Document:

Prepared by MERRILL CORPORATION

Exhibit

10.32

 

TECHNOLOGY LICENSE AGREEMENT

BETWEEN POINTDX AND VITAL IMAGES

 

This Technology License Agreement

(“Agreement”) is effective as of July 13, 2001.  The Agreement is made and between PointDX, Inc. a Delaware

corporation located in Winston-Salem, North Carolina (“PDx”), and Vital Images,

Inc., a Minnesota corporation located in Plymouth, Minnesota (“VTAL”).

 

1.             PURPOSE

OF THIS

AGREEMENT.  PDx is exclusive licensee with

the right to sublicense certain Patents (as defined below) in the field of virtual

endoscopy generally and more specifically, in the field of three-dimensional

(3D) visualization of hollow viscus organs. 

PDx has the right to grant the rights licensed herein under those

Patents.  VTAL seeks to obtain those

licenses.

 

2.             DEFINITIONS.

A.            “Vitrea Product” refers to

any volume rendering software with 3D imaging capability.  References to “Vitrea Product” are

understood to refer to and encompass VTAL’s past Vitrea® software products,

current Vitrea

products, and any future modified, enhanced, improved or successor Vitrea products.

 

B.            “Patents”

means the patents and applications therefor listed in Exhibit A hereto, any

foreign counterparts thereto, whether now or hereafter issued, any divisions,

continuations, and continuations-in-part based on any thereof, any patents

which may issue therefrom, and any reissues or extensions on any thereof.

 

C.            “CT’ means computed

tomography.

 

D.            “CT Endoscopy Application” means

a software application, whether integrated into and licensed as a part of a Vitrea

Product, or licensed as an option to a Vitrea Product, permitting when used in

conjunction with a Vitrea Product CT virtual endoscopy.

 

E.             “Rex-related

features” means the technology and inventions for reporting digital

radiology images by correlating the radiologist’s findings with the image data,

it being agreed, however, that functions and features contained in any of

VTAL’s past or current Vitrea Products, as well as any

substantially similar  functions and

features contained in any future Vitrea Product, shall not be deemed a

“Rex-related feature”.

 

F.             “Lesion

Detection and Lymph Node features” means the technology and

inventions disclosed in the Patents for computer-assisted lesion detection

technology or for lymph node targeting.

 

G.            “VC Appliance”

means any Vitrea

Product the principal functionality of which is limited to CT virtual

colonoscopy.

 

3.             GRANT OF RIGHTS.  PDx grants VTAL a perpetual, non-exclusive

license to make, have made, use and grant sublicenses or otherwise distribute

(itself or through one or more sub-distributors), but only to a person or

entity then holding or simultaneously receiving a license to a Vitrea

Product, any inventions, whether methods, apparatus or otherwise, disclosed in

the Patents, which license shall be retroactively effective with respect to a

Patent from the date of issue of such Patent. VTAL acknowledges and agrees that this

license does not cover any rights to Lesion Detection and Lymph Node features

or to REX-related features.  PDx and

VTAL agree, however, that they will negotiate in good faith in the future in an

effort to reach agreement on a license on substantially equivalent terms to

those then outstanding if VTAL should request access to any Lesion Detection

and Lymph Node features or to REX-related features.

 

The parties agree and

acknowledge that all intellectual property of either PDx or VTAL, existing as

of the date of this Agreement,shall remain the sole property of that

party.  The only rights granted in or to

any of PDx’s intellectual property are those granted by this Agreement.

 

4.             PAYMENTS AND

ROYALTIES.  In consideration

for the rights granted in this Agreement, VTAL shall pay PDx the following sums

in the following manner.

 

A.            The one-time sum of

$750,000, payable as follows:  $500,000

will be paid on the business day following the date that PDx delivers to VTAL

copies of the following two agreements: 

(i) original signed and dated agreement with Wake Forest University

(“WFU”) pursuant to which (i) WFU grants to PDx the license with right to sublicense

certain of the patents listed in Exhibit A (“the License Agreement”), which

License Agreement shall be in all material respects in the same form as the

undated, unsigned form of agreement between such parties e-mailed by PDx’s

counsel to VTAL’s counsel on August 13, 2001 and (ii) an agreement under which

WFU and PDx agree that Patent Rights as defined in the License Agreement

include all patents, patent applications, etc. listed in Exhibit A hereto and

that Section 3 of the License Agreement authorizes PDx to grant third parties

the right to grant further sublicenses. 

The balance of the $750,000 will be due on the first and second

anniversary dates of the Agreement in the amount of $125,000 and $125,000, respectively,

plus interest accrued from the date hereof through the date of payment at 8%

per annum.  VTAL may prepay in whole or

in part such balance without premium or penalty.  It is agreed and understood that the $500,000 payment at the

signing of the Agreement will be in compensation for , among the other rights

and licenses set forth herein, VTAL’s right, after the Agreement is signed, to

retrofit any Vitrea Products now or hereafter (but on or before August

31, 2001) installed which do not contain a CT Endoscopy Application developed

by or for VTAL after the date hereof with a version of the Vitrea Productthat

includes a CT Endoscopy Application developed by or for VTAL after the date

hereof without the obligation to make any payment pursuant to Section 4.B, but

without prejudice to the payment obligation set forth in Section 4.D.

 

B.            Subject to Section 4.A, for a period

of (____) years, beginning with the date of this Agreement, VTAL will pay PDx a

royalty of $________ for each grant of a license to a Vitrea Product by VTAL when

and as a CT Endoscopy Application developed by or for VTAL after the date

hereof is also licensed by VTAL for use with such Vitrea Product (recognizing

that such CT Endoscopy Application may, but is not required to be, integrated

into such Vitrea

Product); provided that no royalty is due under this Section 4.B if a royalty

is paid under Section 4.C with respect to the same product.

 

C.            For a period of

(____) years, beginning with the date of the Agreement, VTAL will pay PDx a

royalty of $_______ for each grant of a license by VTAL to a VC Appliance.

 

D.            For all licenses of

a Vitrea Product

in excess of ______ that VTAL sells between December 1, 2000 and August 31,

2001 and with respect to which no royalty is due under Sections 4.B or 4.C

hereof , VTAL will pay PDx the sum of $______.

 

E.             Notwithstanding any

other term hereof, no royalty shall be due under Section 4.B, 4.C or 4.D with

respect to any license grant for which VTAL receives no monetary consideration,

such as license grants for demonstration and marketing purposes.

 

F.             Unless otherwise

agreed to in writing by the parties, all royalty payments called for in this

Agreement shall be paid within sixty (60) days of the end of the quarter in

which VTAL recognizes in accordance with Generally Accepted Auditing Principles

(GAAP) the revenue from the sale of the subject license to a third party.

 

5.             ACCOUNTING

AND AUDIT RIGHTS.  VTAL

agrees to keep complete, true, and accurate books, accounts, and records for

the purpose of showing the royalties due and owing to PDx.  A firm of certified public accountants

designated by PDx and approved by VTAL, which approval may not be unreasonably

withheld, shall have the right to audit those books, accounts, and records upon

reasonable advance written notice and so as to not unreasonably interfere with

the on-going operations of VTAL not more than once annually.  PDx shall bear the cost of any such

accounting, unless the accounting shows a discrepancy in PDx’s favor of more

than 10%, in which case VTAL shall be responsible for all costs and expenses

related to the audit.  PDx agrees to

treat VTAL’s books, accounts, and records as confidential at all times.

 

6.             SOFTWARE

DEVELOPMENT.  VTAL shall bear

the costs of all software development for the benefit of the future Vitrea

Product and other future software products of VTAL.  PDx will provide reasonable technical support via telephone,

e-mail, or on-site meetings to be held in Winston-Salem, North Carolina for a

maximum period of twelve months (up to 2 hours per day and a cumulative total

of 180 man-hours) from the date of this Agreement.  The technical support will be sufficient to allow VTAL to

incorporate CT Endoscopy and VC Appliance improvements, but in no case will

exceed the 180 hours maximum.  The cost

of all travel, and the cost of any meetings held outside of Winston-Salem,

North Carolina will be borne by VTAL. 

VTAL will have limited access as reasonably requested by it to the

software code developed by PDx in relation to the subject matter of the

Patents, and only as necessary to allow VTAL to develop the necessary software

code, including incorporation therein of PDx software code, for the CT

Endoscopy Application and the VC Appliance and for submission to the U.S. Food

and Drug Administration (FDA) for marketing clearance.

7.          REGULATORY FILINGS.  PDxwill

support VTAL’s FDA regulatory filings necessary for distribution

approval/release in the United States and clinical validation work for the CT

Endoscopy Application and the VC Appliance for a period of one (1) year

following the date of this Agreement (provided that PDx will use commercially

reasonably efforts to provide additional support following such one (1) year

period in the event such approval/release is not obtained in such one (1) year

period), by providing the data set forth below.

 

A.            PDx will provide all

relevant clinical data from 100 virtual colonoscopy diagnostic or comparative

studies (“the Data”), including the Informed Consent documents for each study

to support an FDA submission for the colon-related CT Endoscopy Application and

the VC Appliance, and to validate the endoscopy protocol and VC Appliance.  The Data will be delivered on CDs containing

CT images, except for the Informed Consent documents and medical reports, which

will be delivered on paper.

 

B.            PDx will send 5

representative sets of clinical data to VTAL for the purpose of allowing VTAL

to evaluate the efficacy of using PDx’s data for an FDA submission by

VTAL.  PDx will also furnish copies of

the National Science Foundation (NSF) and Wake Forest Agreements, or other

reasonably evidence of the granting of rights to the Data to PDx.  If VTAL determines that the PDx clinical

data will be satisfactory in supporting VTAL’s FDA submission, PDx will provide

an additional 95 comparably representative data sets to VTAL for use in

VTAL’s FDA submission.  VTAL reserves

the right to decline the purchase and use of the Data, if VTAL deems it

inadequate for FDA submission.  If VTAL

declines to purchase and use the Data, PDx has no obligation to support or

assist with VTAL’s FDA submission further, and VTAL agrees to promptly return

all data and documents related to the five test cases.

 

C.            VTAL will pay PDx

$________ for the Data, with $______ due within ten (10) days after the Data

have been delivered to VTAL, and the $______ balance payable to PDx upon FDA

clearance of the CT Endoscopy Application or VC Appliance, whichever is issued

first.  VTAL will not have any rights to

sell, use, or distribute the Data outside that use necessary to support the FDA

regulatory filings.

8.             MUTUAL

REPRESENTATION AND WARRANTIES.

A.            PDx

and VTAL hereby each represent and warrant to the other as follows.

1.                   

That it is a legal entity duly organized

and validly existing under the laws of the jurisdiction of its organization,

has all requisite power and authority to carry on its business, and is

authorized to enter into this Agreement and grant the rights or accept the

obligations herein, which representation and warranty extends in the case of

PDx, a representation and warranty that it has the legal right and power,

without any authorization from any third party not already possessed by it, to

grant the licenses and rights to sublicense set forth in Section 3 hereof and

has not made and will not make any commitment to others inconsistent or in

derogation of such right.

2.             That

it has no knowledge of any action, suit, or proceeding, whether pending or

threatened, which may have an adverse effect upon the transactions contemplated

by this Agreement.

 

3.             By

entering into this Agreement, it will not result in a breach of or constitute a

default under, any other existing agreements, contract or other document to

which it is a party.

 

9.             CHANGE OF

CONTROL OF VTAL.  If another

entity or company acquires 50% or more of VTAL during any time when this

Agreement is in effect, VTAL will have the right to assign the Agreement so

long as the acquiring company agrees to assume the royalty payment structure of

the Agreement.  Upon the effective date

of any change in control, however, the minimum royalty payment required under

Paragraph 4 (B) of this Agreement shall be increased by $           , unless the acquiring company

is already licensed under any of the Patents.

 

10.           TERM AND

TERMINATION.  The license

granted under this Agreement is perpetual. 

The obligation to pay royalties under this Agreement shall terminate on

the 10th anniversary of this Agreement, unless the Patents are found invalid or

unenforceable in a final, non-appealable judgment entered in a Court of the

United States.

 

A.            VTAL agrees that it

will not cooperate with, assist in, or challenge the validity or enforceability

of any of the Patents to the extent licensed hereunder so long as this

Agreement remains in effect.  It shall

not be a breach of the foregoing obligation to satisfy the requirements of law,

including actions taken to comply with the lawful orders or processes of courts

and other government agencies.  If VTAL

receives any subpoena or other legal process that purports to require or compel

such cooperation, assistance, or challenge, VTAL shall give PDx prompt written

notice thereof.  During the term of this

Agreement or so long as VTAL is paying royalties under this Agreement, PDx

agrees to vigorously enforce its right under the Patents.

B.            VTAL reserves the

right to terminate this Agreement at any time and cease paying royalties

hereunder, upon written notice to PDx. 

In the event of such termination, PDx has the right to enforce the

Patents against VTAL in any proceeding.

 

C.                  

Should VTAL fail to fulfill in any

material respect any of its obligations under this Agreement, which failure

shall remain uncured for 30 days following written notice thereof from PDx to

VTAL, PDx shall be entitled to terminate this Agreement upon written notice to

VTAL.

11.           SURVIVAL.  The following obligations survive

the termination of this Agreement.

A.            VTAL’s obligation

under Paragraph 5 of this Agreement to maintain true, correct, and accurate

reports covering the time period up to the date of termination, so that PDx

can, as requested, audit those reports;

 

B.            PDx’ s right to

receive payments, fees, and royalties accrued or accruable for payment prior to

such termination;

 

C.            Any cause of action

or claim of either party, accrued or to accrue, for breach of any of the terms

of this Agreement;

 

D.            All sublicenses

granted prior to the date of termination of by VTAL to a CT Endoscopy

Application and/or a VC Appliance; and

 

E.             Any other right or

obligation of either party under any other section of this Agreement.

 

12.           NON-DISCLOSURE. 

Each party represents and warrants that neither it nor its

directors, officers, agents and attorneys have publicized or disclosed to

anyone, and it agrees not to (and agrees not to permit its directors, officers,

agents and attorneys to) publicize or disclose (except pursuant to a signed

Confidentiality Agreement) to anyone: (i) the terms and conditions of this

Agreement, (ii) the substance of or circumstances surrounding the negotiation

of this Agreement, or (iii) the amounts or range of amounts agreed to be paid

by VTAL pursuant to this Agreement.  The

parties agree that promptly following the date hereof they shall make a joint

press release in the form of Exhibit B hereto, and thereafter shall make no

further press releases regarding this Agreement without the consent of the

other, which consent will not be unreasonably withheld.  It shall not be a breach of the foregoing

obligation as to non-disclosure and press releases to make disclosures

consistent in content and scope with the initial press release or as may be

necessary (a) as to the non-disclosure obligation only, in connection with the

preparation of a party’s tax returns or financial records; (b) in order to

satisfy the requirements of law; (c) in order to comply with the lawful orders

or processes of courts and other government agencies; or (d) in order to

enforce or comply with this Agreement. 

If either party receives any subpoena or other legal process that

purports to require or compel information that is protected under this

Agreement, it shall give the other party prompt written notice thereof.

 

13.           MISCELLANEOUS.

A.            VTAL shall have the

right to grant sublicenses with respect to any of the rights granted hereunder.

 

B.            No waiver or

modification of any of the terms of this Agreement shall be valid unless in writing.  No waiver by either party of a breach or

default of this Agreement shall be deemed a waiver of any future breach or

default.

 

C.            Whenever notice is

required to be given under this Agreement, a writing signed by the party

serving such notice and mailed by certified mail, return receipt requested, to

the other party, shall be deemed good and sufficient notice.  Such notices shall be addressed to the

parties at the last known addresses, but either party may change such address

by giving the other party notice thereof in the manner herein set forth.

 

D.            This Agreement shall

be construed in accordance with the laws of the state of North Carolina.  Any disputes regarding this Agreement shall

be resolved by an action filed in the courts of the State of North Carolina.

 

E.                  

This

Agreement contains the entire understanding of the parties with respect to the

subject matter hereof.  There are no

representations, warranties, promises, covenants, or undertaking other than

those hereinabove contained.  This

Agreement cannot be modified except by a separate written agreement signed by

both parties (or their representatives) to this Agreement

	

   

  	

   

  
	

   

  	

  /s/  Albert Emola

  
	

   

  	

  Albert Emola

  
	

   

  	

  President

  
	

   

  	

  Vital

  Images, Inc.

  
	

   

  	

   

  
	

   

  	

  /s/  David J. Vining, M.D.

  
	

   

  	

  David J.

  Vining, M.D.

  
	

   

  	

  Chief Executive Officer

  
	

   

  	

  PointDX, Inc.

  

 

EXHIBIT A

 

1.             United

States Patent No. 5,782,762, issued on July 21, 1998, from Patent Application

Serial No. 08/331,352, filed on October 27, 1994.

 

2.             PCT

Patent Application Serial No. PCT/US95/14022, filed on October 27, 1995 (based

on United States Patent Application Serial No. 08/331,352).

 

•       Australian Patent Application No.

41380/96, with an International Filing Date of October 27, 1995.

 

•       European Patent Application No.

95939644.1, with an International Filing Date of October 27, 1995.

 

•       Japanese Patent Application No. 8-514803,

with an International Filing Date of October 27, 1995.

 

•       Canadian Patent Application No.

2,202,401, with an International Filing Date of October 27, 1995.

 

•       United States Patent No. 6,083,162,

issued on July 4, 2000, from National Phase Patent Application Serial No.

08/817,901, filed on April 28, 1997.

 

3.             United

States Patent Application Serial No. 08/734,427, filed on October 16, 1996

(continuation of United States Patent Application Serial No. 08/331,352).

Patent Interference No. 104,366, settled, Judgment entered against Coin.

 

4.             United

States Patent No. 5,920,319, issued on July 6, 1999, from United States Patent

Application Serial No. 08/805,584, filed on February 25, 1997 (continuation-in-part

of United States Patent Application Serial No. 08/331,352).

 

5.             PCT

Patent Application Serial No. PCT/US98/03427, filed on February 23, 1998 (based

on United States Patent Application Serial No. 08/805,584).

 

•       Australian Patent Application No.

61804/98 with an International Filing Date of February 23, 1998.

 

•       European Patent Application No.

98906631.1 with an International Filing Date of February 23, 1998.

 

•       Japanese Patent Application No. 8-536,928

with an International Filing Date of February 23, 1998.

 

•       Canadian Patent Application with an

International Filing Date of February 23, 1998.

 

6.             United States Patent Application

Serial No. 09/299,061, filed on April 23, 1999 (continuation of 08/805,584)

 

7.             United

States Provisional Patent Application Serial No. 60/109,966, filed November 25,

1998, for Virtual Endoscopy with Improved Image Segmentation and Lesion

Detection.

 

8.             PCT

Patent Application Serial No. PCT/US99/28030 based on Provisional United States

Patent Application Serial No. 60/109,966, filed November 24, 1999.

 

9.             United

States Patent Application Serial No. 09/594,383, filed on June 15,2000

(continuation of United States Patent Application Serial No. 08/817,901).

 

EXHIBIT

B

 

FOR IMMEDIATE RELEASE

 

VITAL IMAGES SIGNS TECHNOLOGY LICENSE

AGREEMENT WITH POINTDx

Technology Supports

Vital Images’ CT Colonography Application

for Early Detection

of Colon Cancer

 

Minneapolis, July XX, 2001 – Vital Images,

Inc. (Nasdaq SmallCap: VTAL), a medical imaging software

company, has signed an agreement with PointDx, Inc. to license from PointDx

patents related to virtual endoscopy, a technique that uses software to

generate images of the inside of hollow organs, such as the colon and vascular

structures, from computed axial tomography (CAT) scan data.  Access to this technology will allow Vital

Images to enhance its CT colonography technology in Vitrea® 2, its

flagship software product.  Further, as

the company moves forward, the technology licensed in the patent portfolio will

support Vital Images’ expansion into additional markets with new

applications.  Under the terms of the

agreement, PointDx will also provide technical support and access to clinical

data to Vital Images.

 

“CT colonography is part of

Vital Images’ major growth strategy into the disease screening market,” said

Albert Emola, Vital Images’ president and chief executive officer.  “We have been on the forefront of CT

colonography by seeking out and incorporating the most innovative technologies.  We expect this technological partnership to

reinforce our market-leading position and to strengthen our intellectual

property portfolio.  More broadly, the

licensed patent portfolio covers both domestic and international markets and

strengthens our longer-term strategic position across a broad spectrum of

potential new applications.

 

“Vital Images is very

pleased with its relationship with PointDx and we expect some of this

technology to be included in new product offerings scheduled for release later

this year.”

 

“We are excited about working

with Vital Images. This dynamic company has the ability to rapidly implement

emerging technologies, such as that offered by PointDx,” said Dr. David Vining,

president and chief executive officer of PointDx.

 

Dr. Vining, credited as the

father of virtual colonoscopy, has developed, along with his team, many of the

fundamental concepts used in virtual endoscopy today.  Much of the work supporting the patents was performed at the Wake

Forest University School of Medicine in Winston-Salem, N.C., where Dr. Vining

holds a position as an associate professor of Diagnostic Radiology.

 

Virtual colonoscopy, or CT

colonography, is a visualization application that uses two- and

three-dimensional images of the colon to allow a physician to look for polyps

and tumors in the colon in a less invasive manner than traditional

colonoscopy.  According to many

physicians, the use of CT colonography will lead to a substantial increase in

the number of patients that will be screened for colon cancer.  Currently, patient compliance with screening

guidelines is low due to the discomfort, risk, expense and embarrassment

associated with conventional colonoscopy. 

