Document:

Distribution Agreement with Zen Voce Technologies, Ltd.

 Exhibit 10.6 
 This document has been redacted pursuant to a confidential treatment request. 
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 DISTRIBUTOR AGREEMENT 
 This
Distributor Agreement (the “Agreement”) is entered into and effective as of January 1st, 2006 (the
“Effective Date”) by and between Applied Precision, LLC, a Delaware limited liability company located at 1040 12th Avenue NW, Issaquah, Washington 98027 U.S.A. (“AP”), and Zen Voce Technologies, Ltd., a
corporation located at Blk 5004, Ang Mo Kio Ave 5, #04-06 TECHplace II, Singapore 569872 (“Company”). AP and Company may be referred to individually as a “Party” and collectively as the “Parties”.

 BACKGROUND 
  

	A.	AP manufactures and sells the Products. 

  

	B.	Company desires to purchase Products from AP for resale in the Territory. 

  

	C.	Pursuant to the terms and conditions of this Agreement, AP desires to sell the Products to Company for resale in the Territory. 

 NOW, THEREFORE, in consideration of the foregoing premises and of the mutual covenants and agreements contained in this Agreement, the Parties
hereby agree as follows: 
 AGREEMENT 
  

	1.	DEFINITIONS 

 “Affiliate” means, with respect to
any legally recognizable entity, any other such entity directly or indirectly Controlling, Controlled by, or under common Control with such entity. “Control,” as used in this definition, means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of a legally recognizable entity, whether through the ownership of voting shares or other voting interests, by contract, or otherwise. Where such entity is a partnership,
limited liability company, corporation, or similar entity and has partners, members, or shareholders with equal ownership interests or equal control interests, by contract or otherwise, then each such partner, member, or shareholder will be deemed
to possess, directly or indirectly, the power to direct or cause the direction of the management and policies of that entity. 
 “Confidential
Information” means all non-public information that AP designates as confidential at the time of the disclosure or that, based on the nature of the information or circumstances surrounding its disclosure, Company should in good faith treat
as confidential. Confidential Information does not include information Company can establish by written evidence: (i) entered or subsequently enters the public domain without Company’s breach of any obligation owed AP; (ii) became
known to Company prior to AP’s disclosure of such information to Company; (iii) became known to Company from a source other than AP other 

  

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than by the breach of an obligation of confidentiality owed to AP; or (iv) is independently developed by Company without reference to any Confidential
Information. 
 “Product(s)” means those Product(s) listed in Exhibit A as such Exhibit A may be updated from time to time by AP upon
written notice to Company. 
 “Territory” means the territory described in Exhibit B. 
 “Trademark(s)” means those trademarks listed in Exhibit C may be updated by AP from time to time upon written notice to Company. 
  

	2.	DISTRIBUTORSHIP 

 2.1 Appointment. Subject to Company’s
continued compliance with the terms and conditions of this Agreement, AP hereby appoints Company as an [*] of the Products within the Territory and Company hereby accepts such appointment. 
 2.2 Sub-Distributorships. Company may not appoint sub-distributor(s) for any of the Product(s) without AP’s prior written approval which may be given or
withheld in AP’s sole discretion. Notwithstanding any such approval by AP of any such sub-distributorship, Company will at all times remain fully responsible for its performance of its obligations under this Agreement, and will unconditionally
and irrevocably guaranty its sub-distributors’ full compliance with all terms and conditions of this Agreement applicable to such sub-distributors. 
 2.3 [*] 
 2.4 All Rights Reserved. AP expressly reserves all rights not expressly granted to Company by this Agreement. Without
limiting the generality of the foregoing sentence, AP specifically reserves the right to, in its sole discretion: discontinue any Product(s); change the specifications of any Product(s); introduce new Product(s); alter the pricing of any Product(s);
and otherwise adjust its Product offerings in its sole discretion. 
  

	3.	PURCHASE AND SALE OF PRODUCTS 

 3.1 Purchase Orders.
Company will submit all orders for Product(s) to AP in the form of written purchase orders which may be submitted by fax or electronically. Each purchase order must clearly specify the Product part number and quantities for each Product ordered. All
purchase orders will be subject to this Agreement. 
 3.2 Other Terms Excluded. This Agreement will exclusively govern all orders of Product(s) under
this Agreement and, except for the Product part number and quantities for each Product ordered, any other terms contained on any purchase order or other document or form or stated orally will be of no effect. 
  

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 3.3 Acceptance of Purchase Orders. Within a reasonable time after receiving a purchase order from Company, AP
will notify Company in writing whether it accepts such purchase order and, if so, the anticipated shipment date for the Product(s) ordered. Purchase orders accepted by AP may be cancelled only by mutual written agreement of the Parties. However, AP
reserves the right to reschedule the shipment date for all or any part of any purchase order for Product(s) that are not then available in sufficient quantities or on schedule to fill such purchase order. 
 3.4 Prices. The prices for Products sold by AP to Company under this Agreement will be the then current price for such Product as set forth in Exhibit D
(“Distributor Pricing”). During the Term, AP will provide Company with an updated Exhibit D not less frequently than on a semi-annual basis. All prices are stated in US dollars. 
 3.5 Payment. AP will invoice Company for each shipment of Product(s) and all invoices will be due and payable sixty (60) days after the date of the invoice.
All payments will reference the relevant invoice number and be sent by wire transfer in US dollars as instructed by AP. At the same time Company wires its payment to AP, Company will also send AP a written statement by fax or email including the
following remittance information: the name of Company, date of the wire transfer, applicable invoice number and amount of wire transfer. A finance charge equal to the lesser of [*] or the maximum amount allowed by applicable law will accrue
on all past due amounts until paid in full. 
 3.6 Shipment Terms. All Product(s) sold under this Agreement are sold FCA (as defined by
Incoterms 2000), AP’s facilities located at Issaquah, Washington. All Product(s) must be shipped from such location directly to the Territory, and all shipping documents must reflect such direct shipment. 
  

	4.	OTHER COMPANY DUTIES 

 4.1 Marketing and Promotion. Company
will, at its own expense, use its best efforts to market and promote the sales of the Products in the Territory, such efforts to include, without limitation: (i) actively and diligently marketing and promoting the Products; (ii) featuring
the Products at all appropriate trade shows within the Territory; (iii) maintaining a qualified, competent and professional sales, marketing and service staff and regularly training such staff with respect to the Products; (iv) actively
encouraging its sales and marketing staff to market and promote sales of the Products; and (v) regularly advertising the Products in appropriate media within the Territory. 
 4.2 Promotional Materials. Before publication, distribution, display or other use of any advertising, marketing or promotional materials (“Promotional Materials”) containing any of the Trademarks
and/or referring to any of the Product(s), Company will submit such Promotional Materials to AP for its review and approval, and Company will not use any Promotional Materials without AP’s prior written approval. Company acknowledges that all
Promotional Materials must be consistent with the high-quality image, reputation and standards of AP and the Product(s) and protect the good will associated with the Trademarks. 
  

