EXHIBIT 10.14
Xxxxxx Micro Inc.
0000 Xxxx Xx. Xxxxxx Xxxxx
Xxxxx Xxx, Xxxxxxxxxx 00000
April 20, 2000
Xxxx Xxxxx
Chief Executive Officer
PeoplePC, Inc.
000 Xxxx Xxxxxx, Xxxxx 00
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
Subject: PeoplePC/Ford Alpha Roll-out
Dear Nick:
This Letter of Understanding ("XXX") is executed by and between Xxxxxx Micro
Inc. ("Ingram") and PeoplePC, Inc. ("PeoplePC") as of the date set forth above.
This XXX sets forth the terms and conditions under which Ingram will sell
certain Hewlett-Packard ("H-P") computer systems and related products to
PeoplePC in connection with People PC's Hewlett-Packard product alpha roll-out
to Ford Motor Company ("Ford"). Ingram and PeoplePC agree as follows:
1. Products Sold. Ingram will sell to PeoplePC the computer systems and
products in the quantity and type specified on the purchase order issued
from PeoplePC to Ingram and dated as of April 6, 2000, a copy of which is
attached to this XXX as Attachment A (the "PO"). The computer systems and
related products in the type and quantity specified on the PO are
collectively referred to herein as the "Products." Except to the extent
permitted pursuant to Paragraph 2 below, the PO is noncancellable; no act
or failure to act by Ford or any other party shall relieve PeoplePC of its
obligation to buy the Products.
2. Delivery Date. Ingram expects to take delivery of the Products from H-
P no later than April 28, 2000. Ingram shall have no obligation to deliver
timely to PeoplePC any portion of the Products not timely delivered by H-P
to Xxxxxx.
3. Cost of Products. Ingram shall sell the Products to PeoplePC, and
People PC shall purchase the Products from Ingram, for an amount equal to
Xxxxxx'x Landed replacement Cost divided by .961. As used in this XXX,
Landed Replacement Cost means the sum of: (i) the cost of the products as
actually invoiced by H-P (excluding therefrom any rebate, discount or other
price reduction not appearing on the face of the invoice), (ii) all
inbound freight and handing costs incurred by Ingram in receiving the
product into its inventory, and (iii) a labeling charge of $2.00 per
shipping container shipped by Ingram.
4. Payment Terms. PeoplePC is obligated hereby to remit payment in full
to Ingram for all of the Products, whether or not the Products or any part
thereof are sold to
April 20, 2000
Page 2
a PeoplePC customer. Payment for the Product(s) and any shipping, freight
or storage or returned or refused Product charge, as the case may be, shall
be due upon the earliest of the following: (i) five (5) days from the date
Ingram provides PeoplePC with an invoice reflecting shipment of the
Product(s) to a People PC customer(s), or five (5) days from the date
Ingram provides an invoice reflecting such shipping, freight or storage or
returned or refused product charge, as they case may be, or, (ii) in the
case of the Products, May 28, 2000.
5. Labels. Ingram shall place labels provided by PeoplePC on the shipping
containers of each Product before shipping the Product to PeoplePC's
customer; provided that, PPC delivers all such labels in sufficient
quantity to Ingram within five days following the date of this XXX.
6. Shipping and Freight Charges. Ingram shall ship the Products to
locations specified by PeoplePC within the United States, excluding Alaska
and Hawaii. Ingram shall ship the Products via UPS ground freight, unless
another carrier is specified by PeoplePC in writing prior to shipment.
Ingram shall invoice PeoplePC the actual freight cost incurred in shipping
the Products.
7. Storage Charges. Ingram shall invoice PeoplePC for all Product
remaining in Xxxxxx'x inventory on May 28, 2000 and PeoplePC shall pay to
Ingram that amount within five days of receipt of the invoice. In
addition, PeoplePC shall pay a storage fee equal to $10 per month for each
Product held by Ingram in its inventory for each month or part thereof
following May 28, 2000.
8. Returned and Refused Products. Ingram shall accept Product that is
refused or that is returned to it by a PeoplePC customer, but People PC
shall incur a returns handling fee of $25 per system and $15 per other
Product unit for each such Product so refused or returned. Ingram shall
hold all such Product in inventory pending further instruction by PeoplePC.
All such returned or refused Product held in Xxxxxx'x inventory shall be
subject to the storage fee described in Paragraph 7 above. Ingram shall not
be required to re-box a Product returned to it. Ingram shall have no
obligation to repair or replace, or reimburse PeoplePC for, any Products
that are found to be defective or not in accordance with specifications
provided by H-P. PeoplePC shall return defective or non-conforming Products
to H-P directly.