CT colonography has the potential to improve patient compliance and save

lives by detecting tumors at an early stage.

 

Colon cancer is the third

most common cancer in the United States, with an estimated 130,000 new cases

and 48,000 deaths in 2000.  If detected

early, the survival rate is 90 percent or greater; in later stages, it is one

of the deadliest forms of cancer.

 

About PointDx, Inc.

 

PointDx, Inc., founded in

1999, is a medical software and information technology (IT) company that

produces integrated image analysis and structured reporting (SR) software for

the field of diagnostic radiology. “Although PointDx originated in the virtual

endoscopy arena, our company is now focused on bridging the gap between

advanced 3D medical visualization and the electronic medical record. The

company’s vision is to become a worldwide structured reporting standard with

its innovative technology.  PointDx’s

flagship product, REXä, uses a patent-pending

workflow scheme to rapidly construct and distribute Web-based, multimedia

radiology reports that will reduce costs, accelerate turnaround time and

improve reporting accuracy compared to conventional methods. Since the

company's technology addresses a large, unmet need with a worldwide market,

PointDx anticipates that REXä will revolutionize

radiology’s quality-of-service for healthcare providers, hospitals, and

patients. More information about PointDx and REXä can be found at the

company’s web site (www.pointdx.com).

 

About Vital Images, Inc.

 

Vital Images is a leading provider of 3D

imaging software for use in disease screening applications, clinical diagnosis

and therapy planning. The company's technology utilizes high-speed volume

visualization and analysis, as well as network communications based on DICOM

and Internet protocols. Vital Images cost effectively brings 3D visualization

and analysis into the day-to-day practice of medicine. Press releases, examples

of 3D medical imaging and other corporate information are available on Vital

Images’ Web site at www.vitalimages.com.

 

Except for the historical

information contained herein, the matters discussed in this news release are

forward-looking statements within the meaning of the Private Securities

Litigation Reform Act of 1995 that involve risks and uncertainties which could

cause results to differ materially from those projected, including dependence

on market growth, the timely availability and acceptance of new products, the

impact of competitive products and pricing, dependence on major customers,

fluctuations in quarterly results, third-party reimbursement, the availability

of capital and other risks detailed from time to time in the company's SEC

reports, including the company's most recent report on Form 10-K for the year

ended December 31, 2000 and most recent Form 10-Q for the quarter ended March

31, 2001.

 

# # #

Vitrea® is a

registered trademark of Vital Images Inc.Prepared by MERRILL CORPORATION

 

Exhibit 10.33

 

DEVELOPMENT, SUPPLY, MARKETING AND DISTRIBUTION AGREEMENT

 

THIS PRODUCT

DEVELOPMENT, SUPPLY, MARKETING AND DISTRIBUTION AGREEMENT (this “Agreement”) is

made and entered into as of October 24, 2001, by and between E-Z-EM, INC., a

Delaware corporation (“EZEM”) and Vital Images, Inc., a Minnesota corporation

(“VTAL”).

 

RECITALS:

 

WHEREAS, VTAL

is engaged in the development and manufacture of 2D and 3D visualization and

analysis software products for medical imaging;

 

WHEREAS, VTAL

and EZEM desire VTAL to develop a particular visualization and analysis

software product and grant to EZEM an exclusive, worldwide right to market such

software product, all in accordance herewith.

 

AGREEMENT:

 

NOW, THEREFORE, EZEM and VTAL

agree as follows:

 

1.             DEFINITIONS:

 

As used in this Agreement, the following terms shall have the meanings

indicated (whether used in the singular or plural form), unless otherwise

expressly provided:

 

1.1.          “Person” shall mean an

individual, a corporation, a partnership, an association, a joint venture,

limited liability company, government (or any agency or political subdivision

thereof), an unincorporated organization, a trust or other entity, including,

without limitation, an employee pension, profit sharing or other benefit plan or

trust.

 

1.2.          “Vitrea 2 Software”

means the current Vitrea® 2 software product of VTAL and any new versions

thereof made commercially available by VTAL (it being understood that VTAL

reserves the right to designate whether a software product constitutes a new

version of the Vitrea 2 software product or a new product).

 

1.3.          “Specification” shall mean the specification for the

virtual colonoscopy visualization and analysis software modules of the

Appliance and the Option, together with the agreed development activities and

timelines for development and release, as set forth in Exhibit 1.3 hereof;

provided that such specification is intended only as a general description of

the parties’ expectations with respect to the specification, goals and

timelines with respect to the Products and shall be initially established by

VTAL, and shall thereafter be subject to modification in accordance with

Section 2.4.

 

1.4.          “Option”means a virtual colonoscopy visualization

and analysis software product consistent with the Specification, which is

designed to be licensed as an option for use in conjunction with Vitrea

2 Software, or if VTAL so elects incorporated into the Vitrea 2 Software as a

standard feature.

 

1.5.          “Appliance” means a virtual colonoscopy visualization

and analysis software product substantially consistent with the Specification

which (i) is designed to be licensed and function on a standalone basis, that

is, without need for a separate license for Vitrea 2 Software and (ii) the principal

functionality of which is limited to CT virtual colonoscopy.

 

1.6.          “Appliance

Platform” shall mean the hardware and software

environment in which the Appliance will be designed to operate, which

environment is currently expected to be comprised of the hardware and software

identified in Exhibit 1.6 hereof.

 

1.7.          “Appliance

System” shall mean an integrated system comprised

of the Appliance and the Appliance Platform.

 

1.8.          “Products”means

the Appliance and the Option.

 

1.9.          “Affiliate” means, with

respect to a designated Person, any entity controlled by, in control of, or

under common control with such Person. 

For the purposes of this definition, “control” means ownership or

control, direct or indirect, of more than fifty percent (50%) of the voting

capital or equity participation of an entity, or the possession otherwise,

directly or indirectly, of the power to direct the management or policies of

such Person.

 

1.10.        “Non-Affiliate”

means, with respect to a designated Person, a Person which is not such Person

or an Affiliate thereof.

 

1.11.        “Appliance

System Sales Price” means the gross sales prices of an Appliance

System sold by EZEM or any EZEM Affiliates to a Non-Affiliate.

 

1.12.        “Intellectual Property” means all patents, patent applications and rights to

file patent applications throughout the world, including any substitutions,

extensions, reissues, renewals, divisions, continuations, or

continuations-in-part, and all copyrighted works, as well as any Confidential

Information, of a designated Person.

 

1.13.        “Claim” means any claim, suit, action, demand or judgment, whether

sounding in tort, contract or otherwise (including, without limitation, claims

based on theories of warranty or strict liability).

 

1.14.        “FOB Point” has the

meaning set forth in Section 6.3 of this Agreement.

 

1.15.        “Remedial Action” means any recall, field corrective action or other regulatory action

with respect to any Product taken either by virtue of applicable federal,

state, foreign or other law or regulation or good

business judgment.

 

1.16.        “Confidential

Information” shall mean all information designated by a party as

confidential and which is disclosed by VTAL to EZEM, is disclosed by EZEM to

VTAL, or is embodied in the Products, regardless of the form in which it is disclosed, relating to markets, customers, products, patents,

inventions, procedures, methods, designs, strategies, plans, assets,

liabilities, prices, costs, revenues, profits, organization, employees, agents,

resellers or business in general, or, in the case of VTAL, the algorithms,

programs, user interfaces and organization of the Products.

 

1.17.        “End User

Agreement” shall mean the end user Software License Agreement for the Products, in the

form attached hereto as Exhibit 1.17, or such other form as VTAL may from time

to time provide to EZEM.

 

1.18.        “Act” means the United States Food, Drug and Cosmetic Act, as

amended, and the regulations in force thereunder from time to time.

 

1.19.        “FDA” means the Food and

Drug Administration of the U.S. Department of Health and Human Services.

 

1.20.        “Government

Approval” shall mean any approvals, licenses, registrations or

authorizations of any federal, state or local regulatory agency, department,

bureau or other government entity, foreign or domestic, necessary for use,

marketing, sale or distribution of the Products in a regulatory jurisdiction,

including without limitation the FDA.

 

1.21.        “Territory” shall mean the

entire world.

 

1.22.        “Center of

Excellence” shall mean a radiology group or department with

significant clinical expertise in the area of CT colonography with whom both

VTAL and EZEM wish to develop a close cooperative relationship to promote CT

colonography.

 

1.23.        “Option

Sales Price” means the gross sales prices of an Option sold by

VTAL or any VTAL Affiliate to a Non-Affiliate of VTAL,and not rejected under an

acceptance/rejection provision substantially the same as that set forth in

Subsection 4.1(p), net to the extent otherwise included in

such sales price of any transportation charges, insurance charges and sales,

use, excise or other taxes, duties or imposts paid or allowed and any other

governmental charges imposed upon the importation, use or sale of the Option;

provided that if the Option is sold as an integral unsegregated part of Vitrea

2 Software, the gross sales price of an Option shall be comprised of only the

part of the price of such  Vitrea

2 Software allocable to the Option as reasonably determined by VTAL.  It is understood

that the Option Sales Price does not include charges for

hardware, software

other than the Option, services (including installation, training and

maintenance) or other fee or charges.  While EZEM acknowledges that VTAL has

complete discretion in pricing the Vitrea 2 Software and the Option, in the

event it discounts its software products, including the Option, sold together

from list price, such discount shall for purposes of determining the Option

Sales Prices be allocated ratably over such software products based on their

respective list prices.

 

1.24.        “Appliance Sales Price” means the gross

sales prices of an Appliance sold by EZEM or any EZEM Affiliate to a

Non-Affiliate of EZEM, net to the extent otherwise

included in such sales price of any transportation charges, insurance charges

and sales, use, excise or other taxes, duties or imposts paid or allowed and

any other governmental charges imposed upon the importation, use or sale of

such Appliance.  It is understood that

the Appliance Sales Price does not include charges for hardware, software other

than the Appliance, services (including installation, training and maintenance)

or other fee or charges.

 

1.25.        “Appliance Commercial Availability Date”

shall mean the earlier of the date on which the Appliance is first sold by EZEM

in the United States or thirty (30) days after the Appliance is available for

commercial sale in the United States based on (i) completion of an internal

“Letter to File” by VTAL (following FDA Guidance Document - January 10, 1997,

“Deciding when to Submit a 510(k) for a Change to an Existing Device”) or

clearance by the FDA of a Premarket Notification 510(k) submission for the

Appliance and (ii)

VTAL release of the Appliance for distribution, including but not limited to

the completion of VTAL’s obligation under Section 4.3.(a).

 

1.26.        “Allowable

Expense” shall mean the following expenses incurred by EZEM:

 

(a)           Any payments made pursuant to Article

9.3 (a), (b), (c), (d) and (e);

 

(b)           Any payments made by EZEM for the

purchase of the Appliance Platform;

 

(c)           Any transportation and freight

charges, insurance charges, sales, use, excise or taxes to the extent paid by

EZEM and not otherwise reimbursed, it being agreed that EZEM will seek to have

all charges and taxes of this type paid directly by, or reimbursed by, the

customer and in such event such charges and taxes shall not constitute

Allowable Expense; and

 

(d)           The $______ in fees paid to EZEM for

EZEM customer training.

 

1.27.        “Dealer

Associate” shall mean an agent appointed by EZEM to market and

distribute the Appliance in one or more countries or parts thereof outside of

the United States; provided that the identity of each Dealer Associate and the

terms of such appointment, which must be reflected in a written agreement, must

be approved in writing in advance by VTAL, such approval not to be unreasonably

withheld.

 

1.28.        “Service Associate” shall mean a person

appointed by EZEM to provide Appliance and Appliance System installation, and

perhaps training and warranty/maintenance service, to customers located in

countries or parts thereof outside of the United

States; provided that the identity of each Service Associate and the terms of such

appointment, which must be reflected in a written agreement, must be approved

in writing in advance by VTAL.

 

1.29.        “Primary

Countries” shall mean Canada, the United Kingdom, France,

Germany, Italy, Spain, the Benelux, 

Switzerland, Japan and Australia.

 

In addition to the foregoing,  terms such as “sale” and “purchase” and

variants and synonyms thereof are used herein for convenience only and refer to

transactions involving the grant of a software license for a Product.

 

2.             DEVELOPMENT.

 

2.1.          Development

Program.  VTAL will use

commercially reasonable efforts to develop the Products in accordance with the

Specification in accordance with the timeline set forth in Exhibit 1.3

 

2.2.          Government

Approvals.  VTAL shall, at its

cost and expense, be solely responsible for obtaining and maintaining, and

shall use commercially reasonable efforts to obtain and maintain Government

Approvals required for the fully authorized sale, distribution and use of the

Products in the USA, Canada and the countries of the European Union as

constituted on the date hereof.  VTAL

shall be solely responsible for obtaining and

maintaining, and shall use commercially reasonable efforts to obtain and

maintain Government Approvals required for the fully authorized sale,

distribution and use of the Appliance in Japan, however, EZEM and VTAL shall

split the out-of-pocket costs thereof equally (50/50), with cost reimbursement

paid within thirty days of VTAL invoice, to be issued no more often than

monthly.  EZEM shall provide such

cooperation in connection therewith as VTAL shall reasonably request.  Should EZEM desire from time to time to market

and sell the Appliance in countries in addition to those referenced above in this

Section 2.2 it shall so notify VTAL in writing, and thereafter VTAL shall use

commercially reasonable efforts to obtain and maintain Government Approvals

required for the fully authorized sale, distribution and use of the Appliance

in such other countries, and EZEM and VTAL shall split the out-of-pocket costs

thereof equally (50/50), with cost reimbursement paid within thirty days of

VTAL invoice, to be issued no more often than monthly.  EZEM shall provide such cooperation in

connection therewith as VTAL shall reasonably request.  Upon EZEM’s request, VTAL shall seek to

provide estimates of the cost of obtaining and maintaining any Government

Approvals. 

In no event shall VTAL incur cost that would obligate EZEM to reimburse

VTAL in excess of $25,000 without obtaining prior written approval from EZEM.

 

2.3.          Non-Recurring Engineering Charges.  In connection with the design, engineering,

and development of the initial versions of the Products,  EZEM shall pay VTAL a total of $______ as a

non-recurring engineering charge.  Such

payments shall be made in accordance with the following schedule:

 

(a)           $_______ shall be due upon the execution of this Agreement;

 

(b)           $______ shall be due

upon completion of an internal “Letter to File” by VTAL (following FDA Guidance

Document - January 10, 1997, “Deciding when to Submit a 510(k) for a Change to

an Existing Device”), or a Premarket Notification 510(k) submission to the FDA

for the Appliance, whichever is

deemed appropriate by VTAL; and

 

(c)           $______ shall be due on the Appliance

Commercial Availability Date.

 

The parties agree and acknowledge that all Intellectual Property

developed by VTAL, whether existing as of the date of this Agreement or

developed hereafter, shall remain its sole and exclusive property notwithstanding

the payment of such non-recurring engineering charge.

 

2.4.          Upgrades.  The parties shall meet twice annually to

discuss the evolution of and upgrades to the Products and the associated

engineering and development costs.  If

as a result of such discussion the parties agree to an upgrade to both the

Option and Appliance, VTAL shall use commercially reasonable efforts to

implement such upgrade to the Option and the Appliance and the cost thereof

shall be shared equally by the parties.  In the event EZEM does not desire to share

the cost of a proposed upgraded desired by VTAL, VTAL may elect to so upgrade

the Option, or in its discretion the Option and the Appliance, at its

expense.  In the event VTAL does not desire

to share the cost of a proposed upgrade desired by EZEM, upon the written

request of EZEM VTAL shall use commercially reasonable efforts to implement

such upgrade to the Appliance at the cost of EZEM.

 

3.             APPOINTMENT

 

3.1.          Scope.  Subject to the terms and conditions of this

Agreement, VTAL hereby appoints EZEM as VTAL’s exclusive reseller of the

Appliance during the term of this Agreement in the Territory, and EZEM hereby

accepts such appointment; provided that :

 

(a)           If this appointment becomes

non-exclusive as described in Section 3.1.(b) or Section 3.2, VTAL may itself

distribute the Appliance or appoint GE, Siemens or Philips or other appropriate

party as a non-exclusive distributor and market and sell the Appliance under

such trademarks as VTAL shall select, and

 

(b)           in the event that EZEM does not (i)

during the two year period ending on the fifth anniversary hereof sell at least

one hundred and twenty-five percent (125%) of the number of Appliances it sold

during the two year period ending on the third anniversary hereof; (ii) during

the two year period ending on the seventh anniversary hereof sell at least one

hundred and twenty-five percent (125%) of the number of Appliances it sold

during the two year period ending on the fifth anniversary hereof; or (iii)

during the two year period ending on the ninth anniversary hereof sell at least

one hundred and twenty-five percent (125%) of the number of Appliances it sold

during the two year period ending on the seventh anniversary hereof, such

appointment shall become non-exclusive without further action by the parties as

of the end of the two year period during which a shortfall occurs.

 

So long as such appointment shall remain exclusive,

VTAL shall (i) refer all inquiries concerning the Appliance to EZEM and (ii)

not supply, market or sell the Appliance, either

directly or indirectly, on its own, through distributors, sub-distributors or

sub-licensees or on an OEM basis and (iii) EZEM shall be  authorized to hold itself out as the only

authorized seller of the Appliance in the Territory. 

Should such appointment become non-exclusive, VTAL agrees that it will

nevertheless not, so long as this Agreement remains in effect, appoint as a

distributor of the Appliance Bracco, Tyco/Mallinckrodt, Nycomed or Schering

AG/MedRad or any of their Affiliates, including their subsidiaries.  

 

3.2.          Dealer

and Service Associates.  EZEM

will market the Appliance in the United States only directly to customers,

however, the parties anticipate that Dealer Associates and/or Service

Associates will be utilized in some or all of the balance of the

Territory.  The parties shall discuss

the best means of selecting such Dealer and Service Associates and promoting

the sale and support of Appliances in markets outside the United States.  VTAL shall, upon EZEM’s request and at EZEM’s

expensecooperate

in assisting EZEM in seeking to appoint VTAL’s Vitrea 2 Software, as well

as other, dealers as Dealer Associates. 

The parties agree that the Appliance may not be sold through a Dealer

Associate outside the United States except to the extent that such relationship

has been established with a mutually acceptable Dealer Associate in the country

or part thereof where the Appliance is to be installed and maintained.  EZEM shall remain fully liable for the

performance of any Dealer or Service Associate and EZEM hereby indemnifies and

holds VTAL harmless from all damages, losses, costs or expenses arising in any

manner from any act or omission on the part of any Dealer Associate.  If no sales of an Appliance shall have taken

place in a Primary Country within eighteen (18) months of the later of (i) VTAL

release of the Appliance for distribution and (ii) the date that Government

Approvals required for the fully authorized sale, distribution and use of the

Appliance in such country are obtained, the appointment set forth in Section

3.1 shall become non-exclusive with respect to such country without further

action by the parties as of the end of such eighteen (18) month period.

 

3.3.          Exception at Customer Insistence.  In the event that a prospective customer

approaches VTAL and insists that it obtain an Appliance directly from it and

not through EZEM, or in the event that EZEM approaches a prospective customer

which takes the same position, the party so informed by such potential customer

shall so inform the other party, and the Chief Executives of the parties shall

promptly discuss and resolve the situation.  VTAL shall not, however, make such sale

without the approval of EZEM, which approval may not be unreasonably withheld.

 

4.             GENERAL OBLIGATIONS OF EZEM

 

4.1.          Marketing.  EZEM shall have the following obligations

with respect to the marketing and distribution of the Appliance; provided that

the obligations set out in Subsections (a), (k), (l) and (o) shall not apply to

the extent that the appointment hereunder shall become non-exclusive with

respect to the United States.  The

obligations set out in Subsections (k), (l) and (o) shall not apply in any

country or part thereof in the Territory in all or part of which the

appointment hereunder shall become non-exclusive:

 

(a)           To use its

commercially reasonable efforts to further the promotion, marketing and

distribution of the Appliance in the Territory.  It is EZEM’s obligation to expend at least _____________ dollars

($__________) on clinical, marketing and sales support of the Appliance and

Centers of Excellence during the two years following the Appliance Commercial

Availability Date;

 

(b)           To obtain from each

end user an End User Agreement, which has been signed by an authorized

representative of the customer;

 

(c)           To promptly respond

to all inquiries or complaints from its customers, recognizing, however, that

Appliance System installation services and Software Maintenance are to be

provided as set out in Subsection 6.5 and Section 7;

 

(d)           To provide or cause

to be provided by qualified personnel reasonably acceptable to VTAL training to

each customer in use of the Software Appliance in accordance with VTAL

guidelines and procedures as communicated by VTAL from time to time,;

 

(e)           To acquire or cause

to be acquired by the customer the Appliance Platform in the configuration

designated by VTAL;

 

(f)            To provide VTAL

with appropriate details of all complaints and bugs found in the Appliance,

whether such complaints or bugs were discovered by EZEM or customers of EZEM;

 

(g)           To investigate all

leads with respect to potential customers for the Appliance in the Territory

who are referred to EZEM by VTAL;

 

(h)           To maintain an

adequately trained and staffed sales and technical support group for the

marketing, sales, training, and support of the Appliance in the United States;

 

(i)            To take all commercially reasonable

steps to ensure that EZEM, its Affiliates or a Dealer Associate selected in

accordance herewith maintains an adequately trained and staffed sales and

technical support group for the marketing, sales, training, installation and

support of the Appliance throughout the Territory outside of the United States;

 

(j)            To provide, and

cause Dealer and Service Associates to provide, appropriate sales and technical

support staff for training by VTAL at any mutually-agreeable location;

 

(k)           To participate, in

its sole discretion and where commercially reasonable in fairs and exhibitions

in the Territory where such participation will promote the Appliance; and to

develop and implement its own internal programs for the promotion of the

Appliance;

 

(l)            To provide VTAL

with reports of its activities and other information regarding the Appliance in

the Territory in such detail and with such frequency as is reasonably requested

by VTAL;

 

(m)          To conduct its

business in a professional manner, which will reflect positively upon VTAL and

the Appliance;

 

(n)           To provide VTAL with

customer registration information as is reasonably required by VTAL;

 

(o)           To meet with VTAL

(i) not less often than every six (6) months at a location proposed

alternatively by VTAL and EZEM and approved by 

the other party, which approval may not be unreasonably withheld, to

discuss development, service, installation, marketing, clinical and other support

programs,  and selling issues and (ii)

not less often than every two (2) years to review the strategic plan and any

issues relating to the implementation of this Agreement and the business

relationship contemplated thereby;

 

(p)           To determine after installation

of the Appliance whether it conforms to the Specification.  Neither 

EZEM nor the end-user shall have any right of return of an Appliance

unless VTAL receives written notice of such non-conformity and the basis

therefor within thirty (30) days after such installation.  VTAL’S SOLE AND EXCLUSIVE REMEDY WITH

RESPECT TO ANY RIGHTFUL RETURN (WHICH IS IN LIEU OF ANY RIGHTS OF ACCEPTANCE OR

REJECTION) SHALL BE (I) TO PROVIDE AND CAUSE TO BE INSTALLED AN APPLIANCE

CONFORMING WITH THE SPECIFICATION WITHIN THIRTY (30) DAYS OF THE DATE VTAL IS

PROPERLY NOTIFIED OF SUCH RETURN, FAILING WHICH (II) VTAL SHALL CREDIT EZEM

WITH THE AMOUNT PAID FOR THE APPLIANCE, ITS INSTALLATION AND MAINTENANCE;

provided that no such right of return shall apply to any Appliance licensed

under the Demonstration License referred to in Section 4.2.

