EXHIBIT 10.1
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DISTRIBUTION AGREEMENT
THIS DISTRIBUTION AGREEMENT, effective as of March 18, 2003 (the "Effective
Date"), is between KODAK POLYCHROME GRAPHICS LLC, a Delaware limited liability
company with its principal place of business at ▇▇▇ ▇▇▇▇▇▇▇ ▇, ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
("KPG"), and PRESSTEK, INC. with its principal place of business at ▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ ("PRESSTEK").
ARTICLE 1 - DEFINITIONS. For the purpose of this Agreement, the following words
and phrases shall have the meaning set forth below:
1.1 "Agreement" means this document, together with all attached exhibits as
are set out in Article 1.7. Such attached exhibits are incorporated
herein by reference and made a part of this document.
1.2 "Specifications" means the detailed technical specifications for the
Equipment set forth in Exhibit A and for the Media set forth in Exhibit
B, including but not limited to Product specifications, performance
requirements, packaging specifications, and quality control procedures.
The Specifications also include such changes, modifications or
amendments to Exhibit A and Exhibit B as may be made from time to time
by the Parties through Engineering Change procedures.
1.3 "Product or Products" means the Equipment, the OEM Media and/or the MD
Media.
1.4 "Engineering Change" means any mechanical or material change to a
Product, including changes originating with PRESSTEK or KPG, which
change would affect the safety, performance, cost, reliability,
serviceability, appearance, dimensions, tolerances, materials
(including source of supply), composition, packaging, or ▇▇▇▇ of
material (including substitution of materials) of such Product.
1.5 "Party" means KPG or PRESSTEK; "Parties" means KPG and PRESSTEK.
1.6 "Exhibit" means the following Exhibits attached to this Agreement and
incorporated herein by reference:
Exhibit A- Equipment Specifications
Exhibit B- Media Specifications
Exhibit C- Prices
Exhibit D- Service Parts Supply and Price Schedule
Exhibit E- Quality Assurance Plan
Exhibit F- [CONFIDENTIAL TREATMENT REQUESTED] /*/ Performance
[CONFIDENTIAL TREATMENT REQUESTED] /*/
Exhibit G- Media Performance Incentives
Exhibit H- Presstek Logo Design
1.7 "Territory" means [CONFIDENTIAL TREATMENT REQUESTED] /*/ and
[CONFIDENTIAL TREATMENT REQUESTED] /*/ and such other countries as may
be mutually agreed between the Parties in writing.
1.8 "OEM Press" means the Ryobi OEM 3404 DI Printing Press and options sold
by PRESSTEK during the Term of this Agreement, including without
limitation press equipment meeting the Specifications set forth in
Exhibit A and conforming to the configurations for such equipment
described on Exhibit A The definition of OEM Press may be expanded to
include additional products upon mutual agreement of the Parties,
subject to Section 2.8 of this Agreement.
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AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
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1.9 "Equipment" means the OEM Press, and all service parts described in
Exhibit D. The definition of Equipment may be expanded to include
additional products upon mutual agreement of the Parties, subject to
Section 2.8 of this Agreement.
1.10 "Media" means [CONFIDENTIAL TREATMENT REQUESTED] /*/ Media and
[CONFIDENTIAL TREATMENT REQUESTED] /*/ Media and includes media that
meets the Specifications set forth in Exhibit B and conforms to the
configurations for such media described on Exhibit B.
1.11 "[CONFIDENTIAL TREATMENT REQUESTED] /*/ Media" means the PEARLdry media
sold for use in presses sold by [CONFIDENTIAL TREATMENT REQUESTED] /*/
and media sold for use with the [CONFIDENTIAL TREATMENT REQUESTED] /*/
press, and specifically excludes any PEARLdry media manufactured or
sold by PRESSTEK for use in other direct imaging presses, such as,
[CONFIDENTIAL TREATMENT REQUESTED] /*/, and/or [CONFIDENTIAL TREATMENT
REQUESTED] /*/ or future [CONFIDENTIAL TREATMENT REQUESTED] /*/
platforms. [CONFIDENTIAL TREATMENT REQUESTED] /*/ Media" also includes,
with similar limitation, media that meets the Specifications set forth
in Exhibit B and conforms to the configurations for such media
described on Exhibit B.
1.12 "[CONFIDENTIAL TREATMENT REQUESTED] /*/ Media" means all PEARLdry media
sold for use with direct imaging press equipment manufactured and/or
sold by PRESSTEK, including any PEARLdry media manufactured or sold by
PRESSTEK for use in [CONFIDENTIAL TREATMENT REQUESTED] /*/ and
distributed in the Territory.
ARTICLE 2 - SCOPE AND PURPOSE
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2.1 This Agreement states the terms and conditions under which PRESSTEK
will sell Products to KPG for resale and distribution by KPG under
either PRESSTEK's or KPG's brand in the Territory. KPG will resell and
distribute only Presstek-approved Media for use in the OEM Press.
PRESSTEK will furnish all labor, expertise, skills, materials,
supplies, training, equipment and other things necessary to perform
fully and to KPG's commercially reasonable satisfaction the manufacture
of Products as requested by KPG under this Agreement. KPG will be
responsible for the distribution of the Product and, when authorized in
accordance with the terms of this Agreement, the MD Media, including
facilitating all sales, leases or other methods or means of conveyance
to customers, all installation of the Equipment at, and delivery of the
OEM Media and the MD Media (when authorized in accordance with the
terms of this Agreement) to, customer sites, to the commercially
reasonable satisfaction of PRESSTEK. KPG or its designee shall be
responsible for service and/or maintenance of the Equipment (except as
otherwise specifically set forth herein) and KPG or its designee will
maintain an adequate supply of Media and service parts to adequately
meet customer demand, the amount of such adequate supply to be at KPG's
sole and reasonable discretion.
2.2 The Equipment to be supplied pursuant to this Agreement shall be
co-branded and shall carry the KPG name and logo in primary position,
with the PRESSTEK DI logo (as such logo appears in Exhibit H) . The
format and placement in which the KPG name and PRESSTEK DI logo shall
be applied to the Equipment shall be mutually agreed by the Parties.
Any changes in the manner of application of the KPG name or PRESSTEK DI
logo shall be subject to written agreement between the Parties.
(a) Marks. KPG hereby grants to PRESSTEK a non-exclusive,
non-transferable, royalty-free, worldwide license to use the
KPG name, trademarks and logos in connection with PRESSTEK's
advertising and promotion of the distribution relationship
contemplated by this Agreement. PRESSTEK hereby grants to KPG
a non-exclusive, non-transferable,
royalty-free, worldwide license to use PRESSTEK's trademarks
and logos in connection with the identification,
advertisement, marketing and distribution of the Product.
(b) In all materials where a party's trademark is used, the
ownership of the ▇▇▇▇ shall be indicated by placing the
appropriate notice as follows: "[trademark name] is a
trademark of [PRESSTEK/KODAK POLYCHROME GRAPHICS]." The
following are exclusive
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AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
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trademarks of PRESSTEK: DI, Direct Imaging, ProFire, PEARLdry
and FirePower. Neither party will file, or authorize another
party to file, any application for registration in any country
of any ▇▇▇▇, logo, symbol or phrase which is identical to,
similar to or likely to be confused with any of the other
party's trademarks, tradenames or logos. Each party agrees to
report to the other party any known uses by third parties of
marks or trade or product names similar to the marks and trade
and product names of the other party. Each party agrees to
render all reasonable assistance (at the other party's option
and cost) in enforcing or obtaining protection of the rights
of the other party, and acknowledges that the other party
shall have the sole right to bring a legal action or suit for
infringement thereof.
(c) No Trademark/Tradename Usage. Except as provided in this
Subsection 2.2, nothing in this Agreement shall authorize KPG
or PRESSTEK to use any trademark and/or trade name of the
other Party without the prior written consent of the other
Party. Any and all promotional materials used by a Party in
the promotion, marketing and sale of products pursuant to this
Agreement bearing a trademark of the other Party shall be
subject to review and approval by the other Party as to the
form and content of such use, such approval not to be
unreasonably withheld, conditioned or delayed. All rights and
goodwill in the trademarks of either Party accruing as a
result of the use of such trademark by the other Party in any
country shall inure to the benefit of the Party owning the
trademark, and the other Party shall acquire no rights in any
such ▇▇▇▇ by virtue of such use pursuant to this Agreement.
2.3 KPG's rights to sell or otherwise distribute the Products shall be
limited to the Territory. KPG shall not advertise, sell, solicit sales,
or distribute or otherwise attempt to distribute the Products outside
of the Territory. KPG's failure to comply with this Article 2.3 will
constitute a material breach of the Agreement.
2.4 This Agreement does not in any way limit KPG's rights with respect to
the manufacture, distribution or sale of any goods similar to the
Products, including the right to manufacture products or to have such
products manufactured by others for KPG. PRESSTEK may terminate this
Agreement if KPG sells, or designates, endorses, approves, certifies as
compatible or authorizes to be sold or used on the OEM Press, media
other than OEM Media for use with the OEM Press in the Territory
without PRESSTEK's prior agreement.
2.5 Provided that KPG meets the KPG Minimum Purchase Requirements as set
out in Article 17.2, KPG shall have the exclusive right to distribute,
sell and service Equipment in the Territory. PRESSTEK shall not
distribute, sell or service Equipment in the Territory except through
KPG during such time that KPG has the exclusive right to distribute,
sell and service Equipment in the Territory.
2.6 During the Term of this Agreement, KPG shall have the exclusive right
to sell OEM Media in the Territory for use with the [CONFIDENTIAL
TREATMENT REQUESTED] /*/ press or for use with units of OEM Presses
sold by KPG. PRESSTEK shall not sell or distribute OEM Media in the
Territory for use with units of OEM Presses sold by [CONFIDENTIAL
TREATMENT REQUESTED] /*/ or by KPG during the term of this Agreement.
PRESSTEK may terminate this Agreement if KPG sells, or designates,
endorses, approves, certifies as compatible or authorizes to be sold or
used on the OEM Press, media other than OEM Media for use with the OEM
Press in the Territory without PRESSTEK's prior agreement.
2.7 Should KPG meet the requirements set out in Exhibit G, KPG shall have
the exclusive right (subject to existing arrangements to be terminated
by PRESSTEK as soon as possible) to distribute and sell MD Media in the
Territory, at prices, and subject to terms, further set out in Exhibit
G.
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AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
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2.8 KPG shall have a right of first refusal to co-develop and/or purchase
and distribute all platforms of direct imaging press sold by PRESSTEK,
or which PRESSTEK has the right to sell, during the Term of this
Agreement (the "New Equipment") PROVIDED that KPG (a) has achieved and
continues to achieve the minimum [CONFIDENTIAL TREATMENT REQUESTED] /*/
Performance [CONFIDENTIAL TREATMENT REQUESTED] /*/ (as set out in
Exhibit F); and (b) is not in material breach of this Agreement and has
not otherwise been in material breach of this Agreement that was not
cured within applicable cure periods, where the breach was curable
(items (a) and (b)are collectively referred to as "New Equipment
Conditions"). During the Term of this Agreement, PRESSTEK shall not
offer to sell or sell New Equipment to any other party on prices and
terms more favorable than the prices and terms offered by PRESSTEK to
KPG, provided that KPG has met the New Equipment Conditions, and
provided that, after having been offered the right of first refusal
described in this Article 2.8, KPG has agreed to co-develop and/or
purchase and distribute the particular New Equipment. If, upon having
been offered the right of first refusal described in this Article 2.8,
KPG decides that it will not agree to co-develop and/or purchase and
distribute such New Equipment, PRESSTEK shall have no obligations to
KPG regarding the New Equipment, except for its obligation not to offer
to sell or sell New Equipment to any other party on prices and terms
more favorable than the prices and terms offered to KPG.
ARTICLE 3-QUANTITY
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3.1 KPG agrees to order Product in accordance with purchase orders
submitted to PRESSTEK in accordance with Article 4 and PRESSTEK agrees
to manufacture, supply and deliver Product in accordance with the terms
of this Agreement.
3.2 During the Term of this Agreement, KPG agrees to purchase Product from
PRESSTEK provided the following conditions are met:
3.2.1 PRESSTEK has the capacity to supply Products to KPG in the
quantities ordered by KPG on the Delivery Dates specified by
KPG to the extent that those orders and Delivery Dates
specified by KPG comply with the terms of this Agreement; and
3.2.2 The quality of the Products manufactured by PRESSTEK meets the
Specifications set forth in Exhibit A and Exhibit B.
Nothing in this Agreement shall require KPG to purchase any quantity of
Products, except as set forth in Article 4.
