Document:

IBM New Zealand Limited

 Exhibit 10.18 
  
 IBM NEW ZEALAND LIMITED 
 85 The Esplanade, Petone, Wellington, New Zealand 
  
 Distributors/Reseller Profile for Workstation Software 
 to IBM Business Partner Agreement

  

					
	Business Partner Name and Address:	  	 	  	 
	Datec (Fiji) Ltd	  	Business Partner Number:	  	196637
	68 Gordon Street	  	Profile Number:	  	001
	SUVA	  	 	  	 
	FIJI	  	 	  	 

  
 We welcome you as our remarketer of
workstation software which includes Programs and Services from the IBM Corporation or the Lotus Development Corporation, an IBM Company, or both. 
  
 This Profile covers the details of your approval as our Business Partner-Distributor for Workstation Software or as our Business Partner-Reseller for Workstation
Software, to actively market and diligently promote Programs and Services. 
  
 By signing below, each of us agrees to the terms of the following (collectively called the “Agreement”): 
  
 (a) this Profile; 
  
 (b) General Terms (SCD-7060DatecF); 
  
 (c) the applicable Attachments referred to in this Profile; and 
  
 (d) Exhibits. 
  
 This Agreement and its applicable transaction documents are the complete agreement regarding this relationship, and replace any prior oral or written communications
between us. Once this Profile is signed, 1) any reproduction of this Agreement or a transaction document made by reliable means (for example, photocopy or facsimile) is considered an original, to the extent permissible under applicable law and 2)
all Programs and Services you market and Services you perform under this Agreement are subject to it. If you have not already signed an Agreement for Exchange of Confidential Information (AECI), your signature on this Profile includes your
acceptance of the AECI. 
  
 After signing this Profile, please return a
copy to the address shown below. 
  

									
	Revised Profile (yes/no):                     	 	 	 	Date received by IBM: 9/12/02
			
	Agreed to: Datec (Fiji) Ltd	 	 	 	Agreed to:
	 	 	 	 	IBM NEW ZEALAND LIMITED
					
	By	 	/S/    KRISHNA
SAMI        	 	 	 	By	 	/S/    ROGER
KENAH        
	 	 	Authorised signature	 	 	 	 	 	Authorised signature
			
	KRISHNA SAMI	 	 	 	ROGER KENAH
	Name (type or print)	 	 	 	Name (type or print)
			
	MANAGING DIRECTOR	 	 	 	Office Services Mgr.
	Title (type or print)	 	 	 	Title (type or print)
			
	Date: 3/12/2002	 	 	 	Date: 9/12/02

  

 Page 1 of 4 

  
 DETAILS OF OUR
RELATIONSHIP 
  

					
	Contract Start Date (month/year): June 13 2002	  	Duration: 24 Months
			
	Relationship Approval/Acceptance of Additional Terms:	  	 	  	 
	
	For each approved relationship and additional terms, each of us agrees to the terms of the following by signing this Profile. Copies of the Attachments are
included.
			
	 Approved Relationship

	  	 Applicable
 (yes/no)

	  	Attachment

			
	 Remarketer Terms Attachment for Workstation Software
	  	yes	  	BPRTSW
7151DatecF
			
	 Distributor Attachment for Workstation Software
	  	no	  	BPDSW 7150
			
	 You are approved to market to:
	  	 	  	 
			
	 Remarketers
	  	no	  	 
			
	 Reseller Attachment for Workstation Software
	  	yes	  	BPRSW01 7152
			
	 You are approved to market to:
	  	 	  	 
			
	 End Users
	  	yes	  	 
			
	 Remarketers
	  	yes	  	 
			
	 Additional Terms:
	  	 	  	 
			
	 Advantage Attachment for Distributors of Workstation Software
	  	no	  	BPADATD
			
	 Advantage Attachment for Resellers of Workstation Software
	  	no	  	BPADATR
			
	 Passport Attachment for Distributors of Workstation Software
	  	no	  	BPPAATTD
7155
			
	 Passport Attachment for Resellers of Workstation Software
	  	yes	  	BPPAATTR
7156
			
	 Attachment for Services Marketing for Workstation Software Distributors and Resellers 
	  	no	  	BPSVBRSW

  
 Programs & Services
Approvals: 
  
 You are approved to market the workstation software/services
shown on the Eligible Product List which is contained in the Workstation Software Exhibit. 
  

 Page 2 of 4 

 Tivoli product purchased under Passport Advantage: 
  

					
	 Tivoli Enterprise:
	  	 Yes/No
	  	 No

	 Tivoli Storage:
	  	 Yes/No
	  	 No

	 Tivoli Security:
	  	 Yes/No
	  	 No

	 Tivoli S/390 Distributed
	  	 Yes/No
	  	 No

	 Tivoli Open Category (Products for which no Tivoli Authorisation/Certification is required):
	  	
 Yes
	  	
 Yes

  
 Other additional terms which apply
are listed in Schedule 1 of this Profile. 
  
 Programs and Services:

  
 You are approved to market the Programs and Services listed in the
Workstation Software Exhibit. Workstation Software Programs requiring certification are specified in the Exhibit. The terms of the Exhibit apply to the Programs and Services listed in it. 
  
 Minimum Annual Attainment (annual objective of your sales of Programs to your Customers.
The amount of a sale is the price you paid us for the Program):     Yes, refer to separate target letter. 
  

 Page 3 of 4 

 IBM Business Partner Agreement 
  
 Distributor/Reseller Profile for Workstation Software 
  
 SCHEDULE 1 
  
 Programs, Services and Offerings Attachments 
  
 The following Programs, Services and Offerings have additional terms in the specific Attachments listed below. 
  

			
	 Programs, Services and Offerings Attachment
	  	Approved
	 	  	(Yes/No)

  

 Page 4 of 4 

 IBM New Zealand Limited 
 171 Featherston Street, Wellington 
  
 IBM BUSINESS PARTNER AGREEMENT 
 Passport Advantage Attachment for Resellers of Workstation Software

  

			
	Business Partner Name and Address:	  	Ref. Agreement No: 7060
	Datec (Fiji) Ltd	  	Attachment Number: 02-20512
	68 Gordon Street	  	Business Partner Number: 196637
	SUVA FIJI	  	 

  
 These terms prevail over, and are
in addition to or modify, the Remarketer Terms Attachment for Workstation Software and the Reseller Attachment for Workstation Software. 
  
 Under the terms of this Attachment, an End User who has an IBM International Passport Advantage Agreement (Passport Advantage Agreement) in effect and has selected
Datec (Fiji) Ltd (“you”) as a Reseller, may fulfil their Passport Advantage acquisitions through you. You may assist the End User in completing the Passport Advantage Enrolment Form and any other applicable documents. Upon IBM’s
acceptance of the Passport Advantage Agreement, IBM will make available to you all details to enable you to fulfil the End User’s Passport Advantage orders. 
  
 Passport Advantage Agreement documents, and Business Partner guidelines to assist you in understanding the offering and fulfilling End
User Passport Advantage Agreements are included on the Passport Advantage channel resource website, www.ibm.com/software/passportadvantage. 
  

	1.	Eligible Products 

  
 Eligible Products include commercially available Programs, Program Upgrades, Competitive Upgrades, Software Maintenance renewals and “Software
Maintenance After License” and are listed in IBM’s applicable price list. IBM may add or withdraw Eligible Products or change an Eligible Product’s Suggested Volume Price (SVP) or point value at any time. In order to market certain
Products, IBM approval will be required. 
  

	2.	Marketing To Qualified End Users 

  
 You may only market Passport Advantage to End Users who have a Passport Advantage Agreement accepted by IBM, and who have selected you as their Reseller.

  

	3.	Passport Advantage Options For Commercial End Users 

  
 Commercial End Users (all End Users except qualifying education and government End Users) may acquire Eligible Products under one of two options:

  
 Under Option A, you acquire individual Eligible Products and
each Eligible Product is assigned SVP point values. The point value of the Eligible Products in a transaction determines the SVP Level of that transaction.  
  
 Under Option
B, an End User acquires a CEO Product Category which is a grouping of Eligible Products all within the CEO Product Category. Each CEO Product Category is assigned SVP points. The point value of the CEO Product Category the End User acquires in a
transaction determines the SVP Level of that transaction. The initial acquisition must include at least one CEO Product Category (Requisite Product Category) for all Users within the Enterprise. 
  
 Every CEO Product Category has a minimum requirement of 500 users.

  
 A User is an individual to whom a machine capable of copying,
using, or extending the use of eligible Programs has been assigned. 
  
 Additional CEO Product Categories may be acquired. 
  
 A
User may use any or all of the Programs included in a chosen CEO Product Category. 

 Programs that are acquired for client access must be acquired from the same CEO Product Category as the
server Program which they access. 
  
 If an End User requires a
Program that is not included in a CEO Product Category, the Program may be ordered under Option A. If IBM replaces a CEO Product Category which the End User had acquired, the End User may acquire the replacement CEO Product Category for an upgrade
charge. However, the End User must terminate their use of the replaced CEO Product Category when they install the replacement CEO Product Category. 
  
 For each Passport Advantage transaction, IBM’s price to you will be based either on the End User’s Relationship SVP (RSVP) Level or Transaction
SVP (TSVP) Level for that transaction. You establish your prices to your customers. If your customer’s RSVP Level is changed, IBM will inform you and you will place subsequent orders for that customer at their revised RSVP Level, or at their
applicable TSVP Level, as appropriate for that order. 
  

	4.	Passport Advantage Options For Education End Users 

  
 Upon IBM’s acceptance of their Passport Advantage Enrolment Form, eligible Education End User who qualify as an Authorised Academic Customer as
defined in the End User Attachment for Academic Volume Option, may acquire selected Eligible Products under this option or other educational terms as IBM specifies in the Academic Passport Advantage section of its website. You may provide such terms
and fulfil Eligible Product orders only to eligible Education End Users. 
  

	5.	Passport Advantage Options For Government End Users 

  
 Upon IBM’s acceptance of their Passport Advantage Enrolment Form, eligible Government End Users as defined in the End User Attachment for Government
Option, are entitled to the Government End User SVP Levels as specified on the applicable price list (or as available upon request). There is no minimum quantity order requirement. You may provide such terms and fulfil Eligible Product orders only
to eligible Government End Users. 
  

	6.	Your Responsibilities 

  
 A Passport Advantage End User may have an unlimited number of sites, all of which are covered under a single Passport Advantage Agreement. The site from
which an End User designates you as their Passport Advantage Reseller will be the site from which you agree to process orders for Eligible Products as IBM specifies to you. 
  
 You agree to accept all site orders from your Passport Advantage End Users throughout the term of their Passport Advantage
Agreement and to report such sales to IBM as IBM specifies in the operations guide. 
  
 You also agree to: 
  

	 	1.	proactively solicit purchase orders from your Passport Advantage End Users whose Software Maintenance is due for renewal; 

  

	 	2.	prior to accepting orders, ensure your End User is informed of the pricing level for the transaction and the End User has copies of and understands the Passport Advantage Agreement
documents and the Passport Advantage Enrolment Form; 

  

	 	3.	ensure any change to End User information is forwared to IBM either by you or by the End User; 

  

	 	4.	become knowledgeable in all elements of the Passport Advantage offerings; 

  

	 	5.	communicate to your Passport Advantage End Users all Passport Advantage promotions and special offers, when informed of such by IBM; 

  

	 	6.	pass through to your Passport Advantage End Users, at the time of all applicable transactions, any special incentives designed to encourage Passport Advantage End User acquisition
activity, as defined by IBM; 

  

	 	7.	advertise Passport Advantage to prospective Passport Advantage End Users on a regular basis; 

  

	 	8.	install and use a Notes server and the Notes Passport Advantage databases, and Passport Advantage website, or their equivalents; 

  

	 	9.	 name and maintain a Passport Advantage staff to administer Passport Advantage both within your organisation as well as when interacting with IBM, as specified in
the operations guide. You may not begin ordering Passport Advantage Eligible Products from IBM until each member of your Passport Advantage staff as been trained to perform their Passport Advantage related functions. 