 

(q)           To abide by all applicable laws and

regulations in the Territory, including, if applicable, the U.S. Export

Administration Regulations and the U.S. Foreign Corrupt Practices Act.

 

4.2.          EZEM

Demonstration License.  EZEM

shall maintain up to fifteen (15) software licenses for

the Appliance at no cost to EZEM solely for its own customer demonstration and promotional uses,

subject to the provisions of the Demonstration License Agreement attached

hereto as Exhibit 4.2.  VTAL will provide additional  software licenses, at no cost, as reasonably

requested by EZEM to support EZEM’s sales and marketing efforts.

 

4.3.          Promotional Materials and

Appliance Packaging.

 

(a)           VTAL shall be

responsible for the development of data sheets, brochures and other marketing

materials for the Option in the English language, and if it so elects in other

languages.  Such materials shall be made

available by VTAL for EZEM, which may use such materials to develop parallel

materials  with respect to the Appliance

at its expense.  Such parallel materials

shall be submitted to VTAL for review and approval prior to being provided to

any third party, such approval not to be unreasonably withheld.  In the event that EZEM submits marketing and

sales materials relating to the Appliance to VTAL, VTAL shall review such

materials and respond to EZEM within four (4) weeks following submission by

EZEM.  The parties agree that it is

their intention that the Appliance be identified so long as the appointment

contained in Section 3.1 shall remain exclusiveas a product developed,

manufactured and supplied by VTAL and offered, marketed and sold exclusively by

EZEM, and the materials developed by EZEM in accordance with the foregoing

shall be consistent with such intention.

 

(b)           In the event EZEM

desires to develop its own marketing and sales materials relating to the

Appliance it may do so, subject to the understanding that the Appliance will be

identified so long as the appointment contained in Section 3.1 shall remain

exclusiveas a product offered jointly by the parties and subject to review

and approval of such materials by VTAL, such approval  not to be unreasonably withheld. 

In the event that EZEM submits marketing and sales materials relating to

the Appliance to VTAL, VTAL shall review such materials and respond to EZEM

within four (4) weeks following submission by EZEM.  In no event shall EZEM distribute any promotional materials for

or related to the Appliance that have not been previously approved in writing

by VTAL.

 

(c)           The parties agree

that the Appliance and Appliance packaging, manuals and labeling shall identify

both VTAL and EZEM in equal prominence. 

Prior to release of the Appliance and the Appliance packaging, manuals

and labeling, the parties shall meet to discuss and mutually agree on the

placement and reference to both VTAL’s and EZEM’s respective trademarks and/or

trade names.

 

4.4.          Ownership and Reverse Engineering.  EZEM hereby acknowledges VTAL retains all right,

title and interest in and to the copyrights and other intellectual property protecting

or embodied in the Products and that the Appliance is to be distributed to

EZEM’s customers only through the End User Agreement.  EZEM shall not reverse engineer, decompile or disassemble the

Appliance.

 

4.5.          Competing

Products.  During the term of

this Agreement, EZEM shall not manufacture, clinically test, sell, rent,

market, distribute, promote or solicit the sale of any software products which

permit virtual endoscopy.  The

obligations of this Section 4.5 shall not apply to any particular country in

the Territory or the entire Territory to the extent that the appointment

hereunder shall become non-exclusive with respect to such country in the

Territory or the entire Territory.

 

4.6.          EZEM

Expenses.  EZEM assumes full

responsibility for all its own costs and expenses incurred in carrying out its

obligations under this Agreement, including but not limited

to all rents, salaries, commissions, advertising, demonstrations, travel and accommodations; provided, however, VTAL will

provide to EZEM at no charge the following items:

 

(a)           Training for a

reasonable number of EZEM’s sales and technical support staff, at VTAL’s

facilities or at any other mutually-agreeable location, in the function and

application of the Appliance; provided, however, EZEM shall pay the salaries

and all transportation and living expenses for its staff; and

 

(b)           A reasonable

quantity of VTAL’s then-current End User Agreement (or electronic media in lieu

thereof), provided, however, EZEM shall immediately stop using all superseded

versions of the End User Agreement upon its receipt of a new version of the End

User Agreement from VTAL.

 

5.             GENERAL OBLIGATIONS OF VTAL

 

5.1.          General Obligations.  VTAL shall have the following obligations

with respect to performing its obligations hereunder:

 

(a)           To use its

commercially reasonable efforts to timely manufacture and supply  such quantity of ordered Appliances that

EZEM and/or its customers orders and to manufacture and supply the Appliance in

accordance with the Specifications;

 

(b)           To abide by all

applicable laws, rules and regulations in the Territory, including without

limitation those portions of the Act, as amended, which apply to the

manufacture and distribution of medical software and devices, current FDA

Quality System Regulations and the U.S. Foreign Corrupt Practices Act;

 

(c)           To provide or cause to be provided

adequate training and instruction to EZEM personnel in order to allow them to

properly sell to and train EZEM customers;

 

(d)           To provide EZEM with

appropriate details of all material complaints and bugs found in the Appliance

or Option, whether such complaints or bugs were discovered by VTAL, customers

of VTAL, EZEM or customers of EZEM;

 

(e)           To maintain an

adequately trained and staffed technical, engineering and manufacturing support

group in order to fulfill its obligations hereunder;

 

(f)            To conduct its

business in a professional manner, which will reflect positively upon EZEM and

the Appliance;

 

(g)           To maintain

adequately trained technical staff to respond or assist EZEM in responding to

questions and/or problems concerning the Appliance System from EZEM or EZEM

customers;

 

(h)           To assist EZEM in

acquiring from third party suppliers designated by VTAL the Appliance Platform;

 

(i)            To provide and

maintain adequately trained staff for the installation and maintenance of the

Appliance System in the United States.

 

5.2.          VTAL Expenses.  VTAL assumes full responsibility for all its

own costs and expenses incurred in carrying out its obligations under this

Agreement.

 

6.             ORDERS

FOR PRODUCTS

 

6.1.          Purchase

Orders.  EZEM shall submit

purchase orders for the Appliance to VTAL in writing

(preferably by facsimile) at least fifteen (15) business days prior to its

confirmed delivery date of the Appliance (it being understood that installation

will be provided in accordance with then current lead-times), which orders

shall include the following information:

 

(a)           Customer

identification information, including, but not limited to name, address,

telephone and facsimile numbers;

 

(b)           Quantity of copies;

 

(c)           Requested delivery

and installation dates;

 

(d)           Shipping

instructions and shipping address; and

 

(e)           If applicable, any relevant export

control information or documentation to enable EZEM and VTAL to comply with

applicable U.S. export control laws.

 

6.2.          Acceptance

of Orders.  All purchase orders

from EZEM are subject to acceptance by VTAL.

 

6.3.          Delivery

Terms.  All deliveries of the

Appliance shall be from VTAL’s or its designated vendor’s facilities.  VTAL shall charge EZEM reasonable and

customary shipping charges for the shipment of any Appliance to EZEM or the

customers, as EZEM shall designate in its purchase

order.  All risk of damage to or loss or

delay of the Appliance shall pass to EZEM upon their delivery to (i) a common carrier,

or (ii) an agent or any other person specified by EZEM acting on behalf of

EZEM.

 

6.4.          Terms

of Orders and Acceptances.  All

purchase orders, acceptances and change orders shall be subject to all

provisions of this Agreement, whether or not the purchase

order, acceptance or change order so states, and any terms or conditions of such purchase order, acceptance or change order which

conflict with the terms or conditions of this Agreement shall be deemed

excluded and of no legal effect as between the parties except as expressly

agreed upon in a writing signed by both parties.  An accepted purchase order may be modified or canceled up to the

time of shipment to the customer.  VTAL

may ship its latest authorized version or release of an Appliance in response

to any accepted purchase order.

 

6.5.          Installation

of Appliance.  For each customer

purchasing a license for the Appliance in the United States, the licensing fee

shall include installation of the Appliance System.  Prior to installation, VTAL shall have received an original End

User Agreement signed by an authorized representative of the customer.  VTAL shall be responsible for providing,

either directly or indirectly, the installation services for each Appliance

System sold in the United States.

 

7.             SOFTWARE MAINTENANCE SERVICES

 

For each customer purchasing a license for

the Appliance in the United States, the licensing fee shall include software

maintenance for a period of one (1) year. 

Thereafter Software Maintenance shall be provided under an annual

maintenance arrangement with the customer. 

VTAL shall be responsible for providing, either directly or indirectly

(i) first tier maintenance services for each Appliance sold in the United

States and (ii) second tier maintenance and support for each Appliance sold in

the Territory outside of the United States.

 

8.             CENTERS

OF EXCELLENCE

 

EZEM shall use commercially reasonable

efforts to enter into arrangements with not less than three nor more than five

institutions from among those identified in Exhibit 8.1, or such other

institutions, if any, as upon which the parties may agree in writing, to

establish and manage Centers of Excellence to validate and promote the use of

virtual colonoscopy and the use of the Appliance and/or Vitrea 2 with the

Option.  VTAL shall cooperate and assist

EZEM, at VTAL’s expense, in the establishment of each Center of Excellence as

EZEM shall reasonably request, and VTAL shall further supply (without charge

subject to the last sentence of this Section) one Appliance per Center of

Excellence or at its discretion one Option if such Center already licenses a Vitrea

2 Software product, together with installation of such Appliance or Option, as

the case may be, and maintenance thereof. 

Except as specifically set forth above, EZEM shall bear all cost

associated with the establishment and support of each Center of Excellence,

including cost of training with respect to use of the Appliance, which EZEM

agrees to provide to each Center.  Any

revenue derived from the sale of an Appliance to a Center for Excellence shall

be shared equally by the parties.

 

9.             PRICING, PROFIT SHARING AND OTHER COMPENSATION

 

9.1.          Pricing, Billing and Collection.  EZEM

shall have the unilateral right to determine the Appliance System Sale Price of

each Appliance System, as well as the Appliance Price if it is sold without the

Appliance Platform; provided that such price shall in

any event

cover the costs each party is entitled to recover as described in Section

9.3.  EZEM shall invoice the customer

for each Appliance System sold and shall use commercially reasonable efforts to

collect all invoices.

 

9.2.          United

States Sales.  With respect to

each Appliance System sold for installation in the United States, EZEM shall

order from VTAL the Appliance and Appliance installation, as well as first year

warranty/maintenance services, all of which will be bundled with the Appliance

System and the costs for which shall be included in the Appliance System Sale

Price.  VTAL agrees to schedule

Appliance and, when ordered Appliance System, installation on the same basis

as, and so as not to discriminate in favor of, the Option and Vitrea

2 Software installation, and VTAL shall provide not less frequently than once

per quarter reasonable evidence thereof on the request of EZEM.  Maintenance services

after the first year will be provided under an arrangement between VTAL and the

customer.

 

VTAL agrees to a reduction in the payment to

VTAL with respect to an Appliance pursuant to Section 9.3 for delays in

installing such Appliance  according to

the following schedule:

 

(a)           If installation of

an Appliance does not occur within sixty (60) business days of the submission

of a completed customer checklist and order for such Appliance, VTAL need not

be paid the installation fee contemplated by Section 9.3(c) with respect to

such Appliance; and

 

(b)           In addition, if

installation of an Appliance does not occur within ninety (90) business days of

the submission of a completed customer checklist and order for such Appliance,

the fee payable to VTAL with respect to such Appliance pursuant to Section

9.3(e) shall be reduced by _________ dollars ($______).

 

The parties

further agree that:

 

(1)                   in the event

that (i) a customer requests an installation date later than the timeframes

described above, (ii) there is a delay in VTAL’s receipt of a duly signed End

User Agreement from a customer which adversely impacts the ability of VTAL to

install the Appliance in accordance with the then existing schedule, (iii) a

confirmed installation date is changed due to customer request, (iv) there is a

delay in receipt of the Appliance Platform which adversely impacts the ability

of VTAL to install the Appliance in accordance with the then existing schedule

or (v) any other matters beyond VTAL’s direct control adversely impact the

ability of VTAL to install the Appliance in accordance with the then existing

schedule, a revised installation date will be established and confirmed by

agreement of VTAL, EZEM and the customer; and

 

(2)                   if a payment

is made which is not in conformity with Subsection (a) or (b) of this Section

(e.g., VTAL is paid the installation fee described in Section 9.3(c)

notwithstanding that installation of an Appliance occurred more than sixty (60)

business days following submission of a completed customer checklist and order

for such Appliance), EZEM shall have the right to recover such payment by

offset against amounts otherwise payable to VTAL under Sections 9.3 and/or 9.4

with respect to such Appliance.

 

9.3.          Reimbursement

and Payments from Appliance System Sales Price for Sales

within the United States.  EZEM

shall make the following payments to VTAL for Appliance sales within the United

States :

 

(a)

 

(b)

 

(c)

 

(d)

 

(e)

 

VTAL agrees to

notify EZEM in writing within ten (10) business days of each Adjustment Date of

the average sales price of the Option (excluding sales to collaboration sites

as identified in Exhibit 9.3) during the six (6) month period ending on such

Adjustment Date.  Any payments made to

VTAL in accordance with the foregoing shall be made within thirty (30) days of

the date of VTAL’s invoice, which invoice may be issued any time on or after

the date of shipment of the Appliance by VTAL to the location specified in the

purchase order pursuant to Section 6.1; provided that the date such

payment is required to be made following invoice in accordance with the

foregoing shall be delayed by a day for each day by which shipment occurs more

than ten (10) days prior to the confirmed installation date.

 

9.4.          Profit Payment.  Subject to Paragraph 9.2, EZEM shall pay VTAL with respect to

each Appliance licensed to a customer hereunder for United States Installation

(except as provided in Section 4.2) _______ percent (___%) of the excess, if

any, of the Appliance System Sale Price, or the

Appliance Price if no Appliance Platform is provided by EZEM, payable by such

customer minus the sum of (i) Allowable Expenses payable in connection with

such sale, (ii) an amount equal to the amount paid to VTAL under Subsection

9.3(e) (which equal amount EZEM may retain for its own account) and (iii) the

amount of any reduction in payment incurred in connection with such sale as set

forth in Subsections 9.2(a) and/or(b).  Such payment shall

be made within thirty (30) days of the close of the calendar quarter during

which such Appliance was shipped.  An example of the computations required by

this Section 9.4 is set forth in Exhibit 9.4.

 

9.5.          Royalties.  VTAL shall pay to EZEM an amount equal to

_______ percent (___%) of the Option Sales Price for each Option.  Such payment shall be made within thirty

(30) days of the close of the calendar quarter during which such Option was

shipped.

 

9.6.          Sales Outside of United States.  For each Appliance purchased hereunder and

sold by EZEM or a Dealer Associate for installation outside of the United

States, EZEM shall pay to VTAL _________ Dollars ($______), plus the amount of

any transportation and freight charges, insurance charges, sales, use, excise or

taxes, import or export duties or taxes, imposts paid or allowed and any other

governmental charges imposed upon the importation, exportation, sale,

distribution and use of the Appliance or the Appliance System to the extent

paid by VTAL and not otherwise reimbursed, within thirty (30) days of the date

of VTAL’s invoice, which invoice may be issued any time on or after the date of

shipment of the Appliance by VTAL. 

Payment of this amount with respect to an Appliance shall entitle EZEM

during the year following delivery to secondary

warranty/maintenance services provided by VTAL with respect to the Appliance,

it being understood that EZEM or its Dealer or Service Associate shall provide

the first level of warranty/maintenance service, meaning that it shall use commercially

reasonable efforts to resolve warranty/maintenance issues without VTAL

intervention.  For

the avoidance of doubt, EZEM shall not be obligated in connection with any such

sale to reimburse VTAL for the cost of any royalties or other payments payable

to any third party with respect to the sale of an Appliance.

 

9.7.          Record-keeping; Inspection and Audit.  EZEM and VTAL respectively agree to keep and

maintain accurate records throughout the term of this Agreement of all sales of

Appliance Systems and Options sufficient to permit calculation/confirmation of

the amounts payable under this Article 9, but shall only be required to

maintain such records for a period of five (5) years after the end of the

calendar quarter to which such records relate. 

Each party shall have the right, from time to time during the term of this Agreement, upon twenty (20) days written notice to the

other and at the notifying party’s expense, to have an independent certified

public accountant reasonably acceptable to the notified party, audit the books

or accounts relating to calculation/confirmation of the such amounts payable to

the extent necessary to verify the facts necessary to determine the accuracy

thereof.  The notifying party shall bear

the cost of any such accounting by it, unless the audit shows a discrepancy in

such party’s favor of more than 10%, in which case the other party shall be

responsible for all costs and expenses related to the audit.  Each party agrees to treat the other’s

books, accounts, and records as confidential at all times.

 

9.8.          Most “Favored Buyer” and Comparative

End-User Provisions.  In

the event that the appointment of EZEM hereunder becomes non-exclusive with

respect to the United States and:

 

(a)           thereafter VTAL sells the Appliance to

another distributor for installation in the United States at rates, terms and

conditions that are overall and in the aggregate substantially more favorable

to such other distributor than the rates, terms and conditions hereof are

favorable to EZEM, then VTAL will notify EZEM thereof in writing (the “MFB

Notice”).  EZEM shall have the option,

by giving written notice to VTAL (the “Election Notice”) within sixty (60) days

of delivery to it of the MFB Notice, to elect (i) to continue to acquire the

Appliance for installation in the United States under the terms of this

Agreement in effect on the date hereof or (ii) to substitute therefor such

substantially more favorable rates, terms and conditions as described in the

MFB Notice for such installations only, effective as of the later of (y) the

first EZEM order for the Appliance for installation in the United States after

the more favorable rates, terms and conditions are granted to such other

distributor and (z) the date of delivery of the Election Notice.  It is further agreed that if such

substantially more favorable rates, terms and conditions cease to be available

to such other distributor with respect to installations in the United States

and EZEM elected to substitute for the terms in effect on the date hereof such

substantially more favorable rates, terms and conditions, then the rates, terms

and conditions hereof shall be reinstated with respect to EZEM as of the date

of such cessation, which reinstatement, however, shall be without prejudice to

the further application of this Subsection (a) thereafter, and

 

(b)           during the twelve (12) month period

following the date such appointment became non-exclusive, or during any twelve

(12) month period following any anniversary of such date while such

non-exclusive appointment remains in effect, the average sales price of VTAL

for Appliances sold directly to end-users for installation in the United States

is less than  the average sales price of

all sales by EZEM of the Appliance for installation in the United States during

the twelve (12) months preceding such date, VTAL will so notify EZEM in writing

within thirty (30) days of the close of such twelve (12) month period.  Upon EZEM’s written request thereafter, VTAL

shall meet with EZEM at a time (on a business day within thirty (30) days of

delivery of such request) and place designated by VTAL subject to the approval

of EZEM, which approval may not be unreasonable withheld, at which meeting the

parties will negotiate in good faith an equitable reduction, to be effective

retroactively from and after the date of EZEM’s written request for such

negotiation, to the minimum prices payable to VTAL by EZEM for each Appliance.

 

In the event that

pricing adjustments are called for under the terms of by both Subsection 9.8(a)

and 9.8(b), EZEM may elect to proceed under either provision.

 

9.9.          Overdue

Payments.  If and for so long as

any payment from a party under this Agreement shall be overdue VTAL reserves

the right to withhold or suspend shipment of the Appliance to EZEM and/or its customers if

there is an unsettled outstanding balance owed by EZEM to VTAL for more than

forty-five (45) days beyond the agreed upon due date, subject to its having

given to EZEM at least ten (10) business days prior written notice of its intent

to exercise such right of withholding or suspension and the reason therefor.  EZEM reserves the right to offset any

unsettled outstanding balance owed by VTAL to EZEM against payments due to

VTAL, subject to its having given to VTAL at least ten (10) business days prior written notice of its intent to

exercise such right of setoff and the reason therefor.

