Document:

Exhibit 10

Exhibit 10.58

 

Delivery Order DTFA01-02-C-23003

Contract DTFA01-02-C-00023

Modification/Revision 1

 

DELIVERY ORDER DO#3

Under Contract No. DTFA01-02-C-00023

 

The purpose of this

modification is to apply the Defense Priority and Allocation Rating to item number

7 of the delivery order.

 

1.                                       7.  Defense Priority and Allocation Requirement

is hereby deleted and replaced by:

 

7.                                                               Defense

Priority and Allocation Requirement

 

The Transportation Security

Administration, U.S. Department of Transportation (TSA/DOT) is authorized to

use the DO-H8 priority rating in accordance with the provisions of the Defense

Priorities and Allocations System (DPAS) regulation (15 C.F.R. § 700, et seq.)

on its contracts and orders placed with U.S. contractors and suppliers,

including InVision Technologies, Inc. to support the acquisition of Explosive

Detection Systems (EDS) machines, including applicable spare parts and service

subcontracts, for the TSA/DOT Transportation Threat Protection Program (TTPP).  The TTPP is approved as a national defense

program as defined in the Defense Production Act (DPA) of 1950, as amended (50

U.S.C. App. § 2152(13)).

 

This Rating Authorization is

granted under the authority of Section 101(a) of the DPA of 1950, as amended

(50 U.S.C App. § 2071, et seq,) and the DPAS, and with the concurrence

of the Federal Emergency Management Agency (FEMA).  Except as needed to support the procurement of applicable spare

parts and maintenance and repair services, this Rating Authorization will

terminate upon delivery of all the EDS machines required by TSA/DOT to satisfy

machine requirements under the Aviation and Transportation Security Act of 2001

(Pub. L. No. 107-71, 155 Stat. 597 (2001)).

 

DO-H8 priority rating hereby

applies to this delivery order.  The

Contractor shall follow all requirements of the DPAS regulation (15 C.F.R. §

700, et seq.) during the conduct of this delivery order.

 

2.                                       Except

as provided herein, all other terms and conditions remain unchanged.

 

END OF DELIVERY ORDERExhibit 10.59

  
	

   

  	

   

  	

  ***Text Omitted and Filed

  Separately

  
	

   

  	

   

  	

  Confidential Treatment Requested

  
	

   

  	

   

  	

  Under 17 C.F.R. §§ 200.80(b)(4), and

  240.24b-2

  

 

AGREEMENT

FOR PRODUCTS AND SERVICES

BETWEEN

INVISION

TECHNOLOGIES, INC.

AND

COORSTEK,

INC.

 

THIS AGREEMENT FOR PRODUCTS AND SERVICES is

made by and between CoorsTek, Inc., with offices

located at 16000 Table Mountain Parkway, Golden, Colorado 80403 (hereinafter

“CoorsTek” or  “Supplier”), and InVision

Technologies, Inc., with offices located at 7151 Gateway Boulevard, Newark,

California 94560 (hereinafter “InVision” or “Customer”).

 

In consideration of

the promises, mutual covenants and agreements contained herein, the receipt and

sufficiency of which are hereby acknowledged, Customer and Supplier agree as

follows:

 

1.                                      DEFINITIONS

 

The terms

defined in this Section 1 shall have the meanings set forth below whenever they

appear in this Agreement, unless a different definition is described for a

particular Section or provision:

 

1.1.                            “Affiliate” means (i) any corporation, subsidiary, or business

entity forty percent (40%) of which is owned directly or indirectly by

Customer, or (ii) any corporation which directly or indirectly owns forty

percent (40%) or more of Customer, or (iii) any corporation, subsidiary, or

business entity under the direct or indirect control of such corporation,

subsidiary, or business entity as described in (i) or (ii).

 

1.2.                            “Agreement” means this written contract between Customer and

Supplier covering the purchase of Products and Services together with the

Statement of Work, attached exhibits, and amendments to this Agreement issued

in accordance with the Section 25 entitled “Amendments”.

 

1.3.                            “Liabilities”

means all judgments, orders, awards, claims,

damages, losses, liabilities, costs and expenses, including, but not limited

to, court costs and reasonable attorneys’ fees.

 

1.4.                            “Change”

means a Customer or Supplier proposed change to the Supplier’s obligations

hereunder.

 

1.5.                            “Customer”

means InVision Technologies, Inc. and shall

also include any Affiliate of InVision that places any Order(s) or obtains any

Products or Services under this Agreement.

 

1.6.                            “Final

Acceptance Test” means inspection by the Federal Aviation

Administration (FAA), an entity approved by the FAA, or other authorized government

authority to perform such test of any Products delivered under this Agreement.

 

1.7.                            “Order(s)”

means a written or electronic offer by

Customer for Products or Services that shall be deemed to incorporate all

provisions of this Agreement.

 

1.8.                            “Products”

means any deliverables under this Agreement, including assemblies, components

and subassemblies associated with a System.

 

 

1.9.                            “Services”

means the work to be performed by Supplier

under this Agreement in providing Supply Chain Management, Assembly Services,

or field service support and excludes work performed by Supplier in providing

Products.

 

1.10.                 “Statement(s) Of Work” means the written instruments made part of this

Agreement by this reference describing, among other things, the scope of the

Products to be delivered or Services to be performed by Supplier hereunder, the

time frame for completion thereof and the fee(s) associated therewith.

 

1.11.                 “Supplier” means CoorsTek, Inc., and shall also include any Affiliate of CoorsTek

that provides any Products or Services under this Agreement.

 

1.12.                 “System” means an

InVision model CTX 2500 or CTX 5500DS explosive detection system

(EDS).

 

2.                                      TERM

 

This Agreement shall commence upon the execution hereof and shall

continue for a period of one year and may be

renewed for consecutive one-year term(s) if Customer provides Supplier with

written notice of its intent to renew at least 30 days prior to expiration.

 

3.                                      TERMINATION

 

3.1.                            The rights and obligations created herein shall be

subject to termination only in accordance with the termination provisions of

this Agreement.

 

3.2.                            Either party to this Agreement shall have the right

to terminate a singular Statement of Work  

upon the following conditions. 

In the event of a breach of a material term of a singular Statement of

Work, the non-breaching party shall give the breaching party written notice of

the breach.  The breaching party will

have ten (10) business days to cure such breach or within ten (10) business days

of receiving the notice, must provide to the non-breaching party an acceptable

plan to cure the breach.  Failure to

cure the breach or to set forth an acceptable plan to cure the breach within

the allotted time frame shall give the non-breaching party the right to

immediately terminate that singular Statement of Work for cause pursuant to the

wind down provision contained in the subject Statement of Work.

 

3.3.                            Customer shall have the right to terminate this

Agreement if Customer’s contract with the Federal Aviation Administration

and/or Transportation Security Administration is terminated or substantially

reduced by the government. Upon written notice of such a termination, Supplier

shall cease performance of all Services and manufacture of all Products, as

provided in the applicable Statement of Work(s).

 

3.4.                            Termination under this Section 3 shall not limit or

affect either party’s rights or obligations arising under this Agreement prior

to such termination.

 

2

 

4.                                      SCOPE OF PRODUCTS

AND SERVICES

 

4.1.                            Services

- The description of the Services, together with the time(s) of performance are

described in this Agreement and Attachment 1 the Supply Chain Management

Services Statement of Work and Attachment 2 Assembly Services Statement of

Work. The Services shall be performed upon such terms as set forth in the

Statements of Work and this Agreement.

