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bofiholdinginc683421a624

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                                                     SIXTH AMENDMENT                                                                            THIS SIXTH AMENDMENT (the "Amendment") is made and entered into as of     [[FinalExecutionDate]]May 14, 2018 , by              and  between 4350  LA  JOLLA  VILLAGE  LLC,  a  Delaware  limited  liability  company (“Landlord”),  and              BOFI HOLDING, INC., a Delaware corporation (“Tenant”).                                                                       RECITALS                            A.     Landlord and Tenant are parties to that certain lease dated November 30, 2011, which lease has                     been  previously  amended  by  a  First  Amendment  to  Lease  dated  May  10,  2012,  a  Second                     Amendment dated March 6, 2013, a Third Amendment dated May 21, 2013, a Fourth Amendment                     dated December 22, 2014 and a Fifth Amendment dated June 18, 2015 (collectively, the "Lease").                      Pursuant  to  the  Lease,  Landlord  has  leased  to  Tenant  space  currently  containing  approximately                     76,143 rentable square feet (the “Premises”) described as Suite Nos. 100, 140, 200, 210, 220, 400,                     410, 600 and 700 on the 1st, 2nd, 4th, 6th and 7th floors of the building located at 4350 La Jolla Village                     Drive, San Diego, California (the "Building").                            B.     The  Lease  by  its  terms  shall  expire  on June 30,  2020 ("Prior  Expiration  Date"),  and  the  parties                     desire to extend the Term of the Lease, all on the following terms and conditions.                                   NOW,  THEREFORE,      in  consideration  of  the  above  recitals  which  by  this  reference  are              incorporated  herein,  the  mutual  covenants  and  conditions  contained  herein  and  other  valuable              consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree              as follows:                            I.     Extension.  The  Term  of  the  Lease  is hereby  extended  and  shall  expire  on June  30,  2030                     ("Extended Expiration Date"), unless sooner terminated in accordance with the terms of the Lease.                      That  portion  of  the  Term  commencing  the  day  immediately  following  the  Prior  Expiration  Date                     ("Extension Date") and ending on the Extended Expiration Date shall be referred to herein as the                     "Extended Term".                            II.    Basic  Rent.  As  of  the  Extension  Date,  the  schedule  of  Basic  Rent  payable  with  respect  to  the                     Premises during the Extended Term is the following:                                     Months of Term or Period         Monthly Rate Per             Monthly Basic Rent                                                           Square Foot                             7/1/20-6/30/21                   $3.30                      $251,272.00                             7/1/21-6/30/22                   $3.42                      $260,409.00                             7/1/22-6/30/23                   $3.54                      $269,546.00                             7/1/23-6/30/24                   $3.66                      $278,683.00                             7/1/24-6/30/25                   $3.79                      $288,582.00                             7/1/25-6/30/26                   $3.92                      $298,481.00                             7/1/26-6/30/27                   $4.06                      $309,141.00                             7/1/27-6/30/28                   $4.20                      $319,801.00                             7/1/28-6/30/29                   $4.35                      $331,222.00                             7/1/29-6/30/30                   $4.50                      $342,644.00                                          All such Basic Rent shall be payable by Tenant in accordance with the terms of the Lease.                                                  Notwithstanding the above schedule of  Basic  Rent to the contrary, as long as  Tenant  is not in                     monetary default beyond any applicable notice and cure periods under the Lease, Tenant shall                     be entitled to an abatement of 3 full calendar months of Basic Rent in the aggregate amount of                     $753,816.00 (i.e. $251,272.00 per month) (the “Abated Basic Rent”) for the period commencing                     August 1, 2020 and ending October 31, 2020 (the “Abatement Period”). If Tenant defaults at any                     time during the Term and fails to cure such default within any applicable cure period under the                     Lease, and the Lease is properly terminated by Landlord, all unamortized Abated Basic Rent (i.e.                     based  upon  the  amortization  of  the  Abated  Basic  Rent  in  equal  monthly  amounts  during  the                     Extended  Term,  without interest)  shall  immediately  become due and  payable.  The  payment  by                     Tenant of the Abated Basic Rent in the event of a default shall not limit or affect any of Landlord's                     other rights, pursuant to the Lease or at law or in equity. Only Basic Rent shall be abated during                     the Abatement Period and all other additional rent and other costs and charges specified in this                     Lease shall remain as due and payable pursuant to the provisions of the Lease.                                   III.   Building Costs and Property Taxes.                                     A.      Effective as of the Extension Date, Item 7 of Article 1 of the Lease, as amended, shall be                             deleted in its entirety and the following shall be substituted in lieu thereof:                              IOPLEGAL-4-44                                   5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                            1                

 

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                                            “Property Tax Base: The Property Taxes per rentable square foot incurred by Landlord and                             attributable to the twelve month period ending June 30, 2021 (the “Base Year”).                                                          Building Cost Base: The Building Costs per rentable square foot incurred by Landlord and                             attributable to the twelve month period ending June 30, 2021.                                                          Expense  Recovery  Period:  Every  twelve  (12)  month  period  during  the  Term  (or  portion                             thereof during the first and last Lease years) ending June 30.”                                                                 Notwithstanding  the  foregoing,  Tenant shall  not  be  obligated  to  pay  Tenant’s                             proportionate share of Operating Expense excess for the 12 month period commencing as                             of the Extension Date.                                   B.      In addition.  Section 4.2(a) of the Lease shall be deleted in its entirety and the following shall                             be substituted in lieu thereof:                                                          “(a)   Tenant shall compensate Landlord, as additional rent, for Tenant’s proportionate                             shares of “Building Costs” and “Property Taxes,” as those terms are defined below, for                             each Expense Recovery Period incurred by Landlord in the operation of the Building and                             Project during the Term that exceed the Building Cost Base and the Property Tax Base.                              Property Taxes and Building Costs are mutually exclusive and shall be billed separately.                             Tenant’s proportionate share of Property Taxes shall mean that portion of any Operating                             Expenses determined by multiplying the cost of such item by a fraction, the numerator of                             which is the Floor Area  of Premises and the denominator of which is the total rentable                             square footage, as determined from time to time by Landlord, of (i) the Floor Area of the                             Building as defined in Item 8 of the Basic Lease Provisions, for expenses determined by                             Landlord to benefit or relate substantially to the Building rather than the entire Project, or                             (ii) all  or  some  of  the  buildings  in  the  Project,  for  expenses  determined  by  Landlord  to                             benefit or relate substantially to all or some of the buildings in the Project rather than any                             specific building. Tenant acknowledges Landlord’s rights to make changes or additions to                             the  Building  and/or  Project  from  time  to  time  pursuant  to  Section 6.5  of  the  Lease,  in                             which event the total rentable square footage within the Building and/or Project may be                             reasonably adjusted provided that the basis of any such adjustment is provided to Tenant                             in advance for Tenant’s review, and that Landlord shall reasonably cooperate with Tenant                             in answering questions regarding such adjustment and revising such adjustment to the                             extent that Tenant raises reasonable objections thereto.  For convenience of reference,                             Property  Taxes  and  Building  Costs  may  sometimes  be  collectively  referred  to  as                             “Operating Expenses”.                              IV.    Additional Security Deposit.  No additional security deposit shall be required in connection with this                     Amendment.                             V.     Improvements to Premises.                                   A.      Condition of Premises.  Tenant is in possession of the Premises and accepts the same "as                             is"  without  any  agreements,  representations,  understandings  or  obligations  on  the  part  of                             Landlord to perform any alterations, repairs or improvements, except as may be expressly                             provided otherwise in this Amendment or the Lease.                                          B.      Tenant  Improvements.   Landlord  hereby  agrees  to  complete the Tenant Improvements                             for the Premises in accordance with the provisions  of Exhibit  A, Work Letter, attached                             hereto.                                             VI.    Parking.  Notwithstanding any contrary provision in Exhibit F to the Lease, “Parking,” effective as                     of the Extension Date, Landlord shall lease to Tenant, and Tenant shall lease from Landlord, (i)                     360  unreserved  parking passes at  the  rate  of  $50.00 per pass, per  month for  the  period                     commencing on the Extension Date and ending June 30, 2025, and Landlord’s scheduled parking                     rates not to exceed $75.00 per unreserved parking pass, per month, and (ii) 2 reserved parking                     passes  per  month  at  the  rate of  $150.00 through  the  Extended  Term.  Notwithstanding  the                     foregoing  and  subject  to  Landlord  availability,  Tenant  may  convert  up  to 8 unreserved  parking                     passes to reserved parking passes at Landlord’s then scheduled rates upon 30 days prior written                     notice to Landlord. Thereafter, the parking charge shall be at Landlord’s scheduled parking rates                     from time to time.                            VII.   SDN  List.  Each  Party hereby  represents  and  warrants to the  other that  neither Party nor  any                     officer,  director,  employee,  partner,  member  or  other  principal  of such  Party (collectively,                     "Subject Parties") is listed as a Specially Designated National and Blocked Person ("SDN") on                     the list of such persons and entities issued by the U.S. Treasury Office of Foreign Assets Control                     (OFAC).                                   VIII.  Other  Pertinent  Provisions.  Landlord  and  Tenant  agree  that,  effective  as  of  the  date  of  this                     Amendment  (unless  different  effective  date(s)  is/are  specifically  referenced  in  this  Section),  the                     Lease shall be amended in the following additional respects:                            IOPLEGAL-4-44                                   5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                            2                

 

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                                    A.      Right of First Refusal.  Provided Tenant is not then in monetary default hereunder beyond                             any  applicable  cure  period,  and  provided  further  that  Tenant  is  occupying  the  entire                             Premises and has not assigned its interest in the Lease or then currently subletting more                             than  one (1) full  floor  of  the  Building (except  in  connection  with  an  assignment  of  this                             Lease to a Tenant Affiliate as described in Section 9.1(f) of the Lease), Tenant shall have                             a one-time right (“First Refusal Right”) to lease, during the Extended Term of the Lease,                             each of the following: (i) approximately 10,458 rentable square feet of office space known                             as Suite No. 800 in the Building , (ii) 2,519 rentable square feet of office space known as                             Suite No. 850 in the Building, and (iii) approximately 6,082 rentable square feet of office                             space  known  as  Suite  No.  888  in  the  Building,  all  shown  on  the  attached Exhibit B                             (collectively, the “First Right Space”) in accordance with and subject to the provisions of                             this Section. Following the receipt by Landlord of a bona fide letter of intent, request for                             proposal  or  other  written  expression  of  interest  to  lease  the  First  Right  Space,  then                             provided Landlord intends to pursue such leasing opportunity, Landlord shall give Tenant                             written notice (“First Right Notice”) of the basic economic terms, including but not limited                             to the Basic Rent, term, operating expense base, security deposit, parking (based on 4                             unreserved  parking  passes  per  1,000  usable  square  feet  leased) and  tenant                             improvement  allowance  (collectively,  the  “Economic  Terms”),  upon  which  Landlord                             intends  to  lease  such  First  Right  Space  to  the  applicable  third  party;  provided  that  the                             Economic  Terms  shall  exclude  brokerage  commissions  and  other  Landlord  payments                             that  do  not  directly  inure  to  the  tenant’s  benefit.   It  is  understood  that  should  Landlord                             intend to lease other office space in addition to the First Right Space as part of a single                             transaction,  then  the  First  Right  Notice  shall  so provide  and  all  such  space  shall                             collectively be subject to the following provisions.  Within 5 business days after receipt of                             the First Right Notice, Tenant may, by written notice to Landlord, elect to lease all, but not                             less than all, of the space specified in the First Right Notice (the “Designated First Right                             Space”) upon such Economic Terms and the same non-Economic Terms as set forth in                             this  Lease.   In  the  event  that  Tenant  does  not  timely  commit  in  writing  to  lease  the                             Designated First Right Space on the foregoing terms, then Landlord shall be free to lease                             same  thereafter  without  any  constraint,  and  Tenant  shall  have  no  further  rights  to  any                             such Designated First Right Space.  Should Tenant timely elect to lease the Designated                             First  Right  Space,  then Landlord  shall  promptly  prepare  and  deliver  to  Tenant  an                             amendment  to  this  Lease  consistent  with  the  foregoing,  and  Tenant  shall  execute  and                             return same to  Landlord  within  10 business days.   Tenant’s  failure  to  timely  return  the                             amendment  shall  entitle  Landlord  to  specifically  enforce  Tenant’s  commitment  to  lease                             the  Designated  First  Right  Space,  to  lease  such  space  to  a  third  party  without  any                             obligation  pursuant  to  this  Section,  and/or  to  pursue  any  other  available  legal  remedy.                              Notwithstanding the foregoing, it is understood that Tenant’s First Refusal Right shall be                             subject to any extension or expansion rights previously granted by Landlord to any third                             party tenant in the Building, as well as to any extension rights (but not expansion rights or                             new  leases) which  may  hereafter  be  granted  by  Landlord  to  any  third  party  tenant                             occupying the First Right Space or any portion thereof, and Landlord shall in no event be                             obligated to initiate this First Refusal Right prior to leasing any portion of the First Right                             Space to the then-current occupant thereof.  Tenant’s rights under this Section shall be                             personal  to  the  original  Tenant  named  in  this  Lease  and  may  not  be  assigned  or                             transferred (except in connection with an assignment of this Lease to a Tenant Affiliate as                             described  in  Section  9.1(f)  of  the  Lease).   Any  other  attempted  assignment  or  transfer                             shall be void and of no force or effect. Time is specifically made of the essence of this                             Section.  In the event Tenant declines to lease the First Right Space, but the lease with                             the prospective First Right Space tenant is not executed within 6 months after the date on                             which Tenant so  declined  to lease  the  First  Right  Space, then  any  future  agreed-upon                             letter of intent, request for proposal or other written expression of interest with the same                             prospective First Refusal  Right tenant shall again be subject to this First Refusal Right                             such that Landlord would be obligated to submit a First Right Notice with respect to the                             prospective  First  Refusal  Right  tenant  and  Tenant  shall  then  have  5  business  days  in                             which to respond to such First Right Notice                                   B.      Conditional Must Take Space. In addition to the initial Premises and provided the existing                             Tenant  surrenders  the  Must  Take  Space  (hereinafter  defined)  on  or  about  August  31,                             2019, Tenant shall lease, for a term equal to the then unexpired portion of the Term of                             this Lease, Suite No. 450/460  in the Building comprising approximately 7,656 rentable                             square feet (6,405 usable square feet) shown on the attached Exhibit C (the "Must Take                             Space"),  whereupon  the  Must  Take  Space  shall  be  deemed  a  part  of  the  Premises.                              Tenant's leasing of the Must Take Space shall be subject to all of the terms of this Lease                             except  that:  (i) the  term  of  the  Must  Take  Space  (the  “Commencement Date  for  the                             Must  Take  Space”)  shall  commence on  the  earlier  of (a)  120  days  following the  date                             Landlord delivers the subject Premises to Tenant for the purpose of performing Tenant                             Improvements  or (b)  the  date  Tenant commences  business  activities  in the  Must  Take                             Space; (ii) the  Basic Rent  shall be at the same rate  per rentable square foot, including                             subsequent  adjustments,  that  Tenant  is  then  paying  from  time  to  time  for  the  original                             Premises,  provided  that  if  the  Commencement  Date  for  the  Must  Take  Space                             commences prior to the Extension Date than the Monthly Rate per Square Foot shall be                             $3.30;  (iii) the  Base  Year  shall  be  the  same  Base  Year  as  the original Premises,  (iv)                             IOPLEGAL-4-44                                   5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                            3                

 

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                              effective as of the Commencement Date for the Must Take Space, Landlord shall lease to                             Tenant, and Tenant shall be obligated to lease from Landlord, an additional 4 unreserved                             parking passes per 1,000 usable square feet leased at same rates as the parking passes                             for  the  original  Premises, (v)  Landlord  shall  provide  a  tenant  improvement  allowance                             equal to $65.00 per rentable square feet leased; and (vi) the tenant improvements for the                             Must Take Space shall be completed in accordance with the terms and conditions of the                             attached Work Letter attached hereto as  Exhibit A.  Upon request by Landlord, Tenant                             shall promptly memorialize in writing the actual Commencement Date and other pertinent                             terms for the Must Take Space.                                          C.      Expansion Option.  Tenant shall have the option (the "Expansion Option") to lease Suite                             No. 500 on the 5th floor of the Building containing approximately 19,059 rentable square                             feet of rentable area shown on Exhibit D to this Lease (the "Expansion Space") if: (a)                             Landlord receives written notice (the "Expansion Notice") from Tenant of the exercise of                             its Expansion Option on or before April 30, 2020; (b) Tenant is not in monetary default                             under the Lease beyond any applicable cure periods at the time that Landlord receives                             the Expansion Notice; (c) no part of the Premises is sublet (except in connection with an                             assignment of this Lease to a Tenant Affiliate as described in Section 9.1(f) of the Lease)                             at  the  time  Landlord  receives  the  Expansion  Notice;  and  (d)  the  Lease  has  not  been                             assigned (except to a Tenant Affiliate as described in Section 9.1(f) of the Lease)  prior to                             the date that Landlord receives the Expansion Notice.                                                          The initial annual Basic Rent rate per rentable square foot for the Expansion Space shall                             be the same as the Basic Rent rate per rentable square foot for the original Premises on                             the  date  the  term  for  the  Expansion  Space  commences.  The  Basic  Rent  rate  for  the                             Expansion Space shall increase at such times and in such amount as Basic Rent for the                             initial Premises, it being the intent of Landlord and Tenant that the Basic Rent rate per                             rentable  square  foot  for  the  Expansion  Space  shall  always  be  the  same  as  the  Basic                             Rent rate per rentable square foot for the original Premises.  Basic Rent attributable to                             the  Expansion  Space  shall  be  payable  in  monthly  installments in  accordance  with  the                             terms and conditions of the Lease.                                                          Tenant shall pay Operating Expenses for the Expansion Space on the same terms and                             conditions set forth in the Lease, including the same Base Year that is applicable to the                             original Premises,  and  Tenant's proportionate  share  shall  increase  appropriately  to                             account for the addition of the Expansion Space. Tenant shall be entitled to receive an                             improvement allowance equal to $35.00 (the "Improvement Allowance") per square foot                             of rentable area in the Expansion Space leased by Tenant. Tenant shall be obligated to                             lease from Landlord, an additional 4 unreserved parking passes per 1,000 usable square                             feet leased at the same rates as the parking passes for the original Premises.                                                          The term for the Expansion Space shall commence 120 days following the date Landlord                             delivers  the  subject  Premises  to  Tenant  for  the  purpose  of  performing  Tenant                             Improvements  or  (b)  the  date  Tenant  commences  business  activities  in  the Expansion                             Space, and shall end, unless sooner terminated pursuant to the terms of the Lease, on                             the Expiration Date of the Lease, it being the intention of the parties hereto that the term                             for the Expansion Space and the Term for the initial Premises shall be coterminous.                                                           Tenant  acknowledges  that  the  Expansion  Space  is  currently subleased  by Colliers                             International CA, LLC pursuant to a master lease between Landlord and Cassidy Turley                             Commercial Real Estate Services, Inc.  pursuant to the terms of a lease dated June 23,                             2009, as  the  same  may  be  amended  from  time  to  time  (the  "Existing  Lease").                              Notwithstanding anything herein to the contrary, if the Existing Lease terminates (or the                             existing tenant's right to possession is terminated) prior to its stated expiration date due                             to a default by the tenant under the Existing Lease, Landlord, at its option, may provide                             Tenant with written notice of such prior termination (the "Prior Termination Notice").  If                             Landlord provides Tenant with a Prior Termination Notice, Tenant shall have the option to                             lease the Expansion Space in accordance with the terms and conditions set forth above,                             except that the Expansion Notice shall be due within 30 days after the date of Landlord's                             Prior Termination Notice, and the commencement date for such Expansion Space shall                             be the  earlier  of  120  days  following  the  date Landlord  obtains  possession  of  the                             Expansion Space from the existing tenant under the Existing Lease or the date Tenant                             commences  business  activities  in  the  Expansion  Space.   If  Tenant  does  not provide                             Landlord with an Expansion Notice within such 30 day period or if Tenant is not entitled to                             exercise its Expansion Option due to a violation of one of the conditions set forth above,                             Tenant's Expansion Option shall be deemed to be null and void and Tenant shall have no                             further rights to lease the Expansion Space hereunder.  Landlord warrants that existing                             tenant does not have a renewal right in its existing lease.                                                          If  Tenant  is  entitled  to  and  properly  exercises  the  Expansion  Option,  Landlord  shall                             prepare  an  amendment  (the  "Expansion  Amendment")  to  reflect  the  commencement                             date of the term for the Expansion Space and the changes in Basic Rent, Floor Area of                             Premises,  Tenant's proportionate  share  and  other  appropriate  terms.  A  copy  of  the                             Expansion Amendment shall be sent to Tenant within a reasonable time after Landlord’s                             IOPLEGAL-4-44                                   5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                            4                

 