 

10.           ADVERSE REACTIONS; PRODUCT RECALLS

 

10.1.        Compliance.

 VTAL and EZEM shall each comply

with all applicable regulatory requirements, including the provision of

information by EZEM to VTAL necessary for VTAL to comply with its medical

device reporting requirements to the FDA or any other comparable regulatory

body elsewhere in the world.  VTAL and

EZEM shall each comply with all health registration laws, regulations and

orders of any government entity within the Territory and with all other

governmental requirements relating to the promotion, marketing and sale of the

Appliance in each country in the Territory. 

EZEM shall submit all advertising claims to VTAL for written approval

prior to their first use by any party, such consent not to be unreasonably

withheld. 

VTAL shall review such advertising claims and respond to EZEM within

four (4) weeks following submission by EZEM.

 

10.2.        Adverse

Event Reporting.  Each party

shall advise the other party  by

telephone or facsimile, within twenty-four (24) hours after it becomes aware of

any adverse event from the use of any Appliance.  VTAL shall be responsible for contacting the

FDA or any other comparable regulatory agency elsewhere in the world as

required in the event of any adverse events regarding the Appliance.  EZEM shall cooperate

with VTAL regarding the investigation of any adverse events relating to the

Appliance.  VTAL shall advise

EZEM, by telephone or facsimile, within forty-eight (48) hours after it becomes

aware of any adverse event from the use of the Option which may adversely

impact or affect the Appliance or Appliance System.

 

10.3.        Corrective

Action.

 

(a)           Notice of Corrective Action.  If VTAL believes that a corrective action

with respect to the Appliance is desirable or required by law, or if any

governmental agency having jurisdiction (including, without limitation, the

FDA) shall request or order any corrective action with respect to the Appliance,

including any recall, customer notice, restriction, change, corrective action

or market action or any Appliance change, VTAL shall promptly notify EZEM.  Any and all corrective actions with respect

to the Appliance shall be conducted at the expense of VTAL, except costs

associated with notifying customers of such corrective action.  EZEM shall maintain complete and accurate

records, for such periods as may be required by applicable law, of all

Appliances sold by it and any of its Dealer Associates.  The parties shall cooperate fully with each

other in effecting any corrective action with respect to the Appliance pursuant

to this Section 10.3, including communication with any customers, and EZEM and

its Dealer Associates shall comply with all reasonable directions of VTAL

regarding such corrective action.  This

Section 10.3 shall not limit the obligations of either party under law

regarding any corrective action with respect to the Appliance required by law

or properly mandated by governmental authority.

 

(b)           Refund.  If any Appliance is required to be returned

to VTAL pursuant to this Section 10.3 and no replacement is provided therefor

by VTAL, VTAL shall refund to EZEM the amount paid to VTAL for the Appliance

hereunder, less a reasonable value for use determined by prorating the license

fee paid on a thirty-six (36) month straight-line depreciation method from the

installation date.  If no such return is

required within thirty-six (36) months of the installation date, no part of

such cost will be refunded.  EZEM shall

provide a like refund to its customers.

 

(c)           Inspections. 

VTAL will notify EZEM within two (2) business days of the completion of

any inspection activity directed at the Appliance by any regulatory authority,

including without limitation the FDA, and shall promptly provide EZEM with the

results therefrom, including without limitation any FDA form 483 or warning

letters.

 

11.           WARRANTIES AND REPRESENTATIONS;

INDEMNIFICATION;

INSURANCE

 

11.1.        Appliance

Warranties to Customers.  VTAL

warranties with respect to the Appliance shall arise only under the End User

Agreement.  EZEM shall in no event make any other warranties with respect to an Appliance,

whether on behalf of VTAL or on behalf of EZEM to any third party.

 

11.2.        Excluded Claims.  Without limiting Section 11.1, VTAL shall have no obligation to

EZEM or EZEM’s customers under  Section

11.1 above if:

 

(a)           If the Appliance has

not been properly installed by a Person other than VTAL or retained by VTAL, or

not used or maintained in accordance with VTAL’s then-applicable operating

manuals or software maintenance arrangement;

 

(b)           The Appliance has

been modified in any manner or is used or combined with other computer software

programs, hardware or data (i) not supplied by VTAL, (ii) not supplied in

accordance herewith or (iii) supplied without the prior written consent of

VTAL; or

 

(c)           The Appliance has

been distributed to a customer with any warranties or representations, oral or

written, made by EZEM or any third party beyond those expressly set forth in

the End User Agreement.

 

11.3.        Warranty to

EZEM.  VTAL hereby represents

and warrants to EZEM:

 

(a)           VTAL owns or has the

lawful right from others to grant the rights to market and distribute the

Appliance as set forth in this Agreement;

 

(b)           VTAL has no

knowledge of any infringement by the Appliance of any third party intellectual

property rights, such as patents, copyrights, trade secrets or trademarks; and

 

(c)           VTAL has taken all

appropriate corporate action to authorize execution and performance of this

Agreement.

 

11.4.        Limited

Warranty.  The warranties to the

customer set forth in the End User Agreement and the warranties to EZEM set

forth in Section 11.3 above are in lieu of all other warranties, express or implied, all such

other warranties being hereby disclaimed and excluded by VTAL, including

without limitation any warranty of merchantability,

fitness for a particular purpose, or use, and all obligations

or liabilities on the part of VTAL for damages arising out of or in connection

with the distribution, use, repair or performance of the Appliance.

 

11.5.        Indemnification.  VTAL and EZEM shall each defend, indemnify

and hold one another, their agents, employees and independent contractors

harmless from and against any and all claims, damages, loss and expenses

including without limitation, reasonable attorney’s fees, which may hereafter

be asserted against or suffered by VTAL or EZEM, as the case may be, its

agents, employees and independent contractors for injury or death, damage to property

or other third party claims to the extent such claims arise from the products

of, or the fault or negligence of, the indemnifying party, its agents,

employees and independent contractors.  Such

indemnification obligation under this Section shall not be limited in any way

by any limitation on the amount or types of damages, compensation or benefits,

payable by or for VTAL or EZEM under workers’ compensation

acts, disability benefit acts or other employee benefit acts or by the

provisions of any insurance.

 

VTAL and EZEM

agree to give each other prompt written notice (including the fullest

information obtainable at the time) of any indemnifiable claims, demand, loss,

damage, liability or expense of which it obtains knowledge.  The indemnifying party shall have the

right to select counsel for and control defense of the claim (which counsel

shall be reasonably accepted to all such parties).  Each party agrees to cooperate fully in the defense of any claim,

demand, loss, damage, liability, or expense. 

Neither party shall have the right to settle any claim, demand, loss,

damage, liability, or expense for which it is indemnifying any party hereunder

without the written consent of the other party, which consent shall not be

unreasonably withheld or delayed.

 

11.6.        Third Party Infringement Indemnity.

 

VTAL hereby agrees to indemnify, defend and

hold EZEM harmless from any third party suit, claim or other legal action,

including any and all claims, damages, loss and expenses arising therefrom,

including without limitation, reasonable attorney’s fees, (“Legal Action”) that

alleges the Appliance infringes any United States patent, copyright, or trade

secret, including specifically any patents held by PointDx Inc.  VTAL shall be given written notice of any

Legal Action within fifteen (15) days of EZEM’s first knowledge thereof and

VTAL shall provide EZEM written notice of any Legal Action within fifteen (15)

days of VTAL’s first knowledge thereof. 

VTAL shall have sole and exclusive control of the defense of any Legal

Action, including the choice and direction of any legal counsel, and EZEM may

not settle or compromise any Legal Action without the written consent of

VTAL.  If an Appliance is found to

infringe any such third party intellectual property right in such a Legal

Action, it shall so notify EZEM in writing, which will thereupon cease and be

excused from further sales and marketing efforts with respect to the Appliance

hereunder, pending resolution in accordance with the following: at VTAL’ sole

discretion and expense, VTAL may (i) obtain a license from such third party for

the benefit of EZEM and its customers; (ii) replace or modify the Appliance so

that it is no longer infringing; or (iii) if neither of the foregoing is

commercially feasible, terminate this Agreement, and VTAL shall refund to EZEM

the amount of any Non-Recurring Engineering Charges which have then been paid

per Section 2.3, reduced by prorating such Non-Recurring Engineering Charges on

a thirty-six (36) month straight-line depreciation method from the scheduled

date of payment.  If no such refund is

required within thirty-six (36) months of the scheduled date for the last

payment under Section 2.3, no part of such cost will be refunded.  VTAL’s obligation to a customer with respect

to infringement shall be controlled exclusively by the End User Agreement.

 

11.7.        Insurance. 

During the term of this Agreement and for a period of three (3) years

thereafter, each party shall carry adequate insurance to cover its obligations

hereunder, provided, however that in no event shall any product liability

insurance coverage be less than five million dollars ($5,000,000) per

occurrence.  Upon request, either party

shall provide the other party with a certificate of insurance evidencing the

insurance coverage required by this Section 11.7.

 

12.           LIMITATION OF REMEDIES

 

12.1.        CONSEQUENTIAL

DAMAGES.  IN NO EVENT SHALL

EITHER PARTY’S LIABILITY OF ANY KIND INCLUDE ANY

SPECIAL, INDIRECT, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL LOSS OR DAMAGE, EVEN

IF THE OTHER PARTY

SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH POTENTIAL LOSS OR DAMAGE.

 

12.2.        Damages Limitation.  SUBJECT TO ITS INDEMNIFICATION OBLIGATIONS

UNDER SECTIONS 11.5 AND 11.6, VTAL’s cumulative liability for damages to EZEM

for any cause whatsoever, and regardless of the form of action, whether in

contract or in tort including negligence, shall be limited to FOUR HUNDRED

THOUSAND U.S. Dollars ($400,000).

 

13.           CONFIDENTIALITY

 

13.1.        Confidential

Information; Term.  All

Confidential Information shall be deemed confidential and proprietary to the

party disclosing such information hereunder.  Each party may use

the Confidential Information of the other party during the term of this

Agreement only as permitted or required for the receiving party’s performance

hereunder.  The receiving party shall

not disclose or provide any Confidential Information to any third party and

shall take reasonable measures to prevent any unauthorized disclosure by its

employees, agents, contractors or consultants during the term hereof including

appropriate individual nondisclosure agreements.  The foregoing duty shall apply to any Confidential Information

for a period of five (5) years from the date of its disclosure or two years following the termination of

this Agreement, which ever is later; provided that such obligation shall

continue indefinitely as to the Appliance; provided that it is otherwise

considered Confidential Information under Section 13.2.

 

13.2.        Exclusions.  The following shall not be considered

Confidential Information for purposes of this Article 13

 

(a)           Information which is

or becomes in the public domain through no fault or act of the receiving party;

 

(b)           Information which

was independently developed by the receiving party without the use of or

reliance on the disclosing party’s Confidential Information;

 

(c)           Information which

was provided to the receiving party by a third party under no duty of

confidentiality to the disclosing party; or

 

(d)           Information which is required to be

disclosed by law, provided, however, prompt prior notice thereof shall be given

to the party whose Confidential Information is involved.

 

14.           TRADEMARKS

 

14.1.        Use of

Trademarks.  Each party (in this

context the “Licensing Party”) hereby grants to the other (in the context the

“Licensed Party”), and the other hereby accepts, a nonexclusive,

nontransferable and royalty-free license to use the Licensing

Party’s trademarks as specified in the List of Trademarks, Exhibit 14.1 hereto,

as such list may be modified at the reasonable request of the Licensing Party from time to time, solely in connection with the

distribution, promotion, advertising and maintenance of the Appliance in

accordance herewith.  Neither party

shall use any other marks or trade names in connection with the marketing and

distribution of the Appliance.  A

Licensing Party’s trademarks shall be used by the other only in accordance with

its standards, specifications and instructions, but in no event beyond the term

of this Agreement.  Each Licensing Party

may inspect and monitor the activities of the Licensed Party to ensure that

such use of the Licensing Party’s trademarks is in accordance with such

standards, specifications and instructions. 

Neither party is granted any right, title or interest in such trademarks

other than the foregoing limited license, and neither party shall use any of the other party’s trademarks as part of its

corporate or trade name or authorize any third party to do so.

 

14.2.        Registration.  Each Licensing Party shall use commercially

reasonable efforts to register its trademarks specified in the List of

Trademarks, Exhibit 14.1, as such list may be modified during the term of this

Agreement, within the United States and the Primary Countries when and if such

Licensing Party determines, in its sole discretion, that registration is

necessary or useful to the successful distribution of the Appliance.  Each Licensing Party shall be the sole party

to initiate any such registration and shall bear all the expenses thereof.

 

14.3.        Markings.  Neither party shall remove or alter any

trade names, trademarks, copyright notices, serial numbers, labels, tags or

other identifying marks, symbols or legends of the other affixed to any Appliance, documentation,

containers or packages.

 

14.4.        Infringement.  Each Licensed Party shall promptly notify

the Licensing Party in writing of any unauthorized use of the Licensing Party’s

trademarks or similar marks which may constitute an infringement or passing off

of the Licensing Party’s trademarks. 

Each Licensing Party reserves the right in its sole discretion to

institute any proceedings against such third party infringers, and each

Licensed Party shall refrain from doing so. 

Each Licensed Party shall cooperate fully with the Licensing Party in

any legal action taken by the Licensing Party against such third

parties, provided that the Licensing Party shall pay all expenses of such

action.  All damages, which may be

awarded or agreed upon in settlement of any legal action, shall accrue to the

Licensing Party.

 

14.5.        Termination of Use.  Neither party shall adopt, use or register any words, phrases or

symbols which are identical to or confusingly similar to any of trademarks of

the other party.  Upon termination of

this Agreement, each Licensed Party shall immediately cease any use of the

trademarks of the Licensing Party in any manner.  In addition, each Licensed Party hereby empowers the Licensing

Party and shall assist the Licensing Party, if requested, to cancel, revoke or

withdraw any governmental registration or authorization

permitting the Licensed Party to use the Licensing Party’s trademarks in the

Territory.

 

15.           IMPORT

AND EXPORT OF PRODUCTS

 

15.1.        Import

Documentation.  If applicable,

EZEM shall be responsible for obtaining all licenses and permits required to

import the Appliance from the United States into any other country in

accordance with applicable laws or regulations in the Territory other than the

United States. 

VTAL shall cooperate and supply EZEM on a timely basis with all

necessary information and documentation that it has within its possession

requested by EZEM for the import of the Appliance in accordance with the

applicable importation laws or regulations in the Territory.

 

15.2.        Export

Regulations.  If applicable,

EZEM shall supply VTAL on a timely basis with all necessary information and

documentation, that it has within its possession, requested by VTAL for export

of the Appliance in accordance with U.S. export control laws or

regulations.  If applicable, EZEM hereby

assures VTAL that:

 

(a)           EZEM shall not re-export,

directly or indirectly, the Appliance or the direct product of any Appliance to

any destination forbidden under the then-applicable U.S. Export Administration

Regulations;

 

(b)           EZEM’s commitment in

paragraph (a) above shall apply in all cases unless the U.S. Export

Administration Regulations expressly permit such re-export or the U.S. Commerce

Department’s Office of Export Licensing has granted such authorization in

writing; and

 

(c)           EZEM’s commitment in

paragraph (a) above shall survive termination of this Agreement.

 

16.           TERM AND TERMINATION

 

16.1.        Term.  This

Agreement shall take effect as of the date on page 1 above and shall have a

term of ten (10) years.  Thereafter,

this Agreement shall be deemed automatically terminated unless VTAL and EZEM

shall agree in writing to extend this Agreement.

 

16.2.        Termination.  Notwithstanding the provisions of Section

16.1 above, this Agreement may be terminated earlier upon written notice as

follows:

 

(a)           By either party if the other party

files a petition of any type as to its bankruptcy, is declared bankrupt,

becomes insolvent, makes an assignment for the benefit of creditors, goes into

liquidation or receivership or otherwise loses legal control of its business

voluntarily;

 

(b)           By either party if

the other party is in material breach of this Agreement and has failed to cure

such breach within thirty (30) days of receipt of written notice thereof from

the first party; it being agreed that it shall constitute a material breach of

this Agreement by VTAL if during any six (6) month period the average number of

business days between (a) the later of (i) the confirmed installation date for

an Appliance and (ii) submission of a completed customer checklist and order

for such Appliance, and (b) the date of installation of such Appliance exceeds

ninety (90) business days;

 

(c)           By either party if

the other party is affected by an event of Force Majeure for more than six (6)

months.

 

(d)           If VTAL so elects

due to a Legal Action, as specified in Article 11.6 above.

 

(e)           If EZEM so elects

any time after six months following commencement of a Legal Action, as

specified in Article 11.6 above; provided that as of such time there shall have

been no resolution to such Legal Action as contemplated by Section 11.6.

 

(f)            By the mutual

written consent of both parties.

 

16.3.        Rights and Obligations on

Termination.  In the event of

termination of this Agreement for any reason, the parties shall have the

following rights and obligations:

 

(a)           Neither party shall

be released from the obligation to make payment of all amounts then or

thereafter due and payable;

 

(b)           The rights of any

customer of EZEM who holds a valid and binding End User Agreement for the

Appliance prior to the effective date of such termination shall not be

affected;

 

(c)           Indemnification

rights and obligation under Sections 3.2, 11.5 and 11.6, and the parties’

rights and obligations under Articles 10 and 11 shall survive any termination

of this Agreement; and

 

(d)           EZEM shall return

all copies of the Appliance and any other items of Confidential Information to

VTAL and, if applicable, shall erase all copies of the Appliance from its

computer systems and shall certify in writing to VTAL that it has done so,

except that EZEM may retain those copies of the Appliance and any information

or data relating thereto in order to provide adequate customer service for the

then current installed base of its Appliance customers.

 

16.4.        No Compensation.  In the event of any termination of this Agreement under Article

16.2 (a), (c), (d) and (e), subject to Section 16.3(a), neither party shall owe

any compensation to the other party for lost profits, lost opportunities,

goodwill or any consequential, incidental or special damages  as a result of or arising from such

termination.

 

17.           FORCE MAJEURE

 

17.1.        Definition.  “Force Majeure” shall mean any event or

condition beyond the reasonable control of either party which prevents, in

whole or in material part, the performance by one of

the parties of its obligations hereunder or which renders the performance of

such obligations so difficult or costly as to make such performance

commercially unreasonable.  Without

limiting the foregoing, the following shall constitute events or conditions of

Force Majeure:  acts of State or governmental action, riots, disturbance, war, strikes, lockouts,

slowdowns, prolonged shortage of energy or other supplies, epidemics, fire,

flood, hurricane, typhoon, earthquake,

lightning and explosion, or any refusal or failure of any governmental

authority to grant any export license legally required.

 

17.2.        Notice.  Upon written notice to the other party, a

party affected by an event of Force Majeure shall be suspended without any

liability on its part from the performance of its obligations under this

Agreement, except for the obligation to pay any amounts due and owing

hereunder.  Such notice shall include a description of the nature of the event of Force Majeure,

and its cause and possible consequences. 

The party claiming Force Majeure shall also promptly notify the other party

of the termination of such event.

 

17.3.        Suspension

of Performance.  During the

period that the performance by one of the parties of its obligations under this

Agreement has been suspended by reason of an event of Force Majeure, the other

party may likewise suspend the performance of all or part of its obligations

hereunder to the extent that such suspension is commercially reasonable.

 

18.           ARBITRATION

 

18.1.        Dispute

Resolution.  Except as provided

in Article 18.2 below, VTAL and EZEM shall each use its reasonable efforts to

resolve any dispute between them promptly and amicably and without resort to

any legal process if feasible within thirty (30) days of receipt of a written

notice by one party to the other party of the existence of such dispute.  Except as provided in Article 18.2 below, no

further action may be taken under this Article 18 unless and until executive

officers of VTAL and EZEM have met in good faith to discuss and settle such

dispute.  The foregoing requirement in

this Section 18.1 shall be without prejudice to either party’s right, if

applicable, to terminate this Agreement under Section 16.2 above.

 

18.2.        Litigation Rights Reserved.  If any dispute arises with regard to the

unauthorized use or infringement of Confidential Information by a party, the

other party may seek any

available remedy at law or in equity from a court of competent jurisdiction.

 

18.3.        Procedure

for Arbitration.  Except as

provided in Section 18.2 above, any dispute, claim or controversy arising out

of or in connection with this Agreement which has not

been settled through negotiation within a period of thirty (30) days after the

date on which either party shall first have notified the other party in writing

of the

existence of a dispute shall be settled by final and binding arbitration under

the then-applicable Commercial Arbitration Rules of the American Arbitration

Association (“AAA”).  Any such

arbitration shall be conducted by three (3) arbitrators appointed by mutual

agreement of the parties or, failing such agreement, in accordance with said

Rules.  At least one (1) arbitrator

shall be an experienced computer software professional, and at least one (1)

arbitrator shall be an experienced business attorney with a background in the

licensing and distribution of

computer software.  Any such arbitration

shall be conducted in Chicago,

Illinois in the English language.  An

arbitral award may be enforced in any court of competent jurisdiction.  Notwithstanding any contrary provision in

the AAA Rules, the following additional procedures and rules shall apply to any

such arbitration:

 

(a)           Each party shall

have the right to request from the arbitrators, and the arbitrators shall order

upon good cause shown, reasonable and limited pre-hearing discovery, including

(i) exchange of witness lists, (ii) depositions under oath of named witnesses

at a mutually convenient location, (iii) written interrogatories and (iv)

document requests.