	 	 
IBM has the sole right to evaluate the Passport Advantage competency of each such staff member. You also agree to notify IBM of any changes to your Passport
Advantage staff; and 

  

	 	10.	on IBM’s request, and at your expense 1) send a qualified representative to participate in a specialised Passport Advantage training session as IBM specifies and 2) have your
representative attend other Passport Advantage training and participate in conference calls as announced by IBM. 

  

	7.	Passport Advantage Media and Documentation Packs 

  
 Passport Advantage media containing an IBM Program and documentation packs containing User documentation will be available to you for distribution only to
your Passport Advantage End Users and other End Users as IBM specifies. You may maintain an inventory of Passport Advantage media and documentation packs as you would any IBM shrink-wrap Program package. 
  

	8.	Suspension and Termination 

  
 If you breach the terms of this Attachment IBM may, immediately on notice to you, suspend or terminate IBM’s approval of you to participate under the
terms of this Attachment. If IBM does so, you may no longer accept Passport Advantage orders from Passport Advantage End Users. IBM may allow you a reasonable opportunity to cure. If you fail to do so, IBM will take the action specified on its
notice to you. 

 IBM New Zealand Limited 
 171 Featherston Street, Wellington 
  
 IBM Business Partner Agreement 
 RESELLER ATTACHMENT FOR WORKSTATION SOFTWARE 
  

							
	Business Partner Name and Address:	  	Ref. Agreement No.:	  	7060	  	 
	Datec (Fiji) Ltd	  	Business Partner No. :	  	196637	  	 
	68 Gordon Street	  	 	  	 	  	 
	SUVA FIJI	  	 	  	 	  	 

  
 These terms prevail over and are in
addition to or modify the Remarketer Terms Attachment for Workstation Software. 
  

	1.	MARKETING APPROVAL 

  
 You are approved as a Reseller for Workstation Software under remarketer terms for workstation software to market Programs and Services. 
  

	2.	YOUR RESPONSIBILITIES TO US 

  
 You agree: 
  

	1.	to develop a mutually acceptable business plan with Us. Such plan will document your marketing plans as they apply to our relationship. We will review the plan, at a minimum, twice
a year; 

  

	2.	that, unless precluded by applicable law, one of the requirements for you to retain this relationship is that you achieve the minimum annual attainment, as We specify in your
Profile; 

  

	3.	to order Programs and Services, as We specify in the operations guide; 

  

	4.	to maintain trained personnel for the Programs and Services you are approved to market; 

  

	5.	to provide Us, on Our request, relevant financial information about your business so We may, for example, use this information in Our consideration to extend credit terms to you. We
will require, at a minimum, an annual audited financial report; 

  

	6.	to maintain the capability to demonstrate the Programs, as We specify in writing; 

  

	7.	to report Program defects to Us, as applicable; and 

  

	8.	to support Our marketing strategy by maintaining an inventory of selected Programs and Services, as We specify in writing. 

  

	3.	YOUR RESPONSIBILITIES TO END USERS 

  
 You agree to: 
  

	1.	identify and select the required technology based upon the End User’s requirements; 

  

	2.	inform the End User of Program installation requirements, and provide configuration support; 

	3.	comply with the terms regarding Program upgrades as We specify on the Program package and in the Exhibit; 

  

	4.	fulfil all valid orders for Programs and Services which you market; 

  

	5.	inform the End User that the sales receipt (or other documentation, such as Proof of Entitlement, if it is required) will be necessary for proof of warranty entitlement;

  

	6.	provide defect-related Program Services by copying and providing service materials (for example, “slipstream” or “corrective service diskettes”) to your End
Users who are licensed for the Program. You may provide an enhanced version of this support through Our applicable Services you market to the End User. If you do, We assume customer satisfaction for such support; 

  

	7.	be the primary contact for Program information and technical support. Such support responsibility may be provided through Our applicable Services you market to the End User. If you
market Our Services, We assume customer satisfaction responsibility for such support; and 

  

	8.	assist your End User in Program problem determination and resolution, unless this responsibility is delegated as specified in items 5 and 6 above. 

 IBM NEW ZEALAND LIMITED 
 85 The Esplanade, Petone, Wellington 
  
 IBM Business Partner Agreement 
 REMARKETER TERMS ATTACHMENT FOR WORKSTATION
SOFTWARE 
  

	1.	Our Relationship 

  
 As IBM’s Business Partner, you market to your Customers in Fiji only the Programs and Services (including shrink-wrap Services) IBM provides to you. These terms apply to Business Partners whose method of
distribution is under this Agreement and includes Distributors and Resellers for Workstation Software. 
  
 Responsibilities 
  
 Each of us agrees: 
  

	1.	each of us is free to set its own prices and terms; 

  

	2.	neither of us will discuss its Customer prices and terms in the presence of the other; and 

  

	3.	we offer a money back guarantee for IBM and Lotus Programs to End Users. You agree to 1) accept their return within the time frame IBM specifies, 2) refund the full amount the
Customer paid for the returned Programs, and 3) dispose of them (including all the components) as IBM specifies. 

  
 Other Responsibilities 
  
 You agree to: 
  

	1.	provide high quality technical support, including effective “hot-line” (or equivalent) support to your Customers, as applicable; 

  

	2.	provide IBM with sufficient, free and safe access to your facilities, at a mutually convenient time, for IBM to fulfil its obligations; 

  

	3.	retain records, as IBM specifies in the operations guide, of each Program and Service transaction (for example, a sale or credit) for three (3) years; 

 

	4.	maintain sufficient inventory to meet Customer demands; 

  

	5.	provide IBM with marketing, sales, and inventory information for IBM’s Programs and Services as specified in the operations guide; 

  

	6.	provide a dated sales receipt (or its equivalent, such as an invoice) to your Customers before or upon delivery of Programs and Services; and 

  

	7.	when you are approved to market to Remarketers, market Programs and Services which require certification only to Remarketers who are certified to market them.

  

	2.	Ordering and Delivery 

  
 You may order from IBM as specified in the operations guide. 
  
 We will agree to a location to which IBM will ship. IBM may establish criteria for you to maintain at such location (for example, certain physical characteristics, such
as a loading dock). 
  

 1 

 You will bear the full cost and responsibility involved in clearing any Products through customs for importation into
Fiji. You agree to pay Fiji customs duties, if any, relating to Products supplied under this Agreement. 
  
 Other invoices for adjustments, additional charges, taxes, etc, if any, payable or reimbursable by you to IBM under this Agreement, may be issued subsequent to delivery to you and will be payable in full in New
Zealand dollars within thirty (30) days of the date of invoice. 
  
 It will
be your exclusive responsibility to obtain all necessary consents from any government or related authority in New Zealand or Fiji to enable the Products to be imported into Fiji and to pay IBM in accordance with the provisions of this Agreement.

  
 Transportation of the Products from your agent in New Zealand into Fiji to
your location will be your responsibility, and the cost thereof borne by you. 
  
 You will be responsible for clearing the Products for importation into Fiji. 
  
 Upon becoming aware of any discrepancy between IBM’s shipping manifest and the Programs and Services received from IBM, you agree to notify IBM immediately. IBM will work with you to reconcile any differences. 
  
 Although IBM does not warrant delivery dates, IBM will use reasonable efforts to meet your
requested delivery dates. 
  
 IBM selects the method of transportation and pay
associated charges for Programs and Services IBM ships. 
  
 If IBM unable to stop
shipment of an order you cancel, and you return such Programs or Services to IBM after shipment, IBM’s returns terms apply. 
  
 You are responsible for processing all customs formalities in New Zealand and Fiji in relation to the export or re-export of Products including import licensing in Fiji
and the payment of all indirect taxes. 
  
 You will not require IBM to travel to
Fiji to provide support to an End User. IBM is not responsible to support you or Products outside Fiji. 
  
 IBM may not be able to honour your request for modification or cancellation of an order. IBM may apply a cancellation charge for orders you cancel within ten (10) business days before the order is scheduled to be
shipped. If a cancellation charge applies, IBM will specifiy the cancellation percentage in the Exhibit. IBM will advise you if the cancellation charge applies to an order you cancel. 
  

	3.	Returns 

  
 You must request and receive approval from IBM to return Programs and Services. IBM will inform you in writing of the schedule by which you may return Programs and Services to IBM. Such Programs and Services must have
been acquired directly from IBM. When you return Programs and Services to IBM for credit, you must order Programs and Services of equal or greater value than the amount of the credit. The credit will be based on the price you paid for the Programs
and Services, less any price adjustments. They must be received by IBM within one (1) month of IBM approving their return, unless IBM specifies otherwise to you in writing. 
  

 2 

 You agree to ensure that the Programs and Services are free of any legal obligations or restrictions that prevent their
return. IBM accepts them only from locations, within the country, to which IBM shipped them. IBM will reject any that do not comply with these terms. Additional information will be provided to you in writing. 
  
 Current Programs and Services 
  
 Current Programs and Services are those that are currently marketed by IBM. For purposes of
rebalancing your inventory, any current Programs and Services may be returned to IBM for credit. You agree to pay shipping and associated charges for Programs and Services you return. Returned Programs and Services must be in IBM’s unopened and
undamaged packages. 
  
 Withdrawn Programs and Services 
  
 Withdrawn Programs and Services are those which are no longer marketed by IBM. Requests to
return withdrawn Programs and Services must be submitted within seven (7) months from the date of withdrawal or “end-of-life” date. You agree to pay shipping and associated charges for Programs and Services you return. Returned
Programs and Services must be in their unopened and undamaged packages. 
  
 Unsalable Programs 
  
 Unsalable Programs are those which are:

  

	1.	defective; 

  

	2.	damaged; 

  

	3.	returned by the End User under our money-back guarantee; 

  

	4.	returned because the End User did not accept the terms of the license agreement; or 

  

	5.	returned by the End User under the terms of their warranty. 

  
 You agree to refund the amount paid for Programs returned by your customer for any of the above reasons. 
  
 IBM is responsible for transportation charges IBM authorises for the return of Unsalable Programs. 
  

	4.	Price, Invoicing, Payment and Taxes 

  
 Price 
  
 The price for each Program and Service will be made available to you in a communication which IBM provides to you in published form or through IBM’s electronic information systems or a combination of both.

  
 The price for each Program or Service is the lower of the price in effect on
the date IBM receives your order or the date IBM ships a Program or Service to you, if it is within six (6) months of the date IBM receives your order. 
  
 However, if IBM receives your order after a price increase notification, but before the effective date of the price increase, the price in effect is the higher price. An
exception to this is for orders for shrinkwrap Programs (including “use pack” and “license pack”) for quantities the sum of which is not more than your prior four (4) weeks’ sales as reported to IBM. For such orders,
the price in effect is the lower price. 
  

 3 

 Price Changes 
  
 IBM may change prices at any time. IBM will inform you of any price changes and endeavour to give you prior price change notification. 
  
 You will receive the benefit of a price decrease for Programs or Services IBM ships on or
after the effective date of the decrease. 
  
 If IBM decreases the price for a
Program or Service, you will be eligible to receive a price decrease credit for those in your inventory in the country from which they were acquired from IBM. However, if acquired from IBM under a special offering (for example, promotional price or
other special incentive), they may not be eligible for a full credit. They must have been acquired directly from IBM. 
  
 Such inventory is your on-hand inventory level, your returns in transit to IBM, and those in transit from IBM to you, all on the day prior to the effective date of the
price decrease. You are required to report, in a format IBM specifies in the operations guide, such inventory level within one (1) month of the price decrease. 
  
