Consulting Services Agreement
(b) In consideration of the performance of the Consulting Services contemplated bySection 2(b) hereof, the Company shall (or the Company shall procure that a member of Atotech Group shall) pay to the Consultant or its designee anon-refundable and irrevocable annual fee of USD 1,800,000.00 cash (theAnnual Consulting Fee and, together with any fees payable pursuant toSection 3(c) hereof, theConsulting Fees) during the term hereof. The Annual Consulting Fee shall be payable quarterly in advance and shall be paid in quarterly installments or paid on such time and to such entities as may be determined in writing between the Consultant and the Company. The first quarterly installment (theInitial Consulting Fee Amount) of the Annual Consulting Fee (in relation to the period of January 31, 2017 to March 31, 2017) shall be payable on the date hereof as provided in 3(a)(ii) above.
(c) In consideration of any services, other than the Consulting Services, that may be provided by the Consultant to the Atotech Group from time to time during the term of this Agreement, the Consultant shall be entitled to receive such additional compensation as agreed upon by the Company and the Consultant.
(d) Any and all payments required to be made to the Consultant or its designee hereunder shall be made free and clear of, and without deduction for, any federal, state, local, foreign or other taxes, duties, and assessments in the nature of a tax imposed by a governmental authority (Taxes), other than any Taxes imposed on the Consultant’s net income or branch profits by any jurisdiction in which the Consultant is organized or in which its principal office is located, or as a result of any other present or former connection between the Consultant and the jurisdiction imposing such Taxes;provided,however, that, if any member of the Atotech Group as payor of the payment, as applicable, shall be required by applicable law to deduct any such Taxes from any payment hereunder, (i) such payment shall be increased as necessary so that, after making all required deductions (including deductions applicable to additional amounts payable under thisSection 3(e)), the Consultant receives payments equal to the amount it would have received had no such deductions been made, (ii) the relevant member of the Atotech Group as payor, as applicable, shall make such deductions and (iii) the relevant member of the Atotech Group as payor, as applicable, shall pay the full amount deducted to the relevant governmental authority in accordance with applicable law. Prior to or simultaneous with the execution of this Agreement, the Consultant shall deliver to each of US BidCo and the Company, a properly completed and duly executed Internal Revenue Service FormW-9 establishing that the Consultant is not subject to U.S. backup withholding tax with respect to payments made to the Consultant under this Agreement.
Section 4. Out-of-Pocket Expenses.
In addition to the compensation payable to the Consultant pursuant toSection 3 hereof, the Company or a member of the Atotech Group, as applicable, shall, promptly at the request of the Consultant, reimburse Consultant for, or at the Consultant’s request, pay directly on the Consultant’s behalf, theOut-of-Pocket Expenses. For the purposes of this Agreement, the termOut-of-Pocket Expenses means all reasonableout-of-pocket expenses incurred or accrued by or on behalf of the Consultant or its Affiliates in connection with the performance of (a) the Initial Advisory Services and (b) the Consulting Services, in each case, including, without limitation, (i) fees, expenses and disbursements of any counsel, consultants, investment bankers, accountants, financial advisors and other independent professionals and organizations, (ii) costs of any outside services or independent contractors such as financial printers, couriers, business publications, regulatory filings or similar services and (iii) any travel, entertainment and other third-party expenses not associated with the Consultant’s ordinary operations. For the avoidance of doubt,Out-of-Pocket Expenses shall not include any fees or expenses incurred in connection with any other transaction or services involving any portfolio company of the Consultant other than the entities within Atotech Group. All reimbursements forOut-of-Pocket Expenses shall be made promptly upon presentation by the Consultant to the Company or the relevant member of the Atotech Group, as applicable, of the invoices in connection therewith. The Consultant shall pay the relevant portions of suchOut-of-Pocket Expenses to various external service providers on behalf of the Consultant and its Affiliates.
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