 

(b)           Upon conclusion of

the pre-hearing discovery, the arbitrators shall promptly hold a hearing upon

the evidence to be adduced by the parties and shall promptly render a written

opinion and award.

 

(c)           The arbitrators may

not award or assess punitive damages against either party.

 

(d)           Each party shall

bear its own costs and expenses of the arbitration and one-half (1/2) of the

fees and costs of the arbitrators, subject to the power of the arbitrators, in

their sole discretion, to award all such reasonable costs, expenses and fees to

the prevailing party.

 

19.           MISCELLANEOUS

 

19.1.        Escrow

Agreement.  The parties shall

execute an Escrow Agreement in the form of Exhibit 19.1, subject to any variation

required by the Escrow Agent, and VTAL will place source code for the Appliance

in the escrow created thereby, all within twenty (20) business days of the Appliance

Commercial Availability Date. 

In the event and from the time that EZEM properly obtains such source

code from the escrow, VTAL grants to EZEM and EZEM accepts a restricted

non-exclusive license, without right to sublicense, for EZEM, or a third party

designated by EZEM subject to (i) VTAL’s consent to the selection of such third

party, which consent may not be unreasonably withheld and (ii) such third party

agreeing on terms reasonably satisfactory to VTAL as to such matters as

maintenance of the confidentiality of the source code, to use such source code

solely for the maintenance and support of Appliances licensed by VTAL as

contemplate by this Agreement to the extent that VTAL or its successors are

unable and unwilling to do so for a commercially reasonable fee and within a

commercially reasonable timeframe.  Such

source code will not be disclosed to any Person who is not employed by EZEM or

one of its Affiliates, and consistent with the foregoing, EZEM shall protect

such source code as Confidential Information of VTAL in the manner specified in

Article 13.  The parties agree to

terminate the Escrow Agreement by mutual written consent in the event that this

Agreement is terminated for any reason which is not a Release Condition as

defined in the Escrow Agreement. 

 

19.2.        Relationship.  This Agreement does not make either party

the employee, agent or legal representative of the other for any purposes

whatsoever.  Neither party is granted

any right or authority to assume or to create any obligation or responsibility,

express or implied, on behalf of or in the name of the other party.  Each party is acting as an independent

contractor.

 

19.3.        Assignment.  Neither

this Agreement nor any right or obligation arising hereunder may be assigned by

any party hereto, in whole or in part, without the prior written consent of

each other party hereto, which may be withheld in the absolute discretion of

such other party, and any attempted assignment in violation of the terms hereof

will be null and void and of no force or effect; provided, however, that no such consent shall be required for assignment, in

whole or in part, in connection with any merger or sale of all or substantially

all of the assets of the assigning party, provided, however that in the event

that a party desires to assign this Agreement through merger or sale of all or

substantially all of its assets, it shall obtain,

prior to any assignment, a written assurance from the acquiring or merging

party specifically assuring the other party that it will continue to honor and

assume all of the assigning party’s obligations under this Agreement.  Subject to the foregoing sentence, this

Agreement will be binding upon and inure to the benefit of the parties and

their respective successors and assigns.

 

19.4.        Notices.  Notices permitted or required to be given

hereunder shall be deemed sufficient if given by registered or certified mail,

postage prepaid, return receipt requested, by private overnight

courier service, or by confirmed facsimile addressed to the respective

addresses of the parties as first written above or at such other addresses as

the respective parties may designate by like notice from time to time.  Notices so given shall be effective upon (i) receipt by

the party to which notice is given, or (ii) on the fifth (5th) day

following domestic mailing or the tenth (10th) day following

international mailing, as may be the case, whichever occurs first.

 

19.5.        Entire Agreement.  This Agreement, including the Exhibits hereto which are

incorporated herein, constitutes the entire agreement of the parties with

respect to the subject matter hereof and supersedes all proposals, oral or

written, and all negotiations, conversations, discussions, and previous

distribution or value added reseller agreements heretofore between the

parties.  Each party hereby acknowledges

that it has not been induced to enter into this Agreement by any

representations or statements, oral or written, not expressly contained herein.

 

19.6.        Amendment.  This Agreement may not be modified, amended,

rescinded, canceled or waived, in whole or in part, except by written amendment

signed by both parties hereto.

 

19.7.        Section Headings.  The Section headings appearing in this Agreement are inserted

only as matter of convenience and in no way define, limit, construe, or

describe the scope or extent of such Section or in any way affect such section.

 

19.8.        Publicity.  This Agreement is confidential, and no party

shall issue press releases or engage in other types of publicity of any nature

dealing with the commercial or legal details of this Agreement without the

other party’s prior written approval, which approval shall not be unreasonably

withheld; provided that the

parties agree that promptly following the date hereof they shall make a joint

press release.  It shall not be a breach

of the foregoing obligation as to non-disclosure and press releases to include

in future press releases facts which are recited in the joint press release described above or to make other disclosures as

may be necessary (a) as to the non-disclosure obligation only, in connection

with the preparation of a party’s tax returns or financial records; (b) in

order to satisfy the requirements of law, including the requirements of the

Securities Exchange Act of 1934; (c) in order to comply with the lawful orders

or processes of courts and other government agencies; or (d) in order to

enforce or comply with this Agreement. 

If either party receives any subpoena or other legal process that

purports to require or compel information that is protected under this

Agreement, it shall give the other party prompt written notice thereof.

 

19.9.        Governing Law.  This Agreement shall be governed by and

interpreted under the laws of the State of Minnesota, U.S.A., excluding (i) its

choice of law rules, and (ii) the United Nations Convention on Contracts for

the International Sale of Goods.

 

19.10.      Severability.  If any provision of this Agreement is found

unenforceable under any of the laws or regulations applicable thereto, such

provision terms shall be deemed stricken from this Agreement, but such

invalidity or unenforceability shall not invalidate any of the other provisions

of this Agreement.

 

19.11.      Counterparts.  This Agreement may be executed in two or

more counterparts in the English language and each such counterpart shall be

deemed an original hereof.  In case of any conflict between the English version and any

translated version of this Agreement, the English version shall govern.

 

19.12.      Waiver.  No failure by either party to take any

action or assert any right hereunder shall be deemed to be a waiver of such

right in the event of the continuation or repetition of the circumstances

giving rise to such right.  Course of conduct between the parties, whether or not contrary to

the terms of this Agreement, shall not be construed as a waiver of any term of

this Agreement.

 

19.13.      Non-solicitation.

 

(a)           Neither VTAL nor its

Affiliates shall be permitted to retain, as an employee or a self-employed

independent contractor, during the term of this Agreement or within one year

thereafter, any person who was employed by EZEM or its Affiliates at anytime

during the then preceding two (2) year period.

 

(b)           Neither EZEM nor its

Affiliates shall be permitted to retain, as an employee or a self-employed

independent contractor, during the term of this Agreement or within one year

thereafter, any person who was employed by VTAL or its Affiliates at anytime

during the then preceding two (2) year period.

 

IN WITNESS

WHEREOF, the parties have caused this Agreement to be executed by their duly

authorized representatives below.

 

	

  VITAL

  IMAGES, INC.

  	

   

  	

  E-Z-EM, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By: 

  	

  /s/ Albert

  Emola

  	

   

  	

  By: 

  	

  /s/ Anthony

  A. Lombardo

  
	

   

  	

   

  	

   

  
	

  Its: 

  	

  President

  & CEO

  	

   

  	

  Its:

  	

   President & CEO

  

 

[Remainder of page

intentionally left blank]

 

 

TABLE OF CONTENTS

 

	

  1.

  	

  DEFINITIONS:

  
	

   

  	

   

  	

   

  
	

   

  	

  1.1.

  	

  “Person”

  
	

   

  	

  1.2.

  	

  “Vitrea 2 Software”

  
	

   

  	

  1.3.

  	

  “Specification”

  
	

   

  	

  1.4.

  	

  “Option”

  
	

   

  	

  1.5.

  	

  “Appliance”

  
	

   

  	

  1.6.

  	

  “Appliance Platform”

  
	

   

  	

  1.7.

  	

  “Appliance System”

  
	

   

  	

  1.8.

  	

  “Products”

  
	

   

  	

  1.9.

  	

  “Affiliate”

  
	

   

  	

  1.10.

  	

  “Non-Affiliate”

  
	

   

  	

  1.11.

  	

  “Appliance System Sales Price”

  
	

   

  	

  1.12.

  	

  “Intellectual Property”

  
	

   

  	

  1.13.

  	

  “Claim”

  
	

   

  	

  1.14.

  	

  “FOB Point”

  
	

   

  	

  1.15.

  	

  “Remedial

  Action”

  
	

   

  	

  1.16.

  	

  “Confidential Information”

  
	

   

  	

  1.17.

  	

  “End User Agreement”

  
	

   

  	

  1.18.

  	

  “Act”

  
	

   

  	

  1.19.

  	

  “FDA”

  
	

   

  	

  1.20.

  	

  “Government Approval”

  
	

   

  	

  1.21.

  	

  “Territory”

  
	

   

  	

  1.22.

  	

  “Center of Excellence”

  
	

   

  	

  1.23.

  	

  “Option Sales Price”

  
	

   

  	

  1.24.

  	

  “Appliance Sales Price”

  
	

   

  	

  1.25.

  	

  “Appliance Commercial Availability Date”

  
	

   

  	

  1.26.

  	

  “Allowable Expense”

  
	

   

  	

  1.27.

  	

  “Dealer Associate”

  
	

   

  	

  1.28.

  	

  “Service Associate”

  
	

   

  	

  1.29.

  	

  “Primary Countries”

  
	

   

  	

   

  	

   

  
	

  2.

  	

  DEVELOPMENT

  
	

   

  	

  2.1.

  	

  Development Program

  
	

   

  	

  2.2.

  	

  Government Approvals

  
	

   

  	

  2.3.

  	

  Non-Recurring Engineering Charges

  
	

   

  	

  2.4.

  	

  Upgrades

  
	

   

  	

   

  	

   

  
	

  3.

  	

  APPOINTMENT

  
	

   

  	

  3.1.

  	

  Scope

  
	

   

  	

  3.2.

  	

  Dealer and Service Associates

  
	

   

  	

  3.3.

  	

  Exception at Customer Insistence

  
	

   

  	

   

  	

   

  
	

  4.

  	

  GENERAL OBLIGATIONS OF EZEM

  
	

   

  	

  4.1.

  	

  Marketing

  
	

   

  	

  4.2.

  	

  EZEM Demonstration License

  
	

   

  	

  4.3.

  	

  Promotional Materials and Appliance

  Packaging

  
	

   

  	

  4.4.

  	

  Ownership and Reverse Engineering

  
	

   

  	

  4.5.

  	

  Competing Products

  
	

   

  	

  4.6.

  	

  EZEM Expenses

  
	

   

  	

   

  	

   

  
	

  5.

  	

  GENERAL OBLIGATIONS OF VTAL

  
	

   

  	

  5.1.

  	

  General Obligations

  
	

   

  	

  5.2.

  	

  VTAL Expenses

  
	

   

  	

   

  	

   

  
	

  6.

  	

  ORDERS FOR PRODUCTS

  
	

   

  	

  6.1.

  	

  Purchase Orders

  
	

   

  	

  6.2.

  	

  Acceptance of Orders

  
	

   

  	

  6.3.

  	

  Delivery Terms

  
	

   

  	

  6.4.

  	

  Terms of Orders and Acceptances

  
	

   

  	

  6.5.

  	

  Installation of Appliance

  
	

   

  	

   

  	

   

  
	

  7.

  	

  SOFTWARE MAINTENANCE SERVICES

  
	

   

  	

   

  	

   

  
	

  8.

  	

  CENTERS OF EXCELLENCE

  
	

   

  	

   

  	

   

  
	

  9.

  	

  PRICING, PROFIT SHARING AND OTHER

  COMPENSATION

  
	

   

  	

  9.1.

  	

  Pricing, Billing and Collection

  
	

   

  	

  9.2.

  	

  United States Sales

  
	

   

  	

  9.3.

  	

  Reimbursement and Payments from Appliance

  System Sales Price for Sales within the United States

  
	

   

  	

  9.4.

  	

  Profit Payment

  
	

   

  	

  9.5.

  	

  Royalties

  
	

   

  	

  9.6.

  	

  Sales Outside of United States

  
	

   

  	

  9.7.

  	

  Record-keeping; Inspection and Audit

  
	

   

  	

  9.8.

  	

  Most “Favored Buyer” Terms

  
	

   

  	

  9.9.

  	

  Overdue Payments

  
	

   

  	

   

  	

   

  
	

  10.

  	

  ADVERSE REACTIONS; PRODUCT RECALLS

  
	

   

  	

  10.1.

  	

  Compliance

  
	

   

  	

  10.2.

  	

  Adverse Event Reporting

  
	

   

  	

  10.3.

  	

  Corrective Action

  
	

   

  	

   

  	

   

  
	

  11.

  	

  WARRANTIES AND REPRESENTATIONS;

  INDEMNIFICATION; INSURANCE

  
	

   

  	

  11.1.

  	

  Appliance Warranties to Customers

  
	

   

  	

  11.2.

  	

  Excluded Claims

  
	

   

  	

  11.3.

  	

  Warranty to EZEM

  
	

   

  	

  11.4.

  	

  Limited Warranty

  
	

   

  	

  11.5.

  	

  Indemnification

  
	

   

  	

  11.6.

  	

  Third Party Infringement Indemnity

  
	

   

  	

  11.7.

  	

  Insurance

  
	

   

  	

   

  	

   

  
	

  12.

  	

  LIMITATION OF REMEDIES

  
	

   

  	

  12.1.

  	

  CONSEQUENTIAL DAMAGES

  
	

   

  	

  12.2.

  	

  DAMAGES LIMITATION

  
	

   

  	

   

  	

   

  
	

  13.

  	

  CONFIDENTIALITY

  
	

   

  	

  13.1.

  	

  Confidential Information; Term

  
	

   

  	

  13.2.

  	

  Exclusions

  
	

   

  	

   

  	

   

  
	

  14.

  	

  TRADEMARKS

  
	

   

  	

  14.1.

  	

  Use of Trademarks

  
	

   

  	

  14.2.

  	

  Registration

  
	

   

  	

  14.3.

  	

  Markings

  
	

   

  	

  14.4.

  	

  Infringement

  
	

   

  	

  14.5.

  	

  Termination of Use

  
	

   

  	

   

  	

   

  
	

  15.

  	

  IMPORT AND EXPORT OF PRODUCTS

  
	

   

  	

  15.1.

  	

  Import Documentation

  
	

   

  	

  15.2.

  	

  Export Regulations

  
	

   

  	

   

  	

   

  
	

  16.

  	

  TERM AND TERMINATION

  
	

   

  	

  16.1.

  	

  Term

  
	

   

  	

  16.2.

  	

  Termination

  
	

   

  	

  16.3.

  	

  Rights and Obligations on Termination

  
	

   

  	

  16.4.

  	

  No Compensation

  
	

   

  	

   

  	

   

  
	

  17.

  	

  FORCE MAJEURE

  
	

   

  	

  17.1.

  	

  Definition

  
	

   

  	

  17.2.

  	

  Notice

  
	

   

  	

  17.3.

  	

  Suspension of Performance

  
	

   

  	

   

  	

   

  
	

  18.

  	

  ARBITRATION

  
	

   

  	

  18.1.

  	

  Dispute Resolution

  
	

   

  	

  18.2.

  	

  Litigation Rights Reserved

  
	

   

  	

  18.3.

  	

  Procedure for Arbitration

  
	

   

  	

   

  	

   

  
	

  19.

  	

  MISCELLANEOUS

  
	

   

  	

  19.1.

  	

  Escrow Agreement

  
	

   

  	

  19.2.

  	

  Relationship

  
	

   

  	

  19.3.

  	

  Assignment

  
	

   

  	

  19.4.

  	

  Notices

  
	

   

  	

  19.5.

  	

  Entire Agreement

  
	

   

  	

  19.6.

  	

  Amendment

  
	

   

  	

  19.7.

  	

  Section Headings

  
	

   

  	

  19.8.

  	

  Publicity

  
	

   

  	

  19.9.

  	

  Governing Law

  
	

   

  	

  19.10

  	

  Severability

  
	

   

  	

  19.11

  	

  Counterparts

  
	

   

  	

  19.12

  	

  Waiver

  
	

   

  	

  19.13

  	

  Non-solicitation

  

 

LIST OF EXHIBITS

 

	

  1.3

  	

   

  	

  Specification

  
	

  1.6

  	

   

  	

  Appliance

  Platform

  
	

  1.17

  	

   

  	

  End User

  Agreement

  
	

  4.2

  	

   

  	

  Demonstration

  DSM&D Agreement

  
	

  8.1

  	

   

  	

  Potential

  Centers of Excellence

  
	

  9.3

  	

   

  	

  Collaboration

  Sites

  
	

  9.4

  	

   

  	

  Example of

  Computation

  
	

  14.1

  	

   

  	

  List of VTAL

  and EZEM Trademarks and Desired Registrations

  
	

  19.1

  	

   

  	

  Software

  Escrow Agreement

  

EXHIBIT 1.3

SPECIFICATION

 

1.0           PRODUCT OBJECTIVE

 

The objective of the Appliance

is to provide a product similar to Vitrea 2 that offers a single protocol:

Colon CT. Planned release for this feature is in year 2001, quarter 3 release

(September, 2001).

 

2.0           COLON APPLIANCE

 

2.1           No new claims will be associated with

the colon that would need a 510 (k) or letter to file (for its initial launch).

2.2           The Appliance must be upgradeable to

a full Vitrea 2.

2.3           3D Textures is part of the colon

effort, and is listed in the Quality FRS.

2.4           When new releases of Vitrea 2 are

launched, the Appliance will be updated to include those new tools /

advancements if they improve the use of colon analysis.

2.5           The Appliance must work on the same

hardware as required for the Vitrea 2 system.

2.6           The standard workflow for the

Appliance will remain the same as Vitrea 2. 

Using the Appliance, the user will move through the same standard tabs

and will use the product in the same way as Vitrea 2.  This is important for ease of use (consistency) and training

reasons (Vitrea 2 customers may use the colon appliance, and colon appliance

customers may upgrade to a complete Vitrea 2 system), and also for speed of

development for the initial release of the Appliance.

2.7           All standard Vitrea 2 base features

(non-licensable) will be available in the Appliance, with the exception of the

Protocol menu items that are not Colon, and those functions that are tied

specifically to Protocols that are not the colon protocol (such as brain tumor

volume).  This means that functions such

as visualization parameters, batching, viewing formats, sculpting tools, and

reporting capabilities will all be available in the Appliance.

2.8           No Study Directory changes are

required for the first version of the Appliance. Users will select a study and

a series as they would in Vitrea 2, and will load it using the same methods as

in Vitrea 2.  Non-colon scans can be

listed in the Study Directory and loaded, but will only be able to be viewed

using the colon protocol and presets.

2.9           No changes to the Gallery Page will

be required for the first version of the Appliance, with the exception of the

removal of non-colon protocols and presets from the protocol menu.  When the loaded series appears on the

Gallery Page, only the protocol is offered on the protocol menu.  The presets shown are those specifically

designed for colon review.

2.10         The Viewer tab will be the same as in

Vitrea 2, and will offer the user all the standard 2D and 3D formats that are

offered in Vitrea 2.

2.11         No reporting enhancements are required

for the first version of the Appliance. 

The report page should function the same as the report page in Vitrea 2.

 

3.0           OPTION

 

3.1           The software must not require

operations to manually create a license for the Option for the installed base

upgrades.

3.2           Option includes only the access to

the colon protocol.

 

EXHIBIT 1.6

APPLIANCE PLATFORM

 

Dell 530 Dual

Processor Workstation including:

•      Dual Intel® Xeon®

1.7 GHz processors, 400MHz Bus

•       2 GB RDRAM

•       4 x 73 GB disks with RAID5 controller (more than 219 GB of

usable disk storage)

•       3Dlabs Wildcat II 5110 AGP4x graphics card

•       16X/10X/40X CD Read-Write, IDE

•       Dell Quiet Chassis

•       Windows NT 4.0 with Service Pack 6

•       Enhanced Quietkey Keyboard, PS/2, 3 Hot Keys, Dell

PrecisionX30

•       Viewsonic

VP201mb 20.1” LCD Flat Panel Monitor with Speakers

•       MS

Intellimouse, 2-Button, with Scroll, PS/2 Mouse

•       3.5”,

1.44MB floppy drive

•       Internal

Dell V.90 PCI Data/Fax Controllerless Modem

•       Surge

protector

•       24x7

Service, with 4-hour onsite parts and labor for 3 years (major cities)

 

EXHIBIT 1.17

END USER AGREEMENT

 

VITAL IMAGES, INC.

SOFTWARE LICENSE

AGREEMENT

 

THIS SOFTWARE LICENSE AGREEMENT

(“License Agreement”) is made as of _________________, 200__, by and between

Vital Images, Inc., 3300 Fernbrook Lane N., Suite 200, Plymouth, Minnesota

55447 U.S.A. (“Vital Images”) and __________________________________________,

having its principal place of business at

___________________________________________________ (“Licensee”).

 

Recitals

 

A.            Vital

Images develops and licenses proprietary medical visualization software

products (defined below as the “Products”).

 

B.            Licensee

desires to license and use the Products, and Vital Images so agrees, subject to

the terms and conditions of this License Agreement.

