Document:

Exhibit 10.7

 

EMPLOYEE SECONDMENT AGREEMENT (TEP)

 

This Employee Secondment Agreement (TEP) (this “Agreement”) is entered into on March 29, 2018 by and between Toppan Electronics Products Co., Ltd. with its principal place of business at 5-1, Taito 1-chome, Taito-ku, Tokyo, Japan (“Toppan”), and VTS-Touchsensor Co., Ltd. (formerly known as Toppan Touch Panel Products Co., Ltd.), with its principal place of business at 1101-20, Myohoji-cho, Higashiomi, Shiga, 527-0046, Japan (“COMPANY”). This Agreement is effective from March 26, 2018 (the “Effective Date”). Each of Toppan and COMPANY is referred to herein as a “Party” and are collectively referred to herein as the “Parties.”

 

WITNESSETH:

 

WHEREAS, Toppan, which owns 35% of COMPANY’s outstanding capital, and VIA Optronics GmbH, a company organized under the laws of Germany (“VIA”), which owns 65% of COMPANY’s outstanding capital, are party to a Framework Agreement dated November 30, 2017 (the “Framework Agreement”), pursuant to Section 2.03(b) of which Toppan has agreed to second certain employees to COMPANY;

 

WHEREAS, the Parties wish for Toppan to second to COMPANY the Toppan employees set forth in Schedule 1 (the “Secondees”) to COMPANY for the period described in Schedule 1 for each Secondee (each such period for each Secondee, a “Secondment Period”), as Schedule 1 may be revised from time to time;

 

WHEREAS, COMPANY accepts Toppan’s appointment of the Secondees as secondees to COMPANY at its facilities at 1101-20, Myohoji-cho, Higashiomi, Shiga, 527-0046, Japan, and after the lease agreement between the Parties in relation to the facility located at 4237-1 Soushinden, Satte-shi, Saitama, 340-0013 Japan comes into effect, COMPANY’s facility in Satte (each, a “Facility”) to perform the functions set forth opposite their names in Schedule 1 (the “Functions”).

 

NOW THREFORE, in consideration of the premises and covenants contained herein, the Parties agree as follows:

 

Article 1.                                            Secondment and Support

 

1.1.                            Secondment

 

Toppan hereby seconds each Secondee to COMPANY at the Facility for his or her Secondment Period in order to perform their Functions and COMPANY accepts Toppan’s appointment of Secondees. COMPANY confirms that each Secondee shall perform his or her Function under the comprehensive guidance, direction, and supervision of COMPANY during his or her Secondment Period. COMPANY shall evaluate the performance of each Secondee’s performance of his or her Functions during his or her Secondment Period.

 

If COMPANY considers that it needs to adjust the positions of or replace Secondees, it may notify Toppan in writing of COMPANY’s request of such adjustment or replacement and the reasons therefor, which shall be commercially reasonable and necessary for sound operation of the Company. Toppan and COMPANY shall discuss the requested adjustment

 

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or replacement in good faith, but Toppan will not be obligated to (i) agree to any change in position of a Secondee or replace any Secondee unless COMPANY demonstrates to Toppan’s reasonable satisfaction that the Secondee is not competent to carry out the responsibilities associated with his or her position and Toppan has appropriate employees to change or replace as secondees or (ii) second additional employees to COMPANY if doing so would deprive Toppan of employees that it requires for its own operations. If Toppan does not second other employees or additional employees to COMPANY, COMPANY may ask Toppan to support to seek employees or secondees. Any Toppan employees who are seconded to COMPANY pursuant to this paragraph will be included in the definition of Secondees.

 

In principle, each Secondee will be seconded to COMPANY from his or her start date until the end of the his or her Secondment Period, subject to the preceding paragraph, except that Toppan reserves the right to end the Secondment Period of any Secondee in its sole discretion at any time by providing 30 days’ (unless agreed otherwise by the Parties) advance notice to COMPANY. The Parties shall discuss in good faith a replacement for the terminated Secondee, and if the Parties agree on the need for a replacement, and if Toppan has personnel who are appropriate for the position and whose secondment to COMPANY will not deprive Toppan of employees that it requires for its own operations, Toppan shall propose such personnel as a candidate of such replacement. If Toppan does not send a secondee to COMPANY, COMPANY may ask Toppan to cooperate in seeking a replacement from outside Toppan and Toppan shall provide such cooperation. Any Toppan employees who are seconded to COMPANY pursuant to this paragraph will be included in the definition of Secondees.

 

1.2.                            Scope of Services

 

Toppan shall ensure that each Secondee will perform such services and undertake such tasks in connection with the Function as directed by COMPANY from time to time during his or her Secondment Period.

 

1.3.                            Employment Terms and Conditions

 

Notwithstanding Secondees’ secondments, Secondees’ employment term, conditions, benefits, and other terms with Toppan will continue in full during each Secondee’s Secondment Period, and Toppan will continue to administer Secondees’ employment relationship, salary, benefits and related matters in accordance with Toppan’s policies and practices as in effect from time to time.

 

1.4.                            Holidays and Vacations; Leave of Absence; Retirement

 

Toppan’s vacation policies and holiday schedule will apply to Secondees, but Secondees shall schedule any vacation or other time off (including time traveling to Japan) with Secondee’s supervisor at COMPANY.

 

Each Secondee’s absence from work (kyuushoku, kyuugyou) will be in accordance with Toppan’s rules and decisions.

 

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Each Secondee’s retirement (taishoku) take place in accordance with Toppan’s rules as a Toppan employee.

 

1.5.                            Working Conditions

 

Toppan’s employee policies, including its internal codes for its employees regarding their work conditions (including, without limitation, working hours, and break time), dress codes, and health and safety, shall apply to Secondees, unless the Parties agree that one or more of COMPANY’s employee policies or internal codes will apply to Secondees. COMPANY may make Secondees work overtime and on holidays if necessary for the performance of the Function. If COMPANY needs to discipline or reward Secondees in accordance with COMPANY’s internal policies, the Parties shall discuss in good faith whether to discipline or reward Secondees, and if so, the best way to do so.

 

1.6.                            Disciplinary Action

 

Toppan shall be responsible for taking disciplinary action against Secondees in accordance with Toppan’s employee policies. If COMPANY concludes that it is necessary to take disciplinary action against a Secondee, COMPANY shall promptly inform Toppan and provide relevant information requested by Toppan. Toppan will implement the appropriate disciplinary action in compliance with its employee policies.

