Exhibit 10.49
LICENSE SYSTEM ADDENDUM #3
to
MASTER TECHNOLOGY LICENSE AGREEMENT
between
SEIKO EPSON CORPORATION
and
PEERLESS SYSTEMS(R)IMAGING PRODUCTS, INC.
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as *. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.
LICENSED SYSTEM ADDENDUM #3 TO MASTER
TECHNOLOGY LICENSE AGREEMENT DATED
APRIL 1, 2000
The Licensed System Addendum #3 ("this LSA #3") is entered into as of December
__, 2000 (the "Effective Date") by and between SEIKO EPSON Corporation, a
Japanese corporation ("SEC") and PEERLESS Systems(R) Imaging Products Inc., a
Washington corporation, with offices at 20415 72/nd/ Ave. S. Suite 400, Kent, WA
98032 (hereinafter "PSIP"), a wholly owned subsidiary of PEERLESS Systems
Corporation, a Delaware corporation, pursuant to the provisions of the Master
Technology License Agreement between those Parties dated April 1, 2000 (the
"MTLA"). That MTLA provides that SEC may be granted a license of certain
Licensed Products from PSIP pursuant to one or more Addenda to the MTLA executed
by SEC and PSIP. This LSA #3 is hereby made part thereof, and the terms and
conditions of the MTLA are incorporated by reference herein. To the extent there
are any inconsistencies between this LSA #3 and the MTLA or the Licensed System
Addendum #1 to the MTLA dated July 13, 2000 ("LSA #1") or Licensed System
Addendum #2 to the MTLA dated October 31, 2000 ("LSA #2"), this LSA #3 shall
control.
This LSA #3 includes the following Exhibits:
Exhibit A - Description of License Granted
Exhibit B - Payments and Payment Terms
Attachment #1 - Summary of Authorized SEC Devices Licensed by LSA #3
IN WITNESS WHEREOF, the Parties hereto have executed this LSA #3 as of the
Effective Date.
SEIKO EPSON CORPORATION PEERLESS SYSTEMS IMAGING PRODUCTS, INC.
By: By:
/s/ Toru Oguchi /s/ Ron Davis
- ------------------------------- -------------------------------------------
(Authorized Signature) (Authorized Signature)
Name: Toru Oguchi Name: Ron Davis
Title: Senior General Manager Title: Vice President, Sales and Marketing
Date: January 10, 2001 Date: January 16, 2001
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Page 1 of 17
LICENSED SYSTEMS ADDENDUM #3
1.0 DEFINITIONS. All capitalized terms used herein shall have the meaning
specified in this LSA #3 or, if not defined herein, then the meaning specified
in the MTLA. For the terms that are defined in this Section 1 and in the MTLA,
or LSA #1 or LSA #2 the definition provided herein shall govern for all purposes
hereof.
1.1 "Derivative Product", with respect to any hardware product, means the main
body of a SEC product incorporating PSIP Material and any other components which
shall be bundled with and be contained in a package with the main body of
product at the time of SEC's shipment of that product to SEC's customer.
1.2 "Machine Executable Copy" includes anything designated as such under the
MTLA and, without limiting the foregoing, any object code, machine executable
version of any Derivative Work of any Current Release or Update Release licensed
to SEC under this LSA #3.
1.3 "PSIP Materials" includes anything designated as such under the MTLA and,
without limiting the foregoing, any of the foregoing incorporated in our
underlying any Derivative Work created thereof.
1.4 "Bundled Product" in the context of this LSA #3 means that every unit of the
designated Authorized SEC Devices shipped will contain Adobe PostScript(R)3(TM).
1.5 "Unbundled Product" in the context of this LSA #3 means every one of the
designated Authorized SEC Devices shipped may not contain Adobe
PostScript(R)3(TM). In the event that the Authorized SEC Device is offered for
sale with Adobe PostScript(R)3(TM) both as an option and as a standard feature
(in this case as two versions of the same Authorized SEC Device), both versions
will be considered as "Unbundled Products".
2.0 ADDITIONAL LICENSE GRANTED. Unless specifically set out herein, SEC is given
no rights hereunder to distribute, or in any other manner transfer Source Code
or Source Materials to any third person. All Licenses granted herein are
non-exclusive.
