Purchase Order Addendum 011B1003 between Transbotics Corporation and RR Donnelley & Sons Company for Automated Guided Vehicle System

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Summary

This agreement is a purchase order addendum between Transbotics Corporation and RR Donnelley & Sons Company for the design, manufacture, sale, installation, and warranty of an automated guided vehicle system for RR Donnelley's Glasgow, Kentucky facility. The contract outlines specifications, delivery and startup dates, purchase price and payment schedule, acceptance testing, installation, training, and a two-year warranty. Transbotics is responsible for delivering and installing the system, while RR Donnelley agrees to purchase and test the equipment according to the terms specified.

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EX-10.2 3 a4733633ex102.txt PURCHASE ORDER Exhibit 10.2 PURCHASE ORDER ADDENDUM: 011B1003 GLASGOW, KY MANUFACTURING DIVISION DATE: September 24, 2004 Upon acceptance of this Purchase Order addendum by a dully authorized officer of Transbotics Corporation this purchase Order Addendum 011B1003 and any subsequent Purchase change orders (collectively referred to as the ORDER) shall be incorporated into the Master Equipment Purchase Agreement ("AGREEMENT") dated September 24, 2004 between Transbotics Corporation (TRANSBOTICS) and RR Donnelly & Sons Company ("RR DONNELLEY) I. SPECIFICATIONS TRANSBOTICS shall design, manufacture, sell, install and warrant to RR DONNELLEY and RR DONNELLEY agrees to purchase from TRANSBOTICS an automatic guided vehicle system, as described in the attached Schedule "A": Pricing Recap and conforming to the following SPECIFICATIONS:
SPECIFICATION DESCRIPTION PAGES DATE ----------------- --------------------------------------- ----------- ---------------- RR Donnelley Performance 2004-11-01 Specifications for Automated Guided 19 6/16/2004 Vehicle System for Glasgow Kentucky Version 1.0 ----------------- --------------------------------------- ----------- ---------------- GENERAL CONDITIONS FOR WORK G-1 IN OR ON RR DONNELLEY & SONS COMPANY PROPERTY 4 7/2002 ----------------- --------------------------------------- ----------- ---------------- ENVIRONMENTAL CONDITIONS E-1 FOR MATERIALS SUPPLIED TO RR DONNELLEY & SONS COMPANY 1 7/2002 ----------------- --------------------------------------- ----------- ----------------
(The link to the most current version of the G-1 & E-1 Specifications can be found at: http://www.rrdonnelley.com/wwwrrd/supplierinfo/supplierinfo.asp) II. INTENDED USE TRANSBOTICS understands that RR DONNELLEY intends to use the EQUIPMENT primarily in the transporting of printed product within its Glasgow KY manufacturing Division. III. DELIVERY AND STARTUP DATES A. DELIVERY DATE AND STARTUP DATE TRANSBOTICS acknowledges that the time of delivery of the EQUIPMENT is of the essence. Therefore, TRANSBOTICS agrees to design, manufacture, assemble, preshipment test, pack, crate and load the EQUIPMENT on the carrier selected by RR DONNELLEY on the DELIVERY DATE(s) indicated below, Fob: Charlotte, NC (or other manufacturing point), for shipment to RR DONNELLEY's Glasgow, KY Manufacturing Division. ------------ ---------------------------- ----------------------- Phase ORIGIN DELIVERY DATE STARTUP DATE (end of the window) ------------ ---------------------------- ----------------------- I December 6, 2004 December 23, 2004 ------------ ---------------------------- ----------------------- IV. SHIP TO ADDRESS RR Donnelley & Sons Co. 120 Donnelley Drive. Glasgow, KY 42141-1060 USA Attn: David Richardson V. PURCHASE PRICE A. PURCHASE PRICE The PURCHASE PRICE of the EQUIPMENT is FIVE HUNDRED SIXTY SEVEN THOUSAND, NINE HUNDRED FIFTY DOLLARS, ($567,950), (Fob: Charlotte, NC, loaded onto the carrier) which shall be paid in accordance with the payment schedule indicated below and pursuant to the terms in of the AGREEMENT. TRANSBOTICS's invoice(s) will certify that the documents or events described in the payment schedule have been furnished and are correct and/or have occurred. B. PAYMENT SCHEDULE
--------- --------------------------- ------------ ---------------- ----------- --------------- Payment Contingency Portion of Amount ($) Approx. Terms No. Purchase Date (Net Price (%) Days) --------- --------------------------- ------------ ---------------- ----------- --------------- 1 Acceptance of this Order 10% $56,795.01 9/1/2004 5 --------- --------------------------- ------------ ---------------- ----------- --------------- 2 Mutual Agreement on 10% $56,795.02 9/10/2004 45 Functional Specification --------- --------------------------- ------------ ---------------- ----------- --------------- 3 Successful Installation of 30% $170,385.03 12/9/2004 45 Control System & Truck #1 in Glasgow --------- --------------------------- ------------ ---------------- ----------- --------------- 4 Upon Notification that 20 $113,590.04 12/17/2004 45 Vehicles 2 through 5 have shipped --------- --------------------------- ------------ ---------------- ----------- --------------- 5 On start-up at the site of 20% $113,590.04 12/23/2004 45 the complete system --------- --------------------------- ------------ ---------------- ----------- ---------------