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 4.3 Sales Restricted to Territory. Company will not directly or indirectly sell, distribute, market or ship
any Product(s) outside of the Territory or to any customer within the Territory that Company knows or should know may resell or ship the Product(s) outside of the Territory. Company will immediately report to AP any and all inquiries regarding the
Product(s) from persons outside the Territory or from persons within the Territory regarding delivery outside the Territory. If Company discovers that any of its customers have shipped any Product(s) outside of the Territory, Company will
immediately notify AP and provide AP with the name and address of such customer, a detailed list of all Product(s) and quantities sold to such customer and the destination of the Product(s). 
 4.4 Training. Company will, at its own expense, send qualified Company employees to attend sales and service training meetings at AP’s headquarters at least
twice each year as such meetings are scheduled by AP. 
 4.5 Customer Approval. Company will not directly or indirectly sell, distribute, market or
ship any Product(s) to any customer that AP notifies Company in writing is not authorized to purchase the Product(s). 
 4.6 Forecasts, Reports and
Information. During the first week of each month during the Term, Company will provide AP with an updated rolling forecast of Company’s anticipated monthly purchases of Products for the next twelve (12) months. Company will provide AP
with monthly reports of its marketing activities, sales and sales prospects for the following month and reports of successful and unsuccessful sales activities and orders won and lost during the prior month. Company will provide additional reports
and information as AP may reasonably request from time to time. 
 4.7 No Changes to Product(s). Except as expressly authorized by AP in its sole
discretion and in writing, Company will resell the Product(s) exactly as shipped by AP without alteration or modification, removal of components or substitution or installation of components. 
 4.8 Compliance with Law. At all times during the Term, Company will comply with any and all applicable laws and regulations, and maintain in full force and effect
all permits, approvals and licenses required for Company to lawfully enter into, and perform its obligations under, this Agreement. Company will promptly provide AP with copies of any and all communications relevant to any of the Product(s) and/or
Trademarks that Company receives from any governmental or regulatory body within the Territory (and certified English language translations of any of the foregoing issued in any language other than English). 
 4.9 Insurance. Throughout the Term, [*] of this Agreement Company will maintain in force insurance policies with reputable insurers sufficient in
coverage and amounts to secure its obligations and potential liabilities under this Agreement. Company will be solely responsible for all premiums, deductibles and/or retentions associated with such insurance. At the request of AP, Company will
provide to AP certificates of insurance evidencing such coverage and naming AP as an additional insured under such policies. Failure by AP to request, or by Company to furnish, such certificates will not constitute a waiver by AP of any insurance
requirement. If AP 

  

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so requests, Company will also provide to AP, or make available for its review, copies of the insurance policies. 
 4.10 [*] 
 4.11 Customer Support and Service. AP will be
responsible to provide customer repair and maintenance services as may be required by Company’s customers that purchase Product(s) including, installation, maintenance, and any other professional consultation and/or services normally necessary
or desirable to provide for customer satisfaction and to maintain good customer relations. Company will provide instruction in Product(s) use as required in support of AP, Company’s product sales activities and end-user customer satisfaction,
and will perform such instruction in a professional, competent and timely manner. Company will provide AP with monthly written reports of all service activities including the name of the customer, time of receipt of service request, service
performed, result and/or status of service call and root cause of problem requiring service. During the effective period of the end-user Limited License & Limited Warranty, AP will provide replacement parts and AP is responsible for support
and/or services required by Company’s customers. After the expiration of such end-user warranty, AP will provide replacement parts pursuant to then applicable service agreements and/or at its then current prices. 
 4.12 Demonstration Products and Reference Accounts. Company must purchase demonstration Products from AP and must update such demonstration Products not
less than annually. Company will provide AP with recommendations of Company customers that might serve as reference accounts for AP. AP may, in its sole discretion, offer discounts and/or special products for such reference accounts. 
  

	5.	OTHER AP DUTIES 

 5.1 Product(s) Information. AP will provide
Company with such Product(s) information as AP generally makes available to its distributors, and such additional Product(s) information as Company may reasonably request. 
 5.2 Training and Support. AP will provide Company with such Product(s) training and support as AP generally makes available to its distributors. 
 5.3 [*] 
  

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	6.	INTELLECTUAL PROPERTY RIGHTS 

 6.1 Ownership. Nothing
contained in this Agreement will be deemed or construed as a transfer, assignment or license to Company of any patent, copyright, trade secret or other intellectual property right in any of the Product(s), and Company expressly acknowledges and
agrees that all rights, title and interest in all of the foregoing remain vested in AP and its suppliers. Company will not take or permit any action that will infringe, diminish or interfere with any of AP’s or its suppliers rights in any of
the Product(s). 
 6.2 Notices. Company will not remove, modify or obscure any copyright, patent or trademark notices that appear on any of the
Product(s), and will market the Product(s) only under the names indicated by AP. 
 6.3 Counterfeiting. Company will immediately inform AP in writing
of any counterfeiting of any of the Product(s) of which Company becomes aware. AP hereby reserves the exclusive right to introduce and pursue suits and/or actions against any such counterfeiting. To accomplish this objective, AP may use the name of
Company as plaintiff or co-plaintiff, either separately or in conjunction with AP. 
 6.4 Licenses. All sales of Products under this Agreement, and
all resale of Products by Company, are subject to the Limited License and Limited Warranty attached to this Agreement as Exhibit F. Company must obtain its customer’s written agreement to such Limited License and Limited Warranty as a condition
to all sales of Products by Company. 
  

	7.	TRADEMARKS 

 7.1 Ownership. Company will not claim ownership
of any of the Trademark(s), use any of the Trademark(s) as part of Company’s tradename(s) or trademark(s), or otherwise use any of the Trademark(s) in any manner that may give the impression that such Trademark(s) belongs to Company. All uses
of the Trademark(s) will accrue to the benefit of AP, and Company will not acquire any rights in or to the Trademark(s). In the event that by operation of any law or regulation of the Territory Company acquires any right, title or interest of any
kind in the Trademark(s), Company hereby agrees that AP will be the beneficial owner thereof, and Company hereby irrevocably and unconditionally assigns such right, title or interest to AP. At AP’s request, Company will immediately execute or
any instrument, document, approval or registration that AP may deem be necessary or appropriate to perfect or protect AP’s rights in the Trademark(s). 
 7.2 Use. Company will market the Product(s) only under the Trademark(s) indicated by AP and will not associate any other trademark, logo, tradename or other descriptor with any of the Product(s) or Trademark(s). Company will not take
or permit any action that will infringe, interfere with or dilute any of AP’s rights in any of the Trademark(s). 
 7.3 Protection. Company will
fully cooperate with AP in securing and preserving AP’ rights in the Trademark(s) within the Territory including without limitation, in the execution, 

  

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submission and/or prosecution of any applications for registration of any of the Trademark(s) within the Territory. 
 7.4 Infringement. Company will be responsible to monitor the Territory for infringement or misuse of the Trademark(s) and will immediately inform AP in writing of
any such infringement or misuse of which Company becomes aware. AP hereby reserves the exclusive right to introduce and pursue suits and/or actions against any such infringement and Company agrees to fully cooperate with AP in pursuing such suits
and/or actions within the Territory. 
  

	8.	WARRANTIES 

 8.1 Mutual Representations and Warranties. Each
Party hereby represents and warrants that (i) this Agreement has been duly and validly executed and delivered by such Party and constitutes a legal and binding obligation of such Party, enforceable against such Party in accordance with its
terms; (ii) such Party has all necessary power and authority to execute and perform in accordance with this Agreement; and (iii) such Party’s execution, delivery and performance of this Agreement will not conflict with or violate any
provision of law, rule or regulation to which such Party is subject, or any agreement or other obligation directly or indirectly applicable to such Party or binding upon its assets. 
 8.2 Disclaimer. AP ON BEHALF OF ITSELF AND ITS SUPPLIERS EXPRESSLY DISCLAIMS ALL PRODUCT WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF: MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, REASONABLE CARE, WORKMANLIKE EFFORT, RESULTS, LACK OF NEGLIGENCE, LACK OF VIRUSES, ACCURACY OR COMPLETENESS OR NONINFRINGEMENT. 
 8.3 No Other Warranties. All re-sales of Products by Company, are subject to the Limited License and Limited Warranty attached to this Agreement as Exhibit F. Company must obtain its customer’s agreement to such Limited License
and Limited Warranty as a condition to all sales of Products by Company. Company expressly agrees that it will not make or purport to make any additional warranty regarding the Products. Company will be solely responsible for any such additional
warranties and will indemnify AP against and hold AP harmless from any and all claims of any kind whatsoever arising out of or in connection with any such additional warranty. 
  