 

4.2.                            Products

– Attachment 3 the Statement of Work for Components contains a description of

the Products to be provided under this Agreement.  Products shall be manufactured and delivered upon such terms as

set forth in Attachment 3 and this Agreement.

 

4.3.                            Field

Service or Spares - Attachment 4, when and if negotiated by the parties will

contain the Statement of Work for Field Services or Spares to be provided under

this Agreement.

 

5.                                      AGREEMENT

CHANGE ORDERS

 

5.1.                            During

the term of this Agreement, Customer or Supplier may agree to meet not less

frequently than once per calendar quarter to review Supplier’s performance

under this Agreement.  If as a result of

these quarterly meetings, or as otherwise may arise during the term of this

Agreement, Customer proposes a change in Supplier’s obligations hereunder, then

all such Changes shall be implemented pursuant to the procedures set forth in

this Section.

 

5.2.                            If Customer desires to propose a Change, it shall deliver a written

notice to the Supplier describing the Change proposal and establishing a

reasonable period for Supplier to respond. 

Supplier shall respond to such proposal within the time stated in the

proposal by preparing and delivering to the Customer, a written document

indicating:

 

5.2.1.                                   the

effect of the proposal, if any, on the amounts payable by Customer under this

Agreement;

 

5.2.2.                                   the

effect of the proposal, if any, on Supplier’s performance of its obligations

under this Agreement;

 

5.2.3.                                   the

anticipated time schedule for implementing the proposal; and

 

5.2.4.                                   any

other information requested in the proposal or reasonably necessary for

Customer to make an informed decision regarding the proposal.

 

5.3.                            If

Customer accepts the change proposal response by the Supplier, the parties

shall amend this Agreement to incorporate such changes.

 

5.4.                            No

change shall be made by the Supplier without the written consent of

Customer.  If Supplier desires to

propose a Change, it shall deliver a written request to Customer, which shall

include the information described in Section 5.2 above.

 

5.5.                            In the

event that Customer and Supplier can not agree on a Change, then Supplier will

perform the Change as instructed by Customer, and Customer will pay a

provisional fee in an amount as determined by Customer.  The actual amount of the fee will be

determined in accordance with the Dispute Resolution clause 20 of this Agreement.

 

3

 

6.                                      FEE(S)

 

As consideration for Supplier’s manufacture of the Products and

performance of the Services, Customer agrees to pay Supplier the Fee(s) set

forth in the applicable Statement of Work.

 

7.                                      INVOICES

AND PAYMENTS

 

Payment terms

are [...***...] days unless noted

otherwise in the applicable Statement of Work.   A late payment charge of [...***...]

% per month (annual rate of [...***...]%)

will be added to past due accounts, unless other arrangements are made.  All orders are subject to management

approval of and periodic review of credit, export and payment terms, which may

be modified by Supplier on reasonable notice for good cause.  When Wire Remittance is required or

necessary, remittance should be made to:

 

COORSTEK

c/o LaSalle Bank National Association

ABA #: 0071000505

Swift #:  [...***...]

Acct #:  [...***...]

 

When Check Remittance is required or necessary, checks should be sent

to:

 

COORSTEK

c/o Bank of America

135 South LaSalle Dept. # 3193

Chicago, Illinois   60674-3193

 

8.                                      WARRANTIES

 

Except as set forth in the applicable

Statement of Work SUPPLIER MAKES NO OTHER WARRANTY OF ANY KIND WHATEVER,

EXPRESS OR IMPLIED.  SUPPLIER EXPRESSLY

DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR

PURPOSE.

 

9.                                      CONFIDENTIALITY/PROTECTION

OF PROPRIETARY RIGHTS

 

All of the

Customer’s specifications and processes are Confidential Information, and shall

be protected from disclosure as provided in the Non-Disclosure Agreement

between Customer and Supplier dated January 8, 2002, attached to this Agreement

as Attachment 6 and made a part hereof.

 

10.                               INDEPENDENT

CONTRACTOR

 

Supplier and

Customer hereby declare and agree that they are engaged in independent

businesses and will perform their respective obligations under this Agreement

as independent contractors and not as the agent or employee of the other party;

that the persons performing services hereunder are not agents or employees of

the other party; that each party has and hereby retains the right to exercise

full control of and supervision over the performance of its obligations

hereunder and full control over the employment, direction, compensation and

discharge of all employees assisting in the performance of such obligations;

that each party will be solely responsible for all matters relating to payment

of its employees, including compliance with workers’ compensation,

unemployment, disability insurance, social security withholding, and all other

federal, state and local laws, rules and regulations governing such matters;

and that each party will be responsible for its own acts and those of its

agents, employees and subcontractors

*Confidential

Treatment Requested

4

 

during the

performance of its obligations under this Agreement. Each party agrees that its

employees are not entitled to unemployment insurance benefits from the other

party as a result of performing under this Agreement.  Each party is responsible for and shall pay all assessable

federal and state income tax on amounts paid under this Agreement.

 

11.                               INDEMNITY

 

11.1.                     Customer

shall indemnify and hold harmless Supplier, its owners, parents, Affiliates,

subsidiaries, agents, directors and employees from any Liabilities arising from

and in connection with Supplier providing Services or Products under this

Agreement or from Customers’ use of Product(s) or the acts or omissions of

Customer, its agents and employees and others under its direction or control

except to the extent such Liabilities are caused by or are the result of the

negligence or willful misconduct of Supplier. 

Such Liabilities shall include, but not be limited to, those

attributable to personal injury, sickness, disease or death; and/or result from

injury to or destruction of real or personal property including loss of use

thereof, theft, misuse or misappropriation.

 

11.2.                     Supplier

shall indemnify and hold harmless Customer, its owners, parents, Affiliates,

subsidiaries, agents, directors and employees from any Liabilities arising from

and in connection with Supplier providing Services or Products under this

Agreement or the acts or omissions of Supplier, its agents and employees and

others under its direction or control except to the extent such Liabilities are

caused by or are the result of the negligence or willful misconduct of

Customer.  Such Liabilities shall

include, but not be limited to, those attributable to personal injury,

sickness, disease or death; and/or result from injury to or destruction of real

or personal property including loss of use thereof, theft, misuse or

misappropriation.

 

11.3.                     Customer

shall indemnify and hold harmless Supplier, its owners, parents, Affiliates,

subsidiaries, agents, directors and employees from and against all Liabilities

arising out of or resulting from (i) assertions under workers’ compensation or

similar employee benefit acts made by Customer or any of Customer’s employees,

agents, subcontractors, or subcontractors’ employees or agents, or (ii) any

other claim which may be asserted by any of Customer’s employees, customers,

agents, subcontractors or subcontractor’s employees or agents against Supplier,

its owners, parents, affiliates, subsidiaries, agents, directors and employees

except to the extent such claim is the direct result of the gross negligence or

willful misconduct of Supplier.

 

11.4.                     Supplier

shall indemnify and hold harmless Customer, its owners, parents, Affiliates,

subsidiaries, agents, directors and employees from and against all Liabilities

arising out of or resulting from (i) assertions under workers’ compensation or

similar employee benefit acts made by Supplier or any of Supplier’s employees,

agents, subcontractors, or subcontractors’ employees or agents, or (ii) any

other claim which may be asserted by any of Supplier’s employees, suppliers

(but not including suppliers under supply chain management services), agents,

subcontractors or subcontractor’s employees or agents against Customer, its

owners, parents, affiliates, subsidiaries, agents, directors and employees

except to the extent such claim is the direct result of the gross negligence or

willful misconduct of Customer.

