Exhibit 10.26 MASTER TECHNOLOGY LICENSE AGREEMENT between KONICA CORPORATION and PEERLESS SYSTEMS CORPORATION * 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. MASTER TECHNOLOGY LICENSE AGREEMENT DATED January 16, 2000 This Master Technology License Agreement including Attachment # 1 hereto ("this Agreement" or "MTLA") is entered into as of January 16, 2000 (the "Effective Date"), by and between KONICA Corporation, a Japanese corporation, having its principal office at No.26-2 Nishishinjuku 1-chome, Sinjuku-ku Tokyo, Japan ("KONICA" as defined Paragraph 1.5 below) and PEERLESS Systems Corporation, a Delaware corporation, with offices at 2381 Rosecrans Avenue, El Segundo, California, 90245, USA ("PEERLESS"). The Terms and Conditions of the MTLA consists of the following: Attachment 1 Additional Terms And Conditions Regarding The Licensing Of PEERLESS Software Developer Kits ("SDK") Which Contain Adobe Systems Inc. Source Code. Annex 1 to Attachment # 1 MINIMUM TERMS OF END USER AGREEMENTS Exhibit A To Attachment # 1 SECURE PROCEDURES FOR HANDLING ADOBE SUPPORT INFORMATION Exhibit B To Attachment # 1 EXTENDED ROMAN FONT PROGRAM SET Exhibit B-1 To Attachment # I NON-ROMAN FONT PROGRAMS Exhibit C To Attachment # 1 Use Of Adobe Trademarks The terms and conditions of this Agreement, the Attachment #1 including Exhibits A, B, B-1 and C hereto and those contained in one or more License Software Addenda hereto ("Addenda"), which are incorporated herein by reference, shall constitute the licensing agreement for the Licensed Product(s) (as hereinafter defined) specified in the Addenda hereto. This MTLA including the Attachment # 1 including Exhibits and the Addenda hereto, as well as the Confidentiality Agreement between the Parties which is presently in effect, constitute the exclusive statement of the agreement between PEERLESS and KONICA concerning the subject matter hereof. All other prior agreements, arrangements or understandings, oral or written, relating to Licensed Products specified in the Attachment A and the Addenda hereto are merged into and are superseded by the terms of this Agreement. Without limiting the foregoing, the pre-printed portions of a purchase order or any other document submitted by KONICA in connection with an order for the Licensed Product(s) shall not add to or vary the terms of this Agreement. THE TERMS AND CONDITIONS ON THE FOLLOWING PAGES ARE PART OF THIS AGREEMENT. BOTH PARTIES HERETO ACKNOWLEDGE THAT THEY HAVE READ THIS AGREEMENT, UNDERSTAND IT, AND AGREE TO BE BOUND BY THE TERMS AND CONDITIONS CONTAINED HEREIN. PEERLESS SYSTEMS CORPORATION KONICA CORPORATION By: By: /s/ Cary A. Kimmel /s/ Masatoshi Matsuzaki - ----------------------------------------- ---------------------------------- Name: Cary A. Kimmel Name: Masatoshi Matsuzaki Title: Director of Business Development Title: General Manager Date: January 16, 2000 Date: January 16, 2000 TERMS AND CONDITIONS 1. Definitions 1.0 Attachment #1. "Attachment # 1" includes the Exhibits attached thereto and sets out collateral minimum terms and conditions that KONICA is obligated to accept pursuant to the Licenses granted hereunder. 1.1 Authorized KONICA Device. "Authorized KONICA Device" means any device meeting the requirements described in each Licensed Software Addendum hereto, provided that such device is both (i) designed and manufactured by KONICA or designed by KONICA and manufactured by a third party for KONICA's account pursuant to such design and (ii) sold, distributed or otherwise marketed to End Users under KONICA's name and trademark or the name and trademark of any customer of KONICA including OEM Remarketer customer of KONICA other than the name or trademark of a Manufacturing Licensee or affiliate or related party of a Manufacturing Licensee. 1.2 Confidential Information. "Confidential Information" means any (i) written material that the disclosing party labels, stamps or otherwise designates as confidential, (ii) oral communication that the disclosing party designates as confidential at the time that it is made and for which the disclosing party provides written notice to the receiving party within thirty (30) days thereafter stating that such information is confidential, (iii) the terms of this Agreement, and (iv) copies of any of the foregoing. Notwithstanding anything to the contrary contained in this Agreement, "Confidential Information" shall not include information that the receiving party can document was (i) in the public domain at the time of disclosure, or which enters the public domain other than as a result of the fault or negligence of the receiving party, (ii) already known to the receiving party at the time of first disclosure hereunder without obligation of confidentiality, (iii) rightfully obtained by the receiving party from a third party without obligations of confidentiality, or (iv) lawfully developed by the receiving party independently and without direct or indirect reference to or use of any Confidential Information disclosed to it hereunder. 1.3 Current Release. "Current Release" means, with respect to any Licensed Product, the version thereof specified in each Licensed Software Addendum hereto. 1.4 Derivative Work. "Derivative Work" means (i) for copyrightable or copyrighted material and new material that is based upon one or more preexisting works, such as a revision, modification, translation, abridgment, condensation, expansion, or any other form in which such preexisting works may be recast, transformed, or adapted; and (ii) for patentable or patented material, any improvement thereon; and (iii) for material which is protected by trade secret, any new material derived from such existing trade secret material, including new material which may be protected or protectable by copyright, patent and/or trade secret, and that, if prepared without authorization of the owner of the copyright, patent and trade secret in such preexisting work, would constitute an infringement. For purposes hereof; a Derivative Work refers to Licensed Products as defined herein and shall also include any compilation that incorporates such a preexisting work. 1.5 KONICA. "KONICA" means KONICA Corporation, a Japanese corporation, and any of its affiliates or subsidiaries. 1.6 KONICA Facility(ies). "KONICA Facility (ies)" means the facility set forth in a Licensed Software Addendum to this Agreement which is deemed to be the authorized KONICA Facility as of the date thereof. A KONICA Facility can be either a "KONICA Development Facility" or a "KONICA Manufacturing Facility". 1.7 End User. "End User" means a person or entity that acquires a Machine Executable Copy in any form or media for its ordinary business or personal purposes, but not for redistribution, resale, license or other transfer. 1.8 General Availability. "General Availability" ("GA") means the time when a product is available for shipment from KONICA to all customers. GA shall not include sample shipments in non-production quantities for evaluation purposes only. 1.9 License. "License" means the rights granted to KONICA pursuant to Sections 2 and 3 hereof. 1.10 Licensed Product. "Licensed Product" means the PEERLESS-owned PEERLESS Technology as identified herein or in a Licensed Software Addendum to this MTLA between PEERLESS and KONICA, including, without limitation, any of the computer programs utilizing the PEERLESS Technology, the PEERLESS documentation thereto and other PEERLESS provided technology identified in each Licensed Software Addendum hereto. 1.11 Licensed Software Addendum ("LSA") - Licensed Software Addendum means an appendix(ces) to the MTLA between PEERLESS and KONICA describing the deliverables for a specific controller platform including development tools and - -------------------------------------------------------------------------------- documentation which PEERLESS is making available to KONICA solely for use by the KONICA in designing and developing printer products that include PEERLESS-provided technology, and the Adobe Information, which PEERLESS intends to make available to KONICA under license for use in designing and developing Licensed Systems. 1.12 Machine Executable Copy. "Machine Executable Copy" means an object code (machine executable) copy of any Current Release or Update Release licensed to KONICA hereunder. 1.13 Manufacturing Licensee. "Manufacturing Licensee" means a third party that manufactures Machine Executable Copies or Authorized KONICA Devices under license from KONICA. 1.14 PEERLESS Material. "PEERLESS Material" means any Machine Executable Copies, any material provided by PEERLESS to KONICA, and any part or copy of any of the foregoing in any form or media. 1.15 PEERLESS Technology. "PEERLESS Technology" means any and all proprietary Code, technology, inventions, works of authorship, know-how, algorithms, methods, processes, procedures, techniques, solutions, and any other type of technical information provided by PEERLESS and used to design, develop, test, manufacture or distribute the PEERLESS Deliverables, including without limitation, any and all Technology embodied in the PEERLESS Material and Source Materials, excluding any KONICA Technology. 1.16 Project Addendum ("PA") - Project Addendum means an appendix(ces) to the MDA between PEERLESS and KONICA describing the deliverables for a specific controller platform including specific deliverables, schedule and payment of Engineering Services Fees associated with a development project. 1.17 Source Materials. "Source Materials" means any source code and any related documentation or materials for the Licensed Products. 1.18 Third Party Manufacturing Facility. "Third Party Manufacturing Facility" means the facility set forth in a Licensed Software Addendum to this Agreement which is deemed to be the authorized Third Party Manufacturing Facility as of the date thereof. 1.19 Update Release. From time to time PEERLESS may (but shall not be obligated to) release new versions of Licensed Product(s) containing error corrections. Such new versions, if any, will be identified by changes to the version number of the Current Release. An "Update Release" means a version of any Licensed Product that is commercially released by PEERLESS for general distribution after the date hereof and that is designated by PEERLESS in its sole discretion by a version number (x.x.x) that differs from the version number of the Current Release only in the digit(s) to the right of the right-most decimal point (x.x.x). Update Releases shall include only error corrections and shall not include substantial or material enhancements or new features. All decisions regarding the creation and the timing of Update Releases shall be in PEERLESS' sole discretion. DEFINITIONS FOR POSTSCRIPT DEVELOPMENT LICENSE AGREEMENT. 1.20 Adobe Certification Test Suite means the testing materials and procedures developed by Adobe to be used to test Revised Object for conformity with the PostScript Language Specification and Adobe quality standards by (a) PEERLESS, in connection with a PEERLESS SDK or KONICA Licensed System and (b) KONICA in connection with a Licensed System. 1.21 Adobe Development Tools means any Adobe-supplied development tool and utility software identified as Adobe Software Development Tools in an Adobe Deliverables Appendix or materials release form (or by other means when delivery is made to PEERLESS via the World Wide Web), including any enhancements, modifications and localizations thereof provided by Adobe to PEERLESS. 1.22 Adobe Header Files means the Adobe source code computer programs and files that provide definitions of the services available in Adobe PostScript libraries, as identified in an Adobe Deliverables Appendix or materials release form (or by other means when delivery is made to PEERLESS via the World Wide Web). 1.23 Adobe Information means the (a) Adobe Support Information, (b) Font Programs, (c) Adobe Software, Other Adobe Software and Host Software, provided to PEERLESS in object code form, (d) End User Documentation, and (e) any other information provided to PEERLESS by Adobe hereunder. - -------------------------------------------------------------------------------- 1.24 Adobe Software means (a) the unmodified computer programs, in source and/or object code form, known collectively as Adobe's Level 3 PostScript interpreter software, as identified in an appendix or materials release form, (b) other software programs identified in an appendix or materials release form (or by other means when delivery is made to PEERLESS via the World Wide Web) as Adobe Software, and (c) any enhancements or modifications to any of the foregoing as provided by Adobe to PEERLESS. 1.25 Adobe Support Information means any of the following information provided by Adobe to PEERLESS during the term of this Agreement: (a) Adobe Software, Other Adobe Software, and Host Software in source code form, (b) unreleased Adobe Software, Other Adobe Software or Host Software in object code form, (c) Adobe Header Files (d) the Adobe Certification Test Suite, (e) Adobe Development Tools, (f) documentation intended for use by PEERLESS or KONICA for development purposes, (g) information identified as Adobe Support Information in an appendix, materials release form or exhibit to this Agreement (or by other means when delivery is made to PEERLESS via the World Wide Web), and (h) enhancements or modifications related to any of the foregoing as provided by Adobe to PEERLESS. 1.26 Adobe Trademarks means collectively the Adobe Trademarks and Typeface Trademarks. "Adobe Trademarks" means (a) the trademarks "Adobe(R)," "PostScript(R)," and "PostScript(R)3(TM)," (b) the respective stylistic marks and distinctive logotypes for such trademarks, and (c) other marks and logotypes as Adobe may from time to time designate during the course of this Agreement. "Typeface Trademarks" means the trademarks, if any, used by Adobe to identify the Typefaces. "Trademarks," as defined herein, do not include PEERLESS trademarks. 1.27 Clone Product means a product having page description capabilities that are substantially compatible with the PostScript language. 1.28 Designated Output Device(s) means an output device (i.e., print engine or other raster imaging device) meeting the requirements described in an SDK Appendix or Licensed System Addendum and used to display the raster output created by the Revised Object. References to a "Class" of Designated Output Devices shall mean all Designated Output Devices that each have similar specifications with regard to the unique combination of the following characteristics: controller/microprocessor, marking engine speed, RAM memory, ROM capacity, resolution, bits/pixel, etc. 1.29 PEERLESS OEM Agreement means this MTLA and Licensed Software Addenda regarding the development of Revised Object by PEERLESS for the benefit of the KONICA and whereby PEERLESS sublicenses to such KONICA the right to use and distribute, but not modify (except as expressly set forth herein) the Revised Object as part of a Licensed System. 1.30 PEERLESS SDK means a development kit created by PEERLESS that includes (a) PEERLESS-supplied software and/or hardware, (b) only those components of Adobe Software and Adobe Header Files, (c) Font Programs provided by Adobe, and (d) may also include components of Other Adobe Software and/or Host Software. A PEERLESS development kit, whether or not known as an "SDK," is not a "PEERLESS SDK" as defined herein if it does not include Adobe-supplied technology. 1.31 End User Documentation means the documentation for the Host Software that is intended for use by an End User. 1.32 Font Programs means the digitally encoded, machine readable outline programs for the Typefaces identified in EXHIBIT B ("Extended Roman Font Program Set"), EXHIBIT B-1 ("Non-Roman Font Programs"), or in an appendix hereto or materials release form (or by any other means when delivery is made to PEERLESS via the World Wide Web), for which Adobe has sublicensing rights to allow PEERLESS to further sublicense such Typefaces to KONICA. 1.33 Host Software means any Adobe-supplied software identified as Host Software in an appendix hereto, including any enhancements, modifications and localizations (i.e., a version of the Host Software for which the dialog text strings and help files contained therein have been translated into a language other than English) thereof, provided by Adobe to PEERLESS, that typically runs on a host computer system independently of the Adobe Software, but is used as part of or in conjunction with a Licensed System. 1.34 Licensed System means a KONICA product that includes Revised Object and Font Programs licensed from PEERLESS, and one or more Designated Output Device(s), and may include (unless such components are identified as mandatory, in which case it shall include) Other Adobe Software, Host Software and other hardware and software identified in an applicable Licensed System Addendum. - -------------------------------------------------------------------------------- 1.35 Licensed System Addendum ("LSA") means an Addendum to be added to the MTLA between PEERLESS and KONICA covering each Licensed System and containing a description of the Licensed System and setting forth any licensing terms specific to each such Licensed System and including at a minimum the terms required by PEERLESS. 1.36 OEM Remarketer Customer means a third party with whom KONICA has entered into a written agreement authorizing such third party to distribute a Licensed System under such third party's own trademark and/or incorporate as part of such third party's own product and under its own End User Agreement that includes terms substantially equivalent to those set forth in ANNEX 1 ("Minimum Terms of End User Agreements") to ATTACHMENT #1. 1.37 Other Adobe Software means any Adobe-supplied software identified as Other Adobe Software, including any enhancements or modifications supplied by Adobe to PEERLESS, that is typically included and distributed as part of the Revised Object for use with the Adobe Software. 1.38 PostScript Language Specification means the PostScript Language Reference Manual, Second Edition, as printed in English by Addison-Wesley, current as of April 1991, or subsequent edition identified in the applicable Addendum, and the Supplement: PostScript Language Reference Manual, For Version 3010 (or later supplement to the PostScript Language Reference Manual). 