Document:

exv4w13

Exhibit 4.13

NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS LIMITED

Units 5811-5812, 58/F, The Center, 99 Queen’s Road Central, Central, Hong Kong

Tel: (852) 2341-0273 Fax: (852) 2263-1223

November 25, 2010

PRIVATE & CONFIDENTIAL

Mr. M.K. Koo

Flat A, 6th Floor, House 1

No. 1 Plantation Road

The Peak, Hong Kong

Dear Mr. Koo,

Re : Employment Contract

We are writing to confirm the terms and conditions regarding your employment as President of Nam
Tai Electronic & Electrical Products Limited (the “Company”), a company incorporated in the Cayman
Islands, in this Employment Contract.

	 	 	 	 	 

	Title

	 	:
	 	President
	 
	 	 	 	 
	 

	 	 	 	By entering into this Employment Contract, you
hereby agree to perform diligently and faithfully
all the job duties assigned to you from time to
time by the board of directors of the Company and
to be ultimately responsible to the Company.
	 
	 	 	 	 
	Job Description

	 	:
	 	You shall carry out your duties as President of
the Company and are responsible for minor job
duties such as time deposits, insurance, health
care program and golf club membership arrangement
for the whole Group. Your jobs should be carried
out mainly in the People’s Republic of China
(“PRC”) on site, to be in charge of all internal
control, direct management of all Financial
Controllers, handling all finance and
administration matters, including in Wuxi and
Shenzhen. Due to your age and health, so the
Company will also maintain an office in Hong Kong
for you. You shall only make commitments or
incur liabilities on behalf of the Company as
duly authorized.
	 
	 	 	 	 
	 

	 	 	 	In consideration of your service to the Company, the Company shall
indemnify you against any costs, expenses and other liabilities to
which you may become subject by reason of your service to the
Company.
	 
	 	 	 	 
	Commencement Date

	 	:
	 	October 1, 2010 (i.e. commencement date of this Employment Contract).
	 
	 	 	 	 
	Basic Annual Salary

	 	:
	 	HK$6,600,000 (i.e. HK$550,000 x 12 months)

[Initialed:] KMK

[Initialed:] CY

1/6

 

	 	 	 	 	 

	Annual Bonus

	 	:
	 	You will be entitled to an annual bonus being 1.5 months of your monthly salary. This bonus
shall be paid only if you remain as an employee of the Company, normally in February of the
following financial year and is subject to the final decision of the Company. Furthermore, it
shall be paid only on a pro rata basis if you work less than a full year of service.
	 
	 	 	 	 
	Benefits

	 	:
	 	You shall be entitled to the same benefits as other members of the senior management enjoy
as provided in the Employment Handbook of the Company (the “Employment Handbook”) or in
accordance with the policies of the Company. The Company shall also reimburse you for any
reasonable miscellaneous expenses, i.e. entertainment expenses.
	 
	 	 	 	 
	Annual Leave

	 	:
	 	You will be entitled to 20 working days of annual leave or the number of days according to
the relevant provisions set out in the Employment Handbook of the Company. All annual leave
which has not been taken will be forfeited and no payment in lieu thereof will be made to you.
	 
	 	 	 	 
	Office/Secondment

	 	:
	 	Your office shall be in Hong Kong, PRC but actually you are required to work mainly in
Namtai Electronic (Shenzhen) Co., Ltd., a wholly owned subsidiary of the Company in Shenzhen,
PRC or maybe in different secondment companies situated in different cities as the Company may
direct from time to time and you shall not without reasonable excuse object to such directions
given by the Company or such secondment Companies.
	 
