Lenovo 2016 Annual Report Download - page 154

152 Lenovo Group Limited 2015/16 Annual Report
DIRECTORS’ REPORT
CONTINUING CONNECTED TRANSACTIONS (continued)
(i) Continuing connected transactions with NEC and its associates (continued)
Details of the CCT Agreements are set out below:
Supply Agreement
Date: February 28, 2011
Parties: NEC and NEC Embedded Products, Ltd. (“NECP”) (formerly known as NEC Personal
Products, Ltd.), a wholly owned subsidiary of NEC (whose rights and obligations
were transferred to NEC Personal Computers, Ltd. (“NECPC”), a member of the
JVCo Group, on and following the Closing Date)
Services provided/received: The supply of certain “NEC” branded personal computer products to NEC.
Term: For a period of five years commencing from the Closing Date or until the date on
which NEC no longer holds any shares in JVCo, whichever the earlier.
Annual cap(Note 1):1/7/2011 – 31/3/2012: JPY65,018 million (US$786,717,800)
1/4/2012 – 31/3/2013: JPY88,132 million (US$1,066,397,200)
Revised annual cap(Note 2):1/4/2013 – 31/3/2014: JPY140,000 million (US$1,372,000,000)
1/4/2014 – 31/3/2015: JPY140,000 million (US$1,372,000,000)
1/4/2015 – 31/3/2016: JPY140,000 million (US$1,372,000,000)
1/4/2016 – 1/7/2016: JPY35,000 million (US$343,000,000)
Transitional Services Agreement
Date: May 30, 2011
Parties: The Company and NEC
Services provided/received: Services to be provided by NEC Group to JVCo Group and vice versa including
business infrastructure related services, development & production services,
sales related services, maintenance & support services, real estate services and
information technology services.
Term: For a period of five years commencing from the Closing Date or until the mutual
agreement of the parties to early terminate the agreement, whichever the earlier.
Annual cap(Note 1):Annual fees for services provided to JVCo Group by NEC Group (payable to NEC):
1/7/2011 – 31/3/2012: JPY23,793 million (US$287,895,300)
1/4/2012 – 31/3/2013: JPY32,351 million (US$391,447,100)
1/4/2013 – 31/3/2014: JPY32,791 million (US$396,771,100)
1/4/2014 – 31/3/2015: JPY33,220 million (US$401,962,000)
1/4/2015 – 31/3/2016: JPY33,660 million (US$407,286,000)
1/4/2016 – 1/7/2016: JPY8,415 million (US$101,821,500)
Annual fees for services provided to NEC Group by the JVCo Group (payable from NEC):
1/7/2011 – 31/3/2012: JPY7,070 million (US$85,547,000)
1/4/2012 – 31/3/2013: JPY9,504 million (US$114,998,400)
1/4/2013 – 31/3/2014: JPY9,592 million (US$116,063,200)
1/4/2014 – 31/3/2015: JPY9,691 million (US$117,261,100)
1/4/2015 – 31/3/2016: JPY9,790 million (US$118,459,000)
1/4/2016 – 1/7/2016: JPY2,448 million (US$29,620,800)