 The price decrease credit is the difference between the price you paid, after any adjustments, and the new price. IBM reserves the right to
audit your inventory and records on your premises. 
  
 Invoicing, Payment and
Taxes 
  
 Amounts are due upon receipt of invoice and payable as specified in
a transaction document. 
  
 You agree to pay accordingly, including any late
payment fee. Details of any late payment fee will be provided upon request at the time of order and will be included in the invoice. 
  
 You agree to pay importation cost recovery charges where applicable. Such charges include freight, insurance, duties and taxes. 
  
 You may use a credit only after IBM issues it. 
  
 If any authority requires IBM to include in its invoice to you a duty, tax, levy, or fee
which they impose, excluding those based on IBM’s net income, upon any transaction under this Agreement, then you agree to pay that amount. 
  
 In addition to the above amounts, you agree to pay as and when payable to Fiji tax authorities, taxes resulting from your transactions under this Agreement or any
activities/payments hereunder. You agree to hold IBM harmless and assume IBM’s liability for the payment of Fiji taxes, including income taxes (income tax on IBM personnel excepted) and for compliance with applicable procedures. 
  
 Failure to Pay Any Amounts Due 
  
 If you fail to pay any amounts due in the required period of time, you agree that IBM may do
one or more of the following, unless precluded by law: 
  

	1.	impose a finance charge, as IBM specifies to you in writing, up to the maximum permitted by law, on the portion which was not paid during the required period;

  

	2.	require payment on or before delivery of Programs or Services; 

  

 4 

	3.	repossess any Programs and Services for which you have not paid. If IBM does so, you agree to pay all expenses associated with agree to pay all expenses associated with repossession
and collection, including reasonable attorneys’ fees. You agree to make the Programs and Services available to IBM at a site that is mutually convenient; 

  

	4.	not accept your order until any amounts due are paid; 

  

	5.	terminate this Agreement; or 

  

	6.	pursue any other remedy available at law. 

  
 IBM may offset any amounts due you, or designated for your use (for example, marketing funds or promotional offerings), against amounts due to IBM or any of IBM’s
Related Companies. 
  
 In addition, if your account with any of IBM’s Related
Companies becomes delinquent, IBM may invoke any of these options when allowable by applicable law. 
  

	5.	Export and Import 

  
 You may actively market Programs and Services only within the geographic scope specified in this Agreement. You may not market outside this scope and you agree not to use anyone else to do so. 
  
 Export and Import Laws: 
  
 You warrant that you will comply with all applicable export and import laws, including those of the United States (which in some instances
prohibit or restrict in-country marketing to certain Customers), when you market Products, Services and technical data. You agree that if you export or import (for example, if you are approved for a geographic scope which includes multiple
countries) Products, Services and technical data, you, and not IBM, will act as the exporter or importer. Further, you warrant that you are knowledgeable with, and are and will remain in full compliance with, the applicable export and import laws,
regulations, orders and policies (including, but not limited to, securing all necessary clearance requirements, export and import licenses and exemptions, and making all proper filings). IBM may, at IBM’s sole discretion, require you from time
to time to provide IBM with written certification relating to your compliance with applicable export and import laws or prohibit you from doing business with certain Customers in order to ensure that you and IBM comply with applicable export and
import laws. 
  
 You will indemnify IBM for claims made against IBM for your
failure to comply with applicable export and import laws, regulations or orders. 
  
 Customer Exports: 
  
 If a Customer acquires a Program for export, you
agree to use your best efforts to ensure that your Customer complies with all applicable export and import laws, including those of the United States. 
  
 Attainment: 
  
 Programs you export (or which are acquired by a Customer for export) outside the geographic scope of the Agreement will not count toward attainment of your objectives and will not qualify for applicable promotional
offerings and marketing funds. 
  

 5 

	6.	Title 

  
 IBM does not transfer a Program’s title. 
  

	7.	Risk of Loss 

  
 IBM bear the risk of loss of, or damage to, a Program until its initial delivery from IBM to you. Thereafter, you assume the risk. 
  

	8.	Warranty 

  
 Warranty terms for Programs are described in the Program’s license terms. Unless IBM specifies otherwise, IBM provides other vendor Programs WITHOUT WARRANTY OF ANY KIND. However, other vendors may provide their
own warranties. 
  

	9.	Ending the Agreement 

  
 Regardless of the contract duration specified in the Profile, or any renewal period in effect, either of us may terminate this Agreement, with or without cause, on three (3) months’ written notice. If, under
applicable law, a longer period is mandatory, then the notice period is the minimum notice period allowable. 
  
 If IBM terminates for cause (such as you not meeting your minimum annual attainment) IBM may, at its discretion, allow you a reasonable opportunity to cure. If you fail to do so, the date of termination is that
specified in the notice. 
  
 However, if either party breaches a material term of
the Agreement, the other party may terminate the Agreement on written notice. Examples of such breach by you are: if you do not maintain customer satisfaction; if you do not comply with the terms of a transaction document; if you repudiate this
Agreement; or if you make any material misrepresentations to IBM. You agree that IBM’s only obligation is to provide the notice called for in this section and IBM is not liable for any claims or losses if IBM does so. 
  
 At the end of this Agreement, you agree to: 
  

	1.	pay for or return to IBM, at IBM’s discretion, any Programs or Services for which you have not paid; and 

  

	2.	allow IBM, at IBM’s discretion, to acquire any other Programs or Services in your possession or control, at the price you paid IBM, less any credits issued to you.

  
 Programs to be returned must be in their unopened and undamaged
packages and in your inventory (or in transit from IBM) on the day this Agreement ends. IBM will inspect the Programs, and reserve the right to reject them. You agree to pay all the shipping charges. 
  
 At the end of this Agreement, each of us agrees to immediately settle any accounts with the
other. IBM may offset any amounts due you against amounts due to IBM, or any of IBM’s Related Companies as allowable under applicable law. 
  
 You agree that if IBM permits you to perform certain activities after this Agreement ends, you will do so under the terms of this Agreement. 
  

 6 

 IBM NEW ZEALAND LIMITED 
 85 The Esplanade, Petone, Wellington 
  
 IBM BUSINESS PARTNER AGREEMENT 
 General Terms 
  

			
	Business Partner Name and Address:	 	Agreement Number: SCD7060-02-DatecF
	Datec (Fiji) Ltd	 	Business Partner Number: 196637
	68 Gordon Street	 	 
	SUVA FIJI	 	 

  

	1.	Definitions 

  
 Business Partner is a business entity which is approved by IBM to market Products and Services under this Agreement. 
  
 Customer is either an End User or a Remarketer. IBM specifies in your Profile if IBM approves you to market to End Users or Remarketers, or both. 
  
 End User is anyone, who uses Services or acquires Products for its own use and not for
resale. 
  
 Enterprise is any legal entity (such as a corporation) and the
subsidiaries it owns by more than 50 percent. An Enterprise also includes other entities as IBM and the Enterprise agree in writing. 
  
 IBMNZ means IBM New Zealand Limited. 
  
 Licensed Internal Code is called “Code”. Certain Machines IBM specifies (called “Specific Machines”) use Code. International Business Machines
Corporation or one of its subsidiaries owns copyrights in Code or has the right to license Code. IBM or a third party owns all copies of Code, including all copies made from them. 
  
 Machine is a machine, its features, conversions, upgrades, elements, accessories, or any combination of them. The term
“Machine” includes an IBM Machine and any non-IBM Machine (including other equipment) that IBM approves you to market. 
  
 Product is a Machine or Program, that IBM approves you to market, as specified in your Profile. 
  
 Program is an IBM Program or a non-IBM Program provided by IBM, under its applicable license terms, that IBM approves you to market.

  
 Related Company is any corporation, company or other business entity:

  

	1.	more than 50 percent of whose voting shares are owned or controlled, directly or indirectly, by either of us, or 

  

	2.	which owns or controls, directly or indirectly, more than 50 percent of the voting shares of either of us, or 

  

 1 

	3.	more than 50 percent of whose voting shares are under common ownership or control directly or indirectly with the voting shares of either of us. 

  
 However, any such corporation, company or other business entity is considered to be a Related
Company only so long as such ownership or control exists. “Voting shares” are outstanding shares or securities representing the right to vote for the election of directors or other managing authority. 
  
 Remarketer is a business entity which acquires Products and Services, as applicable,
for the purpose of marketing. 
  
 Service is performance of a task,
provision of advice and counsel, assistance, or access to a resource (such as a network and associated enhanced communication and support) that IBM approves you to market. 
  

	2.	Agreement Structure and Contract Duration 

  
 Profiles 
  
 IBM specifies the details of our relationship (for example, the type of Business Partner you are) in a document called a “Profile”. Each of us agrees to the terms of the Profile, the General Terms, the
applicable Attachments referred to in the Profile, and the Exhibit (collectively called the “Agreement”) by signing the Profile. 
  
 General Terms 
  
 The General Terms apply to all of IBM’s Business Partners. 
  
 Attachments 
  
 IBM describes, in a
document entitled an “Attachment”, additional terms that apply. Attachments may include, for example, terms that apply to the method of Product distribution (Remarketer Terms Attachment or Complementary Marketing Terms Attachment) and
terms that apply to the type of Business Partner you are, for example, the terms that apply to a Distributor relationship as described in the Distributor Attachment. IBM specifies in your Profile the Attachments that apply. 
  
 Exhibits 
  
 IBM describes in an Exhibit, specific information about Products and Services, for example, the list of Products and Services, and
warranty information about the Products. 
  
 Transaction Documents

  
 IBM will provide to you the appropriate “transaction
documents”. The following are examples of transaction documents, with examples of the information and responsibilities they may contain: 
  

	1.	invoices (item, quantity, payment terms and amount due); and 

  

	2.	order acknowledgements (confirmation of Products and quantities ordered). 

  

 2 

 Conflicting Terms 
  
 If there is a conflict among the terms in the various documents, the terms of: 
  

	1.	a transaction document prevail over those of all the documents; 

  

	2.	an Exhibit prevail over the terms of the Profile, Attachments and the General Terms; 

  

	3.	a Profile prevail over the terms of an Attachment and the General Terms; and 

  

	4.	an Attachment prevail over the terms of the General Terms. 

  
 If there is an order of precedence within a type of document, such order will be stated in the document (for example, the terms of the Distributor Attachment prevail over
the terms of the Remarketer Terms Attachment, and will be so stated in the Distributor Attachment). 
  
 IBM’s Acceptance of Your Order 
  
 Products and Services become subject to this Agreement when IBM accepts your order by: 
  

	1.	sending you a transaction document; or 

  

	2.	providing the Products or Services. 

  
 Acceptance of the Terms in a Transaction Document 
  
 You accept the terms in a transaction document by doing any of the following: 
  

	1.	signing it (those requiring a signature must be signed); 

  

	2.	accepting the Product or Services; 

  

	3.	providing the Product or Services to your Customer; or 

  

	4.	making any payment for the Product or Services. 

  
 Contract Duration 
  
 IBM specifies the contract start date and the duration in your Profile. Unless IBM specifies otherwise in writing, the Agreement will be renewed automatically for subsequent two (2) year periods. However, you may
advise IBM in writing not to renew the Agreement. Each of us is responsible to provide the other with three (3) months’ written notice if this Agreement will not be renewed. 
  

