Document:

Exhibit 10.16

 

AMENDMENT NO. 1 TO

MARKETING AND DISTRIBUTION AGREEMENT

DATED MARCH 30, 2007 BETWEEN

VITAL IMAGES, INC. AND TOSHIBA MEDICAL SYSTEMS CORPORATION

 

THIS AMENDMENT NO. 1 (the “Amendment”) is
made as of November 26, 2007 by and between Vital Images, Inc., a Minnesota corporation having its principal
place of business at 5850 Opus Parkway, Suite 300, Minnetonka, Minnesota
55343 USA (“Vital Images”)  and Toshiba Medical Systems Corporation having
its place of business at 1385, Shimoishigami, Otawara-Shi, Tochigi 324-8550,
Japan (“Toshiba”).

 

This
Amendment modifies the Marketing and Distribution Agreement dated March 30,
2007 between the parties. Under this Amendment, the following items in the
Agreement are modified as set forth below:

 

1.             Article 4.5
(“Customer Training”): This Article is amended by inserting, at the end of
the Article, the following: “Vital Images is under no obligation to provide
applications training to end users beyond twelve (12) months from installation
of the related software at the end users’ site.”

 

2.             Article 8.1
(“Government Approval”): This Article is amended to include the following
sentence: “Notwithstanding the above, Toshiba shall prepare and file all
applications required to obtain all necessary Government Approval for Japan for
the Products set forth in this Amendment No. 1.  Vital Images shall
furnish Toshiba with such assistance and cooperation as may be reasonably
requested in connection with the securing of such Government Approval.”

 

3.             Article 12.7 (“Co-Branding”): This Article is
newly added, to state the following: “Toshiba
and Vital Images will co-brand to the benefit of both parties the Products
provided pursuant to Exhibit E of this Amendment No. 1. The details
of the cobranding will be agreed upon by both parties prior to the market
launch of such Products.”

 

4.             Exhibit A:
The Products set forth on Exhibit A to this Amendment shall be added to Exhibit A
of the Agreement.

 

5.             Exhibit B:
The Territory as set forth in Exhibit B of the Agreement shall be amended
to state the following: “Worldwide, except for those countries barred by the
Office of Foreign Assets Control (“OFAC”) of the U.S. Department of the
Treasury.”

 

6.             Exhibit E:
The pricing for licenses of and maintenance for the Products provided under this
Amendment are set forth in Exhibit E to this Amendment, which shall be
added to the Agreement.

 

7.             This
Amendment shall take effect retroactively as of January 1, 2007.

 

8.             Except
as amended hereby, the Agreement shall remain in full force and effect in accordance
with its original terms. The amended portions of the Agreement shall be read,
wherever reasonable to do so, to be consistent with the portions not so
amended; provided that the amended portions shall be deemed to control and any
conflict shall be resolved in favor of such amended portions.

 

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be executed by their duly authorized
representatives below.

 

	
  VITAL IMAGES, INC.

  	
   

  	
  TOSHIBA MEDICAL SYSTEMS 

  CORPORATION

  
	
   

  	
   

  	
   

  
	
  By 

  	
  /s/ Susan A. Wood

  	
   

  	
  By 

  	
  /s/ Yusuke Toki

  
	
   

  	
   

  	
   

  	
   

  
	
  Name 

  	
  Susan A. Wood

  	
   

  	
  Name

  	
  Yusuke Toki

  
	
   

  	
   

  	
   

  
	
  Title 

  	
  Executive Vice President,
  Product Marketing

  	
   

  	
  Title

  	
  CT General Manager

  
	
   

  	
  and Development

  	
   

  	
   

  
									

 

 

EXHIBIT A

PRODUCTS

 

Exhibit A of the Agreement  is modified by adding the following products:

 

	
  #*

  
	
  #*

  
	
  #*

  
	
  #*

  

 

*when and if available

 

# Confidential Treatment has been
requested, the portion indicated has been redacted and the redacted portion has
been separately filed with the Securities and Exchange Commission.

 

 

EXHIBIT B

TERRITORY

 

Worldwide,
except for those countries barred by the

 

Office of Foreign Assets Control (“OFAC”) of
the U.S. Department of the Treasury

 

 

EXHIBIT E

PRODUCT PRICE LIST

 

Exhibit E
of the Agreement
is modified by adding the following package and maintenance prices:

 

ADDITIONAL SOFTWARE PACKAGE
PRICING

 

	
  Package
  

  	
   

  	
  Pricing

  
	
   

  	
  U.S.A. 