 

11.5.                     The foregoing

indemnification obligations are conditioned upon the following:

 

11.5.1.           The

party claiming a right to be indemnified (“Indemnified Party”) notifies the

other party (“Indemnifying Party”) within ten (10) days of receipt or notice of

any claim or action for which the Indemnified Party will seek indemnification;

 

11.5.2.           The

Indemnifying Party has sole control of the defense and/or settlement of any

claim;

 

11.5.3.           The Indemnified Party

shall furnish to the Indemnifying Party, upon request, information available to

the Indemnified Party for such defense; and

5

 

 

11.5.4.           The Indemnified Party

shall provide the Indemnifying Party with reasonable assistance in connection

with such defense.

 

12.                               INSURANCE

 

12.1.                     Supplier

will, at its expense, procure and maintain insurance on all of its operations,

including the policies listed below. Supplier will furnish certificates of

insurance as requested.

 

12.1.1.    Workers’ Compensation Insurance in the

statutory amount.

 

12.1.2.    Employer’s Liability Insurance, in the

amount of $[...***...] per

occurrence.

 

12.1.3.           Commercial

General Liability Insurance, including coverage for property damage and

personal injury, in the amount of $[...***...]

per occurrence.

 

12.1.4.           Products

liability coverage, including coverage for property damage and personal injury,

in the amount of $[...***...] per

occurrence.

 

12.1.5.           Property

Insurance, including coverage for Customer owned material located on Supplier’s

premises and in transit, in the amount of $[...***...]

per occurrence.

 

12.1.6.           Commercial

Automobile Liability Insurance with a $[...***...]

combined single limit.

 

12.2.                     Customer

will, at its expense, procure and maintain insurance on all of its operations,

including the policies listed below. Customer will furnish certificates of

insurance as requested.

 

12.2.1.           Workers’ Compensation

Insurance in the statutory amount.

 

12.2.2.           Employer’s Liability

Insurance, in the amount of $[...***...]

per occurrence.

 

12.2.3.           Commercial General

Liability Insurance, including coverage for property damage and personal

injury,  in the amount of $[...***...] per occurrence.

 

12.2.4.           Products liability

coverage, including aviation related products, war risk and terrorism coverage,

including coverage for property damage and personal injury, in the amount of $[...***...] per occurrence.

 

12.2.5.           Commercial Automobile

Liability Insurance with a $[...***...]

combined single limit.

 

13.                               PATENT, TRADEMARK, COPYRIGHT OR TRADE SECRET

INDEMNIFICATION

 

13.1.          

Customer shall indemnify and hold harmless Supplier, its owners, parents,

Affiliates, subsidiaries, agents, directors and employees from and against all

Liabilities that may result by reason of any infringement or claim of 

 

*Confidential Treatment Requested

6

 

infringement

of any patent, trademark, copyright, trade secret or other proprietary right

relating to the design and/or use of the Systems.  Customer will defend and/or settle at its own expense any action

brought against Supplier to the extent that it is based on a claim that the

System design(s) and/or the use thereof, infringe any patent, trademark,

copyright, trade secret or other proprietary right.

 

 

13.2.                     If a preliminary or final judgment shall be obtained

against Supplier based upon its providing of Services or Product(s) or any part

thereof by reason of alleged infringement, or if in Supplier’s opinion, such

System(s) or any part thereof, and/or the use thereof are likely to become

subject to a claim for infringement, Customer shall, at its expense and option

and without any effect or waiver of any right Supplier may possess at either

law or equity, either: (1) procure for Supplier the right to continue

manufacturing and using such System(s); or (2) replace or modify System(s) so

that it becomes non-infringing but only if the modification or replacement does

not adversely affect the Supplier’s rights or ability to use same as specified

herein.

 

13.3.                     Supplier shall indemnify and hold harmless Customer,

its owners, parents, Affiliates, subsidiaries, agents, directors and employees

from and against all Liabilities that may result by reason of any infringement

or claim of infringement of any patent, trademark, copyright, trade secret or

other proprietary right relating to the Supplier’s supply chain management

and/or manufacturing and assembly processes. 

Supplier will defend and/or settle at its own expense any action brought

against Customer to the extent that it is based on a claim that the supply

chain management and/or manufacturing and assembly processes and/or the use

thereof, infringe any patent, trademark, copyright, trade secret or other

proprietary right.

 

13.4.                     If a preliminary or final judgment shall be obtained

against Customer based upon its providing of supply chain management and/or

manufacturing and assembly processes or any part thereof by reason of alleged

infringement, or if in Customer’s opinion, such supply chain management and/or

manufacturing and assembly processes or any part thereof, and/or the use

thereof are likely to become subject to a claim for infringement, Supplier

shall, at its expense and option and without any effect or waiver of any right

Customer may possess at either law or equity, either: (1) procure for Customer

the right to continue using such Services; or (2) replace or modify Services so

that they become non-infringing but only if the modification or replacement

does not adversely affect the Customer’s rights or ability to use same as

specified herein.

 

13.5.                     The

foregoing indemnification obligations are conditioned upon the following:

 

13.5.1.          The party claiming a right to be indemnified

(“Indemnified Party”) notifies the other party (“Indemnifying Party”) within

ten (10) days of receipt or notice of any claim or action for which the

Indemnified Party will seek indemnification;

 

13.5.2.           The

Indemnifying Party has sole control of the defense and/or settlement of any

claim;

 

13.5.3.           The

Indemnified Party shall furnish to the Indemnifying Party, upon request,

information available to the Indemnified Party for such defense; and

 

13.5.4.           The Indemnified Party

shall provide the Indemnifying Party with reasonable assistance in connection

with such defense.

 

7

 

14.                               ADVERTISING;

PUBLICITY

 

Customer and

Supplier grant to each other permission to reference the other in advertising,

promotional efforts and publicity so long as the party originating the

advertisement, promotional effort or publicity provides the other party prior

notice.   Nothing in this section shall

prohibit either party from making any disclosure ordered by a court or agency

of competent jurisdiction or otherwise required by law.

 

15.                               PLANT

AND WORK RULES

 

Supplier and

Customer, while on the premises of the other shall comply with all plant rules

and regulations including, where required by governmental regulation,

submission of satisfactory clearance from the appropriate governmental

authorities.

 

16.                               FORCE

MAJEURE

 

Neither party

shall be liable for failure to perform when such failure is caused by

unforeseeable force majeure circumstances. 

If such circumstances occur, the party injured by the other’s inability

to perform may elect to (1) terminate that portion of this Agreement adversely

impacted by the failure to perform and as specified in Section 3 of this

Agreement; and/or (2) suspend that portion of this Agreement adversely impacted

by the failure to perform for the duration of the force majeure circumstances,

and then resume performance under this Agreement.  The party experiencing the force majeure circumstances shall

cooperate with and assist the injured party in all reasonable ways to minimize

the impact of such circumstances on the injured party, including assisting in

locating and arranging for substitute Products or Services.

 

17.          SUPPLIER’S RIGHT FOR FIRST OPPORTUNITY

TO SUBMIT OFFER

 

Customer shall give Supplier the first

opportunity to submit an offer to provide Supply Chain Management Services

related to any new products outsourced by Customer.

