Document:

Exhibit 10.23

[***] — Certain information in
this exhibit have been omitted and filed separately with the Securities and
Exchange Commission.  Confidential
treatment has been requested with respect to the omitted portions.

DISTRIBUTION
AGREEMENT

THIS AGREEMENT made and
entered into effective as of November 1, 2004 (the “Effective  Date”),
by and between ARKRAY Global Business, Inc., a Japanese corporation with its
principal office at 57 Nishi Aketa-cho, Higashikujo, Minami-ku, Kyoto 601-8045,
Japan (hereinafter referred to as “AGB”) and HESKA Corporation, a Delaware
corporation with its principal office at 1613 Prospect Parkway, Fort Collins,
Colorado 80525, U.S.A. (hereinafter referred to as “HESKA”),

WITNESSETH

WHEREAS, HESKA and
ARKRAY, Inc., a parent company of AGB, are the parties to the distribution
agreement made and entered into effective as of February 16, 2001;

WHEREAS, effective
November 1, 2001, ARKRAY, Inc. has assigned and transferred to AGB, and AGB has
accepted from ARKRAY, Inc. all of ARKRAY, Inc.’s rights and obligations under
the said distribution agreement with prior written consent of HESKA (the
distribution agreement so assigned and transferred is hereinafter referred to
as the “Current Agreement”); and

WHEREAS, in the absence
of 180 day prior written notice not to renew the Current Agreement, (1) the
Current Agreement has been automatically renewed for an additional period of
one year from February 16, 2004, and (2) the Current Agreement so renewed is to
be further renewed for an additional period of one year from February 16, 2005
but AGB and HESKA desire to terminate the Current Agreement on October 31, 2004
and enter into a new distribution agreement effective as of November 1, 2004.

NOW, THEREFORE, in
consideration of the foregoing premises and of the mutual covenants herein
contained, the parties hereby agree as follows:

ARTICLE I

AGB hereby appoints HESKA
as its exclusive distributor to promote, market, service and sell the Products
(hereinafter defined) in the Field of the Territory (hereinafter respectively
defined) from the Effective Date of this Agreement, and HESKA accepts such
appointment,

subject to and in
accordance with the following terms and conditions. AGB and HESKA acknowledge
and agree that the Current Agreement shall terminate and cease to be valid any
further upon this Agreement becoming effective.

1.1 Products

The Products means those
products manufactured by or for the ARKRAY group of companies, and listed on Attachment
1 (hereinafter referred to as the “Products”), along with all related spare
parts necessary to support those products. The Attachment 1 can be
amended as needed in the future by mutual written agreement of both parties.

1.2 Branding

AGB and HESKA agree that
the brand name of the Products and its logotype shall be a combination of “ARKRAY’
and “HESKA” in a format to be mutually agreed upon by the parties hereto.

1.3 Distribution Right

HESKA shall have
an exclusive right to promote, market, sell and distribute the Products, with
the right to appoint sub-distributors, only in the veterinary market
(hereinafter referred to as the “Field”) of North America, i.e. USA and Canada
(hereinafter referred to as the “Territory”). The exclusivity referred to in
this Agreement applies between HESKA and AGB, AGB’s affiliates and
AGB-appointed distributors. Except as expressly provided in this Article 1, no
right, title or interest is granted, whether express or implied, by AGB to
HESKA, and nothing in this Agreement shall be deemed to grant to HESKA any
right to any products other than the Products.

HESKA agrees that,
during the term of this Agreement, (a) HESKA shall not make commercially
available a product(s) with features identical to the Products, (b) HESKA shall
not handle or otherwise provide any “off-brand” and/or “generic” form of
consumables, test strips or reagents for use with any instrument Product,
PROVIDED, HOWEVER, this paragraph shall not apply to common laboratory transfer
pipettes, common QC serum materials and primary blood collection tubes that fit
commercially available external centrifuges.

1.4 Sales Responsibility

HESKA assumes all sales
responsibilities for the Products to be sold under this Agreement. “Sales
Responsibilities” as used herein includes all sales force training,
maintenance and support activities, warranty repair service as contemplated at
Section 2.1 below as well as advertising, promotion, and demonstration. AGB
will provide HESKA with all drawings,

specifications,
test procedures, manuals, information and demonstration materials, but only to
the extent that they are reasonably necessary for HESKA to fulfill its Sales
Responsibilities. AGB will also provide HESKA with test data and results,
performance studies, and other materials as needed to obtain regulatory
clearance to market all Products in the Field of the Territory.

1.5 Relationship of
Parties

Each party shall be
considered an independent contractor of the other party. Nothing in this
Agreement shall be construed as establishing a joint venture or partnership or
principal/agent or employer/employee relationship. No party is authorized to
make any statement, claim, representation or warranty or to act on behalf of
the other party with respect to any of the provisions of this Agreement, except
as provided for herein or as specifically authorized in writing by the other
party.

1.6 Term

Unless terminated earlier
as set forth in Section 1.7, this Agreement shall continue to be in full force
and effect for a period of three (3) years from the Effective Date first
hereinabove written.

1.7 Termination

1.7.1 Either party may
terminate this Agreement by a written notice to the other party at any time in
the event that the other party shall have been in breach of any of the
provisions of this Agreement and such breach shall have continued for sixty
(60) days (ten (10) days in the case of breach of payment terms) after receipt
of written notice of the breach from the non-breaching party.

1.7.2 Either party may
terminate this Agreement without any notice to the other party if the other
party (1) is declared insolvent or bankrupt, or proceedings for commencement of
civil rehabilitation, company reorganization or other similar procedure are
made against it in a court of competent jurisdiction or (2) enters into
liquidation whether compulsorily or voluntarily; or compounds or makes any
arrangements with its creditor or has a receiver, manager or administrator
appointed in respect of all or any part of its assets.

1.7.3 Either party may
terminate this Agreement by a written notice to the other party at any time in
the event of any sale to a competitor of the other party’s veterinary blood
chemistry business pertaining to this Agreement occurs, whether by sale of
assets or divisions, merger or otherwise.

1.8 Effect of Termination

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Exchange Commission.  Confidential
treatment has been requested with respect to the omitted portions.

1.8.1 Upon
termination of this Agreement, the terminating party may (but has no obligation
to) cancel any and all outstanding orders pending hereunder.

1.8.2 In the event of
termination by HESKA, HESKA will have the right to return any instrument
Products in-transit from AGB to HESKA as well as in its possession in unused or
unpacked condition to AGB, at AGB’s expense for return freight, for a full
refund of the purchase price paid for such Products by HESKA to AGB.

1.8.3 In the event of
termination by AGB, at the option of AGB, either AGB will have the right to
repurchase any instrument Products in HESKA’s possession in unused or unpacked
condition, at HESKA’s expense for return freight, for a full refund of the
purchase price paid for such Products by HESKA to AGB or HESKA shall pay for
any and all Products in process, in inventory, and/or in-transit to HESKA and,
when applicable, the deficient number of the instrument Products provided for
at Section 3.2 and shall take delivery of those Products as soon as demanded by
AGB; provided, that HESKA is allowed to distribute such purchased Products in
the Field in the Territory for six (6) month after such termination. Unless
otherwise provided herein, each party waives any claims for compensation or
damages in connection with such cancellation of outstanding orders from the
other party.

ARTICLE II

2.1 Warranty and Quality

AGB warrants that the
Products sold hereunder shall be free and clear of any and all liens,
encumbrances or defects in title and shall be conveyed to HESKA with lawful and
marketable title. AGB further warrants that the Products shall satisfy the
performance specifications set forth in Attachments 1 and 2. AGB will
not make any changes to the Products without first (i) notifying HESKA in
writing at least ninety (90) days in advance of such changes, (ii) providing HESKA
with satisfactory evidence that such changes do not alter the performance
specifications of any Product or necessitate further regulatory filings for any
Product, and (iii) obtaining HESKA’S consent in writing. AGB shall input normal
reference ranges for animals supplied by HESKA in writing into the instrument
Products without modification by AGB.

The instrument Products
are warranted by AGB to be free from defects in materials and workmanship for a
period of twelve (12) months from the date of shipment from AGB to HESKA, and
the test strip Products are warranted for a period of their remaining shelf
lives, provided, however, AGB shall not ship test strip Products whose
remaining shelf lives are less [***] at the time of shipment. AGB will use good
faith efforts to provide the longest possible shelf life in excess of the
minimum requirement of [***]. During the warranty period, AGB will promptly
provide HESKA with all necessary warranty repair parts to have the
non-conforming Products repaired by HESKA, or replacement of the non-conforming
Products at no cost.  AGB’s

warranty obligation under
this Section 2.1 is limited to the timely supply of free repair parts or free
replacement of the non-conforming Products.

In the event that HESKA
determines that any shipment of the Products fails to conform to their
performance specifications set forth in Attachments 1 and 2, HESKA shall
promptly notify AGB and reasonably specify the manner in which the Products
fail to conform. AGB shall have the right to make its own inspection and
evaluation of the allegedly non-conforming Products and shall notify HESKA,
within twenty one (21) days after receipt of such information, including
samples of the allegedly non-conforming Products from HESKA, whether it has
confirmed and accepted HESKA’S claim that the Products are non-conforming.

If AGB determines and
confirms that the Products are non-conforming, AGB shall replace, at no cost to
HESKA, the non-conforming Products at the earliest date after confirmation of
the Products non-conformance. AGB shall also bear the freight charges for
return of all non-conforming Products to AGB from HESKA.

If, after evaluating the
allegedly non-conforming Products, AGB believes that the Products in question
are conforming, AGB shall supply HESKA with its written findings and request
HESKA to submit additional samples of the Products to an independent third
party, acceptable to both parties, for testing in accordance with and against
the performance specifications set forth in Attachments 1 and 2. The
decision of such third party shall be final with respect to the alleged
non-conforming Products and binding on both parties to this Agreement.

If the decision of the
third party is that the Products are non-conforming, AGB shall pay the return
freight with respect to the Products shipped to HESKA as well as all costs and
expenses relating to the testing of the Products by the independent third
party. In addition, AGB shall supply HESKA with a Certificate of Destruction
certifying that the non-conforming Products returned by HESKA have been
destroyed in an environmentally safe manner.

If the decision of the
third party is that the Products conform to the performance specifications set
forth in Attachments 1 and 2, HESKA shall accept the Products and shall
be responsible for the return freight and all costs and expenses relating to
the testing of the Products by the independent third party.

AGB shall, at its cost,
comply and provide HESKA with certifications that the Products are in
compliance with any applicable government regulations relating to the sale of
the Products in

the Territory, and
manufacture in Japan or in China, as the case may be, including compliance with
ISO 9001 or ISO 13485 requirements. HESKA agrees to take responsibility for
timely providing AGB with such regulations in writing. AGB and HESKA shall
cooperate in meeting all regulations or requirements of, and the guidelines
published by, the U.S. Food and Drug Administration and any other applicable
U.S. governmental regulatory agencies. AGB and HESKA, in consultation, shall
use their best efforts to answer specific questions relating to quality
assurance as soon as possible upon receipt of such questions.

