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EX-99.(e)(9)
SALES AGREEMENT
THIS AGREEMENT made and entered into as of 1st day of July, 1999, by and between
RICOH COMPANY, LTD., a Japanese corporation having its principal place of
business at 1-15-5, Minami-Aoyama, Minato-ku, Tokyo 107-8544 Japan ("RICOH") on
behalf of itself and its wholly owned subsidiary corporations - Ricoh
Corporation a Delaware U.S.A. corporation having its principal place of business
at 5 Dedrick Place, West Caldwell, New Jersey 07006, U.S.A. ("RC"); Ricoh
Europe B.V., a Netherlands corporation, having its principal place of business
at Groenelaan 3, 1186 AA, Amstelveen, The Netherlands ("RE"); and Ricoh Asia
Pacific PTE, Ltd., a Singaporean corporation having its principal place of
business at 260 Orchard Road, #15-01/02 The Heeren, Singapore 2398855 ("RA")
(hereinafter, RICOH, RC, RE and RA are severally and collectively referred to as
"VENDOR"), and
LANIER WORLDWIDE, INC., a Delaware corporation, having its principal place of
business at 2300 Parklake Drive, N.E., Atlanta, Georgia 30345 (hereinafter
called "LANIER").
WITNESSETH
WHEREAS, LANIER desires to purchase from VENDOR, and VENDOR is willing to sell
to LANIER, certain products manufactured by or for VENDOR for resale, by LANIER,
under the LANIER brand is certain territories,
NOW, THEREFORE, the parties hereto agree as follows:
ARTICLE 1. DEFINITIONS
Whenever used is this Agreement, unless otherwise clearly required by the
context, the following terms shall have the meanings set forth is this Article
and no other.
1. The term "MACHINES" means the models of facsimile equipment; digital
multifunction products; and full color copiers manufactured by VENDOR
(or its related and/or authorized companies or factories whether is
Japan or elsewhere) to which VENDOR and LANIER have agreed upon the
terms and conditions of sale and which are listed in Appendix A which
is attached hereto and which is made a part hereof the specifications
for which are set forth is Appendix B.
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2. The term "PRODUCTS" means MACHINES, and all related accessories,
consumable supplies and parts.
3. The term "TERRITORY" means the countries of
(1) North America (the United States of America, Canada and Mexico
but excluding their territories or possessions such as Guam, etc)
and Latin America;
(2) Western Europe including countries of Poland, Czech, Solvakia,
Latvia, and Russian Federation; and
(3) Australia.
ARTICLE 2. SALES RIGHT
1. LANIER shall have the non-exclusive right to sell and distribute the
facsimile equipment identified in Appendix A-1 in the TERRITORY
described in Article 1-3(1) (North and Latin America only).
2. LANIER shall have the non-exclusive right to sell and distribute the
digital multifunction products identified in Appendix A-2 and the full
color copiers identified in Appendix A-3 in the TERRITORY described in
Article 1-3(1) through (3).
3. LANIER and VENDOR shall carefully study in good faith and determine by
mutual agreements whether LANIER will sell the PRODUCTS in the other
countries or not.
4. It is understood and agreed by LANIER and VENDOR that VENDOR may freely
sell any products similar to or exactly the same as the PRODUCTS under
any trademarks other than those of LANIER to any third party or parties
(whether end-users, distributors, and/or retail dealers) in any
countries of the world.
ARTICLE 3. PRICE AND SHIPMENT
1. Prices for PRODUCTS shall be respectively decided for three regions of
the TERRITORY (North and Latin America; Western Europe; and Australia).
2. Prices for the PRODUCTS shall be established in three different
currencies for respective regions of the TERRITORY as shown below, on
an F.O.B. Japan (or other country of manufacturer) basis by VENDOR.
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Region Quoted in
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North and Latin America US$
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Western Europe DFL
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Australia JPY
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3. Prices for the PRODUCTS shall be discussed and agreed upon by LANIER
and VENDOR and then shall be in the price lists which VENDOR may issue
from time to time to LANIER. However, when the prices shall be changed
at any time in accordance with the Currency Sharing Rule described in
Article 4, the prices shall be automatically determined by VENDOR.
4. If either party suggests an adjustment to the prices shown is price
list, the parties shall negotiate in good faith for the suggested
change and any such change, if mutually agreed upon, shall be effected
only upon the issuance, by VENDOR, of an amended price list.
5. VENDOR will effect delivery of the PRODUCTS (excluding Spare Parts
defined in Article 12) to the place designated by LANIER in writing by
the time specified in the purchase order.
Number of Products Shipment Locations from VENDOR to LANIER is as
follows;
1) North and Latin America region - Three Locations
2) Western Europe region - One Location
3) Australia region - One Location
Delivery terms shall be F.O.B. Japan (or other country of manufacture)
and title to and all risk of loss or damage shall pass to LANIER when
the PRODUCTS are effectively consigned, by VENDOR, to a carrier for
delivery to LANIER at the shipping port.
ARTICLE 4. CURRENCY RISK SHARING RULE
LANIER and VENDOR agree to share the currency risk in accordance with the
Currency Risk Sharing Rule set forth in Appendix C for the TERRITORY of North
and Latin America, and Westerns Europe. The Currency Risk Sharing Rule set forth
in Appendix C (the "Rule") shall be applied to the MACHINES identified in
Appendix A, the related accessories and supplies, as follows;
a) FOR THE MACHINES, ACCESSORIES AND SUPPLIES MANUFACTURED IN JAPAN
(WHETHER MANUFACTURED BY RICOH OR PROCURED BY RICOH FROM OTHER
SOURCES);
The FOB Prices Adjustment Formula (set forth in paragraph 5 of the
Rule) shall be applied as it is.
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b) FOR THE MACHINES AND ACCESSORIES MANUFACTURED BY RICOH ASIA INDUSTRIES
(RAI) IN CHINA
The FOB Prices Adjustment Formula (set forth in paragraph 5 of the
Rule) shall be applied as it is; provided, however, that, only with
respect to MACHINES of Lanier 5235MFD and Lanier 5245MFD and
accessories thereof (Bridge Unit), sold to Lanier Europe AG, the FOB
Prices Adjustment Formula shall be applied, with its "FOB Adjustment
Ratio" multiplied by 0.5.
c) FOR THE SUPPLIES MANUFACTURED BY RICOH INDUSTRIE FRANCE S.A. (RIF) IN
FRANCE;
The rule itself shall not be applicable.
d) FOR THE ACCESSORIES MANUFACTURED BY RICOH ELECTRONICS INC (REI) IN USA;
The FOB Prices Adjustment Formula (set forth in paragraph 5 of the
Rule) shall be applied, with its "FOB Adjustment Ratio" multiplied by
0.5.
e) For the NIC Cards manufactured outside Japan and procured by RICOH's
overseas subsidiaries for supply to LANIER:
The Rule itself shall not be applicable.
ARTICLE 5. TERMS OF PAYMENTS
1. Payment for the PRODUCTS shall be made by LANIER on or before the
thirtieth (30th) day following the date of Bill of Lading.
2. The payment shall be made by LANIER or LANIER's subsidiaries in the
three different currencies as per below mentioned.
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Region Quoted in
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North and Latin America US$
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Western Europe DFL
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Australia JPY
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3. Credit line will be established for LANIER for each region of the
TERRITORY by VENDOR.
If the account balance for any region of the TERRITORY should exceed
the credit line set forth for such region, a Stead By Letter of Credit
or cash on delivery or advance payment will be requested by VENDOR
against the amount in excess of the credit limit.
4. In order that VENDOR may have some reasonable assurance of each LANIER
subsidiaries performance of its payment obligations set forth herein,
LANIER
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WORLDWIDE, INC. agrees that it shall irrevocably and unconditionally
guarantee the financial performance of each of the LANIER subsidiaries
which is subject to this Agreement.
5. LANIER WORLDWIDE, INC. shall pay to the appropriate entity of VENDOR,
in full without discount or setoff, any and all amounts owing to VENDOR
by each or all LANIER subsidiaries within fifteen (15) days of the date
of VENDOR's demand to pay.
6. LANIER and VENDOR agree that the billings and payments shall be given
or made as described below for respective regions of the TERRITORY.
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Billing Payment
Region ------------------------- ---------------------
by to by To
--------------------- --------- ------------- ---------------- --
North & Latin America RC LANIER LANIER Worldwide RC
Worldwide
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Western Europe RE LANIER Europe LANIER Europe RE
AG AG
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Australia RA LANIER LANIER RA
Australia Australia
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ARTICLE 6. ANNUAL MINIMUM PURCHASE QUALITY
1. LANIER and VENDOR agree that the annual minimum quantity to be
purchased (the "Minimum Purchase") by LANIER shall be specified, for
each model of MACHINES and for each region of the TERRITORY, in
Appendix D attached hereto.