	3.	Our Relationship 

  
 Responsibilities 
  
 Each of us agrees
that: 
  

	1.	you are an independent contractor, and this Agreement is non-exclusive. Neither of us is a legal representative or legal agent of the other. Neither of us is legally a partner of
the other (for example, neither of us is responsible for debts incurred by the other), and neither of us is an employee or franchise of the other, nor does this Agreement create a joint venture between us; 

  

	2.	each of us is responsible for our own expenses regarding fulfilment of our responsibilities and obligations under the terms of this Agreement; 

  

	3.	neither of us will disclose the terms of this Agreement, unless both of us agree in writing to do so, or unless required by law; 

  

	4.	neither of us will assume or create any obligations on behalf of the other or make any representations or warranties about the other, other than those authorised;

  

 3 

	5.	any terms of this Agreement, which by their nature extend beyond the date this Agreement ends, remain in effect until fulfilled and apply to respective successors and assignees;

  

	6.	IBM may withdraw a Product or Service from marketing at any time; 

  

	7.	we will allow the other a reasonable opportunity to comply before it claims the other has not met its obligations, unless specified otherwise in the Agreement;

  

	8.	neither of us will bring a legal action against the other more than two (2) years after the cause of action arose, unless otherwise provided by local law without the
possibility of contractual waiver; 

  

	9.	failure by either of us to insist on strict performance or to exercise a right when entitled does not prevent either of us from doing so at a later time, either in relation to that
default or any subsequent one; 

  

	10.	neither of us is responsible for failure to fulfil obligations due to causes beyond the reasonable control of either of us; 

  

	11.	IBM reserves the right to assign, in whole or in part, this Agreement, to a Related Company, but may assign its rights to payment or orders placed hereunder to any third party;

  

	12.	IBM does not guarantee the results of any of its marketing plans; and 

  

	13.	each of us will comply with all applicable laws and regulations (such as those governing consumer transactions). 

  
 Other Responsibilities 
  
 You agree: 
  

	1.	to be responsible for customer satisfaction for all your activities, and to participate in customer satisfaction programs as IBM determines; 

  

	2.	that your rights under this Agreement are not property rights and, therefore, you can not transfer them to anyone else or encumber them in any way. For example, you can not sell
your approval to market IBM’s Products or Services or your rights to use IBM’s Trademarks; 

  

	3.	to maintain the criteria IBM specified when IBM approved you; 

  

	4.	To achieve and maintain the certification requirements for the Products and Services you are approved to market, as specified in your Profile; 

  

	5.	not to assign or otherwise transfer this Agreement, your rights under this Agreement, or any of its approvals, or delegate any duties, unless expressly permitted to do so in this
Agreement. Otherwise, any attempt to do so is void; 

  

	6.	to conduct business activities with IBM (including placing orders) which IBM specified in the operations guide, using IBM’s automated electronic system if available. You agree
to pay all your expenses associated with it such as your equipment and communication costs; 

  

	7.	that when IBM provides you with access to its information systems, it is only in support of your marketing activities. Programs IBM provides to you for your use with IBM’s
information systems, which are in support of your marketing activities, are subject to the terms of their applicable license agreements, except you may not transfer them; 

  

	8.	to promptly provide IBM with documents it may require from you or the End User (for example, IBM’s license agreement signed by the End User) when applicable;

  

	9.	to comply with the highest ethical principles in performing under the Agreement. You will not offer or make payments or gifts (monetary or otherwise) to anyone for the purpose of
wrongfully influencing decisions in favour of IBM, directly or indirectly. IBM may terminate this Agreement immediately in case of 1) a breach of this clause or 2) when IBM reasonably believes such a breach has occurred or is likely to occur; and

  

 4 

	10.	that your conduct under this Agreement will be consistent with the anti-boycott laws and regulations of the United States. 

  
 IBM’s Review of Your Compliance with this Agreement 
  
 IBM may periodically review your compliance with this Agreement. You agree to provide IBM
with relevant records on request. IBM may reproduce and retain copies of these records. IBM, or an reproduce and retain copies of these records. IBM, or an independent auditor, may conduct a review of your compliance with this Agreement on your
premises during your normal business hours. 
  
 If, during IBM’s review of
your compliance with this Agreement, IBM finds you have materially breached the terms of this relationship, in addition to IBM’s rights under law and the terms of this Agreement, for transactions that are the subject of the breach, you agree to
refund the amount equal to the discount (or fee, if applicable) IBM gave you for the Products or Services or IBM may offset any amounts due to you from IBM. 
  

	4.	Status Change 

  
 You agree to give IBM prompt written notice (unless precluded by law or regulation) of any change or anticipated change in your financial condition, business structure, or operating environment (for example, a
material change in equity ownership or management or any substantive change to information supplied in your application). Upon notification of such change, (or in the event of failure to give notice of such change) IBM may, at its sole discretion,
immediately terminate this Agreement. 
  

	5.	Confidential Information 

  
 With reference to the IBM Agreement for Exchange of Confidential Information, the following is confidential information (Information): 
  

	1.	all information IBM marks or otherwise states to be confidential; 

  

	2.	any of the following prepared or provided by IBM: 

  

	 	a.	sales leads, 

  

	 	b.	information regarding prospects or Customers, 

  

	 	c.	unannounced information about Products and Services, 

  

	 	d.	business plans, or 

  

	 	e.	market intelligence; 

  

	3.	any of the following written information you provide to IBM on its request and which you mark as confidential: 

  

	 	a.	reporting data, 

  

	 	b.	financial data, or 

  

	 	c.	the business plan. 

  
 All other information exchanged between us is nonconfidential, unless disclosed as specified in the IBM Agreement for Exchange of Confidential Information. 
  

 5 

	6.	Marketing Funds and Promotional Offerings 

  
 IBM may provide marketing funds and promotional offerings to you. If IBM does, you agree to use them according to IBM’s guidelines and to maintain records of your
activities regarding the use of such funds and offerings for three (3) years. IBM may withdraw or recover marketing funds and promotional offerings from you if you breach any terms of the Agreement. Upon notification of termination of the
Agreement, marketing funds and promotional offerings will no longer be available for use by you, unless IBM specifies otherwise in writing. 
  

	7.	Production Status 

  
 Each IBM Machine is manufactured from new parts, or new and used parts. In some cases, the IBM Machine may not be new and may have been previously installed. Regardless of the IBM Machine’s production status,
IBM’s appropriate warranty terms apply. You agree to inform your Customers of these terms in writing (for example, in your proposal or brochure). 
  

	8.	Patents and Copyrights 

  
 For the purpose of this section only, the term Product includes Licensed Internal Code (if applicable). 
  
 If a third party claims that a Product IBM provides under this Agreement infringes that party’s patents or copyrights, IBM will defend
you against that claim at IBM’s expense and pay all costs, damages, and attorneys’ fees that a court finally awards, provided that you: 
  

	1.	Promptly notify IBM in writing of the claim; and 

  

	2.	allow IBM to control, and cooperate with IBM in, the defense and any related settlement negotiations. 

  
 If you maintain an inventory, and such a claim is made or appears likely to be made about a Product in your inventory, you agree to permit
IBM either to enable you to continue to market and use the Product, or to modify or replace it. If IBM determines that none of these alternatives is reasonably available, you agree to return the Product to IBM on its written request. IBM will then
give you a credit, as it determines, which will be either 1) the price you paid IBM for the Product (less any price-reduction credit), or 2) the depreciated price. 
  
 This is IBM’s entire obligation to you regarding any claim of infringement. 
  
 Claims for Which IBM is Not Responsible 
  
 IBM has no obligation regarding any claim based on any of the following: 
  

	1.	anything you provide which is incorporated into a Product; 

  

	2.	your modification of a Product, or a Program’s use in other than its specified operating environment; 

  

	3.	the combination, operation, or use of a Product with any Products not provided by IBM as a system, or the combination, operation, or use of a Product with any product, data, or
apparatus that IBM did not provide; or 

  

	4.	infringement by a non-IBM Product alone, as opposed to its combination with Products IBM provides to you as a system. 

  

	9.	Liability 

  
 Circumstances may arise where, because of a default or other liability, one of us is entitled to recover damages from the other. In each such instance, regardless of the basis on which damages can be claimed, the
following terms apply as your exclusive remedy and IBM’s exclusive liability. 
  

 6 

 IBM’s Liability 
  
 IBM is responsible for no more than: 
  

	1.	payments referred to in the “Patents and Copyrights” section above; 

  

	2.	damages for bodily injury (including death) caused by IBM’s negligence; 

  

	3.	actual direct loss or damage to real property or tangible personal property caused by IBM’s negligence; and 

  

	4.	the amount of any other actual direct loss or damage arising from IBM’s negligence or breach of this Agreement, up to the greater of US$100,000 (or equivalent) or the charges
for the Product or Service that is the subject of the claim. 

  
 Items for Which IBM is Not Liable 
  
 Under no circumstances
(except as required by law) is IBM liable for any of the following: 
  

	1.	third-party claims against you for damages (other than those under the first three items above in the subsection entitled “IBM’s Liability”);

  

	2.	loss of, or damage to, your records or data; or 

  

	3.	special, incidental, or indirect damages, or for any economic consequential damages (including lost profits or savings) even if IBM is informed of their possibility.

  
 The Consumer Guarantees Act 1993 will not apply in respect to
any goods and services which IBM provides if you require the goods or services for the purpose of a business as defined in the Act. The implied warranties of merchantability and fitness for a particular purpose are also excluded. Where services are
not required for the purposes of a business as defined in the Consumer Guarantees Act 1993 the limitations in this Section are subject to the limitations in that Act. 
  
 Your Liability 
  
 In addition to damages for which you are liable under law and the terms of this Agreement, you will indemnify IBM for claims made against it by others (particularly
regarding statements, representations, or warranties not authorised by IBM) arising out of your conduct under this Agreement or as a result of your relations with anyone else. 
  
 You indemnify IBM in respect of any claim (and all costs and payments associated with any claim) whether or not you are liable at law for
the amount the subject of the claim, which may be made against or paid by IBM as the case may be, by, or on behalf of: 
  

	1.	a New Zealand government office in respect of any tax or penalties that the office may seek to recover from IBM in respect of any amounts invoiced to you for Products supplied by
IBM; and 

  

	2.	any revenue raising authority in New Zealand including the Commissioner of Inland Revenue in respect of any other payment, liability or penalty that the authority may seek to
recover from IBM in respect of any amounts invoiced to you for Products supplied by IBM. 

  

 7 

 You agree to provide to IBM, upon receipt of its written request, a copy of the relevant export documentation evidencing
the exportation of all Products supplied by IBM to you or your shipping agent. 
  

	10.	Trademarks 

  
 IBM will notify you in written guidelines of the IBM Business Partner title and emblem which you are authorised to use. You may not modify the emblem in any way. You may use IBM’s Trademarks (which include the
title, emblem, IBM trademarks and service marks) only: 
  

	1.	within the geographic scope of this Agreement; 

  

	2.	in association with Products and Services IBM approves you to market; and 

  

	3.	as described in the written guidelines provided to you. 

  
 The royalty normally associated with non-exclusive use of the Trademarks will be waived, since the use of this asset is in conjunction with marketing activities for
Products and Services. 
  
 You agree to promptly modify any advertising or
promotional materials that do not comply with IBM’s guidelines. If you receive any complaints about your use of a Trademark, you agree to promptly notify IBM. When this Agreement ends, you agree to promptly stop using IBM’s Trademarks. If
you do not, you agree to pay any expenses and fees IBM incurs in getting you to stop. 
  
 You agree not to register or use any mark that is confusingly similar to any of IBM’s Trademarks. 
  
 IBM’s Trademarks, and any goodwill resulting from your use of them, belongs to IBM. 
  

	11.	Changes to the Agreement Terms 

  
 IBM may change the terms of this Agreement by giving you one (1) month’s written notice. 
  
 IBM may, however, change the following terms without advance notice: 
  

	1.	those IBM specifies in this Agreement as not requiring advance notice; 

  

	2.	those of the Exhibit unless otherwise limited by this Agreement; and 

  

	3.	those relating to safety and security. 

