Document:

Master Agreement

 Exhibit 10-AAkk 
  

			
	DATED 7 March	 	2006

  

	(1)	TECH DATA EUROPE GMBH 

  

	(2)	GLOBAL KNOWLEDGE NETWORK NETHERLANDS B.V. 

  

	(3)	GLOBAL KNOWLEDGE TRAINING, LLC 

  

 MASTER AGREEMENT 
  

for the sale and purchase 
 of the Azlan
Training Business 
 Eversheds LLP 
 Senator House 
 85 Queen Victoria Street 
 London EC4V 4JL 
 Tel: +44 (0) 20 7919 4500 
 Fax: +44 (0) 20 7919 4919 
 CONFIDENTIAL TREATMENT REQUESTED 

 CONTENTS 
  

					
	  	  	 	  	Page
	Clause	  		  	
			
	1	  	INTERPRETATION	  	1
	2	  	SALE AND PURCHASE	  	10
	3	  	DEPOSIT	  	12
	4	  	CONSIDERATION	  	12
	5	  	COMPLETION	  	13
	6	  	WARRANTIES	  	15
	7	  	INDEMNITIES	  	16
	8	  	RESTRICTIVE COVENANTS	  	17
	9	  	USE OF THE AZLAN NAME	  	18
	10	  	BUYER’S ASSURANCES	  	20
	11	  	RECORDS AND ACCESS	  	20
	12	  	FUTURE ENQUIRIES AND ASSISTANCE	  	21
	13	  	ANNOUNCEMENTS	  	21
	14	  	COSTS	  	21
	15	  	NOTICES	  	21
	16	  	ASSIGNMENT	  	22
	17	  	ENTIRE AGREEMENT	  	22
	18	  	GENERAL	  	23
	19	  	GUARANTOR OBLIGATIONS	  	24
	20	  	GOVERNING LAW AND ARBITRATION	  	25
	21	  	COUNTERPARTS	  	26
		
	Schedules	  	
	1	  	Relevant Sellers and Relevant Buyers	  	27
	2	  	Purchase Price Allocation	  	28
	3	  	The Excluded Assets	  	29
	4	  	Warranties	  	30
	5	  	Limitations on the Seller’s Liability	  	39
	6	  	Azlan Name	  	44
	7	  	Part I - Completion Accounts	  	45
		  	Part II - Pro Forma Balance Sheet as at the Transfer Date	  	49
	8	  	Material Contracts	  	50
	9	  	IT Systems	  	51
	10	  	Transitional Arrangements	  	52

 CONFIDENTIAL TREATMENT REQUESTED 

			
	THIS AGREEMENT is made on 7 March	 	2006

 BETWEEN: 
  

	(1)	TECH DATA EUROPE GMBH incorporated and registered in Germany with company number HRB 123866 whose registered office is at Kistlerhofstrasse 75, D-81379 Munich, Germany (the
“Seller”); and 

  

	(2)	GLOBAL KNOWLEDGE NETWORK NETHERLANDS B.V. incorporated and registered in the Netherlands with company number 30134193 whose registered office is at Ratelaar 38, 3434 EW Nieuwegein,
The Netherlands (the “Buyer”); 

  

	(3)	GLOBAL KNOWLEDGE TRAINING LLC incorporated and registered in the state of Delaware and whose registered office is at 90000 Regency Parkway, Suite 500, Cary, North Carolina 27511,
United States of America (the “Guarantor”). 

 WHEREAS 
  

	(A)	Each of the Relevant Sellers (as defined below) is a direct or indirect subsidiary of or an Associated Company of the Seller and the Relevant Sellers together carry on the Business.

  

	(B)	Each of the Relevant Buyers (as defined below) is a direct or indirect subsidiary of the Buyer. 

  

	(C)	The Seller has agreed to sell and transfer, or procure the sale and transfer by the Relevant Sellers of, and the Buyer has agreed to purchase, or procure the purchase by the
Relevant Buyers of, the Business as a going concern for the consideration and on the terms and subject to the conditions set out in this Agreement and the relevant Local Agreements (as defined below). 

 OPERATIVE CLAUSES 
  

	1.	INTERPRETATION 

 In this Agreement: 
  

	1.1	the following expressions have the following meanings unless inconsistent with the context: 

  

			
	“Accounting Date”	  	31 January 2005
		
	“Accounts”	  	the audited statutory accounts of each Relevant Seller for the financial year which ended on the Accounting Date

  

					
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	 	1	 	

			
	“Additional Consideration”	  	the amount of USD $500,000 set out in clause 4.1.2
		
	“Associated Company”	  	 any company which at the relevant time is:
  
 (a)      a holding company of the Seller (or the Buyer (as the case may be)); or
  
 (b)      a subsidiary or
subsidiary undertaking of the Seller (or the Buyer (as the case may be)); or
  
 (c)      a subsidiary or subsidiary undertaking of any such holding company (other than the Seller (or the Buyer (as the case may be)) itself);
  
 the expressions “holding company”, “subsidiary” and “subsidiary
undertaking” having the meanings given to them by CA 1985

		
	“Assumed Liabilities”	  	 (i)       the liabilities of the Relevant Sellers in respect of the
Business which fall due on or after the Transfer Date set out in the Completion Accounts, and
  
 (ii)      all other obligations of the Relevant Sellers under or in respect of the Business
Contracts and the Property due to be performed after the Transfer Date (but excluding any liability for breach of any such obligation which ought to have been performed prior to the Transfer Date)

		
	“Azlan Integration”	  	the process of integrating the operational business activities of Azlan entities into the Tech Data group of companies which started in December 2004 and which is ongoing

  

					
	 CONFIDENTIAL TREATMENT
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	 	2	 	

			
	“Azlan Name”	  	the Azlan Training name and/or the Azlan logo as used in the Business at the Transfer Date, including the visual representations which are set out in Schedule 6
		
	“Business”	  	the training business carried on by the Relevant Sellers under the Azlan Name at the Transfer Date
		
	“Business Assets”	  	all the property, rights and assets of the Business to be sold to the Relevant Buyers pursuant to this Agreement or any Local Agreement as described in clause 2
		
	“Business Contracts”	  	all Contracts entered into by or on behalf of the Relevant Sellers in connection with the Business which are unperformed (wholly or partly) as at the Transfer Date and including customer and
supplier contracts, computer contracts, leasing and hire agreements, pre-payments in respect of business contracts and licences of Intellectual Property Rights and Know How but excluding employment contracts with Employees, contracts relating to the
ownership or occupation of the Property, and contracts relating to the Excluded Assets
		
	“Business Day”	  	any day (other than a Saturday or Sunday) on which banks are open in London for normal banking business
		
	“Business Information”	  	all confidential information (but excluding Business Know How) that is used in any part of the Business and Business Assets including (i) any products sold or services rendered by the
Business and (ii) the operations, management, administration or financial affairs of the Business

  

					
	 CONFIDENTIAL TREATMENT
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	 	3	 	

			
	“Business Intellectual Property”	  	Intellectual Property Rights (excluding the Business Name) owned by the Relevant Sellers or used in connection with the Business as at the Transfer Date
		
	“Business Know How”	  	that Know How owned by the Relevant Sellers and used primarily and substantially in connection with the Business at this Transfer Date excluding for the avoidance of doubt any Business
Name
		
	“Business Name”	  	the Tech Data name and/or the Azlan Name
		
	“Buyer’s Solicitors”	  	Kilpatrick Stockton LLP of One Canada Square Canary Wharf, London E14 5NZ, United Kingdom
		
	“CA 1985”	  	the Companies Act 1985
		
	“Collateral Intellectual Property Rights”	  	all intellectual property rights, other than Intellectual Property Rights (as defined below) used in connection with the Business as at the Transfer Date
		
	“Completion”	  	completion of the sale and purchase in accordance with clause 5
		
	“Completion Accounts”	  	the proforma balance sheets of each of the Relevant Sellers relating to its part of the Business as at the Transfer Date prepared in accordance with Schedule 7 and on a consistent
basis with the Management Accounts
		
	“Consideration”	  	the aggregate consideration for the sale of the Business Assets as stated in clause 4
		
	“Contract”	  	any legally binding agreement or commitment
		
	“Customer Cash”	  	all cash sums belonging or referable to customers, or potential customers, of the Business which are held by or deposited with the Seller and/or each Relevant Seller as deposits for, or
advance or instalment payment in relation to, any Business Contract, or so held or deposited in relation to any contract or order which any such customer may place with the Business in the future

  

					
	 CONFIDENTIAL TREATMENT
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	 	4	 	

			
	“Deposit”	  	the sum of USD $1,650,000 to be paid to the Seller on the execution of this Agreement in accordance with clause 3
		
	“Disclosed”	  	disclosed in the Disclosure Letter or any of its annexures
		
	“Disclosure Letter”	  	the letter having the same date as this Agreement from the Seller to the Buyer qualifying the Warranties
		
	“Employees”	  	the persons identified in schedules to the Local Agreements and employed in the Business immediately before the Transfer Date whose contracts of employment after the Transfer Date will be or
are deemed effected with the Relevant Buyer
		
	“Encumbrance”	  	any mortgage, charge, pledge, lien, assignment by way of security, option, restriction, claim, right of pre-emption, right of first refusal, third party right or interest, other encumbrance
or security interest of any kind, or other preferential arrangement having similar effect
		
	“Excluded Assets”	  	the assets described in Schedule 3 and which are excluded from the sale and purchase pursuant to this Agreement
		
	“Goodwill”	  	the goodwill of the Business at the Transfer Date and the exclusive right of the Relevant Buyer to carry on the Business and to represent themselves as carrying on the Business in succession
to the Relevant Sellers
		
	“Initial Consideration”	  	the sum of USD $16.5 million (sixteen million five hundred thousand United States’ dollars)

  

					
	 CONFIDENTIAL TREATMENT
 REQUESTED
	 	5	 	

			
	“Intellectual Property Rights”	  	the Business Name, the Flexcom name, the Horizon name, the domain names listed in the Disclosure Letter, software licences and ownership and other rights to use the training and marketing
materials employed in the Business at the Transfer Date
		
	“Inventory”	  	all stock in trade of the Business at the Transfer Date (including, without limitation any transferable testing vouchers)
		
	“IT Systems”	  	all computer hardware (including network and telecommunications equipment) and software (including associated preparatory materials, user manuals and other related documentation) owned, used,
leased or licensed by or in relation to the Business, excluding the Retained Accounting Systems. A non-exhaustive list of the IT Systems (providing central IT services) is set out in Schedule 9
		
	“Jurisdictions”	  	Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden and the United Kingdom
		
	“Know How”	  	all technical information and know-how (whether or not confidential) including that comprised in or derived from formulae, designs, specifications, drawings, manuals, instructions and
catalogues that in any way relate to inventions, discoveries, improvements, designs, processes, techniques, computer hardware and Software
		
	“Liabilities”	  	all costs, expenses, losses, damages, claims, proceedings, awards, fines, orders and other liabilities (including reasonable legal and other professional fees and expenses) whenever arising
or brought

  

					
	 CONFIDENTIAL TREATMENT
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	 	6	 	

			
	“Local Agreements”	  	the asset transfer agreements to be entered into by the Relevant Sellers and the Relevant Buyers on Completion in substantially the agreed form or in such other form as the parties may agree
required in order to effect the sale and purchase of the Business in the Jurisdictions and Local Agreement means any one of them
		
	“Management Accounts”	  	a proforma balance sheet and a profit and loss account relating to the Business extracted from the management accounts of each Relevant Seller for the nine month period from the Accounting Date
to the Management Accounts Date
		
	“Management Accounts Date”	  	31 October 2005
		
	“Material Business Contracts”	  	means those Business Contracts listed in Schedule 8
		
	[REDACTED]	  	[REDACTED]
		
	“Parties”	  	the parties to this Agreement and “Party” shall be construed accordingly
		
	“Plant and Equipment”	  	the fixed and loose plant, machinery and equipment, fittings and other chattels (including office equipment but excluding the IT Systems) owned by the Relevant Sellers and used in connection
with the Business or this Transfer Date whether or not situated at the Property
		
	“Property”	  	the leasehold or licensed properties used in connection with the Business listed in the Local Agreements and in relation to a particular Relevant Seller, the leasehold or licensed property owned
or occupied for the purpose of the Business by that Relevant Seller and each and every part of such property (including, for the avoidance of doubt the benefit of rental payments, deposits and rates made under the relevant Leases prior to Completion
and where the context admits the leases and tenancies pursuant to which the Properties are held by the Seller or Relevant Seller)

  

					
	 CONFIDENTIAL TREATMENT
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	 	7	 	

			
	“Records”	  	all the books and records (or extracts thereof where appropriate) relating primarily and substantially to the Business, the Business Assets and the Employees (including personnel files) other
than those relating to the Excluded Assets and any records that the Seller or the Relevant Sellers are required by law to retain
		
	“Relevant Buyers”	  	the relevant buyers whose names are set out in column (2) of Schedule 1
		
	“Relevant Claim”	  	any claim for breach of any of the Warranties or any other provision of this Agreement (other than a breach of clause 2.2 or a claim under clause 7.1)
		
	“Relevant Sellers”	  	the relevant sellers whose names are set out in column (1) of Schedule 1
		
	“Retained Accounting Systems”	  	the “SAP” and “Strategix” accounting software systems used by certain of the Relevant Sellers
		
	“Retained Liabilities”	  	all liabilities or obligations of the Business which have accrued at the Transfer Date other than the Assumed Liabilities
		
	“Retained Property”	  	the leasehold or licensed properties used in connection with the Business in [REDACTED]
		
	“Seller’s Solicitors”	  	Eversheds LLP of Senator House, 85 Queen Victoria Street, London EC4V 4JL
		
	“Software”	  	any form of computer program, including applications software, database platform and operating systems, whether in source or object code form used in the Business

  

					
	 CONFIDENTIAL TREATMENT
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	 	8	 	

			
	“Taxation” or “Tax”	  	any governmental, federal, state, regional, local, municipal or foreign income, gross receipts license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits,
environmental, customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, alternative or add-on minimum, estimated, or
other tax or any kind whatsoever, whether computed on a separate or consolidated, unitary or combined basis or in any other manner, including any interest, penalty, or addition thereto, whether disputed or not and including any obligation to
indemnify or otherwise assume or succeed to the Tax liability of any other person
		
	“Trade Accounts Receivable”	  	all amounts owing to a Relevant Seller by trade debtors in connection with the Business at the Transfer Date in respect of goods or services supplied by such Relevant Seller before the
Transfer Date (whether or not invoiced and whether or not then due and payable)
		
	“Transfer Date”	  	10 March 2006, or such other date as the Parties may agree
		
	“VAT”	  	Value Added Tax
		
	“Warranties”	  	the warranties set out or referred to in clause 6 and Schedule 4

  

	1.2	references to any statute or statutory provision include, unless the context otherwise requires, a reference to the statute or statutory provision as modified or re-enacted and in
force from time to time prior to Completion and any subordinate legislation made under the relevant statute or statutory provision in force prior to Completion; 

  

	1.3	references to persons will include bodies corporate, unincorporated associations and partnerships; 

  

					
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	1.4	references to a document being “in the agreed terms” are to that document in the form agreed and for the purposes of identification initialled by or on behalf of the
Seller and the Buyer; 

  

	1.5	references to the singular include the plural and vice versa; 

  

	1.6	references to clauses and Schedules are to clauses of and Schedules to this Agreement, and references to paragraphs are to paragraphs in the Schedule in
which such references appear; 

  

	1.7	references to the Transfer Date shall mean 5.30 p.m. (GMT) on the Transfer Date; 

  

	1.8	if any reference to an amount in US dollars under this Agreement or any Local Agreement needs to be converted into a currency other than US dollars it will be converted at the spot
rate prevailing and published in the Financial Times in London on the Transfer Date; 

  

	1.9	the Schedules form part of this Agreement and will have the same force and effect as if expressly set out in the body of this Agreement; 

  

	1.10	the headings in this Agreement will not affect its interpretation; and 

  

	1.11	any phrase introduced by the term “include”, “including”, “in particular” or any similar expression will be construed as illustrative and will not
limit the sense of the words preceding that term. 

  

	2.	SALE AND PURCHASE 

  

	2.1	The Seller will procure the sale and transfer by each Relevant Seller, in each case pursuant to this Agreement and, to the extent applicable, the relevant Local Agreement with full
title guarantee (unless otherwise specified in this Agreement), and the Buyer will procure the purchase by each Relevant Buyer of the Business as a going concern as at the Transfer Date comprising the following assets (the “Business
Assets”): 

  

	 	2.1.1	the benefit (subject to the burden) of the Business Contracts; 

  

	 	2.1.2	the Business Know How; 

  

	 	2.1.3	the Business Information; 

  

	 	2.1.4	the Business Intellectual Property; 

  

					
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	 	2.1.5	the Collateral Intellectual Property Rights 

  

	 	2.1.6	the Inventory; 

  

	 	2.1.7	the IT Systems; 

  

	 	2.1.8	the Goodwill; 

  

	 	2.1.9	the Plant and Equipment; 

  

	 	2.1.10	the Property (other than the Retained Property); 

  

	 	2.1.11	the Trade Accounts Receivable; and 

  

	 	2.1.12	the Records. 

  

	2.2	Each of the Business Assets will be sold and bought free from any Encumbrance and with all rights attached to it unless otherwise specified in this Agreement.

  

	2.3	The Buyer will procure that each Relevant Buyer will assume the burden of the Assumed Liabilities pursuant to the relevant Local Agreement. 

  

	2.4	Except as otherwise provided in this Agreement or any relevant Local Agreement: 

  

	 	2.4.1	beneficial ownership and risk in each of the Business Assets in respect of which beneficial ownership is to pass to the Relevant Buyer will pass to the Relevant Buyer on Completion;
and 

	 	2.4.2	title to all Business Assets in respect of which beneficial ownership is to pass to the Relevant Buyer which can be transferred by delivery will pass on delivery and such delivery
will be deemed to take place at Completion. 

  

	2.5	Notwithstanding any other provision of this Agreement, the Excluded Assets and the Retained Liabilities (which the Parties do not consider to be necessary for the operation of the
business as a going concern) are excluded from the sale and purchase under or pursuant to this Agreement. 

  

	2.6	For the avoidance of doubt, provisions dealing with the transfer of the Business Assets and detailed schedules of the Property and the Employees are contained in the Local
Agreements. 

  

	2.7	Subject to Completion: 

  

	 	2.7.1	[REDACTED]; 

  

					
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	 	2.7.2	[REDACTED]; 

  

	 	2.7.3	     

  

	 	2.7.3.1	[REDACTED] 

  

	 	2.7.3.2	[REDACTED] 

  

	 	2.7.3.3	[REDACTED]

  

	 	2.7.3.4	[REDACTED] 

  

	 	2.7.3.5	[REDACTED] 

  

	3.	DEPOSIT 

  

	3.1	There shall be paid by the Buyer in cash to the Seller’s Solicitors client account on the execution of this Agreement the amount of the Deposit, which shall be held by the
Seller’s Solicitors as stakeholders and shall be dealt with in accordance with Clause 3.2 of this Agreement. 