 

18.                               RESERVATION

OF RIGHTS

 

Neither

party’s delay or failure in enforcing any right or remedy afforded hereunder or

by law shall prejudice or operate to waive that right or remedy or any other

right or remedy which it shall have available; nor shall any such failure or

delay operate to waive either party’s rights to any remedies due to a future

breach of this Agreement, whether of a like or different character.

 

19.                               SEVERABILITY

 

In the event

that a court or a governmental or regulatory agency with proper jurisdiction

determines that this Agreement or a provision of this Agreement is unlawful

respectively, this Agreement, or that provision of this Agreement, to the

extent it is unlawful, shall terminate. 

If a provision of this Agreement is terminated but the parties can

continue legally, commercially and practicably without the terminated

provision, the remainder of this Agreement shall continue in effect.  No additional liability shall attach to either

party as a result of any such termination.

 

20.                               DISPUTE RESOLUTION

 

Any controversy, claim, or dispute arising out of or relating to this

Agreement, or the breach thereof, shall be settled through good faith

negotiation between the parties.  In the

event that said negotiations

are not successful, the controversy, claim, or dispute shall be resolved

through arbitration.  Such arbitration

shall take place in San Francisco, California and shall proceed in accordance

with Commercial Arbitration Rules of the American Arbitration Association and

the laws of the State of California without regard to the provisions thereof

concerning conflict of 

8

 

laws. 

All costs and expenses of the arbitration (including fees of the

arbitrators) shall be split equally between the parties.  The non-prevailing party shall pay the

prevailing parties attorney fees in any such arbitration.

 

21.                               NONEXCLUSIVE

AGREEMENT

 

Except as set

forth in section 17 above, it is expressly understood and agreed that this

Agreement does not grant to Customer or Supplier any exclusive privileges or

rights and Supplier and/or Customer may contract with other Customers and/or

Suppliers to provide comparable services.

 

22.                               ASSIGNMENT

 

Neither party

may assign this Agreement without the express written permission of the other

party.  Provided, however, that a change

in control of a party, by merger, acquisition or other change in stock

ownership, shall not be deemed to be an assignment.

 

23.                               SETOFF

 

All claims for money due or to become due from one party shall be

subject to deduction or setoff by the other party by reason of any counterclaim

arising out of this or any other transaction with that party.

 

24.                               REMEDIES

CUMULATIVE

 

The remedies

provided herein shall be cumulative and in addition to any other remedies

provided by law or equity.

 

25.                               AMENDMENTS

 

No change or

modifications of any terms or conditions herein shall be valid or binding on

either party unless made in writing and signed by Customer and an authorized

representative of Supplier.

 

26.                               NOTICES

 

Any notice

required to be given hereunder shall be in writing and shall be addressed to

the parties at their respective address set forth below.  All notices shall be deemed given five (5)

days after mailing by certified mail, return receipt requested, and one (1) day

after sending by a nationally recognized overnight courier service which

provides a delivery receipt.

 

	

  Customer:

  	

   

  	

  Supplier:

  
	

  InVision

  Technologies

  	

   

  	

  CoorsTek,

  Inc.

  
	

  7151 Gateway

  Boulevard

  	

   

  	

  Legal

  Services Office

  
	

  Newark,

  California 94560

  	

   

  	

  16000 Table

  Mountain Parkway

  
	

   

  	

   

  	

  Golden,

  Colorado 80403

  

 

27.                               WAIVER

 

Either party’s

failure to insist on performance of any of the terms or conditions herein or to

exercise any right or privilege, or either party’s waiver of any breach

hereunder shall not be construed to be a waiver, or waive any other terms,

conditions, or privileges, whether of the same or similar type.

 

28.          GOVERNING LAW

9

 

 

This Agreement

and all transactions hereunder shall be governed by and construed in accordance

with the laws of the State of California, without regard to any provisions

regarding conflict of laws.

 

29.          INTELLECTUAL PROPERTY

 

All

intellectual property rights in Supplier’s supply chain management and

manufacturing and assembly processes, including without limitation utility

patent, design patent, trademark and copyright, are the sole property of

Supplier.  All intellectual property

rights in the Product, including without limitation utility patent, design

patent, trademark and copyright, all Customer specifications, and all methods

of manufacturing the Products as provided by Customer, are the sole property of

Customer.  If Supplier makes an

improvement to the Products, the specifications or the method of manufacturing

the Products, then Supplier hereby grants Customer a perpetual, irrevocable,

exclusive and royalty-free license to use such improvements.  Notwithstanding the foregoing, if Supplier

makes an improvement to a method of manufacturing the Products that can be

applied to products that do not compete with Customer’s Products, then

Supplier’s grant of license shall be non-exclusive and Supplier shall not grant

a license to any party that competes, directly or indirectly, with Customer.

 

30.                               LIMITATION

OF LIABILITIES

 

Notwithstanding

any other provision of this Agreement, neither party shall be liable to the

other for special, indirect, consequential or incidental losses or damages of

any kind or nature whatsoever, including but not limited to lost profits, lost

records or data, lost savings, loss of use of facility or equipment, loss by

reason of facility shut-down or non-operations or increased expense of

operations, or other costs, charges, penalties, or liquidated damages,

regardless of whether arising from breach of contract, warranty, tort, strict

liability or otherwise, even if advised of the possibility of such loss or

damage or if such loss or damage could have been reasonably foreseen.

 

31.                               EXPORT

AND IMPORT CONTROL

 

31.1.                     The Product is subject to the

Export Control regulations of the United States Department of State and/or the

United States Department of Commerce. 

Customer agrees to provide Supplier with all necessary information to

comply with the all export laws, controls and regulations of the United States

Government.  Customer will be the United

States Principal Party of Interest and accordingly, Customer shall be

responsible and liable for all aspects of export compliance.

 

31.2.                     Customer will be the Importer of

Record and accordingly shall be responsible and liable for all aspects of

import compliance necessary to obtain System components.

 

32.                               GOVERNMENT

SUBCONTRACT

 

This Agreement

is a subcontract under Customer’s contract with the Federal Aviation Administration,

Contract No. DTFA01-02-C-00023. 

Supplier shall comply with the contract clauses listed below.  Supplier may obtain the full text of these

clauses via Internet at: http://fast.faa.gov (on this web page, select

“toolsets”, then “procurement toolbox”).

 

	

  3.6.2-9

  	

   

  	

  Equal

  Opportunity

  	

   

  	

  August

  1998

  
	

  3.6.2-12

  	

   

  	

  Affirmative

  Action for Special Disabled and Vietnam Era Veterans

  	

   

  	

  January

  1998

  
	

  3.6.2-13

  	

   

  	

  Affirmative

  Action for Workers with Disabilities

  	

   

  	

  April

  2000

  
	

  3.2.2.3-8

  	

   

  	

  Audit

  and Records

  	

   

  	

  April

  1996

  

 

10

 

33.                               DEFENSE

PRIORITY

 

This Agreement

is subject to a Defense Priority and Allocation System (DPAS) Rating of

DO-H8.  Supplier shall fill this order

in compliance with the DPAS regulations, 15 CFR Part 700.

 

34.          SURVIVAL

 

The following

Sections of this Agreement shall survive any termination thereof, 1, 3, 4, 6,

7, 8, 9, 11, 13, 17, 18, 19, 20, 26, 27, 28, 29, 30, 31, 35, 36 and 37.