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                              receipt  of  the  Expansion  Notice,  and  Tenant  shall  execute  and  return  the  Expansion                             Amendment to Landlord within 15 days thereafter, but an otherwise valid exercise of the                             Expansion Option  shall  be  fully  effective  whether  or  not  the  Expansion  Amendment  is                             executed.                                                  D.      Right  to  Extend.  Section  3.5  of  the  Lease  shall  remain  in  full  force  and  effect  during  the                             Extended Term, provided that the first paragraph shall be deleted and the following shall be                             substituted in lieu thereof:                                                  “Provided (i) that Tenant has validly extended its lease pursuant to Section 3.5 of that                             certain lease dated May____________, 14  2018 between Pacifica Tower LLC and Tenant, as                             amended, with respect to certain premises located at 4365 La Jolla Village Drive, San                             Diego,  CA,  (ii)  is  not  in  monetary  default  beyond  any  applicable  notice  (actually                             provided and properly received by Tenant) and cure period under any provision of this                             Lease at the time of exercise of the extension right granted herein, and (iii) that Tenant                             has not assigned or is then subletting more than thirty (30%) of the Premises (except                             in connection  with an  assignment of this Lease to a Tenant Affiliate as described in                             Section  9.1(f)  hereof),  Tenant  may  extend  the  Term  of  this  Lease  for two  (2)                             consecutive   periods  of  sixty  (60)  months  each.   Tenant  shall  exercise  its  right  to                             extend  the  Term  by  and  only  by  delivering  to  Landlord,  not  less  than twelve (12)                             months  nor  more  than fifteen (15)  months  prior  to  the  expiration  date  of  the  then                             applicable Term, Tenant’s written notice of its intent to extend (the “Exercise Notice”).                              Should Tenant fail timely to deliver the Exercise Notice, then this extension right (and                             any future extension right granted herein) shall thereupon lapse and be of no further                             force or effect. ”                                    E.      Subordination.  Notwithstanding the foregoing, Landlord shall use reasonable efforts in                             good faith to obtain from its current lender (the “Current Mortgagee”), for the benefit of                             Tenant, a subordination and non-disturbance agreement form and shall use reasonable                             efforts in good faith to promptly obtain a non-disturbance, subordination and attornment                             agreement  containing  similar  provisions  for  the  benefit  of  Tenant  from  any  future                             mortgagee.   Landlord  represents  that,  as  of  the  effective  date  hereof,  the  Current                             Mortgagee  is  the  sole  holder  of  any  lien  that  is  superior  to  this  Lease.   "Reasonable                             efforts" of Landlord shall not require Landlord  to incur any cost,  expense or  liability to                             obtain such agreement, it being agreed that Tenant shall be responsible for any fee or                             review  costs  charged  by  the  Mortgagee,  not  to  exceed  $5,000. Upon  request  of                             Landlord,  Tenant  will  execute  the  Mortgagee’s commercially  reasonable form  of  non-                            disturbance, subordination and attornment agreement and return the same to Landlord                             for  execution  by  the  Mortgagee.  Landlord's  failure  to  obtain  a  non-disturbance,                             subordination and attornment agreement for Tenant shall have no effect on the rights,                             obligations  and  liabilities  of  Landlord  and  Tenant  or  be  considered  to  be  a  default  by                             Landlord hereunder.                                          F.      Building  Top  Sign.   Tenant’s  Building  Top  Sign  as  described  in  Section  VIII.B.  of  the                             Second Amendment shall be null and void and of no further force and effect.                                          G.      Deleted Provisions.  Section 2.4 (Right of First Offer), as amended, and Section VIII.B.                             (Right to Alternate Premises) of the First Amendment shall be deleted in their entirety and                             of no further force or effect.                            IX.    GENERAL.                                   A.      Effect  of  Amendments.   The  Lease  shall  remain  in  full  force  and  effect  except  to  the                             extent that it is modified by this Amendment.                                   B.      Entire  Agreement.   This  Amendment  embodies  the  entire  understanding  between                             Landlord  and  Tenant  and  can  be  changed  only  by  a  writing  signed  by  Landlord  and                             Tenant.  There  have  been  no  additional  oral  or  written  representations  or  agreements.                              Under  no  circumstances  shall  Tenant  be  entitled  to  any  rent  abatement,  improvement                             allowance,  leasehold  improvements,  or  any  similar  economic  incentives  that  may  have                             been provided Tenant in connection with entering into the Lease, unless specifically set                             forth in this Amendment.                                   C.      Counterparts; Digital Signatures.  If this Amendment is executed in counterparts, each is                             hereby  declared  to  be  an  original;  all,  however,  shall  constitute  but  one  and  the  same                             amendment.  In any action or proceeding, any photographic, photostatic, or other copy of                             this Amendment may be introduced into evidence without foundation. The parties agree                             to  accept  a  digital  image  (including  but  not  limited  to  an  image  in  the  form  of  a  PDF,                             JPEG,  GIF  file, or  other  e-signature)  of  this Amendment,  if  applicable,  reflecting  the                             execution of one or both of the parties, as a true and correct original.                                   D.      Defined Terms.  All words commencing with initial capital letters in this Amendment and                             defined in the Lease shall have the same meaning in this Amendment as in the Lease,                             unless they are otherwise defined in this Amendment.                             IOPLEGAL-4-44                                   5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                            5                

 

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                                    E.      Authority.   If a  Party is  a  corporation,  limited  liability  company  or  partnership,  or  is                             comprised of any of them, each individual executing this Amendment for the corporation,                             limited  liability  company  or  partnership  represents  that  he  or  she  is  duly  authorized  to                             execute and deliver this Amendment on behalf of such entity and that this Amendment is                             binding upon such entity in accordance with its terms.                                   F.      California  Certified  Access  Specialist  Inspection.  Pursuant  to  California  Civil  Code                             § 1938,  Landlord  hereby  states  that  the  Premises  have  not  undergone  inspection  by  a                             Certified  Access  Specialist  (CASp) (defined  in  California  Civil  Code  § 55.52(a)(3)).                              Pursuant  to  Section  1938  of  the  California  Civil  Code,  Landlord  hereby  provides  the                             following  notification  to  Tenant:  "A  Certified  Access  Specialist  (CASp)  can  inspect  the                             subject  premises  and  determine  whether  the  subject  premises  comply  with  all  of  the                             applicable  construction-related  accessibility  standards  under  state  law.  Although  state                             law does not require a CASp inspection of the subject premises, the commercial property                             owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of                             the subject premises for the occupancy or potential occupancy of the lessee or tenant, if                             requested by the lessee or tenant.  The parties shall mutually agree on the arrangements                             for  the  time and manner  of  the  CASp inspection,  the  payment  of  the  fee  for  the  CASp                             inspection,  and  the  cost  of  making  any  repairs  necessary  to  correct  violations  of                             construction  related  accessibility  standards  within  the  premises."  If  Tenant  requests  to                             perform  a  CASp  inspection  of  the  Premises,  Tenant  shall,  at  its  cost,  retain  a  CASp                             approved  by  Landlord (provided  that  Landlord  may  designate  the  CASp,  at  Landlord’s                             option) to perform the inspection of the Premises at a time agreed upon by the parties.                              Tenant shall provide Landlord with a copy of any report or certificate issued by the CASp                             (the "CASp Report") and Tenant shall, at its cost, promptly complete any modifications                             necessary to correct violations of construction related accessibility standards identified in                             the CASp Report, notwithstanding anything to the contrary in this Lease.  Tenant agrees                             to  keep  the  information  in  the  CASp  Report  confidential  except as  necessary  for  the                             Tenant to complete such modifications.                                   G.      Attorneys' Fees.  The provisions of the Lease respecting payment of attorneys' fees shall                             also apply to this Amendment.                                   H.      Brokers.  Article XVIII of the Lease is amended to provide that the parties recognize the                             following parties as the brokers who negotiated this Amendment, and agree that Landlord                             shall be responsible for payment of brokerage commissions to such brokers pursuant to                             its separate agreements  with such brokers: Irvine Management Company (“Landlord’s                             Broker”) is the agent of Landlord exclusively and Newmark Grubb Knight Frank / Atlanta                             (“Tenant’s  Broker”)  is  the  agent  of  Tenant  exclusively.  By  the  execution  of  this                             Amendment, each of Landlord and Tenant hereby acknowledge and confirm (a) receipt of                             a  copy  of  a  Disclosure  Regarding  Real  Estate  Agency  Relationship  conforming  to  the                             requirements of California Civil Code 2079.16, and (b) the agency relationships specified                             herein,  which  acknowledgement  and  confirmation  is  expressly  made  for  the  benefit  of                             Tenant’s  Broker.  By  the  execution  of  this  Amendment,  Landlord  and  Tenant  are                             executing the confirmation of the agency relationships set forth herein. The warranty and                             indemnity provisions of Article XVIII of the Lease, as amended hereby, shall be binding                             and enforceable in connection with the negotiation of this Amendment.                                   I.      Execution of Amendment.  Submission of this Amendment by Landlord is not an offer to                             enter  into  this  Amendment  but rather  is  a  solicitation  for  such  an  offer  by  Tenant.                              Landlord  shall  not  be  bound  by  this  Amendment  until  Landlord  has  executed  and                             delivered the same to Tenant.                                          J.      Nondisclosure of Terms. Tenant agrees that neither Tenant nor its agents or any other                             parties acting on behalf of Tenant shall disclose any matters set forth in this Amendment                             or  disseminate  or  distribute any  information  concerning  the terms,  details  or  conditions                             hereof  to  any  person,  firm  or  entity  without  obtaining  the  express  written  consent  of                             Landlord.                                                                                                                                                                                                                             [Signature page follows]                                                                                        IOPLEGAL-4-44                                   5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                            6                

 

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                      IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Amendment as of the day              and year first above written.                                          LANDLORD:                                     TENANT:                                                                          4350 LA JOLLA VILLAGE LLC,                    BOFI HOLDING, INC.,              a Delaware limited liability company          a Delaware corporation                                                                                                                                                                                                  By [[Executor 1 Signature]]                   By [[Tenant 1 Signature]]                                                                            Ray Wirta               [[Executor 1 Name]]                         Printed Name [[TenantAndrew  1J. Name]] Micheletti                [[ExecutorPresident  1 Title Line 1]]       Title [[TenantExecutive 1 Title]] Vice President & CFO               [[Executor 1 Title Line 2]]                                                                                                                                                                                                                   By [[Executor 2 Signature]]                   By [[Tenant 2 Signature]]                Ray  Wirta                                                  [[Executor 2 Name]]                         Printed Name [[TenantGregory  2Garrabrants Name]]                 Division[[Executor President 2 Title Line 1]] Title [[TenantCEO  2 Title]]                [[Executor 2 Title Line 2]]                                  Office Properties                                                               [[ReviewerInitial1]]                                                            IOPLEGAL-4-44                                   5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                            7                

 

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                                                          EXHIBIT A                                                                                                                     WORK LETTER                                                                 DOLLAR ALLOWANCE                                            [SECOND GENERATION SPACE]                                                                            The  tenant  improvement  work  (herein  “Tenant  Improvements”),  mutually  approved  by  Landlord  and              Tenant, shall consist of any work required to complete the Premises pursuant to plans and specifications              approved by both Landlord and Tenant.  The Tenant Improvement work shall be performed by a general              contractor,  mutually  agreed  upon  by  Landlord  and  Tenant.   Landlord  shall  competitively  bid  the              construction of the Tenant Improvements to at least three (3) general contractors, who shall bid to and              engage  only  Landlord  approved  MEP  contractors.  The  general  contractor  shall  provide  Landlord  and              Tenant  with  the  subcontractor  bids  for  review  and  mutual  approval  and  selection.    All  of  the  Tenant              Improvement work shall be performed by the general contractor in accordance with the procedures and              requirements  set  forth  below.  Subject  to  Landlord’s  reasonable  approval,  Tenant  may  select  the              architect, space planner, general contractor and subcontractor for the Tenant Improvements.                             I.     ARCHITECTURAL AND CONSTRUCTION PROCEDURES                                   A.      Tenant  and  Landlord  shall  approve  both  (i)  a  detailed  space  plan  for  the  Premises,                             prepared  by  the  architect  engaged  by  Tenant  for  the  work  described  herein  (“Tenant’s                             Architect”),  which  includes  interior  partitions,  ceilings,  interior  finishes,  interior  office                             doors,  suite  entrance,  floor  coverings, window  coverings,  lighting,  electrical  and                             telephone  outlets,  plumbing  connections,  heavy  floor  loads  and  other  special                             requirements  (“Preliminary  Plan”),  and  (ii)  an  estimate,  prepared  by  the  contractor                             engaged by Landlord for the work herein (“Landlord’s Contractor”), of the cost for which                             Landlord will complete or cause to be completed the Tenant Improvements (“Preliminary                             Cost Estimate”). Tenant shall approve or disapprove each of the Preliminary Plan and                             the  Preliminary  Cost  Estimate  by  signing  copies of  the  appropriate  instrument  and                             delivering  same  to  Landlord  within  five (5)  business  days  of  its  receipt  by  Tenant.   If                             Tenant disapproves any matter, Tenant shall specify in detail the reasons for disapproval                             and  Landlord  shall  attempt  to  modify  the  Preliminary  Plan  and  the  Preliminary  Cost                             Estimate to incorporate Tenant’s suggested revisions in a mutually satisfactory manner.                                            B.      On  or  before  its  approval  of  the  Plan,  Tenant  shall  provide  in  writing  to  Landlord  or                             Tenant’s  Architect  all  specifications and  information  requested  by  Landlord  for  the                             preparation  of  final  construction  documents  and  costing,  including  without  limitation                             Tenant’s  final  selection  of  wall  and floor  finishes,  complete  specifications  and  locations                             (including load and HVAC requirements) of Tenant’s equipment, and details of all other                             non-building  standard  improvements  to  be  installed  in  the  Premises  (collectively,                             “Programming Information”).  Tenant understands that final construction documents for                             the  Tenant  Improvements  shall  be predicated  on  the  Programming  Information,  and                             accordingly that such information must be accurate and complete.                                            C.      Upon  Tenant’s  approval  of  the  Preliminary  Plan  and  Preliminary  Cost  Estimate  and                             delivery  of  the  complete  Programming  Information,  Tenant’s  Architect  and  engineers                             shall  prepare and  deliver  to the  parties  working  drawings  and specifications  (“Working                             Drawings  and  Specifications”),  and  Landlord’s  Contractor  shall  prepare  a  final                             construction  cost  estimate  (“Final  Cost  Estimate”)  for  the  Tenant  Improvements  in                             conformity with the Working Drawings and Specifications.  Notwithstanding the foregoing,                             Landlord’s  MEP  engineers shall  prepare the  related documents.  Tenant  shall  have                             five (5)  business  days  from  the  receipt  thereof  to  approve  or  disapprove  the  Working                             Drawings  and  Specifications  and  the  Final  Cost  Estimate;  provided  that  Tenant  shall                             have  the  right  to  request  changes  or  additions  to  the  Working  Drawings  and                             Specifications for the purpose of utilizing any unused portion of the Landlord Contribution.                              Should Tenant disapprove the Working Drawings and Specifications and the Final Cost                             Estimate,  such  disapproval  shall  be  accompanied  by  a  detailed  list  of  revisions.   Any                             revision  requested  by  Tenant  and  accepted  by  Landlord  shall  be  incorporated  by                             Tenant’s  Architect into a revised set of Working Drawings  and Specifications  and Final                             Cost Estimate, and Tenant shall approve same in writing within five (5) business days of                             receipt.                                            D.      In the event that Tenant requests in writing a revision in the approved Working Drawings                             and  Specifications  (“Change”),  then  provided  such  Change  is  acceptable  to  Landlord,                             Landlord  shall  advise  Tenant  by  written  change  order  as  soon  as  is  practical  of  any                             increase  in  the  Completion  Cost  such  Change  would  cause.  Tenant  shall  approve  or                             disapprove  such  change  order  in  writing  within  three (3)  business  days  following  its                             receipt from Landlord.  Tenant’s approval of a Change shall be accompanied by Tenant’s                             payment  of  any  resulting  increase  in  the  Completion  Cost  if the  Tenant  Improvement                             Allowance has been fully utilized.  It is understood that Landlord shall have no obligation                             to  interrupt  or  modify  the  Tenant  Improvement  work  pending  Tenant’s  approval  of  a                             change order.                                                 IOPLEGAL-4-44                                   5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                            1                

 

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                      E.      It is understood that the Preliminary Plan and the Working Drawings and Specifications,                             together with any Changes thereto, shall be subject to the prior reasonable approval of                             Landlord.  Landlord shall  identify any disapproved items within three (3) business days                             (or  two  (2)  business  days  in  the case  of  Changes)  after  receipt  of  the  applicable                             document.  In lieu of disapproving an item, Landlord may approve same on the condition                             that Tenant pay to Landlord, prior to the start of construction and in addition to all sums                             otherwise  due  hereunder,  an amount  equal  to  the  cost,  as  reasonably  estimated  by                             Landlord,  of  removing  and  replacing  the  item  upon  the  expiration  or  termination  of  the                             Lease.   Should  Landlord  approve  work  that  would  necessitate  any  ancillary  Building                             modification or other expenditure by Landlord, then except to the extent of any remaining                             balance  of  the  Landlord  Contribution,  Tenant  shall,  in  addition  to  its  other  obligations                             herein, promptly fund the cost thereof to Landlord.                                          F.      It  is  understood  that  all  or  a  portion  of  the  Tenant Improvements  shall  be  done  during                             Tenant’s occupancy of the Premises.  In this regard, Tenant agrees to assume any risk of                             injury, loss or damage which may result, except for any damage or injury which is caused                             by the negligence or willful misconduct of Landlord or its agents.  Tenant further agrees                             that it shall be solely responsible for relocating  its office equipment and furniture in the                             Premises in order to protect the same and allow for Landlord to complete the work in the                             Premises and that no rental abatement shall result while the Tenant Improvements are                             completed in the Premises.                                           G.      Tenant hereby designates Lisa Goodwin, Telephone No. (858) 649-2510, email address                             lgoodwin@bofifederalbank, as  its  representative,  agent  and  attorney-in-fact  for  the                             purpose of receiving notices, approving submittals and issuing requests for Changes, and                             Landlord shall be entitled to rely upon authorizations and directives of such person(s) as                             if  given  directly by  Tenant.   Tenant  may  amend  the  designation  of  its  construction                             representative(s) at any time upon delivery of written notice to Landlord.                                   II.    COST OF TENANT IMPROVEMENTS                                           A.      Landlord  shall  complete,  or  cause  to  be  completed,  the  Tenant  Improvements,  at  the                             construction cost shown in the approved Final Cost Estimate (subject to the provisions of                             this Work Letter), in accordance with final Working Drawings and Specifications approved                             by  both  Landlord  and  Tenant.   Landlord  shall  pay  towards  the  final  construction  costs                             (“Completion  Cost”)  as  incurred  a  maximum  of Two  Million  Six  Hundred  Sixty-Five                             Thousand and Five Dollars ($2,665,005.00) (“Landlord Contribution”), based on $35.00                             per rentable square  foot  of  the  Premises,  and Tenant  shall  be fully  responsible  for  the                             remainder  (“Tenant  Contribution”).  Tenant  shall  be  allowed  to  utilize  up  to Twenty                             Dollars  ($20.00)  per  rentable  square  foot  of  the  Landlord  Contribution  towards  a  rent                             credit through  June  30,  2020.  Tenant  understands  and  agrees  that  any  portion  of  the                             Landlord  Contribution  not  utilized  by  Tenant  by December 31, 2021,  shall  inure  to  the                             benefit of Landlord and Tenant shall not be entitled to any credit or payment.                                           B.      The Completion Cost shall include all reasonable direct costs of Landlord in completing                             the Tenant Improvements, including but not limited to the following:  (i) payments made to                             architects, engineers, contractors, subcontractors and other third party consultants in the                             performance of the work, (ii) permit fees and other sums paid to governmental agencies,                             (iii) costs of all materials incorporated into the work or used in connection with the work,                             and  (iv)  keying  and  signage  costs. The  Completion  Cost  shall  also  include  an                             administrative/supervision fee to be paid to Landlord in the amount of three percent (3%)                             of all such hard and soft costs.                                          C.      Prior to start of construction of the Tenant Improvements, Tenant shall pay to Landlord                             the amount of the Tenant Contribution set forth in the approved Final Cost Estimate.  In                             addition, if the actual Completion Cost  of the Tenant Improvements is greater than the                             Final  Cost  Estimate  because  of  modifications  or  extras  requested  by  Tenant  and  not                             reflected  on  the  approved  working  drawings,  or  because  of  delays  caused  by  Tenant,                             then  if  there is  any  unused  portion  of  the  Landlord  Contribution,  Tenant  shall  pay  to                             Landlord,  within  ten  (10)  business  days  following  submission  of  an  invoice therefor,  all                             such additional costs, including any additional architectural fee.  If Tenant defaults in the                             payment of any sums due under this Work Letter, Landlord shall (in addition to all other                             remedies) have the same rights as in the case of Tenant’s failure to pay rent under the                             Lease.                                                                                                                                                          IOPLEGAL-4-44                                   5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                            2                

 

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                                                                                           EXHIBIT B                                                                                                                                                                                     FIRST RIGHT SPACE                                                                                                                                                                                                                                                                       4350 La Jolla Village Drive                                                                                                                                                                            Suites 800, 850, 888                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                IOPLEGAL-4-44                                                                 5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                                                                       3                       

 

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                                                                                                                EXHIBIT C                                                                                                                                                                                      MUST TAKE SPACE                                                                                                                                                                    4350 La Jolla Village Drive                                                                                                                                                                                     Suite 450/460                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         IOPLEGAL-4-44                                                                 5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                                                                       4                       

 

DocuSign Envelope ID: E236926E-427C-4454-8D70-158A10337DC1                                                                                                                EXHIBIT D                                                                                                                                                                                     EXPANSION SPACE                                                                                                                                                                                                                                                                       4350 La Jolla Village Drive                                                                                                                                                                                          Suite 500                                                                                                                                                 IOPLEGAL-4-44                                                                 5/11/18 - Lease 231700, Amendment 247645 - 4.1                                                                                                                       5ex_114692.htm

Exhibit 10.21

 

 

 

 

 

 

 

 

 

SHARE PURCHASE AND TRANSFER AGREEMENT

 

by and between

 

Dr Joachim Löffler

 

and

 

Mr Dietmar Flessa

 

and

 

Mr Reiner Bauersachs

 

and

 

AVX INTERCONNECT Europe GmbH

 

 

 

For the acquisition of all shares in 

 

KUMATEC Sondermaschinenbau & Kunststoffverarbeitung GmbH

 

 

Personal information has been redacted from this Share Purchase Agreement to protect named individuals' personal interests.  

