Document:

Exhibit

Hostess Brands, Inc. Incentive Compensation Plan
for Exempt Non-Sales Employees

Introduction
The Hostess Brands, Inc. (the “Company”) Incentive Compensation Plan for Exempt Non-Sales Employees (the “Plan”) provides the opportunity for compensation in addition to base salary to designated employees.  The Plan is designed to motivate eligible employees to grow the business through increased sales, profitability and valuable contribution within their area of expertise.   While employees play many different roles within the Company, the Company will only be successful if all employees are focused on achieving common goals, strive individually for functional excellence in their assigned roles and contribute to organizational excellence as a team.  Eligible employees will receive incentive compensation under the Plan (“Incentive Comp”) if the Company achieves certain designated results (the “Metric(s)”).  EBIDTA and Net Revenue Metric(s) will be approved by the Talent and Compensation Committee (the “Committee”).

Administration
		
	•
	The Plan will be administered by the Committee, which will have the full power and authority to interpret and administer the Plan.  All decisions and determinations of the Committee shall be final, conclusive and binding.  The Committee may delegate such duties or responsibilities to an officer of the Company as it deems desirable. 

		
	•
	The Plan year begins on January 1st and ends on December 31st. The calculation of any Incentive Comp payments will be based on an eligible employee’s Incentive Comp level and current base salary. Eligible employees, as defined below, are assigned an Incentive Comp level (percentage of base salary) based on their position or specified in their offer letter. For example, if an eligible employee’s base salary is $100,000, paid in equal increments over a year and that employee has a 20% Incentive Comp level, the Incentive Comp opportunity would be $100,000 x 20% or $20,000.

		
	•
	Plan Metrics will measure achievement of (i) EBITDA, (ii) Net Revenue, and (iii) Strategic Goals weighted as follows:

		
	•
	40% - EBITDA

		
	•
	40% - Net Revenue

		
	•
	20% - Strategic Goals (team or individual goals as applicable)

		
	•
	Attainment of not less than 93% of the Company’s Annual Operating Plan established EBITDA must be achieved in order to establish funding for Incentive Comp payments under any Metric to occur.  If achieved, funding for each Metric is independent and will be calculated based on the weighting noted above.

		
	•
	The amount eligible for payment based on attainment of the Net Revenue Metric will be determined based on the same schedule as EBITDA set out below. For example, if 98% of the Net Revenue Metric is achieved, 85% of the amount payable based on attainment of the Net Revenue Metric would be eligible for payment.

		
	•
	Strategic Goals Metrics will be based on actual performance on budgeted financial and other established goals, such as revenue growth, cost control, case or dollar volume, specific tasks to be accomplished, etc. 

		
	•
	Minimum of 3 goals and a maximum of 5 goals are set by the functional Manager near the start of the Plan year.

		
	•
	The amount eligible for payment related to Strategic Goals Metrics would range from 0% to 100% based on the proportion of goals achieved.  So, for example, if three out of four team goals were achieved, team component for that group would fund at 75% of target.

		
	•
	The Committee shall determine the extent to which EBITDA and Net Revenue Metrics are achieved. 

		
	•
	The EBITDA Metric will fund on the following schedule, subject to the Company’s discretion, as described below:

	
		
	% of EBITDA Achieved
	% Funded

	Below 93%
	0%

	93%
	40%

	94%
	50%

	95%
	60%

	96%
	65%

	97%
	75%

	98%
	85%

	99%
	95%

	100%
	100%

	—
	—

	105%
	150%

	—
	—

	110%
	200%

Plan will fund incrementally at the rate 10% for every 1% of EBITDA achieved over 100%, up to a total payout of 200% performance against Plan. 

		
	•
	Notwithstanding any term or condition contained in this Plan to the contrary, 

		
	◦
	In the event that the Company does not achieve at least 93% of the EBITDA Metric, thereby disallowing funding under the Plan, the Chief Executive Officer (“CEO”) may recommend to the Committee, for its approval, that a pool equal to up to 10% of target Incentive Comp, be distributed to deserving employees, at the discretion of the CEO or, in the case of executive officers, the Committee, at the time Incentive Comp payments would otherwise be paid pursuant to this Plan.  In no event shall this provision result in the payment of more than 100% of the target Incentive Comp to any single eligible employee.

		
	◦
	The Committee may adjust the performance results for any Metric on account of extraordinary items or other events, as the Committee deems appropriate.  

		
	◦
	Working with the funds available under the Plan and within the established guidelines, Managers will be able to differentiate final award payouts by performance as to Strategic Goals Metrics.

