EXHIBIT 99.1 Supplementary Agreement to the OEM Manufacturing Contract Between Shandong Xiaoya Group Company Limited (hereinafter referred to as "Xiaoya") And TurboChef Technologies Inc. (hereinafter referred to as "TurboChef") After friendly...
EXHIBIT 99.1
Supplementary Agreement to the OEM Manufacturing Contract
Between
Shandong Xiaoya Group Company Limited (hereinafter referred to as "Xiaoya")
And
TurboChef Technologies Inc. (hereinafter referred to as "TurboChef")
After friendly negotiations, both Xiaoya and TurboChef enter into the following
supplementary agreement which will be regarded as the legal supplement and
amendment for the OEM manufacturing contract that was signed by both parties on
May 19/th/, 2000.
1) From Apr. 2002 to Aug. 2003, Turbochef agrees to purchase 5,000 additional
units of TurboChef C3 commercial countertop ovens (hereinafter referred to as
"C3 oven" or "C3 ovens") from Xiaoya as per the attached Schedule B. Both
parties may agree to amend the production schedule under mutually acceptable
terms and conditions. The FOB QINGDAO, CHINA unit price for the first 2,000
C3 ovens (single phase US or single phase UK) is agreed by both parties to be
++ USDollars/unit, and the FOB QINGDAO, CHINA unit price for next 3,000 C3
ovens (single phase US or single phase UK) is agreed to be ++USDollars/unit.
The unit price of a three phase oven shall be ++ USDollars/unit greater than
the single phase unit price, as agreed to above.
2) As per agreement, Xiaoya is responsible for purchasing parts and components
for C3 oven. However, TurboChef is responsible for purchasing and shipping
parts to China that are only available in USA, which is called USA sourced
parts and components. The price for USA sourced parts and components is CIF
JINAN, CHINA price. The list and price for USA sourced parts and components
are listed on the BOM (Schedule A). Each time TurboChef brings USA sourced
parts and components from USA a meeting should be held between Xiaoya and
TurboChef to review the list and make any changes to the items listed, prices
and shipping costs. Invoices will be provided by both parties if required. As
both TurboChef and Xiaoya desire to purchase all components from China/Asia
sources, the goal is that Xiaoya will eventually source all USA sourced parts
and components. Any USA parts and components sourced by Xiaoya and approved
by TurboChef that cost less than USA BOM prices, Xiaoya has the right to keep
the savings. Prior to purchasing any parts on TurboChef's behalf, Xiaoya will
first utilize all the parts already purchased by TurboChef.
3) TurboChef will TT full price less cost of USA sourced parts and components to
Xiaoya before shipment in lots, then Xiaoya will effect the shipments.
4) TurboChef will supply 3 phase purchasing parts to Xiaoya during the course of
this agreement.
SHANDONG XIAOYA GROUP CO. LTD. TURBOCHEF TECHNOLOGIES INC.
CHAIRMAN: SHI SHOUGONG CHAIRMAN: XXXXXXX XXXXXXX
