Document:

Exhibit 10.7

 

	
   

  	
  

  	
   

  	
  Initials: Interested Party 

  	
             

  
	
  Accuray 

  	
             

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
						

 

INDEMNIFICATION AGREEMENT

 

This
Indemnification Agreement (“Agreement”)
is effective as of
            , 2009 by
and between Accuray Incorporated, a Delaware corporation (the “Company”), and
                                       
(“Indemnitee”).

 

A.           The Company recognizes the continued difficulty in obtaining liability
insurance for its directors, officers, employees, controlling persons,
fiduciaries and other agents and affiliates, the significant increases in the
cost of such insurance and the general reductions in the coverage of such
insurance.

 

B.             The Company further recognizes the substantial increase in corporate
litigation in general, subjecting directors, officers, employees, controlling
persons, fiduciaries and other agents and affiliates to expensive litigation
risks at the same time as the availability and coverage of liability insurance
has been severely limited.

 

C.             The current protection available to directors, officers, employees,
controlling persons, fiduciaries and other agents and affiliates of the Company
may not be adequate under the present circumstances, and directors, officers,
employees, controlling persons, fiduciaries and other agents and affiliates of
the Company (or persons who may be alleged or deemed to be the same), including
the Indemnitee, may not be willing to continue to serve or be associated with
the Company in such capacities without additional protection.

 

D.            The Company (a) desires to attract and retain the involvement of
highly qualified persons, such as Indemnitee, to serve and be associated with
the Company, and (b) accordingly, wishes to provide for the
indemnification and advancement of expenses to the Indemnitee to the maximum
extent permitted by law.

 

E.              In view of the considerations set forth above, the Company desires that
Indemnitee shall be indemnified and advanced expenses by the Company as set
forth herein. In consideration of the mutual promises and covenants contained
herein, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

 

1.                                      Certain Definitions.

 

(a)                                  “Change
in Control” shall be deemed to have occurred if, on or after the
date of this Agreement, (i) any “person” (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended), other than a trustee or other fiduciary holding securities under
an employee benefit plan of the Company acting in such capacity or a corporation
owned directly or indirectly by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company,
becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act),
directly or indirectly, of securities of the Company

 

	
  INDEMNIFICATION
  AGREEMENT STD 03.25.09

  	
   

  	
  ACCURAY CONFIDENTIAL

  
	
  [First Name Last Name] –
  [MM.DD.YY]

  	
   

  	
   

  

 

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  Accuray 

  	
             

  

 

representing
more than 50% of the total voting power represented by the Company’s then
outstanding Voting Securities (as defined below), (ii) during any period
of two (2) consecutive years, individuals who at the beginning of such
period constitute the Board of Directors of the Company and any new director
whose election by the Board of Directors or nomination for election by the
Company’s stockholders was approved by a vote of at least two thirds (2/3) of
the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute a majority thereof, or (iii) the
stockholders of the Company approve a merger or consolidation of the Company
with any other corporation other than a merger or consolidation which would
result in the Voting Securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into Voting Securities of the surviving entity) at least 80% of the
total voting power represented by the Voting Securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation, or
(iv) the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of (in one transaction or a series of related transactions) all or
substantially all of the Company’s assets.

 

(b)           “Claim” shall mean with respect to a
Covered Event (as defined below):  any
threatened, asserted, pending or completed action, suit, proceeding or
alternative dispute resolution mechanism, or any hearing, inquiry or
investigation that Indemnitee in good faith believes might lead to the
institution of any such action, suit, proceeding or alternative dispute
resolution mechanism, whether civil, criminal, administrative, investigative or
other.

 

(c)           References
to the “Company” shall include,
in addition to Accuray Incorporated, any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger to which
Accuray Incorporated (or any of its wholly owned subsidiaries) is a party,
which, if its separate existence had continued, would have had power and
authority to indemnify its directors, officers, employees, agents or
fiduciaries, so that if Indemnitee is or was a director, officer, employee,
agent or fiduciary of such constituent corporation, or is or was serving at the
request of such constituent corporation as a director, officer, employee, agent
or fiduciary of another corporation, partnership, joint venture, employee
benefit plan, trust or other enterprise, Indemnitee shall stand in the same
position under the provisions of this Agreement with respect to the resulting
or surviving corporation as Indemnitee would have with respect to such
constituent corporation if its separate existence had continued.

 

(d)           “Covered Event” shall mean any event or
occurrence related to the fact that Indemnitee is or was a director, officer,
employee, agent or fiduciary of the Company, or any subsidiary of the Company,
or is or was serving at the request of the Company as a director, officer,
employee, agent or fiduciary of another corporation, partnership, joint
venture, trust or other enterprise, or by reason of any action or inaction on
the part of Indemnitee while serving in such capacity.

 

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(e)           “Expenses” shall mean any and all direct
and indirect costs, losses, claims, damages, fees, expenses and liabilities,
joint or several (including attorneys’ fees and all other costs, expenses and
obligations incurred in connection with investigating, defending, being a
witness in or participating in (including on appeal), or preparing to defend,
to be a witness in or to participate in, any action, suit, proceeding,
alternative dispute resolution mechanism, hearing, inquiry or investigation),
judgments, fines, penalties and amounts paid in settlement (if such settlement
is approved in advance by the Company, which approval shall not be unreasonably
withheld) actually and reasonably incurred, of any Claim and any federal,
state, local or foreign taxes imposed on the Indemnitee as a result of the
actual or deemed receipt of any payments under this Agreement.

 

(f)            “Expense Advance” shall mean a payment to
Indemnitee pursuant to Section 3 of Expenses in advance of the settlement
of or final judgement in any action, suit, proceeding or alternative dispute
resolution mechanism, hearing, inquiry or investigation, which constitutes a
Claim.

 

(g)           “Independent Legal Counsel” shall mean an
attorney or firm of attorneys, selected in accordance with the provisions of Section 2(d) hereof,
who shall not have otherwise performed services for the Company or Indemnitee
within the last three (3) years (other than with respect to matters
concerning the rights of Indemnitee under this Agreement, or of other
indemnitees under similar indemnity agreements).

 

(h)           References
to “other enterprises” shall
include employee benefit plans; references to “fines” shall include any excise taxes assessed on Indemnitee with
respect to an employee benefit plan; and references to “serving at the request of the Company” shall
include any service as a director, officer, employee, agent or fiduciary of the
Company which imposes duties on, or involves services by, such director,
officer, employee, agent or fiduciary with respect to an employee benefit plan,
its participants or its beneficiaries; and if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan, Indemnitee shall be
deemed to have acted in a manner “not opposed
to the best interests of the Company” as referred to in this
Agreement.

 

(i)            “Reviewing Party” shall mean, subject to
the provisions of Section 2(d), any person or body appointed by the Board
of Directors in accordance with applicable law to review the Company’s
obligations hereunder and under applicable law, which may include a member or
members of the Company’s Board of Directors, Independent Legal Counsel or any
other person or body not a party to the particular Claim for which Indemnitee
is seeking indemnification, exoneration or hold harmless rights.

 

(j)            “Section” refers to a section of this
Agreement unless otherwise indicated.

 

(k)           “Voting Securities” shall mean any
securities of the Company that vote generally in the election of directors.

 

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2.                                      Indemnification.

 

(a)                                  Indemnification of Expenses.  Subject to the provisions of Section 2(b) below,
the Company shall indemnify, exonerate or hold harmless Indemnitee for Expenses
to the fullest extent permitted by law if Indemnitee was or is or becomes a
party to or witness or other participant in, or is threatened to be made a
party to or witness or other participant in, any Claim (whether by reason of or
arising in part out of a Covered Event), including all interest, assessments
and other charges incurred in connection with or in respect of such Expenses.

