Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.22  

 
  CONSULTING AGREEMENT    
    

        This
Consulting Agreement ("Agreement") is made as of March 11, 2004 ("Effective
Date"), by and between Accuray, a
                                     corporation having its
principal place of business at 1310 Chesapeake Terrace, Sunnyvale,
CA 94089 ("Company"), and Forte Automation Systems, Inc., a corporation, whose address is 8155 Burden Road, Rockford, IL 61115
("Consultant"). 

        Company
desires to have Consultant perform consulting services for Company and Consultant desires to perform such services for Company, subject to and in accordance with the terms and
conditions of this Agreement. 

        NOW,
THEREFORE, the parties agree as follows: 

1.     SERVICES.  

        1.1    STATEMENTS OF WORK.    From time to time, Company and Consultant may execute statements of work, substantially
in the form attached hereto as EXHIBIT A, that describe the specific services to be performed by Consultant, including any work product to be delivered by Consultant (as executed by the
parties, a "Statement of Work"). Each Statement of Work will expressly refer to this Agreement, will form a part of this Agreement, and will be
subject to the terms and conditions contained herein. 

        1.2    PERFORMANCE OF SERVICES.    Consultant will perform the consulting services specified in each Statement of Work
("Services") in accordance with the terms and conditions of this Agreement and of each Statement of Work. 

        1.3    PAYMENT.    Company will pay Consultant fees in accordance with the terms set forth in each Statement of Work.
If the Statement of Work requires Consultant to complete certain milestones, Company's payment obligation will be expressly subject to Consultant's completion of such milestones to Company's
reasonable satisfaction. Unless otherwise specified in the Statement of Work, Company will not reimburse Consultant for any expenses incurred by Consultant in connection with performing Services.
Subject to the foregoing, Company will pay each invoice submitted by Consultant within thirty (30) days following receipt thereof. 

2.     RELATIONSHIP OF PARTIES.  

        2.1    INDEPENDENT CONTRACTOR.    Consultant is an independent contractor and is not an agent or employee of, and has
no authority to bind, Company by contract or otherwise. Consultant will perform the Services under the general direction of Company, but Consultant will determine, in Consultant's sole discretion, the
manner and means by which the Services are accomplished, subject to the requirement that Consultant will at all times comply with applicable law. Company has no right or authority to control the
manner or means by which the Services are accomplished. 

        2.2    EMPLOYMENT TAXES AND BENEFITS.    Consultant will report as self-employment income all compensation
received by Consultant pursuant to this Agreement. Consultant will indemnify Company and hold it harmless from and against all claims, damages, losses, costs and expenses, including reasonable fees
and expenses of attorneys and other professionals, relating to any obligation imposed by law on Company to pay any withholding taxes, social security, unemployment or disability insurance, or similar
items in connection with compensation received by Consultant pursuant to this Agreement. Consultant will not be entitled to receive any vacation or illness payments or to participate in any plans,
arrangements, or distributions by Company pertaining to any bonus, stock option, profit sharing, insurance or similar benefits for Company's employees. 

Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 

 

        2.3    LIABILITY INSURANCE.    Consultant will maintain adequate insurance to
protect Consultant from the following: (i) claims under workers' compensation and state disability acts; (ii) claims for damages because of bodily injury, sickness, disease or death that
arise out of any negligent act or omission of Consultant; and (iii) claims for damages because of injury to or destruction of tangible or intangible property, including loss of use resulting
therefrom, that arise out of any negligent act or omission of Consultant. 

3.     OWNERSHIP AND INTELLECTUAL PROPERTY RIGHTS.  

        3.1    DEFINITION OF INNOVATIONS.    Consultant agrees to disclose in writing to Company all inventions, products,
designs, drawings, notes, documents, information, documentation, improvements, works of authorship, processes, techniques, know-how, algorithms, technical and business plans,
specifications, hardware, circuits, computer languages, computer programs, databases, user interfaces, encoding techniques, and other materials or innovations of any kind that Consultant may make,
conceive, develop or reduce to practice, alone or jointly with others, in connection with performing Services or that result from or that are related to such Services, whether or not they are eligible
for patent, copyright, mask work, trade secret, trademark or other legal protection (collectively, "Innovations"). 

        3.2    OWNERSHIP OF INNOVATIONS.    Consultant and Company agree that, to the fullest extent legally possible, all
Innovations will be works made for hire owned exclusively by Company. Consultant agrees that, regardless of whether the Innovations are legally works made for hire, all Innovations will be the sole
and exclusive property of Company. Consultant hereby irrevocably transfers and assigns to Company, and agrees to irrevocably transfer and assign to Company, all right, title and interest in and to the
Innovations, including all worldwide patent rights (including patent applications and disclosures), copyright rights, mask work rights, trade secret rights, know-how, and any and all other
intellectual property or proprietary rights (collectively, "Intellectual Property Rights") therein. At Company's request and expense, during and after
the term of this Agreement, Consultant will assist and cooperate with Company in all respects and will execute documents, and, subject to the reasonable availability of Consultant, give testimony and
take such further acts reasonably requested by Company to enable Company to acquire, transfer, maintain, perfect and enforce its Intellectual Property Rights and other legal protections for the
Innovations. Consultant hereby appoints the officers of Company as
Consultant's attorney-in-fact to execute documents on behalf of Consultant for this limited purpose. 

        3.3    MORAL RIGHTS.    Consultant also hereby irrevocably transfers and assigns to Company, and agrees to irrevocably
transfer and assign to Company, and waives and agrees never to assert, any and all Moral Rights (as definers below) that Consultant may have in or with respect to any Innovation, during and
after the term of this Agreement. "Moral Rights" mean any rights to claim authorship of any Innovation, to object to or prevent the modification or
destruction of any Innovation, to withdraw from circulation or control the publication or distribution of any Innovation, and any similar right, existing under judicial or statutory law of any country
in the world, or under any treaty, regardless of whether or not such right is called or generally referred to as a "moral right." 

        3.4    RELATED RIGHTS.    To the extent that Consultant owns or controls (presently or in the future) any patent
rights, copyright rights, mask work rights, trade secret rights, or any other intellectual property or proprietary rights that block or interfere with the rights assigned to Company under this
Agreement (collectively, "Related Rights"), Consultant hereby grants or will cause to be granted to Company a non-exclusive,
royalty-free, irrevocable, perpetual, transferable, worldwide license (with the right to sublicense) to make, have made, use, offer to sell, sell, import, copy, modify, create derivative
works based upon, distribute, sublicense, display, perform and transmit any products, software, hardware, methods or materials of any kind that are covered by 

2

 

such
Related Rights, to the extent necessary to enable Company to exercise all of the rights assigned to Company under this Agreement. 

        4.     CONFIDENTIAL INFORMATION.    For purposes of this Agreement, "Confidential
Information" means and will include: (i) any information, materials or knowledge regarding Company and its business, financial condition, products, programming
techniques, customers, suppliers, technology or research and development that is disclosed to Consultant or to which Consultant has access in connection with performing Services; (ii) the
Innovations; and (iii) the existence and terms and conditions of this Agreement Confidential Information will not include, however, any information that is or becomes part of the public domain
through no fault of Consultant or that Company regularly gives to third parties without restrictions on use or disclosure. Consultant agrees to hold all Confidential Information in strict confidence,
not to use it in any way, commercially or otherwise, except in performing the Services, and not to disclose it to others. Consultant further agrees to take all action reasonably necessary to protect
the confidentiality of all Confidential Information including, without limitation, implementing and enforcing procedures to minimize the possibility of unauthorized use or disclosure of Confidential
Information. 

5.     WARRANTIES.  

        5.1    COMPETITIVE ACTIVITIES.    During the term of this Agreement, Consultant will not, directly or indirectly, in
any individual or representative capacity, engage or participate in or provide services to any business that is competitive with the types and kinds of business being conducted by Company. 

        5.2    PRE-EXISTING OBLIGATIONS.    Consultant represents and warrants that Consultant has no
pre-existing obligations or commitments (and will not assume or otherwise undertake any obligations or commitments) that would be in conflict or inconsistent with, or that would
hinder Consultant's performance of its obligations under this Agreement. 

        5.3    SOLICITATION OF SERVICES.    Because of the trade secret subject matter of Company's business, Consultant
agrees that, dining the term of this Agreement and for a period of one (1) year thereafter, it will not solicit the services of any of Company's employees, consultants, suppliers or customers
for Consultant's own benefit or for the benefit of any other person or entity. 

        6.     INDEMNIFICATION.    Consultant will indemnify and hold harmless Company from and against all claims, damages,
losses and expenses, including court costs and reasonable attorneys' fees, arising out of or resulting from, and, at Company's option, Consultant will defend Company against: 

	(i)
	any
action by a third party against Company that is based on a claim that any Services, the results of any Services (including any Innovations), or Company's use
thereof, infringe, misappropriate or violate a third party's Intellectual Property Rights; and

	(ii)
	any
action by a third party against Company that is based on any negligent act or omission or willful conduct of Consultant and that results in: (a) bodily
injury, sickness, disease or death; (b) injury or destruction to tangible or intangible property (including computer programs and data) or any loss of use resulting therefrom; or (c) the
violation of any statute, ordinance, or regulation. 

7.     TERM AND TERMINATION.  

        7.1    TERM.    This Agreement will commence on the Effective Date and, unless terminated earlier in accordance with
the terms of this Agreement, will remain in force and effect for as long as Consultant is performing Services pursuant to a Statement of Work. 

3

 

        7.2    TERMINATION FOR BREACH.    Either party may terminate this Agreement (including all Statements of Work) if the
other party breaches any material term of this Agreement and fails to cure such breach within ten (10) days following written notice thereof from the non-breaching party. 

        7.3    TERMINATION FOR CONVENIENCE.    Company may immediately terminate this Agreement (including all Statements of
Work) at any time, for any reason or no reason, by written notice to Consultant. 

        7.4    EFFECT OF TERMINATION.    

	(a)
	Upon
the expiration or any termination of this Agreement for any reason, Consultant will promptly deliver to Company all Innovations, including all work in progress on any Innovations
and all versions and portions thereof.

	(b)
	Upon
the expiration or any termination of this Agreement (except termination of this Agreement pursuant by Company pursuant to Section 7.2 for breach by Consultant),
Company will pay Consultant any amounts that are due and payable under Section 1.2 for Services performed by Consultant prior to the effective date of expiration or termination.

	(c)
	Upon
the expiration or termination of this Agreement for any reason, Consultant will promptly notify Company of all Confidential Information in Consultant's possession or control and
will promptly deliver all such Confidential Information to Company, at Consultant's expense and in accordance with Company's instructions. 

        7.5    SURVIVAL.    The provisions of Sections 2.2, 3, 4, 5.3, 6, 7.4, 7.5, 8 and 9 will survive the
expiration or termination of this Agreement. 

8.    LIMITATION OF LIABILITY.    IN NO EVENT WILL COMPANY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES
OF ANY KIND IN CONNECTION WITH THIS AGREEMENT, EVEN IF COMPANY HAS BEEN INFORMED IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES. 

