(c)          Participation
Rights.

 

(i)          Parent
Tax Proceedings. In the event of any Parent Tax Proceeding the resolution of which could reasonably be expected to give rise
to an indemnification obligation of SpinCo pursuant to Article V, (A) Parent shall consult with SpinCo reasonably in advance of
taking any significant action in connection with such Tax Proceeding, (B) Parent shall consult with SpinCo and offer SpinCo a reasonable
opportunity to comment before submitting any written materials prepared or furnished in connection with such Tax Proceeding, (C)
Parent shall defend such Tax Proceeding diligently and in good faith as if it were the only party in interest in connection with
such Tax Proceeding, and (D) Parent shall provide SpinCo copies of any written materials relating to such Tax Proceeding received
from the relevant Taxing Authority.

 

    	 	17 	 

     

    

 

Notwithstanding anything in the preceding
sentence to the contrary, the final determination of the positions taken, including with respect to settlement or other disposition,
in any Parent Tax Proceeding shall be made in the sole discretion of Parent and shall be final and not subject to the dispute resolution
provisions of Section 10.01 (or, for the avoidance of doubt, Article VII of the Separation and Distribution Agreement).

 

(ii)         SpinCo
Tax Proceedings. In the event of any SpinCo Tax Proceeding the resolution of which could reasonably be expected to give rise
to an indemnification obligation of Parent pursuant to Article V or which otherwise could reasonably be expected to have an adverse
impact on Parent, (A) SpinCo shall consult with Parent reasonably in advance of taking any significant action in connection with
such Tax Proceeding, (B) SpinCo shall consult with Parent and offer Parent a reasonable opportunity to comment before submitting
any written materials prepared or furnished in connection with such Tax Proceeding, (C) SpinCo shall defend such Tax Proceeding
diligently and in good faith as if it were the only party in interest in connection with such Tax Proceeding, (D) SpinCo shall
provide Parent copies of any written materials relating to such Tax Proceeding received from the relevant Taxing Authority, (E) Parent
shall be entitled to participate in such Tax Proceeding at its own expense and (F) SpinCo shall not settle, compromise or abandon
any such Tax Proceeding without obtaining the prior written consent of Parent, which consent shall not be unreasonably withheld,
conditioned or delayed.

 

Article
VIII

TAX-FREE STATUS OF THE TRANSACTIONS

 

Section 8.01.         Representations
and Warranties.

 

(a)          SpinCo.
SpinCo hereby represents and warrants that (i) it has examined the Tax Materials, and (ii) the facts presented and the representations
made in the Tax Materials, to the extent descriptive of or in reference to the SpinCo Group or the SpinCo Business (including with
respect to the plans, proposals, intentions and policies of the SpinCo Group), are true, correct and complete in all respects.

 

(b)          Parent.
Parent hereby represents and warrants that (i) it has delivered complete and accurate copies of the Tax Materials to SpinCo and
(ii) the facts presented and the representations made in the Tax Materials, to the extent descriptive of or in reference to the
Parent Group or the Parent Business (including with respect to the business purposes for the Distribution described in the Tax
Materials and the plans, proposals, intentions and policies of the Parent Group), are true, correct and complete in all respects.

 

(c)          No
Contrary Plan. Each of Parent and SpinCo represents and warrants that neither it, nor any of its Affiliates, has any plan or
intention to take any action (or fail to take any action) or knows of any fact or circumstance (after due inquiry) (A) which is
inconsistent with any statements or representations made in the Tax Materials, this Agreement or the Separation and Distribution
Agreement (or that could cause any such statements or representations to be untrue) or (B) which may cause any of the Transactions
not to have Tax-Free Status.

 

    	 	18 	 

     

    

 

Section 8.02.         Restrictions
Relating to the Distribution.

 

(a)          General.
SpinCo shall not, and shall not permit any SpinCo Entity to, take any action that constitutes (and shall not fail to take an action,
the omission of which would result in) a Disqualifying Action described in the definition of SpinCo Disqualifying Action.