3.3 During the Term of this Agreement, PRESSTEK agrees to supply Products
to KPG in quantities as provided in the [CONFIDENTIAL TREATMENT
REQUESTED] /*/ month rolling forecast. If PRESSTEK cannot meet capacity
requirements as described in the [CONFIDENTIAL TREATMENT REQUESTED] /*/
month rolling forecast (for each of the [CONFIDENTIAL TREATMENT
REQUESTED] /*/ months), PRESSTEK shall notify KPG within [CONFIDENTIAL
TREATMENT REQUESTED] /*/ days after receipt of the issuance of the
rolling forecast as to what capacity can be supplied.
ARTICLE 4- INITIAL ORDER; ORDERING PROCEDURES; PERFORMANCE REVIEW
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4.1 (a) Initial Order. Within [CONFIDENTIAL TREATMENT REQUESTED] /*/ days
after the execution of this Agreement, KPG shall submit a purchase
order for an initial order of [CONFIDENTIAL TREATMENT REQUESTED] /*/
units of OEM Presses at the Exhibit C transfer price and one (1)
demonstration unit for U.S. $[CONFIDENTIAL TREATMENT REQUESTED] /*/,
all with Delivery
Dates during the [CONFIDENTIAL TREATMENT REQUESTED] /*/ quarter of
200[CONFIDENTIAL TREATMENT REQUESTED] /*/ (the "Initial Order"). The
Initial Order will be a firm, noncancelable order. Concurrent with
placing the Initial Order, KPG will provide PRESSTEK with a
[CONFIDENTIAL TREATMENT REQUESTED] /*/-month non-binding forecast.
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AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
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(b) Subsequent Orders. By the [CONFIDENTIAL TREATMENT REQUESTED] /*/
day of each month during the Term of this Agreement, KPG will provide
the following:
(i) A purchase order for OEM Presses with Shipping Dates
[CONFIDENTIAL TREATMENT REQUESTED] /*/ months hence (for
example and by way of illustration: by January [CONFIDENTIAL
TREATMENT REQUESTED] /*/, KPG will submit a purchase order for
OEM Presses to be shipped by the end of [CONFIDENTIAL
TREATMENT REQUESTED] /*/; by February [CONFIDENTIAL TREATMENT
REQUESTED] /*/, KPG will submit a purchase order for OEM
Presses to be shipped by the end of [CONFIDENTIAL TREATMENT
REQUESTED] /*/; etc.)
(ii) An updated [CONFIDENTIAL TREATMENT REQUESTED] /*/-month
rolling forecast.
Where there is a conflict between the number of units of OEM Presses
projected in the [CONFIDENTIAL TREATMENT REQUESTED] /*/-month forecast
and the number of units for which purchase orders have already been
submitted, the number of units of OEM Presses in such purchase orders
shall govern.
(c) Material Breach. KPG's failure to perform any or all of the
following will constitute a material breach of this Agreement on the
part of KPG and PRESSTEK shall have reserved all rights to pursue any
and all legal remedies available for such breach subject to the terms
hereof:
(i) beginning on [CONFIDENTIAL TREATMENT REQUESTED] /*/, failing
to provide a purchase order for any OEM Presses for
[CONFIDENTIAL TREATMENT REQUESTED] /*/ months; or
(ii) beginning on [CONFIDENTIAL TREATMENT REQUESTED] /*/, failing
to order more than [CONFIDENTIAL TREATMENT REQUESTED] /*/
units of OEM Presses for any [CONFIDENTIAL TREATMENT
REQUESTED] /*/ consecutive months or failing to order more
than [CONFIDENTIAL TREATMENT REQUESTED] /*/ units of OEM
Presses during any Calendar Quarter. For purposes of this
Article 4.1 (c) (ii), a Calendar Quarter means any of the
following three-month periods that occur within a calendar
year: January, February and March; April, May and June; July,
August and September; and October, November and December.
Provided that KPG meets the requirements set forth in this paragraph,
PRESSTEK shall make OEM Presses available for shipment in accordance
with the forecast, but in any event with no longer than [CONFIDENTIAL
TREATMENT REQUESTED] /*/ days lead time from order to shipment provided
that KPG'S purchase orders comply with the terms of this Agreement.
4.2 Provided that KPG submits a purchase order that complies with the terms
of this Agreement, KPG shall place orders for Media by purchase order,
and PRESSTEK shall make Media available for delivery with no longer
than [CONFIDENTIAL TREATMENT REQUESTED] /*/ days lead time from order
to delivery provided that those purchase orders comply with the terms
of this Agreement.
4.3 KPG shall have no liability for the manufacturing capital equipment
investments made by PRESSTEK during the term of this Agreement.
PRESSTEK agrees to fill all such orders as may be placed by KPG to the
extent that those orders comply with the terms of this Agreement.
4.4 If PRESSTEK does not receive the [CONFIDENTIAL TREATMENT REQUESTED] /*/
rolling forecast by the [CONFIDENTIAL TREATMENT REQUESTED] /*/ of the
month, the preceding forecast shall remain in effect with [CONFIDENTIAL
TREATMENT REQUESTED] /*/ rolling into the fixed, [CONFIDENTIAL
TREATMENT REQUESTED] /*/-day period.
4.5 KPG shall order Products through purchase orders.
4.6 PRESSTEK agrees to accept telecopied (fax) or e-mail orders for Product
provided that the telecopied (fax) or email orders for Product comply
with the terms of this Agreement. KPG will use its best efforts to send
an e-mail order by the [CONFIDENTIAL TREATMENT REQUESTED] /*/ of each
month and a confirming, written fax within [CONFIDENTIAL TREATMENT
REQUESTED] /*/ weeks with a typed copy of the purchase order, including
all information described in Section 4.7 and any special instructions
or other terms and conditions. Under no circumstances is PRESSTEK to
ship Products without the issuance of a purchase order number by KPG.
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AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
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4.7 The information on the purchase order will include the purchase order
number, part number and description of Products purchased, quantity
purchased, routing instructions, delivery schedule, destination, and
confirmation of price.
4.8 Different or additional terms and conditions of KPG's purchase orders
that conflict with any of the provisions of this Agreement shall not
apply unless accepted in writing by PRESSTEK. Different or additional
terms that appear on PRESSTEK's acknowledgment form that conflict with
any of the provisions of this Agreement shall not apply unless accepted
in writing by KPG.
4.9 PRESSTEK shall only accept purchase orders that originate from the
following facility:
Tech Services International LLC ("TSI")
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4.10 The Parties will conduct quarterly and annual purchasing performance
reviews, starting after the first year of the Term of this Agreement.
The Parties will meet no later than the end of the [CONFIDENTIAL
TREATMENT REQUESTED] /*/ quarter of [CONFIDENTIAL TREATMENT REQUESTED]
/*/ and no later than the end of the third quarter of each year of the
Term thereafter to set market-based purchasing goals for the following
year. If KPG achieves the purchasing goals agreed to by the Parties,
this Agreement will automatically renew for [CONFIDENTIAL TREATMENT
REQUESTED] /*/, pursuant to Section 17.1. If the Parties cannot agree
on a purchasing goal for the following year, then the Agreement will
terminate at the end of the then current period. If it appears by the
end of the third quarter of any year that KPG will fail to achieve the
purchasing goal for any such year, then the Parties will negotiate in
good faith extending the Agreement on terms and with purchasing goals
acceptable to both Parties. If, by the end of such year, the Parties do
not agree in writing to extend the Agreement for an additional year,
the Agreement shall automatically terminate at the end of such year.
ARTICLE 5 - PRICES
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5.1 The prices that PRESSTEK will charge and KPG will pay for Equipment and
Media presently available from PRESSTEK under this Agreement are set
forth in Exhibit C. Included in these prices are all components
necessary to produce each style of Product ordered, including all
labeling, labor and packaging material in accordance with the
Specifications set forth in Exhibit A and Exhibit B.
5.2 Pricing for Equipment and Media will include shipping as set out in
Article 7.2.
5.3 The prices set forth in Exhibit C may not be increased during the
initial [CONFIDENTIAL TREATMENT REQUESTED] /*/ of the Term of this
Agreement. The parties will negotiate in good faith price adjustments
thereafter.
5.4 PRESSTEK agrees that the prices and terms of sale offered to KPG for
the Products hereunder will, throughout the Term of this Agreement, be
[CONFIDENTIAL TREATMENT REQUESTED] /*/ than the prices and terms that
are offered by PRESSTEK to [CONFIDENTIAL TREATMENT REQUESTED] /*/,
including by way of example (but not limited to) [CONFIDENTIAL
TREATMENT REQUESTED] /*/ volumes of product over [CONFIDENTIAL
TREATMENT REQUESTED] /*/, involving [CONFIDENTIAL TREATMENT REQUESTED]
/*/, and pursuant to [CONFIDENTIAL
TREATMENT REQUESTED] /*/ terms and conditions, including [CONFIDENTIAL
TREATMENT REQUESTED] /*/.
ARTICLE 6 - LABELING AND PACKAGING
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AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
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6.1 PRESSTEK shall affix to all Products KPG labels, including trademarks
or trade names of KPG, serial numbers, type or model number, or any
other designation, as may from time to time reasonably be designated by
KPG.
6.2 Labeling and packaging of Products shall be done in accordance with the
Specifications. PRESSTEK agrees, at its own expense, to provide labor,
materials and facilities required to provide such labeling and
packaging.
ARTICLE 7- DELIVERY
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7.1 PRESSTEK will take any and all commercially reasonable efforts,
including commercially reasonable necessary legal action, to ensure the
performance of the delivery terms of PRESSTEK's contract with OEM Press
manufacturer Ryobi. KPG's purchase order shall state the date(s)
Products are to be cleared through U.S. Customs and available for
receipt by KPG's designated carrier (the "Delivery Date"). TIME AND
RATE OF DELIVERY ARE OF THE ESSENCE FOR ALL PURCHASE ORDERS ISSUED
UNDER THIS AGREEMENT. It shall be considered a material breach of this
Agreement for PRESSTEK to repeatedly fail to deliver Products in
accordance with the above delivery schedule.
7.2 The terms of sale for the OEM Presses will be [CONFIDENTIAL TREATMENT
REQUESTED] /*/. The shipping terms for the OEM Presses will be
[CONFIDENTIAL TREATMENT REQUESTED] /*/. The shipping terms and terms of
sales for all other Products will be [CONFIDENTIAL TREATMENT REQUESTED]
/*/.
7.3 PRESSTEK and KPG will develop an integrated direct order and
fulfillment process for Media. KPG will be responsible for invoicing,
warehousing, fulfillment and collection in relation to Media.
ARTICLE 8 - INSPECTION
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8.1 PRESSTEK or its designee shall inspect each shipment of the Product
before delivery to confirm and certify in writing that the Products
meet the Specifications set forth in Exhibit A and Exhibit B.
8.2 KPG may inspect the Products within [CONFIDENTIAL TREATMENT
REQUESTED] /*/ after receipt at KPG`s location to the same incoming
test or inspection criteria as provided by PRESSTEK in the
Specifications and/or KPG may perform source inspection and quality
assurance audits in nonproprietary areas at PRESSTEK's facilities upon
reasonable notice from KPG provided, however, that such inspections by
KPG shall in no way relieve PRESSTEK of its obligation to deliver
Products that conform to the Specifications or waive KPG's right of
inspection and acceptance (or rejection) at KPG's location EXCEPT,
however, where KPG conducts such inspections and approves a Product,
such Product will be deemed to comply with the Specifications and will
have been accepted by KPG.
ARTICLE 9- PAYMENT TERMS
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9.1 Invoices for Products shall be issued on the date of Product shipment.
Invoices shall refer to KPG's purchase order number, part number and
Product description, quantity, unit price and total invoice price. All
payments for Media shall be due and made in U.S. Dollars within
[CONFIDENTIAL TREATMENT REQUESTED] /*/ from date of invoice, provided
KPG has also received a correct and conforming invoice. All payments
for OEM Presses shall be due and made in U.S. Dollars within
[CONFIDENTIAL TREATMENT REQUESTED] /*/ from date of invoice, provided
KPG has also received a correct and conforming invoice.
9.2 Invoices shall be submitted to the following address:
Tech Services International LLC
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AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
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Attention: Accounts Payable
Fax Number: To be provided
9.3 KPG shall submit payments to PRESSTEK at the following address:
Presstek, Inc.
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FAX Number: To be provided
Attn: Accounts Receivable
9.4 Credits due to rejection of Products or discrepancies on paid invoices
will be deducted from subsequent payments by means of a debit memo.
ARTICLE 10 - ON-SITE MONITORING
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10.1 Upon reasonable notice to PRESSTEK, KPG and its representatives reserve
the right to audit non-proprietary procedures, processes, process
controls, equipment, Products and inspection records at any stage in
the manufacture of the Products to be delivered hereunder, in order to
determine the extent of compliance with the Specifications of this
Agreement.