AGB warrants that shipping of Products is in compliance with all
applicable laws and government regulations of Japan and/or China regarding
exports.

2.2 Trademark

AGB grants HESKA a
limited non-exclusive and non-transferable license to use ARKRAY, Inc.’s and/or
AGB’S trademarks and brand names set forth in Attachment 3 for the
specific purpose of performing its obligations hereunder. Except as specified
in this Section 2.2 and Section 1.2, no party hereto will derive any legal
rights to the other party’s trademarks and brand names by use thereof. No party
hereto shall adopt, use or register in any country, without the prior written
consent of the other party, any trademarks and brand names which are likely to
be confused with a trademark(s) and brand names of the other party.

2.3 Recall

If any governmental or
regulatory authority having jurisdiction over the Products requires AGB or
HESKA to recall any Products, such party shall immediately give a notice to the
other party of such requirement and all particulars thereof and review with the
other party the proposed manner in which the recall is to be carried out, it
being the intention of the parties that the cost, expenses and liabilities
associated with any such recall shall be borne by the party that caused the
recall. The party responsible for carrying out the recall shall do so in as
expeditious a manner as possible and in such a way as to cause the least
disruption to the sale of the Products and to preserve the goodwill attached to
the Products and each party.

2.4 Spare Parts, Consumables and Test Strips

Notwithstanding any
provision of this Agreement to the contrary, AGB will continue to furnish for
five (5) years after the termination or expiration of this Agreement the spare
parts, consumables and test strip Products for exclusive use with the
instrument Products at their prices as of the termination date; provided, that
such prices can be adjusted once a year equal to the percentage increase in the
U.S. Consumer Price Index. For purposes of this Agreement, U.S. Consumer Price
Index means the U.S. Consumer Price Index, All Urban Consumers

(CPI-U). U.S. City
Average for all Items, 1982-84=100.

2.5 Patents

AGB warrants and
represents to HESKA that to the best of its actual knowledge, and as of the
Effective Date of this Agreement, neither the Products covered by this
Agreement nor their manufacture, use, rental, importation or sale will infringe
upon any issued patent or other proprietary rights held by a third party.

AGB shall, in
consultation with HESKA, defend, indemnify and hold HESKA and its subsidiary or
affiliated companies, and customers thereof, harmless from any costs, damages,
loss, expense, claims, judgments or settlements including without limitation
reasonable attorney’s fees and investigation costs, with respect to any and all
claims that the manufacture, use, rental, importation or sale of any Products
covered by this Agreement infringes upon any patent or other proprietary rights
of a third party.

ARTICLE III

3.1 Orders and Forecast

HESKA agrees and
acknowledges that each order for the instrument Products shall be in multiples
of five (5) units, and each order for the test strip Products shall be in
multiples of one hundred (100) boxes. On or around the Effective Date of this
Agreement, HESKA shall submit a firm purchase order for the Products covering
its requirement for the first five (5) months. Thereafter, HESKA shall submit
periodically purchase orders by the end of each calendar quarter as needed in
the form agreed to by both parties, the terms and conditions of which shall be
applicable hereto to the extent they are not inconsistent with the provisions
of this Agreement. AGB will immediately confirm the receipt of each purchase
order from HESKA so that HESKA has assurance that each purchase order is duly
received by AGB. Such purchase orders shall not bind AGB unless or until
accepted by AGB. AGB shall notify HESKA of its decision on acceptance within
ten (10) days after receipt of a purchase order.

HESKA shall provide AGB,
on a quarterly basis by the end of each calendar quarter, with a non-binding
rolling one (1) year forecast of its anticipated purchases of the Products. AGB
shall keep HESKA notified immediately of any events that may significantly
impact AGB’S
ability to deliver the Products, such as interruptions by suppliers, labor
troubles, discovered defects, and the like.

3.2 Minimum Purchase Requirement for Instrument Product

During the effective term
of this Agreement, HESKA guarantees to purchase from AGB and

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Exchange Commission.  Confidential
treatment has been requested with respect to the omitted portions.

to take delivery of the instrument Products in the following annual
minimum purchase quantity:

(l) The 1st Contract Year: [***] units

(2) The annual
minimum purchase quantity for the 2nd and 3rd Contract Year shall be [***] units each
unless AGB and HESKA mutually agree to a different minimum purchase quantity at
least ninety (90) days prior to the beginning of the 2nd and 3rd Contract Year. If, during any Contract
Year, HESKA failed to purchase and to take delivery of the instrument Products
in the annual minimum purchase quantity applicable to that Contract Year, it is
the intent of the parties hereto that HESKA shall pay for and take delivery of
the deficient number of the instrument Products upon demand from AGB.

For the purpose of
this Section 3.2,

(a)   “Contract
Year” shall mean any one (1) year period commencing on the Effective Date or
any anniversary thereof, and

(b)   The
instrument Product is considered purchased when the payment therefore has
actually been received by AGB in full; and

(c)   HESKA shall be deemed to have satisfied its
obligation to purchase and take delivery of the annual minimum purchase
quantity of the Products that are accepted by AGB and paid by HESKA during any
applicable Contract Year for which AGB fails to make timely production or
delivery.

3.3 Pricing

AGB will sell the
Products to HESKA in accordance with the prices set forth on Attachment 1.
The Product pricing is fixed until the first anniversary of the Effective Date
of this Agreement. Thereafter, upon thirty (30) day’s prior written notice from
one party to the other, the parties agree to discuss in good faith any
adjustment to the prices of the Products in an attempt to reach a mutually
satisfactory agreement. If a mutually satisfactory agreement cannot be reached,
the prices of the Products then in effect shall remain applicable.

3.4 Shipping of Products

AGB agrees to ship
to HESKA the instrument Products and the test strip Products within ninety (90)
days of its acceptance of HESKA’S purchase orders. In the event of its
inability to make a complete shipment as accepted by AGB, AGB shall notify
HESKA immediately of the possible shipping date. Both parties shall discuss and
amicably agree to adjust the shipping date if AGB’S shipping date causes HESKA
any inconvenience.

3.5 Payment Terms

HESKA shall pay for all
the Products ordered with AGB by telegraphic transfer (“T/T”) in

advance of the contracted shipment date. Such T/T
shall be made at least two (2) weeks before the contracted shipment date,
PROVIDED, THAT, HESKA receives a timely firm shipment date in writing from AGB.
AGB shall periodically review HESKA’S financial condition and consider in good
faith whether any revision of payment terms is possible or not.

3.6 Labeling and
Packaging

The test strip Products
shall be labeled as illustrated on Attachment 4 attached hereto. The
Products shall be packaged and shipped to HESKA in accordance with AGB’S
quality standards. If changes need to be made to labels or packaging in order
to comply with legal or regulatory requirements, HESKA shall cooperate fully
with AGB to comply with those requirements as quickly as possible.

3.7 Freight/Insurance

AGB, at its option, will
ship the Products ordered by HESKA under the terms of FCA Osaka, Kobe and/or
Shanghai, China as defined in Incoterms 2000. HESKA shall be responsible for
payment of all air and/or sea freight, insurance, duties and tariffs for
shipments of the Products to HESKA.

ARTICLE IV

4.1 Report

HESKA shall make periodic
reports on a quarterly basis to AGB on its inventory, sales activities and
sales promotion plans for the Products, and the market conditions including
information on the competitive products.

4.2 Approvals

HESKA and AGB shall exercise reasonable efforts to
obtain all government licenses or approvals required for the marketing, sales
or use of the Products in the Field of the Territory. All Products
registrations, if required, are in the name of AGB unless otherwise agreed by
both parties. If registrations in HESKA’s name are required by law, all
registrations are to be assigned or transferred to AGB, to the extent permitted
by law, at AGB’s expense, upon termination of this Agreement.

AGB will pay personnel, consulting,
data collection costs and other expenses incurred in connection with the
preparation and filing of all applications hereunder. AGB shall also have
financial responsibility for government licenses and approvals, which shall
apply to both the initial list of the Products on Attachment 1, as well
as to any changes to such Products. Similarly, whenever because of changes in
regulatory agencies or regulations or in the

Products, any additional
or different requirements are imposed regarding the marketing, sales or use of
any Products, AGB and HESKA shall exercise their reasonable best efforts to
comply, at AGB’s expense, with all new requirements regarding the marketing,
sales or use of Products.

4.3 Confidentiality

(a)     “Confidential
Information” means any technical, manufacturing, business and marketing
information, including, without limitation, patent applications, patent
disclosure, data, inventions, concepts, ideas, structures, formulas,
techniques, processes, apparatus, know-how and customer information, disclosed
after the Effective Date of this Agreement orally or in tangible form such as
documents, memoranda, reports, correspondence, machine readable tapes or disks
drawings, notes or other media.

(b)     The party
receiving information (“Receiving Party”) agrees that the party
disclosing (“Disclosing Party”) is the owner of the Confidential
Information and that the Receiving Party will not use any Confidential
Information for any purpose except for the performance of this Agreement. Each
Receiving Party agrees not to disclose any Confidential Information to any
third party or to employees of the Receiving Party, except to those employees
who are required to have the Confidential Information in order to be engaged in
the execution of this Agreement. Receiving Party’s obligations with regard to
the confidentiality and nonuse of such Confidential Information shall not
extend to any information that:

(1)                  was
in the public domain at the time it was disclosed or becomes part of public
domain after disclosure, including, without limitation, disclosure in a U.S. or
foreign patent or disclosure in a printed publication which is generally
available to the public, or through the sale of the Product embodying the same
to the extent that such confidentiality is ascertainable from such Product; or

(2)                  was
known to the Receiving Party at the time of its disclosure or becomes known to
the party without breach of this Agreement, provided that the Receiving Party
shall have the burden of proving such knowledge: or

(3)                  is independently
developed by the persons of the Receiving Party without use of the Confidential
Information; or

(4)                  is disclosed by
a Disclosing Party to a third party without restrictions on such third party’s
rights to disclose or use the same; or

(5)                  is disclosed by
the Disclosing Party pursuant to statute, regulation, judicial order, a
requirement of an agency or by operation of law, provided that, in the case of
a judicial order or the order of an agency, the Receiving Party shall (i) give
the Disclosing party prompt notice of any such possible disclosure of
Confidential Information and (ii) permit the Disclosing

Party, at its expense, to take all reasonable measures
to prevent or limit the scope of such disclosure and/or to obtain protective
orders relating to the confidentiality of such Confidential Information; or

(6)                  is approved for
release upon the Disclosing Party’s prior written consent; or

(7)                  is disclosed by
the Disclosing Party to the Receiving Party after written notification is given
by the Receiving Party to the Disclosing Party that it will not accept any
further Confidential Information.

(c)     Each Receiving Party agrees that it shall
take all reasonable measures to protect the secrecy and avoid unauthorized use
of the Confidential Information and that any disclosure of the information
within the Receiving Party will only be such as is reasonably necessary for the
purposes contemplated by this Agreement. Each Receiving Party shall immediately
notify the Disclosing Party in the event of any unauthorized use or disclosure
of the Confidential Information.