 

1.7.                            Health and Safety; Accident Compensation

 

COMPANY is responsible for the health and safety of the Secondees at the Facilities. If any Secondees are injured in connection with the provision of services for the Function, COMPANY shall pay any compensation due to those Secondees in accordance with Toppan’s employee policies.

 

1.8.                            Training

 

COMPANY may provide training and education to Secondees, in accordance with COMPANY’s employee policies, as necessary for the Secondees’ performance of services in connection with the Function. Toppan may, from time to time, with advanced notice to COMPANY, provide training to Secondees unrelated to the Function when Toppan deems it necessary, on condition that such training not interfere with Secondees’ performance of services in connection with the Function.

 

1.9.                            Welfare Association; Congratulatory and Condolence Payments

 

Secondees will continue to participate in the Toppan group’s welfare association (Toppan Group fukushikai).

 

Congratulatory and condolence payments (keichoumimaikin) for Secondees will be subject to Toppan’s employee policies.

 

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1.10.                     Additional Support

 

COMPANY will provide any additional support as may be reasonably necessary to facilitate Secondee’s secondment, including, without limitation, help in finding appropriate housing.

 

1.11.                     Extension of Secondment; Transfer of Secondees

 

At expiration of the Term, Toppan will determine Secondees’ next assignment. Notwithstanding the previous sentence, if COMPANY wishes to extend the secondment period of any Secondee or to have any Secondee transferred to COMPANY as a permanent employee, COMPANY must inform Toppan thereof at least six months before the end of the Term and the Parties shall engage in good faith negotiation with respect to the extension of such Secondee’s secondment period or to the transfer of such Secondee to COMPANY as an employee of the Company, subject to the consent of such Secondee, and shall take necessary actions therefor upon the Parties’ agreement and the consent of such Secondee.

 

1.12.                     Change in Employment Policies

 

If either Party changes any employee policy that affect any Secondee, that Party shall inform the other Party before the change in employment policy takes effect with respect to the Secondee.

 

Article 2.                                            Costs of Secondment

 

The costs associated with each Secondee will be borne by COMPANY and Toppan as set forth in Schedule 2. (the “Costs”).

 

Toppan will invoice the Company monthly for all Costs by the ninth business day (in Japan) of a month and COMPANY will pay amounts so invoiced within 30 days after receipt of the invoice. Payments shall be made by wire transfer of immediately available funds in Japanese Yen to an account designated by Toppan to COMPANY in writing.

 

Article 3.                                            Warranties

 

Each Party represents and warrants that it has the full right and power to execute and to perform this Agreement.

 

Article 4.                                            Limitation of Liability

 

IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY OTHER ENTITY FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER FOR BREACH OF WARRANTY, BREACH OF CONTRACT, REPUDIATION OF CONTRACT, NEGLIGENCE OR OTHERWISE. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN NO EVENT WILL THE AGGREGATE LIABILITY OF TOPPAN UNDER THIS AGREEMENT (UNDER ANY THEORY OF LIABILITY) EXCEED THE AMOUNT OF ALL DIRECT

 

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AND INDIRECT COSTS PAID BY COMPANY TO TOPPAN UNDER THIS AGREEMENT AT THE TIME OF THE CLAIM.

 

Article 5.                                            Disclaimer of Warranties and Liability

 

Toppan expressly disclaims all warranties concerning the Secondees and their performance and expressly disclaims all liability in connection with or relating to the Secondees during their Secondment Periods to COMPANY.

 

Article 6.                                            Confidentiality

 

6.1.                            Confidential Information Defined

 

In this Agreement, “Confidential Information” shall mean any and all technical information, data, facilities, equipment and materials, techniques, process, manufacturing methods, research and development activities, marketing and business plans, property, ideas, inventions, discoveries, trade secret and other technical, business and financial information disclosed by either Party to the other Party pursuant to this Agreement. Confidential Information may be furnished in any tangible or intangible form, including but not limited to writing, drawings, computer tapes and other electronic media, samples and verbal communications. Any Confidential Information furnished in tangible form shall be marked as “Confidential,” “Proprietary,” or a similar legend.

 

6.2.                            Disclosure Limitations to Confidential Information

 

Each Party shall maintain in confidence all Confidential Information received from the other Party under this Agreement and shall not disclose the Confidential Information to any third party or use the same for any purpose other than the purposes of this Agreement, provided, however, that COMPANY may disclose to VIA Optronics GmbH and its affiliates and Toppan may disclose to its affiliates the Confidential Information received from Toppan to the extent necessary to facilitate the performance of this Agreement, on condition that the Party making such disclosure cause its affiliates that have received any Confidential Information of the other Party to comply with this provision and that the disclosing Party be responsible for any act by such affiliate that would constitute a breach of this provision had the act been undertaken by the disclosing Party. Each Party shall disclose the Confidential Information only to its employees or any subcontractors, consultants and advisers (such as accounting and legal advisers) who need to know such Confidential Information for the purposes of this Agreement and who have agreed to keep it confidential under terms that are no less restrictive than set forth in this Article 6. Each Party shall use the same degree of care to avoid disclosure or use of the Confidential Information as it employs with respect to its own confidential information. Each Party shall take all reasonable precautions, contractual or other appropriate actions, necessary to prevent unauthorized disclosure or use of any and all Confidential Information.

 

6.3.                            Exclusions

 

The foregoing provision shall not apply to any information that:

 

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(a)                                 is already known to the receiving Party (“Recipient”);

 

(b)                                 is or becomes publicly known through no fault of Recipient;

 

(c)                                  is received from a third party who is in lawful possession thereof and is not subject to any non-disclosure restriction, and without breach of this Agreement;

 

(d)                                 is independently developed by Recipient without use of any Confidential Information of the providing Party (“Provider”), as evidenced by Recipient’s written records; or

 

(e)                                  is approved for release by written authorization of Provider.

 

In addition, Recipient may disclose Confidential Information pursuant to a valid order issued by a court or government agency or as otherwise required by law, provided that (i) Recipient gives Provider prior written notice of such obligation and the opportunity to oppose such disclosure or obtain a protective order; (ii) Recipient only discloses such Confidential Information as is required to comply with such order or law, and (iii) no such disclosure shall otherwise exempt such Confidential Information from being treated as confidential under this Agreement.

 

6.4.                            Survival

 

The provisions of this Article 6 shall survive the expiration or termination of this Agreement.

 

Article 7.                                            Term

 

This Agreement shall become effective on the Effective Date and continue in full force and effect until the third anniversary of the Effective Date, unless otherwise terminated earlier by mutual agreement by the Parties. Upon such termination, all costs and expenses due in connection with each Secondee’s secondment under this Agreement shall be promptly paid by COMPANY in accordance with the terms of this Agreement.

