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2012/13 Annual Report Lenovo Group Limited 109
Continuing Connected Transactions (continued)
NESIC Agreement
Date: August 18, 2003
Parties: NEC Networks & System Integration Corporation (“NESIC”), an associate of NEC, and NECP
(whose rights and obligations were transferred to NECPC, a member of the JVCo Group, on
and following the Closing Date)
Services provided/received: NESIC agreed to provide NECPC with operation and maintenance services for intranet and
other internal communication systems of NECPC following the Closing Date.
Term: The term ended on March 31, 2004 and is automatically renewed for additional one-year
terms unless either party gives prior termination notice.
Annual cap: 1/7/2011 – 31/3/2012 : JPY58 million (US$701,800)
1/4/2012 – 31/3/2013 : JPY77 million (US$931,700)
1/4/2013 – 31/3/2014 : JPY77 million (US$931,700)
1/4/2014 – 31/3/2015 : JPY77 million (US$931,700)
1/4/2015 – 31/3/2016 : JPY77 million (US$931,700)
1/4/2016 – 1/7/2016 : JPY19 million (US$229,900)
NEC Patent Licence Agreement
Date: The Closing Date
Parties: NEC and NECPC (a member of the JVCo Group on and following the Closing Date)
Services provided/received: NEC agreed to grant a licence of certain patents used in connection with the operation of
NEC’s personal computer business in Japan to NECPC at a royalty of 0.03% of gross sales
of certain products and/or services of NEC’s personal computer business in Japan bearing
the “NEC”.
Term: For a period of five years commencing from Closing Date expiring upon the earlier of (i) the
fifth anniversary of the Closing Date, and (ii) expiration of the last to expire of the patents
licensed under the NEC Patent License Agreement. The NEC Patent License Agreement
will automatically renew for a further period not terminating after the expiration of the last to
expire of the patents licensed under the NEC Patent License Agreement.
Annual cap: 1/7/2011 – 31/3/2012 : JPY50 million (US$605,000)
1/4/2012 – 31/3/2013 : JPY66 million (US$798,600)
1/4/2013 – 31/3/2014 : JPY66 million (US$798,600)
1/4/2014 – 31/3/2015 : JPY66 million (US$798,600)
1/4/2015 – 31/3/2016 : JPY66 million (US$798,600)
1/4/2016 – 1/7/2016 : JPY16 million (US$193,600)