 

(b)          SpinCo
Obligations. SpinCo shall not take any action (including, but not limited to, any cessation, transfer or disposition of all
or any portion of any SpinCo Business, payment of extraordinary dividends and acquisitions or issuance of Equity Securities) or
permit any member of the SpinCo Group to take any such action, and SpinCo shall not fail to take any such action or permit any
SpinCo Entity to fail to take any such action, in each case, unless such action or failure to act (x) could not reasonably be expected
to cause any of the Transactions to fail to have Tax-Free Status or (y) could not require Parent or SpinCo to reflect a liability
or reserve for Taxes or other amounts with respect to the Transactions in its financial statements.

 

(c)          SpinCo
Restrictions. Prior to the first (1st) day after the end of the Restriction Period, SpinCo:

 

(i)          (x)
shall continue and/or cause to be continued the active conduct (within the meaning of Section 355(b) of the Code) of the SpinCo
Active Trade or Business and the Internal Distributing Active Trade or Business (by Internal Distributing) as conducted immediately
prior to the Distribution, taking into account Section 355(b)(3) of the Code and Revenue Ruling 2007-42, 2007-2 C.B. 44, and (y)
shall not engage (or permit Internal Distributing or any other SpinCo Entity to engage) in any transaction (including, without
limitation, any cessation, transfer or disposition of all or any portion of any SpinCo Business) that could reasonably be expected
to result in either SpinCo ceasing to be a company engaged in the SpinCo Active Trade or Business or Internal Distributing ceasing
to be a company engaged in the Internal Distributing Active Trade or Business.

 

(ii)         shall
not, and shall not permit any SpinCo Entity, Internal Distributing or any Internal Distributing Entity (other than any SpinCo Entity
or Internal Distributing Entity treated as an entity disregarded as separate from its owner for U.S. federal Income Tax purposes)
to voluntarily dissolve or liquidate (or take any other action or enter into any transaction that would effect a liquidation for
U.S. federal Income Tax purposes).

 

(iii)        shall
not (1) enter into, solicit, agree to, participate in, approve or effect any Acquisition Transaction or any Internal Distributing
Acquisition Transaction or, to the extent SpinCo has the right to prohibit any Acquisition Transaction or any Internal Distributing
Acquisition Transaction, permit any Acquisition Transaction or any Internal Distributing Acquisition Transaction to occur, (2)
redeem or otherwise repurchase or agree to redeem or otherwise repurchase (directly or through an Affiliate) any Equity Securities
of SpinCo or Internal Distributing, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30
(as in effect prior to the amendment of such Revenue Procedure by Revenue Procedure 2003-48), (3) amend SpinCo’s or Internal
Distributing’s certificate of incorporation (or other organizational documents), or take any other action, whether through
a stockholder vote or otherwise, affecting the relative voting rights of SpinCo’s or Internal Distributing’s Equity
Securities (including through the conversion of any Equity Securities into another class of Equity Securities), (4) merge or consolidate
(or agree to merge or consolidate) with any other Person or permit any SpinCo Entity, Internal Distributing or any Internal Distributing
Entity to merge or consolidate

 

    	 	19 	 

     

    

 

(or agree to merger or consolidate) with any
other Person (other than, (A) in the case of a SpinCo Entity, either SpinCo or another SpinCo Entity, or (B) in the case of an
Internal Distributing Entity, Internal Distributing or another Internal Distributing Entity) or (5) take any other action or actions
(including any action or transaction that would be reasonably likely to be inconsistent with any statement or representation made
in the Tax Materials) which, individually or in the aggregate (and taking into account any other transactions described in this
Section 8.02(c)(iii)) would be reasonably likely to have the effect of causing or permitting one or more Persons (whether or not
acting in concert) to acquire, directly or indirectly, Equity Securities representing a Fifty-Percent or Greater Interest in SpinCo
or Internal Distributing or otherwise jeopardize the Tax-Free Status of any of the Transactions. In addition, SpinCo shall not
at any time, whether before or subsequent to the expiration of the Restriction Period, engage in or permit any action described
in the immediately preceding sentence if it is pursuant to an agreement negotiated (in whole or in part) prior to the first (1st)
day after the end of the Restriction Period, even if at the time of the Distribution or thereafter such action is subject to various
conditions.