3.0 DELIVERABLES. SEC agrees that PSIP has transmitted to an Authorized SEC
Facility one (1) copy of the Machine Executable Code and related standard
documentation for each Authorized SEC Device identified herein.
4.0 TERM AND TERMINATION. The term of this LSA #3 shall commence upon the
Effective Date and shall be contemporaneous with the term of the License under
the MTLA.
5.0 INDEMNIFICATION. SEC shall have the right, subject to the MTLA, LSA #1, LSA
#2, and this LSA #3, to control its development, manufacturing and marketing
efforts. Accordingly, SEC shall, except to the extent that PSIP has indemnified
SEC pursuant to the MTLA, indemnify and hold PSIP harmless from any and all
losses or damages (including without limitation attorneys' fees and costs and
all third party claims or demands of any type whatsoever) arising out of,
incurred in connection with or relating to the SEC's development, manufacturing
and marketing of Authorized SEC Devices.
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Page 2 of 17
6.0 PROPRIETARY RIGHTS AND CONFIDENTIALITY
6.1 PSIP shall own all title and proprietary rights, including without
limitation copyrights, patents and trade secret rights, in any PSIP Material,
including without limitation any portion thereof incorporated in or underlying
any Derivative Work created by SEC, and any part or copy of any of the foregoing
in any form or media. In the case of all Derivative Work, PSIP shall continue to
own the underlying Code and all proprietary rights thereto, and shall own the
Derivative Work as a whole and all proprietary rights thereto. PSIP shall own
such modifications per se and all proprietary rights thereto. SEC shall have the
right and license to use such modifications per se to the same extent it is
licensed to use the Code in such respective formats as set forth elsewhere in
the MTLA, LSA #1, LSA #2 and this LSA #3. The foregoing ownership rights are
subject to the Licenses set forth herein. Rights not expressly granted to the
SEC hereunder are reserved by the PSIP.
Without limiting the foregoing, SEC shall own all title and proprietary rights
in any pre-existing SEC intellectual property that SEC contributes to any such
Derivative Work.
6.2 Without limiting any of SEC's obligations of confidentiality imposed
pursuant to the MTLA, SEC shall (i) specifically require any employee and
contractor of SEC to execute SEC's standard confidentiality and non-disclosure
agreement(s); (ii) notify PSIP promptly and in writing of any circumstances of
which SEC has knowledge regarding any possible use of or access to any
Confidential Information or any part hereof by any unauthorized person or
entity; and (iii) take and allow PSIP to take, at SEC's expense but under PSIP's
control, any legal or other action necessary to prevent or stop the access to or
use of the Confidential Information by any person or entity that has gained
access to the Confidential Information due to the fault or negligence of License
or any breach by SEC of the MTLA or this LSA #3.
6.3 Any breach by SEC of any of its obligations under this Section 6 shall be
considered to be Default of the provisions of the MTLA.
7.0 AUDIT RIGHTS. PSIP shall have the right, upon one reasonable prior notice,
to have one (1) of its employees walk through and inspect any SEC Facility to
determine whether SEC employs adequate security procedures as required in
Paragraph 6.2 of this LSA #3. Any such audit shall take place during business
hours at SEC's location and shall be conducted in a manner that does not
unreasonably disrupt the business operations of SEC. PSIP shall bear the expense
of any such audit. PSIP shall comply with SEC's instructions during the audit of
the SEC Facility.
///End
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Page 3 of 17
EXHIBIT A - DESCRIPTION OF LICENSE GRANTED
1.0 PSIP Licensed Products: SEC is authorized to use the following PSIP Licensed
Product(s) listed below which it has received in Machine Executable Copy form:
1.1 PSIP API(TM) specification as used in connection with the SEC
Seiko Page Printer Platform (SPPP) interface.
1.2 Machine executable Adobe PostScript(R)3(TM)code including:
1.2.1 Adobe Acrobat(R)Reader
1.2.2 Adobe Driver Software (Current Release)
1.2.3 Adobe Type Manager(R)
1.2.4 Bitmap fonts
2.0 Authorized SEC Devices: SEC is authorized to use the PSIP Licensed Products
in object code format only solely in the following Authorized SEC Devices:
2.1 Those Authorized SEC Devices named in Attachment #1 (Summary for
Authorized SEC Devices) to LSA #1 dated July 13, 2000, to the MTLA.