 

 

 

 

 

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Table of Contents

 

	
			Table of Exhibits

				
			3

			
	Table of Definitions	5
	Preamble	9
	Section 1	Legal Status	11
	Section 2	Sale and Assignment of the Shares	12
	Section 3	Purchase Price	12
	Section 4	No Leakage  	15
	Section 5	Closing Conditions 	16
	Section 6	Closing Actions	18
	Section 7 	Legal Consequences of a Rescission 	19
	Section 8 	Merger Control Filing	20
	Section 9	Sellers’ Guarantees	20
	Section 10	Sellers’ Best Knowledge	38
	Section 11	Remedies 	39
	Section 12	Sellers’ and Purchaser`s Indemnities	42
	Section 13	Taxes and Social Insurance	43
	Section 14	Carve-Out of the Hydrogen Business	49
	Section 15	Pre-closing Obligations of the Sellers	50
	Section 16	Further obligations of the Sellers	51
	Section 17	Non-Competition/Non-Solicitation	52
	Section 18	Confidentiality, Press Releases	53
	Section 19	Costs, Real Estate Transfer Tax	54
	Section 20	Notices	54
	Section 21	Assignments 	55
	Section 22	Sellers’ Liability	55
	Section 23	Governing Law, Jurisdiction	56
	Section 24	Amendments, Supplements, Termination	56
	Section 25	Miscellaneous	56

 

 

 

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Table of Exhibits

 

	Exhibit 1.1	Shareholders' List 	11
	Exhibit 2.3	Draft Confirmation of Receipt	12
	Exhibit 2.4	Shareholders' Resolution	12
	Exhibit 2.5	Consent to the Sale and Transfer of the Shares	12
	Exhibit 4.4	Permitted Leakage	16
	Exhibit 6.1 (vii)	Power of Attorney	18
	Exhibit 6.1 (viii)	Closing Protocol	18
	Exhibit 9.1.7	Related Party Obligations 	22
	Exhibit 9.1.9	Articles and Register Excerpts	22
	Exhibit 9.2.1	Financial Statements	23
	Exhibit 9.3.1	Encumbrances of Assets	24
	Exhibit 9.4	Loans and Financing Agreements	24
	Exhibit 9.5.3 (ii)	Challenged IP Rights	25
	Exhibit 9.5.4	Owned IP Rights	25
	Exhibit 9.5.8	IP Rights Licensed to a Group Company	26
	Exhibit 9.5.9 	IP Rights Licensed to Third Parties	26
	Exhibit 9.5.10	IT	26
	Exhibit 9.6.1	Real Property and Equivalent Rights	27
	Exhibit 9.6.2	Leases	27
	Exhibit 9.6.4	Health Incidents	27
	Exhibit 9.7.1	Insurances	27
	Exhibit 9.7.4	Insurance Cases 	28
	Exhibit 9.8.1	Customers and Suppliers	28
	Exhibit 9.8.2	Competition Constraints	28
	Exhibit 9.9.1	Material Agreements	29
	Exhibit 9.9.2 	Terminated Material Agreements	30
	Exhibit 9.9.4 	CoC Agreements	31
	Exhibit 9.10.1(1)	Members of Corporate Bodies and Employees	31
	Exhibit 9.10.1(2)	Freelancers	31
	Exhibit 9.10.2	Employment Agreements	31
	Exhibit 9.10.3(i)	List of Service Agreements	31

 

 

 

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	Exhibit 9.10.3(ii)	Managing Director Service Agreements	31
	Exhibit 9.10.8	Key Employees	32
	Exhibit 9.14	Public Grants	35
	Exhibit 9.15.1	Conduct of Business 	35
	Exhibit 9.18.1	Third Party Approvals	38
	Exhibit12.3	Cumulative Assumption of Debts	42
	Exhibit 13.3.7	Appeals and Legal Actions	44
	Exhibit 15.2	CoC Waivers	50
	Exhibit 16.1	JV Partnership Agreement 	51
	Exhibit 16.3	Managing Director Service Agreement	52

 

 

 

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Table of Definitions

 

	
			TERM

				
			AS DEFINED IN

			
	 	 
	
			Affiliate

				
			Section 9.1.7

			
	 	 
	
			Agreement

				
			Preamble

			
	 	 
	
			Assets

				
			Section 9.3.1

			
	 	 
	
			Breach of a Sellers’ Guarantee

				
			Section 11.1

			
	 	 
	
			Business

				
			Preamble

			
	 	 
	
			Business Day

				
			Section 25.1

			
	 	 
	
			Carve-Out

				
			Preamble

			
	 	 
	
			Change

				
			Section 5.13

			
	 	 
	
			Closing Actions

				
			Section 6.1

			
	 	 
	
			Closing Condition

				
			Section 5.1

			
	 	 
	
			Closing Date

				
			Section 6.6

			
	 	 
	
			Closing Month

				
			Section 5.5

			
	 	 
	
			Closing Payment

				
			Section 3.3

			
	 	 
	
			Closing Protocol

				
			Section 6.1

			
	 	 
	
			Company

				
			Preamble

			
	 	 
	
			Company Partnership Interest

				
			Section 1.2

			
	 	 
	
			Competition

				
			Section 17.1

			
	 	 
	
			Confirmation of Receipt

				
			Section 2.3

			
	 	 
	
			Cumulative Assumptions of Debts

				
			Section 12.3

			
	 	 
	
			Data Room

				
			Section 11.3

			
	 	 
	
			Deductible

				
			Section 11.6

			
	 	 
	
			Deferred Amount

				
			Section 3.3

			
	 	 
	
			Developers

				
			Section 9.5.6

			

 

 

 

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	TERM	AS DEFINED IN
	 	 
	
			DF

				
			the Beginning of this Agreement

			
	 	 
	
			Disclosed Information

				
			Section 11.4

			
	 	 
	
			Effective Date

				
			Section 2.2

			
	 	 
	
			Employees

				
			Section 9.10.1

			
	 	 
	
			Fairly Disclosed

				
			Section 11.4

			
	 	 
	
			Financial Statements

				
			Section 9.2.1

			
	 	 
	
			Founder OHG

				
			Preamble

			
	 	 
	
			General Partner

				
			Section 1.2

			
	 	 
	
			Geographical Area of Operations

				
			Section 17.1

			
	 	 
	
			Group Companies

				
			Section 1.2

			
	 	 
	
			Group Participations

				
			Section 9.1.3

			
	 	 
	
			Hive-Down Agreement

				
			Preamble

			
	 	 
	
			Holdback Amount

				
			Section 3.3

			
	 	 
	
			Holdback Period

				
			Section 3.4.1

			
	 	 
	
			Hydrogen Business

				
			Preamble

			
	 	 
	
			IP Rights

				
			Section 9.5.1

			
	 	 
	
			IT

				
			Section 9.5.10

			
	 	 
	
			JL

				
			the Beginning of this Agreement

			
	 	 
	
			JV Partnership

				
			Preamble

			
	 	 
	
			Key Employees

				
			Section 9.10.8

			
	 	 
	
			Leakage

				
			Section 4.3

			
	 	 
	
			Legal Proceedings

				
			Section 9.12.1

			
	 	 
	
			Liens

				
			Section 9.1.3

			
	 	 
	
			Locked Box Period

				
			Section 4.1

			

 

 

 

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	TERM	AS DEFINED IN
	 	 
	
			Management Accounts

				
			Section 9.2.1

			
	 	 
	
			Material Adverse Change

				
			Section 5.1.3

			
	 	 
	
			Material Agreements

				
			Section 9.9.1

			
	 	 
	
			Necessary IP Rights

				
			Section 9.5.2

			
	 	 
	
			Non-Competition Obligation

				
			Section 17.1

			
	 	 
	
			Non-Solicitation Obligation

				
			Section 17.2

			
	 	 
	
			Notices

				
			Section 20.1

			
	 	 
	
			Overall Liability Cap

				
			Section 11.6

			
	 	 
	
			Owned IP Rights

				
			Section 9.5.4

			
	 	 
	
			Parties

				
			the Beginning of this Agreement

			
	 	 
	
			Partnership Agreement

				
			Preamble

			
	 	 
	
			Party

				
			the Beginning of this Agreement

			
	 	 
	
			Permits

				
			Section 9.11.1

			
	 	 
	
			Permitted Leakage

				
			Section 4.4

			
	 	 
	
			Public Grants

				
			Section 9.14

			
	 	 
	
			Purchase Price

				
			Section 3.1

			
	 	 
	
			Purchaser

				
			the Beginning of this Agreement

			
	 	 
	
			Purchaser’s Account

				
			Section 3.6.2

			
	 	 
	
			RB

				
			the Beginning of this Agreement

			
	 	 
	
			Regulations

				
			Section 9.13

			
	 	 
	
			Relevant Tax Returns

				
			Section 13.8.1

			
	 	 
	
			Scheduled Closing Date

				
			Section 5.5

			
	 	 
	
			Scope of Business Operations

				
			Section 17.1

			
	 	 
	
			Seller

				
			the Beginning of this Agreement

			

 

 

 

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	TERM	AS DEFINED IN
	 	 
	
			Sellers

				
			the Beginning of this Agreement

			
	 	 
	
			Sellers’ Accounts

				
			Section 3.6.1

			
	 	 
	
			Sellers’ Best Knowledge

				
			Section 10.1

			
	 	 
	
			Sellers’ Group

				
			Section 9.1.7

			
	 	 
	
			Sellers’ Guarantees

				
			Section 9

			
	 	 
	
			Sellers’ Representative

				
			Section 20.2

			
	 	 
	
			Shares

				
			Section 1.1

			
	 	 
	
			Signing Date

				
			Section 9

			
	 	 
	
			Subsidiary

				
			Section 1.2

			
	 	 
	
			Tax Authority

				
			Section 13.1

			
	 	 
	
			Tax Contest

				
			Section 13.8.4

			
	 	 
	
			Tax Guarantee

				
			Section 13.3

			
	 	 
	
			Tax Guarantees

				
			Section 13.3

			
	 	 
	
			Tax Returns

				
			Section 13.2

			
	 	 
	
			Taxes

				
			Section 13.1

			
	 	 
	
			Third Party Claim

				
			Section 11.2

			
	 	 
	
			Transaction

				
			Preamble

			

 

 

 

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SHARE PURCHASE AND TRANSFER AGREEMENT

 

by and between

 

	
			1.

				
			Dr Joachim Löffler, xxxxxxxxxxxxxxxxxxxxdxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Germany,

			

 

- “JL” –

 

	
			2.

				
			Mr Dietmar Flessa, xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxg, Germany,

			

 

- “DF” –

 

	
			3.

				
			Mr Reiner Bauersachs,xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Germany,

			

 

- “RB” –

 

- JL, DF and RB collectively referred to as the “Sellers”, each as a “Seller” –

 

 

 

and

 

	
			4.

				
			AVX INTERCONNECT Europe GmbH, a limited liability company under German law with its registered seat in Betzdorf, registered with the commercial register (Handelsregister) of the local court (Amtsgericht) of Montabaur under HRB 3132

			

 

- “Purchaser” –

 

– the Sellers and the Purchaser collectively referred to as the “Parties”, each as a “Party” –

 

 

 

Preamble

 

	
			(A)

				
			WHEREAS, KUMATEC Sondermaschinenbau & Kunststoffverarbeitung GmbH with registered seat in Neuhaus-Schierschnitz, registered with the commercial register of the local court of Jena under HRB 301611, (the “Company”) is active in the field of processing of plastics of any kind as well as the construction and manufacturing as well as the sale and distribution of machines of any kind, especially used for the handling and refining of plastic parts, as well as the construction, development and manufacturing of plants for the automation of operational procedures including their purchase and sale (the “Business“).

			

 

 

 

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			(B)

				
			WHEREAS, the Sellers are the only shareholders in the Company and the managing directors of the Company.

			

 

	
			(C)

				
			WHEREAS, the Purchaser is active in the field of manufacturing, distribution and wholesale of precision-plug-connection-systems and related products of industrial electronics and electrical engineering, the distribution and wholesale of raw materials as well as the distribution, wholesale and manufacturing of semi-finished products and machinery equipment that serve directly or indirectly the manufacturing of the aforementioned equipment.

			

 

	
			(D)

				
			WHEREAS, prior to the date hereof, a business segment previously operated by the Company consisting of the so called hydrogen fuel generation and delivery business (the “Hydrogen Business”) was spun-off into a joint venture between the Sellers and the Company under a hive-down agreement dated 28 February 2018 (deed roll no. 0279/2018 of notarial administrator Jochen Keßler, Ludwigsstadt) (the “Hive-Down Agreement”) which was registered with the commercial register of the Company on 05 March 2018 (the “Carve-Out”). The Hive-Down Agreement is hereby referred to. It was available for inspection during the notarisation of this Agreement as official copy (Ausfertigung). The Parties acknowledge that they are aware of the content of the Hive-Down Agreement and waive their right to have the Hive-Down Agreement read aloud and attached as a copy to this Agreement. Following the Carve-Out, the Hydrogen Business is operated by KUMATEC Hydrogen GmbH & Co. KG, a limited liability partnership under German law with its registered seat in Neuhaus-Schierschnitz, registered with the commercial register of the local court of Jena under HRA 504705 (the “JV Partnership”) in which the Company holds a partnership interest of 50% as a limited partner. The remaining 50% limited partnership interest in the JV Partnership is currently held by the Seller and has been contributed to BFL Hydrogen OHG, a partnership under the laws of Germany with registered seat in Neuhaus-Schierschnitz, registered with the commercial register of the local court of Jena under HRA 504723 (the “Founder OHG”), such contribution to become effective upon registration of the Founder OHG with the commercial register as limited partner of the JV Partnership. The Sellers are the sole partners of the Founder OHG.

			

 

	
			(E)

				
			WHEREAS, the Sellers intend to sell all of their shares in the Company to the Purchaser upon the terms and conditions of this share purchase and transfer agreement. The Purchaser intends to acquire the complete shareholding in the Company. The Parties further intend to amend and completely restate the agreement governing the legal relationship of the partners in the JV Partnership (the “Partnership Agreement”) (such actions, together with the Carve-Out, the “Transaction”).

			

 

 

 

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Now, therefore, the Sellers and the Purchaser agree as follows (the “Agreement”):

 

Section 1

Legal Status

 

	
			1.1

				
			The Company is a limited liability company duly organised under German law. The share capital (Stammkapital) of the Company amounts to DEM 120,000. According to the latest list of shareholders registered with the commercial register (Handelsregister) and attached for identification purposes (zu Identifizierungszwecken) as Exhibit  1.1 , the share capital is divided in the following shares (Geschäftsanteile), all of which are held by the Sellers as follows:

			

 

	 	
			(i)

				
			JL holds one share in the nominal amount (Nennbetrag) of DEM 60,000 (no. 1 in the list of shareholders),

			

 

	 	
			(ii)

				
			DF holds one share in the nominal amount of DEM 30,000 (no. 2 in the list of shareholders), and

			

 

	 	
			(iii)

				
			RB holds one share in the nominal amount of DEM 30,000 (no. 3 in the list of shareholders)

			

 

(collectively the “Shares”).

 

The term Shares includes all shares in the Company, irrespective of whether or not their numbers and nominal amounts or whether the aggregate amount of the registered share capital of the Company correspond to the aforementioned details. No objection (Widerspruch) against the list of shareholders has been entered into the commercial register.

 

	
			1.2

				
			The Company is the sole shareholder in KUMATEC Components GmbH with registered seat in Neuhaus-Schierschnitz, registered with the commercial register (Handelsregister) of the local court (Amtsgericht) of Jena under HRB 509751 (the “Subsidiary”).

			

 

	
			1.3

				
			The Company further holds a limited partnership interest (Kommanditbeteiligung) and a capital participation (Kapitalanteil) in the JV Partnership in an amount of EUR 500.00, representing a participation in the total partnership capital of the JV Partnership of 50% (the “Company Partnership Interest”). The remaining limited partnership interest in the JV Partnership is and/or will be held as described in Preamble (D). The JV Partnership is the sole shareholder of its general partner (Komplementär) Hydrogen Verwaltungs-GmbH, with registered seat in Neuhaus-Schierschnitz, registered with the commercial register (Handelsregister) of the local court (Amtsgericht) of Jena under HRB 514325 (the “General Partner”, and collectively with the Company, the Subsidiary and the JV Partnership the “Group Companies”).

			

 

	
			1.4

				
			Except as set out under Sections 1.2 and 1.3, the Group Companies do not hold (directly or indirectly) any shares, interests and/or voting rights in other companies, partnerships or similar undertakings.

			

 

 

 

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Section 2

Sale and Assignment of the Shares

 

	
			2.1

				
			The Sellers - each individually with regard to the relevant Shares held by them only - hereby sell the Shares to the Purchaser free and clear of any Liens (as defined under Section 9.1.3). The Purchaser hereby accepts such sale.

			

 

	
			2.2

				
			The sale of the Shares shall have economic effect (wirtschaftliche Wirkung) as of 31 December 2016, 24:00 CET (the “Effective Date”) and shall include any and all rights pertaining to the Shares, including the rights to all profits of the Company for the period after the Effective Date. However, the Parties are in agreement that no Leakage (other than the Permitted Leakage) has occurred after the Effective Date.

			

 

	
			2.3

				
			The Sellers - each individually with regard to the relevant Shares held by them only - hereby assign (abtreten) the Shares to the Purchaser and the Purchaser hereby accepts such assignment of the Shares. The assignment of the Shares shall include all ancillary rights and claims pertaining to the Shares. The aforementioned assignment shall be subject to the conditions precedent of (i) the fulfilment and/or waiver of the Closing Conditions and (ii) the payment of the Closing Payment according to Section 3.3, such condition being irrefutably presumed to have been satisfied once the Sellers have signed a confirmation of receipt (the “Confirmation of Receipt”) substantially in the form as attached hereto as Exhibit 2.3 .

			

 

	
			2.4

				
			The shareholder’s meeting of the Company has approved the sale and transfer of the Shares by resolution dated 27 March 2018. A copy of such shareholders’ resolution is attached for identification purposes (zu Identifizierungszwecken) as Exhibit  2.4 .

			

 

	
			2.5

				
			The Sellers’ spouses have granted their consent to the conclusion and consummation of this Agreement by declarations dated 22/26 March 2018. Copies of such declarations are attached hereto for identification purposes (zu Identifizierungszwecken) as Exhibit  2.5 .

			

 

Section 3

Purchase Price

 

	
			3.1

				
			The aggregate purchase price for the Shares (the “Purchase Price”) shall be EUR 12,500,000 (in words: twelve million five hundred thousand Euros).

			

 

	
			3.2

				
			The Purchase Price shall be allocated amongst the Sellers pro rata to their shareholding in the Company inter se immediately prior to Closing, i.e. a portion of 50% of the Purchase Price shall be allocated to JL and a portion of 25% of the Purchase Price shall be allocated to each of DF and RB.

			

 

 

 

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			3.3

				
			The Purchase Price less (i) an amount of EUR 1,000,000 (in words: one million Euros) (“Holdback Amount”) and (ii) an amount of EUR 1,500,000 (in words: one million five hundred thousand Euros) (“Deferred Amount”) shall become due and payable on the Scheduled Closing Date according to Section 6.1 (v) (the “Closing Payment”) and shall be allocated amongst the Sellers in accordance with Section 3.2.

			

 

	
			3.4

				
			The Holdback Amount shall serve as security for the Purchaser’s claims against the Sellers under or in connection with this Agreement and shall be distributed to the Sellers as follows:

			

 

	
			3.4.1

				
			The Holdback Amount shall be released to the Sellers if and to the extent no claims have been raised in writing by the Purchaser pursuant to or in connection with this Agreement within 12 (twelve) months following the Closing Date (the “Holdback Period”).

			

 

	
			3.4.2

				
			In case the Purchaser raises a claim under or in connection with this Agreement within the Holdback Period against any of the Sellers that entitles the Purchaser to indemnification or other payments, the Purchaser shall not be obliged to release the corresponding part of the Holdback Amount and shall be entitled to ultimately retain and use for its own purposes the relevant portion of the Holdback Amount (i) upon receipt of a court decision confirming such claim or (ii) as agreed with the Sellers.

			

 

	
			3.4.3

				
			If and to the extent a claim has been raised by the Purchaser in writing within the Holdback Period but is not raised in court within three (3) months after the expiry of the Holdback Period, the part of the Holdback Amount which has not been further pursued in court shall be released to the Sellers provided that (i) the Holdback Period has expired and (ii) such part may not be held back in relation to a different claim, in each case unless agreed otherwise with the Sellers.