	9.	INDEMNIFICATION 

 9.1 Indemnification. Company will
indemnify, pay the defense costs of, and hold harmless AP and its successors, officers, directors and employees from any and all actions, causes of action, claims, demands, costs, losses, liabilities, expenses and damages (including reasonable
attorneys’ fees) arising out of or in connection with any third party claim which, if true, would represent a breach by Company of its obligations under this Agreement. AP will give Company reasonably prompt notice of any claim to which this
paragraph relates. 
  

	10.	LIMITATIONS OF LIABILITY 

  

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 10.1 NOTWITHSTANDING ANY OTHER PROVISION CONTAINED IN THIS AGREEMENT, AP’S MAXIMUM AGGREGATE LIABILITY TO
COMPANY FOR ANY AND ALL CLAIMS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, ITS TERMINATION, OR EXPIRATION, OR ANY SALE OR USE OF, OR SUPPLY OR FAILURE TO SUPPLY, ANY PRODUCTS, WHETHER SUCH LIABILITY ARISES FROM ANY CLAIM BASED UPON
CONTRACT, WARRANTY, TORT, FAILURE OF ESSENTIAL PURPOSE, TRADE USAGE, OR OTHERWISE, WILL IN NO CASE EXCEED THE AGGREGATE AMOUNT ACTUALLY RECEIVED BY AP FROM COMPANY UNDER THIS AGREEMENT AS OF THE DATE OF SUCH CLAIM. IN NO EVENT WILL AP BE LIABLE TO
COMPANY FOR LOST PROFITS, LOST REVENUES, BUSINESS INTERRUPTION OR CONSEQUENTIAL, INCIDENTAL DAMAGES OR PUNITIVE DAMAGES. THE FOREGOING LIMITATIONS ARE APPLICABLE NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE. 
  

	11.	CONFIDENTIALITY 

 Company will make no use of any Confidential
Information except as authorized by AP in connection with Company performance of the Services under the terms of and during the existence of this Agreement. Company agrees to take all steps reasonably requested by AP to confirm and protect AP’s
interests in the Confidential Information. Company acknowledges that unauthorized disclosure or use of Confidential Information will cause AP immediate and irreparable injury, and agrees monetary damages may not be a sufficient remedy for and such
unauthorized disclosure or use. In the event of any such unauthorized disclosure or use of Confidential Information, AP will be entitled to injunctive or other equitable relief, as well as any other relief and/or remedies available at law.

  

	12.	FORCE MAJEURE 

 12.1 Force Majeure. If a Party’s ability
to perform any of its obligations under this Agreement is prevented, restricted or delayed because of unforeseen circumstances beyond such Party’s reasonable control, such as acts of God, war, terrorism, riot, embargoes, acts of civil or
military authorities, fire, flood or earthquake (a “Force Majeure”), then such Party will be excused from performance of such obligation to the extent and for the duration of such prevention, restriction or delay. The Party so
affected will give the other Party prompt and detailed notice of the Force Majeure, including the probable duration thereof, and will promptly notify the other Party when the Force Majeure has ended. During the Force Majeure, the affected Party will
use its best efforts to avoid, reduce or eliminate the Force Majeure’s prevention, restriction or delay of its performance of its obligations under this Agreement. If a Force Majeure continues to affect a Party’s performance under the
Agreement for more than ninety (90) days, the Party not affected by such Force Majeure may in its sole discretion terminate this Agreement upon written notice to the affected Party. 
  

	13.	TERM AND TERMINATION 

  

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 13.1 Term. This Agreement will enter into effect on the Effective Date and will continue in effect for a
period of two (2) year(s) (the “Term”) unless terminated earlier as provided in this Agreement. 
 13.2 Termination by Either Party For
Cause. Either Party may suspend performance or terminate this Agreement immediately upon written notice at any time if the other Party is in material breach of any material warranty, term or condition of this Agreement and has failed to cure
that breach within thirty (30) days after written notice thereof, or experiences an Event of Default. “Event of Default” means any of the following events: (i) a Party, including that Party’s parent company or guarantor,
becomes insolvent or is unable to pay its debts as they mature, or makes an assignment for the benefit of creditors; (ii) a petition under any foreign, state or United States federal bankruptcy act, receivership statute, or the like, as they
now exist, or as they may be amended, is filed by a Party; or (iii) such a petition is filed by any third party, or an involuntary petition is not resolved favorably to such Party within sixty (60) days. 
 13.3 Survival. In the event of expiration or termination of this Agreement for any reason, the following sections will survive such termination or expiration:
3.2, 3.5, 4.3, 4.5, 4.9, 4.11, 6, 7, 8, 9, 10, 11, 13.3, 14 and 15. 
  

	14.	GOVERNING LAW AND VENUE 

 Governing Law, Jurisdiction and
Venue. This Agreement will be governed by and construed in accordance with the laws of the State of Washington as such laws apply to contracts performed within Washington by its residents, and Company irrevocably consents to exclusive
jurisdiction and venue in the Federal courts for the Western District of Washington, unless no federal subject matter jurisdiction exists, in which case, Company irrevocably consents to exclusive jurisdiction and venue in the Washington State courts
sitting in King County Washington. The United Nations Convention on Contracts for the International Sale of Goods will not apply to this Agreement. Process may be served on either Party in the manner authorized by applicable law or court rule. In
any action to enforce any right or remedy under this Agreement or to interpret any provision of this Agreement, the prevailing Party shall be entitled to recover its reasonable attorneys’ fees, costs and other expenses.  
  

	15.	MISCELLANEOUS 

 15.1 Notices. Except as otherwise specified
in this Agreement, all notices and other communications required or permitted under this Agreement must be given in writing and sent as designated below with costs prepaid, and will be effective when sent by personal delivery, by next-business-day
delivery service with delivery tracking, by registered or certified mail with return receipt requested, or by facsimile transmission with receipt confirmed orally by telephone and by printed confirmation report. Each Party designates the following
for receipt of notices. This designation may be changed by providing notice pursuant to this provision, and each Party agrees to keep its notice information current: 
  

			
	 FOR NOTICES:
	  	
		
	 To AP:
	  	 To Company:

  

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	 Attention: Vice President Sales & Marketing
	  	 Attention: Johnny Lim

	 1040 12th
Avenue NW
	  	 Blk 5004, Ang Mo Kio Ave 5

	 Issaquah, WA 98027
	  	 #04-06 TECHplace II

		  	 Singapore 569872

	 Fax: (425) 557-1055
	  	 Fax: (65) 6319-9997

  

	
	 Copy to: International Sales Manager, Asia-Pacific Rim
 1040 12th Avenue NW
 Issaquah, WA 98027

  

	Fax:	(425) 557-1055 

 OTHER CONTACT INFORMATION (For routine or informal
communications but not for notices): 
  

			
	Phone: (425) 557-1000	  	Phone:   xxxxxxxxxxxxxxxx
	E-Mail: saleshotline@api.com	  	E-Mail:                         
	Fax: (425) 557-1055	  	Fax:   xxxxxxxxxxxxxxxxxxx

 15.2 Assignment. Neither Party will assign this Agreement or any of its rights or obligations hereunder
without the prior written consent of the other Party. For purposes of this Agreement, an assignment includes: (i) a merger of the assigning Party with another entity, regardless of whether the assigning Party is the surviving Party;
(ii) the sale or transfer of all or substantially all of the assigning Party’s assets; and (ii) an acquisition of thirty percent (30%) of the assigning Party’s voting stock or other voting interests by a third party.
Notwithstanding anything to the contrary in the Agreement, AP may assign this Agreement to any affiliate of AP. Any attempted assignment in violation of this Section will be void. If such an attempted assignment occurs, the non-assigning Party will
have the right to terminate this Agreement upon written notice to the assigning Party. This Agreement will be binding upon, enforceable by, and inure to the benefit of the Parties and their respective permitted successors and assignees. 