 

35.                               HEADINGS

 

Headings are

intended solely as a convenience and shall not control the meaning or

interpretation of any provision of this Agreement.

 

36.                               CONSTRUCTION

 

The parties acknowledge that they and their respective counsel have

reviewed this Agreement in its entirety and have had a full and fair

opportunity to negotiate its terms. 

Each party therefore waives all applicable rules of construction that

any provision of this Agreement should be construed against its drafter, and

agrees that all provisions of the Agreement shall be construed as a whole,

according to the fair meaning of the language used.

 

37.                               ENTIRE

AGREEMENT

 

This Agreement

constitutes the entire agreement between the parties hereto and supersedes any

previous agreements or understandings whether oral or written.  The printed terms and conditions contained in

purchase orders, invoices or other documents issued by Customer with respect to

this Agreement, whether previously or in the future, shall be of no effect and

shall be superseded by this Agreement. 

In the event of any conflict between or among any documents which are

part of this Agreement, precedence shall be given first to the text of this

Agreement and second to its Attachments, and third to its Exhibits. Any term or

condition, other than delivery date, quantity or price terms, on an Order,

acknowledgment form, or other forms or documents will not apply and are

objected to, unless such term is approved in writing by an authorized

representative of each party.

 

IN WITNESS WHEREOF

the parties have caused this Agreement to be executed by their duly authorized

representatives as of the last date of signature written here below.

 

	

  CoorsTek, Inc.:

  	

  InVision

  Technologies:

  
	

   

  	

   

  
	

   

  	

   

  
	

  By: 

  	

  /s/ Derek Johnson

  	

   

  	

  By: 

  	

  /s/ Donald Mattson

  	

   

  
	

   

  	

   

  
	

  Name: DEREK JOHNSON

  	

  Name: DON MATTSON

  
	

   

  	

   

  
	

  Title: COO

  	

  Title: COO

  
	

   

  	

   

  
	

  Date:

  	

  6/10/2002

  	

   

  	

  Date:

  	

  May 31, 2002

  	

   

  
										

 

 

11

 

 

ATTACHMENT

1

SUPPLY

CHAIN MANAGEMENT SERVICES

STATEMENT

OF WORK

TO

AGREEMENT

FOR SERVICES

 

This Statement of Work is attached to and made a part of that certain

Agreement for Services (“Agreement”), by and between CoorsTek, Inc.,

(“Supplier”) and InVision Technologies (“Customer”).

 

1.              Services

Description

 

a.               Overall:  Supplier shall receive instructions from

Customer to carry out Supply Chain Management (SCM) Services in the performance

of this Agreement including procurement, for Customer related to the assembly

of the Systems.  Supplier will be

responsible for managing (on behalf of Customer) an estimated 350 component

suppliers.  Supplier will provide a

facility for the receipt and inspection of all components purchased from

suppliers.

 

b.               Procurement

Planning and Execution:  Based

solely on Customer’s released Master Production Schedule and

Customer-controlled Bills of Materials, Supplier will generate Materials

Resource Planning (MRP) to determine order requirements; Supplier will

negotiate price, lead time, and delivery on behalf of Customer; Supplier, on

behalf of Customer using forms provided by or approved by Customer will use

both traditional (discrete Purchase Orders (PO)) and more advanced (Vendor

Managed Inventory, Just-in-Time/Kanbans) purchasing mechanisms to bring the

required inventory into the physical and logical system; it is the Customer’s

intent that the Supplier execute the procurement activities to meet all

firm-planned orders reflected in the Master Production Schedule and to plan

procurement activities to meet the forecasted demand; all changes to Customer’s

Approved Vendor List / Approved Parts List need the Customer’s approval and

must pass through the Change Notification process described in Section 5 of the

Agreement, to cut-in the approved change; Supplier will ensure fair and

equitable treatment of all multiple-source suppliers given equal performance in

terms of cost, schedule, and quality.

 

c.               Receiving,

Receiving Inspection, and Receiving Test: 

Based on Customer’s designations for receiving inspection and

component-level testing, Supplier, either directly or through suppliers

authorized by Customer will evaluate incoming materials to ensure conformance

to standards; known “good” product will be accepted and stored by the Supplier;

non-conforming material will be immediately returned to the vendor by the

Supplier.

 

d.               Accounts

Payable Administration:  Based on

confirmed “good” product (see section above) and accepted receipts, Supplier

will supply Customer with weekly check run requirements along with auditable

records (POs, shipping documents, receiving documents); Supplier will transfer

to Customer’s system (ROI*) the following information by cost category

(standard cost, PPV, freight, tooling, NRE, expedite charges).

 

e.               Inventory

Management and Control:  Supplier

will physically store and control Customer’s inventory at several locations

(Central Warehouse, three WIP Warehouses, and a single Material Review Board

(MRB) Warehouse); logically, the detailed inventory records and transactions

will reside in the Supplier’s Enterprise Resource (ERP) system; Supplier will

provide on-site support to ensure accurate transactions at the three manufacturing

sites (Supplier’s, Customer’s, additional Contract Manufacturer (CDS));

Supplier will conduct on-going cycle count activities as well and will review

all adjustments with Customer – Customer retains the responsibility to approve

adjustments; Customer-defined reports and audits will be used to verify the

accuracy of the Supplier’s inventory control system.

 

 

 

f.                 Material

Handling:  Supplier will provide

material handlers who will be responsible for the line-side supply using

Kanbans and Demand Flow techniques; Supplier’s material handlers will move

known “good” material to the line to prevent stock-outs and will rapidly

remove/disposition defective material; additionally, Supplier will actively

manage the shortage list – expediting material as required to ensure continuity

of supply to all three production sites; Supplier will measure delivery

performance to each site and will regularly review performance with Customer.

 

g.              Material

Review Board (MRB) for Discrepant Items: 

Supplier will maintain a physical MRB at all assembly sites and one

logical MRB in its ERP system; Supplier will clear MRB on a daily basis working

with Customer and any other Contract Manufacturer; Customer retains

responsibility for dispositioning material for continued use or re-work;

Supplier retains responsibility for returning material to vendor when it cannot

be used in the production process; Supplier will collect and report quality

statistics based on the MRB activity; Supplier will regularly measure and

report performance to Customer and will drive continuous improvement of the

supply base.

 

h.              Return

Material Authorization (RMA) and Return to Vendor (RTV) for

Components/Sub-systems:  When

Supplier finds defective materials, it will request RMAs from the vendors and

the manage the returns process; Supplier will manage its MRP to compensate for

the discrepant material and will work with the vendors to prevent any

stock-outs; Supplier will generate credits to Customer based on the returns.

 

2.              Fee

 

a.                                       Non-Recurring

Expenses (“NRE”).  Customer shall

reimburse Supplier’s NRE not to exceed $[...***...].  Supplier will bill Customer monthly for NRE

incurred during the month.  NRE is

intended to cover production set-up expenses including extraction, testing

areas, assembly fixtures, tooling fixtures, electrical accommodations, etc.

 

b.             Fee.  Supplier shall issue an invoice to Customer

every [...***...] weeks based upon

number of unit starts as determined by gantries placed at assembly station 1 as

illustrated in Attachment 6 Business Structure and Materials Management Overview.  Pricing will be determined by the number of

unit starts estimated for the quarter, or the prorated number for periods less

than one quarter, per the SCM Management Fee Schedule in the Table below at

quarter start. Adjustments to the pricing due to a change in volume will be

reconciled during the last billing cycle of the quarter.   Payment terms are Net [...***...] days. The addition of material

management services for related products such as field support is possible and

the rate structure will be adjusted by mutual consent of the Supplier and

Customer to accommodate changes in quantity/volume that may result.