 

(b)           Review
of Indemnification Obligations. 
Notwithstanding the foregoing, in the event any Reviewing Party shall
have determined (in a written opinion, in any case in which Independent Legal
Counsel is the Reviewing Party) that Indemnitee is not entitled to be
indemnified, exonerated or held harmless hereunder under applicable law, (i) the
Company shall have no further obligation under Section 2(a) to make
any payments to Indemnitee not made prior to such determination by such
Reviewing Party and (ii) the Company shall be entitled to be reimbursed by
Indemnitee (who hereby agrees to reimburse the Company) for all Expenses
theretofore paid in indemnifying, exonerating or holding harmless Indemnitee
(within thirty (30) days after such determination); provided,
however, that if Indemnitee has commenced or thereafter commences
legal proceedings in a court of competent jurisdiction to secure a
determination that Indemnitee is entitled to be indemnified, exonerated or held
harmless hereunder under applicable law, any determination made by any
Reviewing Party that Indemnitee is not entitled to be indemnified hereunder
under applicable law shall not be binding and Indemnitee shall not be required
to reimburse the Company for any Expenses theretofore paid in indemnifying,
exonerating or holding harmless Indemnitee until a final judicial determination
is made with respect thereto (as to which all rights of appeal therefrom have
been exhausted or lapsed).  Indemnitee’s
obligation to reimburse the Company for any Expenses shall be unsecured and no
interest shall be charged thereon.

 

(c)                                  Indemnitee Rights on
Unfavorable Determination; Binding Effect. 
If any Reviewing Party determines that Indemnitee substantively is not
entitled to be indemnified, exonerated or held harmless hereunder in whole or
in part under applicable law, Indemnitee shall have the right to commence
litigation seeking an initial determination by the court or challenging any
such determination by such Reviewing Party or any aspect thereof, including the
legal or factual bases therefor, and, subject to the provisions of Section 15,
the Company hereby consents to service of process and to appear in any such
proceeding.  Absent such litigation, any
determination by any Reviewing Party shall be conclusive and binding on the
Company and Indemnitee.

 

(d)                                 Selection of Reviewing
Party; Change in Control.  If there has not been a Change
in Control, any Reviewing Party shall be selected by the Board of Directors,
and if there has been such a Change in Control (other than a Change in Control
which has been approved by a majority of the Company’s Board of Directors who
were directors immediately prior to such Change in Control), any Reviewing
Party with respect to all matters thereafter arising concerning Indemnitee’s
indemnification, exoneration or hold harmless rights for Expenses under this

 

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Agreement
or any other agreement or under the Company’s Certificate of Incorporation or
bylaws as now or hereafter in effect, or under any other applicable law, if
desired by Indemnitee, shall be Independent Legal Counsel selected by the
Indemnitee and approved by Company (which approval shall not be unreasonably
withheld). Such counsel, among other things, shall render its written opinion
to the Company and Indemnitee as to whether and to what extent Indemnitee would
be entitled to be indemnified, exonerated or held harmless hereunder under
applicable law and the Company agrees to abide by such opinion.  The Company agrees to pay the reasonable fees
of the Independent Legal Counsel referred to above and to fully indemnify,
exonerate and hold harmless such counsel against any and all expenses
(including attorneys’ fees), claims, liabilities and damages arising out of or
relating to this Agreement or its engagement pursuant hereto.  Notwithstanding any other provision of this
Agreement, the Company shall not be required to pay Expenses of more than one
Independent Legal Counsel in connection with all matters concerning a single
Indemnitee, and such Independent Legal Counsel shall be the Independent Legal
Counsel for any or all other Indemnitees unless (i) the Company otherwise
determines or (ii) any Indemnitee shall provide a written statement
setting forth in detail a reasonable objection to such Independent Legal
Counsel representing other Indemnitees.

 

(e)                                  Mandatory Payment of
Expenses.  Notwithstanding any other
provision of this Agreement other than Section 10 hereof, to the extent
that Indemnitee has been successful on the merits or otherwise, including,
without limitation, the dismissal of an action without prejudice, in defense of
any Claim, Indemnitee shall be indemnified, exonerated and held harmless
against all Expenses incurred by Indemnitee in connection therewith.

 

(f)                                    Contribution.  If the indemnification, exoneration or hold
harmless rights provided for in this Agreement is for any reason held by a
court of competent jurisdiction to be unavailable to an Indemnitee, then in
lieu of indemnifying, exonerating or holding harmless Indemnitee thereunder,
the Company shall contribute to the amount paid or payable by Indemnitee as a
result of such Expenses (i) in such proportion as is appropriate to
reflect the relative benefits received by the Company and Indemnitee, or (ii) if
the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of
the Company and Indemnitee in connection with the action or inaction which
resulted in such Expenses, as well as any other relevant equitable
considerations.  In connection with the
registration of the Company’s securities, the relative benefits received by the
Company and Indemnitee shall be deemed to be in the same respective proportions
that the net proceeds from the offering (before deducting expenses) received by
the Company and Indemnitee, in each case as set forth in the table on the cover
page of the applicable prospectus, bear to the aggregate public offering
price of the securities so offered.  The
relative fault of the Company and Indemnitee shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company or Indemnitee and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

 

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The Company and Indemnitee agree that it would not be just and
equitable if contribution pursuant to this Section 2(f) were
determined by pro rata or by any other method of allocation which does not take
account of the equitable considerations referred to in the immediately
preceding paragraph.  In connection with
the registration of the Company’s securities, in no event shall Indemnitee be
required to contribute any amount under this Section 2(f) in excess
of the net proceeds received by Indemnitee from its sale of securities under
such registration statement.  No person
found guilty of fraudulent misrepresentation (within the meaning of Section 11(1) of
the Securities Act) shall be entitled to contribution from any person who was
not found guilty of such fraudulent misrepresentation.

 

3.                                      Expense Advances.

 

(a)                                  Obligation to Make Expense
Advances.  The Company shall make Expense
Advances to Indemnitee upon receipt of a written undertaking by or on behalf of
the Indemnitee to repay such amounts if it shall ultimately be determined that
the Indemnitee is not entitled to be indemnified, exonerated or held harmless
therefor by the Company.

 

(b)                                 Form of Undertaking.  Any written undertaking by the Indemnitee to
repay any Expense Advances hereunder shall be unsecured and no interest shall
be charged thereon.

 

4.                                      Procedures for Indemnification and Expense Advances.

 

(a)                                  Timing of Payments.  All payments of Expenses (including without
limitation Expense Advances) by the Company to the Indemnitee pursuant to this
Agreement shall be made to the fullest extent permitted by law as soon as
practicable after written demand by Indemnitee therefor is presented to the
Company, but in no event later than forty-five (45) days after such written
demand by Indemnitee is presented to the Company, except in the case of Expense
Advances, which shall be made no later than twenty (20) days after such written
demand by Indemnitee is presented to the Company.

 

(b)                                 Notice/Cooperation by
Indemnitee.  Indemnitee shall, as a
condition precedent to Indemnitee’s right to be indemnified, exonerated or held
harmless or Indemnitee’s right to receive Expense Advances under this
Agreement, give the Company notice in writing as soon as practicable of any
Claim made against Indemnitee for which indemnification, exoneration or hold
harmless right will or could be sought under this Agreement.  Notice to the Company shall be directed to the
President or Chief Executive Officer of the Company at the address shown on the
signature page of this Agreement (or such other address as the Company
shall designate in writing to Indemnitee). 
In addition, Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee’s
power.

