Document:

Agreement and Mutual Release

 Exhibit 10.39 
  
 AGREEMENT AND MUTUAL RELEASE 
  
 This AGREEMENT AND MUTUAL RELEASE (“Agreement”) is made and entered into this 2nd day of
September, 2005 (the “Effective Date”), by and between CellStar (Asia) Corporation Limited, a Hong Kong company (“CellStar Asia”), CellStar Corporation, a Delaware corporation and parent company of CellStar International
Corporation/Asia, a Delaware corporation (“CellStar”), and Hong An-Hsien (the “Horng”). 
  
 WITNESSETH: 
  
 WHEREAS, Horng is employed as chairman of CellStar Asia, pursuant to that one certain Employment Agreement dated effective as of July 5, 2002 (the “Employment Agreement”) by and between Horng, CellStar Asia and
CellStar; and 
  
 WHEREAS, Horng serves as a member of
CellStar Asia’s board of directors, and as a director of various subsidiary and affiliated companies; and 
  
 WHEREAS, Horng, by and through a new corporation to be designated by Horng prior to the closing (“Newco”), has entered into a Stock
Purchase Agreement, dated as of August 24, 2005, (the “SPA”) under the terms of which Newco is purchasing a majority of the shares of capital stock of CellStar Asia; and 
  
 WHEREAS, since following the closing of the transactions contemplated and described in the SPA, CellStar will not
retain any interest in CellStar Asia and, as a result, desires to terminate the Employment Agreement and be released of any and all obligations thereunder; and 
  

WHEREAS, the Parties desire to finally, fully and completely resolve all disputes that may now exist or may hereafter arise between them
relating to the employment relationship between CellStar Asia and Horng, and any and all matters concerning or in any manner relating to the Employment Agreement, and all benefits and compensation to which Horng may be entitled in connection with
his employment by or service on the board of directors of CellStar Asia and its subsidiaries and affiliates; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, including the closing of the transactions contemplated and described in the SPA, the Parties agree as follows: 
  
 1. Termination of Employment Agreement. The parties hereby agree to terminate the Employment Agreement as of the
Effective Date. Following closing, Horng and CellStar Asia may enter into such employment arrangements, as they deem appropriate, with no continuing liability or obligation of CellStar. 

 2. Continuing Non-Competition and Confidentiality Obligations. The Non-Competition and
Confidentiality obligations of Horng set forth in Article 2 of the Employment Agreement shall continue in full force and effect to the extent allowed by law for a period of eighteen (18) months; provided, however, that Horng shall be allowed to
engage in “Competing Business” (as that term is defined in the Employment Agreement) within the Asia Pacific Region. 
  
 3. Stock Option Rights. Upon termination of the Employment Agreement, all vested stock options previously granted to Horng under the CellStar
Corporation Long-Term Incentive Plan shall be exercisable in accordance with the terms of the applicable Incentive Stock Option Agreements. Any unvested stock options shall forfeit to CellStar in accordance with the terms of the applicable Incentive
Stock Option Agreements. 
  
 4. Release By Horng. Horng
hereby releases CellStar and its employees, officers, agents, directors, stockholders and affiliates (collectively referred to as “Releasees”), from any and all claims, causes of action, losses, obligations, liabilities,
damages, judgments, costs, expenses (including attorneys fees) of any kind whatsoever, which arise out of actions taken by CellStar through its Directors or executive officers of CellStar who acted in good faith and had no reasonable cause to
believe their conduct was unlawful or illegal, including, but not limited to, claims under federal, state or local constitution, statute, law, ordinance or regulation, through the Effective Date, including, but not limited to, disputes or claims
arising out of Horng’s Employment Agreement, hiring, employment or termination of such Employment Agreement, including any disputes regarding compensation, bonus, stock, or options. This Release includes, but is not limited to, all claims,
whether arising in contract or allegations of tort, common law or assertion of federal or state statutory rights, encompassing claims of age discrimination, claims for wrongful discharge, breach of express or implied contract or implied covenant of
good faith and fair dealing, defamation, and any claims or benefits under PRC or Hong Kong national, provincial and local laws, ordinance or regulations, as well as any expenses, costs or attorneys fees. Horng does not release his right to enforce
the terms of this Agreement. For purposes of this Agreement the term “Affiliate” means a party, person or entity that, directly, or indirectly through one or more intermediaries, controls, is controlled
by, or is under common control with, such party, where “control”, “controlled by” and “under common control with” means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such party, whether through the ownership of voting securities, by voting trust, contract or similar arrangement, as trustee or executor, or otherwise. 
  