 

	

  Quantity

  (Machines per Quarter)

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  
	

  Mgmt Fee

  (% of Material Managed per Machine)

  	

   

  	

  $

  	

  [...***...]

  Fixed per

  Quarter

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  
																	

 

* - In the event of sustained volumes less than [...***...] per quarter Customer and Supplier

will review resource requirements and determine if a restructuring of the SCM

plan is necessary to further reduce costs.

 

 

3.              Inspection

and Acceptance

a.               Inspection

- Customer may inspect Services performed by Supplier and/or its subcontractors

in progress or completed at any time.

b.               Acceptance

shall be deemed to occur no later than when Customer issues payment for SCM

Services in accordance with Section 2 of this SOW

*Confidential Treatment Requested

 

 

Attachment 1, Page 2

 

4.              Warranty

 

For the Services provided under this Statement of Work, Supplier

warrants that the Services shall be performed in accordance with a reasonable

standard of care and to the reasonable satisfaction of Customer.

 

5.              Schedule

 

Supplier shall begin satisfactory implementation of supply chain

management services no later than May 1, 2002.

 

6.              Wind

down of Supply Chain Management Services

 

a.               Termination

for Cause Procedure - Upon termination for cause of the SCM Services

required under this SOW by either party the following shall occur:

i.                 Supplier

will cease all work being performed under this SOW.

ii.             Supplier

will deliver to Customer all finished Product, work in process, and raw

materials and take all reasonable measures to protect Customer’s property in

Supplier’s possession.

iii.         Each

party shall retain rights to intellectual property such party brought to this

Agreement and each party shall be bound by all confidentiality, intellectual

property, warranty and indemnity obligations in accordance with the terms and

conditions of this Agreement.

iv.            Customer

will pay Supplier for SCM Services performed and for all SCM Services performed

in accordance with this SOW and for reasonable and necessary expenses which

have accrued to the date of termination less any amounts previously paid.

b.               Termination

Procedure at End of Agreement Term- Upon termination of this SOW other than

for cause the following shall occur:

i.                 No

later than 30 days from the effective date of the termination Customer shall

provide Supplier with a Notice of Termination including:

1.              The

effective termination date.

2.              A

transition plan including but not limited to details of  (1) the transfer of all finished Product,

work in process, raw materials, records, data and other information owned by

Customer and used by Supplier in providing SCM Services and (2) for all other

activities required by Customer related to the termination of this SOW.  The transition plan shall also include a

reasonable schedule for these activities.

ii.             According

to the schedule in the transition

plan, Supplier will cease all work being performed under this SOW.

iii.         Supplier will take all reasonable

measures to protect Customer’s property in Supplier’s possession.

iv.            Each

party shall retain rights to intellectual property such party used in

conjunction SCM Services and each party shall be bound by all confidentiality,

intellectual property, warranty and indemnity obligations in accordance with

the terms and conditions of this Agreement.

v.                Supplier

will have no obligation to train a third party to provide SCM Services to

Customer.

vi.            Customer

will pay Supplier for SCM Services performed and for all SCM Services performed

in accordance with this SOW, for reasonable and necessary expenses which have

accrued to the date of termination, less any amounts previously paid, plus any

costs incurred by Supplier’s in implementation of the transition plan.

 

c.

            Termination for

Convenience Procedure- Upon termination of this SOW for the convenience of

the TSA, the following shall occur:

i.

        The  Customer shall provide Supplier with a

Notice of Termination including:

1.              The

effective termination date.

 

 

Attachment 1, Page 3

 

 

2.              A

transition plan including but not limited to details of  (1) the transfer of all finished Product,

work in process, raw materials, records, data and other information owned by

Customer and used by Supplier in providing Assembly Services and (2) for all

other activities required by Customer related to the termination of this

SOW.  The transition plan shall also

include a reasonable schedule for these activities.

ii.             Supplier

will immediately cease all work being performed under this SOW, except for work

specified in the transition plan required by Customer to terminate this SOW.

iii.

            Supplier will take all

reasonable measures to protect Customer’s property in Supplier’s possession.

iv.              Each

party shall retain rights to intellectual property such party used in

conjunction Assembly Services and each party shall be bound by all

confidentiality, intellectual property, warranty and indemnity obligations in

accordance with the terms and conditions of this Agreement.

v.

             Supplier will have no

obligation to train a third party to provide Assembly Services to Customer.

vi.            Customer

will pay Supplier for Assembly Services performed and for all Assembly Services

performed in accordance with this SOW, for reasonable and necessary expenses

which have accrued to the date of termination, less any amounts previously

paid, plus any costs incurred by Supplier’s in implementation of the transition

plan

 

 

Attachment 1, Page 4

 

 

ATTACHMENT

2

ASSEMBLY

AND INTEGRATION SERVICES

STATEMENT

OF WORK

TO

AGREEMENT

FOR SERVICES

 

This

Statement of Work is attached to and made a part of that certain Agreement for

Services (“Agreement”), by and between CoorsTek, Inc., (“Supplier”) and

InVision Technologies (“Customer”).

 

1.              Services

Description

 

a.               Overall:  Supplier shall receive instructions from

Customer to carry out Assembly and Integration Services in the performance of

this Agreement including: Supplier as one of three assemblers of Customer’s

Systems will provide all necessary labor, facilities and infrastructure

required to perform the assembly services. 

This service does not include Customer’s Quality Assurance and Factory

Acceptance Testing.

 

b.              Assembly:  Supplier will build sub-assemblies and complete

mechanical/electrical assembly to Customer’s specifications.

 

c.               Bay

Test:  Supplier will manage the

“powering on” of the System, align the X-Ray Tube, Collimeter, and Detectors

per specification, and prepare the system for integration; system-level rework

to bring the System into specification will be conducted by the Supplier as

part of this effort.

 

d.              Integration:  Supplier will integrate the System’s

hardware and software using Customer-provided instructions, work sequences, and

specifications; system-level rework to bring the System into specification will

be conducted by the Supplier as part of this effort.

 

e.               Manufacturing

Support through Quality Assurance (QA) and Factory Acceptance Testing (FAT):  When Supplier notifies Customer that the System

is ready for QA or FAT, Customer expects a fully capable and compliant System;

if the System fails to meet the QA or FAT specifications during testing,

Customer will notify Supplier of the discrepancy and the Supplier will rework

the System and resubmit it for testing; Supplier maintains responsibility for

the System until it ships complete from the site.

 

f.                 In-process

Rework (to meet product specification or based on Customer-approved MRB

dispositions):  Supplier to manage

internal rework required to bring the System into specification and to pass

QA/FAT tests for first-run products.