 

(c)           No
Presumptions; Burden of Proof.  For
purposes of this Agreement, the termination of any Claim by judgment, order,
settlement (whether with or without court approval) or conviction, or upon a
plea of nolo contendere, or its equivalent,
shall not create a

 

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presumption
that Indemnitee did not meet any particular standard of conduct or have any
particular belief or that a court has determined that indemnification,
exoneration or hold harmless right is not permitted by this Agreement or
applicable law.  In addition, neither the
failure of any Reviewing Party to have made a determination as to whether
Indemnitee has met any particular standard of conduct or had any particular
belief, nor an actual determination by any Reviewing Party that Indemnitee has
not met such standard of conduct or did not have such belief, prior to the
commencement of legal proceedings by Indemnitee to secure a judicial
determination that Indemnitee should be indemnified, exonerated or held
harmless under this Agreement or applicable law, shall be a defense to
Indemnitee’s claim or create a presumption that Indemnitee has not met any
particular standard of conduct or did not have any particular belief.  In connection with any determination by any
Reviewing Party or otherwise as to whether the Indemnitee is entitled to be
indemnified, exonerated or held harmless hereunder, the burden of proof shall
be on the Company to establish that Indemnitee is not so entitled.

 

(d)                                 Notice to Insurers.  If, at the time of the receipt by the Company
of a notice of a Claim pursuant to Section 4(b) hereof, the Company
has liability insurance in effect which may cover such Claim, the Company shall
give prompt notice of the commencement of such Claim to the insurers in
accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such Claim in accordance with
the terms of such policies.

 

(e)           Selection
of Counsel.  In the event the Company
shall be obligated hereunder to provide indemnification, exoneration or hold
harmless rights for or make any Expense Advances with respect to the Expenses
of any Claim, the Company, if appropriate, shall be entitled to assume the
defense of such Claim with counsel approved by Indemnitee (which approval shall
not be unreasonably withheld) upon the delivery to Indemnitee of written notice
of the Company’s election to do so. 
After delivery of such notice, approval of such counsel by Indemnitee
and the retention of such counsel by the Company, the Company will not be
liable to Indemnitee under this Agreement for any fees or expenses of separate
counsel subsequently employed by or on behalf of Indemnitee with respect to the
same Claim; provided, however, that (i) Indemnitee
shall have the right to employ Indemnitee’s separate counsel in any such Claim
at Indemnitee’s expense and (ii) if (A) the employment of separate
counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee
shall have reasonably concluded that there may be a conflict of interest
between the Company and Indemnitee in the conduct of any such defense, or (C) the
Company shall not continue to retain such counsel to defend such Claim, then
the fees and expenses of Indemnitee’s separate counsel shall be Expenses for
which Indemnitee may receive indemnification, exoneration or hold harmless
rights or Expense Advances hereunder. 
The Company shall have the right to conduct such defense as it sees fit
in its sole discretion, including the right to settle any claim, action or
proceeding against Indemnitee without the consent of Indemnitee, provided that
the terms of such settlement include either: (i) a full release of
Indemnitee by the claimant from all liabilities or potential liabilities under
such claim; or (ii), in the event such full release is not obtained, the terms
of such settlement do not limit any indemnification, exoneration or hold
harmless right Indemnitee may now, or hereafter,

 

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be
entitled to under this Agreement, the Company’s Certificate of Incorporation,
bylaws, any agreement, any vote of stockholders or disinterested directors, the
General Corporation Law of the State of Delaware (the “DGCL”) or otherwise.

 

5.                                      Additional Indemnification Rights; Nonexclusivity.

 

(a)                                  Scope.  The Company hereby agrees to indemnify,
exonerate and hold harmless the Indemnitee to the fullest extent permitted by
law, notwithstanding that such indemnification, exoneration or hold harmless
right is not specifically authorized by the other provisions of this Agreement,
the Company’s Certificate of Incorporation, the Company’s bylaws or by
statute.  In the event of any change
after the date of this Agreement in any applicable law, statute or rule which
expands the right of a Delaware corporation to indemnify, exonerate or hold
harmless a member of its board of directors or an officer, employee, agent or
fiduciary, it is the intent of the parties hereto that Indemnitee shall enjoy
by this Agreement the greater benefits afforded by such change.  In the event of any change in any applicable
law, statute or rule which narrows the right of a Delaware corporation to
indemnify, exonerate or hold harmless a member of its board of directors or an
officer, employee, agent or fiduciary, such change, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement,
shall have no effect on this Agreement or the parties’ rights and obligations
hereunder except as set forth in Section 10(a) hereof.

 

(b)                                 Nonexclusivity.  The indemnification, exoneration or hold
harmless rights and the payment of Expense Advances provided by this Agreement
shall be in addition to any rights to which Indemnitee may be entitled under
the Company’s Certificate of Incorporation, its bylaws, any other agreement,
any vote of stockholders or disinterested directors, the DGCL, or
otherwise.  The indemnification,
exoneration or hold harmless rights and the payment of Expense Advances
provided under this Agreement shall continue as to Indemnitee for any action
taken or not taken while serving in an indemnified, exonerated or held harmless
capacity even though subsequent thereto Indemnitee may have ceased to serve in
such capacity.

 

6.                                      No Duplication of Payments.  The Company shall not be liable under this
Agreement to make any payment in connection with any Claim made against
Indemnitee to the extent Indemnitee has otherwise actually received payment
(under any insurance policy, provision of the Company’s Certificate of
Incorporation, bylaws or otherwise) of the amounts otherwise payable hereunder.

 

7.                                      Partial Indemnification.  If Indemnitee is entitled under any provision
of this Agreement to indemnification, exoneration or hold harmless rights by
the Company for some or a portion of Expenses incurred in connection with any
Claim, but not, however, for the total amount thereof, the Company shall
nevertheless indemnify, exonerate or hold harmless Indemnitee for the portion
of such Expenses to which Indemnitee is entitled.

 

8.                                      Mutual Acknowledgment.  Both the Company and Indemnitee acknowledge
that in certain instances, federal law or applicable public policy may prohibit
the Company from indemnifying, exonerating or holding harmless its directors,
officers, employees, agents or

 

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fiduciaries
under this Agreement or otherwise. 
Indemnitee understands and acknowledges that the Company may be required
in the future to undertake with the Securities and Exchange Commission to
submit the question of indemnification, exoneration or hold harmless rights to
a court in certain circumstances for a determination of the Company’s right
under public policy to indemnify, exonerate or hold harmless Indemnitee.

 

9.                                      Liability Insurance.  To the extent the Company maintains liability
insurance applicable to directors, officers, employees, agents or fiduciaries,
Indemnitee shall be covered by such policies in such a manner as to provide
Indemnitee the same rights and benefits as are provided to the most favorably
insured of the Company’s directors, if Indemnitee is a director; or of the
Company’s officers, if Indemnitee is not a director of the Company but is an
officer; or of the Company’s key employees, agents or fiduciaries, if Indemnitee
is not an officer or director but is a key employee, agent or fiduciary.

 

10.                               Exceptions.  Notwithstanding any other provision of this
Agreement, the Company shall not be obligated pursuant to the terms of this
Agreement:

 

(a)           Excluded
Action or Omissions.  To indemnify,
exonerate or hold harmless Indemnitee for Expenses resulting from acts,
omissions or transactions for which Indemnitee is prohibited from receiving
indemnification, exoneration or hold harmless rights under this Agreement or
applicable law; provided, however, that
notwithstanding any limitation set forth in this Section 10(a) regarding
the Company’s obligation to provide indemnification, exoneration or hold
harmless rights to Indemnitee shall be entitled under Section 3 to receive
Expense Advances hereunder with respect to any such Claim unless and until a
court having jurisdiction over the Claim shall have made a final judicial
determination (as to which all rights of appeal therefrom have been exhausted
or lapsed) that Indemnitee has engaged in acts, omissions or transactions for
which Indemnitee is prohibited from receiving indemnification under this
Agreement or applicable law.