  (2007)

  	
   

  	
  Non-U.S.A. 

  (2007)

  
	
  Genesis 

  	
   

  	
  $

  	
   #

  	
   

  	
  $

  	
   #

  
	
  ·    Vitrea â

  	
   

  	
   

  	
   

  	
   

  
	
  ·    CT Colonography option 

  	
   

  	
   

  	
   

  	
   

  
	
  ·    Automated Vessel Measurements option 

  	
   

  	
   

  	
   

  	
   

  
	
  ·    VScoreÔ
  option 

  	
   

  	
   

  	
   

  	
   

  
	
  ·    Peripheral Vessel Probe option 

  	
   

  	
   

  	
   

  	
   

  
	
  ·    CT Cardiac option 

  	
   

  	
   

  	
   

  	
   

  
	
  ·    Cardiac Functional Analysis option 

  	
   

  	
   

  	
   

  	
   

  
	
  ·    # * 

  	
   

  	
   

  	
   

  	
   

  
	
  ·    sure PLAQUETM option 

  	
   

  	
   

  	
   

  	
   

  
	
  ·    # * 

  	
   

  	
   

  	
   

  	
   

  
	
  ·    # * 

  	
   

  	
   

  	
   

  	
   

  
	
  ·    # *

  	
   

  	
   

  	
   

  	
   

  
							

 

*when and if available

 

ADDITIONAL MAINTENANCE PRICING
OPTIONS

 

	
  Service

  	
   

  	
  U.S.A.

  (2007)

  	
   

  	
  Non-U.S.A. 

  (2007)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Genesis Package

  	
   

  	
  $

  	
  #

  	
   

  	
  $

  	
  #

  
							

 

# Confidential Treatment has been
requested, the portion indicated has been redacted and the redacted portion has
been separately filed with the Securities and Exchange Commission.Exhibit 10.17

 

AMENDMENT NO. 2 TO

MARKETING AND DISTRIBUTION AGREEMENT

DATED MARCH 30, 2007 BETWEEN

VITAL IMAGES, INC. AND TOSHIBA MEDICAL SYSTEMS CORPORATION

 

THIS AMENDMENT NO. 2 (the “Amendment”) is
made as of November 26, 2007 by and between Vital Images, Inc., a Minnesota corporation having its principal
place of business at 5850 Opus Parkway, Suite 300, Minnetonka, Minnesota
55343 USA (“Vital Images”)  and Toshiba Medical Systems Corporation having
its place of business at 1385, Shimoishigami, Otawara-Shi, Tochigi 324-8550,
Japan (“Toshiba”).

 

This
Amendment modifies the Marketing and Distribution Agreement dated March 30,
2007 as amended by the Amendment No. 1 dated November 26, 2007 made between the parties (hereinafter collectively
called as “Agreement”). Under this Amendment, the following items in the
Agreement are modified as set forth below:

 

1.             Exhibit A (Products): The
Products set forth on Exhibit A to this Amendment shall be added to Exhibit A
of the Agreement as Products for Japan.

 

2.             Exhibit B (Territory): “Japan”
shall be added as Territory and the Territory as set forth in Exhibit B of
the Agreement shall be amended as set forth on Exhibit B to this
Amendment.

 

3.             Exhibit E (Product Price List):
Pricing for “Non-USA” set forth on Exhibit E to this Amendment shall apply
for the prices of Products for Japan.

 

4.             Article 1.8 (“First Level
Installation”): This Article is amended by inserting, at the end of the
Article, the following:

 

“ With regard to the Products for Japan, Toshiba performs unloading,
assembling and powering up the applicable computer workstation(s), installing
the Products onto such computer workstation(s) in its factory before
shipping the Products to the customer sites and integrating such computer
workstation(s) onto the customer’s computer network.

 

5.             Article 2.1 (“Scope”):  With regard to the Products for Japan, the
first sentence of this Article providing appointment of Toshiba as Vital
Images’ non-exclusive reseller of the Products is replaced by the following
sentence:

 

“Toshiba
may, at its discretion, install the Products as an option onto computer
workstation(s) to link to Toshiba CT equipment (hereinafter collectively
called as “Toshiba CT System(s)”) to be distributed, sold, leased or otherwise
disposed by Toshiba in Japan, but may not distribute, sell, lease or otherwise
dispose of the Products in any other manner.”