(d)     Any disclosures made after the Effective
Date of this Agreement shall be governed exclusively by the provisions of this
Section 4.3 and not by the parties’ existing Confidential Disclosure Agreement—Bilateral
signed by ARKRAY on November 17, 2000. This Section 4.3 shall survive for five
(5) years following termination of this Agreement.

4.4 Product Liability
Insurance

Each party shall maintain
product liability insurance in the amount of One Million Dollars ($1,000,000).
Each party agrees that it shall provide the other party with at least thirty
(30) days’ prior written notice of any cancellation or change of limits or
terms of such policy and similarly the certificate and policy shall contain an
endorsement that such insurance may not be cancelled or modified except upon
thirty (30) days’ prior written notice to the other party.

4.5 Product and General
Liability Indemnification

Each party agrees that it
will defend, indemnify and hold harmless the other party from and against all
costs, damages, loss, expense (including reasonable attorney’s fees and
investigation costs), claims by or judgments or settlements in favor of third
parties for bodily injury, property damage, or any other damage or injury
caused or alleged to have been caused by defects of products it supplies.
Furthermore, each party agrees that it shall defend, indemnify and hold the
other party harmless from all costs, damages, loss, expense (including
reasonable attorney’s fees and investigation costs), or any other damage caused
by, arising out of, or resulting from (i) such party’s failure of performance
of any of the terms of this Agreement; (ii) such party’s failure to comply with
any and all laws (statutory and common) and regulations applicable to such
performance; or (iii) any governmental or regulatory investigation of it or its
products.

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separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

Each party agrees to give
the other party prompt notice in writing of the institution of any suit or
investigation, or any claims made by a third party, including any claims
asserted or made by any governmental authority having jurisdiction over the
parties or any Product. AGB and HESKA agree to cooperate with each other in the
defense of such suits or claims and to provide all necessary information to
enable the defending party to carry on the defense of such suit or any appeal
from a judgment or decree rendered therein.

4.6 Force Majeure

Except with respect to
the indemnification obligations provided for in Section 4.5, no party shall be
liable to the other party in any manner for failure or delay to fulfill all or
part of this Agreement, directly or indirectly, owing to acts of God,
governmental orders or restrictions, war, threat of war, warlike conditions,
hostilities, sanctions, mobilization, blockade, embargo, detention, revolution,
riot, looting, strike, lockout, shortage of power or raw material, other labor
troubles, fire, typhoon, earthquake, or lightning, epidemic or accident of any
other causes or circumstances beyond its control.

4.7 Notices

Any notice required or
permitted to be given hereunder shall be given in writing and be properly given
if served personally by the party giving notice or if sent by such party by
prepaid registered or recorded delivery letter, by fax (simultaneously
confirmed by prepaid registered or recorded delivery letter) to the address of
the other party specified hereunder. Any notice personally delivered to the
appropriate address shall be deemed to have been given on the date of its
delivery and any notice sent by prepaid registered or recorded delivery post
shall be deemed to have been given on the seventh day following the posting of
the same and any notice given by fax shall be deemed to have been given on the
day which it is transmitted.

	
  If to AGB

  	
  If to HESKA:

  
	
  57 Nishi
  Aketa-cho

  	
  1613 Prospect
  Parkway

  
	
  Higashi-kujo,
  Minami-ku

  	
  Fort Collins,
  Colorado 80525

  
	
  Kyoto 601-8045,
  Japan

  	
  USA

  
	
  (Fax): [***]

  	
  (Fax): [***]

  
	
  Attention:
  Shigeru Doi 

  President &
  CEO

  	
  Attention:
  Robert Grieve 

  Chief Executive
  Officer

  

 

4.8 Publicity

Neither party shall
announce or disclose the existence of this Agreement or its terms and
conditions, or advertise or release any publicity regarding this Agreement
without the prior

written consent of the
other party, except as required by law, rule, or regulation. AGB understands
and agrees that HESKA may be required to disclose and file this Agreement with
the U.S. Securities and Exchange Commission and that such filings are publicly
available. HESKA will be obligated to disclose the information within the
limits of the range required by law, rule or regulation.

4.9 Assignability

This Agreement and the
rights and obligations hereunder shall not be assigned or transferred to any
third party by either party except (i) with the prior written approval of the
other party or (ii) subject to Section 1.7, in connection with a sale of its
business pertaining to this Agreement, whether by sale of assets or divisions,
merger or otherwise.

4.10 Waivers

No delay or omission in
the exercise of any right or remedy of any party or any default by another
shall impair any right or remedy otherwise available nor shall it be construed
as a waiver of any right or remedy. Any waiver by any party of any default must
be in writing and shall not be a waiver of any other default concerning the
same or any other provision.

4.11 Entire Agreement

This Agreement contains
the entire understanding of the parties with respect to the subject matter
hereof. All express or implied agreements and understandings, either oral or
written, heretofore made including the Current Agreement recited herein above
are expressly superseded by this Agreement. This Agreement may be modified only
by written agreement duly executed by the parties.

4.12 Law of Contract
Jurisdiction

This Agreement shall be
governed by and construed under the laws of Japan. AGB represents and warrants
that the provisions of this Agreement are enforceable under such laws. The
English language employed herein shall be controlling and this Agreement shall
be deemed to have been executed at Osaka, Japan.

4.13 Arbitration

All disputes,
controversies or differences which may arise between the parties, out of or in
relation to or in connection with the present contract shall be finally settled
by arbitration. The arbitration shall be held in Denver in English under the
Rules of Arbitration of the

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

International Chamber of
Commerce by one or more arbitrators appointed in accordance with the said Rules
if initiated by AGB, and shall be held in Kyoto or Osaka in English in
accordance with the Commercial Arbitration Rules of The Japan Commercial
Arbitration Association by one or more arbitrators appointed in accordance with
these rules if initiated by HESKA. The award rendered by the arbitrator(s)
shall be final and binding upon the parties hereto.

4.14 Survival

The termination or
expiration of this Agreement for any reason whatsoever shall not release either
party from any liability, obligation or agreement which is provided to be
performed after the termination or expiration of this Agreement, and the
provisions of Sections 1.8, 2.1, 2.3, 2.4, 2.5, 4.3, 4.5, 4.7, 4.13 and 4.14
shall survive termination of this Agreement.

4.15 Effect of Headings

The headings in this Agreement are included for
purposes of convenience only and shall not affect the construction or
interpretation of its provisions.

4.16 Execution in Counterparts

This Agreement may
be executed in two (2) counterparts, each of which shall be deemed an original
but all of which together shall be deemed for all purposes one and the same
instrument.

IN WITNESS WHEREOF, the parties
have caused this Agreement to be executed by their authorized representatives
as of the Effective Date first herein above written.

	
  ARKRAY Global Business, Inc.

  	
  HESKA Corporation

  
	
   

  	
   

  
	
  By:

  	
  [***]

  	
   

  	
  By: 

  	
  /s/ JASON NAPOLITANO

  
	
  [***]

  	
   

  	
  Jason Napolitano

  
	
   

  	
   

  	
   

  
	
  Title: Mgr., Int’l Communication

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  April 19, 2005

  	
   

  	
  Date:

  	
  May 5, 2005

  
							

 

Attachment 1

Products
&

Price List

PL2004-11

ARKRAY  (logo)

Date: November 01, 2004

Distributor:

Heska
Corporation

1613 Prospect Parkway, Fort Collins,
Colorado  80525 U.S.A.  

Phone 970-493-7272

Territory:

North
America

(i.e. United States of America and Canada)

Payment
Terms:

100% advanced payment by telegraphic
transfer (T/T)

Delivery
Terms:

FCA
Osaka/Kobe, Japan and/or Shanghai, China

Prices may be adjusted as stated
in Section 3.3.

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

Code No. 18303 / 18361

SPOTCHEM
EZ       Model : “SP-4430”

(sometimes referred to as “the instrument Products”)

Specification:

	
  Sample

  	
   

  	
  : Serum, Plasma, Whole Blood (only Hb)

  
	
  Reagent

  	
   

  	
  : SPOTCHEM II Reagent Strip

  
	
  Measurement
  Items

  	
   

  	
  : Glu, UA, T-Cho, TG, BUN, T-Bil, Ca, TP, Alb, GOT,
  GPT, LDH, CPK, Hb, Amy, GGT, ALP, Cre, HDL-C, FRA, IP, Mg,

  
	
   

  	
   

  	
  **Total Test Items = 22

  
	
   

  	
   

  	
  **Max. 9 items
  can be measured simultaneously

  
	
  Warm-Up

  	
   

  	
  : 10 minutes

  
	
  Display

  	
   

  	
  : 20 digits x 2 lines LCD (Character)

  
	
  Operation Panel

  	
   

  	
  : Sheet Key

  
	
  Calibration

  	
   

  	
  : Calibration by Magnetic Card or by Calibration Kit

  
	
  Data Storage

  	
   

  	
  : 100 Measurements

  
	
  Dimension &
  Weight

  	
   

  	
  : 338 x 203 x 167 (WDH), Approx. 5.4 kg

  

 

Including:

Thermal Printer Paper (1), Power Cord (1), AC Adapter
(1), Accessory case (1), Operating Manual (1), Warranty Card (1), Tip (10),
Cleaning Wire (1), Cleaning Set (1), Nozzle Set (1), Wrench Set (1), Centrifuge
Tube (10), Tip Waste Case (2) and Protective Cover (2)

JP¥[***]- / unit 

(FCA Kobe/Osaka, Japan and/or Shanghai, China)

***minimum
ordering unit : in multiples of five (5) units per order

 

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

SPOTCHEM II
Reagent Strips (Single Type): 

(sometimes referred to as “the test strip
Products”)

	
  CODE NO. 

  	
   

  	
  DESCRIPTION 

  	
   

  	
  @PRICE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  FCA Japan / China 

  	
   

  
	
  77341

  	
   

  	
  Glu

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77342

  	
   

  	
  UA

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77343

  	
   

  	
  T-Cho

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77344

  	
   

  	
  TG

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77345

  	
   

  	
  BUN

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77346

  	
   

  	
  T-Bil

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77347

  	
   

  	
  Ca

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77348

  	
   

  	
  T-Pro

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77349

  	
   

  	
  Alb

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77350

  	
   

  	
  GOT

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77351

  	
   

  	
  GPT

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77352

  	
   

  	
  LDH

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77353

  	
   

  	
  CPK

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77354

  	
   

  	
  Hb

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77355

  	
   

  	
  Amy

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77356

  	
   

  	
  GGT

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77357

  	
   

  	
  ALP

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77358

  	
   

  	
  Cre

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77359

  	
   

  	
  HDL-C
  Kit

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77360

  	
   

  	
  FRA

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77361

  	
   

  	
  IP

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77362

  	
   

  	
  Mg

  	
   

  	
  ¥

  	
  [***]

  	
   

  

* 25 Strips /
Box

SPOTCHEM II
Reagent Strips (Multi Type): 

(sometimes referred to as “the test strip Products”)

	
  CODE NO. 