			

 

	
			3.4.4

				
			If and to the extent a claim has been raised by the Purchaser and a court decision finally and irrevocably rejects such claim in whole or in part, a corresponding part of the Holdback Amount that reflects such rejection shall be released to the Sellers, provided that (i) the Holdback Period has expired and (ii) such part may not be held back in relation to a different claim.

			

 

	
			3.4.5

				
			Any distribution of the Holdback Amount and/or parts thereof shall be allocated amongst the Sellers pursuant to Section 3.2. For the avoidance of doubt, the Holdback Amount shall not bear interest, and no accrued interest (if any) shall be distributed to the Sellers.

			

 

	
			3.5

				
			Subject to the occurrence of the Closing Date, the Deferred Amount shall become due and payable in three instalments as follows, whereas the Parties agree that such payment mechanism is intended to ensure that the Sellers (through their fully owned Founder OHG) are in a position to procure the fulfilment of the contribution obligations of the Founder OHG under the Partnership Agreement:

			

 

 

 

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			3.5.1

				
			On the later of (i) 02 May 2018 and (ii) the Closing Date, a first instalment of EUR 500,000 (in words: five hundred thousand Euros) shall be paid by the Purchaser or an Affiliate of the Purchaser directly to the JV Partnership. The Parties agree that such payment shall be (i) a payment on behalf of and for the account of the Sellers to the Founder OHG and (ii) a payment on behalf of the Founder OHG to the JV Partnership and shall be booked into the capital accounts of the Founder OHG at the JV Partnership as set forth in section 5.4 of the Partnership Agreement (which shall be concluded with effect as of the Closing Date in the form to be finally negotiated prior to the Closing Date; in particular the reference to section 5.4 might change);

			

 

	
			3.5.2

				
			On 02 May 2019, a second instalment of EUR 500,000 (in words: five hundred thousand Euros) shall be paid by the Purchaser or an Affiliate of the Purchaser directly to the JV Partnership. The Parties agree that such payment shall be (i) a payment on behalf of and for the account of the Sellers to the Founder OHG and (ii) a payment on behalf of the Founder OHG to the JV Partnership and shall be booked into the capital accounts of the Founder OHG at the JV Partnership as set forth in section 5.4 of the Partnership Agreement (which shall be concluded with effect as of the Closing Date in the form to be finally negotiated prior to the Closing Date; in particular the reference to section 5.4 might change);

			

 

	
			3.5.3

				
			On 02 May 2020, a third instalment of EUR 500,000 (in words: five hundred thousand Euros) shall be paid by the Purchaser or an Affiliate of the Purchaser directly to the JV Partnership. The Parties agree that such payment shall be (i) a payment on behalf of and for the account of the Sellers to the Founder OHG and (ii) a payment on behalf of the Founder OHG to the JV Partnership and shall be booked into the capital accounts of the Founder OHG at the JV Partnership as set forth in section 5.4 of the Partnership Agreement (which shall be concluded with effect as of the Closing Date in the form to be finally negotiated prior to the Closing Date; in particular the reference to section 5.4 might change).

			

 

	
			3.6

				
			Unless otherwise provided in this Agreement, the following shall apply regarding payments by the Purchaser and the Sellers:

			

 

	
			3.6.1

				
			Subject to Section 3.5 above, all payments by the Purchaser to the Sellers shall be made to the following bank accounts of the Sellers (the “Sellers’ Accounts”):

			

 

	 	
			(i)

				
			Payments to JL shall be made to the bank account at xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx);

			

 

	 	
			(ii)

				
			Payments to DF shall be made to the bank account at xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx); and

			

 

	 	
			(iii)

				
			Payments to RB shall be made to the bank account at xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx).

			

 

 

 

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			3.6.2

				
			All payments by the Sellers to the Purchaser shall be made to the account of the Purchaser at Commerzbank xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx (the “Purchaser’s Account”).

			

 

	
			3.6.3

				
			Any payment shall be deemed made as soon as it has been credited to the account of the recipient. All payments shall be made free and clear of any costs and charges for the recipient (except for charges of the receiving bank, which shall be borne by the relevant account holder).

			

 

Section 4

No Leakage

 

	
			4.1

				
			The Sellers hereby (i) guarantee to the Purchaser in each case by way of an independent and separate guarantee (selbstständiges und eigenständiges Garantieversprechen) in accordance with section 311 para. 1 of the German Civil Code that no Leakage has occurred during the period from and including the Effective Date until and including the Signing Date and (ii) undertake and covenant to the Purchaser that no Leakage will occur during the Period from the Signing Date until and including the Closing Date (the period from the Effective Date until the Closing Date the “Locked Box Period”).

			

 

	
			4.2

				
			Should a Leakage nevertheless have occurred or occur during the Locked Box Period, the Sellers shall notify the Purchaser without undue delay of such Leakage and shall reimburse to the Purchaser or, at the election of the Purchaser, the relevant Group Company, the amount of such Leakage on a Euro-for-Euro basis. Claims under this Section 4.2 shall, in deviation from the statutory provisions, be time-barred 12 (twelve) months after the Closing Date. Section 11.9 shall apply accordingly.

			

 

	
			4.3

				
			“Leakage” shall mean any payment or benefit (in money or in kind) or asset transfer or disposal made, granted, promised or having become due during the Locked Box Period by or for the account of a Group Company to (i) a Seller, (ii) an Affiliate of a Seller (for the avoidance of doubt, other than the Group Companies), or (iii) a relative of a Seller within the meaning of section 15 of the German Tax Code (Abgabenordnung, AO), in particular distributions in cash or in kind (either as a dividend, a distribution of reserve or otherwise), repayments of equity of any form, costs or bonuses or other form of ex gratia awards or payments in connection with the transactions contemplated hereunder, the conclusion and/or completion of any non-arm’s length agreements, assumptions of liabilities, guarantees, letters of comfort or similar instruments securing any indebtedness or other obligation as well as and waivers of claims by a Group Company, in each case in relation to any of the aforesaid persons or entities, and in each case other than a Permitted Leakage.

			

 

 

 

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			4.4

				
			“Permitted Leakage” shall mean (i) any Leakage set forth in Exhibit  4.4 and (ii) with regard to the period after the Signing Date any Leakage which has been approved in writing by the Purchaser in advance.

			

 

Section 5

Closing Conditions

 

	
			5.1

				
			In this Agreement, each of the following events is defined as a “Closing Condition”:

			

 

	
			5.1.1

				
			The legal merger control prohibition (Vollzugsverbot) (in accordance with the German Act against Restraint of Competition (Gesetz gegen Wettbewerbsbeschränkungen, GWB)) regarding the transaction contemplated under this Agreement has ceased to apply (weggefallen).

			

 

	
			5.1.2

				
			The transactions contemplated by and in connection with this Agreement can be lawfully consummated; in particular, there are no orders, judgments, injunctions or similar acts, which would prevent the lawful consummation.

			

 

	
			5.1.3

				
			Since the Effective Date no event, situation, circumstance, effect or change (each a “Change”) has occurred that individually or collectively with any other Change has or could reasonably be expected to have a negative impact on the assets and/or liabilities (Vermögenslage), financial condition (Finanzlage), the business, operations, operational results (Ertragslage) of any of the Group Companies amounting to more than EUR 2,000,000 (in words: two million Euros) and which, to the extent curable, had not been cured until the Closing Date (such a Change, a “Material Adverse Change”).

			

 

A Material Adverse Change shall not include any effect resulting from

 

	 	
			(i)

				
			any Change in general economic, business or industry conditions (including general developments of capital and financial markets or currency exchange rates), or any Change in local, regional, national or international conditions generally affecting the industry in which any of the Group Companies operates, unless such Change has an impact on the Group Companies that is grossly disproportionate to the impact on other businesses operating in that industry;

			

 

	 	
			(ii)

				
			any Change in applicable laws, GAAP or other applicable accounting standards or interpretations thereof generally affecting the industry in which any of the Group Companies operates;

			

 

	 	
			(iii)

				
			actions of the customers and/or suppliers of the Group Companies as a result of the transactions contemplated by this Agreement;

			

 

	 	
			(iv)

				
			any existing Change with respect to which the Purchaser has positive knowledge as of the date of this Agreement.

			

 

 

 

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			5.1.4

				
			The statements made in Section 1 above and Sections 9.1.3 and 9.1.8 below are still correct on the Closing Date.

			

 

	
			5.1.5

				
			The negotiations as regards the Partnership Agreement (including all Annexes thereto) pursuant to Section 16.1 have been completed and as a result thereof the final version of the Partnership Agreement (including all Annexes thereto) has been duly executed by the Sellers, the Company and the Founder OHG with the consent of the Purchaser and with effect as from the Closing Date.

			

 

	
			5.2

				
			Each Party shall inform the other Parties in each case of the satisfaction of a Closing Condition without undue delay (unverzüglich) after having obtained knowledge thereof.

			

 

	
			5.3

				
			The Purchaser may waive in whole or in part, by notice to the Sellers, the satisfaction of the Closing Conditions listed in Section 5.1 (except the Closing Condition under Section 5.1.1) and the receipt of written evidence of the satisfaction of any or all of the Closing Conditions in Section 5.1. If the Purchaser waives the satisfaction of a Closing Condition, such Closing Condition shall be deemed to have been satisfied only with regard to Sections 5.4 and 5.5 and such waiver shall be without prejudice to all other claims and rights of the Parties under this Agreement which shall remain unaffected by any waiver under this Section 5.3.

			

 

	
			5.4

				
			If the Closing Condition set forth under Section 5.1.5 has not been fully satisfied within three months after the Signing Date, the Purchaser shall be entitled to rescind (zurücktreten) this Agreement by notice to Sellers according to Section 7 with effect for and against all Parties to this Agreement. If the Closing Condition set forth under Section 5.1.1 (Merger Clearance) has not been fully satisfied within three months after the Signing Date, each Party (however, the Sellers only jointly) shall be entitled to rescind (zurücktreten) this Agreement by notice to the respective other Parties according to Section 7 with effect for and against all Parties to this Agreement. After a Closing Condition has been satisfied and the Purchaser (or the Sellers) has been informed thereof according to Section 5.2, a rescission due to its late satisfaction may no longer be declared. The right to rescind according to this Section 5.4 shall furthermore be excluded if the non-satisfaction of the Closing Condition is the result of actions or omissions of the respective rescinding Party.

			

 

	
			5.5

				
			A Party that is obliged to contribute to the satisfaction of a Closing Condition can assert the satisfaction of such Closing Condition against the other Party only after it has provided evidence of the satisfaction of such Closing Condition to such Party pursuant to Section 5.2. If the Closing Conditions set forth in Section 5.1.1 and Section 5.1.5 are satisfied at the latest on the 20th day of a calendar month (“Closing Month”) or between the 20th day and the last day of the month preceding the Closing Month, “Scheduled Closing Date” shall mean the last Business Day of the Closing Month. The Parties may agree on another day as Scheduled Closing Date.

			

 

 

 

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Section 6

Closing Actions

 

	
			6.1

				
			On the Scheduled Closing Date at 10 am (CET) at the business premises of Noerr LLP at Börsenstraße 1, 60313 Frankfurt am Main, unless the Parties have agreed on another time and/or location, the Parties shall take the following actions (the “Closing Actions”) in the following order:

			

 

	 	
			(i)

				
			The Sellers shall confirm that the Closing Conditions set forth under Sections through 5.1.4 are fulfilled as of the Closing Date;

			

 

	 	
			(ii)

				
			the Sellers shall deliver to the Purchaser an executed original of the Partnership Agreement (including all of its Annexes) between the Sellers, the Founder OHG and the Company as negotiated pursuant to Section 16.1 and effective as of the Closing Date;

			

 

	 	
			(iii)

				
			the Sellers shall deliver to the Purchaser an executed original of the fully restated managing director service agreement between JL and the Company as negotiated pursuant to Section 16.3;

			

 

	 	
			(iv)

				
			Each of DF and RB shall deliver to the Purchaser (i) an executed original of a resignation declaration by which they duly resign from their office as managing directors of the Company and the Subsidiary with effect as of the Closing Date and confirm that they have no outstanding claims against the Company and the Subsidiary which relate to the period prior to the Closing Date and (ii) executed originals of the duly executed employment agreements between the Company and DF and the Company or the Subsidiary and RB pursuant to Section 16.2;

			

 

	 	
			(v)

				
			the Purchaser shall transfer the Closing Payment to the Sellers’ Accounts pursuant to Section 3.3;

			
	 	 	 
	 	(vi)	the Sellers shall sign the Confirmation of Receipt and hand it over to the Purchaser;

   

	 	
			(vii)

				
			the Sellers shall grant a power of attorney to the Purchaser – substantially in the form of Exhibit 6.1 (vii)  – to exercise all shareholders’ rights connected to the Shares fully and without restriction;

			

 

	 	
			(viii)

				
			the Purchaser and the Sellers shall sign the Closing Protocol (“Closing Protocol”) substantially in the form of Exhibit 6.1 (viii) . Both the Sellers and the Purchaser shall receive a copy of the signed Closing Protocol.

			

 

No Party shall be obliged to perform a Closing Action, unless the other Party has performed all preceding Closing Actions it is obligated to perform.

 

 

 

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			6.2

				
			The Purchaser shall send to the acting notary (by courier, e-mail or fax) a copy of the signed Confirmation of Receipt immediately after the signing of the document. The acting notary shall not be obliged to verify the authenticity of the Sellers’ signatures in the Confirmation of Receipt. The Parties hereby instruct the acting notary to attach the copy of the Confirmation of Receipt received by him to this deed as well as to file an updated list of shareholders of the Company immediately upon receipt of the copy of the Confirmation of Receipt and provide the Company with a copy of such updated list of shareholders.

			

 

	
			6.3

				
			The Purchaser shall be entitled, by declaration to the Sellers, to waive the performance of the Closing Actions listed in Section 6.1 (i) through (iv) and (vi) through (vii), without its claims and other rights under this Agreement being affected by this waiver. To the extent that the Purchaser waives the performance of a Closing Action, such Closing Action shall be deemed to have been performed only with regard to Section 6.4, 6.5 and Section 6.6.

			

 

	
			6.4

				
			If the Purchaser or any of the Sellers fail to perform a Closing Action which they were obliged to perform on the Scheduled Closing Date, the respective other Parties shall be entitled to reschedule the Scheduled Closing Date to a date between (in each case including) the fifth and the tenth Business Day after the original Scheduled Closing Date. The Parties may also agree on another date or another procedure; Section 24 shall apply mutatis mutandis.

			

 

	
			6.5

				
			If the Purchaser or the Sellers have determined a new date as the Scheduled Closing Date pursuant to Section 6.4 and the respective other Parties once again fail to perform a Closing Action which they were obligated to perform on such date, the Party which has determined such new date as the Scheduled Closing Date shall be entitled to withdraw from this Agreement according to Section 7 by notice to the respective other Parties.

			

 

	
			6.6

				
			The day on which the last Closing Action has been performed shall be the “Closing Date”.

			

 

Section 7

Legal Consequences of a Rescission

 

	
			7.1

				
			If the Purchaser rescinds this Agreement according to Section 5.4 in conjunction with Section 5.1.4, the Sellers shall be obliged to pay lump sum damages (pauschaler Schadensersatz) in the amount of EUR 150,000 to the Purchaser to compensate the Purchaser for all costs and expenses incurred in connection with the preparation, negotiation and the notarisation of this Agreement. The Purchaser’s right to claim compensation for damages exceeding the lump sum shall remain unaffected.

			

 

	
			7.2

				
			In the event of a rescission, the provisions set out in Section 18 to Section 20, Section 22 and Section 23 shall continue to be effective; the rescission shall furthermore not affect any claims for costs and damages arising from the infringement of obligations under this Agreement. No Party can derive any other rights or claims from this Agreement.

			

 

 

 

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			7.3

				
			To the extent legally permitted, no Party is entitled to rescind this Agreement after the Closing Date.

			

 

Section 8

Merger Control Filing

 

	
			8.1

				
			The Parties agree that the Purchaser shall submit to the competent cartel authorities the necessary merger control filings of the proposed concentration set out in this Agreement. The Sellers already transferred information from their side for the merger control filing to the Purchaser and shall provide the Purchaser with any other information requested by the Purchaser for the preparation of such filing in good time and in complete and accurate form.

			

 

	
			8.2

				
			The Purchaser shall be obliged to submit the necessary merger control applications to the competent cartel authorities without undue delay and latest 10 (ten) Business Days following the Signing Date. The Purchaser will use reasonable efforts to comply with all deadlines stated by the cartel authorities and to take all measures necessary within the proceedings without undue delay. If this requires the Sellers’ support, the Sellers will ensure that the necessary measures are taken.

			

 

	
			8.3

				
			If one or more of the cartel authorities prohibit the merger, or grant clearance only under conditions (Bedingungen oder Auflagen), the Purchaser may within two weeks from receipt of the decision of the cartel authorities rescind this Agreement by notice to the Sellers with effect for and against all Parties to this Agreement. Prior to a rescission, the Purchaser, consulting with the Sellers, shall analyse whether the transaction contemplated under this Agreement can be conducted in compliance with the conditions stipulated or implemented in a modified manner, or whether the Parties shall take legal action against the prohibition or – if applicable – against any conditions stipulated, without being obliged to do so.

			

 

Section 9

Sellers’ Guarantees

 

The Sellers hereby guarantee to the Purchaser in each case by way of an independent and separate guarantee (selbstständiges und eigenständiges Garantieversprechen) in accordance with section 311 para. 1 of the German Civil Code that the statements contained in Section 9.1 to Section 9.18 (the “Sellers’ Guarantees”) are true and correct (zutreffend) as of the date of the signing and notarisation of this Agreement (the “Signing Date”) and with regard to the statements in Sections 9.1, 9.5.2 and 9.11, as well as of the Closing Date, or such other date provided for explicitly in a Sellers’ Guarantee. The Sellers’ Guarantees are neither quality guarantees concerning the subject matter of the purchase (Beschaffenheitsgarantie) within the meaning of sections 443, 444 German Civil Code nor agreements as to quality (Beschaffenheitsvereinbarung) within the meaning of section 434 para. 1 sentence 1 German Civil Code.

 

 

 

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			9.1

				
			Corporate issues

			

 

	
			9.1.1

				
			The statements made in Section 1 regarding the Group Companies are correct in every respect. The Group Companies are duly established under German law. They validly exist as trading entities and each has its center of administration (Verwaltungssitz) in Germany. Each of the Group Companies was and is entitled to continue to carry on its business without restriction.

			

 

	
			9.1.2

				
			The Shares in the Company, the shares in the Subsidiary, the Company Partnership Interest and the shares in the General Partner are lawfully established, fully (Company, JV Partnership and General Partner) and half (Subsidiary) paid-up, not liable for additional contributions (keine Nachschusspflicht) and no repayments or refunds in whole or in part, neither openly nor concealed have been made, nor have the Shares in the Company, the Company Partnership Interest, the shares in the General Partner and the shares in the Subsidiary been reduced or impaired by losses or drawings (Entnahmen). No transfers or other actions occurred with regard to the Shares which have not been entered in the list of shareholders attached as Exhibit 1.1. All applicable provisions under applicable law and articles of association regarding the increase and decrease of the registered share capital or partnership capital of the Group Companies have been duly observed; no concealed contributions in kind (verdeckte Sacheinlagen) have been made into the Group Companies.

			

 

	
			9.1.3

				
			The Sellers hold undivided and unrestricted title to the Shares as set forth in Section 1. The Company holds undivided and unrestricted title to all shares in the Subsidiary and the Company Partnership Interest and the JV Partnership holds undivided and unrestricted title to all shares in the General Partner (all shares in the Subsidiary, the Company Partnership Interest and the shares in the General Partner jointly with the Shares the “Group Participations”). The Group Participations are free of any claims, rights and privileges of third parties and the Sellers may freely dispose of the Group Participations (directly or indirectly) without any limitations and restrictions. In particular, neither liens, security interests, usage rights, fiduciary relationships or similar rights, nor conversion rights, call options, pre-emption rights or option rights or similar purchase options of third parties exist, including rights regarding the issuance of new shares or regarding the granting of voting rights (jointly “Liens”). There are no agreements or obligations as to the granting of such rights to third parties, and no third party has asserted any such claims.

			

 

	
			9.1.4

				
			The Group Participations have the full voting rights according to the percentage of participation in the share capital or partnership capital of each Group Company, as the case may be; no preclusion of voting rights (Stimmrechtsausschlüsse), voting trust agreements (Stimmrechtsbindungen) or any other limitations of voting rights exist.

			

 

 

 

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			9.1.5

				
			None of the Group Companies is obligated to purchase or dispose of a company in whole or in part or of participations of any kind; no preliminary contract (Vorvertrag) or other declaration of intent exists in such regard.

			

 

	
			9.1.6

				
			None of the Group Companies is a party to a cash-pool agreement. No silent partnership agreement (stille Beteiligung), loan with profit participation (partiarisches Darlehen), usufructuary right (Nießbrauchrecht), sub-participation, participation right (Genussrechte) or similar legal relationship exists, which provides for or grants a participation in profit, turnover or the remaining assets after liquidation of one of the Group Companies.