	 	 	 	 
	Confidentiality

	 	:
	 	You shall protect and keep confidential all the Company’s business information and
technical information and rights, whether written or non-written, and shall not (except as
authorized by the Company) during or after the termination of employment for whatever reason
disclose to any person, firm or company whatsoever or otherwise make use of any of the
confidential or secret information, trade secrets or operations, processes, dealings with
customers or suppliers, inventions, designs, copyrights, know-how or any other information
concerning the organization, business, finance, transactions, trade connections, suppliers,
agents, distributors or customers or affairs of the Company which may come to your knowledge
and shall use your best endeavours to prevent the unauthorized publication or disclosure of any
such confidential or secret information.

[Initialed:] KMK

[Initialed:] CY

2/6

 

	 	 	 	 	 

	 

	 	 	 	You shall keep in complete secrecy all confidential information entrusted to you in the
course of employment and shall not use or attempt to use any such information in any manner
whether for your own benefit or otherwise or which may or may likely injure or cause loss
either directly or indirectly to the Company or their customers and clients or their business.
	 
	 	 	 	 
	 

	 	 	 	You shall keep the Company fully indemnified of all the losses and damages of the Company
arising from your default of the confidentiality obligation.
	 
	 	 	 	 
	Personal Income Tax

	 	:
	 	You shall be wholly responsible for your own personal income tax in accordance with the
applicable tax laws in the country where you are assigned to work and in whatever
jurisdictions. Neither the Company shall be responsible for any of your personal income tax
matters. We hereby reserve the right to withhold any part or whole of your salary if the
relevant local tax authority imposes on the Company the liability to pay your income tax.
	 
	 	 	 	 
	Intellectual Property

	 	:
	 	In consideration of the Basic Annual Salary and any other benefits to which you are
entitled under this Employment Contract, you agree with the Company that :-

	 	 	 	 	 	 	 

	 

	 	 	 	(i)
	 	any design, trade name, trade mark, service mark, copyright,
invention or improvement that you may conceive, make, invent,
discover or suggest at any time during the period of your
employment under this Employment Contract, whether during or
outside business hours, whether alone or in conjunction with
any employees of the Company, which may be connected in any
way with your employment or with knowledge or information
acquired by you in your employment or with work or tests
carried out by the Company or with goods of a type made or
sold or with services provided by the Company, and whether
such design, trade name, trade mark, service mark, copyright,
invention or improvement are registrable, patentable or
afforded other similar protection or not, shall fully and
freely and immediately be communicated by you to the Company
and shall belong to and be the Company’s absolute property,
and, save as is necessary to comply with any of the Company’s
requirements under the following paragraph, you shall not at
any

[Initialed:] KMK

[Initialed:] CY

3/6

 

	 	 	 	 	 	 	 

	 

	 	 	 	 	 	time, whether during your employment hereunder or after
its cessation, apply for any letters patent,
registration, copyright or other form of protection
whatsoever in any jurisdiction for any such design, trade
name, trade mark, service mark, copyright, invention or
improvement;
	 
	 	 	 	 	 	 
	 

	 	 	 	(ii)
	 	you shall assign to the
Company any right you may have to a grant of letters patent,
registration, copyright or any other form of protection
whatsoever in any jurisdiction in respect of such design,
trade name, trade mark, service mark, copyright, invention or
improvement and you shall at any time, whether during your
employment or after its cessation, at the request of the
Company, execute all documents and do all acts and things at
the cost of the Company as the Company may request in
connection with the obtaining of letters patent,
registration, copyright or any other form of protection in
any jurisdiction for such design, trade name, trade mark,
service mark, copyright, invention or improvement as
aforesaid and the vesting of same in the Company or in such
other persons as the Company may specify for its exclusive
benefit, or in connection with any litigation or controversy
relating to the same.

	 	 	 	 	 

	Termination

	 	:
	 	Except for the situation that you have committed a criminal act, should the Company terminate your
employment or this Employment Contract under any circumstance, the Company shall compensate you
with an amount which is equal to 36 months of your basic monthly salary, all bonuses and
allowances and so on that you are entitled at the time of termination.
	 