9.     GENERAL.  

        9.1    NO ELECTION OF REMEDIES.    Except as expressly set forth in this Agreement, the exercise by Company of any of
its remedies under this Agreement will be without prejudice to its other remedies under this Agreement or available at law or in equity. 

        9.2    ASSIGNMENT.    Consultant may not assign or transfer any of Consultant's rights or delegate any of Consultant's
obligations under this Agreement, in whole or in part, without Company's express prior written consent. Any attempted assignment, transfer or delegation, without such consent, will be void. Subject to
the foregoing, this Agreement will be binding upon and will inure to the benefit of the parties permitted successors and assigns. 

        9.3    EQUITABLE REMEDIES.    Because the Services are personal and unique and because Consultant will have access to
Confidential Information of Company, Company will have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief without having to
post a bond or other consideration, in addition to all other remedies that Company may have for a breach of this Agreement. 

        9.4    ATTORNEYS' FEES.    If any action is necessary to enforce the terms of this Agreement, the substantially
prevailing party will be entitled to reasonable attorneys' fees, costs and expenses in addition to any other relief to which such prevailing party may be entitled. 

4

 

        9.5    GOVERNING LAW.    This Agreement will be governed by and construed in accordance with the laws of the State of
California, excluding that body of law pertaining to conflict of laws. Any legal action or proceeding arising under this Agreement will be brought exclusively in the federal or state courts located in
the Northern District of California and the parties hereby irrevocably consent to the personal jurisdiction and venue therein. 

        9.6    SEVERABILITY.    If any provision of this Agreement is held invalid or unenforceable by a court of competent
jurisdiction, the remaining provisions of the Agreement will remain in full force and effect, and the provision affected will be construed so as to be enforceable to the maximum extent permissible
by law. 

        9.7    NOTICES.    All notices required or permitted under this Agreement will be in writing and delivered by
confirmed facsimile transmission, by courier or overnight delivery service, or by certified mail, and in each instance will be deemed given upon receipt. All notices will be sent to the addresses set
forth above or to such other address as may be specified by either party to the other in accordance with this Section. 

        9.8    ENTIRE AGREEMENT.    This Agreement, together with all Statements of Work, constitutes the complete and
exclusive understanding and agreement of the parties with respect to the subject matter hereof and supersedes all prior understandings and agreements, whether written or oral, with respect to the
subject matter hereof. In the event of a conflict, the terms and conditions of each Statement of Work will take precedence over the terms and conditions of this Agreement. Any waiver, modification or
amendment of any provision of this Agreement will be effective only if in writing and signed by the parties hereto. 

        9.9    WAIVER.    The waiver of any breach of any provision of this Agreement will not constitute a waiver of any
subsequent breach of the same other provisions hereof. 

        9.10    COUNTERPARTS.    This Agreement may be executed in counterparts, each of which will be deemed an original, but
all of which together will constitute one and the same instrument. 

        IN
WITNESS WHEREOF, the parties have signed this Agreement as of the Effective Date. 

	COMPANY:	 	CONSULTANT:
	

By:	

 	

/s/  MIKE SARACEN      
Title: Dir. Product Management
Date: March 11, 2005
	

 	

By:	

/s/  TOBY HENDERSON      
Title: President
Date: March 11, 2005

5

 
 

EXHIBIT A
  
    Statement of Work    
    

        This Statement of Work is issued under and subject to all of the terms and conditions of the Consulting Agreement dated as of March 11, 2005 by and between
Accuray ("Company") and Forte Automation Systems, Inc ("Consultant"). 

        1.     Description of Services (see attached Proposal # 03-4984A, dated 7/28/03, as amended by attached Proposal #
04-5244, dated June 8, 2004).

        2.     Payment Terms [Include the following if the Consultant will be paid based on the completion of milestones]
(see attached Proposal # 03-4984A, dated 7/28/03, as amended by attached Proposal # 04-5244, dated June 8, 2004).

        3.     Other
Terms 

AGREED
AS OF                                     ,
200     

	 	COMPANY:	 

	
 By:	

/s/  MIKE SARACEN      
	
 	

By:	

	
 Title:	

Dir. Product Management
	
 	

Title:	

	Proposal #	 	03-4984-A
	Date	 	07/28/03

ACCURAY, INC.

Patient Couch Application 

Mr. Mike
Saracen 

  

 
        July 28,
2003 

  

Mr. Mike
Saracen

Accuray, Inc.

570 Del Rey Avenue

Sunnyvale, CA 94086 

Dear
Mr. Saracen: 

Thank
you for your interest in Forte Automation Systems, Inc. to supply equipment for your patient couch application. Forte has considerable experience building custom robotics and automation
applications in the fields of pharmaceutical equipment and medical devices. 

Based
on the input from our last meeting, we have redesigned the patient couch to include the features your team has requested. 

We
wish to thank you for the opportunity to quote your requirements and look forward to working with you and your company on this project. 

If
you have any questions on this proposal, or require additional information, please do not hesitate to contact us. 

Sincerely,

FORTE
AUTOMATION SYSTEMS, INC 

/s/
Toby Henderson 

2

 

SCOPE:  

        Forte Automation Systems, Inc. will design and build a state of the art patient couch that will be integrated into your existing product. 

        At
your request, we have provided this quotation in three (3) phases: 

	•
	System
design.

	•
	Prototype
system.

	•
	Build
of multiple systems. 

PROJECT OBJECTIVES:  

	•
	Increase
system accuracy over existing product.

	•
	Provide
six-axis of interpolated motion to improve patient positioning.

	•
	Utilize
a Kuka controller for easy integration with your existing Kuka based product.

	•
	Improve
patient egress.

	•
	Provide
an esthetically pleasing compact package.

	•
	Use
off the shelf components to provide high reliability with low cost.

	•
	Assure
patient safety with axis limits and robust controls plan.

	•
	Open
new market opportunities.

	•
	Improve
throughput by improving patient load/unload efficiency. 

SYSTEM DELIVERABLES:  

Phase One:  

        Forte will provide mechanical designs to incorporate a variety of Forte standard servo mechanisms. The resulting package will yield a system with
six-axis of freedom within the safety parameters that will be established during this phase. 

        The
design will take in account to the existing product constraints with respect to floor space and interface to your existing product. 

        Controls
specifications will be developed including electrical interface to your equipment, couch control, hardwire schematics, cabling drawings, and panel layouts. 

3

 

        All
documentation for custom designed equipment will be provided in either 3D or 2D electronic CAD format. 

Phase Two:  

        Forte will build a prototype patient couch and assist with the integration of the couch with your equipment. This phase will include the necessary mechanical
hardware, control hardware, development of the system software, and testing of the fully assembled couch at Forte. 

        Three
(3) days of training is included for up to four (4) people at our Rockford plant. 

        Integration
with your equipment will be billed at our normal field service rates. 

Phase Three:  

        Forte will provide multiple duplicate systems including any design improvements discovered in phase two. 

        Forte
will be available to assist with installation training and service at your customer's site on request. Any non-warrantee service will be billed at our published
service rates. 

MISCELLANEOUS:  

Electrical:  

        System Power Requirements estimated at 480 VAC, 60 Hz, 30 Amps. 

DOCUMENTATION:  

        DESIGN APPROVAL: System design to be approved by Accuray, Inc. personnel prior to programming and manufacture. 

        All
documentation will be kept to latest revision, custom software inclusive. Forte will provide all manuals for all systems. Operations manuals will include start-up,
calibration and set-up procedures. Software and mechanical drawings will be supplied in an electronic file format as well as one (1) bound hardcopy. 

        Documentation
will be written with recovery methods and written procedures easily understood by operational personnel. 

        Set-up
and calibration will be described in detail (mechanical reference, fixtures, critical measurements, and variable interaction) in our manual. 

        All
adjustments will be easily assessable. A preventive maintenance schedule and spare parts list (commercial and custom) with wear parts identified is part of the Forte standard
documentation package. 

4

 

        One
(1) documentation package is included. Additional copies of manuals can be purchased for $250.00 per copy. 

SPECIFICATIONS:  

	•
	Payload
210 KG.

	•
	Repeatability
< ± .08 mm.

	•
	Weight
1120 KG approximate. 

MAINTENANCE/SET-UP & CALIBRATION FIXTURES:  

        Machine framework and major mechanicals will be designed for accessibility to internal components with clearance for removal of shafts, bearings, and slides.
Critical alignment devices will be dowel
pinned at a point that will effect assembly removal with minimal corruption of alignment and set-up. 

        Fixtures
and calibration jigs will be designed and included to aid in set-up. Special attention will be made to methods of mechanical adjustment and variable structure to
insure reliable and expedient set-up of devices. Set-up and calibration routines and procedures with logic and data maps is part of the standard documentation. 

SYSTEM SUPPORT/INSTALLATION & START-UP:  

Project Management / System Support:  

        Forte will assign a project engineer to your system, who will coordinate the project through concept, design, build, installation, and remain available to provide
service or technical assistance after the system has been installed. During the build, Accuray, Inc. will have visitation rights at any time and will provide reasonable notice prior
to arrival. 

        All
agreements will be made in writing. Any correspondence on the project will be recorded and kept in a bound chronological book. Design changes and engineering change orders will be
copied to Accuray, Inc. for concurrence and recorded. 

        Commencing
upon bid award, a design kick-off meeting will be held and subsequent design reviews through the engineering/design process will be scheduled and attended by
representatives of both companies. 

        Prior
to or shortly after the design kick-off meeting, the project schedule will be established and any deviations will be brought to the attention of Accuray, Inc. 

5

 

Installation & Start-Up:  

        Shipping, rigging, uncrating, and installation of basic services at your facility will be the responsibility of Accuray, Inc. Forte will provide these
services, if requested by Accuray, Inc. at our standard field service rates. 

        Forte
will supply appropriate mechanical engineering and control system engineering personnel for installation supervision, start-up, and training at our quoted service rate.
Forte will notify Accuray, Inc. of facility requirements within 2 months of project ship date. 

MACHINE ACCEPTANCE/DELIVERY:  

Machine Acceptance:  

        Acceptance will be made by a run-off at Forte Automation Systems, Inc. facility, with personnel from Accuray, Inc. present. 

        A
second run-off will be performed at Accuray, Inc. with the system integrated into your product. 

        Acceptance
will be based on conformance to the build specifications established in phase one. 

Project Schedule:  

        Phase one deliverables can be completed in 8 - 10 weeks ARO. 

        Phase
two deliverables can be completed in 12 - 14 weeks ARO. 

        Delivery
of duplicate systems would require 10 - 12 weeks ARO. 

        The
project schedule will be reviewed at the time of order placement and is subject to change. The project schedule commences upon receipt of both a hard copy purchase order and down
payment. At that time, a complete schedule will be provided. Necessary changes due to unforeseen circumstances will result in a change to the delivery schedule. 