			

 

	
			9.1.7

				
			Except as disclosed in Exhibit  9.1.7, none of the Group Companies is party to an agreement, in particular a loan agreement or other obligations with the Sellers, a company affiliated with the Sellers according to section 15 of the German Stock Corporation Act (Aktiengesetz, AktG), a person with close connections to the Sellers according to section 138 of the German Insolvency Act (Insolvenzordnung, InsO) or a company affiliated with a person with close connections to the Sellers (each an “Affiliate”, and the aforementioned individuals jointly the “Sellers’ Group”).

			

 

	
			9.1.8

				
			No insolvency proceeding has been filed for or commenced with regard to the assets of the Sellers, any of the Group Companies and no legal proceedings or other enforcement measures (Zwangsvollstreckungsmaßnahmen) have been filed for or initiated with regard to any property or other assets of the Sellers or any of the Group Companies. Neither the Sellers nor any of the Group Companies is over-indebted (überschuldet), illiquid (zahlungsunfähig), has ceased or suspended payments (Zahlungen eingestellt) or entered into debt settlement arrangements (Schuldenbereinigungsabkommen) or similar agreements with creditors. No circumstances exist under which the commencement of insolvency or similar proceedings or an insolvency or similar challenge to this Agreement (Insolvenz- oder sonstige Anfechtung) would be justified or probable.

			

 

	
			9.1.9

				
			Exhibit  9.1.9 contains copies of the articles of association and excerpts from the commercial registers of the Group Companies. Such articles of association are valid and in full force and effect. Except as disclosed in Preamble (D), Exhibit 9.1.9 reflects all facts and information that require registration to the competent commercial registers as well as any other relevant corporate information with respect to the aforementioned companies; no additional articles of association or other shareholders’ agreements exist.

			

 

	
			9.1.10

				
			None of the Group Companies has a supervisory board, advisory board, administrative board or any similar corporate body, except as provided for in the Partnership Agreement. None of the Group Companies is bound by any workers ́ co-determination (Arbeitnehmermitbestimmung).

			

 

 

 

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			9.1.11

				
			Any mandatory notification requirements with regard to the Group Participations have been duly complied with within the proper time, in particular under section 16 of the German Limited Liability Company Law (Gesetz betreffend die Gesellschaften mit beschränkter Haftung, GmbHG) (including its version before the implementation of the German Act to Modernise the Law Governing Private Limited Companies and to Combat Abuses (Gesetz zur Modernisierung des GmbH-Rechts und zur Bekämpfung von Missbräuchen (MoMiG)).

			

 

	
			9.2

				
			Financial Statements

			

 

	
			9.2.1

				
			Exhibit  9.2.1 contains complete and accurate copies of (i) the financial statements of the Company and the Subsidiary, each including notes (Anhang) for the business years ending 31 December 2014, 31 December 2015 and 31 December 2016 (jointly the “Financial Statements”) and (ii) management accounts of the Company and the Subsidiary as per 28 February 2018 (the “Management Accounts”).

			

 

	
			9.2.2

				
			The Financial Statements and the Management Accounts are consistent with the accounting records (Buchhaltungsunterlagen) and the business documents (Geschäftspapiere) of the Company and the Subsidiary and have been prepared in accordance with any applicable laws and regulations and generally accepted accounting principles.

			

 

	
			9.2.3

				
			With regard to the preparation of the Financial Statements the valuation of balance sheet items (Bilanzansätze) has been determined using generally accepted accounting and valuation principles, and has been carried forward applying legally permitted accounting and valuation principles consistent with the last balance sheet dates, unless otherwise reported in the notes of the respective Financial Statement. The options with regard to the inclusion of items in the financial statements (Bilanzierungswahlrecht) as well as to the election of a valuation (Bewertungswahlrecht) have been exercised consistently with past practice, unless otherwise reported in the notes of the respective Financial Statement.

			

 

	
			9.2.4

				
			To the Sellers ́ Best Knowledge the Financial Statements give in all materiel respects a true and fair view (ein den tatsächlichen Verhältnissen entsprechendes Bild vermitteln) of the assets and liabilities (Vermögenslage), the financial condition (Finanzlage) and the operational results (Ertragslage) of the Company and the Subsidiary for the respective periods and at the respective balance sheet date. To the Sellers ́ Best Knowledge the Management Accounts have been prepared on the basis of the accounting records and business documents of the Company and the Subsidiary with the standard care of a prudent merchant (mit der Sorgfalt des ordentlichen Kaufmanns).

			

 

	
			9.2.5

				
			All accounting documents (Buchführungsunterlagen) of the Group Companies are up to date, available and have been prepared and maintained in accordance with the applicable laws and generally accepted accounting principles.

			

 

 

 

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			9.3

				
			Fixed Assets and Current Assets

			

 

	
			9.3.1

				
			The Group Companies are the legal and/or economic owners (rechtliche und/oder wirtschaftliche Eigentümer) of all fixed and current assets (Anlagevermögen und Umlaufvermögen) capitalised in the financial statements ending 31 December 2016 or acquired after the balance sheet date (the “Assets”), unless any such Asset has been disposed of after the Effective Date in the ordinary course of business of such Group Company, provided that the Parties acknowledge that the Assets of the Hydrogen Business are held by the JV Partnership as of the completion of the Carve-Out. Except as set forth in Exhibit 9.3.1, the Assets are not encumbered with any liens, pledges or other encumbrances or rights of repossession (Herausgabeansprüche) in favour of third parties except for rights of retention of title (Eigentumsvorbehalte), liens, statutory liens (gesetzliche Pfandrechte) or other security rights in favour of customers, suppliers, landlords, carriers and the like created in the ordinary course of business by the relevant Group Company in the balance sheet of which such Assets are to be shown.

			

 

	
			9.3.2

				
			Considering their age, use and book value all assets owned by the Group Companies (including all Assets pertaining to the Hydrogen Business) are in a serviceable and/or usable condition, have been treated carefully and properly and all required maintenance has been conducted. No investments or material capital expenditures have been deferred within the Group Companies. All movable assets (bewegliche Vermögensgegenstände) – including inventories (Vorräte) – which are necessary to conduct the respective business to the extent and in the manner as presently conducted are available to the respective Group Companies.

			

 

	
			9.4

				
			Liabilities

			

 

Exhibit  9.4 contains a complete and accurate list of all existing loans and financing agreements of the Group Companies as of the last Business Day before the Signing Date, detailing the outstanding principal, interest rate and repayment date.

 

	
			9.5

				
			IP Rights, Software, IT and Data Protection

			

 

	
			9.5.1

				
			For the purpose of this Agreement, “IP Rights” shall mean any and/or all registered or unregistered intellectual property rights, including but not limited to patents (Patente), utility models (Gebrauchsmuster), designs (Designs), trademarks (Marken) and commercial designations (geschäftliche Bezeichnungen), all including respective applications for intellectual property rights, licenses to intellectual property rights including any rights deriving from license agreements, database rights, rights to use, copy and exploit copyrights (urheberrechtliche Nutzungs-, Vervielfältigungs- und Verwertungsrechte) and related rights (verwandte Schutzrechte) as well as know-how, internet domain names, web pages, websites and related content, social media accounts with social media companies and the content found thereon and related thereto.

			

 

 

 

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			9.5.2

				
			To the Sellers’ Best Knowledge the Group Companies are the legal and lawful owners of all IP Rights necessary for the continued conduct of their businesses in compliance with the law to the extent and in the manner presently conducted (the “Necessary IP Rights”).

			

 

	
			9.5.3

				
			The Necessary IP Rights

			

 

	 	
			(i)

				
			are to the Sellers’ Best Knowledge all available to the relevant Group Companies without limitations, in particular no third party rights or similar claims exist with regard to a Necessary IP Right which might potentially adversely affect the business operations of the relevant Group Company to the extent and in the manner presently conducted;

			

 

	 	
			(ii)

				
			are to the Sellers’ Best Knowledge all legally valid and effective, in particular no Necessary IP Right has been challenged by a third party, and there is neither an indication that such challenge might arise, nor is there any other risk of the extinction or the invalidation of a Necessary IP Right except as listed in Exhibit 9.5.3 (ii) ;

			

 

	 	
			(iii)

				
			to the Sellers’ Best Knowledge are not being infringed by third parties, and to the Sellers’ Best Knowledge, there is no indication that there is a risk of such an infringement.

			

 

	
			9.5.4

				
			Exhibit  9.5.4 contains a complete and accurate list as of the date mentioned in the Exhibit of all IP Rights which are currently owned by any of the Group Companies or for which applications are pending (the “Owned IP Rights”) and which can be registered, specifying completely and accurately the date of the registration or application, the identification of the right as well as the jurisdictions under which the Owned IP Right is registered. With regard to the Owned IP Rights, all due fees have been paid and all actions necessary for their maintenance have been undertaken completely and in good time.

			

 

	
			9.5.5

				
			To the Sellers’ Best Knowledge the Owned IP Rights, their use or the business conducted by the Group Companies do not violate or infringe any IP Rights of third parties. No infringement, to the Sellers’ Best Knowledge, has been asserted by a third party.

			

 

	
			9.5.6

				
			The Group Companies have entered into valid agreements with all Employees, advisors and other third parties, who are or have been employed with one of the Group Companies in the area of research, software development or product development, marketing, layout or product design, or in similar areas (the “Developers”), under which all rights, which are essential for the operation of the Group Companies, pass to the relevant Group Company which the Developer may be entitled to with regard to an IP Right developed in connection with his/her activity for or in the course of the business of the relevant Group Company. No Developer is entitled to a right or claim of any kind against any of the Group Companies on the basis of the German Law on Employee Inventions (Gesetz über Arbeitnehmererfindungen, ArbnErfG) or on any other basis.

			

 

 

 

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			9.5.7

				
			The Group Companies lawfully use any software and own, except in the case of sole in-house developments, licenses which comply with the actual usage of such software in quality and quantity. In particular with regard to the development of orders (development of individual software by third parties), the proprietary usage and exploitation rights have been contractually transferred to the relevant Group Companies with full legal effect and to a sufficient extent.

			

 

	
			9.5.8

				
			With the exception of standard software, Exhibit  9.5.8 contains a complete and accurate list of all IP Rights licensed to any of the Group Companies by a third party. With regard to the IP Rights listed in Exhibit 9.5.8 (as well as regarding standard software) no termination rights of the licensor exist as a consequence of the conclusion or implementation of this Agreement.

			

 

	
			9.5.9

				
			Exhibit  9.5.9 contains a complete and accurate list of all Owned IP Rights any of the Group Companies licensed to a third party.

			

 

	
			9.5.10

				
			Except as disclosed in Exhibit  9.5.10, the Group Companies own, or have lawfully and in due form leased or rented, or have been licensed for at least twelve months from the Closing Date the complete hardware, communication systems, networks and other information technology, which is needed by the Group Companies to carry on their business operations to the extent and in the manner presently conducted (“IT”), or the Group Companies are entitled to use such IT to an unlimited extent based on other arrangements for at least twelve months from the Closing Date. The IT is in considering their age, use and book value in sound and serviceable condition allowing the Group Companies to conduct their business operations to the extent and in the manner presently conducted for a term of at least twelve months. To the Sellers’ Best Knowledge, the Group Companies have taken reasonable measures for external data backup (externe Datensicherung), which in the event of a breakdown or a disruption of the IT allows the uninterrupted and unrestricted continuation of the business operations of the Group Companies.

			

 

	
			9.5.11

				
			To the Sellers’ Best Knowledge the Group Companies have taken all appropriate actions necessary to protect all their operational and business secrets from unauthorised access by a third party.

			

 

	
			9.5.12

				
			To the Sellers’ Best Knowledge every Group Company collects, processes, saves and protects personal data of every kind, in particular that of employees and customers in accordance with data protection regulations. None of the Group Companies has processed or passed on any such data without the required consent granted in due form by the person concerned or without the existence of a statutory authorisation in connection with the operational Business of the Group Companies.

			

 

 

 

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			9.5.13

				
			To the extent required by law, each of Company and the Subsidiary have appointed an internal data protection supervisor (Datenschutzbeauftragte) or has reported its data processing to the competent supervising authority for data protection (datenschutzrechtliche Aufsichtsbehörde).

			

 

	
			9.6

				
			Business Premises and Operational Areas, Real Property

			

 

	
			9.6.1

				
			Exhibit  9.6.1 contains a complete and accurate list of the real property (including joint ownership (Miteigentum), partial ownership (Teileigentum) and separate property (Sondereigentum)) owned by one or more of the Group Companies, or in which one or several of the Group Companies have equivalent rights (grundstücksgleiche Rechte). Except for the encumbrances and third party rights listed in Exhibit 9.6.1, there are no encumbrances or third party rights on the real property owned and the rights equivalent to a real property right listed in Exhibit 9.6.1.

			

 

	
			9.6.2

				
			Exhibit 9.6.2 contains a list of all leases (Miet- und Pachtverträge) regarding business premises and operational areas of any of the Group Companies, including amendments, with complete and accurate information regarding the parties to the lease, the subject matter of the lease, the rent, the term of the agreement as well as the notice period; the leases are valid and in the correct form.

			

 

	
			9.6.3

				
			The Group Companies can conduct their business operations to the extent and in the manner presently conducted on the real estate listed in Exhibit 9.6.1 and the business premises and operational areas identified in Exhibit 9.6.2; no additional business premises and/or operational areas are necessary or required to conduct their business operations to the extent and in the manner presently conducted.

			

 

	
			9.6.4

				
			Except as listed in Exhibit  9.6.4 , the business operations of the Group Companies have not resulted – in the five years prior to Signing to present – in an impairment of health for which one of the Group Companies is liable or might be held liable. The fresh water supply as well as the disposal of sewage, gas and other emissions are carried out by service companies and is secured with regard to the real estate, buildings and other facilities and installations used by the Group Companies, and to the Sellers` Best Knowledge are conducted in accordance with the applicable laws, regulations and orders.

			

 

	
			9.7

				
			Insurance

			

 

	
			9.7.1

				
			Exhibit 9.7.1 contains a complete and accurate list of the insurances taken out by and/or for the account of one of the Group Companies, each with complete and accurate specifications with regard to the expiration date and the insurance premium.

			

 

	
			9.7.2

				
			The insurances listed in Exhibit 9.7.1 validly exist, are in full force and effect and have not been terminated. No Group Company has failed to pay its premiums, nor is any Group Company underinsured. To the Sellers’ Best Knowledge there are no circumstances that could cast a doubt on the existence of insurance coverage in accordance with the terms and conditions of the insurances.

			

 

 

 

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			9.7.3

				
			Subject to the terms and conditions of the insurance contracts, the insurance policies listed in Exhibit 9.7.1 will provide the Group Companies with coverage for all claims (Schadensfälle) occurring until the Signing Date. The Sellers hereby covenant and guarantee that they will not take any measures or actions that would result in a reduction of such insurance coverage for the period until and including the Closing Date and that they will not allow such insurance policies to expire before the Closing Date.

			

 

	
			9.7.4

				
			Irrespective of existing insurance coverage and except to the cases listed in Exhibit  9.7.4 or Exhibit 9.6.4 neither bodily injury (Personenschaden), nor financial or property damage exceeding the amount of EUR 20,000, for which a Group Company could be held liable other than in the ordinary course of business, has occurred since 1 January 2017.

			

 

	
			9.8

				
			Customer and Supplier Relationships

			

 

	
			9.8.1

				
			Exhibit  9.8.1 contains a complete and accurate list of the ten (10) main customers and suppliers, calculated by the invoiced amount, of each of the Company and the Subsidiary in the period of 2015, 2016 and 2017 (per 3 November). The Sellers are unaware of any factors that the conclusion or the implementation of this Agreement and/or the implementation of the Transaction will lead to a reduction of the volume of the business relationships with these customers and suppliers. The Purchaser is aware of Change of Control clauses contained in the service agreement with Franken Maxit GmbH & Co KG and the purchase agreement with FTE Automotive Systems GmbH, which allows the aforementioned customers to terminate the agreements based on the conclusion or implementation of this Agreement. Furthermore, the Purchaser is aware that the supply contract for the rotational speed sensor between the Subsidiary and FTE Automotive Systems GmbH will end in the first quarter of 2018.

			

 

	
			9.8.2

				
			Except for such contracts listed in Exhibit 9.8.2 none of the Group Companies is subject to restraint on competition which limits or excludes the right of any of the Group Companies to operate in a specific business sector or an industry or geographical region. None of the Group Companies has entered into any other anticompetitive arrangements with third parties or practices them.

			

 

	
			9.9

				
			Material Agreements

			

 

 

 

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			9.9.1

				
			Exhibit  9.9.1 contains at the date of Signing a complete and – with respect to the details regarding the parties, title of the agreement, date of conclusion and reference to the relevant section in the Data Room – correct list of agreements, which have not been performed yet (including unfulfilled accessory obligations (Nebenpflichten), conditional or future obligations), which fall into at least one of the following categories (jointly the “Material Agreements”), and which have been entered into by any of the Group Companies in written, oral or in any other form (the Parties agree that relevant agreements are mentioned only once):

			

 

	 	
			(i)

				
			Agreements regarding real property transactions of any kind, including the acquisition, encumbrance, or the sale of real property or rights equivalent to a real property right;

			

 

	 	
			(ii)

				
			Agreements regarding the sale or transfer by way of security, assignment, pledge or other encumbrance of assets – independent of whether or not such assets can be included on the balance sheet – to the extent such assets individually or jointly have a value in a balance sheet of at least EUR 10,000; agreements of the same kind or agreements aiming towards the same goal are considered to be one single agreement;

			

 

	 	
			(iii)

				
			Agreements regarding investments in fixed assets subject to such investments individually of more than EUR 20,000 and jointly having total investment volume of EUR 50,000 or more; agreements of the same kind or agreements aiming towards the same goal are considered to be one single agreement;

			

 

	 	
			(iv)

				
			Agreements regarding the acquisition, the formation, the sale or the encumbrance of participations – including silent participations – (including the acquisition by a company of its own shares as well as the redemption (Einziehung) of shares of any of the Group Companies), enterprises, businesses or parts thereof, in full or in essential parts;

			

 

	 	
			(v)

				
			Agreements regarding the opening of new divisions (Geschäftszweige) or branch offices (Zweigniederlassungen), the abandoning of divisions and the closing of permanent establishments (Betriebsstätten);

			

 

	 	
			(vi)

				
			Usufructuary agreements, leases (Pacht-, Miet- und operating Leasingverträge), which - with the exception of leasing contracts for company cars - impose annual (per calendar or contract year) payments of a minimum of EUR 20,000 on one party;

			

 

	 	
			(vii)

				
			Agreements regarding loans (Darlehensverträge), credits (Krediteröffnungsverträge), factoring, finance leasing (Finanzierungsleasingverträge) or other financing agreements, except for customary deferrals (Stundungen), loans to employees and short term loans with an aggregate volume of up to EUR 15,000 which have been granted in the ordinary course of business;

			

 

	 	
			(viii)

				
			Agreements regarding guarantees (Garantien), sureties (Bürgschaften), assumptions of debts (Schuldübernahme, Schuldbeitritt), indemnifications (Freistellungserklärungen), letters of comfort (Patronatserklärung) and other provisions of security of any kind issued by any of the Group Companies or by a third party in order to secure an obligation of any of the Group Companies with the exception of bank guarantees relating to customer prepayments;

			

 

 

 

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			(ix)

				
			Agreements regarding derivatives according to section 2 para. 2 of the German Securities Trading Act (Wertpapierhandelsgesetz, WpHG) as well as warrants (Optionsscheine);

			

 

	 	
			(x)

				
			Distributor (Vertragshändler) and commercial agent (Handelsvertreter) agreements or similar agreements;

			

 

	 	
			(xi)

				
			Agreements providing for compensation based on profit or turnover;

			

 

	 	
			(xii)

				
			Joint Venture, consortium, cooperation and similar agreements;

			

 

	 	
			(xiii)

				
			Agreements or obligations which have been entered into or incurred outside the ordinary course of business;

			

 

	 	
			(xiv)

				
			Agreements between Group Companies as well as agreements between any of the Group Companies of the one part and the Sellers and/or a member of the Sellers’ Group of the other part;

			

 

	 	
			(xv)

				
			Consultancy agreements, which impose or may impose – based on current knowledge – a payment of EUR 10,000 or more per placed order or per calendar year 2018 on any of the Group Companies;

			

 

	 	
			(xvi)

				
			Other agreements or obligations other than with customers or suppliers, which (a) provide for the payment of EUR 50,000 or more annually by any of the Group Companies, (b) provide for the payment of EUR 20,000 or more and cannot be terminated by either party with notice before the 31 December 2018, or will expire on 31 December 2018 at the earliest or exceed a term of 12 months or (c) may not be terminated with notice at all.

			

 

Exhibit 9.9.1 also contains a complete and – with respect to all details included therein – correct list of offers aiming toward the conclusion of a Material Agreement.

 

	
			9.9.2

				
			All Material Agreements have been entered into at arm’s length terms and establish valid, legally binding and enforceable rights of the Group Company involved. Except as disclosed in Exhibit  9.9.2, no Material Agreement has been terminated with or without notice or amended since 31 December 2016. Neither the Sellers nor any of the Group Companies have received any information indicating that within the next two (2) years a Material Agreement will be terminated, ended or substantially amended, unless the Material Agreement expires earlier anyway.