  

	3.2	The Seller’s Solicitors shall hold the Deposit as stakeholders and the Seller and the Buyer agree irrevocably to authorise the Seller’s Solicitors to:

  

	 	3.2.1	pay the Deposit and accrued interest to the Seller either: (a) (as part satisfaction of the Initial Consideration) in the event that Completion takes place in accordance with
Clause 5; or (b) if Completion does not take place in accordance with Clause 5 due to anything done or omitted to be done by the Buyer save where the Buyer exercises it right to rescind this Agreement pursuant to Clause
17.4; or 

  

	 	3.2.2	pay the Deposit and accrued interest to the Buyer in the event that Completion does not take place in accordance with Clause 5 due to anything done or omitted to be done
solely by the Seller. 

  

	4.	CONSIDERATION 

  

	4.1	The Consideration for the sale of the Business and the Business Assets is: 

  

	 	4.1.1	the Initial Consideration (the amount of which less the Deposit shall be paid in accordance with clause 5.5, such Deposit to be dealt with in accordance with clause 3
above); 

  

					
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	 	4.1.2	[REDACTED], a further amount of USD $500,000, payable within 10 Business Days of unconditional confirmation of renewal to the Buyer or any Relevant Buyer [REDACTED].

  

	4.2	[REDACTED]. 

  

	4.3	The Consideration will be allocated as set out at Schedule 2. 

  

	4.4	The Consideration shall be paid by the Buyer (as agent for the Relevant Buyers) to the Seller or such other Tech Data entity as the Seller shall direct (as agent for the Relevant
Sellers), in accordance with clauses 5.5 and 5.6 as reflected in and subject to any legal requirements under any Local Agreement for any direct payments thereunder or as otherwise agreed by the Buyer and the Seller.

  

	4.5	All amounts expressed in this Agreement as being payable by the Buyer are expressed exclusive of any VAT or similar tax or duty which may be chargeable. The parties will use their
respective best endeavours to mitigate the imposition of any such tax. If subsequent to Completion it is determined that the relevant sales are (contrary to the view of the Parties) not to be regarded as transfers as going concerns such that VAT or
a similar tax should have been charged, the Buyer will be invoiced and shall pay such tax to the Seller. 

  

	5.	COMPLETION 

  

	5.1	Completion will take place at the offices of Seller’s Solicitors on the Transfer Date. 

  

	5.2	At Completion, the Seller shall procure that each Relevant Seller shall, and the Buyer shall procure that each Relevant Buyer shall enter into the relevant Local Agreement. To the
extent that any provisions of this Agreement are inconsistent with or additional to the provisions of a Local Agreement, the provisions of this Agreement shall prevail and the Seller and the Buyer shall procure that the provisions of the relevant
Local Agreement are adjusted to the extent necessary to give effect to the provisions of this Agreement subject to being compliant with any relevant law in the relevant Jurisdiction and/or that the Relevant Seller and the Relevant Buyer comply to
the extent lawful with the provisions of this Agreement as though they were bound by such provisions in place of the provisions of the relevant Local Agreement. For the avoidance of doubt, the relevant Local Agreement will be entered into solely in
order to implement the sale and purchase of the part of the Business agreed to be sold in the relevant Jurisdiction and to enable the Relevant Buyer to enter into a direct contractual relationship with the Relevant Seller in the terms of the Local
Agreement. 

  

					
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	5.3	The Seller shall not and shall procure that a Relevant Seller shall not bring any claim against the Buyer or the Relevant Buyers in respect of or based upon the Local Agreements
save to the extent necessary to implement any transfer of any Business Assets sold hereunder in a manner consistent with the terms provided for by this Agreement. To the extent that the Seller or a Relevant Seller does bring such a claim (save as
referred to above), the Seller shall indemnify each of the Buyer and the Relevant Buyers against all losses which it may suffer through or arising from the bringing of such a claim against it. The Buyer shall not and shall procure that a Relevant
Buyer shall not bring any claim against the Seller or the Relevant Sellers in respect of or based upon the Local Agreements save to the extent necessary to implement any transfer of any Business Assets sold hereunder in a manner consistent with the
terms provided for by this Agreement. To the extent that the Buyer or a Relevant Buyer does bring such a claim (save as referred to above), the Buyer shall indemnify each of the Seller and the Relevant Sellers against all losses which it may suffer
through or arising from the bringing of such a claim against it. 

  

	5.4	At and from Completion, the Seller will procure that the Relevant Sellers and the Buyer will procure that the Relevant Buyers will comply with the provisions of and perform the
relevant Local Agreements. 

  

	5.5	At Completion, the Buyer will pay the Initial Consideration by electronic funds transfer to the Seller’s Solicitors’ client account (details of which have been provided by
the Seller’s Solicitors to the Buyer’s Solicitors) or by such other method as may be agreed between the parties. 

  

	5.6	The Additional Consideration shall be paid by electronic funds transfer to the Seller’s Solicitors’ client account or by such other method as may be agreed between the
parties within the applicable time frame prescribed in clause 4.1.2. 

  

	5.7	The Seller’s Solicitors are authorised to receive the Consideration on behalf of the Seller and payment to them will be a good and sufficient discharge to the Buyer and the
Buyer will not be further concerned as to the application of the moneys so paid. 

  

	5.8	The Buyer is not obliged to complete this Agreement unless the Relevant Sellers comply with all of their respective obligations under the relevant Local Agreements.

  

	5.9	The Buyer and the Seller will implement the provisions of Schedule 7 to produce and effect a final determination of the Completion Accounts. 

  

					
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	5.10	Between the execution of this Agreement and Completion, the Seller shall procure that the Relevant Sellers shall operate the Business in the normal course and that all insurance
related to the Business is maintained. 

  

	6.	WARRANTIES 

  

	6.1	The Seller warrants to the Buyer in the terms of the Warranties. The Warranties shall have effect subject to and shall be qualified by all facts and matters fairly Disclosed and the
limitations and qualifications set out in this Agreement. 

  

	6.2	The Seller waives and may not enforce any right which the Seller may have against any of the Employees on whom it may have relied in agreeing to any term of this Agreement or any
statement in the Disclosure Letter save to the extent of any fraud or any dishonest, reckless or wilful misconduct or omission by such Employee towards the Seller in this regard. 

  

	6.3	Each Warranty is to be construed independently and is not limited or restricted by any other Warranty. 

  

	6.4	Where any Warranty refers to the knowledge, information, belief or awareness of the Seller (or similar expression) the reference shall include the actual knowledge of the Seller and
Relevant Seller and the Seller will be deemed to be aware of all information it received after making due enquiry of [REDACTED] and any other persons who are directors of the Relevant Sellers but the Seller will not be deemed to have made enquiry of
any other person or further or otherwise and will not be liable for breach of Warranty should a fact or circumstance which would otherwise constitute a breach of Warranty be known to any person other than the persons of whom due enquiry should be
made. 

  

	6.5	Notwithstanding any other provision of this Agreement, the liability of the Seller in respect of any Relevant Claim will be limited in accordance with the provisions of Schedule
5 (Limitations on the Seller’s liability). 

  

	6.6	Where an amount is payable by one party to the other after Completion, the amount of any Relevant Claim or any indemnity claim as finally determined will if determined in a currency
other than US dollars be converted to US dollars at the spot rate prevailing and published in the Financial Times in London last before payment. 

  

	6.7	In respect of any Relevant Claim (or part thereof) the Seller will pay the sum due to the Buyer within 10 Business Days of the Seller or Relevant Seller confirming it does not
dispute the relevant amount of the Relevant Claim or part thereof. 

  

					
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	6.8	In the event that any of the Business Assets used in the remote labs are removed or rendered unusable by the Seller or any Associated Company, or any agent thereof, after Completion
the Seller shall replace such Business Assets with the same equipment or equipment with the same specifications and functionality within 24 hours of notification by Buyer to Seller regarding an event triggering this clause 6.8. For the
avoidance of doubt, the financial limitations on the Seller’s liability contained in paragraphs 2.2 and 2.3 of Schedule 5 shall not apply to this clause 6.8. For the further avoidance of doubt, the other provisions
of Schedule 5 shall apply to this clause 6.8. 

  

	7.	INDEMNITIES 

  

	7.1	As at and from the Transfer Date, the Seller undertakes to indemnify, and to keep indemnified, the Buyer and each Relevant Buyer against the Retained Liabilities (whether actual,
contingent or prospective) to the extent not performed or discharged by the Relevant Sellers under the Local Agreements including any reasonable costs of defending third party claims relating to the Retained Liabilities and all reasonable legal fees
incurred by the Buyer in connection with enforcing this indemnity. 

  

	7.2	As at and from the Transfer Date, the Buyer undertakes to indemnify, and keep indemnified, the Seller and each Relevant Seller against the Assumed Liabilities (whether actual,
contingent or prospective) to the extent not performed or discharged by the Relevant Buyers under the Local Agreements including any reasonable costs of defending third party claims relating to the Assumed Liabilities and all reasonable legal fees
incurred by the Seller in connection with enforcing this indemnity. 

  

	7.3	The Buyer undertakes to: 

  

	 	7.3.1	procure that the Relevant Buyers shall pay any registration fee or transfer tax payable by the Relevant Buyers on the transfer of the Business Assets in any Jurisdiction; and

  

	 	7.3.2	indemnify, and keep indemnified, the Seller and each Relevant Seller against any failure by the Relevant Buyers to pay any such registration fee or transfer tax.

  

					
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	8.	RESTRICTIVE COVENANTS 

  

	8.1	In this clause: 

  

			
	“Confidential Information”	  	means all Business Know How and all Business Information, in each case, which amounts to a trade secret and which is not publicly known

  

	8.2	Each party undertakes to the other that it shall not and shall procure that each of the Associated Companies shall not (whether alone or in conjunction with, or on behalf of,
another person and whether directly or indirectly), without the prior written consent of the other: 

  

	 	8.2.1	for a period of two years from Completion, solicit or entice away, or endeavour to solicit or entice away, from the other party or any Associated Company of it, or employ, any
person employed by, or who is or was a consultant to, the other party at Completion provided that nothing in this clause will prohibit or restrict a party from interviewing and/or employing any such person who (i) initiates discussions
regarding employment without any direct or indirect solicitation by a party; (ii) contacts a party or any Associated Company of it in response to a general recruitment advertisement placed by or on behalf of such party or any Associate Company
of it in the national, local or trade press or otherwise in relation to seeking employment with such party; or (iii) has been terminated by the relevant party or any Associated Company of it prior to commencement of any employment discussions
or employment; or 

  

	 	8.2.2	at any time after Completion make use of, disclose or cause unauthorised disclosure to any person (except those authorised by the Buyer in writing to know or as required by law or
any governmental or regulatory organisation, or to enforce the terms of this Agreement) any Confidential Information relating to the other party or any Associated Company of it. 

  

	8.3	The Seller undertakes to the Buyer that it shall not, and will procure that the Relevant Sellers shall not, (whether alone or in conjunction with, or on behalf of, another person
and whether directly or indirectly), without the prior written consent of the Buyer: 

  

	 	8.3.1	for a period of two years from Completion, in any geographic areas in which the Business was carried on at the Completion Date, carry on or be employed, engaged or interested in any
business which would be in competition with any part of the Business as the Business was carried on at Completion; 

  

					
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	 	8.3.2	for a period of two years from Completion use the Azlan Name. 

  

	8.4	Each of the undertakings set out in this clause is separate and severable and enforceable accordingly, and if any one or more of such undertakings or part of an undertaking is
held to be against the public interest or unlawful, the remaining undertakings or remaining part of the undertakings will continue in full force and effect and will bind the person to whom it relates. 

  

	9.	USE OF THE AZLAN NAME 

  

	9.1	Subject to the conditions set out in this clause 9, the Seller hereby grants to the Buyer and the Relevant Buyers for a period of 12 months after Completion the
non-exclusive, non-assignable right to use the Azlan Name in any geographic areas in which the Business was carried on in the period of 12 months ended on the Completion Date solely in connection with the Buyer’s succession of the
Business. 

  

	9.2	It is understood between the parties that during the 12 month period referred to in clause 9.1 above the Buyer will and will procure that the Relevant Buyers will phase out
its use of the Azlan Name in favour of using its own name and logo. 

  

	9.3	The Buyer will and will procure that the Relevant Buyers will only use the Azlan Name in connection with the Business as set out in this clause. The Buyer and/or the Relevant
Buyers may during, but not following the expiry of, the above 12 month period: 

  

	 	9.3.1	where the Azlan Name has prior to Completion been applied and/or displayed in connection with the Business, continue to display and use the Azlan Name in precisely the same
manner; 

  

	 	9.3.2	use existing stocks of printed training materials; and 

  

	 	9.3.3	use the Azlan Name on advertising and marketing materials. 

  

	9.4	The Buyer will not and will procure that the Relevant Buyers will not apply and/or use the Azlan Name in relation to its business other than the Business. 

 

	9.5	The Buyer will not and will procure that the Relevant Buyers will not use or refer to the Azlan Name in any way which would tend to allow it to become generic, lose its
distinctiveness, or become liable to mislead the public, nor use or refer to the Azlan Name in any way which is detrimental to or inconsistent with the good name, goodwill, reputation and image of the Seller and the Relevant
Sellers.

  

					
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	9.6	The Buyer will not and will procure that the Relevant Buyers will not at any time adopt or use or attempt to register any name, logo, trade mark, symbol or device which incorporates
or is confusingly similar to, or is a simulation or colourable imitation of the Azlan Name or takes advantage of or is detrimental to the distinctive character or repute of the Azlan Name. 

  

	9.7	The Buyer acknowledges that the Azlan Name is and will remain the property of the Seller or the Relevant Sellers, and the Buyer shall not acquire any right, title or interest in the
Azlan Name except the rights of use as are specifically set out in this Agreement and agree that the goodwill attaching to the Azlan Name as a result of the Buyer’s or the Relevant Buyers’ use of them, and all use of the Azlan Name shall
enure for the Seller’s benefit. 

  

	9.8	The Buyer hereby indemnifies the Seller against all Liabilities suffered or incurred by the Seller or the Relevant Sellers as a result of the Buyer’s or any Relevant
Buyer’s use of the Azlan Name otherwise than in accordance with this Agreement. 

  

	9.9	The Seller hereby indemnifies the Buyer in respect of any claims against the Buyer or any Relevant Buyer by any third party claimants to be entitled to exercise rights in respect of
the Azlan Name for any unauthorised use by the Buyer or any Relevant Buyer of the Azlan Name. 

  

	9.10	The Buyer will and will procure that the Relevant Buyers will promptly notify the Seller if it becomes aware of any unauthorised use of the Azlan Name and the Buyer will and will
procure that the Relevant Buyers will assist the Seller as the Seller may reasonably require to protect the Azlan Name. 

  

	9.11	If the Buyer is in breach of any of its obligations under this clause 9 and such breach is not remediable or, to the extent that it is remediable, it is not remedied to the
reasonable satisfaction of the Seller within 15 days of notice to remedy the Seller may terminate absolutely and with immediate effect by notice in writing to the Buyer all of the Buyer’s rights under this clause. Otherwise, the Buyer’s
rights under this clause shall terminate on the expiry of the twelve month period referred to in clause 9.1. 

  

	9.12	Upon any termination under clause 9.11, the Buyer shall and shall procure that the Relevant Buyers shall immediately cease to use the Azlan Name and shall immediately remove
or obliterate in a permanent manner all visible manifestations of the Azlan Name and, upon request from the Seller, shall certify thereto in the form of a declaration by a director of the Buyer. 

  

					
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	10.	BUYER’S ASSURANCES 

  

	10.1	The Buyer warrants to the Seller that it and each Relevant Buyer has full power to enter into and perform this Agreement and the relevant Local Agreement (as the case may be) and
that this Agreement and the relevant Local Agreement (as the case may be) constitutes a binding obligation on the Buyer and each Relevant Buyer in accordance with its terms and, without prejudice to the generality of the foregoing, the Buyer further
warrants and represents that all authorisations, approvals, consents and licences required by the Buyer and/or the Relevant Buyers to permit the Buyer to enter into this Agreement or any Relevant Buyer to enter into the Local Agreement and the
arrangements contemplated in those agreements have been unconditionally and irrevocably obtained and are in full force and effect. 

  

	10.2	The Buyer warrants to the Seller that there are no circumstances within the actual knowledge of the Buyer, any Relevant Buyer or its officers or employees at the date of this
Agreement which will or might entitle the Buyer to make a claim against the Seller under this Agreement. 

  

	11.	RECORDS AND ACCESS 

  

	11.1	Without prejudice to any other provision of this Agreement, the Buyer and its agents will be entitled for a period of 2 years from Completion on giving reasonable notice to the
Seller to have access during normal business hours to take copies of any books, documents or other records (including computer records) in the Seller’s possession relating primarily and substantially to the Business or the Business Assets and
which have not been delivered to the Buyer. 

  

	11.2	The Seller and its agents will, where necessary for the completion of its accounts or tax returns or for dealing with any claims or disputes relating to the use of the Business
Assets or the carrying on of the Business up to the Transfer Date, be entitled for a period of six years from Completion on giving reasonable notice to the Buyer to have access during normal business hours and to take copies of any of the Records
which were delivered to the Buyer pursuant to this Agreement and the Buyer shall retain the Records for such period of 6 years. 

  

	11.3	For a period of 2 years from Completion and in the event of the Buyer needing to produce financial information to support a public offering on any internationally recognised stock
exchange, the Seller shall give due consideration to any reasonable 

  

					
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	  	request made by the Buyer for the Seller to offer assistance and provide documentation to the Buyer and its agents, where it is still in the Seller’s possession and relates
primarily and substantially to the Business or the Business Assets and which have not been delivered to the Buyer, and the Buyer shall reimburse the Seller for reasonable third party expenses incurred in this regard. For the avoidance of doubt such
information will be provided without responsibility on the part of the Seller, any Relevant Seller or any of their respective employees, consultants, advisers or agents and specifically without any representations or warranties as to its accuracy or
completeness. 

  

	12.	FUTURE ENQUIRIES AND ASSISTANCE 

  

	  	The Seller will after Completion refer enquiries received by it relating primarily and substantially to the Business to the Buyer including enquiries for orders for anything
manufactured or sold in connection with the Business. 

  

	13.	ANNOUNCEMENTS 

  

	13.1	No announcement or circular concerning the terms of the transactions contemplated by this Agreement and no disclosure of the terms of this Agreement will be made by the Seller
except with the prior written approval of the Buyer or by the Buyer except with the prior written approval of the Seller. 

  

	13.2	Clause 13.1 does not apply to any announcement, circular or disclosure required by law, or to the extent relevant, the regulations of any stock exchange or listing authority
or any other governmental or regulatory organisation or any action taken to enforce this Agreement, provided, if practicable, in each case, that the party required to make it has first consulted and taken into account the reasonable requirements of
the other party. 

  

	14.	COSTS 

  

	  	Except where expressly stated otherwise, each party to this Agreement will bear such party’s own costs and expenses relating to the negotiation, preparation and implementation
of this Agreement. 

  

	15.	NOTICES 

  

	15.1	Any notice or other communication given in connection with this Agreement will be in writing and will be delivered personally or sent by pre-paid first class post (or air mail if
overseas) or by fax to the recipient’s address set out in this Agreement or to any other address which the recipient has notified in writing to the sender received not less than seven Business Days before the notice was despatched.