1.39 PostScript Printer Description ("PPD") File means a human readable, machine parseable file containing device-specific information as to how to invoke the features of a particular Licensed System, as described in the PostScript Printer Description File Specification available from Adobe and subject to change in Adobe's sole discretion. 1.40 Reference Port means a version of the Adobe Software and Other Adobe Software, if any, consisting of portions in object code form as compiled by Adobe, and unmodified portions in source form to be compiled by PEERLESS using the development environment specified in an Adobe Deliverables Appendix, which when linked together will execute on the specified development platform. 1.41 Revised Object means the compiled, object code version of the Adobe Software and Other Adobe Software (if any), as revised by PEERLESS for use in a PEERLESS SDK or in KONICA's Licensed System pursuant to the licenses granted hereunder. 1.42 Typeface means a human readable set of glyphs as may be specified by Adobe. Each weight or version of a single typeface design (such as Roman or Italic or in an expanded or condensed form) marketed by Adobe as a separate typeface will be considered a separate Typeface. 2. License 2.1 Source Materials. Except to the extent provided in any Licensed Software Addendum incorporated into and made a part hereof, KONICA shall not be provided with, and shall have no rights hereunder, to have access, to use or to copy, any Source Materials. All Source Code licenses granted by PEERLESS, if any, are non-exclusive and subject to the provisions of this MTLA and Attachment # 1. Upon purchase of a Source Code License, additional copies of the Source Code may be reproduced by KONICA, at no additional charge, only for back-up or archival purposes. 2.2 Object Code. 2.2.1 Subject to the provisions of this Agreement as well as the payment of all applicable license fees for the term of such license, PEERLESS hereby grants KONICA the worldwide, non-exclusive right to reproduce Machine Executable Copies and distribute such copies only as provided in Paragraph 2.2.2 or as stored: (i) on a silicon chip(s) incorporated into an Authorized KONICA Device, (ii) on magnetic or optical media licensed to End Users as part of a package including an Authorized KONICA Device on or with which such copy operates, or (iii) on magnetic or optical media licensed to End Users in a form not suitable for use on or with any product other than an Authorized KONICA Device, or (iv) to End Users via Internet or telecommunication channels, in a form not suitable for use on or any product other than an Authorized KONICA Device, if such distribution is identified in the specific Licensed Software Addendum. 2.2.2 KONICA may provide Machine Executable Copies to any Manufacturing Licensee, provided that each Manufacturing Licensee executes a written agreement (a "Manufacturing License") providing that the Manufacturing Facility may reproduce Machine Executable Copies at an authorized Third Party Manufacturing Facility only for delivery to KONICA or for license to customers or distributors of KONICA on KONICA's behalf, subject to all of the restrictions set forth in Paragraphs 2.2.1(i), (ii), (iii), or (iv) above. - -------------------------------------------------------------------------------- 2.2.3 Any license to an End User of a Machine Executable Copy on magnetic or optical media shall be made under either a written license agreement executed by such End User or a document without signature spaces that conspicuously is designated as a "License Agreement" and that states that the End User will be bound thereby if he opens the package, uses the software or downloads or copies the Internet file (collectively, an "End User License"). KONICA shall submit to PEERLESS for approval KONICA's standard form of End User License before any Machine Executable Copies are licensed thereunder, which approval shall not be unreasonably withheld. KONICA shall not do or permit any decompilation, disassembly, or other reverse engineering of the Licensed Product, and in addition, each End User License and each Manufacturing License shall stipulate that the End-User shall not do or permit any copying or decompilation, disassembly or other reverse engineering of any Machine Executable Copy subject to any rights granted to a Manufacturing Licensee's rights to reproduce Machine Executable Copies pursuant to Paragraph 2.2.2. 2.3 Limitations 2.3.1 KONICA shall not copy, distribute or modify, or authorize or allow any third party to copy, distribute or modify, any PEERLESS Material in any manner other than as expressly provided in this Agreement. If PEERLESS provides Source Material to KONICA pursuant to a Licensed Software Addendum, KONICA shall store and use the Source Materials solely at the KONICA Facility(ies) specified in each Licensed Software Addendum hereto. All Object Code licenses granted herein by, if any, are non-exclusive unless specifically denominated otherwise. 2.3.2 Object code licenses granted herein or in a Licensed Software Addendum are subject to the provisions of Attachment # 1 as applicable. 3. Deliverables 3.1 Source Code. For any Licensed Product for which KONICA shall receive Source Materials pursuant to a Licensed Software Addendum hereto, PEERLESS shall transmit the deliverables specified in that Licensed Software Addendum pursuant to a schedule agreed upon therein. 3.2 Object Code. For any Licensed Product for which PEERLESS and KONICA have executed a Licensed Software Addendum to this Agreement, PEERLESS shall provide the deliverables specified in that Licensed Software Addendum pursuant to a schedule agreed upon therein. Upon execution of an Licensed Software Addendum to this Agreement, PEERLESS shall transmit to the KONICA Facility (ies) address indicated on a specific Licensed Software Addendum hereto (i) one (1) Machine Executable Copy and related standard documentation for each Current Release, and (ii), subject to the limitations of Paragraph 9.3, one (1) Machine Executable Copy of any Update Release as of the date that PEERLESS determines in its sole discretion to commence general distribution of such Update Release. 4. Title to Technology, Ownership and Confidentiality 4.1 Title. As between PEERLESS and KONICA, PEERLESS shall own all title and proprietary rights, including without limitation copyrights, patents and trade secret rights, in any PEERLESS Materials and any part or copy thereof in any form or media. 4.2 Ownership. Ownership of the intellectual property that is the subject of this Agreement and Licensed Software Addenda thereto shall be as follows: A. All processes, Licensed Products (including documentation and source code), technology, trade secrets, know-how, and other technical information relating to the Licensed Products and any patents, trademarks, or other intellectual property, technology, trade secrets, know-how, and other technical information relating to the Licensed Products and any patents, trademarks, or other intellectual property pertaining to any of the foregoing or other works provided by PEERLESS are and shall remain the property of PEERLESS. B. PEERLESS shall own all title and proprietary rights, including without limitation copyrights, patents and trade secret rights, in the source code and/or object code of the Licensed Products that is provided to KONICA hereunder. KONICA receives no title or proprietary rights to the Licensed Products that are provided to it under this Agreement. Modifications to Licensed Products agreed upon by the Parties in an Licensed Software Addendum to this Agreement, and thereon made by KONICA shall be owned by PEERLESS and PEERLESS agrees to grant and herein grants to KONICA the right and license to copy, modify, make, distribute and sell such Modifications to the same extent it is licensed to use the Licensed Products as set forth in this Agreement or as evidenced in a Licensed Software Addendum. Ownership rights in this Section 4 are subject to the licenses herein and rights not expressly granted to KONICA hereunder are reserved to PEERLESS. - -------------------------------------------------------------------------------- C. In the case of all Derivative Works contemplated under this Agreement and agreed upon by the Parties in an Licensed Software Addendum to this Agreement, PEERLESS shall continue to own the underlying source and object code of the Licensed Products and all proprietary rights thereto, and PEERLESS shall solely shall own the Derivative Works and the modified software as a whole and all proprietary rights to the Derivative Works and the modified software as a whole, including without limitation copyrights, patents and trade secret rights. All copyright rights shall inure to PEERLESS and KONICA shall assign or cause to be assigned to PEERLESS any and all of its copyrights in the Derivative Works. KONICA shall have the right and license to use the Derivative Product as a whole to the same extent it is licensed to use the Licensed Products as set forth in this Agreement or as evidenced in an Licensed Software Addendum. KONICA understands that PEERLESS shall have an irrevocable, worldwide and royalty-free right of ownership to use such Modifications made by KONICA and to use, sell, or otherwise dispose of such Derivative Works in which the modification was created by KONICA. D. PEERLESS now owns and shall continue to own the underlying code of the Licensed Products, including but not limited to the schematics and database software used to implement the Licensed Products, the then previously existing underlying code of the Licensed Products which is used in Derivative Works and all proprietary rights and title including without limitation copyrights, patents and trade secret rights thereto. E. The rights of either Party to use or capitalize on the Licensed Products or Derivative works thereof are restricted by the scope of license granted under Section 2 of this MTLA, the Attachment # 1 hereto or as set out in an Licensed Software Addendum thereto. F. KONICA receives no title or proprietary rights to the Adobe Materials contained in the Licensed Products that are provided to it under this Agreement, Attachment # 1 or a Licensed Software Addendum hereto. 4.3 Obligations to Observe Confidentiality. Notwithstanding any other provision hereof and in compliance with the provisions of the Confidentiality Agreement between the Parties, the receiving party shall (i) observe complete confidentiality with regard to the Confidential Information and shall protect it using at least the same degree of care it uses to protect its own proprietary and confidential information and materials of like importance, but in no event less care than a reasonably prudent business person would take in a like or similar situation; (ii) not disclose or permit any third person or entity access to the Confidential Information without disclosing party's prior written permission (except that such disclosure or access shall be permitted solely to employees of receiving party to the extent required to allow receiving party to utilize the Confidential Information as permitted hereunder); and (iii) ensure that receiving party's employees who receive access to any Confidential Information are advised of the confidential and proprietary nature thereof and of their obligation to maintain its Secrecy. The Parties' obligations and rights under this Paragraph 4.3 shall survive any expiration or termination of the License or of this Agreement for any reason whatsoever including without limitation PEERLESS' or KONICA's material breach hereof. 5. Training. To the extent indicated in each Licensed Software Addendum hereto, PEERLESS shall, upon KONICA's request, make training relating to the Licensed Products available at a mutually agreed time at a PEERLESS facility. Except as may be otherwise agreed by the Parties in writing, KONICA shall pay for any training in addition to that provided for in each Licensed Software Addendum, at PEERLESS' then standard rates for time, materials and related charges. 6. Payment 6.1 Generally. KONICA shall pay PEERLESS in accordance with the rates, terms and conditions set forth in each Licensed Software Addendum hereto. KONICA shall hold in confidence and not disclose such rates, terms and conditions. KONICA will make all payments within * (*) calendar days of receipt of PEERLESS' invoice. Unless otherwise stated in an Addendum hereto, all payments are non-refundable, non-transferable and not creditable. 6.2 Late Payment. Without limiting any of PEERLESS' other rights or remedies hereunder if KONICA shall at any time fail to pay within thirty (30) days of the date when due any amount owing hereunder (a "Payment Default"), PEERLESS shall be entitled to cease performing any and all of its obligations hereunder until such time as KONICA cures such Payment Default by paying such past due amount and any late fees or other charges associated therewith. If PEERLESS is obligated hereunder to perform any services as of any date after any Payment Default (a "Deadline"), such Deadline shall be extended by one (1) day for each day that the Payment Default remains uncured, including and up to the day that PEERLESS receives all amounts due hereunder. 6.3 Taxes. In the event that KONICA is required to withhold taxes imposed upon PEERLESS for any payment under this Agreement by virtue of the statutes, laws, codes, or government regulations of a country in which the Licensed Products are sold, then such payments will be made by KONICA and deducted from KONICA's payment obligations under this Agreement; provided, however, that KONICA will obtain and furnish PEERLESS with official tax receipts for a credit against PEERLESS' U.S. tax liability. * 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. - -------------------------------------------------------------------------------- 7. Term and Termination 7.1 Generally. The term of the License shall commence upon the date hereof and shall continue for six (6) years thereafter. Subject to KONICA's compliance with the terms of this MTLA, this Agreement shall automatically be renewed for another six-(6) year term unless KONICA notifies PEERLESS in writing of its intent to terminate this Agreement at least three (3) months prior to the scheduled expiration of this Agreement. Notwithstanding the foregoing, this Agreement may be terminated prior to the scheduled expiration date under the provisions of Section 11 (Default). Nothing contained herein shall be deemed to extend the term of any warranty provided hereunder. 7.2 Duties Upon Termination. Except as otherwise set forth herein, upon termination of the MTLA or expiration of the term of the License ("Termination"), all of KONICA's rights under the License shall be cancelled immediately. Within thirty (30) business days after Termination, KONICA shall, except to the extent provided in Paragraph 7.3, (i) return to PEERLESS or destroy all PEERLESS Material and Adobe material in the possession of KONICA or any KONICA Manufacturing Facility or at any KONICA directed Third Party Manufacturing Facility, other than Machine Executable Copies previously shipped to KONICA's customers in accordance with Paragraph 2.2 for which KONICA has or shall timely pay all amounts due hereunder, and (ii) provide to PEERLESS a statement executed by an officer of KONICA certifying that KONICA has complied in all respects with the provisions of clause (i) of this sentence including its return or destruction of all of Adobe's proprietary information within thirty (30) days of termination, cancellation or expiration. KONICA shall continue to be responsible for safeguarding the proprietary rights of Adobe and Adobe's suppliers in accordance with this Agreement, after such termination, cancellation or expiration. Additionally, KONICA shall immediately discontinue use and distribution of, and return or destroy all copies of, Adobe Information and other Adobe deliverables in its possession (including copies placed in any storage device under KONICA's control). 7.3 Rights After Termination. After Termination, KONICA may retain and distribute, solely in accordance with the provisions of Paragraph 2.2 and this Section 7 hereto, Machine Executable Copies incorporated in or packaged for use with or on Authorized KONICA Devices already manufactured and in KONICA's finished goods inventory as of Termination, but only if KONICA timely performs its obligations under Paragraph 7. 8. Indemnification 8.1 Indemnification of KONICA. Subject to the limitations contained in this Agreement, PEERLESS shall indemnify and hold harmless KONICA from any liabilities to any third parties, as finally awarded by a court of competent jurisdiction, arising out of, and any costs and expenses of defending or settling, any claim that any Licensed Products or any part thereof infringes any copyright, patent or trade secret in the U.S. and the countries and territories listed in Exhibit A to this MTLA. KONICA shall notify PEERLESS in writing of any such claim promptly after KONICA first learns thereof, shall tender sole control of the defense and settlement of such claim to, and shall provide PEERLESS with such reasonable assistance and cooperation as PEERLESS may reasonably request from time to time in connection with such defense. In the event of any such claim, PEERLESS may replace at its option and expense either procure for KONICA the right to continue using or distributing PEERLESS Material or replace any allegedly infringing PEERLESS Material with non-infringing software or other material of equivalent functionality. KONICA shall thereupon cease all use or distribution of such PEERLESS Material and return all copies thereof to PEERLESS. None of PEERLESS' obligations under this Section 8 shall apply in connection with any claim of infringement if KONICA has modified any PEERLESS Material or combined any such material with or into any other programs, data, device, component or applications or breached this Agreement and such infringement would not have occurred without such modification, combination or breach. Under no circumstances will PEERLESS have an obligation to indemnify KONICA from any claims relating to any technology provided by third parties for which KONICA enters into a separate agreement with such third party for such technology; KONICA's sole indemnity rights, if any, relating to such third party technology will be governed under its separate agreement with the third party. 