		
	◦
	Any and all Incentive Comp payouts under this Plan remain subject to Company discretion.  The Company may reduce or eliminate any eligible employee’s Incentive Comp payment on account of overall individual or functional team performance, regardless of the extent to which any Metric has been achieved. Company achievement of the EBITDA or Net Revenue Metrics does not guarantee payment hereunder to any eligible employee.

Eligibility 
For purposes of the Plan, “eligible” employees are designated as full time (30 hours or more), exempt (salaried), are in a position that has been designated as eligible for Incentive Comp under this Plan and do not participate in any other annual incentive compensation plan.  

Designated employees are eligible to participate in the Plan if they meet the following criteria:

		
	•
	Employees who commence employment or are promoted to an eligible position after January 1st and prior to October 1st of a Plan year will receive a pro-rated Incentive Comp based upon their service date. 

		
	•
	Employees who remain employed by the Company but are transferred out of an eligible position on or before June 30th are not eligible to receive an Incentive Comp payment under the Plan for the year of transfer.  Employees who are transferred out of an eligible position after June 30th will continue to be eligible to receive an Incentive Comp 

payment for the year of transfer, based on the portion of the Plan year the employee was employed in an eligible position.  

		
	•
	Employees hired or promoted to an eligible position on or after October 1 of a Plan year will not be eligible for an Incentive Comp for that year.

		
	•
	An Employee must be an active employee of the Company and on the payroll as of the date on which the applicable Incentive Comp is paid.  

		
	•
	As consideration for being eligible for receipt of Incentive Comp in any Plan year, an employee must have executed and delivered to the Company a mutually agreed form of Confidentiality Agreement and any other agreement requested by the Company in connection with such employee’s employment.

Eligible Income
		
	•
	Any sums paid to an eligible employee that are other than base salary payments will not be included in an Incentive Comp payment calculation.

		
	•
	The Incentive Comp payment will be pro-rated for any approved unpaid leave of absence lasting 4 consecutive weeks or more, to the extent permitted by law.

		
	•
	If during a Plan year, an employee becomes Incentive Comp eligible after January 1st and prior to October 1st, or changes from Incentive Comp eligible to non-Incentive Comp eligible after June 30th, actual salary for the period of employment, while in an Incentive Comp eligible position, paid during the Plan year will be the salary used for Incentive Comp calculation purposes. Thus, a person who has been hired at a base salary of $100,000 on September 30 and was paid $25,000 in salary (1/4 of base salary for working 1/4 of the year) during the Plan year and had a 20% Incentive Comp level, assuming 100% of each Metric is achieved, would be eligible for an Incentive Comp payment of $25,000 x 20% or $5,000 for the short year.

Payment of Incentive Comp under the Plan
Incentive Comp will be paid, if at all, after completion of the audit by the Company’s independent auditor of the annual financial statements for the applicable Plan year, which the Company anticipates, but cannot ensure, will be around the middle of March of the successive year.

Amendment and Termination of the Plan
The Company reserves the right to amend, modify, suspend or terminate this Plan in whole or in part at any time without advance notice to or prior approval of the Plan participants.  Eligibility for participation in the Plan in one year does not confer upon any participant eligibility to participate in any subsequent year.

Additional Information
		
	•
	Incentive Comp payments will not be treated as compensation for purposes of any of the Company’s employee benefit plans or programs, unless otherwise provided in such employee benefit plan or program.

		
	•
	Participation in the Plan is not a guarantee of any particular level of compensation or of continued employment for any period.  Nothing in the Plan interferes with the Company’s right to terminate an employee’s employment for any reason or no reason at any time.

		
	•
	The Company will withhold from any payments under the Plan an amount to satisfy applicable federal, state and local tax withholding requirements.  Payments under the Plan are intended to be exempt from or comply with Section 409A of the Internal Revenue Code.  However, the Company shall not be liable for any taxes, penalties, interest or other expenses that may be incurred by a participant on account of non-compliance with Section 409A of the Code.

		
	•
	The Plan will be construed, administered and governed in all respect in accordance with the laws of the State of Delaware, without reference to principles of conflicts of laws.

Exhibit A

Incentive Comp Calculation
Below is an example of how a potential Incentive Comp payment would be calculated:

Eligible employee $100,000 annual salary with a 20% Incentive Comp level. The Company attains 100% of EBITDA Metric, 98% of Net Revenue Metric and achievement of 2/3 of Strategic Goals.