 5. Representations by Horng. Horng hereby represents and warrants to CellStar that he has fully cooperated with the
review of certain issues involving the financial accounts of Shanghai CellStar and Cellstar Asia and their affiliates, and has fully disclosed to CellStar’s executive management and Audit Committee of its Board of Directors all relevant and
material information known to him in connection with such review up to the date hereof. Horng further represents and warrants to CellStar that, during the course of his employment with CellStar Asia, he has not knowingly engaged in any conduct that
was unlawful or illegal, and he accepted no bribes, kickbacks or commissions from customers or vendors of Shanghai CellStar or CellStar Asia. 
  

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 6. Release By CellStar. CellStar hereby releases Horng, from any and all claims, causes of action,
losses, obligations, liabilities, damages, judgments, costs, expenses (including attorneys’ fees) of any kind whatsoever which arise out of actions taken by Horng while serving CellStar Asia and/or Cellstar Corporation and acting in good faith,
and which he had no reasonable cause to believe the conduct was unlawful or illegal, including, but not limited to, claims under federal, state or local constitution, statute, law, ordinance or regulation provided, however, CellStar does not release
its right to enforce the terms of this Agreement. 
  
 7.
Assistance. Horng shall be available during normal business hours to testify (and preparing to testify) as a witness in any proceeding or otherwise providing information or reasonable assistance to CellStar in connection with any claim or suit.
Horng shall cooperate within reason with CellStar and at Cellstar’s expense regarding any pending or subsequently-filed litigation, claims or other disputed items involving CellStar Asia and/or Shanghai CellStar that relate to matters within
the knowledge or responsibility of Horng during his employment. Horng shall (i) meet with CellStar’s representatives, its counsel or other designees at mutually convenient times and places with respect to any items within the scope of this
provision; and (ii) provide truthful testimony regarding same to any court, agency or other adjudicatory body . In connection with the provision of the above assistance, Horng shall be entitled to representation at all times by an attorney of
his choosing, and shall be reimbursed on a timely basis for such reasonable legal expenses incurred as a condition of such continuing cooperation. The assistance provided hereunder may be provided by Horng at the principal offices of CellStar Asia,
unless otherwise required by law or otherwise agreed by Horng. As a reciprocal obligation of CellStar hereunder, CellStar shall, upon the approval of the Audit Committee of its board of directors, make available to Horng and his designated
representatives within 45 days from the date hereof and subject to their execution of a confidentiality agreement satisfactory to the Committee, a copy of such information regarding the Committee’s conclusions resulting from review of accounts
receivable issues related to the PRC operations as was provided to the Board of Directors of CellStar. 
  
 8. Breach. In the event either party breaches any term or provision of this Agreement, the non-breaching party may bring suit in a court of
competent jurisdiction to enforce any term or provision of this Agreement, and in the event said court determines that a party has breached or failed to perform any material term or provision of this Agreement, damages and injunctive relief may be
issued against such party. 
  
 9. Recovery Of Attorneys
Fees. If either party seeks and obtains judicial or equitable relief for any violation of this Agreement by the breaching party, the non-breaching party shall be entitled to recover from the breaching party its costs and reasonable
attorneys’ fees expended in such effort. 
  
 10.
Notices. All notices and other communications hereunder will be in writing. Any notice or other communication hereunder shall be deemed duly given if it is sent by registered or certified mail, return receipt requested, postage prepaid, and
addressed to the intended recipient as set forth: 
  

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 If to CellStar: 
  

CellStar Corporation 
  
 1730 Briercroft Court 
  
 Carrollton, Texas 75006 U.S.A. 
  