/s/ Shi Shougong /s/ Xxxxxxx X. Xxxxxxx
------------------------------- -------------------------------
(SIGNATURE AND STAMP, DATE) (SIGNATURE AND STAMP, DATE)
[++ represents confidential treatment request]
REV March 11th SCHEDULE A C3 Ext Unit
Part No BML 5000 UNITS
NUMBER REV QTY DESCRIPTION INCLUDE
CHINA SOURCED
ITEMS
PURCHASE PARTS # item
19761 B 1 4.00 Leg 4" ++
C0076 B 1 1.00 MOTOR, FLANGE MOUNT, 1 HP ++
C0185 1 1.00 CATALYTIC CONVERTER ++
C0238 1 1.00 VACUUM FLUORESCENT DISPLAY ++
C0254 D 1 1.00 COVER, DOOR PLASTIC ++
C0262 1 1.00 MAGNETRON BLOWER ++
C0265 1 1.00 SMT CONTROL ++
C0280 1 1.00 HEATSINK & SSR Assy ++
C0282 1 1.00 SPROCKET, MODIFIED, STIRRER SHAFT ++
C0283 1 1.00 SPROCKET, MODIFIED, MOTOR ++
C0284 1 1.00 BELT, TIMING, 0.80 PITCH ++
C0286 1 1.00 EMI FILTER ++
C0322 1 1.00 CIRCUIT BREAKER, 35A DP W/ TRIP ++
C0325 B 1 1.52 SEAL, ENVIRONMENTAL ++
C0332 A 0 0.00 WATLOW 240V HEATER ++
C0333 1.00 WATLOW 208V HEATER ++
C0337 1 9.00 SPEED CLIP ++
C0338 1 9.00 BALL STUD ++
C0353 1 1.00 STRAIN RELIEF BACK PANEL ++
C0399 1 0.51 20" CABLE, 3X #3 XXXXXXXX, XX0000 ++
C0401 1 1.54 WIRE XX 0000, 00 XXX XXXXX (XXXX VOLTAGE ++
C0504 1 2.00 WASHER, NYLON ++
C0505 1 1.00 Lock washer for Stir Blade M4 ++
C0541 1 2.00 cam follower ++
C0542 1 2.00 SPRING ++
C0554-1 0 1.00 Power Plug ++
C0554-2 0 2.30 32A240V 2P 3WIREPOWER CORD METERE ++
C0708 1 2.00 HELPER SPRING ++
C0792 1 1.00 ETL Label ++
C0911 0 0.00 Aspen Motor & Controller ++
C0921 1 1.00 Overlay for Key Pad Marnot ++
C0980 0 3.00 EMI FILTER 3-PHASE CORCOM ++
C0981 0 1.00 EGO-HI LIMIT SWITCH ++
C0982 0 2.00 Heater CIRCUIT Breaker 3 phase ++
C0984 0 1.00 MAG CIRCUIT BREAKER RELAY ++
C0984-1 1.00 MAG CIRCUIT BREAKER RELAY ADD-ON ++
C0985 0 1.00 CRYDOM RELAY -3 PHASE ++
C100206 1 1.00 CAPACITOR, DUAL, 1.05uF, 1.15, 2500VAC ++
C100441 1 1.00 CONTROLLER, MOTOR SP200 ++
C100730 1 0.00 XXX, XXXXXXXX, XX, #000 ++
C100860 1 1.00 MAGNETRON ++
C101733 1 1.00 SPRING, COMPRESSION ++
C102065 1 2.00 THERMOCOUPLE, TYPE K, 1/16" ++
1 [++ represents confidential treatment request]
C102091 1 1.00 TRANSFORMER, FILAMENT, H.V ++
C102093 1 1.00 TRANSFORMER, H.V 820MW4 ++
C102650 1 2.00 WAVESPRING WASHER, 9" ++
C102708 1 1.00 BLOWER WHEEL (HEAT SLINGER) ++
C7001199 1 0.16 WIRE, THERMOCOUPLE ++
C7001321 1 1.00 SEAL RING WAVE GUIDE ++
C7001333 1 1.00 SEAL PLUG, TEFLON ++
C7001339-1 1 1.00 ASSY, WAVEGUIDE CLAMP ++
M7264-1 1 2.30 USA POWER CORD, 40 AMP, 250V,2 POLE 3 WIRE ++
M7264-2 1 1.00 USA PLUG, NEMA 6-5OP ++
M9608 A 1 1.00 POWER SUPPLY, 24 VDC ++
++
C102070 1 1.00 THERMOSTAT, KLIXON ++
C102085 1 1.00 THERMOSTAT, 000 X, XXXXX XX XXXX ++
C0278 1 3.00 RELAY ++
C0309 1 4.00 SOCKET, ++
C0330 A 1 3.00 SWITCH, DOOR Omron ++
C0900 1 120.00 WELD NUTS,M4 ++
C0901 1 10.00 WELD NUTS, M5 ++
C100891 1 1.00 MOTOR, STIRRER, 6 RPM ++
R7603 1 1.00 THERMOSTAT, HIGH LIMIT ++
C0910 1 1.00 Axial Fan ++
C0020 1 1.00 LABEL, CAUTION MICROWAVES ++
C0167 1 1.00 CAP, BLOWER ++
C0256 B 1 1.00 INSULATION KIT ++