 

(iv)        (1)
shall not, and shall not permit any SpinCo Entity to, sell, transfer, or otherwise dispose of or agree to, sell, transfer or otherwise
dispose (including in any transaction treated for U.S. federal Income Tax purposes as a sale, transfer or disposition) of assets
(including, any shares of Equity Securities of a Subsidiary) that, in the aggregate, constitute more than thirty percent (30%)
of the gross assets of SpinCo or more than thirty percent (30%) of the consolidated gross assets of SpinCo and the members of its
SAG; and (2) shall not permit Internal Distributing or any Internal Distributing Entity to sell, transfer, or otherwise dispose
of or agree to, sell, transfer or otherwise dispose (including in any transaction treated for U.S. federal Income Tax purposes
as a sale, transfer or disposition) of assets (including, any shares of Equity Securities of a Subsidiary) that, in the aggregate,
constitute more than thirty percent (30%) of the gross assets of Internal Distributing or more than thirty percent (30%) of the
consolidated gross assets of Internal Distributing and the members of its SAG. The foregoing sentence shall not apply to (A) sales,
transfers, or dispositions of assets in the Ordinary Course of Business, (B) any cash paid to acquire assets from an unrelated
Person in an arm’s-length transaction, (C) any assets transferred to a Person that is disregarded as an entity separate
from the transferor for U.S. federal Income Tax purposes or (D) any mandatory or optional repayment (or pre-payment) of any indebtedness
of SpinCo or Internal Distributing, as applicable (or any member of the applicable SAG). The percentages of gross assets of SpinCo
or of the consolidated gross assets of SpinCo and the members of its SAG, as the case may be, sold, transferred, or otherwise disposed
of, shall be based on the fair market value of the gross assets of such entity or entities as of the Distribution Date. The percentages
of gross assets of Internal Distributing or of the consolidated gross assets of Internal Distributing and the members of its SAG,
as the case may be, sold, transferred, or otherwise disposed of, shall be based on the fair market value of the gross assets of
such entity or entities as of the date of the Internal Distribution. For purposes of this Section 8.02(c)(iv), a merger of SpinCo
or Internal Distributing (or a member of the applicable SAG) with and into any Person shall constitute a disposition of all of
the assets of such entity or such member.

 

(d)          Notwithstanding
the restrictions imposed by Section 8.02(c), during the Restriction Period, SpinCo may proceed with (or permit to proceed) any
of the actions or transactions described in Section 8.02(c), if (x) such action or transaction is not described in Section 8.02(a)
or Section 8.02(b) and (y) prior to entering into any agreement contemplating such action

 

    	 	20 	 

     

    

 

or transaction, and prior to taking or consummating
any such action or transaction, (i) SpinCo shall first have requested Parent to obtain a private letter ruling from the IRS (and
any other relevant Taxing Authority) (a “Post-Distribution Ruling”) in accordance with Section 8.03(d) of this
Agreement to the effect that such action or transaction will not affect the Tax-Free Status of any of the Transactions and Parent
shall have received such Post-Distribution Ruling in form and substance satisfactory to Parent in its sole and absolute discretion,
(ii) SpinCo shall have provided Parent with an Unqualified Tax Opinion in form and substance satisfactory to Parent in its
sole and absolute discretion, or (iii) Parent shall have waived in writing (a “Waiver”) the requirement to obtain
such Post-Distribution Ruling or Unqualified Tax Opinion. In determining whether a Post-Distribution Ruling or Unqualified Tax
Opinion is satisfactory, Parent shall exercise its discretion in good faith and may consider, among other factors, the appropriateness
of any underlying assumptions or representations used as a basis for the Post-Distribution Ruling or Unqualified Tax Opinion and
the views on the substantive merits. For the avoidance of doubt, SpinCo shall not be relieved of any indemnification obligation
pursuant to Article V or otherwise under this Agreement as a result of having satisfied the requirements of clauses (i), (ii) or
(iii) of this Section 8.02(d).

 

(e)          Tax
Reporting. Each of SpinCo and Parent covenants and agrees that it will not take, and will cause its respective Affiliates not
to take, any position on any Tax Return that is inconsistent with the Tax-Free Status of the Transactions.

 

Section 8.03.         Procedures
Regarding Post-Distribution Rulings and Unqualified Tax Opinions.