10.2 Audits will include, but not necessarily be limited to the following
areas:
10.2.1 System Review: To determine the adequacy of PRESSTEK's written
quality assurance policies and operating procedures.
10.2.2 Practice Review: To determine PRESSTEK's effectiveness in
complying with PRESSTEK's established Quality Assurance
procedures set forth in Exhibit E.
10.2.3 Product Verification: To determine PRESSTEK's quality
effectiveness by performing and witnessing sufficient
inspections and tests, reviewing the record of inspections and
tests in PRESSTEK's facility or after delivery of Product.
ARTICLE 11 - QUALITY WARRANTY
----------------
11.1 PRESSTEK shall use commercially reasonable efforts to perform all work
under this Agreement in a manner consistent with the highest standards
of the industry and will strictly comply with all relevant statutes,
ordinances, rules, regulations and other applicable law.
11.2 PRESSTEK warrants that the Equipment will meet the appropriate safety
and EMI standards as set out in the Specifications. Where the Products
are modified at the request of PRESSTEK, PRESSTEK shall obtain, at no
cost to KPG, any required regulatory agency re-approvals for the
Products when they are modified. Where the Products are modified at the
request of KPG, PRESSTEK shall obtain, at KPG's cost, any required
regulatory agency re-approvals for the Products when they are modified.
At no additional cost to KPG, PRESSTEK shall cause the Equipment to
comply with UL.
8
11.3 PRESSTEK warrants that the Equipment will be free from defects in
manufacture, materials or workmanship and will conform to the
Specifications for a period of (a) [CONFIDENTIAL TREATMENT REQUESTED]
/*/ from the date of installation; or (but not longer than) (b)
[CONFIDENTIAL TREATMENT REQUESTED] /*/ from the date of shipment of
Equipment from PRESSTEK to KPG. PRESSTEK warrants that the Media will
be free from defects in manufacture, materials or workmanship and will
conform to the Specifications for a period of [CONFIDENTIAL TREATMENT
REQUESTED] /*/ from the date of shipment of Media from PRESSTEK.
PRESSTEK will certify and ensure the connectivity between the Equipment
and [CONFIDENTIAL TREATMENT REQUESTED] /*/, as set out in the
Specifications.
11.4 EXCEPT AS STATED IN ARTICLE 11.3, THERE ARE NO WARRANTIES, EXPRESS OR
IMPLIED, EXTENDED BY PRESSTEK TO KPG WITH RESPECT TO EQUIPMENT OR
MEDIA. PRESSTEK DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE.
11.5 If KPG reasonably determines that any Product or component thereof
fails to meet the foregoing warranty, such nonconforming Product or
component may be returned to PRESSTEK for credit, repair or
replacement, with PRESSTEK bearing all costs of transportation and risk
of loss both ways. PRESSTEK's return authorization will be obtained
prior to return of nonconforming Products or components. PRESSTEK shall
have the unilateral right to either replacement of such nonconforming
Product or components or to credit KPG, and such replacement or credit
shall be made by PRESSTEK within [CONFIDENTIAL TREATMENT REQUESTED] /*/
after receipt of the nonconforming Product or components by PRESSTEK.
11.6 PRESSTEK agrees that all Product determined to be nonconforming and
returned to PRESSTEK will not be resold by PRESSTEK to any person,
firm, or corporation provided, however, that KPG may consent to the
disposition of separate components of the Products, which consent shall
not be unreasonably withheld. All references to KPG shall be removed or
obliterated from any such Product.
11.7 KPG agrees to notify PRESSTEK promptly upon discovering any Epidemic
Failures. "Epidemic failure" shall mean (a) as to OEM Press, that at
least [CONFIDENTIAL TREATMENT REQUESTED] /*/ of the total units of OEM
Press installed at end user locations fail to operate in a fundamental
respect so as to cause the OEM Press to perform in a manner whereby the
OEM Press is unable to meet its reasonably expected performance for the
same reason, and (b) as to Media, that at least [CONFIDENTIAL TREATMENT
REQUESTED] /*/ of the total square meters of Media delivered to end
users during any [CONFIDENTIAL TREATMENT REQUESTED] /*/ period fail to
perform in a material respect for the same reason, and, as to either
OEM Press or Media, such failure has not occurred as the result of
events or circumstances that are beyond PRESSTEK's control. PRESSTEK
shall promptly perform an investigation of the Epidemic Failure, and
shall respond to KPG's notice within [CONFIDENTIAL TREATMENT REQUESTED]
/*/, or such longer period as PRESSTEK advises KPG is necessary to
evaluate the Epidemic Failure and establish a corrective action plan.
Upon KPG's receipt of PRESSTEK's response, PRESSTEK agrees to discuss
with KPG in good faith the details of such corrective action plan,
including but not limited to (a) the remedy (e.g., PRESSTEK's supply to
KPG of retrofit parts), (b) and the time-schedule for implementation
thereof. The obligations of PRESSTEK under this paragraph shall survive
the termination of this Agreement. In any event, and without limiting
the foregoing, PRESSTEK shall make available to KPG on such terms as
are generally offered to PRESSTEK's other customers for similar
products, given cost variances, any modification kits, retrofits or
other assistance being furnished by PRESSTEK to assist such customers
in correcting
epidemic or other failures in any such products, or in complying with
federal or state laws applicable to any such products.
ARTICLE 12- SPECIFICATIONS CHANGE
---------------------
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
9
12.1 KPG may from time to time request PRESSTEK to make an Engineering
Change to the Specifications of a Product. PRESSTEK will consider any
such request, and will also advise KPG of the proposed implementation
date and costs of such Engineering Change. If the Engineering Change is
agreed upon, PRESSTEK shall perform all such KPG requested Engineering
Changes to the Specifications upon written approval by KPG's contract
manufacturing representative that it wishes to proceed with the
Engineering Change to the Specification, and KPG will solely be
responsible for all such costs associated with the Engineering Changes
to the Specifications.
12.2 The Specifications may only be amended by mutual agreement of the
Parties. Product changes that have a material adverse affect on
customer usage of Products or that affect the form, fit or function of
the Products may only be made by PRESSTEK with KPG's prior written
approval. KPG shall respond to all requests for approval within
[CONFIDENTIAL TREATMENT REQUESTED] /*/. Other Product changes may be
made without KPG's prior written approval, provided that PRESSTEK shall
give KPG [CONFIDENTIAL TREATMENT REQUESTED] /*/ prior written notice.
ARTICLE 13- CONFIDENTIAL INFORMATION
------------------------
13.1 As used in this Agreement, "Confidential Information" means any
information, not generally known to the public, about the way a Party
develops, manufactures, processes, produces or sells Products, or about
the way a Party does business in the markets for those Products.
Confidential Information includes without limitation:
13.1.1 the specific provisions and contents of this Agreement;
13.1.2 the design, appearance, characteristics and function of the
Products;
13.1.3 the identities of customers, and all information concerning
the shipments made to or ordered for those customers;
13.1.4 any technical, trade secret, commercial or financial
information about a Party's
(a) research or development;
(b) machinery, manufacturing processes, designs or
engineering;
(c) marketing plans or techniques, contacts or customers,
forecasts, production plans and purchase orders;
(d) organization or operations.
13.2 All Confidential Information is the property of the disclosing party.
The receiving party agrees that it will treat such information as
strictly confidential and not disclose to others or use such
information for its own benefit or the benefit of others. The receiving
party's obligations under this Article 14 do not, however, apply to any
information which:
13.2.1 is in the public domain at the time the receiving party learns
of it, or later becomes publicly known through no wrongful act
of the receiving party; or,
13.2.2 is known to the receiving party prior to the date of this
Agreement, as shown by the receiving party's written records,
and was not subject to prior confidentiality obligations with
the disclosing party; or,
13.2.3 is received by the receiving party from a third party who had
a lawful right to disclose it to the receiving party; or,
13.2.4 is used or disclosed by the receiving party with prior written
approval of the disclosing party.
ARTICLE 14 - MARKETING AND SALES SUPPORT; TRAINING
-------------------------------------
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
10
14.1 KPG will use a team of capital equipment specialists to sell the OEM
Presses.
14.2 Throughout the first year of the Term of this Agreement, PRESSTEK will
(a) dedicate a minimum of [CONFIDENTIAL TREATMENT REQUESTED] /*/
regional Technical Sales Consultants to support the Agreement;
(b) provide KPG with access to a demonstration facility and
adequate staffing, but excluding providing any Equipment, at a
location in the United States to be decided by PRESSTEK;
(c) supply sales samples as needed to support the KPG sales
process;
(d) provide a feeder system for leads to assist KPG's Database
Marketing Group in order to provide an adequate number of
qualified OEM Press sales leads to meet KPG's [CONFIDENTIAL
TREATMENT REQUESTED] /*/ PROVIDED, however, that PRESSTEK is
in no way obliged to assist KPG in meeting its [CONFIDENTIAL
TREATMENT REQUESTED] /*/.
Upon the completion of the first year of the Term of this Agreement,
KPG will dedicate a reasonable sales staff commensurate with meeting
the [CONFIDENTIAL TREATMENT REQUESTED] /*/ and KPG will establish a
demonstration facility reasonably acceptable to PRESSTEK and located in
the United States, which facility may be at a customer location. KPG
and PRESSTEK agree to work in good-faith to establish prices and terms
under which KPG, if it chooses, will lease space from PRESSTEK in a
demonstration facility provided by PRESSTEK, beyond the first year of
this Agreement.
14.3 PRESSTEK shall, at times and for a minimum number of participants as
PRESSTEK and KPG agree, provide, at no additional charge to KPG, sales,
marketing and applications training courses at PRESSTEK's designated
facility for KPG sales and training personnel, graphic systems
specialists, and marketing and applications professionals with respect
to the operation and marketing of the Products. PRESSTEK shall
[CONFIDENTIAL TREATMENT REQUESTED] /*/ of its personnel. Such training
will be designed to have KPG's personnel achieve the same level of
knowledge and competency as required by PRESSTEK as a prerequisite to
the training of its own personnel to sell its Products. The goal of
this training is to ensure that [CONFIDENTIAL TREATMENT REQUESTED] /*/.
The course will be provided in accordance with a mutually agreeable
schedule. PRESSTEK will supply complete training information as agreed
upon by the parties. KPG shall be given one electronic copy of such
training materials which it may copy and distribute. KPG shall be
responsible for training its resellers and customers. The party
requesting a change to a Product shall pay for any necessary
re-training.
14.4 PRESSTEK at its expense shall provide KPG with electronic versions of
PRESSTEK's current marketing brochures, ROI tools, sales lists, data
sheets, testimonials, articles and other marketing communications
materials, including all pictures, text and specifications in
electronic format that KPG can modify, so that KPG may create
customized sales and marketing materials for KPG and the affiliates of
KPG to use in the sales and marketing of the Products ("Marketing
Materials"). KPG may, in its discretion, use all Marketing Materials in
the form provided by PRESSTEK. However, if KPG elects to modify the
Marketing Materials, the look and color scheme of the modified
Marketing Materials will be exclusive to the KPG channel. KPG shall
send one set of the modified Marketing Materials to PRESSTEK in an
electronic version in a format that PRESSTEK can inspect, examine and
modify. PRESSTEK shall have [CONFIDENTIAL TREATMENT REQUESTED] /*/ from
the date of receipt to evaluate the modified Marketing Materials.
During such evaluation period, PRESSTEK may request that KPG revise the
modified Marketing Materials, and KPG and PRESSTEK shall in good faith
agree upon appropriate revisions. KPG is responsible for publication
costs of the Marketing Materials to its personnel and third parties.
PRESSTEK and KPG shall sign
off on final proofs prior to production of modified Marketing
Materials, and will collaborate to ensure high quality production
consistent with
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
11
that required for color critical products. PRESSTEK shall provide KPG
with reasonable assistance, at no additional cost, to modify the
Marketing Materials as provided in this Section 14.4.
ARTICLE 15 - PLANT SAFETY
------------
15.1 [CONFIDENTIAL TREATMENT REQUESTED] /*/ has represented that it has the
experience, expertise and resources necessary to manufacture the
Products safely, on time, and to [CONFIDENTIAL TREATMENT REQUESTED] /*/
reasonable satisfaction. [CONFIDENTIAL TREATMENT REQUESTED] /*/
understands that [CONFIDENTIAL TREATMENT REQUESTED] /*/ has relied on
that representation in choosing to do business with [CONFIDENTIAL
TREATMENT REQUESTED] /*/ and in making this Agreement.
15.2 [CONFIDENTIAL TREATMENT REQUESTED] /*/ is solely responsible for the
safe performance of all work, and for the safety of (1) all
[CONFIDENTIAL TREATMENT REQUESTED] /*/ employees, agents, or delegates,
(2) all employees, agents and delegates of [CONFIDENTIAL TREATMENT
REQUESTED] /*/'s subcontractors, and (3) for all people who may be
present at or in the vicinity of the [CONFIDENTIAL TREATMENT REQUESTED]
/*/ plant.