	 	 	 	 
	 

	 	 	 	Should you personally wish to terminate your employment with the Company or this Employment
Contract, you may do so by giving the Company 1 year’s (i.e. 12 months’) prior notice in writing
of such termination. However, should you suffer from illness or other health conditions which
results in loss of working capacity, you may at any time terminate your employment with the
Company or this Employment Contract immediately.
	 
	 	 	 	 
	Agreement Voluntary 

Equitable

	 	:
	 	You and the Company acknowledge and declare that in
executing this Employment Contract both parties are relying wholly on
their own judgment and knowledge and have not been influenced to any extent whatsoever

[Initialed:] KMK

[Initialed:] CY

4/6

 

	 	 	 	 	 

	 

	 	 	 	by any representations or statements made by or on behalf of the
other party regarding any matters dealt with herein or incidental
thereto.
	 
	 	 	 	 
	 

	 	 	 	You and the Company further acknowledge and declare that both
parties have carefully considered and understand the terms of
employment contained in this Employment Contract including, but
without limiting the generality of the foregoing, your rights upon
termination and the restrictions after termination, and
acknowledge and agree that the said terms of employment and
restrictions upon termination are mutually fair and equitable, and
that both parties executed this Employment Contract voluntarily
and of own free will.
	 
	 	 	 	 
	Independent Advice

	 	:
	 	You are entitled to obtain independent legal
advice before signing this Employment Contract
and you represent, by signing this Employment
Contract, that you have either obtained such
advice or declined the opportunity to do so.
	 
	 	 	 	 
	Severability

	 	:
	 	If at any time any provision of this
Employment Contract is or becomes illegal,
invalid or unenforceable in any respect, the
legality, validity and enforceability of the
remaining provisions of this Employment
Contract shall not be affected or impaired
thereby and the remaining provisions shall
continue in full force and effect. This
Employment Contract should also supersede all
prior written and/or verbal agreements of the
parties with respect to the employment terms
and conditions set forth herein except as
otherwise expressly provided herein.
	 
	 	 	 	 
	Governing Law

	 	:
	 	The provision of this Employment Contract
shall be governed by and interpreted in
accordance with the laws of Hong Kong, PRC and
each of the parties hereto by the execution of
this Employment Contract irrevocably submits
to the exclusive jurisdiction of the courts of
Hong Kong, PRC.

Your employment hereunder shall also be governed by the Company’s policies applicable to the
Company, including the rules and regulations, presently in force or existing or laid down by the
Company for the time being or at any time during your employment. If there is any conflict between
the Company’s policies and the laws of Hong Kong, PRC, the laws of Hong Kong, PRC shall prevail.

You may be required to sign this Employment Contract together with a Master Employment
Contract with the parent company of the Company (the “Parent Company”) at the same time. If this
Employment Contract is required to be amended or supplemented by other provisions, the Master
Employment Contract shall

[Initialed:] KMK

[Initialed:] CY

5/6

 

also be amended or supplemented in writing in the same manners, if applicable. Alternatively, the
Company, the Parent Company and you may all sign a written document, signifying their agreements to
such amendments or supplements. If this Employment Contract is not amended or supplemented in the
manners as stipulated above, they shall not be effective.

Please signify your agreement and acceptance of the above terms and conditions by signing and
returning the duplicate copy of this letter to us.

	 	 	 
	Yours sincerely,
	 	 
	For and on behalf of
	 	 
	the board of directors of

	 	Agreed and accepted by:-
	Nam Tai Electronic &
	 	 
	Electrical Products Limited
	 	 

	 	 	 	 

