Document:

Service Agreement

 Exhibit 10.5 

 

																	
	Dienstvertrag	 		 	Service Agreement
			
	zwischen	 		 	between
			
	 der W.E.T. Automotive Systems

Aktiengesellschaft,
 Rudolf-Diesel-Str. 12, 85235 Odelzhausen,
 -vertreten durch den
Aufsichtsrat,
 dieser wiederum vertreten durch
 den Aufsichtsratsvorsitzenden,
 Herrn Dr. Franz Scherer -

(die „Gesellschaft“),
	 		 	 W.E.T. Automotive Systems

Aktiengesellschaft,
 Rudolf-Diesel-Str. 12, 85235 Odelzhausen,
 Germany

-represented by the supervisory board,
 the latter represented by its chairman,
 Dr. Franz Scherer -

(the “Company”),

			
	und	 		 	and
			
	 Herrn Caspar Baumhauer,

Finsterwalder Str. 28, 80997 München
 („CB“, gemeinsam mit der Gesellschaft
 die
„Parteien“).
	 		 	 Mr. Caspar Baumhauer,

Finsterwalder Str. 28, 80997 Munich,
 Germany
 (“CB”, together with the Company

the “Parties”).

			
	 I.
 Präambel
	 		 	 I.
 Preamble

					
	1.	 	Die Parteien haben am 15. März 2005 einen Dienstvertrag geschlossen (der „Dienstvertrag“), der durch Nachträge vom
12. März 2010 („Erster Nachtrag“) und 4. Juli 2011 („Zweiter Nachtrag“) geändert und ergänzt wurde.	 		 	1.	 	The Parties have entered into, on 15 March 2005, a service agreement (the “Service Agreement”), which was amended and supplemented by
amendments dated 12 March 2010 (“First Amendment”) and 4 July 2011 (“Second Amendment”).
					
	2.	 	Die Amerigon Europe GmbH mit Sitz in Augsburg, eingetragen im Handelsregister des Amtsgerichts Augsburg unter HRB 25596 („Amerigon Europe“), hat am
11. April 2011 ein freiwilliges öffentliches Übernahmeangebot gemäß §§ 29 ff. des Wertpapiererwerbs- und Übernahmegesetzes (WpÜG) zum Erwerb sämtlicher Aktien der	 		 	2.	 	Amerigon Europe GmbH with its registered seat in Augsburg, Germany, registered with the commercial register at the local court of Augsburg under HRB 25596
(“Amerigon Europe”), has issued, on 11 April 2011, a voluntary public tender offer pursuant to Sections 29 et seq. of the German Securities Acquisition and Takeover Act (WpÜG) for the acquisition of all
shares of the

			
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		 	Gesellschaft abgegeben (das „Übernahmeangebot“). Amerigon Europe ist eine 100%-ige Tochtergesellschaft der Amerigon, Inc. mit Sitz in Northville,
Michigan, USA („Amerigon, Inc.“).	 		 		 	Company (the “Tender Offer“). Amerigon Europe is a 100% subsidiary of Amerigon, Inc. with its registered seat in Northville, Michigan, USA
(“Amerigon, Inc.”).
					
	3.	 	 Das Übernahmeangebot erfolgte in Übereinstimmung mit dem am 28. Februar 2011 zwischen der Gesellschaft,
Amerigon Europe und Amerigon, Inc. geschlossenen Business Combination Agreement („BCA“), das nähere Regelungen zur (aus damaliger Sicht: künftigen) Beteiligung der Amerigon Europe an der Gesellschaft enthält. Unter
anderem sieht das BCA in Ziffer III.2. vor, dass Amerigon Europe und die Gesellschaft nach dem Vollzug des Übernahmeangebots, vorbehaltlich der Zustimmung der entsprechenden Gesellschaftsorgane, insbesondere der Hauptversammlung der
Gesellschaft, einen Beherrschungs- und Gewinnabführungsvertrag gemäß §§ 291 ff. AktG schließen (der „Beherrschungs- und Gewinnabführungsvertrag“). Darüber hinaus sieht das BCA
in Ziffer III.4. vor, dass die Gesellschaft, vertreten durch den Aufsichtsrat, und die derzeitigen Mitglieder des Vorstands der Gesellschaft (die „Vorstandsmitglieder“, jedes einzelne ein „Vorstandsmitglied“)
neue Dienstverträge mit Wirkung zum Wirksamwerden des Beherrschungs- und Gewinnabführungsvertrages durch Eintragung im Handelsregister schließen (der Zeitpunkt des Wirksamwerdens des Beherrschungs- und Gewinnabführungsvertrages
das „BGAV-Wirksamkeitsdatum“).
  
 Schließlich sieht
das BCA, ebenfalls in
	 		 	3.	 	The Tender Offer was made in accordance with the Business Combination Agreement entered into on 28 February 2011 by the Company, Amerigon Europe and Amerigon, Inc.
(“BCA”), which contains further provisions regarding the (then: future) participation of Amerigon Europe in the Company. Inter alia, the BCA provides in Section III.2. that Amerigon Europe and the Company shall enter
into, after the consummation of the Tender Offer, subject to the approval of the respective corporate bodies, in particular the shareholders’ meeting of the Company, a domination and profit and loss transfer agreement within the meaning of
Sections 291 et seq. of the German Stock Corporation Act (Beherrschungs- und Gewinnabführungsvertrag im Sinne der §§ 291 ff. AktG) (the “Domination and Profit and Loss Transfer
Agreement”). Further, the BCA provides in Section III.4. that the Company, represented by the supervisory board, and the current members of the management board of the Company (the “Members of the Management Board”,
each a “Member of the Management Board”) enter into new service agreements as of the Domination and Profit and Loss Transfer Agreement becoming effective by its registration with the commercial register (the effective date of the
Domination and Profit and Loss Transfer Agreement the “DPLTA Effective Date”). Finally, the BCA provides, also in Section III.4., that the

			
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		 	Ziffer III.4., vor, dass die derzeitigen Dienstverträge der Vorstandsmitglieder vor Abschluss des Beherrschungs- und Gewinnabführungsvertrages dahingehend
ergänzt werden, dass jedes Vorstandsmitglied berechtigt ist, von seinem Amt zurückzutreten und seinen Dienstvertrag zu kündigen, wenn die Gesellschaft und das betreffende Vorstandsmitglied nicht bis zum BGAV-Wirksamkeitsdatum einen
neuen Dienstvertrag geschlossen haben.	 		 		 	 current service agreements of the Members of the Management Board shall be amended, prior to the signing of the Domination
and Profit and Loss Transfer Agreement, in such way that each Member of the Management Board has the right to resign from his office and to terminate his service agreement in case the Company and the respective Member of the Management Board have
not entered into a new service agreement prior to the DPLTA Effective Date.

					
	4.	 	Mit dem Abschluss dieser Vereinbarung (die „Vereinbarung“) soll der Dienstvertrag in der Fassung des Ersten und des Zweiten Nachtrags weiter
ergänzt und -aus Gründen der Übersichtlichkeit - in eine konsolidierte Fassung zusammengeführt werden. Hiernach soll diese Vereinbarung die einzige bindende Vereinbarung zwischen den Parteien sein.	 		 	4.	 	By the conclusion of this agreement (the “Agreement”), the Service Agreement, as amended by the First and Second Amendment, shall be further
supplemented and -for clarity reasons - merged into one consolidated version. Hereafter, this Agreement shall be the only binding agreement between the Parties.
			
	Dies vorausgeschickt, vereinbaren die Parteien hiermit was folgt:	 		 	NOW, THEREFORE, the Parties hereby agree as follows:
	  
 II.

 
 § 1

Position / Vertretung
	 		 	  
 II.

 
 § 1

Position / Representation

					
	1.	 	CB wurde durch Beschluss des Aufsichtsrates vom 9. Juli 2010 für die Zeit vom 1. Juni 2011 bis zum 31. Mai 2014 zum
Vorstandsmitglied bestellt.	 		 	1.	 	By resolution of the supervisory board dated 9 July 2010, CB was appointed Member of the Management Board for the time from 1 June 2011 to
31 May 2014.
					
	2.	 	Dienstsitz von CB ist der Sitz der Gesellschaft in Odelzhausen.	 		 	2.	 	The regular place of office of CB is the registered seat of the Company in Odelzhausen.
					
	3.	 	CB vertritt die Gesellschaft nach Maßgabe des Gesetzes, der	 		 	3.	 	CB represents the Company in accordance with the laws, the provisions of

			
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		 	Vorschriften des Gesellschaftsvertrages (Satzung) und den Beschlüssen des Aufsichtsrats. Der Aufsichtsrat kann entscheiden, ob Einzel- oder
Gesamtvertretungsbefugnis erteilt wird. Der Aufsichtsrat ist berechtigt, eine Geschäftsordnung für den Vorstand zu erlassen, in der unter anderem Geschäftsbereiche, Aufgaben und Verantwortungen der einzelnen Vorstandsmitglieder
abgegrenzt werden. CB wird zum Vorstandsvorsitzenden bestimmt.	 		 		 	the articles of association and the resolutions of the supervisory board. The supervisory board may grant sole power or joint power of representation. The supervisory
board is entitled to enact internal rules of procedure for the management board, defining, inter alia, the business areas, tasks and responsibilities of each Member of the Management Board. CB will be appointed chairman of the management
board.
					
	4.	 	Der Vorstand bedarf der Zustimmung zu den Geschäften, die die jeweilige Satzung oder der Aufsichtsrat, sofern aktienrechtlich und satzungsgemäß
zulässig, für zustimmungsbedürftig erklären. Bei unterschiedlichen Regelungen in der Satzung oder in Aufsichtsratsbeschlüssen gilt vorrangig die für den Vorstand restriktivere Regelung.	 		 	4.	 	The management board requires the approval for such actions which the respective articles of association or the supervisory board, to the extent permissible under stock
corporation law and the articles of association, declare as being subject to approval. In case of contradictory provisions in the articles of association or in resolutions of the supervisory board, such regulation shall apply which is more
restrictive for the management board.
					
	5.	 	Sofern Einzelvertretungsbefugnis erteilt ist, ist sie im Innenverhältnis dahingehend beschränkt, dass eine Zweitunterschrift und damit die Zustimmung eines
anderen Vorstandsmitglieds benötigt wird für alle Geschäfte, die nach der Geschäftsordnung des Vorstands der vorherigen Zustimmung des Aufsichtsrats bedürfen.	 		 	5.	 	In case sole power of representation is granted, it is limited internally in such way that a second signature and, therefore, the approval of a further Member of the
Management Board is required for all actions which require, pursuant to the internal rules of procedure of the management board, the prior approval of the supervisory board.

			
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	 § 2
 Vergütung
	 		 	 § 2
 Remuneration

					
	1.	 	CB erhält ein jährliches Bruttogehalt von EUR 450.000 („Grundgehalt“), zahlbar in zwölf gleichen Raten jeweils am Ende eines Monats.
Soweit die Tätigkeit von CB in einem Vertragsjahr unterjährig beginnt oder endet, ist das Jahresgrundgehalt zeitanteilig geschuldet. Mit der Vergütung sind sämtliche Überstunden abgegolten.	 		 	1.	 	CB is entitled to an annual gross salary in the amount of EUR 450,000 (“Base Salary”), payable in twelve identical rates at the end of each
calendar month. To the extent the functions of CB start or end during a contract year, the Base Salary is owed pro rata temporis. The remuneration includes all overtime.
					