 

ARTICLE 1: DEFINITIONS

 

For purposes of this License

Agreement, the following words, terms and phrases shall have the following

meanings unless the context otherwise requires:

 

1.1           Confidential

Information.  “Confidential

Information” shall mean all information disclosed by Vital Images to Licensee

or embodied in the Products, regardless of the form in which it is disclosed,

which relates to markets, customers, products, patents, inventions, procedures,

methods, designs, strategies, plans, assets, liabilities, prices, costs, revenues,

profits, organization, employees, agents, resellers or business in general of

Vital Images, or the algorithms, programs, user interfaces and organization of

the Products.

 

1.2           Products.  “Products” shall mean only those computer

software products in object code form as described in Exhibit A and any related

user documentation as released from time to time by Vital Images, including any

later authorized releases or versions of such software or documentation during

the term of this License Agreement.

 

ARTICLE 2: LICENSE GRANT AND USE

 

2.1           License Grant.  In consideration for Licensee’s payment of

the applicable license fee, and subject to the terms of this License Agreement,

Vital Images hereby grants to Licensee a nonexclusive, non-transferable license

(“License”) to use the Products only on one (1) computer of the type described

in Exhibit B attached hereto (“Designated Equipment”), and only at the site

described in Exhibit B (“Designated Site”). 

Licensee must purchase a License for each computer at a Designated Site

on which it desires to install and use the Products.  Licensee’s use of the Products shall be limited to Licensee’s

internal business activities.

 

2.2           Restrictions on

Use.  Licensee agrees not to engage

in, cause or permit the reverse engineering, disassembly, recompilation,

modification or any similar manipulation of the Products, nor may Licensee

loan, lease, distribute, assign or otherwise transfer the Products or copies

thereof, in whole or in part, to any third party.  Licensee may not install, use or access the Products at or from

any location other than a Designated Site, or on any type of computer other

than the Designated Equipment, without the prior written approval of Vital

Images.

 

2.3           Copying.  Licensee shall not copy the Products, except

that Licensee may make and maintain one (1) copy of the Products for back-up

and archival purposes, provided such copy includes all Vital Images copyright,

proprietary rights and other notices included on or in the Products.

 

2.4           Ownership.  All right, title and interest in the

Products shall at all times remain the property of Vital Images and its

licensors, subject to the Licenses granted to Licensee under this License

Agreement.  Licensee understands and agrees

that it takes title only to the media on which the Products are provided to it,

but that the Products shall remain the property of, and proprietary to, Vital

Images.

 

ARTICLE 3: TERMINATION

3.1           Termination.

 

(a)           Either party may terminate this License Agreement at any

time if the other party fails to cure its material breach hereof within thirty

(30) days after its receipt of notice specifying such breach from the other

party.

 

(b)           Vital

Images may terminate this License Agreement at any time immediately upon

Licensee (i) becoming insolvent, (ii) commencing, or having commenced against

it (without dismissal within sixty (60) days), any bankruptcy, insolvency,

liquidation, reorganization or similar proceeding under any U.S. or foreign

law, (iii) making an assignment for the benefit of its creditors, (iv)

admitting in writing its inability to satisfy its debts in the ordinary course

of business or that its business or financial condition indicates that it is

presently unable to continue as a going concern, or (v) taking an action

resulting in or directed to ceasing, on a permanent basis, its business or

relevant operations; or

 

(c)           Licensee

may terminate this License Agreement or any License granted hereunder at any

time by giving written notice to Vital Images.

 

3.2           Effect of

Termination of a License.  Upon any

termination of a License, Licensee shall (a) immediately cease all use of the

Products licensed pursuant to such License, and (b) certify in writing to Vital

Images within thirty (30) days after such termination that Licensee has either

destroyed, permanently erased or returned to Vital Images the Products and all

copies thereof licensed pursuant to such License.

 

3.3           Effect of

Termination of License Agreement. 

Upon termination of this License Agreement for any reason, all Licenses

to the Products granted hereunder shall immediately terminate, and Licensee

shall return to Vital Images all Confidential Information.  Articles 2.4, 5, 6, 7, 8 and 9 shall survive

any termination of this License Agreement.

 

ARTICLE 4: ADVERSE REACTIONS; PRODUCT RECALLS

 

4.1           Adverse Event

Reporting.  Licensee shall advise

Vital Images, by telephone or facsimile, within twenty-four (24) hours after it

becomes aware of any adverse event from the use of any Product or malfunction

of any Product.  Unless otherwise required

by applicable local laws, Licensee shall advise Vital Images of any such

adverse event prior to any report or filing being made with the U.S. Food and

Drug Administration (“FDA”) or any other comparable regulatory body elsewhere

in the world.

 

4.2           Product Recall; Corrective Action.

 

(a)           Corrective

Action.  If Vital Images believes

that a corrective action with respect to the Products is desirable or required

by law, or if any governmental agency having jurisdiction (including without

limitation, the FDA) shall request or order any corrective action with respect

to the Products, including any recall, customer notice, restriction, change,

corrective action or market action or any Product change, Vital Images or its

reseller shall promptly notify Licensee. 

Licensee shall comply with all reasonable directions regarding such

corrective action, including the return of the Products to Vital Images or a

reseller at Vital Images’ expense.

 

(b)           Refund.  If any Products are required to be returned

to Vital Images or its resellers pursuant to this Article 4.2 and no

replacement is provided therefor by Vital Images, Vital Images shall refund to

Licensee any unearned license fees paid (the amount of the license fee Licensee

paid for the Products, less a reasonable value for use determined by prorating

the license fee paid on a thirty-six (36) month straight line amortization

method).

 

ARTICLE 5: WARRANTIES; INDEMNIFICATION

 

5.1           Limited Warranty.  Vital Images warrants to Licensee for one

(1) year from the delivery date (the “Warranty Period”), that the Products,

when properly installed and operated, will substantially perform the functions

described in the functional specifications for the Products, as contained in

the applicable written documentation for the Products.  Vital Images shall have no obligation to

Licensee or any third party under this Article 5.1 if (a) the Products have not

been properly installed, used or maintained, whether by Licensee or any third

party, in accordance with the Licenses granted hereunder or Vital Images’

then-applicable operating manuals; or (b) the Products have been modified in

any manner or are used or combined with other computer software programs,

hardware or data not supplied by Vital Images and without the prior written

consent of Vital Images.

 

5.2           Exclusive Remedy.  Vital Images’ entire liability, and

Licensee’s exclusive remedy, for any warranty claim made by Licensee under

Article 5.1 above during the Warranty Period shall be for Vital Images, at its

option, to either (a) replace any defective media which prevents the Products

from satisfying the limited warranty described in Article 5.1; (b) attempt to

correct any material and reproducible errors reported by Licensee; or (c)

terminate this License Agreement and refund the license fee paid for the

Products.  Vital Images does not warrant

that the operation of the Products will be uninterrupted or error-free, that

all errors in the Products will be corrected, that the Products will satisfy Licensee’s

requirements or that the Products will operate in the combinations which

Licensee may select for use.

 

5.3           Limited Warranty.  Vital Images warrants to Licensee that the

Products, when properly installed and operated, will produce no material errors

when processing dates prior to, during and after the calendar year 2000.  Vital Images shall have no obligation to

Licensee or any third party under this Article 5.3 if (a) the Products have not

been properly installed, used or maintained, whether by Licensee or any third

party, in accordance with the Licenses granted hereunder or Vital Images’

then-applicable operating manuals; (b) the Products have been modified in any

manner or are used or combined with other computer software programs, hardware

or data; or (c) the material error reported by Licensee is not reproducible by

Vital Images.

 

5.4           Exclusive Remedy.  Vital Images’ entire liability, and

Licensee’s exclusive remedy, for any breach of the warranty in Article 5.3

above shall be for Vital Images, at its option, to either (a) attempt to correct

such material and reproductive errors, or (b) terminate the License to such

Products and refund any unearned license fees paid (the amount of the license

fee Licensee paid for the Products, less a reasonable value for use determined

by prorating the license fee paid on a thirty-six (36) month straight-line

depreciation method) with no further liability to Licensee.  This Article 5.4 states Licensee’s exclusive

remedy, and Vital Images and its licensors’ entire liability for any breach of

the warranty set forth in Article 5.3.

 

5.5           Warranty

Disclaimer.  THE WARRANTIES SET

FORTH IN ARTICLES 5.1 AND 5.3 ABOVE ARE EXCLUSIVE AND IN LIEU OF ALL OTHER

WARRANTIES, EXPRESS OR IMPLIED, WHICH ARE HEREBY DISCLAIMED AND EXCLUDED BY

VITAL IMAGES, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY,

FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OR USE, AND ALL OBLIGATIONS

OR LIABILITIES ON THE PART OF VITAL IMAGES FOR DAMAGES ARISING OUT OF OR IN

CONNECTION WITH THE USE, MAINTENANCE OR PERFORMANCE OF THE LICENSED

SOFTWARE.  Repair or replacement of all

or any part of the Products does not extend the Warranty Period, which shall

begin on the delivery date.  Vital

Images and its third party licensors expressly disclaim any commitment to

provide maintenance or support of the Products beyond the Warranty Period, in

the absence of a Licensee entering into a separate agreement with Vital Images

or its reseller.  Furthermore, the

Products are derived from and include software from third party licensors, who

make no warranty, express or implied, regarding the Products, who disclaim any

and all liability for the Products and who will not undertake to provide any

information or support regarding the Products.

 

5.6                

Infringement Indemnity.  Vital Images hereby agrees to indemnify,

defend and hold Licensee harmless from any third from any third party suit,

claim or other legal action (“Legal Action”) that alleges the Licensed Software

infringes any United States patent, copyright, or trade secret, including any

award of damages and costs made against Licensee by a final judgment of a court

of last resort based upon a Legal Action, provided that:  (a) Licensee gives written notice of any

Legal Action to Vital Images within fifteen (15) days of Licensee’s first

knowledge thereof; (b) Vital Images has sole and exclusive control of the

defense of any Legal Action, including the choice and direction of any legal

counsel, and all related settlement negotiations; and (c) Licensee provides

Vital Images (at Vital Images’ expense for reasonable out-of-pocket expenses)

with assistance, information and authority to perform the above.

 

Notwithstanding

the foregoing, Vital Images and its licensors shall have no liability for any

Legal Action based on or arising out of: 

(a) the failure by Licensee to use a non-infringing version or release

of the Products if made available by Vital Images, (b) the combination,

operation or use of the Products with software, hardware or data not furnished

by Vital Images, if such Legal Action would have been avoided by use of the

Products without such software, hardware or data, or (c) the use of any

Products in a manner for which it was neither designed nor contemplated.

 

In the event

that the Products are held or are believed by Vital Images to infringe, Vital

Images shall, at its option and expense, (a) modify the infringing Products,

(b) obtain for Licensee a license to continue using such Products, (c)

substitute the Products with other software reasonably suitable to Licensee, or

(d) if none of the foregoing are commercially feasible, terminate the License

to such Products and refund any unearned license fees paid (the amount of the

license fee paid for the Products, less a reasonable value for use determined

by prorating the license fee paid on a thirty-six (36) month straight-line

amortization method) with no further liability to Licensee.

 

This Article

5.4 states Licensee’s exclusive remedy, and Vital Images’ and its licensors’

entire liability, for any infringement claim related to the Products or their

use.

 

ARTICLE 6: LIMITATION OF REMEDIES

 

6.1           Delay.  VITAL IMAGES SHALL NOT BE LIABLE FOR ANY

LOSS OR DAMAGE CAUSED BY DELAY IN FURNISHING PRODUCTS OR SERVICES OR ANY OTHER

PERFORMANCE UNDER THIS LICENSE AGREEMENT.

 

6.2           Sole Remedies.  THE SOLE AND EXCLUSIVE REMEDIES FOR BREACH

OF ANY AND ALL WARRANTIES AND THE SOLE REMEDIES FOR VITAL IMAGES’ LIABILITY OF

ANY KIND (INCLUDING LIABILITY FOR NEGLIGENCE OR PRODUCT LIABILITY) WITH RESPECT

TO THE PRODUCTS AND SERVICES COVERED BY THIS LICENSE AGREEMENT AND ALL OTHER

PERFORMANCE BY VITAL IMAGES UNDER THIS LICENSE AGREEMENT SHALL BE LIMITED TO

THE REMEDIES PROVIDED IN ARTICLE 5 OF THIS LICENSE AGREEMENT.

 

6.3           Damages

Limitation.  VITAL IMAGES SHALL HAVE

NO LIABILITY OF ANY KIND FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL

LOSS OR DAMAGE, EVEN IF VITAL IMAGES SHALL HAVE BEEN ADVISED OF THE POSSIBILITY

OF SUCH POTENTIAL LOSS OR DAMAGE, INCLUDING ANY LIABILITY FOR DAMAGES ARISING

OUT OF OR RESULTING FROM THE USE, MAINTENANCE OR PERFORMANCE OF THE PRODUCTS, INCLUDING,

WITHOUT LIMITATION, THE LOSS OR CORRUPTION OF LICENSEE’S OR ANY THIRD PARTY

DATA.  IN NO EVENT SHALL VITAL IMAGES BE

LIABLE FOR ANY DAMAGES IN EXCESS OF THE AGGREGATE AMOUNTS ACTUALLY PAID BY

LICENSEE TO VITAL IMAGES UNDER THIS LICENSE AGREEMENT.

 

ARTICLE 7:

CONFIDENTIALITY

 

7.1           Confidential

Information.  All Confidential

Information shall be deemed confidential and proprietary to Vital Images, and

are the sole and exclusive property of Vital Images.  Licensee may use the Confidential Information during the term of

this License Agreement only as permitted hereunder or as necessary in order to

use the Products in accordance with the License(s) granted hereunder.  Licensee shall not disclose or provide any

Confidential Information to any third party and shall take reasonable measures

to prevent any unauthorized disclosure by Licensee’s employees, agents,

contractors or consultants during the term hereof including appropriate

individual nondisclosure agreements.

 

7.2           Exclusions.  The following information shall not be

considered Confidential Information under this Article  7:

 

(a)           Information

which is or becomes in the public domain through no fault or act of Licensee;

 

(b)           Information

which was independently developed by Licensee without the use or reliance on

Vital Images’ Confidential Information;

 

(c)           Information

which was provided to Licensee by a third party under no duty of

confidentiality to Vital Images; or

 

(d)           Information

which is required to be disclosed by Licensee under law, provided, however,

Licensee gives prompt notice thereof to Vital Images prior to such disclosure.

 

7.3           Cooperation.  At Vital Images’ request, Licensee shall

cooperate fully with Vital Images in any and all legal actions taken by Vital

Images to protect its rights in the Products and in the Confidential

Information.  Vital Images shall bear

all costs and expenses reasonably incurred by Licensee in the course of

cooperating with Vital Images in such legal action.

 

ARTICLE 8: ARBITRATION

 

8.1           Dispute

Resolution.  Except as provided in

Article 8.2 below, Vital Images and Licensee shall each use its best efforts to

resolve any dispute between them promptly and without resort to any legal

process if feasible within thirty (30) days of receipt of a written notice by

one party to the other party of the existence of such dispute.  The foregoing requirement in this Article

8.1 shall be without prejudice to either party’s right, if applicable, to

terminate this License Agreement under Article 3.1 above.

 

8.2           Litigation Rights

Reserved.  If any dispute arises

with regard to Licensee’s unauthorized use of the Products or unauthorized use

or infringement of Confidential Information, Vital Images may seek any

available remedy at law or in equity from a court of competent jurisdiction.

 

8.3           Procedure for

Arbitration.  Except as provided in

Article 8.2 above, any dispute, claim or controversy arising out of or in

connection with this License Agreement which has not been settled through

negotiation within a period of thirty (30) days after the date on which either

party shall first have notified the other party in writing of the existence of

a dispute shall be settled by final and binding arbitration under the

then-applicable Commercial Arbitration Rules or, if Licensee’s principal place

of business is outside the United States, the International Arbitration Rules

of the American Arbitration Association (“AAA”).  Any such arbitration shall be conducted by three (3) arbitrators

appointed by mutual agreement of the parties or, failing such agreement, in

accordance with said Rules.  At least

one (1) arbitrator shall be an experienced computer software professional, and

at least one (1) arbitrator shall be an experienced business attorney with a

background in the licensing and distribution of computer software.  Any such arbitration shall be conducted in

Minneapolis, Minnesota, U.S.A. in the English language.  An arbitral award may be enforced in any

court of competent jurisdiction. 

Notwithstanding any contrary provision in the AAA Rules, the following

additional procedures and rules shall apply to any such arbitration:

 

(a)           Each party shall have the right to

request from the arbitrators, and the arbitrators shall order upon good cause

shown, reasonable and limited pre-hearing discovery, including (i) exchange of

witness lists, (ii) depositions under oath of named witnesses at a mutually

convenient location, (iii) written interrogatories and (iv) document requests.

 

(b)           Upon

conclusion of the pre-hearing discovery, the arbitrators shall promptly hold a

hearing upon the evidence to be adduced by the parties and shall promptly

render a written opinion and award.

 

(c)           The

arbitrators may not award or assess punitive damages against either party.

 

(d)           Each

party shall bear its own costs and expenses of the arbitration and one-half

(1/2) of the fees and costs of the arbitrators, subject to the power of the

arbitrators, in their sole discretion, to award all such reasonable costs,

expenses and fees to the prevailing party.

 

ARTICLE 9: MISCELLANEOUS

 

9.1           Assignment.  Licensee shall not have the right to assign

or otherwise transfer its rights or obligations under this License Agreement

except with the prior written consent of Vital Images, which consent shall not

be unreasonably withheld.  This License

Agreement shall be binding on the parties hereto and their respective

successors and permitted assigns.  Any

prohibited assignment shall be null and void.

 

9.2           Notices.  Notices permitted or required to be given

hereunder shall be deemed sufficient if given by registered or certified mail,

postage prepaid, return receipt requested, by private courier service, or by

facsimile addressed to the respective addresses of the parties as first above

written or at such other addresses as the respective parties may designate by

like notice from time to time.  Notices

so given shall be effective upon (a) receipt by the party to which the notice

is given, or (b) on the fifth (5th) day following domestic mailing

or the tenth (10th) day following international mailing, as may be

the case, whichever occurs first.

 

9.3           Exports and U.S.

Government Rights.  Licensee hereby

acknowledges that it will not export or reexport any of the Products or

technical data (which includes, among other things, any technical information

relating to the Products, written or otherwise), or any product incorporating

any Products or technical data.  The

Products are provided with Restricted Rights. 

Use, duplication or disclosure by the U.S. government is subject to

restrictions as set forth in (a) this License Agreement pursuant to DFARs

227.7202-3(a); (b) subparagraph (c)(1)(i) of the Rights in Technical Data and

Computer Software clause at DFARs 252.227-7013; or (c) the Commercial Computer

Software Restricted Rights clause at FAR 52.227-19 subdivision (c)(1) and (2),

as applicable.  Contractor/manufacturer

is Vital Images, Inc., 3100 West Lake Street, Suite 100, Minneapolis, Minnesota

55416 U.S.A.

 

9.4           Entire Agreement.  This License Agreement, including the

Exhibits attached hereto which are incorporated herein, constitutes the entire

agreement of the parties with respect to the subject matter hereof and

supersedes all prior agreements by and between Licensee and Vital Images as

well as all proposals, oral or written, and all prior negotiations, conversations

and discussions between the parties related hereto.

 

9.5           Amendment.  This License Agreement may not be modified,

amended, rescinded, canceled or waived, in whole or in part, except by written

amendment signed by both parties hereto.

 

9.6           Governing Law.  This License Agreement shall be governed by

and interpreted under the laws of the State of Minnesota, U.S.A., excluding (a)

its choice of law rules, and (b) the United Nations Convention on the

International Sale of Goods.

 

9.7           Severability.  If any provision of this License Agreement

is found unenforceable under any of the laws or regulations applicable thereto,

such provision terms shall be deemed stricken from this License Agreement, but

such invalidity or unenforceability shall not invalidate any of the other

provisions of this Agreement.

 

9.8           Waiver.  No failure by either party to take any

action or assert any right hereunder shall be deemed to be a waiver of such

right in the event of the continuation or repetition of the circumstances

giving rise to such right.

 

IN WITNESS

WHEREOF, the parties have executed this License Agreement by their duly

authorized representatives.

 

	

  VITAL

  IMAGES, INC.

  	

  LICENSEE

  
	

   

  	

   

  
	

   

  	

   

  
	

  By

  	

   

  	

   

  	

  By 

  	

   

  	

   

  
	

   

  	

   

  
	

  Name

  	

   

  	

   

  	

  Name 

  	

   

  	

   

  
	

   

  	

   

  
	

  Title

  	

   

  	

   

  	

  Title 

  	

   

  	

   

  
												

 

EXHIBIT 4.2

DEMONSTRATOR LICENSE

AGREEMENT

 

VITAL IMAGES, INC.

DEMONSTRATION LICENSE

AGREEMENT

 

THIS SOFTWARE

LICENSE AGREEMENT (“License Agreement”) is made as of _________________, 200__,

by and between Vital Images, Inc., 3300 Fernbrook Lane N., Suite 200, Plymouth,

Minnesota 55447 U.S.A. (“Vital Images”) and

__________________________________________, having its principal place of

business at ___________________________________________________ (“Licensee”).

 

Recitals

 

A.            Vital Images

develops and licenses proprietary medical visualization software products

(defined below as the “Products”).

 

B.            Licensee desires to

license and use the Products for a specific period of time for the purposes of

demonstration, evaluation, testing or other short-term uses, and Vital Images

so agrees, subject to the terms and conditions of this License Agreement.