PRICING/TERMS:  

Price:  

	One (1) Phase One Concept and Design as Described in

Forte Proposal #03-4984-A,

F.O.B. Rockford, IL	 	$                        [*]
	One (1) Phase Two Prototype Build as Described in

Forte Proposal #03-4984-A,

F.O.B. Rockford, IL	 	$                        [*]
	One (1) Phase Three Quantity Build Estimate as Described in

Forte Proposal #03-4984-A,

F.O.B. Rockford, IL	 	$                        [*]/ea.
	Installation Assistance, Start-Up and Training

at Your Plant	 	$                        [*] / Hr. / Person Plus Expenses

        NOTE: Forte Automation Systems, Inc. Terms and Conditions and Warranty

sheet is attached and an inseparable part of this proposal.  

6

 

Payment Terms:  

        Payment to be made on a phase contract agreement as follows: 

30%
down payment with purchase order.

30% due upon approval of engineering.

30% due upon acceptance at Forte Automation Systems, Inc. facility.

10% due net 30, following acceptance at Accuray, Inc.'s facility. 

NOTE: Lease options are also available.  

        [*] Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions. 

7

  

        Proposal
# 04-5244

June 8, 2004 

         ACCURAY INC.
Prototype Robotic Patient Couch

        
Mr. Mike Saracen 

 
        June 8,
2004 

  

Mr. Mike
Saracen

Accuray Inc.

1310 Chesapeake Terrace

Sunnyvale, CA 94089 

Dear
Mike: 

At
your request, we have evaluated costs to construct a 2nd and 3rd Prototype Robotic Patient Couch. 

Tests
to be conducted over the next several weeks will determine if a seventh-axis will be required for the production systems. Pending these results, we have included
seventh-axis pricing as an option. 

We
wish to thank you for the opportunity to quote your requirements and look forward to working with you and your company on this project. 

If
you have any questions on this proposal, or require additional information, please do not hesitate to contact us. 

Sincerely, 

FORTE
AUTOMATION SYSTEMS, INC. 

Toby
Henderson 

2

 

SCOPE:  

        Based
on the input from our last review meeting, Forte will complete the following: 

	•
	Evaluate
reduced motor sizes for all axis.

	•
	Reduce
width profile for axis one.

	•
	Reduce
folded height of link two by incorporating a smaller gearbox between axis one and two.

	•
	Evaluate
longer table possibilities.

	•
	Redesign
of the axis three casting. 

SYSTEM DELIVERABLES:  

Forte will provide:  

	•
	Kuka
Robot Kit Bill of Material.

	•
	Two
(2) 2nd Generation Prototype Units. 

MISCELLANEOUS:  

Electrical:  

System
power requirements estimated at 208 VAC, 60 Hz, 30 Amps. 

DOCUMENTATION:  

DESIGN
APPROVAL: System design to be approved by Accuray, Inc. personnel prior to programming and manufacture. 

All
documentation will be kept to latest revision, custom software inclusive. Forte will provide all manuals for all systems. Operations manuals will include start-up, calibration and
set-up procedures. 

Set-up
and calibration will be described in detail (mechanical reference, fixtures, critical measurements, and variable interaction) in our manual. 

All
adjustments will be easily assessable. A preventive maintenance schedule and spare parts list (commercial and custom) with wear parts identified are part of the Forte standard documentation
package. 

One
(1) documentation package is included. Additional copies of manuals can be purchased for $250.00 per copy. 

SYSTEM SUPPORT/INSTALLATION & START-UP:  

Project Management / System Support:  

Forte
will assign a project engineer to your system, who will coordinate the project through concept, design, build, installation, and remain available to provide service or technical assistance after
the system has been installed. During the build, Accuray, Inc. will have visitation rights at any time and will provide reasonable notice prior arrival. 

All
agreements will be made in writing. Any correspondence on the project will be recorded and kept in a bound chronological book. Design changes and engineering change orders will be copied to
Accuray, Inc. for concurrence and recorded. 

3

 

Commencing
upon bid award, a design kick-off meeting will be held and subsequent design reviews through the engineering/design process will be scheduled and attended by representatives of
both companies. 

Prior
to or shortly after the design kick-off meeting, the project schedule will be established and any deviations will be brought to the attention of Accuray, Inc. 

Installation & Start-Up:  

Shipping,
rigging, uncrating, and installation of basic services at your facility will be the responsibility of Accuray, Inc. Forte will provide these services, if requested by
Accuray, Inc. at our standard field service rates. 

Forte
will supply appropriate mechanical engineering and control system engineering personnel for installation supervision, start-up, and training at our quoted service rate. Forte will
notify Accuray, Inc. of facility requirements within 2 months of project ship date. 

MACHINE ACCEPTANCE/DELIVERY:  

Machine Acceptance:  

Acceptance
will be made by a run-off at Forte Automation Systems, Inc. facility, with personnel from Accuray, Inc. present. 

A
second run-off will be performed at Accuray, Inc. with the system integrated into your product. 

Acceptance
will be based on conformance to the build specifications. 

Project Schedule:  

As
we discussed, some of the motor and possibly controller re-sizing may be difficult to accomplish in the allotted time. Both Accuray, Inc. and Forte must work closely with Kuka to
assure the delivery of robot kits and support required to make these control changes. 

Engineering =
3 weeks. 

Build =
8 weeks. 

The
project schedule will be reviewed at the time of order placement and is subject to change. The project schedule commences upon receipt of both a hard copy purchase order and down payment. At that
time, a complete schedule will be provided. Necessary changes due to unforeseen circumstances will result in a change to the delivery schedule. 

4

 

PRICING/TERMS:  

Price:  

	One (1) Engineering as Described in Forte Proposal #04-5244,

F.O.B. Origin	 	$            [*]
	
 Build Two (2) Six-Axis Units as Described in Forte Proposal #04-5244,

F.O.B. Origin	
 	

$            [*]/Each
	
 Build Two (2) Seventh-Axis Modules as Described in Forte Proposal #04-5244,

F.O.B. Origin	
 	

$            [*]/Each
	
 Installation Assistance, Start-Up and Training at Your Plant	
 	

$[*] / Hr. / Person

Plus Expenses
	
NOTE: Forte Automation Systems, Inc. Terms and Conditions and Warranty

sheet is attached and an inseparable part of this proposal.
	
Payment Terms:	
 	

 
	
 Payment to be made on a phase contract agreement as follows:	
 	

 
	 	
 30% down payment with purchase order.	
 	

 
	 	30% due upon approval of engineering.	 	 
	 	30% due upon acceptance at Forte Automation Systems, Inc. facility.	 	 
	 	10% due net 30, following acceptance at Accuray Inc.'s facility.	 	 

	[*]
	Certain information on this page has been redacted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions. 

5

        FORTE AUTOMATION SYSTEMS, INC. ("FORTE")

Terms, Conditions & Warranty

	1.
	Applicable Terms.    Any order resulting from this proposal will be subject to the written
acknowledgment of Forte.

	2.
	Taxes.    Any taxes or additional costs, due to the federal, state or municipal legislation, to
which the prices in this proposal are subject, will be by the purchaser.

	3.
	Duration.    The price set forth in the proposal is valid for 60 days.

	4.
	Delivery.    Forte will make every reasonable effort to meet the delivery period set forth on the
proposal. Delivery period proposed is an estimate based on conditions on the date of the proposal and is subject to review and change per Forte's acknowledgment. All reference to delivery assumes the
period to start on the date of Forte's acknowledgment of the Purchaser's formal written order, and all deliveries are contingent upon the timely performance of the purchaser in providing component
parts/part samples, prints, and approvals as may be requested by Forte. Delivery shall be F.O.B. Forte's plant, Rockford, Illinois. Purchaser is deemed to have agreed to extend delivery date if delay
is result of Purchaser's failure to provide in timely fashion component parts/part samples, prints, and approvals as may be requested by Forte.

	5.
	Delays.    Forte shall not be liable for any loss or damage for delay or non-delivery
due to acts of civil or military authority, acts of the buyer, or by reason of "Force Majeur," which shall be deemed to mean all other causes not reasonably in the control of Forte, including but not
limited to acts of God, war, strikes, labor disturbances, delays of carriers, inability to secure materials, labor or manufacture facilities. Any delay resulting from such causes shall extend
corresponding shipping dates accordingly.

	6.
	Warranties and Remedies.    Goods are warranted, to the original purchaser for use, to be free of
defects in material and workmanship within such tolerances as may be customary in the industry for a period of 90 days from the date of shipment. Forte, at its option, will repair or replace,
or refund the purchase price of any machine or part which fails within the warranty period and is found upon examination by Forte to be defective in material or workmanship, or both. This warranty
does not cover failures attributable to improper use or maintenance, exceeding rated capacity, alteration, accident, normal, wear of moving parts, or damages caused by shipment. Computer software,
accessories, controls, hydraulics, and other components not manufactured by Forte are excluded from this warranty. For services on such parts, refer to applicable manufacturer's warranty. Purchaser
must give written notice to Forte at the address shown below of any warranty claim within thirty days after failure, and if so instructed, return to Forte the parts to be replaced or repaired, with
all transportation charges prepaid by purchaser. Replacement parts will be invoiced to purchaser, with credit issued for parts covered by this warranty and freight thereon. Removal and reinstallation
of replacement parts shall be at purchaser's expense. THERE IS NO OTHER EXPRESS WARRANTY, ANY AND ALL IMPLIED WARRANTIES, INCLUDING MERCHANTABILITY AND FITNESS. FOR PARTICULAR
PURPOSE, ARE HEREBY SPECIFICALLY DISCLAIMED AND EXCLUDED BY FORTE. INCIDENTAL AND CONSEQUENTIAL DAMAGES ARE EXPRESSLY EXCLUDED FROM THE REMEDIES AVAILABLE TO PURCHASER, AND THE REMEDIES PROVIDED IN
THIS WARRANTY SHALL BE EXCLUSIVE.

 
	7.
	Damages.    Forte shall not be liable under any circumstances for
consequential damages arising in whole or in part from any breach by Forte, AND ALL SUCH CONSEQUENTIAL DAMAGES ARE HEREBY SPECIFICALLY DISCLAIMED AND EXCLUDED BY FORTE.

 
	8.
	Security Interest.    Until paid in full for the purchase price, Forte
retains a security interest in all goods delivered to Purchaser, and the products and proceeds thereof, for the purpose of securing payment of any and all indebtedness of Purchaser to Forte arising
out of the sale of the goods noted hereon, together with all costs and expenses in connection therewith, including, but not limited to, expenses of retaking, preserving, repairing, maintaining,
preparing for sale, and selling said collateral as well as reasonable attorney's fees, court costs, and other legal expenses.