8.2 Indemnification of PEERLESS. KONICA shall indemnify PEERLESS and hold it harmless from any liabilities to any third parties, as finally awarded by a court of competent jurisdiction, arising out of and any costs and expenses of defending or settling, any claims that any Licensed Product infringes any copyright, patent or trade secret existing or issued as of the date of this Agreement, in the U.S. and the countries and territories listed in Exhibit A to this MTLA, in the event that infringement action or claim is based on the use of the Licensed Products in a manner other than as specified under this Agreement, the use of any Licensed Products in combination with other products, equipment, devices or software if the infringement action or claim would have been avoided in the absence of such combination, or the alteration or modification of the Licensed Products if the infringement action or claim would have been avoided in the absence of such alteration or modification. PEERLESS shall notify KONICA in writing of any such claim promptly after PEERLESS first learns thereof, shall tender sole control of the defense and settlement of such claim to KONICA, and shall provide KONICA with such reasonable assistance and cooperation as KONICA may reasonably request from time to time in connection with such defense. - -------------------------------------------------------------------------------- 8.3 Limitation of Liability. Except as for payments pursuant to Paragraph 6.1 above and Paragraph 11.3 below, in no event or circumstances shall each Party's total liability under this Agreement including Sections 8.1 and 8.2 herein, to the other Party for damages however denominated, attorneys fees and costs from a judgment arising out of any and all actions and proceedings brought by either Party against the other Party for any cause of action sounding in tort, contract or otherwise, exceed the lessor of 1) the aggregate amounts of Source Code License Fees and Recurring License Fees actually paid by KONICA to PEERLE or 2) one million dollars (US$1,000,000.00). 8.4 Exclusion of Damages IN NO EVENT SHALL PEERLESS BE LIABLE FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OF USE, LOST PROFITS OR LOSS OF DATA OR INFORMATION OF ANY KIND, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, WHETHER OR NOT PEERLESS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE. NO ACTION, REGARDLESS OF FORM, ARISING OUT OF THE TRANSACTIONS UNDER THIS AGREEMENT MAY BE BROUGHT BY EITHER PARTY HERETO MORE THAN ONE (1) YEAR AFTER THE CAUSE OF ACTION HAS OCCURRED, EXCEPT THAT AN ACTION FOR NONPAYMENT, BREACH OF THE PROVISIONS OF SECTION 10 HEREOF OR MISAPPROPRIATION OR INFRINGEMENT OF ANY OF PEERLESS' PROPRIETARY RIGHTS MAY BE BROUGHT AT ANY TIME WITHIN ANY APPLICABLE STATUTE OF LIMITATIONS. 8.5 Separate Counsel. PEERLESS and KONICA each retain the right to employ independent counsel of its choice to participate in any legal proceedings as set out in Paragraphs 8.1 and 8.2 above. 8.6 Intentional Risk Allocation. PEERLESS and KONICA each acknowledges that the provisions of the Agreement were negotiated to reflect an informed voluntary allocation between them of all the risks, both known and unknown associated with the transactions associated with this Agreement and any Addendum hereto. The warranty disclaimers and limitations in this Agreement and any Addendum hereto are intended to limit the circumstances of liability. The remedy limitations and the limitations of liability are separately intended to limit the forms of relief available to the Parties. 9. Warranties 9.1 Scope. The scope and duration of the warranties for each Licensed Product are specified in each Licensed Software Addendum hereto. 9.2 Remedies. If KONICA reports in writing any condition that it believes to constitute a breach of any warranty provided pursuant to Paragraph 9.1 and PEERLESS is able to replicate such condition and determines that such condition constitutes such a breach, PEERLESS shall use commercially reasonable efforts to correct, or at its option to provide a Work Around (as hereinafter defined) for, such condition (i) promptly upon notice thereof, to the extent that such condition causes system crashes, and (ii) in or with a subsequent Update Release, to the extent that such condition does not cause system crashes. With respect to any condition constituting a breach of the warranties provided in Paragraph 9.1, "Work Around" means any system, method or procedure that allows use of any Current Release or applicable Update Release without loss of documented functionality. KONICA shall cooperate with and promptly provide all assistance or KONICA materials or equipment reasonably requested by PEERLESS in connection with PEERLESS' efforts in detecting, analyzing and/or correcting any such condition. The foregoing states the entire liability of PEERLESS and the sole and exclusive remedies of KONICA for any breach of any warranty provided by PEERLESS pursuant to Paragraph 9.1 hereof or a specific Licensed Software Addendum hereto. 9.3 Limitations. In no event shall the existence of any condition be deemed to give rise to any breach of the warranties provided in Paragraph 9.1 hereof if such condition was caused in whole or part by (i) any hardware, equipment or non-Licensed Products except non-Licensed Products modified by PEERLESS for inclusion in any Current Release or Update Release, including without limitation any defect therein or failure to operate in accordance with manufacturer's, distributor's or publisher's specifications therefor, (ii) any modification or enhancement to any PEERLESS Material made by any person or entity other than PEERLESS, (iii) any negligent or inapplicable use of any PEERLESS Material, (iv) any use of any PEERLESS Material for a purpose other than as licensed herein or in a Licensed Software Addendum, or as recommended in the most current PEERLESS instructions or documentation provided to KONICA, or (v) any other negligence by KONICA or any third party. 9.4 Disclaimers. 9.4.1 EXCEPT AS SPECIFICALLY PROVIDED IN PARAGRAPH 9.2, PEERLESS DISCLAIMS ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE AND FITNESS FOR A PARTICULAR PURPOSE AND AGAINST INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, PEERLESS DOES NOT WARRANT THAT ANY OF THE CURRENT RELEASES OR UPDATE RELEASES THAT IT - -------------------------------------------------------------------------------- PROVIDES WILL BE ERROR FREE OR OPERATE WITHOUT INTERRUPTION. PEERLESS DOES NOT MAKE, AND HEREBY EXPRESSLY DISCLAIMS, ANY REPRESENTATION OR WARRANTY TO ANY END USER OR OTHER THIRD PARTY. KONICA SHALL NOT HAVE THE RIGHT TO MAKE OR PASS THROUGH, AND SHALL TAKE ALL MEASURES NECESSARY TO INSURE THAT NEITHER IT NOR ANY OF ITS AGENTS OR EMPLOYEES ATTEMPT TO MAKE OR PASS THROUGH, ANY SUCH REPRESENTATION OR WARRANTY ON BEHALF OF PEERLESS. 9.4.2 ADOBE AND ITS THIRD PARTY SUPPLIERS MAKE NO WARRANTIES OF ANY KIND, EXPRESS, IMPLIED, ARISING FROM COURSE OF DEALING OR USAGE OF TRADE, OR STATUTORY, AS TO THE ADOBE INFORMATION OR ANY MATTER WHATSOEVER. IN PARTICULAR, ANY AND ALL WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT ARE EXPRESSLY EXCLUDED. KONICA SHALL NOT HAVE THE RIGHT TO MAKE OR PASS ON, AND SHALL TAKE ALL MEASURES NECESSARY TO ENSURE THAT NEITHER IT NOR ANY OF ITS AGENTS, EMPLOYEES, OR CUSTOMERS SHALL MAKE OR PASS ON, ANY EXPRESS OR IMPLIED WARRANTY OR REPRESENTATION ON BEHALF OF ADOBE OR ITS THIRD PARTY SUPPLIERS TO ANY CUSTOMER, END USER, OR THIRD PARTY. ADOBE SHALL HAVE NO RESPONSIBILITY FOR SUPPORTING KONICA OR KONICA'S END USERS. PEERLESS OR KONICA, EITHER DIRECTLY OR INDIRECTLY, WILL PROVIDE END USERS WITH REASONABLE END USER DOCUMENTATION, WARRANTY SERVICE, AND TELEPHONE SUPPORT FOR THE USE OF LICENSED SYSTEMS CONSISTENT WITH GOOD INDUSTRY PRACTICE. 9.4.3 PEERLESS DOES NOT WARRANT THAT THE OPERATION OF THE SOFTWARE OR THE LICENSED PRODUCTS WILL BE UNINTERRIPTED OR ERROR FREE. 10. Proprietary Rights Notices. 10.1 KONICA agrees to reproduce and affix to all copies of any firmware ROM labels, printer driver labels and property dialog boxes such proprietary and copyright notices as set forth herein, set forth in Paragraph 4.3 of Attachment #1, and as PEERLESS shall specify from time to time in writing. Unless otherwise specified by PEERLESS, the following notice shall be affixed by KONICA or an appropriate Third Party Manufacturing Facility to any media incorporating (including EPROM's, ROMs, etc.) of any PEERLESS Material: TRADEMARK OF PEERLESS SYSTEMS CORPORATION, or REGISTERED TRADEMARK OF PEERLESS SYSTEMS CORPORATION, or COPYRIGHT (C) 1999 PEERLESS SYSTEMS CORP. 10.2 KONICA shall not remove or obscure any PEERLESS copyright, trademark or confidentiality notices or marks. 10.3 KONICA agrees that as a condition of its rights hereunder, each copy of the Adobe Information shall contain the same proprietary notices of Adobe and its suppliers which appear on or in such Adobe Information provided by PEERLESS to KONICA and as otherwise reasonably required by PEERLESS. More specifically, KONICA agrees that a valid Adobe copyright notice for the Revised Object, Font Programs and Host Software will appear on the media, or, in the case of Revised Object executing on a workstation or other host-based system, displayed on the single user screen of the workstation or other host-based system when the Revised Object is first invoked during an End User session, in the following format or such other format as PEERLESS specifies by written notice to KONICA: (a) the name of the program, (b) the word "Copyright" and the circled-c symbol (C), (c) the date of first publication of the Adobe Software, and (d)the name of the copyright owner and the words "All Rights Reserved." 11. Default 11.1 Defined. For purposes hereof, a Default shall be deemed to occur upon the occurrence of any of the following events: (a) KONICA's failure to pay any amounts due hereunder within thirty (30) days from the date that such amounts are due or overdue; (b) either Party's breach of any of its obligations under Section 9; (c) either Party's breach of any other of its obligations hereunder, or (d) KONICA's breach of the terms and conditions of Attachment # 1, which breach continues uncured for a period of thirty (30) days after receipt of written notice thereof from the non-breaching Party. 11.2 Remedies. Upon any Default, the non-breaching Party shall have the right, without limiting any of its other rights or remedies hereunder or at law or in equity, to declare by written notice to the breaching Party that all unpaid amounts owing hereunder immediately due and payable, to recover the same, to terminate the term of the License pursuant to Paragraph 7.1, and to suspend performance of any of its obligations hereunder. - -------------------------------------------------------------------------------- 11.3 Liquidated Damages. Notwithstanding any other liability limitation herein, KONICA acknowledges and agrees that PEERLESS would suffer damages if KONICA defaults prior to Final Acceptance under a specific Project Addendum, and that in such a situation PEERLESS' actual damages would be difficult to determine. As a result, in the event that KONICA defaults prior to Final Acceptance under a specific Project Addendum, KONICA and PEERLESS agree that the damages would be 1) the remaining portion of the Engineering Services Fees due in addition to the Guaranteed Minimum Recurring License Fees due under the specific Project Addendum, Licensed Software Addendum or other applicable contractual arrangement, or 2) US$1,000,000.00 (one million dollars), which ever sum is greater. 12. Audit Rights 12.1 Reporting. Within thirty (30) days after the end of each calendar quarter, KONICA shall deliver to PEERLESS a written accounting certified by an authorized representative of KONICA and setting forth the total quantity of each Licensed Product sold (in whatever form or media) and the total amount invoiced therefore during such quarter. In the event an Authorized KONICA Device includes Adobe PostScript provided by PEERLESS, such accounting shall separately identify the quantity and invoiced amount of such shipments. KONICA shall also provide PEERLESS KONICA future product sales forecasts. Such reports shall be provided to PEERLESS upon request by PEERLESS. 12.2 KONICA Books of Account. KONICA shall keep in its principal place of business complete and accurate books of account relating to the creation and shipment of any Machine Executable Copies. Said books and records shall be limited to those data that are necessary for calculating the recurring license fees. In order to assist in verification of the accounting information delivered to PEERLESS, such books of account with reasonable information to determine the number of units owing to PEERLESS shall be provided upon request by PEERLESS to KONICA. 12.3 Financial Audit. Upon reasonable advance written notice to KONICA, PEERLESS shall have the right, at its own expense, once annually to audit the books and records of KONICA through mutually agreed upon accredited independent representatives (who shall be certified public accountants) to determine the sufficiency of KONICA's payments hereunder and to verify the statements to be furnished to PEERLESS pursuant to this Section 12. Said books and records shall be limited to data necessary for the calculation of the recurring license fees. Any such audit shall take place during normal business hours at KONICA's location and shall be conducted in a manner that does not unreasonably disrupt the business operations of KONICA. PEERLESS shall bear the expense of any such audit unless such audit reveals that the amount paid by KONICA hereunder with respect to any calendar quarter shall be more than five percent (5%) less than the amount that should have been paid by KONICA, in which event (i) the costs of such audit shall be borne by KONICA and (ii) PEERLESS may thereafter elect to conduct audits twice annually. Except in connection with any efforts to obtain payment due hereunder or with any litigation between the Parties, and except as may reasonably be required to comply with applicable law or disclosure requirements, PEERLESS shall hold in confidence and not disclose any of KONICA's confidential information acquired by PEERLESS in any audit conducted pursuant to this Paragraph 12.3. 13. Assignment, Sale or Transfer. Except as set out in Paragraph 6.3 above, neither PEERLESS nor KONICA may assign, sell or transfer this Agreement or any obligations or rights herein, including without limitation rights or duties of performance, or subcontract any obligations or duties of performance hereunder without the other Party's prior written consent, which consent may be subject to certain contractual limitations, but which consent shall not be unreasonable withheld. Any attempt to assign, sell or transfer this Agreement shall be null and void. Such prohibition on assignment, sale and transfer shall also apply to any merger of KONICA or PEERLESS with or into another entity, or any transactions) pursuant to which any entity or person (including any of their respective subsidiaries and affiliates) first acquires after the date of this Agreement, directly or indirectly, an aggregate amount of fifty percent (50%) or more voting control or fifty percent (50%) or more of the equity Securities ("Control") of KONICA or PEERLESS (or of any entity directly or indirectly having Control of KONICA or PEERLESS) or by contract or otherwise obtains the right to appoint at least fifty percent (50%) of the Board of Directors of KONICA or PEERLESS (or any entity directly or indirectly having Control of KONICA or PEERLESS), except that neither Party may withhold its consent to an assignment, sale or transfer arising from any transaction(s) described in this sentence unless (i) the assignee or entity acquiring Control of KONICA or PEERLESS is a competitor or (ii) it determines that the assignment or change of Control might jeopardize its ability to protect its proprietary rights. For purposes of this Section 13, the term "affiliates" shall be defined as provided in the Securities Act of 1933 and the rules and regulations promulgated thereunder. 14. Announcements 14.1 Marketing Materials KONICA's obligations to disclose in its advertisements, press releases, and sales or technical documentation ("Marketing Literature"), its use of Licensed Products are set forth in Attachment # 1 and each Licensed Software Addendum. - -------------------------------------------------------------------------------- 14.2 Press Releases and Promotions. Upon execution of this Agreement, PEERLESS may, after receiving KONICA's written approval, which shall not be unreasonably withheld, disclose in any PEERLESS advertisement or other promotional material that KONICA is a PEERLESS customer. Further, once KONICA has issued a public statement announcing an Authorized KONICA Device incorporating any of the Licensed Products hereunder, PEERLESS may also disclose in any PEERLESS advertisement or other promotional material naming KONICA and the technology licensed to KONICA for that Authorized KONICA Device, provided that PEERLESS shall not disclose in such press release any other details about KONICA's products without KONICA's prior written approval. The Parties may disclose information in order to comply with United States securities laws. KONICA agrees to consult with PEERLESS prior to any announcement or press release pertaining to the Licensed System to insure correct Trademark usage and accuracy associated with the description of PEERLESS Materials. 14.3 Limited Right of Use. PEERLESS grants KONICA a non-exclusive, limited right to use its trademarks, trade names, and other marketing names solely for the purpose of accomplishing the purposes of this Section 14. KONICA grants PEERLESS a non-exclusive, limited right to use its trademarks, trade names, and other marketing names solely for the purpose of accomplishing the purposes of this Section 14. 