 

ARTICLE 1: DEFINITIONS

 

For purposes of this License

Agreement, the following words, terms and phrases shall have the following

meanings unless the context otherwise requires:

 

1.1           Confidential

Information.  “Confidential

Information” shall mean all information disclosed by Vital Images to Licensee

or embodied in the Products, regardless of the form in which it is disclosed,

which relates to markets, customers, products, patents, inventions, procedures,

methods, designs, strategies, plans, assets, liabilities, prices, costs,

revenues, profits, organization, employees, agents, resellers or business in

general of Vital Images, or the algorithms, programs, user interfaces and

organization of the Products.

 

1.2           Products.  “Products” shall mean only those computer

software products in object code form as described in Exhibit A and any related

user documentation as released from time to time by Vital Images, including any

later authorized releases or versions of such software or documentation during

the term of this License Agreement.

 

ARTICLE 2: LICENSE GRANT AND USE

 

2.1           License Grant.  Subject to the terms of this License

Agreement, Vital Images hereby grants to Licensee a nonexclusive,

non-transferable license (“License”) to use the Products only on one (1)

computer of the type described in Exhibit B attached hereto (“Designated

Equipment”), and only at the site described in Exhibit B (“Designated

Site”).  Licensee must purchase a

License for any other computer at a Designated Site on which it desires to

install and use the Products. 

Licensee’s use of the Products shall be limited solely to demonstration,

evaluation, testing or otherwise as described on Exhibit B.  Licensee hereby agrees that the Products

under this License shall not be used for any business activities of the

Licensee without the prior written consent of Vital Images, such consent to be

at the sole discretion of Vital Images.

 

2.2           Restrictions on

Use.  Licensee agrees not to engage

in, cause or permit the reverse engineering, disassembly, recompilation,

modification or any similar manipulation of the Products, nor may Licensee

loan, lease, distribute, assign or otherwise transfer the Products or copies

thereof, in whole or in part, to any third party.  Licensee may not install, use or access the Products at or from

any location other than a Designated Site, or on any type of computer other

than the Designated Equipment, without the prior written approval of Vital

Images.

 

2.3           Copying.  Licensee shall not copy the Products, except

that Licensee may make and maintain one (1) copy of the Products for back-up

and archival purposes, provided such copy includes all Vital Images copyright,

proprietary rights and other notices included on or in the Products.

 

2.4           Ownership.  All right, title and interest in the

Products shall at all times remain the property of Vital Images and its

licensors, subject to the Licenses granted to Licensee under this License

Agreement.  Licensee understands and

agrees that it takes title only to the media on which the Products are provided

to it, but that the Products shall remain the property of, and proprietary to,

Vital Images.

 

ARTICLE 3: TERM AND TERMINATION

 

3.1           Term.  The term of this License Agreement shall be

as described on Exhibit B, such term not to exceed twelve (12) months.

 

3.2           Termination.  Either party may terminate this License

Agreement at any time by giving written notice to the other party.

 

3.3           Effect of Termination of a License.  Upon any termination of a License, Licensee

shall

(a)

immediately cease all use of the Products licensed pursuant to such License,

and (b) certify in writing to Vital Images within thirty (30) days after such

termination that Licensee has either destroyed, permanently erased or returned

to Vital Images the Products and all copies thereof licensed pursuant to such

License.

 

3.4           Effect of

Termination of License Agreement. 

Upon termination of this License Agreement, all Licenses to the Products

granted hereunder shall immediately terminate, and Licensee shall return to

Vital Images all Confidential Information. 

Articles 2.4, 5, 6, 7, 8 and 9 shall survive any termination of this

License Agreement.

 

ARTICLE 4: ADVERSE REACTIONS; PRODUCT RECALLS

 

4.1           Adverse Event

Reporting.  In the event that Vital

Images has granted Licensee the right to use the Products under this License

Agreement in its business activities, Licensee shall advise Vital Images, by

telephone or facsimile, within twenty-four (24) hours after it becomes aware of

any adverse event from the use of any Product or malfunction of any

Product.  Unless otherwise required by

applicable local laws, Licensee shall advise Vital Images of any such adverse

event prior to any report or filing being made with the U.S. Food and Drug Administration

(“FDA”) or any other comparable regulatory body elsewhere in the world.

 

4.2           Product Recall;

Corrective Action.  If Vital Images

believes that a corrective action with respect to the Products is desirable or

required by law, or if any governmental agency having jurisdiction (including

without limitation, the FDA) shall request or order any corrective action with

respect to the Products, including any recall, customer notice, restriction,

change, corrective action or market action or any Product change, Vital Images

or its reseller shall promptly notify Licensee.  Licensee shall comply with all reasonable directions regarding

such corrective action, including the return of the Products to Vital Images or

a reseller at Vital Images’ expense.

 

ARTICLE 5: WARRANTIES; INDEMNIFICATION

 

5.1           No Warranty.  Vital 

Images makes no warranty to Licensee that the Products, when properly

installed and operated, will substantially perform the functions described in

the functional specifications for the Products, as contained in the applicable

written documentation for the Products. 

All Products are provided to Licensee “AS IS.”

 

5.2           Exclusive Remedy.  Vital Images’ entire liability, and

Licensee’s exclusive remedy, for any claim made by Licensee under Article 5.1

above shall be for Vital Images to terminate this License Agreement.  Vital Images does not warrant that the

operation of the Products will be uninterrupted or error-free, that all errors

in the Products will be corrected, that the Products will satisfy Licensee’s

requirements or that the Products will operate in the combinations which

Licensee may select for use.

 

5.3           Warranty

Disclaimer.  THE WARRANTY SET FORTH

IN ARTICLE 5.1 ABOVE IS EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, EXPRESS

OR IMPLIED, WHICH ARE HEREBY DISCLAIMED AND EXCLUDED BY VITAL IMAGES, INCLUDING

WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR

PURPOSE, NON-INFRINGEMENT OR USE, AND ALL OBLIGATIONS OR LIABILITIES ON THE

PART OF VITAL IMAGES FOR DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE USE,

MAINTENANCE OR PERFORMANCE OF THE LICENSED SOFTWARE.  Furthermore, the Products are derived from and include software

from third party licensors, who make no warranty, express or implied, regarding

the Products, who disclaim any and all liability for the Products and who will

not undertake to provide any information or support regarding the Products.

 

5.4           Infringement

Indemnity.  Vital Images hereby

agrees to indemnify, defend and hold Licensee harmless from any third from any

third party suit, claim or other legal action (“Legal Action”) that alleges the

Licensed Software infringes any United States patent, copyright, or trade

secret, including any award of damages and costs made against Licensee by a

final judgment of a court of last resort based upon a Legal Action, provided

that:  (a) Licensee gives written notice

of any Legal Action to Vital Images within fifteen (15) days of Licensee’s

first knowledge thereof; (b) Vital Images has sole and exclusive control of the

defense of any Legal Action, including the choice and direction of any legal

counsel, and all related settlement negotiations; and (c) Licensee provides

Vital Images (at Vital Images’ expense for reasonable out-of-pocket expenses)

with assistance, information and authority to perform the above.

 

Notwithstanding

the foregoing, Vital Images and its licensors shall have no liability for any

Legal Action based on or arising out of: 

(a) the failure by Licensee to use a non-infringing version or release

of the Products if made available by Vital Images, (b) the combination,

operation or use of the Products with software, hardware or data not furnished

by Vital Images, if such Legal Action would have been avoided by use of the

Products without such software, hardware or data, or (c) the use of any

Products in a manner for which it was neither designed nor contemplated.

 

In the event

that the Products are held or are believed by Vital Images to infringe, Vital

Images shall, at its option and expense, terminate the License to such

Products.

 

This Article

5.4 states Licensee’s exclusive remedy, and Vital Images’ and its licensors’

entire liability, for any infringement claim related to the Products or their

use.

 

ARTICLE 6: LIMITATION OF REMEDIES

 

6.1           Delay.  VITAL IMAGES SHALL NOT BE LIABLE FOR ANY

LOSS OR DAMAGE CAUSED BY DELAY IN FURNISHING PRODUCTS OR SERVICES OR ANY OTHER

PERFORMANCE UNDER THIS LICENSE AGREEMENT.

 

6.2           Sole Remedies.  THE SOLE AND EXCLUSIVE REMEDIES FOR BREACH

OF ANY AND ALL WARRANTIES AND THE SOLE REMEDIES FOR VITAL IMAGES’ LIABILITY OF

ANY KIND (INCLUDING LIABILITY FOR NEGLIGENCE OR PRODUCT LIABILITY) WITH RESPECT

TO THE PRODUCTS AND SERVICES COVERED BY THIS LICENSE AGREEMENT AND ALL OTHER

PERFORMANCE BY VITAL IMAGES UNDER THIS LICENSE AGREEMENT SHALL BE LIMITED TO

THE REMEDIES PROVIDED IN ARTICLE 5 OF THIS LICENSE AGREEMENT.

 

6.3           Damages

Limitation.  VITAL IMAGES SHALL HAVE

NO LIABILITY OF ANY KIND FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL

LOSS OR DAMAGE, EVEN IF VITAL IMAGES SHALL HAVE BEEN ADVISED OF THE POSSIBILITY

OF SUCH POTENTIAL LOSS OR DAMAGE, INCLUDING ANY LIABILITY FOR DAMAGES ARISING

OUT OF OR RESULTING FROM THE USE, MAINTENANCE OR PERFORMANCE OF THE PRODUCTS,

INCLUDING, WITHOUT LIMITATION, THE LOSS OR CORRUPTION OF LICENSEE’S OR ANY

THIRD PARTY DATA.  IN NO EVENT SHALL

VITAL IMAGES BE LIABLE FOR ANY DAMAGES IN EXCESS OF THE AGGREGATE AMOUNTS

ACTUALLY PAID BY LICENSEE TO VITAL IMAGES UNDER THIS LICENSE AGREEMENT.

 

ARTICLE 7:

CONFIDENTIALITY

 

7.1           Confidential

Information.  All Confidential

Information shall be deemed confidential and proprietary to Vital Images, and

are the sole and exclusive property of Vital Images.  Licensee may use the Confidential Information during the term of

this License Agreement only as permitted hereunder or as necessary in order to

use the Products in accordance with the License(s) granted hereunder.  Licensee shall not disclose or provide any

Confidential Information to any third party and shall take reasonable measures

to prevent any unauthorized disclosure by Licensee’s employees, agents,

contractors or consultants during the term hereof including appropriate

individual nondisclosure agreements.

 

7.2           Exclusions.  The following information shall not be

considered Confidential Information under this Article 7:

 

(a)           Information which is

or becomes in the public domain through no fault or act of Licensee;

 

(b)           Information which

was independently developed by Licensee without the use or reliance on Vital

Images’ Confidential Information;

 

(c)           Information which

was provided to Licensee by a third party under no duty of confidentiality to

Vital Images; or

 

(d)           Information which is

required to be disclosed by Licensee under law, provided, however, Licensee

gives prompt notice thereof to Vital Images prior to such disclosure.

 

7.3           Cooperation.  At Vital Images’ request, Licensee shall

cooperate fully with Vital Images in any and all legal actions taken by Vital

Images to protect its rights in the Products and in the Confidential

Information.  Vital Images shall bear

all costs and expenses reasonably incurred by Licensee in the course of

cooperating with Vital Images in such legal action.

 

ARTICLE 8: ARBITRATION

 

8.1           Dispute

Resolution.  Except as provided in

Article 8.2 below, Vital Images and Licensee shall each use its best efforts to

resolve any dispute between them promptly and without resort to any legal

process if feasible within thirty (30) days of receipt of a written notice by

one party to the other party of the existence of such dispute.  The foregoing requirement in this Article

8.1 shall be without prejudice to either party’s right, if applicable, to

terminate this License Agreement under Article 3.1 above.

 

8.2           Litigation Rights

Reserved.  If any dispute arises

with regard to Licensee’s unauthorized use of the Products or unauthorized use

or infringement of Confidential Information, Vital Images may seek any

available remedy at law or in equity from a court of competent jurisdiction.

 

8.3           Procedure for

Arbitration.  Except as provided in

Article 8.2 above, any dispute, claim or controversy arising out of or in

connection with this License Agreement which has not been settled through

negotiation within a period of thirty (30) days after the date on which either

party shall first have notified the other party in writing of the existence of

a dispute shall be settled by final and binding arbitration under the

then-applicable Commercial Arbitration Rules or, if Licensee’s principal place

of business is outside the United States, the International Arbitration Rules

of the American Arbitration Association (“AAA”).  Any such arbitration shall be conducted by three (3) arbitrators

appointed by mutual agreement of the parties or, failing such agreement, in

accordance with said Rules.  At least

one (1) arbitrator shall be an experienced computer software professional, and

at least one (1) arbitrator shall be an experienced business attorney with a

background in the licensing and distribution of computer software.  Any such arbitration shall be conducted in

Minneapolis, Minnesota, U.S.A. in the English language.  An arbitral award may be enforced in any

court of competent jurisdiction. 

Notwithstanding any contrary provision in the AAA Rules, the following

additional procedures and rules shall apply to any such arbitration:

 

(a)           Each party shall have the right to

request from the arbitrators, and the arbitrators shall order upon good cause

shown, reasonable and limited pre-hearing discovery, including (i) exchange of

witness lists, (ii) depositions under oath of named witnesses at a mutually

convenient location, (iii) written interrogatories and (iv) document requests.

 

(b)           Upon conclusion of

the pre-hearing discovery, the arbitrators shall promptly hold a hearing upon

the evidence to be adduced by the parties and shall promptly render a written

opinion and award.

 

(c)           The arbitrators may

not award or assess punitive damages against either party.

 

(d)           Each party shall

bear its own costs and expenses of the arbitration and one-half (1/2) of the

fees and costs of the arbitrators, subject to the power of the arbitrators, in

their sole discretion, to award all such reasonable costs, expenses and fees to

the prevailing party.

 

ARTICLE 9: MISCELLANEOUS

 

9.1           Assignment.  Licensee shall not have the right to assign

or otherwise transfer its rights or obligations under this License Agreement

except with the prior written consent of Vital Images, which consent shall be

at the sole discretion of Vital Images. 

This License Agreement shall be binding on the parties hereto and their

respective successors and permitted assigns. 

Any prohibited assignment shall be null and void.

 

9.2           Notices.  Notices permitted or required to be given

hereunder shall be deemed sufficient if given by registered or certified mail,

postage prepaid, return receipt requested, by private courier service, or by

facsimile addressed to the respective addresses of the parties as first above

written or at such other addresses as the respective parties may designate by

like notice from time to time.  Notices

so given shall be effective upon (a) receipt by the party to which the notice

is given, or (b) on the fifth (5th) day following domestic mailing

or the tenth (10th) day following international mailing, as may be

the case, whichever occurs first.

 

9.3           Exports and U.S.

Government Rights.  Licensee hereby

acknowledges that it will not export or reexport any of the Products or

technical data (which includes, among other things, any technical information

relating to the Products, written or otherwise), or any product incorporating

any Products or technical data.  The

Products are provided with Restricted Rights. 

Use, duplication or disclosure by the U.S. government is subject to

restrictions as set forth in (a) this License Agreement pursuant to DFARs

227.7202-3(a); (b) subparagraph (c)(1)(i) of the Rights in Technical Data and

Computer Software clause at DFARs 252.227-7013; or (c) the Commercial Computer

Software Restricted Rights clause at FAR 52.227-19 subdivision (c)(1) and (2),

as applicable.  Contractor/manufacturer

is Vital Images, Inc., 3100 West Lake Street, Suite 100, Minneapolis, Minnesota

55416 U.S.A.

 

9.4           Entire Agreement.  This License Agreement, including the

Exhibits attached hereto which are incorporated herein, constitutes the entire

agreement of the parties with respect to the subject matter hereof and

supersedes all prior agreements by and between Licensee and Vital Images as

well as all proposals, oral or written, and all prior negotiations,

conversations and discussions between the parties related hereto.

 

9.5           Amendment.  This License Agreement may not be modified,

amended, rescinded, canceled or waived, in whole or in part, except by written

amendment signed by both parties hereto.

 

9.6           Governing Law.  This License Agreement shall be governed by

and interpreted under the laws of the State of Minnesota, U.S.A., excluding (a)

its choice of law rules, and (b) the United Nations Convention on the

International Sale of Goods.

 

9.7           Severability.  If any provision of this License Agreement

is found unenforceable under any of the laws or regulations applicable thereto,

such provision terms shall be deemed stricken from this License Agreement, but

such invalidity or unenforceability shall not invalidate any of the other

provisions of this Agreement.

 

9.8           Waiver.  No failure by either party to take any

action or assert any right hereunder shall be deemed to be a waiver of such

right in the event of the continuation or repetition of the circumstances

giving rise to such right.

 

IN WITNESS

WHEREOF, the parties have executed this License Agreement by their duly

authorized representatives.

 

	

  VITAL

  IMAGES, INC.

  	

  LICENSEE

  
	

   

  	

   

  
	

   

  	

   

  
	

  By

  	

   

  	

   

  	

  By 

  	

   

  	

   

  
	

   

  	

   

  
	

  Name

  	

   

  	

   

  	

  Name 

  	

   

  	

   

  
	

   

  	

   

  
	

  Title

  	

   

  	

   

  	

  Title 

  	

   

  	

   

  
											

 

EXHIBIT 8.1

POTENTIAL CENTERS OF

EXCELLENCE

 

EXHIBIT 9.3

VITAL IMAGES, INC.

U.S. COLLABORATION SITES AS OF OCTOBER 1, 2001

 

Vital Images

also has foreign collaboration sites not listed above.  Vital Images reserves the right to negotiate

collaboration agreements with other hospitals and clinics.  As agreements with such sites are finalized

with U.S. hospitals and clinics, they will automatically be deemed

collaboration sites for purposes of the Agreement of which this Exhibit is a

party.  Vital Images will advise EZEM of

such additional collaboration sites from time to time upon request.

 

EXHIBIT 9.4

EXAMPLE

OF COMPUTATION

 

EXHIBIT 14.1

LIST OF VTAL AND EZEM

TRADEMARKS AND DESIRED REGISTRATIONS

 

LIST OF VITAL IMAGES

TRADEMARKS

 

Vitreaâ

 

VScoreÔ

 

VScore with EKG GateÔ

 

VScore with AutoGateÔ

 

VoxelViewâ

 

API for VoxelViewÒ

 

VoxelViewMacÒ

 

LIST OF EZEM

TRADEMARKS

 

EZEMâ

 

InnerviewGIÔ

 

EXHIBIT 19.1

ESCROW AGREEMENT

 

PREFERRED ESCROW AGREEMENT

 

Account Number

______________________

 

This agreement

(“Agreement”) is effective __________________, 20_____ among DSI Technology

Escrow Services, Inc. ("DSI"), Vital Images,

Inc. ("Depositor") and

(“Depositor”) and E-Z-EM, Inc., ("Preferred Beneficiary"), who collectively may

be referred to in this Agreement as the parties (“Parties”).

 

A.            Depositor and Preferred Beneficiary have entered or will

enter into a Development, Supply, Marketing and Distribution Agreement

regarding certain proprietary technology of Depositor (referred to in this

Agreement as the “DSM&D Agreement").

 

B.            Depositor desires to avoid disclosure of its proprietary

technology except under certain limited circumstances.

 

C.            The availability of the proprietary technology of

Depositor may be critical to Preferred Beneficiary in the conduct of its

business and, therefore, Preferred Beneficiary needs access to the proprietary

technology under certain limited circumstances.

 

D.            Depositor and Preferred Beneficiary desire to establish

an escrow with DSI to provide for the retention, administration and controlled

access of the proprietary technology materials of Depositor.

 

E.             The parties desire this Agreement to be supplementary to

the DSM&D Agreement pursuant to 11 United States [Bankruptcy] Code, Section

365(n).

 

ARTICLE 1  --  DEPOSITS

 

1.1           Obligation to Make Deposit.  Upon the signing of this Agreement by the

parties, Depositor shall deliver to DSI the proprietary technology and other

materials ("Deposit Materials") required to be deposited by the

DSM&D Agreement or, if the DSM&D Agreement does not identify the

materials to be deposited with DSI, then such materials will be identified on

Exhibit A.  If Exhibit A is applicable,

it is to be prepared and signed by Depositor and Preferred Beneficiary.  DSI shall have no obligation with respect to

the preparation, signing or delivery of Exhibit A.

 

1.2           Identification of Tangible Media.  Prior to the delivery of the Deposit

Materials to DSI, Depositor shall conspicuously label for identification each

document, magnetic tape, disk, or other tangible media upon which the Deposit

Materials are written or stored.  Additionally,

Depositor shall complete Exhibit B to this Agreement by listing each such

tangible media by the item label description, the type of media and the

quantity.  Exhibit B shall be signed by

Depositor and delivered to DSI with the Deposit Materials.  Unless and until Depositor makes the initial

deposit with DSI, DSI shall have no obligation with respect to this Agreement,

except the obligation to notify the parties regarding the status of the account

as required in Section 2.2 below.

 

1.3           Deposit

Inspection.  When DSI receives the

Deposit Materials and Exhibit B, DSI will conduct a deposit inspection by

visually matching the labeling of the tangible media containing the Deposit

Materials to the item descriptions and quantity listed on Exhibit B.  In addition to the deposit inspection, Preferred

Beneficiary may elect to cause a verification of the Deposit Materials in

accordance with Section 1.6 below.

 

1.4           Acceptance of Deposit.  At completion of the deposit inspection, if DSI determines that

the labeling of the tangible media matches the item descriptions and quantity

on Exhibit B, DSI will date and sign Exhibit B and mail a copy thereof to

Depositor and Preferred Beneficiary.  If

DSI determines that the labeling does not match the item descriptions or

quantity on Exhibit B, DSI will (a) note the discrepancies in writing on

Exhibit B; (b) date and sign Exhibit B with the exceptions noted; and (c) mail

a copy of Exhibit B to Depositor and Preferred Beneficiary.  DSI's acceptance of the deposit occurs upon

the signing of Exhibit B by DSI.  Delivery

of the signed Exhibit B to Preferred Beneficiary is Preferred Beneficiary's

notice that the Deposit Materials have been received and accepted by DSI.