The balance of the PURCHASE PRICE not indicated in the payment schedule shall be due upon the successful completion of the ACCEPTANCE TEST pursuant to the terms and conditions of the AGREEMENT, provided that any defects in materials or workmanship called to the attention of TRANSBOTICS by RR DONNELLEY shall have been corrected to the reasonable satisfaction of RR DONNELLEY. Should RR DONNELLEY delay STARTUP or the ACCEPTANCE TEST for reasons other than correction of defects, the balance will be due no later than sixty (60) calendar days after the scheduled STARTUP. VI. ACCEPTANCE TEST RR DONNELLEY shall conduct an ACCEPTANCE TEST of the EQUIPMENT upon STARTUP in RR DONNELLEY's facility. The ACCEPTANCE TEST period shall be conducted for a thirty (30) day period commencing not later than fifteen (15) days after STARTUP of the EQUIPMENT. During the testing period the EQUIPMENT shall reliably perform in accordance with requirements outlined in the SPECIFICATIONS. VII. INSTALLATION, STARTUP & TRAINING The PURCHASE PRICE includes installation, training and start-up services. Training on the vehicles shall be held at TRANSBOTICS facility before they ship. Training on the control system shall be held at DONNELLEY's facility after installation and check out of the control system is completed. VIII. WARRANTY PERIOD (PARTS & LABOR) TRANSBOTICS agrees to warrant the EQUIPMENT for a period of two (2) years, commencing upon the ACCEPTANCE DATE. The terms and conditions of this warranty are contained Section XVIII of the AGREEMENT. IX. NON-LEGAL CONTACTS
--------------------- ----------------- ---------------- ---------------- ---------------- -------------------------- TITLE Name PHONE FACSIMILE MOBILE EMAIL --------------------- ----------------- ---------------- ---------------- ---------------- -------------------------- RR Donnelley --------------------- ----------------- ---------------- ---------------- ---------------- -------------------------- Supply Chain Paul Lovern ###-###-#### ###-###-#### ###-###-#### ***@*** Mgmt - Downers Grove --------------------- ----------------- ---------------- ---------------- ---------------- -------------------------- Supply Chain Dennis French ###-###-#### ###-###-#### ***@*** Mgmt - Lancaster --------------------- ----------------- ---------------- ---------------- ---------------- -------------------------- Transportation Pat O'Malley ###-###-#### ###-###-#### ***@*** --------------------- ----------------- ---------------- ---------------- ---------------- -------------------------- Project Engineer David Richardson ###-###-#### ###-###-#### ***@*** --------------------- ----------------- ---------------- ---------------- ---------------- -------------------------- Transbotics --------------------- ----------------- ---------------- ---------------- ---------------- -------------------------- Sales Randy Jennings ###-###-#### ###-###-#### ###-###-#### ***@*** x113 --------------------- ----------------- ---------------- ---------------- ---------------- -------------------------- Contract Claude Imbleau ###-###-#### ###-###-#### ###-###-#### ***@*** Administration x200 --------------------- ----------------- ---------------- ---------------- ---------------- -------------------------- Transportation Rick Nicholson ###-###-#### ###-###-#### ###-###-#### ***@*** x308 --------------------- ----------------- ---------------- ---------------- ---------------- -------------------------- Parts & Service Allan Quimby ###-###-#### ###-###-#### ###-###-#### ***@*** x109 --------------------- ----------------- ---------------- ---------------- ---------------- --------------------------
X. ENVIRONMENTAL REGULATIONS TRANSBOTICS agrees to comply with Specifications E-1 of May 1999 "ENVIRONMENTAL CONDITIONS FOR MATERIALS SUPPLIED TO RR DONNELLEY & SONS COMPANY." This specification should also be interpreted to include equipment as applicable. TRANSBOTICS shall be responsible for labeling of shipments provided for by Section 611 of the 1990 Federal Clean Air Act. TRANSBOTICS shall be considered to be the "importer" from the perspective of that Act. XI. Phases II and III Guarantees The detailed design of phases II and III of this project are not fully defined at this time. If ordered by RR DONNELLEY on or before March 31, 2005, Transbotics will guarantee to freeze the phase timing and component pricing for those phases to the pricing and timing outlined in TRANSBOTICS proposal MKT-PROP-0403-001-REV3. In witness whereof, the parties hereto have executed this Purchase Order Addendum as of the day and year indicated below: TRANSBOTICS CORPORATION RR DONNELLEY & SONS COMPANY By: /s/ Claude Imbleau By: /s/ Timothy Clark ------------------ ----------------- Authorized Signature Authorized Signature Name: Claude Imbleau Name: Timothy Clark ------------------ ----------------- (Typed or Printed) (Typed or Printed) Title: CEO, President Title: Vice President, Indirect Supply Chain ------------------ ------------------------------------- (Typed or Printed) (Typed or Printed) Date: 9/29/04 Date: 9/23/04 --------------- ---------------