	2.	 	Zusätzlich zum Grundgehalt erhält CB eine jährliche erfolgsabhängige Tantieme, die sich nach Maßgabe der in Anlage 2.2 vorgesehenen
Regelung errechnet.	 		 	2.	 	In addition to the Base Salary, CB is entitled to an annual performance-based management bonus which is calculated in accordance with the provisions set forth in
Annex 2.2.
					
	3.	 	Vorbehaltlich der Regelungen in § 2 Abs. 2 in Verbindung mit Anlage 2.2 ist die erfolgsabhängige Tantieme in dem Monat, in dem der
Jahresabschluss festgestellt wird, abzurechnen und ist dann auch fällig.	 		 	3.	 	Subject to the provisions in Section 2 para. 2 in conjunction with Annex 2.2, the performance-based management bonus shall be calculated and is due
in the month in which the annual financial statements are approved.
					
	4.	 	Erbringt CB während seiner Amtszeit besondere Leistungen, die sich für die Gesellschaft oder ihre Tochtergesellschaften nachhaltig vorteilhaft auswirken und
die bei Abschluss dieser Vereinbarung noch nicht absehbar waren, hat CB Anspruch auf eine Sondervergütung. Die Höhe der Sondervergütung richtet sich nach dem für die Gesellschaft oder ihre Tochtergesellschaften erzielten Vorteil
und wird vom Aufsichtsrat nach dessen Ermessen unter Berücksichtigung einer nachhaltigen Unternehmensentwicklung und der Angemessenheit der Gesamtbezüge von CB bestimmt.	 		 	4.	 	In case CB renders, during his term of office, extraordinary services which lead to sustainably beneficial effects for the Company or its subsidiaries and which were not
foreseeable at the time of the conclusion of this Agreement, CB is entitled to a special remuneration. The amount of the special remuneration shall be based on the benefits achieved for the Company or its subsidiaries and is determined by the
supervisory board in its discretion under consideration of a sustainable development of the Company and the adequateness of the entire remuneration of CB.

			
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	 § 3
 Gehaltsfortzahlung bei Krankheit
 oder Tod
	 		 	 § 3
 Continued Payment in Case of Sickness
 or Death

					
	1.	 	Wird CB an der Ausübung seiner Tätigkeit durch Krankheit oder andere durch ihn nicht verschuldete Gründe verhindert, so erhält er für die Dauer
von sechs Monaten, längstens jedoch bis zur Beendigung dieses Vertrages, sein zeitanteiliges Grundgehalt gemäß § 2 Abs. 1 sowie die zeitanteilige Tantieme gemäß § 2 Abs. 2 weiter.	 		 	1.	 	In case CB cannot fulfil his duties due to sickness or other reasons for which he is not responsible, he is entitled to a pro rata temporis payment of his Base
Salary pursuant to Section 2 para. 1 and the performance-based management bonus pursuant to Section 2 para. 2 for a period of six months, at the longest, however, until the termination of this agreement.
					
	2.	 	Im Falle des Todes von CB erhält seine Witwe ein Drittel der Gesamtbezüge gemäß vorstehendem § 2 Abs. 1 und 2 für das zum
Zeitpunkt des Todes laufende Geschäftsjahr.	 		 	2.	 	In case of death of CB, his widow is entitled to the payment of one third of the total salary pursuant to Section 2 paras. 1 and 2 above for the business
year in which the death occurred.
			
	 § 4
 Dienstwagen / Reisekosten
	 		 	 § 4
 Company Car / Travel Expenses

					
	1.	 	Die Gesellschaft stellt CB einen Dienstwagen der Oberklasse zur Verfügung, der auch privat genutzt werden kann. Die private Nutzung ist von CB gemäß den
jeweils gültigen deutschen steuerlichen Vorschriften als geldwerter Vorteil zu versteuern. Der Anschaffungswert ist auf EUR 80.000 vor MwSt. begrenzt.	 		 	1.	 	The Company shall make available to CB a company car of the premium segment which may also be used for private purposes. The private use is taxable by CB as financial
benefit (geldwerter Vorteil) according to applicable German tax law, as amended from time to time. The acquisition value is limited to EUR 80,000 (excluding VAT).
					
	2.	 	Die Gesellschaft erstattet CB belegte Reisekosten und Bewirtungsauslagen entsprechend den jeweils gültigen Festlegungen der Gesellschaft und den jeweils
gültigen deutschen steuerrechtlichen Richtlinien.	 		 	2.	 	The Company reimburses to CB travel and hospitality expenses upon presentation of receipts in accordance with the rules of the Company and the applicable German taxation
guidelines, as amended from time to time.

			
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	 § 5
 Urlaub
	 		 	 § 5
 Vacation

			
	CB hat Anspruch auf einen angemessenen Jahresurlaub, dessen Zeitpunkt und Dauer er selbst festlegt. Seinen Urlaub hat er in Abstimmung mit den übrigen
Vorstandsmitgliedern so zu disponieren, dass die Interessen des Unternehmens vorrangig gewahrt bleiben.	 		 	CB is entitled to an appropriate annual vacation, the point of time and the duration of which are determined by himself. He shall determine his vacation in coordination
with the other Members of the Management Board in such way that the interests of the Company are predominantly respected.
			
	 § 6
 Sonstige Leistungen
	 		 	 § 6
 Additional Services

					
	1.	 	Die Gesellschaft erstattet CB, wenn und soweit er von der Versicherungspflicht befreit ist, jeweils 50% der Höchstbeiträge zur gesetzlichen Rentenversicherung,
Krankenversicherung, Pflegeversicherung und Arbeitslosenversicherung. Bei Inanspruchnahme einer privaten Krankenversicherung und privater Pflegeversicherung erstattet die Gesellschaft die Beiträge bis zu den jeweils gesetzlich vorgeschriebenen
Höchstbeiträgen.	 		 	1.	 	If and to the extent CB is not subject to the statutory insurance obligation, the Company reimburses to CB 50% of the maximum contributions to each of the statutory
pension, health, long-term care and unemployment insurance. If CB engages in a private health and long-term care insurance, the Company reimburses to CB the contributions up to the maximum contributions as determined by law.
					
	2.	 	Die Gesellschaft schließt für CB im Rahmen einer Gruppenunfallversicherung eine Unfall- und Invaliditätsversicherung ab. Der Versicherungsschutz im
Rahmen dieser Versicherung umfasst alle beruflichen und außerberuflichen Unfälle. Die Versicherungssumme ist auf EUR 1.000.000 bei Tod und auf EUR 2.000.000 bei Invalidität abgeschlossen. Der Versicherungsschutz erlischt, sobald
CB aus dem Dienstverhältnis mit der Gesellschaft ausscheidet. Die Versicherungsprämien trägt die Gesellschaft.	 		 	2.	 	The Company shall conclude an accident and invalidity insurance for the benefit of CB as part of a group accident insurance. The insurance protection within this
insurance covers all business and non-business related accidents. The insurance sum is EUR 1,000,000 in case of death and EUR 2,000,000 in case of invalidity. The insurance protection ends as soon as the services of CB for the Company
are terminated. The insurance premiums shall be borne by the Company.

			
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	3.	 	Für den Erwerb eines Anrechts von CB auf Sonderzahlungen in seine betriebliche Altersversorgung gilt § 10 Abs. 4 dieser Vereinbarung.	 		 	3.	 	For the acquisition of a right by CB to special payments into his company pension scheme Section 10 para. 4 of this Agreement shall apply.
					
	4.	 	Die bestehende D&O Versicherung der Gesellschaft wurde per 30. Juni 2010 an die Erfordernisse des AktG angepasst (Selbstbehalt des
Vorstandsmitglieds).	 		 	4.	 	The existing D&O insurance of the Company was adapted to the requirements of the AktG as of 30 June 2010 (deductible of the Member of the Management
Board).
				
	 § 7
 Nebentätigkeit
	 		 		 	 § 7
 Secondary Occupations

					
	1.	 	CB verpflichtet sich, seine ganze Arbeitskraft in den Dienst der Gesellschaft zu stellen und die Interessen der Gesellschaft nach besten Kräften zu fördern.
Soweit das Wohl der Gesellschaft es erfordert, wird CB der Gesellschaft jederzeit auch über die betriebsübliche Arbeitszeit hinaus zur Verfügung stehen.	 		 	1.	 	CB undertakes to devote his entire working capacity to the service of the Company and to make best efforts to promote the interests of the Company. To the extent
required for the benefit of the Company, CB will be available for the Company at any time, also in extension of the customary working time.
					
	2.	 	Jede weitere entgeltliche oder unentgeltliche Beschäftigung und / oder unmittelbare oder mittelbare Beteiligung an anderen Unternehmen jeder Art bedarf der
vorherigen schriftlichen Zustimmung des Aufsichtsrats. Dies gilt nicht für den üblichen Erwerb von Aktien oder sonstigen Geschäftsanteilen zu Investitionszwecken. Die Mitgliedschaft in Vertretungsgremien oder in Aufsichtsgremien
anderer Gesellschaften ist dem Aufsichtsrat schriftlich anzuzeigen.	 		 	2.	 	Any other occupation, against payment or nonpaid, and / or any direct or indirect participation in other companies of any kind require the prior written consent of the
supervisory board. This does not apply for the customary acquisition of stock or other shares for investment purposes. The supervisory board has to be informed in writing about memberships in other companies’ administrative or supervisory
bodies.

			
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	 § 8
 Diensterfindungen
	 		 	 § 8
 Service Inventions

					
	1.	 	Für Erfindungen und qualifizierte technische Verbesserungsvorschläge gelten die Regelungen des Gesetzes über Arbeitnehmererfindungen in seiner jeweils
gültigen Fassung entsprechend.	 		 	1.	 	With regard to inventions and qualified technical improvement proposals the provisions of the German Employee Inventions Act (Gesetz über
Arbeitnehmererfindungen), as amended from time to time, shall apply mutatis mutandis.
					
	2.	 	Die Parteien sind sich darüber einig, dass eine etwaige Vergütung für eine von der Gesellschaft in Anspruch genommene Diensterfindung mit der Zahlung des
Grundgehalts gemäß obigem § 2 Abs. 1 vollständig abgegolten ist.	 		 	2.	 	The Parties agree that any possible remuneration for an invention called upon by the Company is fully compensated by the payment of the Base Salary pursuant to
Section 2 para. 1 above.
			
	 § 9
 Geheimhaltung /
 Rückgabe von Unterlagen
	 		 	 § 9
 Confidentiality /
 Return of Documents

					
	1.	 	CB ist verpflichtet, insbesondere auch während der Zeit nach Beendigung dieses Dienstvertrages, alle vertraulichen Informationen über das Geschäft, die
Vertragsbeziehungen, Abschlüsse, Geschäfte oder besonderen Angelegenheiten der Gesellschaft oder von verbundenen Unternehmen geheim zu halten und diese Informationen nicht für seinen eigenen oder den Nutzen anderer zu verwenden.
„Vertraulich“ in diesem Sinne sind insbesondere die in vorstehendem § 8 bezeichneten Erfindungen, Urheberrechte sowie das Know-how.	 		 	1.	 	CB is obliged, in particular also after the termination of this service agreement, to keep confidential all confidential information regarding the business, the
contractual relationships, agreements, business affairs or special matters of the Company or of affiliated companies and to use this information not for his own benefit or for the benefit of third parties. “Confidential” in this
sense are in particular the inventions as mentioned in Section 8 above, copyrights as well as the know-how.
					