C0264 1 1.00 KEYPAD, DECAL ++
C0267 1 1.00 HANDLE, XXXX CHAMBER DOOR ++
C0279 1 4.00 SPACER for pc board ++
C0289 1 1.00 SHAFT, STIRRER ++
C0290 1 1.00 HUB, STIRRER ++
C0293 1 1.00 Din Rail 5.9" ++
C0294 1 1.00 Din Rail 5.10" ++
C0298 A 1 4.00 SPACER, BLOWER MOUNT ++
C0312 A 1 1.00 INSULATION, XXX XXXXX, 0X0X.00 XXXXX(XXXX) ++
C0321 1 1.00 FAN GUARD ++
C0339 1 2.00 FITTING, THERMOCOUPLE ++
C0342 1 1.00 HEATER, GASKET ++
C0350 1 2.00 SPACER, PHENOLIC (JUST FOR XXXXXXXX HANDLE) ++
C0351 A 1 4.00 STANDOFF, #6X.437 ++
C0422 A 1 1.00 Label DATA RATING PLATE & SERIA ++
C0424 A 1 1.00 LABEL, FUSE WARNING ++
C0502 1 2.00 DOWEL PIN ++
C0506 1 2.00 BEARING ++
C0511 1 2.00 BEARING ++
C0575 1 1.00 DOOR INSULATION ++
C0581 1 1.00 NAMEPLATE, "TURBOCHEF" ++
C0606 1 1.00 LABEL, EQUIPotentia symbol ++
2 [++ represents confidential treatment request]
C0653 L 1 1.00 E-PROM CHIP ++
C0701 1 2.00 12 AMP FUSE ,ATM-12 ++
C0702 1 1.00 25 AMP FUSE, ATM-25 OR 25Agf ++
C0703 1 3.00 FUSE HOLDER,FERRAZ SHAWMUT US3J ++
C0704 1 0.00 XXXXXXXX XXXXX, XXXXXXX XX 0X ++
C0705 1 2.00 END COVER, PHOENIX D-UK4/10 ++
C0706 1 1.00 FIXED BRIDGE SCREW FB 10-8 ++
C0714 1 0.50 50ML LIQUID LOCK-TITE 272 (HIGH TEMPERATURE) ++
C0715 1 18.75 insulation tape 425 ++
C0716 1 1.00 LABEL, HIGH VOLTAGE LABEL (33570) ++
C0717 1 1.00 LABEL, CAUTION HOT (11699) ++
C0718 1 1.00 Shrink Tubing 2mm ++
C0721 1 1.00 Shrink Tubing 10 mm ++
C0723 1 1.00 Shrink Tubing 18mm ++
C0724 1 2.00 High Voltage Insulation for Heater Connections 6mm ++
C0793 1 1.00 MONTH & YEAR LABLE FOR DATA PLATE ++
C0794 1 1.00 SERIAL NUMBERS FOR DATA PLATE ++
C0795 1 1.00 Serial Number to put on Label on Front of Oven ++
C0797 1 1.00 Serial number Label on Front Flange ++
C0798 1 1.00 TerminaL BLOCK, Label 1 ++
C0799 1 1.00 Termainal Block Label 2 ++
C0800 1 1.00 Waring Label Baby Food ++
C0801 1 1.00 Warning Label container Food ++
C0802 1 1.00 Relay Label1 ++
C0803 1 1.00 Relay Label2 ++
C0804 1 1.00 Relay Label 3 ++
C0805 1 1.00 Relay Label 4 ++
C0806 1 1.00 Relay Label 5 ++
C0807 1 1.00 Fuse Label 1 ++
C0808 1 1.00 Fuse Label2 ++
C0809 1 1.00 Fuse Label 3 ++
C100173-1 1 25.00 CABLE TIE CLAMP ++
C100173-2 1 90.00 NYLON CABLE TIES ++
C1001961A 1 1.00 STRAIN RELIEF MOTOR ++
C100480 1 1.00 DIODE ++
C100690 1 1.00 INSULATOR, KLIXON ++
C100791 1 0.50 LIQUID `Locktitie 240 ++
C102744 1 2.00 LABEL, WARNING (DO NOT REMOVE) ++
C2647522 1 1.00 LABEL, CC Fuse ++
C2647523 1 1.00 LABEL, HIGH VOLTAGE ++
C2647524 1 1.00 Label, Exposure to Microwave Warning ++
C2647525 1 4.00 LABEL, SERVICE CAUTION ++
C2656129 1 1.00 LABEL, UL LISTING ++
C32341 1 1.00 CE Label ++
C4168 1 1.00 Ground Lug ++
C7000284 1 1.00 SHIM, SHAFT SEAL ++
C7000493 1 1.00 LABEL, PATENT ++
C7001154 1 1.00 LABEL, DANGER, EXPOSED FAN ++
C7001177 1 1.00 BLOCK, BEARING, BLOWER SEAL ++
3 [++ represents confidential treatment request]
C7001213 1 1.00 PLUG, WAVEGUIDE, QUARTZ ++
C7001406 1 1.00 LABEL, FCC/FDA NOTICE ++
R1580 1 4.00 terminal block & STOPS FOR CB, ++