Specifically, the SEC designated products, * , Printer Systems.
2.2 Those Authorized SEC Devices named in Attachment #1 (Summary for
Authorized Devices) to LSA #2 dated October 31, 2000 to the MTLA.
Specifically, the SEC designated products, * Printer Systems.
2.3 Those Authorized SEC Devices named in Attachment #1 (Summary for
Authorized Devices) to LSA #3 to the MTLA. Specifically, the SEC
designated products * Printer Systems.
It is understood between the Parties that SEC has delivered to PSIP the latest
technical specifications for each of the Authorized SEC Devices as of the date
of execution of the LSA #3.
3.0 Authorized SEC Facility: SEC may store and use the PSIP Materials only at
the following Authorized SEC Facility:
Hirooka Office: 80, Harashinden, Hirooka, Shioijiri-shi, Nagano-ken,
399-0785, Japan.
This Authorized SEC Facility may be changed with the written approval of PSIP,
which approval shall not be unreasonably withheld. When the Authorized SEC
Facility above is sought to be changed, SEC will notify PSIP in writing of the
substitute Authorized SEC Facility's name and address at least thirty (30) days
in advance of said change. When SEC stores the duplicated PSIP Materials at more
than one Authorized SEC Facility, then any additional Authorized SEC Facility
shall be deemed to be an Authorized SEC Facility thirty (30) days after SEC both
(i) has notified PSIP in writing of the address of such additional facility and
PSIP's approval has been granted, and (ii) has paid PSIP's then standard fee for
adding an Authorized SEC Facility.
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
- --------------------------------------------------------------------------------
Page 4 of 17
3.1 Reproduction Sites. SEC may reproduce the PSIP Material in machine
executable code format (object code) for each of the above designated
Authorized SEC Devices at any SEC designated manufacturing facility
worldwide.
///End
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Page 5 of 17
EXHIBIT B - PAYMENTS AND PAYMENT TERMS
1.0 PER UNIT LICENSE FEES: For each Authorized SEC Device shipped pursuant to
LSA #1, LSA #2, and this LSA #3, PSIP and SEC agree that there shall be a
non-refundable, non-transferable and non-creditable Per Unit License Fee due and
paid to PSIP. The amount of the Per Unit License Fees for each Derivative
Product developed hereunder is shown below. The percentages in the following
tables are based on the Suggest Retail Price (SRP) of the product. In the event
that a relevant SRP in Japanese Yen shall be established in Japan, the SRP shall
be converted into U.S. dollars at TTM rate equal to the average exchange rates
for the appropriate currency issued by The Fuji Bank, Limited at the end of the
first and last days of the relevant quarterly accounting period (or the first
business day thereafter if such day is a Sunday or other non-business day). In
the event that a legal SRP cannot be established outside the United States, the
SRP of the product in the United States will be used.
1.1 Per Unit LICENSE FEES: The recurring Per Unit License Fee is the fee that
PSIP charges SEC for the right to use PSIP' Licensed Products in each product
shipped by SEC is detailed below.
1.1.1 License Fees for Authorized SEC Devices Authorized in LSA #1.
- --------------------------------------------------------------------------------
Table #1 - Per Unit License Fees for Japanese Character Version
(Inclusive of Roman Character Font License Fees)
(Exclusive of Japanese Character Font License Fees)
- --------------------------------------------------------------------------------
Royalty for Licensed System Royalty for Optional PostScript
(Bundled) Kit (Unbundled)
- --------------------------------------------------------------------------------
* *% *%
- --------------------------------------------------------------------------------
* *% *%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Table #2 - Per Unit License Fees for Roman Character Version
(Inclusive of Roman Character Font License Fees)
- --------------------------------------------------------------------------------
Royalty for Licensed System Royalty for Optional PostScript
(Bundled) Kit (Unbundled)
- --------------------------------------------------------------------------------
* *% *%
- --------------------------------------------------------------------------------
* *% *%
- --------------------------------------------------------------------------------
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
- --------------------------------------------------------------------------------
Page 6 of 17
- --------------------------------------------------------------------------------
Table #3 - Per Unit Incremental License Fee for Japanese Character
PostScript Font - Heisei Font Set.