15.3 [CONFIDENTIAL TREATMENT REQUESTED] /*/ will strictly comply with all
applicable statutes, ordinances, rules, regulations and other
applicable law, and shall perform all work under this Agreement in a
manner consistent with the highest standards of the industry.
ARTICLE 16 - TERM
----
16.1 This Agreement shall be effective on the Effective Date and shall
continue in effect for [CONFIDENTIAL TREATMENT REQUESTED] /*/, unless
sooner terminated as provided herein. [CONFIDENTIAL TREATMENT
REQUESTED] /*/ in accordance with the performance review procedures set
forth in Section 4.10. The initial [CONFIDENTIAL TREATMENT REQUESTED]
/*/ of this Agreement, together with [CONFIDENTIAL TREATMENT REQUESTED]
/*/, shall be referred to in this Agreement as the "Term".
16.2 The delivery of Products by PRESSTEK to KPG or purchase orders issued
by KPG to PRESSTEK or any other activity which causes the performance
to extend beyond the expiration date of this Agreement is not an offer
or agreement to extend or renew this Agreement. Although both Parties
hope for an ongoing relationship, they understand that neither PRESSTEK
nor KPG is in any way obligated to renew or extend this Agreement,
except as set forth herein. Both Parties will plan accordingly.
ARTICLE 17 - TERMINATION
-----------
17.1 Either Party may terminate this Agreement during the initial term or
any renewal term upon written notice ("Notice of Breach"), sent
registered or certified mail, return receipt requested, in the event
the other Party fails to perform a material obligation under this
Agreement or otherwise is in breach of any of its material obligations
hereunder. Failure to perform or breach of a material obligation
includes, without limitation, (a) [CONFIDENTIAL TREATMENT REQUESTED]
/*/ or (b) [CONFIDENTIAL TREATMENT REQUESTED] /*/. Where such breach is
curable, the Party receiving such Notice of Breach shall have
[CONFIDENTIAL TREATMENT REQUESTED] /*/ from the date of receipt thereof
to cure the failure or breach. If the party receiving such Notice of
Breach does not cure the failure or breach within such cure period, the
Party claiming breach may [CONFIDENTIAL TREATMENT REQUESTED] /*/ by
sending written notice [CONFIDENTIAL TREATMENT REQUESTED] /*/, by
certified mail, return receipt requested. The issuance of a forecast
during the [CONFIDENTIAL TREATMENT REQUESTED] /*/ cure period does not
waive the Notice of Breach. Where the breach is
[CONFIDENTIAL TREATMENT REQUESTED] /*/ the non-breaching Party may
[CONFIDENTIAL TREATMENT REQUESTED] /*/ upon providing the Notice of
Breach, sent registered or certified mail, return receipt requested.
For purposes of clarity, [CONFIDENTIAL TREATMENT REQUESTED] /*/ where
[CONFIDENTIAL TREATMENT REQUESTED] /*/ fails to meet its obligations of
Article [CONFIDENTIAL TREATMENT REQUESTED] /*/; where [CONFIDENTIAL
TREATMENT REQUESTED] /*/ fails to meet its obligations under Article
[CONFIDENTIAL TREATMENT REQUESTED] /*/ or where either Party fails to
meet its obligations under Article [CONFIDENTIAL TREATMENT REQUESTED]
/*/).
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
12
17.2 PRESSTEK may terminate KPG's right to distribute OEM Presses under this
Agreement if: (a) [CONFIDENTIAL TREATMENT REQUESTED] /*/, or (b)
[CONFIDENTIAL TREATMENT REQUESTED] /*/, or (c) [CONFIDENTIAL TREATMENT
REQUESTED] /*/. If Presstek terminates KPG's rights to distribute OEM
Presses under this Agreement in accordance with this Article 17.2, KPG
shall [CONFIDENTIAL TREATMENT REQUESTED] /*/ to customers in the
Territory who have previously purchased OEM Presses from KPG.
17.3 KPG may terminate this Agreement immediately upon written notice to
PRESSTEK, if (a) [CONFIDENTIAL TREATMENT REQUESTED] /*/, (b)
[CONFIDENTIAL TREATMENT REQUESTED] /*/ or (c) [CONFIDENTIAL TREATMENT
REQUESTED] /*/.
17.4 PRESSTEK may terminate this Agreement immediately upon written notice
to KPG, if (a) [CONFIDENTIAL TREATMENT REQUESTED] /*/, (b)
[CONFIDENTIAL TREATMENT REQUESTED] /*/ or (c) [CONFIDENTIAL TREATMENT
REQUESTED] /*/.
ARTICLE 18 - [CONFIDENTIAL TREATMENT REQUESTED] /*/ LIABILITIES
-----------
18.1 EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN ARTICLE 21
(INDEMNIFICATION), [CONFIDENTIAL TREATMENT REQUESTED] /*/. This
exclusion applies regardless of whether such damages are sought based
on breach of warranty, breach of contract, negligence, strict liability
in tort, or any other legal theory. This exclusion does not apply to
claims for personal injury by a third party nor does it apply to claims
resulting from or in any way related to a material breach of this
Agreement.
ARTICLE 19 - WASTE MATERIAL
--------------
19.1 [CONFIDENTIAL TREATMENT REQUESTED] /*/ shall be responsible for the
final and proper disposal of all waste material generated in the
manufacture of the Products (herein "Waste Material").
19.2 [CONFIDENTIAL TREATMENT REQUESTED] /*/ represents and warrants that it
will properly package, label, store, transport, dispose of and
otherwise handle the Waste Material in accordance with all applicable
laws, ordinances and regulations and in accordance with sound
environmental practice.
19.3 Prior to the handling or disposal of Waste Material, [CONFIDENTIAL
TREATMENT REQUESTED] /*/ shall, at its sole cost and expense, apply for
and obtain all permits required by all applicable laws, ordinances and
regulations for the transportation, handling or disposal of Waste
Material and shall maintain the same for the duration of this Agreement
or subcontract the handling or disposal of Waste Material to a licensed
contractor who has complied with such laws, ordinances or regulations.
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
13
ARTICLE 20 - SERVICE SUPPORT; SERVICE PARTS; TRAINING
----------------------------------------
20.1 [CONFIDENTIAL TREATMENT REQUESTED] /*/ will deliver or ensure delivery
in a timely fashion of all service training (Equipment, Media and
workflow and front-end connectivity, integration and support and all
service documentation in such quantities and formats as may be
reasonably requested by [CONFIDENTIAL TREATMENT REQUESTED] /*/ will
provide [CONFIDENTIAL TREATMENT REQUESTED] /*/ with escalation
technical and field service support for the Equipment and Media as
described in Exhibit D. [CONFIDENTIAL TREATMENT REQUESTED] /*/ will
also supply to [CONFIDENTIAL TREATMENT REQUESTED] /*/ a list of all
workflow and related software that is compatible with the Equipment and
agree to make commercially reasonable efforts to solve connectivity
problems that may be encountered in placing the unit into a new
environment. If [CONFIDENTIAL TREATMENT REQUESTED] /*/ enters into a
direct contractual relationship for [CONFIDENTIAL TREATMENT REQUESTED]
/*/, escalation support will transfer to the original manufacturer.
20.2 [CONFIDENTIAL TREATMENT REQUESTED] /*/ agrees to sell to [CONFIDENTIAL
TREATMENT REQUESTED] /*/, and [CONFIDENTIAL TREATMENT REQUESTED] /*/
agrees to purchase from [CONFIDENTIAL TREATMENT REQUESTED] /*/, service
parts for the Products pursuant to the terms and conditions of Exhibit
D attached hereto.
20.3 [CONFIDENTIAL TREATMENT REQUESTED] /*/ is hereby authorized by
[CONFIDENTIAL TREATMENT REQUESTED] /*/ to offer service to
[CONFIDENTIAL TREATMENT REQUESTED] /*/ customers and any other
[CONFIDENTIAL TREATMENT REQUESTED] /*/ press in the field.
20.4 PRESSTEK shall provide at no additional charge to KPG [CONFIDENTIAL
TREATMENT REQUESTED] /*/ PRESSTEK's designated location for
[CONFIDENTIAL TREATMENT REQUESTED] /*/ of KPG and/or KPG's designee
with respect to the [CONFIDENTIAL TREATMENT REQUESTED] /*/. The
[CONFIDENTIAL TREATMENT REQUESTED] /*/ will be offered in courses of no
fewer than [CONFIDENTIAL TREATMENT REQUESTED] /*/ per class session.
PRESSTEK shall [CONFIDENTIAL TREATMENT REQUESTED] /*/. The
[CONFIDENTIAL TREATMENT REQUESTED] /*/ will be designed to have KPG's
[CONFIDENTIAL TREATMENT REQUESTED] /*/ achieve the same level of
knowledge and competency as required by [CONFIDENTIAL TREATMENT
REQUESTED] /*/ as a prerequisite to [CONFIDENTIAL TREATMENT REQUESTED]
/*/. The goal of this [CONFIDENTIAL TREATMENT REQUESTED] /*/ is to
ensure that KPG can effectively [CONFIDENTIAL TREATMENT REQUESTED] /*/
the Products in customer installations. The [CONFIDENTIAL TREATMENT
REQUESTED] /*/ will be provided in accordance with a mutually agreeable
schedule. [CONFIDENTIAL TREATMENT REQUESTED] /*/ shall be given one
copy of such [CONFIDENTIAL TREATMENT REQUESTED] /*/ in electronic
format which it may [CONFIDENTIAL TREATMENT REQUESTED] /*/.
[CONFIDENTIAL TREATMENT REQUESTED] /*/ shall be responsible for
[CONFIDENTIAL TREATMENT REQUESTED] /*/ its resellers and customers.
[CONFIDENTIAL TREATMENT REQUESTED] /*/ shall have reasonable access to
[CONFIDENTIAL TREATMENT REQUESTED] /*/ upon reasonable notice for the
purpose of [CONFIDENTIAL TREATMENT REQUESTED] /*/, at prices and terms
[CONFIDENTIAL TREATMENT REQUESTED] /*/.
ARTICLE 21 - INDEMNIFICATION
---------------
21.1 [CONFIDENTIAL TREATMENT REQUESTED] /*/ will indemnify, defend, and hold
harmless [CONFIDENTIAL TREATMENT REQUESTED] /*/ and its directors,
officers, agents, and employees
from any loss, claim, liability and expense (including reasonable
attorneys' fees and other expenses of litigation) with respect to
claims for sickness, bodily injury, personal injury, death, property
damage or loss as asserted by third parties where the claim is based in
whole or in any part on, or is in any way related to, any act or
omission attributable to [CONFIDENTIAL TREATMENT REQUESTED] /*/, its
agents, employees, or subcontractors, or in any way related to the work
performed or to be performed or the Products supplied under this
Agreement, or the possession or use of molds, except to the extent that
such claims are due solely and directly to the negligence of
[CONFIDENTIAL TREATMENT REQUESTED] /*/.
21.2 [CONFIDENTIAL TREATMENT REQUESTED] /*/ will indemnify, defend and hold
harmless [CONFIDENTIAL TREATMENT REQUESTED] /*/ and its directors,
officers, agents and employees from any loss, claim, liability and
expense (including reasonable attorneys' fees and other expenses of
litigation) with respect to claims for sickness, bodily injury,
personal injury, death, property damage or loss as asserted by third
parties where the claim is based in whole or in any part on, or is in
any way related to, any act or omission attributable to [CONFIDENTIAL
TREATMENT REQUESTED] /*/, its agents, employees, or subcontractors, or
in any way related to the work performed or to be performed or under
this Agreement, except to the extent that such claims are due solely
and directly to the negligence of [CONFIDENTIAL TREATMENT REQUESTED]
/*/.
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
14
21.3 Each party agrees, at its expense, to defend, indemnify and hold the
other party and its authorized resellers, customers and officers,
directors, employees and representatives harmless from any suit claim,
demand, cause of action or proceeding asserted by a third party against
any of the indemnities alleging the infringement or misappropriation of
such third party's intellectual property rights, where such
infringement arises solely from the action or omission of the
indemnifying party. Notwithstanding the foregoing, [CONFIDENTIAL
TREATMENT REQUESTED] /*/ shall, at its expense, defend, indemnify and
hold [CONFIDENTIAL TREATMENT REQUESTED] /*/ and its authorized
resellers, customers and officers, directors, employees and
representatives harmless from any suit, claim, demand, cause of action
or proceeding asserted by a third party against any of the
[CONFIDENTIAL TREATMENT REQUESTED] /*/ indemnities alleging that a
Product infringes or misappropriates such third party's patent or other
intellectual property rights (the "Claim"), provided that [CONFIDENTIAL
TREATMENT REQUESTED] /*/ is notified of the Claim by the KPG
indemnities within a reasonable time after the [CONFIDENTIAL TREATMENT
REQUESTED] /*/ indemnities learn(s) of it, is given all reasonable
assistance by the [CONFIDENTIAL TREATMENT REQUESTED] /*/ indemnities
necessary for [CONFIDENTIAL TREATMENT REQUESTED] /*/ to perform its
obligations in respect of the Claim and is given the sole right to
control the defense and settlement of the Claim.