			

 

	
			9.9.3

				
			To the Sellers’ Best Knowledge none of the Group Companies and none of their counterparties are currently in breach of any obligation under any of the Material Agreements or have been in breach of any obligation within the last three (3) years; in particular, without limitation, no Group Company and none of their counterparties are in delay (Verzug) with any material obligation of a Material Agreement.

			

 

 

 

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			9.9.4

				
			Except as listed in Exhibit  9.9.4 , no Material Agreement contains a provision which entitles the counterparty to prematurely terminate or amend such Material Agreement due to the conclusion or the implementation of this Agreement or due to another change of control in any of the Group Companies. To the Sellers’ Best Knowledge, no termination or cessation of a Material Agreement by the counterparty threatens based on the conclusion or implementation of this Agreement.

			

 

	
			9.10

				
			Employment Relationships

			

 

	
			9.10.1

				
			Exhibit  9.10.1(1) contains at the date of Signing a complete and – with respect to all details included therein – correct list of all members of corporate bodies (Organmitglieder) as well as employees (including trainees and part time employees) of the Group Companies, each specified by complete and – with respect to all details included therein – correct descriptions of position/occupation, date of birth, date of entry, gross annual remuneration for the fiscal year 2017 (including all bonuses and similar incentives), weekly hours of work. Except as listed in Exhibit  9.10.1(2) , none of the Group Companies employs freelancers. Members of corporate bodies as well as employees and freelancers of any of the Group Companies will hereinafter be jointly referred to as the “Employees”.

			

 

	
			9.10.2

				
			Exhibit  9.10.2 contains at the date of Signing the standard employment agreements for employees of the Group Companies.

			

 

	
			9.10.3

				
			Exhibit  9.10.3(i) contains a list of the service agreements of all managing directors of the Company and the Subsidiary currently in force, in each case indicating contract date and current gross monthly salary. For identification purposes (zu Identifizierungszwecken), copies of the relevant agreements including all supplements, addenda and/or shareholders’ resolutions covering the current managing directors` salaries are attached hereto as Exhibit 9.10.3(ii). The Parties acknowledge for the purpose of this Section 9.10.3 that the salary of RB is paid by the Subsidiary. No managing directors of the Group Companies fulfil the negative appointment conditions listed in section 6 para. 2 sentence 2 of the German Limited Liability Company Law (Gesetz betreffend die Gesellschaften mit beschränkter Haftung, GmbHG). No dormant service or employment agreement exists within the Group Companies.

			

 

	
			9.10.4

				
			Other than the loans to (i) Mxxxxxxxxxxxxxr dated 2 February 2009 as amended on 5 July 2016 for originally EUR 24,000 and (ii) Mxxxxxxxxxxxxxx dated 31 July 2012 as amended on 21 July 2014 and on 23 February 2017 for originally EUR 9,200 , there are no loans granted or promised to Employees.

			

 

 

 

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			9.10.5

				
			Beyond the current monthly accounting period (monatliche Abrechnungsperiode), no former or current Employee is entitled to remuneration or other entitlements (excluding entitlement to compensation for accrued and unused vacation (Urlaubsabgeltung) or overtime compensation (Freizeitausgleich)) against any of the Group Companies, such entitlements exceeding the aggregate amount of EUR 50,000. No former or current Employee has a compensation claim under a (current or future) post contractual non-competition clause.

			

 

	
			9.10.6

				
			No current or former Employee receives remuneration based on profit or success, such as commission (Provision), bonuses, royalties or other participations in the earnings of any of the Group Companies, independent from the manner of its calculation.

			

 

	
			9.10.7

				
			No current or former Employee is entitled to an amount of the company pensions (Betriebsrente, Versorgungsleistungen) as well as other benefits (both forfeitable and non-forfeitable). In addition, none of the Group Companies grants other social benefits under a collective agreement. No rearrangement of the company pension schemes has been conducted in the last five (5) years.

			

 

	
			9.10.8

				
			No managing director or member of the senior management (leitender Angestellter) identified in Exhibit  9.10.8 of any of the Group Companies (the aforementioned jointly the “Key Employees”) has terminated his/her employment, and to the Sellers’ Best Knowledge there is no indication that a Key Employee intends to terminate or otherwise cease his/her employment.

			

 

	
			9.10.9

				
			Within the last five years, none of the Group Companies has taken over a business or a part of a business from third parties, which might result in a transfer of (a part of a) business according to section 613 a of the German Civil Code (for the avoidance of doubt, other than in the course of the Carve-Out). Neither has any of the Group Companies otherwise undertaken to offer third parties employment or a service agreement, or is otherwise obliged to take over such employment or service agreement other than by transfer of (a part of a) business.

			

 

	
			9.10.10

				
			There are no shop agreements, collective bargaining agreements, company collective bargaining agreements and work council agreements (Regelungsabsprachen) effective at any of the Group Companies (directly or due to after-effect (Nachwirkung)).

			
	 	 
	9.10.11	No works council exists with regard to the business of any of the Group Companies. To the Sellers’ Best Knowledge within none of the Group Companies there is an intention of employees or a trade union to arrange for elections of workers’ representation (Arbeitnehmervertretung).

 

	
			9.10.12

				
			No in-house labour practices (betriebliche Übung) or general promises (Gesamtzusagen) exist within any of the Group Companies, which might entitle Employees to claims of any kind, or which might incur an obligation on any of the Group Companies to render services of any kind exceeding the annual aggregate amount of EUR 20,000.

			

 

 

 

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			9.10.13

				
			To the extent any of the Group Companies has employed temporary employees (Leiharbeitnehmer) within the last three years until and including the date hereof, the service providers providing such temporary employees were selected by the Sellers with the care of a prudent business man (Sorgfalt eines ordentlichen Geschäftsmanns) and neither the Sellers nor any of the Group Companies have received any written information indicating that such temporary employees received a salary below the standards of equal pay (if applicable) and minimum wage, that social security contributions in relation to such temporary employees were not fully paid or that the employment of such temporary employees was not in line with applicable collective bargaining agreements. To the Sellers’ Best Knowledge, the Group Companies have only employed temporary employees within the last three years until and including the date hereof from providers who held or hold (as the case may be) for the relevant period a valid permit for the supply of temporary workers according to the German Act on Temporary Employment (Arbeitnehmerüberlassungsgesetz).

			

 

	
			9.11

				
			Permits

			

 

	
			9.11.1

				
			The Group Companies have obtained and are operating in compliance with all necessary public law licenses, consents, concessions and permits of any kind required for the conduct of their business operations and the construction and operation of their buildings, facilities, and installations (jointly the “Permits”), including Permits which any governmental authority considers necessary according to any notification received by any of the Group Companies up to the Signing Date. The buildings, installations, facilities and business operations of the Group Companies have been established and are conducted in compliance with the Permits necessary to conduct the business operations of the Group Companies to the extent and in the manner presently conducted.

			
	 	 
	9.11.2	All Permits necessary to conduct the business operations of the Group Companies to the extent and in the manner presently conducted are in full force and effect, and none of the Permits has been entirely or partly terminated, withdrawn, restricted or revoked. To the Sellers’ Best Knowledge no information or circumstances exist which might justify the withdrawal, restriction or revocation of a Permit or the imposition of a condition (belastende Auflage) by a governmental authority, including as a consequence of the conclusion or implementation of this Agreement. No Permit will expire within a term of 12 (twelve) months after the Closing Date.

 

	
			9.12

				
			Legal Proceedings/Product Liability

			

 

	
			9.12.1

				
			Except for the legal dispute between the Subsidiary and Nestinox B.V. (Az. (63) 1 O 278/16) there are no judicial, arbitrational or legal proceedings (including any administrative proceedings or enquiries or out of court disputes) (the “Legal Proceedings”) which have not been finally been brought to an end or which to the Sellers’ Best Knowledge are threatened or intended, and in which any of the Group Companies is involved, or which might result in any kind of obligation or liability of any of the Group Companies (including pecuniary penalties and administrative fines).

			

 

 

 

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	9.12.2	To the Sellers’ Best Knowledge no criminal proceedings (Strafverfahren) or proceedings for the imposition of administrative fines (Bußgeldverfahren) (including preliminary proceedings (Ermittlungsverfahren)) is pending against a Key Employee or have been brought to an end since 1 January 2014. Excepted from this Section 9.12.2 are traffic offences (Verkehrsordnungswidrigkeiten) which have resulted or are likely to result in an administrative fine not exceeding EUR 500 and/or in a driving ban (Fahrverbot) for a period of less than three (3) months.
	 	 
	
			9.12.3

				
			Except as disclosed in Section 9.12.1 no judicial, arbitrational, administrative or other enforceable decisions or arrangements that brings a current proceeding to an end (verfahrenserledigende Vereinbarungen) exist, which oblige any of the Group Companies to perform any action, or restrict any of the Group Companies from performing any action.

			

 

	
			9.12.4

				
			Prior to the Effective Date, none of the Group Companies designed, manufactured, distributed or otherwise delivered any products for the use of third parties or provided any services, which have given or could give rise to liability or other obligations on the basis of product liability, warranty, or any other legal ground, and no such liabilities or obligations have been alleged with regard to periods before the Effective Date. To the Sellers’ Best Knowledge, with regard to the period after the Effective Date and until the Signing Date, no such claims have been alleged in writing against any of the Group Companies. The Parties agree that the Sellers shall not be liable under this Section 9.12.4 if and to the extent a respective provision was made with regard to a product warranty (Gewährleistungsrückstellung) in the respective Financial Statements.

			

 

	
			9.12.5

				
			Up to the Signing Date none of the Group Companies has recalled a product (Produktrückruf) since 01 January 2014 or is considering the conduct of such a measure.

			

 

	
			9.13

				
			Compliance with Regulations

			
	 	 
	 	To the Sellers’ Best Knowledge each of the Group Companies has complied with applicable laws, decrees and administrative acts (jointly the “Regulations”) and has not infringed any third party rights. To the Sellers’ Best Knowledge no Group Company has been involved in any incident that could be regarded as offering or granting a bribe (Bestechung), taking a bribe (Bestechlichkeit), offering or granting an undue advantage (Vorteilsgewährung), taking an undue advantage (Vorteilsannahme) or committing a similar offense under foreign laws.

 

 

 

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			9.14

				
			Public Grants

			
	 	 
	 	Exhibit  9.14 contains a complete and – with respect to all details included therein – correct list of all governmental subsidies (state aids as well as EU subsidies) exceeding the amount of EUR 20,000 per individual case, in particular according to Art. 107 of the Treaty on the Functioning of the European Union (Vertrag über die Arbeitsweise der Europäischen Union, AEUV) (jointly the “Public Grants”), which have been granted to any of the Group Companies since 1 January 2012. To the extent marked as such, Exhibit 9.4 contains a complete and correct list of all subsidised loans to any of the Group Companies. A Public Grant shall be deemed to have been granted in accordance with the first sentence of this Section 9.14 at the time when the (first) official notification of approval (Erst-Bewilligungsbescheid) has been issued or, if no such official notification of approval has been issued, at the time when the relevant Public Grant has actually been paid or otherwise rendered.  The Parties are aware that the conditions for Public Grants may deteriorate as a result of the conclusion or the implementation of this Agreement or the Carve-Out of the Hydrogen Business mentioned in Section 14.

 

	
			9.15

				
			Conduct of Business since the Effective Date

			

 

	
			9.15.1

				
			From the Effective Date until Signing Date, the business operations of the Group Companies have been conducted in the ordinary course of business, with the standard of care of a prudent business man (Sorgfalt eines ordentlichen Geschäftsmanns) and consistent with past practice, in particular with regard to the scope of stock keeping and supply inventory (Vorrats-Lagerhaltung), money transfers, the ratio of debt to net equity (except as disclosed in Exhibit  9.15.1 ), the receivables, the obligations, the investments and the valuation methods; in particular, except as disclosed in Exhibit 9.15.1, none of the following measures have been taken at any of the Group Companies:

			

 

	 	
			(i)

				
			making any changes to the articles of association of any of the Group Companies or passing any other shareholder resolutions;

			

 

	 	
			(ii)

				
			increasing or decreasing the registered share capital including the generation and/or exploitation of authorised capital or granting or disposing of subscription rights, option rights and other rights relating to the acquisition of shares;

			

 

	 	
			(iii)

				
			paying dividends, transferring profits (other than under a profit and loss transfer agreement), advance payments on account of profits or passing a resolution about the aforementioned measures;

			

 

	 	
			(iv)

				
			performing measures under the Reorganisation of Companies Act (Umwandlungsgesetz, UmwG) or entering into inter-company agreements within the meaning of sections 291 et seq. of the German Stock Corporation Act) (Unternehmensverträge);

			

 

 

 

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			(v)

				
			acquiring, forming, selling or encumbering of participations – including silent partnerships – (including the acquisition by the Company of its own company shares as well as the withdrawal (Einziehung) of shares of any of the Group Companies), enterprises, businesses or parts of businesses, in full or in essential parts and entering into obligations directed towards the same;

			

 

	 	
			(vi)

				
			opening of new divisions (Geschäftszweige), branches of business or regional offices (Zweigniederlassung), abandoning of divisions and/or closing of permanent establishments;

			

 

	 	
			(vii)

				
			concluding, terminating or amending a Material Agreement except in the ordinary course of business and consistent with past practice;

			

 

	 	
			(viii)

				
			incurring a liability or other engagement exceeding the amount of EU 25,000 in each individual case or in a series of related incidents, except for liabilities from trade payables in the ordinary course of business and consistent with past practice;

			

 

	 	
			(ix)

				
			entering into real property transactions of any kind, including the acquisition, encumbering, or the sale of real property or rights equivalent to a real property right except in the ordinary course of business and consistent with past practice;

			

 

	 	
			(x)

				
			disposing of any fixed assets with a book value exceeding EUR 100 in the aggregate other than in the ordinary course of business;

			

 

	 	
			(xi)

				
			assigning and transferring for security purposes, pledging, encumbering or otherwise burdening tangible and intangible assets – whether to be shown in the balance sheet (bilanzierungsfähig) or not – in each case except in the ordinary course of business and consistent with prior practice;

			

 

	 	
			(xii)

				
			making investments in the fixed assets of more than EUR 5,000 in each individual case or in a series of related incidents, except in the ordinary course of business and consistent with prior practice;

			

 

	 	
			(xiii)

				
			entering into usufructuary agreements or leases (Pacht-, Miet- und Leasingverträge) other than in the ordinary course of business and consistent with past practice;

			

 

	 	
			(xiv)

				
			taking up loans, entering into credit agreements, factoring, finance leasing or into other financing agreements;

			

 

	 	
			(xv)

				
			issuing of or entering into guarantees, sureties, assumptions of debt (Schuldübernahmen), accession to debt (Schuldbeitritt), indemnifications or letters of comfort (Patronatserklärungen) or any other liability for debts of third parties or providing other security of any kind by any of the Group Companies, except in the ordinary course of business and consistent with past practice;

			

 

 

 

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			(xvi)

				
			repaying loans to the shareholders or companies affiliated with them, except in the ordinary course of business and consistent with past practice;

			

 

	 	
			(xvii)

				
			materially changing the research and development, production, purchasing, distribution, marketing or personnel policy, except in line with the applicable business plan disclosed to the Purchaser and except as disclosed in Exhibit 9.15.1;

			

 

	 	
			(xviii)

				
			making any changes in the fixed and/or variable remuneration, other extra compensation except in the ordinary course of business, or making changes in pensions or severance pay as well as making a commitment relating to the aforementioned issues;

			

 

	 	
			(xix)

				
			employing or dismissing Employees with a gross annual income of EUR 50,000 or more in the individual case;

			
	 	 	 
	 	(xx)	negotiating, entering into or acknowledging collective bargaining agreements;
	 	 	 

	 	
			(xxi)

				
			except as disclosed in Section 9.12.1 actively initiating a legal proceeding or concluding legal proceedings with an amount in dispute of EUR 25,000 or more in each individual case;

			

 

	 	
			(xxii)

				
			Acquiring, disposing, licensing (inbound or outbound) any IP Rights from/to third parties other than in the ordinary course of business and consistent with past practise;

			

 

	 	
			(xxiii)

				
			making any change in any method of accounting or auditing practice, ex-cept as required by applicable laws.

			

 

	
			9.15.2

				
			No Material Adverse Change has occurred since the Effective Date.

			

 

	
			9.16

				
			Information, Disclosure and Documentation

			
	 	 
	 	All agreements, documents and information provided to the Purchaser or its advisors which were available in the Data Room in connection with the transaction contemplated by this Agreement correctly reflect as of the date the respective documents, agreements and information were provided the legal and factual circumstances of the Group Companies stated therein.

 

	
			9.17

				
			Commissions, Introduction Fees, etc.

			
	 	 
	 	None of the Group Companies is obliged to pay any commissions, introductory fees, consultation fees, bonuses, extra pay, severance or any other payment in connection with the conclusion or the implementation of this Agreement or has already made such payments. In addition, such payments of the Group Companies have neither been granted nor promised to a Key Employee by a member of the Sellers’ Group or a third party.

 

 

 

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			9.18

				
			Conclusion of the Agreement

			

 

	
			9.18.1

				
			Except as shown in Exhibit  9.18.1 , none of the Sellers nor any of the Group Companies is obliged to report the conclusion or implementation of this Agreement to a third party or to obtain approval from a third party.

			

 

	
			9.18.2

				
			None of the Sellers violate any applicable Regulations, rights of third parties or obligations of any kind by concluding or by the implementation of this Agreement. The conclusion and implementation of this Agreement (including the Carve-Out) do not result in the withdrawal, termination, amendment of, or otherwise interfere with or endanger, any rights or legal relationships of any of the Group Companies, nor constitute any rights of cancellation or reclaim or other rights of any counter party of any of the Group Companies or third parties. The Parties are aware that the conditions for Public Grants may deteriorate as a result of the conclusion or the implementation of this Agreement or the Carve-Out of the Hydrogen Business mentioned in Section 14.

			

 

	
			9.18.3

				
			There is no action, law suit, investigation or proceeding pending or, to the Sellers’ Best Knowledge, threatened against the Sellers or any of the Group Companies before any court, arbitration panel or governmental authority which in any manner challenges or seeks to prevent, alter or delay the transaction contemplated herein. To the Sellers' Best Knowledge, there are no circumstances which would justify the institution of such action, law suit, investigation or proceeding or make it seem likely.

			

 

Section 10

Sellers’ Best Knowledge

 

	
			10.1

				
			For the purpose of this Agreement, the “Sellers’ Best Knowledge” shall encompass only the actual knowledge (tatsächliche Kenntnis) or grossly negligent ignorance (grob fahrlässige Unkenntnis) of any of the Sellers and/or Mr Bas Groenen.

			

 

	
			10.2

				
			The Parties are in agreement that the knowledge of any of the persons mentioned in Section 10.1 or Employee shall not be attributed to the Purchaser.

			

 

 

 

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Section 11

Remedies

 

	
			11.1

				
			If and to the extent any of the Sellers’ Guarantees is breached (“Breach of a Sellers’ Guarantee”), the Sellers shall

			

 

	 	
			(i)

				
			within the period of three months restore the position that would have existed if the Breach of a Sellers’ Guarantee had not occurred (restitution in kind - Naturalrestitution), or

			

 

	 	
			(ii)

				
			insofar as natural restitution is not possible or is not adequate, the Sellers shall pay, either to the Purchaser or, at the request of the Purchaser, to the relevant Group Company, the amount which is necessary to create the position that would have existed if the relevant Sellers’ Guarantee had been correct, or

			

 

	 	
			(iii)

				
			if the Sellers do not provide the requested natural restitution within three months of being informed of the violation of the Sellers` Guarantee, the Sellers shall pay monetary damages (Schadensersatz in Geld), the monetary damages being at least equal to the amount which the relevant Group Company could have claimed against the Sellers if the Sellers’ Guarantee had been given for the benefit of such Group Company. The compensation for damages shall also cover consequential damages (Folgeschäden), however only to the extent such consequential damages are in line with the purpose of the relevant warranty statement, and will not cover the Purchaser`s internal administrative or overhead costs and loss of profits (entgangener Gewinn) and the Purchaser may not claim that the Purchase Price was calculated based on incorrect assumptions.

			

 

If the Purchaser requests payment under Section 11.1 (ii) or (iii) to itself or the Company in case of a Breach of a Sellers’ Guarantee in relation to the JV Partnership, such claim shall be limited to 50% (reflecting the pro rata capital participation of the Company in the JV Partnership).

 

	
			11.2

				
			If, after the Closing Date, a third party asserts a right or claim against the Purchaser and/or any of the Group Companies, or if a governmental authority (öffentlich-rechtliche Körperschaft) threatens or takes measures which could result in liability of the Sellers due to a Breach of a Sellers’ Guarantee (each a “Third Party Claim”), the following shall apply:

			

 

	
			11.2.1

				
			The Purchaser shall, without undue delay after becoming aware of the matter, provide the Sellers with written notice of such alleged Third Party Claim, describing the potential claim in reasonable detail and shall make available to the Sellers a copy of the documents received from the third party in relation to such Third Party Claim. The foregoing sentence shall apply mutatis mutandis in favour of the Purchaser in case any of the Sellers becomes aware of a Third Party Claim. The Purchaser shall give the Sellers the opportunity to cure the breach within the period of time indicated in Section 11.1 (i).