14.4 Marketing Effort. KONICA agrees to use commercially reasonable efforts to (a) promote the Licensed Systems, and (b) undertake the following marketing programs or such marketing programs described in the applicable Licensed System Addendum: 14.4.1 Press Releases. KONICA agrees to allow PEERLESS to review all announcements and press releases pertaining to Licensed Systems prior to their release to the public or the press, and to incorporate all changes that PEERLESS may reasonably request to ensure correct Trademark usage and accuracy of content. 14.4.2 Trade Shows. KONICA agrees to make best effort to prominently display the Licensed System, using the Adobe PostScript logo or other trademarks designated by Adobe, at all trade shows provided by KONICA Corporation where KONICA displays printer products, and to clearly identify the Licensed System as an Adobe PostScript product at such shows. 14.4.3 Adobe PostScript Logo. KONICA agrees to use the Trademarks (including the Adobe PostScript logo) in accordance with EXHIBIT C ("Use of Adobe Trademarks") attached herein. 14.4.4 Adobe Marketing Materials. If Adobe either directly or through PEERLESS provides KONICA with any printed marketing materials that describe to End Users the use and benefits of Adobe Software, including any End User registration materials, KONICA agrees to make best effort to distribute such materials with each Licensed System or applicable Licensed System component distributed by KONICA after confirmation of contents by KONICA hereunder. KONICA makes best effort to reproduce (e.g., on CD-ROM media) and distribute as set forth herein, and at KONICA's expense, any such materials provided by Adobe to KONICA electronically. 14.4.5 Direct Mail. Upon Adobe's request, KONICA will allow Adobe to do "blind mailings" regarding Adobe's products to KONICA's registered End Users. Conversely, Adobe will allow KONICA to do "blind mailings" concerning Licensed Systems to Adobe's registered end-users. 14.4.6 Point-of-Purchase. Upon Adobe's request, KONICA agrees to consult with Adobe in the development of applicable product brochures and other marketing materials related to Licensed Systems. If Adobe supplies the POP materials to KONICA for distribution, KONICA will make best efforts to use the POP materials in its reseller promotions based on acceptance of reseller. 14.4.7 Web Site. The Parties agree to implement mutually acceptable co-marketing activities utilizing each company's World Wide Web (the "Web") site. Such activities will include, but will not necessarily be limited to, the following: 14.4.7.1 KONICA Site. PEERLESS will provide to KONICA content describing the Adobe PostScript technology and its features and benefits. KONICA agrees to include such PEERLESS-provided content on its external Web site upon KONICA's acceptance of such contents. The Parties agree to promptly resolve any content and/or style disputes in good faith. KONICA shall make best effort to prominent use of the Adobe PostScript logo (or other such logo as Adobe may designate from time to time) on screen/page of each product which uses Licensed Adobe PostScript technologies. KONICA shall also provide a link on its Web site where Licensed Systems are promoted, to the target page at PEERLESS's Web site that contains generic information and education about the PostScript technology upon request from PEERLESS. Agreement by - -------------------------------------------------------------------------------- KONICA to link to such PEERLESS Web site is contingent on the target Web page (URL) containing only generic PostScript information (i.e., no KONICA-specific PostScript information). 14.4.7.2 Adobe Web Site. Adobe will provide a link on its Web site for the PostScript technology to the page on KONICA's site where the Licensed Systems are promoted. Agreement by Adobe to link to KONICA's Web site is contingent on the URL not containing any information about technology that competes with the PostScript technology, the names of any vendors of such competing technology, or links to other Web sites containing any such information. 14.3 Adobe Marketing Limitations. With respect to any Clone Products which KONICA develops or markets, KONICA agrees that it will not exploit its access to the Adobe Information, its relationship with PEERLESS, or the existence in its product line of Licensed Systems containing PostScript software to promote or legitimize Clone Products. Furthermore, KONICA agrees to use best efforts to distinguish Licensed Systems from Clone Products when displaying or referring to Licensed Systems in advertisements, catalogs, brochures and at trade shows by (a) identifying the Licensed Systems prominently and exclusively with the Adobe PostScript logo in such proximity that the viewer is unlikely to associate the PostScript logo or any Adobe Trademark with the Clone Products, and (b) not associating the Adobe Trademarks with any Clone Product in advertising, press releases, and other promotional and marketing materials. 14.4 Conformance to Marketing Guidelines. At least thirty (30) days prior to First Commercial Shipment of Revised Object for a particular Licensed System, and from time to time thereafter at PEERLESS's request, KONICA agrees to provide to PEERLESS with copies of all marketing materials related to such Licensed System as proof of implementation of the above marketing guidelines. PEERLESS shall have fifteen (15) days from receipt of such materials to review and approve such materials. In the event that PEERLESS does not provide KONICA with comments to such materials within such fifteen-(15) day period, PEERLESS shall be deemed to have approved such materials. 15. Export Controls. KONICA shall comply with any and all United States export regulations, rules or orders now in effect or that may be promulgated from time to time that govern or relate to any export of any PEERLESS Materials, including without limitation any Authorized KONICA Device incorporating any PEERLESS Material. KONICA shall comply with any and all United States export regulations, rules or orders now in effect or that may be promulgated from time to time that govern or relate to any export of any PEERLESS Deliverables. KONICA shall comply with the U.S. Foreign Corrupt Practices Act and all applicable export laws, restrictions and regulations of the U.S. Department of Commerce, the U.S. Department of Treasury and any other U.S. or non-U.S. agency or authority. KONICA shall not export or re-export or allow the export or re-export of any product, technology or information it obtains or learns pursuant to this Agreement in violation of such law, restriction or regulation, including, without limitation, export or re-export to any country subject to U.S. trade embargoes, or any party on the U.S. Export Administration Table of Denial Orders or the U.S. Department of Treasury List of Specially Designated Nationals or to any prohibited destination in any of the County Groups specified in the then current Supplement Number 1 to part 740 of the Commerce Control List specified in the then current Supplement Number 1 to part 738 of the U.S. Export Administration Regulations or any successor supplement or regulations. KONICA shall obtain and bear all expenses relating to any necessary licenses and/or exemptions with respect to the export or re-export of any Authorized KONICA Device incorporating any PEERLESS Material to any location in compliance with all applicable laws and regulations. If KONICA is involved in a transaction that gives KONICA reason to suspect that any product, technology or information it obtains or learns pursuant to this Agreement will be exported, re-exported or diverted in violation of any such laws, restrictions or regulations (including, without limitation. knowledge of suspect end users, abnormal transaction circumstances, or any other Bureau of Export Administration "red flag" indicators), then KONICA will take appropriate steps to terminate such transaction, notify the correct U.S. agency and give notice to PEERLESS. 16. Government Data Rights 16.1 U.S. Government End Users. The Licensed Products are provided to KONICA with RESTRICTED RIGHTS with respect to distribution or licensing to the United States of America, its agencies and/or instrumentalities (the "Government"). Use, duplication or disclosure by the Government is subject to restriction as set forth in subsections (a) through (d) of the Commercial Computer Software Restricted Rights clause at FAR 52.22719, and subsection (c)(1)(ii) of the Technical Data and Computer Software clause at DFAR 252.227-7013, or as set forth in the particular department or agency regulations or rules which provide PEERLESS protection equivalent to or greater than the above-cited clause. Under no circumstances shall PEERLESS be obligated to comply with any Governmental requirements regarding the submission of or the request for exemption from submission of cost or pricing data or cost accounting requirements. 16.2 Distribution of Licensed System. When distributing a Licensed System product to a U.S. Government End User, KONICA shall identify the Revised Object, Font Programs, Host Software and related documentation as a "commercial item," as that term - -------------------------------------------------------------------------------- is defined at 48 C.F.R. 2.101, and more specifically shall be identified as "commercial computer software" and "commercial computer software documentation," as such terms are used in 48 C.F.R. 12.212. Consistent with 48 C.F.R. 12.212 and 48 C.F.R. 227.7202-1 through 227.7202-4, KONICA will provide the Revised Object, Font Programs, Host Software and related documentation to U.S. Government End Users (a) only as a commercial end item and (b) with only those rights as are granted to all other End Users pursuant to the terms and conditions herein. 17. Dispute Resolution 17.1 Disputes. Any dispute between KONICA and PEERLESS either involving this Agreement or a Licensed Software Addendum shall initially be treated as provided in this Section 17. 17.2 Attempts to Resolve. Upon either Party's written request, each Party will appoint a designated representative. The representatives shall discuss and negotiate in good faith to attempt to resolve the dispute without formal proceedings. The format for the discussion is left to the discretion of the representatives. The representatives' decisions are not binding on either Party and the failure of the representatives to reach any decisions shall not be held against any Party. 17.3 Equitable Relief. It is understood and agreed that one Party's remedies at law for a breach by the other Party of its obligations under may be inadequate. Notwithstanding any other provisions of this MTLA, breach of the provisions of this Agreement by KONICA of the terms and conditions set forth herein will cause PEERLESS and/or Adobe irreparable damage for which recovery of money damages would be inadequate, and that PEERLESS and/or Adobe shall therefore be entitled to obtain equitable relief by a court of law (including without limitation injunctive relief and specific performance) without a requirement to post a bond, in addition to all other remedies provided under this Agreement or available to the Parties at law or otherwise to protect PEERLESS and/or Adobe's rights under this Agreement in addition to any and all remedies available at law. In the event KONICA continues to distribute the Licensed Products, the Licensed Systems, Revised Object, Font Programs, Host Software, or any portion thereof after its right to do so has terminated or expired, PEERLESS and/or Adobe shall also be entitled to injunctive relief, including, without limitation, an order directing that any copies of the Licensed Products, Licensed Systems, Revised Object, Font Programs, Host Software, or any portion thereof KONICA attempts to import into any country or territory be seized, impounded and destroyed by Customs officials in order to prevent such importation. 18. Miscellaneous 18.1 Notices. All notices or other communications required hereunder shall be in writing and delivered personally or sent by certified mail, return receipt requested, by facsimile machine, or by a reputable courier service to the Parties at the addresses set forth below, or at such other addresses as shall be designated in writing from time to time by either Party to the other in accordance with this Paragraph 18.1. All notices to KONICA shall be sent to: KONICA Corporation Tel: (81) No.26-2 Nishishinjuku 1-chome FAX: (81) Sinjuku-ku Tokyo Japan Attention: All notices to PEERLESS shall be sent to: PEERLESS Systems Corporation Tel:(310) 536-0058 2381 Rosecrans Avenue FAX: (310) 536-0908 El Segundo, CA 90245 FAX: (310) 297-3142 Attention: Director of Business Development Such notice shall be effective on the sixth business day following deposit thereof in the mail (via first class air mail), provided that it shall be effective on the third business day following any such deposit for express delivery, and shall be effective upon receipt if delivered personally or via facsimile. - -------------------------------------------------------------------------------- 18.2 Agreement. This Agreement, Attachment # 1 and any Amendments and/or Licensed Systems Addenda thereto constitute the entire understanding and agreement between PEERLESS and KONICA with respect to the transactions contemplated herein and supersede any and all prior or contemporaneous oral or written communications with respect to the subject matter hereof (other than any contemporaneous maintenance agreement executed by the Parties), all of which are merged herein. This Agreement shall not be modified, amended or in any way altered except by an instrument in writing signed by authorized representatives of both PEERLESS and KONICA. Except as specifically provided herein, no remedy available to either Party hereunder or relating hereto shall be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. No waiver of any provision of this Agreement or any rights or obligations of either Party hereunder shall be effective, except pursuant to a written instrument signed by the Party or Parties waiving compliance, and any such waiver shall be effective only in the specific instance and for the specific purpose stated in such writing. This Agreement shall be binding on the Parties, their subsidiaries, Board of Directors, officers, employees, subsidiary companies, affiliates, contractors, successors and assigns. 18.3 Force Majeure. Neither Party shall be responsible for delays nor failures in performance hereunder to the extent that such Party was hindered in its performance by any act of God, civil commotion, labor dispute, or any other occurrence beyond its reasonable control. 18.4 No Joint Venture. Nothing contained herein shall be deemed to create a joint venture or partnership or agency relationship between PEERLESS and KONICA. Neither Party shall have the right or authority to, and each Party shall not, assume or create any obligation or responsibility, express or implied, on behalf of or in the name of the other Party or bind the other Party in any manner. Nothing set forth herein shall be deemed to confer upon any person or entity other than the Parties hereto a right of action either under this Agreement or in any manner whatsoever. 18.5 Independent Development. Nothing in this Agreement shall preclude KONICA from independently developing, acquiring or marketing materials which are not derivative of the Licensed Products, but which contain ideas and concepts similar to those in the Licensed Products. 18.6 Severability. If any provision hereof is found invalid or unenforceable pursuant to judicial decree or decision, the remainder of this Agreement shall remain valid and enforceable according to its terms. Without limiting the foregoing, it is expressly understood and agreed that each and every provision of this Agreement which provides for a limitation of liability, disclaimer of warranties, indemnification of a Party or exclusion of damages or other remedies is intended by the Parties to be severable and independent of any other provision and to be enforced as such. Further, it is expressly understood and agreed that if any remedy hereunder is determined to have failed of its essential purpose, all limitations of liability and exclusions of damages or other remedies set forth herein shall remain in effect. 18.7 Controlling Law and Jurisdiction. This Agreement shall be construed and enforced in accordance with the laws of the United States of America and the State of California applicable to contracts wholly executed and wholly to be performed therein. Any action or proceeding brought by KONICA or PEERLESS against the other arising out of or related to this Agreement shall have as the court of competent jurisdiction the United States District Court located in the Central District of California, Southern Division or a state court located in the County of Orange, State of California, and KONICA hereby submits to the non-exclusive in personam jurisdiction of such courts for purposes of any such action or proceeding. Where this Agreement and any Licensed Software Addendum hereto is silent as to an issue raised by either Party, the controlling law in resolving that issue is United States law. The Parties agree that the International Regimes, including but not limited to the United Nations Convention On Contracts For The International Sale of Goods, and Supernational Regimes, including but not limited to NAFTA, shall not apply to this Agreement or the Addenda thereto. Part18.8 Attorneys' Fees. The prevailing Party in any action or proceeding between PEERLESS and KONICA arising out of or related to this Agreement shall be entitled to recover from the other Party all of its costs and expenses including, without limitation, its reasonable attorneys' fees incurred in connection with such action, including any appeal of such action. 