ARTICLE 22 - PUBLIC DISCLOSURE
-----------------
22.1 KPG and PRESSTEK agree not to disclose the terms and conditions of this
Agreement, except as may be required by law or government regulations,
without written authorization of the other Party, for the term of this
Agreement.
ARTICLE 23 - FORCE MAJEURE
-------------
23.1 If the performance of this Agreement or of any obligation hereunder is
prevented, restricted or interfered with by reason of fire or
earthquake or other casualty or accident; inability to procure raw
materials, power or supplies, (for reasons other than PRESSTEK's
negligence or fault or failure to timely order); war or other violence;
any law, order, proclamation, regulation, ordinance, demand or
requirement of any government agency, court or intergovernmental body;
or any other act or condition whatsoever beyond the reasonable control
of the other Party, the Party so affected shall be excused from such
performance to the extent of such prevention, restriction or
interference provided, however, that PRESSTEK shall use its best
efforts to continue the supply of Products hereunder to the extent
commercially reasonable and remove such causes of nonperformance,
including but not limited to commercially reasonable efforts to obtain
new manufacturing sites or suppliers and allocate available goods on a
reasonable and fair basis, and PRESSTEK shall continue performance
hereunder with the utmost commercially reasonable dispatch whenever
such causes are removed. For purposes of clarity, any event that would
constitute a Force Majeure for PRESSTEK's suppliers would constitute a
Force Majeure for PRESSTEK.
23.2 If performance of this Agreement or of any obligation hereunder is
prevented, restricted or interfered with for any reason set forth in
this Article 24 and such prevention, restriction or interference lasts
for, or is expected to last for more than [CONFIDENTIAL TREATMENT
REQUESTED] /*/, the Party whose performance is not affected by the
force majuere condition shall have the option of being excused, without
further obligation, from performance of the Agreement or of any
obligation hereunder.
ARTICLE 24 - RELATIONSHIP OF PARTIES
-----------------------
24.1 No Party is an agent of any other Party and has no authority to bind
any other Party, transact any business in any other Party's name or on
its behalf, or make any promises or representations on behalf of any
other Party. Each Party makes this Agreement and will perform all of
its respective obligations
under this Agreement as an independent contractor, and no joint
venture, partnership or other relationship shall be created or implied
by this Agreement. During the term of this Agreement, if the
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
15
term "partnership", "partner" or "development partner" or the like is
used to describe the parties' relationship, KPG and PRESSTEK agree to
make it clear to third parties that these terms refer only to the
spirit of cooperation between them and neither describe, nor expressly
or implicitly create, the legal status of partners or joint venturers.
The employees and agents of each Party are NOT for any purpose the
employees or agents of the other Party and the other Party shall incur
no obligations or liabilities, express or implied, by reason of the
conduct of such employees or agents.
ARTICLE 25- NO ASSIGNMENT
-------------
25.1 Neither Party shall assign its rights or delegate its duties under this
Agreement without the other Party's prior written approval. Either
Party may terminate this Agreement upon: (A) the sale of all or
substantially all of the stock, if any, of the other Party; or (B) upon
the sale or transfer of the entire business or substantially all the
assets of the other Party, or (C) any change of control, including but
not limited to a merger, takeover, purchase or similar business
transaction undertaken or involved a competitor of the other Party
("Change of Control"), unless the Party has obtained the other Party's
prior written consent. An affiliate or subsidiary of either Party may
exercise such party's rights or perform such party's obligations under
this Agreement, provided that the Parties to this Agreement shall
remain liable for the performance of their obligations hereunder.
ARTICLE 26 - SURVIVAL
--------
26.1 The rights and obligations of the Parties hereto under Article 1
(DEFINITIONS); Article 11 (QUALITY WARRANTY); Article 13 (CONFIDENTIAL
INFORMATION); Article 18 (LIMITATION OF LIABILITIES); Article 21
(INDEMNIFICATION); Article 26 (SURVIVAL); and Article 27 (APPLICABLE
LAW(JURISDICTION)) shall survive any termination, cancellation or
expiration of this Agreement.
ARTICLE 27 - APPLICABLE LAW (JURISDICTION)
-----------------------------
27.1 This Agreement and any questions, claims, disputes or litigation
concerning or arising from this Agreement shall be governed by the laws
of the State of New York, without giving effect to the conflicts of
laws principles thereof. Each of the Parties submits to the
jurisdiction of any state or federal court sitting in New York, in any
action or proceeding arising out of or relating to this Agreement and
agrees that all claims in respect to the action or proceeding must be
heard and determined there, unless otherwise agreed in writing by the
parties.
ARTICLE 28 - PARAGRAPH HEADINGS
------------------
28.1 The title and headings of the various articles of this Agreement are
inserted for convenience of reference only and shall not be constructed
to affect the construction or interpretation of any of its provisions.
ARTICLE 29 - WAIVER
------
29.1 Any failure or delay by either Party in exercising any right or remedy
in one or many instances will not prohibit a Party from exercising it
at a later time or from exercising any other right or remedy.
ARTICLE 30 - NOTICES
-------
30.1 All notices which either Party hereto is required or may desire to give
hereunder shall be in writing and sent by first class mail, postage
prepaid, and addressed to the last known address of the Party to be
16
served therewith. Notice sent by registered mail, return receipt
requested shall be presumed to have been received. Any notice to be
given to KPG shall be addressed to:
TECH SERVICES INTERNATIONAL LLC
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Any notice to PRESSTEK shall be addressed to:
PRESSTEK, INC.
▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇▇▇▇▇▇▇
30.2 Any change in address shall be promptly communicated by either Party to
the other Party.
ARTICLE 31 - ENTIRE AGREEMENT
----------------
31.1 This Agreement and the attached exhibits supersede and terminate any
and all prior agreements, if any, whether written or oral between the
Parties with respect to the subject matter contained herein.
31.2 Each Party agrees that it has not relied on any representation,
warranty, or provisions not explicitly stated in this Agreement, and
that no oral statement has been made to either Party that in any way
trends to waive any of the terms or conditions of this Agreement. This
Agreement constitutes the final written expression of all terms of the
Agreement, and it is a complete and exclusive statement of those terms.
31.3 No part of this Agreement may be waived, modified, or supplemented in
any manner whatsoever (including a course of dealing or of performance
or usage of trade) except by a written instrument signed by duly
authorized officers of the Parties.
ARTICLE 32 - DISPUTE RESOLUTION
------------------
32.1 This Agreement is written in the English language. PRESSTEK and KPG
shall attempt to resolve all disputes in an amicable manner. If the
Parties are unable to do so, any dispute, controversy or claim arising
out of or related to this Agreement, or the breach or termination or
invalidity thereof, shall be settled by binding arbitration in
accordance with the Commercial Arbitration Rules of the American
Arbitration Association (excepting those Rules related to
arbitrability) that are in effect upon the effective date of this
Agreement. The place of arbitration shall be New York, NY, and the
arbitration proceedings shall be in English. The appropriate corporate
officers from each of the Parties shall discuss mediating the dispute
apart from any such arbitration.
ARTICLE 33 - JURY TRIAL WAIVER
-----------------
EACH PARTY IRREVOCABLY WAIVES ANY RIGHT TO A JURY TRIAL WITH RESPECT TO ANY
CLAIMS OR DISPUTES ARISING OUT OF THIS CONTRACT.
ARTICLE 34 - MISCELLANEOUS
-------------
17
34.1 Severability. In the event any provision of this Agreement is found to
be unenforceable, void, invalid, or to be unreasonable in scope, such
provision shall be modified to the extent necessary to make it
enforceable, and as so modified, this Agreement shall remain in full
force and effect.
34.2 Counterparts. This Agreement may be signed in counterparts, provided
each page of this Agreement is initialed, and each counterpart shall be
considered an original document.
The Parties have signed this Agreement on the day and year indicated below.
KODAK POLYCHROME GRAPHICS LLC PRESSTEK, INC.
("KPG") ("PRESSTEK")
By: /s/ Vic Stalam By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
---------------------------------- --------------------------------
Vic Stalam ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Vice President & Chief Marketing President & Chief Executive
and Business Development Officer Officer
18
EXHIBIT A
---------
EQUIPMENT SPECIFICATIONS
------------------------
TO BE COMPLETED AND AGREED UPON PRIOR TO THE EFFECTIVE DATE, WITH DETAIL THAT
ENABLES KPG TO DETERMINE WHETHER THE EQUIPMENT IS PERFORMING WITHIN
SPECIFICATION.
WORKFLOW PRODUCTS
DI-RIP V5.5R1A
DI-RIP - Based on Harlequin, the DI-rip is a Postscript language
interpreter and rasterizer. It Process virtually any input,
including PostScript, JPEG, DCS 2, EPS, TIFF 6 and TIFF/IT-P1. Input
and process PDF files directly - without prior conversion - to
heighten the efficiency of your workflow. The DI-rip interprets
color composite files directly, separating them into CMYK, RGB
and/or spot colors accurately and consistently - within a single job
or across multiple projects.
OPTIONAL PLUGINS
TRAPWORKS - TrapWorks option, formerly called EasyTrap, is an
automatic, object-based, in-RIP trapping solution for the DI-rip.
TrapWorks contains many enhancements that improve overall
performance including memory usage, PostScript Language ▇▇▇▇▇ ▇
▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇ recognition, small text protection, auto choke
super blacks and traps metallic & opaque inks.
DI-TOOLS
DI-WRITE - automates the conversion of 1-bit TIFF files into
Presstek DI-file format (tiff variant format). This unique tool
adjusts the file header information while maintaining bitmap image
integrity. Since many RIPs can produce 1-bit TIFF format files,
DI-write enables established workflows to integrate Presstek imaging
seamlessly.
DI-MERGE - Allows pre-press operators to combine multiple post-RIP
files into one, saving materials and time when outputting. Crop
post-RIP files, Position images and layouts of various sizes ,screen
rulings, and dot gain curves, to fill an entire image area.
Positioning with DI-merge is a fast and easy way to impose for
four-page direct imaging devices or pre-pare perfecting and
work-and-tumble jobs.
DI-VIEW - allows on-screen soft proofing of RIP'd files prior to
imaging. Your prepress operators can QC a job - checking for
possible errors in pre-flight, RIP interpretation, font usage, OPI
file swaps, screening, and trapping - resulting in less waste and
shorter time to completion.
19
DI-THUMBPRINT - generates thumbnail previews of selected jobs on
Presstek output devices,
for streamlining file management.
SEE BELOW FOR HARDWARE REQUIREMENTS
MINIMUM HARDWARE REQUIREMENTS FOR DI-RIP
o OS: Windows NT SERVER or Windows 2000 SERVER
(*Note: connection to Macintosh environment requires Server OS)
o CPU: Dual 1GHz Pentium III Processor
o Hard drive: 108GB Raid Level 0 (three 36GB hard drives)
o RAM: 1GB
o Network Card: 100base-T
o CD-ROM
o Floppy Drive
o 17" Monitor
MINIMUM HARDWARE REQUIREMENTS FOR DI-TOOLS ONLY
o OS: Windows NT Workstation or Windows 2000 Professional
(*Note: connection to Macintosh environment is not required
with DI-tools)
o CPU: Single 1GHz Pentium III Processor
o Hard drive: 36GB Ultra SCSI
o RAM: 1GB
o Network Card: 100base-T
o CD-ROM
o Floppy Drive
o 17" Monitor
NOTE: A five port 100 Base-T Ethernet Switch is required to connect all workflow
components
20
EXHIBIT B
---------
MEDIA SPECIFICATIONS
--------------------
TO BE COMPLETED AND AGREED UPON PRIOR TO THE EFFECTIVE DATE, WITH DETAIL THAT
ENABLES KPG TO DETERMINE WHETHER THE MEDIA IS PERFORMING WITHIN
SPECIFICATION. PRODUCT NAME: Presstek PEARLdry PLUS thermal laser media
- spooled product.
PRODUCT DESCRIPTION: Metalized polyester film with silicone coating.
PRODUCT APPLICATION: Plate material for Presstek DI enabled printing presses.
The material is spooled on steel cores that engage unwind and take-up mechanisms
integral to the press plate cylinder. The design allows a specific amount of
material to be advanced into imaging and printing position. A thermal laser
imaging system creates a latent image on the surface of the plate. A subsequent
cleaning step removes silicone in the imaged areas, creating an ink-receptive
printing master. Up to 20,000* copies can be produced from the printing master.