 

6.             Article 2.1
(“Scope”):  With regard to the Products
for Japan, the words “failed hardware replacement” is added to the second
sentence of this Article and the sentence is replaced by the following:

 

“All sublicenses of
the Products are one-time sublicenses, whether or not they are granted on a
term or perpetual basis, and after the initial sublicense of any Product to a
customer, Toshiba or the Dealer Associates may not sublicense any Products that
are returned by that customer, provided that Toshiba may reinstall Products
without paying an additional license fee when such reinstallation is in
connection with a

 

 

customer trade-in,
failed hardware replacement or upgrade of equipment purchased from Toshiba and
it is the same customer for which the software was initially licensed.”

 

7.             Article 2.3 (“Use of Terms”):  This Article is amended by inserting, at
the end of the Article, the following:

 

“With
regard to the Products for Japan, all words, “reseller of Products”, as
elsewhere provided in the Agreement shall be replaced by the words, “licensee
of Products”, provided that no rights shall accrue to Toshiba as a licensee of
the Products for Japan except as expressly set forth herein.

 

8.             Article 3.1 (“Marketing”)
(a):  With regard to the Products for
Japan, this item (a) is replaced by the following sentence:

 

“To
use its commercially reasonable best efforts to further the promotion,
marketing and distribution of the Toshiba CT Systems in Japan at Toshiba’s
discretion;”

 

9.             Article 3.2 (“Toshiba
Demonstration License”):  With regard to
the Products for Japan, the language in the first sentence of this Article, “To
enable Toshiba to better perform its marketing and distribution of the Products”
is replaced by the following language:

 

“To
enable Toshiba to better perform its marketing and distribution of the Toshiba
CT Systems”

 

10.           Exhibit G (Products): The following
trade shows shall be added to Exhibit G of the Agreement, at which trade
shows Toshiba may demonstrate the Products, including the Products for Japan,
provided that attendance by Vital Images is not required.

 

“Japan
Radiology Congress/International Technical Exhibition of Medical Imaging (JRC/JIRA)

Japanese
Congress of Cardiology (JCC)

The
Japanese Circulation Society (JCS)

Japan
Digestive Disease Week (JDDW)

Japan
Neurosurgical Society (JNS)

Other
trade shows as may be designated by Toshiba”

 

11.           Article 4.4 (“Training”):  This Article is amended by inserting, at
the end of the Article, the following:

 

“With
regard to the Products for Japan, Vital Images shall provide appropriate
training, minimum two times, two days for each, at no charge, with Toshiba’s
designate personnel who will train Toshiba’s engineers, service personnel, at
mutually agreeable location in Japan. To enable Toshiba to better perform its
training to engineers, service and application personnel, Vital Images grants
to Toshiba the right to produce and copy training materials, either in English
or Japanese, modifying Vital Images’s materials.”

 

12.           Article 4.5 (“Customer Training”):  This Article is amended by inserting, at
the end of the Article, the following:

 

“Notwithstanding
the foregoing, with regard to the Products for Japan, Toshiba shall provide
customer training to Toshiba’s customer of Toshiba CT Systems.”

 

 

13.           Article 5.1 (“Purchase Orders”):  This Article is amended by inserting, at
the end of the Article, the following:

 

“
With regard to the Products for Japan, Toshiba may order Products to Vital
Images and pay for the Products, through the following Toshiba’s agent (“Agent”).

 

Agent:

Toshiba
America, Inc. (Boston)

24
New England Executive Park,

Burlington
MA, 01803, U.S.A.

Attention:
Branch Manager

 

For
the purpose of this Agreement, Toshiba hereby appoints Agent as its authorized
agent having an authority to perform any and all of Toshiba’s obligations and
undertakings under this Agreement under its own name and on behalf of Toshiba,
including, without limitation:

 

(a) to
submit purchase orders for the Products;

(b) to
receive shipments of the Products and invoices therefore;

(c) to
make payments due to the Vital Images for the Products purchased;

(d) to
confirm and follow up deliveries of the Products; and

(e) to
return the defective or non-conforming Products.

 

Notwithstanding
anything else contained herein, Toshiba shall remain directly liable to the
Vital Images for all actions taken by Agent. Toshiba may, at its sole
discretion but with at least forty-five (45) days prior written notice to the
Vital Images, withdraw all of the authority of Agent provided above. Upon
receipt of such notice, the parties shall agree upon alternative procedural
arrangements in order to ensure the orderly and timely supply of the Products
to Toshiba hereunder and payment therefore.