	
						
	Element
	Weighting
	Performance % of Metric
	Funding % of Metric
	Amount
	Description

	EBITDA
	40%
	100%
	100%
	$8,000
	$20,000 Incentive Comp potential x 40% EBITDA weighting x 100% EBITDA performance

	Net Revenue
	40%
	98%
	85%
	$6,800
	$20,000 Incentive Comp potential x 40% Net Rev weighting x 85% Net Rev performance

	Strategic Goals 
Case Volume - Met (1/3)
Trade Spend +/- 2% - Met (1/3)
Snack Cake AOP - Not Met (0/3)

	20%
	66.6%
(33.3% for each met metric)
	66.6%
	$2,664
	$20,000 Incentive Comp potential x 20% Strategic Goals weighting x 66.6% Strategic Goals performance

	Total Incentive Comp Achieved 
	 
	 
	 
	$17,464Exhibit

CONSULTING AGREEMENT
THIS CONSULTING AGREEMENT (this “Agreement”) is made and shall be effective as of the 15th day of November, 2018, by and between Axalta Coating Systems Ltd. (“Axalta”) and Michael F. Finn (“Consultant”).

WHEREAS, Consultant has provided his resignation as Axalta’s Senior Vice President, General Counsel and Corporate/Government Affairs and Corporate Secretary, effective as of December 2, 2018 (the “Resignation Date”); and

WHEREAS, Axalta desires that following his resignation Consultant furnish his professional experience and talents to Axalta as an independent contractor, and Consultant is willing to enter into this Agreement, on the terms and conditions set forth below. In consideration of the foregoing, and the mutual promises, covenants and agreements set forth herein, Axalta and Consultant, intending to be legally bound, hereby agree as follows:
    
		
	1.
	Consultant.  Axalta agrees to retain Consultant as an independent contractor in connection with the conduct of its business, and Consultant accepts such position, on the terms and conditions provided herein. 

		
	2.
	Term.  The term of this Agreement (the “Term”) begins on the Resignation Date and, unless earlier terminated, ends on May 31, 2019 (the “Expiration Date”).      

		
	1.
	Performance.  Consultant covenants and agrees to provide professional consulting services to Axalta at such times and places as the parties, acting reasonably, mutually agree to, such services to include all of the services, and limitations thereon, described on Exhibit A hereto (“Services”).  In connection with providing the Services, Consultant shall be allowed to retain his Axalta-provided computer and telecommunications equipment, access to Axalta’s corporate headquarters, access to Axalta e-mail and data, and access to Axalta professional administrative services, each as reasonably necessary for him to effectively fulfill his obligations under this Agreement.

		
	2.
	Fees.  

(a)    As consideration of the Services to be provided by Consultant hereunder, and for assigning the rights described in Section 9 below to Axalta, so long as Consultant is providing the Services, Axalta shall pay Consultant the fees set forth on Exhibit A, the payment of which (in addition to any reimbursable expenses and additional benefits, each as provided below) shall constitute the full and complete compensation for Consultant’s performance of the Services, including compensation for all services, fees, labor, fringe benefits, insurance, profit, overhead and taxes (except sales and use taxes, if any).  

(b)    Provided that Consultant has complied with Axalta’s expense reimbursement guidelines (as communicated by Axalta to Consultant from time to time), Axalta will reimburse Consultant at cost for reasonable expenses, including travel expenses, Consultant incurs in connection with the Services.  Any reimbursements that constitute deferred compensation for purposes of Section 409A of the Internal Revenue Code shall be provided in a manner that complies with Treasury Regulation Section 1.409A-3(i)(1)(iv).  Accordingly, (i) such reimbursements will be made not later than the last day of the calendar year after the calendar year in which the expenses were incurred, (ii) any right to such reimbursements will not be subject to liquidation or exchange for another benefit, and (iii) the amount of the expenses eligible for reimbursement during any taxable year will not affect the amount of expenses eligible for reimbursement, or the in-kind benefits provided, in any other taxable year. 

		
	3.
	Equity Awards.  As additional consideration of the Services to be provided by Consultant hereunder:

  (a)    Consultant’s Axalta stock options, restricted stock, restricted stock units and/or performance share awards that are scheduled to vest during the Term shall vest in accordance with the terms of the applicable award agreements and equity plan so long as Consultant continues to provide services to Axalta during the Term.  Consultant agrees that, notwithstanding anything set forth in any equity award agreements, all of Consultant’s Axalta stock options, restricted stock, restricted stock units and/or performance share awards that are scheduled to vest after the Expiration Date shall be forfeited immediately upon the Resignation Date.