  	
   

  	
  DESCRIPTION 

  	
   

  	
  @PRICE 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  FCA Japan / China

  	
   

  
	
  77363

  	
   

  	
  Panel-V

  	
   

  	
  ¥

  	
  [***]

  	
   

  
							

* 25 Strips /
Box

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

Optional
Consumable Accessories:

	
  CODE NO.

  	
   

  	
  DESCRIPTION

  	
   

  	
  @PRICE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  FCA Japan / 

  China

  	
   

  
	
  10067

  	
   

  	
  Thermal
  Printer Paper (For Built in Printer, 58 mm width)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10204

  	
   

  	
  Serum
  Sample Tube (100 pieces, blue cap)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10191

  	
   

  	
  Serum
  Sample Tube (500 pieces, blue cap)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10202

  	
   

  	
  Whole
  Blood Sample Tube (100 pieces, orange cap)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10192

  	
   

  	
  Whole
  Blood Sample Tube (500 pieces,
  orange cap)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10200

  	
   

  	
  Diluent
  for Hb measurement (20 mL, 50 pieces)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10206

  	
   

  	
  Pipette
  Tip for Hb Meas. (100L, 960 pieces)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10207

  	
   

  	
  Pipette
  Tip for Hb Meas. (1,000L, 960 pieces)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77041

  	
   

  	
  Calibrator
  Kit (Low and High, 2 vials each, 2 vials of dilution)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77042

  	
   

  	
  Calibrator
  Hb Kit (Calibrator and dilution for Hb meas)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  77043

  	
   

  	
  Calibration
  Check (4 pieces of lyophilized serum 3 mL)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10711

  	
   

  	
  Tip Set
  (EZ) (100 pieces)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10712

  	
   

  	
  Centrifuge
  Cup (100 pieces)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10743

  	
   

  	
  Tip Set
  (EZ) (500 pieces)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10692

  	
   

  	
  AC
  Adaptor

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10698

  	
   

  	
  Cleaning
  wire

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10208

  	
   

  	
  Cleaner
  Set (Brush, 5 cotton swabs)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10193

  	
   

  	
  Pipette
  for Solution (For 3 mL)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10194

  	
   

  	
  Pipette
  for Hb Meas (For 40mL, 200L 1 each)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10199

  	
   

  	
  Sample
  Rack (For 30 sample tubes)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10699

  	
   

  	
  Nozzle
  Set (EZ) (Replacement Nozzle, 0-ring)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10700

  	
   

  	
  Tool
  Set for Nozzle Replacement

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10701

  	
   

  	
  Waste
  Case (2 pieces)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10702

  	
   

  	
  Protective
  Cover (2 pieces)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  18204

  	
   

  	
  Portable
  Centrifuge (CF-9520)

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10703

  	
   

  	
  RS-232C,
  Connection Cable

  	
   

  	
  ¥

  	
  [***]

  	
   

  
	
  10704

  	
   

  	
  Carrying Case

  	
   

  	
  ¥

  	
  [***]

  	
   

  

 

 

Attachment 2

No.                           

FINAL INSPECTION
CRITERIA

PRODUCT: SPOTCHEM II
REAGENT STRIPS

 

	
  Established Date

  	
   

  	
  01 November, 2004

  
	
  Applicable Date

  	
   

  	
  01 March, 2005

  

 

	
  Prepared by:

  	
   

  	
  /s/ [***]

  
	
   

  	
   

  	
  [***]

  
	
  Checked
  by:

  	
   

  	
  /s/ [***]

  
	
   

  	
   

  	
  [***]

  
	
  Approved
  by:

  	
   

  	
  /s/ [***]

  
	
   

  	
   

  	
  [***]

  

 

ARKRAY Factory, Inc.

Reagent
Quality Control Dept.

 

 

 

 

 

 

 

 

 

 

 

 

Revision Record

Code                                       Date                                                        Item                                                      Contents

 1
 

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

Sheet 2 of 4

FINAL INSPECTION CRITERIA

I.    Purpose

This Final Inspection Criteria is intended to assure
the product quality of SPOTCHEM II Reagent Strips manufactured by ARKRAY
Factory, Inc. and supplied by ARKRAY, Inc.

II.  Scope

This Final Inspection Criteria should be applied to
the quality control of SPOTCHEM II Reagent Strips.

III. Types of Inspection

1. Performance test

1)      Sensitivity

2)      Accuracy

2. Visual Inspection

1)      Labeling

2)      Quantity

IV. Environmental Conditions

The inspections should be carried out under the
following environmental conditions:

	
   

  	
  1)

  	
  Ambient temperature

  	
  :

  	
  [***]

  
	
   

  	
  2)

  	
  Relative Humidity

  	
  :

  	
  [***]

  
	
   

  	
  3)

  	
  Others

  	
  :

  	
  No fluctuation in power supply.

  
	
   

  	
   

  	
   

  	
  No noise confounded with measurements.

  

 

V. Procedures

1. Performance test

1-1. Sensitivity

[Procedures]

	
  

  	
  1)

  	
  Perform calibration by inserting Single (or Multi)
  Card provided in the reagent strip box to the SP-4430.

  
	
   

  	
  2)

  	
  Measure the SPOTCHEM Calibrator Kit (Low and High).

  
	
   

  	
  3)

  	
  Calculate an average of the following items.

  

 

Number of measurement :

	
  Item

  	
   

  	
  Low

  	
   

  	
  High

  
	
  Single

  	
   

  	
  18

  	
   

  	
  18

  
	
  Multi

  	
   

  	
  10

  	
   

  	
  10

  

 

Note) CPK and ALP should be measured within two hours
after dissolution of calibrators, while the other items should be within four
hours after the dissolution.

[Standard]

The average should fall
in the range indicated in Appendix.

 2
 

Sheet 3 of 4

1-2. Accuracy

[Procedures]

Calculate coefficient of variation (C.V.) using the
observed values in the previous section (1-1. Sensitivity):

Standard deviation
divided by average of x times 100.

An outlier should be treated in accordance with JIS Z
8402 (ISO 5725-2).

[Standard]

C.V. should fall in the range indicated in Appendix.

2. Visual Inspection

2-1. Labeling

[Procedures]

Confirm labels, package
and aluminum pack in terms of position, contents and colors. [Standard]

No defect which should impair the product quality is
found.

2-2. Quantity

[Procedures]

Confirm composition of
each package.

[Standard]

A package should consist
of the following items :

	
  

  	
   

  	
  Reagent strips

  	
   

  	
  : 5 strips / sheet x 5 sheets

  
	
   

  	
   

  	
  Molecular sieve

  	
   

  	
  : 1 tablet / strip

  
	
   

  	
   

  	
  Single Card (or Multi Card)

  	
   

  	
  : 1 card / package

  
	
   

  	
   

  	
  Package insert

  	
   

  	
  : 1 sheet / package

  

 

VI. Judgement

1.          If a product fails to
meet a standard, confirm the environmental conditions and the inspection
methods, and perform inspection again.

2.          When the results of the
inspection meet the standards, the lot is considered to pass the inspection.

VII. Remarks

This Final Inspection Criteria shall become applicable
to those shipments which are made on and after March 1, 2005. To those
shipments which are made from November 1, 2004 till February 28, 2005, the
former Final Inspection Criteria shall apply.

 3
 

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

Sheet 4 of 4

Appendix

[***]

 

	
  Item

  	
  [***]

  	
  [***]

  
	
   

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
   

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  Glu

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  UA

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  T-Cho

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  TG

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  BUN

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  T-Bil

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  Ca

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  T-Pro

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  Alb

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  GOT/AST

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  GPT/ALT

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  CPK

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  Amy

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  GGT

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  ALP

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  Cre

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  FRA

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  IP

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  Mg

  	
  [***]

  	
  [***]

  	
  [***]

  	
  [***]

  

 

[***]

 

[***]

 

 4

Attachment 3

	
  ARKRAY brand specifications 1

  	
  Basic design system

  
	
   

  	
  1-4-1

  
	
   

  	
   

  
	
  Prototype

  	
  ARKRAY
  brand consists of
  ARKRAY mark and logo.

  
	
   

  	
  

  	
   

  
	
  /IRKRAY

  	
  Basically the prototype
  should be used.

  
	
   

  	
   

  
	
  Sub-design

  	
   

  
	
  

  	
   

  	
  If the prototype cannot be
  used due to the size of space, use the sub-design instead.

  
	
  /IRKRAY

  	
   

  	
   

  
	
  Isolation

  	
   

  
	
   

  	
  The Isolation is the
  minimum sized space surrounding the

  
	
  ·  Prototype

  	
  ARKRAY brand to set it
  apart from other factors in order to

  
	
   

  	
  make the design prominent.
  Do NOT allow other factors to

  
	
  (ARKRAY Logo
  measurements)

  	
  enter the space.

  
	
   

  	
   

  
	
  ·  Sub-design

  	
   

  
	
   

  	
   

  
	
  (ARKRAY Logo
  measurements)

  	
   

  
				

 

 

	
  Color specifications

  	
  Basic design system

  
	
   

  	
  1-7-1

  
	
   

  	
   

  
	
  ARKRAY blue (DIC641)

  	
  ARKRAY mark is expressed in the two 

  colors, ARKRAY blue and ARKRAY orange.

  
	
  If D1C641 is not
  available

  	
  ARKRAY blue is the corporate color,

  
	
  - C100 + M60

  	
  representing fair, good faith and “truthful”

  
	
  - PANTONE293

  	
  stated in our corporate philosophy.

  
	
   

  	
   

  
	
  ARKRAY orange (DIC205)

  	
  ARKRAY orange indicates vitality, meaning

  
	
   

  	
  “active” in the corporate philosophy.

  
	
  If DIC205 is not
  available

  	
  ARKRAY logo should be painted in black.

  
	
  - M50 + Y90 

  	
  In case the number of color is limited, follow

  
	
  - PANTONE136

  	
  the coloring specifications below.

  
	
   

  	
   

  
	
  Coloring instruction

  	
   

  
	
  Color type

  	
   

  
	
   

  	
   

  
	
  ARKRAY (logo — DIC205 and DIC641)

  	
  ARKRAY (DIC641) (logo — DIC205 and DIC641)

  
	
   

  	
   

  
	
  Prototype (basically
  used)

  	
  If the prototype cannot be used due to the

  
	
   

  	
  limitation of the number of colors, use

  
	
   

  	
  ARKRAY blue and ARKRAY orange as

  
	
   

  	
  shown above.

  
	
  Monochrome types

  	
   

  
	
   

  	
   

  
	
  ARKRAY (logo)

  	
  ARKRAY (logo)

  
	
   

  	
   

  
	
  Monochrome type 1

  	
  Monochrome type 2

  
	
   

  	
   

  
	
  Use black and meshed black 40% as shown

  	
  If the meshed black is not clearly shown in

  
	
  above. If the black is not available to use, use

  	
  monochrome print, use black only.

  
	
  ARKRAY blue (or the most similar color) instead

  	
   

  
	
  of black.

  	
   

  
	
   

  	
   

  
	
  Reversed
  color type

  	
   

  
	
   

  	
   

  
	
  ARKRAY (logo)

  	
  If the ARKRAY colors don’t look attractive due

  
	
   

  	
  to the color of foundation the ARKRAY brand

  
	
   

  	
  is on, use white only shown at the left.