  

					
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	15.2	A notice or other communication is deemed given: 

  

	 	15.2.1	if delivered personally, upon delivery at the address provided for in this clause; or 

  

	 	15.2.2	if sent by prepaid first class post, on the second Business Day after posting it; or 

  

	 	15.2.3	if sent by air mail, on the sixth Business Day after posting it; or 

  

	 	15.2.4	if sent by fax, on completion of its transmission 

  

	  	provided that, if it is delivered personally or sent by fax on a day which is not a Business Day or after 4 p.m. on a Business Day, it will instead be deemed to have been given or
made on the next Business Day. 

  

	15.3	The provisions of this clause will not apply, in the case of service of court documents, to the extent that such provisions are inconsistent with the Civil Procedure Rules.

  

	16.	ASSIGNMENT 

  

	16.1	None of the parties may assign, transfer, charge or deal in any other manner with this Agreement or any of its rights under this Agreement nor sub-contract any or all of its
obligations under this Agreement, nor purport to do any of the same without the prior written consent (such not to be unreasonably withheld) of the other parties. 

  

	16.2	This Agreement will be binding and enure for the benefit of successors in title and permitted assigns of each of the parties and references to the parties will be construed
accordingly. 

  

	17.	ENTIRE AGREEMENT 

  

	17.1	This Agreement and the documents referred to in it constitutes the entire agreement between the parties and supersedes and replaces any previous agreement, understanding,
undertaking, representation, warranty or arrangement of any nature whatsoever between the parties relating to the subject matter of this Agreement. 

  

	17.2	The Buyer acknowledges and agrees for itself and each Relevant Buyer that in entering into this Agreement, and the documents referred to in it, it has not relied on,

  

					
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	  	and will have no remedy in equity, contract, tort, under the Misrepresentation Act 1967 or otherwise in respect of, any representation other than as set out in this Agreement and
each document referred to in it. 

  

	17.3	Subject to clause 17.4, the only remedy available to the Buyer in respect of this Agreement and the documents referred to in it is damages for breach of contract and, for the
avoidance of doubt, it will not have the right to rescind or terminate this Agreement for breach of contract, negligent or innocent misrepresentation or otherwise. 

  

	17.4	The Buyer shall have the right to rescind this Agreement in the event of any fraudulent misrepresentation by the Buyer to the Seller where such fraudulent misrepresentation has a
material impact on the Business. 

  

	17.5	Nothing in this clause will have the effect of limiting or restricting any liability of the parties arising as a result of any fraud. 

  

	18.	GENERAL 

  

	18.1	Unless otherwise provided, any outstanding obligation contained in this Agreement will remain in force notwithstanding Completion. 

  

	18.2	Each Party will (at the other party’s cost) do, or procure the doing of, all acts and things and execute, or procure the execution of, all documents as the other Party
reasonably considers necessary to give full effect to the terms of this Agreement and the Local Agreements. 

  

	18.3	Failure or delay by any Party in exercising any right or remedy under this Agreement will not in any circumstances operate as a waiver of it, nor will any single or partial exercise
of any right or remedy in any circumstances preclude any other or further exercise of it or the exercise of any other right or remedy. 

  

	18.4	Any waiver of any breach of, or any default under, any of the terms of this Agreement will not be deemed a waiver of any subsequent breach or default and will in no way affect the
other terms of this Agreement. 

  

	18.5	The Parties to this Agreement do not intend that any of its terms will be enforceable by virtue of the Contracts (Rights of Third Parties) Act 1999 by any person not a party to it.

  

	18.6	No variation of this Agreement will be valid unless it is in writing and signed by or on behalf of each Party to this Agreement. 

  

					
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	18.7	Save as expressly provided in this Agreement all rights or remedies provided by law are excluded. 

  

	18.8	The Parties will perform the obligations set out in Schedule 10. 

  

	18.9	If any sum payable under this Agreement is not paid when due then, without prejudice to either party’s rights under this Agreement, that sum will bear interest at
2 per cent per annum over the base rate for the time being of HSBC Bank plc, such interest accruing on a daily basis until payment is made in full, whether before or after any judgement. 

  

	19.	GUARANTOR OBLIGATIONS 

  

	19.1	In consideration of the Seller entering into this Agreement the Guarantor irrevocably and unconditionally: 

  

	 	19.1.1	guarantees to the Seller the due and punctual payment, observance and performance by the Buyer of all of the Buyer’s liabilities and obligations, whether present or future,
express or implied, actual or contingent, under; 

  

	 	(i)	clause 4.1.2 (Additional Consideration); and 

  

	 	(ii)	clause 7.2 (Buyer’s indemnities) to the extent only that the same relates to Assumed Liabilities in respect of the Property (the “Lease Obligations”);
and 

  

	 	19.1.2	undertakes that, if the Buyer fails to pay in full and on time any amount due under or in connection with clause 4.1.2 and/or the Lease Obligations, the Guarantor will
immediately on demand pay that amount as if it were the principal obligor; and 

  

	 	19.1.3	agrees to indemnify the Seller on demand against each loss, liability and cost which the Seller incurs as a result of: 

  

			
	 19.1.3.1
	  	the Buyer’s failure to perform in full and on time its obligations under or arising out of clause 4.1.2 and/or the Lease Obligations; or
		
	 19.1.3.2
	  	any of the obligations (or purported obligations) of the Buyer under clause 4.1.2 and/or the Lease Obligations being or becoming void, voidable or unenforceable.

  

					
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	19.2	Neither the liability of the Guarantor under this clause nor the rights, powers and remedies conferred on the Seller under this clause or by law will in any way be released,
prejudiced, diminished or affected by any of the following: 

  

	 	19.2.1	time or other indulgence being granted to the Buyer in respect of its obligations under clause 4.1.2 and/or the Lease Obligations; 

  

	 	19.2.2	any amendment to, or any variation, waiver or release of, any obligation of the Buyer under clause 4.1.2 and/or the Lease Obligations; 

  

	 	19.2.3	any invalidity, illegality, unenforceability, irregularity or frustration in any respect of any of the liabilities or obligations referred to in clause 19.1.1; and

  

	 	19.2.4	any other act, omission event or circumstances which, but for this provision, might operate to prejudice, affect or otherwise affect the liability of the Guarantor under this clause
or any of the rights, powers or remedies conferred upon the Seller under this clause or by law. 

  

	  	Each obligation of the Guarantor under clause 19.1 is independent of each other obligation under that clause. 

  

	20.	GOVERNING LAW AND ARBITRATION 

  

	20.1	The formation, existence, construction, performance, validity and all aspects whatsoever of this Agreement or of any term of this Agreement and any dispute, controversy or claim
arising out of or in connection with its subject matter will be governed by and construed in accordance with the law of England and Wales. 

  

	20.2	Any dispute, controversy or claim arising out of or in relation to this Agreement, or in breach, termination or invalidity thereof, will be referred to and finally settled by
arbitration under the London Court of International Arbitration Rules. 

  

	20.3	The number of arbitrators will be three. 

  

	20.4	The place of arbitration will be London and the language to be used in the arbitral proceedings will be English. 

  

	20.5	If any arbitration proceedings are considered under this Agreement or any Local Agreement where such proceedings would raise issues which are substantially the same as, or connected
with, issues raised in an arbitration proceeding under this Agreement or any Local Agreement which has already been commenced or arise out 

  

					
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	  	of substantially the same facts as are the subject of an arbitration proceeding under this Agreement or any Local Agreement which has already been commenced, the Parties shall use
their best endeavours to ensure that the matters at issue shall be heard together by the same arbitral tribunal and that, if appropriate, the Buyer, Relevant Buyer, Seller and/or Relevant Seller or Relevant Buyer (as the case may be) be joined to
any such proceeding. 

  

	20.6	The Parties hereby waive irrevocably: 

  

	 	20.6.1	any right of appeal under the Arbitration Act 1996 in relation to any award made by the arbitration tribunal appointed in accordance with this clause; and 

 

	 	20.6.2	any right to apply to the High Court under the Arbitration Act 1996 for the determination of any question of law arising in the course of any reference to arbitration under this
clause. 

  

	21.	COUNTERPARTS 

  

	  	This Agreement may be executed in any number of counterparts each of which when executed and delivered will be an original, but all the counterparts will together constitute one and
the same agreement. 

  

					
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 SCHEDULE 1 
 Relevant Sellers and Relevant Buyers 
  

					
	 (1)
 Relevant Seller
	 	 (2)
 Relevant Buyer
	 	 (3)
 Jurisdiction

	Tech Data BVBA	 	Global Knowledge Belgium B.V.B.A	 	Belgium
			
	Tech Data Denmark ApS	 	Global Knowledge Denmark ApS	 	Denmark
			
	Azlan SAS	 	Global Knowledge Network France S.A.	 	France
			
	Tech Data GmbH & Co. OHG	 	Global Knowledge Germany Training GmbH	 	Germany
			
	Tech Data Italia S.r.l.	 	Global Knowledge Network Italia S.r.l.	 	Italy
			
	Tech Data Nederland B.V.	 	Global Knowledge Network Netherlands B.V.	 	Netherlands
			
	Azlan Norge A/S	 	Global Knowledge Norway AS	 	Norway
			
	Tech Data Espana SLU	 	Global Knowledge Network Spain S.L.	 	Spain
			
	Azlan Scandinavia AB	 	Global Knowledge Network Sweden AB	 	Sweden
			
	 Azlan Logistics Ltd and
 Computer 2000 Distribution
Ltd*
	 	Global Knowledge Network Training Ltd.	 	UK

	*	Note: Azlan Logistics Limited and Computer 2000 Distribution Limited are to be regarded jointly as a Relevant Seller for all purposes except Schedule 7 (Completion Accounts) when
they shall be treated as separate Relevant Sellers with separate Completion Accounts attributable to each of them. 

  

					
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 SCHEDULE 2 
 Purchase Price Allocation 
 [REDACTED] 
  

					
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 SCHEDULE 3 
 The Excluded Assets 
 The following assets are excluded from the sale and purchase: 
  

	1.	cash-in-hand held as at the Transfer Date and cash at bank (whether on current or deposit account) relating to the Business including uncleared cheques received at the Transfer
Date, together with all Customer Cash; 

  

	2.	any sums due as at the Transfer Date to the Seller and/or Relevant Sellers in respect of Taxation including, without limitation VAT; 

  

	3.	the Business Name; 

  

	4.	the Retained Accounting Systems; and 

  

	5	the Retained Property. 

  

					
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 SCHEDULE 4 
 Warranties 
  

	22.	Schedules 

  

	  	The information contained in Schedules 2 and 3 to each Local Agreement is true and accurate in all material respects. 

 SELLER 
  

	23.	Capacity etc 

  

	  	The Seller and each Relevant Seller have full power to enter into and perform this Agreement and each relevant Local Agreement (as the case may be) and this Agreement and the
relevant Local Agreement (as the case may be) constitutes a binding obligation on the Seller and each Relevant Seller in accordance with its terms and, without prejudice to the generality of the foregoing, all authorisations, approvals, consents and
licences required by the Seller and/or the Relevant Sellers to permit the Seller to enter into this Agreement or any Relevant Seller to enter into the Local Agreement and the arrangements contemplated in those agreements have been unconditionally
and irrevocably obtained and are in full force and effect. 

 ACCOUNTS 
  

	24.	The Accounts 

  

	24.1	The Accounts: 

  

	 	24.1.1	show a true and fair view of the assets, liabilities and state of affairs of each Relevant Seller as at the Accounting Date and of the profits (or losses) of each Relevant Seller
financial year ended on that date; 

  

	 	24.1.2	have been prepared and audited in accordance with the historical cost convention, with all applicable accounting standards in the relevant Jurisdiction then in force and (to
the extent that no accounting standard is applicable) with generally accepted accounting principles and practices of the United States then in force; and 

  

	 	24.1.3	have been prepared on bases and principles which are consistent with those used in the preparation of the audited statutory accounts of the Relevant Seller for the financial year
immediately preceding that which ended on the Accounting Date. 

  

					
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	24.2	Without prejudice to the generality of paragraph 3.1, the Accounts: 

  

	 	24.2.1	provide for all material liabilities whatsoever of each Relevant Seller in relation to the Business (other than contingent or potential liabilities which are not expected to
crystallise) and disclose all material contingent or potential liabilities of each Relevant Seller in relation to the Business which are not expected to crystallise and all material capital commitments of each Relevant Seller in relation to the
Business as at the Accounting Date; and 

  

	 	24.2.2	set forth all the assets of each Relevant Seller that are attributable to the Business as at the Accounting Date and the profits (or losses) of each Relevant Seller for the
financial year which ended on the Accounting Date. 

  

	25.	Management Accounts 

  

	  	The Management Accounts, copies of which are attached to the Disclosure Letter, have been prepared in good faith in accordance with generally accepted
accounting principles and practices in the relevant Jurisdiction then in force and on bases consistent with those used in the preparation of the Accounts and in all material respects fairly reflect the performance and the position of the
Business for the nine month period ended on and as at the Management Accounts Date. 

 CHANGES 
  

	26.	Since the Accounting Date, save in relation to the Azlan Integration: 

  

	26.1	the Business has been carried on in the ordinary and usual course and in the same manner (taking into account factors of seasonality) as in the 12 months preceding the Accounting
Date; 

  

	26.2	Since the Management Accounts Date, save in relation to Azlan Integration,: 

  

	 	26.2.1	the Relevant Sellers have not acquired, or agreed to acquire, in relation to the Business any single asset having a value in excess of $100,000 other than in the ordinary course of
its business; 

  

	 	26.2.2	the Relevant Sellers have not disposed of, or agreed to dispose of, any asset of the Business which has a value reflected in the Accounts in excess of $100,000 or which has been
acquired since the Accounting Date other than in the ordinary course of its business; 

  

					
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	 	26.2.3	there has been no material adverse change in the financial position of the Business or its operations. 

 RECORDS 
  

	27.	The Records: 

  

	27.1	are properly prepared and maintained and up to date and accurate in all material respects; and 

  

	27.2	are all exclusively owned by the Relevant Sellers and under their direct control. 

 ASSETS 
  

	28.	Unencumbered title; possession 

  

	28.1	Each material Business Asset to be sold by a Relevant Seller is legally and beneficially owned by the Relevant Seller free from any Encumbrance. 

  

	28.2	No Relevant Seller has agreed to acquire any Business Asset (being an asset with a value exceeding $50,000) on terms that the property in it will not pass until full payment is
made. 

  

	28.3	The Business Assets comprise all the assets that are necessary or desirable for the carrying on of the Business in the manner in which it is currently carried on.

  

	29.	Intellectual Property Rights and Know How 

  

	29.1	All Intellectual Property Rights and Know How used in the Business (save for Intellectual Property Rights and Know How licensed to the Seller under any Business Contract) are
legally and beneficially owned by the Relevant Seller. 

  

	29.2	There are and have been in the last six years no proceedings, actions or claims brought against any Relevant Seller in respect of the Business, and none are pending or threatened
impugning the title, validity or enforceability of any of the Business Intellectual Property or Business Know How (provided that this warranty is qualified to the extent of matters within the Seller’s knowledge in respect of the period prior to
the Relevant Seller’s ownership of the Business). 

  

					
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	29.3	So far as the Seller is aware, there is, and has been, no infringement of any of the Business Intellectual Property and none is pending or threatened. 

  

	29.4	So far as the Seller is aware, there are no circumstances which would render any current application for registration of the Business Intellectual Property unacceptable to the
relevant registry or other authority or which would prevent any such application from proceeding to grant and registration. 

  

	29.5	Details of all licences, sub-licences and other agreements whereby the Relevant Sellers are licensed or otherwise authorised to use the Intellectual Property Rights, or Know How of
a third party in connection with the Business which are material to the operation of the Business or whereby a Relevant Seller licenses or otherwise authorises a third party to use any of the Business Intellectual Property or Business Know How which
are material to the operation of the Relevant Business are attached to the Disclosure Letter. 

  

	30.	IT Systems 

  

	  	Details of all material Software used in the Business are so far as the Seller is aware set out in or attached to the Disclosure Letter. Copies of all material licences, escrow
agreements and development agreements in respect of such Software are so far as the Seller is aware attached to the Disclosure Letter. 

 PROPERTY 
  

	31.	Details of the Property 

  

	31.1	The particulars of the Property shown in each Local Agreement and true and accurate in all material respects. 

  

	31.2	The unexpired residue of the term granted by the Lease under which each Leasehold Property is held is vested in the Seller and/or each Relevant Seller and is valid and subsisting
against all persons, including any person in whom any superior estate or interest is vested. 

  

	31.3	In relation to each Lease, the landlord, and each lessee, tenant, licensee or occupier has observed and performed in all material respects all covenants, restrictions, stipulations
and other encumbrances and there has not been any express or implied waiver of or acquiescence to any breach of them. 

  

					
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	31.4	In relation to each Lease: 

  

	 	31.4.1	all principal rent and additional rent and all other sums payable by each lessee, tenant, licensee or occupier under each Lease (“Lease Sums”) have been paid as and
when they become due; and 

  

	 	31.4.2	no Lease Sums have been commuted, waived or paid in advance of the due date of payment. 

  

	31.5	No collateral assurances, undertakings or concessions have been made by any party to any Lease. 

  

	31.6	No premium or principal rent has been taken or accepted from or agreed with any tenant, lessee, occupier or licensee under any Lease beyond what is legally permitted.

  

	31.7	In this paragraph 10, “Lease” and “Leasehold Property” shall mean any Lease or Leasehold Property forming part of or relating to the Property.

 EMPLOYEES 
  

	32.	Remuneration and employees 

  

	32.1	The Employees comprise all the persons employed or engaged by the Relevant Sellers in relation to the Business at the date of this Agreement. 

  

	32.2	A schedule of all of the Employees is attached to the Disclosure Letter and the details therein are accurate and substantially complete and such schedule gives details of the
identity, job title, date of commencement of employment (or appointment to office), date of birth, years of continuous service, holiday entitlement, all contractual remuneration and benefits payable to each Employee. 

 

	32.3	Save as set out in the Completion Accounts, there are no amounts owing to any present or former officers, workers or employees of any Relevant Seller in relation to the Business and
none of them is entitled to accrued but unpaid holiday or accrued but untaken holiday leave in respect of the current or previous holiday year of the Business. 

  

	32.4	There are no Employees who have been absent from work due to sickness or maternity leave for more than three continuous months in the 12 month period ending on the date of this
Agreement. 

  

	32.5	No Relevant Seller has formally recognised a trade union or works council in relation to the Business or any part of it and the Relevant Seller is not a party to any agreement or
understanding with any trade union in relation to the Business or any part of it. 

  

					
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	32.6	No Relevant Seller is involved in any industrial action in connection with the Business. 

  

	32.7	There are no home working, part time, job share, flexitime or flexible working arrangements or early retirement schemes applicable to any of the Employees. 

 

	32.8	No Relevant Seller operates any short time working scheme or arrangement or any redundancy or redeployment scheme or arrangement in relation to the Business, whether formal or
informal, contractual or non-contractual, which provides for payments greater than those required by statute or for notice periods greater than those set out in contracts of employment or engagement. 

  

	32.9	No Relevant Seller uses the services of outworkers, agency or other self-employed persons, contracted labour or agents in the Business. 

  

	32.10	So far as the Seller is aware there is no person previously employed or engaged by any Relevant Seller who now has or may have statutory or contractual right to return to work or to
be reinstated or to be re-engaged by it in the Business. 