	2.	 	Während des Dienstverhältnisses wird CB auf Verlangen der Gesellschaft, spätestens aber bei Beendigung des Dienstverhältnisses unaufgefordert, der
Gesellschaft alle in seinem Besitz	 		 	2.	 	CB shall return, during the term of his services, on the Company’s request, at the latest, however, upon termination of his services without request by the Company
being necessary, all files and

			
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		 	befindlichen oder seinem Zugriff unterliegenden Akten und sonstigen den Geschäftsbetrieb der Gesellschaft oder verbundener Unternehmen betreffende Unterlagen
- insbesondere alle Pläne, Kunden, Preislisten, Druckmaterial, Urkunden, Zeichnungen, Notizen, Entwürfe - sowie Kopien davon zurückgeben, ohne Rücksicht darauf, ob er sie von der Gesellschaft selbst oder von verbundenen
Unternehmen erhalten hat. Sinngemäß gilt das Gleiche für nicht körperliche Informationen und Materialien, z.B. Computerprogramme oder auf Datenträgern gespeicherte Informationen.	 		 		 	further documents related to the Company’s business or the business of affiliated companies - in particular all plans, clients, price lists, print material,
deeds, drawings, notes, drafts - as well as copies thereof which are in his possession or which he has access to, regardless of whether he has received them from the Company or an affiliated company. The same shall apply mutatis mutandis
to all non-physical information and materials, e.g. computer software and information saved on storage mediums.
				
	 § 10
 Laufzeit
	 		 		 	 § 10
 Term

					
	1.	 	Diese Vereinbarung wird mit Wirkung zum 01.06.2005 geschlossen und endet am 31. Mai 2014, ohne dass es einer Kündigung bedarf. Sie tritt an die Stelle des
(bisherigen) Dienstvertrags in der Fassung des Ersten Nachtrags und des Zweiten Nachtrags. Sämtliche bisherigen Vereinbarungen zwischen den Parteien werden hiermit ausdrücklich aufgehoben.	 		 	1.	 	This Agreement is entered into as of 1 June 2005 and ends on 31 May 2014 without a termination declaration being necessary. It shall replace the (hitherto
existing) Service Agreement in the version of the First Amendment and of the Second Amendment. All hitherto existing agreements between the Parties are hereby expressly cancelled.
					
	2.	 	Das Recht zur außerordentlichen Kündigung dieser Vereinbarung aus wichtigem Grund durch beide Seiten bleibt unberührt. Im Fall eines Widerrufs der
Bestellung von CB als Vorstandsmitglied / einer Freistellung von CB sind etwaige Zahlungen aus dem bestehenden Vertragsverhältnis auf maximal das Zweifache des Grundgehalts gemäß § 2 Abs. 1 begrenzt, zuzüglich der
Weiternutzung für maximal 2 Jahre des Dienstwagens, alternativ des entsprechenden	 		 	2.	 	The right of both Parties to terminate this Agreement for good cause remains unaffected. In case of revocation of the appointment of CB as Member of the Management Board
/ a release of CB, all potential payments according to the existing contractual relationship are limited to twice the Base Salary pursuant to Section 2 para. 1 plus the continued use of the company car for not more than two years,
alternatively the respective financial benefit (geldwerter Vorteil). Para. 5 of this Section 10 remains

			
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		 	geldwerten Vorteils. Absatz 5 dieses § 10 bleibt unberührt.	 		 		 	unaffected.
					
	3.	 	Die Gesellschaft ist berechtigt, CB während der Laufzeit dieser Vereinbarung jederzeit von seiner Tätigkeit für die Gesellschaft freizustellen. Dies gilt
insbesondere im Fall eines Widerrufs der Bestellung von CB als Vorstandsmitglied.	 		 	3.	 	The Company is entitled to release CB from his services for the Company at any time during the term of this Agreement. This applies in particular in case of a revocation
of the appointment of CB as Member of the Management Board.
					
	4.	 	Für den Fall, dass das Vertragsverhältnis ordnungsgemäß ausläuft und auf Wunsch nicht verlängert wird, spätestens bei Erreichen des
gesetzlichen Rentenalters, erwirbt CB Anrecht auf eine Sonderzahlung in seine betriebliche Altersversorgung. Der Betrag errechnet sich auf Basis von EUR 60.000 für jedes volle Jahr als Vorstandsmitglied, beginnend mit und
einschließlich des am 1. Juni 2011 beginnenden Vertragsjahres. Diese Sonderzahlung wird fällig zu Beginn des dem einvernehmlichen Vertragsauslauf folgenden Kalenderjahres. Eine weitere einmalige Sonderzahlung in die betriebliche
Altersversorgung von EUR 120.000 wird fällig nach dem einvernehmlichen Auslaufen der Bestellungsperiode 1. Juni 2014 bis 31. Mai 2017.	 		 	4.	 	In case the contractual relationship expires orderly and is, upon request, not extended, at the latest when the statutory retirement age is reached, CB acquires the
right to a special payment into his company pension scheme. The amount is calculated on a base of EUR 60,000 for each complete year as Member of the Management Board, starting with and including the contractual year beginning on
1 June 2011. This special payment becomes due at the beginning of the calendar year following the consensual expiry of the contractual relationship. A further one-time special payment into the company pension scheme of EUR 120,000
becomes due after the appointment period from 1 June 2014 to 31 March 2017 has expired consensually.
			
	 § 11
 Verschiedenes
	 		 	 § 11
 Miscellaneous

					
	1.	 	Änderungen und / oder Ergänzungen dieser Vereinbarung, einschließlich dieses Schrifterfordernisses, bedürfen zu ihrer Wirksamkeit der Schriftform.
Dies gilt auch für die Aufhebung dieser Klausel.	 		 	1.	 	Amendments and / or supplements to this Agreement, including this written form requirement, must be made in writing in order to be effective. This does also apply to the
cancellation of this clause.

			
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	2.	 	Sollten einzelne Bestimmungen dieser Vereinbarung unwirksam sein oder werden, so berührt dies die Gültigkeit der übrigen Bestimmungen nicht. Anstelle der
unwirksamen Bestimmung soll eine angemessene Regelung treten, die dem am nächsten kommt, was die Parteien nach ihrer wirtschaftlichen Zwecksetzung gewollt haben. Das gleiche gilt im Falle einer vertraglichen Lücke.	 		 	2.	 	In case individual provisions of this Agreement are or become invalid, this shall not affect the validity of the remaining provisions. The invalid provision shall be
replaced by an adequate provision which comes closest to the economic intentions of the Parties. The same shall apply in case of a gap in this Agreement.
					
	3.	 	Diese Vereinbarung unterliegt dem Recht der Bundesrepublik Deutschland. Gerichtsstand für alle sich aus oder in Zusammenhang mit dieser Vereinbarung ergebenden
Streitigkeiten ist, soweit gesetzlich zulässig, München.	 		 	3.	 	This Agreement is subject to the laws of the Federal Republic of Germany. Place of jurisdiction for all disputes arising out of or in connection with this Agreement is,
as far as legally permissible, Munich.
					
	4.	 	Die deutsche Fassung dieser Vereinbarung ist maßgeblich.	 		 	4.	 	The German version of this Agreement shall prevail.
			
	Odelzhausen, den 05.07.2011	 		 	
			
	     /s/ Dr. Franz Scherer _
	 		 	 /s/ Caspar Baumhauer

	 W.E.T. Automotive Systems

 
 Aktiengesellschaft,

 
 hier vertreten durch den Aufsichtsrat /

 
 here represented by the supervisory board,

 
 dieser vertreten durch den Aufsichtsratsvorsitzenden
/
  
 the latter represented by its
chairman,
  
 Dr. Franz Scherer
	 		 	Caspar Baumhauer

			
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	Anlage 2.2	 		 	Annex 2.2
			
	Zusätzlich zum Grundgehalt erhält das Vorstandsmitglied eine jährliche erfolgsabhängige Tantieme (der „Bonus“), die an die
Entwicklung des Unternehmenswertes (EVA, Stern Stewart) der W.E.T-Gruppe nach Maßgabe der folgenden Regelungen gekoppelt ist:	 		 	In addition to the Base Salary, the Member of the Management Board is entitled to an annual performance-based management bonus (the “Bonus”) which is
linked to the development of the enterprise value (EVA, Stern Stewart) of the W.E.T. Group in according to the following provisions:
					
	1.	 	Basis für den Bonus ist das Erreichen von bestimmten EVA-Werten, die sich auf die gesamte W.E.T.-Gruppe beziehen (die „EVA-Zielwerte“). Die
EVA-Zielwerte werden für einen Zeitraum von jeweils 3 (drei) Jahren einvernehmlich zwischen dem Vorstand und dem Aufsichtsrat festgelegt, erstmals beginnend mit dem Geschäftsjahr 2011 für die Jahre 2011 bis 2013.	 		 	1.	 	The Bonus is based on the achievement of certain EVA values with regard to the entire W.E.T. Group (the “EVA Target Values”). The EVA Target Values are
consensually determined by the management board and the supervisory board for a period of 3 (three) years, for the first time beginning with the business year 2011 for the years 2011 to 2013.
					
	2.	 	Die EVA-Zielwerte basieren hierbei auf einem mit dem Vorstand abgestimmten Berechnungsmodell von Stern Stewart und basieren auf den vorläufigen Abschlusszahlen
für das Geschäftsjahr 2010 und den Budgetzahlen für die Jahre 2011 bis 2013. Ob die EVA-Zielwerte erreicht werden, richtet sich nach der als Anlage beigefügten Berechnung.	 		 	2.	 	The EVA Target Values are based on a calculation model according to Stern Stewart, as agreed upon with the management board, and are based on the preliminary year-end
figures for the business year 2010 and the budget figures for the years 2011 to 2013. Whether or not the EVA Target Values are achieved, depends on the calculation attached hereto as annex.
					
	3.	 	Bei Erreichen der EVA-Zielwerte ergibt sich ein Bonus in Höhe von 100 %, der 50 % des Grundgehaltes des Vorstandsmitglieds nach § 2 Abs. 1
des Dienstvertrages entspricht (der „Basis-Bonus“). Der Zielerreichungsgrad kann für die Zwecke der Berechnung des Bonuses niedrigstenfalls -100 % und maximal +300 % (der „Maximal-Bonus“) betragen.
Bei Über- oder Unterschreitungen innerhalb dieser	 		 	3.	 	Upon achievement of the EVA Target Values, a Bonus of 100 % arises which equals 50 % of the Base Salary of the Member of the Management Board pursuant to
Section 2 para. 1 of the service agreement (the “Base Bonus”). The degree of target achievement may be, for calculation purposes, as a minimum -100 % and as a maximum +300 % (the “Maximum
Bonus”). In case of exceedance or shortfall within

			
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		 	Bandbreite ist der Zielerreichungsgrad linear zu ermitteln.	 		 		 	this range, the degree of target achievement is to be determined straight proportionally.
					