  

 

Attachment 4

[GRAPHIC]

[GRAPHIC]Exhibit 10.24

[***] — Certain information in
this exhibit have been omitted and filed separately with the Securities and
Exchange Commission.  Confidential
treatment has been requested with respect to the omitted portions.

SUPPLY
AND DISTRIBUTION AGREEMENT

This Agreement entered into
by and between Heska Corporation, a Delaware corporation, having a principal
place of business at 1613 Prospect Parkway, Fort Collins, Colorado 80525 (“Heska,”)
and Boule Medical AB, a Swedish corporation, having a principal place of
business at Vastberga Alle 32, P.O. Box 42056, SE-126 13 Stockholm, Sweden (“Boule”).

In consideration of the covenants and obligations
set forth in this Agreement, the Parties hereby agree as follows:

1.                                      Definitions

1.1                                 “ABC System” shall mean the veterinary
hematology analyzer supplied to Heska under an agreement with Scil GmbH
(Formerly Praemix Wirkstoff GmbH) dated June 18, 1998.

1.2                                 “Analyzer” means the Ca 620-16 or Ca 530-16
Veterinary Hematology Analyzer manufactured by Boule. .

1.3                                 “Affiliate” means all entities at least fifty
percent (50%) owned or controlled by a Party, an entity which directly or
indirectly owns or . controls more than fifty percent (50%) of the
voting stock of a Party, and any entity, the majority ownership of which is
directly or indirectly common to the ownership of a Party.

1.4                                 “Calendar Year” shall mean, with respect to
the first Calendar Year, the period commencing on the first date of purchase of
Product by Heska for commercial sales and ending on December 31, 2004.  The second year and all subsequent Calendar
Years shall commence on January 1 and end on December 31 of each year
thereafter.  “Calendar Half Year” shall
mean each six months period ending on the last day of June and December.  “Calendar Quarter” shall mean each three
month period ending on the last day of March, June, September and December.

1.5                                 “Effective Date” shall mean the date this
Agreement is executed by the last to sign Party.

1.6                                 “Field” shall mean the veterinary market.

1.7                                 “Party or Parties” shall mean Heska, Boule or
both as the context indicates.

 

 

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

1.8                                 “Product” shall mean the Analyzer and
associated spare parts, consumables and reagents listed in Appendix A, and ABC
System reagents.

1.9                                 “Territory” shall mean North America.

2.                                      Grant

2.1                                 Distribution Right.  Boule
hereby grants Heska the exclusive right to promote, market, sell and distribute
Product in the Field and within the Territory.

2.2                                 Subdistributors.  Heska
shall have the right to appoint subdistributors to promote, market, sell and
distribute Product in the Field and within the Territory.

2.3                                 Restrictions. 
Without the prior written consent of Boule, Heska undertakes not to
manufacture or distribute within the Territory any products that are similar or
identical to or otherwise competing with any of the Products, except Heska shall
have the right, but not the obligation, to sell its inventory of reagents and
instruments purchased from Scil, Inc. for a period of one year from the
Effective Date of this Agreement.

Moreover, Heska will refrain
without Boule’s prior written consent, to the extent admissible under any
mandatory law applicable to this Agreement, from selling, directly or
indirectly, any Products to customers outside the Territory and/or the Field
or, to the best of Heska’s knowledge, Products otherwise intended for use outside
the Territory and/or outside the Field.

2.4                                 Should Boule decide not to commercialize ABC
System reagents in any country outside North America, Heska shall have the
first right of refusal for distribution in territories available under Boule’s
agreement with [***].  Boule agrees not
to commercialize the ABC System reagents before Heska starts selling the
product.

2.5                                 New Product Development.  Boule
shall provide timelines acceptable to Heska for the development of [***].
Should Boule fail to [***], Heska shall have the right to sell similar systems
without the loss of exclusive rights to distribute Boule products Heska is then
currently distributing, including, without limitation, the exclusive rights to
distribute Products or the ABC system reagents.

3.             Supply of Product

3.1                                 Forecasts.  At least ninety (90) days prior
to each Calendar Quarter after the Product is available for purchase by Heska,
Heska shall provide Boule a binding forecast of anticipated purchases of
Product for such Calendar Quarter, and a non-binding rolling twelve (12) month
forecast of anticipated purchases of Product. 
Product shall be available for purchase by Heska on or before October 1,
2003.

 

 2
 

 

3.2                                 Purchase Orders. 
Written purchase orders shall be submitted by Heska to Boule at least
ninety (90) days prior to the requested delivery date.  No purchase orders for the Product shall be
binding upon Boule until accepted in writing by Boule.  Boule agrees to review promptly all purchase
orders placed by Heska and to notify Heska of acceptance or rejection of such
purchase orders without delay.  Boule
shall use its best efforts to deliver the Products on or before the date
specified in the accepted purchase orders or as soon thereafter as is
reasonably possible.  Boule shall however
not be liable to pay any damages due to its late delivery.

3.3                                 Purchase Minimums.  The
minimum purchase commitment for the first Calendar Year of commercial sale
shall be two hundred (200) Analyzers. 
For each subsequent Calendar Year, the Parties will mutually agree upon
annual minimums for the purchase of Analyzers by Heska at least three (3)
months prior to the beginning of each subsequent Calendar Year.  Should the Parties fail to reach such an
agreement, the minimum commitment for the subsequent Calendar Year shall remain
the same as the minimum purchase commitment for the immediately preceding
Calendar Year.  Should Boule fail to
deliver Product that conforms to the Specifications set forth in Appendix B
within 90 days of receiving a purchase order more than once per Calendar Year,
Boule agrees to readjust the minimum purchasing commitment as mutually
agreeable to the Parties.

3.4                                 Delivery and Acceptance. 
Product shall be delivered F.O.B. Stockholm, Sweden (INCOTERMS 2000), in
accordance with Heska’s instructions and to the location specified by Heska.

Each shipment of Product to Heska will be
accompanied by a quality control certificate. 
The certificate shall be issued in compliance with the specification of
Appendix B, which specification shall be used for acceptance or rejection of
Product by Heska.  Heska will promptly
inspect each shipment and will inform Boule if a shipment is non-conforming to
such specifications.  Unless Heska
advises Boule that a shipment is non-conforming within forty-five (45) days of
its receipt, the shipment will be deemed accepted by Heska.  The provisions set out in Section 6.1 (c)
below shall apply in respect of any non-conforming Product.  Boule shall pay a rejection rate of one
percent (1%) of  the purchase
price for any such non-conforming Product.

3.5                                 Labels.  Labels for Product, including
storage and handling instructions, shall be mutually agreed upon by the
Parties.  Any additional labeling costs
incurred as a result of such agreement shall be borne by Heska, unless required
by Boule.

3.6                                 Consumables. 
Unless Boule terminates this contract pursuant to Section 8.2 below,
Boule agrees that spare parts, consumables and reagents identified in Appendix
A (collectively referred to as “Consumables”) will continue to be supplied, on
a non-exclusive basis, to Heska by Boule under the terms of this agreement for
a period of five (5) years following the termination of this contract;
provided, however that Boule shall provide Heska Consumables at terms at least
as favorable as Boule offers to any other customer(s).  Should Boule terminate this contract pursuant
to Section 8.2 (a), (b), or (e), Boule agrees to supply Consumables to Heska
and to allow Heska to be a supplier of Consumables to Heska’s customers for a
period of twelve (12) months from the termination.  Thereafter, Boule agrees to supply
Consumables to Heska’s

 

 3
 

 

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

customers in a country
within the Territory during the time Boule sells Consumables in that country
directly or through a distributor.

3.7                                 New Products.  Boule
shall offer Heska all new Boule products with potential veterinary application
(“New Products”).  Heska shall have a
first right of refusal for period of sixty (60) days from receipt of a written
offer by Boule to express an interest in any New Product.  If Heska expresses an interest in a New
Product, the Parties agree to engage in good faith negotiations to add the New
Product to this Agreement upon mutually acceptable terms signed by the Parties.

4.                                      Prices and Payment

4.1                                 Prices.  The purchase price of Product
to be paid by Heska to Boule shall be as set forth in Appendix A.  All applicable sales taxes, shipping fees and
insurance with respect to the transfer of Product from Boule’s facility to
Heska’s designated location shall be paid by Heska.  All prices and fees shall be defined in
Euros.

Beginning September 30, 2004
and every September 30 as long as this agreement shall be in effect, Heska and
Boule shall set the “Base Price” for both the CA 620-16 Vet, 110/60 and the
CA-16 Vet with MPA, 110/60, which shall be subject to cumulative annual price
adjustments as detailed later in this section, based on an “Exchange Rate”, as
defined later in this section, as follows:

 

	
  

  	
   

  	
  Base Price (EUR)

  
	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  

 

Where Exchange Rate is the average USD/EUR exchange
rate for the period beginning on July 1 and ending on September 30 of the
current year as reported by the Financial Times of London.

Boule may, after January 1, 2004, and subject to the
restrictions set forth herein, adjust the Analyzer or Consumables purchase
prices in Appendix A to pass through actual changes in the raw material and
labor costs associated with the manufacture of the said Products, although the
adjustment for labor costs shall by itself not cause price increases of more
than 3% annually.  There shall not be
more than one (1) upward adjustment of each of the Product prices during any
Calendar Year for any and all reasons. 
Boule shall provide Heska prior written notice by September 30 of any
proposed increase in the purchase price for the next Calendar Year.  Boule agrees to keep true and accurate books
of accounts relating to the manufacture of the said Products and agrees further
to make said books freely available to Heska during ordinary business hours to
the extent necessary to verify any such price adjustments.  If the proposed increase in the purchase
price of Analyzer, Consumables or reagents is unacceptable to Heska, the
Parties shall mutually agree upon a reduced minimum purchase commitment for the
subsequent Calendar Year.  If the Parties
are unable to reach a mutually agreeable minimum

 

 4
 

 

purchase commitment, either Party shall have the
right to terminate the Agreement and Boule shall continue to supply Consumables
as provided in Section 3.6.

4.2                                 Payment.  For payment terms, see Appendix
A.

4.3                                 Resale Product Prices.  Heska
shall have the unrestricted right to determine the prices at which it resells
the Products purchased under this Agreement. 
Boule shall not have the authority to require or suggest that Heska
charge a particular resale price for the Products purchased from Boule.

5.                                      Marketing

5.1                                 Marketing Support. 
Notwithstanding Section 4.1, Boule agrees to provide fifteen (15)
Analyzers at a discount of thirty percent (30%) for use as demonstration units
for Heska’s marketing and sales activities. 
This discount is not possible to combine with other discounts.  Boule agrees to provide reasonable technical
assistance and training, as requested by Heska, to: (a) enable Heska to market,
sell and distribute Product; (b) enable Heska to install, operate and use the
Product, and (c) educate Heska about improvements to Product.  Such technical assistance shall be provided
at Boule’s expense to the extent not exceeding five working days for one
person.  Any additional technical assistance
shall be subject to the payment of a mutually acceptable consulting rate.  Boule will provide an electronic copy of the
operator’s manual and all updates to Heska.