  

	32.11	No Relevant Seller has given or received notice to terminate the employment or engagement of any person employed or engaged in the Business and no person has ceased to be employed
or engaged in the Business in either case since the Management Accounts Date or where such notice has not yet expired. 

  

	33.	Pensions 

  

	33.1	Details of all pension schemes applicable to the Employees are set out in or are attached to the Disclosure Letter. 

  

	33.2	The Relevant Sellers have paid all pension contributions which they are obliged to pay to or on behalf of the Employees under the rules of the pension schemes.

 CONTRACTS 
  

	34.	Insurance 

  

	34.1	Particulars of the Seller’s insurances that relate to the Business or any part of it or to any of the Business Assets and of all claims made against those insurances in the
last two years are set out in or attached to the Disclosure Letter. 

  

					
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	34.2	All premiums due in relation to the insurance that relate to the Business or any part of it or to any of the Business Assets have been paid. 

  

	34.3	So far as the Seller is aware there are no circumstances which are likely to result in any insurance claim. 

  

	35.	Material contracts 

  

	35.1	None of the Material Business Contracts: 

  

	 	35.1.1	involves agency, distributorship, franchising, partnership, marketing rights, joint venture, shareholders’ or consortium arrangements; 

  

	 	35.1.2	involves hire purchase, conditional sale, credit sale, leasing, or hiring arrangements in excess of $100,000; 

  

	 	35.1.3	involves any capital expenditure in relation to the Business in excess of $100,000; 

  

	 	35.1.4	is incapable of complete performance in accordance with its terms within six months after the date on which it was entered into; 

  

	 	35.1.5	is a guarantee, indemnity, surety or form of comfort in respect of the obligations of a third party, under which any liability or contingent liability is outstanding; or

  

	 	35.1.6	is outside the ordinary course of Business. 

  

	35.2	No party to a Material Business Contract has given written notice to terminate or to repudiate a Material Business Contract. 

  

	35.3	No party to a Material Business Contract has given written notice that a Relevant Seller is in breach of the agreement. To the Seller’s knowledge no matter exists which might
give rise to such a breach. 

  

	35.4	The copies of the Material Business Contracts which are attached to the Disclosure Letter accurately represent the terms and conditions of those agreements under which the Business
currently operates, notwithstanding that certain of such documents (i) have not been executed or (ii) may be one of a number of multiple agreements entered into by the Relevant Buyers in connection with the Business which have materially
the same terms. (And, for the avoidance of doubt, the Buyer shall not be prejudiced in asserting any claim under the Warranties against the Seller as a result of its knowledge that certain of the Material Business Contracts attached to the
Disclosure Letter are not (i) executed agreements or (ii) may be one of multiple agreements having materially the same terms. 

  

					
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	36.	Other business matters 

  

	36.1	The Seller and the Relevant Seller does not carry on the Business under any names other than the Business Names. 

 COMPLIANCE, DISPUTES 
  

	37.	General legal compliance 

  

	37.1	So far as the Seller is aware, all material licences, consents, permits and authorities (public and private) which are necessary to enable the Business to be carried on effectively
in the places and in the manner in which the Business is now carried on have been obtained. 

  

	37.2	So far as the Seller is aware, the Business has been carried on in all material respects in accordance with all applicable legal and administrative requirements.

  

	37.3	So far as the Seller is aware, none of the Employees (during the course of his duties in relation to the Business) has committed or omitted to do any act or thing in contravention
of any law, order, regulation or the like in the applicable Jurisdiction or elsewhere. 

  

	37.4	So far as the Seller is aware, there is not pending, or in existence, any investigation or enquiry by, or on behalf of, any governmental or other regulatory body in respect of the
affairs of the Business. 

  

	37.5	So far as the Seller is aware, no agreement, transaction or arrangement carried on or proposed to be carried on in connection with the Business by any Relevant Seller is (or ought
to have been) registered under, infringes or falls within the scope of any competition, anti restrictive trade practice or consumer protection law or legislation in the applicable Jurisdiction or elsewhere or is or has been subject to any
investigation, request for information, notice or other communication by any court, governmental or regulatory authority. 

  

	38.	Litigation 

  

	38.1	Neither a Relevant Seller nor, so far as the Seller is aware, any person for whose acts a Relevant Seller may in respect of the Business be contractually or vicariously liable is
party to (whether as claimant, defendant or otherwise) any civil, criminal, tribunal, 

  

					
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	  	arbitration, administrative or other proceedings in respect of the Business or any of the Business Assets and, so far as the Seller is aware, no such proceedings are pending or
threatened. 

  

	38.2	There is no outstanding or unsatisfied judgment, decree, order, award or decision of a court, tribunal, arbitrator or governmental agency against a Relevant Seller in relation to
the Business and a Relevant Seller is party to any current undertaking or assurance given to a court, tribunal or any other person in connection with the determination or settlement of any claim or proceedings in relation to the Business which
remains outstanding. 

  

	39.	Insolvency 

  

	39.1	No order has been made, petition presented or resolution passed for the winding up of the Seller or any Relevant Seller. No administrative receiver, receiver or receiver and manager
has been appointed of the whole or any part of the property, assets or undertaking of the Seller or any Relevant Seller. 

  

	39.2	No distress, execution or similar process has been levied and remains undischarged in respect of any of the Business Assets. 

  

	39.3	The Seller has not stopped or suspended the payment of its debts or received a written demand pursuant to section 123(1)(a) Insolvency Act 1986 or equivalent applicable
legislation and the Seller is not insolvent or unable to pay its debts within the meaning of section 123 Insolvency Act 1986 or equivalent applicable legislation. 

  

	39.4	No administrator (or similar offices under the laws of any other relevant jurisdiction) has been appointed in respect of the Seller or any Relevant Seller and no steps or actions
have been taken in connection with the appointment of an administrator in respect of the Seller or any Relevant Seller. 

  

	39.5	No voluntary arrangement has been proposed or approved under Part 1 Insolvency Act 1986 or equivalent applicable legislation and no compromise or arrangement has been proposed,
agreed to or sanctioned under section 425 CA 1985 or similar process in any other Jurisdiction has been proposed, agreed to or sanctioned in respect of any Seller or any Relevant Seller. 

  

	40.	Regulatory 

  

	40.1	In the last three years, neither the Seller nor any Relevant Seller has received any notice or information alleging any liability in relation to any environmental or health and
safety matters. To the Seller’s knowledge there are no circumstances which would be likely to give rise to such liability. 

  

					
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 SCHEDULE 5 
 Limitations on the Seller’s Liability 
  

	1.	The provisions of this Schedule will apply notwithstanding any provisions to the contrary in this Agreement. 

  

	2.	Financial limitations 

  

	2.1	The aggregate liability of the Seller in respect of all claims under this Agreement will not exceed the USD $16.5 million (sixteen million five hundred thousand United States’
dollars). 

  

	2.2	The Seller will not be liable for any Relevant Claim unless the amount of the liability in respect of that Relevant Claim exceeds $30,000 (when aggregated with any and all other
Relevant Claims arising out of the same circumstances or set of circumstances). 

  

	2.3	The Seller will not be liable for any Relevant Claim unless and until the amount of the liability in respect of that Relevant Claim, when aggregated with the amount of the liability
in respect of all other Relevant Claims (excluding any amounts in respect of a Relevant Claim for which the Seller has no liability because of paragraph 2.2), exceeds $200,000 in which event the Seller would be liable for the whole
amount of any such claims. 

  

	3.	Time limitation 

  

	3.1	The Seller will not be liable for any Relevant Claim unless: 

  

	 	3.1.1	within a period of fifteen months after the date of this Agreement the Seller receives written notice of such Relevant Claim from the Buyer specifying in reasonable detail (to the
extent such information is available at the time of the claim) the matter which gives rise to the claim, the nature of the claim and the amount claimed in respect of such claim; and 

  

	 	3.1.2	provided the Relevant Claim has not otherwise been satisfied, settled or withdrawn, proceedings in respect of the Relevant Claim are issued and served on the Seller within a period
of six months from the later of the date of; (i) notification of the Relevant Claim or; (ii) where it takes action against any other person under clause 7.1 the date when it has taken all appropriate steps. 

 

					
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	4.	Specific limitations 

  

	  	The Seller will have no liability in respect of any Relevant Claim: 

  

	4.1	to the extent that it arises or is increased as a result of the passing of, or a change in, any law, rule, regulation, interpretation of the law or administrative practice of a
government, government department, agency or regulatory body; 

  

	4.2	if it would not have arisen but for any act, omission, transaction or arrangement carried out at the request of or with the consent of the Buyer before Completion;

  

	4.3	if it would not have arisen but for any voluntary act, omission, transaction or arrangement carried out after Completion by the Buyer or any of the Buyer’s respective
directors, employees or agents or successors in title; 

  

	4.4	to the extent that it relates to any loss for which the Buyer has a right of recovery whether by contribution or indemnity by insurance or would have been entitled to recover if
valid and adequate insurance: 

  

	 	4.4.1	had been maintained at the relevant time; and 

  

	 	4.4.2	was of a type as in force in relation to the Business at the date of this Agreement or normally effected by prudent companies carrying on a business similar to that of the Business;
or 

  

	4.5	to the extent that the subject matter of the Relevant Claim is a matter provided for, or included as a liability or disclosed, in the Management Accounts. 

 

	4.6	to the extent that it is an Assumed Liability (in the amount set out in the Completion Accounts). 

  

	5.	Recovery from third parties 

  

	5.1	If the Buyer is entitled to recover from some other person any sum in respect of any matter or event which could give rise to a Relevant Claim, the Buyer will take all appropriate
steps to recover that sum before making such Relevant Claim, and any sum recovered will reduce the amount of such Relevant Claim after deduction of all reasonable costs and expenses of recovery. 

  

	5.2	If the Seller pays the Buyer a sum to settle or discharge a Relevant Claim and the Buyer subsequently recovers whether by payment, discount, credit, relief or otherwise from any
third party (including any tax authority) a sum which is referable to the Relevant Claim then: 

  

	 	5.2.1	either the Buyer will repay the Seller immediately the amount recovered from the third party less any reasonable costs and expenses incurred in recovering the same; or

  

					
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	 	5.2.2	if the figure resulting under paragraph 5.2.1 above is greater than the amount paid by the Seller to settle or discharge the relevant Claim, then the Buyer is only
obliged to repay to the Seller such amount as is equivalent to the sum paid by the Seller in settlement or discharge of that Relevant Claim. 

  

	6.	No double recovery 

  

	  	The Buyer is not entitled to recover damages or otherwise obtain payment, reimbursement or restitution more than once in respect of the same loss or liability.

  

	7.	Contingent Liabilities 

  

	  	Without prejudice to paragraph 3, if any potential Relevant Claim arises as a result of a contingent or unquantifiable liability of the Business, the Seller will not be
obliged to pay any sum in respect of the potential Relevant Claim until the liability either ceases to be contingent or becomes quantifiable. 

  

	8.	Conduct of Relevant Claims 

  

	 	8.1	If the Buyer becomes aware of a third party claim which will or is likely to give rise to a Relevant Claim, the Buyer will (or will procure that the relevant Group Member will):

  

	 	8.1.1	immediately notify the Seller in writing of the potential Relevant Claim and of the matters which will or are likely to give rise to such Relevant Claim; 

 

	 	8.1.2	not make any admission of liability, agreement or compromise with any person, body or authority in relation to the potential Relevant Claim without prior written consent of the
Seller; 

  

	 	8.1.3	at all times disclose in writing to the Seller all information and documents relating to the potential Relevant Claim or the matters which will or are likely to give rise to the
potential Relevant Claim; 

  

	 	8.1.4	if requested by the Seller give the Seller and its professional advisers reasonable access to: 

  

	 	8.1.4.1	the personnel of the Buyer in order to interview the personnel; and 

  

					
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	 	8.1.4.2	any relevant premises, chattels, accounts, documents and records within the power, possession or control of the Buyer in order to, at the Seller’s own expense, examine and
photograph the premises and chattels and to examine, photograph and take copies of the accounts, documents and records; 

  

	 	8.1.5	take such action as the Seller may reasonably request to avoid, resist, contest, defend, compromise or remedy the potential Relevant Claim or the matters which will or are likely to
give rise to such Relevant Claim and in each case on the basis that the Seller will indemnify the Buyer for all reasonable costs incurred as a result of a request by the Seller; and 

  

	 	8.1.6	in connection with any actions or proceedings relating to the matter or Relevant Claim, and subject to the Buyer being indemnified for all reasonable costs incurred, use advisers
nominated by the Seller and, if the Seller requests, allow the Seller the exclusive conduct of such actions or proceedings. 

  

	8.2	In any event, the Seller will be entitled at any stage and at its sole discretion to settle any third party assessment or claim provided that the Seller notifies the Buyer and that
any settlement is for monetary damages only. 

  

	9.	Mitigation 

  

	  	Nothing in this Schedule 5 will in any way restrict or limit the Buyer’s common law duty to mitigate its loss. 

  

	10.	Buyer’s knowledge of Relevant Claims 

  

	  	The Seller will have no liability in respect of any Relevant Claim to the extent that the circumstances are, at the date of this Agreement, within the actual knowledge of the
employees or officers of the Buyer who conducted due diligence in relation to the purchase of the Business and could reasonably be expected to result in a Relevant Claim. 

  

	11.	No Limitations for Fraud 

  

	  	Nothing in this Schedule 5 will have the effect of limiting or restricting any liability of the Seller in respect of a Relevant Claim arising as a result of any fraud or
wilful misconduct or omission by or on behalf of the Seller. 

  

					
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	12.	Payment of Relevant Claim to be reduction in consideration 

  

	  	Any payment made by the Seller in respect of any Relevant Claim will be deemed to be a reduction in the Consideration payable in accordance with clause 4 of this
Agreement. 

  

					
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 SCHEDULE 6 
 Azlan Name 
  

					
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 SCHEDULE 7 
 Part I - Completion Accounts 
  

	1.	Completion Accounts 

  

	1.1	The Seller and the Buyer will procure that after Completion, proforma accounts for each Relevant Seller so far only as relate to the Business will be prepared in accordance with the
provisions of this Schedule and in the format set out in Part II of this Schedule. 

  

	1.2	The Completion Accounts will consist of a balance sheet of each Relevant Seller as at the close of business on the Transfer Date. 

  

	1.3	The Completion Accounts will adopt the accounting bases, principles, policies, treatments and categorisations applied for the purposes of the Management Accounts.

  

	2.	Procedure 

  

	2.1	Within 20 Business Days after the date of Completion the Seller will procure that there are prepared and delivered to the Buyer a final draft of the Completion Accounts for each
Relevant Seller. 

  

	2.2	The Buyer will review the draft Completion Accounts as delivered by the Seller under this Schedule, such review to be completed within 15 Business Days of such delivery. The Buyer
will notify the Seller by one written notice within such period whether or not it accepts them as complying with paragraph 1 of this Schedule. The Seller will ensure that the Buyer is given access as soon as reasonably practicable to all
additional information it may reasonably require to enable the Buyer to makes its decision. If the Buyer does not so notify the Seller within 15 Business Days of delivery of the draft Completion Accounts then the Buyer will be deemed to have
accepted the draft Completion Accounts as complying with paragraph 1. 

  

	2.3	If the Buyer notifies the Seller of any objection pursuant to paragraph 2.2 then: 

  

	 	2.3.1	the Buyer will set out in reasonable detail its reasons for such non-acceptance and specify the adjustments (including for the avoidance of doubt, the quantum of the same) that in
its opinion should be made to the draft Completion Accounts in order to specify with paragraph 1 and provide supporting evidence for each such adjustment; 

  

					
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	 	2.3.2	the Buyer will provide the Seller with access to all such documents and working papers relating to their preparation of the reasons for non-acceptance and proposed adjustments to
the Completion Accounts referred to in paragraph 2.3.1; and 

  

	 	2.3.3	the Buyer and the Seller will use all reasonable endeavours to reach agreement upon the adjustment needed to make the objections of the Buyer. 

  

	2.4	Once the Buyer has notified the Seller of any objection(s) in accordance with paragraph 2.3.1 the Buyer shall not be entitled to raise any new or additional objections and to
the extent that the Buyer has not objected, the Buyer shall be deemed to have accepted the remainder of the Completion Accounts. 

  

	2.5	If the Buyer and the Seller do not reach agreement within 20 Business Days after service of the Buyer’s notice of non-acceptance under paragraph 2.2 then any party may
refer the matter(s) in dispute to an independent firm of chartered accountants of international standing agreed by the parties. If the parties are unable to agree on the appointment of an independent firm of chartered accountants after a further 20
Business Days, an independent firm of chartered accountants will be appointed on application of either party by the President or other senior officer for the time being of the Institute of Chartered Accountants in England and Wales (the
“Expert”). 

  

	2.6	The Expert will act on the following basis: 

  

	 	2.6.1	the Expert will act as an expert and not as an arbitrator; 

  

	 	2.6.2	the Expert’s terms of reference will be to determine the remaining matters in dispute between the parties; 

  

	 	2.6.3	the parties will each provide the Expert with all information relating to the matter which the Expert reasonably requires and the Expert will be entitled (to the extent he considers
appropriate) to base his determination on such information and on the accounting and other records of the Company; 

  

	 	2.6.4	the decision of the Expert is, in the absence of fraud or manifest error, final and binding on the parties; 

  

	 	2.6.5	the parties will each pay one half of the Expert’s costs or as the Expert may determine; 

  

					
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	 	2.6.6	except to the extent that the parties agree otherwise or otherwise as set out in this paragraph 2.6, the Expert will determine its own procedure and will determine only:

  

	 	2.6.6.1	whether any of the arguments for the adjustments to be made to the draft Completion Accounts put forward in the Buyer’s non-acceptance notice are correct in whole or in part;
and 

  

	 	2.6.6.2	if so, what alterations should be made to the Completion Accounts in order to correct the relevant inaccuracy in them; 

  

	 	2.6.7	the Expert will apply the accounting principles as set out in paragraph 1.3; 

  

	 	2.6.8	the procedure of the Expert will: 

  

	 	2.6.8.1	give the parties a reasonable opportunity to make written representations to it; and 

  

	 	2.6.8.2	require that each party supply the other with a copy of any written representations at the same times they are made to the Expert; 

  

	 	2.6.9	determination of the Expert will be in writing and made available for collection by each of the parties at the offices of the Expert at such time as it will determine.

  

	2.7	If the Buyer and the Seller reach agreement on (or pursuant to paragraph 2.3 the Buyer is deemed to have accepted) the Completion Accounts, or if the Completion Accounts are
finally determined at any stage in the procedure set out in this paragraph 2, the Completion Accounts as so agreed or determined will be the Completion Accounts for the purposes of this Agreement and shall be final and binding on the Seller
and the Buyer and the liabilities stated or provided for in the Completion Accounts shall be Assumed Liabilities referred to in paragraph (i) of the definition of Assumed Liabilities in clause 1. 

  

	2.8	The Buyer and the Seller will pay their own costs and expenses in connection with the preparation and agreement of the Completion Accounts including, where applicable, any costs
associated with presentation of their case to the Independent Accountant. 

  

					
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	2.9	For the avoidance of doubt where the Buyer is required pursuant to this paragraph to provide notice in writing to the Seller, such notice must be signed by or on behalf of each of
the Buyers in order to constitute valid notice upon the Seller. 