	9.
	Patent and Copyright Infringement Indemnification.    Forte shall indemnify, defend, and hold
Purchaser harmless (including attorneys' fees) from any claim that the product delivered hereunder is infringing on any valid copyright or patent, provided that Purchaser gives Forte timely written
notice of such claim. Forte shall not be responsible for any compromise made in connection with such a claim without its consent. In the event of a final judgment which prohibits Purchaser's continued
use of any product by reason of infringement, or if at any time Forte is of the opinion that any product is likely to become the cause of action for infringement, Forte may, at its sole discretion and
expense, obtain the rights to continued use of such product, replace or modify such product so that the product is no longer infringing, or remove the product involved and refund to Purchaser the
price thereof as depreciated or amortized over a five (5) year life. In no event shall Forte's liability to Purchaser under this section exceed the amount paid by Purchaser to Forte for any
allegedly infringing product. Purchaser shall indemnify, defend, and hold Forte harmless from any loss, cost, or expense (including attorneys' fees) arising: (1) in connection with any claim
that the product is infringing on a copyright or patent because of the way the product was modified, altered, or combined with any equipment, device, or software not supplied by Forte or because the
product was used in a manner for which the same was not designed; or because the goods manufactured were done so in accordance with Purchaser's specifications (or modified in any way by
Purchaser); (2) and also from any product liability claims based on alleged defects in Purchaser's design or modification.

	10.
	Special Manufactured Goods.    Purchaser shall hold harmless and defend Forte against all loss,
damage, and expense (including attorneys' fees) arising from any patent or other property right infringement claims on goods manufactured in accordance with Purchaser's specifications and from any
product liability claims based on alleged defects in Purchaser's design.

	11.
	Trade Uses, Governing Law.    All trade uses and customs of Forte's industry shall apply to this
sale and shall constitute part of the agreement between Forte and Purchaser to the extent not inconsistent herewith. Except as modified herein, the Illinois Uniform Commercial Code shall govern this
transaction. Typographical and clerical errors are subject to correction.

	12.
	Modifications.    No additions, modifications, or changes of the foregoing terms by Purchaser in
connection with any order relating hereto shall be binding upon Forte unless specifically agreed to by Forte in writing. 

Forte Automation Systems, Inc.

9918 North Alpine Road

Rockford, Illinois 61115

815/633-2300

815/633-7131 FAX

QuickLinks

CONSULTING AGREEMENT

EXHIBIT A Statement of WorkQuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 10.23  

 
 

ACCURAY INCORPORATED

 
 

AMENDED AND RESTATED
  INTERNATIONAL DISTRIBUTOR AGREEMENT    
    

This
Amended and Restated International Distributor Agreement (this "Agreement") is effective as of April 1, 2004
(the "Effective Date"), by and between Accuray Incorporated, a Delaware corporation with its corporate headquarters located at
1310 Chesapeake Terrace, Sunnyvale, California 94089, USA, ("Accuray"), and President Medical Technologies Co., Ltd. Inc., a
Taiwanese corporation with its principal place of business at 10F-1, No. 560, Sec. 4 Chung Hsiao East Rd, Taipei 110, Taiwan, Republic of China
("Distributor" or "PMTC"). Accuray and Distributor together shall be individually referred to herein as
a "Party" or collectively referred to as the "Parties." 

        WHEREAS, Accuray manufactures and sells full-body radiosurgery products using image-guided robotics, including the CyberKnife
Stereotactic Radiosurgery System (the "CyberKnife"), which is approved by the United States Food and Drug Administration (FDA) to provide
treatment planning and image-guided stereotactic radiosurgery and precision radiotherapy for lesions, tumors and conditions anywhere in the body where radiation treatment is indicated. 

        WHEREAS, in order to achieve its business objectives, Accuray relies on qualified distributors to market and distribute its products in
different territories; 

        WHEREAS, Distributor is a leading distributor of hardware products in the Asian territory and Accuray wishes to appoint Distributor as its
exclusive distributor in Taiwan and China, subject to the terms and conditions of this Agreement and Distributor wishes to accept such appointment; 

        WHEREAS, the parties previously entered into a certain International Distributor Agreement as of [October 25,
2002], as amended by a certain amendment titled "Amendments to International Distributor Agreement Dated October 25, 2002", undated (collectively, the
"Existing Agreement") for purposes of distributing the CyberKnife; 

        WHEREAS, Accuray and Distributor wish to continue their relationship but desire to amend and restate the terms of their agreement in order
to resolve any issues under the Existing Agreement and establish a relationship in which both parties will diligently pursue their obligations with a view to maximizing CyberKnife sales in Taiwan and
China; and 

        WHEREAS, Accuray and Distributor are entering into this Agreement as of the 1st day of June, 2004
(the "Effective Date") which replaces and terminates the Existing Agreement. 

Confidential
treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as
[*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 

1

 

NOW THEREFORE, in consideration of the covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties, intending to be legally bound, agree as follows: 

	Distributor — Name:	 	President Medical Technologies Co., Ltd. Inc. ("PMTC" and "Distributor")
	Type of Legal Entity:	 	Corporation
	Address of Principal Office:	 	10F-1, No. 560, Sec. 4 Chung Hsiao East Rd

Taipei 110, Taiwan

Republic of China
	Territory:	 	Taiwan, Republic of China and Peoples Republic of China (including Hong Kong)
	Initial Term:	 	Fifty-five (55) months, beginning June 1, 2004, and ending December 31, 2008 (unless extended as provided herein).

Signatures:  

	DISTRIBUTOR:	 	ACCURAY INCORPORATED:
	
By:	

/s/  HUAN-CHIU KUO      
	
 	
By:	

/s/  EUAN THOMSON      

	
Typed name:	

Huan-Chiu Kuo
	
 	
Typed name:	

Euan Thomson

	
Title:	

General Manager
	
 	
Title:	

Chief Executive Officer

	Date:	08-06-04
	 	Date:	11-06-04

	 	 	 	/s/  DARREN J. MILLIKEN                              6/11/04
 General
Counsel

2

 

1.     Definitions and Provisions  

	1.1.
	Accuray Terms of Sale    means the current standard international transaction terms and conditions
of sale prepared by Accuray from time to time (including FOB Sunnyvale).

	1.2.
	Change in Control    means where Accuray becomes controlled, or more than 50% owned, by
another party.

	1.3.
	Customer    means a person or business entity lawfully doing business in the Territory, which has
needs during the Term of this Agreement, which could be satisfied by Products and to whom Distributor or Sub-Distributor has sent a Proposal.

	1.4.
	Excluded Territories    means (i) Burma, Cambodia, India, Indonesia, Korea, Malaysia,
Mongolia, Pakistan, Philippines, Singapore, Thailand and Vietnam (collectively, the "Excluded Asian Territories"), and (ii) any other country or
territory not included within the Territory.

	1.5.
	First-Line Field Service    shall include local coordination for site preparation and
installation, first point of contact for malfunctions including receipt of phone calls from Customer, return of phone calls within four (4) hours, instruction in the proper operation of
CyberKnife, on-site service visits to Customer when appropriate to perform diagnostic failure analysis, promptly notify Accuray of needed service and help coordinate Accuray service visit,
attend each site for three (3) days four (4) times per year to support Accuray personnel performing preventative maintenance, other repair and maintenance activities if personnel are
qualified and those activities have been pre-approved by Accuray, coordination with designated Accuray service personnel, and such other activities that shall be agreed between
the parties.

	1.6.
	Orders    mean those written orders for a Product issued by a Customer to Distributor or
Sub-Distributor (as applicable) who has submitted a Proposal to Customer, such Order indicating the quantity of Products that Customer wishes to order from Distributor or
Sub-Distributor (as applicable).

	1.7.
	Purchase Orders    means a written document issued by Distributor to Accuray indicating the quantity
of Products that Distributor wishes to order from Accuray to fulfill Customer Orders.

	1.8.
	Products    means the products comprising or related to Accuray's CyberKnife manufactured by or for
Accuray and listed in Exhibit A attached to this Agreement.

	1.9.
	Project    means new or replacement equipment installation that could be carried out in such a way
as to include Products.

	1.10.
	Proposal    means a document submitted by Distributor or Sub-Distributors to Customers
that offers to provide Products.

	1.11.
	Service Contracts    means the separate maintenance and support agreement executed between Customer
and Accuray regarding the Products and listed in Exhibit A attached to this Agreement.

	1.12.
	Specifications    means the current written description of a Product prepared by Accuray and
provided to Distributor from time to time.

	1.13.
	Sub-Distributor    means a distributor appointed by Distributor on its behalf to act as
a distributor of Accuray's Products in Territory.

	1.14.
	Term    means the period of time that commences at the beginning of the "Initial Term"
(as defined on the cover sheet of this Agreement) and ends upon termination or expiration of the Agreement (defined on the cover sheet of this Agreement). 

3

 

	1.15.
	Territory    means the countries or portions of countries listed on the cover sheet of this
Agreement. The Territory shall not include any of the Excluded Territories 

2.     Duties of Accuray  

	2.1.
	Exclusive Appointment.    Subject to Distributor's compliance with the terms and conditions of this Agreement, Accuray
appoints Distributor, and Distributor accepts such appointment, as the independent, exclusive distributor of the Products listed in Exhibit A in
and limited to the Territory. Subject to Distributor's compliance with the terms and conditions of this Agreement, during the Term of this Agreement, Accuray will not appoint another distributor of
the Products in the Territory. This exclusive appointment shall be exclusive even as to Accuray.

	2.1.1.
	Volume of Business:    So long as Distributor achieves the Volume of Business set forth in  Section 3.13 below and otherwise meets its material obligations under this Agreement, Distributor shall be the exclusive distributor of Accuray
Products in the Territory.

	2.1.2.
	Exclusivity Limitations:    As long as Distributor is the exclusive distributor in the Territory, Accuray agrees not to
sell the Products to any Customer inside the Territory, and will make every effort to ensure that no other distributor sells the Products in the Territory. Distributor agrees not to sell the Products
to any Customer outside the Territory and acknowledges that Accuray will directly manage all distribution and sales in other territories, including the Excluded Territories.  

	2.2.
	Transition.    Distributor's rights and obligations within the Territory pursuant to this Agreement are effective from
June 1, 2004. Accuray acknowledges that Distributor, pursuant to the Existing Agreement, has helped to represent Accuray in the Excluded Asian Territories, particularly Korea. Accuray and
Distributor wish to achieve a successful transition from the prior distribution activities of Distributor (in the Excluded Asian Territories pursuant to the Existing Agreement) to the new
activities in the Territory described under this Agreement.

	2.2.1.
	Compensation:    Provided that this Agreement is executed on or before June 15, 2004, but having an Effective Date
of June 1, 2004, Accuray will compensate Distributor for continued successful Accuray sales activities in the Excluded Asian Territories according to the schedule below. PMTC will receive a
commission on any sale in the Excluded Asian Territories as follows, provided that PMTC supports the efforts of Accuray or its distributors in the Excluded Asian Territories by providing business
development and support, as later agreed between Accuray and PMTC:

	2.2.1.1.
	Year 1:    PMTC will receive a commission of $[*] for any sale in the Excluded Asian Territories
(represented by shipment of the CyberKnife from Accuray's plant) through November 1, 2004 and $[*] for any sale in the Excluded Asian Territories (represented by
shipment of the CyberKnife from Accuray's plant) through May 31, 2005.