18.9 Survival. The terms, provisions, representations, and warranties contained in this Agreement that by their sense or context were meant to survive termination of this Agreement shall so survive. //End - -------------------------------------------------------------------------------- EXHIBIT A INTELLECTUAL INDEMNIFICATION TERRITORIES OUTSIDE OF THE U.S.A. Albania Estonia Luxembourg Singapore Andorra Finland Macedonia Slovak Republic Argentina France Malaysia Slovenia Australia Germany Malta South Africa Austria Greece Mexico South Korea Belgium Guatemala Monaco Spain Bolivia Guyana Montenegro Sweden Bosnia Honduras Netherlands Switzerland Brazil Hong Kong New Zealand Taiwan Bulgaria Hungary Norway Thailand Canada Iceland Panama Turkey Chile India Paraguay United Kingdom China Indonesia Peru Uruguay Columbia Ireland Philippines The Vatican Costa Rica Israel Poland Venezuela Croatia Italy Portugal Vietnam Czech Republic Japan Romania The Countries of the CIS Denmark Latvia Saudi Arabia Ecuador Liechtenstein San Marino El Salvador Lithuania Serbia ATTACHMENT #1 TO MASTER TECHNOLOGY LICENSE AGREEMENT BETWEEN PEERLESS SYSTEMS CORPORATION AND KONICA CORPORATION This Attachment #1 to the Master Technology License Agreement (hereinafter "Attachment #1") entered into herein by and between KONICA Corporation, a Japanese corporation, having its principal office at No.26-2 Nishishinjuku 1-chome, Sinjuku-ku Tokyo, Japan ("KONICA") and PEERLESS Systems Corporation, a Delaware corporation, with offices at 2381 Rosecrans Avenue, El Segundo, California, 90245, USA ("PEERLESS"). In the context of this Agreement, KONICA may also refer to a KONICA affiliate or subsidiary that has executed an Amendment to the MTLA indicating its acceptance of the terms and conditions set out herein. This Attachment #1 establishes additional terms and conditions which the Parties have established between themselves regarding the licensing by PEERLESS to KONICA of PEERLESS Software Developer Kits ("SDK") that contain Adobe Systems Inc. Source Code. This Attachment #1 contains terms which impact Adobe's rights or obligations and any term or condition otherwise than as explicitly stated in this Attachment # 1 or Exhibits thereto, or which differs in any material way with the terms of the corresponding herein, shall require Adobe's prior written approval to be enforceable. 1. CONTRACT OBLIGATIONS. 1.1 Third Party Beneficiary. KONICA is hereby put on notice and agrees that ADOBE SYSTEMS INCORPORATED, a Delaware corporation located at 345 Park Avenue, San Jose, California 95110-2704 ("Adobe") is a third-party beneficiary to the Master Technology License Agreement ("MTLA") to the extent that the MTLA and Attachment # 1 contains provisions which relate to KONICA's use of the Adobe Information as incorporated in the PEERLESS deliverables licensed and delivered to KONICA herein. Such provisions are made expressly for the benefit of and are enforceable by Adobe in addition to by PEERLESS. KONICA shall also ensure that Adobe is a named third party beneficiary as to any use of the Adobe Information in any agreement authorizing an OEM Remarketer Customer to distribute Licensed Systems as set forth in this Agreement. 1.2 Assignment. KONICA's rights and obligations with regard to Adobe Information and Adobe Trademarks granted hereunder may not be assigned by KONICA in whole or in part without the prior written approval of PEERLESS. For the purposes of this Section, a change in the persons or entities who control fifty percent (50%) or more of the equity securities or voting interest of KONICA shall be considered an assignment of KONICA's rights and obligations. 1.3 Termination of Rights in Adobe Information. KONICA's rights and licenses to use the Adobe Information under this MTLA shall terminate effective immediately in the event of any material breach by KONICA of its obligations under this MTLA and failure to remedy such breach within thirty (30) days after receiving notice of said breach from either PEERLESS or Adobe. An uncured material breach by PEERLESS of its obligations to Adobe would have a material effect on KONICA's right and licenses in regards to products not previously designated or authorized under a License System Addendum to this MTLA. 2. LICENSE RESTRICTIONS. 2.1 Revised Object License Restrictions. Commercial distribution or use (other than for development) of Revised Object shall be limited to versions in ROM form, or encrypted versions executable from RAM, protected in a manner approved by Adobe in writing or in accordance with Section 4.4 ("Protection Mechanisms") below. 2.2 Font Program License Restrictions. KONICA's license under the PEERLESS OEM Agreement will terminate upon termination of the agreement between Adobe and the Trademark owner, if any, pertaining to such Font Program, at which time Adobe shall have the right to substitute a Font Program for an equivalent Typeface. 2.2.1 PostScript 3 Minimum Font Program Requirements. KONICA agree that all Licensed Systems containing PostScript 3 Software distributed hereunder shall include at a minimum the Font Programs described below. 2.2.1.1 For a "Roman Version(s)" of a Licensed System, the Extended Roman Font Program Set identified EXHIBIT B ("Extended Roman Font Program Set") attached hereto. 2.2.1.2 For a "Japanese Version(s)" of a Licensed System, the Extended Roman Font Program Set identified in Section 2.2.1.1 above, and the Font Programs for Japanese Typefaces identified in Exhibit B-1 Section 1 ("Font Programs for Japanese Typefaces") attached hereto, in the minimum configuration specified in a Licensed System Addendum. 2.2.1.3 For a "Chinese Version(s)" of a Licensed System, distributed for use in the People's Republic of China, Taiwan or Hong Kong, the Extended Roman Font Program Set identified in Section 2.2.1.1 above, and the Font Programs for - -------------------------------------------------------------------------------- Chinese Typefaces identified in EXHIBIT B-1 Section 2 ("Font Programs for Chinese Typefaces") attached hereto, in the minimum configuration specified in a Licensed System Addendum. 2.2.1.4 For a "Korean Version(s)" of a Licensed System, distributed for use in Korea, the Extended Roman Font Program Set identified in Section 2.2.1.1 above, and the Font Programs for Korean Typefaces identified in EXHIBIT D-1 Section 3 ("Font Programs for Korean Typefaces") attached hereto, in the minimum configuration specified in a Licensed System Addendum. 2.2.2 Adobe-supplied Wingdings(R) Typeface Requirements. KONICA shall reproduce, have reproduced and distribute a Font Program for the Wingdings(R) Typeface supplied by Adobe hereunder (the "Wingdings Font Program") only in the Adobe Compact Font Format ("CFF") or TrueType Format and either (i) embedded in ROM or on a hard disk that is bundled with a Licensed System or (ii) as part of any other Adobe provided host-based component of a Licensed System. In the event that the Wingdings Font Program is provided to KONICA in CFF, KONICA shall treat the fact as Adobe Support Information pursuant to Section 4.2 of EXHIBIT A ("Secure Procedures for Handling Adobe Support Information")), and KONICA shall, not disclose such fact to its distributors, resellers or End Users, provided however that KONICA may disclose or advertise that the Wingdings Font Program is in a compressed format, where applicable. 2.2.3 Adobe-supplied Heisei Japanese Typeface Requirements. KONICA shall include the following notice in documentation and materials accompanying any product that refers to the Font Programs for Japanese Typefaces in Section 1(b) ("Heisei Japanese Typefaces") of EXHIBIT B-1 ("Non-Roman Font Programs"): "The Heisei Fonts (list the applicable fonts by name) have been licensed for use from the Japan Standards Association Font Design Center. Unauthorized reproduction as a font is prohibited." KONICA is not a member of the Japan Standards Association Font Design Center so Adobe is required to notify the Font Design Center of this license to KONICA prior to First Commercial Shipment of the Heisei Japanese Typefaces with a Licensed System. KONICA consents to such notification. 2.3 Adobe Driver Software Restrictions. In connection with the delivery of any Adobe Driver Software, PEERLESS may supply KONICA with development tools such as plug-in and localization kits to allow KONICA to make limited modifications and/or localize the Adobe Driver Software. KONICA agrees that it (a) shall use such tools solely to localize or customize the Adobe Driver Software for use by End Users in conjunction with Licensed Systems, (b) shall not change the name of any Adobe Driver Software file or Adobe Driver Software icon without Adobe's prior written consent, (c) shall make only such modifications as are permitted by use of such tools in the normal and intended manner, and (d) shall ensure that the Adobe Driver Software, and any Derivative Works thereof, are licensed under a KONICA End User Agreement containing the minimum terms described in ANNEX 1 to this Exhibit hereto. "Adobe Driver Software" means driver software and accompanying utility files and installation tools, all in object code form, which enable application programs to communicate with printers containing PostScript software from Adobe, including any enhancements, modifications or localizations provided by Adobe and any localizations or modifications made by KONICA, through its use of the applicable Adobe Development Tools (subject to KONICA's ownership of such modifications as set forth in Section 3.1 ("License to PEERLESS Modifications") of the Agreement). 2.4 End User Documentation Restrictions. Subject to the modifications expressly allowed herein, KONICA agrees to distribute the End User Documentation in its entirety as provided to KONICA by PEERLESS with the applicable Host Software. KONICA agrees that it will not modify or delete any copyright notices or other proprietary notices included in the End User Documentation as provided to KONICA by PEERLESS. Except for the specific licenses granted in this PEERLESS OEM Agreement, KONICA shall have the same rights and obligations hereunder with respect to End User Documentation as those for Host Software in object code form. 2.5 PPD File Restrictions. KONICA agrees to bundle the corresponding PPD File with each copy of the Revised Object it distributes hereunder. 2.6 PostScript Language Specification Restrictions. KONICA shall not make any PostScript Language Specification available for general distribution or resale through the retail trade, either through KONICA or KONICA's publisher. KONICA agrees that no right is granted herein to reproduce Addison-Wesley's foreign language versions of the PostScript Language Specification. KONICA's right to sublicense its customers (excluding End Users) shall be solely to reproduce, in whole or in part, and distribute - -------------------------------------------------------------------------------- the PostScript Language Specification in accordance with the same terms and conditions imposed on KONICA in this Section. Such customers shall not have the right to modify the PostScript Language Specification received from KONICA. 2.7 Limited Functional Scope of License. KONICA is not permitted to grant an End User the right to use the Revised Object (a) on more than one CPU, (b) to control the output from output devices other than Designated Output Devices, or (c) to generate output for more than one Designated Output Device at a time, without PEERLESS's prior written approval. 2.8 Changes to Adobe Software. In view of the desire of PEERLESS, KONICA and Adobe to establish and maintain an industry standard PostScript interpreter, KONICA shall not make, without the express written permission of PEERLESS, any changes or additions to, enhancements in, or deletions from, the Adobe Software, if such changes or enhancements would in any way change the PostScript language imaging model, syntax, semantics, or functionality of the PostScript language. 3. LICENSES GRANTED BY KONICA. 3.1 KONICA Modifications. For any modifications made by KONICA to the Adobe Information which PEERLESS then supplies to Adobe in source code form and for any localizations created by KONICA pursuant to the licenses hereunder, KONICA shall be deemed to have granted to Adobe a perpetual, worldwide, royalty-free, fully paid-up license to use, modify, reproduce and distribute such source code, and any object code version thereof, and any localizations, and the right to sublicense all such licensed rights through multiple tiers of distribution. Subject to any limitations or prohibitions in Adobe's contracts with its third party vendors, PEERLESS shall own all modifications (including localizations) made by KONICA pursuant to the licenses hereunder to the Adobe Software, Other Adobe Software and Host Software, provided that any such modifications or localizations shall be deemed to be Derivative Works based upon the underlying Adobe Information and shall be subject to all provisions of this MTLA, Attachment # 1 or Licensed Software Addendum applicable to such underlying Adobe Information. Except as explicitly stated herein, Adobe shall own any other modifications to the Adobe Information. 3.2 PPD File. KONICA shall be responsible for creating and delivering to PEERLESS, which in turn shall be delivered to Adobe, the PPD File for each Licensed System prior to PEERLESS's and/or Adobe's certification or testing of the applicable Revised Object pursuant to this Agreement, and providing any updated version of a PPD File in a timely manner following the availability of any updated version except those updates solely involving modifications for localization. KONICA shall be deemed to have granted to Adobe a perpetual, worldwide, royalty-free, fully paid-up license, and the right to sublicense all such licensed rights through multiple tiers of distribution to use, reproduce, modify and distribute any PPD Files, and any updates thereto, which KONICA creates for each Licensed System. 4. PROTECTION OF PROPRIETARY INFORMATION. 4.1 Adobe Information and Adobe Support Information. Adobe and its suppliers are the sole and exclusive owners of all rights, title and interest, including all trademarks, copyrights, patents, trade names, trade secrets, and other intellectual property rights to the Adobe Information. Except for the rights expressly enumerated herein, KONICA is not granted any rights to patents, copyrights, trade secrets, trade names, trademarks (whether or not registered), or any other rights, franchises or licenses with respect to the Adobe Information, and KONICA agrees that it will not exceed the scope of the licenses granted herein. KONICA agrees to protect the Adobe Support Information in accordance with EXHIBIT A ("Secure Procedures for Handling Adobe Support Information") the terms of which are hereby incorporated by reference herein. In addition, KONICA specifically acknowledges and agrees that other than as expressly set forth herein, KONICA shall not modify the Adobe Information, and shall in no instance attempt to modify Adobe Information provided solely in object code form. KONICA agrees that it will not attempt to alter, disassemble, decrypt, reverse engineer or decompile the Adobe Information that is provided solely in object code form. A failure by KONICA to protect Adobe Support Information in accordance with the provisions of Section 4 ("Protection of Proprietary Information") herein shall constitute a material breach by KONICA and KONICA shall be liable to Adobe and PEERLESS for any damages or losses arising out of such non-compliance. 4.2 Adobe Trademarks. Any use of the Trademarks by KONICA or KONICA's Remarketer Customer must be pursuant to terms substantially equivalent to those set forth in EXHIBIT C ("Use of Adobe Trademarks") and Section 2.2.7 ("Trademark License") and this Paragraph 4.2. The sublicense rights to KONICA shall include the right to use the Trademarks on Licensed Systems and in KONICA's advertising and printed materials for the Licensed Systems, including the right to sublicense those same rights to OEM's Remarketer Customers, for distribution in all countries (except India, Pakistan, Singapore and the People's Republic of China or in any other jurisdiction where trademark sublicensing is legally prohibited or not recognized) pursuant to terms substantially equivalent to those set forth in EXHIBIT C ("Use of Adobe Trademarks"). If necessary, Adobe will grant directly to KONICA or KONICA's Remarketer Customers a nonexclusive, royalty-free license to use the Trademarks on Licensed Systems, and in advertising and printed materials for Licensed Systems, for distribution in India, Pakistan, Singapore and the - -------------------------------------------------------------------------------- People's Republic of China, or in any other jurisdiction where trademark sublicensing is legally prohibited or not recognized, under a written agreement between Adobe and KONICA or KONICA's Remarketer Customer. 4.3 LZW Patent Notice. KONICA shall include and shall require its OEM Remarketer Customer to include the following notice that the Licensed System includes an implementation of LZW licensed under U.S. Patent 4,558,302: "This product contains an implementation of LZW licensed under U.S. Patent 4,558,302." This notice must be displayed on KONICA's or OEM Remarketer Customer's product packaging, End User Agreement, or Licensed System documentation in a location reasonably visible to the KONICA and End Users. 4.4 Protection Mechanisms. KONICA shall employ copy protection, serialization, encryption or any other protection mechanism as may be specified in the applicable Licensed System Addendum to restrict or monitor unauthorized use of Adobe Software, Other Adobe Software and Font Programs licensed hereunder ("Protected Software"). The protection mechanism for Font Programs for Japanese, Korean and Chinese Typefaces will normally be provided by PEERLESS from Adobe and may include encryption as well as Copy Protection. "Copy Protection" shall mean a mechanism that ensures that the applicable Licensed System will implement a unique read-only PostScript Language License ID parameter to which each font configuration will be keyed. If the protection mechanism is supplied by PEERLESS as delivered from Adobe or its supplier, KONICA will use all reasonable means to ensure that such protection mechanism is not removed, subverted or disabled. In the event that it comes to Adobe's attention that any protection mechanism distributed by KONICA hereunder has been violated and Adobe reasonably believes that there is unlicensed use of the Protected Software caused by such violation, KONICA will supply a new protection mechanism within thirty (30) days of notification by Adobe. If Adobe can demonstrate that such corrective action is unsuccessful in resolving the problem, KONICA will take other action as required by Adobe, including stopping shipment of the Protected Software, until corrective measures are successfully implemented. If the KONICA's Licensed System is located in a network environment with Protected Software located on a server, KONICA shall employ a protection mechanism which permits End Users access to Protected Software only if such use is permitted in the license purchased by the End User from KONICA. 