  

					
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 Part II - Pro forma Balance Sheet as at the Transfer Date 
  

					
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 SCHEDULE 8 
 Material Contracts 
 [REDACTED] 
  

					
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 SCHEDULE 9 
 IT Systems 
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 SCHEDULE 10 
 Transitional Arrangements 
  

	1.	Master Services Agreement 

  

	1.1	The Buyer and the Seller have agreed to enter into the master service agreement in respect of IT services (“MSA”), the agreed form of which is attached as
Appendix A to this Schedule 10. 

  

	1.2	Subject to paragraph 2 and paragraph 3 below, the MSA sets out all of the rights and obligations of each party in connection with the transitional services that are to
be provided by the Seller to the Buyer pursuant to this Agreement. 

  

	2.	Remittance Services 

  

	2.1	The Seller shall procure that each Relevant Seller shall charge the Relevant Buyer for payments made by the Relevant Seller that are properly due from, and payable by, the Relevant
Buyer and the Buyer shall procure that each Relevant Buyer shall pay such charges in accordance with, and in the manner, specified in the Relevant Seller’s normal terms of business. The Relevant Seller shall only be permitted to make such
payments for the benefit of, or on behalf of, the Relevant Buyer to satisfy obligations, which have been mutually agreed upon in advance by the parties. 

  

	2.2	The Seller will procure that any purchase invoices relating to the period after the Transfer Date which have been received in error, and not settled in accordance with paragraph
2.1 above by the Relevant Seller, will be passed through to the Relevant Buyer by the Relevant Seller on a timely basis. 

  

	3.	Credit Management and Cash Collection Services 

  

	3.1	The Seller shall procure that the Relevant Sellers shall provide such credit management and cash collection services (“CMCC Services”) to the Relevant Buyers, in
connection with Trade Accounts Receivable that have been transferred to the Relevant Buyers, in such countries as are agreed between the parties from time to time. 

  

	3.2	These CMCC Services shall be provided for an agreed fee to be calculated on the basis of actual costs incurred by the Relevant Seller, on the Relevant Seller’s usual terms of
business and for such duration as the parties agree. 

  

					
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	3.3	The Seller will procure that any amounts collected by the Relevant Seller subsequent to the Transfer Date on: a) Trade Accounts Receivable purchased by the Relevant Buyer; or b)
Trade Accounts Receivable created in respect of goods or services supplied by the Relevant Buyer subsequent to the Transfer Date (account payments received in error) will be transferred to the Relevant Buyer by the Relevant Seller on a weekly basis.

  

	4.	Access to Data Centre 

  

	4.1	During the provision of the transitional services provided pursuant to this Agreement the Buyer shall ensure that the Seller has full access to the data centre at [REDACTED]. Where
access poses a risk to the Buyer’s security, such access shall either be supervised or monitored using CCTV. 

  

	5.	Miscellaneous 

  

	5.1	In the event of any inconsistency between the provision of this Schedule 10 and this Agreement then the provisions of this Schedule 10 shall prevail.

  

					
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 APPENDIX A 
 Master Service Agreement between Tech Data Europe GmbH and Global Knowledge 
 Network Netherlands
B.V. 
 1.1 Approvals 
 The table below shows the
representatives from Tech Data, the Business and Global Knowledge that review and approve this agreement. 
  

					
	 Ownership Type
	 	 Organizational Group
	 	 Representative

	[REDACTED]	 	[REDACTED]	 	[REDACTED]

 2.0 Background 
 On [10] March 2006 (the “Transfer Date”), Global Knowledge Network Netherlands B.V. completed the purchase of the acquired business division from Tech Data Europe GmbH.. 
 The acquired business referred to in this agreement is the entire Azlan training business carried on by the Tech Data group under the Azlan name at the Transfer Date
(the “Business”). 
 The Business software, hardware infrastructure, telephony & data communication is hosted by Tech Data. It is
acknowledged that Tech Data is not effectively able to separate certain operations and infrastructure related to the Business from its other operating assets and Global Knowledge is not able to integrate the Business into its infrastructure by the
Transfer Date without ceasing the operations of the Business. 
 In the absence of an existing service level agreement between the Business and Tech Data,
this agreement is intended to define the support that Global Knowledge requires to keep the Business at its current level of functionality until the Business has been fully migrated to Global Knowledge. 
 2.1 Period of Agreement 
 Commence on
the Transfer Date 24:00 and will remain in effect for a period of six months. 
 The option to extend requires to written consent of both parties 2 months in
advance of the expiry date. 
 2.2 Termination of the agreement 
 Termination will occur either at the end of the six month period or when the approving parties agree that the Business has been separated and integrated into Global Knowledge, whichever is the earlier. 
  

					
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 No single party has the right to terminate this agreement independent of the other before the 6 month period expires.

 2.3 Statement of Intent 
 The intention of this
agreement is to outline the process for all application and technical support related issues. This document will specify the roles and responsibilities of all users in resolving issues and the estimated time frames in which actions should be
completed. 
 2.4 Principal Contacts 
 The following will be the principal contacts to operate this Agreement: 
  

			
	Global Knowledge	 	[REDACTED]
	Tech Data	 	[REDACTED]
	The Business	 	[REDACTED]

 3.0 Tech Data agrees to maintain current levels of support for the following services:- 
 3.1 User Account Management 
 [REDACTED] 
 3.2 Network Connectivity 
 [REDACTED] 
 3.3 Telephony 
 [REDACTED] 
 3.4 Network &
Fileserver Security 
 [REDACTED] 
 3.5 Building and room access. 
 Continue to provide to existing Business employees any existing building, room & access rights.
Where access poses a risk to Tech Data security e.g. Computer Rooms, access will either be provided under supervision or monitored using CCTV. 
 3.6
Applications 
 TD will ensure availability of the following applications to the Business users:- 
 [REDACTED] 
 All other application support activities will be managed by the Business. 
  

					
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	 	55	 	

 3.7 Software Maintenance & Licence Fees. 
 For shared infrastructure; 
  

	 	•	 	Software maintenance fees are kept up to date. 

  

	 	•	 	Software licence fees are paid where necessary. 

 For equipment
transferred to GKN software licenses & maintenance activities will be managed by Global Knowledge. 
 3.8 Transition Activity Support

  

	 	•	 	Assist in trouble shooting for 30 days after transition of servers/applications. 

  

	 	•	 	Provide users data files (including email-files) in the condition they were left on Tech Data servers. 

  

	 	•	 	Assist in moving desktops to new domain when required 

  

	 	•	 	Assist in moving servers to new domain when required. 

  

	 	•	 	Assist in completing all work necessary to separate the infrastructure from Tech Data to Global Knowledge. 

  

	 	•	 	Meet on regular basis with Global Knowledge employees to assist in planning & realisation of the transition. 

  

	 	•	 	Provide to Global Knowledge employees access to buildings, rooms & equipment necessary to transition equipment and locations to Global Knowledge. 

 

	 	•	 	Tech Data will accompany any Global Knowledge or the Business employees when working on TD site/equipment. 

 4.0 Authorities 
 Tech data will
manage the above subject to the following authorisations:- 
 [REDACTED]
                                [REDACTED] 
 5.0 Registering Support Requests 
 Tech Data will register the Business/Global Knowledge transition requests on its in-house helpdesk software. 
 5.1 Reporting 
 Tech Data will provide a report on the level of service provided upon request. This will show logged, closed & unclosed service requests to the date of request.

 6.0 Locations Support 
 The Business employees at the
following locations will contact their existing local Tech Data IT Support staff when an issue arises. 
  

			
	 Location
	 	 Address

	[REDACTED]	 	[REDACTED]

  

					
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 7.0 Priority Definitions 
 [REDACTED] 
 7.1 Response Times

 [REDACTED] 
 7.2
Service Availability 
 Tech Data IS function will provide telephone and on-site support for central services provided out of the Wokingham office as
follows:- 
 [REDACTED] 
 8.0
Escalation 
 If agreed response times are exceeded, problems will be escalated to the next level of management within Tech Data IS function. If a problem
has been escalated two levels then Craig Partington will be notified. 
 8.1 Dispute Resolution 
 Problems that have escalated to point of dispute, the principle contacts will address the issue and seek resolution. If the principle contacts are not able to resolve the
problem then the dispute will escalate to the CIO’s Global Knowledge & Tech Data VP EMEA IT. 
 To the extent that any dispute is not resolved
pursuant to the above paragraph, clause 20 of the master agreement entered into by the parties on the Transfer Date relating to the sale of the Business shall apply. 
 9.0 Obligations of the two parties to perform the separation 
 This section describes
what tasks and timelines both parties agree to perform the separation. 
 9.1 GKN 
 [REDACTED] 
 9.2 TD 
 [REDACTED] 
  

					
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 10.0 Confidential Disclosure 
  

	1.	In connection with the business relationship between the parties under this agreement, either party (the “Recipient”) may acquire confidential information
(“Confidential Information”) concerning the other party and its group companies. Confidential Information may include information concerning past, present or future research, development, technology, products (including software),
services, customers, procurement requirements, marketing initiatives, specifications, test data, business forecasts and financial data. 

  

	2.	Except as set out below, the Recipient shall receive Confidential Information in confidence and keep it confidential. In particular: 

  

	 	(a)	The Recipient shall not disclose Confidential Information to any third party and shall use its best efforts to prevent any such disclosure; and 

  

	 	(b)	The Recipient shall not circulate Confidential Information within its own organisation except to those employees who need to know such information in connection with the business
relationship between the parties under this agreement. 

  

	3.	The Recipient shall have no obligations in respect of any Confidential Information which is already in the public domain, or which is already in the Recipient’s possession free
of any obligation of confidence, at the time of receipt by the Recipient. 

  

	4.	The Recipient’s obligations in respect of any Confidential Information shall cease if: 

  

	 	(a)	it enters the public domain through no fault of the Recipient, or is communicated to the Recipient free of any obligation of confidence; or 

  

	 	(b)	it is developed by the Recipient independently of, and without reference to, any Confidential Information; and 

  

	 	(c)	in any event, three (3) years after receipt by the Recipient. 

  

	5.	All materials including (but not limited to) documents, designs, specifications, data and lists furnished to the Recipient by the other party or any of its group companies shall
remain the property of that other party or group company and shall be returned, together with all copies, promptly upon request. 

  

	6.	The Recipient warrants that all communications from the Recipient to the other party or any of its group companies shall be without any obligation of confidence, unless otherwise
agreed in writing. 

  

	7.	The Recipient shall not publicize this agreement or any connected matter, including (but not limited to) any business relationship between the parties, without the prior written
consent of the other party. 

 11.0 Security Considerations 
 [REDACTED] 
 12.0 Approval

 [REDACTED] 
  

					
	 CONFIDENTIAL TREATMENT
 REQUESTED
	 	58Supply Agreement, dated March 28, 2006

 Exhibit 10.1 
 CONFIDENTIAL TREATMENT - Asterisked material has been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 
 SUPPLY AGREEMENT 
 THIS STRATEGIC
SUPPLY AGREEMENT (the “Agreement”) is effective as of March 28, 2006 (the “Effective Date”) by and between Delta Electronics, Inc., an R.O.C. corporation having its principal place of business at
186 Ruey Kuang Road, Neihu Taipei 11491 Taiwan, R.O.C. (hereafter referred to as “DEI”), PECO II, Inc., an Ohio corporation having its principal place of business at 1376 State Highway 598, Galion, Ohio 44833 (hereafter referred to as
“PECO”) and DEI Logistics (USA) Corporation, a California corporation having its principal place of business at 4405 Cushing Parkway, Fremont, California 94538 (hereinafter referred to as “DEI Logistics”), with respect to
Section 19.14 hereof only, for the purpose of defining the rights and duties of the parties in connection with the distribution by PECO of certain DEI products. 
 WHEREAS, DEI and PECO entered into an OEM/ODM Partnership Agreement dated April 8, 2004 and DEI Logistics and PECO entered into a Consignment Agreement dated April 7, 2004 (the
“Prior Agreements”); 
 WHEREAS, DEI Logistics is an indirect subsidiary of DEI; and 
 WHEREAS, each of DEI, PECO and DEI Logistics desire to terminate and supersede the Prior Agreement(s) to which it is a party,
except as reflected in Section 19.14 hereof. 
 NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 
 1.
EXHIBITS AND DEFINITIONS. 
 1.1 Exhibits. The following Exhibits are incorporated
into and made a part of this Agreement. These Exhibits may be modified or adjusted as provided for in this Agreement. 
 1.1.1
Exhibit A – Products 
 1.1.2 Exhibit B – Pricing 
 1.1.3 Exhibit C – DEI Branding Guidelines 
 1.1.4 Exhibit D – Reserved Entities 
 1.1.5 Exhibit E – Minimum Order Requirements

 1.1.6 Exhibit F – Supply Records 
 1.2 Definitions. As used in this Agreement, the terms defined below shall have the following meanings: 
 1.2.1 “Affiliate” means any entity which directly or indirectly controls, or is under common control with, or is controlled by, such party. As used in this definition,
“control” (and its correlative meanings, “controlled by” and “under common control with”) shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether
through beneficial ownership of securities or other ownership interests, by contract or otherwise). 
 1.2.2 “Business
Day” means a day that is not Saturday, Sunday or a statutory or civic holiday in the State of Ohio or any other day on which banking institutions are not required to be open in the State of Ohio. 
 1.2.3 “DEI Indemnitees” has the meaning set forth in Section 5.6. 
  

 1 

 1.2.4 “DEI System” means a System principally designed and manufactured
by DEI as supplied to PECO pursuant to this Agreement. 
 1.2.5 “DEI Technology” means (i) any and all
Technology with respect to, related to and/or derived from the Products, and (ii) any and all Technology developed solely by DEI. For clarification, a PECO System includes DEI Technology because it necessarily incorporates a Module. 

1.2.6 “Documentation” means the user manuals, reference manuals, guides or portions thereof, supplied by DEI to PECO
and which DEI may update from time to time. 
 1.2.7 “Exclusivity Period” has the meaning set forth in
Section 2.1.1. 
 1.2.8 “Intellectual Property Rights” means any or all of the following and all rights
in, arising out of, or associated therewith: (1) all United States and foreign patents and utility models and applications therefor and all reissues, divisions, re-examinations, renewals, extensions, provisionals, continuations and
continuations-in-part thereof, and equivalent or similar rights anywhere in the world in inventions and discoveries including without limitation, invention disclosures; (2) all trade secrets and other rights in know-how and confidential or
proprietary information; (3) all copyrights, copyrights registrations and applications therefor and all other rights corresponding thereto throughout the world; (4) all industrial designs and any registrations and applications therefor
throughout the world; (5) all rights in World Wide Web addresses and domain names and applications and registrations therefor; (6) all rights in trade names, trade dress, logos, common law trademarks and service marks, trademark and
service mark registrations and applications therefor and all goodwill associated therewith throughout the world; and (7) any similar corresponding or equivalent foreign rights to any of the foregoing anywhere in the world, including moral
rights. 
 1.2.9 “Logistics Inventory” means the units of Products delivered to and stored at the Logistics
Warehouse hereunder. 
 1.2.10 “Logistics Warehouse” means the warehouse operated by PECO to receive, store
and deliver Products. 
 1.2.11 “Modules” means DEI’s proprietary modules, including converters,
rectifiers and inverters, as set forth on Exhibit A. 
 1.2.12 “Order” means a written description of the
name and quantity of Products PECO desires to purchase that is sent to DEI pursuant to Section 3.2.1 hereof. 
 1.2.13
“PECO Customer” means any entity with a principal place of business in the United States and/or Canada, but excluding Reserved Entities. 
 1.2.14 “PECO System” means a System offered by PECO to PECO Customers that incorporates at least one (1) Module and may include the addition of other components purchased from DEI,
but exclusive of DEI System. 
 1.2.15 “Person” means any individual, corporation, partnership, firm,
association, joint venture, joint stock company, trust, unincorporated organization or other entity, including any governmental entity. 
 1.2.16 “Prices” means the prices for Products as set forth in Exhibit B or any amendment of Exhibit B as shall be agreed to, in writing, by DEI and PECO. 
 1.2.17 “Products” means the Modules and/or DEI Systems as listed in Exhibit A including any improvements, updates,
modifications, and derivatives thereof furnished to PECO by DEI during the Term of this Agreement, and any such other DEI products as DEI and PECO shall, from time 
  

 2 

 to time, agree, in writing, to add to Exhibit A. It is understood that the provision of any such improvements,
updates, modifications, and derivatives shall be at DEI’s sole discretion and may be subject to additional fees and/or additional terms and conditions. Notwithstanding the foregoing, in no event shall “Products” include any products,
components, or other assets that are acquired, received, attained, procured or otherwise obtained by DEI (or its affiliates, related companies, divisions, subsidiaries, predecessor and successor corporations, and assigns (hereafter, “DEI
Entities”)) in connection with a Transaction occurring during the term hereof. “Transaction,” as used in this provision above, means any transaction entered into by DEI or a DEI Entity, whereby DEI or such DEI Entity (i) acquires
any person (or related group of persons) whether by tender or exchange offer made directly to the stockholders, open market purchases or any other transaction or series of transactions, of fifty percent (50%) (or the such lesser percentage as
is permitted in those jurisdictions where the maximum percentage permitted by law is lower than 50%) or more of the capital stock entitled to elect the members of the board of directors or other analogous governing body of such entity,
(ii) enters into a merger, reverse merger or consolidation with any person (or related group of persons); or (iii) otherwise acquires through asset sale or otherwise all or any portion of the business or assets of any other person.

 1.2.18 “Reserved Entities” means those entities (including affiliates, successors and assigns thereof)
listed on Exhibit D, as updated by DEI from time to time with PECO’s consent which cannot be unreasonably withheld, delayed or conditioned. 
 1.2.19 “System” means a complete self-contained unit (cabinet), capable of providing a primary function and that incorporates one (1) or more subsystems or products. 
 1.2.20 “Technology” means any or all of the following: (1) works of authorship including, without limitation,
computer programs, algorithms, routines, source code and executable code, whether embodied in software or otherwise, and documentation provided for use therewith; (2) inventions (whether or not patentable) and improvements; (3) proprietary
and confidential information, including, without limitation, technical data and customer and supplier lists, trade secrets, know how and techniques; (4) databases, data compilations and collections; (5) processes, tools, devices, methods,
prototypes, schematics, bread boards, net lists, mask works, test methodologies and hardware development tools; and (6) all instantiations of the foregoing in any form and embodied in any media. 
 1.2.21 “Territory” means the United States and Canada. 
 2. RIGHTS. 
 2.1
Rights. 
 2.1.1 Subject to the terms of this Agreement, DEI grants PECO, and PECO accepts, a nontransferable right to
purchase and incorporate Modules into PECO Systems and to market, promote, sell and distribute the Modules, PECO Systems and/or the DEI Systems solely to PECO Customers only within the Territory. Modules may only be distributed in their unmodified
form, as originally received from DEI, or as modified by DEI (except that Modules may be incorporated into PECO Systems as set forth herein). PECO may modify the DEI Systems (exclusive of Modules) purchased hereunder to conform with the
specifications of PECO Customers. The rights granted in this Section 2.1.1 shall be exclusive to PECO for a period of twenty-four (24) months from the Effective Date (“Exclusivity Period”). In the event that DEI (i) acquires
(or is acquired by) a Restricted Third Party (defined below), (ii) is merged with a Restricted Third Party, or (iii) is a party to an asset transaction whereby DEI sells substantially all its assets relating to this Agreement, including
the assignment of this Agreement, to a Restricted Third Party, or, purchases assets from a Restricted Third Party that results in such assets being subject to this Agreement, such exclusivity shall continue to apply to the Products but 

 

 3 

 shall not apply to products or technology sold, owned or controlled by such Restricted Third Party (before or after the
transactions described in (i), (ii) and (iii) above), even if after such transactions, such products or technology is ultimately sold, owned or controlled by DEI or a third party. A “Restricted Third Party” is any party that is
subject to contractual restrictions precluding purchase of Products from PECO, or a party that is being requested by a customer not to purchase Products from PECO. 
 2.1.2 During the Exclusivity Period, PECO shall refer to DEI any inquiry for the purchase of Products or any other DEI products that PECO receives from any of the Reserved Entities. Nothing herein shall
prohibit or restrict PECO from soliciting or selling to a Reserved Entity any other services provided by PECO in the general conduct of its business; provided that, during the Exclusivity Period, PECO shall notify DEI in writing no later than two
(2) Business Days before it initiates contact with, or within two (2) Business Days after it has been contacted by, a Reserved Entity with respect to such services. 
 2.1.3 PECO shall use its best efforts to diligently market, promote, sell and distribute the Products to PECO Customers in the Territory in
accordance with this Agreement. PECO shall be solely responsible for all costs and expenses related to the advertising, marketing, promotion, sale and distribution of the Products. 
 2.1.4 PECO shall ensure that the Products are accurately represented to PECO Customers as to quality, function, purpose and compatibility.