(Two font Minimum)
- --------------------------------------------------------------------------------
Japanese SRP for Each Per Heisei Typeface in U.S. $
Licensed System
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Table #4 - Per Unit Incremental License Fee for Japanese Character
PostScript Font - Morisawa Font Set.
(Two font Minimum)
- --------------------------------------------------------------------------------
Japanese SRP for Each Per Heisei Typeface in U.S. $
Licensed System
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
1.1.1.1 *
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
** Denotes Greater than
* Denotes Less than
- --------------------------------------------------------------------------------
Page 7 of 17
- --------------------------------------------------------------------------------
Table #5 - Discount for Heisei Fonts
- --------------------------------------------------------------------------------
SRP in Yen Discount for Licensed System Discount for Optional
(Bundled) PostScript Kit (Unbundled)
- --------------------------------------------------------------------------------
*
- - * $* $*
- - * $* $*
- --------------------------------------------------------------------------------
*
- - * $* $*
- - * $* $*
- --------------------------------------------------------------------------------
*
- - * $* $*
- - * $* *
- --------------------------------------------------------------------------------
1.1.1.2 *
1.1.2 License Fees for Authorized SEC Products Authorized in LSA #2, and
this LSA #3.
- --------------------------------------------------------------------------------
Table #6 - Per Unit License Fees
(Inclusive of Roman Character Font License Fees)
(Exclusive of Japanese Character Font License Fees)
- --------------------------------------------------------------------------------
Royalty for Licensed System Royalty for Optional
(Bundled) PostScript Kit (Unbundled)
- --------------------------------------------------------------------------------
* *% (minimum of U.S. $*) *% (minimum of U.S. $*)
- --------------------------------------------------------------------------------
* *% (minimum of U.S. *% (minimum of U.S.
$*) $*)
- --------------------------------------------------------------------------------
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
** Denotes Greater than
* Denotes Less than
- --------------------------------------------------------------------------------
Page 8 of 17
- --------------------------------------------------------------------------------
Table #7 - Per Unit Incremental License Fee for Japanese Character
PostScript Font - Heisei Font Set.
(Two font Minimum)
- --------------------------------------------------------------------------------
Japanese SRP for Each Per Heisei Typeface in U.S. $
Licensed System
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Table #8 - Per Unit Incremental License Fee for Japanese Character
PostScript Font - Morisawa Font Set.
(Two font Minimum)
- --------------------------------------------------------------------------------
Japanese SRP for Each Per Heisei Typeface in U.S. $
Licensed System
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
1.1.2.1 *
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
** Denotes Greater than
* Denotes Less than
- ---------------------------------------------------------------------------
Page 9 of 17
- --------------------------------------------------------------------------------
Table #9 - Discount for Heisei Fonts
- --------------------------------------------------------------------------------
SRP in Yen Discount for Discount for Optional
Licensed System PostScript Kit (Unbundled)
(Bundled)
- --------------------------------------------------------------------------------
*
- - * $* $*
- - * $* $*
- --------------------------------------------------------------------------------
*
- - * $* $*
- - * $* $*
- --------------------------------------------------------------------------------
*
- - * $* $*
- - * $* *
- --------------------------------------------------------------------------------
1.1.2.2 *
1.2 BLOCK LICENSE.
1.2.1 Block License Grant. In lieu of paying the required Per Unit
Royalty Fee on an "as incurred" basis, PSIP has granted SEC a Block
License under which SEC may offset the Per Unit Royalties incurred by
the Authorized SEC Devices identified in Exhibit A, Section 2 herein;
provided that, SEC may not offset the Per Unit Royalties incurred by
any additional Authorized SEC Devices to be granted under a license of
future Licensed System Addenda to be attached to the MTLA.
1.2.2 Block License Payment. PSIP has granted SEC a Block License for
PSIP Licensed Products contained in the Authorized SEC Devices. This
Block License will be granted for non-refundable, non-transferable and
non-creditable payment of U.S. $* (*) due and payable as of the
execution date of this LSA#3. This Block License Payment shall be paid
on the following dates:
a) Payment of U.S. $* (*) within *.
b) Payment of U.S. $* (*) no later *.
c) Payment of U.S. $* (*) no later than *.
