Document:

exv10w24

 

EXHIBIT
10.24

[NOTE: CERTAIN PORTIONS OF THIS DOCUMENT HAVE BEEN MARKED TO INDICATE THAT
CONFIDENTIAL INFORMATION HAS BEEN OMITTED. CONFIDENTIALITY HAS BEEN REQUESTED FOR THIS
CONFIDENTIAL INFORMATION. THE CONFIDENTIAL PORTIONS HAVE BEEN PROVIDED SEPARATELY TO THE
SECURITIES AND EXCHANGE COMMISSION]

FUKUDA DENSHI CO., LTD. AND VOLCANO THERAPEUTICS, INC.

JAPANESE DISTRIBUTION AGREEMENT

     THIS AGREEMENT (“Agreement”), effective on the Effective Date (defined below), is made and
entered into between Volcano Therapeutics, Inc., a Delaware corporation, with its principal office
at 2870 Kilgore Road, Rancho Cordova, California 95670, U.S.A. (hereinafter referred to as
“Volcano”), and Fukuda Denshi Co., Ltd., a corporation of Japan, with its principal office at
3-39-4 Hongo, Bunkyo-ku, Tokyo 113, Japan (hereinafter referred to as “Fukuda”).

     In consideration of the mutual promises contained herein, the parties agree as follows:

1. DEFINITIONS

     A. “Act” shall mean any act, statute, or regulation of any kind governing the products in the
U.S.A. including the Federal Food, Drug and Cosmetic Act (21 U.S.C. Sections 301-392 (2002)).

     B. “Best Efforts” shall mean every necessary and prudent effort of a party applied in a
prompt, commercially reasonable manner, to the maximum extent reasonably allowed by such party’s
available financial resources, taking into account all of such party’s business commitments for
such financial resources.

     C. “Effective Date” shall mean November 30, 2004.

     D. “EndoSonics Agreement” shall mean the Japanese Distribution Agreement, dated August 31,
1998, by and between Fukuda and EndoSonics Corporation, a Delaware corporation (“EndoSonics”),
which was subsequently assigned to Volcano from Jomed, Inc., a Delaware corporation (formerly
EndoSonics), that granted distribution rights related to certain medical device products to Fukuda
from EndoSonics.

     E. “Field” shall mean the cardiology field and does not include endovascular or peripheral
applications fields.

     F. “QSR’s” shall mean the good manufacturing practices for medical devices set forth by any
Act governing the products in the U.S.A. including United States 21 C.F.R. Section 820 (2004).

     G. “Territory” shall mean the country of Japan, but as defined by the accounts listed on
Exhibit A. Distributor shall make best effort and accept its responsibility to sell to the
accounts listed in Exhibit A.

     H. “Volcano Products” shall mean those Volcano phased array versions of the products listed on
Exhibit B attached hereto and all successor products thereto. Volcano Products may be
changed, abandoned or added by Volcano, at its sole discretion, provided that Volcano gives one
hundred twenty (120) days’ prior written notice to Fukuda.

2. APPOINTMENT AND AUTHORITY OF FUKUDA

     A. Appointment. Subject to the terms and conditions set forth herein, Volcano hereby
appoints Fukuda as Volcano’s non-exclusive distributor for the Volcano Products in the Field

 

 

throughout the Territory for the period commencing on the Effective Date until June 30, 2007.
Subject to the terms and conditions set forth herein, Fukuda hereby accepts such appointment.

     B. Use of Trademarks. Volcano hereby grants to Fukuda a non-exclusive license to use
the Volcano Trademarks (defined herein below) for the purpose of identifying and marketing the
products in the Territory for use in the Field. Any use of the Volcano Trademarks will be in
accordance with such instructions as Volcano may give Fukuda from time to time. Volcano shall, at
its expense, use reasonable efforts to protect and maintain all registration, filings and issuance
of Volcano Trademarks in full force and effect.

     C. Fukuda Trademarks. Volcano shall not, without the prior written consent of Fukuda
in each instance, use in any manner whatsoever, Fukuda’s name, its trademarks, logos, symbols or
other images of Fukuda or of any party affiliated therewith.

     D. Territorial Limitation. Fukuda shall not, without the prior written consent of
Volcano: (i) promote, advertise, sell, distribute the Volcano Products in any country outside the
Territory, (ii) cause, directly or indirectly, the importation of the Volcano Product into any
country outside the Territory; nor (iii) establish a repair or maintenance facility in any country
outside the Territory.

     E. Conflict of Interest. Commencing on the date hereof, Fukuda shall use its Best
Efforts in the promotion and sale of the Volcano Products and all other products to which it
acquires distribution rights hereunder.

     F. Independent Contractors. The relationship of Volcano and Fukuda established by
this Agreement is that of independent contractors, and nothing contained in this Agreement shall be
construed to (i) give either party the power to direct and control the day-to-day activities of the
other or (ii) allow either party to create or assume any obligation on behalf of the other party
for any purpose whatsoever. All financial obligations associated with each party’s business are
the sole responsibility of such party. All sales and other agreements between Fukuda and its
customers are Fukuda’s exclusive responsibility and shall have no effect on Volcano’s obligations
under this Agreement. Volcano shall be solely responsible for, and shall indemnify and hold Fukuda
free and harmless from, any and all claims, damages or lawsuits (including attorneys’ fees) arising
out of the acts of Volcano, its employees or its agents. Fukuda shall be solely responsible for,
and shall indemnify and hold Volcano free and harmless from, any and all claims, damages or
lawsuits (including attorneys’ fees) arising out of the acts of Fukuda, its employees or its
agents.

3. TERMS OF PURCHASE OF PRODUCTS BY FUKUDA

     A. Terms and Conditions. All purchases of Volcano Products by Fukuda from Volcano
during the term of this Agreement shall be subject to the terms and conditions of this Agreement.

     B. Prices. All prices are FCA (Incoterms 2000) Volcano’s plant. The purchase price
to Fukuda for each of the Volcano Products (“Purchase Price”) is set forth on Exhibit B
hereto, as such Purchase Prices shall be amended from time to time during the term of this
Agreement by mutual agreement of the parties.

     The Purchase Prices may be revised from time to time through consultation between Volcano and
Fukuda, taking into account the then prevailing market prices of the similar products. Such
revisions shall apply to all orders received after the effective date of revision.

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Price increases shall not affect unfulfilled purchase orders accepted by Volcano prior to the
effective date of the price increase.

     C. Taxes. The amounts payable by Fukuda under Section 3 are exclusive of all taxes
and government charges (including, without limitation, interest and penalties), if any, payable to
the Japanese government. If Fukuda is required to withhold any taxes on amounts payable to Volcano
in accordance with this Agreement, pursuant to the laws and regulations of Japan, Fukuda shall
compensate Volcano for any such withholding by paying Volcano an additional amount equal to such
amount withheld. Nothing in this Section 3.C. shall be construed to mean that Fukuda is responsible
for taxes and charges (including, without limitation, interest and penalties) to the federal or
state government of the U.S.A. which are imposed on Volcano.

     D. Order and Acceptance. All orders for Volcano Products submitted by Fukuda shall be
initiated by written purchase orders sent to Volcano and requesting a delivery date during the term
of this Agreement; provided, however, that an order may initially be placed orally or by facsimile
if a confirmational written purchase order is received by Volcano within ten (10) days after said
oral or facsimile order. To facilitate Volcano’s production scheduling, Fukuda shall use
reasonable commercial efforts to submit purchase orders to Volcano at least sixty (60) days prior
to the first day of the requested month of delivery. No order shall be binding upon Volcano until
accepted by Volcano in writing, and Volcano shall have no liability to Fukuda with respect to
purchase orders that are not accepted. Volcano shall notify Fukuda of the acceptance or rejection
of an order and of the assigned delivery date for accepted orders within ten (10) days of receipt
of the purchase order, if not rejected within such period of ten (10) days, the order shall be
deemed accepted. Volcano will use its Best Efforts, consistent with its obligations to other
similarly-situated customers, to process and ship all orders in accordance with requested delivery
dates by Fukuda.

     E. Terms of Purchase Orders. Fukuda’s purchase orders submitted to Volcano from time
to time with respect to Volcano Products to be purchased hereunder shall be governed by the terms
of this Agreement, and nothing contained in any such purchase order shall in any way modify such
terms of purchase or add any additional terms or conditions.

     F. Payment. Volcano shall submit an invoice to Fukuda upon each shipment of Volcano
Products ordered by Fukuda. The invoice shall cover Fukuda’s purchase price for the Volcano
Products in a given shipment plus any freight, taxes or other applicable costs initially paid by
Volcano but to be borne by Fukuda. Payment shall be made in U.S. dollars and payment shall be by
wire transfer, check or other instrument approved by Volcano. Payment terms shall be the full
invoiced amount due for payment received by Volcano within sixty (60) days of the date of the
invoice. Fukuda may take a two (2) percent discount as a reduction of the invoice price if payment
is received by Volcano within fifteen (15) days of the date of invoice. Any invoiced amount not
received within sixty (60) days of the date of invoice shall be subject to a service charge of one
and a half percent (1.5%) per month or such lesser percentage permitted by applicable law.