	4.	 	Nach Ablauf des Geschäftsjahres wird auf Grundlage des konsolidierten IFRS Konzernabschlusses der W.E.T.-Gruppe der Zielerreichungsgrad für die EVA-Zielwerte
durch den Aufsichtsrat festgestellt und der sich danach zu errechnende Bonus ermittelt. Bei Änderungen des Konsolidierungskreises während des laufenden Geschäftsjahres sind die jeweiligen festgelegten EVA-Zielwerte -soweit
erforderlich - anzupassen. Die Anpassung erfolgt pro rata temporis einvernehmlich zwischen dem Aufsichtsrat und allen Vorstandsmitgliedern unter Bezugnahme und Berücksichtigung der maßgeblichen Vorjahreszahlen der neu zu
konsolidierenden bzw. zu dekonsolidierenden Gesellschaft(en) durch entsprechende Erhöhung bzw. Reduzierung der betroffenen EVA-Zielwerte.	 		 	4.	 	After the end of the business year the degree of target achievement for the EVA Target Values is determined by the supervisory board based on the IFRS consolidated
financial statements of the W.E.T. Group, and the Bonus resulting thereafter is to be determined. In case of changes of the consolidated companies during the business year, the respectively determined EVA Target Values are to be adjusted, if
necessary. The adjustment shall be made pro rata temporis consensually between the supervisory board and all Members of the Management Board with reference to and taking into consideration of the relevant prior-year figures of the
company/-ies to be additionally consolidated or to be unconsolidated by increase or decrease of the concerned EVA Target Values, respectively.
					
	5.	 	Der Bonus berechnet sich als Multiplikation von Basis-Bonus mal Zielerreichungsgrad. Insofern kann der Bonus auch negativ sein. Er kann aber nicht höher als das
Dreifache des Basis-Bonus sein.	 		 	5.	 	The Bonus is calculated by multiplying the Base Bonus with the degree of target achievement. Therefore, the Bonus can also be negative. But it may not exceed the amount
of three times the Base Bonus.
					
	6.	 	Das Entstehen und die Auszahlung des Bonus unterliegt Restriktionen („Bonus-Bank“), um die Nachhaltigkeit der Anreizwirkung durch die
erfolgsabhängige Tantieme zu gewährleisten:	 		 	6.	 	The arising and the payout of the Bonus is subject to certain restrictions (“Bonus Bank”), in order to guarantee the sustainability of the incentive by
the performance-based management bonus:
							
		 	a.	 	Sofern der Zielerreichungsgrad 0 % bis einschließlich +100 % beträgt,	 		 		 	a.	 	If the degree of target achievement is 0 % up to +100 %, the Bonus to

			
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		  		  	ist der hierauf zu zahlende Bonus vollständig in dem Monat, in dem der Jahresabschluss festgestellt wird, abzurechnen. Der Bonus ist dann auch fällig und auf
das der Gesellschaft bekannte Konto des Vorstandsmitglieds nach Abzug von Steuern und sonstigen Abgaben (die „Abgaben“) auszuzahlen.	  		  		  		  	be paid thereon is to be fully determined in the month in which the annual financial statements are approved. The Bonus is then also due and to be transferred to the
bank account of the Member of the Management Board which is known to the Company after deduction of taxes and additional levies (the “Levies”).
							
		  	b.	  	Sofern der Zielerreichungsgrad mehr als +100 % beträgt, ist der Bonus	  		  		  	b.	  	If the degree of target achievement is higher than +100 %, the Bonus is
									
		  		  	i.	  	in Höhe des nach Ziffer 6 lit. a errechneten Betrages in dem Monat, in dem der Jahresabschluss festgestellt wird, abzurechnen. Dieser Teil des Bonuses ist dann auch
fällig und auf das der Gesellschaft bekannte Konto des Vorstandsmitgliedes nach Abzug von Abgaben auszuzahlen;	  		  		  		  	i.	  	to be determined in the amount to be calculated pursuant to Section 6 lit. a in the month in which the annual financial statements are approved. This part of the Bonus is
then also due and to be transferred to the bank account of the Member of the Management Board which is known to the Company after deduction of Levies;
									
		  		  	ii.	  	in Höhe des Restbetrages („Überschießender Bonus“) in die bei der Gesellschaft rechnerisch geführte Bonus-Bank des Vorstandsmitgliedes
einzustellen; die Einstellung in die Bonus-Bank erfolgt 12 Monate nach Feststellung des Überschießenden Bonuses.	  		  		  		  	ii.	  	to the amount remaining (“Excessive Bonus”) to be credited to the Bonus Bank of the Member of the Management Board which is to be run by the Company in virtual
form; the Excessive Bonus is to be credited to the Bonus Bank 12 months after its determination.
							
		  	 c.
	  	Sofern der Zielerreichungsgrad zwischen -100 % (einschließlich) und 0 % (ausschließlich) liegt, erfolgt in dem Monat, in dem der Jahresabschluss
festgestellt wird, keine Auszahlung eines Basis-Bonuses, sondern der negative Bonus wird als Abzugsposten in die bei der Gesellschaft rechnerisch	  		  		  	c.	  	If the degree of target achievement is between -100 % (inclusive) and 0 % (exclusive), no Base Bonus is paid out in the month in which the annual financial
statements are approved, but the negative Bonus is to be accounted for deduction in the Bonus Bank of the Member of the Management Board which is to be

			
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		  		  	geführte Bonus-Bank des Vorstandsmitgliedes eingestellt („Negativer Bonus“).	  		  		  		  	run by the Company in virtual form (“Negative Bonus”).
							
		  	d.	  	Die in die bei der Gesellschaft rechnerisch geführte Bonus-Bank des Vorstandsmitglieds eingestellten Überschießenden Boni sind mit eingestellten
Negativen Boni innerhalb der Bonus-Bank zu verrechnen und der so ermittelte Saldo in der Bonus-Bank festzuhalten („Saldo Bonus“). Der Saldo Bonus kann negativ, jedoch kann er in Summe nicht niedriger als -100 %
sein.	  		  		  	d.	  	The Excessive Bonuses credited to the Bonus Bank of the Member of the Management Board which is to be run by the Company in virtual form are to be settled with Negative
Bonuses credited to the Bonus Bank, and the balance resulting therefrom is to be registered with the Bonus Bank (“Balance Bonus”). The Balance Bonus can be negative, but its sum cannot be less than -100 %.
							
		  	e.	  	Jedes Jahr, beginnend mit dem Geschäftsjahr 2012, ist ein positiver Saldo Bonus in Höhe eines Betrages, der 33 % des Saldo Bonuses entspricht, in dem
Monat, in dem der Jahresabschluss festgestellt wird, abzurechnen, d.h. der positive Saldo Bonus in der Bonus-Bank verringert sich entsprechend. Dieser Teil des Bonuses ist dann auch fällig und auf das der Gesellschaft bekannte Konto des
Vorstandsmitgliedes nach Abzug von Abgaben auszuzahlen.	  		  		  	e.	  	Starting with the business year 2012, each year a positive Balance Bonus is to be settled in the amount of 33 % of the Balance Bonus in the month in which the
annual financial statements are approved, i.e. the positive Balance Bonus in the Bonus Bank decreases accordingly. This part of the Bonus is then also due and to be transferred to the bank account of the Member of the Management Board which
is known to the Company after deduction of Levies.
					
	7.	  	Bei Beendigung des Dienstvertrages des Vorstandsmitgliedes ist die Bonus-Bank 12 Monate nach Beendigung des Dienstvertrages (die „Nachlaufphase“) auf
Basis des Saldo Bonuses und unter Berücksichtigung des Grundes der Beendigung abzurechnen. Das bedeutet, dass sich der bei der Gesellschaft in der rechnerisch geführten Bonus-Bank des Vorstandsmitglieds ausgewiesene Saldo Bonus in
Abhängigkeit vom Zielerreichungsgrad in der	  		  	7.	  	Upon termination of the service agreement of the Member of the Management Board, the Bonus Bank is to be finally settled 12 months after the termination of the
service agreement (the “Follow-Up Period”), based on the Balance Bonus and under consideration of the reason for the termination. This means that the Balance Bonus shown in the Bonus Bank of the Member of the Management Board, which
is to be run by the Company in virtual form, can change depending on the degree of target

			
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		 	Nachlaufphase noch verändern kann.	 		 		 	achievement in the Follow-Up Period.
							
		 	a.	 	Erfolgt die Beendigung des Dienstvertrages des Vorstandsmitglieds aus Gründen, die ihn als Good Leaver (s.u. lit. h) qualifizieren, so kann sich der Saldo
Bonus in der Nachlaufphase verringern oder erhöhen.	 		 		 	a.	 	In case the termination of the service agreement of the Member of the Management Board occurs for reasons qualifying him as Good Leaver (see lit. h below), the
Balance Bonus can decrease or increase during the Follow-Up Period.
							
		 	b.	 	Erfolgt die Beendigung des Dienstvertrages des Vorstandsmitglieds aus Gründen, die ihn als Bad Leaver (s.u. lit. g) qualifizieren, so ist der Saldo Bonus nach
der Nachlaufphase maximal Null und es erfolgt auf jeden Fall keine Ausschüttung an das Vorstandsmitglied. Der Saldo Bonus kann sich aber in der Nachlaufphase auch verringern und damit negativ werden.	 		 		 	b.	 	In case the termination of the service agreement of the Member of the Management Board occurs for reasons qualifying him as Bad Leaver (see lit. g below), the
Balance Bonus equals at most zero at the end of the Follow-Up Period, and there is no payout to the Member of the Management Board. However, the Balance Bonus can also decrease in the Follow-Up Period, and thus become negative.
							
		 	c.	 	Eine Veränderung greift nur dann ein, wenn der Zielerreichungsgrad innerhalb der Nachlaufphase kleiner als 0 % ist oder größer als +200 %. Bei
einem Zielerreichungsgrad innerhalb der Nachlaufphase, der gleich oder größer als 0 %, aber gleich oder kleiner als +200 % ist, erfolgt keine Veränderung. Ist der Zielerreichungsgrad größer als +200 %, so
ist für die Veränderung des Saldo Bonus nur ein die Schwelle von +200 % überschießender Zielerreichungsgrad bis maximal +300 % für die Veränderung anzusetzen, so dass eine Veränderung in diesem Fall
maximal +100 % betragen kann.	 		 		 	c.	 	There will only be a change in case the degree of target achievement within the Follow-Up Period is less than 0 % or higher than +200 %. If the degree of
target achievement within the Follow-Up Period is higher than or equal to 0 %, but less than or equal to +200 %, there will be no change. If the degree of target achievement is higher than +200 %, only a degree of target achievement
exceeding +200 % up to +300 % is applicable for the change of the Balance Bonus, so that in this case a change can be at most +100 %.
							