 

Article 8.                                            Termination

 

Either Party may terminate this Agreement immediately upon giving written notice to the other Party if the other Party:  (a) becomes insolvent or its liabilities exceeds its assets; (b) suspends payments or any drafts or checks drawn, issued, or undertaken by the other Party are dishonored, (c) becomes subject, voluntarily or involuntarily, to any bankruptcy, civil rehabilitation, corporate reorganization, or other legal procedure for debt restructuring or work-out (out-of-court procedure for its debts); or (d) is dissolved or liquidated or takes any corporate action for such purpose.

 

Either Party may terminate this Agreement immediately upon giving written notice to the other Party (a) if the other Party fails to make a payment due under this Agreement and fails to cure the payment breach within 15 days after the first Party’s written notice of the payment breach, (b) if the other Party otherwise materially breaches this Agreement and,

 

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if such breach is curable, fails to cure such breach within 30 days after the first Party’s written notice of such breach.

 

Either Party may terminate this Agreement immediately upon giving written notice to the other Party if (a) VIA Optronics GmbH, alone or in combination with its affiliates, no longer has a majority stake in COMPANY or the right to appoint a majority of the COMPANY’s board members, or (b) Toppan no longer holds any shares in COMPANY.

 

Article 9.                                            Miscellaneous

 

9.1.                            Force Majeure

 

Neither Party shall be liable for any loss, damage, cost and expense, if the fulfillment by such Party of any obligation to the other Party is delayed or prevented due to any cause beyond the first Party’s reasonable control, including but not limited to compliance with any governmental law or regulation, acts of God, acts of civil or military authority, judicial action, labor disputes, failure or delays in transportation, embargoes, wars, riots or engineering delays. In the event of any delay due to such causes or other difficulties, whether or not similar in nature to any of those enumerated, the obligation hereunder shall be extended for a period equal to the extent of the delay so incurred.

 

9.2.                            Assignment

 

This Agreement and any rights or obligations hereunder shall not be assignable by either Party to any third party without the prior written consent of the other Party, which shall not be unreasonably withheld.

 

9.3.                            Invalid Provisions

 

If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws, such provision shall be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision has never comprised a part of this Agreement and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance.

 

9.4.                            Survival

 

Termination or expiration of this Agreement for any reason shall not release either Party from any liabilities or obligations set forth in this Agreement that (i) the Parties have expressly agreed shall survive any such termination or expiration, or (ii) remain to be performed or by their nature would be intended to be applicable following any such termination or expiration.

 

9.5.                            No-waiver

 

No delay or failure to exercise any right, power or remedy accruing to either Party upon any breach or default by the other Party under this Agreement shall impair any such right,

 

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power or remedy of such Party nor shall it be construed to be a waiver of any such breach or default or of any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.

 

9.6.                            Relationship between Parties

 

The relationship between Toppan and COMPANY herein shall be that of independent contractors. Nothing in this Agreement shall be construed to make the Parties agents of each other, or partnerships or joint ventures, or to permit either Party to bind the other Party to any other agreement.

 

9.7.                            Notice

 

All notices, requests, consents, claims, demands, waivers and other communications hereunder must be in writing and will be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) on the date sent by e-mail of a PDF document, if sent during the recipient’s normal business hours, and on the next Business Day, if sent after the recipient’s normal business hours, on condition that the communication sent by e-mail is also sent by certified or registered mail, return receipt requested, postage prepaid; or (c) if sent internationally, on the fifth day, and if sent within Japan, on the second day, after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the Parties at the following addresses (or at such other address for a Party of which that Party notifies the other Party in accordance with this Section 9.7).

 

	
If to Toppan:
    	
 
    	
Toppan Electronics Products Co., Ltd.
    
	
 
    	
 
    	
Toppan Shibaura Bldg., 3-19-26 Shibaura,
    
	
 
    	
 
    	
Minato-ku, Tokyo 108-8539
    
	
 
    	
 
    	
E-mail: mikio.ishijima@toppan.co.jp
    
	
 
    	
 
    	
Attention: Mikio Ishijima
    
	
 
    	
 
    	
 
    
	
With a copy to (which will not
    	
 
    	
 
    
	
constitute notice):
    	
 
    	
southgate (registered association)
    
	
 
    	
 
    	
Pacific Square Kudan-Minami, 7th Fl
    
	
 
    	
 
    	
2-4-11 Kudan-Minami
    
	
 
    	
 
    	
Chiyoda-ku, Tokyo 102-0074
    
	
 
    	
 
    	
E-mail: emarcks@southgate-law.com
    
	
 
    	
 
    	
|Attention: Eric Marcks
    
	
 
    	
 
    	
 
    
	
if to COMPANY:
    	
 
    	
VTS-Touchsensor Co., Ltd.
    
	
 
    	
 
    	
1101-20, Myohoji-cho, Higashiomi
    
	
 
    	
 
    	
Shiga, 527-0046
    
	
 
    	
 
    	
Email: JWoerle@via-optronics.com
    
	
 
    	
 
    	
Attention: Dr. Jasmin Wörle
    

 

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With a copy to (which will not
    	
 
    	
 
    
	
constitute notice):
    	
 
    	
VIA optronics GmbH
    
	
 
    	
 
    	
Sieboldstr. 18, 90411 Nurnberg
    
	
 
    	
 
    	
E-mail: kbickelbacher@via-optronics.com
    
	
 
    	
 
    	
Attention: Kathrin Bickelbacher
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Jones Day
    
	
 
    	
 
    	
Kamiyacho Prime Place
    
	
 
    	
 
    	
1-17, Toranomon 4-chome
    
	
 
    	
 
    	
Minato-ku, Tokyo 105-0001, JAPAN
    
	
 
    	
 
    	
E-mail: mushijima(&jonesday.com
    
	
 
    	
 
    	
Attention: Makiko Ushijima
    

 

9.8.                            Compliance with Laws, including Export Control Laws

 

Each Party shall comply with all applicable laws and governmental rules and regulations in any applicable country, during its performance hereunder, including without limitation all applicable export, re-export, and import regulations.

 

9.9.                            Governing Law and Dispute Resolution

 

This Agreement shall be governed by and construed in accordance with the laws of Japan.

 

The Parties shall endeavor to resolve any dispute, controversy or difference arising out of, in connection with, or related to this Agreement (a “Dispute”) through good-faith negotiations. If a Dispute is not settled within 20 days after the receipt by a Party of a written request for negotiation, the Dispute will be referred for consideration by the Parties’ senior officers. The senior officers will have full authority to settle the Dispute.