 

(b)                                 Claims Initiated by
Indemnitee.  To indemnify, exonerate or
hold harmless or make Expense Advances to Indemnitee with respect to Claims
initiated or brought voluntarily by Indemnitee and not by way of defense,
counterclaim or cross claim, except (i) with respect to actions or
proceedings brought to establish or enforce an indemnification, exoneration or
hold harmless right under this Agreement or any other agreement or insurance
policy or under the Company’s Certificate of Incorporation or bylaws now or
hereafter in effect relating to Claims for Covered Events, (ii) in
specific cases if the Board of Directors has approved the initiation or
bringing of such Claim, or (iii) as otherwise required under Section 145
of the DGCL, regardless of whether Indemnitee ultimately is determined to be
entitled to such indemnification, exoneration, hold harmless right, Expense
Advances or insurance recovery, as the case may be.

 

(c)                                  Lack of Good Faith.  To indemnify, exonerate or hold harmless
Indemnitee for any Expenses incurred by the Indemnitee with respect to any
action instituted (i) by Indemnitee to enforce or interpret this
Agreement, if a court having jurisdiction over such action determines as
provided in Section 13 that each of the material assertions made by the

 

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Indemnitee
as a basis for such action was not made in good faith or was frivolous, or (ii) by
or in the name of the Company to enforce or interpret this Agreement, if a
court having jurisdiction over such action determines as provided in Section 13
that each of the material defenses asserted by Indemnitee in such action was
made in bad faith or was frivolous.

 

(d)           Claims
Under Section 16(b).  To
indemnify, exonerate or hold harmless Indemnitee for expenses and the payment
of profits arising from the purchase and sale by Indemnitee of securities in
violation of Section 16(b) of the Securities Exchange Act of 1934, as
amended, or any similar successor statute; provided, however,
that notwithstanding any limitation set forth in this Section 10(d) regarding
the Company’s obligation to provide indemnification or exoneration or hold
harmless, Indemnitee shall be entitled under Section 3 to receive Expense
Advances hereunder with respect to any such Claim unless and until a court
having jurisdiction over the Claim shall have made a final judicial
determination (as to which all rights of appeal therefrom have been exhausted
or lapsed) that Indemnitee has violated said statute.

 

11.                               Counterparts.  This Agreement may be executed in
counterparts and by facsimile or electronic transmission, each of which shall
constitute an original and all of which, together, shall constitute one
instrument.

 

12.                               Binding Effect; Successors and Assigns.  This
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors, assigns, including any
direct or indirect successor by purchase, merger, consolidation or otherwise to
all or substantially all of the business and/or assets of the Company, spouses,
heirs, and personal and legal representatives. 
The Company shall require and cause any successor (whether direct or
indirect by purchase, merger, consolidation or otherwise) to all, substantially
all, or a substantial part, of the business and/or assets of the Company, by
written agreement in form and substance satisfactory to Indemnitee, expressly
to assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform if no such succession
had taken place.  This Agreement shall
continue in effect regardless of whether Indemnitee continues to serve as a
director, officer, employee, agent or fiduciary (as applicable) of the Company
or of any other enterprise at the Company’s request.

 

13.          Expenses
Incurred in Action Relating to Enforcement or Interpretation.  In the event
that any action is instituted by Indemnitee under this Agreement or under any
liability insurance policies maintained by the Company to enforce or interpret
any of the terms hereof or thereof, Indemnitee shall be entitled to be
indemnified for all Expenses incurred by Indemnitee with respect to such action
(including without limitation attorneys’ fees), regardless of whether
Indemnitee is ultimately successful in such action, unless as a part of such
action a court having jurisdiction over such action makes a final judicial
determination (as to which all rights of appeal therefrom have been exhausted
or lapsed) that each of the material assertions made by Indemnitee as a basis
for such action was not made in good faith or was frivolous; provided, however, that until such final judicial
determination is made, Indemnitee shall be entitled under Section 3 to
receive payment of Expense Advances hereunder with respect to such action.  In the

 

10

 

	
   

  	
  Initials: Interested Party 

  	
             

  
	
   

  	
  Accuray 

  	
             

  

 

event of an action instituted by or in the name of the Company under
this Agreement to enforce or interpret any of the terms of this Agreement,
Indemnitee shall be entitled to be indemnified, exonerated or held harmless for
all Expenses incurred by Indemnitee in defense of such action (including
without limitation costs and expenses incurred with respect to Indemnitee’s
counterclaims and cross-claims made in such action), unless as a part of such
action a court having jurisdiction over such action makes a final judicial
determination (as to which all rights of appeal therefrom have been exhausted
or lapsed) that each of the material defenses asserted by Indemnitee in such
action was made in bad faith or was frivolous; provided,
however, that until such final judicial determination is made,
Indemnitee shall be entitled under Section 3 to receive payment of Expense
Advances hereunder with respect to such action.

 

14.                               Notices.  All notices, requests, demands and other
communications under this Agreement shall be in writing and shall be deemed
duly given (i) if delivered by hand and signed for by the party addressed,
on the date of such delivery, or (ii) if mailed by domestic certified or
registered mail with postage prepaid, on the third business day after the date
postmarked.  Addresses for notice to
either party are as shown on the signature page of this Agreement or as
subsequently modified by written notice.

 

15.                               Consent to Jurisdiction.  The Company
and Indemnitee each hereby irrevocably consent to the jurisdiction of the
courts of the State of Delaware for all purposes in connection with any action
or proceeding which arises out of or relates to this Agreement and agree that
any action instituted under this Agreement shall be commenced, prosecuted and
continued only in the Court of Chancery of the State of Delaware in and for
Kent County, which shall be the exclusive and only proper forum for adjudicating
such a claim.

 

16.                               Severability.  The provisions of this Agreement shall be
severable in the event that any of the provisions hereof (including any
provision within a single section, paragraph or sentence) are held by a court
of competent jurisdiction to be invalid, void or otherwise unenforceable, and
the remaining provisions shall remain enforceable to the fullest extent
permitted by law.  Furthermore, to the
fullest extent possible, the provisions of this Agreement (including without
limitation each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

 

17.                               Choice of Law.  This Agreement, and all rights, remedies,
liabilities, powers and duties of the parties to this Agreement, shall be
governed by and construed in accordance with the laws of the State of Delaware
without regard to principles of conflicts of laws.

 

18.                               Subrogation.  In the event
of payment under this Agreement, the Company shall be subrogated to the extent
of such payment to all of the rights of recovery of Indemnitee from any
insurance policy purchase by the Company, who shall execute all documents
required and shall do all acts that may be necessary to secure such rights and
to enable the Company effectively to bring suit to enforce such rights.  In no event, however, shall the Company or
any

 

11

 

	
   

  	
  Initials: Interested Party 

  	
             

  
	
   

  	
  Accuray 

  	
             

  

 

other person
have any right of recovery, through subrogation or otherwise, against (i) Indemnitee
or (ii) any insurance policy purchased or maintained by Indemnitee.

 

19.                               Amendment and Termination.  No
amendment, modification, termination or cancellation of this Agreement shall be
effective unless it is in writing signed by both the parties hereto.  No waiver of any of the provisions of this
Agreement shall be deemed to be or shall constitute a waiver of any other
provisions hereof (whether or not similar), nor shall such waiver constitute a
continuing waiver.

 

20.                               Integration and Entire Agreement.  This
Agreement sets forth the entire understanding between the parties hereto and
supersedes and merges all previous written and oral negotiations, commitments,
understandings and agreements relating to the subject matter hereof between the
parties hereto.