Sensitivity: Business Internal

(b)    All of Consultant’s Axalta stock options that are vested and unexercised as of the Expiration Date shall remain exercisable until the earlier of (1) the eighteen-month anniversary of the Expiration Date, and (2) the date the stock option would have expired had Consultant’s employment not terminated.

		
	4.
	Annual Bonus.  Axalta shall pay to Consultant a pro-rated annual bonus equal to 337/365 (92.33%) of the 2018 annual bonus that Consultant would have earned had Consultant’s employment not terminated, based on Axalta’s actual performance for the full year and Consultant’s individual performance through the Resignation Date which individual performance shall be determined by Axalta’s Chief Executive Officer, and paid at the same time the 2018 annual bonuses are paid to Axalta’s executives.

		
	5.
	Duties.  Consultant hereby covenants and agrees that his duties and responsibilities will include (i) the Services set forth on Exhibit A, (ii) at all times representing Axalta in a professional manner and in accordance with the terms of this Agreement, and (iii) at all times complying with any and all applicable laws and regulations, as well as any local Axalta facility security, access and other policies and procedures.

		
	6.
	Confidentiality. Each party shall maintain in confidence any confidential information disclosed by the other party, including any trade secrets, proprietary information, and the terms and conditions of this Agreement (collectively, “Confidential Information”), and each party shall treat the other’s Confidential Information as if it were its own confidential information.  In addition, neither party shall provide the Confidential Information disclosed hereunder to any third party nor use such Confidential Information for any purpose other than to conduct business as contemplated hereunder.  This Section 8 shall survive any expiration or termination of this Agreement.

		
	7.
	Proprietary Rights.  In addition, all work, work in progress, finished or unfinished work, data, property, inventions, improvements, designs, trade secrets or any other tangible or intangible results prepared, produced, arising from, relating to, or developed in connection with the Services rendered by Consultant to Axalta, or involving the use of Axalta’s time, materials or facilities (collectively, “Works”) shall be deemed to be “works made for hire” within the meaning of U.S. Copyright Act of 1976, as amended, and shall be the sole and exclusive property of Axalta and shall be Axalta’s Confidential Information.  Consultant agrees to execute any documents as may be requested by Axalta, in a form satisfactory to Axalta, evidencing, vesting and protecting Axalta’s sole title and right of ownership in the Works.  The covenants contained in this Section 9 shall run in favor of Axalta, its successors, assigns, subsidiaries and affiliates, and shall survive the expiration or earlier termination of this Agreement.

		
	8.
	Notices.  The parties agree that all notices under this Agreement will be in writing and will be either delivered personally to a party, transmitted by facsimile transmission or sent by registered mail or reputable courier to, with respect to Consultant, the address set forth below the signature lines below, and with respect to Axalta, to the its principal place of business, or such other addresses as may be furnished by either party to the other from time to time.

		
	9.
	Termination.  This Agreement may be terminated by Axalta immediately for cause in the event of (i) any material breach of this Agreement by Consultant, which is not cured, if curable, by Consultant within thirty (30) days of written notice of such breach, or (ii) the gross negligence or willful misconduct by Consultant which causes material injury to the reputation of Axalta or material financial harm to Axalta or its affiliates.  This Agreement may be terminated by Consultant at any time upon reasonable written notice to Axalta.  In the event Axalta terminates this Agreement for cause or Consultant terminates this Agreement, Consultant shall only be entitled to receive any fees earned hereunder as of the effective date of such termination.    

		
	10.
	Indemnification.  Axalta shall indemnify, defend and hold harmless Consultant, from and against all claims and losses, to the extent such claims arise out of or relate to Consultant’s performing his obligations under this Agreement.  Axalta’s obligations under this Section 12 shall not apply to the extent such loss is the direct or indirect result of (x) the gross negligence or willful misconduct of Consultant, (y) the failure of Consultant to perform under, or his breach of, this Agreement or other written instructions from Axalta, or (z) the failure of Consultant to comply with any applicable governmental requirement.  Consultant will provide Axalta with all reasonable information and assistance to settle or defend the claim, and Axalta shall not, without the approval of Consultant, consent to the entry of any judgment or effect any settlement of any pending or threatened proceeding without the 

Sensitivity: Business Internal

consent of Consultant.  This Section 12 shall survive any termination or expiration of this Agreement for any reason.