 

If the senior officers are unable to resolve the Dispute within 20 days after the receipt by a Party of a written request for consideration of the Dispute by senior officers under the previous paragraph, the Parties shall submit the Dispute to arbitration in Tokyo in accordance with the Commercial Arbitration Rules of the Japan Commercial Arbitration Association for final settlement. The Parties shall appoint three arbitrators in accordance with the rules and shall conduct the arbitration in English. The decision by the arbitration tribunal will be final and binding on the Parties and may be approved of or entered in (or otherwise be granted enforceability through necessary procedures by) any court having jurisdiction. The Parties consent to consolidation by the Japan Commercial Arbitration Association of arbitral proceedings initiated under this Agreement with arbitration proceedings initiated under the Framework Agreement.

 

9.10.                     Language

 

This Agreement shall be entered into in the English language, which shall be controlling in the event of conflict or discrepancy between the English version and any version in any other language.

 

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9.11.                     Headings

 

The headings of Articles of this Agreement are inserted for convenience only and shall not be deemed to constitute this Agreement, or to affect the construction of this Agreement.

 

9.12.                     Entire Agreement

 

This Agreement constitutes the entire agreement of the Parties relating to the subject matter contained herein and supersedes all previous discussions, other communications, understandings and agreements between the Parties with respect to the subject matter hereof. This Agreement may be amended or modified only in writing duly signed by authorized representatives of the Parties.

 

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IN WITNESS WHEREOF, the Parties have caused this Employee Secondment Agreement (TEP) to be executed by their respective duly authorized representative as of the date first above written.

 

TOPPAN ELECTRONICS PRODUCTS CO., LTD.

 

	
By:
    	
/s/ Mikio Ishijima
    	
 
    
	
 
    	
Name:   Mikio Ishijima
    	
 
    
	
 
    	
Title:   Representative Director
    	
 
    

 

[Signature Page to Employee Secondment Agreement]

 

 

IN WITNESS WHEREOF, the Parties have caused this Employment Secondment Agreement (TEP) to be executed by their respective duly authorized representative as of the date first above written.

 

	
VTS-TOUCHSENSOR   CO., LTD.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Jasmin Wörle
    	
 
    
	
 
    	
Name:   Jasmin Wörle
    	
 
    
	
 
    	
Title:   Representative Director
    	
 
    

 

[Signature Page to Employee Secondment Agreement]

 

 

Schedule 2 — Allocation of Financial Responsibility

 

(a)                                 Costs to be borne by COMPANY

 

·                  Salaries, including income tax

 

·                  Benefits

 

·                  Employment-related insurance (health insurance, nursing care insurance, welfare pension insurance, employment insurance, child allowance, workers’ accident compensation insurance etc.)

 

·                  Toppan group welfare association contributions

 

·                  Congratulatory and condolence payments

 

·                  Training referred to in the first sentence of Article 1.8

 

·                  Travel and relocation expenses arising from Secondee’s need to perform the

 

·                  Function, subject to COMPANY’S travel policies, in the event COMPANY orders Secondees to take such business trips based on operational necessity. Relocation expenses will be discussed and aligned prior to approval with COMPANY.

 

·                  Other costs similar in nature to the costs listed above that are related to Secondee’s secondment during the Term

 

·                  All incremental costs and expenses to COMPANY related to Secondee’s secondment during the Term, including without limitation, charges for a leased vehicle, IT/computer and a telephone. Other costs will be discussed and aligned with COMPANY prior to approval, to determine whether expenses are required or not.

 

·                  All governmental related and Toppan pension fund related pensions paid by Toppan related to each Secondee’s secondment

 

·                  All taxes (including, without limitation, consumption tax, but excluding income taxes) imposed by any government authority in Japan, as a result of the existence and performance of this Agreement

 

·                  All commuting expenses of Secondees from their home location to the Facility and back

 

(b)                                 Costs to be borne by Toppan

 

·                  Costs associated with awards and commendations given to Secondees by Toppan

 

Sched 2-1Exhibit 10.8

 

EXECUTION COPY

 

SHIGA FACILITY LEASE AGREEMENT

 

This Shiga Facility Lease Agreement (this “Agreement”) is entered into on March 29, 2018 between Toppan Printing Co., Ltd., a company organized under the laws of Japan (“Landlord”), and VTS-TOUCHSENSOR CO., LTD. (formerly known as Toppan Touch Panel Products Co., Ltd.), a company organized under the laws of Japan (“Tenant”). This Agreement is effective from March 26, 2018 (the “Effective Date”). Each of Landlord and Tenant is referred to as a “Party.”

 

RECITALS

 

A.            Landlord, which owns 35% of Tenant’s outstanding capital, and VIA Optronics GmbH, a company organized under the laws of Germany (“VIA”), which owns 65% of Tenant’s outstanding capital, are party to a Framework Agreement dated November 30, 2017 (the “Framework Agreement”), pursuant to which Landlord has agreed to lease to Tenant the Leased Premises.

 

B.            Landlord and Tenant enter into this Agreement to implement the lease of the Premises to Tenant in accordance with the Framework Agreement.

 

The Parties hereby agree as follows:

 

ARTICLE I
  DEFINITIONS

 

Section 1.1           The terms set forth below have the meanings specified or referred to below.

 

Affiliate: Of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. The term “control” of a Person (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of at least 50% of the outstanding voting securities of the Person.

 

Business Day: Any day except Saturday, Sunday or any other day on which commercial banks located in Tokyo, Japan or Frankfurt, Germany are authorized or required by Law to be closed for business.

 

Common Areas: All areas and facilities located outside of the Premises and within the exterior boundary line of the Facility that are provided and designated by the Landlord from time to time for the general non-exclusive use of Landlord, Tenant, and other occupants of the Facility, and their respective employees, suppliers, shippers, customers, contractors, and invitees, including, without limitation, parking areas, loading and unloading areas, trash areas, lighting facilities, fences and gates, roadways, sidewalks, walkways, parkways, driveways, and landscaped areas.

 

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Facility:  The Premises and the Common Areas, together with all other existing and future buildings and improvements erected on the land located at 1101-20, Myohoji-cho, Higashiomi, Shiga, 527-0046, Japan.

 

Governmental Authority: Any national, prefectural, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

 

Law: Any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement or rule of law of any Governmental Authority.

 

Permitted Use: Offices for management, operational, and administrative functions and manufacturing facility for manufacturing copper touch panel sensors used in touch panel modules and related products.

 

Person: An individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association or other entity.