		 	d.	 	Bei einer unterjährigen Beendigung des Dienstvertrages wird der Aufsichtsrat der Gesellschaft zum	 		 		 	d.	 	If the service agreement is terminated in the course of a year, the supervisory board of the Company

			
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		  		  	Ende der Nachlaufphase die Höhe des Zielerreichungsgrades nach billigem Ermessen festlegen.	  		  		  		  	will determine the degree of target achievement at the end of the Follow-Up Period in its equitable discretion.
							
		  	e.	  	Erfolgt die Beendigung des Dienstvertrages des Vorstandsmitgliedes aus Gründen, die ihn als Good Leaver (s.u. lit. h) qualifizieren und sofern am Ende der
Nachlaufzeit ein positiver Saldo Bonus besteht, wird eine Zahlung in Höhe eines Betrages, der dem dann festgestellten positiven Saldo Bonus entspricht, mit einem Abschlag von 10 % auf diesen Betrag fällig. Der so ermittelte Betrag ist
auf das der Gesellschaft bekannte Konto des Vorstandsmitgliedes nach Abzug von Abgaben auszuzahlen.	  		  		  	e.	  	In case the termination of the service agreement of the Member of the Management Board occurs for reasons qualifying him as Good Leaver (see lit. h below), and if
there is, at the end of the Follow-Up Period, a positive Balance Bonus, a payment becomes due in the amount which equals the positive Balance Bonus determined at that time, with a deduction of 10 %. The amount thus determined is to be
transferred to the bank account of the Member of the Management Board which is known to the Company after deduction of Levies.
							
		  	f.	  	Sofern am Ende der Nachlaufzeit ein negativer Saldo Bonus festgestellt wird, und	  		  		  	f.	  	If, at the end of the Follow-Up Period, a negative Balance Bonus is determined, and
									
		  		  	i.	  	die Beendigung des Dienstvertrages des Vorstandsmitgliedes aus Gründen erfolgt, die ihn als Good Leaver qualifizieren, so hat das Vorstandsmitglied einen Betrag in Höhe
von 50 % des dann festgestellten negativen Saldo Bonus (ohne darauf entfallende Abgaben) an die Gesellschaft zurückzuzahlen; oder	  		  		  		  	i.	  	the termination of the service agreement of the Member of the Management Board occurs for reasons qualifying him as Good Leaver, the Member of the Management Board has to pay back
to the Company an amount of 50 % of the negative Balance Bonus then determined (excluding Levies related thereto); or
									
		  		  	ii.	  	die Beendigung des Dienstvertrages des Vorstandsmitgliedes aus Gründen erfolgt, die ihn als Bad Leaver qualifizieren, so hat das Vorstandsmitglied einen Betrag in Höhe des
dann festgestellten	  		  		  		  	ii.	  	the termination of the service agreement of the Member of the Management Board occurs for reasons qualifying him as Bad Leaver, the Member of the Management Board has to pay back to
the Company the

			
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		 		 		 	negativen Saldo Bonus (ohne darauf entfallende Abgaben) an die Gesellschaft zurückzuzahlen.	 		 		 		 		 	amount of the negative Balance Bonus then determined (excluding Levies related thereto).
							
		 		 	Eine Rückzahlungsverpflichtung des Vorstandsmitglieds besteht nur soweit und nur in der Höhe wie das Vorstandsmitglied in der Vergangenheit aufgrund der
erfolgsabhängigen Tantieme Bonuszahlungen erhalten hat. Das Vorstandsmitglied haftet für die Rückzahlungsverpflichtung nicht mit seinem von der Gesellschaft erhaltenen Grundgehalt.	 		 		 		 	A payback obligation of the Member of the Management Board exists only to the extent and up to the amount in which the Member of the Management Board has received Bonus
payments in the past due to the performance-based management bonus. As regards the payback obligation, the Member of the Management Board is not liable with his Base Salary received by the Company.
							
		 		 	Der Aufsichtsrat kann nach billigem Ermessen auf eine Rückzahlung eines Bonuses nach diesem lit. f ganz oder teilweise verzichten.	 		 		 		 	The supervisory board may waive a payback of the Bonus pursuant to this lit. f fully or partly in its equitable discretion.
							
		 		 	Die jeweils so ermittelten Beträge sind von dem Vorstandsmitglied innerhalb von 60 Werktagen nach Mitteilung durch die Gesellschaft auf ein von der Gesellschaft dem
Vorstandsmitglied mitgeteiltes Konto einzuzahlen. Hieraus erfolgende Erstattungen für Abgaben auf die ursprünglichen Boni-Zahlungen stehen der Gesellschaft zu.	 		 		 		 	The respective amounts thus determined are to be transferred by the Member of the Management Board to a bank account named by the Company within 60 business days
following the notification by the Company. The Company is entitled to reimbursements of Levies arising therefrom which relate to the original Bonus payments.
							
		 	g.	 	Als „Bad Leaver“ qualifiziert ein Vorstandsmitglied, dessen Dienstvertrag durch die Gesellschaft aus wichtigem Grund nach § 626 BGB
beendet oder dessen Bestellung als Vorstandsmitglied aus wichtigem Grund nach § 84 Abs. 3 AktG widerrufen wird.	 		 		 	g.	 	“Bad Leaver” is a Member of the Management Board whose service agreement is terminated by the Company for good cause pursuant to Section 626 of the
German Civil Code (Bürgerliches Gesetzbuch, BGB) or whose appointment as Member of the Management Board is revoked for good cause pursuant to Section 84 para. 3 of the German Stock Corporation Act

			
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		  		  		  		  		  		  		  	(Aktiengesetz, AktG).
							
		  	h.	  	Als „Good Leaver“ qualifiziert ein Vorstandsmitglied, dessen Dienstvertrag aus Gründen endet, die ihn nicht als Bad Leaver
qualifizieren.	  		  		  	h.	  	“Good Leaver” is a Member of the Management Board whose service agreement ends for reasons which do not qualify him as Bad Leaver.
					
	8.	  	Ein Berechnungsbeispiel ist als Anlage beigefügt. [fehlt bislang]	  		  	8.	  	A sample calculation is attached as annex. [hitherto missing]

 * * *Employment Separation Agreement

 EXHIBIT 10.5 
 EMPLOYMENT SEPARATION AGREEMENT 
 THIS EMPLOYMENT
SEPARATION AGREEMENT (the “Agreement”), which includes Exhibits A, B, C, D and E hereto which are incorporated herein by this reference, is entered into by and between TEKELEC, a California corporation with its principal place of business
in Morrisville, North Carolina (“Tekelec”), and YUSUN (SUSIE) KIM RILEY (“Employee”), and shall become effective when executed by both parties hereto (the “Effective Date”). 

RECITALS 
 A.                Employee has been employed with Tekelec in the position of Chief Marketing Officer. 

B.                Employee will cease to
be an employee and officer of Tekelec on July 31, 2011 (the “Termination Date”). 

C.                Tekelec has offered
Employee certain severance benefits and additional consideration as provided in this Agreement that it is not otherwise obligated to provide Employee. 
 D.                Employee desires to receive the severance benefits and additional consideration offered by Tekelec and
understands that her receipt of such is contingent upon, among other things, Employee’s entering into this Agreement and undertaking the obligations set forth herein. 

E.                Tekelec and Employee
are entering into this Agreement for the purpose of resolving any and all claims, matters and disputes regarding, relating to, or arising from Employee’s employment or service with Tekelec. 

AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and conditions set forth herein, the receipt and sufficiency of which are hereby acknowledged, Tekelec and Employee
hereby agree as follows: 
 1.   MUTUAL REPRESENTATIONS, WARRANTIES AND COVENANTS 

Each party hereto represents, warrants and covenants (with respect to itself/herself only) to the other party hereto
that, to its/her respective best knowledge and belief as of the date of each party’s respective signature below: 
 1.1.      Full Power and Authority. It/she has full power and authority to execute, enter into and perform its/her obligations under this Agreement; this Agreement,
after execution by both parties hereto, will be a legal, valid and binding obligation of such party enforceable against it/her in accordance with its terms; it/she will not act or omit to act in any way which would materially

 
interfere with or prohibit the performance of any of its/her obligations hereunder, and no approval or consent other than as has been obtained of any other party is necessary in connection with
the execution and performance of this Agreement. 
 1.2.     Effect of
Agreement. The execution, delivery and performance of this Agreement and the consummation of the transactions hereby contemplated: 
 (a)      will not interfere or conflict with, result in a breach of, constitute a default under or violation of any of the terms, provisions, covenants or conditions of any
contract, agreement or understanding, whether written or oral, to which it/she is a party (including, in the case of Tekelec, its bylaws and articles of incorporation each as amended to date) or to which it/she is bound; 

(b)      will not conflict with or violate any applicable law, rule, regulation, judgment,
order or decree of any government, governmental agency or court having jurisdiction over such party; and 

(c)      has not heretofore been assigned, transferred or granted to another party, or
purported to assign, transfer or grant to another party, any rights, obligations, claims, entitlements, matters, demands or causes of actions relating to the matters covered herein. 
 2.   VOLUNTARY SEPARATION FROM EMPLOYMENT 
 The
parties agree Employee shall be considered to have voluntarily resigned her employment and position as an officer of Tekelec effective as of the Termination Date. Tekelec will pay Employee her final wages earned through the Termination Date and any
accrued but unpaid vacation and sick pay remaining as of the Termination Date on or before the next regularly scheduled payroll date from the Termination Date. 
 3.   SEVERANCE PAYMENTS TO EMPLOYEE 

Severance Payments.   In consideration for the release by Employee set forth herein (including the
release of any and all claims Employee has or may have under the Age Discrimination in Employment Act (“ADEA”) and Older Workers Benefit Protection Act (“OWBPA”)) and Employee’s performance of her obligations under this
Agreement (including but not limited to Employee’s obligations under Sections 7-9 hereof), Tekelec shall pay to Employee, Severance Payment in the aggregate gross amount of $124,999.98, less all applicable withholding taxes, payable in six
(6) equal monthly installments of $20,833.33 each. The first installment of the Severance Payment shall commence on or before the next regularly scheduled payroll date following the Termination Date and such installments shall continue for six
(6) months thereafter (the “Severance Period”) provided Employee has fully complied with the terms and conditions of this Agreement. 
 4.   BENEFITS 

4.1.      Health Care Coverage Continuation. Employee’s current health care
coverage with Tekelec will terminate as of the Termination Date. Following the Termination Date, Employee will 

  
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receive separate notice of her rights to continue coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) under Tekelec’s group health plan(s)
generally available during such period to employees participating in such plans(s) and at levels and contribution rates and with coverage no greater than those provided to such Employee as of the Termination Date. Employee may elect coverage under a
conversion health plan available under Tekelec’s group health plan(s) from the Company’s health insurance carrier if and to the extent she is entitled to do so as a matter of right under federal or state law. Any expense associated with
the continuation of any health care coverage will be the sole responsibility of the Employee. 