     G. Shipping. All Volcano Products delivered pursuant to the terms of this Agreement
shall be suitably packed for air freight shipment in Volcano’s standard shipping cartons, marked
for shipment at Fukuda’s address set forth above or any other address in the Territory as Fukuda
indicates, and delivered to Fukuda or its carrier agent FCA (INCOTERMS 2000) Volcano’s
manufacturing plant, at which time title to such Volcano Products and risk of loss shall pass to
Fukuda. Unless otherwise instructed in writing by Fukuda, Volcano shall select the carrier. All

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freight, insurance, and other applicable expenses, as well as any special packing expense,
shall be paid by Fukuda.

     H. Rejection of Product. Fukuda shall inspect all Volcano Products, except those
Volcano Products which are sterilized and sealed by Volcano at its plant, promptly upon receipt
thereof and may reject any Volcano Product that fails to meet the specifications set forth in
Volcano’s current product specifications for that Volcano Product. Any Volcano Product not
properly rejected within sixty (60) days of receipt of that Volcano Product at Fukuda’s facility
after customs clearance for import (the “Rejection Period”) shall be deemed accepted. To reject a
Volcano Product, Fukuda shall, within the Rejection Period, notify Volcano in writing by facsimile
of its rejection and request a Return Material Authorization (“RMA”) number. Volcano shall provide
the RMA number in writing by facsimile to Fukuda within ten (10) days of receipt of the request.
Within ten (10) days of receipt of the RMA number, Fukuda shall return to Volcano the rejected
Volcano Product, freight collect, in its original shipping carton with the number displayed on the
outside of the carton. Provided that Volcano has complied with its obligations in this Agreement,
Volcano reserves the right to refuse to accept any rejected Volcano Products that do not bear an
RMA number on the outside of the carton. As promptly as possible but no later than fifteen (15)
working days after receipt by Volcano of properly rejected Volcano Products, Volcano shall, at its
expense, replace the Volcano Products and ship such replacement Volcano Products freight prepaid.

     I. Return of Products After Rejection Period. After the Rejection Period, Volcano’s
Standard Limited Warranty shall be applied. For sterilized and sealed Volcano Products such as
catheters, however, Volcano shall replace those Volcano Products found defective with new Volcano
Products if such defects should be found within fifteen (15) months of shipment of such Volcano
Products to Fukuda if a notice with the details of such defects is given by Fukuda to Volcano
within a reasonable period after Fukuda or the user has discovered defects or ought to have
discovered them. If Volcano tests and inspects these returned Volcano Products and determines that
such Volcano Products perform according to Volcano written specifications, no credit will be given
to Fukuda. If upon such test and inspections, such returned Volcano Products do not perform to
Volcano’s written specification, these Volcano Products will be replaced at no cost to Fukuda
except in the case that Volcano proves that such defect was caused after the FCA (INCOTERMS 2000)
point of shipment by Volcano to Fukuda.

     J. No Time Restriction. Notwithstanding any provision herein to the contrary,
Fukuda’s rights and remedies under this Agreement or laws of the Territory shall not be subject to
any time restriction that may be imposed by any provisions of the laws of non-mandatory nature so
long as Fukuda gives notice specifying the nature of the lack of conformity within a reasonable
time after Fukuda or the user has discovered it or ought to have discovered it.

4. WARRANTY TO FUKUDA’S CUSTOMERS

     A. Standard Limited Warranty. Fukuda shall pass on to its customers Volcano Standard
Limited Warranty for the Volcano Products. This warranty shall cover the Volcano Products for a
period of fifteen (15) months from the date of shipment to Fukuda. This warranty is contingent
upon proper use of a Volcano Product in the application for which it was intended and does not
cover Volcano Products that were modified without Volcano’s approval or that were subjected by the
customer to unusual physical stress. If a Volcano Product fails to meet the warranty provided
herein, Volcano’s sole liability and Fukuda and/or the end-user’s sole remedy shall be either the
replacement by Volcano of the defective unit with another unit of the same product (or

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a unit of a substantially equivalent product thereto if the original model is no longer
manufactured) or the refund by Volcano of the purchase price paid for such defective product.

     B. No Other Warranty. EXCEPT FOR THE EXPRESS WARRANTY SET FORTH ABOVE, VOLCANO HEREBY
DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, BY STATUTE OR OTHERWISE, REGARDING THE VOLCANO
PRODUCTS, INCLUDING BUT NOT LIMITED TO THEIR FITNESS FOR A PARTICULAR PURPOSE, OR THEIR
MERCHANTABILITY. OTHER THAN FOR PUNITIVE DAMAGES, NOTHING IN THIS SECTION 4 SHALL LIMIT THE
INDEMNIFICATION OBLIGATION UNDER SECTION 8.A. WITH RESPECT TO DAMAGE CLAIMS FOR PERSONAL INJURY
AND/OR DEATH CAUSED BY DEFECT OF THE VOLCANO PRODUCTS.

5. ADDITIONAL OBLIGATIONS OF VOLCANO AND FUKUDA

     A. Clinical Trials: Management, Product Supply and Regulatory Approvals. Fukuda
agrees that it will undertake to manage, at Fukuda’s expense, all animal trials and human clinical
trials required to obtain approval from all Japanese regulatory authorities to market in the Field
throughout the Territory the Volcano Products and all other products to which Fukuda acquires
distribution rights under this Agreement. Fukuda agrees to expeditiously submit for Ministry of
Health, Labour and Welfare (“MOHLW’’) approval any Volcano Product. Upon (i) the termination of
this Agreement and/or (ii) the termination of the EndoSonics Agreement, Fukuda shall, expeditiously
transfer to Volcano all regulatory and/or governmental approvals, permits, licenses and the like of
the Volcano Products and EndoSonics Products (as defined in the EndoSonics Agreement), to Volcano.
Volcano will be responsible to pay Fukuda only the cost of transferring such approvals, permits,
licenses and the like to Volcano (i.e., labor costs, supplies, and government fees).

     Volcano agrees that it will supply products to Fukuda to conduct the animal trials and human
clinical trials for free.

     Volcano shall assist Fukuda in obtaining regulatory approvals and registration of the products
in the Field throughout the Territory by providing Fukuda with:

     (i) materials in Volcano possession necessary to obtain MOHLW approvals and marketing
approvals, licenses, and permits;

     (ii) certificates of analysis, export and compliance;

     (iii) trademark authorizations; and

     (iv) such other information as Fukuda shall reasonably request from time to time.

     Volcano agrees to train Fukuda in the proper clinical use of all Volcano Products, and Fukuda
shall be responsible in turn for training its customers. Also at Fukuda’s request, Volcano agrees
to make arrangements to send one of Volcano’s major U.S. clinical investigator physicians to Japan
to (i) give lectures on the use of these products and (ii) perform clinical training of these
products to Japanese physicians. Fukuda agrees to reimburse Volcano for all out-of-pocket expenses
for the travel of this physician to Japan.

     B. Forecasts. Within the first ten (10) days of every quarter, Fukuda shall provide
Volcano with a four quarter rolling forecast (“Forecast”) showing prospective orders by product
model and intended purchase order submittal date. The quantities forecasted for the first quarter

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of each Forecast (“Binding Quarter”) shall be binding on Fukuda and deemed supported by a
non-cancelable purchase order.

     C. Promotion of the Products. Fukuda shall, at its own expense, use its Best Efforts
to promote the sale of the Volcano Products in the Field throughout the Territory. Such promotion
shall include, but not be limited to, preparing promotional materials in languages appropriate for
the Territory, advertising the Volcano Products in trade publications within the Territory,
participating in appropriate trade shows to the extent Fukuda thinks fit, and directly soliciting
orders from customers for the Volcano Products.

     D. Finances and Personnel. Fukuda shall devote sufficient financial resources,
technically qualified sales personnel, and service personnel to the Volcano Products to fulfill its
responsibilities under this Agreement.

     E. Customer and Sales Reporting. Fukuda shall, at its own expense:

     (i) place the Volcano Products in Fukuda’s catalogues as soon as possible and feature Volcano
Products in any applicable trade show that it attends to the extent Fukuda thinks fit;

     (ii) provide adequate contact with existing and potential customers in the Field throughout
the Territory on a regular basis, consistent with good business practice;

     (iii) assist Volcano in assessing customer requirements for the Volcano Products, including
modifications and improvements thereto, in terms of quality, design, functional capability, and
other features;

     (iv) submit market research information, as reasonably requested by Volcano, regarding
competition and changes in the market in the Territory; and

     (v) provide Volcano with a report, by product type, of all sales of Volcano Products for each
quarter no later than sixty (60) days following the end of such quarter.

     F. Import Requirement. Fukuda shall, at its own expense, pay all import licenses and
permits, pay customs charges and duty fees, imposed by any Japanese governmental authority upon or
applicable to any import by Fukuda under this Agreement, and take all other actions required to
accomplish the import of the Volcano Products purchased by Fukuda.