 2.2 Proprietary Rights; No Modification. PECO shall not remove, alter, cover or obfuscate any copyright notices or other
proprietary rights notices placed on or embedded in the Products by DEI and all Products distributed by PECO shall contain the copyright and other proprietary notices in the same manner in which DEI incorporates such notices on or in the Products.
PECO agrees to take all reasonable steps to protect the Products and Documentation from unauthorized copy or use. Any source code in the Products represents and embodies trade secrets of DEI. Such source code and embodied trade secrets are not
licensed to PECO and any modification, addition, or deletion is strictly prohibited. PECO shall not, and shall not allow any Person to, modify, alter, reverse engineer, disassemble or decompile the Products or any portion thereof, and PECO shall use
commercially reasonable efforts to enforce such restrictions. 
 3. FORECASTS, ORDERING,
DELIVERY, AND ACCEPTANCE. 
 3.1 Forecasts. On or before the first day of each month
(“Forecast Date”) during the Term, PECO shall provide DEI with a non-binding six (6) month rolling Product specific purchase forecast for Orders for the Products. 
 3.2 Orders. 
 3.2.1 Any Order
by PECO shall be deemed a firm commitment to take the goods specified and shall be binding upon PECO. Orders must be received by DEI not less than sixty (60) days prior to the requested shipping date (“Leadtime”). Orders shall be sent
in writing by letter, email or fax, shall specify requested shipping dates and shall be subject to written acceptance by DEI. PECO may use its standard purchase order form or other document to order Products; however, the terms and conditions of
this Agreement shall supersede any different, conflicting, or additional terms on PECO’s order forms and all such terms are hereby specifically objected to and will be of no force or effect. All Orders must, at a minimum, include the Product
name/description, quantity (by Product), and the applicable price, as well as such other information as DEI may reasonably request from time to time. Further, PECO agrees that it shall not submit an Order for less than the number of units of Product
specified in Exhibit E without DEI’s prior written approval. DEI reserves the right to accept or reject Orders from PECO. Orders or changes to Orders will not be accepted over the telephone. 
  

 4 

 3.2.2 DEI will use reasonable efforts to process and ship all Orders in accordance with requested
delivery dates. DEI reserves the right to add, delete from, or modify, upon at least thirty (30) days advance notice to PECO, the design, model or specifications of the Products. DEI further shall notify PECO one hundred eighty (180) days
prior to a discontinuance of manufacture, sales or license of any product covered by this Agreement. DEI or its Affiliate shall be committed to, at PECO’s expense, supporting parts and technical assistance of discontinued Products ten
(10) years from the date any Product is discontinued, provided that the parts for such Products are available in the market. 
 3.3
Product Delivery and Title. All Products delivered pursuant to this Agreement will be packed for shipment to the Logistics Warehouse in DEI’s standard shipping cartons, marked for shipment, and delivered to PECO or its carrier agent F.C.A.
(Incoterms 2000) DEI’s designated facility, at which time and risk of loss shall pass to PECO, but not title, which shall pass to DEI Logistics. Title to the Products shall be deemed to remain with DEI Logistics unless and until (i) a
“sale” takes place or (ii) the Products become “mature” (title shall pass to PECO upon a Product’s “sale” or “maturity”). A “sale” will be deemed to take place when a unit of Product is
removed from the Logistics Inventory. A Product unit becomes “mature” when such Product unit has remained in the Logistics Inventory for sixty (60) days from date of its receipt into the Logistics Warehouse, or ninety (90) days
from date of the unit of Product being shipped from a DEI facility, whichever is sooner. Unless otherwise instructed in writing by PECO, DEI shall select the carrier. All freight, insurance and other shipping expenses, as well as any special packing
expense, shall be paid by PECO. PECO shall also bear all applicable taxes, duties and similar charges that may be assessed against the Products after delivery to the carrier at DEI’s facilities. Notwithstanding the passage of title under this
Section 3.3, DEI Logistics retains and PECO grants a purchase-money first-position security interest in each of the Products for the amount of the purchase price of the Products, and in any proceeds from PECO’s resale of the Products,
until the full invoice amount for such Product has been paid in full to DEI Logistics. Upon DEI Logistics’s request, PECO will sign any documentation reasonably required by DEI Logistics to perfect such security interest. In the event PECO
fails to promptly execute such documentation, PECO hereby appoints DEI Logistics its attorney-in-fact for the purpose of executing such documentation, coupled with an irrevocable interest. 
 3.4 Logistics Warehouse; Records and Insurance. PECO will be responsible for all operations of the Logistics Warehouse, including contracting for
the Logistics Warehouse and associated services, all receipts and deliveries, keeping accurate records of all Logistics Inventory and the safety of the Products in the Logistics Warehouse. PECO will pay all expenses relating to the Logistics
Warehouse. PECO will keep written records identifying Logistics Inventory as property of DEI Logistics unless and until a “sale” or “maturity” occurs. PECO will hold the Logistics Inventory at PECO’s own risk and will
replace such inventory if it becomes lost, damaged or destroyed. PECO will insure such Logistics Inventory against loss, theft, and damage under a policy naming DEI Logistics as an additional insured. 
 3.5 Inspection. PECO will perform inspection of Products purchased from DEI, depending on, but not limited to, Product complexity, Product
performance history, risk of nonconforming material, direct ship to stock status of DEI, each according to PECO quality procedures. DEI will be notified as soon as reasonably practicable, normally within three (3) Business Days of receipt (but
in any event no more than fifteen (15) Business Days (provided that, with respect to Logistics Inventory, such period shall commence on removal from inventory rather than upon receipt) of any nonconforming material found in any Products,
whether in receiving inspection or any point within the manufacturing process. If nonconforming material is identified in a Product, PECO will notify DEI in 
  

 5 

 writing regarding any Products that materially fail to meet DEI’s published Product specifications. Depending on
various factors, including but not limited to PECO Customer demand or complexity of repairs, PECO and DEI will jointly decide the best method to resolve the nonconformance which may include a return of the Products to DEI, repairs by PECO, or some
form of both. If PECO desires to return Products to DEI, PECO shall request from DEI a return material authorization (a “RMA”), either by e-mail, mail or telefax following a proper explanation of the rejection. Returns shall be performed
in accordance with DEI’s RMA procedure. Rejected goods should be returned freight prepaid to DEI within ten business days of rejection and receipt from DEI of a return authorization. As promptly as possible, but not later than sixty
(60) days after receipt by DEI of properly rejected Products, DEI shall, at its option and expense, either repair or replace such Products. The party shipping Products pursuant to this Section 3.5 shall bear the entire risk of loss for
Products during shipment. Any insurance proceeds payable in respect to any loss for any Products to the extent of any loss incurred during shipment shall be paid to the party bearing the risk of loss for such Products to the extent of the loss
incurred. DEI will prepay transportation charges back to PECO and shall reimburse PECO for any costs of transportation incurred by PECO in connection with the return to DEI of properly rejected Products. In the case of improperly rejected or
returned Products, PECO shall pay transportation charges in both directions. 
 4. PRICES AND
PAYMENT TERMS. 
 4.1 Prices. Prices for the Products are as stated in Exhibit B. Subject to the
provisions of this Section 4, prices shall be firm for a period of [*] following the Effective Date. Thereafter, DEI may change the prices, upon thirty (30) day written notification to PECO. Notwithstanding the foregoing, if DEI and PECO
mutually agree on specially modified pricing for the Products with respect to a PECO Customer and a specific project, such specially modified pricing shall supersede and replace the pricing for such Products and project as stated in Exhibit B with
respect solely to such PECO Customer and project and such specially modified pricing shall remain in effect for the full term of any agreement entered into by PECO and such PECO Customer with respect to such Products and project. 
 4.2 [*] 
 4.3 Payment Terms.
PECO will, at the beginning of each week, submit to DEI Logistics a request for invoice detailing the quantities and Orders to bill against with respect to the units of Products removed from the Logistics Inventory in the previous week. DEI
Logistics will reconcile the request for invoice with DEI Logistics’ own inventory record, and then submit an invoice matching the request for invoice and DEI Logistics’ own inventory record amounts for payments. In case of discrepancy
between PECO’s request for invoice and DEI Logistics’ own inventory record, DEI Logistics and PECO shall work diligently to resolve such discrepancy within three (3) Business Days. DEI Logistics may inspect the Logistics Inventory at
any time upon three (3) Business Days advance written notice to PECO. Subject to DEI’s continuing approval of PECO’s credit status and financial condition, all payments by PECO shall be made to DEI Logistics in U.S. dollars and will
be due five (5) Business Days from receipt of invoice. DEI, in its sole discretion, reserves the right to specify, and to change from time to time, PECO’s credit line and payment terms. Payment for Products purchased by PECO shall, at
DEI’s sole discretion, either be made: 
 4.3.1 by prepayment in the form of a wire transfer; 
 4.3.2 on credit terms DEI has approved in writing; or 
 4.3.3 such other terms as DEI shall designate in writing from time to time. 
  

	*	Portions have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  

 6 

 4.4 Credit Limits or Credit Term. Nothing herein shall obligate DEI to extend to PECO any credit
limits or credit term, and credit limit or credit term once authorized may be modified or canceled at any time solely at DEI’s option. 
 4.4.1 DEI may increase PECO’s credit limit or credit term based on PECO’s history of timely payments of amounts due, general financial strength and on PECO’s successfully meeting or exceeding its sales obligations.

 4.4.2 DEI may declare all sums immediately due and payable in the event of a breach by PECO of any of its material obligations to
DEI under this Agreement, including the failure of PECO to comply with credit terms. 
 4.4.3 Interest shall accrue upon any
delinquent payments owed by PECO as to which DEI has made a final written demand for payment, at the maximum rate allowed by London Interbank Offered Rate (LIBOR). In the event that it becomes necessary for DEI to institute litigation to collect
sums owed by PECO, PECO shall be responsible for reasonable attorney’s fees and other costs incurred by DEI in connection with such litigation, if DEI prevails therein. 
 4.5 Taxes. Prices do not include and are net of any foreign or domestic governmental taxes or charges of any kind that may be applicable to the
sale, licensing, marketing, or distribution of the Products, including without limitation excise, sales, use, property, license, value-added taxes, franchise, income, withholding or similar taxes, customs or other import duties or other taxes,
tariffs or duties other than taxes which are imposed by the United States based on the net income of DEI Logistics. Any such taxes which are otherwise imposed on payments to DEI Logistics shall be the sole responsibility of PECO. PECO shall provide
DEI Logistics with official receipts issued by the appropriate taxing authority or such other evidence as is reasonably requested by DEI Logistics to establish that such taxes have been paid. 
 5. OTHER OBLIGATIONS OF PECO. PECO’s obligations under this Agreement shall, without limitation,
include the following: 
 5.1 Services. PECO shall be solely responsible for order processing, customer service to PECO Customers and
inventory maintenance. 
 5.2 Marketing Reports. During the Exclusivity Period, PECO shall provide to DEI an ongoing report based upon
DEI’s calendar year summarizing their marketing activities. This information will include activity such as PECO Customers’ feedback on Product, PECO Customer/distributors suggestions for new products, support and operational issues between
DEI and PECO, competitive marketing intelligence, market share data, material changes at PECO’s company, analysis of sales to forecast, promotional activities completed and planned etc. 
 5.3 Training. DEI may from time to time conduct training programs. The reasonable costs for attending such training sessions provided by DEI, such
as travel and lodging, shall be PECO’s sole responsibility. 
 5.4 Compliance. PECO acknowledges that it is familiar with and
will comply with and be solely responsible for its obligations under all laws, rules and regulations related to distribution and/or sale of the Modules, DEI Systems and/or PECO Systems, as applicable. PECO shall keep a record of all written and oral
complaints concerning the Products. PECO shall promptly inform DEI of all suspected Product defects, safety problems or any information associated with the safety of the Product and shall promptly notify DEI in writing of any third party dispute
involving a Product. 
  

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 5.5 Product Returns. PECO shall promptly notify DEI of any Products returned to PECO by PECO
Customers. All Products returned by PECO Customers to PECO (whether for warranty or non-warranty action), if any, must be either repaired, returned to DEI (subject to DEI’s prior written approval and in accordance with DEI’s RMA
procedures) or destroyed, and PECO shall maintain adequate written procedures to ensure such repair, return or destruction. 
 5.6
Advertising and Promotion. During the Exclusivity Period, PECO shall advertise and promote the Products at PECO’s expense by appropriate means, including but not limited to, participating in relevant trade fairs, seminars, public
demonstrations of Products, prompt and effective responses to trade and customer inquiries, regular and continuing advertising programs, and regular visits to customers. PECO shall not make any express warranty on behalf of DEI with regard to the
Products other than as may be provided by DEI from time to time and as set forth in DEI’s product literature. Any other warranty made by PECO to its customers with respect to the Products shall not obligate DEI in any way and PECO shall
indemnify, defend and hold harmless DEI and any of its officers, directors, employees, agents, investors, shareholders, administrators, affiliates, related companies, divisions, subsidiaries, predecessor and successor corporations, and assigns
(“DEI Indemnitees”) from third party claims in accordance with Section 5.7 below. 
 5.7 Indemnity. At DEI’s
option and election, PECO shall indemnify, defend and hold the DEI Indemnitees harmless from and against any claims, suits, losses, damages, liabilities, costs and expenses (including reasonable attorney’s fees) incurred by DEI arising from or
relating to personal injury, death or property damage, arising out of or related to PECO’s modifications of DEI Systems; provided that DEI promptly notifies PECO in writing of any such claim and promptly tenders the control of the defense and
settlement of any such claim to PECO at PECO’s expense and with PECO’s choice of counsel. DEI shall cooperate with PECO, at PECO’s expense, in defending or settling such claim and DEI may join in defense with counsel of its choice at
its own expense. 
 5.8 Records and Reports. PECO shall maintain adequate written procedures for control, sale and distribution of
Products. Adequately detailed records of shipments to PECO Customers shall be maintained for at least two (2) years, or until the end of the useful life of the Products, whichever is longer and shall be made available to DEI or its
representative, upon reasonable request. Further, PECO will provide DEI with access to: (a) Product warranty or other claims related to defective Products; and (b) during the Exclusivity Period, sales by Product, customer and geographic
location. 
 5.9 Sales Activities. During the Exclusivity Period, PECO agrees to provide to DEI opportunities to participate in
PECO’s national or regional sales meetings, and shall permit DEI to participate in joint visits to PECO Customers. 
 6.
OTHER OBLIGATIONS OF DEI. DEI shall have the following obligations under this Agreement: 
 6.1 Marketing and Promotion. DEI shall provide PECO with electronic copies of sales aids, data sheets, product profiles, brochures, and other materials to assist PECO in the promotion and sales of Products. Additional
marketing materials will be made available to PECO in accordance with DEI’s then current policy regarding same. PECO may copy and/or translate some or all of such literature and advertising copy and incorporate such in its own product
literature. In the event that PECO elects to copy and/or translate materials provided by DEI, all materials provided by Distribution shall include all copyright, trademark and other proprietary legends included in the original material furnished by
DEI and DEI shall own all rights in such translations. 
  

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 6.2 Warranty and Technical Support. PECO will provide cleaning, refurbishing, reselling and repair
services for the Products in accordance with a Repair Services Agreement; the parties shall use commercially reasonable efforts to negotiate and enter into such Repair Services Agreement prior to the Closing of the transaction contemplated in that
certain Asset Purchase Agreement between the parties dated October 13, 2005. Subject to DEI or its Affiliate’s obligations pursuant to Section 3.2.2, DEI or its Affiliate will provide reasonable technical assistance and back-up
support to PECO in connection therewith as mutually agreed at DEI or its Affiliate’s standard rates. 
 6.3 Indemnity. At
PECO’s option and election, DEI shall indemnify, defend and hold the PECO Indemnitees harmless from and against any claims, suits, losses, damages, liabilities, costs and expenses (including reasonable attorney’s fees) incurred by PECO
arising from or relating to personal injury, death or property damage, arising out of or related to unmodified Modules and DEI Systems, as delivered by DEI; provided that PECO promptly notifies DEI in writing of any such claim and promptly tenders
the control of the defense and settlement of any such claim to DEI at DEI’s expense and with DEI’s choice of counsel. PECO shall cooperate with DEI, at DEI’s expense, in defending or settling such claim and PECO may join in defense
with counsel of its choice at its own expense. 
 6.4 Product Development. DEI will use reasonable commercial efforts to develop
Products in accordance with its Product roadmap and will consult in good faith with PECO regarding the Product roadmap. 
 6.5 Referrals
to PECO. During the Exclusivity Period, DEI shall promptly refer to PECO any inquiry DEI receives from any Person, other than a Reserved Entity, for the purchase of Products 
 6.6 Delegation of Obligations to Affiliates. Notwithstanding anything in this Agreement to the contrary, in the case of any delegation or
assignment of an obligation under this Agreement by DEI to an Affiliate, DEI will be liable for the non-performance of any such obligation by any such Affiliate. 
 7. TRADEMARKS. 
 7.1 Trademarks. During the term of this Agreement, PECO shall
have the right to indicate to the public that it is authorized to sell DEI’s products and to advertise the Products under the trademarks, marks, and trade names that DEI may adopt from time to time (“DEI’s Trademarks”). All
representations of DEI’s Trademarks that PECO intends to use shall be exact copies of those used by DEI or shall first be submitted to DEI for approval (which shall not be unreasonably withheld) of design, color and other details. In addition,
PECO shall fully comply with all reasonable guidelines, if any, communicated by DEI concerning the use of DEI’s Trademarks. All DEI Systems sold to PECO under this Agreement shall be resold only in the original packages, and shall not be
relabeled or otherwise marked, except as otherwise agreed by the parties, or to indicate PECO as the territorial source of the Product or as otherwise required by governmental regulations in force. All Products shall be labeled according to the
guidelines set forth in Exhibit C. PECO shall promptly report to DEI any unauthorized use, duplication, copying or reproduction whatsoever of DEI’s name, trade name, trademark, logo, patents, copyrights or any other identifying material by any
other person or entity whatsoever. 
 7.2 Trademark Restrictions. In no event may PECO use or authorize any use of any of DEI’s
Trademarks in any domain name whether registered, owned, or operated by or on behalf of DEI. Any violation of the foregoing shall be deemed a material breach of this Agreement that is incapable of cure, entitling DEI to terminate this Agreement
immediately upon notice to PECO. PECO shall not alter or remove any of DEI’s Trademarks affixed to the Products by DEI. Except as set forth in this Section 7, 
  

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 nothing contained in this Agreement shall grant or shall be deemed to grant to PECO any right, title or interest in or to
DEI’s Trademarks. PECO will not challenge or assist others to challenge DEI’s Trademarks (except to the extent such restriction is expressly prohibited by applicable law) or the registration thereof or attempt to register any trademarks,
marks or trade names confusingly similar to those of DEI. Upon termination of this Agreement, PECO shall immediately cease to use any and all of DEI’s Trademarks except to continue to sell the Product in its inventory if authorized hereunder.