			

 

	
			11.2.2

				
			The Purchaser or the relevant Group Company may defend themselves against the Third Party Claim at their own discretion. The Purchaser shall conduct such proceedings with the care of a prudent businessman with reasonable regard to the concerns of the Sellers and cooperate with the Sellers in good faith (nach Treu und Glauben). The Purchaser will inform the Sellers continuously about the progress of the proceedings. Upon the Purchaser’s demand, the Sellers shall assist the Purchaser in its defence of such Third Party Claims. If the Sellers directly act against the third party according to the previous sentence, they shall coordinate their actions with the Purchaser. In no event shall the Purchaser or any of the Group Companies be entitled to acknowledge or settle a claim or permit any such acknowledgement or settlement without the Sellers ́ prior written consent which is not to be unreasonably withheld, to the extent that such claims may result in the Sellers` liability under this Agreement.

			

 

 

 

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			11.2.3

				
			The failure of the Purchaser to fully comply with its obligations under this Section 11.2 shall not release the Sellers from their respective obligations under Section 9 and Section 11 unless and to the extent the damage would not have occurred if the Purchaser had fully complied with his obligations under this Section 11.2.

			

 

	
			11.3

				
			Prior to the Signing Date, the Purchaser had the opportunity of researching the Group Companies and their business activities from a commercial, financial, legal and environmental perspective on the basis of the documentation provided by the Sellers in a virtual data room available up until 9 March 2018, 5:45am CET, (the “Data Room”). The Parties agree that the content of the Data Room shall be saved on a DVD. Such DVD has been handed over to the acting notary public and shall be stored with the acting notary public for a period of two (2) years. During the storage period, each Party shall be entitled to inspect the contents of the DVD in the offices of the acting notary and to ask the acting notary for copies of the DVD or of individual documents saved on the DVD (in each case to the extent technically possible). After the storage period, the Purchaser shall be entitled to request the return of the DVD from the acting notary. If the acting notary has not received any such request within three (3) months after the end of the aforementioned period, he shall be entitled to destroy the DVD.

			

 

	
			11.4

				
			The Sellers shall not be liable under this Agreement in respect of a claim for a Breach of a Sellers’ Guarantee if and to the extent the relevant facts and circumstances underlying such claim (i) were disclosed in the Data Room in such a manner that on a review of the document, an industry experienced buyer would be aware of the specific fact, matter or information and be in a position to make a reasonable informed assessment without the benefit of supporting documentation (“Fairly Disclosed”), or that (ii) are referred to in this Agreement or its Exhibits (including, for the avoidance of doubt, the Hive-Down Agreement) (together, the “Disclosed Information”). The provisions of, and the legal principles set forth in, section 442 of the German Civil Code and section 377 of the German Commercial Code shall not apply.

			

 

	
			11.5

				
			The Purchaser explicitly acknowledges to purchase and acquire the Shares and the business associated therewith based upon its own inspection and assessment of all the facts and circumstances Fairly Disclosed in the Disclosed Information, and to undertake the purchase based upon its own decision, inspection and assessment without reliance upon any express or implied representations, warranties or guarantees of any nature made by the Sellers, except for the guarantees expressly provided by the Sellers under this Agreement. Without limiting the generality of the foregoing, the Purchaser acknowledges that the Sellers give no representation, warranty or guarantee with respect to any projections, estimates or budgets delivered or made available to the Purchaser regarding future revenues, earnings, cash flow, the future financial condition or the future business operations of the Group Companies.

			

 

 

 

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			11.6

				
			The liability of the Sellers due to a Breach of a Sellers’ Guarantee shall not exceed EUR 1,000,000 (in words: one million Euros) (the “Overall Liability Cap”). The Sellers are furthermore not liable for claims for a Breach of a Sellers’ Guarantee if the total amount of all claims for Breaches of a Sellers’ Guarantee does not exceed EUR 250,000 (in words: two hundred and fifty thousand Euros) (the “Deductible”) (Freibetrag). If the total amount of all claims for Breaches of a Sellers’ Guarantee exceeds the Deductible, the Sellers are only liable as far as the Deductible is exceeded. For the avoidance of doubt, the Deductible shall not apply to claims arising from Sellers’ Guarantees that the Sellers have deliberately submitted inaccurately. In this event, the warranty claims shall always be compensated to the full amount. The Overall Liability Cap as well as the Deductible shall also apply to and take into account claims under Sellers’ Indemnities according to Section 12 and claims for a breach of any of the Tax and Social Insurance Guarantees according to Section 13 (for the avoidance of doubt, the Overall Liability Cap and the Deductible shall not apply to claims in relation to Leakage and claims under Section 14).

			
	 	 
	11.7	To the extent permitted by law, rights and remedies based on statutory warranty rights (gesetzliche Gewährleistungsrechte) to withdrawal from the agreement (Rücktritt), reduction of purchase price (Minderung), repair (Nachbesserung) or damages, based on culpa in contrahendo (Verschulden bei Vertragsschluss), to reversal of the Agreement due to frustration of the contract (Störung der Ges-chäftsgrundlage) as well as the contesting of the Agreement due to the absence of an essential characteristic (Anfechtung wegen des Fehlens einer verkehrswes-entlichen Eigenschaft) are expressly excluded and waived, except for rights and remedies according to sections 123, 444 and 826 of the German Civil Code as well as any rights and remedies based on wilful misconduct.
	 	 

	
			11.8

				
			Claims for a Breach of a Sellers’ Guarantee shall, in deviation from the statutory provisions, be time-barred twelve (12) months after the Closing Date, provided that claims in relation to a Third Party Claim shall not become time-barred before the expiration of the statute of limitations period applicable to the underlying Third Party Claim. Section 203 German Civil Code shall apply.

			

 

 

 

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			11.9

				
			The limitations of liability according to Section 11 shall not apply to rights and remedies based on a Breach of a Sellers’ Guarantee due to wilful misconduct (vorsätzliche Handlung) or based on fraudulent misrepresentation (arglistische Täuschung) of the Sellers.

			

 

	
			11.10

				
			Payments made by the Sellers according to this Section 11 shall be treated in relation between the Sellers and the Purchaser as a reduction of the Purchase Price. Payments made by the Sellers to one of the Group Companies at the election of the Purchaser shall be treated as capital contribution (Einlage) of the Purchaser to the recipient.

			

 

	
			11.11

				
			To the extent the Purchaser has a claim under this Agreement against the Sellers, the Purchaser shall be entitled to retain the relevant amount from the Holdback Amount first.

			

 

Section 12

Sellers’ and Purchaser`s Indemnities

 

	
			12.1

				
			The Sellers shall indemnify and hold harmless the Purchaser or, at the Purchaser’s written election, the relevant Group Company (or any successor), from and against any and all losses, costs, liabilities, disadvantages, penalties, use restrictions, third party claims, expenses and damages of the Purchaser and/or the Group Companies incurred or arising from or in connection with:

			

 

	
			12.1.1

				
			a qualification of the activities of Mr Rainer Koehn under the agreement with the Company dated 28 June 2007 (as amended by the addendum dated 28/30 November 2012) as an employment relationship (abhängige Beschäftigung) between Mr Rainer Koehn and the Company;

			

 

	
			12.1.2

				
			claims alleged by IBC Solar AG in connection with the corrosion parts for the attachments of solar modules; and/or

			

 

	
			12.1.3

				
			claims alleged by Nestinox B.V. against the Subsidiary in a court proceeding before the Regional Court of Meiningen.

			

 

	
			12.2

				
			Section 11.8 and 11.9 shall apply accordingly to claims under Section 12.1.

			

 

	
			12.3

				
			The Sellers have signed public-law cumulative assumptions of debts (öffentlich-rechtliche Schuldbeitritte) in favour of the land Thuringia (Freistaat Thüringen) on 18 October 2017 which are attached hereto, for identification purposes (zu Identifizierungszwecken), as Exhibit 12.3 with regard to potential recovery claims in relation to a funding grant dated 12 October 2017 for a total amount of EUR 440,286.00 (the “Cumulative Assumptions of Debts”). The Parties shall use reasonable efforts to have the Sellers unconditionally released from all obligations under the Cumulative Assumptions of Debts within five (5) months after the Closing Date. Until such release has been obtained, the Purchaser shall indemnify and hold harmless the Sellers from and against any personal costs, liabilities, disadvantages and/or penalties arising to the Sellers from or in connection with the Cumulative Assumptions of Debts. For the avoidance of doubt, the foregoing sentence shall also apply in case the release cannot be obtained within five (5) months after the Closing Date.

			

 

 

 

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Section 13

Taxes and Social Insurance

 

	
			13.1

				
			For the purpose of this Agreement, “Taxes” shall mean (i) any tax within the meaning of section 3 para. 1 of the German Tax Code (Abgabenordnung, AO) or any corresponding foreign legal regulations including pecuniary penalties and administrative fines, (ii) the tax deducted at source (Quellensteuern) and the withholding taxes (Abzugssteuern) which any of the Group Companies has to withhold and pay from payments to third parties, without itself being a person liable to pay tax, (iii) taxes for which any of the Group Companies may be liable to according to section 191 of the German Tax Code, without being required to withhold or pay itself, (iv) fees, monetary contributions including social security and social insurance contributions, customs duties (Zölle), and all other public taxes and duties, which have been imposed by a domestic federal authority, state authority or local authority or another domestic or foreign public authority (the “Tax Authority”), and/or which are owed according to Regulations, as well as (v) interest, costs and surcharges or any other additional costs, either fiscal (within the meaning of section 3 para. 4 of the German Tax Code), or based on social security law.

			

 

	
			13.2

				
			For the purpose of this Agreement, “Tax Returns” (Steuererklärungen) shall mean all declarations, notifications, applications, advance notifications (Voranmeldungen) and further documents and data, which have to be filed with or handed to a Tax Authority in connection with Taxes.

			

 

	
			13.3

				
			The Sellers hereby guarantee to the Purchaser in each case by way of an independent guarantee and a separate guarantee in each case in relation to the statements contained in Section 13.3.1 to Section 13.3.10 in accordance with section 311 para. 1 of the German Civil Code that the statements contained in Section 13.3.1 to Section 13.3.10 (the “Tax Guarantees” and each a “Tax Guarantee”) are true and correct. The Tax Guarantees shall not be qualified and construed as quality guarantees concerning the object of the purchase (Beschaffenheitsgarantien) within the meaning of sections 443, 444 of the German Civil Code nor an agreement as to quality (Beschaffenheitsvereinbarung) within the meaning of section 434 para. 1 German Civil Code.

			

 

	
			13.3.1

				
			The Group Companies have duly (ordnungsgemäß) and timely (rechtzeitig) filed (taking into account any filing extensions granted by a Tax Authority) with the competent Tax Authority all Tax Returns that are required to be filed in the period up to and including the Signing Date and will duly (ordnungsgemäß) and timely (rechtzeitig) file (taking into account any filing extensions granted by a Tax Authority) with the competent Tax Authority all Tax Returns that are required to be filed in the period up to and including the Closing Date.

			

 

 

 

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			13.3.2

				
			The Group Companies have timely paid all Taxes that are due for payment in the period up to and including the Signing Date and will timely pay all Taxes up to and including the Closing Date.

			

 

	
			13.3.3

				
			In the period up to and including the Closing Date, none of the Group Companies has made any hidden profit distribution.

			

 

	
			13.3.4

				
			As of the Effective Date no Group Participations are subject to a blocking period, e.g., tainted shares (einbringungsgeborene Anteile) pursuant to section 21 of the German Reorganisation Tax Act old version (Umwandlungssteuergesetz alte Fassung, UmwStG).

			

 

	
			13.3.5

				
			The profit and loss transfer agreement entered into by and between the Company and the Subsidiary on 21 November 2013 is legally effective (zivilrechtlich wirksam) and has been actually performed at any point in time during the period up to and including the Signing Date and will be performed up to and including the Closing Date as required for tax purposes pursuant to section 14 para. 1 sentence 1 no. 3 sentence 1 of the German Corporate Income Tax Act (Körperschaftsteuergesetz).

			

 

	
			13.3.6

				
			No Tax Authority has issued an advance ruling (verbindliche Auskunft) that might concern any of the Group Companies. No advance ruling relating to any of the Group Companies has been applied for.

			

 

	
			13.3.7

				
			Except as listed in Exhibit  13.3.7, no appeals or legal actions (Einspruchs- oder Klageverfahren) are pending (anhängig) with respect to Taxes of any of the Group Companies.

			

 

	
			13.3.8

				
			The technical standards implemented for the electronic data access of the Tax Authority comply with section 147 of the German Tax Code. The fiscally relevant data for the Relevant Periods has been filed separately from the data that is not fiscally relevant.

			

 

	
			13.3.9

				
			Up to the assessment period 2012, all Taxes of the Group Companies have been finally and conclusively assessed.

			

 

	
			13.3.10

				
			None of the Group Companies maintains or has maintained at any point in time in the period up to and including the Closing Date any permanent establishment or permanent representative pursuant to the laws of the relevant jurisdiction in any other jurisdiction than the Federal Republic of Germany.

			

 

 

 

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	 	If any of the Tax Guarantee is breached, the Sellers shall, per the election of the Purchaser pay, either to the Purchaser or, at the written election of the Purchaser, to the relevant Group Company (or any successor), the amount which is necessary to bring the Purchaser and the relevant Group Company into the position they would have been in if the relevant Tax Guarantee had been correct. The legal principles set forth in section 442 of the German Civil Code and section 377 of the German Commercial Code shall not apply. Section 13.5 shall apply accordingly to the claims of the Purchaser for the breach of a Tax Guarantee pursuant to this Section 13.3.
	 	 
	
			13.4

				
			The Sellers shall be obliged to indemnify the Purchaser or, at the Purchaser’s written election, the relevant Group Company (or any successor) from and against

			

 

	 	
			(i)

				
			any and all Taxes of the Group Companies relating to the period up to and including the Effective Date and

			

 

	 	
			(ii)

				
			any and all Taxes of the Group Companies relating to the period from (and not including) the Effective Date up to and including the Closing Date other than (x) Taxes resulting from the ordinary business of the Group Companies conducted in the period from (and not including) the Effective Date up to and including the Closing Date in accordance with Section 5 (it being understood that Taxes in relation to the Hydrogen Business and the Carve-Out of the Hydrogen Business pursuant to Section 14.1, any prohibited measure pursuant to Section 9.15 and/or any Leakage in the Locked Box Period are not to be treated as Taxes resulting from the ordinary business of the Group Companies for purposes of this indemnification obligation) and (y) Taxes in relation to the Hydrogen Business and the Carve-Out of the Hydrogen Business pursuant to Section 14.1 (including a potential retroactive taxation pursuant to section 6 para. 5 sentences 4 to 6 of the German Income Tax Act (Einkommensteuergesetz)) that fall into the scope of application of Section 13.6.

			

 

	 	Any payments of the Sellers according to this Section 13.4 shall be due for payment ten Business Days after the Sellers’ receipt of a written payment request from the Purchaser including a copy of the relevant tax assessment notice or other document, but not earlier than three Business Days prior to the due date of the respective indemnifiable Tax.
	 	 
	
			13.5

				
			The Sellers shall not be obliged to indemnify the Purchaser for a Tax of any of the Group Companies pursuant to Section 13.4, if and to the extent that

			

 

	
			13.5.1

				
			a liability or provision has been accounted for in the Financial Statements of the relevant Group Company for the business years ending 31 December 2016 specifically with respect to relevant Tax; or

			

 

	
			13.5.2

				
			the relevant Tax could be avoided by way of loss setoff, loss carry-back or loss carry-forward of losses resulting from the period up to and including the Effective Date; or

			

 

 

 

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			13.5.3

				
			the relevant Group Company or the Purchaser receives a compensation payment with respect to the relevant Tax from an unrelated third party; or

			

 

	
			13.5.4

				
			the relevant Group Company or the Purchaser is entitled to any benefits in respect of Taxes (including, without limitation, benefits resulting from the lengthening of any amortization or depreciation periods, higher depreciation allowances, the non-recognition of liabilities or provisions) in any period after the Effective Date as the result of the circumstances giving rise to the respective Tax, it being understood that in such case the indemnification claim of the Purchaser pursuant to Section 13.4 shall be reduced by the amount of the net present value of the future benefit calculated on the basis of a discount rate of 6% p.a.; or

			

 

	
			13.5.5

				
			the relevant Tax has been caused by a measure that has been implemented on the level of the Company or the Subsidiary after the Closing Date with retroactive effect for Tax purposes on Taxes relating to the period up to and including the Closing Date; or

			

 

	
			13.5.6

				
			the relevant Tax has been caused by the fact that the profit and loss transfer agreement entered into by and between the Company and the Subsidiary on 21 November 2013 has been terminated in any way after the Closing Date and within the initial five years term pursuant to section 14 para. 1 sentence 1 no. 3 sentence 1 of the German Corporate Income Tax Act (Körperschaftsteuergesetz); or

			

 

	
			13.5.7

				
			the Purchaser has not complied with any of its obligations set out in Section 13.8 relating to the respective Tax, such breach of obligation of the Purchaser has materially prejudiced the Sellers in the defence of the respective Tax and the Purchaser cannot show that the respective Tax would have arisen in the same amount if the breach of obligation that has materially prejudiced the Sellers in the defence of the respective Tax had not occurred.

			

 

	
			13.6

				
			The Sellers shall be obliged to indemnify the Purchaser or, at the Purchaser’s written election, the Company and the Subsidiary (or any successor) from and against 50% (in words: fifty percent) of any and all Taxes of the Company and the Subsidiary in relation to the Hydrogen Business and the Carve-Out of the Hydrogen Business pursuant to Section 14.1 (including a potential retroactive taxation pursuant to section 6 para. 5 sentences 4 to 6 of the German Income Tax Act (Einkommensteuergesetz)) exempt for withholding tax on dividends (Kapitalertragsteuer), it being understood that any withholding tax on dividends in relation to the Hydrogen Business and the Carve-Out of the Hydrogen Business pursuant to Section 14.1 shall be fully indemnified pursuant to Section 13.4. Section 13.5.7 shall apply accordingly to claims of the Purchaser under this Section 13.6.

			

 

 

 

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			13.7

				
			The Purchaser shall pay to the Sellers an amount equal to (i) any refunds of Taxes (including refunds credited) relating to the period up to and including the Effective Date and (ii) any unused tax liability (Steuerverbindlichkeit) or tax provision (Steuerrückstellung) in the Financial Statements as of 31 December 2016 that has to be dissolved after the Effective Date. The Purchaser shall notify the Sellers in writing and without undue delay (unverzüglich) of any relevant decision by any tax authority that may result in a claim of the Sellers under this Section 13.7. Any amount payable to the Sellers pursuant to this Section 13.7 shall be due (fällig) and payable (zahlbar) within ten (10) Business Days after the refund of the relevant Tax has been collected (irrespective whether in cash, by set-off (Aufrechnung) or any other kind) respectively the tax liability or tax provision has appeared to be dissolved. The Deductible (as defined in Section 11.6) and the Overall Liability Cap (as defined in Section 11.6) shall apply mutatis mutandis to claims of the Sellers pursuant to this Section 13.7. The Purchaser shall not be obliged to make a payment pursuant to this Section 13.7 to the Sellers if and to the extent the claims of the Sellers under this Section 13.7 do not exceed the amount of the claims pursuant to Section 13.3, Section 13.4 and Section 13.6 to which the Purchaser is not entitled due to the applicability of the Deductible or the Overall Liability Cap.

			

 

	
			13.8

				
			The Parties agree with respect to the period beginning on the Closing Date to the following:

			

 

	
			13.8.1

				
			The Purchaser shall procure (steht dafür ein) that the Company and the Subsidiary will timely prepare and file when due all tax returns required to be filed with respect to Taxes that may give rise to a liability of the Sellers under this Section 13 ("Relevant Tax Returns"). The Purchaser shall procure (steht dafür ein) that the final drafts of any such Relevant Tax Returns exempt for monthly self-assessments and all information pertaining thereto reasonably required in order to review and comment on the drafts are provided to the Sellers, in any case no later than (i) thirty (30) Business Days prior to the relevant filing date, if such Relevant Tax Returns have to be filed on an annual basis or (ii) five (5) Business Days in all other cases. All such Relevant Tax Returns shall require the prior written consent of the Sellers and shall, if the Parties fail to reach an agreement thereon, be prepared and filed in accordance with the Sellers' instructions, except if and to the extent such instructions are not in compliance with mandatory laws. For the avoidance of doubt, monthly self-assessments will be prepared and filed by the Company and the Subsidiary without the prior consultation of the Sellers.

			

 

	
			13.8.2

				
			The Purchaser shall procure (steht dafür ein) that the Company and the Subsidiary and the legal successors of the Company and the Subsidiary forward to the Sellers without undue delay (unverzüglich) copies of any material correspondence of and with any tax authority relating to Taxes (including, for the avoidance of doubt, tax assessment notices and other documents and information) that may give rise to a liability of the Sellers under this Section 13. Each notification shall be made in writing (including by email) and copies of any documents reasonably related thereto shall be attached to such notification. The Purchaser shall procure (steht dafür ein), insofar as relating to Taxes that may give rise to a liability or a claim of the Sellers under this Section 13, that the Company and the Subsidiary (i) grant the Sellers and the Sellers' advisors the right to participate in material meetings, discussions and correspondence with any tax authority, including in case of Tax audits the right to attend any formal meetings with the Tax auditor (including the final meeting pursuant to Section 201 of the German General Tax Code (Abgabenordnung)), (ii) request that the relevant Tax auditor provides material questions in writing and that such questions will be forwarded without undue delay (unverzüglich) to the Sellers for the Sellers' evaluation and comments, and (iii) duly incorporate in their statements to any tax authority any comments the Sellers may have, except if and to the extent those comments are not in compliance with mandatory laws.