 

14.           Article 5.5 (“Purchase
Commitment “):  This Article is
amended by inserting, at the end of the Article, the following:

 

“For
the avoidance of doubt, Toshiba’s payment for the Products for Japan shall be
included in the minimum purchase Commitments set forth on Exhibit F.”

 

15.           Article 7.1
(“Prices”):  With regard to the Prices
for Japan, the words “and Product for Japan” is added to the first sentence in
the second paragraph of this Article and the sentence is replaced by the
following:

 

“In
recognition of the purchase commitments made by Toshiba and its Dealer
Associates pursuant to Section 5.5 of this Agreement, Vital Images hereby
covenants and agrees that the transfer price charged to Toshiba and its Dealer
Associates for the standalone Products and Product for Japan shall at all
times be lowest transfer price charged by Vital Images to anyone, except for
governmental customers, research sites, training sites, show sites, luminaries,
collaborators, and resolution of customer satisfaction issues.”

 

16.           Article 7.2 (“Payment Terms”):  This Article is amended by inserting, at
the end of the Article, the following:

 

“Toshiba
shall seek an exemption from withholding tax obligations to the extent
available under applicable tax treaties between U.S.A. and Japan, and Vital
Images shall reasonably cooperate with Toshiba in completing and executing any
documents necessary for obtaining such exemption, including, without
limitation, providing Toshiba with the U.S. residency certificates, completing
and executing relevant documents to be submitted to applicable taxation
authorities.”

 

 

17.           Article 8.1 (“Government
Approval”): This Article is amended to include the following sentence:

 

“Notwithstanding
the above, with regard to the Products for Japan, it is understood between the
parties that Toshiba will (i) be a # solely for the purpose
of Government Approval of the Toshiba CT System incorporating the Products
as option (provided that Toshiba’s status or appearance as such # and
this Article 8.1 shall not affect the provisions in Article 3.4 nor
Vital Images’s status as the developer of the Products and owner of all rights
therein), and (ii) be required to file all applications required to
obtain all necessary registration and/or Government Approval, including,
without limitation, approval under the Pharmaceutical Affairs Laws of Japan as
may be amended from time to time, for the Toshiba CT System to be sold by
Toshiba in Japan.  Vital Images shall furnish Toshiba with such assistance
and cooperation as may be reasonably requested in connection with the securing
of such Government Approval.”

 

18.           Article 8.4 (“Corrective Action “)
(a) (“Notice of Corrective Action”): 
This Article is amended by inserting, at the end of the Article,
the following:

 

“With
regard to the Products for Japan,  if TOSHIBA believes
that a corrective action with respect to the Products incorporated in the
Toshiba CT Systems is desirable or required by law, or if any governmental
agency having jurisdiction (including, without limitation, Ministry of Health,
Labour and Welfare) shall request or order any corrective action with respect
to the Products incorporated in the Toshiba CT Systems, including any recall,
customer notice, restriction, change, corrective action or market action or any
Product change, TOSHIBA shall promptly notify Vital Images. Any and all
corrective actions shall be conducted at the expense of Vital Images, except
costs associated with notifying customers of such corrective action. Toshiba
shall maintain complete and accurate records, for such periods as may be
required by applicable law, of all Toshiba CT Systems they sold. The parties
shall cooperate fully with each other in effecting any corrective action with
respect to the Products pursuant to this Article 8.4, including
communication with any customers and Vital Images shall comply with all
reasonable directions of TOSHIBA’ regarding such corrective action. This Article 8.4
shall not limit the obligations of either party under law regarding any
corrective action with respect to the Products required by law or properly
mandated by governmental authority.”

 

19.           This Amendment shall take effect as
of October 1, 2007.

 

20.           Except as amended hereby, the
Agreement shall remain in full force and effect in accordance with its original
terms. The amended portions of the Agreement shall be read, wherever reasonable
to do so, to be consistent with the portions not so amended; provided that the
amended portions shall be deemed to control and any conflict shall be resolved
in favor of such amended portions.

 

# Confidential Treatment has been
requested, the portion indicated has been redacted and the redacted portion has
been separately filed with the Securities and Exchange Commission.

 

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives below.