 7.3 Registered User Agreements. DEI and PECO shall enter into registered user agreements with respect to DEI’s Trademarks
pursuant to applicable trademark law requirements in the Territory. PECO shall be responsible for proper filing of the registered user agreement with government authorities within the Territory and shall pay all costs or fees associated with such
filing. 
 8. JOINT ACTIVITIES. 
 8.1 Relationship Managers. Each party shall appoint a representative as a relationship manager who shall be the primary contact for implementing
and administering the terms and conditions of this Agreement (“Relationship Managers”). During the Exclusivity Period, the Relationship Managers shall meet at mutually agreeable times to review and coordinate efforts under this Agreement
and address other topics related to the successful distribution of the Products as set forth herein. 
 8.2 Joint Cooperation. During
the Exclusivity Period, the parties expect to engage in joint exploration and discussions (“Joint Cooperation”) with respect to System-level design and component-level design. Any such joint development projects shall be subject to a
separately negotiated written joint development agreement (“Joint Development Agreement”). 
 8.3 DEI Personnel. DEI shall
secund two (2) DEI employees (“Secunded Employees”) to PECO to aid in the Joint Cooperation during the Exclusivity Period (the “Joint Cooperation Services”). Said Secunded Employees’ job duties shall consist of
performing services for PECO as directed by PECO and PECO shall provide day-to-day direction to said Secunded Employees with respect to the Joint Cooperation Services. PECO shall, to the fullest extent permitted by applicable law, indemnify and hold
harmless the DEI Indemnitees from and against all taxes, losses, damages, liabilities, costs and expenses, including attorneys’ fees and other legal expenses (collectively “Losses”) claimed by said Secunded Employees or by a
third-party governmental entity as a result of any claims arising from or relating to, in any way, PECO’s work environment and/or its day-to-day direction of said Secunded Employees (including, but not limited to, compliance with any and all
health, safety and employment laws related thereto) during the Exclusivity Period. DEI shall, to the fullest extent permitted by applicable law, indemnify and hold harmless PECO and any of its officers, directors, employees, agents, investors,
shareholders, administrators, affiliates, divisions, related companies, subsidiaries, predecessor and successor corporations, and assigns (the “PECO Indemnitees”) from and against all Losses claimed by said Secunded Employees or by a
third-party governmental entity as a result of any claims arising from or relating to, in any way, the overall control and management of said Secunded Employees, including the compensation, evaluation, discipline and/or termination of said Secunded
Employees (including, but not limited to, compliance with any and all wage and hour laws related thereto) during the Exclusivity Period. 
 8.4 Adherence to Rules. Each party will ensure that all of its personnel and subcontractors working on the other party’s premises follow the host party’s guidelines, policies and instructions while on the host party’s
premises, including confidentiality and security procedures. 
  

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 9. IP OWNERSHIP. 
 9.1 Pre-Existing Technology. Each party shall retain sole ownership of its Technology independently developed prior to the Effective Date.

 9.2 Joint Technology. Unless otherwise agreed pursuant to a separate Joint Development Agreement entered into pursuant to
Section 8.2, all Technology (other than DEI Technology and Secunded Employee Technology) created jointly by employees or agents of DEI and employees or agents of PECO (“Joint Technology”) shall be owned jointly by DEI and PECO.
Subject to the foregoing, joint ownership will provide each party with an undivided interest in such Joint Technology with the power to license, enforce and otherwise exploit it without the consent of and without accounting to the other party, and
each party hereby waives any right it may have under the laws of any country to require such consent or accounting. The parties shall mutually agree on the terms and conditions related to the prosecution and maintenance of any patents, patent
applications, copyright registrations and other intellectual property protections related to the Joint Technology. 
 9.3 Secunded
Employee Technology. All Technology that is created solely by the Secunded Employees during the performance of tasks assigned to the Secunded Employees by PECO or that results from the Secunded Employees’ use of property, equipment, or
premises owned, leased or contracted for by PECO (“Secunded Employee Technology”) is subject to the following ownership provisions: 
 9.3.1 All Secunded Employee Technology relating to the Modules or the manufacture or use thereof (including all modifications, enhancements, extensions, and upgrades of and/or to Modules), and all Intellectual Property Rights therein
(collectively, “Module Technology”), shall be owned by DEI. Accordingly, PECO hereby agrees to assign (or cause to be assigned) and does hereby irrevocably assign fully to DEI all Module Technology and any and all Intellectual Property
Rights throughout the world therein or pertaining to the manufacture or use thereof. 
 9.3.2 PECO covenants to DEI that it will not
initiate any litigation against DEI, the DEI Indemnitees, or any of DEI’s or DEI Indemnitees’ customers or entities in their distribution channels (any of the foregoing, a “DEI Party”), asserting that a DEI Party is a direct or
contributory infringer of any patents or patent applications claiming inventions within the Secunded Employee Technology or the manufacture or use thereof. 
 9.3.3 Except as set forth in Section 9.3.1, PECO shall retain all of its right, title and interest in and to Secunded Employee Technology, including all Intellectual Property Rights therein. Accordingly,
DEI hereby agrees to assign (or cause to be assigned) and does hereby irrevocably assign fully to PECO all Secunded Employee Technology and any and all Intellectual Property Rights throughout the world therein (subject to Section 9.3.1).
Additionally, DEI shall execute and deliver, from time to time, such documents and perform such acts as may be necessary or convenient to effectuate and perfect the assignments contemplated herein, and will cooperate with and assist PECO in every
proper way (at the expense of PECO) in obtaining and from time to time enforcing such Intellectual Property Rights within the Secunded Employee Technology in any and all countries. 
 9.3.4 PECO shall execute and deliver, from time to time, such documents and perform such acts as may be necessary or convenient to effectuate and
perfect the assignments contemplated herein, and will cooperate with and assist DEI in every proper way (at the expense of DEI) in obtaining and from time to time enforcing Intellectual Property Rights within the Module Technology in any and all
countries. Notwithstanding anything to the contrary stated herein, during and after the term of this Agreement, each party shall have the right to use without liability or restriction the Residuals from the Secunded Employee Technology. The term
“Residuals” shall mean trade secret rights in information disclosed in nontangible form (i.e., not in written or other documentary form, including tape or disk) which is retained in memory by the Secunded Employees, including ideas,
concepts, know-how, or techniques contained therein. 
  

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 9.4 Reservation of Rights/Ownership. Except as expressly provided herein, all present and future
trademarks and trade names, logos, patents, copyrights, and other identifying material or Intellectual Property Rights of either party shall remain the exclusive property of such party and no rights to such trademarks, trade names, logos, patents,
copyrights and other identifying material or Intellectual Property Rights shall vest in the other party because of this Agreement. The Products are offered for sale and are sold by DEI subject in every case to the condition that such sale does not
convey any license, expressly or by implication, to manufacture, duplicate or otherwise copy or reproduce any of the Products. PECO shall take appropriate steps with its PECO Customers, as DEI may request, to inform them of and assure compliance
with the restrictions contained in this Section. 
 9.5 Non-Exclusive License. DEI hereby grants to PECO a nonexclusive, fully paid
up, royalty-free license, under DEI’s (and its Affiliates’) rights in the Supply Records (as defined in Exhibit F hereto), to use, reproduce, distribute, digitally transmit and display tangible manifestations of the Supply Records,
and to confidentially disclose tangible manifestations of the Supply Records, including the right to sub-license for use, solely in support of PECO’s performance of its rights and obligations hereunder. 
 10. WARRANTIES AND DISCLAIMERS. 
 10.1 General Warranty. Each party hereby represents and warrants to the other that (i) such party has the right, power and authority to enter
into this Agreement and to fully perform all of its obligations, including the granting of licenses, hereunder; (ii) entering into this Agreement does not violate any agreement or obligation existing between such party and any third party; and
(iii) such party has and will maintain with all of its employees written agreements sufficient to enable such party to perform its obligations hereunder with confidentiality terms at least as restrictive as those provided herein. 
 10.2 Product Warranty. DEI shall provide PECO with its standard one (1)-year warranty for the Products. PECO may repair Products pursuant
to the Repair Services Agreement contemplated in Section 6.2. Upon PECO’s request, on a PECO Customer-by-PECO Customer basis, DEI will negotiate in good faith with PECO to provide PECO with a warranty that is coterminous with the warranty
provided by PECO to such PECO Customer. 
 10.3 Notification and Remedy. With respect to any warranty, PECO will immediately notify
DEI in writing if it becomes aware, during the warranty period, that a Product fails to conform to the warranty. Upon its verification of any claim of defect or nonconformity of a unit of the Products during the Term, DEI will use commercially
reasonable efforts to either, at its option, (i) repair the Product or have PECO repair the Product, at a mutually agreed cost, or (ii) provide a replacement thereof to the extent necessary to honor DEI’s warranty. The foregoing
states DEI’s sole liability for any failure of the Products to conform to each warranty. 
 10.4 Recalls. If DEI decides
to recall, replace or take other action with respect to any Products, it will notify PECO by rapid means of communication and PECO shall immediately cease sales of any units of Product in its possession or control, which are subject to the action
until the course of action to be taken has been determined. The reasonable and justifiable costs of recovering Product in the field and its replacement in any action affecting a Product will be borne by DEI. 
 10.5 Disclaimer. DEI DOES NOT MAKE ANY WARRANTY TO PECO, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO PRODUCTS,
SPECIFICATIONS, SUPPORT, SERVICE OR ANY OTHER MATERIALS 
  

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 CONTEMPLATED HEREUNDER, AND DEI SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT, AND
FITNESS FOR A PARTICULAR PURPOSE. 
 11. LIMITATION OF LIABILITY.
NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, TO THE EXTENT ALLOWED BY LAW, THE LIABILITY OF DEI TO ANY PERSON WITH RESPECT TO THE PRODUCTS AND/OR THE RELATIONSHIP DESCRIBED IN THIS AGREEMENT, WHETHER BASED ON CONTRACT, INCLUDING BREACH OF
WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT THEORY, SHALL IN NO EVENT EXCEED THE AMOUNT OF MONEY PAID TO DEI PURSUANT TO THIS AGREEMENT PRIOR TO THE EVENT OR CIRCUMSTANCES GIVING RISE TO SUCH LIABILITY, AND IN THE CASE OF LIABILITY RELATING
TO ANY ALLEGEDLY DEFECTIVE OR INFRINGING UNIT OF PRODUCTS, SHALL, UNDER ANY LEGAL OR EQUITABLE THEORY, BE FURTHER LIMITED TO REPLACEMENT OF THE UNIT, OR IF IMPRACTICAL, RETURN OF THE PURCHASE PRICE PAID BY PECO FOR SUCH UNIT. DEI SHALL IN NO EVENT
BE LIABLE TO ANY PERSON FOR ANY LOST PROFITS, LOST DATA, COST OF PROCUREMENT OF SUBSTITUTE GOODS, OR FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, EVEN IF DEI HAS BEEN INFORMED OF THE POSSIBILITY THEREOF AND
NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY STATED HEREIN. THE PARTIES AGREE THAT THIS SECTION REPRESENTS A REASONABLE ALLOCATION OF RISK. 
 12. CONFIDENTIAL INFORMATION. 
 12.1 Confidential
Information. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing, the parties agree that the receiving party shall keep confidential and shall not publish or otherwise disclose or use for any purpose
other than as provided for in this Agreement any Confidential Information of the other party. “Confidential Information” means (i) information disclosed in tangible form that is marked “confidential” or with other
similar designation to indicate its confidential or proprietary nature, or (ii) information disclosed orally, where such information is either (A) of the type usually considered confidential or proprietary in the disclosing party’s
industry or (B) otherwise indicated to be confidential or proprietary by the disclosing party at the time of the initial disclosure thereof and confirmed in writing as confidential or proprietary by the disclosing party within thirty
(30) days after such disclosure. Subject to the provisions of Sections 8 and 9, the parties agree that the following shall be considered the “Confidential Information” of a disclosing party without the requirement that such
information be designated as in writing as “Confidential” or with some other similar designation by the disclosing party: knowledge and information that may be learned or obtained by a receiving party, its agents, servants or employees
with respect to the conduct and details of the disclosing party’s business, including but not limited to, product sales or other financial information, all aspects of the technology for manufacture of the Products, the processes, formulas,
machinery, equipment, utensils and arts of manufacture used by a party and its designs or methods of manufacture, as well as its trade secrets and customer lists. Notwithstanding the foregoing, Confidential Information shall not include information
that, in each case as demonstrated by written documentation: (i) was already or becomes lawfully known to the receiving party, other than under an obligation of confidentiality, at the time of disclosure; (ii) was generally available to
the public or otherwise part of the public domain at the time of its disclosure to the receiving party or became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission
of the receiving party in breach of this Agreement; or (iii) was developed by the receiving party without reference to any information or materials disclosed or provided by the disclosing party. 
  

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 12.2 Confidentiality of Agreement. PECO agrees that the terms and conditions of this
Agreement shall be treated as the Confidential Information of DEI; provided that PECO may disclose the terms and conditions of this Agreement: (i) to legal counsel; (ii) in confidence, and as necessary to its accountants, banks, and
financing sources and their advisors; (iii) in connection with evaluation of a potential merger of PECO, except where the party that would be merging with or acquiring PECO is a competitor of DEI; (iv) in confidence, and to legal counsel
in connection with the enforcement of this Agreement or rights under this Agreement, or (v) as advisable or required in connection with any government or regulatory filings, including without limitation filings with the Securities and Exchange
Commission and its counterparts in other jurisdictions. 
 12.3 Compelled Disclosure. Nothing in Section 12.1 or
Section 12.2 will prevent disclosure of either or both the terms and conditions of this Agreement or of the receiving party’s Confidential Information generally if, in the opinion of the receiving party’s legal counsel, such
disclosure is required to be made in a judicial, administrative or governmental proceeding pursuant to a subpoena, deposition, interrogatory, civil investigative demand or similar process or order. In that event, however, the receiving party shall
provide notice to the disclosing party (unless notice is prohibited by order, subpoena or law) before disclosing any of the Confidential Information. In making such disclosure, the receiving party may disclose only that portion of the Confidential
Information required to be disclosed and shall use reasonable efforts to obtain assurance that confidential treatment will be accorded the information. The receiving party is not, however, under any obligation to seek a protective order. 

 13. INSURANCE. To the extent that PECO is required to carry insurance with respect to agreements with PECO
Customers, then PECO shall provide comparable insurance to DEI, including naming DEI as an additional insured. 
 14. PECO
STATUS. For the purpose of carrying out this Agreement, PECO shall be and act as independent contractor and not as an agent or employee of DEI and shall not have the power to bind, and agrees not to attempt to bind, DEI to any
contract without prior written approval thereof from DEI. 
 15. ASSIGNMENT. PECO may not assign,
transfer, subdivide or otherwise deal with any obligations or benefit under this Agreement, through operation of law or otherwise, without the prior written consent of DEI. Any attempted assignment in violation of this Section shall be null and
void. 
 16. TERM AND TERMINATION. 
 16.1 Term. The term of this Agreement shall commence on the Effective Date and shall remain in effect for thirty (30) months thereafter,
subject to early termination pursuant to Sections 16.2 and 16.3 below (the “Term”). This Agreement may be renewed for an agreed upon term by mutual written agreement of the parties. 
 16.2 Termination for Change of Control. In the event that PECO undergoes a Change of Control, DEI may thereafter in its sole discretion terminate
this Agreement immediately upon written notice to PECO. The term “Change of Control” with respect to an entity means the occurrence of one or more of the following: (i) the acquisition by any person (or related group of
persons), whether by tender or exchange offer made directly to the stockholders, open market purchases or any other transaction or series of transactions, of more than fifty percent (50%) of the capital stock entitled to elect the members of
the board of directors or other analogous governing body of such entity; (ii) a merger or consolidation in which such entity is not the surviving entity, except for a transaction in which the securities of such entity immediately prior to
consummation of such merger or consolidation are converted by means of such merger or consolidation into securities representing more than fifty percent 
  

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 (50%) of the total combined voting power of the surviving entity; or (iii) any reverse merger in which such entity
is the surviving entity but in which the securities of such entity immediately prior to consummation of such reverse merger represent less than fifty percent (50%) of the total combined voting power of such entity’s capital stock
outstanding immediately after consummation of such merger. 
 16.3 Termination by Either Party. Either party may terminate this
Agreement prior to its expiration and upon thirty (30) days’ written notice if: (a) a party breaches any material term of this Agreement and the breaching party has not cured the breach within such thirty (30) day period;
(b) a party is the subject of a liquidation or insolvency, or the filing of bankruptcy, or similar proceeding(s) (provided that in the case of involuntary proceedings, such proceedings are not dismissed within sixty (60) days of filing);
or (c) the other party ceases to actively engage in business. 
 16.4 Effect of Termination. 
 16.4.1 If proper notice of termination is given for any reason, DEI shall be entitled to reject or cancel without liability all or part of any
previously accepted Orders received from PECO after such notice, but prior to the effective date of termination. Notwithstanding any credit terms made available to PECO prior to that time, any shipments during said period shall be paid for by wire
transfer prior to such shipment. Upon termination of this Agreement, the due date of all invoices for Product shall automatically be accelerated so that they shall become due and payable on the effective date of termination, even if longer terms
have been provided previously. 
 16.4.2 All rights and licenses of PECO hereunder shall automatically be terminated except that PECO
may continue only to sell, in accordance with normal business practice and the terms of this Agreement, Products previously shipped to it by DEI as set forth in Section 16.4.2 above. 
 16.4.3 Each party shall, within thirty (30) days of the effective date of termination, return to the other party all of the other
party’s Confidential Information then in a party’s possession, custody or control. 
 16.4.4 Upon the termination of this
Agreement in accordance with its terms, except for obligations incurred prior to the effective date of termination, neither party shall have any obligation to the other party, or to any employee, agent or representative of a party, for compensation
or for damages of any kind, whether on account of loss by a party, or by such employee agent or representative of present or prospective sales, investments, compensation or goodwill; provided, however, that nothing in this section shall relieve PECO
of any liability for willful misconduct, gross negligence, or breach of contract. Each party, for itself and on behalf of each of its employees, agents and representatives, hereby waives any rights which may be granted to it or them under the laws
and regulations of the Territory or otherwise which are not granted to it or them by this Agreement. Without limiting the generality of the foregoing, PECO understands and acknowledges that any contract or other arrangements it enters into with any
third parties with respect to Product will be subject and subordinate to the rights of termination set forth in this Agreement; provided, however, DEI’s obligation pursuant to Section 3.2.2 shall not be superseded or terminated by virtue
of the termination of this Agreement upon (i) this Agreement’s natural expiration or (ii) DEI’s material breach. PECO will indemnify and hold the DEI Indemnitees harmless from any and all liability, loss, damages, costs or
expenses incurred by DEI in connection with claims by any such third party made because of the termination of this Agreement. 
 16.5
Survival. Upon any termination or expiration of this Agreement the provisions of Sections 1, 2.2, 3.2.2 (subject to Section 16.4.4 above), 3.3, 3.4, 5.4, 5.7, 7.2, 9, 10.1, 10.2 (only with respect to the first and third sentences, and only
for so long as a warranty period extends beyond the Term (provided that the obligation to negotiate as set forth in the third sentence shall not survive)), 10.3 (only for so long as a warranty period extends beyond the Term), 10.4, 10.5, 11 –
14, 16.4, 16.5, 18 and 19, and all payment obligations incurred prior to the effective date of such termination or expiration (and all related payment provisions) shall survive. All other provisions of this Agreement shall terminate. 
  