  
 Otherwise, for any other change to be valid, both of us must agree in writing. Changes are not retroactive. Additional or different terms in any written communication
from you (such as an order), are void. 
  

	12.	Internal Use Products 

  
 You may acquire Products you are approved to market for your internal use within your Business Partner operations. Except for personal computer Products, you are required
to advise IBM when you order Products for your internal use. 
  
 IBM will specify
in your Exhibit the discount or price, as applicable, at which you may acquire the Products for internal use. 
  
 Any value added enhancement or systems integration services otherwise required by your relationship is not applicable when you acquire Products for internal use. You must retain such Products for a minimum of 12
months, unless IBM specifies otherwise in the Exhibit. 
  

 8 

	13.	Demonstration, Development and Evaluation Products 

  
 You may acquire Products you are approved to market for demonstration, development and evaluation purposes, unless IBM specifies otherwise in the Exhibit. Such Products
must be used primarily in support of your Product marketing activities. 
  
 IBM
will specify in your Exhibit the Products IBM makes available to you for such purposes, the applicable discount or price, and the maximum quantity of such Products you may acquire and the period they are to be retained. The maximum number of
input/output devices you may acquire is the number supported by the system to which they attach. 
  
 If you acquired the maximum quantity of Machines, you may still acquire a field upgrade, if available. 
  
 IBM may decrease the discount IBM provides for such Products on one (1) month’s written notice. 
  
 You may make these Products available to a Customer for the purpose of demonstration and evaluation. Such Products may be provided to an End
User for no more than three (3) months. For a Program, you agree to ensure the Customer has been advised of the requirement to accept the terms of a license agreement before using the Program. 
  

	14.	Electronic Communications 

  
 Each of us may communicate with the other by electronic means, and such communication is acceptable as a signed writing to the extent permissible under applicable law.
Both of us agree that for all electronic communications, an identification code (called a “user ID”) contained in an electronic document is sufficient to verify the sender’s identity and the document’s authenticity. 

 

	15.	Geographic Scope 

  
 All the rights and obligations of both of us are valid only in New Zealand. 
  
 All disputes arising in connection with this Agreement will be settled in accordance with the laws of New Zealand. 
  

	16.	Governing Law 

  
 This Agreement and its applicable Attachments, Exhibits and Profile are governed by the laws of New Zealand. 
  

	17.	General 

  
 Nothing in this Agreement will require IBM personnel to travel to Fiji to provide support or perform any other business activity. 
  

 9Distributor Agreement

 Exhibit 10.19 
  
 

 
  
 Distributor Agreement

  
 Prepared for 
  
 Datec (PNG) Ltd 
 PAPUA NEW GUINEA 
  
 Canon Australia Pty Ltd 
 Business Imaging Solutions Group 
 1 Thomas Holt Drive, North Ryde, NSW 2113 
 AUSTRALIA 
 Phone: +61 2 9805 2381 Fax: +61 2 8873 8509  
 www.canon.com.au 

			
	

	  	Distributor Agreement

 Canon Business Imaging Solutions Group 
 Distributor Agreement 
  

			
	BETWEEN	  	 CANON AUSTRALIA PTY LIMITED ACN 005 002 951
 of
1 Thomas Holt Drive, North Ryde, New South Wales 2113
 (“Canon”)

		
	AND	  	 DATEC (PNG) LTD
 of Waigani Drive, Port
Moresby, National Capital District,
 PAPUA NEW GUINEA
 (“Distributor”)

  
 BACKGROUND 
  

	A.	Canon is Canon Inc’s sole authorised distributor in Australia, Papua New Guinea, New Zealand and the South Pacific. 

  

	B.	Canon and the Distributor have agreed that the Distributor will be appointed as a Distributor for Canon Business Imaging Solutions Group (“BISG”) Products on the terms and
conditions set out in this Agreement. 

  
 AGREEMENT

  

	1.	Appointment 

  

	1.1	Canon appoints the Distributor as the exclusive, authorised Distributor for certain Canon BISG products in the Territory set out in Part 1 of the Schedule. 

 

	1.2	The appointment is by Canon’s BISG product division only, and is entirely independent of any relationship between the Distributor and any other Canon product division.

  

	1.3	The Distributor may not resell or service Canon BISG products outside the Territory without first obtaining Canon’s prior written consent. 

  

	1.4	The Distributor may not sell Products to anyone whom it knows, suspects or ought reasonably to suspect will resell the Products outside the Territory. 

  

	1.5	The Distributor will not during the term of this Agreement manufacture, promote, sell or otherwise deal with goods which are substantially comparable to, competitive with or
substitutable for the Products. 

  

 Page 1 of 27 

			
	

	  	Distributor Agreement

  

	2.	Term of Agreement and Holding Over 

  

	2.1	The Term of this Agreement will be for three (3) years from the commencement date set out in Part 2 of the Schedule. 

  

	2.2	If the Distributor continues to conduct the Distributor Business with the consent of Canon beyond the expiration of the Term referred to in Clause 2.1, both Canon and the
Distributor will continue to be bound by the Terms and Conditions of this Agreement. Either party may then terminate this Agreement by giving not less than six (6) months notice to the other. 

  

	3.	The Products 

  

	3.1	The Distributor may buy and resell in the Territory only the Canon BISG Products set out in Part 3.1 and Part 3.2 of the Schedule. 

  

	3.2	The Distributor will not be able to buy Canon BISG Products other than those set out in Part 3.1 and Part 3.2 of the Schedule, and the Distributor specifically acknowledges that it
may not buy those Products set out in Part 3.3 of the Schedule. 

  

	3.3.	If Canon’s BISG division adds new Products to its range, it is Canon’s discretion as to whether to make those Products available to the Distributor. If Canon makes further
Products available to the Distributor, it will notify the Distributor in writing, and Part 3 of the Schedule will be considered to have been amended accordingly. 

  

	3.4	The Distributor acknowledges that Canon may alter the Products set out in Part 3 of the Schedule because of factors including, but not limited to, the cessation of manufacture of
that Product, or reorganisation of Canon’s product divisions. 

  

	3.5	The Distributor acknowledges that Canon’s access to and rights to distribute the Products depends upon Canon’s arrangements with Canon Inc, which may vary from time to
time. The Distributor agrees that: 

  

	 	(a)	Canon shall not be liable to the Distributor for any breach of this Agreement which Canon may commit as a result of any change to Canon’s arrangements with Canon Inc which is
beyond Canon’s reasonable control; and 

  

	 	(b)	Canon may unilaterally amend this Agreement, by giving written notice to that effect to the Distributor, to any extent necessary to achieve conformity between this Agreement and the
arrangements between Canon Inc and Canon from time to time. 

  

 Page 2 of 27 

			
	

	  	Distributor Agreement

  

	4.	Mutual Business Interests, Development of Business and Canon Distributor Policy Manual 

  

	4.1	Canon and the Distributor acknowledge that the success of their respective businesses is dependant upon each party actively promoting their business, and Canon and the Distributor
agree that they will act in a fair, equitable, ethical and business like manner in all aspects of their business relationship. 

  

	4.2	The Distributor will actively promote the Distributor’s Business in the Territory and use his best endeavours in carrying on the Business in order to promote the mutual
business interests of Canon and the Distributor. 

  

	4.3	The Distributor will not, without Canon’s prior written consent, engage in any business other than the Distributor Business. Canon’s consent will not be withheld unless in
its reasonable opinion the other business is detrimental to the Distributor’s conduct of the Distributor Business. 

  

	4.4	The Distributor and Canon will also operate as far as is practicable in accordance with the practices and procedures set out in the Canon BISG Dealer Policy Manual used by Canon and
its Dealers in Australia, as amended from time to time. In the event of any inconsistency between the Canon BISG Dealer Policy Manual and this Agreement, this Agreement will prevail. 

  

	5.	Australian National Account and Government Account Customers 

  

	5.1	The Distributor and Canon acknowledge that Canon may have direct contractual relationships in Australia with various Australian resident corporations and government bodies that also
conduct business in the Territory. In order for Canon to fulfil its contractual obligations to those customers, Canon may be required to arrange for Products to be installed and serviced at premises of those customers which are located in the
Territory. 

  

	5.2	The Distributor agrees to provide all reasonable assistance to Canon in Canon’s fulfilment of those contractual arrangements. Without limiting the nature of this obligation,
the Dealer will when requested by Canon arrange to deliver and install such Products at premises located in its Territory. 

  

	5.3	The Distributor will also at Canon’s request enter into service arrangements directly with the customer, or provide service as Canon’s agent. 

  

 Page 3 of 27 

			
	

	  	Distributor Agreement

  

	5.4	In return for the Distributor providing the assistance set out in Clauses 5.2 and 5.3 Canon will reasonably and appropriately remunerate the Distributor in accordance with the
procedures set out in the Canon BISG Dealer Policy Manual. Dependent upon the nature of the assistance provided by the Distributor, the remuneration may consist of any or all of the following:- 

  

	 	(i)	Credits provided to the Distributor by Canon pursuant to the Copy Credit System referred to in the Canon BISG Dealer Policy Manual, which Canon warrants will be reviewed regularly
to ensure that they reasonably and appropriately remunerate the Distributor. 

  

	 	(ii)	Reasonable labour rates. 

  

	 	(iii)	Reimbursement of all travel and other expenses reasonably incurred by the Dealer. 

  

	6.	Price 

  

	6.1	The price for the Products will be the price set out in the relevant Canon Dealer Price List (as applicable to Australian resident Canon BISG Dealers) in force at the time the
Product is ordered. 

  

	6.2	Canon may amend the Canon Dealer Price List at any time: 

  

	 	(i)	For price increases, by giving not less than thirty (30) days written notice. 

  

	 	(ii)	For price decreases, by giving not less than seven (7) days written notice. 

  

	6.3	Canon will sell Products to the Distributor as a wholesale customer. 

  

	6.4	Canon may from time to time provide details of Recommended Retail (or Resale) Prices (“RRP”) for Products. A RRP is a recommendation only and the Distributor must
determine its own selling price, and the prices (if any) which it wishes to include in advertisements, promotional and other selling material. 

  

	7.	Invoicing and Payment 

  

	7.1	Canon will forward to the Distributor an invoice for all Products delivered. 

  

 Page 4 of 27 

			
	

	  	Distributor Agreement

  

	7.2	The Distributor must notify Canon of any disputed item on the invoice by the later of seven (7) days from the date of delivery to the Distributor or thirty (30) days of
the invoice date. 

  

	7.3	Canon will forward to the Distributor a statement once each month, setting out the total amount due to Canon. 

  

	7.4	The Distributor must pay the total amount which is not in dispute on the statement on or before the last business day of the month following the date of the statement. If not, Canon
may in addition to any other rights which it may have, do any or all of the following:- 

  

	 	(i)	Charge the Distributor interest at a rate three (3) per cent above the then current Benchmark rate. 

  

	 	(ii)	Refuse to make any further delivery of Products to the Distributor. 

  

	 	(iii)	Require cash payment before making any further delivery of Products to the Distributor. 

  

	7.5	If the Distributor disputes any amount on the monthly statement, then, in addition to any notice it may have given pursuant to Clause 7.2, it must provide to Canon a written
reconciliation within fourteen (14) days of the date of the statement, setting out details of the amounts in dispute and the reasons why the relevant amounts are in dispute. 

  

	8.	Transfer of Ownership (“Title”) and Risk 

  

	8.1.1	All risk in the Products will pass to the Distributor when the Products are unloaded from Canon’s delivery vehicle at the address specified for delivery on the
Distributor’s order. The delivery address must be that of a Customs Agent or Freight Forwarder on mainland Australia. 

  

	8.1.2	All delivery costs and expenses, including but not limited to storage, transportation, insurance and freight, will be borne by the Distributor. 