2. In the event LANIER fails to purchase the Minimum Purchase quantity
from VENDOR set for any specific model of MACHINES in any region of the
TERRITORY in any year as set forth in Appendix D and no mutually
acceptable remedy and conclusion are reached in good faith discussions,
then in such event, VENDOR shall have the right, at its option, either
to eliminate such specific model of MACHINES in such region of the
TERRITORY from Appendix A or to eliminate such specific model of
MACHINES in all regions of the TERRITORY from Appendix A upon four (4)
months prior written notice from VENDOR.
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ARTICLE 7. ORDER PROCEDURES
1. LANIER shall issue to VENDOR, by the fifth (5th) business day of every
month (except for January, April, July, and October, for which the
seventh (7th) business day shall be applicable in the case of issuing
an order to RC , or by the third (3rd) business day of every month in
the case of issuing an order to RE, or by the first (1st) business day
of every month in the case of issuing an order to RA, a firm order for
the PRODUCTS (excluding Spare Parts defined is Article 12) to be
manufactured during the following second (2nd) month and forecast for
the PRODUCTS (excluding Spare Parts defined in Article 12) to be
manufactured during the following third (3rd) month respectively.
2. Upon receipt of each firm order and forecast, VENDOR shall send written
acknowledgement of such order to LANIER by the twenty-fifth (25th)
calendar day of the same month. A firm order so acknowledged shall be
final and binding upon the parties hereto.
[Example] On or before the 5th (1st or 3rd) business day of
May, LANIER shall place a firm purchase order for the
PRODUCTS (excluding Spare Parts defined is Article
12) to be manufactured during the month of July, with
the forecasts for August.
3. The forecasts far the production in the following third (3rd) month may
fluctuate in terms of quantity within the range of plus or minus
twenty-five percent (25%) with respect to each item of the PRODUCTS
(excluding Spare Parts defined is Article 12), when such forecasts are
converted to firm orders.
4. The firm purchase orders and forecasts set forth in paragraph 1 above
shall be issued as shown below for respective regions of the TERRITORY.
---------------------------------------------------
Region From --> to
--------------------- ---------------------------
North & Latin America LATER Worldwide --> RC
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Western Europe LANIER Europe AG --> RE
---------------------------------------------------
Australia LANIER Australia --> RA
---------------------------------------------------
5. Any terms or conditions printed on the face or the reveres side of
LANIER's purchase order and/or VENDOR's acknowledge form shall not be
part of this Agreement even in the event such purchase order sheet or
VENDOR's acknowledgement form is signed and returned by VENDOR to
LANIER or
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LANIER to VENDOR.
6. PRODUCTS (excluding Spare Farts defined in Article 12) purchased by
LANIER's subsidiaries and affiliates within the TERRITORY which are
disclosed to and accepted by VENDOR will be deemed to be LANIER's
purchases for purposes of meeting LANIER's Purchase Quantity
obligations specified in Appendix D, attached hereto and made an
integral part hereof.
ARTICLE 8. INSPECTION AND ACCEPTANCE
1. LANIER shall have the right to conduct an inspection of the PRODUCTS in
VENDOR's factory in accordance with the inspection standards and
procedures, and acceptance level table for model by model which are
separately agreed upon by both parties. The inspection before delivery
will be carried out by LANIER's personnel during a designated
inspection period. LANIER shall promptly notify VENDOR in writing, of
the result of inspection judgement (acceptance or rejection).
2. If any PRODUCTS are rejected by LANIER due to inspection and notice of
such fact is sent to VENDOR, then the procedure mentioned below shall
follow:
VENDOR may either:
(1) Repair the rejected PRODUCTS at its expense in its discretion; or
(2) Replace the, rejected PRODUCTS with acceptable PRODUCTS.
3. In the event that VENDOR is not able to repair the rejected PRODUCTS in
VENDOR's factory for any reasons and in the event that LANIER and
VENDOR agree, VENDOR will request LANIER to repair the rejected
PRODUCTS at the destination. VENDOR shall furnish to LANIER repair or
replacement parts necessary for the repair of the rejected PRODUCTS to
be performed by LANIER. VENDOR will pay a reasonable labor coats
associated with such repairs.
4. In the event that LANIER fails or refuses to perform any inspection of
certain PRODUCTS as set forth in this Article 8, then each PRODUCTS
shall be deemed accepted without qualification.
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ARTICLE 9. PTT APPROVALS
1. RICOH, on behalf of LANIER, will obtain the initial PTT approval as
needed in each country where VENDOR markets its RICOH branded products.
2. All costs in obtaining such initial PTT approval for RICOH branded
products in each country where LANIER markets products shall be borne
by RICOH.
In addition to the initial PTT approval, with, respect, to the
countries where additional PTT approval is required for LANIER branded
products, all additional costs for obtaining such additional PTT
approval shall be borne by LANIER.
3. With respect to the countries where in addition to the initial PTT
approval, LANIER must independently apply for PTT approval for LANIER
branded products, all additional costs for obtaining such independent
PTT approval shall be borne by LANIER.
ARTICLE 10. MACHINE MODIFICATIONS, FUTURE MACHINES AND MACHINE DISCONTINUATION
1. If either party requests of the other a change of the specifications or
standards or special specifications for the MACHINES and accessories,
such matters shall be determined upon mutual discussions of the
parties. If any such change or special specifications requested by
LANIER, result, in the judgement of VENDOR, in an increase in the cost
of MACHINES and accessories or in the length of time required for the
manufacture or shipment to LANIER, then the cost increase for such
MACHINES and accessories shall be charged to LANIER and an extension of
the time of shipment shall be allowed without incurring any liability
on the part of VENDOR.
2. In the event that VENDOR determines, in its sole discretion, to
manufacture, market, or distribute the successors of the MACHINES and
accessories, VENDOR may, at its option, offer such successor equipment
to LANIER as additions to the MACHINES and accessories under this
Agreement, and if VENDOR offers, the parties shall in good faith enter
into negotiations to determine the purchase price for such equipment
and the Minimum Purchase Quantity necessary or appropriate in light of
such addition to the MACHINES and accessories.
3 VENDOR shall be entitled to discontinue any model of the MACHINES and
accessories at any time provided that VENDOR shall provide LANIER with
at least six (6) months advance notice, is writing of the
discontinuation of such
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MACHINE or MACHINES and accessory or accessories.
(1) Such discontinuation notice shall request that LANIER places its
final production order not later than sixty (60) days after the
date of the discontinuation notice.
(2) If LANIER fails or refuses to place a final production order
within the time allotted in Article 10-3-(1), then, in such event
VENDOR shall be entitled to discontinue such MACHINE and
accessory immediately after the end of such sixty (60) day,
period.
4. In the event that LANIER has placed no order for any model of the
MACHINES and accessories for six (6) consecutive months, VENDOR shall
provide LANIER with a notice in writing of the discontinuation of such
MACHINE or MACHINES and accessory or accessories.
(1) Such discontinuation notice shall request that LANIER places its
final production order not later than sixty (60) days after the
date of the discontinuation notice.
(2) If LANIER fails or refuses to place a final production order
within the time allotted in Article 10-4-(1), then, is such event
VENDOR shall be entitled to discontinue such MACHINE and
accessory immediately after the end of such sixty (60) day
period.
ARTICLE 11. WARRANTY
1. VENDOR Warrants that the MACHINES manufactured by VENDOR or its
manufacturing affiliates and delivered to LANIER shall be free from any
defects in material and workmanship under conditions which are
described in specifications for the MACHINE set forth its Appendix B
hereto;
(a) for a period of twelve (12) months from the VENDOR's shipping
date, or
(b) for a period of nine (9) months from the installation date, or
(c) for a certain number of copies separately specified in Appendix
E, whichever comes first.
2. VENDOR warrants that the spare parts, consumable parts and
subassemblies manufactured by or for VENDOR and delivered to LANIER
shall be free from
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any defects in material and workmanship under conditions which are
described in specifications for the MACHINE set forth in Appendix B
hereto for a period of six (6) months from VENDOR's shipping date, or
for a certain number of copies specified in Appendix E for consumable
parts, whichever comes first.
3. VENDOR warrants that OPC supplied by VENDOR shall be free from any
defects in material and workmanship for a period of twelve (12) months
from the VENDOR's shipping date, or for a separately defined number of
copies as defined is Appendix E hereto, whichever first occurs. This
warranty shall not apply to OPC that has been stored or transported
after receipt by LANIER under conditions which are inconsistent with
the specifications.
4. VENDOR warrants that the toner supplied by VENDOR shall be free from
any defects in material and workmanship for a period of twelve (12)
months from the VENDOR'S shipping date. This warranty shall not apply
to toner that has been stored or transported after receipt by LANIER
under conditions which are inconsistent with the specifications.