15.3 Language, Interpretive Rules. This Agreement is executed in the English language only. This Agreement has been fully negotiated by the Parties and
will be interpreted according to the plain meaning of its terms without any presumption that it should be construed either for or against either Party. The Section headings used in this Agreement are for convenience only and are not to be used in
interpreting this Agreement. Unless otherwise expressly stated: (i) all references in this Agreement to “Sections” refer to Sections of this Agreement, and references to “Exhibits” refer to the Exhibits attached to this
Agreement, each of which is incorporated by such reference as an integral part of this Agreement; (ii) when used in this Agreement, the words “include,” “includes,” and “including” will be deemed in each case to be
followed by the words “without limitation”; (iii) all references to dollar amounts and all uses of the term “dollars” and/or the symbol “$” in this Agreement refer exclusively to United States dollars;
(iv) all references in this Agreement to “days” refer to ordinary calendar days; and (v) all references to “written” or “in writing” refer to a non-electronic, written, signed record. 
  

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 15.4 Waiver. No waiver of any provision of this Agreement will be effective unless it is in a signed writing,
and no such waiver will constitute a waiver of any other provision(s) or of the same provision on another occasion. 
 15.5 Cumulative
Remedies. The rights and remedies under this Agreement are cumulative and are not exclusive of any rights or remedies available at law or in equity or by any other agreement between the parties. 
 15.7 Relationship of the Parties. Nothing in this Agreement will be construed to mean that any Party is appointed or in any way authorized to act as an
agent of the other Party. The parties are independent contractors and this Agreement does not create any joint venture, partnership or formal business entity or organization of any kind. 
 15.8. Severability. If a court of competent jurisdiction holds any term, covenant or restriction of this Agreement to be illegal, invalid or unenforceable, in whole or in part, the remaining terms,
covenants and provisions will remain in full force and effect and will in no way be affected, impaired or invalidated. If any provision in this Agreement is determined to be unenforceable in equity because of its scope, duration, geographical area
or other factor, then the court making that determination will have the power to reduce or limit such scope, duration, area or other factor, and such provision will be then enforceable in equity in its reduced or limited form. 
 15.9 Entire Agreement; Amendments. This Agreement is not an offer by AP and it is not effective until signed by both parties. This Agreement, including the
Exhibits attached hereto which are incorporated by this reference, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and merges all prior and contemporaneous communications and proposals,
whether electronic, oral or written, between the parties with respect to such subject matter. This Agreement may not be modified except by a written agreement dated subsequent to the date of this Agreement and signed on behalf of AP and Company by
their respective duly authorized representatives. 
  

									
	Applied Precision, LLC	 		 	Zen Voce Technology Pte Ltd.
					
	 By:
	 	 /s/ Joe Ahladis
	 		 	 By
	 	 /s/ Johnny Lim

	 Name:
	 	 Joe Ahladis
	 		 	 Name
	 	 Johnny Lim

	 Title:
	 	 Senior Vice President
	 		 	 Title
	 	Chairman

  

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 EXHIBIT A 
 Description of Products and Markets 
 Product Description 
 [*] 
 Product Markets 
 [*] 
  

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 EXHIBIT B 
 Territory 
 [*] 
  

 A-13 

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 EXHIBIT C 
 Applied Precision Trademarks and Logos 
 Graphic of Applied Precision trademarks and logos. 

 

 B-1 

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 EXHIBIT C 
 PATENT APPLICATIONS AND PATENTS 
 [*] 
  

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 EXHIBIT D 
 Product Transfer Price 
 Product Transfer Prices for the Distributor will be based on AP’s worldwide
Price List, which is officially published two times per year in January and July. 
 [*] 
  

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 EXHIBIT E 
 [*] 
 For year 2006: 
  

			
	 Q1
	  	 [*]

		
	 Q2
	  	 [*]

		
	 Q3
	  	 [*]

		
	 Q4
	  	 [*]

	
	 For year 2007:

		
	 Q1
	  	 [*]

		
	 Q2
	  	 [*]

		
	 Q3
	  	 [*]

		
	 Q4
	  	 [*]

  

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 EXHIBIT F

 [*] 
 Warranty
Documentation 
 [*]Distribution Agreement with John P. Kummer AG

 Exhibit 10.7 
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 Distribution Agreement with John P. Kummer AG 
 This Distributor Agreement (“Agreement”) is made as of this eighteenth day of July, by and between Applied Precision, Inc., a Washington corporation with its principal place of business at 1040 12th Avenue NW, Issaquah,
Washington 98027 (hereinafter referred to as “API”) and John P. Kummer AG, a corporation duly organized under the laws of Switzerland with its principal place of business at Zimmelstrasse 48, CH-63 14 Unterageri, Switzerland, (hereinafter
referred to as “the Distributor”). 
 RECITALS: 
 WHEREAS, API, a developer and manufacturer of automated semiconductor systems for probe card analysis, scrub/probe mark analysis and probe card cleaning
(the “Products,” as more fully described below), which are currently being sold by API; and 
 WHEREAS. API is interested in having
the Distributor, a distributor, seller and provider of products and services complimentary to those produced by API, distribute the Products in the Territory (as defined below), and the Distributor is interested in serving as API’s [*]
for the Products in the Territory (as defined below), all in accordance with the terms of this Agreement; 
 NOW, THEREFORE, in consideration
of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 The following terms will have the following meanings for purposes of this Agreement: 
 1.1 “API Logos” means the API Logos and/or trademarks set forth in Exhibit B. 
 1.2 “Base System” means one unit of Product containing the standard features as listed in Exhibit A. 
 1.3 “Customer” means the final, end-user of the Product. 
 1.4 “Effective Date” means the date this Agreement is signed and becomes effective. 

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 The * symbol denotes redacted information. 
  