R2331 1 3.25 silicone gasket (meters) ++
R7603-1 1 1.00 FITTING, THERMOSTAT ++
M3951 1 25.00 Double backed Tape for Cable Ties ++
C0950 1 1.00 Wire Labels ++
C0263 1 1.00 PLATTER, CERAMIC ++
C0609 1 1.00 Ref Dwg for Label Distribution ++
C0611 1 1.00 Ref Dwg for Power Cord Installation ++
C0711 1.00 HEAT SINK FOR SSRS ++
0.50 20 ML NON-SILICONE HEAT TRANSFER COMPOUND Electrolube
C0712 HTC 20S XX XXXXXXXXX LIMITED ++
C0713 2.00 RESISTORS ON SSR (VOLTAGE SUPRESSOR) ++
C0796 1 1.00 SchEMATIC DIAGRAM on inside RHS cover ++
C0920 1.00 ZDI Process ++
C7000302 1 1.00 CERAMIC, WAVEGUIDE CAP ++
C0951 1 Motor Vibration Test Procedure
C0952 Cusome Audit Procedure
C0953 Unit Test Procedure
Stainless
1.00 FREIGHT FROM USA inculded $10 to CC & $5 to Seal ring
wave guide ++
TOTAL USD$ Xiaoya Supplied Parts ++
140 503.83 TOTAL USD$ ++
Total RMB ++
Frt & Customs Clearance
DELETED PARTS
M9609 1 1.00 AXIAL FAN ++
C0184 1 1.00 HEATER ELEMENT, 240V ++
C0232 DELETE 1.00 HEATER GASKET
C0291 A DELETE 2.00 HINGE, DOOR
C0324 A del 1.00 RUBBER GASKET
C0328 A DELETE 1.00 TERMINAL BLOCK, ASSEMBLY, 3 POSITION
C0329 DELETE TERMINAL BLOCK, ASSEMBLY, 6 POSITION
C0359 A Delete 1.00 Wire Harnesses for C3
C0420 A 1.00 SCHEMATIC DIAGRAM
C0360 DELETE 1.00 INSULATION, DOOR
C0375 1.00 24 VOLT COIL @ 240 V
C0700 Delete 1.00 DELTA VFD-S MOTOR CONTROLLER
C0391 D del 1.00 XXXXXXXX XXXXX, 0 POSITION
C0413 C DELETE NEW DOOR SWITCH
C0423 A Delete 1.00 L
C0597 del 1.00 RESISTOR, 1K
C0599 del 2.00 FITTING, #6
4 [++ represents confidential treatment request]
C2646524 DELETE LABEL, UL LISTING
C6050060 DELETE PLATE, MOTOR INTERFACE
C7001253 Delete 1.00 LABEL, CAUTION "HOT SURFACES"
C7000339 DELETE LABEL, PREVENTIVE MAINTENANCE
C700-1322 DELETE WIRE STOP, WAVEGUIDE SEAL(PART OF 700-1339)
CBD DELETE SERIAL PLATE
CO296 DELETE 1.00 HEATER ELEMENT, 208V
CO383 DELETE HINGE, DOOR
CO453 A DELETE 3.00 DOOR SWITCH
CO463 DELETE DOOR HINGE ASS, .25" BEARING
M0158 del 3.00 FUSE HOLDERS
M3951 DELETE 1.00 TAPE, FOAM, CLOSED CELL
M7264 DELETE 1.00 CORD SET 40 AMP 250V 2P 3 WIRE
M9422 DELETE SWITCH, PRESSURE
No Cost
TO451 A 1.00 INSULATION LAYOUT
T0598 NEW 1.00 ASSY, RESISTOR
T0609 NEW 1.00 DISTRIBUTION DWG. OF LABEL
T0611 NEW 1.00 INSTALLATION REF. OF CORD
169.00 Original Contract May 00 ++
Total
Status as of Jan 2001
146.00 Same Parts ++
34.00 New Parts ++
-23.00 Deleted Parts ++
157.00 Total ++
Variance from May 00 contract ++
Major
Variances
Axial Fan
Circuit reaker
Wire Harness
contollers
Quartz
transformers
new parts less
deleted 1 hp
motor seal
ring wave
guide Blower
cap EMI Filter
Total
5 [** represents confidential treatment request]
Schedule B
----------
Delivery Schedule
-----------------
Units
April 2002 200
May 2002 200
June 2002 225
July 2002 225
August 2002 250
September 2002 250
October 2002 275
November 2002 300
December 2002 300
January 2003 300
February 2003 325
March 2003 350
April 2003 375
May 2003 400
June 2003 400
July 2003 400
August 2003 225