5. The sole obligation of VENDOR for the warranties of any kind or nature
shall be provided to LANIER by VENDOR in the form of a lump sum payment
(the "Warranty Compensation") on or about the end of every calendar
quarter by region of the TERRITORY. The Warranty Compensation for the
model of the MACHINES and related accessories, and photocouductor(s)
shall, be set forth in Appendix F. The Warranty Compensation shall be
renegotiated, if one party so desires, but is any event, not more than
once a year. The Warranty Compensation is designed, and the parties
hereto understand and agree that it is designed, as the sole and
exclusive method to compensate LANIER for its costs and materials
reasonably expected to be used in LANIER's service activities during
the applicable warranty periods. VENDOR'S sole obligation with regards
to warranties of each and every kind or nature shall be fulfilled when
the Warranty Compensation as set forth in Appendix F, is paid or
credited to LANIER by VENDOR.
6. VENDOR shall request. LANIER to have a technical meeting twice a year.
The purpose of meeting is to know the information on MACHINES in the
field; parts usage; symptoms; and customer call analysis is order for
VENDOR to monitor operating performance of the MACHINES. LANIER shall
install the MACHINES sold from its inventory using a first in first out
basis.
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7. Compensation and any countermeasure application for catastrophic
failures will be negotiated by both parties on a case-by-case basis.
8. THE WARRANTY COMPENSATION DESCRIBED IN ARTICLE 11-5 ABOVE REPRESENTS
(ONCE PAID OR CREDITED AS PROVIDED HEREIN) LANIER'S SOLE AND EXCLUSIVE
REMEDY AS REGARDS ANY BREACH OF WARRANTY BY VENDOR AND VENDOR MAKES NO
OTHER WARRANTY, WHETHER EXPRESS OR IMPLIED, ARISING OUT OF CUSTOM OR
USAGE WITH RESPECT TO MERCHANT ABILITY, FITNESS FOR A PARTICULAR
PURPOSE, CONDITION, QUALITY OR OTHERWISE.
9. VENDOR SHALL NOT, IN ANY EVENT, BE LIABLE FOR ANY INCIDENTAL OR
CONSEQUENTIAL DAMAGES OR LOSS OF PROFITS OCCASIONED BY ANY BREACH OF
WARRANTY OR EQUIPMENT DOWNTIME.
ARTICLE 12. SPARE PARTS AND CONSUMABLE SUPPLIES
1. Spare Parts:
(1) Spare Parts shall mean all parts for the MACHINES and optional
accessories described in the parts list with part numbers, which
VENDOR provides LANIER separately from time to time.
(2) Order procedures and supply system for Spare Parts shall be
discussed and agreed upon separately for each region of the
TERRITORY.
(3) VENDOR shall supply LANIER, with Spare Parts for five (5) years
after the date of last shipment of MACHINES to LANIER provided,
however, that in case any sudden change in parts procurement
circumstances have made it difficult for VENDOR to further supply
any specific Spare Parts to LANIER, then the parties hereto shall
discuss and determine the action to be taken with respect to such
Spare Parts. At the end of the fifth (5th) year, VENDOR may enter
into negotiation as to the supply of Spare Parts for the sixth
(6th) and seventh (7th) years.
2. Consumable Supplies:
VENDOR shall supply LANIER with Consumable Supplies for five (5) years
after the date of last shipment of MACHINES to LANIER provided,
however, that in case any sudden change in supplies procurement
circumstances have made it difficult for
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VENDOR to further supply any specific Consumable Supplies to LANIER,
then the parties hereto shall discuss and determine the action to be
taken with respect to such Consumable Supplies. At the end of the fifth
(5th) year, VENDOR may enter into negotiation as to the supply of
Consumable Supplies for the sixth (6th) and seventh (7th) years.
ARTICLE 13. TRADEMARKS
1. The PRODUCTS shall, in accordance with instructions of LANIER, bear the
trademark of LANIER. LANIER agrees that any disputes, claims, actions,
suits or otherwise filed by any third party with respect to the said
trademark or other trademarks directed by LANIER for use onto the
PRODUCTS shall be settled at LANIER's sole responsibility and expense.
2. LANIER shall indemnify, hold harmless and defend VENDOR and VENDOR'S
subsidiaries and affiliates from and against any loss, damage, or
otherwise (including reasonable attorney's fees and disbursements)
which VENDOR may suffer in any dispute, claim, actions, suit, or
otherwise described in this Article 13.
3. Where it is required by any laws or regulations in any country of the
TERRITORY to manifest the name of the manufacturers of the PRODUCTS,
VENDOR may place the name or symbol of VENDOR or say contraction,
abbreviation, or simulation thereof or other necessary marks onto the
PRODUCTS in a manner approved by LANIER which approval shall not be
unreasonably withheld. Nothing herein shall grant VENDOR any rights in
and to the trademark, `LANIER'.
4. Nothing contained herein shall grant LANIER and rights in and to the
trademarks, trade dress or insignia of VENDOR and/or VENDOR's
subsidiaries and affiliates.
ARTICLE 14. PATENTS
1. For the purpose of this Article 14., "Claim" means any claim, whether
before or outside of any Court, that the PRODUCTS purchased hereunder
or the sale or normal use thereof constitute an infringement of any
patents in the TERRITORY of a third party.
2. In the event that a Claim is brought against LANIER or its vendees,
LANIER shall give VENDOR prompt written notice of the Claim, and VENDOR
shall defend or otherwise respond to, at its expense, the Claim in
whatever, manner VENDOR shall decide is
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appropriate, and shall defend and indemnify LANIER in any proceeding on
the Claim. LANIER shall give VENDOR complete and absolute authority to
conduct and control the settlement, compromise or prosecution, through
counsel of its own choosing, of the proceeding. In all cases LANIER
shall render all such assistance as VENDOR may reasonably request for
the purpose of defending, settling or compromising the Claim.
3. In the event of such Claim, and whenever VENDOR deems it appropriate,
VENDOR shall, at its own expense, either procure for LANIER and its
vendees the right to continue using or selling the PRODUCTS or modify
them so that they become noninfringing.
4. VENDOR shall not be liable for the Claim if the Claim solely arises out
of or results from (1) VENDOR'S compliance with or adoption of any
specification, design, feature, mark or symbol, component parts or
printed materials furnished by LANIER for incorporation or use into the
PRODUCTS, or (2) any modification or reworking made by LANIER, or upon
instruction of LANIER performed by VENDOR, to the PRODUCTS.
5. VENDOR SHALL NOT, IN ANY EVENT, BE LIABLE FOR ANY INCIDENTAL OR
CONSEQUENTIAL DAMAGES OR LOSS OF PROFITS WHICH LANIER OR ITS VENDEES
MAY SUSTAIN OR SUFFER, EVEN IF VENDOR IS NOTIFIED OF THE POSSIBILITY OF
SUCH DAMAGES OR LOSS, DUE TO OR IN CONNECTION WITH ANY CLAIM.
ARTICLE 15. DURATION OF THE AGREEMENT
1. This Agreement shall be deemed to come into force on the 1st day of
July, 1999 and unless earlier terminated in accordance with the
provisions of this Agreement shall continue in force and effect until
and including the 30th day of June, 2002. The parties may extend this
Agreement if they agree to do so at least 6 months prior to the
expiration thereof.
2. Provisions of Article 11, 12, 13, 14, 17, 23, 24, 25, 26-6 shall
survive the expiration or termination of this Agreement.
ARTICLE 16. TERMINATION OF THE AGREEMENT
1. In the event of happening of any of the following events to either
party, the other party may forthwith terminate, wholly or partly, this
Agreement,
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any outstanding purchase orders and/or any other contract concluded
under or in connection with this Agreement by sending a written notice
to the first party.
(1) If either party hereto continues in default of any obligation
imposed on it herein and/or therein for more than two (2) months
one (1) month in the event of any payment default after written
notice has been dispatched by registered or certified airmail by
the other party requesting that the party in default remedy such
default;
(2) If either party hereto is subjected to compulsory execution,
public auction, coercive collection for its arrearage of taxes or
public imposts, or suspension of business by public authorities,
or appointment of any receiver or trustee of itself or any
substantial portion of its property, or if an application or
petition is submitted for bankruptcy, corporate arrangement, or
commencement of corporate reorganization under statutes for the
relief of debtors, or if either party hereto files a voluntarily
application or petition for bankruptcy, corporate arrangement or
commencement of corporate reorganization or composition under
statutes for the relief of debtors; or if either party hereto
adopts a resolution for discontinuance of its principal business
or transfers to another company all or an important part of its
assets or business or for a substantial decrease of its capital
or for dissolution; or either party makes a general assignment
for the benefit of creditors; or if either party hereto admits in
writing its inability to pay debts as they become due; or if
either party is declared in default of any material contract
between it and the other hereto.