 

(a)          Notification.
If SpinCo determines that it desires to take one of the actions described in Section 8.02(c) (a “Notified Action”),
SpinCo shall promptly notify Parent of this fact in writing.

 

(b)          Post-Distribution
Rulings or Unqualified Tax Opinions at SpinCo’s Request. Upon the reasonable request of SpinCo pursuant to Section 8.03(a),
Parent shall cooperate with SpinCo and use its commercially reasonable efforts to seek to obtain, as expeditiously as possible,
a Post-Distribution Ruling or an Unqualified Tax Opinion for the purpose of permitting SpinCo to take the Notified Action unless
Parent shall have waived the requirement to obtain such Post-Distribution Ruling or Unqualified Tax Opinion in writing pursuant
to Section 8.02(d). Notwithstanding the foregoing, in no event shall Parent be required to file or cooperate in the filing of any
ruling request for a Post-Distribution Ruling under this Section 8.03(b) unless SpinCo represents that (i) it has read such ruling
request, and (ii) all statements, information and representations relating to any member of the SpinCo Group contained in such
ruling request are (subject to any qualifications therein) true, correct and complete. SpinCo shall reimburse Parent for all reasonable
costs and expenses incurred by the Parent Group in obtaining a Post-Distribution Ruling or Unqualified Tax Opinion requested by
Parent within ten (10) days after receiving an invoice from Parent therefor.

 

(c)          Post-Distribution
Rulings or Unqualified Tax Opinions at Parent’s Request. Parent shall have the right to obtain a Post-Distribution Ruling
or a tax opinion at any time in its sole and absolute discretion. If Parent determines to obtain a Post-Distribution Ruling or
a tax opinion, SpinCo shall (and shall cause each SpinCo Entity to) cooperate with Parent and use

 

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commercial reasonably efforts to take any
and all actions reasonably requested by Parent in connection with obtaining such Post-Distribution Ruling or tax opinion (including,
without limitation, by making any representation or covenant or providing any information, documents and materials requested by
the IRS, any other relevant Taxing Authority or the Tax Counsel issuing such opinion); provided, that SpinCo shall not be
required to make (or cause a SpinCo Entity to make) any representation or covenant that is inconsistent with historical facts or
as to future matters or events over which it has no control. Parent and SpinCo shall each bear its own costs and expenses in obtaining
a Post-Distribution Ruling or tax opinion requested by Parent.

 

(d)          All
Post-Distribution Rulings. Parent shall have sole and exclusive control over the process of obtaining any Post-Distribution
Ruling, and only Parent shall be permitted to apply for a Post-Distribution Ruling. In connection with obtaining a Post-Distribution
Ruling, (i) Parent shall keep SpinCo informed in a timely manner of all material actions taken or proposed to be taken by
Parent in connection therewith; (ii) Parent shall (1) reasonably in advance of the submission of any request for a Post-Distribution
Ruling provide SpinCo with a draft copy thereof; (2) reasonably consider SpinCo’s comments on such draft copy; and (3) provide
SpinCo with a final copy; and (iii) Parent shall provide SpinCo with notice reasonably in advance of, and SpinCo shall have the
right to attend, any formally scheduled meetings with the IRS (subject to the approval of the IRS) that relate to such Post-Distribution
Ruling. Neither SpinCo nor any SpinCo Entity shall seek any guidance from the IRS or any other Taxing Authority (whether written,
verbal or otherwise) at any time concerning the Restructuring, the Distribution, the Internal Contribution or the Internal Distribution
(including the impact of any transaction on the Restructuring, the Distribution, the Internal Contribution or the Internal Distribution,
as applicable) without Parent’s prior written consent.