9. Terms of Sale. The Products sold hereby are subject to Xxxxxx'x
standard terms and conditions of sale as published on its website at
xxx.xxxxxxxxxxx.xxx. However, to the extent that any of the terms and
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conditions of this XXX conflict with Xxxxxx'x standard terms and conditions
of sale, the terms and conditions stated in this XXX shall control. The PO
shall be used to identify product type and quantity only and none of its
terms shall affect the terms of sale as set forth herein or affect Xxxxxx'x
standard terms and conditions of sale.
April 20, 2000
Page 3
10. Reservation of Rights; No Waiver or Compromise. Nothing in this XXX
or the transaction contemplated hereby shall in any way limit or affect
People PC or Xxxxxx'x rights under that certain Internet Resale Agreement
between PeoplePC and Ingram dated as of August 1, 1999. People PC and
Ingram specifically reserves all of its rights and remedies under and in
connection with the Internet Resale Agreement. The parties acknowledge
that any disputes with respect to the Internet Resale Agreement are not
waived, compromised or otherwise affected by this XXX or the transaction
contemplated hereby.
11. Entire Agreement. This XXX and Xxxxxx'x standard terms and conditions
of sale represent the entire agreement between Xxxxxx Micro and PeoplePC
concerning the subject matter of this transaction. This XXX supersedes all
prior understandings and communications on the subject matter of this
transaction, whether oral or written. This XXX may only be modified by a
writing executed by an authorized representative of Xxxxxx Micro and of
PeoplePC.
If PeoplePC is in full agreement with the terms and conditions stated herein,
please sign the enclosed copy of this letter and return it to me.
Yours sincerely,
/s/ Xxxx Xxxxxxx
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Xxxx Xxxxxxx
Vice President
Accepted this 20th day of April 2000.
PeoplePC, Inc.
By: /s/ Xxxx Xxxxx
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Xxxx Xxxxx
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PEOPLE PC
000 Xxxx Xxxxxx Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000 ---------------------------------------------------------------
THIS NUMBER MUST APPEAR ON ALL INVOICES, PACKING SLIPS
Phone: 000-000-0000 Fax: 000-000-0000 AND SHIPPING DOCUMENTS PERTAINING TO THIS ORDER.
xxx.xxxxxxxx.xxx SHIP ACCORDING TO THE PERMANENT ROUTING
INSTRUCTIONS ON FILE WITH YOUR COMNPANY. IF NOT ON FILE,
CONTACT US AT (000)000-0000.
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IMPORTANT DATES
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ORDER DATE April 6, 2000 SHIP TO ARRIVE ON
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RESALE MERCHANDISE:
[]YES []NO
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ORDER CANCELLED AS OF: SHIP BACKORDERS:
[]YES []NO
SHIP VIA______________________ []COLLECT []PREPAID
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QUANTITY UNIT DESCRIPTION UNIT PRICE TOTAL PRICE
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100 Ingram SKU # 930680 Desk Top Kit for Laptop $ 615.00 $ 61,500.00
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100 Ingram SKU # 930651 - Omni book Premium (Laptop) F2027WT#ABA $ 1,941.75 $ 194,175.00
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100 Ingram SKU # 930652 - Omni book Ultimate (Laptop) F2028WT#ABA $ 2,661.00 $ 266,100.00
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100 Ingram SKU # 529544 - Desk top CPU - Basic $ 489.50 $ 48,950.00
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100 Ingram SKU # 529543 - Desk top CPU - Basic Plus $ 691.25 $ 69,125.00
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100 Ingram SKU # 529542 - Desk top CPU - Premium $ 1,131.50 $ 113,150.00
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100 Ingram SKU # 529541 - Desk top CPU - Ultimate $ 1,945.26 $ 194,525.00
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100 Ingram SKU # 117321 - Printer HPLJ1100AXI $ 439.00 $ 43,900.00
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100 Ingram SKU # 117245 - Printer Office Jet T45XI $ 364.50 $ 36,450.00
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100 Ingram SKU # 117273 - Printer Desk Jet 930C $ 183.75 $ 18,375.00
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100 Ingram SKU # 117287 - Printer Desk Jet 610CL $ 95.00 $ 9,500.00
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100 Ingram SKU # 368771 - S50 15" Monitor $ 178.50 $ 17,850.00
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100 Xxxxxx XXX # 000000 - X00 00" Monitor $ 267.75 $ 26,775.00
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100 Xxxxxx XXX # 000000 - X00 00" Monitor $ 447.00 $ 44,700.00
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SPECIAL INSTRUCTIONS: TOTAL $1,145,075.00
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Order Placed By: Xxxxx Xxxxx
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PEOPLEPC, INC.
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Typed or printed name of Vendor Address of Vendor
/s/ XXXXXXXX X XXXXX
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Signature of person signing for Vendor
XXXXXXXX X XXXXX
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Typed or printed name of person signing Date of signature of Vendor