	2.2.1.2.
	Year 2:    PMTC will receive a commission of $[*] for any sale in the Excluded Asian Territories
(represented by shipment of the CyberKnife from Accuray's plant) in the second year of the Agreement, from June 1, 2005, through May 31, 2006.

	2.2.1.3.
	No
further commissions will be due PMTC, unless otherwise mutually agreed to by the parties in an agreement signed by both parties. 

	2.2.2.
	Existing Inventory.    PMTC has two (2) CyberKnife units in its inventory from orders pursuant to the Existing
Agreement. The parties agree that the existing inventory units will be used to satisfy the first two (2) orders placed for a CyberKnife unit in either the Excluded Asian Territories or the
Territory. For example, if either (i) Accuray or an Accuray distributor in the Excluded Asian Territories or (ii) Distributor receives an order for a CyberKnife unit in the Territory or
the Excluded Asian Territories, such order will be fulfilled with one of Distributor's existing units. 

	[*]
	Certain
information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions. 

4

 

	2.3.
	Products.    Subject to Distributor's timely submission of Purchase Orders, Accuray will use all commercially reasonable
efforts to provide timely to Distributor those Products required to fulfill Orders received by Distributor pursuant to Proposals submitted to Customers by Distributor. Accuray will notify Distributor
immediately upon determining that it cannot meet a delivery date agreed upon by Accuray and Distributor, and will reimburse Distributor for any late delivery penalty actually paid by Distributor of
which Accuray was aware at the time of agreeing upon the delivery date. 
	2.4.
	Warranty.    Accuray warrants that the Products will be
free from defects in material and workmanship under normal use in
accordance with the documentation for a period of one (1) year from the date of acceptance by Distributor, but not to exceed twenty-four (24) months from date of shipment,
provided however, for the above period Accuray warrants software media and firmware media furnished by Accuray in or for use with the Products (i) to be free of defects in materials which cause
failure to execute programming instructions and (ii) to be free of errors which cause failure to perform substantially in accordance with the operational features of Accuray's published
Specifications for the Product at the time of sale, but Accuray makes no warranty that the operation of any software or firmware will be uninterrupted or error free.

	2.4.1.
	Accuray
and Distributor will share the cost of such warranty as follows: (i) Accuray will, at its option, decide to repair or replace any Product during the warranty period
that does not comply with such warranty, (ii) Accuray shall be responsible for replacement of parts in connection with such warranty claims and (iii) Distributor shall be responsible for
all labor provided in connection with such warranty claims.

	2.4.2.
	Accuray
will have no obligation to the extent that any failure of a Product to comply with the limited warranty set forth above results from or is otherwise attributable to:
(i) negligence or misuse or abuse of the Product; (ii) use of the Product other than in accordance with Accuray's published specifications or user manual; (iii) modifications,
alterations or repairs to the Product made by a party other than Accuray or a party authorized by Accuray; (iv) any failure by Distributor, Customer or a third party to comply with
environmental and storage requirements for the Product specified by Accuray, including, without limitation, temperature or humidity ranges; or (v) use of the Product in combination with any
third-party devices or products that have not been provided or recommended by Accuray.

	2.4.3.
	Except
as expressly stated in this Section 2.4, Accuray makes no further express or implied warranties or representations to
Distributor or to any other party regarding any of the Products. Accuray disclaims all other warranties and representations, whether express or implied, including but not limited to any implied
warranties of merchantability, fitness for a particular purpose or non-infringement, and any warranties arising out of course of dealing or usage of trade.

	2.4.4.
	Distributor
will not make any warranties or representations in Accuray's name or on Accuray's behalf.  

	2.5.
	Third Party Intellectual Property Rights.    In the event that, during the Term of this Agreement, a third party makes a
claim or files a suit against the Distributor on the theory that the Distributor's sale of Products infringes the third party intellectual property rights, Accuray will undertake the defense of
Distributor in that claim or suit. In the event of a finding of infringement, Accuray will indemnify the Distributor against any final damage award against Distributor and will remedy the infringement
by (i) obtaining for Distributor the right or license to continue using the Product including the infringing feature, (ii) changing the Product so as to make it
non-infringing while still performing its essential functions, or (iii), if neither of these remedies is successful, allowing Distributor to terminate this 

5

 

Agreement.
This duty of indemnification shall not apply if Distributor has made any changes to the Products not authorized by Accuray, or has failed to implement upgrades or modifications to the
Products provided by Accuray which would eliminate such infringement claim. 

	2.6.
	Product Pricing.
	2.6.1.
	Pricing.    Product pricing will be provided by Accuray to Distributor from time to time during the Term of this
Agreement. The current list price for Products is set forth on Exhibit A. Products shall be priced by Accuray in accordance with Accuray's price
list in effect from time to time, provided that Accuray agrees not to increase the pricing of any significant Product or component without three (3) months' prior written notice to Distributor,
except that any adjustment shall be subject to provisions of sales agreements signed between Distributor and Customers.

	2.6.2.
	Asian Market Pricing Policy.    Accuray agrees to implement within six (6) months from the date of signing of this
Agreement, a unified Asian Market Pricing Policy that will apply to all of Accuray's distributors in the Asian Marketplace, including Distributor, with which Accuray signs a contract after the
Effective Date of this Agreement.  

	2.7.
	Adaptation of Product Specifications & Promotional Materials.    Accuray may provide Distributor, from time to time
during the Term, Product Specifications, end user documentation and such other promotional literature, in reasonable quantities, for use by Distributor in its dealings with Customers. Accuray will
also provide studies of the performance of Products and scientific journal reprints as Distributor shall reasonably request for follow up with particular Customers. Such materials will be provided in
the English language. Distributor, at its own expense, will translate such materials into such other languages as Distributor determines are necessary or desirable. Distributor will obtain Accuray's
approval of the translated materials prior to distributing or using them. Distributor hereby irrevocably assigns and transfers to Accuray, and agrees to irrevocably assign and transfer to Accuray, all
of its rights, title and interest in all such translated materials, including but not limited to all related copyrights and moral rights. Distributor also, on behalf of itself and its employees and
subcontractors, waives and agrees never to assert any and all moral rights that Distributor or its employees or subcontractors may have in or with respect to the translated materials, even after
termination or expiration of this Agreement.

	2.8.
	Product Upgrades.    While Accuray will typically upgrade its principal Product (the CyberKnife), by means of annual
releases, it is understood that Accuray may do more frequent upgrades and will use reasonable efforts to give Distributor as much advance notice of upgrades as is feasible.

	2.9.
	Training.
	2.9.1.
	Initial Training.    With respect to all Products ordered by Distributor up to and including the Effective Date, Accuray
has provided training, and fulfilled its training obligations, to Distributor under the Existing Agreement.

	2.9.2.
	Modifications and Improvements to Products.    Accuray will provide reasonable training to Distributor with respect to any
modifications or improvements to the Products made after the Effective Date ("Update Training"). Such Update Training shall be provided free of charge
by Accuray to Distributor at a location, either within or outside the Territory, chosen by Accuray in its sole discretion. Distributor will pay for travel and related expenses.

	2.9.3.
	Customer Training.    Accuray will provide training for a team of maximum [5] personnel of each
Customer who purchases a CyberKnife unit through Distributor. The training will take place at Accuray's training center in its Sunnyvale offices or at a location in 

6

 

Accuray's
sole discretion. Accuray will pay for the first such Customer training and Distributor will pay for any and all travel and related expenses associated with such first Customer training,
unless otherwise agreed between Distributor and Customer. 

	2.9.4.
	Subsequent Training.    Additional training will be available to Distributor, its Sub-Distributors or
Customers according to Accuray's then-current training price list. Distributor will pay for any and all travel and related expenses for such additional training, unless otherwise agreed
between Distributor and Sub-Distributor or Customer (as applicable).  

	2.10.
	Installation, Service and Maintenance.    Distributor shall be responsible for providing installation of the Products at
its sole expense as provided in Section 3.11. If a party other than Distributor performs the installation, Distributor, or
Sub-Distributor, will provide at their cost a minimum of two (2) technicians, who must be able to translate and assist the team during the entire installation period. Site planning,
including understanding and complying with local electrical, safety, and construction codes, is the responsibility of Distributor. Distributor is responsible for First-Line Field Service
(as provided in Section 3.16) and all maintenance and warranty services (excluding the cost of warranty parts) required in
connection with the limited warranty provided in Section 2.4. All other maintenance and service will be handled under a separate Service
Agreement between Accuray and the Customer.

	2.10.1.
	Accuray Installation Services. Accuray and Distributor will enter into good faith negotiations for the provision of installation
services by Accuray. Distributor may submit a Purchase Order to Accuray for the provision of installation services for specific installations. If Accuray accepts the Purchase Order, Distributor will
provide Accuray with the requested timing and location of the installation with an initial payment of $[*]. Distributor will make reasonable efforts to provide Accuray at least
three (3) months' prior written notice of such installation request, and Accuray will make reasonable efforts to provide the installation services on or near the dates requested. The balance of
the amount due will be paid within thirty (30) days after the Customer accepts the installed Product. Accuray agrees to make its installation services available to Distributor at a list price
of $[*], plus reasonable out-of-pocket travel and accommodation expenses. Pricing is subject to the terms stated herein, including  Section 2.6.

 

	2.11.
	Service Contracts will be the responsibility of Accuray. Accuray will hold Service Contracts directly with Customers. The current
list price is set forth on Exhibit A. If Distributor finds it unrealistic for Accuray to achieve the list price for Service Contracts in the
Territory, Accuray will make a good faith effort to evaluate its costs of providing the Service Contract, and will negotiate with Distributor to reduce the list price to a level that will cover
Accuray's costs and provide a reasonable margin of profit. Accuray will provide field service personnel who will travel to the Customer sites for service above and beyond First-Line Field
Service. Should Accuray desire to contract with a third party to provide some portion of this service, Accuray agrees to offer such a contract to Distributor first, if Distributor declines, then
Accuray may contract with another third party in its sole discretion. Accuray and Distributor will negotiate training and rates for this subcontracting as necessary. 

	[*]
	Certain
information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions. 

7

 

	2.12.
	General Manager. Accuray will appoint a general manager to oversee the CyberKnife distribution operations in Asia, including the
Territory and Excluded Asian Territories ("General Manager"). At Accuray's discretion, such General Manager may be resident in the Excluded Asian
Territories or Territory (and, if the latter, may be based in Distributor's offices in the Territory). Such General Manager may assist Accuray in coordinating the efforts of Accuray and Distributor,
and developing Accuray's presence and business in Asia, but will not sell the Products in the Territory. The General Manager will give support to Distributor's marketing efforts in the Territory;
however, Distributor is responsible for all marketing efforts in the Territory.