 

Section 8.04.         Section
336(e) Election. The Parties agree that (i) Parent and SpinCo shall enter into
a written, binding agreement and (ii) Parent and Internal Distributing, as applicable, shall timely make a protective election
under Section 336(e) of the Code (and any similar provision of any relevant U.S. state or local jurisdiction) and Treasury Regulation
Section 1.336-2(j) (each election, a “Section 336(e) Election”), with respect to the Distribution and the Internal
Distribution, in each case, in accordance with Treasury Regulation Section 1.336-2(h). SpinCo shall (or shall cause the relevant
SpinCo Entity or Internal Distributing Entity to) join with Parent or the relevant Parent Entity in the making of such election
and shall take any action reasonably requested by Parent or that is otherwise necessary to give effect to such election (including
making any other related election). To the extent, pursuant to a Final Determination, the Distribution or the Internal Distribution
constitutes a “qualified stock disposition,” as defined in Treasury Regulation Section 1.336-1(b)(6), the Parties
shall not and shall not permit any of their respective Subsidiaries to, take any position for Tax purposes inconsistent with the
relevant Section 336(e) Election, except as may be required pursuant to a Final Determination. For the avoidance of doubt,
in the event that (x) Section 336(e) applies to the Distribution and (y) neither Section 355(c) nor Section 361(c) applies to
the Internal Distribution, Parent shall be permitted to make an election under Treasury Regulation Section 1.1502-13(f)(5)(ii)
in accordance with Treasury Regulation Section 1.1502-13(f)(5)(ii)(E) and specifying Treasury Regulation Section 1.1502-13(f)(5)(ii)(C)
as the basis for relief. In the event the Transactions fail to have Tax-Free Status and Parent is not entitled to indemnification
for any Taxes or Losses arising from such failure, SpinCo shall pay over to Parent any refund, credit, or other reduction in otherwise
required Tax payments realized by the SpinCo Group or any member of the SpinCo Group arising from the

 

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step-up in Tax basis resulting from a Section
336(e) Election. In the event the Transactions fail to have Tax-Free Status and Parent is entitled to indemnification for any Taxes
or Losses arising from such failure, the Restructuring/Distribution Taxes subject to such indemnification shall include any additional
Taxes payable by Parent and its affiliates as a result of the relevant Section 336(e) Election.

 

Article
IX

COOPERATION

 

Section 9.01.         General
Cooperation.

 

(a)          The
Parties shall each cooperate fully (and each shall cause its respective Subsidiaries to cooperate fully) with all reasonable requests
in writing from the other Party hereto, or from an agent or Representative of such Party, in connection with the preparation and
filing of Tax Returns (including the preparation of Tax Packages), claims for Refunds, Tax Proceedings, and calculations of amounts
required to be paid pursuant to this Agreement, in each case, related or attributable to or arising in connection with Taxes of
any of the Parties or their respective Subsidiaries covered by this Agreement and the establishment of any reserve required in
connection with any financial reporting (a “Tax Matter”). Such cooperation shall include the provision of any
information reasonably necessary or helpful in connection with a Tax Matter (“Information”) and shall include,
without limitation, at each Party’s own cost:

 

(i)          the
provision of any Tax Returns of the Parties and their respective Subsidiaries, books, records (including information regarding
ownership, Tax basis of property, and earnings and profits), documentation and other information relating to such Tax Returns,
including accompanying schedules, related work papers, and documents relating to rulings or other determinations by Taxing Authorities;

 

(ii)         the
execution of any document (including any power of attorney) in connection with any Tax Proceedings of any of the Parties or their
respective Subsidiaries, or the filing of a Tax Return or a Refund claim of the Parties or any of their respective Subsidiaries;

 

(iii)        the
use of the Party’s reasonable best efforts to obtain any documentation in connection with a Tax Matter; and

 

(iv)        the
use of the Party’s reasonable best efforts to obtain any Tax Returns (including accompanying schedules, related work papers,
and documents), documents, books, records or other information in connection with the filing of any Tax Returns of any of the Parties
or their Subsidiaries.

 

(b)          Each
Party shall make its employees, advisors, and facilities available, without charge, on a reasonable and mutually convenient basis
in connection with the foregoing matters.

 

Section 9.02.         Retention
of Records. Parent and SpinCo shall retain or cause to be retained all Tax Returns,
schedules and work papers, and all material records or other documents relating thereto in their possession, until sixty (60)
days after the expiration of the applicable statute of limitations (including any waivers or extensions thereof) of the taxable
periods to which such Tax Returns and other documents relate or until the expiration of any additional

 

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period that any Party reasonably requests,
in writing, with respect to specific material records or documents. A Party intending to destroy any material records or documents
shall provide the other Party with reasonable advance notice and the opportunity to copy or take possession of such records and
documents. The Parties hereto will notify each other in writing of any waivers or extensions of the applicable statute of limitations
that may affect the period for which the foregoing records or other documents must be retained.

