Document:

Exhibit 10.19

 

Termination Agreement

 

This Termination Agreement (“Agreement”) is effective as of July 1st, 2015 (“Termination Date”) by and between congatec AG, a German corporation (the “Company”) and Mr. Chao Ito-Chung (Mike), resident in 11F-3, No. 422, GuangFu 5. Rd., Taipei, Taiwan (the “Executive”).

 

WHEREAS, both parties entered into an Employment Agreement with the employment period from January 1, 2015 to December 31, 2015 set forth under severance Attachment 1 hereto;

 

WHEREAS, both parties wish to terminate the above Employment Agreement entered between the Executive and the Company;

 

NOW, THEREFORE, the Company and the Executive hereby agree as follows:

 

1.                                      Both the Executive and the Company mutually agree to terminate this Agreement upon the Termination Date hereof.

 

2.                                      Despite the termination of the Employment Agreement, the Company agrees to pay the following compensations to the Executive:

 

1)                                     The Bonus compensation set forth under Article 2 (b) and Annex 1 of the Employment Agreement at 100% ratio.

 

2)                                     The pension compensation set forth under Article 2 (c)(ii) under the Employment Agreement for Bonus compensation,

 

The Company agree to dispatch above Bonus and Pension compensation of 2015 to Executive at the end of each quarters of 2015. However, the above compensation shall be paid to the Executive no later than January 25, 2016.

 

3.                                      The Executive agree to waive his rights to the Base Salary and Severance Payment against the Company,

 

4.                                      This Agreement shall supersede and substitute the Employment Agreement, if any terms and conditions hereof contrary to the Employment Agreement, this Agreement shall prevail.

 

5.                                      This Agreement shall be construed under and governed by the laws of Taiwan, without reference to its conflicts of law principles, and any disputes between the parties shall have the forum of disputes be in Taipei, Taiwan.

 

6.                                      This Agreement may be executed in two counterparts, each of which shall be deemed as original but which together shall constitute one and the same instrument.

 

 

7.                                      In the event that any action is brought to enforce any of the provisions of this Agreement, or to obtain money damages for the breach thereof, all expenses, including reasonable attorneys’ fees shall be paid by the Company if the Executive is the prevailing party.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

	
congatec AG
    	
Executive
    
	
 
    	
 
    
	
 
    	
 
    
	
Date: July 20,   2015
    	
Date: July [21],   2015
    
	
 
    	
 
    
	
 
    	
 
    
	
Signature: 
    	
/s/ Gerhard Edi
    	
 
    	
Signature: 
    	
/s/ Chao Ko-Chung
    
	
 
    	
Gerhard   Edi, CTO
    	
 
    	
Chao Ko-Chung
    
					

 

 

Date:  July 20, 2015

 

 

	
Signature: 
    	
/s/ Joseph Wenzl
    	
 
    
	
 
    	
Josef Wenzl, CFO
    	
 
    
	
 
    	
 
    

 

2Exhibit 10.20

 

congatec AG 
 Auwiesenstrasse 5 
 94469 Deggendorf 
 Germany

 

Deggendorf, October 31, 2012

 

Payment Guarantee

 

Everfine Industrial Corporation, 10F-3, No. 270, Sec 4, Chung Hsiao E. Rd, Taipei, Taiwan 10694

 

- hereinafter being referred to as Customer -

 

is under the obligation to provide to

 

Arrow Central Europe GmbH, Max-Planck Strasse 1-3, 63303 Dreieich, Germany                     
 - hereinafter being referred to as Contractor -

 

a guarantee to secure the Contractor’s claims for payment for the Contractor’s deliveries to the Customer in accordance with the “New supply line model (NSLM) for Intel Components” entered into by and among the Customer, the Contractor and Congatec AG, Auwiesenstrasse 5, 94469 Deggendorf, Germany, on October 31, 2012. The NSLM agreement is attached hereto as Annex 1 constituting an essential part of the contract.

 

Based on the foregoing, we,

 

Congatec AG, Auwiesenstrasse 5, 94469 Deggendorf, Germany,

 

assume a guarantee for any and all of the Contractor’s claims for payment against the Customer under the aforementioned agreement and its amendments up to a maximum amount of

 

€1,500,000 (in words: one million five hundred thousand euro)

 

but only with regard to the amount exceeding the respective limit of the trade credit insurance.

 

The claim for payment under this guarantee shall be due if all of the following proofs and documents have been submitted to the guarantor:

 

1.              Proof of correct delivery by submitting the relevant delivery note;

 

2.              Proof of invoicing by submitting a copy of the original invoice issued to the Customer;

 

3.              Proof of two reminders by ARROW following the due date of the invoice in the ordinary course of business by submitting a copy of the reminders;

 

4.              Proof of the amount of the existing trade credit insurance to be submitted by the Contractor;

 

5.              Affirmation by the Contractor that the Customer has not paid despite correct delivery, invoice and reminders and that the claimed amount has not been paid under the trade credit insurance.