  

	8.2	Legal and equitable title to the Products will remain with Canon until Canon has received payment in full for all amounts due, including: 

  

	 	(a)	The Purchase Price for the Products, together with any interest payable. 

  

	 	(b)	All other amounts owing to Canon by the Distributor on any account whatsoever, whether or not such sums have become due for payment. 

  

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	  	Distributor Agreement

  

	 	(c)	All amounts owing to any related corporation of Canon by the Distributor on any account whatever, whether or not such sums have become due for payment. 

  

	8.3	Where payment is to be made by instalments the full purchase price of the Products will be deemed not to have been paid until such time as all instalment payments together with any
amounts due in respect of interest have been made. 

  

	8.4	Until property and ownership in the Products pass to the Distributor in accordance with this Clause 8; 

  

	 	(a)	the Distributor shall hold the Products as fiduciary bailee and agent for Canon; and 

  

	 	(b)	the Products shall be stored separately from any other assets, marked in such a way that they are clearly identifiable as Canon’s property and kept in a manner which enables
them to be identified and cross-referenced to particular invoices. 

  

	8.5	Without prejudice to any other rights held by Canon under this Agreement or at law, in the event of any default in payment of the amounts referred to in sub-clause 8.2 above, Canon
shall have the right by its employees, servants or agents to enter without notice at any time upon any land or building, vehicle or vessel or other place upon which the Products are reasonably thought to be situated to do all things necessary in
order to take possession of the Products, including dismantling anything into which the Products or any of them have been incorporated. The Distributor shall be liable for all Canon’s costs of whatsoever nature of and associated with the
exercise of this right and such costs shall be payable on demand. 

  

	8.6	Unless otherwise notified in writing, the Distributor may sell the Products by way of bona fide sale in the ordinary course of business on its standard terms and conditions but may
not otherwise deal with, sell, part with possession of, change the character of, convert or otherwise dispose of or handle any of the Products sold hereunder until property and ownership therein have passed to the Distributor in accordance with this
Clause 8. 

  

	8.7	Where any of the Products are sold by the Distributor before property and ownership therein have passed to the Distributor in accordance with this Clause 8, that sale will
constitute a sale by the Distributor of Canon’s property. The proceeds of any Products sold shall be kept in a separate bank account and shall not be mixed with any other moneys, including funds of the Distributor. 

  

	8.8	This Clause 8 shall apply notwithstanding the granting of any credit to the Distributor by Canon. 

  

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	9.	Securities 

  

	9.1	At all times during the Term the Distributor will provide to Canon security of types and to a level reasonably required by Canon. 

  

	9.2	Should the Distributor at any time not provide security in accordance with this Clause, Canon may, in addition to any other rights it may have, withhold supply of further Products
to the Distributor. 

  

	10.	Product Warranty 

  

	10.1	Canon warrants to the Distributor that for a period of ninety (90) days from the date of the Distributor’s invoice to the customer for the Product, the Product will be
free from defects in material and workmanship under normal use and service. In respect of consumable items, this warranty only applies to defects existing at the time of first use of the consumable item. 

  

	10.2	In respect of a warranty claim by the Distributor or by a purchaser of the Products from the Distributor, the Distributor will provide to Canon: 

  

	 	(i)	a copy of any sales invoice from the Distributor to the purchaser; 

  

	 	(ii)	evidence of the date of delivery by Canon to the Distributor; 

  

	 	(iii)	the date when the defect was first brought to the Distributor’s attention; 

  

	 	(iv)	the serial number and meter reading (if any) when the product was installed at the customer’s premises; 

  

	 	(v)	a description of the defect and any defective parts; 

  

	 	(vi)	a copy of the Distributor’s records showing all details of any inspection or repair carried out by the Distributor. 

  

	10.3	The Distributor will pay freight, insurance and other charges to return defective Products to Canon. Canon will pay freight, insurance and other charges to return repaired or
replaced Products to the Distributor. 

  

	10.4	The Distributor’s sole remedy for a breach of a warranty contained in Clause 9.1 is to require Canon to repair, or if repair is impossible or Canon agrees, to replace the
relevant product at Canon’s cost. 

  

	10.5	Canon excludes any other liability to the Distributor in respect of the Products supplied pursuant to this Agreement. 

  

	10.6	The Distributor agrees to co-operate, at Canon’s request, with any Canon International Warranty Scheme applicable to the Products which may exist from time to time.

  

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	11.	Training - Service 

  

	11.1	Canon will provide to the Distributor free of charge a service training course for the number of service engineers Canon designates as appropriate for each Canon Product.

  

	11.2	Canon will provide at its expense each service engineer who completes the relevant service training course with one service manual for that model of Canon Product.

  

	12.	Advice and Provision of Trained Personnel 

  
 Canon shall provide to the Distributor from time to time such management and administrative advice and assistance as Canon considers appropriate in the following areas:
sales, promotion, advertising, marketing, merchandising, equipment, technical matters, layout and colour schemes, management and administration. The method in which and the location at which Canon will provide such advice or assistance is at
Canon’s discretion. 
  

	13.	Servicing of Products 

  

	13.1	The Distributor will at its own expense provide services for the installation, support, maintenance and repair of Products sold by the Distributor. 

  

	13.2	The Distributor agrees that in order to provide an acceptable level of service to customers it will comply with all reasonable directions and instructions from Canon and in
particular will: 

  

	 	(i)	Maintain a stock of spare parts to at least the level reasonably specified by Canon from time to time as being necessary to properly service the Distributor’s customers.

  

	 	(ii)	Use only genuine Canon spare parts and consumables. 

  

	 	(iii)	Employ an adequate number of service technicians who meet product knowledge and competence levels as reasonably specified by Canon from time to time. 

  

	 	(iv)	Charge customers at rates or prices no higher than reasonably specified by Canon from time to time. 

  

	 	(v)	Carry out service in accordance with methods and procedures specified by Canon from time to time, including those set out in Canon’s service manuals. 

 

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	 	(vi)	Allow Canon to inspect its service records on reasonable notice to ensure compliance with this Clause and to acquire data for the purpose of improving service procedures.

  

	13.3	If a customer complains to Canon about service carried out by the Distributor, Canon may investigate the legitimacy of the complaint and whether the Distributor has complied with
this Clause. The Distributor will assist Canon’s investigations in all reasonable ways. 

  

	13.4	The Distributor will offer service to his customers of Canon’s Products for at least five (5) years after delivery to the customer of the Product.

  

	13.5	The Distributor will ensure that it does not cause any pollution or engage in any environmentally unsound practice in disposing of photosensitive drums or other spare parts or
consumables, and will comply with any directions given by Canon as to the use or disposal of all products including spare parts and consumables. 

  

	14.	Advertising and Promotion 

  

	14.1	Canon conducts Advertising and Promotional Programs and prepares brochures and other promotional material primarily for use in Australia. Canon will supply at no cost to the
Distributor reasonable quantities of such materials. Additional quantities may be supplied at the Distributor’s request and expense. Any modifications, including printing or other preparation of new materials, will be at the Distributor’s
expense. 

  

	14.2	The Distributor will undertake reasonable amounts of further advertising and promotions at his own expense. 

  

	14.3	The Distributor may request Canon to give consideration to providing funds for use in the Distributor’s own advertising and promotion in accordance with Canon’s
Cooperative Advertising Policy in force from time to time. 

  

	15.	Sales, Marketing and Service Training and Conferences 

  

	15.1	The Distributor will participate in Sales, Marketing and Service training and conferences as is reasonably required by Canon. Canon will pay for accommodation, meals and the cost of
training. All other expenses including incidentals, alcohol and expenses of a private nature will be the responsibility of the Distributor. 

  

	15.2	If the Distributor requests training additional to that provided by Canon, all expenses for that additional training will be at the Distributor’s cost.

  

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	16.	Performance Standards 

  

	16.1	Canon and the Distributor will on a regular basis, and in any event on no less than an annual basis, establish performance standards for the Distributor, including sales targets and
Technical Requirements. These established performance standards will be recorded by Canon and the Distributor in an agreed format. 

  

	16.2	If at any time Canon, acting in good faith, reasonably determines that the Distributor has not met one or more of the established performance standards for a period of no less than
six months, it may forward a notice to the Distributor setting out details of the manner in which and the time during which the Distributor has not met the established performance standards. 

  

	16.3	The Distributor will within seven (7) days of receiving such a notice from Canon, forward to Canon a written response providing any information which the Distributor believes
is relevant to the issues raised in the notice. Without limiting the material which the Distributor might include in its response, it may include material intended to clarify the information in the notice from Canon, refute the information in the
notice or offer suggestions as to how the Distributor will modify its performance. 

  

	16.4	Within seven (7) days of Canon receiving the written reply from the Distributor, the Distributor and Canon will meet to discuss in good faith each party’s position as set
out in the notice and reply, with a view to establishing an action plan for the twelve (12) weeks following the date of the meeting. This action plan will set out the agreement, if any, reached between Canon and the Distributor as to the steps
to be taken by the Distributor during the next twelve (12) weeks including any revised performance standards. 

  

	16.5	Canon will during the next twelve (12) weeks provide reasonable assistance and support to the Distributor to assist it to comply with the action plan. If, having done so, Canon
is reasonably of the view that the Distributor has not satisfactorily complied with the action plan, Canon may terminate the Agreement by giving eight (8) weeks written notice. 

  

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	17.	Termination 

  
 Without prejudice to the provisions of Clause 16 or to any other remedy which Canon may have against the Distributor: 
  

	17.1	Canon may by written notice terminate the Agreement immediately if the Distributor is in fundamental breach of this Agreement. A fundamental breach will include but not be limited
to the following circumstances: 

  

	 	(a)	Should the Distributor make a fraudulent misrepresentation in connection with the operation of the Distributor Business. 

  

	 	(b)	Should the Distributor perform or omit to perform an act, or make a statement, where the act or omission or making the statement: 

  

	 	(i)	is punishable by imprisonment or, if the Distributor is a Corporation, by a fine of $2000 or more; and 

  

	 	(ii)	if the Distributor is a person, tends to show that he is dishonest or otherwise not of good character. 

  

	 	(c)	Should the Distributor be declared bankrupt, file a bankruptcy petition, allow a Writ of Execution to remain unsatisfied for more than three (3) days or if a company, go into
liquidation or into a Scheme of Arrangement (other than for amalgamation or reconstruction) or have or permit a Receiver, Agent for a Mortgagee or Administrator to be appointed or call a meeting for the appointment of an official manager.

  

	17.2.1	Canon may by written notice require the Distributor to rectify any non-fundamental breach of the Agreement within fourteen (14) days of the date of service of the notice. If
the Distributor does not rectify the breach, Canon may, by a further written notice, terminate the Agreement. A non-fundamental breach will include but not be limited to circumstances where the Distributor: 

  

	 	(a)	Does not pay Canon in accordance with Clause 7. 

  

	 	(b)	Fails to operate the Distributor Business for either a period exceeding seven (7) days, or a lesser period where the failure is unreasonable having regard to the interests of
Canon, the normal operation of the business, and the reason for the failure. 

  

	 	(c)	Should the Distributor otherwise breach this Agreement. 

  

	17.2.2	 This Sub-Clause 17.2 will not apply to circumstances included within Clause 16. 

  

	17.3	Upon termination of this Agreement: 

  

	 	(a)	The Distributor will within thirty days pay all moneys due to Canon. 

  

	 	(b)	The Distributor will promptly remove at its expense all advertisements, notices, references or representations relating to Canon BISG products, or to the Distributor’s status
as Canon’s Distributor. 