 1.5 “Patents” means any and all utility and design patent applications and issued patents,
United States or foreign, held by API and which apply to the Products. 
 1.6 “Products” means the products described in Exhibit
A attached hereto and made a part hereof, and any upgrade, updates, future models or versions of such products that may be developed and/or manufactured by API during the term of this Agreement for the target markets described in Exhibit A.
Product(s) will include Base System(s), optional components (as listed in Exhibit A), and parts. 
 1.7 “Software” means the
task-specific or industry-specific software programs and/or functionality, which is within and a part of the Product. 
 1.8
“Territory” means the countries of [*] 
 1.9 “Trademarks” mean Product names and variations of names that are
selected by API and are used by API in connection with the Products pursuant to the terms of this Agreement. 
 1.10 “Transfer
Price” means the cost of Product to the distributor net of shipping, taxes, duties and insurance. Transfer Price is set forth in Exhibit D attached hereto and made a part hereof. 
 ARTICLE 2 
 APPOINTMENT AS [*] 
 2.1 Distributor. API hereby appoints the Distributor as its [*] of Products in the Territory from the Effective Date though
July 25, 2004 and the Distributor accepts this appointment. [*] 
 2.2 Licensee. API hereby grants to the
Distributor a non-exclusive, limited license, with the right to sublicense the Software within the Products for use within the Products, in the Territory from the Effective Date through the remaining term of this Agreement. The Software is licensed,
not sold, to the Distributor to permit the Distributor to sublicense the embedded Software as part of its distribution of the Product. This license agreement confers no right, title, or ownership in the Software other than the specific grant
contained herein. This license grant is only for use solely in connection with the use of the Product. The Distributor may not, in whole or in part, copy, reproduce, translate, reverse engineer, derive source or object code from, modify, disassemble
or reverse assemble, decompile, modify, alter, publicly display, or create derivative or merged works based on the Software, or remove any proprietary notices or labels from the Product. The Product is integrated with the Software and the
Distributor will not disassemble or pull apart the Software from the Product. If the Distributor violates any of these terms of this limited license, its license to distribute the Software will automatically terminate. 
  

			
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 2.3 [*] 
 2.4 All Other Rights Reserved. All rights not expressly granted in the Agreement are reserved to API, including but not limited to API’s rights to have Products manufactured by a third party. 

ARTICLE 3 
 NAME SELECTION AND

 PATENT AND TRADEMARK PROTECTION 
 3.1 Current Product Logos. During the term of this Agreement API will be free to use trademarks, labels and graphics of its choice. All use of API’s names, brands or logos as may be authorized by API under
this Agreement will be in accordance with the trademark license granted in Section 3.5 of this Agreement. 
 3.2 Product Name
Selection. The product name for the Products will be: “PrecisionPointTM” for the probe card analyzer; “microBurstTM” for the contact resistance reduction system, and “waferWoRxTM” for the probing process
analysis system. These Product names will be used without change unless API consents to such change in writing. 
 3.3 Patent and
Trademark Applications. API will, in its sole discretion, file and prosecute utility and design patent applications or obtain patent protection pursuant to the International Patent Cooperation Treaty in respect of the Products in the United
States, Canada, Japan and the countries of the European Union. A list of current API patents and patent applications is included as Exhibit C. API will, in its sole discretion, register Trademarks as API determines are appropriate for the
Products, A list of current trademarks are included in Exhibit B. 
 3.4 Ownership. API will own all proprietary rights with respect
to the Products, including, without limitation all copyrights, Trademarks, all artwork, graphics, and advertising prepared by API in connection with the Products, trade secrets, Patents, and other proprietary rights therein. 
 3.5 API Trademark License. 
 (a) API
hereby grants to the Distributor during the term of this Agreement, an [*], non-transferable, personal license in the Territory to use the API Logos and/or 

  

			
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Trademarks set forth in Exhibit B to this Agreement (the “API Logos”) on the Products and their associated packaging and in electronic and print
media and for any other related purpose agreed to in advance in writing by API. The Distributor’s use of the API Logos will be solely in connection with the Products and such other related purposes as are agreed upon in advance in writing by
API, and will at all times be in accordance with the terms of this Agreement and API’s then current logo use guidelines. Except as expressly provided in this Section 3.6, this Agreement does not grant the Distributor any right,
title, interest, or license in or to any of API’s names, logos, trade dress, designs, or other trademarks. 
 (b) The Distributor will
provide to API copies of the brochures, advertising and other promotional materials prepared by the Distributor and which use the Trademarks or API Logos. The Distributor will send three (3) copies to API within thirty (30) days of the
first distribution of the brochures, advertising or other promotional materials. 
 (c) The Distributor acknowledges, as between the
Distributor and API, API’s sole ownership of the API Logos worldwide and all associated goodwill. The Distributor’s use of the API Logos, as between the parties, will inure solely to the benefit of API. The Distributor hereby assigns and
will assign in the future to API all rights it may acquire by operation of law or otherwise in the API Logos, including all applications and registrations therefore, along with the goodwill associated therewith. 
 (d) API has the sole right to, and in its sole discretion may commence, prosecute or defend, and control any action concerning the API Logos. The
Distributor will not contest the validity of, by act or omission jeopardize, or take any action inconsistent with, API’s rights or goodwill in the API Logos in any country, including attempted registration of the API Logos, or use or register
any mark or logo confusingly similar thereto. 
 3.6 Third Party Infringement of API Logos, Trademarks/Products. In the event either
party becomes aware of or otherwise has notice that a third party may be infringing the API Logos, Trademarks and/or Products in the Territory (including, without limitation the copyrights, Patents, trade secrets or other proprietary rights therein)
that party will promptly notify the other party. API will thereafter take legal and other steps API deems reasonably necessary in response to such potential third party infringement. API may resolve or settle any infringement claim it may have
against any third party with regard to the API Logos, Trademarks and/or the Products (“Infringement Claim”) in any manner it deems reasonably appropriate. API may grant licenses or other rights in or pertaining to the Products to third
parties in connection with such resolution or settlement without the Distributor’s consent. 
 ARTICLE 4 
 SUPPLY OF PRODUCT 
 4.1 Purchase
Orders. To obtain Products from API, the Distributor will place its purchase orders with API. In each purchase order the Distributor will set forth information regarding the identification of the particular Product models ordered, quantities
desired, shipping dates, and locations. The Distributor agrees to provide a written acceptance agreement, approved in writing by the end-user customer, which will accompany each purchase order for 

  

			
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Products. Orders will not be recognized unless they are accompanied by an acceptance agreement pre-approved by the customer. A sample acceptance agreement is
provided in Exhibit H. 
 4.2 Forecasts and Supply. API will supply the Products requested by the Distributor in its purchase
orders, subject to the provisions of Article 13 regarding force majeure events. All Product(s) orders will be shipped complete, per the issued purchase order(s) unless otherwise requested by end-user customer and accompanied by a written statement
agreeing payment for partially-shipped items. The Distributor will provide API an accurate monthly sales forecast in MS Excel format. [*] API will use commercially reasonable efforts to fill orders that exceed the monthly sales forecast
within [*]. 
 4.3 Sales Requirements. In order to for the Agreement to renew automatically pursuant to Section 12.2 the
Distributor must have the following sales of Products during each six month period: 
 For John P. Kummer Ltd: 
  

					
	 01-Jul-01
	 	 through 31-Dec-01:
	 	 [*]

			
	 01-Jan-02
	 	 through 30-June-02:
	 	 [*]

			
	 01-Jul-02
	 	 through 31-Dec-02:
	 	 [*]

			
	 01-Jan-03
	 	 through 30-June-03:
	 	 [*]

			
	 01-Jul-03
	 	 through 31-Dec-03:
	 	 [*]

			
	 01-Jan-04
	 	 through 30-June-04:
	 	 [*]

 For John P. Kummer Sarl 
  

					
	 01-Jul-01
	 	 through 31-Dec-01:
	 	 [*]

			
	 01-Jan-02
	 	 through 30-June-02:
	 	 [*]

			
	 01-Jul-02
	 	 through 31-Dec-02:
	 	 [*]

			
	 01-Jan-03
	 	 through 30-June-03:
	 	 [*]

			
	 01-Jul-03
	 	 through 31-Dec-03:
	 	 [*]