4.2.      Other Benefit Plans. Except as otherwise expressly provided in this
Section 4 or as required by applicable law, Employee shall have no right to continue her participation in any Tekelec benefit plan following such employee’s termination. 
 5.   STOCK OPTIONS 
 Exhibit A hereto sets forth
any and all outstanding stock options, warrants and equity incentives and other rights to purchase capital stock or other securities of Tekelec which have been previously issued to Employee and which are outstanding as of the date hereof. Nothing in
this Agreement shall alter or affect any of such outstanding stock options, warrants, equity incentives or rights or Employee’s rights or responsibilities with respect thereto, including but not limited to Employee’s rights to exercise any
of her options, warrants, equity incentives or rights following the Termination Date. The parties agree that Employee’s Camiant options shall continue to vest through December 11, 2011, and that she shall be paid in accordance with the
terms of such option agreements. 
 6.   PRESS RELEASE 

The parties agree that Tekelec will issue a press release and announcement concerning Employee’s separation from
Tekelec in the form attached hereto as Exhibit B on or before the Termination Date. Any comment or statement (whether oral or written) made by either party concerning Employee’s separation from Tekelec will be limited to the contents and
substance of Exhibit B. Except as provided herein, including without limitation as provided in Section 11 below, Employee will make no other comment or statement concerning Employee’s separation from Tekelec unless she obtains
Tekelec’s prior consent in writing. 
 7.   SURVIVAL OF CAMIANT STOCKHOLDER AND EMPLOYEE RESTRICTIVE COVENANTS 

7.1.      Camiant Stockholder Non-Competition and Non-Solicitation Agreement.
Employee understands and expressly acknowledges that she shall continue to be bound by the Non-Competition and Non-Solicitation Agreement entered into as of May 5, 2010 by and between Tekelec and Employee as a stockholder of Camiant, Inc. (the
“Stockholder Non-Competition and Non-Solicitation Agreement”). The Stockholder Non-Competition and Non-Solicitation Agreement was made by Employee as an express condition of the Agreement and Plan of Merger dated as of May 5, 2010 by
and between Tekelec, SPAN, Inc., Camiant, Inc. and Stephen Van Beaver (the “Merger Agreement”) and in connection with the closing of the transactions contemplated by the Merger Agreement. 

  
 - 3 -

 7.2.      Employee Confidentiality,
Intellectual Property, Non-Solicitation, and Non-Competition Agreement. Additionally, Employee understands and expressly acknowledges that she shall continue to be bound by the Confidentiality, Intellectual Property, Non-Solicitation, and
Non-Competition Agreement dated May 5, 2010 by and between Tekelec and Employee that she executed as a condition of her employment with Tekelec (the “Employee Confidentiality, Intellectual Property Agreement”); provided, however, that
the parties agree that the period referenced in Section 5(ii) of the Employee Confidentiality, Intellectual Property Agreement shall be changed and reduced from a period of one year following the end of Employee’s employment relationship
with Tekelec to the period ending February 1, 2012. Accordingly, the parties agree that the applicable period referenced in Section 5(ii) will expire February 1, 2012. The parties agree that Employee’s provision of consultant
services to Tekelec following the Termination Date as provided in Section 13 below will not extend the restricted periods referenced in Section 5(ii) and 10(b) of the Employee Confidentiality, Intellectual Property Agreement, or any
restricted periods contained in side agreements for which Employee is a signatory in connection with Tekelec’s acquisition of Camiant, Inc. Fot the avoidance of doubt, the one-year period referenced in Section 10(b) of the Employee
Confidentiality, Intellectual Property Agreement shall commence on the Termination Date. All Employee’s remaining obligations under the Employee Confidentiality, Intellectual Property Agreement continue in accordance with the terms and
conditions of the Employee Confidentiality, Intellectual Property Agreement. 

7.3.      Obligations Do Not Terminate. Employee’s obligations under both the
Stockholder Non-Competition and Non-Solicitation Agreement and the Employee Confidentiality, Intellectual Property Agreement shall survive termination of her employment with Tekelec in accordance with the terms and conditions of the applicable
agreements, except as provided in Section 7.2 above. Nothing in this Agreement shall be construed as terminating, limiting or otherwise affecting any such agreement or Employee’s obligations thereunder, except as provided in
Section 7.2 above. Without limiting the generality of the foregoing, no time period set forth in this Agreement shall be construed as shortening or limiting the term of any such agreement, which term shall continue as set forth therein, except
as provided in this Section 7.2. 
 7.4.      Tekelec shall be entitled to
all remedies provided in the applicable agreements and otherwise under law in the event of Employee’s breach of any surviving provisions under the Employee Confidentiality, Intellectual Property Agreement. Additionally, should Employee breach
any of the surviving provisions of the agreement, Tekelec shall be relieved of all obligations to Employee under this Agreement and for material breaches shall be entitled to recover from Employee all amounts and other consideration provided to
Employee under this Agreement. Employee understands that her obligations in the Employee Confidentiality, Intellectual Property Agreement are separate, independent and in addition to her obligations under the Stockholder Non-Competition and
Non-Solicitation Agreement. Employee agrees that her separately executed Consulting Agreement with Tekelec shall not affect her obligations under other agreements, including this Agreement, her Employee Confidentiality, Intellectual Property
Agreement (as modified by section 7.2), or the Stockholder Non-Competition and Non-Solicitation Agreement. 

  
 - 4 -

 7.5.      Employee shall provide in a
reasonably satisfactory manner the transitional duties agreed to in writing between the CEO and Employee prior to her Termination Date. 

8.   [Intentionally Left Blank] 
 9.   [Intentionally Left Blank] 
 10. ENFORCEMENT OF SECTIONS 7-9

 Employee hereby acknowledges and agrees that the services rendered by her to Tekelec in the course of her
employment were of a special and unique character, and that breach by her of any provision of the covenants set forth in Sections 7-9 of this Agreement will cause Tekelec irreparable injury and damages. Employee expressly agrees that Tekelec shall
be entitled, in addition to all other remedies available to it whether at law or in equity, to injunctive or other equitable relief to secure their enforcement. 

The parties hereto expressly agree that the covenants contained in Sections 7-9 hereof are reasonable in scope, duration
and otherwise; however, if any of the restraints provided in said covenants are adjudicated to be excessively broad as to geographic area or time or otherwise, said restraint shall be reduced to whatever extent is reasonable and the restraint shall
be fully enforced in such modified form. Any provisions of said covenants not so reduced shall remain in full force and effect. 
 11.
PROHIBITION AGAINST DISPARAGEMENT 
 11.1.    Employee agrees that any communication,
whether oral or written, occurring on or off the premises of Tekelec, made by her or on her behalf (with her endorsement or authorization) at any time after the Effective Date of this Agreement to any person or entity (including, without limitation,
any Tekelec employee, customer, vendor, supplier, any competitor, any media entity and any person associated with any media) which in any way relates to Tekelec (or any of its subsidiaries) or to Tekelec’s or any of its subsidiaries’
directors, officers, management or employees: (a) will be truthful; and (b) will not, directly or indirectly, criticize, disparage, or in any manner undermine the reputation or business practices of Tekelec or its directors, officers,
management or employees. 
 11.2.    Tekelec agrees that any communication, whether oral or
written, occurring on or off the premises of Tekelec, made by any Tekelec officer or any member of Tekelec’s Board at any time after the Effective Date of this Agreement to any person or entity (including, without limitation, any Tekelec
employee, customer, vendor, supplier, any competitor, any media, entity and any person associated with any media) which in any way relates to Employee: (a) will be truthful, and (b) will not directly or indirectly criticize, disparage, or
in any manner undermine the reputation or business practices of Employee. 
 11.3.    The
only exceptions to Sections 11.1 and 11.2 shall be: (a) truthful statements privately made to (i) the CEO of Tekelec, (ii) any member of Tekelec’s Board, (iii) Tekelec’s auditors, (iv) inside or outside counsel of
Tekelec, (v) Employee’s counsel or (vi) Employee’s spouse; (b) truthful statements lawfully compelled and made under oath in connection with a court or 

  
 - 5 -

 
government administrative proceeding; and (c) truthful statements made to specified persons upon and in compliance with prior written authorization from Tekelec’s CEO or Board to
Employee directing her to respond to inquiries from such specified persons. 
 12. COOPERATION 

Employee agrees that for a period of five years commencing with the Termination Date she will cooperate fully and
reasonably with Tekelec in connection with any future or currently pending matter, proceeding, litigation or threatened litigation: (1) directly or indirectly involving Tekelec (which, for purposes of this section, shall include Tekelec and
each of its current and future subsidiaries, successors or permitted assigns); or (2) directly or indirectly involving any director, officer or employee of Tekelec (with regard to matters relating to such person(s) acting in such capacities
with regard to Tekelec business). Such cooperation shall include making herself available upon reasonable notice at reasonable times and places for consultation and to testify truthfully (at Tekelec’s expense for reasonable, pre-approved
out-of-pocket travel costs plus a daily fee equal to one-twentieth of her monthly severance compensation under Section 3 hereof for each full or partial day during which Employee makes herself so available) in any action as reasonably requested
by the CEO or the Board of Directors. Employee further agrees to immediately notify Tekelec’s CEO in writing in the event that she receives any legal process or other communication purporting to require or request her to produce testimony,
documents, information or things in any manner related to Tekelec, its directors, officers or employees, and that she will not produce testimony, documents, information or other things with regard to any pending or threatened lawsuit or proceeding
regarding Tekelec without giving Tekelec prior written notice of the same and reasonable time to protect its interests with respect thereto. Employee further promises that when so directed by the CEO or the Board of Directors, she will make herself
available to attend any such legal proceeding and will truthfully respond to any questions in any manner concerning or relating to Tekelec and will produce all documents and things in her possession or under her control which in any manner concern
or relate to Tekelec. Employee covenants and agrees that she will immediately notify Tekelec’s CEO in writing in the event that she breaches any of the provisions of Sections 7-9 or 11-12 hereof. 

13. CONSULTANT SERVICES 
 Following the Termination Date, Employee shall provide services to Tekelec as reasonably requested by Tekelec’s CEO as a consultant for a period of four (4) months as provided in the Consulting
Agreement entered into by Tekelec and Employee contemporaneously herewith with an effective date of August 1, 2011. 
 14. SOLE
ENTITLEMENT 
 Employee acknowledges and agrees that her sole entitlement to compensation, payments of any
kind, monetary and nonmonetary benefits and perquisites with respect to her prior Tekelec relationship (as an officer and employee) is as set forth in this Agreement, stock option and warrant agreements, COBRA, and such other written agreements and
securities between Tekelec and Employee as may exist or as may be set forth on Exhibit C hereto. 