* Actual run length performance may vary.
PRODUCT SPECIFICATION:
------------------ --------------- --------------
OEM Media MD Media
------------------ --------------- --------------
Spool width 339.5mm 339.5mm
------------------ --------------- --------------
Spool Length 15.1m 19.5m
------------------ --------------- --------------
Images / Spool 28 35+
------------------ --------------- --------------
- CLEANING MEDIA (TOWEL) SPECIFICATIONS -
-----------------------------------------
PRODUCT NAME: PMT/P (Pre-Moistened Towels for Plate Cleaning)
PRODUCT DESCRIPTION: Cleaning media wound in a roll that is pre-moistened with a
cleaning agent
PRODUCT APPLICATION: On Presstek DI presses using the PEARLdry Plus thermal
laser media, a cleaning step is required post imaging and pre-printing. The
PMT/P cleaning media is used in one of the cleaning steps to prepare the
PEARLdry Plus plate for printing.
PRODUCT SPECIFICATION:
------------------ ------------------
OEM DI
------------------ ------------------
Roll width 340mm
------------------ ------------------
Roll Length 4.75m
------------------ ------------------
Uses / Roll 150
------------------ ------------------
21
EXHIBIT C
---------
PRICES
------
EQUIPMENT:
------------------------------------------------------------------------------------------------------------------------
FRONT END KPG PART # PRESSTEK PART # SALE PRICE TO KPG MSLP
------------------------------------------------------------------------------------------------------------------------
Presstek DI Server AAG01801 [CONFIDENTIAL [CONFIDENTIAL
TREATMENT REQUESTED] TREATMENT
/*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
Presstek DI-rip [CONFIDENTIAL [CONFIDENTIAL
TREATMENT REQUESTED] TREATMENT
/*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
Presstek DI-tools AYY01421 [CONFIDENTIAL [CONFIDENTIAL
TREATMENT REQUESTED] TREATMENT
/*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
▇▇▇▇ plus ProofReady Plug-in (Epson AFS00021 [CONFIDENTIAL [CONFIDENTIAL
3000) TREATMENT REQUESTED] TREATMENT
/*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
▇▇▇▇ plus ProofReady Plug-in (Epson AFS00031 [CONFIDENTIAL [CONFIDENTIAL
5000) TREATMENT REQUESTED] TREATMENT
/*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
▇▇▇▇ plus ProofReady Plug-in (Epson AFS00041 [CONFIDENTIAL [CONFIDENTIAL
7000) TREATMENT REQUESTED] TREATMENT
/*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
▇▇▇▇ plus ProofReady Plug-in (Epson AFS00051 [CONFIDENTIAL [CONFIDENTIAL
7500) TREATMENT REQUESTED] TREATMENT
/*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
▇▇▇▇ plus ProofReady Plug-in (Epson AFS00061 [CONFIDENTIAL [CONFIDENTIAL
9000) TREATMENT REQUESTED] TREATMENT
/*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
▇▇▇▇ plus ProofReady Plug-in (Epson AFS00071 [CONFIDENTIAL [CONFIDENTIAL
9500) TREATMENT REQUESTED] TREATMENT
/*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
SALE PRICE
CONSUMABLES KPG PART # PRESSTEK PART # DESCRIPTION TO KPG MSLP
------------------------------------------------------------------------------------------------------------------------------------
OEM 3404 DI plates TBD Box of 4 rolls of [CONFIDENTIAL [CONFIDENTIAL
plates for OEM TREATMENT TREATMENT
3404 DI REQUESTED]/*/ REQUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
OEM 3404 DI PMT/P TBD Box of 4 rolls of [CONFIDENTIAL [CONFIDENTIAL
plate cleaning TREATMENT TREATMENT
towels for OEM REQUESTED]/*/ REQUESTED]/*/
3404 DI
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
PRESSES: DC 233 DI KPG PART # PRESSTEK PART # SALE PRICE TO KPG MSLP
------------------------------------------------------------------------------------------------------------------------
OEM 3404 DI-4, 60 Hz/230 V TBD [CONFIDENTIAL [CONFIDENTIAL
TREATMENT REQUESTED] TREATMENT
/*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
[CONFIDENTIAL [CONFIDENTIAL
TREATMENT REQUESTED] TREATMENT
IR Dryer Option TBD /*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
PDS-E density scanner-T type filter AAG01781 [CONFIDENTIAL [CONFIDENTIAL
TREATMENT REQUESTED] TREATMENT
/*/ REQUESTED] /*/
------------------------------------------------------------------------------------------------------------------------
o After the Initial Order, KPG may purchase, during 2003, up to
[CONFIDENTIAL TREATMENT REQUESTED] /*/ demonstration units of OEM Presses
(the "Demonstration Presses") and, beginning [CONFIDENTIAL TREATMENT
REQUESTED] /*/ Demonstration Press
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
22
every [CONFIDENTIAL TREATMENT REQUESTED] /*/. The transfer price for each
Demonstration Press shall be U.S.$[CONFIDENTIAL TREATMENT REQUESTED] /*/
of the excess (if any) of [CONFIDENTIAL TREATMENT REQUESTED] /*/ above
U.S.$[CONFIDENTIAL TREATMENT REQUESTED] /*/ (the "Demonstration Press
Transfer Price"). Purchase of the Demonstration Presses will not count
towards the [CONFIDENTIAL TREATMENT REQUESTED] /*/.
o U.S.$[CONFIDENTIAL TREATMENT REQUESTED] /*/ per press, adjusted quarterly
based on [CONFIDENTIAL TREATMENT REQUESTED] /*/, as set forth below. KPG
shall set its selling prices in its sole discretion, and shall provide
PRESSTEK with reasonable detail describing its average quarterly selling
price. Any discounts given by KPG on bundled solutions including the
Equipment shall be apportioned to the various elements of the bundle in a
pro rata fashion, taking into account the Equipment at KPG's published
list price. All prices below are in U.S. dollars and in thousands:
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
23
AVERAGE SELLING PRICE TRANSFER PRICE AVERAGE SELLING PRICE TRANSFER PRICE
[CONFIDENTIAL [CONFIDENTIAL [CONFIDENTIAL [CONFIDENTIAL
TREATMENT TREATMENT TREATMENT TREATMENT
REQUESTED]/*/ REQUESTED]/*/ REQUESTED]/*/ REQUESTED]/*/
MEDIA:
o KPG will purchase Media (excluding MD Media) at the following prices:
--------------------------------------------------------------------------------
List KPG Transfer
--------------------------------------------------------------------------------
$[CONFIDENTIAL TREATMENT $[CONFIDENTIAL TREATMENT
REQUESTED] /*/ /ft2 REQUESTED] /*/ /ft2
--------------------------------------------------------------------------------
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
24
EXHIBIT D
---------
SERVICE PARTS SUPPLY AND PRICE SCHEDULE
---------------------------------------
In consideration of the mutual promises contained herein, the Parties agree as
follows:
The following words and phrases shall have the meanings set forth below:
"Service Parts" means Stock Items, Non-Stock Items and Service Part Tools.
"Stock Items" means those parts, components and assemblies of components which
make up the Equipment and meet KPG's stocking requirements because of their
expected demand or functional nature.
"Non-Stock Items" means those parts, components and assemblies of components
which make up the Equipment but which do not meet KPG's stocking requirements.
"Service Part Tools" means those tools used by a service technician which are
unique for servicing the OEM Presses.
"Failure Rate Data" means either the length of time or the number of cycles that
the Service Part will function before it fails, based on KPG's and/or PRESSTEK's
best information obtained from testing, manufacturer's data or actual field
performance. Failure Rate Date may be expressed as "Mean Time Failure", "Mean
Time Between Failures", "Mean Cycles Between Failures" or "Demand to Machine per
Month".
PURPOSE OF EXHIBIT
------------------
PRESSTEK agrees to stock and sell Service Parts to KPG's under the terms and
conditions of the Agreement and this Exhibit. PRESSTEK will provide an initial
recommended Service Parts list and Failure Rate Data. KPG shall manage KPG's
parts needs under the Agreement, until KPG notifies PRESSTEK otherwise in
writing.
TERM OF SERVICE PARTS SUPPLY
----------------------------
PRESSTEK agrees to provide and stock Service Parts from the Effective Date and
until seven (7) years after the date of the final shipment of OEM Presses sold
pursuant to the Agreement.
INFORMATION TO BE SUPPLIED UPON TERMINATION
-------------------------------------------
If KPG needs a continuing source of supply of any Service Parts and PRESSTEK
wishes to stop selling such Service Part to KPG after termination of PRESSTEK'S
obligation to supply such Service Part, PRESSTEK will supply the necessary
information to KPG regarding such Service Part as is needed for KPG to make or
have made for it such Service Part and will reasonably assist KPG in finding a
new supplier for such Service Part. This shall not relieve PRESSTEK of its
obligation to supply parts pursuant to "Term of Service Parts Supply" above.
ORDERING PROCEDURES
-------------------
KPG shall order Service Parts using a KPG purchase order. Purchase orders may be
communicated either in writing or by telecommunication. Purchase orders issued
shall be subject to the terms and conditions of the Agreement.
25
PRESSTEK will send acknowledgment for each purchase order immediately after
receipt. PRESSTEK shall immediately notify KPG of a new ship date whenever a
confirmed ship date changes.
Purchase orders and release orders issued by KPG will be of the following types,
based upon lead times:
a) Routine Orders - Routine Orders for Stock Items shall be filled and the
Stock Items shipped by PRESSTEK the day after the order date, or by the
KPG specified due date if greater than the day after the order date.
Routine Orders for Non-Stock Items shall be shipped by PRESSTEK within
three to five days after the order date, or by the KPG specified due date
if greater than three to five days after the order date. Shipment shall be
by carrier and shipment method specified by KPG.
b) Emergency Orders - Emergency service will be available for those orders
which require expedited shipment, the shipping costs of such Emergency
Orders from Presstek's New Hampshire facility will be born exclusively by
KPG.
c) PRESSTEK will use its best efforts to obtain and ship Service Parts
ordered under an Emergency Order, including the disassembly of OEM Presses
for their Service Parts according to the following schedule: (i) Same day
shipment will occur if the order is received by 4:30 p.m. (local time at
KPG's inventory location) via carrier and shipment specified by KPG; (ii)
Two day shipment will occur if the order is received after 4:30 p.m.
(local time at KPG's inventory location) via carrier and shipment method
specified by KPG.
d) If the ordered Service Parts are not immediately available, PRESSTEK shall
notify KPG immediately of the earliest shipping date.
e) PRESSTEK will call, e-mail, or fax KPG shipping information including
Airway ▇▇▇▇ Number by 10:00AM of the business day following the shipment.
f) KPG may cancel any purchase order for Service Parts provided PRESSTEK has
received written notice before the scheduled ship date.
g) Warranty parts will be shipped surface freight to and from KPG's warehouse
at Presstek's expense.
h) PRESSTEK shall only accept purchase orders that originate from the
following facilities:
Tech Service International LLC Tech Services International LLC
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ 760 Atlanta ▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇ ▇ ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
PRICING AND PAYMENT TERMS
-------------------------
a) PRESSTEK agrees to sell Service Parts at the prices set forth in the
attached price list.
b) PRESSTEK shall hold all net prices on the Service Parts price list firm
for the term of this Agreement. Thereafter, any price increase shall be
only by mutual agreement of the parties.
c) Terms of payment shall be [CONFIDENTIAL TREATMENT REQUESTED] /*/ days from
date of invoice. Invoices will not be issued earlier than date of
shipment.
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
26
d) The price of Service Parts is based on FOB KPG's designated facility,
including standard export packaging.
WARRANTY
--------
Service Parts will have the warranty as set forth in the Agreement.