 

Premises: The space for the use of Tenant (10,957.8 square meters) at Landlord’s facility located at 1101-20, Myohoji-cho, Higashiomi, Shiga, 527-0046, Japan described in Schedule 1.

 

Representative: With respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants and other agents of such Person.

 

Rules and Regulations: The rules and regulations that apply to the Premises and Common Areas established by Landlord from time to time.

 

Term: As defined in Section 7.1.

 

ARTICLE II
 LEASE OF PREMISES

 

Section 2.1           Lease of Premises. Subject to the terms and conditions of this Agreement, Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises during the Term.

 

Section 2.2           Acceptance of Premises. Tenant hereby acknowledges that: (a) Tenant has had the opportunity to inspect the Premises; (b) the Premises are acceptable for Tenant’s intended Permitted Use as of the date of such inspection.  The Landlord hereby acknowledges that, the Rent under Section 4.2 is based on the condition that the Premises are fit for such Permitted Use, and if the Premises become unfit for such Permitted Use due to the reason not attributable to the Tenant, the Landlord and the Tenant shall negotiate in good faith and revise  the Rent reflecting the above accordingly; and neither Landlord nor any of Landlord’s Representatives has made any oral or written representations or warranties with respect to

 

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the Premises other than as set forth in this Agreement. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TENANT ACCEPTS THE PREMISES IN THEIR “AS-IS” CONDITION.

 

Section 2.3           Common Areas. Landlord hereby grants to Tenant, for the benefit of Tenant and its employees, suppliers, shippers, customers, contractors, and invitees, during the Term, the nonexclusive right to use the Common Areas as they exist from time to time, subject to any rights, powers, and privileges reserved by Landlord under the terms hereof or under the terms of any Rules and Regulations governing the use of the Common Areas. Under no circumstances will the right granted herein be deemed to include the temporary or permanent right to store any property in the Common Areas. Landlord may, from time to time: (a) establish, modify, amend, and enforce the Rules and Regulations regarding the Common Areas; (b) make changes to the Common Areas, including, without limitation, changes in the location, size, shape, and number of driveways, entrances, ingress, egress, direction of traffic, parking spaces, parking areas, loading and unloading areas, landscaped areas, and walkways; (c) close temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the Premises remains available; (d) add additional buildings and improvements to the Common Areas; and (e) do and perform such other acts and make such other changes in, to, or with respect to the Common Areas as Landlord may, in the exercise of sound business judgment, deem to be appropriate. All parking areas, driveways, entrances and exits thereto, stairways, lobbies, and all other Common Areas will be at all times subject to the exclusive control and management of Landlord.

 

ARTICLE III
 USE OF THE PREMISES

 

Section 3.1           Permitted Use.  Tenant shall use the Premises only for the Permitted Use and shall not use the Premises for any other purposes. Tenant shall not use the Facility or permit the Premises to be used in violation of any Law or in a manner that annoys or interferes with the rights of other occupants of the Facility.

 

Section 3.2           Uses Prohibited. Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything in or on the Premises that is not within the Permitted Use or that will in any way increase the existing rate on or affect any insurance upon the Facility or cause a cancellation of any insurance policy covering the Facility or any part thereof or any of its contents.

 

Section 3.3           No Assignment or Subleasing. Tenant shall not sell, assign, encumber, pledge, or otherwise transfer all or any part of the Premises, sublet all or any party of the Premises, or permit the Premises to be occupied by anyone other than Tenant.

 

Section 3.4           Permits and Documents.

 

(a)           Tenant, in a timely manner, shall obtain and maintain in full force and effect all permits, licenses, and approvals, and shall make and file all notifications and registrations, that Tenant is required to hold or to make by applicable Laws. Tenant shall at all times comply with the terms and conditions of any such permits, license, approvals, notifications, and registrations.

 

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(b)           Landlord represents and warrants that it has all permits, licenses, and approvals that it is required to hold to lease the Premises to Tenant throughout the Term of this Agreement.

 

Section 3.5           Landlord’s Access. Landlord or its Representatives may enter the Premises at all reasonable times to inspect the Premises or for any other purpose Landlord deems necessary. Landlord shall give Tenant reasonable advance notice of such entry, except in the case of an emergency. Landlord will at all times have and retain a key with which to unlock all of the standard entrances and exit doors in, upon, and about the Premises, and Landlord may use any and all means that Landlord may deem proper to open such doors in an emergency, in order to obtain entry to the Premises without liability to Tenant, except for any failure to exercise due care for Tenant’s property.  In this Section 3.5, the term of “emergency” shall mean an imminent physical risk or damage to the Premises or the properties/personnel located in the Premises is occurring or reasonably foreseeable.

 

Section 3.6           Indemnification.

 

(a)           Tenant shall indemnify, defend, save, and keep Landlord, and Landlord’s Representatives and successors, and assigns, harmless from and against any and all liabilities, obligations, charges, losses, damages, penalties, claims, actions, and expenses, including without limitation, engineers’ and professional fees, imposed on, incurred by, or asserted against Landlord, in each case, as the result of a third-party claim against Landlord, in any way relating to, arising out of, or in connection with, Tenant’s use of the Facility or the Common Areas in violation of this ARTICLE III.

 

(b)           Landlord shall indemnify, defend, save, and keep Tenant, and Tenant’s Representatives and successors, and assigns, harmless from and against any and all liabilities, obligations, charges, losses, damages, penalties, claims, actions, and expenses, including without limitation, engineers’ and professional fees, imposed on, incurred by, or asserted against Tenant, in each case, as the result of a third-party claim against Tenant, in any way relating to, arising out of, or in connection with, Landlord’s breach of Section 3.4(b).

 

ARTICLE IV
 RENT AND OTHER PAYMENTS

 

Section 4.1           Rent and Other Payments. Tenant shall pay rent equal to JPY6,229 167 (exclusive of applicable consumption tax) per month throughout the Term (the “Rent”). If taxes assessed on the Facility or Premises increase considerably or if there is another unanticipated and unavoidable change in circumstance that considerably increases the cost of owning the Facility or Premises, the Parties shall discuss in good faith an appropriate increase in the Rent. In addition, Tenant shall share certain maintenance costs incurred in connection with the Facility, for the items described in Schedule 2 (the “Maintenance Costs”), as well as certain administration fees payable to Toppan Techno Co., Ltd., a subsidiary of Landlord (“Toppan Techno”) (the “Techno Administration Fee”), as set forth below.  The sharing ratio between Tenant and Landlord for both the Maintenance Cost and Techno Administration Fee shall be forty percent (40%) for Tenant and sixty percent (60%) for Landlord (the “Sharing Ratio”). The respective amounts payable for such Rent and Maintenance Costs for the term of this Agreement is set forth in Schedule 3 hereto (“Payment Schedule”).