1.2.3 Block License Terms and Conditions The terms and conditions of
the PSIP granted Block License to SEC are as follows:
a) The utilization of the Block License shall apply to the use of
all PSIP Licensed Products named in LSA #1, LSA #2 and this
LSA #3 (as listed in Exhibit A, Section 2.0 herein).
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
** Denotes Greater than
* Denotes Less than
- --------------------------------------------------------------------------------
Page 10 of 17
b) For the distribution of the Authorized SEC Devices named in
LSA #1, SEC may apply, at its sole discretion, Per Unit
License Fees for each object code copy of the PSIP Licensed
Products as set forth in Exhibit B, Section 1.1.1 hereof or
those fees as set out below in Exhibit B, Section 1.2.4
hereof. For the distribution of the Authorized SEC Devices
named in LSA# 2 and this LSA #3, SEC may apply the reduced Per
Unit License Fees for each object code copy of the PSIP
Licensed Product as set out below in Exhibit B, Section 1.2.4
herein.
c) SEC will apply the above stated Per Unit Recurring License Fee
to the actual number of Authorized SEC Devices shipped which
contain the object code copies of the PSIP Licensed Products
and will thus calculate the equivalent earned Per Unit
Recurring License Fee.
d) The Per Unit Recurring License Fees stated in Exhibit B,
Section 1.1.1 (solely for Authorized SEC Devices licensed in
LSA#1) and/or Section 1.2.4 below, shall apply until the
crediting of the equivalent earned recurring license fee
equals U.S. $* (*).
e) Upon exhaustion of the U.S. $* Block License plus any
Additional Block Licenses for each new printer as set out
below, in any, at SEC's option, the following actions may take
place:
i) SEC, at its sole discretion, may purchase future Block
License(s) in the amount of U.S. $* (*) under the same
terms and conditions as enumerated herein; provided
however, that PSIP and SEC shall negotiate to reduce
Per Unit License Fees for all Authorized SEC Devices to
be applied to those future Block Licenses from any
previous Per Unit License Fee. If SEC has executed
additional Block License(s) in which the Authorized SEC
Devices named in LSA #1, LSA #2 and this LSA #3 are in
part or in total named, then the Per Unit Recurring
License Fee for such Authorized SEC Devices may be
credited against those additional granted Block
License(s).
ii) SEC, at its sole discretion, may purchase additional
Block License(s) in the amount of U.S. $* (*) each
under the same terms and conditions as enumerated
herein.
iii) SEC, at its sole discretion may decide not to purchase
an additional Block License as set forth in e) i) or
ii) above, in which case the recurring Per Unit License
Fee for each Authorized SEC Device named in LSA #1
shall revert to the rate defined in Exhibit B, Section
1.1.1 hereof and those fees for each Authorized SEC
Device named in LSA #2 and this LSA #3 would revert to
rate as defined in Exhibit B, Section 1.1.2 herein.
1.2.4 License Fees for Authorized SEC Devices Authorized in LSA #1, LSA #2 and
LSA #3 under this Block License. In the case of products authorized in LSA #1,
SEC
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
- --------------------------------------------------------------------------------
Page 11 of 17
may, at its sole discretion use either the Per Unit License Fees enumerated in
Section 1.1.1 or below under the Block License:
- --------------------------------------------------------------------------------
Table #10 - Per Unit License Fees
(Inclusive of Roman Character Font License Fees)
(Exclusive of Japanese Character Font License Fees)
- --------------------------------------------------------------------------------
Royalty for Licensed System Royalty for Optional
(Bundled) PostScript Kit (Unbundled)
- --------------------------------------------------------------------------------
* *% (minimum of U.S. $*) *% (minimum of
U.S. $*)
- --------------------------------------------------------------------------------
* a) *% (minimum of $*) for *% (minimum of U.S.
products with an SRP of $*)
U.S. $* or less.
b) *% for products with an
SRP greater than $*.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Table #11 - Per Unit Incremental License Fee for Japanese Character
PostScript Font - Heisei Font Set.