5.2                                 Trademarks.  Boule grants Heska a limited,
non-exclusive license to use Boule trademarks and brand names as set forth in
Appendix C for the purposes of marketing and selling Product.  Except as specified in this Section, Heska
shall not derive any legal rights to Boule’s trademarks or brand names.  Heska shall use Boule’s trademark and brand
names solely in accordance with such instructions as Boule may give from time
to time.

5.3                                 Product Improvements.  Boule
shall notify Heska in writing of any improvements to Product developed by Boule
useful for veterinary applications. 
Subject always to mutual agreement and available resources in each
separate case, Boule further agrees to support on-going Product development
activities with Heska.

5.4                                 Complaints/Recalls.  Boule
will use reasonable efforts to assist Heska in investigating and correcting any
problems Heska or its customers may experience with the Product.  Such efforts will include visiting the
Territory by Boule’s representatives only where deemed necessary by Boule.  Heska will use reasonable efforts to
implement any corrective action deemed necessary by Boule.  Heska further agrees to reasonably cooperate
with Boule in any mandatory or voluntary Product recall by assisting in the
notification of all affected customers, using materials and documentation that
are mutually acceptable to the Parties.

5.5                                 Marketing Efforts.  Heska
shall in performing this Agreement devote reasonable commercial efforts to
market, distribute and sell the Product in the Territory and in the Field.

5.6                                 Reports.  Heska shall within one month
from the expiry of each Calendar Half Year submit to Boule a report on the
sales of such Calendar Half Year together with such

 

 5
 

 

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

general market information as may be deemed to be of
interest and relevant to Boule or as Boule may from time to time request.  The report shall also specify major sales and
marketing activities.

5.7                                 Approvals, Etc.  Heska
shall at its own expense obtain all approvals and other authorisations and file
all notices which are required to be obtained or filed for the sale and use of
the Product in the Territory.  Moreover,
Heska shall keep Boule currently informed of all laws, rules and regulations
applicable in the Territory directly affecting the sale and use of the
Product.  The Parties acknowledge the
Products are currently not regulated by any government agency within the
Territory.  Should the Products become
regulated during the term of this Agreement, the Parties shall negotiate in
good faith terms and conditions for allocating the responsibility and costs for
obtaining regulatory approval.

6.                                      Warranty

6.1                                 Warranty.  Boule warrants that:

(a)                                  the Product shall be free and clear of any
and all liens, encumbrances, or defects in title and shall be conveyed to Heska
with lawful and marketable title (save as said in paragraph (b) below);

(b)                                 to the best of its knowledge, neither the
Products nor their manufacture, use, importation or sale infringe upon the
proprietary rights held by a third party. 
In the event of an allegation of infringement of any third party
intellectual property rights is made, or in Boule’s and Heska’s opinions is
likely to be made, in respect of the Product Boule may at its own expense (i)
obtain for Heska and its customers  the
right to continue to import, sell and use the Product, (ii) modify the Product
so as to avoid infringement in a way reasonably acceptable to Heska or (iii) if
conditions (i) and (ii) cannot be complied with on terms which in Boule’s
opinion are reasonable, terminate this Agreement without any liability towards
Heska, unless such liability could be covered under the agreement between Boule
and [***].  If the Agreement is
terminated Boule undertakes during a period of twelve months following such
termination before appointing any new distributor in the Territory to offer
Heska the right of first refusal to such distribution rights; and

(c)                                  the Product conforms to the specifications as
set forth in Appendix B and are free from defects in material and workmanship
during a fifteen(15) month warranty period under normal use from the date of
delivery as per Section 3.4 (“Warranty Period”) for the Analyzers and 12 month
expiration dating for reagents.  The
warranty covers, at Boule’s exclusive choice, its replacement or repair of the
non-conforming or defective Product.  If
requested by Boule, Heska shall return to Boule at Heska’s cost and expense the
non-conforming or defective Product.  In
order to avail itself of its rights hereunder Heska shall have given Boule
notice in writing of the non-conforming or defective Product within the
Warranty Period.

 

 6
 

 

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

Save as stipulated in this paragraph (c) Boule shall
not be liable in respect of any non-conforming or defective Product.

(d)                                 Boule holds the exclusive rights to ABC
System reagents in the Territory from [***] and that the marketing, sale and
distribution of such reagents do not and will not infringe the intellectual
property rights of a third party.

6.2                                 Repairs.  During the Warranty Period,
Heska shall at the request of Boule and may at Heska’s choice elect to provide
warranty service at Heska’s designated facilities for the repair of defective
Products.  Boule agrees to provide, at
Boule’s sole expense, one (1) week of service training to Heska’s personnel at
Heska’s facility.  Boule further agrees
to provide additional training, as requested by Heska, at a mutually acceptable
consulting rate.  Boule will provide an
initial pool of five (5) Analyzers at no charge to Heska to serve as loaners to
Heska’s customers during warranty service repairs.  The Parties agree that additional Analyzers
may be added to the pool of loaner units depending on mean time between failure
(MTBF) rates and service turn around times required to perform warranty service
repairs.

6.3                                 Audits.  Heska shall have the right to
the extent necessary for the purpose of examining the Product quality standards
maintained by Boule to audit Boule’s original records and to inspect Boule’s
facilities upon reasonable written notice to Boule.

6.4                                 Product Changes.  Boule
will not make any changes to Product affecting its performance without
providing at least forty-five (45) days prior written notice to Heska.

6.5                                 Indemnification.  Boule
will defend, indemnify, and hold Heska and its directors, officers, employees,
agents and Affiliates, harmless from any and all claims, liabilities, direct
damages and reasonable out-of-pocket expenses, including reasonable attorney’s
fees and costs, arising from or related to any and all claims arising as a
result of the marketing, sale, or use of any defective Product by Heska or its
customers or arising from any breach of warranty under Section 6.1 hereof,
except to the extent that such losses, claims, liabilities, damages or expenses
result from the negligence or wrongful acts of Heska or any of its customers or
from a defect for which Boule is not responsible.  Heska will defend, indemnify, and hold Boule
and its directors, officers, employees, agents and Affiliates, harmless from
any and all claims, liabilities, direct damages and reasonable out-of-pocket
expenses, including reasonable attorney’s fees and costs, arising from or
related to any and all claims arising as a result of the marketing, sale, or
use of any defective Product by Heska or its customers to the extent that such
losses, claims, liabilities, damages or expenses result from the negligence or
wrongful acts of Heska or any of its customers or from a defect for which Boule
is not responsible. Both Parties shall maintain during the term of this
Agreement and for a period of three years thereafter adequate product liability
insurance.

 

 7
 

 

6.6.                              Disclaimer.  EXCEPT AS OTHERWISE EXPRESSLY
PROVIDED HEREIN, BOULE DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.

7.                                      Confidential Information

7.1                                 Obligation to Protect.  Each
of the Parties shall take such steps as are reasonably required (including
without limitation such steps as such Party takes to protect its own
proprietary information) to protect confidential and/or proprietary information
(“Confidential Information”) supplied or revealed to it by the other Party
pursuant to this Agreement, and shall not, directly or indirectly, disclose to
any third party or use such information except pursuant to this Agreement.  Any Confidential Information and/or
proprietary information shall be in writing and clearly designated
Confidential, or if initially disclosed orally, confirmed in writing within
thirty (30) days of disclosure.

7.2                                 Scope of Obligation. 
Nothing in this Article 7 shall be construed to impose a confidentiality
obligation on a Party in connection with any information to the extent such
information (a) is at the time of disclosure already known to the receiving
party (as clearly established by such Party’s prior written records); (b) is at
the time of disclosure or subsequently becomes part of the public domain
through no fault, act, or omission of the receiving Party; (c) is subsequently
disclosed to the receiving Party by a third party whose receipt and disclosure
of such Confidential Information does not, according to the receiving Party’s
knowledge, constitute a violation of any confidentiality obligation; (d) is
independently developed by the receiving Party by employees having no access to
or knowledge of Confidential Information received; or (e) is required by a
court or government agency; provided that the disclosing party shall use
reasonable efforts to provide the other party notice in writing of any proposed
disclosure under this subsection and an opportunity to object to the disclosure
or seek confidential treatment thereof.

7.3                                 Return of Information.  The
receiving Party shall return all Confidential Information provided by the
disclosing Party, and any documents or materials incorporating such
Confidential Information, upon the expiration or termination of this Agreement;
provided, however, one copy of all such Confidential Information may be
retained in the legal files of the receiving Party  to assure compliance with the confidentiality and non-use
provisions of this Article 7.

8.                                      Term and Termination

8.1                                 Term.  Unless terminated earlier as
provided herein, this Agreement shall be effective from the Effective Date and
shall remain in effect until December 31, 2008. 
Thereafter, the term of this Agreement shall be automatically renewed
for additional one (1) year terms; provided, however that either Party may
provide written notification to the other Party of its intent not to renew at
least 180 days prior to the next expiration date.

8.2                                 Termination.  This
Agreement may be terminated:

(a)                                  at any time upon the mutual written consent
of the Parties;

(b)                                 by Boule if Heska fails to meet the minimum
purchasing commitments under Section 3.3 for two (2) contractual years;

 

 8
 

 

(c)                                  for a material breach of this Agreement upon
sixty (60) days prior written notice to the breaching party if during such
sixty (60) day period, the default is not cured to the reasonable satisfaction
of the non-defaulting Party;

(d)                                 by giving the other Party sixty (60) days
written notice if such other Party has entered into or committed any act of
liquidation, bankruptcy, insolvency, receivorship, or assignment for the
benefit of creditors, to the extent such act is permitted by law; or

(e)                                  by Boule if Heska sells a competing product
as defined in Section 2.3.

8.3                                 Effect of Termination; Repurchase of
Products.  Except as otherwise specified in this
Agreement, upon termination of this Agreement Boule shall be entitled to
repurchase from Heska Products that Heska may have in stock when this Agreement
ceases to be in effect at a price equal to the price paid by Heska to Boule for
such Products plus transportation costs, customs duties and other expenses incurred
by Heska.  Should Boule elect not to
repurchase such Products, Heska shall have the right, but not the obligation,
to sell Products in stock.  Upon
termination of this Agreement, Boule shall continue to supply Consumables to
Heska as provided in Section 3.6.

8.4                                 Dispute Resolution.  The
Parties covenant and agree in good faith to attempt for a period of sixty (60)
days to resolve any disputes which may arise in connection with this Agreement
through negotiation and settlement prior to giving notice of termination or
bringing any legal action against the other Party in connection with this
Agreement.  During such negotiations, the
Parties shall also consider the possibility of using alternative dispute
resolution methods, including arbitration and mediation, if the Parties are
unable to resolve the dispute.  The
provisions of this section shall not apply if one Party refuses to negotiate
the dispute in good faith or if more prompt legal action is required to avoid material
loss or damage.  Failure to resolve a
dispute by negotiated settlement shall not prejudice any subsequent legal
action with respect thereto.