 

Article
X

MISCELLANEOUS

 

Section 10.01.         
Dispute Resolution. In the event of any dispute between the Parties as to
any matter covered by this Agreement, the Parties shall cooperate in good faith to resolve such dispute. If the Parties cannot
resolve such dispute within thirty (30) days from the time such dispute arises, Parent shall, in its reasonable discretion, resolve
such dispute, after considering in good faith any comments provided by SpinCo.

 

Section 10.02.         
Tax Sharing Agreements. All Tax sharing, indemnification and similar agreements,
written or unwritten, as between Parent or a Parent Entity, on the one hand, and SpinCo or a SpinCo Entity, on the other hand
(other than this Agreement, the Separation and Distribution Agreement, any other Ancillary Agreement and any agreement entered
into after the Distribution), shall be or shall have been terminated no later than the Effective Time and, after the Effective
Time, none of Parent, any Parent Entity, SpinCo or any SpinCo Entity shall have any further rights or obligations under any such
Tax sharing, indemnification or similar agreement.

 

Section 10.03.         
Interest on Late Payments. With respect to any payment between the Parties
pursuant to this Agreement not made by the due date set forth in this Agreement for such payment, the outstanding amount will
accrue interest at a rate per annum equal to the rate in effect for underpayments under Section 6621 of the Code from such due
date to and including the earlier of the ninetieth (90th) day or the payment date, and thereafter will accrue interest at a rate
per annum equal to Prime Rate plus 2%.

 

Section 10.04.         
Survival of Covenants. Except as otherwise contemplated by this Agreement,
all covenants and agreements of the Parties contained in this Agreement shall survive the Effective Time and remain in full force
and effect in accordance with their applicable terms; provided, however, that the representations and warranties
and all indemnification for Taxes shall survive until sixty (60) days following the expiration of the applicable statute of limitations
(taking into account all extensions thereof), if any, for assessment of the Tax that gave rise to the indemnification; provided,
further, that, in the event that notice for indemnification has been given within the applicable survival period, such
indemnification shall survive until such time as such claim is finally resolved.

 

Section 10.05.         
Severability. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced under any Law or as a matter of public policy, all other conditions and provisions of this
Agreement shall remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal
or incapable of being enforced, the

 

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Parties to this Agreement shall negotiate
in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually
acceptable manner.

 

Section 10.06.         
Entire Agreement. Except as otherwise expressly provided in this Agreement
and subject to Section 10.12 hereof, this Agreement, the Employee Matters Agreement, and the Separation and Distribution Agreement
constitute the entire agreement of the Parties hereto with respect to the subject matter of this Agreement and supersede all prior
agreements and undertakings, both written and oral, between or on behalf of the Parties hereto with respect to the subject matter
of this Agreement.

 

Section 10.07.         
No Third-Party Beneficiaries. Except as provided in Article V with respect
to indemnified Parties, this Agreement is for the sole benefit of the Parties to this Agreement and their respective Subsidiaries
and their permitted successors and assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon
any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section 10.08.         
Specific Performance. 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 who is or is to be thereby aggrieved shall
have the right to specific performance and injunctive or other equitable relief of its 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 waived by the Parties to this Agreement.

 

Section 10.09.         
Amendment. No provision of this Agreement may be amended or modified except
by a written instrument signed by the Parties to this Agreement. No waiver by any Party of any provision of this Agreement shall
be effective unless explicitly set forth in writing and executed by the Party so waiving. The waiver by any Party of a breach
of any provision of this Agreement shall not operate or be construed as a waiver of any other subsequent breach.