 

2.              Fee

 

a.               Non-Recurring

Expenses (“NRE”).  Customer shall

reimburse Supplier’s NRE not to exceed $[...***...].  Supplier will bill Customer [...***...] for NRE incurred during the [...***...].  NRE is intended to cover production set-up expenses including

extraction, testing areas, assembly fixtures, tooling fixtures, electrical

accommodations, etc.

b.               [Reserved]

c.               Customer

expects to see declining costs associated with assembly of the Systems over

time based on the high volumes and expected learning

d.               An

assembly fee for the CTX 2500 of $[...***...] per

unit will be incurred for the second quarter of 2002 based on Customer’s

acceptance of the work by Supplier

e.               An

assembly fee for the CTX 5500 of $[...***...]

per unit will be incurred for the second quarter of 2002 based on Customer’s

acceptance of the work by Supplier

f.                 On

a quarterly basis, Supplier will review its actual hourly content required to

build the Systems and Customer and Supplier will negotiate a revised price

equal to or less than the previous quarter’s price.  The revised price will be based on a fee equal to (1) $ [...***...] per man hour 

 

*Confidential Treatment Requested

 

 

(verification of actual amount to be confirmed after completion of the

first control build) plus (2) a burden rate of [...***...]% of the material cost charged to

InVision by its suppliers plus (3) [...***...]%

of the total of (1) and (2). For clarity the current period assembly fees

were  calculated as follows for items

(1) (2) and (3):

 

Model CTX 2500 requires [...***...]-man hours and materials cost of $[...***...].

Calculation Example:

	

  (1)

  	

   ($[...***...]  x [...***...]) =

  	

   

  	

  $[...***...] 

  	

  plus

  
	

  (2)

  	

   ([...***...] x  $[...***...])

  =

  	

   

  	

  $[...***...]

  	

  plus

  
	

  (3)

  	

   [...***...] x ([...***...]+[...***...])

  =

  	

   

  	

  $[...***...]

  	

   

  
	

   

  	

   

  	

   

  	

  $[...***...]

  	

   

  

 

Model CTX 5500 requires [...***...]-man hours and materials cost of $[...***...].

Calculation Example:

	

  (1)

  	

   ($[...***...]  x [...***...]) =

  	

   

  	

  $[...***...] 

  	

  plus

  
	

  (2)

  	

   ([...***...] x

  $[...***...]) =

  	

   

  	

  $[...***...]

  	

  plus

  
	

  (3)

  	

   [...***...] x ([...***...]+[...***...])

  =

  	

   

  	

  $[...***...]

  	

   

  
	

   

  	

   

  	

   

  	

  $[...***...]

  	

   

  

 

e.               In the event that

Customer and Supplier can not agree on a fee for a subsequent quarter, then

Supplier will continue to perform all Services under this Statement of Work,

and Customer will pay a provisional fee in an amount as determined by Customer,

and the actual amount of the fee will be determined in accordance with the

Dispute Resolution clause 20 of this Agreement.

 

3.              Inspection

and Acceptance

 

a.               Inspection

- Customer may inspect Services performed by Supplier and/or its subcontractors

in progress or completed at any time.

b.               Acceptance

- Customer will conduct a Final Acceptance Test on each System. Assembly

Services shall be deemed accepted upon satisfactory completion of Final

Acceptance Test.

 

4.              Warranty

 

a.               For the Services

supplied under this Statement of Work, Supplier warrants that the Services will

be performed so as to assure conformance to specifications and drawings, be of

first class workmanship and free from defects in workmanship for twelve (12)

months from the date of delivery (“Warranty”).

If the Services are not supplied as warranted, Supplier will repair the

Products, and if repair is not successful, replace the Products.

In any event, Customers’ exclusive remedy hereunder is limited to the

furnishing of replacement Products on an exchange basis, or, at Supplier’s

option, to the repair or replacement of defective Products, but in either case

only so long as an examination within the period of warranty reveals the parts

to be defective.  In addition, and notwithstanding

anything herein to the contrary, Supplier shall not incur any obligation

hereunder with respect to Services or Products which are modified in any way by

Customer or a third party without Supplier’s prior written consent, provided,

however, that Supplier shall be deemed to have given prior written consent to

Customer’s final integration, test and delivery of the Products.   In no event shall Supplier incur any

obligation to repair or replace Products which are determined by Supplier, in

its sole discretion, to be defective due to Customer or third party misuse, use

of unauthorized repair parts or unauthorized third-party service, or because of

a use not in accordance with specific Supplier operation and maintenance

instructions.

 

* Confidential Treatment Requested

 

Attachment 2, Page 2

 

 

 

5.              Schedule

 

Supplier shall manufacture and assemble the Systems pursuant to the

Customer’s approved MPS.  Customer will

provide updated schedules to Supplier from time to time.  Schedule changes made with less than four

(4) weeks notice may result in additional charges.

 

6.              Wind

down of Assembly Services

 

a.

            Termination for Cause

Procedure - Upon termination for cause of the Assembly Services required

under this SOW by either party the following shall occur:

i.                 Supplier

will cease all work being performed under this SOW.

ii.             Supplier

will deliver to Customer all finished Product, work in process, and raw

materials and take all reasonable measures to protect Customer’s property in

Supplier’s possession.

iii.         Each

party shall retain rights to intellectual property such party brought to this

Agreement and each party shall be bound by all confidentiality, intellectual

property, warranty and indemnity obligations in accordance with the terms and

conditions of this Agreement.

iv.            Customer

will pay Supplier for Assembly Services performed and for all Assembly Services

performed in accordance with this SOW and for reasonable and necessary expenses

which have accrued to the date of termination less any amounts previously paid.

b.

            Termination Procedure

at End of Agreement Term- Upon termination of this SOW other than for cause

the following shall occur:

i.

              No later than 30

days from the effective date of the termination Customer shall provide Supplier

with a Notice of Termination including:

1.              The

effective termination date.

2.              A

transition plan including but not limited to details of  (1) the transfer of all finished Product,

work in process, raw materials, records, data and other information owned by

Customer and used by Supplier in providing Assembly Services and (2) for all

other activities required by Customer related to the termination of this

SOW.  The transition plan shall also

include a reasonable schedule for these activities.

ii.             According

to the schedule in the transition plan, Supplier will cease all work being

performed under this SOW.

iii.

      Supplier will take all

reasonable measures to protect Customer’s property in Supplier’s possession.

iv.            Each party shall

retain rights to intellectual property such party used in conjunction Assembly

Services and each party shall be bound by all confidentiality, intellectual

property, warranty and indemnity obligations in accordance with the terms and

conditions of this Agreement.

v.                Supplier will have

no obligation to train a third party to provide Assembly Services to Customer.

vi.            Customer will pay

Supplier for Assembly Services performed and for all Assembly Services

performed in accordance with this SOW, for reasonable and necessary expenses

which have accrued to the date of termination, less any amounts previously

paid, plus any costs incurred by Supplier’s in implementation of the transition

plan.

c.

            Termination for

Convenience Procedure- Upon termination of this SOW for the convenience of

the TSA, the following shall occur:

 

Attachment 2, Page 3

 

 

i.                 The  Customer shall provide Supplier with a

Notice of Termination including:

1.              The

effective termination date.

2.              A

transition plan including but not limited to details of  (1) the transfer of all finished Product, work

in process, raw materials, records, data and other information owned by

Customer and used by Supplier in providing Assembly Services and (2) for all

other activities required by Customer related to the termination of this SOW.  The transition plan shall also include a

reasonable schedule for these activities.

ii.             Supplier

will immediately cease all work being performed under this SOW, except for work

specified in the transition plan required by Customer to terminate this SOW.

iii.         Supplier will take all

reasonable measures to protect Customer’s property in Supplier’s possession.

iv.            Each party shall

retain rights to intellectual property such party used in conjunction Assembly

Services and each party shall be bound by all confidentiality, intellectual property,

warranty and indemnity obligations in accordance with the terms and conditions

of this Agreement.

v.                Supplier will have

no obligation to train a third party to provide Assembly Services to Customer.

vi.            Customer will pay

Supplier for Assembly Services performed and for all Assembly Services

performed in accordance with this SOW, for reasonable and necessary expenses

which have accrued to the date of termination, less any amounts previously

paid, plus any costs incurred by Supplier’s in implementation of the transition

plan.