2. In the event of termination of this Agreement for any reason
whatsoever:
(1) VENDOR may, at its sole discretion, cancel any valid, accepted
purchase order of the PRODUCTS which have been unshipped at the
date of such termination. If any purchase order is cancelled for
any reason whatsoever, VENDOR may sell any PRODUCTS which it is
holding and which bear the LANIER brand name in any reasonable
commercial manner anywhere VENDOR so chooses by first removing,
at LANIER's cost and expense, any LANIER signs, marks, and/or
labels from the PRODUCTS, and
(2) Each party hereto shall promptly return to the other any
materials of
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property in its possession or custody supplied by and belonging to the
other party in connection with this Agreement.
3. Except as otherwise clearly provided herein, any termination of this
Agreement shall be without prejudice to any right which shall have
accrued to either party hereunder prior to such termination.
ARTICLE 17. DISCLOSURE OF INFORMATION
1. All information, suggestions, or ideas transmitted by either party to
the other party in connection with this Agreement or the performance
hereunder and which are designated in writing by the transmitting party
as "SECRET" or "CONFIDENTIAL" shall be treated as secret or
confidential by the receiving party and shall not be divulged or
disclosed to any third party. It is specifically agreed that any
technical know-how and marketing information (such as price and other
sales conditions of either party to this Agreement) shall be hereby
regarded as secret and confidential without making such designation.
2. Prior written approval of press releases and any other publicity in
reference to this Agreement shall be obtained by the releasing party
from the other party.
3. LANIER and VENDOR shall also exert best efforts to ensure that, their
subsidiaries and purchasers for resale of office equipment do not
utilize the similarity of the PRODUCTS to the other products or models
of their office equipment in advertisements, representation, or methods
of sale.
ARTICLE 18. ASSIGNMENT
Neither party shall assign, transfer, or otherwise dispose of this Agreement in
whole or in part or of any right or obligation hereunder to any third party
without the prior written consent of the other party.
ARTICLE 19. NOTICES
1. Except as otherwise provided herein all notices to be given or made
under this Agreement shall be in writing and be deemed duly gives when
personally delivered or sent by
15
<PAGE>
registered or certified air mail, postage prepaid, with information
copy by facsimile transmission, and, addressed to the principal office
of the parties as indicated hereinabove or to such other address as
either party may hereafter furnish to the other party in writing.
2. Notices in writing personally delivered are deemed to have been
properly given when delivered to as officer of the party to whom such
notice is addressed.
3. Notices sent by mail shall be deemed given or made on the date of
dispatch, provided that one party sending notices shall confirm with
the other party its receipt of such notices.
ARTICLE 20. EXCEPTIONS
1. Neither party (the "Affected Party") shall be liable to the other in
any manner for failure or delay to fulfill all or part of this
Agreement, directly or indirectly, owing to Act of God, governmental
orders or restriction, war, threat of war, warlike conditions,
hostilities, sanctions, mobilization, blockade, embargo, detention,
revolution, riot, strike, lockout, accident, or any other events or
causes beyond its reasonable control.
2. In the event of any delay or failure due to the cause or causes given
in the preceding paragraph 1, the affected party shall send, by cable
or telex or otherwise, a written notice stating the reason therefor to
the other party (the "Unaffected Party") as promptly as possible. The
performance of the affected party shall be deemed suspended as long as,
and to the extent that, any such cause(s) continues, but this Agreement
and/or any purchase order(s) and/or other contract concluded under or
in connection with this Agreement then executory shall not be regarded
terminated, frustrated, or cancelled simply as a result of such delay
or failure and the parties hereto shall continue once more with their
performance when the cause or causes of such delay or failure have
ceased or have been eliminated; provided, however, that if such delay
or failure extends or is reasonably anticipated to extend for a period
of more than three (3) months, the Unaffected Party may, without any
liability on its part, terminate or cancel this Agreement and/or said
purchase orders and/or any other contract concluded under or in
connection with this Agreement by sending a written notice to the
Affected Party.
3. It is specifically understood and agreed that if LANIER cancels any
purchase order pursuant to paragraph 2 above, VENDOR may sell the
PRODUCTS elsewhere and in any manner by removing any LANIER signs,
marks, and labels on the PRODUCTS destined for LANIER.
16
<PAGE>
ARTICLE 21. NON-PROLIFERATION AGREEMENT
1. VENDOR and LANIER acknowledge the importance of non-proliferation of
massdestruction weapons such as nuclear, chemical, or biological
weapons or missile technology, and hereby agree to observe any laws and
ordinances concerning such nonproliferation in the country in which
each party is located, relative to use, sale, transfer of the
PRODUCTS/technical information which are to be supplied from VENDOR to
LANIER hereunder (hereinafter called "PRODUCTS/TECHNICAL INFORMATION").
2. LANIER shall not use or utilize the PRODUCTS/TECHNICAL INFORMATION for
development, design, manufacture and/or use of nuclear weapons,
chemical weapons, biological weapons or missile technology.
3. (1) Where it is possible that any PRODUCTS/TECHNICAL INFORMATION is
to be used for development, design, manufacture and/or use of
nuclear weapons, chemical weapons, biological weapons or missile
technology, LANIER shall identify and confirm end users and end
use of such PRODUCTS/TECHNICAL INFORMATION before selling,
transferring or providing such PRODUCTS/TECHNICAL INFORMATION to
them.
(2) If any PRODUCT/TECHNICAL INFORMATION are, or are likely to be
used by a person or a company for development, design,
manufacture and/or use of nuclear weapons, chemical weapons,
biological weapons or missile technology, LANIER shall not sell,
transfer, or furnish PRODUCTS/ TECHNICAL INFORMATION to such a
person or a company.
4. In case LANIER exports the PRODUCTS/TECHNICAL INFORMATION, it shall
export strictly in accordance with the laws and ordinances of the
exporting country.
ARTICLE 22. ENTIRE AGREEMENT
This Agreement and Appendices constitutes the entire and only agreement between
the parties hereto as to the subject matter hereof and supersedes all previous
understandings, commitments; and agreements whether oral or written relating to
the subject matter hereof,
17
<PAGE>
and no modification, amendment, or supplement of this Agreement shall be binding
upon the parties hereto except by mutual express written consent of subsequent
date signed by an authorized representative or officer of each of the parties
hereto.
ARTICLE 23. ARBITRATION
All disputes and/or differences between VENDOR and LANIER arising out of or in
connection with this Agreement shall be settled amicably through negotiations.
In case such dispute or difference cannot be settled amicably, it shall be
referred to arbitration consisting of three (3) arbitrators. In the event VENDOR
demands arbitration, such arbitration shall be held in the State of Georgia,
United States of America, in accordance with the rules of the American
Arbitration Association. In the event LANIER demands arbitration, such
arbitration shall be held in Tokyo, Japan, in accordance with the rules of the
Japanese Commercial Arbitration Association. Any such arbitration shall be
conducted in the English Language.
The decision and award of the arbitration shall be final and binding upon the
parties hereto and may be entered in any Court having jurisdiction, The cost of
any arbitration shall be equally borne by the parties hereto.
ARTICLE 25. GOVERNING LAW
It is mutually agreed that, except as otherwise required by mandatory provisions
of applicable laws of the TERRITORY, the terms of this Agreement and the
performance hereunder shall in all respects be governed, construed, and
interpreted by and under the laws of the State of New York, U.S.A.
ARTICLE 25. PRODUCT LIABILITY
1. VENDOR shall indemnify and hold harmless LANIER from any liability,
loss, expense, damage or cost, which may arise or be asserted based
upon death or injury or damage of any kind to any person or property
claimed to have resulted from any actual or alleged defect in material
or workmanship in any of the Products sold to LANIER; provided,
however, that LANIER shall give VENDOR prompt notice of any such claim
for liability, loss, expense, damage or cost, shall permit VENDOR to
control the defense of any litigation relating thereto, and shall
cooperate at LANIER's expense with VENDOR in the defense thereof, and
provided further, however, that VENDOR shall not be obligated to
indemnify LANIER for any special, incidental or consequential damages.
18
<PAGE>
2. No indemnity set forth in this paragraph shall apply if, at the time of
the incident giving rise such liability, loss, expense, damage or cost,
the Products involved was not being utilized for the purpose for which
it was reasonably intended to be used, or such liability, loss,
expense, damage or cost resulting from LANIER's negligence, abuse,
improper instruction to users, or improper storage, warehousing,
transport, maintenance, repair or installation.
ARTICLE 26. MISCELLANEOUS
1. WAIVER: A waiver by a party hereto of any particular provision hereof
shall not be deemed to constitute a waiver is the future of the same or
any other provision of this Agreement.