     G. Export Law Compliance. Fukuda understands and recognizes that the Volcano Product
and other materials made available to it hereunder may be subject to the export administration
regulations of the United States Department of Commerce and other United States government
regulations, as amended from time to time, related to the export of technical data and equipment
and products produced therefrom. Fukuda agrees to comply with all such regulations in connection
with the distribution of the Volcano Product. Fukuda agrees to cooperate with Volcano and to
provide Volcano with such reasonable assistance as is required in order to comply with the export
administration regulations of the United States. Nothing in this Section 5.H. shall be construed
to require that Fukuda shall bear any cost or expense required to comply with such U.S. export
regulations.

6. ADDITIONAL OBLIGATIONS OF VOLCANO

     A. Supply of Sample Products and Materials. Volcano shall supply Fukuda’s
requirements for the Volcano Products in the Field throughout the Territory consistent with the

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delivery schedules. Volcano shall promptly provide Fukuda without any charges with marketing
and technical information concerning the Volcano Products as well as reasonable quantities of
brochures, instructional material, advertising literature, and other Volcano Product data, with all
such material printed in the English language. Volcano agrees to discuss with Fukuda for supplying
appropriate number of sample Volcano Products or granting a fifty percent (50%) discount for
appropriate number of Volcano Products for assistance of Fukuda’s sales.

     B. Response to Inquiries. Volcano shall promptly respond to all inquiries from Fukuda
concerning matters pertaining to this Agreement.

     C. Testing. Volcano shall test all Volcano Products before shipment to Fukuda under
U.S. FDA cGMP or QSR requirements.

     D. Delivery Time. Volcano shall minimize delivery time as much as possible and to
fulfill delivery obligations as committed in any acceptance.

     E. Market Information. Upon reasonable request of Fukuda, Volcano shall provide
Fukuda with information as to general market movement, competitors’ prices and strategies, names of
Volcano’s major customers (users) and other information that may help Fukuda promote and sell the
Volcano Products in the Field throughout the Territory.

     F. Customer’s Special Requirements. From time to time, Fukuda may encounter requests
from customers for special changes or modifications on Volcano Products so that the Volcano
Products meet their particular usage. In such cases, if Fukuda deems it necessary to comply with
such requirements for its market strategy, Fukuda shall request Volcano to make such changes or
modifications on the Volcano Products and Volcano shall use its reasonable commercial efforts to
meet such requirements.

     G. New Developments. Volcano shall inform Fukuda of new Volcano Product developments
during regularly scheduled quarterly reviews.

     H. Regulatory Reporting and Analysis of Returned Products. Volcano shall file, or
cause to be filed, all reports required of a manufacturer pursuant to the applicable U.S. medical
device reporting regulations. Volcano, as the manufacturer of the products, shall perform all
failure analysis on the products within thirty (30) days of receipt of each failed product and
shall file all reports required with the applicable U.S. regulatory agency. Volcano shall further
cooperate with and assist Fukuda in submitting all reports that Fukuda, as distributor of the
products, may be required to file. Fukuda shall promptly provide Volcano with copies of all such
reports.

7. TERM AND TERMINATION

     A. Term. This Agreement shall be effective on the Effective Date and shall continue
in force through June 30, 2007, unless terminated earlier under the provisions of this Section 7.
Six (6) months prior to expiration, the parties will meet to discuss in good faith an extension to
this Agreement. Thereafter the term of the Agreement may be renewed by mutual agreement of the
parties for successive periods of two (2) years each.

     B. Termination for Cause. If either party materially defaults in the performance of
any obligation in this Agreement, then the non-defaulting party may give written notice to the
defaulting party that if the default is not cured within ninety (90) days after receipt of such
notice,

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the Agreement will be terminated. If the non-defaulting party gives such notice and the
default is not cured during the ninety (90) day period, then the Agreement shall automatically
terminate at the end of that period.

     C. Termination for Insolvency. This Agreement shall terminate, without notice, (i)
upon the institution by or against Fukuda or Volcano of insolvency, receivership or bankruptcy
proceedings or any other proceedings for the settlement of debts; (ii) upon Fukuda’s or Volcano’s
making an assignment for the benefit of creditors; or (iii) upon Fukuda’s or Volcano’s dissolution.

     D. Fulfillment of Orders upon Termination. Upon termination of this Agreement,
Volcano shall continue to fulfill, subject to the terms of Section 3 above and if so requested by
Fukuda, all orders accepted by Volcano prior to the date of termination.

     E. Return of Materials. All trademarks, trade names, patents, copyrights, designs,
drawings, formulas or other data, photographs, samples, literature and sales aids of every kind
with respect to the Volcano Products shall remain the property of Volcano as long as the objects
still remain in Fukuda’s possession. Within thirty (30) days after the termination of this
Agreement, Fukuda shall prepare all such items in its possession for shipment as Volcano may
direct, at Volcano’s expense. Fukuda shall not make or retain any copies of any confidential items
or information or any product literature which may have been entrusted to it. Effective upon the
termination of this Agreement, Fukuda shall cease to use all trademarks, marks and trade names of
Volcano; provided, however, that Fukuda may continue to use such trademarks to market, distribute
or sell any inventory of the products in Fukuda’s possession at the time of such termination as
permitted pursuant to Section 7.F.

     F. Inventory on Termination. Upon termination of this Agreement due to expiration
(7.A), Fukuda may return to Volcano, or its nominee, its remaining inventory which is new and
unused for credit or refund at the then current selling prices or, upon mutual agreement, for a
period not to exceed one hundred eighty (180) days, sell any remaining inventory. Upon termination
due to Fukuda’s default or insolvency (7.B., 7.C.), Fukuda at Volcano’s option, will return its
remaining inventory which is new and unused for credit or refund at the then current selling prices
or for a period not to exceed one hundred eighty (180) days, sell any remaining inventory. Upon
termination due to Volcano’s default or insolvency (7.B., 7.C.), Fukuda at its option will return
its remaining inventory which is new and unused for credit or refund at the then current selling
prices, or for a period not to exceed one hundred eighty (180) days, sell any remaining inventory.

     G. Limitation on Liability. In the event of termination by either party in accordance
with any of the provisions of this Agreement, neither party shall be liable to the other because of
such termination, for compensation, reimbursement or damages on account of the loss of prospective
profits or anticipated sales or on account of expenditures, inventory, investments, leases or
commitments in connection with the business or goodwill of Volcano or Fukuda. Termination shall
not, however, relieve either party of obligations incurred prior to the termination.

     H. Survival of Certain Terms. The provisions of Sections 2.F, 3.F, 4, 7, 8, 9, 10, 11
and 12 shall survive the termination of this Agreement for any reason. All other rights and
obligations of the parties shall cease upon termination of this Agreement.

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8. LIABILITY COVERAGE AND LIMITATIONS

     A. Products Liability. Volcano agrees to carry products liability insurance for all
of its Volcano Products. This liability insurance will cover the design, manufacture and
performance of Volcano Products when these products are promoted, sold and used by customers for
uses specified in Volcano labeling, promotional materials and instructions for use. Fukuda will be
responsible for any liability arising out of (1) Fukuda’s sales of Volcano Products for
applications not included in Volcano’s labeling, promotional material and instructions for use, (2)
for liability claims arising from Fukuda’s wrongful training of customer users, and (3) liability
claims arising from wrongful use of Volcano Products by Fukuda’s customers. Volcano shall
indemnify and hold Fukuda free and harmless from all costs, expenses and damages incurred by Fukuda
in connection with third party claims concerning personal injury or death caused by a defect in the
design or manufacture of a Volcano Product or a non-conformance with Volcano’s then current
specifications for Volcano Products existing at the time of delivery of such Volcano Product by
Volcano under Section 3.G.

     B. Limitation on Liability. VOLCANO’S LIABILITY ARISING OUT OF THIS AGREEMENT AND/OR
SALE OF THE VOLCANO PRODUCT SHALL BE LIMITED TO THE AMOUNT PAID BY THE CUSTOMER FOR THE VOLCANO
PRODUCTS. IN NO EVENT SHALL VOLCANO BE LIABLE FOR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS. IN NO
EVENT SHALL VOLCANO BE LIABLE TO FUKUDA OR ANY OTHER ENTITY FOR ANY SPECIAL, CONSEQUENTIAL,
INCIDENTAL, OR INDIRECT DAMAGES, HOWEVER CAUSED, ON ANY THEORY OF LIABILITY, AND NOTWITHSTANDING
ANY FAILURE OF ESSENTIAL PURPOSE OR ANY LIMITED PURPOSE OR ANY LIMITED REMEDY, OTHER THAN FOR
PUNITIVE DAMAGES, NOTHING IN THIS SECTION 8.B. SHALL LIMIT THE INDEMNIFICATION OBLIGATION UNDER
SECTION 8.A WITH RESPECT TO DAMAGE CLAIMS FOR PERSONAL INJURY AND/OR DEATH CAUSED BY DEFECT OF THE
VOLCANO PRODUCTS.

9. PROPERTY RIGHTS AND CONFIDENTIALITY

     A. Property Rights. Fukuda agrees that Volcano owns all right, title and interest in
the Volcano Product lines that include the Volcano Products now or hereafter subject to this
Agreement and in all of Volcano’s patents, trademarks, trade names, inventions, copyrights,
know-how, and trade secrets relating to the design, manufacture, operation or service of the
Volcano Products. The use by Fukuda of any of these property rights is authorized only for the
purposes herein set forth, and upon termination of this Agreement for any reason, such
authorization shall cease.