9.             Miscellaneous

9.1                                 Relationship of Parties.  The
relationship of Boule to Heska under this Agreement is intended to be that of
independent contractor.  Nothing
contained in this Agreement is intended or is to be construed so as to
constitute Boule and Heska as employer/employee or principal/agent, or the
employees or the agents of any Party hereto as employees or agents of the other
Party hereto.  Neither Party hereto has
any express or implied right or authority under this Agreement to assume or
create any obligations on behalf of or in the name of the other Party or to
bind the other Party to any contract, agreement, or undertaking with any third party,
other than the successors and permitted assigns of the respective parties
hereto.

9.2                                 Assigmnents.  This
Agreement shall be binding upon and inure to the benefit of the Parties
hereto and their respective successors and assigns; provided, however, that
neither Party shall have the right to transfer or assign its interest in this
Agreement without the prior written consent of the other Party, except that
either Party may make such transfer or assignment, to a partner, subsidiary or
entity otherwise controlling, controlled by or under common control with such
Party, or to an entity acquiring all or substantially all relevant assets of a
Party to which this Agreement pertains. 
No transfer or assignment will relieve the transferor or assignor of any
liability or obligations hereunder.

 

 9
 

 

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

9.3                                 Waiver of Performance.  A
failure of a Party hereto at any time to require performance by the other Party
hereto of any provision hereto required to be performed by such other Party,
will in no way affect the right of the first party to require such performance
at any time thereafter.  The waiver of
any breach of any provision hereto will in no way be construed as a waiver of
any succeeding breach of such provision or a waiver of the provision itself.

9.4                                 Severability.  In
the event any provision of this Agreement shall be invalid, void, illegal, or
unenforceable, the remaining provisions hereof nevertheless will continue in
full force and effect without being impaired or invalidated in any way.

9.5                                 Survival.  The provisions of Section 5.4,
Articles 6, 7 and 8, and Section 9.8 shall survive the termination of this
Agreement.

9.6                                 Notices.  All notices under this
Agreement shall be in writing and shall be deemed given if sent by facsimile,
(except for the legal process in each case), certified or registered mail or
commercial courier (return receipt or confirmation of delivery requested), or
by personal delivery to the party to receive such notices or other
communications called for by this Agreement at the following addresses for a
party as shall be specified by such party by like notice:

If to Boule:

Boule
Medical AB

P.O.
Box 42056

SE-126
13 Stockholm, Sweden

Facsimile
[***]

Attention:  President

 

If to Heska:

Heska
Corporation

1613
Prospect Parkway

Fort
Collins, CO 80525

Fax
[***]

Attention:
Chief Executive Officer

Copy
to:  Executive Vice President,
Intellectual Property

                and Business Development

Facsimile
[***]

 

9.7                                 Force majeure. 
Either Party shall be excused from the performance of its obligations
hereunder, or such performance may be delayed, by causes beyond its reasonable
control, including without limitation, acts of God, war, riot, epidemic, fire,
flood, insurrection, military authorities, labor disputes, delay or inability
to obtain supplies, labor, raw materials, energy or failure of transportation
or communication and any other similar contingency, provided that if such
nonperformance continues for more than 90 days, the other party may terminate
the Agreement upon written notice.

 

 10
 

 

9.8                                 Governing Law.  The
Parties agree that their rights and obligations under this Agreement will not
be governed by the United Nations Conventions on Contracts for the
International Sale of Goods, the application of which is expressly
excluded.  Rather, this Agreement shall
be governed by and construed under the laws of the district where the
contracting party is a defendant who defends against the other Party, with
regard to the construction or interpretation of the Agreement.  The English language employed herein shall be
controlling and this Agreement shall be deemed to have been executed at Fort
Collins, Colorado, United States of America and Stockholm, Sweden.  Any dispute, controversy or difference
arising between the Parties, out of or in relation to or in connection with this
Agreement, or the breach thereof, which cannot otherwise be settled between the
Parties within a period of ninety (90) days shall be submitted to an
arbitration before a competent arbitration tribunal in Colorado, United States
of America in case Heska is a defendant, and Stockholm, Sweden, in case Boule
is a defendant, for binding resolution in accordance with the rules selected by
the arbitrator(s), provided the proceedings are conducted in the English
language.

9.9                                 General Terms of Sale.  Boule’s
General Terms of Sale as amended from time to time shall apply in respect of
all supplies hereunder save as varied by express provisions herein.  The currently applicable General Terms of
Sale have been attached hereto as Appendix A.

9.10                            Entire Agreement.  This
Agreement and the Appendices hereto constitute the entire agreement and
understanding of the Parties with regard to the subject matter hereof and
supercede all prior agreements and understanding, written or oral, between the
Parties.  This Agreement may only be
amended by a written agreement signed by the Parties.

The Parties have caused this Agreement to be signed
by their duly authorized representatives.

	
  BOULE MEDICAL AB

  	
   

  	
  HESKA CORPORATION

  
	
  

  By:

  	
  

  /s/ Ernst Westman

  	
   

  	
  

  By: 

  	
  

  /s/ Jason Napolitano

  	
   

  
	
  

  Name:

  	
  

  ERNST WESTMAN

  	
   

  	
  

  Name: 

  	
  

  JASON NAPOLITANO

  	
   

  
	
  

  Title:

  	
  

  President

  	
   

  	
  

  Title: 

  	
  

  Chief Financial Officer

  	
   

  
	
  

  Date:

  	
  

  June 17, 2003

  	
   

  	
  

  Date: 

  	
  

  June 17, 2003

  	
   

  

 

 

 11

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

Appendix A1

This Appendix forms an
integrated part of the Distributorship Agreement between BOULE and HESKA.

Payment Terms

All prices are based on EX
Works delivery terms, not insured, 50% in Euro and 50% in USD based on a fixed
exchange rate of 1.18 USD/EUR.  For
example, if Heska buys two CA 620-16, 110-60, price Net Euro [***], Heska would
pay EUR [***]  and USD [***] for
the two instruments.  Heska agrees to
make orders in units divisible by two.

Insurance could be organised
according to a request from the receiver.

All additional costs are on
the behalf of Heska, such as:

–      L/C cost

–      Legalisation costs

–      Courier

 

Minimum order/invoicing
amount:  Euro 100

Payment terms

–                 Boule will invoice Heska twenty percent (20%)  of the purchase price of instruments
immediately upon acceptance of any purchase order.  Heska shall wire the 20% payment fourteen (14)
days prior to shipment.  Boule will
invoice the balance of the purchase price upon shipment of Product from Boule’s
facility and Heska shall pay such invoice within fifty-two (52) days from the
date of invoice.  This term shall be
valid only as long as Heska complies with said payment term without delays, as
judged by Boule.  For  payments received in advance Heska will
be granted a 2% discount.

–                 Interest rate of 2% per month will be charged
for all invoices past due date.  Interest
invoices will be made, at least, twice a year.

–                 Credit limit is set to Euro five hundred
thousand (500.000)

 

 12
 

 

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

Appendix A2

This Appendix forms an
integrated part of the Distributorship Agreement between BOULE and  HESKA.

Price schedule

	
  Description

  	
   

  	
  Price Net Euro

  
	
  INSTRUMENTS

  	
   

  	
   

  
	
  CA 620-16 Vet,
  110/60

  	
   

  	
  [***]

  
	
  CA 620-16 Vet
  with MPA, 110/60

  	
   

  	
  [***]

  
	
  CA 620-20 Vet,
  110/60

  	
   

  	
  [***]

  
	
  CA 620-20 Vet
  with MPA, 110/60

  	
   

  	
  [***]

  
	
  Micro Pipette
  Adapter MPA

  	
   

  	
  [***]

  
	
  Micro caps for
  MPA Pack size 10/1000

  	
   

  	
  [***]

  
	
  Medonic micro lancet

  	
   

  	
  [***]

  
	
  Printer DPU
  414-2

  	
   

  	
  [***]

  
	
  Printer paper to
  DPU 414-2, 5 rolls

  	
   

  	
  [***]

  
	
  Barcode reader

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  
	
  REAGENTS

  	
   

  	
   

  
	
  Mediton vet, 10
  Litre (for Medonic)

  	
   

  	
  [***]

  
	
  Medilyse vet, 5
  Litre (for Medonic)

  	
   

  	
  [***]

  
	
  Reagent Pack
  AB-Vet (for ABX)

  	
   

  	
  [***]

  
	
  ProClean Plus

  	
   

  	
  [***]

  
	
  Hypochlorite

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  
	
  CONTROLS &
  CALIBRATORS

  	
   

  	
   

  
	
  Boule- 8 VET CON

  	
   

  	
   

  
	
  1x4, 5 ml normal

  	
   

  	
  [***]

  
	
  6x4, 5 ml normal

  	
   

  	
  [***]

  
	
  18x4, 5 ml
  normal

  	
   

  	
  [***]

  
	
  Boule- 8 VET CAL

  	
   

  	
   

  
	
  1x3, 0 ml

  	
   

  	
  [***]

  

 

 

 13
 

 

APPENDIX B

Product
Specification

Product Specification  CA 620 Vet

	
  - Measuring principle RBC,
  WBC, PLT

  	
   

  	
  Impedance

  
	
  - Measuring
  principle HGB

  	
   

  	
  Cyanide free method 540 nm

  
	
  - Discriminator

  	
   

  	
  Floating programmable

  
	
  - Sampling
  system

  	
   

  	
  Shear valve

  
	
   

  	
   

  	
   

  
	
  - Parameters
  reported (16 par. model):

  	
   

  	
  RBC, MCV, HCT,

  PLT,MPV

  HGB, MCH, MCHC

  WBC,

  RDW%

  LYMPH abs, MID abs, GRAN abs.

  LYMPH %, MID %, GRAN %

  
	
   

  	
   

  	
   

  
	
  - Size
  distributions printed for

  	
   

  	
  RBC, PLT and WBC diff.