 

21.                               No Construction as Employment Agreement.  Nothing contained in this Agreement shall be
construed as giving Indemnitee any right to employment by the Company or any of
its subsidiaries or affiliated entities.

 

22.                               Additional Acts.  If for the validation of any of the
provisions in this Agreement any act, resolution, approval or other procedure
is required, the Company undertakes to cause such act, resolution, approval or
other procedure to be affected or adopted in a manner that will enable the
Company to fulfill its obligations under this Agreement.

 

12

 

	
   

  	
  Initials: Interested Party 

  	
             

  
	
   

  	
  Accuray 

  	
             

  

 

IN WITNESS WHEREOF, the parties hereto have executed this
Indemnification Agreement as of the date first above written.

 

	
   

  	
  ACCURAY
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:
  Wayne Wu

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:
  Chairman of the Board of Directors

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Accuray
  Incorporated

  
	
   

  	
   

  	
  1310
  Chesapeake Terrace

  
	
   

  	
   

  	
  Sunnyvale,
  CA 94089

  
	
   

  	
   

  	
  Attn:
  General Counsel

  
	
   

  	
   

  
	
  AGREED
  TO AND ACCEPTED BY:

  	
   

  
	
   

  	
   

  
	
  INDEMNITEE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

13Exhibit 10.22

 

	
   

  	
   

  	
   

  	
  Initials:
  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

INDEPENDENT CONTRACTOR AGREEMENT

 

This Independent Contractor Agreement (“Agreement”)
is made effective as of April 1, 2009  by
and between Accuray Incorporated, a Delaware corporation (the “Company”), and
John Adler, M.D.  (“Contractor” and, together with
the Company, the “Parties”).  The Company
desires to retain Contractor as an independent contractor to perform certain
services for the Company and Contractor is willing to perform such services, on
terms set forth more fully below.  In
consideration of the mutual promises contained herein, the Parties agree as
follows:

 

1.                                       Services.

 

During the term of this agreement, Contractor will
provide services (the “Services”) to the Company as described on Exhibit A
attached to this Agreement.  Contractor
shall use his best efforts to perform the Services to the satisfaction of the
Company and by the completion dates specified by the Company.  Contractor shall not perform any Services for
the Company other than as specifically authorized in Exhibit A.

 

2.                                       Independent
Contractor Status.

 

It is the Parties’ intent that Contractor at all
times, and with respect to all Services covered by this Agreement function as
and remain an independent contractor, and not an employee or officer of the
Company, and neither Party shall represent to third parties that Contractor is
an employee or officer of the Company.

 

(a)                                  Contractor
shall be responsible for the payment of all taxes on amounts received from the Company
for the Services.  The Company will
regularly report amounts paid to Contractor by filing Form 1099-MISC with
the Internal Revenue service, as required by law. No part of Contractor’s fees
will be subject to withholding by the Company for payment of any social
security, federal, state or other employee payroll taxes. Contractor agrees to indemnify and hold the
Company harmless from any liability for, or assessment of, any such taxes
imposed on the Company by relevant taxing authorities.

 

(b)                                 Contractor
shall retain the right to perform services for others during the term of this
Agreement.

 

(c)                                  Contractor
will determine the method, details, and means of performing the Services.  The Company shall have no right to, and shall
not control, the manner or determine the method of accomplishment of the
Services, though it may define the Services to be performed.  Such Services may be amended, from
time-to-time, by the Parties by written agreement, signed by the Contractor and
the Company.

 

(d)                                 Contractor may, at Contractor’s own expense,
employ such assistants as the Contractor may deem necessary to perform the
Services.  The Company shall not control,
direct or supervise the work of Contractor’s assistants or employees in the
performance of Services.  The Contractor
assumes full and sole responsibility for the quality of Services provided by
the Contractor’s assistants or employees, for the payment of all compensation
and expenses of these assistants and employees, for state and federal income
taxes and other applicable payroll taxes and withholding that may be required
with respect to such assistants or employees, 
and for the provision of all benefits and insurance, including without
limitation, Worker’s Compensation Insurance, to such assistants or employees.  Contractor shall furnish the Company with
proof 

 

	
  INDEPENDENT
  CONTRACTOR AGREEMENT

  	
  ACCURAY CONFIDENTIAL

  
	
  John Adler,
  M.D.- 02.25.09

  	
   

  

 

1

 

	
   

  	
   

  	
   

  	
  Initials:
  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

of Worker’s Compensation
Insurance coverage for all persons who provide Services pursuant to this
Agreement.

 

(e)                                  Contractor shall be responsible for all
expenses incurred in the execution of Contractor’s responsibilities pursuant to
this Agreement, including, without limitation, all travel (including airfare
and lodging), entertainment and dining expenses.  No fines, taxes, bonds or fees imposed
against Contractor, or costs of Contractor doing business, shall be reimbursable
by the Company.

 

(f)                                    Contractor shall not be eligible to
participate in any fringe benefit program or any benefit plan of the Company.

 

(g)                                 Contractor will have no authority to enter
into contracts that bind the Company or to create obligations on the part of
the Company without the prior written authorization of the Company.

 

(h)                                 Contractor shall receive no office or
administrative support from Company.

 

(i)                                     Contractor will, in the performance of his
duties hereunder, comply with all policies and procedures of the Company that
are applicable to independent contractors and consultants, including but not
limited to the Company’s Code of Conduct and Ethics and the Company’s Code of
Conduct for Interaction with Healthcare Professionals.

 

3.                                       Fees.

 

As consideration for the Services to be provided by
Contractor, the Company will compensate Contractor as described in Exhibit B
to this Agreement.  Company will pay
Contractor Contractor’s annual compensation in quarterly installments of
$42,025, such quarterly installments to be paid in advance of each quarter
beginning on the date on which this Agreement is signed by both Parties and
thereafter on the first business day of each quarter.  Compensation for Contractor’s Services shall
be conditioned on the actual performance by Contractor of Services and the
Company’s receipt and approval of accurate and detailed quarterly invoices,
including records of time spent and Services performed, from Contractor in the
form attached hereto as Exhibit D. 
Contractor shall submit such quarterly invoices for all Services
performed by Contractor during the applicable quarter two (2) weeks prior
to the end of such quarter (for example, for the first quarterly period of this
Agreement, April 1, 2009 to June 30, 2009, Contractor’s first
quarterly invoice will be due to Company no later than June 15,
2009).  If for any quarter, Contractor
has not provided the level of Services required to earn the full quarterly
installment for such quarter, then the quarterly installment for Contractor for
the following quarter will be reduced in an amount equal to the amount that
Contractor was overcompensated for the preceding quarter.  If at the end of the term of this Agreement,
Contractor has never performed certain services, and Contractor’s failure to
perform such services has not been offset against any subsequent quarter’s
installment, then Contractor will reimburse Company the corresponding amount
for the services not performed within thirty (30) calendar days.  The Parties acknowledge that payment for the
Services provided hereunder is consistent with the fair market value of such
Services and is not conditioned in any way on the volume or value of any
business (i) between the Company and any other party, or (ii) resulting,
directly or indirectly, from any of Contractor’s activities hereunder.

 

2

 

	
   

  	
   

  	
   

  	
  Initials:
  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

4.                                      Confidentiality.

 

(a)                                  Confidential Information.  “Confidential Information” means Company
proprietary information, technical data, trade secrets or know-how, including,
but not limited to, research, product plans, product specifications, services,
customers, customer lists, pipeline documents, marketing plans and strategies,
software, developments, inventions, processes, formulas, technology, designs,
drawings, engineering, hardware configuration information, circuit board
designs, logic designs for filters and/or circuit boards, Company financials or
other business information disclosed by the Company either directly or
indirectly in writing, orally, or by drawings or inspection of parts or
equipment.  Confidential Information also
includes any other information designated by the Company as such upon its
disclosure to the Contractor.