     B. Sale Conveys No Right to Manufacture or Copy. The Volcano Products are offered for
sale and are sold by Volcano subject in every case to the condition that such sale does not convey
any license, expressly or by implication, to manufacture, duplicate or otherwise copy or reproduce
any of the Volcano Products. Fukuda shall take appropriate steps with its customers, as Volcano
may request, to inform them of and assure compliance with the restrictions contained in this
Subsection 9.B.

     C. Confidentiality. Each party shall maintain in confidence all Confidential
Information, as defined below, of the other party and shall not use, disclose or grant use of such
Confidential Information except as expressly authorized by this Agreement. A party may disclose
Confidential Information, as authorized hereunder, only to those of its employees or agents who

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agree to be bound by the terms of this Section 9. Fukuda may disclose the Confidential
Information to MOHLW, if and when it is so required, during the MOHLW approval proceedings,
provided that Fukuda shall make its Best Efforts to avoid or limit such disclosure. As used in
this Agreement, the term “Confidential Information” shall mean information deemed by a party to be
its confidential or proprietary information and disclosed to the other party in writing and marked
“Confidential”, or disclosed orally under confidence, including without limitation, any
confidential engineering designs and drawings, know-how, trade secret, research, data, process,
technique, research project, work in process, future development, scientific, manufacturing,
marketing, business plan, financial or personnel matter relating to the party, its present or
future products, sales suppliers, customers, employees, investors or business. Upon request of
either of the parties hereto, the other party shall advise whether or not it considers any
particular information or materials to be confidential. Fukuda shall not publish any technical
description of the Volcano Products beyond the description published by Volcano (except to
translate that description into appropriate languages for the Territory). In the event of
termination of this Agreement, there shall be no use or disclosure by either of the parties hereto
of any Confidential Information of the other party, provided that the restrictions under Section 9
hereof do not in any manner affect Fukuda’s rights and/or licenses granted under any other
agreements entered into between Volcano and Fukuda.

     D. Exclusions. The term “Confidential Information” shall not be deemed to include
information which: (i) is now, or hereafter becomes, through no act or failure to act on the part
of a party receiving such information, generally known or available; (ii) is known by the party
receiving such information at the time of receiving such information, as evidenced by its records;
(iii) is hereafter furnished to the party receiving such information by a third party, as a matter
of right and without restriction on disclosure; (iv) is the subject of a written consent to
disclose provided by the disclosing party, which consent may be withheld in the sole discretion of
such party; or (v) is discovered or developed by a party independent of and without any reference
to Confidential Information of the disclosing party, as evidenced by the written records of the
receiving party.

10. TRADEMARKS AND TRADE NAMES

     A. Use. During the term of this Agreement, Fukuda shall have the right to indicate to
the public that it is an authorized distributor of Volcano Products and to advertise (within the
Territory) such Volcano Products under the trademarks, marks and trade names that Volcano may adopt
from time to time (“Volcano Trademarks”). Fukuda shall not alter or remove any Volcano Trademark
applied to the Volcano Products at the factory. Nothing herein shall grant to Fukuda any right,
title or interest in the Volcano Trademarks. At no time during or after the term of this Agreement
shall Fukuda challenge or assist others to challenge the Volcano Trademarks or the registration
thereof or attempt to register any trademarks, marks or trade name confusingly similar to those of
Volcano.

     B. Approval of Representations. Fukuda shall respect the Volcano Trademarks and
follow the instructions of Volcano as to the usage of Volcano Trademarks. If any of the Volcano
Trademarks are to be used in conjunction with another trademark on or in relation to the Volcano
Products, then the Volcano Trademark shall be presented equally legibly, equally prominently, and
of the same or greater size than the other but nevertheless separated from the other so that each
appears to be a mark in its own right, distinct from the other mark.

- 10 -

 

11. PATENT, COPYRIGHT AND TRADEMARK INDEMNITY

     A. Indemnification. Fukuda agrees that Volcano has the right to defend, or at its
option to settle, and Volcano agrees, at its own expense, to defend or at its option to settle, any
claim, suit or proceeding brought against Fukuda or its customer on the issue of infringement of
any Japanese patent, or trademark by the Volcano Products sold hereunder, or the use thereof,
subject to the limitations hereinafter set forth. Volcano shall have sole control of any such
action or settlement negotiations, and Volcano agrees to pay, subject to the limitations hereafter
set forth, any final judgment entered against Fukuda or its customer on such issue in any such suit
or proceeding defended by Volcano. Fukuda agrees to notify Volcano promptly in writing of such
claim, suit or proceeding and gives Volcano authority to proceed as contemplated herein, and, at
Volcano’s expense, gives Volcano proper and full information and assistance to settle and/or defend
any such claim, suit or proceeding. If the Volcano Products, or any part thereof, are the subject
of any claim, suit or proceeding for infringement of any Japanese patent, or trademark, or if the
sale or use of the Volcano Products, or any part thereof is, as a result, enjoined, then Volcano
shall, at its expense (i) procure for Fukuda and its customers the right under such patent, or
trademark to sell or use, as appropriate, the Volcano Products or such part thereof; (ii) replace
the Volcano Products, or part thereof, with other suitable Volcano Products or parts; (iii)
suitably modify the Volcano Products, or part thereof; or (iv) if the use of the Volcano Products,
or part thereof is prevented by injunction, remove the Volcano Products, or part thereof and refund
the aggregate payments paid therefor by Fukuda, less a reasonable sum for use and damage.

     B. Limitation. Notwithstanding the provisions of Subsection 11.A above, Volcano
assumes no liability for (i) infringements covering completed equipment or any assembly, circuit,
combination method or process in which any of the Volcano Products may be used but not covering the
Volcano Products standing alone; (ii) any trademark infringement involving any marking or branding
not applied by Volcano or involving any marking or branding applied at the request of Fukuda; or
(iii) the modification of the Volcano Products, or any part thereof, unless such modification or
servicing was done by Volcano.

     C. Entire Liability. The foregoing provision of this Section 11 states the entire
liability and obligations of Volcano and the exclusive remedy of Fukuda and its customers, with
respect to any alleged patent or trademark infringement by the Volcano Products or any part
thereof.

12. GENERAL PROVISIONS

     A. Arbitration. All disputes, controversies, or differences which may arise between
the parties hereto, out of, in relation to, or in connection with this Agreement or the breach
thereof, shall be finally settled by arbitration in accordance with the Japan-American Trade
Arbitration Agreement of September 16, 1952 (as amended), by which each party hereto agrees to be
bound. If arbitration is requested by Fukuda, arbitration shall be conducted in Sacramento,
California, U.S.A.; if arbitration is requested by Volcano, arbitration shall be conducted in
Tokyo, Japan. Judgment upon an award rendered may be entered in any court having jurisdiction, or
application may be made to such court for judicial acceptance of the award and an order of
endorsement, as the case may be.

     B. Entire Agreement. This Agreement sets forth the entire agreement and understanding
of the parties relating to the subject matter herein and merges all prior discussions between them.
No modification of or amendment to this Agreement, nor any waiver of any rights under this
Agreement, shall be effective unless in writing signed by the party to be charged.

- 11 -

 

     C. Notices. Any notice required or permitted by this Agreement shall be in writing
and deemed to be given (i) upon personal delivery to the party be notified; (ii) when sent by
confirmed facsimile if sent during normal business hours of the recipient (if not, then on the next
business day); (iii) ten (10) days after having been sent by registered or certified airmail,
return receipt requested, postage prepaid; or (iv) four (4) business days, after being properly
deposited with an internationally recognized overnight courier, specifying express delivery, with
written verification of receipt addressed to the other party at the address shown at the beginning
of this Agreement or at such other address for which such party gives notice hereunder.

     D. Force Majeure. Non-performance of either party shall be excused to the extent that
performance is rendered impossible by strike, fire, flood, governmental acts or orders or
restrictions, failure of suppliers, or any other reason where failure to perform is beyond the
control of and not caused by the negligence of the non-performing party.

     E. Change of Control and Assignment. This Agreement, including all terms and
conditions hereof which survive any termination or expiration of this Agreement, shall be binding
upon and inure to the benefit of the parties hereto and their permitted successors and assigns.
Neither party may assign any of its rights and obligations hereunder without prior written consent
of the other party, and any such assignment or purported assignment shall be void, except that an
assignment pursuant to merger, acquisition or sale of all or substantially all of the assets of a
party shall not require such consent.

     F. Partial Invalidity. If any provision of this Agreement is held to be invalid by a
court of competent jurisdiction, then the remaining provisions shall nevertheless remain in full
force and effect. The parties agree to renegotiate in good faith any term held invalid and to be
bound by the mutually agreed substitute provision.

     G. Legal Expenses. The prevailing party in any legal action brought by one party
against the other and arising out of this Agreement shall be entitled, in addition to any other
rights and remedies it may have, to reimbursement for its expense, including arbitration costs and
reasonable attorneys’ fees.