 

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Section 4.2           Payment of Rent.

 

(a)           Pursuant to the Payment Schedule, Tenant shall pay the Rent for the period from March 26, 2018 through March 2019 (the “First-Year Rent”) starting in April 2019. Tenant shall pay the First-Year Rent equally in monthly installments over a four-year period, at the same time as it pays Rent that becomes due monthly on and after April 2019, along with interest of 2% per year, calculated on a daily basis. Notwithstanding the previous two sentences, before April of each year of the Term, the Parties shall discuss in good faith whether and to what extent Tenant is able to accelerate the repayment of the First-Year Rent without causing undue harm to its business operations and financial situation, and if the Parties conclude that Tenant is able to accelerate such repayment in light of those factors, Tenant will repay the First-Year Rent at the accelerated schedule agreed by the Parties.

 

(b)           Pursuant to the Payment Schedule, Tenant shall pay the Rent (including First-Year Rent) for a month in arrears, by the 60th day after the first day of the next month (i.e., the Rent for the month of April is due June 30). Rent due for any period of less than a full month will be appropriately apportioned based on the number of days in that month.

 

(c)           Interest of 4 % per year, calculated on a daily basis, will be assessed on late payments of the Rent (including First-Year Rent). Pursuant to the Payment Schedule, interest will be payable at the end of every calendar quarter (i.e., interest on Rent that is due but unpaid by the end of July, August, and/or September is due and payable on the last day of September). Notwithstanding the fact that the Term (defined below) commences on the Effective Date, the first payment of interest on late Rent payments, if any, will not come due until the last day of December 2018.

 

(d)           Tenant will pay consumption tax on the rent in accordance with the payment schedule set forth in Schedule 3. If the Japanese government increases the consumption tax during the Term (as defined in Section 7.1), Schedule 3 will be updated to reflect the increased consumption tax.

 

Section 4.3           Payment of Shared Cost

 

(a)           By the 10th Business Day of each month, Landlord shall deliver to Tenant an invoice (a “Landlord Invoice”) setting forth (i) the total amounts of Maintenance Cost and Techno Administration Fee incurred in the previous month and (ii) the amounts to be allocated to Tenant under the Sharing Ratio (the “Shared Cost”), and by the last day of each month, Landlord shall send to Tenant a copy of the invoice sent by Toppan Techno to Landlord for the Techno Administration Fee in the Landlord Invoice described in the first part of this sentence. Within 10 Business Days after Tenant’s receipt of the copy of the Landlord invoice, Tenant shall review the amounts and items described in the invoice for the Shared Costs and notify Landlord of its approval or rejection (together with its request to provide more information or otherwise to modify.)  If approved, Tenant shall pay such amount of the Shared Cost by 60th day after the first day of the next month (i.e., the Rent for the month of April is due June 30) , unless otherwise subject to the payment schedule described in Paragraph (b) below.  A sample form of Landlord Invoice is attached to this Agreement as Schedule 4.

 

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(b)           Notwithstanding of Paragraph (a) above, the payment of the Shared Costs incurred for the period from March 26, 2018 through September 30, 2018 (the “Initial Shared Costs”) shall be deferred until and paid on or before March 31, 2019, in a single installment. Interest of 2% per year, calculated on a daily basis, will accrue on the Initial Shared Costs, from July 1, 2018 until March 31, 2019, inclusive, and such interest shall be deferred until and paid on or before March 31, 2019, in a single installment. Interest of 4 % per year, calculated on a daily basis, will be assessed on late payments of the Shared Costs (including Initial Shared Costs). Interest will be payable at the end of every calendar quarter (i.e., interest on Shared Costs that is due but unpaid by the end of July, August, and/or September is due and payable on the last day of September). Notwithstanding the fact that the Term commences on the Effective Date, the first payment of interest on late Shared Cost payments, if any, will not come due until the last day of December, 2018. Shared Costs due for any period of less than a full month will be appropriately apportioned based on the number of days in that month, and shall be so described in applicable invoice to be prepared by Landlord.

 

ARTICLE V
 MAINTENANCE, REPAIRS, AND ALTERATIONS

 

Section 5.1           Maintenance by Tenant. Tenant shall at all times during the Term keep the Premises and all fixtures thereof (including electrical, lighting, heating, and plumbing and plumbing fixtures, and any air conditioning systems) in good order, condition, and repair. Tenant shall repair any damages to the structural portions of the Facility attributable to (caused by) Tenant or its Representatives, at its own costs, or request the Landlord to repair the same and reimburse the reasonable costs thereof.

 

(a)           Maintenance by Landlord. Landlord shall maintain, repair, and replace the structural portions of the Premises. Landlord shall repair and replace plumbing, utility, and/or sewer lines that service the Premises.

 

Section 5.2           Alterations, Additions, and Improvements.

 

(a)           Tenant shall not make any alterations, additions, or improvements to the Premises without Landlord’s advance written consent, except for minor non-structural alterations that are not made on the exteriors of the Facility.

 

(b)           Unless otherwise agreed with Landlord, Tenant shall remove all furniture, personal property, trade fixtures, shelves, bins, and machinery installed by Tenant before the expiration or termination of this Agreement and Tenant shall be responsible for repairing, upon the expiration or termination of this Lease, all damage to the Premises or the Facility caused by the installation or removal of such items.

 

ARTICLE VI
 PAYMENTS AND TAXES

 

Section 6.1           Payments.

 

(a)           Tenant shall make all payments due under this Agreement by wire to an account designated by Landlord.

 

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(b)           Subject to and unless otherwise specifically set forth in Article IV with respect to the deferred payments of the First Year Rent and the Shared Cost, interest of 4% per year, calculated on a daily basis from the date the payment was required to be paid to the date of actual payment, will be assessed to any late payment under this Agreement.

 

Section 6.2           Taxes.

 

(a)           Rent and other sums payable under this Agreement are exclusive of taxes. Tenant shall be responsible for all sales, use, excise, and value added taxes, and any other similar taxes, duties, and charges of any kind imposed by any Governmental Authority on any amounts payable by Tenant hereunder, other than any taxes imposed on, or with respect to, Landlord’s income, revenues, gross receipts, personnel, or real or personal property, or other assets, and shall pay all Rent and other sums payable hereunder free and clear of all deductions and withholdings whatsoever, unless the deduction or withholding is required by Law. If any deduction or withholding is required by Law, Tenant shall pay to Landlord such sum as will, after the deduction or withholding has been made, leave Landlord with the same amount as it would have been entitled to receive without any such requirement to make a deduction or withholding.