	2.13.
	Meetings. Accuray and Distributor shall establish a committee (the "Coordination
Committee") that will be responsible for (i) improved communications between the parties; (ii) setting, and if necessary adjusting, the strategic roles of the
parties, the strategic direction of the distribution relationship itself, or the Territory or Excluded Asian Territories; (iii) reviewing the timetable and achievement of the distribution
relationship; (iv) making decisions regarding material variations to the distribution timetable and/or territories; (v) reviewing whether Accuray can assist Distributor in its regional
Taipei offices; (vi) reviewing sales projections and sales forecasts; (vii) discussing any escalated issues or disputes between the parties that are raised; (viii) reviewing
market trends; and (ix) addressing such other matters regarding the parties' relationship and the operation of the Coordination Committee as the parties or the Coordination Committee may
determine, including adopting a process for obtaining feedback from the parties regarding fulfillment of the Coordination Committee's responsibilities and evaluation of the parties' relationship. Such
Coordination Committee will have no right or authority to bind or create obligations on behalf of Accuray in any way. 

Accuray
and Distributor shall each nominate two (2) individuals to serve as representatives on the Coordination Committee (the "Coordination Committee
Representatives"), provided, however that at least one (1) nominee from Accuray Party shall be the General Manager. Each Party shall be entitled to change one or more of
its respective Coordination Committee Representatives upon written notice to the other Party. Accuray shall also have the right, in its sole discretion, to nominate representatives from the Excluded
Asian Territories to serve as representatives on the Coordination Committee. 

The
Coordination Committee shall use their good faith efforts to hold regular meetings at such time and place as it shall determine, but no less frequently than as follows: 

	(i)
	monthly
tele-conference calls; and

	(ii)
	meetings
in person quarterly. 

3.     Duties of Distributor  

	3.1.
	Sub-Distributors. Distributor may appoint one (1) or more Sub-Distributors after review from Accuray,
as long as Distributor adopts reasonable suggestions from Accuray. Accuray will respond within one (1) month after receiving proposal from Distributor with respect to the proposed appointment
of any Sub-Distributor. Distributor agrees that its agreements with Sub-Distributors may not be inconsistent with the provisions of this Agreement, will inform all
Sub-distributors of their responsibilities under this Agreement and will monitor their compliance with such responsibilities. Within ten (10) days after execution, Distributor will
provide Accuray with a copy of any agreement it has entered into with a Sub-Distributor.

	3.2.
	Status. Distributor and each Sub-Distributor shall be and must at all times make it clear to Customers that they are
independent entities contracting with Accuray, and are not the employees, representatives or agents of Accuray. Distributor and each Sub-Distributor will not 

8

 

make
any representations on Accuray's behalf and will not have the ability or authority to bind Accuray legally to anything. Distributor acknowledges that it, and each Sub-Distributor, are
involved in other businesses, not competitive with their activities under this Agreement but of sufficient volume and profitability that their entire business is not solely dependent upon this
Agreement or their relationship with Accuray for their continuing viability or success. 

	3.3.
	Market Knowledge, Promotion and Sales. Distributor, on its own or through Sub-Distributors, must have a thorough knowledge
of the Territory and of all Projects and potential Projects, which could include Products.

	3.3.1.
	Distributor,
whether acting on its own or through Sub-Distributors, will use all reasonable efforts to vigorously promote and advertise the sale of and to sell Products
to Customers in accordance with Accuray's marketing guidance and policies in effect from time to time.

	3.3.2.
	In
performing its duties, Distributor should learn of, and promptly report to Accuray, each Project that is proposed to be carried out by Sub-Distributors or Customers.
Distributor will make itself reasonably familiar with each such Project so as to learn all conditions of the Project that may impact the Products to be offered. In addition, as Accuray releases new
features and Products (releases which add new functional capability to a Product, as distinguished from periodic releases of bug fixes and improvements which do not add such capabilities and which are
customarily provided by Accuray to customers without separate charge), Distributor will use all reasonable efforts to promote the sale of and to sell those features and Products to the installed base
of Products in the Territory.

	3.3.3.
	Distributor
will report to Accuray, as soon as practicable after learning about them, all proposed or pending Projects inside the Territory about which Distributor learns during
the Term of this Agreement.

	3.3.4.
	Distributor
will provide Accuray, as soon as practicable after receipt, copies of any signed contracts with or Purchase Orders from hospitals in the Territory.

	3.3.5.
	During
the Term of this Agreement and for a period of three (3) years after any termination or expiration thereof, Distributor will maintain complete and accurate books,
records and accounts relating to the distribution of the Products, and will permit Accuray's authorized representatives to examine them on reasonable prior notice.

 

	3.4.
	Clinical Trials & Development. If Distributor determines that regulatory clinical trials are necessary in a region, Distributor
will promptly inform Accuray of such determination and make a proposal to Accuray for consideration. Distributor and Accuray will determine whether clinical trials are cost-effective and,
in good faith, will determine whether and how such trials should be conducted and funded. In general, Accuray will contribute to the cost of clinical trials if they reasonably have value outside of
the Territory and Distributor will coordinate clinical trial activities in the Territory as mutually agreed between the parties from time to time.

	3.5.
	Approvals and Regulatory Activities. Distributor will be responsible for registering all Accuray Products with and obtaining all
necessary permits and approvals from all applicable local regulatory bodies. During the Term of this Agreement, Distributor will further perform the following regulatory activities, at its
own expense:

	•
	Diligently
continue efforts to obtain "Body" and "Express" approvals in Taiwan;

	•
	Diligently
continue efforts to update filing and obtain "Express" approval in China;

	•
	Reasonable,
timely efforts to obtain "Body" approval in China; 

9

 

	•
	Reasonable,
timely efforts to obtain "Synchrony" approval in Taiwan and China following "Body" approvals;

	•
	Reasonable,
timely efforts to obtain approval for further upgrades that have a commercial value in the Territory;

	•
	Reasonable
efforts to improve or obtain reimbursement, to be mutually agreed by the parties; and

	•
	Fulfillment
of all import permits, licenses, construction permits and radiation protection requirements for the Products. 

During
the Term of this Agreement, Accuray will provide reasonable support and materials to aid the Distributor in the performance of the above listed regulatory activities. 

	3.5.1.
	Prior
to submission, Distributor will provide copies of any regulatory submission to Accuray for approval, and Accuray shall review such submission within a reasonable period of
time. Distributor will provide copies of any final regulatory submissions or approvals, and any other correspondence to or from the regulatory body, to Accuray within ten (10) days of the final
submission or approval. Accuray may require translation into English at its expense.

	3.5.2.
	Upon
termination of this Agreement, the ownership of all regulatory submissions and approvals shall pass to Accuray. Should Accuray terminate this Agreement, through no fault of
Distributor, within one year from the date of such regulatory submission or approval then Accuray shall reimburse Distributor a pro-rata share of the costs of such regulatory submissions
and approvals based upon the length of time remaining in that particular year.

 

	3.6.
	Personnel. Distributor, either itself or through Sub-Distributors, will provide personnel, dedicated to its business
relating to the Products and having backgrounds in surgical and/or radiation oncology products, adequate in number to perform the following functions:

	3.6.1.
	Marketing,
in coordination with the marketing efforts of Accuray;

	3.6.2.
	Sales,
sales management, sales forecasting, and order management;

	3.6.3.
	Training
of Customer personnel;

	3.6.4.
	Clinical
trials, regulatory compliance, and reimbursement;

	3.6.5.
	Product
management; and

	3.6.6.
	First-Line
Field Service, installation coordination and support. 

Nothing
in this paragraph shall be deemed to require that a separate person perform each of these functions; two or more functions may be performed by the same person, if that person is able to
do so. 

	3.7.
	Proposals. Distributor or Sub-Distributor will submit a timely Proposal to Customer on every Project in the Territory
during the Term of this Agreement. Proposals will offer only Products described in current Specifications, and only on the then-current Accuray Terms of Sale, which shall be presented to
the Customer as the Distributor's terms of sale. Unless Distributor has prior written consent from Accuray to the contrary, all Proposals submitted by Distributor or Sub-Distributor are
(and they must inform the Customer that they are) subject to change in the event the Accuray Terms of Sale or Specifications change prior to the time Distributor accepts an Order from the
Customer (if it does). Proposals will be reviewed by Distributor with Accuray before submission to the Customer unless there is a substantial risk that Accuray 

10

 

Products
will be eliminated from consideration by the Customer unless a Proposal is submitted to the Customer immediately. The accuracy and cost of any translation of Accuray materials into a language
other than English, which may be required for a particular Customer, shall be the responsibility of Distributor. 

	3.8.
	Orders. Distributor will receive each Order placed by a Customer to which Distributor or Sub-Distributor has submitted a
Proposal. Orders may be accepted only by Distributor, or Sub-Distributor if authorized by Distributor. The resulting contract for the sale of Products shall be between Distributor, or
Sub-Distributor if authorized, and the Customer.

	3.9.
	Forecasting. Distributor will provide to Accuray a rolling twelve (12) month forecast. This forecast is due to Accuray's
Vice-President of Sales and Marketing within fifteen (15) days of the end of each quarter for the four (4) quarters which follow the quarter in which the forecast is given.
Distributor's forecasts are provided to facilitate Distributor's marketing planning and Accuray's production planning, and shall not be considered contractual promises to purchase Products.

	3.10.
	Purchase Orders. Distributor shall give Accuray a Purchase Order or Letter of Intent nine (9) months in advance of an order's
proposed shipment date. Within four (4) to six (6) months prior to the proposed shipment date, Distributor must confirm the Purchase Order and pay a first installment of US
$[*], which is non-cancelable and non-refundable. All Purchase Orders shall be subject to the terms and conditions of this Agreement and
then-current Accuray Terms of Sale, and any terms included on Distributor's form of Purchase Order that are inconsistent therewith shall be of no force or effect. 

	[*]
	Certain
information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions. 

11

 

	3.11.
	Installation. Distributor shall be responsible for providing installation of each Product (that is, each CyberKnife system) at its
sole expense. Distributor may engage others or will perform the installation itself, at its sole expense. Distributor agrees to give consideration to engaging others
(e.g., ATC, YCK or ab medica) to perform installations. If a party other than Distributor performs the installation, Distributor, or
Sub-Distributor, will provide at their cost a minimum of two (2) technicians, who must be able to translate and assist the team during the entire installation period. Site planning,
including understanding and complying with local electrical, safety, and construction codes, is the responsibility of Distributor.

	3.11.1.
	Distributor
may submit a Purchase Order to Accuray for the provision of installation services for specific installations in accordance with  Section 2.10.1.

 

	3.12.
	Payment. Payment for Products shall be made by Distributor to Accuray in the form of irrevocable trade finance letter of credit
issued by Distributor's bank, confirmed by a bank that is doing business in the State of California, United States of America, in all respects, including the confirming bank, acceptable to
Accuray, and delivered to Accuray with the Purchase Order. The letter of credit will provide that Accuray can draw against the letter of credit according to the following schedule:

	3.12.1.
	US
$[*] (non-cancelable, non-refundable) upon Accuray's acceptance of the Purchase Order, which must be at least four (4) to
six (6) months prior to the firm shipment date;

	3.12.2.
	Balance
except for ten percent (10%) upon presentation of documents evidencing shipment of the Products to Distributor.