     H. Counterparts. This Agreement shall be executed in two counterparts, each of which
shall be deemed an original, each party retaining one copy thereof.

	 	 	 	 	 	 	 
	 	 	VOLCANO THERAPEUTICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Scott Huennekens	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	PRINTED
NAME:  Scott Huennekens	 	 
	 
	 	 	 	 	 	 
	 	 	TITLE:  President & CEO	 	 
	 
	 	 	 	 	 	 
	 	 	FUKUDA DENSHI CO., LTD.	 	 

- 12 -

 

	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kotaro
Fukuda	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	PRINTED NAME: Kotaro
Fukuda	 	
	 
	 	 	 	 	 	 
	 	 	TITLE: President	 	 

- 13 -

 

EXHIBIT A

ACCOUNTS

To be determined

- 14 -

 

EXHIBIT B

TO FUKUDA DENSHI CO., LTD. AND VOLCANO THERAPEUTICS, INC.

JAPANESE DISTRIBUTION AGREEMENT

Prices Effective November 1, 2005

Description of VOLCANO Products and Pricing

	 	 	 
	Distributor Name:

	 	Fukuda Denshi Co., Ltd.
	Distributor Territory:

	 	Japan

	 	 	 	 	 	 	 
	 	 	CATALOG	 	TRANSFER	 
	PRODUCT	 	NUMBER	 	PRICE (EACH)	 
	Phased
Array IVUS Products:
	 	 	 	 	 	 
	Meridian PC Based Console and VH
IVUS Hardware and Software:
	 	TBD	 	 	 	 
	 
	 	 	 	 	 	 
	1-15 Units Purchased Annually
	 	 	 	[CONFIDENTIAL]
	 
	 	 	 	USD
	16-24 Units Purchased Annually
	 	 	 	[CONFIDENTIAL]
	 
	 	 	 	USD
	25+ Units Purchased Annually
	 	 	 	[CONFIDENTIAL]
	 
	 	 	 	USD
	 
	 	 	 	 	 	 
	VH Digital Recorder (for use
with In-Vision Gold system only)
	 	804175-001	 	[CONFIDENTIAL]
	 
	 	 	 	USD
	VH IVUS Software Perpetual
License Agreement
	 	8044140015	 	[CONFIDENTIAL]
	 
	 	 	 	USD
	VH Software Support and Maintenance Agreement
	 	805698001	 	[CONFIDENTIAL]

	 
	 	 	 	USD per unit

	 
	 	 	 	Annually

			
	·	 	Travel costs associated with installation are not included in product cost.
	 
	·	 	All prices are quoted “each” and in US Dollars

	 	 	 	 	 	 	 
	 

Distributor Authorized Signature and Date

	 	 
	 	 

VOLCANO Authorized Signature and Date
	 	 

Volcano Corporation                                         CONFIDENTTIALexv10w25

 

EXHIBIT
10.25

[NOTE: CERTAIN PORTIONS OF THIS DOCUMENT HAVE BEEN MARKED TO INDICATE THAT
CONFIDENTIAL INFORMATION HAS BEEN OMITTED. CONFIDENTIALITY HAS BEEN REQUESTED FOR
THIS CONFIDENTIAL INFORMATION. THE CONFIDENTIAL PORTIONS HAVE BEEN PROVIDED
SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION]

FUKUDA-GOODMAN

NON-EXCLUSIVE SUB-DISTRIBUTION AGREEMENT

This Agreement, dated as of January 25, 2005 (the “Effective Date”), is made and entered into by
and among:

Fukuda Denshi Co., Ltd., a company incorporated under the laws of Japan (“Supplier”), Goodman
Company, Ltd., a company incorporated under the laws of Japan (“Distributor"), and Volcano
Corporation, a Delaware corporation (“VOLCANO”).

	 	 	 
	WHEREAS

	 	The Japanese Distribution Agreement, dated August 31, 1998, by and between Supplier and EndoSonics Corporation, a
Delaware corporation (“EndoSonics”) (the “Distribution Agreement”) granted distribution rights related to certain
medical device products to Supplier from EndoSonics;
	 
	 	 
	WHEREAS

	 	Jomed, Inc., a Delaware corporation (formerly EndoSonics) assigned the Distribution Agreement to Volcano Therapeutics,
Inc., a Delaware corporation;
	 
	 	 
	WHEREAS

	 	Distributor is in the business of distributing and selling medical device products throughout the Territory;
	 
	 	 
	WHEREAS

	 	Pursuant to the terms and conditions of this Agreement, Supplier now wishes to grant to Distributor the non-exclusive
right to distribute and sell the Products in the Field throughout the Territory; and
	 
	 	 
	WHEREAS

	 	Distributor desires that Supplier appoint Distributor as Supplier’s distributor in the Field throughout the Territory,
with respect to the distribution and sale of the Products.

THE PARTIES HEREBY AGREE AS FOLLOWS

	1	 	DEFINITIONS

In this Agreement the following terms and expressions shall have the meaning set out below.

	 	 	 	 	 
	 

	 	Best Efforts
	 	Shall mean every necessary and
prudent effort of a party applied in
a prompt, commercially reasonable
manner, to the maximum extent
reasonably allowed by such party’s
available financial resources,
taking into account all of such
party’s business commitments for
such financial resources.
	 
	 	 	 	 
	 

	 	Distributor
	 	Shall mean Goodman Company, Ltd.,
having its principal office at 108
Fujigaoka, Meito-Ku, Nagoya,
465-0032 Japan.
	 
	 	 	 	 
	 

	 	Field
	 	Shall mean the field of use for the
Products, limited to interventional
cardiology physicians, accounts and
departments and not include
endovascular or peripheral specific
physicians, accounts or departments.
For the avoidance of any doubt, the
Distributor may sell the Products to
interventional cardiology
physicians, accounts and departments
performing endovascular or
peripheral procedures.
	 
	 	 	 	 
	 

	 	Order
	 	Shall mean an order for Products
submitted by Distributor and
accepted by Supplier under Section
3.

 

 

	 	 	 	 	 
	 

	 	Price Schedule
	 	Shall mean the schedule of prices
for the Products as set forth in
Exhibit A hereto. Such price
schedule will automatically adjust
to the prices currently contained in
the Distribution Agreement and any
subsequent changes.
	 
	 	 	 	 
	 

	 	Product(s)
	 	Shall mean any product listed on
Exhibit A hereto and for which a
separate price is set forth in the
Price Schedule. The current
Products and pricing are described
in Exhibit A. Such Products will
automatically adjust to the products
contained in the Distribution
Agreement and any subsequent
changes.
	 
	 	 	 	 
	 

	 	Product Improvements
	 	Shall mean any improvements,
modifications, developments or
additions to the Products, whether
developed by VOLCANO, Distributor,
or Supplier.
	 
	 	 	 	 
	 

	 	Supplier
	 	Shall mean Fukuda Denshi Co., Ltd.,
having its principal office at
3-39-4 Hongo, Bunkyo-ku, Tokyo
113-8483, Japan.
	 
	 	 	 	 
	 

	 	Territory
	 	Fukuda Territory shall mean Fukuda
accounts, J&J accounts and Gray Zone
accounts listed in Exhibit B.
Goodman Territory shall mean the
Goodman accounts and Gray Zone
accounts listed in Exhibit B.
	 
	 	 	 	 
	 

	 	VOLCANO
	 	Shall mean VOLCANO Corporation, a
Delaware corporation, having its
address at: 2870 Kilgore Road,
Rancho Cordova, CA 95670, USA and
its affiliates.

	2	 	DISTRIBUTORSHIP
	 
	2.1	 	Supplier hereby appoints Distributor, and Distributor hereby accepts appointment, as
Supplier’s distributor of the Products in the Field throughout the Territory, with the right
to distribute and sell the Products for use in the Field throughout the Territory in
accordance with the terms and conditions of this Agreement. The right granted Distributor to
distribute and sell Products for use in the Field throughout the Territory is expressly made
subject to the terms of this Agreement.
	 
	2.2	 	Distributor may not appoint third parties (a “Subdistributor”) to act for Distributor in
selling and distributing the Products in the Field throughout the Territory under this
Agreement. For the avoidance of any doubt, the term Subdistributor does not apply to local
dealers normally used by Distributor in the Territory.
	 
	2.3	 	Distributor shall not have any right to actively, and shall not actively, import, market,
sell, distribute or use, or authorize any third party to import, market, sell, distribute or
use, any of the Products outside of the Territory or for any use outside of the Field.
	 
	3	 	ORDERING AND DELIVERY
	 
	3.1	 	All orders for the Products submitted by Distributor shall be initiated by written purchase
order sent to Supplier; provided, however, that an order may initially be placed orally or by
facsimile if a confirmational written purchase order is received by Supplier and VOLCANO
within seven (7) days after said oral or facsimile order. Distributor shall submit orders to
Supplier and VOLCANO at least ninety (90) days prior to the first day of the requested month
of delivery. Each of Distributor’s orders shall specify: (a) the quantity of each Product
ordered; (b) the applicable purchase prices; and, (c) shipping instructions (e.g., requested
carrier, shipping date, shipping destination and insurance). Each of Distributor’s orders
shall be subject to acceptance by Supplier, not to be unreasonably withheld. At the time
Distributor provides a written purchase order to Supplier, Distributor shall also send a copy
of such purchase order to VOLCANO. Upon receipt of any order from Distributor, Supplier shall
promptly notify Distributor and VOLCANO of its acceptance or rejection of the order and, if
rejected, the reasons for the rejection. Supplier shall have no liability to Distributor with
respect to orders that are not accepted. Any order submitted by Distributor and accepted by
Supplier shall be binding upon the parties and may not be modified, rescinded or cancelled by
any party without the agreement by both Supplier and Distributor.