 Fax: 972-466-5030 
  
 Attn: General Counsel 
  
 If to CellStar Asia: 
  
 CellStar (Asia) Corporation Limited 
  

	 	

  

	 	

  

	 	

  
 If to Horng: 
  
 c/o Stephan, Oringher, Richman & Theodora 
     2029 Century Park East, Sixth Floor

     Los Angeles, California 90067 
     Attention: Martha Shen-Urquidez 
     Fax: (310) 551-0283 
  

Any party may send any notice or other communication hereunder to the intended recipient at the address set forth above using any other means (including personal
delivery, expedited courier, messenger services, telecopy, telex, ordinary mail or electronic mail), but no such notice or other communication shall be deemed to have been duly given unless and until it is actually received by the intended
recipient. Any party may change the address to which notices and other communications hereunder are to be delivered by giving the other party notice in the manner set forth herein. 
  
 11. Joint Preparation. The Parties acknowledge that this Agreement has been drafted, prepared, negotiated and agreed
to jointly, with advice of each Party’s respective legal counsel, and to the extent that any ambiguity should appear, now, or at any time in the future, latent or apparent, such ambiguity shall not be resolved or construed against either Party.

  
 12. Non-Admission. This Agreement shall not in any way
be construed as an admission by any Party of any acts of wrongdoing, violation of any statute, law or legal or contractual right. CellStar, CellStar Asia and Horng acknowledge that each has willingly to entered into this Agreement described herein.

  
 13. Review By Counsel. The Parties acknowledge that
they have thoroughly discussed all aspects of this Agreement and the effect of same with their respective legal counsel, 

  

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that they have had a reasonable time to review the Agreement, that they fully understand all the provisions of the Agreement and are voluntarily entering
into this Agreement. The parties further represent that they have not transferred or assigned to any person or entity any claim involving the other party or any portion thereof or interest therein. 
  
 14. Execution In Multiple Counterparts. This Agreement may be executed
in multiple counterparts, whether or not all signatories appear on these counterparts, and each counterpart shall be deemed an original for all purposes. This Agreement shall be deemed performable by all Parties in Hong Kong and the construction and
enforcement of this Agreement shall be governed by Hong Kong law without regard to its conflicts of law rules. 
  
 I ACKNOWLEDGE THAT I HAVE CAREFULLY READ THE FOREGOING AGREEMENT, THAT I UNDERSTAND ALL OF ITS TERMS, AND THAT I AM ENTERING INTO IT VOLUNTARILY.

  
 IN WITNESS WHEREOF, each of the Parties has caused
this Agreement to be executed as of the day and year first above written. 
  

	
	
	 /s/ Horng An-Hsien

	 HorngAn-Hsien .

  
  

			
	CellStar Corporation
		
	 By:
	 	 /s/ Elaine Flud Rodriguez

	 Name:
	 	 Elaine Flud Rodriguez

	 Title:
	 	 Senior Vice President

  
  

			
	CellStar (Asia) Corporation Limited
		
	 By:
	 	 /s/ Elaine Flud Rodriguez

	 Name:
	 	 Elaine Flud Rodriguez

	 Title:
	 	 Director 

  

 5Extension Letter - CellStar Corp and Wells Fargo Foothill

 Exhibit 10.40 
  
 As of September 1, 2005 
  
 CELLSTAR CORPORATION, 
 as Administrative Borrower 
 1730 Briercroft Court 
 Carrollton, Texas 75006 
  
 Ladies and Gentlemen: 
  
 Reference is hereby made to that certain Loan and Security Agreement (as amended, restated, supplemented or otherwise modified from time to time, the
“Loan Agreement”), dated as of September 28, 2001, by and among CellStar Corporation, a Delaware corporation (the “Parent”), certain of its Subsidiaries (as defined therein) signatory thereto (together with the
Parent, each a “Borrower” and collectively the “Borrowers”), the lenders signatory thereto (“Lenders”) and Wells Fargo Foothill, Inc., as Administrative Agent for the Lenders (the
“Agent”). All capitalized terms not otherwise defined herein shall have the meanings set forth in the Loan Agreement. 
  