		
	11.
	Limitation of Liability. EXCEPT FOR CLAIMS ARISING OUT OF (i) INDEMNIFICATION OBLIGATIONS HEREUNDER, (ii) VIOLATION OF CONFIDENTIALITY OBLIGATIONS UNDER THIS AGREEMENT, OR (iii) THE GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR FRAUD OF A PARTY, UNDER NO CIRCUMSTANCES SHALL A PARTY BE LIABLE TO THE OTHER PARTY (y) FOR ANY PUNITIVE, EXEMPLARY OR OTHER SPECIAL DAMAGES ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR (z) FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF USE, INCOME, PROFITS OR ANTICIPATED PROFITS, BUSINESS OR BUSINESS OPPORTUNITY, SAVINGS, DATA, OR BUSINESS REPUTATION) ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, REGARDLESS OF WHETHER SUCH DAMAGES ARE BASED IN CONTRACT, TORT, NEGLIGENCE OR ANY OTHER THEORY, AND REGARDLESS OF WHETHER SUCH PARTY HAS BEEN ADVISED OF, KNEW OF, OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.  THIS SECTION 13 SHALL SURVIVE ANY TERMINATION OR EXPIRATION OF THIS AGREEMENT FOR ANY REASON.

		
	12.
	Independent Contractor.  Consultant is retained only for the purposes and to the extent set forth in this Agreement, and his relationship to Axalta shall be that of an independent contractor.  As such, Consultant shall be solely responsible for all necessary withholding of appropriate federal income tax, state income tax, and social security taxes.  Consultant will not be eligible for any employee benefits from Axalta and is not an agent or authorized representative of Axalta.

		
	13.
	Entire Agreement / Amendments.  This Agreement contains all of the terms and conditions agreed upon by the parties hereto with reference to the subject matter hereof; provided that for the avoidance of doubt (i) the provisions of that certain Second Amended and Restated Executive Restrictive Covenant and Severance Agreement, dated as of February 20, 2018, by and between Axalta, Axalta Coating Systems, LLC and Consultant (the “Restrictive Covenant Agreement”) applicable to the period following termination of employment shall remain in full force and effect, (ii) that certain Indemnification and Advancement Agreement, dated as of May 2, 2018, by and between Axalta and Consultant shall remain in full force and effect, and (iii) all of Consultant’s Axalta equity award agreements, except as specifically set forth in Section 5 hereof, shall each remain in full force and effect.  This Agreement may not be modified or amended except by a written instrument executed by both parties.

		
	14.
	Successor and Assigns.  The rights of Axalta under this Agreement may, without the consent of Consultant, be assigned by Axalta, in its sole and unfettered discretion, to any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of the assets or business of Axalta. Axalta will require any successor (whether direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business or assets of Axalta expressly to assume and to agree to perform this Agreement in the same manner and to the same extent that Axalta would be required to perform it if no such succession had taken place. The failure of any such successor to so assume this Agreement shall constitute a material breach of this Agreement by Axalta. As used in this Agreement, Axalta shall mean Axalta as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law or otherwise. Consultant shall not be entitled to assign any of his rights or obligations under this Agreement. This Agreement shall inure to the benefit of and be enforceable by Consultant’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

		
	15.
	Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument. 

		
	16.
	Waiver / Severability.  No waiver of any breach or default hereunder shall be deemed a waiver of subsequent breach or default of the same, similar or related nature.  No waiver shall be binding unless in writing and signed by the person making the waiver.  In the event any clause or portion of this Agreement shall be held invalid by any court, it is understood and agreed that such invalid clause or portion thereof shall have no effect upon the validity of other portions of this Agreement.

Sensitivity: Business Internal

		
	17.
	Governing Law.   This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania (without regard to its conflicts of law principles).

		
	18.
	Agreement to Arbitrate.  The parties acknowledge and agree that Paragraph 9 of the Restrictive Covenant Agreement governing settlement of controversies, claims or disputes by binding arbitration shall remain in full force and effect and shall apply with respect to any controversies, claims or disputes arising under or with respect to this Agreement.

[signature page follows]

Sensitivity: Business Internal

IN WITNESS WHEREOF, the parties hereby have executed this Agreement as of the day and year first above written.

MICHAEL F. FINN                    AXALTA COATING SYSTEMS LTD.

____________________________                By:________________________________
Name:  Robert W. Bryant
Title:  Interim Chief Executive Officer

Address:                            

Sensitivity: Business Internal

EXHIBIT A
TO CONSULTING AGREEMENT
DESCRIPTION OF SERVICES / FEES

Description of Services:  Consulting services related to supporting the legal and compliance functions of Axalta and the transition of Consultant’s responsibilities as an Axalta employee. 