2. SEPARABILITY: The parties hereto agree that, in the event of one or
more of the provisions hereof being subsequently declared invalid or
unenforceable by Court or administrative decision, such invalidity or
unenforceability of any of the provisions shall not in any way affect
the validity or enforceability of any other provisions hereof except
those other provisions which comprise as integral part of or are
otherwise clearly inseparable from such invalidated or unenforceable
provisions,
3. APPLICABLE LANGUAGE: This Agreement has been executed by the parties
hereto in the English language, and no translated version of this
Agreement into any other language shall be controlling and binding upon
any of the parties hereto.
4. TITLES: The Article titles in this Agreement have been inserted for
convenience only and shall in no way be used in the interpretation
hereof.
5. EXPENSES: Unless otherwise expressly agreed herein or otherwise in
writing by the parties hereto, each party shall bear all expenses and
disbursements incurred or made by itself or any other investment made
by itself in connection with or in pursuant of this Agreement, and
neither party shall be entitled to compensation from the other party
for the said expenses, disbursements, or investment, whether on
termination of this Agreement for any reason whatsoever or otherwise,
unless otherwise expressly agreed upon in writing by the other party.
19
<PAGE>
6. GUARANTEE, OF LANIER'S SUBSIDIARY: LANIER hereby unconditionally
guarantees to VENDOR the due and punctual performance by LANIER's
subsidiary of all the terms and conditions of this Agreement to be
performed by LANIER's subsidiary hereunder, and indemnifies and holds
VENDOR harmless from and against any damages, costs, expenses, and
other liabilities incurred by VENDOR by reason of failure of LANIER's
subsidiary to fully perform and comply with the terms and conditions of
this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed
by their respective representatives or officers duly authorized thereunto as of
the date first above written.
RICOH COMPANY LTD. LANIER WORLDWIDE, INC.
By: /s/ Masami Takeiri By: /s/ C. Lance Herrin
------------------------- --------------------------
Name: Masami Takeiri Name: C. Lance Herrin
----------------------- ------------------------
Title: Managing Director Title: Chief Operating Officer
---------------------- -----------------------
Date: 8/31/99 Date: 9/21/99
---------------------- -----------------------
20
<PAGE>
APPENDIX A
(MACHINES)
1. FACSIMILE EQUIPMENT
(1) Lanier FAX 7570
2. DIGITAL MULTI FUNCTION PRODUCTS
(1) Lanier 5020 MFD
(2) Lanier 5025 MFD
(3) Lanier 5235 MFD
(4) Lanier 5245 MFD
(5) Lanier 5255 MFD
(6) Lanier 5265 MFD
(7) Lanier 5218 MFD
(8) Lanier 5222 MFD
(9) Lanier 5227 MFD
3. FULL COLOR COPIERS
(1) Lanier 5706 DC
(2) Lanier 5806 DC
(3) Lanier 5710 DC
<PAGE>
APPENDIX B
MAJOR SPECIFICATIONS
MODEL LANIER 5706/ 5806/ 5806E
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Specification Model: Iris Model: Lilac AD Model: Lilac ED
Lanier 5706 Lanier 5806 Lanier 5806E
---------------------- --------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
Configuration Desk Top Desk Top Desk Top
----------------------------------------------------------------------------------------------------------------
Process Dry Electrostatic Dry Electrostatic Dry Electrostatic
Transfer System Transfer System Transfer System
----------------------------------------------------------------------------------------------------------------
Resolution (Copy) 400dpi/ 8bit 400dpi/ 8bit 400dpi/ 8bit
----------------------------------------------------------------------------------------------------------------
Resolution (Print) 4,800x600dpi/ 8bit 4,800x600dpi/8bit 4,800x600dpi/ 8bit
With smoothing With smoothing With smoothing
----------------------------------------------------------------------------------------------------------------
Grey scale 256 gradations 256 gradations 256 gradations
----------------------------------------------------------------------------------------------------------------
Originals Sheets/Books/Objects Sheets/Books/Objects Sheets/Books/Objects
----------------------------------------------------------------------------------------------------------------
Original Size Max.A3(11"x17") Max.A3(11"x17") Max.A3(11"x17")
----------------------------------------------------------------------------------------------------------------
Copy Paper Size
Paper Tray Max.A3 Max.A3 Max.A3
Min A5 (lengthwise) Min.A5 (lengthwise) Min.A5 (lengthwise)
Bypass Tray Max.12"x18"(305x457+0) Max.12"x18"(305x457+0) Max12"x18"(305x457+0)
Min.A6 (100 _ 140+0) Min.A6 (100_140+0) Min.A6 (100_140+0)
(lengthwise) (lengthwise) (lengthwise)
----------------------------------------------------------------------------------------------------------------
Paper Latitude 52-160g/+u(17-42lb) 52-160g/+u(14-42lb) 52-160g/+u(17-42lb)
----------------------------------------------------------------------------------------------------------------
Copy speed (IC) 21cpm 28cpm 28cpm
(FC) 6cpm 6cpm 6cmp
----------------------------------------------------------------------------------------------------------------
1st copy speed (BW) 8 sec. 8 sec. 8 sec.
(FC) 22.4 sec. 22.4 sec. 22.4 sec.
----------------------------------------------------------------------------------------------------------------
Warm Up Time Less than 7 min. Less than 7 min. Less than 7 min.
----------------------------------------------------------------------------------------------------------------
Paper supply (std.) 500+50shts 50shts 50shts
(max) 2,050shts 1,550shts 1,550,shts
----------------------------------------------------------------------------------------------------------------
Magnifications 7R5E+2 7R5E+2 7R5E+2
----------------------------------------------------------------------------------------------------------------
Zoom 25-400% 25-400% 25-400%
----------------------------------------------------------------------------------------------------------------
Power source 120V/60Hz(US) 120V/60Hz(US) 120V/60Hz(US)
220-240V/50-60Hz(EU) 220-240V/50-60Hz(EU) 220-240V/50-60Hz(EU)
----------------------------------------------------------------------------------------------------------------
Dimensions 620x680x602 mm 620x757x602 mm 620x757x602 mm
----------------------------------------------------------------------------------------------------------------
Weight Less than 105kg Less than 108kg Less than 108kg
----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
APPENDIX B
MAJOR SPECIFICATIONS
MODEL: LANIER 5710/5710E
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
Specification Model: Cattleya AD Model: Cattleya ED
Lanier 5710 Lanier 5710E
------------------- ------------------------ --------------------------
<S> <C> <C>
Configuration Console Console
---------------------------------------------------------------------------
Process Dry Elecrostatic Dry Elecrostatic
Transfer System Transfer System
---------------------------------------------------------------------------
Resolution (Copy) 600dpi/ 8bit 600dpi/ 8bit
---------------------------------------------------------------------------
Resolution (Print) 4,800x600dpi/ 8bit 4,800x600dpi/ 8bit
With smoothing With smoothing
---------------------------------------------------------------------------
Grey scale 256 gradations 256 gradations
---------------------------------------------------------------------------
Originals Sheets/Books/Objects Sheets/Books/Objects
---------------------------------------------------------------------------
Original Size Max.A3(11"x"17) Max.A3(11"x"17)
---------------------------------------------------------------------------
Copy Paper Size
Paper Tray Max.A3 Max.A3
Min.A5 (lengthwise) Min.A5 (lengthwise)
Bypass Tray Max.13"x19" (330x483+0) Max.13"x19" (330x483+0)
Min.A6 (100-140+0) Min.A6 (100-140+0)
(lengthwise) (lengthwise)
---------------------------------------------------------------------------
Paper Latitude 64-256g/+u (17-67lb.) 64-256g/+u(17-67lb.)
---------------------------------------------------------------------------
Copy speed (1C) 40cpm 40cpm
(FC) 10cpm 10cpm
---------------------------------------------------------------------------
1st copy speed (BW) 8 sec. 8 sec
(FC) 16.5 sec. 16.5 sec.
---------------------------------------------------------------------------
Warm Up Time Less than 8.5 min. Less than 8.5 min.
---------------------------------------------------------------------------
Paper Supply (std.) 1,550shts 1,550shts
(max) 3,050shts 3,050shts
---------------------------------------------------------------------------
Magnifications 7R+5E+2U 7R+5E+2U
---------------------------------------------------------------------------
Zoom 25-400% 25-400%
---------------------------------------------------------------------------
Power source 120V/60Hz(US) 120V/60Hz(US)
220-240V/50-60Hz(EU) 220-240V/50-60Hz(EU)
---------------------------------------------------------------------------
Dimensions 730x770x980 mm 730x770x980 mm
---------------------------------------------------------------------------
Weight Less than 240kg Less than 240kg
---------------------------------------------------------------------------
</TABLE>
<PAGE>
APPENDIX B
MAJOR SPECIFICATIONS
MODEL: LANIER 5218
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
Specifications Model: Lanier 5218
---------------------------- -------------------------------------------------------------------
<S> <C>
1. Copier function
--------------------------------------------------------------------------------------------------
Multicopy speed 18 cpm
--------------------------------------------------------------------------------------------------
Resolution 600 x 600 dpi
--------------------------------------------------------------------------------------------------
Gray scale Scanning: 256 level Marking: Binary
--------------------------------------------------------------------------------------------------
First Copy Speed Less than 6.5 sec.