 15 

 17. EVENTS BEYOND CONTROL. The
obligations of either party to perform under this Agreement shall be excused if such failure to perform or any delay is caused by matters such as acts of God, strikes, civil commotion, riots, war, revolution, acts of governments, lack of adequate
production capacity, failure or delay in plant start up, breakdown of machinery, shortage of raw materials, equipment, fuel, transportation, or containers, or any other cause whether similar or dissimilar to those enumerated that are reasonably
beyond the control of the party obligated to perform. Upon the occurrence of such an event, the duties and obligations of the parties shall be suspended for the duration of the event preventing proper performance under this Agreement; provided
however that if such suspension shall occur, the parties shall meet and attempt to arrive at a mutually acceptable compromise within the spirit and intent of this Agreement, and if such a reasonable compromise cannot be reached in good faith, then
either party may terminate this Agreement upon thirty (30) days written notice. 
 18. NOTICE. Notices shall be
sent by certified or registered mail to the address set forth in this Agreement, or to such other address as the receiving party shall have designated by notice in writing. Notices shall be effective on mailing. 
  

			
	Notice to be sent to:	  	Delta Electronics, Inc.
		  	 186 Ruey Kuang Road, Neihu

		  	 Taipei 11491

		  	 Taiwan, R.O.C.

		  	 Attention: Michael Tan, Manager, Corporate Legal Affairs

		  	 Fax: 886-2-8797-3241

		
		  	 With a copy to:

		
		  	 Wilson Sonsini Goodrich & Rosati

		  	 Professional Corporation

		  	 650 Page Mill Road

		  	 Palo Alto, CA 94304-105

		  	 Attention: Aaron J. Alter, Esq.

		  	 Fax: 650-493-6811

		
		  	DEI Logistics (USA) Corporation
		  	 4405 Cushing Parkway

		  	 Fremont, CA 94538

		  	 Attention: Yao C.H. Chou, President

		  	 Fax: 510-226-4101

  

 16 

			
		  	 With a copy to:

		
		  	 Wilson Sonsini Goodrich & Rosati

		  	 Professional Corporation

		  	 650 Page Mill Road

		  	 Palo Alto, CA 94304-105

		  	 Attention: Aaron J. Alter, Esq.

		  	 Fax: 650-493-6811

		
		  	PECO II Inc.
		  	 1376 State Route 598

		  	 Galion, Ohio 44833

		  	 Fax: 419-468-9164

		  	 Attention: President & CEO

		
		  	 With a copy to:

		
		  	 Porter Wright Morris & Arthur LLP

		  	 41 S. High Street

		  	 Columbus, Ohio 43215

		  	 Fax: 614-227-2100

		  	 Attention: Curtis A. Loveland

 19. MISCELLANEOUS. 
 19.1 Discussions. In the eighteenth (18th) month of the Term of this Agreement, the parties agree to negotiate in good faith, for a period not to exceed 30 days, a possible extension of the Term and/or the duration of the exclusivity of
the rights granted in Section 2.1.1, it being understood that neither party shall be obligated to modify or amend this Agreement. 
 19.2 Necessary Actions. Each party agrees to perform any further acts and execute and deliver any and all further documents and/or instruments which may be reasonably necessary to carry out the provisions of this Agreement and the
transactions contemplated hereby. 
 19.3 Waiver; Amendment. The failure of either party to enforce its rights under this
Agreement at any time for any period shall not be construed as a waiver of such rights. Further, no changes or modifications or waivers can be made to this Agreement unless evidenced in writing and signed for on behalf of both parties. 

19.4 Severability. If any provision of this Agreement shall be determined to be unenforceable, all other provisions shall remain in full
force and effect and the affected provision shall be construed so as to be enforceable to the maximum extent possible. 
 19.5 Governing
Law; Jurisdiction; Arbitration. 
 19.5.1 THIS AGREEMENT SHALL BE INTERPRETED AND CONTROLLED BY, CONSTRUED AND ENFORCED
ACCORDING TO THE LAWS OF THE STATE OF DELAWARE, U.S.A., EXCLUDING ITS CHOICE OF LAW PROVISIONS AND ALSO EXCLUDING THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS. 
  

 17 

 19.5.2 Exclusive Jurisdiction. With respect to any matter based upon or arising out
of this Agreement or the transactions contemplated hereby that seeks temporary or injunctive relief or specific performance, each of the parties (a) irrevocably consents to the exclusive jurisdiction and venue of the state courts of the State
of Delaware located in New Castle County, (b) agrees that process may be served upon them in any manner authorized by the laws of the State of Delaware for such persons, (c) waives the defense of an inconvenient forum and covenants not to
assert or plead any objection which they might otherwise have to such jurisdiction, venue and such process, and (d) agrees that a final judgment in such legal proceeding shall be final, binding and enforceable in any court of competent
jurisdiction. Each party agrees not to commence any legal proceedings subject to this Section 19.5.2 except in such courts. 
 19.5.3 Binding Arbitration. Each party irrevocably agrees and acknowledges that, subject only to Section 19.5.2 above, any claim, dispute, controversy or other matter based upon, arising out of or relating to
this Agreement or the transactions contemplated hereby, including (i) as to the existence, validity, enforceability or interpretation of any such claim, (ii) the performance, breach, waiver or termination of any provision in dispute,
(iii) any such claim in tort, or (iv) any such claim raising questions of law, in each case, whether arising before or after termination of this Agreement (each a “Disputed Claim”), shall be resolved, as between the
parties, exclusively and solely by binding arbitration in accordance with Section 19.5.4. 
 19.5.4 Any Disputed Claim
shall be resolved exclusively and solely by binding arbitration pursuant to the Commercial Arbitration Rules of the American Arbitration Association (the “Rules”) and in accordance with the following: (a) there shall be
three (3) arbitrators, one of whom shall be a member of the American College of Trial Lawyers (who shall chair the arbitration panel) and one of whom shall be a certified public accountant; (b) the arbitration shall take place in
Wilmington, Delaware, and in no other place; (c) the arbitration shall be conducted in accordance with the procedural laws of the U.S. Federal Arbitration Act, to the extent not inconsistent with the Rules or this Section 19.5.4;
(d) subject to legal privileges, each party shall be entitled to conduct discovery in accordance with the Federal Rules of Civil Procedure; (e) at the arbitration hearing, each party shall be permitted to make written and oral
presentations to the arbitration panel, to present testimony and written evidence and to examine witnesses; (f) the arbitration panel shall have the power to grant temporary or permanent injunctive relief and to order specific performance;
(g) the arbitration panel shall have the power to order either party to pay, or to allocate between the parties, the fees and expenses of the arbitrators and of the American Arbitration Association and to order either party to pay all or a
portion of the other party’s attorneys’ fees and expenses incurred in connection with a Disputed Claim and the arbitration; and (h) the arbitration panel shall issue a written decision explaining the bases for the final ruling, and
such decision shall be final and binding on the parties hereto, and not subject to appeal, and enforceable in any court of competent jurisdiction. 
 19.5.5 Other Remedies; Specific Performance. 
 (a) Except as otherwise provided herein, any and all remedies herein
expressly conferred upon a party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and the exercise by a party of any one remedy will not preclude the exercise of any other
remedy. The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. 
  

 18 

 (b) It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to
prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which they are entitled at law or in equity. 
 19.6 Headings. Headings herein are for convenience of reference only and shall in no way affect interpretation of this Agreement.

 19.7 Conflicting Terms. Such terms and conditions of PECO’s Orders, invoices or other sales documents, as may be in
conflict in whole or in part with the provisions of this Agreement shall be of no force or effect whatsoever and the provisions of this Agreement shall be controlling in any such instance. It is the intention of both parties that the acceptance,
even in writing, of any such purchase or sales document not constitute a modification or amendment of, or addition to, the terms of this Agreement unless accompanied by a typed letter of agreement conspicuously entitled “Amendment of
Agreement” which begins with a proposal to amend the Agreement and specifies exactly each change to be made and which is signed by an authorized officer of both parties. 
 19.8 Subcontracting. DEI may subcontract any of its rights and/or obligations, in part or in whole, pursuant to this Agreement at any time without
restriction. 
 19.9 Registrations. If this Agreement is required to be registered with any governmental authority in the
United States, PECO shall cause such registration to be made and shall bear any expense or tax payable in respect thereof. 
 19.10
Compliance With Laws. The parties shall each comply with all applicable federal, state, and local laws and regulations in performing its duties hereunder. 
 19.11 Entire Agreement. This Agreement, and all exhibits attached hereto, constitutes the entire understanding and contract between the parties pertaining to the subject matter hereof and supersedes any and all
prior and contemporaneous, oral or written representations, communications, understandings, and agreements between the parties with respect to the subject matter hereof, including without limitation that certain OEM/ODM Partnership Agreement between
PECO II, Inc. and Delta Electronics, Inc., together with all exhibits attached thereto, which is hereby terminated in its entirety by the parties as of the Effective Date hereof. The parties acknowledge and agree that neither of the parties is
entering into this Agreement on the basis of any representations or promises not expressly contained herein. 
 19.12 Construction of
Agreement. Except where the context clearly requires to the contrary: (i) each reference in this Agreement to a designated “Article,” “Section,” “Schedule,” “Exhibit,” “Attachment” or
“Appendix” is to the corresponding Article, Section, Schedule, Exhibit, Attachment or Appendix of or to this Agreement; (ii) “including” shall mean “including, without limitation”; and (iii) the parties hereto
agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not be applied in the construction or interpretation of this Agreement. 
 19.13 Counterparts. For convenience of the parties hereto, this Agreement may be executed in one or more counterparts, each of which shall be
deemed an original for all purposes. 
 19.14 Prior Agreements. As of the Effective Date, each of DEI, PECO and DEI Logistics hereby
agree that the Prior Agreement(s) to which it is a party is/are terminated. Notwithstanding the termination of the Prior Agreements, all terms and conditions, including all rights, obligations and liabilities associated therewith, shall apply to all
Products shipped under the terms of the Prior Agreements as if such Prior Agreements remained in effect. 
  

 19 

 [Signature Page Follows] 
  

 20 

 AGREED TO AND ACCEPTED BY: 

 

									
	DELTA ELECTRONICS, INC. (“DEI”)	 		 	PECO II INC. (“PECO”)
					
	By:	 	 /s/ Albert Chang
	 		 	By:	 	 /s/ John G. Heindel

	Name:	 	Albert Chang	 		 	Name:	 	John G. Heindel
	Title:	 	General Manager,	 		 	Title:	 	President & Chief Executive Officer
		 	Power System Business Group II	 		 		 	
	Place:	 	Taipei, Taiwan, R.O.C.	 		 	Place:	 	Galion, Ohio

 AGREED TO AND ACCEPTED
ONLY WITH RESPECT TO SECTION 19.14 BY: 
 DEI Logistics (USA) Corporation (“DEI Logistics”) 
  

			
	By:	 	 /s/ Yao C.H. Chou

	Name:	 	Yao C.H. Chou
	Title:	 	President
	Place:	 	Fremont, California

 EXHIBIT A 
 PRODUCTS 
  

					
	 Category
	  	Series	  	 Delta P/N

	Converter	  	DC-DC	  	DCS-24/20A A-S
	Converter	  	DC-DC	  	DCS-48/10A A-S
			
	Inverter	  	Inverter	  	ESI125N102AB A
	Inverter	  	Inverter	  	ESI125N202AB A
	Inverter	  	Inverter	  	ESI24N102AB A
	Inverter	  	Inverter	  	ESI24N102AB B
	Inverter	  	Inverter	  	ESI48I202AB D
	Inverter	  	Inverter	  	ESI48N102AB A
	Inverter	  	Inverter	  	ESI48N102AB B
	Inverter	  	Inverter	  	ESI48N202AB A
			
	Rectifier	  	HDS-7200	  	ESR-48/120A A-S
	Rectifier	  	HDS-3000	  	ESR-24/100D A-S
	Rectifier	  	HDS-3000	  	ESR-48/50D A-S
	Rectifier	  	MCS-3000	  	ESR-24/100A A-S
	Rectifier	  	MCS-3000	  	ESR-24/100B A-S
	Rectifier	  	MCS-1800	  	ESR-48/30D A-S
	Rectifier	  	MCS-1800	  	ESR-24/50D A-S
	Rectifier	  	MCS-600	  	ESR-48/10B A-S
			
	Shelf	  	HDS-3000	  	SA-11F/EE C-S
	Shelf	  	DC-DC	  	SB-18K/HG H-S
			
	System	  	HDS-3000	  	ES24/1200-NDA03
	System	  	HDS-3000	  	ES24/1200-NDC01
	System	  	HDS-3000	  	ES48/200-NEA01
	System	  	MCS-3000	  	ES24/1200-GDA09
	System	  	MCS-3000	  	ES24/1200-GDA11
	System	  	MCS-3000	  	ES24/1200-GEA02
	System	  	MCS-3000	  	ES24/600-GEA01
	System	  	MCS-3000	  	ES48/1200-GDA09
	System	  	MCS-3000	  	ES48/1200-GDA10
	System	  	MCS-1800	  	ES24/200-JAA03
	System	  	DC-DC	  	ES24/80-KAA01
	System	  	BDFB	  	ES48/3600-PEA01
	System	  	BDFB	  	ES48/3600-PFA01

 EXHIBIT B 
 PRICING 
  

							
	 Category
	  	Series	  	 Delta P/N
	  	 Price to Peco II

	Converter	  	DC-DC	  	DCS-24/20A A-S	  	[*]
	Converter	  	DC-DC	  	DCS-48/10A A-S	  	[*]
				
	Inverter	  	Inverter	  	ESI125N102AB A	  	[*]
	Inverter	  	Inverter	  	ESI125N202AB A	  	[*]
	Inverter	  	Inverter	  	ESI24N102AB A	  	[*]
	Inverter	  	Inverter	  	ESI24N102AB B	  	[*]
	Inverter	  	Inverter	  	ESI48I202AB D	  	[*]
	Inverter	  	Inverter	  	ESI48N102AB A	  	[*]
	Inverter	  	Inverter	  	ESI48N102AB B	  	[*]
	Inverter	  	Inverter	  	ESI48N202AB A	  	[*]
				
	Rectifier	  	HDS-7200	  	ESR-48/120A A-S	  	[*]
	Rectifier	  	HDS-3000	  	ESR-24/100D A-S	  	[*]
	Rectifier	  	HDS-3000	  	ESR-48/50D A-S	  	[*]
	Rectifier	  	MCS-3000	  	ESR-24/100A A-S	  	[*]
	Rectifier	  	MCS-3000	  	ESR-24/100B A-S	  	[*]
	Rectifier	  	MCS-1800	  	ESR-48/30D A-S	  	[*]
	Rectifier	  	MCS-1800	  	ESR-24/50D A-S	  	[*]
	Rectifier	  	MCS-600	  	ESR-48/10B A-S	  	[*]
				
	Shelf	  	HDS-3000	  	SA-11F/EE C-S	  	[*]
	Shelf	  	DC-DC	  	SB-18K/HG H-S	  	[*]
				
	System	  	HDS-3000	  	ES24/1200-NDA03	  	[*]
	System	  	HDS-3000	  	ES24/1200-NDC01	  	[*]
	System	  	HDS-3000	  	ES48/200-NEA01	  	[*]
	System	  	MCS-3000	  	ES24/1200-GDA09	  	[*]
	System	  	MCS-3000	  	ES24/1200-GDA11	  	[*]
	System	  	MCS-3000	  	ES24/1200-GEA02	  	[*]
	System	  	MCS-3000	  	ES24/600-GEA01	  	[*]
	System	  	MCS-3000	  	ES48/1200-GDA09	  	[*]
	System	  	MCS-3000	  	ES48/1200-GDA10	  	[*]
	System	  	MCS-1800	  	ES24/200-JAA03	  	[*]
	System	  	DC-DC	  	ES24/80-KAA01	  	[*]
	System	  	BDFB	  	ES48/3600-PEA01	  	[*]
	System	  	BDFB	  	ES48/3600-PFA01	  	[*]

	*	Portions have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

 EXHIBIT C 
 DEI BRANDING GUIDELINES 
 PECO shall mark each DEI System and PECO System as follows and in a size
and location on the Product as mutually agreed, such agreement not to be unreasonably withheld: 
 POWER BY DELTA 
 and shall include the above legend in all PECO System brochures, manuals, descriptive literature, and, space permitting, advertising. 

 EXHIBIT D 
 RESERVED ENTITIES 
 [*] 
  

	*	Portions have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

 EXHIBIT E 
 MINIMUM ORDER REQUIREMENTS 
  

	 	•	 	Spare Parts: 

  

	 	•	 	Boards: [*] 

  

	 	•	 	Components: [*] 

  

	 	•	 	Racks/Shelves: [*] 

  

	 	•	 	DEI Systems: [*] 

  

	 	•	 	Modules: [*] 

  

	*	Portions have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

 EXHIBIT F 
 SUPPLY RECORDS 
 “Supply Records” shall mean the following data and documentation (excluding in each case
any documentation, data or other information related to Reserved Entities and the Modules): 
  

	 	•	 	product drawings, technical manuals, BOM (Bill of materials), training materials, and part item master listings for Systems that Buyer is authorized to sell pursuant to this
Agreement; 

  

	 	•	 	list of suppliers for materials, vendor purchase agreements, and purchase order pricing list by item by vendor used in North American telecom operations for Systems that Buyer is
authorized to sell pursuant to this Agreement; 

  

	 	•	 	product cut sheets, product catalogs, current customer price listings, and product forecasts for Systems that Buyer is authorized to sell pursuant to this Agreement; and

  

	 	•	 	a copy of the RMA database for Systems that Buyer is authorized to sell pursuant to this Agreement.

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