			
	 01-Jan-04
	 	 through 30-June-04:
	 	 [*]

  

			
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 For John P. Kummer GmbH: 
  

					
	 01-Jul-01
	 	 through 31-Dec-01:
	 	 [*]

			
	 01-Jan-02
	 	 through 30-June-02:
	 	 [*]

			
	 01-Jul-02
	 	 through 31-Dec-02:
	 	 [*]

			
	 01-Jan-03
	 	 through 30-June-03:
	 	 [*]

			
	 01-Jul-03
	 	 through 31-Dec-03:
	 	 [*]

			
	 01-Jan-04
	 	 through 30-June-04:
	 	 [*]

 (a) If the Distributor does not make the sales of Products for any [*] period listed in
Section 4.3(a), API may terminate the [*] of this Agreement by giving notice to the Distributor and, subject to Section 12.4, API will thereafter [*] 
 4.4 Six-Month Review of Sales. Representatives of API and the Distributor will meet near the close of each six month period listed in
Section 4.3(a) for the purpose of reviewing the sales of Products. Such meetings will be at a time and place mutually acceptable to both parties, including meetings by conference calls. If the parties mutually agree that the sales of Products
listed in Section 4.3(a) should be revised the parties will negotiate in good faith to revise Section 4.3(a). [*] 
 4.5
Title. Risk of Loss. Title and risk of loss to each unit of the Products will transfer to the Distributor on shipment F.O.B. from API’s facilities in Washington State. Products shipped by API to the Distributor will be free and clear of
any and all liens or encumbrances. 
 ARTICLE 5 
 FINANCIAL PROVISIONS 
 5.1 Payment Terms. To obtain Products the Distributor will submit
purchase orders to API, as described in Section 4.1. The Distributor must pay API the Transfer Price listed in Exhibit D for each Product within [*] days after Product shipment from API. The Distributor agrees to use all reasonable
efforts to install Products, and obtain written acceptance, based on the pre-approved acceptance agreement (Exhibit H), within [*] working days of system arrival at the customer site. Should this not be possible, the Distributor must notify
API immediately, and API and the Distributor agree to jointly use all reasonable efforts to have any open issues resolved within the [*] day period. API will electronically notify the Distributor at the time of shipment (this will be the
invoice from API to the Distributor). Interest 

  

			
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will be charged on amounts overdue at the rate of [*], on the unpaid balance. Payment will be made in United States dollars by check or wire transfer
to API at the address set forth at Section 16.1 or such other location in the United States as API may designate from time to time. Should the Distributor exceed the [*] payment terms on any orders, all subsequent orders from the
Distributor to API will require a Letter of Credit before being accepted by API. 
 5.2 Shipping; Taxes. All prices are FCA.
API’s facilities in Washington State. Transfer Prices for the Products are also exclusive of all sales, use, excise, and other such applicable taxes. The Distributor will pay for all such applicable excise, sales, use, and other such applicable
taxes except to the extent the Distributor has supplied to API with appropriate certificates or other documents evidencing that the Distributor or the Customer is entitled to an exemption from payment of such taxes. 
 5.3 Audit Rights. The Distributor agrees to keep records showing the inventory, purchase orders, sales or other disposition of Products sold or
otherwise disposed of under the distribution and license herein granted in sufficient detail to enable API’s auditors to determine compliance with the terms of this Agreement, and further agrees to permit its books and records to be examined
from time to time to the extent necessary, such examination to be made at the expense of API. All records required by this Section shall be kept for a period of two years after the expiration or termination of this Agreement. Such audits may be made
by any certified public accountant appointed by API. Audits shall occur during normal business hours and no more often than once per year. 
 ARTICLE 6 
 CO-MARKETING 
 6.1 General Marketing Responsibilities of The Distributor. The Distributor agrees that it will use its commercially reasonable efforts to develop a demand for, promote, market, and sell the Products throughout
the Territory. As part of such marketing, the Distributor will establish sales representatives and dealers, participate in trade shows, make contact with potential end customers, and undertake advertising and other promotions as the Distributor
deems appropriate. In support of marketing efforts, the Distributor will [*]. 
 6.2 API Assistance in Distributor Marketing
Efforts. API agrees generally to assist and cooperate with the Distributor in the Distributor’s marketing and promotion efforts for the Products. As part of such assistance, API will provide appropriate training in the Products to the
Distributor’s personnel. API will supply the Distributor with appropriate technical specifications and other materials describing the Products (which specifications and materials, if not intended 

  

			
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for general distribution, will be marked by API “confidential” and will be subject to the provisions of the March 27, 2001 Reciprocal
Non-Disclosure Agreement). Training provided by API pursuant to this Section will be free of charge, but the relevant participants will pay for their own travel, lodging and meal expenses. Such training will be held at API’s facilities unless
the parties otherwise agree, in which case any out-of-pocket expenses of API of such training will be reimbursed by the Distributor. 
 ARTICLE 7 
 SERVICE OF PRODUCTS 
 7.1 Service of Products by API. API will service the Products as described in Exhibit F. 
 7.2
Service of Products by The Distributor. The Distributor will service the Products and hire additional personnel as described in Exhibit G. The Distributor’s failure to hire the required personnel described in Exhibit G will be grounds
for API to terminate this Agreement pursuant to Section 12.3(a). 
 ARTICLE 8 
 WARRANTY 
 8.1 API Limited
Warranty. API warrants to the Distributor that [*] To the extent allowed by applicable law, this Limited Warranty is only made to the Distributor, the first to take title to the Product, and there are no third party beneficiaries of this
Limited Warranty. It is not intended for and does not apply to anyone else. 
 8.2 DISCLAIMER OF WARRANTIES. The Limited
Warranty herein in Section 8.1 is the only express warranty made to the Distributor. No other warranties or conditions are made with respect to the Product, replacement Product or Software by any person, including but not limited to API and its
suppliers. EXCEPT FOR THE LIMITED WARRANTY, API AND ITS SUPPLIERS PROVIDE THE PRODUCT “AS IS” AND WITH ALL FAULTS, AND HEREBY DISCLAIM ALL OTHER WARRANTIES, EITHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING BUT NOT LIMITED TO ANY IMPLIED
WARRANTIES OR CONDITIONS OF MERCHANTABILITY, OF FITNESS FOR A PARTICULAR PURPOSE, LACK OF NEGLIGENCE OR LACK OF WORKMANLIKE EFFORT. 
 ALSO, THERE IS NO WARRANTY OF TITLE, INTERFERENCE WITH YOUR ENJOYMENT, AUTHORITY, OR NONINFRINGEMENT IN SOFTWARE OR THE PRODUCT. 
 NOTHING IN THIS AGREEMENT WILL BE CONSTRUED AS A WARRANTY OR REPRESENTATION AS TO THE SCOPE OR VALIDITY OF API’S PATENTS OR 

  