Page 2 of 11

 

	3.2	 	By the first day of every quarter, Distributor shall provide Supplier and VOLCANO with a four
quarter rolling forecast (“Forecast”) showing prospective orders by product model and intended
purchase order submittal date. The quantities forecasted for the first quarter of each
Forecast shall be binding on Distributor and deemed supported by a non-cancelable order.
	 
	3.3	 	Supplier shall use commercially reasonable efforts to deliver the Products in accordance with
the applicable Orders. Upon shipment of an Order by Supplier to Distributor, Supplier shall
promptly notify Distributor that the Order has been shipped. Distributor shall pay to
Supplier the purchase price, all shipping charges, premiums for insurance, inspection fees,
duties, assessments and other costs incurred to comply with Distributor’s shipping
instructions and otherwise transport the Products as specified in the applicable Order.
Distributor shall pay to Supplier all import, taxes, shipping and other specific costs, if
any, associated with importing and delivering the Products from VOLCANO in the United States
to the Distributor. Supplier shall provide a detailed breakdown of each charge for each
shipment of Products to Distributor.
	 
	3.4	 	The Products delivered pursuant to the terms of this Agreement shall be suitably packed for
shipment in Supplier’s standard shipping cartons, marked for shipment to Distributor’s address
set forth above or any other address in Japan as Distributor indicates. Title and risks of
loss or damage to the Products shall pass from Supplier to Distributor upon delivery to the
carrier selected by Distributor.
	 
	3.5	 	Supplier shall be responsible for all packaging and labeling of the Products purchased under
this Agreement. Distributor shall not modify, alter or add to, or authorize any third party
to modify, alter or add to, any labeling of any Product without the prior written consent of
Supplier.
	 
	4	 	PRICING AND PAYMENT
	 
	4.1	 	The purchase price for each Product purchased by Distributor under this Agreement shall be
determined in accordance with the Price Schedule in effect on the date of the applicable
Order. Unless otherwise specified in the Price Schedule, all prices are specified in US
Dollars. All payments for products under this Agreement shall be paid in US Dollars per the
prices in Exhibit A. All payments for expense reimbursement under this Agreement will be paid
in Japanese yen.
	 
	4.2	 	Unless otherwise specified, the prices and other amounts specified in the Price Schedule, any
Order or otherwise in or pursuant to this Agreement, do not include any sales, use or similar
taxes. Distributor shall pay such taxes to Supplier.
	 
	4.3	 	Supplier shall issue invoices at the time Supplier ships the Order to Distributor for any
Product purchased by Distributor, reimbursable costs, taxes and other amounts due to Supplier
under this Agreement. Distributor shall pay each of Supplier’s invoices within sixty (60)
days of the date of the invoice. Distributor shall make such payments in Japanese Yen by wire
transfer to an account designated by Supplier or such other means of payment as may be agreed
upon between Supplier and Distributor. Any late payment charge shall incur interest at a
rate of 14.5% per year.
	 
	5	 	MARKETING AND SALES
	 
	5.1	 	Distributor shall consult and cooperate with Supplier and VOLCANO in connection with the
marketing, sale and distribution of the Products under this Agreement.
	 
	5.2	 	Distributor shall at its sole expense, use its Best Efforts to promote the sale of the
Products in the Field within the Territory. Such promotion shall include, but not be limited
to, preparing promotional materials in languages appropriate for the Territory, as approved by
VOLCANO, participating in appropriate trade shows to the extent Distributor thinks fit, and
directly soliciting orders from customers for the Products in the Field within the Territory.
	 
	5.3	 	Distributor shall devote sufficient financial resources, technically qualified sales
personnel, and service personnel to the Products to fulfill its responsibilities under this
Agreement.
	 
	5.4	 	Distributor shall, at its own expense:

Page 3 of 11

 

	(i)	 	place the Products in Distributor’s catalogues as soon as possible and feature the Products
in any applicable trade show that it attends to the extent Distributor thinks fit;
	 
	(ii)	 	provide adequate contact with existing and potential customers within the Territory on a
regular basis, consistent with good business practice;
	 
	(iii)	 	assist Supplier and VOLCANO in assessing customer requirements for the Products, including
modifications and improvements thereto, in terms of quality design, functional capability, and
other features;
	 
	(iv)	 	submit market research information to VOLCANO, as reasonably requested by VOLCANO, regarding
competition, changes in the market within the Territory, and customer complaints; and
	 
	(v)	 	provide VOLCANO with a report, by product type, of all sales of Products for each quarter no
later than thirty (30) days following the end of such quarter.
	 
	5.5	 	Distributor shall comply with all applicable laws and regulations relating to the marketing,
sale and distribution of the Products under this Agreement. Distributor shall not import,
export or reexport, or authorize the import, export or reexport of, any Product, technical
data or other items in violation of any such requirement.
	 
	5.6	 	During the term of this Agreement and for a period of three (3) years after the end of the
term, Distributor shall keep and maintain records of all sales and other distributions of
Products made by Distributor sufficient to effectively, efficiently and economically implement
any recall of any Product. Upon Supplier’s or VOLCANO’S request, Distributor shall make such
records available to Supplier or VOLCANO, as the case may be, and otherwise cooperate as
reasonably required to effectively, efficiently and economically implement any recall.
	 
	6	 	INTELLECTUAL PROPERTY RIGHTS
	 
	6.1.1	 	VOLCANO hereby grants to Distributor a non-exclusive license to use the VOLCANO Trademarks
(defined herein below) for the purpose of identifying and marketing the Products in the Field
throughout the Territory. Any use of the VOLCANO Trademarks will be in accordance with such
instructions as VOLCANO may give Distributor from time to time.
	 
	6.1.2	 	During the term of this Agreement, Distributor shall have the right to indicate to the
public that it is an authorized distributor of the Products and to advertise (within the
Territory) such Product under the trademarks, marks and trade names that VOLCANO may adopt
from time to time (“VOLCANO Trademarks”). Nothing herein shall grant to Distributor any right,
title or interest in the VOLCANO Trademarks. At no time during or after the term of this
Agreement shall Distributor challenge or assist others to challenge the VOLCANO Trademarks or
the registration thereof or attempt to register any trademarks, marks or trade name
confusingly similar to those of VOLCANO.
	 
	6.2	 	VOLCANO shall be the owner of, and hereby reserves, any and all patent, trade secret,
trademark and other intellectual property rights with respect to Products (including, without
limitation, any and all Product Improvements). Distributor shall properly identify and
accurately describe all Products as products of VOLCANO. Distributor shall not alter, remove,
deface or obscure any notice of any patent, trade secret, trademark or other proprietary right
on any Product.
	 
	6.3	 	VOLCANO reserves any and all rights that it may have in any of its names, logos and other
trademarks that are included in the branding of Products or otherwise used in connection with
the marketing, sale or distribution of Products under this Agreement.
	 
	6.4	 	Distributor shall immediately notify Supplier and VOLCANO of any infringement, misuse,
misappropriation or violation of any patent, trade secret, trademark or other intellectual
property right of a Product that comes to Distributor’s attention. In the event of any such
infringement, misuse, misappropriation or violation relating to the activities of Distributor
or any third party acquiring any Product directly or indirectly from Distributor, Distributor
shall take all steps reasonably necessary to

Page 4 of 11

 

	 	 	terminate any such infringement, misuse, misappropriation or violation, but excluding any
right or obligation to initiate any legal proceedings. As between the Distributor, VOLCANO
and Supplier, VOLCANO shall have exclusive control over the commencement, prosecution and
settlement of any legal proceeding to enforce, recover damages on account of or obtain other
relief with respect to any infringement, misuse, misappropriation or violation of any
patent, trade secret, trademark or other intellectual property rights of VOLCANO. As
between the Distributor and VOLCANO, VOLCANO shall have exclusive control over the
commencement, prosecution and settlement of any legal proceeding to enforce, recover damages
on account of or obtain other relief with respect to any infringement, misuse,
misappropriation or violation of any patent, trade secret, trademark or other intellectual
property rights of VOLCANO. In connection with any such legal proceeding in the Territory,
Distributor shall provide such assistance related to such proceeding as VOLCANO, as the case
may be, may reasonably request (including, without limitation, enforcing any judgment,
settlement or order made in connection with such proceeding); provided that VOLCANO, as the
case may be, shall reimburse the expenses reasonably incurred by Distributor to provide such
assistance in accordance with VOLCANO’S, as the case may be, request for the same.
Distributor shall not have any right to commence, prosecute or settle any legal proceeding
to enforce, recover damages or obtain other relief on account of any infringement, misuse,
misappropriation or violation of any patent, trade secret, trademark or other intellectual
property right of VOLCANO.
	 
