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137
2014/15 Annual Report Lenovo Group Limited
DIRECTORS’ REPORT
CONTINUING CONNECTED TRANSACTIONS (continued)
NEC Fielding Agreement
Date: January 15, 2004
Parties: NEC Fielding Ltd., a subsidiary 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: NEC Fielding Ltd. agreed to provide maintenance and other ancillary services for certain
equipments sold by the JVCo Group following the Closing Date.
Term: The initial term ended on March 31, 2004 and is automatically renewed for additional one-year
term unless either party gives prior termination notice.
Annual cap(Note 1):1/7/2011 – 31/3/2012: JPY2,665 million (US$32,246,500)
1/4/2012 – 31/3/2013: JPY3,553 million (US$42,991,300)
1/4/2013 – 31/3/2014: JPY3,553 million (US$42,991,300)
1/4/2014 – 31/3/2015: JPY3,553 million (US$42,991,300)
1/4/2015 – 31/3/2016: JPY3,553 million (US$42,991,300)
1/4/2016 – 1/7/2016: JPY888 million (US$10,744,800)
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(Note 1):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(Note 1):1/7/2011 – 31/3/2012: JPY50 million (US$605,000)
1/4/2012 – 31/3/2013: JPY66 million (US$798,600)
Revised annual cap(Note 2):1/4/2013 – 31/3/2014: JPY79 million (US$774,200)
1/4/2014 – 31/3/2015: JPY79 million (US$774,200)
1/4/2015 – 31/3/2016: JPY79 million (US$774,200)
1/4/2016 – 1/7/2016: JPY20 million (US$196,000)