			
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TRADEMARKS OR A WARRANTY OR REPRESENTATION THAT ANYTHING MADE, USED OR SOLD UNDER THIS AGREEMENT IS OR WILL BE FREE FROM INFRINGEMENT OF PATENTS OR
TRADEMARKS OF THIRD PARTIES.  
 8.3 THE DISTRIBUTOR’S SOLE REMEDY. The Distributor’s sole remedy is
replacement or repair of Product by API, provided, however, that the Distributor has returned Product to API within 14 months from the date of the first shipment of Product from API pursuant to a purchase order, as provided in Section 4.1. The
foregoing limitations, exclusions and disclaimers will apply to the maximum extent permitted by applicable law, even if any remedy fails its essential purpose. 
 8.4 EXCLUSION OF DAMAGES. IN NO EVENT WILL API OR ITS SUPPLIERS BE LIABLE FOR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES WHATSOEVER (INCLUDING BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, BUSINESS
INTERRUPTION, PERSONAL INJURY, FAILURE TO MEET ANY DUTY INCLUDING OF GOOD FAITH OR OF REASONABLE CARE, LACK OF NEGLIGENCE, AND FOR ANY OTHER PECUNIARY OR OTHER LOSS WHATSOEVER), ARISING OUT OF OR IN ANY WAY RELATING TO THE PRODUCT, REPLACEMENT
PRODUCT, PATENTS OR THE SOFTWARE, EVEN IN THE EVENT OF FAULT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, BREACH OF CONTRACT, OR BREACH OF WARRANTY OF API OR SUPPLIER, AND EVEN IF API OR SUPPLIER HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. 
 8.5 The Distributor’s Duty of Care and Duty of Notice. The Distributor will be solely responsible for its proper
installation of each Product, so that each Product is suitable in quality and performance, and will conduct commercially reasonable analysis of effects of failure mode and implement such protections as may be necessary to prevent injury or loss
arising from foreseeable uses of Product. The Distributor will warrant the Product to the end customer as provided in the warranty documentation set forth in Exhibit E and made a part hereof (“Warranty Documentation”). The Distributor
agrees that warranty documentation (Exhibit E) must be included with all Distributor product quotes to customer. The Distributor will not make any change to the content or appearance of the Warranty Documentation without API’s written consent.

 8.6 The Distributor’s Warranty. The Distributor warrants that it will use proper care in installing Product so that each
Product is suitable in quality and performance and it will conduct commercially reasonable analysis of effects of failure mode and implement such protections as may be necessary to prevent injury or loss arising from foreseeable uses of Product. The
Distributor warrants that it will not alter Product and it will deliver the Product to end customer with the labeling, instructions for use, and warnings that API has supplied with the Product and that it will not alter the labeling, instructions
for use, or warnings. The Distributor warrants that it will supply the Warranty Documentation to the end customer and that the Warranty Documentation will be in writing on 8.5-inch by 11-inch paper and in the same format and typeface as the Warranty
Documentation contained in Exhibit E. 
  

			
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 ARTICLE 9 
 PRODUCT MODIFICATIONS 
 9.1 Models and Changes in Existing Model. API agrees to consult with
the Distributor on the advisability or need for new models of the Products or changes in the specifications, construction or design of existing models. API agrees generally to use its commercially reasonable efforts to maintain and enhance the
quality, usefulness and acceptance of the Products, provided, however, that API will have full discretion as to whether to change the specifications, construction or design of existing Products models or to introduce new Products models. 

9.2 Regulatory Changes. API has sole discretion to make such changes as are reasonably necessary to comply with the legal and regulatory
requirements applicable to the Products and its use in the United States, Canada, Japan, and European Union and in any other countries where the Distributor distributes significant numbers of units of the Products. In addition, API agrees reasonably
to consider such reasonable changes in the Products requested by the Distributor for purposes of enhancing the marketability of the Products in foreign markets, although API will retain the final decision regarding the same. 
 ARTICLE 10 
 INDEMNIFICATION AND
INSURANCE 
 10.1 Indemnification by API. API agrees to indemnify and hold the Distributor and its officers, directors, employees
and agents (collectively, “The Distributor”) harmless from any third party claim, proceeding, loss, expense and liability, including but not limited to legal expenses and reasonable attorneys’ fees, a “Claim”, resulting from
[*]; and further provided, however, that the foregoing indemnity will not apply to the extent that such Claim is the result of gross negligence or intentional misconduct of the Distributor and provided further that there will be an
apportionment in accordance with responsibility when such obligation derives in part from acts of the Distributor and in part from acts of API. 
 10.2 Indemnification by The Distributor. The Distributor will indemnify and hold API and its officers, directors, employees and agents (collectively, “API”) harmless from any Claim resulting from [*] and further
provided, however, that the foregoing indemnity will not apply to the extent that such Claim is the result of gross negligence or intentional misconduct 

  

			
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of API and provided further that there will be an apportionment in accordance with responsibility when such obligation derives in part from acts of API and
in part from acts of the Distributor. 
 10.3 Conditions of Indemnification. A party claiming indemnification under this Article
(“Indemnitee”) will promptly notify the other party (“Indemnitor”) in writing of the existence of any claim, demand or other matter to which the Indemnitor’s indemnification obligation would apply, will give the Indemnitor a
reasonable opportunity to defend the same at the Indemnitor’s own expense and with counsel of the Indemnitor’s own selection; provided, that the Indemnitee will at all times also have the right to participate fully in the defense at its
own expense. If the Indemnitor fails to assume the defense within a reasonable period of time, then the Indemnitee will have the right, but not the obligation, to undertake the defense of, and compromise or settle (exercising reasonable business
judgment) the claim or other matters on behalf of, for the account and at the risk of, the Indemnitor. The Indemnitor will not agree to a compromise or settlement of any matter without the consent of the Indemnitee, which consent will not be
unreasonably withheld. Each party agrees to make available to the other all information and assistance required for the defense of any action or claim hereunder. 
 10.4 API’s Products Liability Insurance. API agrees to maintain product liability coverage for the Product in an amount, with such coverage, and subject to such deductibles of a type comparable to the
product liability insurance maintained by manufacturers of scientific instrumentation. Such insurance will be with insurance companies with a “BEST” rating of B+VI or higher. In no event will such insurance policies be in an amount
less than [*] limit per occurrence plus [*] excess for a total of [*] for one occurrence, and a maximum annual aggregate insurance of [*] for all occurrences in one year. 
 10.5 The Distributor’s Product Liability Insurance. The Distributor agrees to maintain product liability coverage for the Product in an
amount, with such coverage, and subject to such deductibles of a type comparable to the product liability insurance maintained by manufacturers and distributors of similar scientific instrumentation. Such insurance will be with insurance companies
with a “BEST” rating of B+VI or higher or equivalent E.U. standard. In no event will such insurance policies for the Product be in an amount less than [*] limit per occurrence plus [*] excess for a total of [*]
for one occurrence, and a maximum annual aggregate insurance of [*] for all occurrences relating to Product in one year. In the event the insurance is written under a claims made insuring form, (i) a quarterly status of claims report
will be provided to API; and (ii) in the event of a change in carriers, a retroactive date covering unreported claims throughout prior policy periods will be selected. The Distributor will add API as an additional insured on all such insurance
policies. Such insurance policies will require that the insurer provide to API thirty (30) days advance written notice of cancellation and expiration. The Distributor will provide to API when first obtaining such insurance policy and thereafter
upon each renewal a certificate evidencing that it has obtained insurance meeting the requirements of this Section 10.5. 
  

			
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 ARTICLE 11 
 CONFIDENTIALITY 
 Information provided under this Agreement, including without limitation
communications between the parties regarding all proprietary materials and intellectual property, included but not limited to Trademarks, Patents, copyrights, and trade secrets, will be subject to the terms and conditions of the March 27, 2001
Reciprocal Non-Disclosure Agreement. 
 ARTICLE 12 
 TERM AND TERMINATION 
 12.1 Initial Term. Unless earlier terminated as provided in
Section 12.3, this Agreement will be for an initial term commencing as of the Effective Date and ending upon the three (3) year anniversary of the Effective Date (such period will be referred to as the “Initial Term”).