 

(b)           Tenant shall pay all taxes relating to personal property or other movable property of the Tenant located at the Premises. Landlord shall pay all real estate-related taxes relating to the Premises.

 

ARTICLE VII
 TERM AND TERMINATION

 

Section 7.1           Term. This Agreement commences on the Effective Date and continues for an initial term of 5 years, with an option for Tenant to renew for one additional 5-year term, unless terminated earlier pursuant to Section 7.2 (the “Term”). The Parties may extend the Term by mutual consent.

 

Section 7.2           Early Termination.

 

(a)           Either Party may terminate this Agreement before the expiration of the Term immediately by giving written notice to the other Party if:

 

(i)       the other Party materially breaches this Agreement and, if such breach is curable, fails to cure such breach within 30 days after the first Party’s written notice of such breach, except that if the breach is a payment obligation by Tenant, Landlord may terminate this Agreement if Tenant fails to cure the breach within 15 days after Landlord’s written notice of such breach; or

 

(ii)      the other Party: (1) becomes insolvent; (2) suspends payments or any drafts or checks drawn, issued, or undertaken by Tenant are dishonored, (3) becomes subject, voluntarily or involuntarily, to any bankruptcy, civil rehabilitation, corporate reorganization, or other legal procedure for debt restructuring or work-out (out-of-court procedure for its debts), that is not fully stayed within 30 Business Days or is not dismissed or vacated within 60 Business Days after filing; or (4) is dissolved or liquidated or takes any corporate action for such purpose.

 

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(b)           Landlord may terminate this Agreement before the expiration of the Term immediately upon giving written notice to Tenant if (i) VIA, alone or in combination with its Affiliates, no longer has control (as defined in the definition of Affiliate) of Tenant, or (ii) if the Parties agree, following good-faith discussions, in the event Toppan no longer holds any shares in Tenant.

 

(c)           If the Premises are totally or substantially destroyed by any cause whatsoever, or if the Facility is substantially destroyed (even though the Premises are not totally or substantially destroyed), this Agreement will terminate on the date the destruction occurred.

 

(d)           If Tenant exercises the option to renew this Agreement for 5 years pursuant to Section 7.1 and if during this renewal period this Agreement is terminated for a reason other than pursuant to Section 8.2(b), Section 7.2(c),  or by Tenant pursuant to Section 7.2(a), Tenant shall pay to Landlord, within thirty (30) days after the termination, the Rent for the remaining period of the Term, determined by multiplying the Rent by the number of months remaining until the end of the Term (the “Remaining Rent”). Notwithstanding the previous sentence, if Tenant introduces to Landlord, before the payment of the Remaining Rent, a new tenant that Landlord reasonably deems to be acceptable as a tenant and the new tenant leases the Premises after the termination referred to in the previous sentence, Tenant will not be obligated to pay the Remaining Rent.

 

Section 7.3           Surrender of the Premises. Upon the expiration or other termination of this Agreement, Tenant shall vacate and surrender the Premises vacant, removing all alteration, additions, and improvements made by Tenant to the Premises and, unless agreed otherwise in writing by the Parties, restore the Premises to their original condition. If Tenant fails to restore the Premises to such condition, Landlord may restore the Premises, equipment, and fixtures to such condition and Tenant shall pay the cost thereof upon demand. All of Tenant’s personal property, furniture, trade fixtures, and machinery not removed from the Premises when Tenant leaves the Premises upon the expiration or other termination of this Agreement will be deemed to have been abandoned by Tenant and Landlord may require Tenant to remove such personal property, furniture, trade fixtures, and machinery at Tenant’s expense or Landlord may have such property removed at Tenant’s expense.

 

Section 7.4           Holding Over. Any holding over by Tenant after the expiration or termination of this Agreement, by lapse of time or otherwise, will not operate to extend or renew this Agreement except by the express mutual written agreement between the Parties. If Tenant fails to perform its obligations under Section 7.3, Tenant shall pay Rent until Tenant has completely vacated the Premises (including the removal of all of Tenant’s personal property, furniture, trade fixtures, and machinery from the Premises).

 

Section 7.5           Survival. The rights and obligations of the parties set forth in this Section 7.5 and in ARTICLE I (Definitions), Section 3.6 (Indemnification), Section 7.3 (Surrender of the Premises), Section 7.4 (Holding Over)and ARTICLE VIII (Miscellaneous), and any right, obligation, or required performance of the parties in this Agreement which, by its express terms or nature and context is intended to survive termination or expiration of this Agreement, shall survive any such termination or expiration.

 

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ARTICLE VIII
 MISCELLANEOUS

 

Section 8.1           Confidentiality. Each Party agrees not to disclose the contents of this Agreement or the other Party’s Confidential Information without the other Party’s advance written consent. “Confidential Information” of a Party means all non-public or sensitive or proprietary information about or of that Party but does not include information (a) that has become publicly known through no breach by either Party of its confidentiality obligations hereunder, (b) that is independently and lawfully developed or obtained by a Party without access to the other Party’s Confidential Information, (c) is or becomes available to a Party on a non-confidential basis from a third Person, on condition that that third Person is not and was not prohibited from disclosing that information, or (d) that was known by or in the possession of a Party before the disclosure of that information to that Party pursuant to this Agreement, on condition that, in the case of each of (a) through (d), the Party seeking to disclose such information has the burden of demonstrating that it is not Confidential Information; provided, however, each Party may disclose such Confidential Information to its Affiliates, in each case on a need-to-know basis for the purpose of facilitating the performance of this Agreement, on condition that the Party making such disclosure cause its Affiliates that have received any Confidential Information of the other Party to comply with this provision and that the disclosing Party be responsible for any act by such Affiliates that would constitute a breach of this provision had the act been undertaken by the disclosing Party. A Party may disclose Confidential Information of the other Party if required pursuant to applicable law, regulation or a valid order issued by a court or governmental agency of competent jurisdiction, on condition that the Party first make commercially reasonable efforts to provide the other Party (i) prompt written notice of such requirement so that the other Party may seek, at its sole cost and expense, a protective order or other remedy, and (ii) reasonable assistance, at the other Party’s sole cost and expense, in opposing such disclosure or seeking a protective order or other limitations on disclosure.

 

Section 8.2           Independent Contractors. The relationship between the Parties is that of independent contractors. Nothing contained in this Agreement is to be construed as creating any agency, partnership, joint venture, or other form of joint enterprise, employment, or fiduciary relationship between the Parties and neither Party has the authority to contract for or bind the other Party in any manner whatsoever.