--------------------------------------------------------------------------------------------------
Paper sizes Max. 11" x 17" or A3
--------------------------------------------------------------------------------------------------
Paper input capacity 250sheets x 1tray. 100sheets bypass tray
--------------------------------------------------------------------------------------------------
Duplex No
--------------------------------------------------------------------------------------------------
Options
--------------------------------------------------------------------------------------------------
ADF DF68: 50sheets, 15cpm
--------------------------------------------------------------------------------------------------
Paper bank PS400: 500 x 1tray, PS410: 500 x 2tray
--------------------------------------------------------------------------------------------------
1 Bin Tray PT180
--------------------------------------------------------------------------------------------------
2. Printer function (option)
--------------------------------------------------------------------------------------------------
a) Main controller board
--------------------------------------------------------------------------------------------------
Continuous print speed 18pm
--------------------------------------------------------------------------------------------------
Resolution 600dpi
Printer language PCL6 (PCL 5e+ PCL XL), PCL5e
--------------------------------------------------------------------------------------------------
Interface Parallel IEEE1284/ECP
--------------------------------------------------------------------------------------------------
Memory RAM: 16MB (Upgradable to Max 80MB)
Fonts 1 true type fonts, 46 intellifonts
--------------------------------------------------------------------------------------------------
b) PostScript Kit
--------------------------------------------------------------------------------------------------
Printer language Adobe PostScript level 3
--------------------------------------------------------------------------------------------------
Fonts 136 Postscript fonts
--------------------------------------------------------------------------------------------------
c) NIC Ethernet
--------------------------------------------------------------------------------------------------
Topology 100 base TX/10-Base T
--------------------------------------------------------------------------------------------------
Protocol TCP/IP, IPX/SPX, Apple Talk, NetBEUI
--------------------------------------------------------------------------------------------------
d) Printer HDD
Capacity 1.6 GB
--------------------------------------------------------------------------------------------------
3 Fax function (option)
--------------------------------------------------------------------------------------------------
Compatibility ITU-T(CCITT) G3, G4 (Option)
--------------------------------------------------------------------------------------------------
Resolution 8x3.85/7.7 200x100/200dpi(std.) option: 8/16x 15.4 l/mm. 400x400dpi
--------------------------------------------------------------------------------------------------
Compression Method MH, MR, MMR, JBIG (option)
--------------------------------------------------------------------------------------------------
SAF memory 2MB (op: total 32 MB-28MB for SAF, 4MB for page memory)
--------------------------------------------------------------------------------------------------
Page memory 4MB
--------------------------------------------------------------------------------------------------
memory Backup 1 hour
--------------------------------------------------------------------------------------------------
Quick Dial 32 numbers
--------------------------------------------------------------------------------------------------
Speed Dial 100 numbers (up to 1000 numbers option)
--------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
APPENDIX C
(Currency Rick Sharing Rule)
Ricoh and Lacier mutually agree the following rule to share the risk of currency
exchange rate's fluctuation.
[For North and Latin America Region]
1. FOB prices are not fluctuated, but fixed for 6 months EXCEPT in the
unusual case as explained in Clause 7.
2. FOB Prices Periodical Review Months: FOB prices shall be reviewed and
decided every 6 months in
(1) January and (2) July
3. When Ricoh offers a new model to Lanier, FOB prices shall be derided
according to then effective Center Rate (the latest Center Rate) during
the 6 months period.
4. New Center Rate (= New Actual Exchange Rate):
(1) Oct 16th-Jan 15th AVE JP Y/US$ TTB Rate by Bank of
Tokyo-Mitsubishi in Japan.
(2) Apr 16th-July 15th AVE JP Y/US$ TTB Rate by Bank of
Tokyo-Mitsubishi in Japan.
These New Rates shall be effective an the 1st day of the following
month until the end of the next review month unless the rate is changed
during the period due to the unusual case described is Clause 7.
5. FOB Prices Adjustment Formula for the next 6 Months:
New FOB = Currently Effective FOB x
[1 + ((Current Center Rate - New Center Rate) / 2)
---------------------------------------------
Current Center Rate]
|
|
+--> FOB Adjustment Ratio
<PAGE>
6. Applicable Timing of New FOB:
Such adjusted new FOB shall be effective from FEB & AUG Monthly
Purchase Order by Lanier respectively, and it shall be effective until
the next regular review month.
--------------------------------------------------------------------------------
Review Applicable Term
month
--------------------------------------------------------------------------------
JAN From APR production to be firmed (from forecasted) on
FEB 5th till SEP production to be firmed (from
forecasted) on JUL 7th
--------------------------------------------------------------------------------
JUL From OCT production to be firmed (from forecasted) on
AUG 5th till MAR production to be firmed (from
forecasted) on Jan 7th
--------------------------------------------------------------------------------
7. Adjustment in Unusual Case:
(1) If actual average rate from 16th day of any month to the 15th day
of the following month during the 6 months period is upped or
downed by 10% or more than Current Center Rate (A), the actual
average rate of the month shall be considered as New Center Rate
(B).
In other words, FOB shall be decided according to the same
adjustment formula at that time, even if it is not in a regular
review month.
(2) Such new FOB adjusted as unusual case shall not be fluctuated but
effective from the next month's Monthly Purchase Order until the
end of the next regular review month (JAN or JUL), New Center
Rate (B) is this case shall be also effective until JAN or JUL.
(3) But if actual average rate from 16th day of any month to the 15th
day of the following month during the same 6 months period is
fluctuated again 10% or more than (B), New Center Rate (B) is
changed again, and FOB is changed again accordingly. Such 2nd
changed FOB and Latest (newest) Center Rate (C) shall be
effective until the end of the next regular review month.
(4) Latest (newest) Center Rate (C) shall be used in the next regular
review month to calculate the new FOB for the following 6 months
period.
<PAGE>
(Example)
REGULAR REVIEW MONTH JUL/99
TERM AUG/99-JAN/00 (= OCT/99 production - MAR/00 production)
FOB JAPAN $ 10,000
CURRENT CENTER RATE $1 = Yen 100(A)
IF AVE RATE BETWEEN AUG 16 - SEP 15 $ 1 = Yen 112 (B)
*CLAUSE 7-(1) UNUSUAL CASE 1 + [(100 - 112) / 2] / 100 = 0.94
NEW FOB $10,000 x 0.94 = $9,400
*CLAUSE 7-1(1)&(2) (effective from DEC/99 production until MAR/00 production)
IF AVE RATE IN BETWEEN $1 = Yen 115 (not unusual case v.s. Yen 112(B))
SEP 16-OCT 15TH No pricing change $9,400
IF AVE RATE IN OCT 16-JAN 15 $1 = Yen 108
(= REGULAR REVIEW MONTH) 1 + [(112-108) / 2] / 112 = 1.0178571
*CLAUSE 7-(4) $9,400 x 1.0178571 = $9,568
(effective from APR/00 production until SEP/00 production)
<PAGE>
APPENDIX C
(Currency Risk Sharing Rule)
[For Western Europe Region]
1. FOB prices are not fluctuated, but fixed for 6 months EXCEPT in the
unusual case as explained in Clause 7.
2. FOB Prices Periodical Review Months: FOB prices shall be reviewed and
decided every 6 months in
(1) January and (2) July
3. When Ricoh offers a new model to Lanier, FOB prices shall be decided
according to then effective Center Rate (the latest Center Rate) during
the 6 months period.
4. New Center Rate (= New Actual Exchange Rate):
(1) Oct 16th-Jan 15th AVE JP Yen/DFL TTB Rate by Bank of
Tokyo-Mitsubishi in Japan. (DFL shall be used to calculate the
Center Rate for the entire Western Europe)
(2) Apr 16th-Jul 15th AVE JP Yen/US$ TTB Rate by Beak of
Tokyo-Mitsubishi in Japan, (DFL shall be used to calculate the
Center Rate for the entire Western Europe)
These New Rates shall be effective on the 1st day of the
following month until the end of the next review month unless the
rate is changed during the period due to the unusual case
described in Clause 7.
5. FOB Prices Adjustment Formula for the next 6 Months:
New FOB = Currently Effective FOB x
[1 + ((Current Center Rate - New Center Rate) / 2)
---------------------------------------------
Current Center Rate]
|
|
+--> FOB Adjustment Ratio
<PAGE>
6. Applicable Timing of New FOB:
Such adjusted new FOB shall be effective from JUN & DEC Monthly
Purchase Order by Lanier respectively, and it shall be effective until
the next regular review month.