QUALITY ASSURANCE
-----------------
a) The quality level of Service Parts delivered by PRESSTEK whether new or
reconditioned, must equal or exceed that of production parts for the OEM
Presses.
b) In addition to the remedies set forth in the Agreement, KPG may inspect
ordered Service Parts within [CONFIDENTIAL TREATMENT REQUESTED] /*/ after
receipt. If any inspected Service Part fails to meet one or more of the
warranties, KPG will notify PRESSTEK of KPG's rejection of the Service
Part, stating KPG's reason(s) for the rejection. KPG will also either (i)
return the Service Part to PRESSTEK at PRESSTEK'S expense, freight
collect, (ii) recondition the Service Part at PRESSTEK'S expense, or (iii)
require PRESSTEK to arrange for disposition of the rejected Service Part
within [CONFIDENTIAL TREATMENT REQUESTED] /*/ from receipt of the notice
of rejection. In all cases KPG may order a replacement Service Part. The
order for a replacement Service Part will be treated as an Emergency Order
with freight paid by PRESSTEK.
c) KPG may inspect ordered Service parts within [CONFIDENTIAL TREATMENT
REQUESTED] /*/ after receipt to verify that proper Service Parts and
quantities have been received. KPG shall notify PRESSTEK of any
discrepancy by sending PRESSTEK an "order discrepancy report." The order
discrepancy report will be treated by PRESSTEK as an Emergency Order with
freight paid by PRESSTEK for the Service Parts which the report indicates
were ordered but not received. If any Service Parts or other items are
received but not ordered, KPG may either (i) reject and return the Service
Parts or other items to PRESSTEK at PRESSTEK'S expense, or (ii) notify
PRESSTEK of KPG's rejection of the Service Parts or other items. If KPG
chooses the option to give PRESSTEK notice of rejection, PRESSTEK will
have [CONFIDENTIAL TREATMENT REQUESTED] /*/ from receipt of such notice to
arrange for disposition of the rejected material.
SERVICE PARTS RECONDITIONING
----------------------------
PRESSTEK agrees to perform reconditioning of mutually agreed upon selected
Service Parts. Lead times shall be no greater than [CONFIDENTIAL TREATMENT
REQUESTED] /*/. PRESSTEK agrees to notify KPG's Service Parts Center of any
Service Parts where reconditioning costs as set out in the price list in this
Exhibit, prior to reconditioning the Service Part.
INITIAL SPARE PARTS INVENTORY
-----------------------------
PRESSTEK shall provide a discount of an additional [CONFIDENTIAL TREATMENT
REQUESTED] /*/ off the regular KPG price under this Agreement on orders required
to create an initial stocking of Spare Parts. After [CONFIDENTIAL TREATMENT
REQUESTED] /*/ days, KPG may make a one-time return of non-moving spare parts to
PRESSTEK for credit. KPG will then order such quantities of moving spare parts
to offset the credit issued for non-moving returns.
TECHNICAL AND FIELD SERVICE SUPPORT.
------------------------------------
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
27
PRESSTEK will maintain escalation support for KPG's field engineers,
applications and technical support staff to address issues beyond the scope of
KPG's capabilities, to include design, software, and manufacturing problems.
28
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
Presstek RYOBI REV'S PART PRESSTEK KPG Qty Qty Qty Qty Shipping
Part # Part # DESCRIPTION LIST/SELL Price Per Rec Rec Rec in Part Repair
PRICE PRESS FOR 10 FOR 20 FOR 50 Kilos Repair? Price
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
S-AEE01741 5PAE E 01741 PCB Assy, 70 V $[CONFIDEN- $[CONFIDEN- 2 1 2 5 5 Yes $[CONFIDEN-
Switch, IH TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
S-AEE01791 5PAE E 01791 PCB Assy, $[CONFIDEN- $[CONFIDEN- 2 1 2 5 7 Yes $[CONFIDEN-
Backplane, IH TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
S-AEE01801 5PAE E 01801 PCB Assy, $[CONFIDEN- $[CONFIDEN- 2 1 2 5 7 Yes $[CONFIDEN-
Nexen, IH TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
S-AEE01931 5PAE E 01931 PCB Assy, Laser $[CONFIDEN- $[CONFIDEN- 12 2 4 8 5 Yes $[CONFIDEN-
Drv, IH TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
S-AEE01961 5PAE E 01961 Kit, Spares, $[CONFIDEN- $[CONFIDEN- 12 2 4 6 1 Yes $[CONFIDEN-
PCB, Laser DRV, TIAL TREA- TIAL TREA- TIAL TREA-
6 Pin TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
S-AEE02361 Kit, Spares, $[CONFIDEN- $[CONFIDEN- 12 2 4 6 1 Yes
PCB, Laser DRV, TIAL TREA- TIAL TREA-
6 Pin TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AFF02981 N/A Kit, Software, $[CONFIDEN- $[CONFIDEN- 1 2 4 8 2 No N/A
3404 DI TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
S-AHH04961 Module, PCB $[CONFIDEN- $[CONFIDEN- 2 1 2 5 5 Yes $[CONFIDEN-
Assy, Stepper TIAL TREA- TIAL TREA- TIAL TREA-
Drive TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
S-AHH05471 5354 61 560 Integrated $[CONFIDEN- $[CONFIDEN- 2 1 2 4 50 Yes $[CONFIDEN-
Head, Ryobi TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
S-AHH05581 5354 61 772 Stepper Driver $[CONFIDEN- $[CONFIDEN- 2 2 4 6 5 Yes $[CONFIDEN-
Assy. TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AHH04621 5PAH H 04621 Motor Assy, $[CONFIDEN- $[CONFIDEN- 2 1 2 5 3 No N/A
Step, IH TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AHH05161 5PAH H 05161 Sensor, Home, $[CONFIDEN- $[CONFIDEN- 2 1 2 5 2 No N/A
IH TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AHH05381 5PAH H 05381 Laser Package, $[CONFIDEN- $[CONFIDEN- 12 2 4 6 1 No N/A
MEP, HP, Met TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
S-AMM08971 N/A Glass Holder $[CONFIDEN- $[CONFIDEN- 2 1 2 5 5 Yes $[CONFIDEN-
Assy, w/screws TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AMM0170A 5PAM M 0170A Leadscrew (2mm $[CONFIDEN- $[CONFIDEN- 2 1 2 2 6 No N/A
Pitch TIAL TREA- TIAL TREA-
1270/2540) TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AMM08851 N/A Clamp Assy, $[CONFIDEN- $[CONFIDEN- 12 2 4 8 2 No N/A
diode TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AMM09051 5354 54 230 Plate, Roll, $[CONFIDEN- $[CONFIDEN- 1 3 5 10 10 No N/A
set of 4 TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AMM09221 N/A Leadscrew $[CONFIDEN- $[CONFIDEN- 2 1 2 5 2 No N/A
Nutholder Assy TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AWW07101 N/A Cable Assy, $[CONFIDEN- $[CONFIDEN- 2 1 2 5 2 Yes $[CONFIDEN-
Network, 10 M, TIAL TREA- TIAL TREA- TIAL TREA-
Firewire TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
AWW07331 N/A Cable Assy, $[CONFIDEN- $[CONFIDEN- 2 1 2 5 $[CONFIDEN-
-6VDC TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AWW07341 N/A Cable Assy, $[CONFIDEN- $[CONFIDEN- 2 1 2 5 2 Yes $[CONFIDEN-
24VDC TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AWW07351 N/A Cable Assy, $[CONFIDEN- $[CONFIDEN- 2 1 2 5 2 Yes $[CONFIDEN-
Stepper Control TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AWW07361 N/A Cable Assy, $[CONFIDEN- $[CONFIDEN- 2 1 2 5 2 Yes $[CONFIDEN-
Stepper Motor TIAL TREA- TIAL TREA- TIAL TREA-
Drive TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AWW07371 N/A Cable Assy, $[CONFIDEN- $[CONFIDEN- 2 1 2 5 2 Yes $[CONFIDEN-
Peripherials TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AWW07411 N/A Cable Assy, $[CONFIDEN- $[CONFIDEN- 1 1 2 4 2 Yes $[CONFIDEN-
-6VDC, T2 TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AWW07421 N/A Cable Assy, $[CONFIDEN- $[CONFIDEN- 1 1 2 4 2 Yes $[CONFIDEN-
+24VDC, T2 TIAL TREA- TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AWW07431 N/A Cable Assy, $[CONFIDEN- $[CONFIDEN- 1 1 2 4 2 Yes $[CONFIDEN-
Stepper TIAL TREA- TIAL TREA- TIAL TREA-
Control, T2 TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
AWW07441 N/A Cable Assy, $[CONFIDEN- $[CONFIDEN- 1 1 2 4 2 Yes $[CONFIDEN-
Stepper Motor TIAL TREA- TIAL TREA- TIAL TREA-
Drive, T2 TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
S-CBC00091 5354 61 771 Kit, PCB, $[CONFIDEN- $[CONFIDEN- 1 1 1 2 2 Yes $[CONFIDEN-
OHCIADAPT, TIAL TREA- TIAL TREA- TIAL TREA-
3 Port TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
-----------------------------------------------------------------------------------------------------------------------------------
EYY00881 5354 61 773 Power Supply, $[CONFIDEN- $[CONFIDEN- 1 1 2 5 6 Yes $[CONFIDEN-
Switch, 6V, TIAL TREA- TIAL TREA- TIAL TREA-
24V, 70V TMENT RE- TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MFC03351 N/A Shoulder Screw $[CONFIDEN- $[CONFIDEN- 2 0 0 2 1 No N/A
TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MFC03361 N/A Shoulder Screw $[CONFIDEN- $[CONFIDEN- 2 0 0 2 1 No N/A
TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MHH0158A N/A Fitting, ▇▇▇▇ $[CONFIDEN- $[CONFIDEN- 2 0 0 2 1 No N/A
3/8 Tube X 1/4 TIAL TREA- TIAL TREA-
NPT TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MHH0224A N/A Oring Cord, $[CONFIDEN- $[CONFIDEN- 4 0 0 2 1 No N/A
4mm, X.X ft LG TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MHH04851 N/A Shaft Coupling $[CONFIDEN- $[CONFIDEN- 2 0 2 5 1 No N/A
TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MHH04861 N/A O Ring,BUNA-N, $[CONFIDEN- $[CONFIDEN- 6 0 0 2 1 No N/A
70D TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MHH05261 N/A Standoff $[CONFIDEN- $[CONFIDEN- 6 0 0 2 1 No N/A
TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MHH05271 N/A Belleville $[CONFIDEN- $[CONFIDEN- 4 0 0 2 1 No N/A
Washer TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MHH05981 N/A Coupling, $[CONFIDEN- $[CONFIDEN- 2 0 1 1 1 No N/A
Shaft, 1/4X5/16 TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
MHH05281 N/A O Ring, Buna-N, $[CONFIDEN- $[CONFIDEN- 2 0 0 2 1 No N/A
70D TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MHM07211 N/A Cover, Top, IH $[CONFIDEN- $[CONFIDEN- 2 0 1 2 1 No N/A
TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MHM07221 N/A Cover, Back, IH $[CONFIDEN- $[CONFIDEN- 2 0 1 2 1 No N/A
TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MHM07231 N/A Shield, Laser, $[CONFIDEN- $[CONFIDEN- 2 0 1 2 1 No N/A
IH TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM06041 N/A Clamp, Diode, $[CONFIDEN- $[CONFIDEN- 12 0 1 1 1 No N/A
IH TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
MHM07441 N/A Craddle, $[CONFIDEN- $[CONFIDEN- 2 0 1 2 1 No N/A
Firewire Con, TIAL TREA- TIAL TREA-
IH TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM16311 N/A Mount, Stepper $[CONFIDEN- $[CONFIDEN- 2 0 0 2 2 No N/A
Motor, IH TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM16321 N/A Support, $[CONFIDEN- $[CONFIDEN- 2 0 0 2 2 No N/A
Leadscrew, IH TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM17401 N/A Worm Gear, $[CONFIDEN- $[CONFIDEN- 6 0 0 2 1 No N/A
Steering, IH TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM17431 N/A Rework, Screw, $[CONFIDEN- $[CONFIDEN- 4 0 0 2 1 No N/A
Captive, IH TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM19591 N/A Rework, $[CONFIDEN- $[CONFIDEN- 3 0 0 2 1 No N/A
Standoff, TIAL TREA- TIAL TREA-
Bkpln, IH TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM19791 N/A Rework, Screw, $[CONFIDEN- $[CONFIDEN- 2 0 0 2 1 No N/A
Captive, TIAL TREA- TIAL TREA-
X-Adjust TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM20221 N/A Rework, $[CONFIDEN- $[CONFIDEN- 4 0 1 2 3 No N/A
Standoff, TIAL TREA- TIAL TREA-
Cover, IH TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2/24/2003
/*/[CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES AND
EXCHANGE ACT OF 1934, AS AMENDED.