  
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 15. RELEASE OF CLAIMS 

15.1.  General. Employee does hereby and forever release and discharge Tekelec and the predecessor
corporation of Tekelec as well as the successors, current, prior or future shareholders of record, officers, directors, heirs, predecessors, assigns, agents, employees, attorneys, insurers and representatives of each of them, past, present or
future, from any and all cause or causes of action, actions, judgments, liens, indebtedness, damages, losses, claims, liabilities and demands of any kind or character whatsoever, whether known or unknown, suspected to exist or not suspected to
exist, anticipated or not anticipated, whether or not heretofore brought before any state or federal agency, court or other governmental entity which are existing on or arising prior to the date of this Agreement and which, directly or indirectly,
in whole or in part, relate or are attributable to, connected with, or incidental to the previous employment of Employee by Tekelec, the separation of that employment, and any dealings between the parties concerning Employee’s employment
existing prior to the date of execution of this Agreement, excepting only those obligations expressly recited herein or to be performed hereunder. Nothing contained in this Section 15 shall affect any rights, claims or causes of action which
Employee may have (1) with respect to her outstanding stock options, warrants or other stock subscription rights to purchase Tekelec Common Stock or other securities under the terms and conditions thereof; (2) as a shareholder of Tekelec;
(3) to indemnification by Tekelec, to the extent required under the provisions of Tekelec’s Articles of Incorporation, Tekelec’s Bylaws, the California General Corporation Law, insurance or contracts, with respect to matters relating
to Employee’s prior service as a director, an officer, employee and agent of Tekelec and/or Camiant; (4) with respect to any other written agreement listed on Exhibit C hereto; and (5) to make claims against or seek indemnification or
contribution from anyone not released by the first sentence of this Section 15 with respect to any matter or anyone released by the first sentence of this Section 15 with respect to any matter not released thereby; or (6) with respect
to Tekelec’s performance of this Agreement. Further, Employee waives specifically any and all rights or claims Employee has or may have under the ADEA and/or the OWBPA, and acknowledges that such waiver is given voluntarily in exchange for
certain consideration included in the severance benefits being paid pursuant to this Agreement. 

15.2.  Waiver of Unknown Claims. Employee acknowledges that she is aware that she may hereafter discover
claims or facts different from or in addition to those she now knows or believes to be true with respect to the matters herein released, and she agrees that this release shall be and remain in effect in all respects a complete general release as to
the matters released and all claims relative thereto which may exist or may heretofore have existed, notwithstanding any such different or additional facts. Employee acknowledges that she has been informed of Section 1542 of the Civil Code of
the State of California, and does hereby expressly waive and relinquish all rights and benefits which she has or may have under said Section (or any similar state statute), which reads as follows: 

“A general release does not extend to claims which the creditor does not know or suspect to exist
in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” 

  
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 15.3.    Post-Employment Release. Employee agrees
that as a condition of this Agreement and the payments and consideration provided by Tekelec pursuant to this Agreement, that following her execution of this Agreement she will execute another release of any and all claims arising through the
Termination Date on or within five (5) business days following the Termination Date. The release Employee agrees to execute is attached hereto as Exhibit D, and shall be executed and returned to Tekelec by Employee no earlier than the
Termination Date or no later than five (5) days following the Termination Date. 

15.4.    Covenant Not to Sue on Matters Released. Employee covenants that she will not make,
assert or maintain against any person or entity that Employee has released in this Agreement, any claim, demand, action, cause of action, suit or proceeding arising out of or in connection with the matters herein released, including but not limited
to any claim or right under the ADEA, the OWBPA, or any other federal or state statute or regulation. Employee represents and warrants that she has not assigned or transferred, purported to assign or transfer, and will not assign or transfer, any
matter or claim herein released. Employee represents and warrants that she knows of no other person or entity which claims an interest in the matters or claims herein released. Employee agrees to, and shall at all times, indemnify and hold harmless
each person and entity that Employee has released in this Agreement against any claim, demand, damage, debt, liability, account, action or cause of action, or cost or expense, including attorneys’ fees, resulting or arising from any breach of
the representations, warranties and covenants made herein. 
 16. ASSIGNMENT 

Employee represents and warrants that she has not heretofore assigned, transferred or granted or purported to assign,
transfer or grant any claims, entitlement, matters, demands or causes of action herein released, disclaimed, discharged or terminated, and agrees to indemnify and hold harmless Tekelec from and against any and all costs, expense, loss or liability
incurred by Tekelec as a consequence of any such assignment, transfer or grant. 
 17. EMPLOYEE REPRESENTATIONS 

From the period beginning on the date Employee received this Agreement to the Effective Date, Employee represents and
warrants that she has not acted or omitted to act in any respect which directly or indirectly would have constituted a violation of Sections 7-9 or 11-12 herein had this Agreement then been in effect. 

18. MISCELLANEOUS 
 18.1.    Notices. All notices and demands referred to or required herein or pursuant hereto shall be in writing, shall specifically reference this Agreement and shall be deemed
to be duly sent and given upon actual delivery to and receipt by the relevant party (which notice, in the case of Tekelec, must be from an officer of Tekelec) or five days after deposit in the U.S. mail by certified or registered mail, return
receipt requested, with postage prepaid, addressed as follows (if, however, a party has given the other party due notice of another address for the sending of notices, then future notices shall be sent to such new address): 

  
 - 8 -

					
	 (a)
	 	 If to Tekelec:
	  	 Tekelec

		 		  	 5200 Paramount Parkway

		 		  	 Morrisville, North Carolina 27560

		 		  	 Attn: Chief Executive Officer

			
		 	 With a copy to:
	  	 General Counsel Tekelec

		 		  	 5200 Paramount Parkway

		 		  	 Morrisville, North Carolina 27560

		 		  	             -and-

		 		  	 Katherine Ashton

		 		  	 Bryan Cave LLP

		 		  	 120 Broadway, Suite 300

		 		  	 Santa Monica, California 90401-2386

			
	 (b)
	 	 If to Employee:
	  	 Yusun (Susie) Kim Riley

		 		  	  

		 		  	  

 18.2.    Legal Advice and Construction of Agreement. Both
Tekelec and Employee have received (or have voluntarily and knowingly elected not to receive) independent legal advice with respect to the advisability of entering into this Agreement and with respect to all matters covered by this Agreement and
neither has been entitled to rely upon or has in fact relied upon the legal or other advice of the other party or such other party’s counsel (or employees) in entering into this Agreement. 

18.3.    Parties’ Understanding. Tekelec and Employee state that each has carefully read
this Agreement, that it has been fully explained to it/her by its/her attorney (or that it/she has voluntarily and knowingly elected not to receive such explanation), that it/she fully understands its final and binding effect, that the only promises
made to it/her to sign the Agreement are those stated herein, and that it/she is signing this Agreement voluntarily. 
 18.4.    Recitals and Section Headings. Each term of this Agreement is contractual and not merely a recital. All recitals are incorporated by reference into this Agreement.
Captions and section headings are used herein for convenience only, are not part of this Agreement and shall not be used in interpreting or construing it. 
 18.5.    Entire Agreement. Except as provided herein, including without limitation, as provided in Sections 7 and 13 above, this Agreement constitutes a single integrated
contract expressing the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and discussions with respect to the subject matter hereof. The parties
understand and agree that the Stockholder Non-Competition and Non-Solicitation Agreement, the Employee Confidentiality, Intellectual Property Agreement, all other written agreements between Employee and Tekelec, and all other written agreements made
in connection with Tekelec’s acquisition of Camiant, Inc. are separate from this Agreement and, subject to the terms and conditions of each such agreement, shall survive the execution of this Agreement, and nothing contained in this Agreement
shall be construed as affecting the rights or obligations of either party set forth in such agreements. 

  
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 18.6.    Severability. In the event any provision
of this Agreement or the application thereof to any circumstance shall be determined by arbitration pursuant to Section 18.10 of this Agreement or held by a court of competent jurisdiction to be invalid, illegal or unenforceable, or to be
excessively broad as to time, duration, geographical scope, activity, subject or otherwise, it shall be construed to be limited or reduced so as to be enforceable to the maximum extent allowed by applicable law as it shall then be in force, and if
such construction shall not be feasible, then such provision shall be deemed to be deleted herefrom in any action before that court, and all other provisions of this Agreement shall remain in full force and effect. 

18.7.    Amendment and Waiver. This Agreement and each provision hereof may be amended,
modified, supplemented or waived only by a written document specifically identifying this Agreement and signed by each party hereto. Except as expressly provided in this Agreement, no course of dealing between the parties hereto and no delay in
exercising any right, power or remedy conferred hereby or now or hereafter existing at law, in equity, by statute or otherwise, shall operate as a waiver of, or otherwise prejudice, any such rights, power or remedy. 

18.8.    Cumulative Remedies. None of the rights, powers or remedies conferred herein shall be
mutually exclusive, and each such right, power or remedy shall be cumulative and in addition to every other right, power or remedy, whether conferred herein or now or hereafter available at law, in equity, by statute or otherwise. 

18.9.    Specific Performance. Each party hereto may obtain specific performance to enforce
its/her rights hereunder and each party acknowledges that failure to fulfill its/her obligations to the other party hereto would result in irreparable harm. 
 18.10.  Arbitration. Except for the right of either party to apply to a court of competent jurisdiction for a Temporary Restraining Order to preserve the status quo or prevent irreparable
harm, any dispute or controversy between Tekelec and Employee under this Agreement involving its interpretation or the obligations of a party hereto shall be determined by binding arbitration in accordance with the commercial arbitration rules of
the American Arbitration Association, in the Commonwealth of Massachusetts. 
 Arbitration may be conducted by
one impartial arbitrator by mutual agreement. In the event that the parties are unable to agree on a single arbitrator within 30 days of first demand for arbitration, the arbitration shall proceed before a panel of three arbitrators, one of whom
shall be selected by Tekelec and one of whom shall be selected by Employee, and the third of whom shall be selected by the two arbitrators selected. All arbitrators are to be selected from a panel provided by the American Arbitration Association.
The arbitrators shall have the authority to permit discovery, to the extent deemed appropriate by the arbitrators, upon request of a party. The arbitrators shall have no power or authority to add to or, except as otherwise provided by
Section 18.6 hereof, to detract from the agreements of the parties, and the prevailing party shall recover costs and attorneys’ fees incurred in arbitration. The arbitrators shall have the authority to grant injunctive relief in a form
substantially similar to that which would otherwise be granted by a court of law. The 

  
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arbitrators shall have no authority to award punitive or consequential damages. The resulting arbitration award may be enforced, or injunctive relief may be sought, in any court of competent
jurisdiction. Any action arising out of or relating to this Agreement may be filed only in the state or federal courts located in the Commonwealth of Massachusetts. 

18.11.  North Carolina Law and Location. This Agreement was negotiated, executed and delivered within
the State of North Carolina, and the rights and obligations of the parties hereto shall be construed and enforced in accordance with and governed by the internal (and not the conflict of laws) laws of the State of North Carolina applicable to the
construction and enforcement of contracts between parties resident in North Carolina which are entered into and fully performed in North Carolina. Any action or proceeding arising out of, relating to or concerning this Agreement that is not subject
to the arbitration provisions set forth in Section 18.10 above shall be filed in the state courts of the County of Wake, State of North Carolina or in a United States District Court for the Eastern District of North Carolina and in no other
location. The parties hereby waive the right to object to such location on the basis of venue. 

