Key Account Program

Background
Key Account Benefits
How To Qualify As A Key Account

BACKGROUND
Since 1984, Pygmy Computer Systems has specialized in providing software development tools and EPROM extended memory cartridge products for Sharp hand-held computers. This technology has enabled our customers to succeed and prosper in a variety of markets. The success of our business is tied directly to the success of our customers. As you have grown and prospered, so have we. With this in mind, we are formally announcing our Key Account program.

The Key Account program objectives are:

• To reward those Key Customers who have helped us achieve the success we have enjoyed in the past
• To open communication lines to encourange feedback in an effort to constantly improve the development environment
• To develop new markets for Pygmy cartridge products and to grow business in existing markets through industry targeted advertising and lead referral programs.

KEY ACCOUNT BENEFITS
Participants in Pygmy's Key Account Program receive the following benefits:

• FREE repairs. Pygmy will repair or replace and Pygmy cartridge product at no charge, regardless of date of purchase, that fails during normal use.
• All new cartridge purchases carry a limited lifetime warranty, subject to "normal usage" criteria.
• FREE upgrades and enhancements to all Development tools and Cartridge Programming Systems, both hardware and software.
• Unlimited Toll Free Support.
• No-fee lead referrals. Free listing in Pygmy advertisements in your industry and 3rd party directories (optional), including our 3rd Party Directory on the world-wide-web (Customer pages not included). Contact the Director of Sales & Marketing for details.

HOW TO QUALIFY AS A KEY ACCOUNT
A Key Account must demonstrate and engage in the resale of a "product" which uses a Pygmy memory cartridge as its software distribution media. A signed copy of the "Developer's Agreement" must be on file with Pygmy. In addition, the following formula is applied based upon unit purchases of Pygmy EPROM cartridge products:

For existing customers as of January 1, 1995, any account whose purchases of the last 90 days meets or exceeds 75% of their average quarterly purchases for the past year is automatically a Key Account and entitled to the benefits therein. Key Account status will be reviewed quarterly.

New customers will become eligible for Key Account status upon purchasing 250 units, pending review by the Director of Sales & Marketing.

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