 

(b)                                 Disclosure.  Contractor will not, during or subsequent to
the term of this Agreement, use the Company’s Confidential Information for any
purpose whatsoever other than the performance of the Services on behalf of the
Company.  Contractor will not disclose
the Company’s Confidential Information to any third party, and understands that
said Confidential Information shall remain the sole property of the
Company.  Contractor further agrees to
take all reasonable precautions to prevent any unauthorized disclosure of such
Confidential Information including, but not limited to, having each employee of
Contractor, if any, with access to any Confidential Information, execute a
nondisclosure agreement containing provisions in the Company’s favor
substantially similar to Sections 4, 5 and 6 of this Agreement.  Confidential Information does not include
information which, upon disclosure to Contractor is part of the public domain;
can be established by written evidence to have been in the possession of
Contractor at the time of disclosure; is received by Contractor from a third
party without restriction and without breach of this Agreement; or has
become publicly known and made generally available through no wrongful act of
Contractor.  If Contractor is required to
disclose Confidential Information by lawfully issued subpoena or by an
authorized order of a government agency, Contractor will immediately so inform
the Company, and will use best efforts to minimize the disclosure of such
Confidential Information and will consult with and assist the Company in
seeking a protective order prior to such disclosure.

 

(c)                                  Indemnity.  Contractor agrees that Contractor will not,
during the term of this Agreement, improperly use or disclose to the Company or
any of its employees any proprietary information or trade secrets of any former
or current employer or other person or entity with which Contractor has an
agreement, or to which Contractor has a duty, to keep in confidence information
acquired by Contractor, and that Contractor will not bring onto the premises of
the Company any unpublished document, proprietary information, or trade secret
belonging to such employer, person or entity unless consented to in writing by
such employer, person or entity. 
Contractor will indemnify the Company and hold it harmless from and
against all claims, liabilities, damages and expenses, including reasonable
attorneys’ fees and costs of suit, arising out of or in connection with any
violation or claimed violation of a third party’s rights resulting in whole or
in part from the Services provided by Contractor under this Agreement.

 

(d)                                 Third Parties.  Contractor recognizes that the Company has
received and in the future will receive from third parties their confidential
or proprietary information or trade secrets subject to a duty on the Company’s
part to maintain the confidentiality of such information and to use it only for
certain limited purposes.  Contractor
agrees that Contractor owes the Company and such third parties, during the term
of this Agreement and thereafter, a duty to hold all such confidential or
proprietary information or trade secrets in the strictest confidence and not to
disclose it to any person, firm or corporation or to use it except as necessary
in carrying out the Services for the Company consistent with the Company’s
agreement with such third party.

 

3

 

	
   

  	
   

  	
   

  	
  Initials:
  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

(e)                                  Return of Confidential Information.  Upon the termination of this Agreement, or
upon the Company’s earlier request, Contractor will deliver to the Company all
of the Company’s property and all Confidential Information in tangible form
that Contractor may have in Contractor’s possession or control.

 

5.                                      Ownership.

 

(a)                                  Inventions.  Contractor agrees that all copyrightable
material, notes, records, drawings, designs, inventions, improvements,
developments, discoveries and trade secrets (collectively, “Inventions”)
conceived, made or discovered by Contractor, solely or in collaboration with
others, during the period of this Agreement which relate in any manner to the
business of the Company that Contractor may be directed to undertake,
investigate or experiment with, or which Contractor may become associated with
as a result of work, investigation or experimentation in the line of business
of Company in performing the Services hereunder (which Company and Contractor
agree are related to Sales and Marketing), are the sole property of the
Company.  Contractor further agrees to
assign (or cause to be assigned) and does hereby assign fully to the Company
all such Inventions and any copyrights, patents, mask work rights or other
intellectual property rights relating thereto.

 

(b)                                 Assistance.  Contractor agrees to assist Company, or its
designee, at the Company’s expense, in every proper way to secure the Company’s
rights in the Inventions and any copyrights, patents, mask work rights or other
intellectual property rights relating thereto in any and all countries,
including the disclosure to the Company of all pertinent information and data
with respect thereto, the execution of all applications, specifications, oaths,
assignments and all other instruments which the Company shall deem necessary in
order to apply for and obtain such rights and in order to assign and convey to
the Company, its successors, assigns and nominees the sole and exclusive
rights, title and interest in and to such Inventions, and any copyrights,
patents, mask work rights or other intellectual property rights relating
thereto.  Contractor further agrees that
Contractor’s obligation to execute or cause to be executed, when it is in
Contractor’s power to do so, any such instrument or papers shall continue after
the termination of this Agreement.

 

(c)                                  License.  Contractor
agrees that if in the course of performing the Services (which Company and
Contractor acknowledge are related to Sales and Marketing), Contractor
incorporates into any Invention developed hereunder any invention, improvement,
development, concept, discovery or other proprietary information owned by
Contractor or in which Contractor has an interest, the Company is hereby
granted and shall have a nonexclusive, royalty-free, perpetual, irrevocable,
worldwide license to make, have made, modify, use and sell such item as part of
or in connection with such Invention.

 

(d)                                 Agent.  Contractor
agrees that if the Company is unable because of Contractor’s unavailability for
any reason to secure Contractor’s signature to apply for or to pursue any
application for any United States or foreign patents or mask work or copyright
registrations covering the Inventions assigned to the Company above, then
Contractor hereby irrevocably designates and appoints the Company and its duly
authorized officers and agents as Contractor’s agent and attorney-in-fact, to
act for and in Contractor’s behalf and stead to execute and file any such
applications and to do all other lawfully permitted acts to further the
prosecution and issuance of patents, copyright and mask work registrations
thereon with the same legal force and effect as if executed by Contractor.

 

4

 

	
   

  	
   

  	
   

  	
  Initials:
  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

6.                                       Originality
and Noninfringement.

 

Contractor represents and warrants that all
materials and Services provided hereunder will be original with Contractor and
that the use thereof by the Company or its customers, representatives,
distributors or dealers will not infringe any patent, copyright, trade secret
or other intellectual property right of any third party.  Contractor agrees to indemnify and hold the
Company harmless against any liability, loss, cost, damage, claims, demands or
expenses (including reasonable attorneys’ fees) of the Company or its
customers, representatives, distributors or dealers arising out of any
infringement or claim of infringement with respect to any materials or Services
provided by Contractor.

 

7.                                       Reports.

 

Contractor
agrees that Contractor will, from time-to-time during the term of this
Agreement, keep the Company informed as to Contractor’s progress in performing
the Services hereunder and that Contractor will, as requested by the Company,
prepare written reports with respect thereto. 
The Parties understand that the time required in the preparation of such
written reports shall be considered time devoted to the performance of
Contractor’s Services.

 

8.                                      Conflicting
Obligations.

 

(a)                                  Performance.  Contractor acknowledges that Contractor will
be available to perform the Services in a timely and responsible manner, except
for the occasional circumstance in which a pre-existing clinical responsibility
on the part of Contractor may conflict with a new commitment requested by the
Company, subject to the requirements of the schedule of Services arranged by
Company and Contractor pursuant to Section 1 of Exhibit A
hereto.  Failure to perform in a timely
and responsible manner shall be a breach of this Agreement.

 

(b)                                 No Conflicts.  Contractor represents and warrants that
Contractor has no outstanding agreement or obligation that is in conflict with any
provision of this Agreement, or that would preclude Contractor from complying
with the provisions hereof, except as disclosed in Exhibit C
hereto.  Contractor further represents
and warrants that Contractor will not enter into any such conflicting Agreement
during the term of this Agreement.