 

 

We may only be held liable to make payment in cash under this guarantee. We waive any defense of unexhausted remedies, avoidance and set-off unless the counterclaim of congatec AG is final and absolute.

 

We are not entitled to disengage us from the guarantee by depositing the guaranteed amount. If several guarantees are assumed with regard to the aforementioned transaction, each guarantor shall be liable for the amount guaranteed by him.

 

Unless this guarantee has been called before, it shall expire upon the complete satisfaction of the Contractor’s aforementioned claims for payment resulting from the “Agreement Settlement Intel - business New supply line model (NSLM) for Intel Components” dated October 31, 2012. The deed of guarantee is then to be returned to us.

 

Any claims against us under this guarantee shall not become time-barred prior to the expiration of the limitation period of the claims against the Contractor secured hereby.

 

Claims under this guarantee shall not be assignable.

 

This guarantee is subject to the laws of the Federal Republic of Germany.

 

Place of performance for payment and place of jurisdiction is Deggendorf, Germany.

 

In the event any of the aforementioned provisions is invalid, the validity of the remaining provisions of this guarantee shall not be affected thereby.

 

	
Deggendorf, October 31, 2012
    	
 
    
	
 
    	
 
    
	
/s/ Gerhard Edi
    	
 
    
	
(signature of guarantor)Exhibit 10.21

 

Agreement Settlement Intel — business

 

Preambel:

 

Currently, congatec AG orders components with Arrow Central Europe GmbH, which will be delivered to Everfine Industrial Corporation in Taiwan. The corresponding productions will be arranged by Everfine Industrial Corporation. congatec AG will be invoiced by Arrow Central Europe GmbH.

 

This order and invoicing process shall be shortened within the framework of the New Supply Line Models (NSLM).

 

Basis of the Agreement:

 

New supply line model (NSLM) for Intel components according to the ARROW available Intel price list

 

Agreement:

 

congatec AG (congatec), Auwiesenstrasse 5, 94469 Deggendorf,

 

and

 

Arrow Central Europe GmbH (ARROW), Max-Planck Strasse 1-3, 63303 Dreieich, Deutschland ,

 

as well as

 

Everfine Industrial Corporation (EFCO) , 10E-3, No. 270, Sec 4, Chung Hsiao E. Rd., Taipei, Taiwan 10694,

 

agree to the following points of the above NSLM:

 

Orders and deliveries are placed in the name and account of EFCO.

 

Deliveries from ARROW to EFCO take place once a week. The term of delivery is FCA (Free Carrier) analog Incoterms 2010.

 

ARROW’s price commitment to EFCO is only valid for the products listed on the current congatec price list.

 

The negotiated price list between congatec and Intel/ARROW also applies to EFCO.

 

congatec authorizes EFCO to use these negotiated prices and buy the Intel components with Arrow Central Europe in Putzbrunn, Germany.

 

 

EFCO is committed to use the agreed prices exclusively for congatec and not for one or more other parties.

 

ARROW commits to reporting the revenue with EFCO to congatec on a monthly basis.

 

Used currency is USD

 

Term of payment: 45 days net

 

ARROW’s current credit limit for EFCO is 500.000,00 USD. Additionally, ARROW agrees to adjust the amount of the credit limit based on the volume of the business.

 

ARROW establishes a safety stock for Intel products, which can be used by EFCO and congatec. The required components and quantities are agreed between ARROW and congatec in the separate logistic agreement Appendix A.

 

Quarterly, prices and updates for Appendix A will be negotiated between ARROW and congatec.

 

congatec provides a forecast for the required products to ARROW on a monthly basis.

 

For this agreement congatec intend to act as guarantor for ARROW’s receivables against EFCO. This will be separately stated in a “certificate of bond”.

 

As far as congatec covers ARROW’s receivables against EFCO, congatec reserves the right to demand payment for those receivables from EFCO.

 

As far as the liability of EFCO to ARROW is covered by the guarantee of congatec ARROW declines to it’s right of retention of goods. Concerning all Reclamations for the deliveries (quantity, delivery times, quality, package etc.) will be agreed between EFCO and ARROW without any involvement of congatec.

 

Claims arising from this agreement are not transferable.

 

Mutually agreed place of jurisdiction for this agreement is Germany.

 

 

	
/s/ Lother Slaby and   /s/ Robert Hendel
    	
 
    	
 
    
	
Arrow Central Europe   GmbH
    	
 
    
	
(name, position)
    	
Putzbrunn, 11/22/2012
    
	
 
    	
 
    
	
/s/ Josef Wenzl
    	
 
    	
 
    
	
congatec AG
    	
 
    
	
Vice President of   Finance and Administrations
    	
Deggendorf,
    
	
 
    	
 
    
	
/s/ Kao Mei Hui
    	
 
    	
 
    
	
Everfine Industrial Corporation   Ltd.
    	
Taipei
    
	
President
    	
 
    

 

2

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