	3.12.3.
	Final
ten percent (10%), billed upon shipment, will be due one hundred eighty (180) days following shipment.

 

	3.13.
	Volume of Business. Accuray and Distributor have reviewed and discussed the Territory in detail and have agreed that Distributor
should be able to generate the volume of Orders, acceptable to Accuray, as set forth in Exhibit B and attached to this Agreement.
Distributor will order and pay for at least the minimum quantities of Products specified in Exhibit B within the times periods set forth in  Exhibit B. It is understood that, during any period in which Distributor is falling short of the agreed volume of business, Distributor will,
upon Accuray's request, promptly provide Accuray with a written report explaining Distributor's failure to meet its minimum requirements and Accuray may, but shall not be required to, determine in its
sole discretion which of the following steps is appropriate: (i) place Distributor on probationary status for not less than three (3) and as many as nine (9) months until such
time as it reasonably appears to Accuray's Sales Manager that the agreed volume will be reached and, if Distributor has not achieved the cumulative volume required by the end of the probationary
period, terminate this Agreement; (ii) convert Distributor's appointment under this Agreement to non-exclusive; or (iii) modify the Territory. 

	[*]
	Certain
information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions. 

12

 

	3.14.
	Training. Distributor will maintain sufficient technical and sales personnel and will cause such personnel to be able to
(i) provide training, based on training provided by Accuray, and will coordinate with Accuray to provide more technical training if necessary, regarding, and (ii) inform Customers about
the capabilities and operation of the Products to all Customer personnel (surgeons, radiation oncologists, radiation physicists, technicians and nurses) who will use the Products. Distributor or
Sub-Distributor will also provide to all Customer billing and reimbursement personnel training regarding compliance with regulatory and billing requirements relating to reimbursement for
treatment provided with Products under applicable radiosurgical reimbursement codes. Distributor will cause its personnel and Sub-Distributors' personnel to be adequately trained on
Products. As requested by Accuray, Distributor will cause personnel to be trained to help install Products. Distributor will be responsible for assuring that its personnel and
Sub-Distributor personnel maintain adequate proficiency with respect to the Products and all upgrades, enhancements and new feature releases. Accuray will be responsible for providing
required Update Training on the CyberKnife and service contracts in accordance with Section 2.9.2, above. Training on any subsequent upgrades to
Distributor and Sub-Distributors will be provided in accordance with Section 2.9.4 above.

	3.15.
	Customer Relations. Distributor shall deliver Products to Customers in the Territory, shall report promptly to Accuray any complaints
or expressions of dissatisfaction by the Customer relating to the Products, and shall assure the preservation of any Products rejected by a Customer. While Distributor shall have no authority to offer
on behalf of Accuray anything in settlement of any such complaints or expressions, Distributor shall use all reasonable efforts to satisfy the Customer that the Products meet the applicable
Specifications, Proposal and Order, if such is the case.

	3.16.
	First-Line Field Service & Maintenance. Distributor, either itself or through Sub-Distributors, will
provide to all Customers, remotely and on-site when needed, First-Line Field Service for all installed Products in the Territory. Distributor will coordinate with Accuray for
more technical service needs, and will support Accuray as necessary. Distributor will cause its First-Line Field Service personnel to complete Accuray CyberKnife technical training or
on-the-job training, and to review the Accuray maintenance manual, that Accuray may update from time to time, prior to performing maintenance activities.

	3.16.1.
	Distributor
is responsible for all maintenance and warranty maintenance services (excluding the cost of warranty parts) required in connection with the limited warranty provided
in Section 2.4. All other maintenance and service will be handled under a separate Service Agreement between Accuray and the Customer.

	3.16.2.
	In
each geographical region (to be determined by Distributor, with the goal to provide timely service response) in the Territory, Distributor or Sub-Distributor
will maintain a stock of spares and components adequate to perform First-Line Field Services and maintain the Products as required by this Agreement. Accuray and Distributor will work
together to determine such adequate stock supply, taking into consideration past and present Product Orders and warranty claims history. Such stock level determination may be revised from time to time
by the Parties.

	3.16.3.
	Accuray
and Distributor will agree on a Customer price list for spare parts, and both parties agree to sell spare parts to the Customer at the price agreed in the
price list.

 

	3.17.
	Compliance With Laws.

	3.17.1.
	Within the Territory. When Products are being shipped to Distributor, unless the particular Purchase Order provides otherwise,
Distributor shall be responsible for all import duties and other import, licensing and immigration formalities which must be 

13

 

complied
with in order for the Products to be lawfully imported into the Territory or any of the services (including installation, Front-Line Field Service or limited warranty maintenance
services) to be lawfully performed in the Territory. 

	3.17.2.
	United States Laws. Distributor understands that, because it is distributing the Products of Accuray, a company subject to
the laws of the United States of America, Distributor must, when carrying out its duties under this Agreement, avoid violations of certain of such laws. These include, but are not necessarily
limited to, the following:

	3.17.2.1.
	Restrictive Trade Practices or Boycotts, U.S. Code of Federal Regulations Title 15, Chapter VII, Part 760.

	3.17.2.2.
	Foreign Corrupt Practices Act, U.S. Code Title 15, § 78.

	3.17.2.3.
	Export Controls imposed by U.S. Executive Order or implementing regulations of the U.S. Departments of Commerce,
Defense or Treasury.

	3.17.2.4.
	Local
Laws within the Territory, the Distributor shall comply with any and all local laws within the Territory. Should any such local laws within the Territory conflict with
United States Laws, Distributor shall bring such conflicting laws to the attention of Accuray.

 

	3.18.
	Competing Products. During the Term of this Agreement, Distributor and Sub-Distributors will not, with respect to
Customers located or having Projects in the Territory, sell, promote the sale of, distribute or represent in any way products or services that Accuray, in its sole discretion, deems to be competitive
with the Products, unless both parties agree to such distribution, such agreement not to be unreasonably withheld, in which case a specific agreement for that competitive product distribution will be
prepared that is reasonably satisfactory to both parties.

	3.19.
	Financing. Distributor will use its best efforts to facilitate successful financing for commercially appropriate joint ventures with
hospitals. Such potential financings will be dealt with on a case-by-case basis separately from the distribution activities under this Agreement.

	3.20.
	Business Conduct. Distributor and its Sub-Distributors will: (i) conduct business in a manner that reflects
favorably at all time on the Products and the good name, goodwill and reputation of Accuray; (ii) make no false or misleading representations or advertisements with regard to Accuray or the
Products; and (iii) make no representations, warranties or guarantees to Customers or to the trade with respect to the specifications, features or capabilities of the Products that are
inconsistent with the literature distributed by Accuray.

	3.21.
	Meetings. Accuray and Distributor shall meet in accordance with the provisions set forth in  Section 2.13 above. 

4.     Compensation and Payment  

	4.1.
	Compensation. Other than the commission payments provided for in Section 2.2.1
above, Distributor's only compensation for its efforts on Accuray's behalf shall be the margins it earns on the resale of Products, and Distributor shall bear all of the expenses that it incurs in
making those efforts.

	4.2.
	Payment. Distributor shall be solely responsible for determining the creditworthiness of and collecting payment from its Customers and
Sub-Distributors. The risk of non-collection from the Customer or Sub-Distributor will be borne entirety by Distributor, which shall be responsible for making
timely payment to Accuray for Products whether or not Distributor is successful in collecting from its Customer or Sub-Distributor. 

14

 

5.     Term and Termination  

	5.1.
	Term. The initial Term of this Agreement shall be the period specified as the "Initial Term" on the cover sheet, unless this Agreement
is sooner terminated in accordance with the paragraph immediately below. The Term of the Agreement may be extended on an annual basis by mutual agreement as discussed in 3.11 and 3.12.

	5.1.1.
	Notwithstanding
the above, Accuray may terminate this Agreement immediately if Distributor fails to finalize a sale (i.e., Distributor ships to its Customer) at least
[*] CyberKnife [*] to a hospital or other medical facility within the Territory in two consecutive six (6) month periods of the Agreement. The
initial six (6) month period will be calculated as June 1, 2004—November 30, 2004. In the event of such a termination, each party must still fulfill any obligations
accrued on or before the effective date of such termination.

 

	5.2.
	Termination Without Cause. Regardless of any other provisions in this Agreement, either party may terminate this Agreement without
cause within the first two (2) years of this Agreement, upon six (6) months advance written notice to the other party. In the event of such a termination without cause:

	5.2.1.
	Each
party must still fulfill any obligations, including but not limited to pending Purchase Orders, accrued on or before the effective date of such termination.

	5.2.2.
	Accuray
will pay Distributor $[*] per unit for up to two (2) units sold in the first six (6) months after the effective date
of termination.

	5.2.3.
	If
Accuray terminates under this section and the effective date of termination is less than twelve (12) months from the Distributors receipt (or approval) of a
registration applied for by Distributor under Section 3.5, then Accuray shall reimburse Distributor for actual and reasonable expenses incurred
for such registration. The actual and reasonable expenses shall be distributed equally over the twelve month period from date of receipt (or approval) of such registration and Accuray will be
responsible to reimburse Distributor for the amounts distributed over the period between the effective date of termination and the date that is twelve (12) months from the date of receipt
(or approval) of the registration.

	5.2.4.
	If
Accuray terminates under this section and the effective date of termination is twelve (12) months or more from the Distributors receipt (or approval) of a
registration applied for by Distributor under Section 3.5, then Accuray will not be responsible for any reimbursement to Distributor for any
costs of such registration.

 

	5.3.
	Term Extension. During the sixty (60) day period that precedes June 2008, Distributor and Accuray shall meet at a
mutually convenient time and location (either within or outside the Territory) and agree upon a minimum volume of acceptable purchases that would cause Accuray to agree to extend the Term of this
Agreement for one (1) additional year. If Distributor and Accuray are able to agree upon such a minimum volume, then the Term of this Agreement shall be extended by the year or years as to
which such agreement is reached.

	5.4.
	Termination With Cause. Either party may terminate this Agreement if the other party commits a material breach of this Agreement and
fails to cure it within forty-five (45) days after notice of the breach is given by the other party, provided that, as to a breach which cannot be fully cured within
forty-five (45) days, that breach shall be deemed timely cured if the cure is commenced immediately upon receipt of notice of it from the other party and pursued diligently to
completion. The effective date of termination shall be the date of expiration of the cure period without a cure having occurred. 

	[*]
	Certain
information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions. 

15

 

	5.4.1.
	Excess Inventory. Accuray may terminate this Agreement any time after December 31, 2006, if Distributor has more than one
(1) CyberKnife unit in its inventory and such CyberKnife unit has not been allocated for a bona fide Order for shipment in the succeeding three (3) months.