 

Section 8.3           Expenses. Except as otherwise expressly provided herein, all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby will be paid by the Party incurring such costs and expenses.

 

Section 8.4           Further Assurances. In connection with this Agreement and the transactions contemplated hereby, each Party shall, at the request of the other Party, execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be required to carry out the provisions hereof and give effect to the transactions contemplated hereby.

 

Section 8.5           Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder must be in writing and will be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) on the date sent by 

 

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e-mail of a PDF document, if sent during the recipient’s normal business hours, and on the next Business Day, if sent after the recipient’s normal business hours, on condition that the communication sent by e-mail is also sent by certified or registered mail, return receipt requested, postage prepaid; or (c) if sent internationally, on the fifth day, and if sent within Japan, on the second day, after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the Parties at the following addresses (or at such other address for a Party of which that Party notifies the other Party in accordance with this Section 8.5):

 

	
If to Landlord:
    	
 
    	
Toppan Printing Co., Ltd.
   Toppan Shibaura Bldg., 3-19-26 Shibaura,
   Minato-ku, Tokyo 108-8539E-mail: teruo.ninomiya@toppan.co.jp,   kentaro.kitaoka@toppan.co.jp
   Attention: Teruo Ninomiya and Kentaro Kitaoka

 
    
	
With a copy to (which will not
   constitute notice):
    	
 
    	
southgate (registered association)
   Pacific Square Kudan-Minami, 7th Fl
   2-4-11 Kudan-Minami, Chiyoda-ku, Tokyo 102-0074
   E-mail: emarcks@southgate-law.com
   Attention: Eric Marcks

 
    
	
If to Tenant:
    	
 
    	
VTS-TOUCHSENSOR CO., LTD.
   1101-20, Myohoji-cho, Higashiomi
   Shiga, 527-0046 Japan
   E-mail: JWoerle@via-optronics.com
   Attention: Dr. Jasmin Wörle

 
    
	
With a copy to (which will not
   constitute notice):
    	
 
    	
VIA optronics GmbH
   Sieboldstr. 18, 90411 Nurnberg
   E-mail: CAlbert@via-optronics.com
   Attention: Christine Albert

Jones Day
   Kamiyacho Prime Place
   1-17, Toranomon 4-chome
   Minato-ku, Tokyo 105-0001, JAPAN
   E-mail: mushijima@jonesday.com
   Attention: Makiko Ushijima
    

 

Section 8.6           Headings. The headings in this Agreement are for reference only and do not affect its interpretation.

 

Section 8.7           Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, that invalidity, illegality or unenforceability will not affect any other term or provision of this Agreement or invalidate or render unenforceable

 

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that term or provision in any other jurisdiction. Upon determination that any term or other provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the Parties’ original intent as closely as possible in a mutually acceptable manner so that the transactions contemplated hereby may be consummated as originally contemplated to the greatest extent possible.

 

Section 8.8           Entire Agreement. This Agreement and the Framework Agreement constitute the sole and entire agreement of the Parties with respect to the subject matter contained herein and supersede all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to this subject matter.

 

Section 8.9           Successors and Assigns; Assignment. This Agreement is binding upon and will inure to the benefit of the parties and their respective successors and permitted assigns. Neither Party shall assign its rights or obligations hereunder without the advance written consent of the other Party, which consent must not be unreasonably withheld or delayed by either Party. No assignment will relieve the assigning Party of any of its obligations hereunder.

 

Section 8.10        No Third-party Beneficiaries. This Agreement is for the sole benefit of the Parties (and their respective heirs, executors, administrators, successors and assigns) and nothing herein, express or implied, is intended to or will 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 8.11        Amendment and Modification; Waiver. This Agreement may be amended, modified or supplemented only by an agreement in writing signed by each Party. No waiver by either Party of any of the provisions hereof will be effective unless explicitly set forth in writing and signed by that Party. No waiver by either Party will be, or will be construed as, a waiver in respect of any failure, breach or default not expressly identified by that written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement will be, or will be construed as, a waiver thereof; nor will any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

Section 8.12        Governing Law; Dispute Resolution.

 

(a)           This Agreement is governed by and to be construed in accordance with the laws of Japan without giving effect to any choice or conflict of law provision or rule.

 

(b)           The Parties shall endeavor to resolve any dispute, controversy or difference arising out of, in connection with, or related to this Agreement (a “Dispute”) through good-faith negotiations. If a Dispute is not settled within 20 days after the receipt by a Party of a written request for negotiation under this Section 8.12(b), the Dispute will be referred for consideration by the Parties’ senior officers. The senior officers will have full authority to settle the Dispute.

 

(c)           If the senior officers are unable to resolve the Dispute within 20 days after the receipt by a Party of a written request for consideration of the Dispute by senior

 

11

 

officers under Section 8.12(b), the Parties shall submit the Dispute to arbitration in Tokyo in accordance with the Commercial Arbitration Rules of the Japan Commercial Arbitration Association for final settlement. The Parties shall appoint three arbitrators in accordance with the rules and shall conduct the arbitration in English.  The decision by the arbitration tribunal will be final and binding on the Parties and may be approved of or entered in (or otherwise be granted enforceability through necessary procedures by) any court having jurisdiction. The Parties consent to consolidation by the Japan Commercial Arbitration Association of arbitral proceedings initiated under this Agreement with arbitration proceedings initiated under the Framework Agreement.

 

Section 8.13        Specific Performance. The Parties agree that irreparable damage will occur if any provision of this Agreement is not performed in accordance with its terms and that the Parties are entitled to specific performance of its terms, in addition to any other remedy to which they are entitled at law or in equity.

 

Section 8.14        Attorneys’ Fees. If any action at law or in equity is necessary to enforce or interpret the terms of the Agreement, the prevailing Party will be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which that Party may be entitled.

 

Section 8.15        Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission will be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the Parties execute this Shiga Facility Lease Agreement on the date stated in the introductory clause.

 

	
 
    	
Toppan Printing   Co., Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Teruo Ninomiya
    
	
 
    	
Name:
    	
Teruo Ninomiya
    
	
 
    	
Title:
    	
Senior General   Manager
    

 

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IN WITNESS WHEREOF, the Parties execute this Shiga Facility Lease Agreement on the date stated in the introductory clause.

 

	
 
    	
VTS-TOUCHSENSOR   CO., LTD.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dr. Jasmin Wörle 
    
	
 
    	
Name: Dr. Jasmin   Wörle 
    
	
 
    	
Title: Representative Director
    

 

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