4.5 End User License. KONICA will take all steps necessary to protect Adobe's proprietary rights in the Adobe information and to ensure that each copy of the Revised Object, Font Programs and Host Software distributed by KONICA to an End User, whether directly or through KONICA's usual distribution channels, will be accompanied by a localized copy of KONICA's or OEM Remarketer Customer's standard software license agreement applicable to such software (the "End User Agreement"). Such End User Agreement will include terms and conditions substantially equivalent to those set forth in ANNEX 1 ("Minimum Terms of End User Agreements") to this Attachment # 1 to this MTLA. The End User Agreement may be (a) a written agreement signed by the End User, or (b) a written agreement in the package containing the Revised Object, Font Programs and Host Software, or the user documentation for the Revised Object, Font Programs and Host Software, that is fully visible to the End User and that the End User accepts by opening the package. If PEERLESS in writing permits (based on Adobe's written permission to PEERLESS) KONICA, either directly or through its Remarketer Customer, to distribute Host Software in electronic form, KONICA shall ensure that upon the initial use of the Host Software, the End User is presented with a copy of the End User Agreement and is required to electronically accept the terms of the End User Agreement prior to accessing use of the functions of the Host Software. If KONICA is supplied Adobe Information by PEERLESS for distribution to End Users which is accompanied by an Adobe-supplied End User license, KONICA agrees to retain and to require its OEM Remarketer Customer to retain the End User license with the applicable Adobe Information distributed hereunder. If any such Adobe Information does not already include an End User license, KONICA or OEM Remarketer Customer shall include its own End User Agreement that complies with the requirements set forth in this Section with any such distribution. KONICA shall ensure that each component of Adobe Information that it or its OEM Remarketer Customer licenses to an End User as part of a compilation (for example, a CD-ROM software compilation) contains either an Adobe-Supplied End User License if applicable, or is protected under a KONICA or OEM Remarketer Customer-Supplied End User Agreement accompanying the compilation in accordance with the terms of this Section. KONICA shall ensure that such End User Agreement contains a provision stating that in case of conflict the terms of any individual End User license shall prevail over the terms of the End User Agreement. 4.6 Foreign Government Agreements. KONICA will take all reasonable steps in making proposals and agreements with foreign governments other than the United States which involve the Revised Object, Font Programs, Host Software and related documentation to ensure that Adobe's proprietary rights in such Revised Object, Font Programs, Host Software and related documentation receive the maximum protection available from such foreign government for commercial computer software and related documentation developed at private expense. 4.7 Patent Protection. 4.7.1 Adobe Patents. As used herein, "Adobe Patent Right" means any right arising under any United States or foreign patent now owned by, or later issued or assigned to Adobe, applicable to the Adobe Information. Adobe covenants that, to the extent that KONICA, KONICA's End Users, and KONICA's other direct and indirect customers of Revised Object (collectively - -------------------------------------------------------------------------------- "Customers") exercise the rights expressly granted to KONICA under this PEERLESS OEM Agreement, or which KONICA is authorized to grant to Customers herein, Adobe will not (a) assert any Adobe Patent Right against KONICA, (b) assert any Adobe Patent Right against Customers, or (c) require any additional fee or royalty from KONICA or Customers based upon any Adobe Patent Right. Except to the extent of such covenant not to assert any Adobe Patent Right, nothing contained herein shall be construed as conferring, by implication, estoppel, or otherwise, any license or right with respect to any Adobe Patent Right. 4.7.2 KONICA Patents. As used herein, "KONICA Patent Right" means any patent right arising under any United States or foreign patent issued or assigned to KONICA and having a filing date after the inventor had access to the Adobe Support Information in which (a) an inventor is (i) an employee of KONICA who has had access to the Adobe Support Information or (ii) an independent contractor who has had access to the Adobe Support Information and has assigned patent rights in the claimed invention to KONICA and (b) the techniques, algorithms or processes contained in the Adobe Support Information, or adaptations of such techniques, algorithms or processes are an essential element of the patented invention. Should any disputes arise as to whether any patent falls within the above definition of KONICA Patent Right, then KONICA and Adobe agree to submit to mutually acceptable alternative dispute resolution. KONICA Patent Right shall not include any patent applications filed three (3) years after termination or expiration of this Agreement. KONICA covenants that it will not (a) assert any KONICA Patent Right against Adobe or against its sublicensees or customers for products containing Adobe Support Information of a similar nature to that distributed by KONICA, or (b) require any fee or royalty from Adobe or such sublicensees or customers for the sale of such products based upon KONICA Patent Rights. Except to the extent expressed above, nothing contained herein shall be construed as conferring, by implication, estoppel, or otherwise any license or right with respect to any KONICA Patent Right. 4.8 Survival. KONICA's obligation to protect Adobe's proprietary rights as set forth in this Section 4 ("Protection of Proprietary Information") shall survive any termination of this MTLA. BOTH PARTIES HERETO ACKNOWLEDGE THAT THEY HAVE READ THIS AGREEMENT, ATTACHMENT A AND EXHIBITS THERETO, UNDERSTAND IT, AND AGREE TO BE BOUND BY THE TERMS AND CONDITIONS CONTAINED HEREIN. KONICA CORPORATION PEERLESS SYSTEMS CORPORATION By: By: /s/ Masatoshi Matsuzaki /s/ Cary A. Kimmel - ----------------------------------- ----------------------------------- (Authorized Signature) Authorized Signature) Name: Masatoshi Matsuzaki Name: Cary A. Kimmel Title: General Manager Title: Director of Business Development Date: January 16, 2000 Date: January 16, 2000 - -------------------------------------------------------------------------------- ANNEX 1 MINIMUM TERMS OF END USER AGREEMENTS This package may contain the following materials provided by Adobe Systems Incorporated ("Adobe") and its suppliers to Licensor: software included as part of the printing system, including PostScript(R) software and other Adobe software ("Printing Software"), the digitally-encoded machine-readable outline data encoded in the special format and in the encrypted form ("Font Programs"), other software which runs on a computer system for use in conjunction with the Printing Software ("Host Software"), and related explanatory written materials ("Documentation"). The term "Software" shall be used to describe Printing Software, Font Programs and/or Host Software and also include any upgrades, modified versions, additions, and copies of the Software. The Software is being licensed to Licensee under the terms of this Agreement. If Licensee declines to accept such terms, it is free to return the Software for a full refund of the license fee paid by Licensee for the Software, if any, provided Licensee does so before accepting the Software (in the manner provided by Licensor). Licensor grants to Licensee a non-exclusive sublicense to use the Software and Documentation, provided that Licensee agrees to the following: 1. PRINTING SOFTWARE. Licensee may use the Printing Software (in object code form only) and accompanying Font Programs (i) on a single output device where the device contains an embedded controller; OR (ii) for Printing Software which resides on a host computer, on up to the number of central processing units ("CPUs") authorized in a Licensed System Addendum for imaging to the licensed output device(s), solely for Licensee's own internal business purposes. 2. ROMAN FONT PROGRAMS. In addition to the license for Font Programs set forth in Section 1 ("Printing Software") above, Licensee may use Roman Font Programs and Adobe Type Manager(R) to reproduce weights, styles, and versions of letters, numerals, characters and symbols ("Typefaces") on up to five (5) computers for use with the Printing Software. Licensee may take a copy of a Roman Font Program Licensee has used for a particular file to a commercial printer or other service bureau, and such service bureau may use the Roman Font Program to process the file, provided such service bureau has informed Licensee that it has purchased or been granted a license to use that particular Roman Font Program. 3. HOST SOFTWARE. Licensee may install the Host Software in a single location on a hard disk or other storage device on one computer or such greater number of computers authorized in a Licensed System Addendum ("Permitted Number of Computers"), and, provided that the Host Software is configured for network use, install and use the Host Software on a single file server for use on a single local area network for either (but not both) of the following purposes: (i) permanent installation onto a hard disk or other storage device on up to the Permitted Number of Computers; or (ii) use of the Host Software over such network, provided the number of different computers on which the Host Software is used does not exceed the Permitted Number of Computers. Licensee may make one backup copy of the Host Software, provided Licensee's backup copy is not installed or used on any computer. The primary user of each computer on which the Host Software is installed or used may also install the Host Software on one home or portable computer. However, the Host Software may not be used on the secondary computer by another person at the same time the Host Software on the primary computer is being used. Notwithstanding the above restrictions, Licensee may install the Adobe Driver Software on any number of computers solely for use with one or more printing systems running the Printing Software. 4. Licensee may assign its rights under this Agreement to an assignee of all of Licensee's right and interest to such Software and Documentation ("Assignee") provided Licensee transfers to Assignee all copies of such Software and Documentation Assignee agrees to be bound by all of the terms and conditions of this Agreement. 5. The Software and Documentation are owned by Licensor and its suppliers, and its structure, organization and code are the valuable trade secrets of Licensor and its suppliers. The Software and Documentation are also protected by United States Copyright Law and International Treaty provisions. Licensee must treat the Software and Documentation just as Licensee would any other copyrighted material, such as a book. Licensee may not copy the Software or Documentation, except as set forth herein. Any copies of the Software that Licensee is permitted to make pursuant to this Agreement must contain the same copyright and other proprietary notices that appear on or in the Software. Licensee agrees not to modify, adapt or translate the Software and Documentation. 6. Licensee agrees that it will not attempt to alter, disassemble, decrypt, reverse engineer or decompile the Software, provided however, that to the extent local law grants Licensee the right to decompile the Software in order to obtain - -------------------------------------------------------------------------------- information necessary to render the Software interoperable with other software, Licensee shall first request prior written approval from Licensor who with the concurrence of the supplier of the Software may impose such reasonable conditions, including, but not limited to, a reasonable fee, on such use to ensure that owners' proprietary rights in the Software are protected. 7. Title to and ownership of the Software and Documentation and any reproductions thereof shall remain with Licensor and its suppliers. 8. Trademarks shall be used in accordance with accepted trademark practice, including identification of the trademark owner's name. Trademarks can only be used to identify printed output produced by the Software. Such use of any trademark does not give Licensee any rights of ownership in that trademark. The Trademarks are the property of the trademark owners identified by Licensor. 9. Except as stated above, this Agreement does not grant Licensee any intellectual property rights in the Software. 10. If this package contains, or, in connection with the acquisition of Host Software contained in this package Licensee receives, two or more operating environment versions of the Host Software (e.g., Macintosh(R) and Windows(R)), two or more language translation versions of the Host Software, the same Host Software on two or more media (e.g., diskettes and a CD-ROM), and/or Licensee otherwise receives two or more copies of the Host Software, Licensee's use of such versions shall not exceed the aggregate uses permitted herein for a single version of the Host Software. 11. Licensee may not rent, lease, sublicense, lend or transfer versions or copies of the Software Licensee does not use, or Software contained on any unused media, except as part of the permanent transfer of all Software and Documentation as described above. If Licensee acquires a Software upgrade, Licensee no longer has a license to use the previous version and all copies thereof, including copies installed on computers, must be destroyed. 12. NEITHER LICENSOR NOR ANY OF ITS REPRESENTATIVES MAKES OR PASSES ON TO LICENSEE OR ANY THIRD PARTY ANY WARRANTY OR REPRESENTATION ON BEHALF OF LICENSOR'S THIRD PARTY SUPPLIERS, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT. 13. IN NO EVENT WILL LICENSOR OR ITS SUPPLIERS BE LIABLE TO LICENSEE FOR ANY CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGES, INCLUDING ANY LOST PROFITS OR LOST SAVINGS, EVEN IF LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY THIRD PARTY. Some states or jurisdictions do not allow the exclusion or limitation of incidental, consequential or special damages, so the above limitations may not apply to Licensee. 14. This Agreement will be governed by the laws in force in the State of California excluding the application of its conflicts of law rules. This Agreement will not be governed by the United Nations Convention on Contracts for the International Sale of Goods, the application of which is expressly excluded. If any part of this Agreement is found void and unenforceable, it will not affect the validity of the balance of the Agreement, which shall remain valid and enforceable according to its terms. Licensee agrees that the Software will not be shipped, transferred or exported into any country or used in any manner prohibited by the United States Export Administration Act or any other export laws, restrictions or regulations and Licensee agrees that it will not export or re-export the Software or products produced therefrom in any form without the appropriate United States and foreign governmental licenses. This Agreement shall automatically terminate upon failure by Licensee to comply with its terms. 15. NOTICE TO GOVERNMENT END USERS: The Software is a "commercial item," as that term is defined at 48 C.F.R. 2.101, consisting of "commercial computer software" and "commercial computer software documentation," as such terms are used in 48 C.F.R. 12.212. Consistent with 48 C.F.R. 12.212 and 48 C.F.R. 227.7202-1 through 227.7202-4, all U.S. Government End Users acquire the Software with only those rights set forth herein. 16. Licensee is hereby notified that Adobe Systems Incorporated, a Delaware corporation located at 345 Park Avenue, San Jose, CA 95110-2704 ("Adobe") is a third-party beneficiary to this Agreement to the extent that this Agreement contains provisions which relate to Licensee's use of the Software, Font Programs, Typefaces and the trademarks licensed hereby. Such provisions are made expressly for the benefit of Adobe and are enforceable by Adobe in addition to Licensor. - -------------------------------------------------------------------------------- Adobe and PostScript are registered trademarks of Adobe Systems Incorporated. Macintosh is a registered trademark of Apple Computer, Inc. Windows is a registered trademark of Microsoft Corporation. - -------------------------------------------------------------------------------- EXHIBIT A TO ATTACHMENT #1 SECURE PROCEDURES FOR HANDLING ADOBE SUPPORT INFORMATION 1. DEFINITIONS. For the purposes of this Exhibit, the following definitions shall apply. 1.1 "Adobe Support Information Recipient" means KONICA in those instances of KONICA's receipt, use and license of the Adobe Support Information. 1.2 "Licensed Product" means (i) PEERLESS SDK or PEERLESS Revised Object deliverable as applied to PEERLESS, and (ii) Licensed System as applied to KONICA. 