 Pursuant to that certain Waiver dated as of July 15, 2005 (the “Previous Waiver”), the Agent and the Required Lenders waived the
Specified Events of Default (as defined in the Previous Waiver) subject to the satisfaction of certain conditions including, without limitation, the following: 
  

        (a) Parent shall file its Form 10-Q Quarterly Report for the fiscal quarters ended February 28,
2005 and May 31, 2005 on or before September 6, 2005; and 
  
         (b) Parent shall deliver the financial statements for the fiscal quarters ended February 28, 2005 and May 31, 2005 as required by Section 6.3(a) of the Loan Agreement on or
before September 6, 2005. 
  
 The Borrowers anticipate that
the Parent will not satisfy the conditions set forth in clauses (a) and (b) above (the “Specified Conditions”) on or before September 6, 2005 as required in the Previous Waiver. As such, the Borrowers have requested
that the Agent and Required Lenders extend the deadline for satisfaction of the Specified Conditions until October 18, 2005. 
  
 Subject to the terms and conditions set forth in this letter (this “Extension Letter”), the Agent and the Required Lenders hereby extend
the deadline for satisfaction of the Specified Conditions until October 18, 2005. 
  
 Each Borrower hereby acknowledges and agrees that the failure to satisfy the Specified Conditions on or before October 18, 2005 shall cause this Extension Letter to be of no further effect. 

 Each of the Borrowers hereby represents and warrants that (i) as of the date hereof, the holders of
the Subordinated Notes (or the trustee on behalf of the holders of the Subordinated Notes) have not exercised any remedies against any Loan Party with respect to the Specified Events of Default or given notice of default pursuant to
Section 6.01(c) of the Indenture with respect to the Specified Events of Default and (ii) after giving effect hereto, no event has occurred and is continuing which constitutes an Event of Default or would constitute an Event of Default but
for the requirement that notice be given or time elapse or both. 
  
 This Extension Letter shall not waive any other requirement or hinder, restrict or otherwise modify the rights and remedies of the Agent and the Lenders following the occurrence of any other failure to comply with the obligations under the
Subordinated Notes, or the occurrence of any other Event of Default under the Loan Agreement (including the occurrence of any other failure to comply with Section 6.3). 
  
 Except as otherwise expressed herein, the text of the Loan Agreement and the other Loan Documents shall remain in full force
and effect, and the Agent and the Lenders hereby reserve the right to require strict compliance in the future with all terms and conditions of the Loan Agreement and the other Loan Documents. 
  
 This Extension Letter may be executed in any number of counterparts, each of
which shall be deemed an original but all of which, when taken together, shall constitute one in the same agreement. Delivery of a counterpart hereto by facsimile transmission or by transmission of an Adobe portable document format file (also known
as a “PDF file”) shall be as effective as delivery of an original counterpart hereto. 
  
 This Extension Letter shall be deemed to be made pursuant to the laws of the State of Georgia with respect to agreements made and to be performed wholly
in the State of Georgia, and shall be construed, interpreted, performed and enforced in accordance therewith. 
  
 This Extension Letter shall constitute a Loan Document for all purposes. 
  
 [the remainder of this page intentionally left blank] 
  

 2 

							
	AGENT AND LENDERS:	  	WELLS FARGO FOOTHILL, INC., a
California corporation, as Agent and as a Lender
			
	 	  	By:	  	/s/ Robert Bernier
	 	  	 	  	Name:	  	Robert Bernier
	 	  	 	  	Title:	  	VP
		
	 	  	FLEET CAPITAL CORPORATION, as a
Lender
			
	 	  	By:	  	/s/ H. Michael Wills
	 	  	 	  	Name:	  	H. Michael Wills
	 	  	 	  	Title:	  	Senior Vice President
		