	6.5	 	Except as otherwise specifically set forth in this Section 6, this Agreement shall not be
interpreted or construed to transfer, assign, license or grant any right to or under any
patent, trade secret, trademark or other intellectual property right of any party.
	 
	7	 	INSPECTIONS, RETURNS, REPRESENTATION, WARRANTIES AND REMEDIES
	 
	7.1	 	Distributor shall inspect all Products, except those Products which are sterilized and
sealed, promptly upon receipt thereof and may reject any Product that fails to meet the
specifications set forth in VOLCANO’S current product specifications for that Product. Any
Product not properly rejected within sixty (60) days of receipt of that Product at
Distributor’s facility (the “Rejection Period”) shall be deemed accepted. To reject a
Product, Distributor shall, within the Rejection Period, notify Supplier and VOLCANO in
writing by facsimile of its rejection and request a Return Material Authorization (“RMA”)
number. Supplier shall provide the RMA number in writing by facsimile to Distributor within
ten (10) days of receipt of the request. Within ten (10) days of receipt of the RMA number,
Distributor shall return to Supplier the rejected Product in its original shipping carton with
the number displayed on the outside of the carton. Immediately upon receipt by Supplier of
properly received Products, Supplier shall forward the replacement request to VOLCANO. As
soon as possible after Supplier receives the replacement Products from Volcano, Supplier
shall, at its expense, ship such replacement Products to Distributor on a prepaid shipping
basis. Volcano shall reimburse the Supplier for shipping costs related to sending replacement
Products to the Distributor.
	 
	7.2	 	VOLCANO warrants to Distributor that any Product sold to Distributor under this Agreement
shall, when delivered to Distributor, meet the then effective and agreed upon specifications
and shall be free from defects in design, materials and workmanship. VOLCANO warrants to
Distributor that the use, sale, offer for sale or import of Products in accordance with this
Agreement shall not infringe on patents, trade secrets, trademarks or other intellectual
property rights of any third party.
	 
	7.3	 	VOLCANO hereby extends and agrees to extend to any original purchaser of a Product from
Distributor a warranty against defects in design, material or workmanship. Volcano shall be
responsible for the repair and/or replacement of the Products that prove to be defective. The
warranty set forth in this Section 7 shall in respect of each Product delivered hereunder
expire fifteen (15) months from the date of shipment to Distributor unless it is a sterilized
Product. For sterilized Product the warranty shall be until the expiration of the shelf life
for the sterilized Product.. If Supplier tests and inspects these returned Products and
determines that such Products perform according to VOLCANO’s written specifications, no credit
will be given to Distributor. If upon such test and inspections, such returned Products do
not perform to VOLCANO’s written specifications, these Products will be replaced at no cost to
Distributor except in the case that Supplier proves that such defect was caused after shipment
by Supplier to Distributor.
	 
	7.4	 	SUPPLIER’S AND VOLCANO’S REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS SECTION 7 ARE
EXCLUSIVE AND IN LIEU OF ANY AND ALL OTHER WARRANTIES, EXPRESS

Page 5 of 11

 

	 	 	OR IMPLIED (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR
FITNESS). THE REMEDIES SET FORTH IN THIS SECTION 7 ARE EXCLUSIVE AND IN LIEU OF ANY AND ALL
OTHER REMEDIES FOR ANY BREACH OF SUPPLIER’S OR VOLCANO’S REPRESENTATIONS AND WARRANTIES SET
FORTH IN THIS SECTION 7.
	 
	7.5	 	SUPPLIER’S AND VOLCANO’S LIABILITY ARISING OUT OF THIS AGREEMENT AND/OR SALE OF THE PRODUCT
SHALL BE LIMITED TO THE AMOUNT PAID BY DISTRIBUTOR FOR THE PRODUCTS. IN NO EVENT SHALL
SUPPLIER OR VOLCANO BE LIABLE TO DISTRIBUTOR OR ANY OTHER ENTITY FOR ANY SPECIAL,
CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES, HOWEVER CAUSED, ON ANY THEORY OF LIABILITY.
NOTHING IN THIS SECTION 7 SHALL LIMIT THE SUPPLIER’S INDEMNIFICATION OBLIGATION WITH RESPECT
TO DAMAGE CLAIMS FOR PERSONAL INJURY AND/OR DEATH CAUSED BY A DEFECT IN THE VOLCANO PRODUCTS.
	 
	8	 	INDEMNITY AND INSURANCE
	 
	8.1	 	VOLCANO shall indemnify, defend and hold harmless Distributor from and against and in respect
of any and all demands, claims, actions or causes of action, assessments, losses, damages,
liabilities, interest, penalties, costs and expenses (including without limitation, reasonable
legal fees and disbursements) resulting from, arising out of, imposed upon or incurred by
Distributor by reason of (i) any breach of any representation or warranty of VOLCANO set forth
in paragraph 7.2 or 7.3 of this Agreement; (ii) total or partial recalls of Products; or (iii)
any bodily injury caused by any alleged defects in materials, workmanship, product
performance, or design of the Products. VOLCANO and Supplier shall maintain product liability
insurance in such amounts as is advisable pursuant to ordinary good business practice for a
similar company in a similar type of business, and shall provide Distributor with evidence of
this coverage upon written request.
	 
	8.2	 	Distributor shall indemnify, defend and hold harmless Supplier and VOLCANO from and against
and in respect of any and all demands, claims, actions or causes of action, assessments,
losses, damages, liabilities, interest, penalties, costs and expenses (including without
limitation, reasonable legal fees and disbursements) resulting from, arising out of, imposed
upon or incurred by Distributor by reason of (i) any breach of Distributor’s obligations under
this Agreement; (ii) product claims, representations or warranties, whether written or oral,
made or alleged to be made, by Distributor in its advertising, publicity, promotion or sale of
any Product where such product claims, representations or warranties were not provided by or
approved by VOLCANO and Supplier; (iii) any infringement, misuse, misappropriation or
violation of any intellectual property right of any third party by any trademark of
Distributor; or (iv) negligent handling by Distributor of Products. Distributor shall maintain
product liability insurance in such amounts as is advisable pursuant to ordinary good business
practice for a similar company in a similar type of business, and shall provide Distributor
with evidence of this coverage upon written request.
	 
	9	 	TERM
	 
	9.1	 	Unless otherwise terminated in accordance with Section 10 hereof, this Agreement shall have
an initial term commencing on February 1, 2005 and ending on June 30, 2007.
	 
	9.2	 	At the end of the term, this Agreement shall terminate automatically without notice unless
prior to that time the term of the Agreement is extended by mutual written consent of the
parties.
	 
	10	 	EARLY TERMINATION
	 
	10.1	 	Not withstanding anything to the contrary in Article 9, this Agreement shall be subject to
early termination:
	 
	(i)	 	by Supplier or Distributor immediately upon written notice if the other party fails to
fulfill its obligations under this Agreement and such failure is material to this Agreement
and not remedied within thirty (30) days from having received a request for such remedial
action from the non-defaulting party; or

Page 6 of 11

 

	(ii)	 	by Supplier or Distributor immediately upon written notice if the other party should become
insolvent or start negotiations about composition for the benefit of its creditors, if a
petition for bankruptcy should be filed by or against the other party and is, in the latter,
not dismissed within sixty (60) days or if the other party makes an assignment of all or a
material part of its assets for the benefit of its creditors, other than an assignment given
as security in connection with a loan or other borrowing on marketable terms by such party.
	 
	10.2	 	In the event of a change in control of fifty (50%) percent or more of the outstanding stock
or assets of Distributor or Supplier, VOLCANO may, at its option, terminate this Agreement.
	 
	10.3	 	In the event that the parties to the Distribution Agreement, voluntarily or otherwise
terminate the Distribution Agreement, VOLCANO may, at its option, terminate this Agreement.
	 
	11	 	EFFECTS OF TERMINATION

Upon expiration or termination of the Agreement, the following shall apply:

	11.1	 	Unless otherwise agreed upon by the parties, each party shall fulfill its obligations under
any and all Orders entered into by the parties during the term in accordance with Section 3;
provided, however, that, in the event of any termination pursuant to Section 10.1(i) or (ii),
the terminating party may, at its option, cancel any outstanding Orders by giving the other
party written notice of such cancellation.
	 
	11.2	 	The parties’ respective rights and obligations with respect to any breach of this Agreement
during the term shall survive.
	 
	11.3	 	The parties’ respective rights and obligations under Sections 6, 7, 10, 11, 13, 14, 15, 17
and 20 shall survive.
	 
	11.4	 	Except as otherwise specifically provided for in Section 10, no party shall have any
liability (e.g., for any claim of damages, loss of revenue, profit or compensation, for
anticipated sales or for any costs, expenses, investments or other commitments made in
reliance upon or otherwise in connection with this Agreement) to the other parties on account
of any expiration or termination of the term. Without limiting the generality of the
foregoing, no party shall have any right, either express or implied by applicable law or
otherwise, to renewal of this Agreement or to any damages or compensation for any such
termination.
	 