2. AUTHORIZED EMPLOYEES AND CONTRACTORS. KONICA agrees that it will not disclose all or any portion of the Adobe Support Information to third parties, with the exception of authorized employees ("Authorized Employees") and authorized contractors ("Authorized Contractors") (subject to KONICA having obtained authorization for use of such contractors in accordance with Section 3 ("Prior Approval of Contractors") below) who (i) require access thereto for a purpose authorized by this Agreement, (ii) have signed an employee or contractor agreement in which such employee or contractor agrees to protect third party confidential information and (iii) have received a notice of confidentiality prior to access to Adobe Support Information, and again upon any termination of such access, that contains at a minimum provisions substantially in accordance with the following: "Recipient has previously signed an agreement with Adobe Support Information Recipient pursuant to which Recipient has agreed to maintain the confidentiality of confidential information of Adobe Support Information Recipient and its suppliers (the `Confidential Information') and to use the Confidential Information solely for Adobe Support Information Recipient's benefit. The purpose of this notice is to apprise Recipient that Recipient will be receiving certain proprietary information of Adobe, including internal source code, interface specifications and related documentation for the PostScript software and related Adobe information, all of which is of a confidential nature and which contains valuable trade secrets, know-how, and proprietary information of Adobe (the `Adobe Support Information') and which constitutes Confidential Information under Recipient's agreement with Adobe Support Information Recipient. This is to inform Recipient that the Adobe Support Information cannot be used for any purpose except for the specific purposes which Adobe Support Information Recipient or Adobe authorize in writing and that Recipient is not authorized to disclose the Adobe Support Information to any person at any time except to employees of Adobe and to those Authorized Employees and Authorized Contractors which Adobe Support Information Recipient informs Recipient are authorized to receive such Adobe Support Information. All materials including, without limitation, programs, recorded information, documents, drawings, models, apparatus, sketches, designs, and lists furnished to Recipient by Adobe Support Information Recipient or Adobe which are designated in writing to be the property of Adobe remain the property of Adobe and must be returned to Adobe promptly at its request, together with any copies or modifications thereof." KONICA agrees that any breach by any Authorized Employees and Authorized Contractors of their obligations under such confidentiality agreements shall also constitute a breach by KONICA hereunder. 3. PRIOR APPROVAL OF CONTRACTORS. Notwithstanding the provisions in this Exhibit permitting Authorized Contractors to have access to Adobe Support Information, KONICA may not permit a contractor to come into contact with Adobe Support Information, or engage in the development of Licensed Products hereunder unless KONICA has first obtained such authorization in writing from Adobe. Adobe, in its sole discretion, may withhold such approval in the event that a contractor (or contractor's employer) to whom KONICA intends to disclose Adobe Support Information is engaged in Clone Product development, either for its own benefit or for the benefit of a third party, or if Adobe believes that the contractor may be engaged in similar product development, and KONICA cannot assure Adobe to its satisfaction that contractor, while engaged in supporting such development activities, will be able to refrain from commingling or sharing any portion of the Adobe Support Information with any such Clone Product development. - -------------------------------------------------------------------------------- 4. ADOBE SUPPORT INFORMATION. 4.1 KONICA shall ensure that all Adobe Support Information received from Adobe, and copies made thereof, will be properly marked or otherwise appropriately identified as Adobe Support Information before being made available to Authorized Employees and Authorized Contractors hereunder. 4.2 KONICA shall ensure that the same degree of care is used to prevent the unauthorized use, dissemination, or publication of the Adobe Support Information as KONICA uses to protect its own confidential information of a like nature, but in no event shall the safeguards for protecting such Adobe Support Information be less than a reasonably prudent business would exercise under similar circumstances. KONICA shall take prompt and appropriate action to prevent unauthorized use or disclosure of Adobe Support Information. 4.3 KONICA shall instruct Authorized Employees and Authorized Contractors not to copy Adobe Support Information on their own, and not to disclose Adobe Support Information to anyone not authorized to receive it. 4.4 Adobe Support Information shall be used and stored on a secure computer system (as described in Section 4.5 below) and in a secured area accessible only to Authorized Employees and Authorized Contractors and to other essential maintenance and housekeeping personnel at a Development Site(s). KONICA shall identify all Development Site(s) where Adobe Support Information is then currently used and stored upon request by Adobe or PEERLESS (if applicable). 4.5 "Secure Computer System" refers to a computer system used by KONICA to modify, compile, and assemble source code and link object code in conjunction with carrying out the development work contemplated herein and meeting the minimum requirements set forth below: (i) Adobe Support Information shall be installed and used only on a secure computer system. Access to the secure computer system will be controlled by password identification. KONICA will adopt a system security policy which implements a password protection scheme and other protection as needed to ensure that access is limited to Authorized Employees and Authorized Contractors and KONICA-designated security administrator responsible for systems maintenance. (ii) The secure computer system shall not be remotely accessible (e.g. by telecommunications) and firewalls shall be constructed to prevent access or download capability to a non-secured location. (iii) KONICA shall ensure that any Adobe Support Information that is being made available to other Development Site(s) is adequately protected against access or use while in transit to a secured area or secure computer system at another Development Site. 5. TRADE SECRETS. Adobe Support Information in object code, source code and hard copy printout form, including the techniques, algorithms, and processes contained in the Adobe Support Information which have been developed, acquired, or licensed by Adobe, or any modification or extraction thereof, constitute trade secrets of Adobe and/or its suppliers, and will be used by KONICA only in accordance with the terms of this Agreement. In addition to the specific measures required hereunder, KONICA will take all measures reasonably required to protect the proprietary rights of Adobe and its suppliers in the Adobe Support Information. If any Adobe Support Information in KONICA's possession is lost or stolen, KONICA (and PEERLESS) shall take all reasonable measures to recover such items, including but not limited to seeking timely injunctive relief in an applicable court of law to protect Adobe's proprietary right in such Adobe Support Information. KONICA agrees that it will not attempt to reverse engineer any portion of the Adobe Support Information that is provided to KONICA solely in object code form. 6. NO COMMINGLING OF TECHNOLOGY. The terms of this Section do not preclude KONICA from developing a Clone Product; however, if KONICA engages in such Clone Product development during the term of this Agreement, it shall ensure that there is no use of the Adobe Information in the design and development of Clone Products. In furtherance of such requirement, KONICA shall ensure there is no sharing with such Clone Product development any of the following: (i) design documents or schematics supplied by Adobe; (ii) Adobe Support Information or other information based upon or derived from the Adobe Support Information; (iii) any facilities (including, but not limited to, computer systems and network storage devices); or (iv) personnel with access to any of (i)-(iii) above. KONICA shall ensure that all Authorized Employees and Authorized Contractors who have had previous access to Adobe Support Information will be precluded for a period of twelve (12) months after their latest access to such Adobe Support Information from being employed in any Clone Product development (either internally or externally) by or for KONICA. "Employment in any Clone Product development" shall be defined as having direct access to, or producing any specifications, documentation, or source code for, components of a Clone Product. KONICA shall further ensure - -------------------------------------------------------------------------------- that each such employee or contractor shall, concurrent with the commencement of work on such Clone Product development within KONICA, sign a written affirmation to KONICA which states that each such employee or contractor (a) has neither retained nor had access for a minimum period of twelve (12) months to any Adobe Support Information, and (b) will not utilize, or facilitate use of, any Adobe Support Information in such Clone Product development. This prohibition relating to Clone Product development shall apply equally to raster-output devices, to display or screen output devices, or to any other peripheral devices. Notwithstanding the foregoing, any Authorized Employee or Authorized Contractor who has only received access to (i) documentation (but not including the Adobe Certification Test Suite(s) or any source code documentation) or (ii) object code (but no source code) contained in the Adobe Support Information shall be exempted from such requirement. 7. CERTIFICATION. At Adobe's request KONICA will provide Adobe with written certification by an officer of KONICA of KONICA's compliance with its obligations under Section 2 ("Authorized Employees and Contractors") and Section 6 ("No Commingling of Technology") above, and the MTLA herein as applicable. 8. PROPRIETARY RIGHTS AUDIT. During the term of the Agreement and for a period of eighteen (18) months thereafter, an independent auditor selected by Adobe shall have access to such portion of KONICA's records end premises to allow Adobe to determine whether KONICA is substantially in compliance with this Exhibit and Section 6 ("Proprietary Rights and Legends") of the Agreement or Section 4 ("Protection of Proprietary Information") as applicable. In no event shall audits be made hereunder more frequently than once per year. Such access shall be (a) during KONICA's regular business hours, (b) arranged so that, to the extent possible, KONICA's regular business activities are minimally disrupted and (c) under the terms of an appropriate confidentiality agreement executed by the individual(s) conducting such audit. If Adobe determines, after conducting such audit, that KONICA is not substantially in compliance with its obligations to protect Adobe's proprietary rights, KONICA shall pay the costs of such audit. Otherwise, Adobe shall pay the costs of such audit. Such payment will not preclude Adobe from exercising any right that it may have under the Agreement. KONICA shall immediately correct any deficiencies discovered in the course of the audit. - -------------------------------------------------------------------------------- EXHIBIT B TO ATTACHMENT #1 EXTENDED ROMAN FONT PROGRAM SET Adobe will provide the graphic characters specified in ISO 8859-1: 1987, Latin alphabet No. 1 and ISO 8859-2: 1987, Latin alphabet No. 2, and symbol characters, as applicable, for the following Roman Font Programs: Identifying Trademark Typeface Trademark Owner --------- -------- --------------- 1. Albertus Monotype Corporation 2. Albertus Italic Monotype Corporation 3. Albertus Light Monotype Corporation 4. AntiqueOlive Roman M. Olive 5. AntiqueOlive Italic M. Olive 6. AntiqueOlive Bold M. Olive 7. AntiqueOlive Compact M. Olive 8. Apple Chancery Apple Computer, Inc. 9. ITC AvantGarde Gothic Book International Typeface Corporation 10. ITC AvantGarde Gothic Book Oblique International Typeface Corporation 11. ITC AvantGarde Gothic Demi International Typeface Corporation 12. ITC AvantGarde Gothic Demi Oblique International Typeface Corporation 13. Bodoni (Public Domain) 14. Bodoni Italic (Public Domain) 15. Bodoni Bold (Public Domain) 16. Bodoni Bold Italic (Public Domain) 17. Bodoni Poster (Public Domain) 18. Bodoni Poster Compressed (Public Domain) 19. ITC Bookman Light International Typeface Corporation 20. ITC Bookman Light Italic International Typeface Corporation 21. ITC Bookman Demi International Typeface Corporation 22. ITC Bookman Demi Italic International Typeface Corporation 23. Carta Adobe Systems Incorporated 24. Chicago Apple Computer, Inc. 25. Clarendon Linotype-Hell AG and/or its subsidiaries 26. Clarendon Light Linotype-Hell AG and/or its subsidiaries 27. Clarendon Bold Linotype-Hell AG and/or its subsidiaries 28. CooperBlack (Public Domain) 29. CooperBlack Italic (Public Domain) 30. Copperplate Gothic 32BC (Public Domain) 31. Copperplate Gothic 33BC (Public Domain) 32. Coronet Ludlow Type Foundry 33. Courier (Public Domain) 34. Courier Oblique (Public Domain) 35. Courier Bold (Public Domain) 36. Courier Bold Oblique (Public Domain) 37. GillSans Monotype Corporation 38. GillSans Italic Monotype Corporation 39. GillSans Bold Monotype Corporation 40. GillSans Bold Italic Monotype Corporation 41. GillSans Condensed Monotype Corporation 42. GillSans Condensed Bold Monotype Corporation 43. GillSans Light Monotype Corporation 44. GillSans Light Italic Monotype Corporation 45. GillSans Extra Bold Monotype Corporation 46. Eurostile Nebiolo 47. Eurostile Bold Nebiolo - -------------------------------------------------------------------------------- 48. Eurostile Extended Two Nebiolo 49. Eurostile Bold Extended Two Nebiolo 50. Geneva Apple Computer, Inc. 51. Goudy Oldstyle (Public Domain) 52. Goudy Oldstyle Italic (Public Domain) 53. Goudy Bold (Public Domain) 54. Goudy Bold Italic (Public Domain) 55. Goudy Extra Bold (Public Domain) 56. Helvetica Linotype-Hell AG and/or its subsidiaries 57. Helvetica Oblique Linotype-Hell AG and/or its subsidiaries 58. Helvetica Bold Linotype-Hell AG and/or its subsidiaries 59. Helvetica Bold Oblique Linotype-Hell AG and/or its subsidiaries 60. Helvetica Condensed Linotype-Hell AG and/or its subsidiaries 61. Helvetica Condensed Oblique Linotype-Hell AG and/or its subsidiaries 62. Helvetica Condensed Bold Linotype-Hell AG and/or its subsidiaries 63. Helvetica Condensed Bold Oblique Linotype-Hell AG and/or its subsidiaries 64. Helvetica Narrow Linotype-Hell AG and/or its subsidiaries 65. Helvetica Narrow Oblique Linotype-Hell AG and/or its subsidiaries 66. Helvetica Narrow Bold Linotype-Hell AG and/or its subsidiaries 67. Helvetica Narrow Bold Oblique Linotype-Hell AG and/or its subsidiaries 68. Hoefler Text Apple Computer, Inc. 69. Hoefler Text Italic Apple Computer, Inc. 70. Hoefler Text Black Apple Computer, Inc. 71. Hoefler Text Black Italic Apple Computer, Inc. 72. Hoefler Text Ornaments Apple Computer, Inc. 73. Joanna Monotype Corporation 74. Joanna Italic Monotype Corporation 75. Joanna Bold Monotype Corporation 76. Joanna Bold Italic Monotype Corporation 77. LetterGothic (Public Domain) 78. LetterGothic Slanted (Public Domain) 79. LetterGothic Bold (Public Domain) 80. LetterGothic Bold Slanted (Public Domain) 81. ITC Lubalin Graph Book International Typeface Corporation 82. ITC Lubalin Graph Book Oblique International Typeface Corporation 83. ITC Lubalin Graph Demi International Typeface Corporation 84. ITC Lubalin Graph Demi Oblique International Typeface Corporation 85. Marigold AlphaOmega Typography 86. Monaco Apple Computer, Inc. 87. ITC Mona Lisa Recut International Typeface Corporation 88. New Century Schoolbook Roman Linotype-Hell AG and/or its subsidiaries 89. New Century Schoolbook Italic Linotype-Hell AG and/or its subsidiaries 90. New Century Schoolbook Bold Linotype-Hell AG and/or its subsidiaries 91. New Century Schoolbook Bold Italic Linotype-Hell AG and/or its subsidiaries 92. New York Apple Computer, Inc. 93. Optima Linotype-Hell AG and/or its subsidiaries 94. Optima Italic Linotype-Hell AG and/or its subsidiaries 95. Optima Bold Linotype-Hell AG and/or its subsidiaries 96. Optima Bold Italic Linotype-Hell AG and/or its subsidiaries 97. Oxford AlphaOmega Typography 98. Palatino Roman Linotype-Hell AG and/or its subsidiaries 99. Palatino Italic Linotype-Hell AG and/or its subsidiaries 100. Palatino Bold Linotype-Hell AG and/or its subsidiaries 101. Palatino Bold Italic Linotype-Hell AG and/or its subsidiaries 102. Stempel Garamond Roman Linotype-Hell AG and/or its subsidiaries 103. Stempel Garamond Italic Linotype-Hell AG and/or its subsidiaries 104. Stempel Garamond Bold Linotype-Hell AG and/or its subsidiaries - -------------------------------------------------------------------------------- 105. Stempel Garamond Bold Italic Linotype-Hell AG and/or its subsidiaries 106. Symbol (Public Domain) 107. Tekton Adobe Systems Incorporated 108. Times Roman Linotype-Hell AG and/or its subsidiaries 109. Times Italic Linotype-Hell AG and/or its subsidiaries 110. Times Bold Linotype-Hell AG and/or its subsidiaries 111. Times Bold Italic Linotype-Hell AG and/or its subsidiaries 112. Univers Linotype-Hell AG and/or its subsidiaries 113. Univers Oblique Linotype-Hell AG and/or its subsidiaries 114. Univers Bold Linotype-Hell AG and/or its subsidiaries 115. Univers Bold Oblique Linotype-Hell AG and/or its subsidiaries 116. Univers Light Linotype-Hell AG and/or its subsidiaries 117. Univers Light Oblique Linotype-Hell AG and/or its subsidiaries 118. UniversCondensed Linotype-Hell AG and/or its subsidiaries 119. UniversCondensed Oblique Linotype-Hell AG and/or its subsidiaries 120. UniversCondensed Bold Linotype-Hell AG and/or its subsidiaries 121. UniversCondensed Bold Oblique Linotype-Hell AG and/or its subsidiaries 122. UniversExtended Linotype-Hell AG and/or its subsidiaries 123. UniversExtended Oblique Linotype-Hell AG and/or its subsidiaries 124. UniversExtended Bold Linotype-Hell AG and/or its subsidiaries 125. UniversExtended Bold Oblique Linotype-Hell AG and for its subsidiaries 126. Wingdings* Microsoft Corporation 127. ITC ZapfChancery Medium Italic International Typeface Corporation 128. ITC ZapfDingbats International Typeface Corporation 129. Arial Monotype Corporation 130. Arial Italic Monotype Corporation 131. Arial Bold Monotype Corporation 