	/s/ Colin Yeoh

	 	/s/ Koo Ming Kown	 
	 

	 	 	 
	Colin Yeoh

	 	Koo Ming Kown	 
	Director

	 	Canadian Passport No.: BA672809	 

6/6exv10w18

Exhibit 10.18

EXECUTION COPY

AMENDMENT NO. 2

Dated as of January 21, 2011

to

CREDIT AGREEMENT

Dated as of March 15, 2010

     THIS AMENDMENT NO. 2 (this “Amendment”) is made as of January 21, 2011 by and among
Kendle International Inc., an Ohio corporation (the “Borrower”), the financial institutions
listed on the signature pages hereof and JPMorgan Chase Bank, N.A., as Administrative Agent (the
“Administrative Agent’), under that certain Credit Agreement dated as of March 15, 2010 by
and among the Borrower, the Lenders and the Administrative Agent as amended by Amendment No. 1 to
Credit Agreement, dated as of April 27, 2010 (as further amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”). Capitalized terms used
herein and not otherwise defined herein shall have the respective meanings given to them in the
Credit Agreement.

     WHEREAS, the Borrower has requested that the requisite Lenders and the Administrative Agent
agree to certain amendments to the Credit Agreement;

     WHEREAS, the Borrower, the Lenders party hereto and the Administrative Agent have so agreed on
the terms and conditions set forth herein;

     NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Borrower, the Lenders party hereto and the Administrative Agent hereby
agree to enter into this Amendment.

Amendments to the Credit Agreement. Effective as of the date of satisfaction of the conditions
precedent set forth in Section 2 below, the parties hereto agree that the Credit Agreement is
hereby amended as follows:

The following definitions are hereby added to Section 1.01 of the Credit Agreement in their
appropriate alphabetical order therein:

“ “2010 Restructuring Charge Add-Back” means restructuring charges incurred by
the Borrower and its Subsidiaries in the second, third and fourth quarters of its
2010 fiscal year in an aggregate amount not to exceed $1,500,000.”

“ “Project I Add-Back” means (i) cash charges incurred by the Borrower and its Subsidiaries
in an aggregate amount not to exceed $6,400,000, and (ii) non-cash charges incurred by the Borrower
and its Subsidiaries in an aggregate amount not to exceed $2,700,000, each incurred in connection
with Project I.”

The definition of “Consolidated EBITDA” set forth in Section 1.01 of the Credit Agreement is
hereby amended to add the following sentence at the end thereof:

          “Solely for purposes of calculating the Total Leverage Ratio, the Consolidated Interest
Coverage Ratio and the Senior Secured Leverage Ratio, Consolidated EBITDA shall be
calculated by adding thereto, in each case in the period incurred and only to the extent
(and in the same proportion) deducted in determining Consolidated Net Income for the
relevant period, the 2010 Restructuring Add-Back and the Project I Add-Back.”

 

Section 6.10(a) of the Credit Agreement is hereby restated in its entirety as follows:

          “(a) Maximum Total Leverage Ratio. Permit the Total Leverage Ratio, for (i)
the Test Period ending on March 31, 2010, to exceed 4.25 to 1.00, (ii) for the Test Periods
ending on June 30, 2010 or September 30, 2010, to exceed 4.50 to 1.00, (iii) for the Test
Periods ending on December 31, 2010, March 31, 2011, June 30, 2011 or September 30, 2011, to
exceed 4.65 to 1.00 and (iv) for any Test Period ending on or after December 31, 2011, to
exceed 4.25 to 1.00.”

Conditions of Effectiveness. The effectiveness of this Amendment is subject to the conditions
precedent that the Administrative Agent shall have received (i) counterparts of this Amendment duly
executed by the Borrower, the Required Lenders and the Administrative Agent, (ii) counterparts of
the Consent and Reaffirmation attached as Exhibit A hereto duly executed by the Subsidiary
Guarantors, and (iii) payment and/or reimbursement of the Administrative Agent’s and its
affiliates’ fees and expenses (including, to the extent invoiced on or prior to the date hereof,
fees and expenses of counsel for the Administrative Agent) in connection with this Amendment and
the other Loan Documents and payable by the Borrower pursuant to the Credit Agreement.

Representations and Warranties of the Borrower. The Borrower hereby represents and warrants as
follows:

This Amendment and the Credit Agreement as modified hereby constitute legal, valid and binding
obligations of the Borrower and are enforceable against the Borrower in accordance with their
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law.