	12	 	NON-COMPETITION
	 
	 	 	During the term of this Agreement, Distributor shall use its Best
Efforts in the promotion and sale of the Products, and shall not,
directly or indirectly (e.g., through any of its affiliates), develop,
market, sell, distribute or support any product that competes with
Products in the Field throughout the Territory. Provided that this
Section 12 does not extend to any of Distributor’s and/or its
affiliates’ products (either present or future) utilizing OCT
technology.

	 
	13	 	FORCE MAJEURE
	 
	13.1	 	“Force Majeure” shall mean any event or condition, not existing on the date of signature of
this Agreement, not reasonable foreseeable as of such date and without control of any party,
which prevents, in whole or in material part, the performance by one of the parties of its
obligations hereunder, such as an act of God, act of government, war or related actions, civil
insurrection, riot, sabotage, general strike, general lockout, epidemic, fire, flood windstorm
and similar events.
	 
	13.2	 	Upon giving notice to the other parties, a party affected by an event of Force Majeure shall
be released 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, but only
to the extent and only for the period that its performance of such obligations is prevented by
the event of Force Majeure.

Page 7 of 11

 

	13.3	 	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 may likewise
suspend the performance of all or part its obligations hereunder to the extent that such
suspension is commercially reasonable.
	 
	14	 	MISCELLANEOUS
	 
	14.1	 	Confidentiality
	 
	14.1.1	 	During the term of this Agreement and for a period of five (5) years thereafter, all parties
undertake not to disclose to any third party any Confidential Information (as defined below)
that the party receives from the other parties and shall not be used for any other purpose
than is required in order to fulfill its obligations under this Agreement.
	 
	14.1.2	 	For the purpose of this Agreement, Confidential Information shall include any and all
technical, financial, business or other information disclosed by one party to the other
verbally, in writing or in any other way, including without limitation documents, data or
information related to products, technologies, know-how and trade secrets, provided that
Confidential Information shall not include:
	 
	(i)	 	information which the receiving party can show was lawfully in its possession at the time of
disclosure;
	 
	(ii)	 	information which at the time of disclosure is in the public domain or which is published
after disclosure or otherwise becomes part of the public domain through no fault of the
receiving party; or
	 
	(iii)	 	information which the receiving party can show was received by it from a third party who did
not acquire the information, directly or indirectly, from the disclosing party under an
obligation of confidence.
	 
	14.2	 	Relationship Between Parties
	 
	 	 	This Agreement does not make any party the employee, agent or legal
representative of the other for any purpose whatsoever. No party is
granted any right or authority to assume or create any obligation or
responsibility, expressed or implied, on behalf of or in the name of
any other party. In fulfilling its obligations pursuant to this
Agreement, all parties shall be acting as an independent contractor.

	 
	14.3	 	Headings
	 
	 	 	The titles and headings to Sections herein are inserted for the
convenience of reference only and are not intended to be a part of or
affect the meaning or interpretation of this Agreement.

	 
	14.4	 	Notice
	 
	14.4.1	 	All notices or other communications to a party hereto required or permitted hereunder shall
be deemed to be given if in writing and delivered personally or sent by facsimile (with
confirmation of transmission) or certified mail (return receipt requested) to such party at
the addresses listed in Section 1 of this Agreement (or at such other addresses as shall be
specified by like notice).
	 
	14.4.2	 	All notices shall be deemed to be given on the day when actually delivered as provided above
(if delivered personally or by facsimile) or on the day shown on the return receipt (if
delivered by mail) or on the second day following delivery to a reputable courier.
	 
	15	 	GOVERNING LAW
	 
	 	 	This Agreement shall be construed and governed in accordance with the laws of Japan.

	 
	16	 	ASSIGNMENT
	 
	 	 	This Agreement, including all terms and conditions hereof which survive any termination or
expiration of this Agreement, shall be binding upon and inure to the benefit of the parties
hereto and their permitted

Page 8 of 11

 

	 	 	successors and assign. No party may assign any of its rights and obligations hereunder
without prior written consent of the other parties.
	 
	17	 	ATTORNEYS FEES
	 
	 	 	In the event that an action or proceeding is brought as a result of any dispute between the
parties hereto concerning any provision of this Agreement or the rights and duties of any
party in relation thereto, the prevailing party in such action or proceeding shall be
entitled to recover from the losing party its reasonable attorneys fees and costs in
addition to any other relief which may be granted.
	 
	18	 	COUNTERPARTS
	 
	 	 	This Agreement may be executed in several counterparts, each of which shall be deemed an
original, and such counterparts shall together constitute but one and the same agreement,
binding upon all the parties hereto, not withstanding that all the parties are not
signatories to the original of the same counterpart.
	 
	19	 	ENTIRE AGREEMENT
	 
	 	 	This Agreement, and exhibits attached hereto, constitutes the entire
agreement, and supersedes any and all prior agreements, with respect
to the appointment of Distributor as Supplier’s distributor and the
purchase and sale of the Products. No amendment, modification or
waiver of any of the provisions of this Agreement shall be valid
unless set forth in a written instrument signed by the party to be
bound thereby.

	 
	20	 	NO IMPLIED WAIVER
	 
	 	 	No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a
waiver of any other provision, whether or not similar, nor shall any waiver constitute a
continuing waiver. No waiver shall be binding unless executed in writing by the party
making the waiver.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date
first above written by their respective duly authorized representatives.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fukuda Denshi Co., Ltd.	 	 	 	Goodman Company, Ltd.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Kotaro Fukuda	 	 	 	By:	 	/s/ Akira Yamamoto	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Kotaro Fukuda	 	 	 	Akira Yamamoto	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	President and CEO	 	 	 	President	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	Volcano
Corporation

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Scott Huennekens	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Scott Huennekens
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	President
and CEO
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

Page 9 of 11

 

EXHIBIT A

TO FUKUDA-GOODMAN

NON-EXCLUSIVE DISTRIBUTION AGREEMENT

Prices Effective April 1, 2005

Description of VOLCANO Products and Pricing

	 	 	 
	
    
    Distributor Name:

    	 	
    Fukuda Intervention Systems
	
    
    Distributor Territory:

    	 	
    Japan

	 	 	 	 	 	 	 
	 	 	 	CATALOG	 	 	TRANSFER PRICE
	PRODUCT	 	 	NUMBER	 	 	(EACH)
	 
	
    
       In-Vision Gold 2003 System:

    	 	 	
    S7700908	 	 	 
	
    
       1-15 Units Purchased Annually

    	 	 	 	 	 	
    [CONFIDENTIAL]USD
	
    
       16-24 Units Purchased Annually

    	 	 	 	 	 	
    [CONFIDENTIAL]USD
	
    
       25+ Units Purchased Annually

    	 	 	 	 	 	
    [CONFIDENTIAL]USD
	
    
       Remora2 Data Recorder (for use with Gold
    system only)

    	 	 	
    804175-001	 	 	
    [CONFIDENTIAL]USD
	
    
       In-Vision Gold 2003 with DR Integrated

    	 	 	
    804908-001	 	 	 
	
    
    1-15 Units Purchased Annually

    	 	 	 	 	 	
    [CONFIDENTIAL]USD
	
    
    16-24 Units Purchased Annually

    	 	 	 	 	 	
    [CONFIDENTIAL]USD
	
    
    25+ Units Purchased Annually

    	 	 	 	 	 	
    [CONFIDENTIAL]USD
	
    
       Eagle Eye Catheter

    	 	 	
    85900	 	 	
    [CONFIDENTIAL]USD
	
    
       Avanar Catheter

    	 	 	
    85700	 	 	
    [CONFIDENTIAL]USD
	
    
       PV .018 Catheter

    	 	 	
    86700	 	 	
    [CONFIDENTIAL]USD
	
    
       PV 8.2 Catheter

    	 	 	
    88900	 	 	
    [CONFIDENTIAL]USD
	
    
       TrakBack II

    	 	 	
    91002	 	 	
    [CONFIDENTIAL]USD
	
    
       R100 Reusable Pullback Device

    	 	 	
    804547001	 	 	
    [CONFIDENTIAL]USD
	
    
       Flat Panel Monitor (for use with Gold
    system only)

    	 	 	
    803502-001	 	 	
    [CONFIDENTIAL]USD
	
    
       *Plus Upgrade (Tsunami Upgrade Kit)

    	 	 	
    S9200100	 	 	
    [CONFIDENTIAL]USD
	
    
       *DICOM Connection Kit

    	 	 	
    803183-001	 	 	
    [CONFIDENTIAL]USD
	 	 	 

			
	 	n 	
    Travel costs associated with installation are not included in
    product cost.
	 	n 	
    All prices are quoted “each” and in US Dollars
	 	n 	
    Volcano Therapeutics’ Terms are FOB Origin, net sixty (60)
    days.

	 	 	 
	 	 	 
	
    
    Distributor Authorized Signature and Date

    	 	
    VOLCANO Authorized Signature and Date

 

EXHIBIT B

TO

NON-EXCLUSIVE SUB-DISTRIBUTION AGREEMENT

As of [                     ]

Territory

TO BE DETERMINED

Page 11 of 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]