 

9.                                       Term
and Termination.

 

(a)                                  Commencement.  This Agreement will commence on the date
first above written and will continue for a period of one year (the “Initial
Term”).  Unless 30 days’ written notice
of termination is given by either Party prior to the expiration of the Initial
Term, or any subsequent Term, this Agreement shall renew for successive
one-year periods.

 

(b)                                 Termination.  This Agreement may be terminated as follows:

 

(i) 
Either Party may terminate this Agreement with 90 days’ prior written notice to
the other.  Any such notice shall be
addressed to such Party at the address shown below or such other address as
such Party shall provide to the other, and shall be deemed given upon delivery
if personally delivered, on the next business day if sent via overnight
courier, or three days after deposit in the United States mail, postage
prepaid, registered or certified mail, return receipt requested.

 

5

 

	
   

  	
   

  	
   

  	
  Initials:
  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

(ii) 
The Parties shall attempt to amend this Agreement upon receipt of any
Governmental Action in order to comply with such Governmental Action.  If the Parties, acting in good faith, are
unable to make the amendments necessary to comply with such Governmental
Action, or, alternatively, if either Party determines in good faith that
compliance with the Governmental Action is impossible or infeasible, this
Agreement shall terminate 10 days after one Party notifies the other of such
fact.  For purposes of this Section 9(b)(ii),
the term “Governmental Action” shall mean any legislation, regulation, rule or
procedure passed, adopted or implemented by any federal, state or local
government or legislative body or any private agency, or any notice of a
decision, finding, interpretation or action by any governmental or private
agency, court or other third party which, in the opinion of counsel to the
Company, because of the arrangement between the Parties pursuant to this
Agreement, if or when implemented, would: 
(A) constitute a violation of any federal, state or local law; or (B) subject
either Party, or any of their respective employees or agents, to civil or
criminal liability or prosecution on the basis of their participation in
executing this Agreement or performing their respective obligations under this
Agreement.

 

(iii)  If this
Agreement is terminated for any reason within one-year of the date first above
written, the Parties shall not enter into the same or substantially the same
arrangement contemplated by this Agreement during the period which is one (1) year
following the date first above written.

 

(c)                                  Survival.  Upon such
termination, all rights and duties of the Parties toward each other shall cease
except:

 

(i)                                     that the Company shall be obliged to pay,
within 30 days of receipt of the Contractor’s invoice, all amounts owing to
Contractor for unpaid Services through the termination date; and

 

(ii)                                  Sections 4, 5, 6, 9 and 11 shall survive
termination of this Agreement.

 

10.                                 Assignment. Neither this Agreement
nor any right hereunder nor interest herein may be assigned or transferred by
the Company or the Contractor without the written consent of the other.

 

11.                               Arbitration
and Equitable Relief.

 

(a)                                  Arbitration.  Except as provided in Section 11(b) below,
the Company and Contractor agree that any dispute or controversy arising out of
or relating to any interpretation, construction, performance or breach of this
Agreement shall be settled by arbitration to be held in Santa Clara County,
California  before a single, neutral
arbitrator associated with the Judicial Arbitration and Mediation Service (“JAMS”).  The arbitrator shall be selected by the
Parties or, if the Parties are unable to agree, by JAMS, in accordance with its
selection practices.  The arbitrator may
grant injunctions or other relief in such dispute or controversy.  The decision of the arbitrator shall be
final, conclusive, and binding on the Parties to the arbitration.  Judgment may be entered on the arbitrator’s
decision in any court of competent jurisdiction.  Unless otherwise required to preserve the
enforceability of this arbitration clause, the Company and Contractor shall
each pay one-half of the costs and expenses of such arbitration.

 

(b)                                 Equitable Relief.  Contractor agrees that it would be impossible
or inadequate to measure and calculate the Company’s damages from any breach of
the covenants set forth in Section 4 or 5 herein.  Accordingly, Contractor agrees that if
Contractor breaches Sections 4 or 5, the Company will have 

 

6

 

	
   

  	
   

  	
   

  	
  Initials:
  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

available, in addition to any other
right or remedy available, the right to obtain from any court of competent
jurisdiction an injunction restraining such breach or threatened breach and
specific performance of any such provision. 
Contractor further agrees that no bond or other security shall be
required in obtaining such equitable relief and Contractor hereby consents to
the issuances of such injunction and to the ordering of such specific
performance.

 

12.                               Miscellaneous.

 

(a)                                  Amendments and Waivers.  Any term of this Agreement may be amended or
waived only with the written consent of the Parties.

 

(b)                                 Entire Agreement.  This Agreement, including the Exhibits
hereto, constitutes the entire agreement of the Parties and supersedes and
replaces all oral negotiations and prior writings with respect to the subject
matter hereof.

 

(c)                                  Notices.  Any notice
required or permitted by this Agreement shall be in writing and shall be deemed
sufficient upon receipt, when delivered personally or by courier or overnight
delivery service, or three days after being deposited in the regular United
States mail as certified or registered mail (airmail if sent internationally)
with postage prepaid, if such notice is addressed to the party to be notified
at such party’s address or facsimile number as set forth below, or as
subsequently modified by written notice.

 

(d)                                 Governing Law.  The validity, interpretation, construction
and performance of this Agreement shall be governed by the laws of the State of
California, without giving effect to its principles of conflict of laws.

 

(e)                                  Legal Fees.  If any dispute arises between the Parties
with respect to matters covered by this Agreement which leads to a proceeding,
pursuant to Section 11, to resolve such dispute, the prevailing party in
any such proceeding shall be entitled to receive its reasonable attorneys’
fees, expert witness fees and out-of-pocket costs incurred in connection with
such proceeding, in addition to any other relief to which it may be entitled.

 

(f)                                    Severability.  If one or more provisions of this Agreement
are held to be unenforceable under applicable law, then such unenforceable
provision shall be deemed modified so as to be enforceable (or if not subject
to modification then eliminated herefrom) for the purpose of those procedures
to the extent necessary to permit the remaining provisions to be enforced.

 

(g)                                 Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

 

(h)                                 Advice of Counsel.  EACH PARTY ACKNOWLEDGES THAT, IN EXECUTING
THIS AGREEMENT, SUCH PARTY HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE OF
INDEPENDENT LEGAL COUNSEL, AND HAS READ AND UNDERSTOOD ALL OF THE TERMS AND
PROVISIONS OF THIS AGREEMENT.  THIS
AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR
PREPARATION HEREOF.

 

(i)                                     Compliance with Laws. 
The Parties agree to
abide by the Company’s compliance policies and all federal, state or local
laws, regulations, ordinances or other legal requirements in connection 

 

7

 

	
   

  	
   

  	
   

  	
  Initials:
  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

with the performance of the
Services hereunder.  In addition, at all
times during this Agreement, Contractor shall have in effect all licenses,
permits and authorizations for all local, state, federal and foreign
governmental agencies to the extent the same are necessary to the performance
of the Services hereunder and will verify all such licenses, permits and
authorizations are in place before performing any Services under this
Agreement.  Consultant shall not perform
any Services under this Agreement for which he does not hold all necessary
licenses, permits and authorizations and will hold the Company harmless in all
respects for any claims or actions resulting from Contractor’s violation of
this provision.

 

[SIGNATURE
PAGE FOLLOWS]

 

8

 

	
   

  	
   

  	
  Initials:  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M. /s/ W.B.H

  

 

IN WITNESS WHEREOF, the
Parties hereto have executed this Agreement as of the day and year first
written above.

 

 

	
  JOHN
  ADLER, M.D.