(Two font Minimum)
- --------------------------------------------------------------------------------
Japanese SRP for Each Licensed System Per Heisei Typeface in U.S. $
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Table #12 - Per Unit Incremental License Fee for Japanese Character
PostScript Font - Morisawa Font Set.
(Two font Minimum)
- --------------------------------------------------------------------------------
Japanese SRP for Each Licensed System Per Morisawa Typeface in U.S. $
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* $*
- --------------------------------------------------------------------------------
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
*** Denotes Greater than
** Denotes Less than
- --------------------------------------------------------------------------------
Page 12 of 17
---------------------------------------------------------
* $*
---------------------------------------------------------
* $*
---------------------------------------------------------
* $*
---------------------------------------------------------
1.2.4.1 *
---------------------------------------------------------
Table #13 *
---------------------------------------------------------
1.2.4.2 *
1.3 ADDITIONAL BLOCK LICENSE
1.3.1 Additional Block License Grant. If SEC wishes to add new Authorized
SEC Devices using new printer engine ("New Authorized SEC Devices") and/or
those devices using certain engines previously covered under previously
executed LSAs, PSIP and SEC agree to enter into new LSA to be attached to
the MTLA and PSIP shall grant additional Block Licenses ("additional Block
License") for New Authorized SEC Devices under the new LSA and the
following terms and conditions:
a) Additional Block Licenses will be issued in the denomination of U.S.
$* (*) for each New Authorized SEC Devices.*
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
*** Denotes Greater than
** Denotes Less than
- ---------------------------------------------------------------------------
Page 13 of 17
Per Unit License Fees set out in Exhibit B, Section 1.2.4
hereof shall be applied to such new products, and such fees
paid to PSIP under the terms of the MTLA).
b) For the distribution of New Authorized SEC Devices, SEC may
apply the reduced Per Unit License Fees as set out in Exhibit
B, Section 1.2.4 hereof to reduce any Additional Block License
payments. Such Additional Block License will also cover the
Per Unit License Fees for all Authorized SEC Devices licenses
under previously executed LSA and under current LSA.
c) SEC, at its sole discretion, may decide not to purchase
Additional Block License as set forth in Section 1.3.1 a) and
b) above, in which case the rate as defined in Exhibit B,
Section 1.1.2 hereof shall be applied as the Per Unit License
Fee for each of the New Authorized SEC Devices.
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
- --------------------------------------------------------------------------------
Page 14 of 17
ATTACHMENT #1 - SUMMARY FOR AUTHORIZED SEC DEVICES
Following are product descriptions for the Authorized SEC Devices licensed under
this LSA#3.
1.0 Kent SW Printer Summary
1.1 Controller Design: *
1.2 Controller CPU:
1.3 Operating System:
1.4 ROM Capacity:
1.5 ROM used by Adobe,
1.6 RAM Capacity:
1.7 Standard Communications: *
1.8 Optional Communications:
1.9 Marking Engine:
1.10 Resolution: *
1.11 Marking Engine Speed:
1.12 Color/Mono:
1.13 Paper Sizes: *
*
1.14 Paper Sources
1.14.1 *
1.14.2
1.14.3
1.14.4
1.15 Paper output:
1.16 User Interface: *
1.17 Language Support:
1.18 Typeface: *
1.19 Other Adobe Software:
2.0 Kent-G2 Printer Summary
2.1 Controller Design: *
2.2 Controller CPU:
2.3 Operating System:
2.4 ROM Capacity: Code:
2.5 ROM used by Adobe:
2.6 RAM Capacity: *
2.7 Standard Communications:
2.8 Optional Communications:
2.9 Marking Engine:
2.10 Resolution: *
2.11 Marking Engine Speed:
2.12 Color/Monochrome:
2.13 Paper Sizes: *
2.14 Paper Sources:
2.14.1
2.14.2
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Page 15 of 17
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.
2.14.3 *
2.14.4
2.15 Paper output:
2.16 User Interface: *
character LCD)
2.17 Language Support:
2.18 Typeface:
1.19 Roman:
2.20 Other Adobe Software:
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Page 16 of 17
* Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as *. A complete version of this exhibit has
been filed separately with the Securities and Exchange Commission.