28-A
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
MMM20591 5354 54 311 Core $[CONFIDEN- $[CONFIDEN- 4 1 1 1 3 No N/A
TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM21121 N/A Cover, $[CONFIDEN- $[CONFIDEN- 2 0 1 2 2 No N/A
X-Adjust, TIAL TREA- TIAL TREA-
Steering, IH TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM22311 N/A Pin, Alignment, $[CONFIDEN- $[CONFIDEN- 2 1 2 2 1 No N/A
Boards, IH TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM22541 N/A Stud, Board $[CONFIDEN- $[CONFIDEN- 6 0 0 2 1 No N/A
Mount, Int. TIAL TREA- TIAL TREA-
Head TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM23531 N/A Heatsink, #1, $[CONFIDEN- $[CONFIDEN- 2 0 0 2 2 No N/A
NSC, 24 Diode, TIAL TREA- TIAL TREA-
IH TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM24001 N/A Blk, Nut $[CONFIDEN- $[CONFIDEN- 2 0 1 2 1 No N/A
Holder, IH TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MMM27201 N/A Gear, Worm, $[CONFIDEN- $[CONFIDEN- 12 2 4 6 1 No N/A
X-Adjust, IH TIAL TREA- TIAL TREA-
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
MYY02921 N/A Gap Pad, $[CONFIDEN- $[CONFIDEN- 2 0 0 2 1 No N/A
Thermal, TopCvr TIAL TREA- TIAL TREA-
Heatsink TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
RYY02651 N/A Rubber Strip, $[CONFIDEN- $[CONFIDEN- 2 0 1 2 1 No N/A
Sponge TIAL TREA- TIAL TREA-
1/2"x1/4"x4" TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5290 16 215 5290 ▇▇ ▇▇▇ -▇ Air Pump 1 2 4 Un- Un- N/A
known known
------------------------------------------------------------------------------------------------------------------------------------
R 5310 82 323 5310 ▇▇ ▇▇▇ -▇ Sponge Roller $[CONFIDEN- $[CONFIDEN- 2 1 2 4 2 Un- N/A
TIAL TREA- TIAL TREA- known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 11 811 5354 11 811 Bracket $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 11 821 5354 11 821 Air compressor $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 13 121 5354 13 121 Oil pump $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
MKU11-KW2-R TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 17 115 5354 17 115 Pump (USA only) $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 17 116 5354 17 116 Pump $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
R 5354 22 147 5354 22 147 Shim $[CONFIDEN- $[CONFIDEN- 3 6 12 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 22 148 5354 22 148 Shim $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 22 162 5354 22 162 Film $[CONFIDEN- $[CONFIDEN- 10 20 40 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 22 412 5354 22 412 Magnetic Clutch $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 23 122 5354 23 122 Gripper base $[CONFIDEN- $[CONFIDEN- 6 12 24 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 23 533 5354 23 533 Spring $[CONFIDEN- $[CONFIDEN- 5 10 20 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 24 261 5354 24 261 Blanket $[CONFIDEN- $[CONFIDEN- 40 60 120 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 31 222 5354 31 222 Chain RS37 93 $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
Link TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
R 5354 35 310 5354 35 310 Skid Roller $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
Assembly TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 35 320 5354 35 320 Skid Roller $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
Assembly TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 35 330 5354 35 330 Skid Roller $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
Assembly TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 35 340 5354 35 340 Skid Roller $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
Assembly TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 35 392 5354 35 392 Retainer $[CONFIDEN- $[CONFIDEN- 4 8 16 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 35 393 5354 35 393 Retainer $[CONFIDEN- $[CONFIDEN- 3 6 12 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 35 477 5354 35 477 Belt $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 35 480 5354 35 480 Holder Assembly $[CONFIDEN- $[CONFIDEN- 5 10 20 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
R 5354 35 481 5354 35 481 Flat Spring $[CONFIDEN- $[CONFIDEN- 10 20 40 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 46 118 5354 46 118 Chain $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 46 119 5354 46 119 Delivery Table $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 47 110 5354 47 110 Gripper $[CONFIDEN- $[CONFIDEN- 6 12 24 Un- Un- N/A
Assembly TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 47 140 5354 47 140 Chain Assembly $[CONFIDEN- $[CONFIDEN- 4 8 16 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 48 120 5354 48 120 Spray Nozzle $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
Assembly TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 51 110 5354 ▇▇ ▇▇▇ -▇ Distributor $[CONFIDEN- $[CONFIDEN- 16 16 32 64 Un- Un- N/A
Roller Assembly TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 52 110 5354 ▇▇ ▇▇▇ -▇ Ductor Roller $[CONFIDEN- $[CONFIDEN- 4 8 16 Un- Un- N/A
Assembly TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
R 5354 52 550 5354 52 550 Cleanup $[CONFIDEN- $[CONFIDEN- 5 10 20 Un- Un- N/A
Attachment TIAL TREA- TIAL TREA- known known
Assembly TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 52 567 5354 52 567 Blade $[CONFIDEN- $[CONFIDEN- 20 40 80 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 52 570 5354 52 570 Cleanup $[CONFIDEN- $[CONFIDEN- 5 10 20 Un- Un- N/A
Attachment TIAL TREA- TIAL TREA- known known
Assembly TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 54 310 5354 54 310 Spool End $[CONFIDEN- $[CONFIDEN- 8 16 32 Un- Un- N/A
Assembly TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 54 360 5354 54 360 Ratchet $[CONFIDEN- $[CONFIDEN- 4 8 16 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 54 380 5354 54 ▇▇▇ -▇ ▇▇▇▇▇ ▇▇▇ $[CONFIDEN- $[CONFIDEN- 8 16 32 Un- Un- N/A
Assembly TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
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2/24/2003
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28-C
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2003 KPG DI PRESS SPARE PARTS LIST
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Assembly TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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Cleaning Device TIAL TREA- TIAL TREA- known known
Assembly TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 82 513 5354 82 513 Hose $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 82 514 5354 82 514 Hose $[CONFIDEN- $[CONFIDEN- 4 8 16 Un- Un- N/A
10 X 15 X 2500 TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 82 611 5354 82 611 Tank $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 82 631 5354 82 631 Hose $[CONFIDEN- $[CONFIDEN- 4 8 16 Un- Un- N/A
18 X 24 X 80 TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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18 X 24 X 50 TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
R 5354 82 795 5354 82 795 Hose $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 5354 82 796 5354 82 796 Hose $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------
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TMENT RE- TMENT RE-
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------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
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------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------
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TMENT RE- TMENT RE-
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------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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QUESTED]/*/ QUESTED]/*/
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QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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L - DC24V TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------
2/24/2003
/*/[CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES AND
EXCHANGE ACT OF 1934, AS AMENDED.
28-D
2003 KPG DI PRESS SPARE PARTS LIST
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LS - 3 TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------
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TMENT RE- TMENT RE-
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------------------------------------------------------------------------------------------------------------------------------------
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USB3 - 6 - 1 - TIAL TREA- TIAL TREA- known known
E DC24V TMENT RE- TMENT RE-
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------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
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TEL - 65NL TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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V - PQ1002 TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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VFFP - 18L - TIAL TREA- TIAL TREA- known known
60 - 1002 TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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253G - 200C TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
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R 95119005 95119005 Motor $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
2322 - MG3962 TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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C100 - PRST1 TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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S - N18 AC120V TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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TH - N18KP 15 A TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
------------------------------------------------------------------------------------------------------------------------------------
R 98721035 98721035 Switching $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 98721038 98721038 Switching $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
regulator TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
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R 98721039 98721039 Power Supply $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
LCA100S - 12 - TIAL TREA- TIAL TREA- known known
SN TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 98721040 98721040 Power Supply $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
LCA15S - 5 TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 98721042 98721042 Switching $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
regulator TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 99103016 99103016 Sensor $[CONFIDEN- $[CONFIDEN- 1 2 4 Un- Un- N/A
TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
R 99121005 99121005 Encoder A3B - $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
AHH04151 TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
2003 KPG DI PRESS SPARE PARTS LIST
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R 99711049 99711049 RS485 Board $[CONFIDEN- $[CONFIDEN- 2 4 8 Un- Un- N/A
PCI - 4142 TIAL TREA- TIAL TREA- known known
TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
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Flat LCD TIAL TREA- TIAL TREA- known known
Display TMENT RE- TMENT RE-
QUESTED]/*/ QUESTED]/*/
------------------------------------------------------------------------------------------------------------------------------------
Notes:
1. Shipping weights are estimates.
2. Priceing subject to change.
/*/[CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES AND
EXCHANGE ACT OF 1934, AS AMENDED.
28-E
EXHIBIT E
---------
QUALITY ASSURANCE PLAN
----------------------
To be completed and agreed upon prior to Effective Date.
29
EXHIBIT F
---------
[CONFIDENTIAL TREATMENT REQUESTED]/*/ PERFORMANCE [CONFIDENTIAL
--------------------------------------------------------------------
TREATMENT REQUESTED]/*/
-----------------------
[CONFIDENTIAL TREATMENT REQUESTED]/*/ Performance [CONFIDENTIAL
--------------------------------------------------------------------
TREATMENT REQUESTED]/*/
-----------------------
Year Annual OEM Presses Purchases
------ ----------------------------
2004 [CONFIDENTIAL TREATMENT
REQUESTED]/*/ units of OEM
Presses
------ ----------------------------
2005 [CONFIDENTIAL TREATMENT
REQUESTED]/*/ units of OEM
Presses
------ ----------------------------
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
30
EXHIBIT G
---------
MEDIA PERFORMANCE INCENTIVES
----------------------------
MD MEDIA.
---------
If KPG installs [CONFIDENTIAL TREATMENT REQUESTED]/*/ in the Territory within
[CONFIDENTIAL TREATMENT REQUESTED] after the Effective Date of this Agreement
("Option A"), or if KPG installs [CONFIDENTIAL TREATMENT REQUESTED]/*/ in the
Territory within [CONFIDENTIAL TREATMENT REQUESTED]/*/ after Effective Date of
this Agreement ("Option B"), then KPG shall have the exclusive right to
distribute and sell MD Media in the United States of America (excluding its
territories) (the "MD Distribution Rights") for the remainder of the calendar
year in which KPG gains such MD Distribution Rights. In order to extend the MD
Distribution Rights for additional calendars year, KPG must purchase certain
numbers of OEM Presses during the previous calendar year, as follows:
o [CONFIDENTIAL TREATMENT REQUESTED]/*/;
o [CONFIDENTIAL TREATMENT REQUESTED]/*/;
o [CONFIDENTIAL TREATMENT REQUESTED]/*/;
o [CONFIDENTIAL TREATMENT REQUESTED]/*/.
If KPG fails to maintain its MD Distribution Rights by failing to purchase the
requisite number of OEM Presses during the calendar year, as set out above, KPG
shall forfeit its MD Distribution Rights and shall have no right to sell or
otherwise distribute the MD Media anywhere. If KPG forfeits its MD Distribution
Rights, it cannot regain them regardless of the number of units of OEM Presses
purchased.
During such time that KPG has its MD Distribution Rights, Presstek shall sell to
KPG, and KPG may purchase, MD Media at the following prices:
o If KPG gained its MD Distribution Rights under Option A, $
[CONFIDENTIAL TREATMENT REQUESTED]/*/ per square foot.
o If KPG gained its MD Distribution Rights under Option B, $
[CONFIDENTIAL TREATMENT REQUESTED]/*/ per square foot.
For purposes of determining under which option KPG gained its MD Distribution
Rights, if KPG installs sufficient number of units to gain MD Distribution
Rights under Option A and Option B, KPG will be determined to have gained its MD
Distribution Rights under Option B.
MEDIA GROWTH INCENTIVE REBATE.
------------------------------
To reward KPG for achieving certain sales of units of OEM Presses under the
terms of this Agreement, Presstek will rebate a certain percentage of KPG's
annual Media purchase amounts (the "Media Purchase Rebate"), provided that KPG
complies with certain terms as set out herein.
The amount of Media Purchase Rebate will be determined as follows:
o 2003: [CONFIDENTIAL TREATMENT REQUESTED]/*/ % of the list price of the
total Media purchase amounts paid by KPG to Presstek during calendar year
2003 (the "Annual Media Purchase").
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
31
o 2004 and beyond: the Media Rebate will be calculated based on the number
of units of OEM Presses purchased by KPG each year (the "Annual OEM
Presses Purchase") as the Annual OEM Presses Purchase compares to the
Annual Percentage Target, as follows:
Level of Annual OEM Presses Purchases Media Purchase Rebate*
--------------------------------------------------------------------------------
[CONFIDENTIAL TREATMENT [CONFIDENTIAL TREATMENT
REQUESTED]/*/% of Annual Performance REQUESTED]/*/% of the list price
Target of Annual Media Purchase
--------------------------------------------------------------------------------
[CONFIDENTIAL TREATMENT [CONFIDENTIAL TREATMENT
REQUESTED]/*/%- [CONFIDENTIAL REQUESTED]/*/% of the list price
TREATMENT REQUESTED]/*/% of Annual of Annual Media Purchase
Performance Target
--------------------------------------------------------------------------------
[CONFIDENTIAL TREATMENT [CONFIDENTIAL TREATMENT
REQUESTED]/*/% of Annual Performance REQUESTED]/*/% of the list price
Target of Annual Media Purchase
--------------------------------------------------------------------------------
*OEM 3404 DI Media only
/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.
32
EXHIBIT H
PRESSTEK LOG DESIGN SPECIMEN
[PRESSTEK LOGO]