 

1.5           Depositor's Representations.  Depositor represents as follows:

 

a.             Depositor lawfully possesses all of the Deposit

Materials deposited with DSI;

 

b.             Both the content and the media of the Deposit Materials

are not subject to any lien or other encumbrance inconsistent with or that

would prevent the implementation of the terms of this Agreement or the

DSM&D Agreement;

 

d.             The Deposit Materials consist of the proprietary

technology and other materials identified either in  the  DSM&D Agreement

or Exhibit A, as the case may be; and

 

e.             The

Deposit Materials are readable and useable in their current form or, if any

portion of the Deposit Materials is encrypted, the decryption tools and

decryption keys, as well as any specialized hardware or other tools necessary

to access the  Deposit Materials and

which are not otherwise available to Preferred Beneficiary, have also been

deposited.

 

1.6           Verification. 

Preferred Beneficiary shall have the right, at Preferred Beneficiary's

expense, to cause a verification of any Deposit Materials.  Preferred Beneficiary shall notify Depositor

and DSI of Preferred Beneficiary’s request for verification.  Depositor shall have the right to be present

at the verification.  A verification

determines, in different levels of detail, the accuracy, completeness,

sufficiency and quality of the Deposit Materials.  If a verification is elected after the Deposit Materials have

been delivered to DSI, then only DSI, or at DSI's election an independent

person or company selected and supervised by DSI, may perform the verification.

 

1.7           Deposit

Updates.  Unless otherwise provided

by the DSM&D Agreement, Depositor shall update the Deposit Materials within

30 days of each release of a new, revised or otherwise modified version of the

product which is subject to the DSM&D Agreement.  Such updates will be added to the existing deposit.  All deposit updates shall be listed on a new

Exhibit B and Depositor shall sign the new Exhibit B and provide the Preferred

Beneficiary with a copy thereof.  Each

Exhibit B will be held and maintained separately within the escrow

account.  An independent record will be

created which will document the activity for each Exhibit B.  The processing of all deposit updates shall

be in accordance with Sections 1.2 through 1.6 above.  All references in this Agreement to the Deposit Materials shall

include the initial Deposit Materials and any updates.

 

1.8           Removal of Deposit Materials.  The Deposit Materials may be removed and/or

exchanged only on written instructions signed by Depositor and Preferred

Beneficiary, or as otherwise provided in this Agreement.

 

ARTICLE 2  -- CONFIDENTIALITY AND RECORD KEEPING

 

2.1           Confidentiality. 

DSI shall maintain the Deposit Materials in a secure, environmentally

safe, locked facility which is accessible only to authorized representatives of

DSI.  DSI shall have the obligation to

reasonably protect the confidentiality of the Deposit Materials.  Except as provided in this Agreement, DSI

shall not disclose, transfer, make available, or use the Deposit

Materials.  DSI shall not disclose the

content of this Agreement to any third party. 

If DSI receives a subpoena or any other order from a court or other

judicial tribunal pertaining to the disclosure or release of the Deposit

Materials, DSI will immediately notify the parties to this Agreement unless

prohibited by law.  It shall be the

responsibility of Depositor and/or Preferred Beneficiary to challenge any such

order; provided, however, that DSI does not waive its rights to present its

position with respect to any such order. 

DSI will not be required to disobey any 

order from a court or other judicial tribunal.  (See Section 7.5 below for notices of requested orders.)

 

2.2           Status Reports. 

DSI will issue to Depositor and Preferred Beneficiary a report profiling

the account history at least semi-annually. 

DSI may provide copies of the account history pertaining to this

Agreement upon the request of any party to this Agreement.

 

2.3           Audit Rights. 

During the term of this Agreement, Depositor and Preferred Beneficiary

shall each have the right to inspect the written records of DSI pertaining to

this Agreement.  Any inspection shall be

held during normal business hours and following reasonable prior notice.

 

ARTICLE 3  --  GRANT OF

RIGHTS TO DSI

 

3.1           Title to Media. 

Depositor hereby transfers to DSI the title to the media upon which the

proprietary technology and materials are written or stored.  However, this transfer does not include the

ownership of the proprietary technology and materials contained on the media

such as any copyright, trade secret, patent or other intellectual property

rights.

 

3.2           Right

to Make Copies.  DSI shall have the

right to make copies of the Deposit Materials as reasonably necessary to

perform this Agreement.  DSI shall copy

all copyright, nondisclosure, and other proprietary notices and titles

contained on the Deposit Materials onto any copies made by DSI.  With all Deposit Materials submitted to DSI,

Depositor shall provide any and all instructions as may be necessary to

duplicate the Deposit Materials including but not limited to the hardware

and/or software needed.

 

3.3           Right to Transfer Upon Release.  Depositor hereby grants to DSI the right to

transfer the Deposit Materials to Preferred Beneficiary upon any release of the

Deposit Materials for use by Preferred Beneficiary in accordance with Section

4.5.  Except upon such a release or as

otherwise provided in this Agreement, DSI shall not transfer the Deposit

Materials.

 

ARTICLE 4  -- RELEASE OF DEPOSIT

 

4.1           Release

Conditions.  As used in this

Agreement, "Release Condition" shall mean Depositor's failure to

carry out in any material respect the obligations imposed on it pursuant to the

DSM&D Agreement insofar as carrying out such obligations require possession

of some or all of the Deposit Materials, which failure continues to a period of

thirty (30) days following written notice thereof from Preferred Beneficiary.

 

4.2           Filing For Release.  If Preferred Beneficiary believes in good faith that a Release

Condition has occurred, Preferred Beneficiary may provide to DSI written notice

of the occurrence of the Release Condition and a request for the release of the

Deposit Materials.  Upon receipt of such

notice, DSI shall provide a copy of the notice to Depositor by commercial

express mail.

 

4.3           Contrary Instructions.  From the date DSI mails the notice requesting release of the

Deposit Materials, Depositor shall have ten business days to deliver to DSI

contrary instructions ("Contrary Instructions").  Contrary Instructions shall mean the written

representation by Depositor that a Release Condition has not occurred or has

been cured.  Upon receipt of Contrary

Instructions, DSI shall send a copy to Preferred Beneficiary by commercial

express mail.  Additionally, DSI shall

notify both Depositor and Preferred Beneficiary that there is a dispute to be

resolved pursuant to Section 7.3 of this Agreement.  Subject to Section 5.2 of this Agreement, DSI will continue to

store the Deposit Materials without release pending (a) joint instructions from

Depositor and Preferred Beneficiary; (b) dispute resolution pursuant to Section

7.3; or (c) order of a court, which ever first occurs.

 

4.4           Release of Deposit.  If DSI does not receive Contrary Instructions from the Depositor,

DSI is authorized to release the Deposit Materials to the Preferred

Beneficiary.  However, DSI is entitled to

receive any fees due DSI before making the release.  Any copying expense in excess of $300 will be chargeable to

Preferred Beneficiary.  This Agreement

will terminate upon the release of the Deposit Materials held by DSI.

 

4.5           Right to Use Following Release.  Unless otherwise provided in the DSM&D

Agreement, upon release of the Deposit Materials in accordance with this

Article 4, Preferred Beneficiary shall have the right to use the Deposit

Materials for the sole purpose of continuing the benefits afforded to Preferred

Beneficiary by the DSM&D Agreement. 

Preferred Beneficiary shall be obligated to maintain the confidentiality

of the released Deposit Materials.

 

ARTICLE 5  --  TERM AND TERMINATION

 

5.1           Term of Agreement. 

The initial term of this Agreement is for a period of one year.  Thereafter, this Agreement shall

automatically renew from year-to-year unless: 

(a) Depositor and Preferred Beneficiary jointly instruct DSI in writing

that the Agreement is terminated; or (b) DSI instructs Depositor and Preferred

Beneficiary in writing that the Agreement is terminated for nonpayment in

accordance with Section 5.2 or by resignation in accordance with Section 5.3 or

(c) if so ordered by an arbitrator or a court. 

If the Deposit Materials are subject to another escrow agreement with

DSI, DSI reserves the right, after the initial one year term, to adjust the

anniversary date of this Agreement to match the then prevailing anniversary

date of such other escrow arrangements.

 

5.2           Termination for Nonpayment.  In the event of the nonpayment of fees owed

to DSI, DSI shall provide written notice of delinquency to all parties to this

Agreement.  Any party to this Agreement

shall have the right to make the payment to DSI to cure the default.  If the past due payment is not received in

full by DSI within one month of the date of such notice, then DSI shall have

the right to terminate this Agreement at any time thereafter by sending written

notice of termination to all parties. 

DSI shall have no obligation to take any action under this Agreement so

long as any payment due to DSI remains unpaid.

 

5.3           Termination by Resignation.  DSI reserves the right to terminate this

Agreement, for any reason, by providing Depositor and Preferred Beneficiary

with 60-days’ written notice of its intent to terminate this Agreement.  Within the 60-day period, the Depositor and

Preferred Beneficiary may provide DSI with joint written instructions

authorizing DSI to forward the Deposit Materials to another escrow company

and/or agent or other designated recipient. 

If DSI does not receive said joint written instructions within 60 days

of the date of DSI’s written termination notice, then DSI shall destroy, return

or otherwise deliver the Deposit Materials in accordance with Section 5.4.

 

5.4           Disposition of Deposit Materials

Upon Termination.  Subject to the

foregoing termination provisions, and upon termination of this Agreement, DSI

shall destroy, return, or otherwise deliver the Deposit Materials in accordance

with Depositor’s instructions.  If there

are no instructions, DSI may, at its sole discretion, destroy the Deposit

Materials or return them to Depositor. 

DSI shall have no obligation to destroy or return the Deposit Materials

if the Deposit Materials are subject to another escrow agreement with DSI or have

been released to the Preferred Beneficiary in accordance with Section 4.4.

5.5           Survival of Terms Following Termination.  Upon termination of this Agreement, the

following provisions of this Agreement shall survive:

 

a.             Depositor's Representations (Section 1.5);

 

b.             The obligations of confidentiality with respect to the

Deposit Materials;

 

c.             The rights granted in the sections entitled Right to

Transfer Upon Release (Section 3.3) and Right to Use Following Release (Section

4.5), if a release of the Deposit Materials has occurred prior to termination;

 

d.             The obligation to pay DSI any fees and expenses due;

 

e.             The provisions of Article 7; and

 

f.              Any provisions in this Agreement which specifically

state they survive the termination of this Agreement.

 

ARTICLE 6  --  DSI'S FEES

 

6.1           Fee Schedule. 

DSI is entitled to be paid its standard fees and expenses applicable to

the services provided.  DSI shall notify

the party responsible for payment of DSI's fees at least 60 days prior to any

increase in fees.  For any service not

listed on DSI's standard fee schedule, DSI will provide a quote prior to

rendering the service, if requested. 

Preferred Beneficiary and Depositor shall each be responsible for one

half of the initial and any annual fees payable hereunder.  The person requesting any service requiring

the payment of any additional fees shall pay such fees.

 

6.2           Payment Terms. 

DSI shall not be required to perform any service unless  the payment for such service and any

outstanding balances owed to DSI are paid in full.  Fees are due upon receipt of a signed contract or receipt of the

Deposit Materials whichever is earliest. 

If invoiced  fees  are not paid, DSI may terminate this

Agreement in accordance with Section 5.2.

 

ARTICLE 7  --  LIABILITY

AND DISPUTES

 

7.1           Right to Rely on Instructions.  DSI may act in reliance upon any

instruction, instrument, or signature reasonably believed by DSI to be

genuine.  DSI may assume that any

officer of a party to this Agreement who gives any written notice, request, or instruction

has the authority to do so.  DSI will

not be required to inquire into the truth or evaluate the merit of any

statement or representation contained in any notice or document.  DSI shall not be responsible for failure to

act as a result of causes beyond the reasonable control of DSI.

 

7.2           Indemnification. 

Depositor and Preferred Beneficiary each agree to indemnify, defend and

hold harmless DSI from any and all claims, actions, damages, arbitration fees

and expenses, costs, attorney's fees and other liabilities (“Liabilities”)

incurred by DSI relating in any way to this escrow arrangement except to the

extent that such Liabilities were caused by the negligence, recklessness or

willful misconduct of DSI.

 

7.3           Dispute Resolution.  Any dispute relating to or arising from this Agreement shall be

resolved by arbitration under the Commercial Rules of the American Arbitration

Association by one arbitrator selected in accordance with such rules.  Unless otherwise agreed by

Depositor and Preferred Beneficiary, arbitration will take place in San

Francisco, California, U.S.A.  Any court

having jurisdiction over the matter may enter judgment on the award of the

arbitrator(s).  Service of a petition to

confirm the arbitration award may be made by First Class mail or by commercial

express mail, to the attorney for the party or, if unrepresented, to the party

at the last known business address.

 

7.4           Controlling

Law.  This Agreement is to be

governed and construed in accordance with the laws of the State of California,

without regard to its conflict of law provisions.

 

7.5           Notice of Requested Order.  If any party intends to obtain an order from

the arbitrator or any court of competent jurisdiction which may direct DSI to

take, or refrain from taking any action, that party shall:

 

a.             Give DSI at least two business days' prior notice of the

hearing;

 

b.             Include in any such

order that, as a precondition to DSI's obligation, DSI be paid in full for any

past due fees and be paid for the reasonable value of the services to be

rendered pursuant to such order; and

 

c.             Ensure that DSI not be required to deliver the original

(as opposed to a copy) of the Deposit Materials if DSI may need to retain the

original in its possession to fulfill any of its other duties.

 

ARTICLE 8  -- GENERAL

PROVISIONS

 

8.1           Entire Agreement. 

This Agreement, which includes Exhibits described herein, embodies the

entire understanding among the parties with respect to its subject matter and

supersedes all previous communications, representations or understandings,

either oral or written.  DSI is not a

party to the DSM&D Agreement between Depositor and Preferred Beneficiary

and has no knowledge of any of the terms or provisions of any such DSM&D

Agreement.  DSI’s only obligations to

Depositor or Preferred Beneficiary are as set forth in this Agreement.  No amendment or modification of this

Agreement shall be valid or binding unless signed by all the parties hereto,

except that Exhibit A need not be signed by DSI, Exhibit B need not be signed

by Preferred Beneficiary and Exhibit C need not be signed.

 

8.2           Notices. 

All notices, invoices, payments, deposits and other documents and

communications shall be given to the parties at the addresses specified in the

attached Exhibit C.  It shall be the

responsibility of the parties to notify each other as provided in this Section

in the event of a change of address. 

The parties shall have the right to rely on the last known address of

the other parties.  Unless otherwise

provided in this Agreement, all documents and communications may be delivered

by First Class mail.

 

8.3           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.

 

8.4           Successors.  This Agreement shall be binding upon and

shall inure to the benefit of the

successors and assigns of

the parties.  However, DSI shall have no

obligation in performing this Agreement to recognize any successor or assign of

Depositor or Preferred Beneficiary unless DSI receives clear, authoritative and

conclusive written evidence of the change of parties.

 

8.5           Regulations. 

Depositor and Preferred Beneficiary are responsible

for and warrant compliance with all applicable laws, rules and regulations,

including but not limited to customs laws, import, export, and re-export laws

and government regulations of any country from or to which the Deposit

Materials may be delivered in accordance with the provisions of this Agreement.

 

 

	

  Vital

  Images, Inc., Depositor

  	

  E-Z-EM,

  Inc., referred Beneficiary

  
	

  By

  	

   

  	

   

  	

  By 

  	

   

  	

   

  
	

   

  	

   

  
	

  Name

  	

   

  	

   

  	

  Name:  Anthony A. Lombardo

  
	

   

  	

   

  
	

  Title

  	

   

  	

   

  	

  Title:  President

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Date:

  	

   

  	

   

  	

  Date:

  	

   

  	

   

  
									

 

 

	

   

  	

  DSI

  Technology Escrow Services, Inc.

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Name:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Title:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Date:

  	

   

  	

   

  
						

 

EXHIBIT A

 

MATERIALS TO BE DEPOSITED

 

Account Number

______________________

 

Depositor represents to

Preferred Beneficiary that Deposit Materials delivered to DSI shall consist of

the following:

 

	

   

  	

   

  	

   

  
	

  Depositor

  	

   

  	

  Preferred

  Beneficiary

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  

  	

   

  	

   

  	

  By:

  	

   

  
	

  Name:

  	

   

  	

   

  	

  Name:  Anthony A. Lombardo

  
	

  Title:

  	

   

  	

   

  	

  Title:  President

  
	

  Date:

  	

   

  	

   

  	

  Date:

  	

   

  
									

 

EXHIBIT B

DESCRIPTION

OF DEPOSIT MATERIALS

 

	

  Depositor

  Company Name

  	

   

  
	

   

  
	

  Account

  Number

  	

   

  
			

 

20.           Product Name Version

 

(Product Name will

appear as the Exhibit B Name on Account History report)

 

DEPOSIT MATERIAL

DESCRIPTION:

 

	

  Quantity

  	

   

  	

  Media Type

  & Size

  	

   

  	

  Label

  Description of Each Separate Item

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Disk 3.5” or

  ____

  	

   

  	

   

  
	

   

  	

   

  	

  DAT tape

  ____mm

  	

   

  	

   

  
	

   

  	

   

  	

  CD-ROM

  	

   

  	

   

  
	

   

  	

   

  	

  Data cartridge

  tape ____

  	

   

  	

   

  
	

   

  	

   

  	

  TK 70 or

  ____ tape

  	

   

  	

   

  
	

   

  	

   

  	

  Magnetic

  tape ____

  	

   

  	

   

  
	

   

  	

   

  	

  Documentation

  	

   

  	

   

  
	

   

  	

   

  	

  Other

  ______________________

  	

   

  	

   

  
						

 

PRODUCT DESCRIPTION:

Environment

_____________________________________________________________________________________

 

DEPOSIT MATERIAL

INFORMATION:

Is the media or are any of the files encrypted?  Yes / No  

If yes, please include any passwords and the decryption tools.

Encryption tool name____________________________________ Version

Hardware required 

_________________________________________________________________________________

Software required   

_________________________________________________________________________________

Other required

information____________________________________________________________________________

 

	

  I certify

  for Depositor

  that the above described

  	

   

  	

  DSI has inspected

  and accepted the above

  
	

  Deposit

  Materials have been transmitted to DSI:

  	

   

  	

  materials (any

  exceptions are noted above):

  

 

	

  Signature______________________________

  	

   

  	

  Signature

  ____________________________

  
	

  Print Name

  ____________________________

  	

   

  	

  Print

  Name___________________________

  
	

  Date

  _________________________________

  	

   

  	

  Date

  Accepted ________________________

  
	

   

  	

   

  	

  Exhibit B#

  ___________________________

  

 

Send materials to: DSI, 9265 Sky Park Ct., Suite 202, San Diego, CA

92123        (858) 499-1600

 

EXHIBIT C

 

DESIGNATED CONTACT

 

Account Number

______________________

 

	

  Notices,

  deposit material returns and communications to Depositor  should be addressed to:

  	

   

  	

  Invoices

  to Depositor should be addressed to:

  
	

   

  	

   

  	

   

  
	

  Company

  Name:  Vital Images, Inc.

  

  Address:  3300 Fernbrook Lane North

  Plymouth

  Minnesota 55447

  Designated

  Contact:  Albert Emola, President and

  CEO

  Telephone:  763-852-4171

  Facsimile:  763-852-4110

  E-mail: 

  aemola@vitalimages.com

  	

   

  	

  Vital

  Images, Inc.

  3300

  Fernbrook Lane North

  Plymouth

  Minnesota 55447

  Contact:  Greg Furness, CFO

  E-mail:  gfurness@vitalimages.com

  
	

   

  	

   

  	

   

  
	

  Notices

  and communications to Preferred Beneficiary should be addressed to:

  	

   

  	

  Invoices

  to Preferred Beneficiary should be addressed to:

  
	

   

  	

   

  	

   

  
	

  Company

  Name:  E-Z-Em, Inc.

  Address:  717 Main Street

  Westbury,

  NY  11590

  Designated

  Contact: Anthony A. Lombardo, President and CEO

  Telephone:

  (515) 333-8230

  Facsimile:

  (515) 333-8209

  E-mail:

  alombardo@ezem.com

  	

   

  	

  E-Z-Em,

  Inc.

  717

  Main Street

  Westbury,

  NY  11590

  Contact:Dennis

  Curtin, Senior Vice President and CFO

  _______________________________________

  E-mail:  dcurtin@ezem.com

  

 

Requests from Depositor or

Preferred Beneficiary to change the designated contact should be given in

writing by the designated contact or an authorized employee of Depositor or

Preferred Beneficiary.

 

	

  Contracts, Deposit Materials and notices to

  DSI should be addressed to:

  	

  Invoice inquiries and fee remittances

  to DSI should be addressed to:

  
	

   

  	

   

  
	

  DSI

  Technology Escrow Services, Inc.

  Contract

  Administration 

  9265

  Sky Park Court, Suite 202

  San

  Diego, CA 92123

  Telephone:  (858) 499-1600

  Facsimile:(858)

  694-1919

  E-mail:  ca@dsiescrow.com

  	

  DSI

  Technology Escrow Services, Inc.

  PO

  Box 45156

  San

  Francisco, CA  94145-0156

  (858)

  499-1636

  (858)

  499-1637

  
	

   

  	

   

  
	

  Date:

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