As of the date hereof and after giving effect to the terms of this Amendment, (i) no Default
shall have occurred and be continuing, and (ii) the representations and warranties of the Borrower
set forth in the Credit Agreement are true and correct, except for representations and warranties
made with reference solely to an earlier date in which case such representations and warranties
shall have been true and correct as of such earlier date.

Reference to and Effect on the Credit Agreement.

Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit Agreement
or any other Loan Document shall mean and be a reference to the Credit Agreement as amended
hereby.

Each Loan Document and all other documents, instruments and agreements executed and/or
delivered in connection therewith shall remain in full force and effect and are hereby ratified and
confirmed.

Except with respect to the subject matter hereof, the execution, delivery and effectiveness of
this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative
Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement, the Loan
Documents or any other documents, instruments and agreements executed and/or delivered in
connection therewith.

Governing Law. This Amendment shall be construed in accordance with and governed by the law of
the State of New York.

Headings. Section headings in this Amendment are included herein for convenience of reference
only and shall not constitute a part of this Amendment for any other purpose.

Counterparts. This Amendment may be executed by one or more of the parties hereto on any
number of separate counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

[Signature Pages Follow]

 

     IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above
written.

	 	 	 	 	 
	 	KENDLE INTERNATIONAL INC.,

as the Borrower

 	 
	 	By:  	 	 
	 	Name:  	 
	 	Title:  	 
	 

Signature Page to Amendment No. 2 to

Credit Agreement dated as of March 15, 2010

Kendle International Inc.

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

individually as a Lender, as the Swingline Lender, as

the Issuing Bank and as Administrative Agent

 	 
	 	By:  	 	 
	 	Name:  	 
	 	Title:  	 
	 

Signature Page to Amendment No. 2 to

Credit Agreement dated as of March 15, 2010

Kendle International Inc.

 

 

EXHIBIT A

Consent and Reaffirmation

     Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Amendment No. 2
to the Credit Agreement (as the same may be amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”) by and among Kendle International Inc., an Ohio
corporation (the “Borrower”), the Lenders and JPMorgan Chase Bank, N.A., as Administrative
Agent (the “Administrative Agent”), which Amendment No. 2 is dated as of January 21, 2011
and is by and among the Borrower, the financial institutions listed on the signature pages thereof
and the Administrative Agent (the “Amendment”). Capitalized terms used in this Consent and
Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement.
Without in any way establishing a course of dealing by the Administrative Agent or any Lender,
each of the undersigned consents to the Amendment and reaffirms the terms and conditions of the
Subsidiary Guaranty and any other Loan Document executed by it and acknowledges and agrees that the
Subsidiary Guaranty and each and every such Loan Document executed by the undersigned in connection
with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and
confirmed. All references to the Credit Agreement contained in the above-referenced documents
shall be a reference to the Credit Agreement as so modified by the Amendment and as the same may
from time to time hereafter be amended, modified or restated.

Dated as of January 21, 2011

[Signature Page Follows]

 

 

     IN WITNESS WHEREOF, this Consent and Reaffirmation has been duly executed as of the day and
year above written.

	 	 	 	 	 	 	 

	AAC CONSULTING GROUP, INC.	 	ACER/EXCEL INC.
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	Name:	 	Name:
	Title:	 	Title:
	 
	 	 	 	 	 	 
	KENDLE AMERICAS HOLDING INC.	 	KENDLE AMERICAS INVESTMENT INC.
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	Name:	 	Name:
	Title:	 	Title:
	 
	 	 	 	 	 	 
	KENDLE AMERICAS MANAGEMENT INC.	 	KENDLE INTERNATIONAL CPU LLC
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	Name:	 	Name:
	Title:	 	Title:
	 
	 	 	 	 	 	 
	KENDLE DELAWARE LLC	 	KENDLE NC LLC
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	Name:	 	Name:
	Title:	 	Title:

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