--------------------------------------------------------------------------------
Review Applicable Term
month
--------------------------------------------------------------------------------
JAN From APR production to be firmed (from forecasted) on
FEB 3rd till SEP production to be firmed (from
forecasted) on JUL 3rd
--------------------------------------------------------------------------------
JUL From OCT production to be firmed (from forecasted) on
AUG 3rd till MAR production to be firmed (from
forecasted) on Jan 3rd
--------------------------------------------------------------------------------
7. Adjustment in Unusual Case:
(5) If actual average rate from 16th day of any month to the 15th day
of the following month during the 6 months period is upped or
downed by 10% of more than Current Center Rate (A), the actual
average rate of the month shall be considered as New Center Rate
(B).
In other words, FOB shall be derided according to the same
adjustment formula at that time, even if it is not in a regular
review month.
(6) Such new FOB adjusted as unusual case shall not be fluctuated but
effective from the next month's Monthly Purchase Order until the
end of the next regular review month (FEB or AUG). New Center
Rate (B) in this case shall be also effective until JAN or JULY.
(7) But if actual average rate from 16th day of any month to the 15th
day of the following month during the same 6 month period is
fluctuated again 10% or more than (B), Near Center Rate (B) is
changed again, and FOB is changed again accordingly. Such 2nd
changed FOB and Latest (newest) Center Rate (C) shall be
effective until the end of the next regular review month.
(8) Latest (newest) Center Rate (C) shall be used in the next regular
review month to calculate the new FOB for the following 6 months
period.
<PAGE>
(Example)
REGULAR REVIEW MONTH Jul/99
TERM Aug/99-Jan/00 (= Oct/99 production - Mar/00 production)
FOB JAPAN DFL 10,000
CURRENT CENTER RATE DFL1=Yen 65 (A)
IF AVE RATE BETWEEN AUG 15 AND SEP 15 DFL1 = Yen 73 (B)
*CLAUSE 7-(1) UNUSUAL CASE 1+[(65-73) / 2] / 65= 0.9384615
NEW FOB DFL10,000 x 0.9384615 = DFL9,385
*CLAUSE 7-(1)&(2) (effective from DEC/99 production until APR/00 production)
IF AVE RATE BETWEEN SEP16 DFL1 = Yen 76 (not unusual case v.s. Yen 73 (B))
AND OCT15 No pricing change DFL9,385
IF AVE RATE BETWEEN OCT16 AND JAN15 DFL1 = Yen 69
(= REGULAR REVIEW MONTH) 1+[(73-69) / 2] / 73 = 1.0273973
*CLAUSE 7-(4) DFL9,385 x 1.0273973 = DFL9,642
(effective from APR/00 production
until SEP/00 production)
<PAGE>
"Appendix D--Annual Minimum Purchase Quantity"
<TABLE>
<CAPTION>
--------------------------------------------------------------------------
1999
------------------------------------------------
Model Region Minimum Units Period
------------ -------- ----------------- ----------------------------
<S> <C> <C> <C>
Fax 7570 USA 2,400 99/1 - 99/12
--------------------------------------------------------------------------
America 1,500 (1,200) 99/1 - 99/6 (99/7 - 99/12)
Lanier 5020 Europe 2,400 (1,900) 99/1 - 99/6 (99/7 - 99/12)
(Adam)
Australia 140 (100) 99/1 - 99/6 (99/7 - 99/12)
--------------------------------------------------------------------------
America 2,400 99/1 - 99/12
Lanier 5025 Europe 2,400 99/1 - 99/12
(Adam-E)
Australia 200 99/1 - 99/12
--------------------------------------------------------------------------
America 600 99/1 - 99/12
Lanier 5265 Europe 540 99/1 - 99/12
(SP 5)
Australia 60 99/1 - 99/12
--------------------------------------------------------------------------
America 1,440 99/1 - 99/12
Lanier 5235 Europe 1,260 99/1 - 99/12
(NAD30)
Australia 180 99/1 - 99/12
--------------------------------------------------------------------------
America 980 99/1 - 99/12
Lanier 5246 Europe 840 99/1 - 99/12
(NAD40)
Australia 120 99/1 - 99/12
--------------------------------------------------------------------------
America 900 99/1 - 99/12
Lanier 5255 Europe 810 99/1 - 99/12
(SP5L)
Australia 90 99/1 - 99/12
--------------------------------------------------------------------------
America 1,200 99/7 - 99/12
Lanier 5218 Europe 1,800 99/7 - 99/12
(Stinger)
Australia 150 99/7 - 99/12
--------------------------------------------------------------------------
America 200 99/11 - 99/12
Lanier 5222 Europe 320 99/11 - 99/12
(Russian)
Australia 20 99/11 - 99/12
--------------------------------------------------------------------------
America 200 99/11 - 99/12
Lanier 5227 Europe 320 99/11 - 99/12
(Russian)
Australia 20 99/11 - 99/12
--------------------------------------------------------------------------
America 750 99/4 - 99/12
Lanier 5706 Europe 540 99/4 - 99/12
(Iris)
Australia 99/4 - 99/12
--------------------------------------------------------------------------
America 300 99/6 - 99/12
Lanier 5806 Europe 280 99/6 - 99/12
(Lilac)
Australia 99/6 - 99/12
--------------------------------------------------------------------------
America 180 99/7 - 99/12
Lanier 5710 Europe 99/7 - 99/12
(Cattleya)
Australia 99/7 - 99/12
--------------------------------------------------------------------------
America 11,880 99/1 - 99/12
Copier Europe 13,410 99/1 - 99/12
Total
Australia 1,080 99/1 - 99/12
-----------------------------------------------------------
G. total 28,320 99/1 - 99/12
--------------------------------------------------------------------------
</TABLE>
<PAGE>
APPENDIX FOR LANIER 5218 JULY 16, 1999
APPENDIX E
CONSUMABLE PARTS WARRANTY
Vendor warrants that, except for the parts listed below, all parts originally
incorporated in or attached to the Lanier 5218 will be free from defects in
material and workmanship for 36,000 outputs.
There are no consumable parts covered by the warranty on the Lanier 5218 model.
<PAGE>
APPENDIX FOR LANIER 5218 JULY 16, 1999
APPENDIX F
WARRANTY COMPENSATION FEE
1. The cost of warranty for the parts originally incorporated in or attached
to the machine, except for the Toner / Photo-conductor Cartridge, is as
follows:
<TABLE>
<CAPTION>
------------------------------------------------------------------------
Model Warranty Fee
------------------------------------------------------------------------
<S> <C>
Lanier 5218 US $ 2.70
------------------------------------------------------------------------
Euro 2.40
------------------------------------------------------------------------
JPN Yen 290
------------------------------------------------------------------------
</TABLE>
Note: The cost mentioned above includes the cost for warranty for all
accessories listed below.
o DF68
o PS400
o PS410
o PT180
o Printer Controller T-185
o PS3 Kit T-185
2. The cost of warranty with respect to the TONER/PHOTO-CONDUCTOR
CARTRIDGE (G755-55) sold separately by Vendor to Lanier for use in the
above model is;
<TABLE>
<S> <C>
US $ 0.40
--------------------
Euro 0.30
--------------------
JPN Yen 50
</TABLE>
1
<PAGE>
WARRANTY EXHIBIT FOR IRIS/LILAC JULY 6, 1999
APPENDIX E
CONSUMABLE PARTS WARRANTY
Vendor warrants that, except for the parts listed below, all parts originally
incorporated in or attached to the LANIER 5706/5806 will be free from any
defects in material and workmanship for 68,000 developments (5706), 113,000
DEVELOPMENTS (5806/5806E) with respect to parts NOT listed below.