 12.2 Renewals. On or before [*] prior to the end of the Initial Term the Distributor will give written notice to API if the
Distributor wants to renew this Agreement. If the Distributor has made the sales of Products required under Section 4.3 and payment to API as required under the Initial Term of this Agreement the senior management of API and the Distributor
will negotiate in good faith to renew the Agreement by [*]. Provided that the parties can agree on these minimums this Agreement may be renewed to continue [*] (“Renewal Term”) beyond the Initial Term. In no case will API be
obligated to extend this Agreement for more than [*], but API may, in its sole discretion, continue to grant Renewal Terms if both API and the Distributor mutually agree. 
 12.3 Termination. Either party (the “Terminating Party”) may terminate this Agreement at any time by delivering a written notice to the
other party (the “Notified Party”), as follows: 
 (a) This Agreement may terminate upon the breach by the Notified Party of any of
the terms and conditions of this Agreement which is not cured within thirty (30) days of written notice of the breach by the Terminating Party to the Notified Party; 
 (b) This Agreement may be terminated immediately upon written notice by either party, in the event the Notified Party becomes insolvent or admits in writing its inability to pay its debts as they become due or makes
an assignment for the benefit of creditors or if a petition under any bankruptcy act, receivership statute or the like, as they now exist or as they may be amended, is filed by the Notified Party or by any third party or an application for a
receiver is made by anyone and such application is not resolved favorably to the Notified Party within sixty (60) days. 
 (c) This
Agreement may be terminated immediately by API: upon 30 days’ prior written notice in the event the Distributor has violated the terms of the license granted in Section 2.2. 
  

			
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 12.4 Additional Termination Rights of API. Upon written notice, API may immediately terminate
the [*] of this Agreement and convert this Agreement to a [*] upon thirty (30) days prior written notice to the Distributor that it has failed to [*] 
 12.5 Post Termination. The following provisions will govern the rights and obligations of the parties following termination or expiration of this
Agreement: Section 5.7 (Audit Rights), Section 10.1 (Indemnification by API), Section 10.2 (Indemnification by The Distributor), Section 10.3 (Conditions of Indemnification), Article 11 (Confidentiality), Section 12.5 (Post
Termination) and Article 15 (Miscellaneous). 
 ARTICLE 13 
 FORCE MAJEURE 
 Neither party will be in default for, or held responsible for damages caused by,
delay or failure to perform in full or in part its obligations under this Agreement where such delay or failure is due to circumstances such as fires, strikes, acts of government, and failures of common carriers which are beyond the control of the
party and which were not foreseeable and could not have been reasonably provided for. 
 ARTICLE 14 
 EXPORT CONTROLS 
 In exercising its
rights under this Agreement, the Distributor agrees to comply strictly and fully with all export controls imposed on the Products by any country or organization of nations within whose jurisdiction the Distributor operates or does business. The
Distributor further agrees not to export, re-export or permit exportation or re-exportation of the Products without first obtaining any required license from the appropriate governmental agencies of the United States or complying fully and strictly
with all requirements of any general license exempting the exportation or re-exportation from the requirement of that permission. 
 ARTICLE 15 
 MISCELLANEOUS 
 16.1 Notices. Any notice or other communication required or permitted to be given by either party hereto (including without limitation, purchase orders and acknowledgments of the same) will be given in writing
by personal delivery, by facsimile transmission and confirmed by dispatch of the same by notice to the concerned party by postage prepaid mail, or by postage prepaid mail, delivered, dispatched or addressed to the concerned party at the address or
number specified below: 
  

			
	If to Applied Precision:	  	 CEO
 Applied Precision, Inc.
 1040 12th Avenue NW
 Issaquah, WA 98027

  

			
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	If to the Distributor:	  	 John P. Kummer Ltd.
 121 High Street
 Marlborough SN8 1TR
 United Kingdom

		
	If to the Distributor:	  	 John P. Kummer Sari
 Zone Industrielle de la Petite
Montagne Sud
 1 Rue des Cevennes
 F-9 1047 EVRY Cedex
France

		
	If to the Distributor:	  	 John P. Kummer GmbH.
 Steinerne Furt
 78 D-86167
 Augsburg, Germany

 or to such other addresses and numbers either party hereto may indicate by proper notice to the other in the same
manner as provided for in this Section. Notices will be deemed effective on the date of delivery, in the case of personal delivery, on the date of deposit in the mails of a confirming copy of a facsimile notice, in the case of such notice, and
three (3) business days after mailing in accordance with the provisions of this Section, in the case of mailing. 
 16.2
Assignment. Neither party may assign, transfer, or delegate or subcontract, in whole or in part, any of its rights or obligations under this Agreement without the prior written consent of the other. This Agreement will be binding on any
successor to API’s rights in the Patents and Trademarks. 
 16.3 Entire Agreement. This Agreement supersedes any prior oral or
written statements, agreements or representations and constitutes the entire Agreement between the parties. This Agreement may be changed only by a written amendment signed by both parties. In the event that any one or more of the provisions of this
Agreement will be found to be illegal or unenforceable, then such provisions will be deemed struck and the other provisions of this Agreement will remain in full force and effect. 
 16.4 Non-Waiver. The waiver by either party of any default or breach under this Agreement will not constitute a waiver of any subsequent default
or breach of the same or of a different kind. 
 16.5 Applicable Law. This Agreement will be governed by and construed in accordance
with the laws of the State of Washington. 
 16.6 Independent Contractor. API and the Distributor are, and at all times during the
Term will remain, independent contractors. Neither party will be deemed an agent, partner or joint venturer of the other party. In no event will either party at any time have authority to make any contracts or commitments on behalf of or as an agent
of the other party. 
  

			
	14	  	

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	 APPLIED PRECISION, INC.

		
	 By:
	 	 /s/ Donald B. Snow

		 	 Donald Snow 8/13/01

	 Title:
	 	 Chief Executive Officer

	
	 John P. Kummer AG

		
	 By:
	 	/s/ John P. Kummer
		
	 Title:
	 	President

  

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 Attachment A 
 John P. Kummer, SARL 
 Service Representative Agreement 
 [*] 

 This document has been redacted pursuant to a confidential treatment request. 
 The * symbol denotes redacted information. 
  

 EXHIBIT A 
 Description of Products and Markets 
 Product Description 
 [*] 
 Product Markets 
 [*] 

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 EXHIBIT B 
 Applied Precision Trademarks and Logos 
 Graphic of company and product trademarks and logos. 

 This document has been redacted pursuant to a confidential treatment request. 
 The * symbol denotes redacted information. 
  

 EXHIBIT C 
 PATENT APPLICATIONS AND PATENTS 
 [*] 

 This document has been redacted pursuant to a confidential treatment request. 
 The * symbol denotes redacted information. 
  

 EXHIBIT D 
 Product Transfer Price 
 [*] 

 This document has been redacted pursuant to a confidential treatment request. 
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 EXHIBIT E 
 [*] 
 Warranty Documentation 
 [*] 

 This document has been redacted pursuant to a confidential treatment request. 
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 EXHIBIT F 
 Service and Warranty of API 
 [*] 

 This document has been redacted pursuant to a confidential treatment request. 
 The * symbol denotes redacted information. 
  

 EXHIBIT G 
 Service of the Distributor 
 [*] 

 This document has been redacted pursuant to a confidential treatment request. 
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 EXHIBIT H 
 Customer Acceptance Agreement 
 [*] 

 This document has been redacted pursuant to a confidential treatment request. 
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 EXHIBIT I 
 Sales Quote 
 [*]

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