Fees: $120,000 total fees for 200 aggregate hours of Services during the Term. Following each month of the Term, Consultant shall provide Axalta with a description of the hours of Services during the preceding month.  If Consultant’s aggregate hours of Services during the Term exceed 200 hours, within 30 days following the Expiration Date, Consultant shall invoice Axalta for such additional hours at a rate of $1,000 per hour, which invoice shall be payable within 45 days of receipt.

    

THIS CONSULTING AGREEMENT (this “Agreement”) is made and shall be effective as of the 15th day of November, 2018, by and between Axalta Coating Systems Ltd. (“Axalta”) and Michael F. Finn (“Consultant”).

WHEREAS, Consultant has provided his resignation as Axalta’s Senior Vice President, General Counsel and Corporate/Government Affairs and Corporate Secretary, effective as of December 2, 2018 (the “Resignation Date”); and

WHEREAS, Axalta desires that following his resignation Consultant furnish his professional experience and talents to Axalta as an independent contractor, and Consultant is willing to enter into this Agreement, on the terms and conditions set forth below. In consideration of the foregoing, and the mutual promises, covenants and agreements set forth herein, Axalta and Consultant, intending to be legally bound, hereby agree as follows:
    
		
	1.
	Consultant.  Axalta agrees to retain Consultant as an independent contractor in connection with the conduct of its business, and Consultant accepts such position, on the terms and conditions provided herein. 

		
	2.
	Term.  The term of this Agreement (the “Term”) begins on the Resignation Date and, unless earlier terminated, ends on May 31, 2019 (the “Expiration Date”).      

		
	3.
	Performance.  Consultant covenants and agrees to provide professional consulting services to Axalta at such times and places as the parties, acting reasonably, mutually agree to, such services to include all of the services, and limitations thereon, described on Exhibit A hereto (“Services”).  In connection with providing the Services, Consultant shall be allowed to retain his Axalta-provided computer and telecommunications equipment, access to Axalta’s corporate headquarters, access to Axalta e-mail and data, and access to Axalta professional administrative services, each as reasonably necessary for him to effectively fulfill his obligations under this Agreement.

		
	4.
	Fees.  

(a)    As consideration of the Services to be provided by Consultant hereunder, and for assigning the rights described in Section 9 below to Axalta, so long as Consultant is providing the Services, Axalta shall pay Consultant the fees set forth on Exhibit A, the payment of which (in addition to any reimbursable expenses and additional benefits, each as provided below) shall constitute the full and complete compensation for Consultant’s performance of the Services, including compensation for all services, fees, labor, fringe benefits, insurance, profit, overhead and taxes (except sales and use taxes, if any).  

(b)    Provided that Consultant has complied with Axalta’s expense reimbursement guidelines (as communicated by Axalta to Consultant from time to time), Axalta will reimburse Consultant at cost for reasonable expenses, including travel expenses, Consultant incurs in connection with the Services.  Any reimbursements that constitute deferred compensation for purposes of Section 409A of the Internal Revenue Code shall be provided in a manner that complies with Treasury Regulation Section 1.409A-3(i)(1)(iv).  Accordingly, (i) such reimbursements will be made not later than the last day of the calendar year after the calendar year in which the expenses were incurred, (ii) any right to such reimbursements will not be subject to liquidation or exchange for another benefit, and (iii) the amount of the expenses eligible for reimbursement during any taxable year will not affect the amount of expenses eligible for reimbursement, or the in-kind benefits provided, in any other taxable year. 

		
	5.
	Equity Awards.  As additional consideration of the Services to be provided by Consultant hereunder:

  (a)    Consultant’s Axalta stock options, restricted stock, restricted stock units and/or performance share awards that are scheduled to vest during the Term shall vest in accordance with the terms of the applicable award agreements and equity plan so long as Consultant continues to provide services to Axalta during the Term.  Consultant agrees that, notwithstanding anything set forth in any equity award agreements, all of Consultant’s Axalta stock options, restricted stock, restricted stock units and/or performance share awards that are scheduled to vest after the Expiration Date shall be forfeited immediately upon the Resignation Date.

(b)    All of Consultant’s Axalta stock options that are vested and unexercised as of the Expiration Date shall remain exercisable until the earlier of (1) the eighteen-month anniversary of the Expiration Date, and (2) the date the stock option would have expired had Consultant’s employment not terminated.