 

 

Attachment 2, Page 4

 

ATTACHMENT

3

COMPONENTS

SUPPLIER

STATEMENT

OF WORK

TO

AGREEMENT

FOR SERVICES

 

This Statement of Work attached hereto is made a part of that certain

Agreement for Services (“Agreement”), by and between CoorsTek, Inc.,

(“Supplier”) and InVision Technologies (“Customer”).

 

1.  Terms

and Conditions of Sale for Components (Exhibit A to Attachment 3).

 

 

ATTACHMENT

4

SPARES

SUPPLIER

STATEMENT

OF WORK

TO

AGREEMENT

FOR SERVICES

 

Intentionally

left blank

 

 

ATTACHMENT

5

NONDISCLOSURE

AGREEMENT

 

 

NONDISCLOSURE AGREEMENT

 

THIS AGREEMENT, made effective as of the 8TH day of January,

2002 by and between InVision Technologies, Inc., a Delaware corporation,

(hereinafter the “Company”) and 

CoorsTek  (hereinafter the

“Receiving Party”), to assure the protection and preservation of the

confidential and proprietary information made available by the Company to the

Receiving Party.

 

WHEREAS, the parties desire to assure the confidential status of the

information which may be disclosed by the Company to the Receiving Party;

 

NOW THEREFORE, in reliance upon and in consideration of the following

undertaking, the parties agree as follows:

 

1.             Subject to the limitations set forth in

Paragraph 2, all information disclosed by the Company to the Receiving Party

shall be deemed to be “Proprietary Information”. In particular, Proprietary

Information shall be deemed to include any information, process, technique,

algorithm, program, design, drawing, formula or test data relating to any

research project, work in process, future development, engineering,

manufacturing, marketing, servicing, financing or personnel matter relating to

the Company, its present or future products, sales, suppliers, customers,

employees, investors, or business, whether or oral, written, graphic or

electronic form.

 

2.             The term “Proprietary Information” shall

not be deemed to include information which the Receiving Party can demonstrate

by competent written proof: (i) is now, or hereafter becomes, through no act or

failure to act on the part of the Receiving Party, generally known or

available; (ii) is known by the Receiving Party at the time of receiving such

information as evidenced by its records: (iii) is hereafter furnished to the

Receiving Party by a third party, as a matter of right and without restriction

on disclosure; or (iv) is the subject of a written permission to disclose

provided by the Company.

 

3.             The Receiving Party shall maintain in

trust and confidence and not disclose to any third party or use for any

unauthorized purpose any Proprietary Information received from the Company. The

Receiving Party may use such Proprietary Information only to the extent  required to accomplish the purposes of this

Agreement. The Receiving Party shall not use Proprietary Information for any

purpose or in any manner which would constitute a violation of any laws or

regulations, including without limitation the export control laws of the United

States. No other rights of licenses to trademarks, inventions, copyrights, or

patents are implied or granted under this Agreement.

 

4.             Proprietary Information supplied shall

not be reproduced in any form except as required to accomplish the intent of

this Agreement.

 

 

5.             The Receiving Party represents and

warrants that it shall protect the Proprietary Information received with at

least the same degree of care used to protect its own Proprietary Information

from unauthorized use or disclosure. The Receiving Party shall advise its

employees

 

or agents who

might have access to such Proprietary Information of the confidential nature

thereof and shall obtain from each of such employees and agents an agreement to

abide by the terms of this Agreement. The Receiving Party shall not disclose

any Proprietary Information to any officer, employee or agent who does not have

a need for such information.

 

6.             All Proprietary Information (including

all copies thereof) shall remain the property of the Company, and shall be

returned to the Company after Receiving Party’s need for it has expired, or

upon request of the Company, and in any event, upon completion or termination

of this Agreement.

 

7.             Notwithstanding any other provision of

this Agreement, disclosure of Proprietary Information shall not be precluded if

such disclosure:

 

(a)  is in

response to a valid order of a court or other governmental body of the United

States or any political subdivision thereof; provided, however, that the

responding party shall first have given notice to the other party hereto and

shall have made a reasonable effort to obtain a protective order requiring that

the Proprietary Information so disclosed be used only for the purpose for which

the order was issued;

 

(b)  is

otherwise required by law; or

 

(c)  is

otherwise necessary to establish rights or enforce obligations under this

Agreement, but only to the extent that any such disclosure is necessary.

 

8.             This Agreement shall continue in full

force and effect for so long as the Receiving Party continues to receive

Proprietary Information. This Agreement may be terminated at any time upon

thirty (30) days written notice to the other party. The termination of the

Agreement shall not relieve the Receiving Party of the obligations imposed by

Paragraphs 3, 4, 5 and 12 of this Agreement with respect to Proprietary Information

disclosed prior to the effective date of such termination and the provisions of

these Paragraphs shall survive the termination of this Agreement for a period

of five (5) years from the date of such termination.

 

9.             The Receiving Party agrees to indemnify

the Company for any loss or damage suffered as a result of any, breach by the

Receiving Party of the terms of this Agreement, including any reasonable fees

incurred by the Company in the collection of such indemnity.

 

10.          This Agreement shall be governed by the

laws of the State of California as those laws are applied to contracts entered

into and to be performed entirely in California by California residents.

 

11.          This Agreement contains the final,

complete and exclusive agreement of the parties relative to the subject matter

hereof and may not be changed, modified, amended or supplemented except by a

written instrument signed by both parties.

 

Attachment 5, Page 2

 

12.          Each party hereby acknowledges and agrees

that in the event of any breach of this Agreement by the Receiving Party,

including, without limitation, an actual or threatened disclosure of

Proprietary Information without the prior express written consent of the

Company, the Company will suffer an irreparable injury, such that no remedy at

law will afford it adequate protection against, or appropriate compensation

for, such injury. Accordingly, each party hereby

 

agrees that the

Company shall be entitled to specific performance of the Receiving Party’s

obligations under this Agreement, as well as such further injunctive relief as

may be granted by a court of competent jurisdiction.

 

	

  AGREED TO:

  	

   

  	

  AGREED TO:

  
	

   

  	

   

  	

   

  
	

  InVision Technologies

  	

   

  	

  CoorsTek

  
	

  7151 Gateway Blvd.

  	

   

  	

  16000 Table Mountain Pkwy.

  
	

  Newark, CA 

  94560

  	

   

  	

  Golden, CO.

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ ERIC HURST

  	

   

  	

  By:

  	

  /s/ JOHN GHINAZNI

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name: 

  	

  ERIC HURST

  	

   

  	

  Name: 

  	

  John Ghinazni

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Title: 

  	

  Program Manager

  	

   

  	

  Title: 

  	

  Director

  
									

 

Attachment 5, Page 3

 

ATTACHMENT 6

BUSINESS STRUCTURE

AND MATERIALS MANAGEMENT OVERVIEW

 

[...***...]

 

[...***...]

 

 

*Confidential

Treatment Requested

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