			

 

 

 

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			13.8.3

				
			The Purchaser shall not, and shall procure (steht dafür ein) that the Company and the Subsidiary shall not, (i) settle, concede or give their consent to the findings of any and all Tax audits relating to Taxes that may give rise to a liability of the Sellers under this Section 13 or (ii) make an admission of liability, compromise or settlement of any claim by any tax authority with respect to Taxes that may give rise to a liability of the Sellers under this Section 13, in each case unless with the prior written consent of the Sellers.

			

 

	
			13.8.4

				
			The Purchaser shall procure (steht dafür ein) that the Company and the Subsidiary, upon the request of the Sellers, file objections and institute and conduct legal proceedings against any orders, audits, decrees, Tax assessment notices or judgments in accordance with the Sellers' directions (except if and to the extent those directions are not in compliance with mandatory laws) if such objections or legal proceedings relate to Taxes that may give rise to a liability of the Sellers under this Section 13 ("Tax Contest"). Alternatively, the Sellers may decide, at any time, to direct through counsel of their own choice and at their own expense any Tax Contest. If Sellers choose to direct a Tax Contest, then (i) the Purchaser shall cooperate and follow the Sellers' instructions and shall procure (steht dafür ein) that the Company and the Subsidiary cooperate and follow the Sellers' instructions in each phase of such Tax Contest, except if and to the extent those instructions are not in compliance with mandatory laws. All costs arising from any Tax Contest to any of the Company and the Subsidiary are to be borne by the Sellers.

			

 

	
			13.8.5

				
			The Purchaser shall procure (steht dafür ein) that the Company and the Subsidiary retain, until the expiration of any applicable statute of limitation, all books, records and documentation relating to Taxes that may give rise to a liability of the Sellers under this Section 13.

			

 

	
			13.8.6

				
			The Purchaser shall not be obliged to provide or procure (steht nicht dafür ein) that the Company and the Subsidiary provide any Relevant Tax Return, tax assessment notice, correspondence with the tax authorities, other document or information to any of the Sellers pursuant to Section 13.8.1 to Section 13.8.5 if and to the extent that the respective Seller has become aware of the respective Relevant Tax Return, tax assessment notice, correspondence with the tax authorities, other document or information in its capacity as managing director.

			

 

 

 

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			13.9

				
			All payments of the Sellers and the Purchaser under this Section 13 shall be treated in relation between the Sellers and the Purchaser as a reduction or increase of the Purchase Price and, if the Purchaser elects payments of the Sellers to be made to the relevant Group Company (or its successor), as a contribution of the Purchaser into the relevant Group Company (or its successor).

			

 

	
			13.10

				
			Any conditions, exclusions, caps or other limitations provided for in any other section of this Agreement with respect to the claims of the Purchaser under this Agreement shall not apply to the claims of the Purchaser under this Section 13, unless this Section 13 explicitly and specifically stipulates that the respective condition, exclusion, cap or other limitation shall apply to the claims of the Purchaser under this Section 13. The Deductible and the Overall Liability Cap shall apply to the claims of the Purchaser pursuant to Section 13.3, Section 13.4 and Section 13.6.

			

 

	
			13.11

				
			Rights and remedies of the Purchaser under this Section 13 shall become time-barred six months after the last underlying Tax assessment or other assessment that cannot be changed anymore has become final and binding (formell und materiell bestandskräftig). Section 203 German Civil Code shall apply.

			

 

Section 14

Carve-Out of the Hydrogen Business

 

	
			14.1

				
			Prior to the Closing Date, the Sellers shall procure that the Company and the JV Partnership perform the remaining actions to fully implement the Carve-Out as provided in the Hive-Down Agreement. The Parties agree that the cooperation of the Sellers and the Purchaser (via the Company) in the JV Partnership as set forth in the Partnership Agreement shall economically commence as of the Closing Date.

			

 

	
			14.2

				
			The Sellers shall (i) keep the Purchaser regularly informed about the status of the implementation of the Carve-Out, (ii) inform and discuss any issues related to the implementation of the Carve-Out and (iii) provide any documents or information received in connection with the implementation of the Carve-Out to the Purchaser. The Purchaser shall have the opportunity to review and comment on any documents in relation to the Carve-Out and the execution of any of such documents is subject to Purchaser’s approval. The Sellers shall inform the Purchaser without undue delay (unverzüglich) of any other material information relevant for the implementation of the Carve-Out outside the ordinary sequence of discussions.

			

 

	
			14.3

				
			The Sellers shall indemnify and hold harmless the Purchaser or, at the Purchaser’s written election, the relevant Group Company (or any successor), from and against 50% (in words: fifty percent ) of any and all losses, costs, liabilities and damages of the Purchaser and/or the Group Companies incurred or arising from or in connection with the implementation of the Carve-Out (including but not limited to any remaining (joint) liability of the Company, e.g. under letters of comfort (Patronatserklärungen) issued by the Company in favour of the JV Partnership prior to the Closing Date). Claims under this Section 14.3 shall, in deviation from the statutory provisions, be time-barred one (1) year after the Closing Date, provided that claims in relation to a third party claim shall not become time-barred before the expiration of the statute of limitations period applicable to the underlying third party claim. Section 203 German Civil Code shall apply. Section 11.9 shall apply accordingly.

			

 

 

 

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Section 15

Pre-closing Obligations of the Sellers

 

	
			15.1

				
			From the Signing Date to the Closing Date, each of the Sellers shall inform the Purchaser immediately upon becoming aware of any incidents and decisions that might substantially affect the assets and liabilities, financial condition and/or operational results of at least one of the Group Companies.

			

 

	
			15.2

				
			Immediately after the Signing Date, the Sellers shall inform the parties listed in Exhibit 15.2 of the Transaction and shall use reasonable efforts to obtain waivers from such parties of any rights regarding an early termination of the agreements specified in Exhibit 15.2 in connection with the Transaction.

			

 

	
			15.3

				
			The Sellers hereby guarantee to the Purchaser in the form of an independent guarantee pursuant to section 311 para. 1 of the German Civil Code and, in addition, will, to the extent permitted under applicable law, procure, that from the Signing Date until the Closing Date, the Group Companies will conduct their business only in the ordinary course of business with the standard of care of a prudent business man and consistent with past practice, in particular that none of the measures set forth in Section 9.15.1 will be taken at any of the Group Companies.

			

 

	
			15.4

				
			Following the satisfaction of the conditions precedent set forth in Section 2.3 Sentence 3 and beyond the Closing Date, the Sellers shall not exercise any shareholder’s rights with regard to the Group Companies; in particular, they shall not pass any shareholders’ or partners’ resolutions.

			

 

	
			15.5

				
			The Sellers shall take any and all measures that are necessary and/or advisable for the consummation of this Agreement; the Sellers shall refrain from any and all actions that may impair, jeopardise or impede the consummation of this Agreement.

			

 

	
			15.6

				
			The Sellers shall inform the Purchaser latest on the last day before the Closing Date of circumstances due to which the guarantees given by the Sellers under this Agreement would be incorrect or incomplete as of the Closing Date, provided that the information with regard to Section 9.9.1(iii) and Exhibit 9.10.1(1) does not need to be updated as per such date.

			

 

 

 

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			15.7

				
			If the Sellers violate any of the obligations or guarantees provided for in this Section 15, the Sellers shall at the Purchaser’s absolute discretion

			

 

	 	
			(i)

				
			restore, without undue delay at the request of the Purchaser, the position that would have existed if the violation of any of the obligations or guarantees had not occurred (restitution in kind - Naturalrestitution), and/or

			

 

	 	
			(ii)

				
			pay, either to the Purchaser or, at the request of the Purchaser, to the relevant Group Company, the amount which is necessary to restore the position that would have existed if the violation of any of the obligations or guarantees had not occurred, and/or

			

 

	 	
			(iii)

				
			pay monetary damages (Schadensersatz in Geld), the monetary damages being at least the amount which the affected Group Company could have claimed against the Sellers in case the obligations or guarantees had been made to it.

			
	 	 	 
	 	If the violation of any of the obligations or guarantees provided for in this Section 15 consists in the existence of a liability, the right of the Purchaser to demand restitution in kind includes the right to demand full indemnification against such liability. Section 11.1, last sentence, shall apply accordingly.

 

Section 16

Further obligations of the Sellers

 

	
			16.1

				
			The Parties are currently in the process of negotiating the terms and conditions of the Partnership Agreement which shall apply as from the Closing Date as regards the JV Partnership. The current status of the main body of the Partnership Agreement, which was prepared by the Purchaser’s legal counsel (still being subject to review and sign-off by the Purchaser) and has not yet been commented on by the Sellers is attached hereto as Exhibit 16.1. On such basis the Sellers undertake to negotiate and to procure that the Founder OHG and the Company negotiate in good faith with the Purchaser the final version of the Partnership Agreement (including all Annexes thereto). The Parties shall use best efforts to finalize the Partnership Agreement as soon as reasonably possible after the Signing Date.

			

 

	
			16.2

				
			The Parties are in agreement that DF and RB shall resign as managing directors of the Company and of the Subsidiary with effect as of the Closing Date and that their respective employment relationship shall continue with the Company or the Subsidiary after the Closing Date. The Parties aim that RB will remain with the Company or the Subsidiary for a period of at least two years after the Closing Date and that DF will remain with the Company for a period of at least five years after the Closing Date. The current managing director service agreements of RB and DF shall be replaced as of the Closing Date by employment agreements which shall have substantially the same terms as the current managing director service agreements of RB and DF provided that they will in particular contain contractual and post-contractual non-competition undertakings as well as contractual non-solicitation undertakings of RB and DF. The specific terms of these employment agreements will be negotiated in good faith between the Parties prior to the Closing Date.

			

 

 

 

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			16.3

				
			JL undertakes to negotiate in good faith with the Purchaser the final version of JL’s restated managing director service agreement on the basis of the draft attached hereto as Exhibit 16.3. Once finalized JL shall enter into the final restated managing director service agreement with the Company with effect as of the Closing Date.

			

 

	
			16.4

				
			The Sellers covenant that any liabilities of the Sellers’ Group vis-à-vis any of the Group Companies will be paid at the latest as of the Closing Date.

			

 

	
			16.5

				
			Following the Closing Date, each of the Sellers shall cooperate in good faith with the Purchaser and the Group Companies and take all measures, make all declarations and execute all documents that are necessary in the reasonable opinion of the Purchaser to implement the transactions contemplated by this Agreement; the Sellers shall refrain from any and all actions that may impair, jeopardise or impede the implementation of the transactions contemplated by this Agreement.

			

 

Section 17

Non-Competition/Non-Solicitation

 

	
			17.1

				
			For a period of two (2) years following the Closing Date, each of the Sellers undertakes not to engage directly or indirectly in any activities in the geographical area of operations of the Group Companies as of the Signing Date and/or the Closing Date (the “Geographical Area of Operations”) in the area of the business operations of the Group Companies as of the Signing Date and/or the Closing Date (the “Scope of Business Operations”) that would result in Competition with any of the Group Companies (the “Non-Competition Obligation”). In particular, “Competition” in terms of the Non-Competition Obligation shall mean (i) the formation or the acquisition of and the participation in business entities, which are active in the Geographical Area of Operations and the Scope of Business Operations, as well as (ii) advising and/or representing such business entities, not however, the acquisition for investment purposes only up to 1 % of the share capital of corporations listed on a stock exchange, which are active in the Geographical Area of Operations and in the Scope of Business Operations, provided, however, that the Sellers are excluded from any influence over the management of such stock corporations.

			

 

	
			17.2

				
			For a period of two (2) years following the Closing Date, each of the Sellers undertakes not to, whether directly or indirectly, solicit or entice an Employee away who is currently or was employed with any of the Group Companies during the past year before the Signing Date, or offer or conclude with such aforementioned Employee an employment or consultancy agreement (“Non-Solicitation Obligation”).

			

 

	
			17.3

				
			Each of the Sellers covenants that all members of the Sellers’ Group comply with the Non-Solicitation Obligation and the Non-Competition Obligation.

			

 

 

 

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			17.4

				
			For the avoidance of doubt, the continued activities of the Sellers as managing directors, employees or consultants of any of the Group Companies do not constitute a violation of the Non-Competition Obligation and the Non-Solicitation Obligation.

			

 

	
			17.5

				
			If the Non-Competition Obligation and/or the Non-Solicitation Obligation is violated by a member of the Sellers’ Group, the Sellers shall be liable to pay to the Purchaser a contractual penalty (Vertragsstrafe) in the amount of EUR 50,000 for each breach. In the event of a continuing violation, each calendar month (or part thereof) that the violation continues shall be deemed to be an independent and separate breach. The defence of continuous violation (Einrede des Fortsetzungszusammenhangs) is excluded. The right of the Purchaser to claim damages or to require cessation of the violation shall not be affected by the payment of the contractual penalty. Any contractual penalty incurred shall be credited against any future claims for damages.

			

 

Section 18

Confidentiality, Press Releases

 

	
			18.1

				
			The Parties shall keep strictly confidential the content of this Agreement as well as any information received or obtained about the other Party in connection with the negotiation and implementation of this Agreement, unless the disclosure by the Purchaser is necessary to protect the rightful interest of the Purchaser.

			

 

	
			18.2

				
			The Sellers shall keep strictly confidential any information relating to the Group Companies and their business operations.

			

 

	
			18.3

				
			The Parties will agree upon a press release regarding the transactions contemplated in this Agreement. The Parties shall publish additional press releases or similar public statements relating to the transactions contemplated in this Agreement only after prior agreement regarding content, wording and time of the publication of such press release or similar public statement.

			

 

	
			18.4

				
			The obligations according to Section 18.1, Section 18.2 and Section 18.3 shall not apply to information which:

			

 

	 	
			(i)

				
			is generally known to the public except in consequence of a wilful or negligent act or omission in contravention of the aforementioned obligations, or

			

 

	 	
			(ii)

				
			is required to be disclosed by court order, administrative decision, statute or any applicable law, including any regulations of a cartel authority and a stock exchange on which the shares of any of the Parties or an enterprise affiliated to a Party are listed, or

			

 

	 	
			(iii)

				
			is disclosed to any person bound to professional confidentiality.

			

 

 

 

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Section 19

Costs, Real Estate Transfer Tax

 

	
			19.1

				
			Each Party shall bear its own costs and expenses incurred in connection with the preparation, negotiation, and consummation of this Agreement, including any and all costs for its advisors. The costs of notarization of the Agreement shall be borne by the Purchaser.

			

 

	
			19.2

				
			All transfer taxes, charges, fees or duties resulting from the implementation and consummation of this Agreement, including the fees for the merger control filings at the competent cartel authorities shall be borne by the Purchaser.

			

 

Section 20

Notices

 

	
			20.1

				
			Any statement or other declaration based on or in connection with this Agreement (jointly the “Notices”) shall be made in writing unless a stricter form is required by mandatory law. The notice shall be delivered by hand, by mail or by email (but no other transmission by way of telecommunication (telekommunikative Übermittlung)). A Notice shall be considered to be received on the day of delivery, irrespective of the business hours of the recipient.

			

 

	
			20.2

				
			Any notices to be given shall be addressed as follows:

			

 

	 	
			(i)

				
			If to the Purchaser:

			

 

AVX Corporation     

Attn. Deputy General Counsel/Mauri Aven     

One AVX Boulevard     

Fountain Inn, SC 29644     , USA

email: mauri.aven@avx.com

 

With a copy to:

 

Noerr LLP      

Dr. Alexander Ritvay, D.E.S.     

Charlottenstraße 57      

10117 Berlin, Germany     

email: alexander.ritvay@noerr.com

 

	 	
			(ii)

				
			If to the Sellers or any of the Sellers, to the following representative of the Sellers (the “Sellers’ Representative”):

			

 

Dr Joachim Löffler     

xxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxxx     

Germany

 

 

 

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With a copy to:

 

Kanzlei Schaffer und Partner mbB      

Rechtsanwältin Sophia Schmid     

Äußere Sulzbacher Str. 118     

90491 Nürnberg     

Email: sophia.schmid@schaffer-partner.de

 

	
			20.3

				
			Each Party shall notify the other Parties of any changes in its address without undue delay, provided that the Sellers shall only be entitled to provide a new address if such new address is within the territory of Germany. Until such notification, the previously notified address shall continue to be valid for the purposes of this Agreement. Any Notice shall be deemed to have been received at the time at which it would have been received under ordinary circumstances without the change of the address.

			

 

	
			20.4

				
			Any copies provided for in Section 20.2 shall be for information only. The receipt of any such copy is irrelevant for the question of whether and when a Notice has been received by a Party.

			
	 	 
	20.5	All declarations and notices of the Sellers shall only be made by all Sellers acting jointly. For the purposes of this Agreement, only the Sellers’ Representative shall be entitled to act on behalf of each individual Seller and/or some or all of the Sellers vis-à-vis the Purchaser and shall in particular be irrevocably entitled and be granted power of attorney to make or receive any declaration or notice, to sign all documents and take all actions (including, without limitation the making and receiving of unilateral declarations and the conclusion of agreements) that are required or useful under or in connection with this Agreement or the transactions contemplated by it on behalf of each individual Seller and some or all of the Sellers jointly. For these purposes each of the Sellers releases the Sellers’ Representative from the restrictions set out in Section 181 of the German Civil Code.

 

Section 21

Assignments

 

The Purchaser is entitled to assign, in whole or in part, its rights and obligations hereunder, without prior consent of the other Parties (i) to a company affiliated with it within the meaning of sections 15 et seq. of the German Stock Corporation Act, or (ii) to a bank which is involved in the financing of the transactions agreed herein. Beyond the aforementioned, the Parties are not entitled to assign the rights and obligations in whole or in part hereunder to third persons without the consent of the other Parties.

 

Section 22

Sellers’ Liability

 

Up to a maximum aggregate amount of EUR 1,000,000 (in words: one million Euros), the Sellers shall be jointly and severally liable (Gesamtschuldnerhaftung) to the Purchaser for the due fulfilment of any and all obligations of the Sellers, in particular, all payment obligations under and arising from this Agreement. For any claims in excess of such amount, the Sellers shall be liable to the Purchaser pro rata to their equity shareholding in the Company as set forth in Section 1.1.

 

 

 

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Section 23

Governing Law, Jurisdiction

 

	
			23.1

				
			The Parties have the common understanding that this Agreement is governed by and constructed in accordance with the laws of the Federal Republic of Germany.

			

 

	
			23.2

				
			The Parties agree that the state courts of Frankfurt, Germany shall have exclusive jurisdiction for all disputes arising out of or in connection with this Agreement or its validity.

			

 

Section 24

Amendments, Supplements, Termination

 

Amendments, supplements and the termination of this Agreement – including the modification of this provision – shall be valid only if made in writing by mutually signed instrument unless a stricter form is required by mandatory law.

 

Section 25

Miscellaneous

 

	
			25.1

				
			For the purpose of this Agreement, “Business Day” shall mean a day, other than a Saturday, a Sunday or any other day on which commercial banks in Betzdorf, Germany, are required by law to remain closed.

			

 

	
			25.2

				
			If a Party is obliged, according to this Agreement, to pay interest on any amounts becoming due and payable the interest rate shall be 5 % p.a. The assertion of further damage by the Party receiving the interest payments shall not be precluded by the aforementioned.

			

 

	
			25.3

				
			All Exhibits attached hereto form integral parts of this Agreement. References to individual sections of this Agreement also refer to their Exhibits and their content. Terms defined in the singular include the plural, and vice versa. The male form of terms used in this Agreement includes the female form. Any enumerations or examples which illustrate a term (e.g., if a sentence is opened by “in particular”), do not limit the scope of such term. Headings are inserted for convenience only and shall not affect the interpretation of this Agreement.

			

 

	
			25.4

				
			Wherever this Agreement includes English terms after which either in the same provision or elsewhere in this Agreement German terms have been inserted in brackets and/or italics, the respective German terms shall be decisive for the interpretation of the English terms. The use of a legal term of German law comprises the use of the analogously - by content and function - closest foreign legal term, if facts have to be judged under such foreign law. Wherever this Agreements provides that a Party “has to”, “shall” or “will” do and/or procure any action or situation, such Party shall be strictly liable for the performance of the relevant action or the occurrence of the relevant situation.

			

 

 

 

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			25.5

				
			This Agreement constitutes the entire agreement among and between the Parties with respect to the subject matter hereof. Side agreements to this Agreement do not exist. Agreements, negotiations and understandings, whether oral or written, heretofore made between the Parties shall be replaced by this Agreement.

			

 

	
			25.6

				
			Should any provisions of this Agreement be or become totally or partially invalid or unenforceable, or if this Agreement contains gaps, the validity or enforceability of the other provisions of this Agreement shall not be affected thereby. In place of the invalid, unenforceable or missing provision a valid and enforceable provision which the Parties would have agreed upon taking account of the economic purpose of this Agreement if they had, at the conclusion of this Agreement, been aware of the invalidity, unenforceability or the absence of the relevant provision, shall be deemed to be agreed between the Parties. The Parties shall be obligated to confirm such a provision in the form required by law.

			

 

 

 

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