132. Arial Bold Italic Monotype Corporation 133. Times New Roman Monotype Corporation 134. Times New Roman Italic Monotype Corporation 135. Times New Roman Bold Monotype Corporation 136. Times New Roman Bold Italic Monotype Corporation *KONICA agrees that it will reproduce, have reproduced and distribute a Font Program for the Wingdings(R)Typeface supplied by Adobe hereunder (the "Wingdings Font Program") only in the Adobe Compact Font Format ("CFF") or TrueType Format and either (i) embedded in ROM or on a hard disk that is bundled with a Licensed System or (ii) as part of any other Adobe provided host-based component of a Licensed System. In the event that the Wingdings Font Program is provided to KONICA in CFF, KONICA shall treat the fact as Adobe Support Information pursuant to Section 4 ("Adobe Support Information") of EXHIBIT A ("Secure Procedures for Handling Adobe Support Information")). KONICA shall, not disclose such fact to its distributors, resellers or End Users, provided however that KONICA may disclose or advertise that the Wingdings Font Program is in a compressed format, where applicable. ///End EXHIBIT B-1 TO ATTACHMENT #1 Non-Roman Font Programs 1. FONT PROGRAMS FOR JAPANESE TYPEFACES. The following Font Programs shall be made available on Licensed Systems when specified in a Licensed System Addendum. (a) Morisawa Japanese Typefaces: Adobe will provide the Adobe Standard Japanese Character Set which includes JIS, Shift-JIS, and EUC encodings of the JIS X 0208-1983 and JIS X 0208-1990 Level l and Level 2 characters plus other characters and encodings as defined in Adobe's Technical Note #5078 (Adobe-Japan l-2 Character Collection for CID-Keyed Fonts), dated December 4, 1994, for the Font Programs for Japanese Typefaces in CID-keyed font format listed below. Generic characters listed therein are not typeface specific. Special character set or encodings are not provided. Identifying Trademark Character Collection Trademark Owner - --------------------- -------------------- --------------- 1. Ryumin Light KL Adobe-Japan1-2 Morisawa & Company, Ltd. 2. Gothic Medium BBB Adobe-Japanl-2 Morisawa & Company, Ltd. 3. FutoGoB 101-Bold Adobe-Japanl-2 Morisawa & Company, Ltd. 4. FutoMinA101-Bold Adobe-Japan1-2 Morisawa & Company, Ltd. 5. Jun 101-Light Adobe-Japanl-2 Morisawa & Company, Ltd. 6. GothicMB101-Bold Adobe-Japan1-2 Morisawa & Company, Ltd. 7. GothicMC101-heavy Adobe-Japanl-2 Morisawa & Company, Ltd. 8. GothicMB101-Ultra Adobe-Japan1-2 Morisawa & Company, Ltd. 9. Jun34-Medium Adobe-Japanl-2 Morisawa & Company, Ltd. 10. Jun501-Bold Adobe-Japanl-2 Morisawa & Company, Ltd. 11. KyokalCA-Light Adobe-Japan1-2 Morisawa & Company, Ltd. 12. KyokalCA-regular Adobe-Japanl-2 Morisawa & Company, Ltd. 13. KyokalCA-Medium Adobe-Japanl-2 Morisawa & Company, Ltd. 14. MidashiGo-MB31 Adobe-Japanl-2 Morisawa & Company, Ltd. 15. MidashiMin-MA31 Adobe-Japanl-2 Morisawa & Company, Ltd. 16. Ryumin-Bold Adobe-Japanl-2 Morisawa & Company, Ltd. 17. Ryumin-Medium Adobe-Japanl-2 Morisawa & Company, Ltd. 18. Ryumin-regular Adobe-Japanl-2 Morisawa & Company, Ltd. 19. Ryumin-heavy Adobe-Japanl-2 Morisawa & Company, Ltd. 20. Ryumin-Ultra Adobe-Japanl-2 Morisawa & Company, Ltd. 21. ShinGo-Bold Adobe-Japanl-2 Morisawa & Company, Ltd. 22. ShinGo-Light Adobe-Japanl-2 Morisawa & Company, Ltd. 23. ShinGo-Medium Adobe-Japan 1-2 Morisawa & Company, Ltd. 24. ShinGo-regular Adobe-Japanl-2 Morisawa & Company, Ltd. 25. ShinGo-Ultra Adobe-Japanl-2 Morisawa & Company, Ltd. 26. ShinseiKaisho-CBSK1 Adobe-Japanl-2 Morisawa & Company, Ltd. Base 2 Morisawa Fonts are the first two fonts on this list. Base 5 Morisawa Fonts are the first five fonts on this list. (b) Heisei Japanese Typefaces: Adobe will provide the Adobe Standard Japanese Character Set which includes JIS, Shift-JIS, and EUC encodings of the JIS X 0208-1983 and JIS X 0208-1990 Level 1 and Level 2 characters plus other characters and encodings as defined in Adobe's Technical Note #5078 (Adobe-Japanl-2 Character Collection for CID-Keyed Fonts), dated December 4, 1994, for the Font Programs for Japanese Typefaces in CID-keyed font format listed below. Generic characters listed therein are not typeface specific. Special character set or encodings are not provided. Identifying Trademark Character Collection Trademark Owner - --------------------- -------------------- --------------- 1. HeiseiMin-W3 Adobe-Japan1-2 Japan Standards Association Font Design Center 2. HeiseiKakuGo-W5 Adobe-Japan1-2 Japan Standards Association Font Design Center 3. HeiseiMin-W5 Adobe-Japanl-1 Japan Standards Association Font Design Center 4. HeiseiMin-W7 Adobe-Japanl-1 Japan Standards Association Font Design Center 5. HeiseiMin-W9 Adobe-Japanl-1 Japan Standards Association Font Design Center - -------------------------------------------------------------------------------- 6. HeiseiMaruGo-W4 Adobe-Japanl-1 Japan Standards Association Font Design Center 7. HeiseiKakuGo-W3 Adobe-Japanl-l Japan Standards Association Font Design Center 8. HeiseiKakuGo-W7 Adobe-Japan l-1 Japan Standards Association Font Design Center 9. HeiseiKakuGo-W9 Adobe-Japanl-1 Japan Standards Association Font Design Center 10. HeiseiMin-W3H Adobe-Japan2-0 Japan Standards Association Font Design Center Base 2 Heisei Fonts are the first two fonts on this list. KONICA shall include the following notice in documentation and materials accompanying any product that refers to the Font Programs for Japanese Typefaces in Section 1(b) ("Heisei Japanese Typefaces") above: "The Heisei Fonts (list the applicable fonts by name) have been licensed for use from the Japan Standards Association Font Design Center. Unauthorized reproduction as a font is prohibited." KONICA is not a member of the Japan Standards Association Font Design Center so Adobe is required to notify the Font Design Center of a grant of a license to KONICA prior to distribution of the Heisei Japanese Typefaces with a Licensed System. KONICA consents to such notification, and shall notify Adobe in writing of its intention to distribute Heisei Fonts as part of a Licensed System in advance of First Commercial Shipment of such Licensed System. 2. FONT PROGRAMS FOR CHINESE TYPEFACES. The following font programs shall be made available on licensed systems when specified in a Licensed System Addendum (a) Simplified Chinese Typefaces: Adobe will provide the Adobe Standard Simplified Chinese Character Set as defined in Technical Note #5079 (Adobe-GB1-0 Character Collection for CID-Keyed Fonts), dated February 6, 1996, for the Simplified Chinese Typefaces in CID-keyed font format listed below. Generic characters listed therein are not typeface specific. Special character set or encodings are not provided. Identifying Trademark Character Collection Trademark Owner - --------------------- -------------------- --------------- 1. STSong-Light Adobe-GB1-1 SinoType Technology Co., Ltd. 2. STFangsong-Light Adobe-GB 1-1 SinoType Technology Co., Ltd. 3. STHeiti-Regular Adobe-GB1-1 SinoType Technology Co., Ltd. 4. STKaiti-Regular Adobe-GB 1-1 SinoType Technology Co., Ltd. Distributed inclusively as a set. (b) Traditional Chinese Typefaces: Adobe will provide the Adobe Standard Simplified Chinese Character Set as defined in Technical Note #5080 (Adobe-CNS1-0 Character Collection for CID-Keyed Fonts), dated June 15, 1995, for the Traditional Chinese Typefaces in CID-keyed font format listed below. Generic characters listed therein are not typeface specific. Special character set or encodings are not provided. Identifying Trademark Character Collection Trademark Owner - --------------------- -------------------- --------------- 1. MSung-Light Adobe-CNS1-0 Monotype Corporation 2. MSung-Medium Adobe-CNS1-0 Monotype Corporation 3. MHei-Medium Adobe-CNS1-0 Monotype Corporation 4. MKai-Medium Adobe-CNS1-0 Monotype Corporation Distributed inclusively as a set. 3. FONT PROGRAMS FOR KOREAN TYPEFACES. The following Font Programs shall be made available on Licensed Systems when specified in a Licensed System Addendum. (a) Han Yang Korean Typefaces: Adobe will provide the Adobe Standard Korean Character Set as defined in Technical Note #5093 (Adobe-Korea1-0 Character Collection for CID-Keyed Fonts), dated June 15, 1995, for the Korean Typefaces in CID-keyed font format listed below. Generic characters listed therein are not typeface specific. Special character set or encodings are not provided. - -------------------------------------------------------------------------------- Identifying Trademark Character Collection Trademark Owner - --------------------- -------------------- --------------- 1. HYSMyungJo-Medium Adobe-Korea 1-1 HanYang Systems, Inc. 2. HYGoThic-Medium Adobe-Korea 1-1 HanYang Systems, Inc. 3. HYGungSeo-Bold Adobe-Korea 1-1 HanYang Systems, Inc. 4. HYRGoThic-Medium Adobe-Korea 1-1 HanYang Systems, Inc. 5. HYKakHeadLine-Medium Adobe-Korea 1-1* HanYang Systems, Inc. 6. HYKakHeadLine-Bold Adobe-Korea 1-1 * HanYang Systems, Inc. (* indicates Hangul subset only) Distributed inclusively as a set. (b) SoftMagic Korean Typefaces: Adobe will provide the Adobe Standard Korean Character Set as defined in Technical Note #5093 (Adobe-Koreal-0 Character Collection for CID-Keyed Fonts), dated June 15, 1995, for the Korean Typefaces in CID-keyed font format listed below. Generic characters listed therein are not typeface specific. Special character set or encodings are not provided. Identifying Trademark Character Collection Trademark Owner - --------------------- -------------------- --------------- 1. SMGothic(TM)-Light Adobe-Korea 1-1 SoftMagic, Inc. 2. SMGothic(TM)-Medium Adobe-Korea 1-1 SoftMagic, Inc. 3. SMGothic(TM)-DemiBold Adobe-Korea 1-1 SoftMagic, Inc. 4. SMGothic(TM)-Bold Adobe-Korea 1-1 SoftMagic, Inc. 5. SMMyungjo(TM)- Light Adobe-Korea 1-1 SoftMagic, Inc. 6. SMMyungjo(TM)-Medium Adobe-Korea 1-1 SoftMagic, Inc. 7. SMMyungjo(TM)-DemiBold Adobe-Korea 1-1 SoftMagic, Inc. 8. SMMyungjo(TM)-Bold Adobe-Korea 1-1 SoftMagic, Inc. Distributed inclusively as a set. ///End * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subjedt to the confidentiality request. Omissions are designed as *. A complete version of this exhibit has been files separately with the Securities and Exchange Commission. - -------------------------------------------------------------------------------- EXHIBIT C TO ATTACHMENT #1 USE OF ADOBE TRADEMARKS 1. DEFINITIONS. For the purposes of this Exhibit, the following definitions shall apply. 1.1 "Licensed Product" means (i) PEERLESS SDK or PEERLESS Revised Object deliverable as applied to PEERLESS, and (ii) Licensed System as applied to KONICA. 1.2 "Product Addendum" means (i) an SDK Addendum as applied to a PEERLESS SDK, and (ii) Licensed System Addendum as applied to a Licensed System. 1.3 "Trademark Licensee" means (i) KONICA in those instances of KONICA's use and license of the Trademarks, and (ii) KONICA's Remarketer Customer in those instances of KONICA's Remarketer Customer's use and license of the Trademark. 2. OWNERSHIP OF TRADEMARKS. Trademark Licensee acknowledges the ownership of the Adobe Trademarks in Adobe and the ownership of the Typeface Trademarks in the entities identified as "Trademark Owner" in EXHIBIT B TO ATTACHMENT #1 ("Extended Roman Font Program Set") or in a Product Addendum hereto. Adobe and such Typeface Trademark owners are referred to as the "Trademark Owners". Trademark Licensee agrees that it will do nothing inconsistent with such ownership and that all use of the Trademarks by Trademark Licensee shall inure to the benefit of and is on behalf of Adobe. Trademark Licensee acknowledges that Trademarks are valid under applicable law and that Trademark Licensee's utilization of the Trademarks will not create any right, title or interest in or to such Trademarks. Trademark Licensee acknowledges Trademark Owners' exclusive right to use of the Trademarks and agrees not to do anything contesting or impairing the trademark rights of the Trademark Owners. Any use of the Trademarks must identify the applicable "Trademark Owner" as the owner of such Trademarks. Trademark Licensee agrees that it will notify or require notification of sublicensees who receive Font Programs that (a) Typeface Trademarks can only be used to identify printed output produced by the Font Programs, and (b) the Typeface Trademarks are the property of the Trademark Owners. Trademark Licensee will maintain a high quality standard in producing copies of Font Programs and Typefaces. At the request of Adobe, Trademark Licensee must supply samples of any Typeface identified by a Typeface Trademark. 3. QUALITY STANDARDS. Adobe hereby appoints Trademark Licensee as its representative for the limited purpose of controlling the quality of the Revised Object, Font Programs, Host Software and Licensed Products and any other products or services it supplies or is supplied by Trademark Licensee in connection with the use of the Trademarks. KONICA shall identify its current Trademark Licensee upon request by Adobe. Trademark Licensee agrees that (a) the nature and quality of Licensed Products and any other products or services it supplies or is supplied by Trademark Licensee in connection with use of the Trademarks shall conform to the standards set by Adobe, and (b) it will cooperate with Adobe in facilitating Adobe's monitoring and control of the nature and quality of such products and services. Such assistance shall include supplying Adobe, upon its request, with specimens of its use of the Trademarks, including supplying samples of reprinted documentation, translations, product packaging and promotional materials that use the Trademarks in conjunction with Trademark Licensee's marketing of Licensed Products. Adobe may conduct an inspection of such specimens at facilities of its choosing including at Trademark Licensee's facilities to determine conformance with the standards. Trademark Licensee shall at Adobe's request assist Adobe in conducting such inspection and testing including, but not limited to, providing Adobe with applicable hardware. If, at any time, Adobe determines that Trademark Licensee has not met the Adobe quality standards, Adobe shall so advise Trademark Licensee and, upon Trademark Licensee's receipt of such notice by any means, the party who has failed to meet the standards shall have sixty (60) days to improve the quality to the standard previously approved by Adobe, or to cease the use of all Trademarks. Trademark Licensee shall comply with all applicable laws and regulations and obtain all appropriate government approvals pertaining to the use of the Trademarks and to the distribution and advertising of the Revised Object, Font Programs, Host Software and Licensed Products. In addition, Trademark Licensee shall provide reasonable and timely assistance to Adobe to comply with the same. 4. INFRINGEMENT PROCEEDINGS. Trademark Licensee agrees to notify Adobe of any unauthorized or improper use of the Trademarks by other parties (including Subsidiaries or sublicensees) promptly as it comes to Trademark Licensee's attention. Adobe shall have the sole right and discretion to bring infringement or unfair competition proceedings involving the Trademarks; provided, however, that Trademark Licensee shall provide reasonable assistance solely upon Adobe's request to investigate and/or prosecute trademark violations on behalf of Adobe. - -------------------------------------------------------------------------------- 5. TRADEMARK LICENSEE'S USE OF TRADEMARKS. Trademark Licensee agrees that it will (a) prominently and permanently include the Adobe Trademarks, including the Adobe PostScript logo, on all copies of the Revised Object, including the splash screen and media which have been mutually agreed upon, and on any Trademark Licensee product distributed to End Users which contains the Revised Object, (b) use best efforts to use the Adobe Trademarks, including the Adobe PostScript logo, in any advertising or printed materials concerning the Revised Object, including point-of-sale and channel materials, (c) use best efforts to use the Adobe PostScript logo on Trademark Licensee's corporate web site in accordance with Section 7.1.6 ("Web Site") of the Agreement, and (d) use best efforts to use all applicable Trademarks on all copies, advertisements, brochures, manuals, packaging and other appropriate uses made in the promotion, sale or use of the Revised Object, Font Programs, Host Software and PostScript Language Specification. Said use shall be in compliance with the provisions set out in this Exhibit C. Trademark Licensee shall make specific reference to the Adobe Trademarks applicable to the software components included in the Revised Object in any advertisement concerning the Licensed Products which also contains specific names of other software products. All such uses shall be in accordance with Adobe's then-current trademark manual. Trademark Licensee shall not translate the Trademarks nor render or adapt a foreign language equivalent of the Trademarks. 6. TRADEMARK REGISTRATIONS. Trademark Licensee, at Adobe's request, shall (a) promptly provide Adobe with any specimens, (b) execute all applications for trademark registrations, assignments, cancellations or other applicable documents, and (c) perform any other act reasonably necessary for any Trademark Owner to secure or maintain any and all trademark rights in any country in which Trademark Licensee is marketing the Revised Object, Font Programs, and Host Software in association with a trademark. Trademark Licensee's responsibilities shall include complying with the formalities of local law, including, but not limited to, executing any application for registration as a registered user, executing additional license agreements suitable for recording with the appropriate authorities or providing proof of use of the trademarks in any other applicable documents. 7. NO UNITARY OR COMPOSITE MARKS. Trademark Licensee agrees not to use any other trademark or service mark in close proximity to any of the Adobe Trademarks or combine the marks so as to effectively create a unitary composite mark (e.g., which may potentially give the public a misimpression of the relationship between Trademark Licensee, its licensees and Adobe) without the prior written approval of Adobe. ///End - --------------------------------------------------------------------------------