		
	6.
	Annual Bonus.  Axalta shall pay to Consultant a pro-rated annual bonus equal to 337/365 (92.33%) of the 2018 annual bonus that Consultant would have earned had Consultant’s employment not terminated, based on Axalta’s actual performance for the full year and Consultant’s individual performance through the Resignation Date which individual performance shall be determined by Axalta’s Chief Executive Officer, and paid at the same time the 2018 annual bonuses are paid to Axalta’s executives.

		
	7.
	Duties.  Consultant hereby covenants and agrees that his duties and responsibilities will include (i) the Services set forth on Exhibit A, (ii) at all times representing Axalta in a professional manner and in accordance with the terms of this Agreement, and (iii) at all times complying with any and all applicable laws and regulations, as well as any local Axalta facility security, access and other policies and procedures.

		
	8.
	Confidentiality. Each party shall maintain in confidence any confidential information disclosed by the other party, including any trade secrets, proprietary information, and the terms and conditions of this Agreement (collectively, “Confidential Information”), and each party shall treat the other’s Confidential Information as if it were its own confidential information.  In addition, neither party shall provide the Confidential Information disclosed hereunder to any third party nor use such Confidential Information for any purpose other than to conduct business as contemplated hereunder.  This Section 8 shall survive any expiration or termination of this Agreement.

		
	9.
	Proprietary Rights.  In addition, all work, work in progress, finished or unfinished work, data, property, inventions, improvements, designs, trade secrets or any other tangible or intangible results prepared, produced, arising from, relating to, or developed in connection with the Services rendered by Consultant to Axalta, or involving the use of Axalta’s time, materials or facilities (collectively, “Works”) shall be deemed to be “works made for hire” within the meaning of U.S. Copyright Act of 1976, as amended, and shall be the sole and exclusive property of Axalta and shall be Axalta’s Confidential Information.  Consultant agrees to execute any documents as may be requested by Axalta, in a form satisfactory to Axalta, evidencing, vesting and protecting Axalta’s sole title and right of ownership in the Works.  The covenants contained in this Section 9 shall run in favor of Axalta, its successors, assigns, subsidiaries and affiliates, and shall survive the expiration or earlier termination of this Agreement.

		
	10.
	Notices.  The parties agree that all notices under this Agreement will be in writing and will be either delivered personally to a party, transmitted by facsimile transmission or sent by registered mail or reputable courier to, with respect to Consultant, the address set forth below the signature lines below, and with respect to Axalta, to the its principal place of business, or such other addresses as may be furnished by either party to the other from time to time.

		
	11.
	Termination.  This Agreement may be terminated by Axalta immediately for cause in the event of (i) any material breach of this Agreement by Consultant, which is not cured, if curable, by Consultant within thirty (30) days of written notice of such breach, or (ii) the gross negligence or willful misconduct by Consultant which causes material injury to the reputation of Axalta or material financial harm to Axalta or its affiliates.  This Agreement may be terminated by Consultant at any time upon reasonable written notice to Axalta.  In the event Axalta terminates this Agreement for cause or Consultant terminates this Agreement, Consultant shall only be entitled to receive any fees earned hereunder as of the effective date of such termination.    

		
	12.
	Indemnification.  Axalta shall indemnify, defend and hold harmless Consultant, from and against all claims and losses, to the extent such claims arise out of or relate to Consultant’s performing his obligations under this Agreement.  Axalta’s obligations under this Section 12 shall not apply to the extent such loss is the direct or indirect result of (x) the gross negligence or willful misconduct of Consultant, (y) the failure of Consultant to perform under, or his breach of, this Agreement or other written instructions from Axalta, or (z) the failure of Consultant to comply with any applicable governmental requirement.  Consultant will provide Axalta with all reasonable information and assistance to settle or defend the claim, and Axalta shall not, without the approval of Consultant, consent to the entry of any judgment or effect any settlement of any pending or threatened proceeding without the consent of Consultant.  This Section 12 shall survive any termination or expiration of this Agreement for any reason.