  

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	 	(c)	The Distributor will on or before the effective date of termination provide to Canon an accurate, complete and current list of all Australian National Account and Government Account
customers (as referred to in Clause 5 of this Agreement), including details as to the meter readings of the customers’ equipment, relevant copy costs and the detailed service history of the equipment. 

  

	18.	Supply of Spare Parts and Consumables after Termination or Expiration 

  

	18.1	For a period of three (3) years following termination or expiration of this Agreement Canon will supply the Distributor with spare parts and consumables reasonably required by
the Distributor to provide service to those customers which purchased Canon products from the Distributor. 

  

	18.2	Thereafter, for a further period of two years, Canon will supply the Distributor with spare parts and consumables reasonably required by the Distributor to provide service to those
customers which purchased Canon products from the Distributor, at Canon’s then current trade price. 

  

	19.	Assignment 

  

	19.1	The Distributor will not assign or otherwise deal with or agree to or purport to assign or otherwise deal with this Agreement or any right or obligation under this Agreement without
Canon’s prior written consent which shall not be unreasonably withheld where the Distributor satisfies Canon that the proposed assignee is reputable, responsible and solvent with sufficient experience to properly conduct the Distributor
Business and comply with all obligations placed on the Distributor by this Agreement. 

  

	19.2	The Distributor will execute and cause the assignee to execute any documentation required by Canon to assess the assignee, record the assignment and procure the assignee’s
performance of this Agreement. 

  

	19.3	Upon assignment the Distributor will have no further claims against Canon in respect of the Agreement and will, if required, execute a release in favour of Canon to this effect.
This sub-clause will not prevent the Distributor pursuing claims of which notice has already been given to Canon in writing and otherwise in accordance with the terms and conditions of this Agreement. 

  

	19.4	Where the Distributor is a natural person and dies Canon may in its discretion permit the Distributor’s spouse or a beneficiary nominated under his will to take an assignment
of this Agreement. Such assignment , will be otherwise subject to the provisions of this clause. 

  

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	20.	Insurance and Indemnity 

  

	20.1	The Distributor will obtain and maintain at his own expense with a reputable insurance company reasonably acceptable to Canon, insurance for all matters connected with the
Distributor’s business. 

  

	20.2	The Distributor indemnifies and agrees to keep indemnified Canon against all claims, demands, proceedings, damages, losses and expenses whatsoever made or brought against either or
both of the Distributor and Canon in connection with or in any way arising out of this Agreement. 

  

	21.	Separate Legal and Tax Entity 

  

	21.1	The Distributor will have no right or authority to bind Canon in any way nor to employ or engage any person on Canon’s behalf. 

  

	21.2	The Distributor and his employees and agents are not employees or partners of Canon. The Distributor will indemnify Canon against all claims made by or in respect of such employees
or agents. 

  

	21.3	The Distributor is a separate business entity to Canon, and is responsible for ascertaining and meeting any obligations to pay all taxes, excises or duties related to the
importation of the Products into the territory or the sale and distribution of the Products within the Territory. Where required by law, the Distributor will ensure that it is registered with the appropriate taxing authority.

  

	22.	Management 

  
 The Distributor (or if the Distributor is a company, the person specified in Part 4 of the Schedule, or such other person as Canon and the Distributor later agree in writing) will personally manage the Distributor
Business and not delegate or assign the task to any other person or company without Canon’s prior written consent which shall not be unreasonably withheld. The restriction does not apply to normal services provided by employees of the
Distributor, nor to absence of the person specified due to annual vacation or illness for a period not exceeding six (6) weeks. 
  

	23.	Business Records and Methods of Operation 

  
 The Distributor will keep proper accounting and trading records which at all times accurately reflect the financial position of the Distributor’s Business. If
required by Canon, the Distributor will make available to Canon or its representatives, all information, accounting and trading records necessary to enable Canon or its representatives to make an informed assessment of the 

  

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financial state and creditworthiness of the Business. Such information will only be made available to those Canon employees or representatives who reasonably
require the information in order to review and assess the Distributor’s Business. 
  

	24.	Confidentiality 

  

	24.1	The Distributor will maintain strict confidentiality about Canon’s methods of business including but not limited to any Technical Manuals or other similar information belonging
to Canon, Canon’s trade secrets and marketing, advertising and promotional material. 

  

	24.2	The Distributor will not during the Term or after termination, disclose any confidential information received from Canon in the course of carrying on the Distributor Business unless
such disclosure is required by law. The Distributor will inform Canon of any disclosure required by law. 

  

	25.	Force Majeure 

  
 Neither Canon nor the Distributor shall be in default of this Agreement if such default results from force majeure. This expression shall include acts of God, strikes, lockouts, industrial disputes or disturbances,
civil disturbances (including but not limited to revolutions, insurrections, uprisings and riots), wars (whether declared or undeclared), hostilities, blockades, acts of sabotage, acts of enemies or unfriendly peoples, embargoes or other import or
export restrictions, perils of the sea, accidents of navigation, breakdown or injury to ships, breakdown or injury to or expropriation, confiscation or requisitioning of plant or facilities for the production, receiving, manufacturing, storage,
handling or delivery of the products, orders of any court or governmental authority, epidemics, landslides, lightning, earthquakes, fires, storms, floods, wash-outs, explosions or any other cause not within the reasonable control of the party
affected. 
  

	26.	Use of Canon’s Marks 

  

	26.1	The Distributor will use such Canon Marks in the conduct of the Distributor Business as are reasonably required from time to time by Canon. 

  

	26.2	The Distributor will supply Canon with samples for all proposed uses of the Marks, obtain Canon’s prior written consent to those uses, and not make any alterations to the Marks
without Canon’s prior written consent. 

  

	26.3	The Distributor will as far as practicable indicate prominently in respect of every written use of Canon Marks that the Marks are owned by Canon and that the Distributor is
operating as a permitted user. 

  

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	26.4	The Distributor will not without Canon’s prior written consent sell any Canon products under any trade mark, trade name, business name, symbol, insignia, logo, design, colour
scheme or any other mark or industrial property owned by or commonly identified or associated with any person other than Canon. 

  

	26.5	The Distributor will not: 

  

	 	(a)	Directly or indirectly represent that any products not obtained from Canon are Canon Products. 

  

	 	(b)	Otherwise pass off or represent products not supplied by Canon as being Canon Products. 

  

	 	(c)	Deliver or sell any Products supplied by Canon which he knows or suspects are defective. 

  

	 	(d)	Misrepresent the specification of Products supplied by Canon. 

  

	 	(e)	Do anything to diminish the value of the Canon Marks. 

  

	26.6	The Distributor will immediately notify Canon of any claims against or infringement of Canon’s rights associated with the Marks of which he becomes aware. Canon will be solely
responsible for prosecuting or defending any claims with respect to the Marks. 

  

	26.7	In the event of the assignment, expiration or termination of this Agreement for any reason the Distributor shall immediately cease to use the Canon Marks and deliver up, or at the
discretion of Canon, destroy any printed matter in the possession of, owned by or under the control of the Distributor and carrying the Canon Marks. 

  

	27.	Corporation as Distributor 

  

	27.1	If the Distributor is a corporation and the Distributor proposes to allot or register any transfer or transfers of shares in the Distributor which amount to 25% or more in total of
the issued shares in the Distributor, this will be considered to be a proposed assignment of this Agreement, and may only occur with Canon’s prior written consent. Canon will not unreasonably withhold its consent where the Distributor satisfies
Canon that the proposed change in shareholding will not adversely affect the ability of the Distributor to properly conduct the Distributor Business and comply with all obligations placed on the Distributor by this Agreement.

  

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	27.2	If the Distributor is a corporation the Directors will execute a Guarantee and Indemnity in the form set out in Part 6 of the Schedule. The Distributor and Directors acknowledge
that, notwithstanding Clause 1.2 of this Agreement, the Guarantee and Indemnity will apply to all monies owing to Canon, whether or not owing pursuant to this Agreement. 

  

	28.	Notice 

  

	28.1	Every notice, consent or approval given or required under this Agreement shall be in writing and may be given: 

  

	 	(a)	To Canon or the Distributor by: 

  

	 	(i)	Registered mail to the address specified in Part 5 of the Schedule in which case it will be considered to have been given two (2) days after posting; 

 

	 	(ii)	Facsimile to the numbers in Part 5 of the Schedule in which case it will be considered to have been served on the confirmation by the sending machine of successful transmission.

  

	 	(iii)	Except for any Notice of Termination pursuant to Clause 2.2, Clause 16 or Clause 17, by e-mail to the e-mail address set out in Part 5 of the Schedule. 

  

	 	(b)	In addition, Canon may give notice, consent or approval to the Distributor by personal service or by leaving it at the Distributor’s premises. 

  

	28.2	If the Distributor comprises two (2) or more persons, a notice, consent or approval given to one will be considered to have been given to all. 

  

	28.3	Any notice, consent or approval by Canon may be signed by the Secretary of Canon, Canon’s solicitor, the relevant State or Territory Sales Manager or by any other person with
authority from Canon to sign or whose authority to sign is subsequently ratified by Canon. 

  

	29.	Waiver 

  
 To the extent permitted by law, it is agreed that the waiver by Canon of a breach of this Agreement by the Distributor will not be a waiver of any subsequent, similar or different breach nor will it affect or
prejudice any of Canon’s rights or remedies under this Agreement. 
  

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	30.	Partial Invalidity 

  
 If any part or provision of this Agreement is invalid, such invalidity will not affect the enforceability of any other part or provision. 
  

	31.	Entire Agreement 

  
 This Agreement represents the entire agreement between Canon and the Distributor in relation to the subject of the Agreement. No variation will be effective unless in writing and executed by both parties. 

 

	32.	Acknowledgement by Distributor 

  
 The Distributor acknowledges that before executing this Agreement he has: 
  

	(a)	carefully read the provisions of this Agreement and has understood them; and 

  

	(b)	not relied upon any statement, representation or warranty made by Canon other than as set out in this Agreement. 

  

	33.	Definitions 

  

	33.1	In this Agreement words referring to the singular number include the plural number and vice versa, words referring to any one of the three genders also include the other two genders
and words referring to persons include corporations. 

  

	33.2	The headings in this Agreement have been inserted only to facilitate reference and will not be taken as being of any significance in the construction, interpretation or operation of
this Agreement. 

  

	33.3	This Agreement will be construed and interpreted according to the laws of the State of New South Wales, in Australia. 

  

	33.4	If the Distributor comprises more than one person, those persons are bound by this Agreement jointly and severally. 

  

	33.5	In this Agreement the following words will have the following meanings, unless the context otherwise requires: 

  

	 	(a)	“Benchmark Rate” means the interest rate published from time to time by the National Australia Bank Limited and described by that Bank as its benchmark rate, or if such a
rate ceases to be published, such other rate as Canon in its reasonable opinion believes is an appropriate substitute. 

  

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	 	(b)	“Canon Consumable Items” means items used in Canon BISG Products including but not limited to toner, starter and paper. “Consumables” has a similar meaning.

  

	 	(c)	“Canon BISG Products” means those Canon BISG products listed in Part 3 of the Schedule, as amended from time to time, Canon consumable items and Canon spare parts.
“Products” has a similar meaning. 

  

	 	(d)	“Canon Marks” includes all trade marks, trade and business names, symbols and insignia of Canon Inc. or Canon, and any other identifying marks, designs, colour schemes or
industrial or intellectual property owned, adopted or used by Canon or Canon Inc in relation to the sale of Canon BISG Products. “Marks” has a similar meaning. 

  

	 	(e)	“Canon Spare Parts” means replacement component parts for Canon Products. “Spare parts” and “parts” have similar meanings. 

  

	 	(f)	“Distributor Business” means the business of the sale and servicing of Canon BISG Products using Canon marks within the Territory. 