 

	5.5.
	Termination Upon Change in Control. Accuray shall have the right to terminate this Agreement in the event of a Change in Control,
acquisition by a third party or a global change in distributorship structure. A global change in distribution structure may be when Accuray, in its sole discretion and in its own best interests,
determines the need to change the distribution channels, structure, or arrangements on a global basis. Accuray and Distributor agree to negotiate in good faith an orderly transition of Distributor's
distribution rights and activities. Accuray will fulfill all pending Purchase Orders of Distributor at the time of termination. Distributor agrees to assist in the transition. Accuray will pay
Distributor $[*] per unit for up to four (4) units sold in the first twelve (12) months after the effective date of termination under this Section 5.5.

 
	5.6.
	 Repurchase of Products, Parts and Tools. Within a reasonable time after the effective date of termination, Accuray will repurchase from
Distributor, at the
prices Distributor originally paid Accuray for them, all Parts and Tools owned by Distributor.

	5.7.
	Accruals. No termination of this Agreement will terminate any obligation of payment that has accrued prior to the effective date of
such termination, nor will it terminate Accuray's obligation to fulfill any Purchase Order from Distributor which Accuray accepted prior to the effective date of termination. 

6.     Dispute Resolution; Limitation of Liability; Governing Law  

	6.1.
	Discussion. Should any dispute arise between the parties relating to this Agreement or the business relationship between the parties,
it shall be submitted by one or both parties, in writing, to the Chief Executive Officer of Distributor and Accuray's President (the "Principal
Officers") for discussion and, hopefully, an agreed resolution.

	6.2.
	Arbitral Determination. If the Principal Officers are unable to reach agreement upon a resolution of the dispute within thirty
(30) days of the date of the written submission, then the dispute shall be submitted to arbitration before a single arbitrator under the Commercial Arbitration Rules of the American Arbitration
Association. The situs of the arbitration shall be Honolulu, Hawaii, and the arbitrator shall apply the substantive law of the State of California. Either party may submit the disputed issues
to arbitration.

	6.3.
	Confidential Information. Notwithstanding anything else in this Agreement, Accuray shall have the immediate right to take to any court
having jurisdiction any claim based upon the actual or imminent misuse or unauthorized disclosure of Accuray confidential information as described in  Section 7.1 of this Agreement entitled
"Confidentiality."

	6.4.
	Limitation of Liability. Except with respect to breach of Section 7.1 entitled
"Confidentiality," each party's potential liability to the other shall be limited to amounts expressly made due by the terms of this Agreement, and
neither party shall be liable to the other for any special, direct, indirect or consequential damages, even if they had reason to foresee such damages. 

	[*]
	Certain
information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions. 

16

 

	6.5.
	Applicable Law. It is the intention of the parties that any disputes between them be resolved in accordance with the express terms of
this Agreement. However, to the extent that a court or arbitrator must look beyond this Agreement in order to resolve a dispute, they shall look to the domestic substantive law of the State of
California, not including either the choice of law/conflict of laws rules of California or international treaties (such as the U.N. Convention on Contracts for the International Sale of Goods) which
would otherwise be applicable in California. It is the specific intent of the parties that this Agreement be fully valid and legally enforceable. 

7.     Miscellaneous Provisions  

	7.1.
	Confidentiality. The terms of this Agreement, Accuray Terms of Sale, Specifications, Product Pricing, all Proposals, Projects,
Customer lists, requirements and identities, Orders, Purchase Orders, information relating to treatments or otherwise having regulatory significance, and all other proprietary information generated by
Distributor under this Agreement or by Accuray shall be considered confidential, proprietary, trade secret information of Accuray. Distributor may use this information only in performing its express
duties under this Agreement, and may not disclose it to anyone, with the exception of Customers or prospective Customers as expressly permitted in this Agreement. It is understood and agreed that the
confidentiality obligations created by this Section 7.1 do not apply to information which (a) is in the public domain, through no breach
of this or such other confidentiality agreement, (b) was in the possession of the Distributor at the time of the initial disclosure by Accuray as evidenced by documents in the Distributor's
files predating such disclosure, (c) was received by the Distributor from a third party, before or after the time of disclosure by Accuray, so long as such information was not disclosed by such
third party directly or indirectly in violation of a confidentiality agreement with Accuray, or (d) is required to be disclosed by the Distributor by law or by virtue of a final court order,
provided that the Distributor must promptly notify Accuray when such disclosure is sought, and Accuray must be afforded an opportunity to oppose the request for disclosure.

	7.2.
	Publicity. Distributor may use Accuray's name or trademarks on its literature, signs, or letterhead, and may make press releases or
other public statements disclosing its relationship with Accuray under this Agreement or otherwise upon the prior written consent of Accuray, which consent shall not be unreasonably withheld.

	7.3.
	Insurance. Each party shall obtain and keep in full force and effect during the Term of this Agreement (and thereafter until
all Projects as to which Accuray has accepted a Purchase Order from Distributor have been completed) comprehensive general and products liability and workers' compensation insurance on an occurrence
basis with coverage limits sufficient to provide coverage of any claim which may reasonably arise out of the actions or inactions of that party related to this Agreement or the business relationship
between the parties. Distributor may elect not to obtain such coverage in a region in which it is doing business if it is not commercially reasonable, but agrees that it will "self-insure"
and be responsible for claims in that region. It is understood and agreed that, as to particular countries in the Territory, Distributor's obligation to provide insurance can be satisfied by the
Sub-Distributor covering that country. Each party shall provide to the other from time to time while its obligation under this paragraph is in effect certificates evidencing such
insurance, which certificates shall expressly provide that the underlying coverage cannot be cancelled without at least thirty (30) days' written notice to the other party.

	7.4.
	Interest. Interest upon any amount due from one of the parties to this Agreement to the other shall be at the one (1) month
London InterBank Offered Rate ("LIBOR") in effect 

17

 

from
time to time plus three percent (3%) and shall accrue from the date payment of such amount was due until such payment has been completed in collected funds. 

	7.5.
	Titles. The titles or headings of the various paragraphs and sections of this Agreement are for ease of reference only and are not
intended to change or limit the language contained in those paragraphs and sections.

	7.6.
	Severability. In the event any provision of this Agreement is found to be invalid, voidable or unenforceable, the parties agree that
unless it materially affects the entire intent and purpose of this Agreement, such invalidity, voidability or unenforceability shall affect neither the validity of this Agreement nor the remaining
provisions herein, and the provision in question shall be deemed to be replaced with a valid and enforceable provision most closely reflecting the intent and purpose of the original provision.

	7.7.
	Waiver. Any term of this Agreement may be waived by the party entitled to the benefits thereof, provided that any such waiver must be
in writing and signed by the party against whom the enforcement of the waiver is sought. No waiver of any condition, or breach of any provision of this Agreement, in any one or more instances, shall
be deemed to be a further or continuing waiver of such condition or breach. Delay or failure to exercise any right or remedy shall not be deemed the waiver of that right or remedy.

	7.8.
	Assignment. Neither party may assign or otherwise transfer or pledge all or any part of its rights or obligations hereunder without
the prior written consent of the other party, and any attempted assignment or other transfer or pledge in violation of this provision shall be void. Notwithstanding the foregoing, in the event
of any

	7.9.
	Writing. The parties agree that, upon the Effective Date, the Existing Agreement is hereby terminated in its entirety, including any
provisions that would otherwise survive termination. It is the intention of the parties that this written Agreement contains the entire agreement between them. It supersedes all other agreements
between the parties. No addition to or amendment of this Agreement shall have any effect unless it is also in writing and, with the exception of those matters which Accuray is expressly permitted to
change from time to time during the Term of this Agreement (such as pricing, Accuray Terms of Sale, etc.), shall only be valid if signed by the duly authorized officers of both parties. 

 
 

[EXHIBITS FOLLOW]    
    

18

 
 
 

Exhibit A
  
    PRODUCTS
  (Including Current Pricing)    
    

Products:
  

The CyberKnife® Stereotactic Radiosurgery System with DTS and one (1) workstation: 

Pricing
for the First CK Shipped to PMTC Territory in a Calendar Quarter 

	 
	 	 
	 	 

	 	 	 	PMTC Price	 	 	Total Price
	 BPasic CK with 1 workstation	 	$	[*]	 	 	 
	 	 	 	* This price includes the first-year warranty parts.
	 Additional Configuration options that must be ordered at the same time as CK
	 With additional Workstation	 	$	[*]	 	$	[*]
	 With Express	 	$	[*]	 	$	[*]
	 With Axum	 	$	[*]	 	$	[*]
	 With Synchrony (when released)	 	$	[*]	 	$	[*]
	 With 4 Year extended Parts Warranty	 	$	[*]	 	$	[*]

	 
	 	 
	 	 

	 Pricing for the Second CK Shipped to PMTC Territory in a Calendar Quarter
	 	 	 	PMTC Price	 	 	Total Price
	 Basic CK with 1 workstation	 	$	[*]*	 	 	 
	 	 	 	*This price includes the first-year warranty parts.
	 Additional Configuration options that must be ordered at the same time as CK
	 With additional Workstation	 	$	[*]	 	$	[*]
	 With Express	 	$	[*]	 	$	[*]
	 With Axum	 	$	[*]	 	$	[*]
	 With Synchrony (when released)	 	$	[*]	 	$	[*]
	 With 4 Year extended Parts Warranty	 	$	[*]	 	$	[*]

Adjunct
technologies usable with the CyberKnife: 

	•
	Accuray
fiducials and markers: 

	 
	 	 
	 	 

	 	 	—    Spine Fiducials (5 screws/tumor)	 	US $[*] per screw
	 	 	—    Instrument Sets (1 set/Institution)	 	US $[*] per set

	[*]
	Certain
information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions. 

19

 

Additional
capabilities will be priced as Options. 

Service
Contracts: 

	•
	List
Price to the Customer for Service Contract for one (1) year        US $[*]

	•
	Distributor
will receive a [*] percent ([*]%) fee of the Service Contract list price (currently, such percentage equals
$[*]) from Accuray with respect to each Service Contract to cover the labor cost of First-Line Field Service and other required maintenance and warranty maintenance
services during the Term of this Agreement. 

	[*]
	Certain
information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions. 

20

 
 
 

Exhibit B
  
    PRODUCT VOLUMES    
    

At
a minimum PMTC will be required to purchase [*] ([*]) CyberKnife units annually to satisfy the following schedule of shipments by Accuray: 

	•
	[*]
CyberKnife shipped each [*], with the year having begun June 1, 2004. Each CyberKnife unit must be ordered nine
(9) months prior to shipment.

	•
	[*]
CyberKnife [*] must be accepted prior to November 30, 2004

	•
	[*]
CyberKnife [*] must be accepted prior to May 31, 2005 

Distributor
agrees to take title to each CyberKnife upon shipment according to the above schedule, and will provide adequate notice to Accuray of each shipment destination. 

	[*]
	Certain
information on this page has been redacted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions. 

21

QuickLinks

ACCURAY INCORPORATED

AMENDED AND RESTATED INTERNATIONAL DISTRIBUTOR AGREEMENT

[EXHIBITS FOLLOW]

Exhibit A PRODUCTS (Including Current Pricing)

Exhibit B PRODUCT VOLUMES

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]