18.12.  Attorneys’ Fees. In the event a lawsuit is instituted by either party concerning a dispute
under this Agreement, the prevailing party in such lawsuit shall be entitled to recover from the losing party all reasonable attorneys’ fees, costs of suit and expenses (including the reasonable fees, costs and expenses of appeals), in addition
to whatever damages or other relief the injured party is otherwise entitled to under law or equity in connection with such dispute. 
 18.13.  Force Majeure. Neither Tekelec nor Employee shall be deemed in default if its/her performance of obligations hereunder is delayed or become impossible or impracticable by reason
of any act of God, war, fire, earthquake, strike, civil commotion, epidemic, or any other cause beyond such party’s reasonable control. 
 18.14.  Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 
 18.15.  Successors and Assigns. Neither party may assign this Agreement or any
of its rights or obligations hereunder (including, without limitation, rights and duties of performance) to any third party or entity, and this Agreement may not be involuntarily assigned or assigned by operation of law, without the prior written
consent of the non-assigning party, which consent may be given or withheld by such non-assigning party in the sole exercise of its discretion, except that Tekelec may assign this Agreement to a corporation acquiring: (1) 50% or more of
Tekelec’s capital stock in a merger or acquisition; or (2) all or substantially all of the assets of Tekelec in a single transaction; and except that Employee may transfer or assign his rights under this Agreement voluntarily,
involuntarily or by operation of law upon or as a result of her death to her heirs, estate and/or personal representative(s). Any prohibited assignment shall be null and void, and any attempted assignment of this Agreement in violation of this
section shall constitute a material breach of this Agreement and cause for its termination by and at the election of the other party hereto by notice. This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and
each person or entity released pursuant to Section 15 hereof and, except as otherwise provided herein, their respective legal successors and permitted assigns. 

  
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 18.16. Payment Procedure. All payments by Tekelec to Employee or by
Employee to Tekelec due hereunder may be by, at the paying party’s election, cash, wire transfer or check. 

18.17. Survival. The definitions, representations and warranties herein as well as obligations set forth in
Sections 7-16 shall survive any termination of this Agreement for any reason whatsoever. 
 18.18. No
Admission. Neither the entry into this Agreement nor the giving of consideration hereunder shall constitute an admission of any wrongdoing by Tekelec or Employee. 

18.19. Limitation of Damages. Except as expressly set forth herein, in any action or proceeding arising out of,
relating to or concerning this Agreement, including any claim of breach of contract, liability shall be limited to compensatory damages proximately caused by the breach and neither party shall, under any circumstances, be liable to the other party
for consequential, incidental, indirect or special damages, including but not limited to lost profits or income, even if such party has been apprised of the likelihood of such damages occurring. 

18.20. Effectiveness. This Agreement shall become effective upon execution by the later of the parties hereto to
execute this Agreement. 
 19. 21 DAY REVIEW PERIOD; RIGHT TO REVOKE 

Employee acknowledges that she was advised in writing to consult with an attorney prior to executing this Agreement and
represents and warrants to Tekelec that she has done so, and further acknowledges that she has been given a period of 21 days within which to consider the terms and provisions of this Agreement with her attorney. If Employee has executed and
delivered to Tekelec this Agreement prior to the expiration of such 21-day period, then in doing so, Employee acknowledges that she has unconditionally and irrevocably waived her right to that unexpired portion of such 21-day period. The parties
agree that any changes or modifications, whether or not material, made to this Agreement will not restart the 21-day period. In addition, Employee shall have the right to revoke this Agreement for a period of seven days following the date on which
this Agreement is signed by sending written notification of such revocation directly to each of Tekelec, General Counsel of Tekelec and Katherine Ashton at the addresses specified in Section 18.1, supra, via hand delivery. 

 

			
	TEKELEC	 	YUSUN (SUSIE) KIM RILEY
		
	 By:         /s/ Judith
Barnett                                        

	 	 Signature:  /s/ Yusun (Susie) Kim
Riley                    

	 Print Name:    Judith
Barnett                                    
	 	
	 Print Title:      VP Human
Resources                       
	 	
	 Date:               July
20                                  , 20 11 
	 	 Date:              19th
July                                  , 20
11   

  
 - 12 -

 EXHIBIT A 
 OUTSTANDING STOCK PURCHASE RIGHTS 
  

									
	 Type of Security
 [e.g., stock option, SAR, RSU
 warrant,
etc.]
	 	Date Issued	 	 Maximum
 Number of
 Shares

Currently
Purchasable or
 Issuable
	 	 Purchase Price
 Per Share
	 	 Termination
 Date

 EXHIBIT B 
 PRESS RELEASE 

 EXHIBIT C 
 LIST OF OTHER AGREEMENTS (Pursuant to §§14 and 15) 
  

	1.	     Agreement and Plan of Merger dated as of May 5, 2010 by and between Tekelec, SPAN Corp., Inc., Camiant, Inc. and
Stephen Van Beaver 

  

	2.	     Escrow Agreement dated as of May 7, 2010 by and between Tekelec, Camiant, Inc., U.S. Bank and Stephen Van Beaver

  

	3.	     Side Agreement dated as of May 5, 2010 by and between Tekelec, SPAN Corp., Inc., Camiant, Inc. and Yusun Kim Riley

  

	4.	     Restricted Stock Unit Award Agreement dated as of May 5, 2010 by and between Tekelec and Yusun Kim Riley

 EXHIBIT D 
 POST-EMPLOYMENT RELEASE AGREEMENT 
 THIS
POST-EMPLOYMENT RELEASE AGREEMENT (the “Release Agreement”) is entered into by and between TEKELEC, a California corporation with its principal place of business in Morrisville, North Carolina (“Tekelec”) and YUSUN (SUSIE) KIM
RILEY (“Employee”), and shall become effective when executed by both parties hereto (the “Effective Date”). 

RECITALS 
 A.      Employee and Tekelec entered into a Employment Separation Agreement effective June     , 2011 (the “Separation Agreement”) pursuant to
which Tekelec has agreed to provide certain severance benefits and additional consideration that it is not otherwise obligation to provide Employee in exchange for Employee’s execution of the Separation Agreement and her execution of this
Release Agreement. 
 B.      Employee’s position as an officer and employee
of Tekelec ended on July 31, 2011 (the “Termination Date”). 

C.      Tekelec and Employee are entering into this Release Agreement for the purpose of
resolving any and all claims, matters and disputes regarding, relating to, or arising from Employee’s employment or service with Tekelec, including without limitation any and all claims that may have arose or accrued after Employee’s
execution of the Separation Agreement. 
 AGREEMENT 

1.      Release of Claims.    Employee does hereby and forever
release and discharge Tekelec and the predecessor corporation of Tekelec as well as the successors, current, prior or future shareholders of record, officers, directors, heirs, predecessors, assigns, agents, employees, attorneys, insurers and
representatives of each of them, past, present or future, from any and all cause or causes of action, actions, judgments, liens, indebtedness, damages, losses, claims, liabilities and demands of any kind or character whatsoever, whether known or
unknown, suspected to exist or not suspected to exist, anticipated or not anticipated, whether or not heretofore brought before any state or federal agency, court or other governmental entity which are existing on or arising prior to the date of
this Release Agreement and which, directly or indirectly, in whole or in part, relate or are attributable to, connected with, or incidental to the previous employment of Employee by Tekelec, the separation of that employment, and any dealings
between the parties concerning Employee’s employment existing prior to the date of execution of this Release Agreement, excepting only those obligations expressly recited herein or to be performed hereunder or under the Separation Agreement.
Nothing contained in this Section 1 shall affect any rights, claims or causes of action which Employee may have (1) with respect to her outstanding stock options, warrants or other stock subscription rights to purchase Tekelec Common Stock
or other securities under the terms and conditions thereof; (2) as a 

 
shareholder of Tekelec; (3) to indemnification by Tekelec, to the extent required under the provisions of Tekelec’s Articles of Incorporation, Tekelec’s Bylaws, the California
General Corporation Law, insurance or contracts, with respect to matters relating to Employee’s prior service as a director, an officer, employee and agent of Tekelec; (4) with respect to any other written agreement listed on Exhibit C of
the Separation Agreement; and (5) to make claims against or seek indemnification or contribution from anyone not released by the first sentence of this Section 1 with respect to any matter or anyone released by the first sentence of this
Section 1 with respect to any matter not released thereby; or (6) with respect to Tekelec’s performance under the Separation Agreement or this Release Agreement. Further, Employee waives specifically any and all rights or claims
Employee has or may have under the ADEA and/or the OWBPA, and acknowledges that such waiver is given voluntarily in exchange for certain consideration included in the severance benefits being paid pursuant to the Separation Agreement and this
Release Agreement. 
 2.      Waiver of Unknown
Claims.    Employee acknowledges that she is aware that she may hereafter discover claims or facts different from or in addition to those she now knows or believes to be true with respect to the matters herein released, and
she agrees that this release shall be and remain in effect in all respects a complete general release as to the matters released and all claims relative thereto which may exist or may heretofore have existed, notwithstanding any such different or
additional facts. Employee acknowledges that she has been informed of Section 1542 of the Civil Code of the State of California, and does hereby expressly waive and relinquish all rights and benefits which she has or may have under said Section
(or any similar state statute), which reads as follows: 
 “A general release does not
extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” 

3.      Covenant Not to Sue on Matters Released.    Employee
covenants that she will not make, assert or maintain against any person or entity that Employee has released in this Agreement, any claim, demand, action, cause of action, suit or proceeding arising out of or in connection with the matters herein
released, including but not limited to any claim or right under the ADEA, the OWBPA, or any other federal or state statute or regulation. Employee represents and warrants that she has not assigned or transferred, purported to assign or transfer, and
will not assign or transfer, any matter or claim herein released. Employee represents and warrants that she knows of no other person or entity which claims an interest in the matters or claims herein released. Employee agrees to, and shall at all
times, indemnify and hold harmless each person and entity that Employee has released in this Agreement against any claim, demand, damage, debt, liability, account, action or cause of action, or cost or expense, including attorneys’ fees,
resulting or arising from any breach of the representations, warranties and covenants made herein. 

4.      Adequacy of Consideration.    Employee understands and
acknowledges that the consideration provided herein and in the Separation Agreement is discretionary in nature and is not required in the absence of this Release Agreement and the Separation Agreement and constitutes adequate consideration for this
Release Agreement. 

 5.      21 Day Review Period; Right to
Revoke.    Employee acknowledges that she was advised in writing to consult with an attorney prior to executing this Release Agreement and represents and warrants to Tekelec that she has done so, and further acknowledges that
she has been given a period of 21 days within which to consider the terms and provisions of this Release Agreement with her attorney. If Employee has executed and delivered to Tekelec this Release Agreement prior to the expiration of such 21-day
period, then in doing so, Employee acknowledges that she has unconditionally and irrevocably waived her right to that unexpired portion of such 21-day period. The parties agree that any changes or modifications, whether or not material, made to this
Release Agreement will not restart the 21-day period. In addition, Employee shall have the right to revoke this Release Agreement for a period of seven days following the date on which this Agreement is signed by sending written notification of such
revocation directly to each of Tekelec, General Counsel of Tekelec and Katherine Ashton at the addresses specified in Section 18.1 of the Separation Agreement via hand delivery. 

6.      Effectiveness.    This Release Agreement shall become
effective upon the execution by the later of the parties hereto to execute this Release Agreement. 
  

					
	TEKELEC	 		 	YUSUN (SUSIE) KIM RILEY
			
	
By:                             
                                         
        
	 		 	
Signature:                           
                                 

	
Print Name:                          
                                       

	 		 	
	
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Date:                            
                                     , 20  
  
	 		 	
Date:                            
                             , 20    

 EXHIBIT E 
 EXCEPTIONS (Pursuant to §17)

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