  

	 	(g)	“The Distributor” includes the Distributor, his employees, agents, successors and assignees, and where the Distributor is a corporation includes the directors of that
corporation. 

  

	 	(h)	“Month” means calendar month. 

  

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 THE SCHEDULE 
  

			
	 PART 1:
	  	 The Territory (Clause 1.1)

		
	 	  	 Papua New Guinea

	 	  	 (see attached map)

  

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	 PART 2:
	 	The Commencement Date (Clause 2.1)
		
	 	 	1 July 2003
		
	 PART 3:
	 	The Products (Clause 3)
			
	 	 	PART 3.1:	  	The Products which the Distributor may buy and resell on an exclusive basis in the Territory.
			
	 	 	 	  	 •      BISG Copier/Printers

			
	 	 	 	  	 •      BISG Facsimile Machines

			
	 	 	PART 3.2:	  	The Products which the Distributor may buy and resell on a non-exclusive basis in the Territory.
			
	 	 	 	  	Not applicable.
			
	 	 	PART 3.3:	  	The Products which the Distributor may not buy and resell.
			
	 	 	 	  	Not applicable.
		
	 PART 4:
	 	Management (Clause 22)
		
	 	 	Mr Mike McCutcheon
		
	 PART 5:
	 	Notices (Clause 28)
		
	 	 	Mr Mike McCutcheon
	 	 	Datec (PNG) Ltd
	 	 	Waigani Drive
	 	 	PO Box 504
	 	 	Port Moresby
	 	 	National Capital District
	 	 	PAPUA NEW GUINEA
		
	 	 	Phone: 0011 675 325 9022
	 	 	Fax: 0011 675 325 9066
	 	 	Email: mmccutcheon@datec.com.pg
		
	 PART 6:
	 	Personal Guarantee (Clause 27.2)

  

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 DEED OF PERSONAL GUARANTEE AND INDEMNITY 
  

	To:	Canon Australia Pty Limited 

 (ACN 005 002 951) 

1 Thomas Holt Drive 
 NORTH RYDE NSW 2113

  
                          (FULL NAME)
                         Of
                         (PRIVATE ADDRESS)
                                        
         
 his administrators and/or the trustees of his estate (the “Guarantor”) 
  
 HEREBY AGREES to provide this Guarantee to Canon Australia Pty Limited for
itself and on behalf of its Subsidiaries. 
  

	1.	In this Guarantee “Canon” shall mean Canon Australia Pty Limited on its own account and as agent for each of its Subsidiaries (as defined in the Corporations Law) that may
from time to time provide financial accommodation to the Dealer, and their respective successors and assigns. 

  

	2.	The Guarantor unconditionally guarantees to pay Canon on demand: 

  

	 	(a)	the unpaid invoice price of goods and/or services supplied by Canon or any of its Subsidiaries to ...(NAME OF TRADING ENTITY)..., its successors and permitted assigns
(the “Dealer”) whether such supply was made before or after the execution of this Guarantee and notwithstanding that the Guarantor had no notice of any omission on the part of the Dealer to pay for such goods or services; and

  

	 	(b)	all monies which already are or may at any time in the future be owing by the Dealer to Canon on any account whatsoever (whether on its own account or on account of its
Subsidiaries) including, without limiting the generality of the foregoing, all monies arising by way of costs, expenses, losses and damages incurred by Canon or any of its Subsidiaries arising from the default by the Dealer under or relating to the
supply of goods or services and/or the provision of financial accommodation to the Dealer by Canon or any of its Subsidiaries. 

  

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	  	Distributor Agreement

  

	3.	The Guarantor agrees as an independent primary obligation to indemnify Canon on demand for and against all costs, expenses, losses and damages incurred by Canon as a result of this
Guarantee or any agreement between Canon and the Dealer relating to the supply of goods and services and/or the provision of financial accommodation by Canon to the Dealer being or becoming void, voidable or unenforceable for any reason whatsoever,
whether or not known to Canon, the amount of such costs, expenses, losses and damages being the amount which Canon would have otherwise been entitled to recover from the Dealer. 

  

	4.	The Guarantor’s liability shall not be affected by the granting of time, credit or any indulgence to the Dealer or by any other dealing, matter or thing which but for this
provision could or might operate to abrogate, prejudice or affect this Guarantee. 

  

	5.	Canon may act as if the Guarantor is the principal debtor and the Guarantor waives any rights inconsistent with this Guarantee. The Guarantor’s obligations are in addition to
and not in substitution for any other guarantee or security which Canon may now or hereafter hold for the obligations of the Dealer. No demand need be made by Canon on the Dealer before enforcing its rights against the Guarantor.

  

	6.	The Guarantor agrees that this Guarantee shall be a continuing guarantee and shall be irrevocable and remain in full force and effect (notwithstanding that Canon may at any time and
without giving notice to the Guarantor, refuse to further supply goods, services and/or financial accommodation to the Dealer) until a written notice discharging the Guarantor from his obligations is given to the Guarantor by Canon.

  

	7.	All benefits and payments received by Canon from or on account of the Dealer (whether in a winding up or bankruptcy or from the realisation of a security or otherwise) capable of
being applied in reduction of the Dealer’s debt shall be applied by Canon as payments in gross and the Guarantor’s right to be subrogated to Canon in respect thereof shall not arise until Canon shall have received the full amount of its
claim against the Dealer so that if the Guarantor becomes insolvent, Canon shall be entitled to prove for the total indebtedness of the Dealer to Canon. 

  

	8.	Upon the winding up or bankruptcy of the Dealer, the Guarantor shall not prove in such winding up or bankruptcy in competition with Canon unless requested to do so by Canon and the
Guarantor authorises Canon at Canon’s discretion to prove for all monies which the Guarantor has paid under this Guarantee and to retain and carry into a suspense account and appropriate at the discretion of Canon any monies received until
Canon shall have received 100 cents in the dollar in respect of the Dealer’s indebtedness to Canon. If the Guarantor receives in such winding up or bankruptcy, any dividend whatsoever on account of any monies owing to the Guarantor by the
Dealers on any account whatsoever, the Guarantor shall hold the amount of such dividend upon trust, pay the sum into the suspense account and appropriate the same in accordance with this Guarantee. 

  

 Page 23 of 27 

			
	

	  	Distributor Agreement

  

	9.	If any claim is made that any moneys received by Canon pursuant to this Guarantee must be repaid or refunded or that any settlement, transaction or conveyance relating to payments
to Canon pursuant to this Guarantee is void and voidable under any law: 

  

	 	(a)	the Guarantor shall do, execute and deliver all such acts and instruments as Canon may require to reinstate this Guarantee; and 

  

	 	(b)	if the claim is upheld, compromised or admitted, Canon shall be entitled to the same rights, powers and remedies against the Guarantor as if the relevant moneys had never been
applied in payment or the settlement, transaction or conveyance had not taken place 

  
 and this clause shall survive the release or termination of this Guarantee. 
  

					
	SIGNED        at	  	)	  	 
	 	  	)	  	 
	 by
	  	)	  	 
	 	  	)	  	 
	 on the                      day of
                    , 2001
	  	)	  	 
	 	  	)	  	 
	 in the presence of:
	  	)	  	 
	 	  	 	  	 
	 	  	 	  	 Please print name

  

 Page 24 of 27 

			
	

	  	Distributor Agreement

  

 APPROVAL FOR CREDIT APPLICATION CHECKS 
  

	1.	I acknowledge that Canon Australia Pty Limited has informed me in accordance with s.18E(8)(c) of the Privacy Act 1988, that certain items of personal information about me contained
in this application and permitted to be kept on a credit information file might be disclosed to a credit reporting agency. 

  

	2.	In making this application I agree, in accordance with the provisions of paragraphs (b), (e) and (h) of s.18K(1) and/or s.18L(4) of the Commonwealth Privacy Act that:

  

	 	•	 	disclosure by a credit reporting agency; and/or 

  

	 	•	 	use by Canon Australia Pty Limited 

  
 of the relevant information referred to in those sections may occur for the purpose of assessing this application. 
  
 I acknowledge that this agreement shall continue to have effect for the
duration of the trading account should my application be approved. 
  

	3.	I agree that, for the purposes of s.18N(1)(b) of the Privacy Act 1988, Canon Australia Pty Limited may disclose information derived from a report or the entire report in its
possession to other credit providers for the purpose of providing a reference or references to that other credit provider in the conduct of my account. 

  

	4.	Full name          ________________________________________________________________________ 

  
 Date of
Birth  _________________________________________________________________________ 
  
 Drivers Licence No ____________________________________________________________________ 
  

	
	DULY SIGNED
	
	  
	 (Signature)

	
	  
	 (Date)

  

 Page 25 of 27 

			
	

	  	Distributor Agreement

  

 PERSONAL STATEMENT OF ASSETS AND LIABILITIES OF: 
  
 NAME:  __________________________________________________________________________________ 
  
 ADDRESS:  _______________________________________________________________________________ 
  

							
	 LIABILITIES  

	 	     $    

	  	 ASSETS    

	  	     $    

	Bank Overdraft:	 	 	  	 Bank Balance:
	  	 
	Bank:______________________	 	 	  	 Loans to:_________________
	  	 
	___________________________	 	 	  	 _________________________
	  	 
				
	Loans Owing to:	 	 	  	 _________________________
	  	 
	(HP, Personal Loans,	 	 	  	 _________________________
	  	 
	etc):_______________________	 	 	  	 _________________________
	  	 
	___________________________	 	 	  	 _________________________
	  	 
				
	Other Current	 	 	  	 Other Current Assets:
	  	 
	Liabilities: ________________	 	 	  	 _________________________
	  	 
	___________________________	 	 	  	 _________________________
	  	 
				
	 SUB TOTAL
	 	 	  	SUB TOTAL	  	 
				
	Mortgages to:	 	 	  	 Land & Buildings:
	  	 
	___________________________	 	 	  	 Address__________________
	  	 
	___________________________	 	 	  	 _________________________
	  	 
	___________________________	 	 	  	 Address___________________
	  	 
	___________________________	 	 	  	 _________________________
	  	 
	Secured Loans:	 	 	  	 Furniture, Motor Vehicle,
	  	 
	___________________________	 	 	  	 Boats, Vans etc____________
	  	 
	___________________________	 	 	  	 _________________________
	  	 
	___________________________	 	 	  	 Current Market Value:
	  	 
	___________________________	 	 	  	 _________________________
	  	 
	Other Liabilities (Details):	 	 	  	 Investments/Shares etc:
	  	 
	___________________________	 	 	  	 _________________________
	  	 
	___________________________	 	 	  	 _________________________
	  	 
	___________________________	 	 	  	 _________________________
	  	 
	___________________________	 	 	  	 _________________________
	  	 
	___________________________	 	 	  	 Other Assets:
	  	 
	___________________________	 	 	  	 _________________________
	  	 
				
	TOTAL LIABILITIES	 	 	  	 TOTAL ASSETS
	  	 

  
 The foregoing statement has been
carefully read by the undersigned and is to my knowledge in all respects complete, accurate and truthful. 
  
 Signed:
                                        
                                        
    Date:
                                        

  
 Witness:
                                        
                                        

  

 Page 26 of 27 

			
	

	  	Distributor Agreement

  

 This Agreement is made on the 26th day of June         , 2003. 
  

	
	 Signed as an Agreement.

	
	 For and on behalf of
 DATEC (PNG) LTD

	
	/S/    MICHAEL
MCCUTCHEON        
	 Signature

	
	Michael McCutcheon
	 Name (please print full name)

	
	Group General Manager
	 Title

	
	 For and on behalf of
 CANON AUSTRALIA PTY LIMITED

	
	/s/    Illegible        
	 Signature

	
	/s/    Illegible        
	 Name (please print full name)

	
	Manager Director
	 Title

  

 Page 27 of 27

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