 

	
  VITAL IMAGES, INC.

  	
   

  	
  TOSHIBA MEDICAL
  SYSTEMS 

  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By 

  	
  /s/ Susan A. Wood

  	
   

  	
  By 

  	
  /s/ Yusuke Toki

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name 

  	
  Susan A. Wood

  	
   

  	
  Name 

  	
  Yusuke Toki

  
	
   

  	
   

  	
   

  
	
  Title

  	
  Executive Vice
  President, Product Marketing

  	
   

  	
  Title 

  	
  CT General Manager

  
	
   

  	
  and Development

  	
   

  	
   

  
												

 

 

EXHIBIT A

PRODUCTS

 

Exhibit A of the Agreement  is modified by adding the following Products
for Japan:

 

	
  Vitrea â

  
	
  VScoreÔ option

  
	
  VScore with EKG GateÔ option

  
	
  VScore
  with AutoGateÔ option

  
	
  3D Angiography option

  
	
  CT
  Perfusion option

  
	
  CT
  Colonography option

  
	
  Automated
  Vessel Measurements option

  
	
  CT
  Cardiac option

  
	
  Cardiac
  Functional Analysis option

  
	
  CT
  Cardiac Option with Peripheral Vessel Probe option

  
	
  SUREPlaqueTM
  option

  
	
  # *

  
	
  Peripheral
  Vessel Probe option

  
	
  Soft Read
  option

  
	
  Nodule
  Probe option (Lung option)

  
	
   

  
	
   

  
	
  Vitrea
  ACCESSTM option(3)(4)

  
	
  Vitrea ACCESS Remote
  option

  
	
  # *

  
	
  # *

  
	
  # *

  

 

*when and if available

 

# Confidential Treatment has been
requested, the portion indicated has been redacted and the redacted portion has
been separately filed with the Securities and Exchange Commission.

 

 

EXHIBIT B

TERRITORY

 

Worldwide, including Japan, except for those countries barred by the

 

Office of Foreign Assets
Control (“OFAC”) of the U.S. Department of the Treasury

 

 

EXHIBIT E

PRODUCT PRICE LIST

 

Exhibit E of the Agreement is modified by
adding the following package and maintenance prices:

 

ADDITIONAL
PRODUCT PRICE

 

	
  Licence 

  	
   

  	
  Pricing

  
	
   

  	
  U.S.A. 

  (2007)

  	
   

  	
  Non-U.S.A. 

  (2007)

  
	
  Genesis
  

  	
   

  	
   

  	
   

  	
   

  
	
  ·    #   * 

  	
   

  	
  $

  	
   #

  	
   

  	
  $

  	
   #

  
	
  ·    #   *

  	
   

  	
  $

  	
   #

  	
   

  	
  $

  	
   #

  

 

*when and if available

 

ADDITIONAL
SOFTWARE PACKAGE PRICING

 

	
   

  	
   

  	
  Pricing

  
	
   

  	
   

  	
  U.S.A. 

  (2007)

  	
   

  	
  Non-U.S.A. 

  (2007)

  
	
  Package

  	
   

  	
  Standalone

  	
   

  	
  Enterprise

  
	
  Genesis 

  	
   

  	
  $

  	
   #

  	
   

  	
  $

  	
   #

  	
   

  	
  $

  	
   #

  
	
  ·    Vitrea â

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·    CT Colonography option 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·    Automated Vessel Measurements option 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·    VScoreÔ option 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·    Peripheral Vessel Probe option

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·    CT Cardiac option 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·    Cardiac Functional Analysis option 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·    sure PLAQUETM option 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·    #
  *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Existing Aquilion customer Upgrade from
  Vitrea2 to  Genesis.
  The price for Enterprise is only for the customer Upgrade from Vitrea2
  Enterprise.

  	
   

  	
  $

  	
   #

  	
   

  	
  $

  	
   #

  	
   

  	
  $

  	
   #

  

 

*when and if available

 

ADDITIONAL
MAINTENANCE PRICING OPTIONS

 

	
  Service

  	
   

  	
  U.S.A.

  (2007)

  	
   

  	
  Non-U.S.A.

  (2007)

  
	
  Genesis Package

  	
   

  	
  $

  	
   #

  	
   

  	
  $

  	
   #

  
							

 

# Confidential Treatment has been
requested, the portion indicated has been redacted and the redacted portion has
been separately filed with the Securities and Exchange Commission.

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