 

Section 10.10.         
Rules of Construction. Interpretation of this Agreement shall be governed
by the following rules of construction: (i) words in the singular shall be held to include the plural and vice versa and words
of one gender shall be held to include the other gender as the context requires; (ii) references to the terms Article, Section,
paragraph, clause, Exhibit and Schedule are references to the Articles, Sections, paragraphs, clauses, exhibits and schedules
of this Agreement unless otherwise specified; (iii) the terms “hereof,” “herein,” “hereby,”
“hereto,” and derivative or similar words refer to this entire Agreement, including the Schedules and Exhibits hereto;
(iv) references to “$” shall mean U.S. dollars; (v) the word “including” and words of similar import
when used in this Agreement shall mean “including without limitation,” unless otherwise specified; (vi) the word “or”
shall not be exclusive; (vii) references to “written” or “in writing” include in electronic form; (viii)
provisions shall apply, when appropriate, to successive events and transactions; (ix) the table of contents and headings contained
in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement;
(x) Parent and SpinCo have each participated in the negotiation and drafting of this

 

    	 	25 	 

     

    

 

Agreement and if an ambiguity or question
of interpretation should arise, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption
or burden of proof shall arise favoring or burdening either Party by virtue of the authorship of any of the provisions in this
Agreement or any interim drafts of this Agreement; and (xi) a reference to any Person includes such Person’s successors and
permitted assigns.

 

Section 10.11.         
Counterparts. This Agreement may be executed in one or more counterparts,
each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or portable document format
(PDF) shall be as effective as delivery of a manually executed counterpart of any such Agreement.

 

Section 10.12.         
Coordination with Separation and Distribution Agreement. In the event of
any inconsistency between this Agreement and the Separation and Distribution Agreement, the Employee Matters Agreement, or any
other Ancillary Agreement with respect to matters addressed herein the provisions of this Agreement shall control.

 

Section 10.13.         
Coordination with the Employee Matters Agreement. To the extent any covenants
or agreements between the Parties with respect to employee withholding Taxes are expressly set forth in the Employee Matters Agreement,
such Taxes shall be governed exclusively by the Employee Matters Agreement and not by this Agreement.

 

Section 10.14.         
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 10.15.         
Assignability. This Agreement shall be binding upon and inure to the benefit
of the Parties and their respective successors and permitted assigns. Neither Party may assign its rights or delegate its obligations
under this Agreement without the express prior written consent of the other Party hereto; provided, however, that
each Party may assign all of its rights and obligations under this Agreement to any of its Subsidiaries; provided, further,
that no such assignment shall release the assigning Party from any of its liabilities or obligations under this Agreement.

 

Section 10.16.         
Notices. Any notice, demand, claim or other communication under this Agreement
will be in writing and will be deemed to have been given (a) on delivery if delivered personally; (b) on the date on which delivery
thereof is guaranteed by the carrier if delivered by a national courier guaranteeing delivery within a fixed number of days of
sending; or (c) on the date of facsimile transmission thereof if delivery is confirmed, but, in each case, only if addressed to
the Parties in the following manner at the following addresses or facsimile numbers (or at the other address or other number as
a Party may specify by notice to the others):

 

    	 	26 	 

     

    

 

If to Parent, to:

 

WestRock Company

504 Thrasher Street

Norcross, GA 30071

Attention:    Chief Financial Officer

 

with a copy (until the Effective Time) to:

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street

New York, New York 10019
 Facsimile:    (212) 403-2000

 

If to SpinCo, to:

 

Ingevity Corporation

5255 Virginia Avenue

North Charleston, SC 29406

Attention:    General Counsel

 

with a copy (until the Effective Time) to:

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street

New York, New York 10019
 

Facsimile:    (212) 403-2000

 

Section 10.17.         
Effective Date. This Agreement shall become effective only upon the occurrence
of the Distribution.

 

[The remainder of this page is intentionally
left blank.]

 

    	 	27 	 

     

    

 

IN WITNESS WHEREOF, the Parties have caused
this Agreement to be executed by their duly authorized representatives as of the day and year first above written.

 

	 	WESTROCK COMPANY
	 	 
	 	By:	/s/ Robert B. McIntosh
	 	Name:	Robert B. McIntosh
	 	Title:	Executive Vice President, General Counsel
	 	 
	 	INGEVITY CORPORATION
	 	 
	 	By:	/s/ Edward A. Rose
	 	Name:	Edward A. Rose
	 	Title:	President, Specialty Chemicals

 

[Signature Page to Tax Matters Agreement]

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