For Lanier 5706/5806/5806E
<TABLE>
<CAPTION>
-------------------------------------------------------------------------
Item Part Number Description Developments
---- ----------- ------------------------------------- ------------
<S> <C> <C> <C>
1 A2591680 Filter: Scanner: 15N 34,000
-------------------------------------------------------------------------
2 A2593565 Lubricant Bar. Drum Cleaning 34,000
-------------------------------------------------------------------------
3 AD041058 Drum Cleaning Brush 34,000
-------------------------------------------------------------------------
4 A2591082 Filter: Around The photoconductor 34,000
-------------------------------------------------------------------------
5 A2596741 Belt Cleaning Blade 34,000
-------------------------------------------------------------------------
6 A2596050 Transfer Belt 34,004
-------------------------------------------------------------------------
7 AA012092 Dust Filter 34,000
-------------------------------------------------------------------------
8 A2594080 Oil Supply Pad 34,000
-------------------------------------------------------------------------
9 A2594144 Pressure Roller Pad (EU/ Asia only) 34,000
-------------------------------------------------------------------------
10 AE010025 Hot Roller 34,000
-------------------------------------------------------------------------
11 A2596255 Paper Transfer 34,000
-------------------------------------------------------------------------
12 A2596225 Paper Transfer Roller Blade 34,000
-------------------------------------------------------------------------
13 A2596231 Corona Wire: Paper Separation 34,000
-------------------------------------------------------------------------
<CAPTION>
For Lanier 5806/5806E
-------------------------------------------------------------------------
Item Part Number Description Developments
---- ----------- ------------------------------------- ------------
<S> <C> <C> <C>
1 AX520036 Halogen Lamp: 65V 128W: FROST 68,000
-------------------------------------------------------------------------
2 AD020083 PPC Charge Wire 68,000
-------------------------------------------------------------------------
3 AD042036 Drum Cleaning Brush 68,000
-------------------------------------------------------------------------
4 AD020081 Corona Wire: Charge Corona 68,000
-------------------------------------------------------------------------
5 AD020082 Grid: Charge Corona 68,000
-------------------------------------------------------------------------
6 A2596715 Belt Cleaning Brush 68,000
-------------------------------------------------------------------------
7 A2596745 Lubricant Bar 68,000
-------------------------------------------------------------------------
8 AE041002 Hot Roller Blade 68,000
-------------------------------------------------------------------------
9 AE041005 Pressure Roller Blade (EU/Asia only) 68,000
-------------------------------------------------------------------------
10 AE020085 Pressure Roller 68,000
-------------------------------------------------------------------------
11 AF031032 Paper Feed Roller 34,000
-------------------------------------------------------------------------
12 AF032037 Separation Roller 34,000
-------------------------------------------------------------------------
<CAPTION>
For the photoconductor
-------------------------------------------------------------------------
Item Part Number Description Developments
---- ----------- ------------------------------------- ------------
<S> <C> <C> <C>
1 A2599510 OPC Drum 60,000
-------------------------------------------------------------------------
</TABLE>
<PAGE>
WARRANTY EXHIBIT FOR IRIS/LILAC JULY 6, 1999
APPENDIX F
WARRANTY COMPENSATION FEE
1. The cost of warranty for the parts originally incorporated or attached
to the machine, except for the photoconductor, is as follows:
<TABLE>
<CAPTION>
---------------------------------------
WARRANTY FEE
-----------------
MODEL US$ EURO JPY
---------------------------------------
<S> <C> <C> <C>
Lanier 5706 (A258) 5.50 4.40 590
---------------------------------------
Lanier 5806 (A259) 5.80 4.70 630
---------------------------------------
Lanier 5806E (A260) 5.80 4.70 630
---------------------------------------
</TABLE>
Note: The cost mentioned above includes the cost for warranty for all
accessories listed below.
o F-806 20 Bin finisher
o S-706 3 Bin sorter
o SS806-2
o SS806-3
o CI-806 AG/AH
o Platen Cover type 100
o H-806
o RADF-806
o ET-806
o SP-806 AG/AH
2. The cost of warranty with respect to the Photsconductor (Part Number
A2599510) sold separately by Vendor to Lanier for use In the above
model is US$ 0.30 or EURO 0.30 or YEN 40 per the photoconductor.
<PAGE>
WARRANTY EXHIBIT FOR CATTLEYA JULY 6, 1999
APPENDIX E
CONSUMABLE PARTS WARRANTY
Vendor warrants that, except for the parts listed below, all parts originally
incorporated in or attached to the LANIER 5710/ 5710E will be free from any
defects in material and workmanship for 333,000 developments with respect to
parts NOT listed below.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------
Item Part Number Description Developments
---- ----------- ------------------------------------- ------------
<S> <C> <C> <C>
1 A2573607 Lubricant Bar 45,000
-------------------------------------------------------------------------
2 AD020084 PPC Wire 45,000
-------------------------------------------------------------------------
3 AD041050 Cleaning Blade 45,000
-------------------------------------------------------------------------
4 AD042037 Cleaning Brush 45,000
-------------------------------------------------------------------------
5 A1727642 Wire Cleaner Pad 45,000
-------------------------------------------------------------------------
6 AD041060 Bias Roller Blade 45,000
-------------------------------------------------------------------------
7 AD020086 Charge Corona Wire 45,000
-------------------------------------------------------------------------
8 AD020085 Charge Corona Grid 45,000
-------------------------------------------------------------------------
9 A2576358 ITB Lubricant Brush 113,000
-------------------------------------------------------------------------
10 A2576350 ITB Cleaning Blade 113,000
-------------------------------------------------------------------------
11 A2576360 ITB Lubricant Bar 113,000
-------------------------------------------------------------------------
12 A2576050 Transfer Belt 45,000
-------------------------------------------------------------------------
13 AE010022 Hot Roller 45,000
-------------------------------------------------------------------------
14 A2574171 Hot Roller Oil Supply Pad 45,000
-------------------------------------------------------------------------
15 AE020083 Pressure Roller 90,000
-------------------------------------------------------------------------
16 AE030015 Hot Roller Bearing 90,000
-------------------------------------------------------------------------
17 AE030019 Pressure Roller Bearing 90,000
-------------------------------------------------------------------------
18 AE043011 Hot Roller Blade 90,000
-------------------------------------------------------------------------
19 A2574187 Pressure Roller Blade 90,000
-------------------------------------------------------------------------
20 A2574191 Pressure Roller Oil Supply Pad 90,000
-------------------------------------------------------------------------
21 A2576271 Paper Transfer Belt 113,000
-------------------------------------------------------------------------
22 A2576205 PTB Cleaning Blade 113,000
-------------------------------------------------------------------------
23 A2576202 PTB Cleaning Brush 113,000
-------------------------------------------------------------------------
24 AD020087 Belt Discharge Wire 113,000
-------------------------------------------------------------------------
25 AD020086 PTB Separation Corona Wire 113,000
-------------------------------------------------------------------------
26 A2576264 PTB Back Brush 113,000
-------------------------------------------------------------------------
27 AF030025 Paper Pick Up Roller 225,000
-------------------------------------------------------------------------
28 AF031026 Paper Feed Roller 225,000
-------------------------------------------------------------------------
29 AF032027 Separation Roller 225,000
-------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------
Item Part Number Description Developments
---- ----------- ------------------------------------- ------------
<S> <C> <C> <C>
30 A2574967 Paper Feed Separation Roller 225,000
-------------------------------------------------------------------------
31 AF031032 Paper Feed Roller 225,000
-------------------------------------------------------------------------
32 AF013003 Duplex Bottom Plate Pad 225,040
-------------------------------------------------------------------------
33 AA012108 Revolver Filter 45,000
-------------------------------------------------------------------------
34 A2572478 Charge Corona Filter 45,000
-------------------------------------------------------------------------
35 AA012107 Exhaust Dust Filter 45,000
-------------------------------------------------------------------------
36 AA010106 Fusing Unit Filter 45,000
-------------------------------------------------------------------------
37 A5481482 Transport Belt 45,000
-------------------------------------------------------------------------
38 A5481276 Friction Belt 45,000
-------------------------------------------------------------------------
39 A5481271 Separation Roller 45,000
-------------------------------------------------------------------------
40 AF031021 Feed Roller 85,000
-------------------------------------------------------------------------
41 AF032021 Separation Roller 85,000
-------------------------------------------------------------------------
42 AF030021 Pick Up Roller 85,000
-------------------------------------------------------------------------
<CAPTION>
For the photoconductor
-------------------------------------------------------------------------
Item Part Number Description Developments
---- ----------- ------------------------------------- ------------
<S> <C> <C> <C>
1 A2579510 OPC Drum 60,000
-------------------------------------------------------------------------
</TABLE>
<PAGE>
WARRANTY EXHIBIT FOR CATTLEYA JULY 6, 1999
APPENDIX F
WARRANTY COMPENSATION FEE
1. The cost of warranty for the parts originally incorporated or attached
to the machine, except for the photoconductor, is as follows:
<TABLE>
<CAPTION>
------------------------------------------
WARRANTY FEE
--------------------
MODEL US$ EURO JPY
------------------------------------------
<S> <C> <C> <C>
Lanier 5710 (A257) 13.90 12.30 1650
------------------------------------------
Lanier 5710E (A269) 13.90 12.30 1650
------------------------------------------
</TABLE>
Note: The cost mentioned above includes the cost for warranty for all
accessories listed below.
o RADF-806
o F-810
o SP-806AG
o H-806
o LOC-545 AG
o LCT Adapter Type A
o Platen Cover Type 100
o ET-806
o CI-810AG
2. The cost of warranty with respect to the Photoconductor (Part Number
A2579510) sold separately, by Vendor to Lanier for use in the above
model is US$0.50 or EURO 0.40 or YEN 60 per the photoconductor.