		
	13.
	Limitation of Liability. EXCEPT FOR CLAIMS ARISING OUT OF (i) INDEMNIFICATION OBLIGATIONS HEREUNDER, (ii) VIOLATION OF CONFIDENTIALITY OBLIGATIONS UNDER THIS AGREEMENT, OR (iii) THE GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR FRAUD OF A PARTY, UNDER NO CIRCUMSTANCES SHALL A PARTY BE LIABLE TO THE OTHER PARTY (y) FOR ANY PUNITIVE, EXEMPLARY OR OTHER SPECIAL DAMAGES ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR (z) FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF USE, INCOME, PROFITS OR ANTICIPATED PROFITS, BUSINESS OR BUSINESS OPPORTUNITY, SAVINGS, DATA, OR BUSINESS REPUTATION) ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, REGARDLESS OF WHETHER SUCH DAMAGES ARE BASED IN CONTRACT, TORT, NEGLIGENCE OR ANY OTHER THEORY, AND REGARDLESS OF WHETHER SUCH PARTY HAS BEEN ADVISED OF, KNEW OF, OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.  THIS SECTION 13 SHALL SURVIVE ANY TERMINATION OR EXPIRATION OF THIS AGREEMENT FOR ANY REASON.

		
	14.
	Independent Contractor.  Consultant is retained only for the purposes and to the extent set forth in this Agreement, and his relationship to Axalta shall be that of an independent contractor.  As such, Consultant shall be solely responsible for all necessary withholding of appropriate federal income tax, state income tax, and social security taxes.  Consultant will not be eligible for any employee benefits from Axalta and is not an agent or authorized representative of Axalta.

		
	15.
	Entire Agreement / Amendments.  This Agreement contains all of the terms and conditions agreed upon by the parties hereto with reference to the subject matter hereof; provided that for the avoidance of doubt (i) the provisions of that certain Second Amended and Restated Executive Restrictive Covenant and Severance Agreement, dated as of February 20, 2018, by and between Axalta, Axalta Coating Systems, LLC and Consultant (the “Restrictive Covenant Agreement”) applicable to the period following termination of employment shall remain in full force and effect, (ii) that certain Indemnification and Advancement Agreement, dated as of May 2, 2018, by and between Axalta and Consultant shall remain in full force and effect, and (iii) all of Consultant’s Axalta equity award agreements, except as specifically set forth in Section 5 hereof, shall each remain in full force and effect.  This Agreement may not be modified or amended except by a written instrument executed by both parties.

		
	16.
	Successor and Assigns.  The rights of Axalta under this Agreement may, without the consent of Consultant, be assigned by Axalta, in its sole and unfettered discretion, to any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of the assets or business of Axalta. Axalta will require any successor (whether direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business or assets of Axalta expressly to assume and to agree to perform this Agreement in the same manner and to the same extent that Axalta would be required to perform it if no such succession had taken place. The failure of any such successor to so assume this Agreement shall constitute a material breach of this Agreement by Axalta. As used in this Agreement, Axalta shall mean Axalta as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law or otherwise. Consultant shall not be entitled to assign any of his rights or obligations under this Agreement. This Agreement shall inure to the benefit of and be enforceable by Consultant’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

		
	17.
	Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument. 

		
	18.
	Waiver / Severability.  No waiver of any breach or default hereunder shall be deemed a waiver of subsequent breach or default of the same, similar or related nature.  No waiver shall be binding unless in writing and signed by the person making the waiver.  In the event any clause or portion of this Agreement shall be held invalid by any court, it is understood and agreed that such invalid clause or portion thereof shall have no effect upon the validity of other portions of this Agreement.

		
	19.
	Governing Law.   This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania (without regard to its conflicts of law principles).

		
	20.
	Agreement to Arbitrate.  The parties acknowledge and agree that Paragraph 9 of the Restrictive Covenant Agreement governing settlement of controversies, claims or disputes by binding arbitration shall remain in full force and effect and shall apply with respect to any controversies, claims or disputes arising under or with respect to this Agreement.

[signature page follows]

IN WITNESS WHEREOF, the parties hereby have executed this Agreement as of the day and year first above written.

MICHAEL F. FINN                    AXALTA COATING SYSTEMS LTD.

____________________________                By:________________________________
Name:  Robert W. Bryant
Title:  Interim Chief Executive Officer

Address:                            
EXHIBIT A
TO CONSULTING AGREEMENT

DESCRIPTION OF SERVICES / FEES

Description of Services:  Consulting services related to supporting the legal and compliance functions of Axalta and the transition of Consultant’s responsibilities as an Axalta employee. 

Fees: $120,000 total fees for 200 aggregate hours of Services during the Term. Following each month of the Term, Consultant shall provide Axalta with a description of the hours of Services during the preceding month.  If Consultant’s aggregate hours of Services during the Term exceed 200 hours, within 30 days following the Expiration Date, Consultant shall invoice Axalta for such additional hours at a rate of $1,000 per hour, which invoice shall be payable within 45 days of receipt.

    

Sensitivity: Business Internal

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