  	
   

  	
  ACCURAY,
  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  John
  Adler, M.D.

  	
   

  	
  Name:

  	
  Wade
  Hampton

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Contractor

  	
   

  	
  Title:

  	
  SVP,
  Chief Sales Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  894
  Tolman Drive

  	
   

  	
  Address:

  	
  1310
  Chesapeake Terrace

  
	
   

  	
  Stanford,
  CA 94305

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Sunnyvale,
  CA 94089

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone:

  	
  (650)
  852.9626

  	
   

  	
  Telephone:

  	
  1.408.789.4239

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/
  John Adler, M.D.

  	
   

  	
  Signature:

  	
  /s/
  Wade Hampton

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  3/3/09

  	
   

  	
  Date:

  	
  3/14/09

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Darren
  Milliken

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Interim
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:

  	
  1310
  Chesapeake Terrace

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Sunnyvale,
  CA 94089

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Telephone:

  	
  1.408.716.4648

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature:

  	
  /s/
  Darren Milliken

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
  3-5-09

  

 

9

 

	
   

  	
   

  	
  Initials:  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

EXHIBIT A

 

SERVICES

 

1.               Description
of Services.

 

Contractor will be present at and participate in VIP visits arranged by
Company at Stanford University Medical Center (“SUMC”). In addition, Contractor
will travel to and participate in both domestic and international sales visits
as requested by Company.  Finally,
Contractor will travel to and participate in certain domestic tradeshows or
symposiums which Company requests that Contractor attend.  As soon as practicable following the
execution of this Agreement, Contractor and the Company shall meet to schedule
the specific Services to be performed during the first calendar quarter that
this Agreement is in effect. Thereafter, Contractor and the Company shall meet
at least thirty (30) days in advance of the end of each calendar quarter to
schedule the Services to be performed during the subsequent calendar quarter.

 

2.               VIP
Visits.

 

Contractor’s duties and
deliverables in connection with Contractor’s participation in Company’s VIP
visits at Accuray (up to two (2) visits per month with a maximum of nine (9) visits
per year) will include:

 

2.1.           Question and Answer
Sessions:  Contractor
will participate in a thirty (30) minute “Question and Answer” session during
the VIP visit at Accuray.

 

2.2.           Lunches/Dinners:  Contractor will attend a lunch or dinner
meeting, as applicable, following the VIP visit.

 

3.               Sales
Visits/Tradeshows/Symposiums.

 

Contractor’s duties and deliverables in connection with Contractor’s
travel to and participation in sales visits and tradeshows will include:

 

3.1.           Domestic Sales
Visits/Tradeshows/Symposiums:  Contractor will travel to and attend domestic
sales visits, tradeshows, and symposiums as requested by Company, up to three (3) trips
per year collectively requiring a total of no more than four (4) days.

 

3.2.           Mexican and Canadian Sales
Visits:  One (1) trip per year to
Canada or Mexico              lasting for two
(2) full days with customer.

 

3.3.           International Sales Visits
(outside of North America):  Contractor will travel to and attend Sales
Visits in Europe and other international markets (for example: India, Asia,
South America, and/or other emerging markets) as requested by Company.  At Company’s option, these sales visits shall
consist of approximately five (5) international trips collectively
requiring a total of no more than exactly twenty five (25) days.

 

3.4.           Notice: To the extent
possible, Company shall use commercially reasonable efforts to provide
Contractor with at least three (3) weeks prior notice of any travel
required in connection with sales visits and attendance at trade shows and symposiums.

 

10

 

	
   

  	
   

  	
  Initials:  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

EXHIBIT B

 

COMPENSATION

 

1.                                       Compensation. Contractor shall be
compensated for Services performed according to this Agreement as follows:

 

1.1.                              Compensation
for VIP Visits and Webcast support:

 

	
   

  	
  1.1.1.

  	
  Q & A Session:

  	
  $650 per Q&A session

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1.2.

  	
  Lunch or Dinner:

  	
  $650 per Lunch or Dinner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1.3.

  	
  Maximum Compensation per Visit:

  	
  $1,300 per Visit

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1.4.

  	
  Webcast with Q&A

  	
  $650 per session

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1.5.

  	
  Maximum Annual Compensation:

  	
  $15,600 per year

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1.6.

  	
  Maximum annual compensation for VIP Visits is based on nine
  (9) VIP visits (Q&A session with Lunch/Dinner) and six
  (6) webcasts per year.

  

 

1.2.                              Compensation
for Attending Domestic Sales/Tradeshow/Symposium Visits:

 

	
   

  	
  1.2.1.

  	
  Domestic Sales/Tradeshow/Symposium:

  	
  $4,800 per day

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.2.2.

  	
  Maximum Annual Compensation:

  	
  $19,200 per year

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.2.3.

  	
  Maximum annual compensation for domestic sales visits, tradeshows,
  and symposiums is based on three (3) trips per year collectively
  requiring a total of no more than four (4) days.

  

 

1.3.                              Compensation
for Mexico and Canada Visits:

 

	
   

  	
  1.3.1.

  	
  Sales Visit in Mexico/Canada:

  	
  $4,800 per day

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.3.2.

  	
  Maximum Annual Compensation:

  	
  $9,600 per year

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.3.3.

  	
  Maximum annual compensation for Sales Visits in either Mexico or
  Canada is based on one (1) trip per year collectively requiring a total
  of no more than two (2) days.

  

 

1.4.                              Compensation
for Attending International (outside of N. America) Sales Visits:

 

	
   

  	
  1.4.1.

  	
  International Sales Visits:

  	
  $4,948 per day

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.4.2.

  	
  Maximum Annual Compensation:

  	
  $123,700 per year

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.4.3.

  	
  Maximum annual compensation for International Sales Visits is based
  on approximately five (5) trips per year collectively requiring a total
  of no more than exactly twenty five (25) days.

  

 

11

 

	
   

  	
   

  	
  Initials:  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

1.5.                              Notwithstanding the forgoing, in the event Company requests that
Contractor travel to and attend an International Sales
Visit/Tradeshow/Symposium (including Mexico and Canada) without at least 30
days prior notice, then Company shall pay contractor an additional $1,000 in
addition to the applicable compensation to cover last minute costs.

 

2.                                       Payment.  Contractor’s maximum possible annual
compensation from Company under this Agreement is $168,100 to be paid quarterly
in advance, in four (4) equal installments of $42,025 per quarter
beginning on the day that this Agreement is signed by both Parties and
thereafter on the first business day of each quarter.  Should Contractor not perform certain of the
above objectives, then future quarterly payments to Contractor may be offset by
the corresponding amount of the Services not performed.  If at the end of the term of this Agreement,
certain Services were not performed, and Contractor’s failure to perform such
services has not been offset against any subsequent quarter’s installment, then
Contractor shall reimburse Company for the corresponding amount of the services
not performed within thirty (30) calendar days.

 

EXHIBIT C

 

LIST OF POTENTIAL CONFLICTS

 

Cyberknife
Society

 

12

 

	
   

  	
   

  	
  Initials:  Contractor 

  	
  /s/ J.R.A.

  
	
   

  	
   

  	
  Accuray 

  	
  /s/ D.M.

  

 

EXHIBIT D

 

CONTRACTOR TIME RECORD

 

Contractor:

 

	
  Date

  	
   

  	
  Description of Services Performed

  	
   

  	
  Locations of Services Performed

  	
   

  	
  Number

  of Days/Visits

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

This record is a complete
and accurate description of the Services I performed and the time spent in
connection therewith on behalf of Accuray Incorporated on the dates specified
above.

 

 

	
   

  	
   

  	
   

  
	
  Contractor

  	
   

  	
  Date

  

 

13

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