	 	  	TEXTRON FINANCIAL
CORPORATION, as a Lender
			
	 	  	By:	  	/s/ Stuart A. Hall
	 	  	 	  	Name:	  	Stuart A. Hall
	 	  	 	  	Title:	  	Senior Account Executive
		
	 	  	PNC BANK NATIONAL
ASSOCIATION, as a Lender
			
	 	  	By:	  	 
	 	  	 	  	Name:	  	 
	 	  	 	  	Title:	  	 

 Acknowledged and agreed to 
 as of the date first written above: 
  

							
	BORROWERS:	  	CELLSTAR CORPORATION, a
Delaware corporation
			
	 	  	By:	  	/s/ Elaine Flud Rodriguez
	 	  	 	  	Name:	  	Elaine Flud Rodriguez
	 	  	 	  	Title:	  	Sr. VP and General Counsel
		
	 	  	CELLSTAR, LTD., a Texas limited
partnership
			
	 	  	By:	  	National Auto Center, Inc., its General Partner
			
	 	  	By:	  	/s/ Elaine Flud Rodriguez
	 	  	 	  	Name:	  	Elaine Flud Rodriguez
	 	  	 	  	Title:	  	Sr. VP and General Counsel
		
	 	  	NATIONAL AUTO CENTER, INC., a
Delaware corporation
			
	 	  	By:	  	/s/ Elaine Flud Rodriguez
	 	  	 	  	Name:	  	Elaine Flud Rodriguez
	 	  	 	  	Title:	  	Sr. VP and General Counsel
		
	 	  	CELLSTAR FINANCO, INC., a Delaware
corporation
			
	 	  	By:	  	/s/ Elaine Flud Rodriguez
	 	  	 	  	Name:	  	Elaine Flud Rodriguez
	 	  	 	  	Title:	  	Sr. VP and General Counsel

					
	 CELLSTAR INTERNATIONAL
 CORPORATION/SA, a Delaware corporation

		
	By:	 	/s/ Elaine Flud Rodriguez
	 	 	Name:	 	Elaine Flud Rodriguez
	 	 	Title:	 	Sr. VP and General Counsel
	
	 CELLSTAR FULFILLMENT, INC.,
 a
Delaware corporation

		
	By:	 	/s/ Elaine Flud Rodriguez
	 	 	Name:	 	Elaine Flud Rodriguez
	 	 	Title:	 	Sr. VP and General Counsel
	
	CELLSTAR INTERNATIONAL CORPORATION/ASIA, a Delaware corporation
		
	By:	 	/s/ Elaine Flud Rodriguez
	 	 	Name:	 	Elaine Flud Rodriguez
	 	 	Title:	 	Sr. VP and General Counsel
	
	AUDIOMEX EXPORT CORP., a Texas corporation
		
	By:	 	/s/ Elaine Flud Rodriguez
	 	 	Name:	 	Elaine Flud Rodriguez
	 	 	Title:	 	Sr. VP and General Counsel
	
	NAC HOLDINGS, INC., a Nevada corporation
		
	By:	 	/s/ Elaine Flud Rodriguez
	 	 	Name:	 	Elaine Flud Rodriguez
	 	 	Title:	 	President

					
	 CELLSTAR GLOBAL SATELLITE
 SERVICES, LTD., a Texas limited
 partnership

		
	 By:
	 	 National Auto Center, Inc., its
 General Partner

		
	 By:
	 	 /s/ Elaine Flud Rodriguez

	 	 	 Name:
	 	 Elaine Flud Rodriguez

	 	 	 Title:
	 	 Sr. VP and General Counsel

	 
	 
	 CELLSTAR FULFILLMENT LTD., a
 Texas limited partnership

		
	 By:
	 	 CellStar Fulfillment, Inc., its General
 Partner

		
	 By:
	 	 /s/ Elaine Flud Rodriguez

	 	 	 Name:
	 	 Elaine Flud Rodriguez

	 	 	 Title:
	 	 Sr. VP and General Counsel

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