  
	
   

  	
   

  	
   

  
	
  - Aspirated
  blood volume (open tubes)

  	
   

  	
  ca. 125 ul

  
	
  - Blood volume
  using the Micro Pipette Adapter

  	
   

  	
  20 ul

  
	
   

  	
   

  	
   

  
	
  - Prediluted
  mode

  	
   

  	
  1:200 to 1:250 using min. 20 ul blood

  e.g.          20 ul to 5 ml diluent

  30 u1 to 6 m1 diluent

  40 u1 to 8 ml diluent

  
	
   

  	
   

  	
   

  
	
  - Screen

  	
   

  	
  LCD

  
	
  - Keyboard

  	
   

  	
  Numerical

  
	
  - Total cycle
  time

  	
   

  	
  ca. 73 seconds

  
	
  - Sample display
  and print after

  	
   

  	
  ca. 53 seconds

  
	
   

  	
   

  	
   

  
	
  - Printer

  	
   

  	
  external, IBM, HP format

  or DPU414

  
	
   

  	
   

  	
   

  
	
  - Memory

  	
   

  	
  >350 samples

  
	
   

  	
   

  	
   

  
	
  - QC capability

  	
   

  	
  SD, CV, Xm

  
	
  - HGB correction
  on high WBC counts

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  
	
  - Warning flags
  on parameter abnormalities

  	
   

  	
  Yes

  
	
  - Floating
  discriminator RBC/ PLT

  	
   

  	
  Yes (position printed)

  
	
  - Mathematical
  3-part diff. WBC calc.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  
	
  - Automatic HGB
  blank on each sample

  	
   

  	
  Yes

  
	
  - Carry Over

  	
   

  	
  < 1%

  
	
  - Bar-code
  scanner input

  	
   

  	
  Yes

  
	
  - Serial output

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  

 

 14
 

 

 

 

 

	
  - Mains voltage

  	
   

  	
  230 V or, 120 V

  
	
   

  	
   

  	
   

  
	
  - Mains voltage
  tolerances

  	
   

  	
  +15% /-20%

  
	
  - Power
  consumption

  	
   

  	
  max 250 VA

  
	
  - Power
  consumption (standby)

  	
   

  	
  max 50 VA

  
	
   

  	
   

  	
   

  
	
  - Built-in test
  /adjustment programs

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  
	
  Dimensions (mm)

  	
   

  	
  H=350  W=420  D=460

  
	
  Weight

  	
   

  	
  ca. 22 Kg

  

 

 

 15
 

 

[***] — Certain information in
this exhibit have been omitted and filed separately with the Securities and
Exchange Commission.  Confidential
treatment has been requested with respect to the omitted portions.

June 1, 2004

Boule Medical AB

P. O. Box 42056

SE-126 13 Stockholm, Sweden

Attention: Ernst Westman, President

Re:                             Supply
and Distribution Agreement (“Distribution Agreement”) by and between
Heska Corporation (“Heska”) and Boule Medical AB (“Boule”) dated
June 17, 2003

Dear Mr. Westman:

This letter confirms our
agreement to interpret and supplement the Distribution Agreement as follows
(capitalized terms not otherwise defined herein have the meanings ascribed to
them in the Distribution Agreement):

1.             Pricing and Payment.  Appendix Al and Appendix A2 of the
Distribution Agreement are hereby deleted in their entirety and replaced with
Appendices AI, A2, A3, A4 and A5 attached hereto.  The last sentence of the first paragraph of
Section 4.1 of the Distribution Agreement is hereby amended to read as follows:
“All prices and fees shall be defined in Euros and/or US Dollars, as provided
in Appendices A2, A3, A4 and A5.”

2.             Appendix C. Appendix C to
the Distribution Agreement is attached hereto.

3.             Returns.  Notwithstanding any provision of Section 6.1
(c) of the Distribution Agreement to the contrary, Boule shall reimburse Heska
for the cost and expense of returning non-conforming or defective Product as
contemplated therein.

4.             Indemnification.  Boule and Heska agree that the following
phrase shall be deleted at the end of the second sentence of Section 6.5 of the
Distribution Agreement and shall have no further force and effect: “or any of
its customers or from a defect for which Boule is not responsible”.

5.             Consumable Sales after
Termination.  Unless Boule terminates
the Distribution Agreement pursuant to Section 8 .2 thereof, Heska may purchase
Consumables following termination of the Distribution Agreement as provided in
Section 3.6 thereof, and for the avoidance of doubt, Heska’s right to make such
purchases shall not obligate Heska to comply

 

 16
 

 

with the restrictions set forth in Section 2.3
thereof.  However, if Heska sells
non-Boule spare parts, consumables or reagents for the Analyzer following
termination of the Distribution Agreement (other than due to Boule’s failure to
timely fill Heska’s orders for Consumables), then Heska’s right to purchase
Consumables shall expire.

6.             Sale of Refurbished ABC Systems
and Scil Inventory.  Notwithstanding
any provision of the Distribution Agreement to the contrary, including but not
limited to Section 2.3 thereof, Boule agrees that Heska shall have the right,
but not the obligation, to obtain and refurbish used ABC instruments (“Refurbished
ABC Systems”) and to sell such Refurbished ABC Systems within the Territory
at any time after the date of this Amendment. 
In addition, Heska shall have the right, but not the obligation, to sell
its inventory of instruments and reagents purchased from Scil Animal Care
Company, America, Inc., within the Territory, at any time after the effective
date of this Amendment.  Heska shall
provide monthly reports of sales of both new ABC Systems and Refurbished ABC
Systems to Boule.

This letter will
constitute a written agreement amending the Distribution Agreement as contemplated
by Section 9.10 thereof.  If there is a
conflict between the terms of this letter and the Distribution Agreement, this
letter shall control.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  HESKA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JASON NAPOLITANO

  	
   

  
	
   

  	
   

  	
  Jason Napolitano

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED
  AND AGREED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BOULE MEDICAL AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ ERNST
  WESTMAN

  	
   

  	
   

  	
   

  
	
   

  	
  Ernst Westman

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  President

  	
   

  	
   

  	
   

  
								

 

 17
 

 

Appendix
A1

This Appendix forms an
integrated part of the Supply and Distribution Agreement between BOULE and
HESKA.

Payment Terms

All prices are based on EX Works delivery terms, not
insured.

Insurance could be organized according to a request
from the receiver.

All additional costs are on the behalf of Heska, such
as:

-                                            L/C
cost

-                                            Legalization
costs

-                                            Courier

Minimum order/invoicing amount:  Euro 100

Payment terms

-                                            Boule
will invoice Heska twenty percent (20%) of the purchase price of instruments
immediately upon acceptance of any purchase order.  Heska shall wire the 20% payment fourteen
(14) days prior to shipment.  Boule will
invoice the balance of the purchase price upon shipment of Product from Boule’s
facility and Heska shall pay such invoice within fifty-two (52) days from the
date of invoice.  This term shall be
valid only as long as Heska complies with said payment term without delays, as
judged by Boule.  For payments received
in advance Heska will be granted a 2% discount.

-                                            Interest
rate of 2% per month will be charged for all invoices past due date. Interest
invoices will be made, at least, twice a year.

-                                            Credit
limit is set to Euro five hundred thousand (500.000).

 

 18
 

 

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

Appendix
A2

This Appendix forms an
integrated part of the Supply and Distribution Agreement between BOULE and
HESKA.

Heska agrees to make
orders of the following Products in units divisible by two.  Payment for fifty percent (50%)  of the units in each shipment shall be
made in Euros and fifty percent (50%)  in
U.S. dollars.  The initial Euro prices
are set forth below, subject to adjustment for actual changes in material and
labor costs pursuant to the last paragraph of Section 4.1 of the Distribution
Agreement.  The dollar prices shall be an
amount equal to the then-current Euro price, multiplied by 1.18.

	
  Description

  	
   

  	
  Price Net Euro

  
	
  INSTRUMENTS

  	
   

  	
   

  
	
  CA 629-20 Vet,
  110/60

  	
   

  	
  [***]

  
	
  CA 620-20 Vet
  with MPA, 110/60

  	
   

  	
  [***]

  
	
  Micro Pipette
  Adapter MPA

  	
   

  	
  [***]

  
	
  Micro Caps for
  MPA Pack size 10x1000

  	
   

  	
  [***]

  
	
  Medonic micro
  lancet

  	
   

  	
  [***]

  
	
  Printer DPU
  414-2

  	
   

  	
  [***]

  
	
  Printer paper to
  DPU 414-2, 5 rolls

  	
   

  	
  [***]

  
	
  Barcode reader

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  
	
  REAGENTS

  	
   

  	
   

  
	
  Mediton vet, 10
  Litre (for Medonic)

  	
   

  	
  [***]

  
	
  Medityse vet, 5
  Litre (for Medonic)

  	
   

  	
  [***]

  
	
  ProClean Plus

  	
   

  	
  [***]

  
	
  Hypochlorite

  	
   

  	
  [***]

  

 

 19
 

 

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

Appendix
A3

Payment for one hundred
percent (100%) of the units of the Products listed below shall be made in U.S.
dollars.  The initial U.S. dollar price
for each of such Products shall be the price set forth below, subject to
adjustment for actual changes in raw material and labor costs pursuant to the
last paragraph of Section 4.1 of the Distribution Agreement.

	
  Description

  	
   

  	
  Price Net

  
	
  REAGENTS

  	
   

  	
   

  
	
  Reagent Pack
  AB-Vet (for ABX)

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  
	
  CONTROLS
  & CALIBRATORS

  	
   

  	
   

  
	
  Boule — 8 VET
  CON

  	
   

  	
   

  
	
  1x4.5 ml normal

  	
   

  	
  [***]

  
	
  6x4.5 ml normal

  	
   

  	
  [***]

  
	
  18x4.5 ml normal

  	
   

  	
  [***]

  
	
  Boule — 8 VET
  CAL

  	
   

  	
   

  
	
  1x3.0 ml

  	
   

  	
  [***]

  

 

 

 20

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

Appendix
A4

Payment for one hundred
percent (100%) of the units of the Products listed below shall be made in
Euros.  The initial Euro price for each
unit of such Products shall be the price set forth below, subject to adjustment
for actual changes in raw material and labor costs pursuant to the last paragraph
of Section 4.1 of the Distribution Agreement.

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Spare Parts Price List

  Medonic CA 530/620

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  View

  	
   

  	
  Pos

  	
   

  	
  Art. No.

  	
   

  	
  Description

  	
   

  	
  Recommended

  for stock

  	
   

  	
  Price

  Euro

  	
   

  
	
  530-04

  	
   

  	
  5

  	
   

  	
  5814064

  	
   

  	
  Asp. pip. predil.
  blood/upps

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  4

  	
   

  	
  5306007

  	
   

  	
  Asp. Pipette Whole
  blood

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  92

  	
   

  	
  9990389

  	
   

  	
  Bearing

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  83

  	
   

  	
  9990676

  	
   

  	
  Bi pin lampa

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  20

  	
   

  	
  5308004

  	
   

  	
  Cable assay blood
  detector

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  84

  	
   

  	
  5308013

  	
   

  	
  Cable assy Hgb lamp

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  70

  	
   

  	
  5308008

  	
   

  	
  Cable assy Hgb photocel

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  21

  	
   

  	
  5308014

  	
   

  	
  Cable assy opto-switch

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  43

  	
   

  	
  5308011

  	
   

  	
  Cable assy start/stop
  detector

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  67

  	
   

  	
  5308010

  	
   

  	
  Cable assy syringe
  motor

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  89

  	
   

  	
  5308009

  	
   

  	
  Cable assy transducer
  coax

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  73

  	
   

  	
  5306002

  	
   

  	
  Cap. Holder complete

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  34

  	
   

  	
  5814143

  	
   

  	
  Casing complete

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-05

  	
   

  	
  37

  	
   

  	
  9990959

  	
   

  	
  Check valve 1300-201.1

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  17

  	
   

  	
  5304022

  	
   

  	
  Cleaning device

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  78

  	
   

  	
  5306004

  	
   

  	
  Counting cup WBC
  complete

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  71

  	
   

  	
  5306003

  	
   

  	
  Counting cup RBC
  complete

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  55

  	
   

  	
  9990434

  	
   

  	
  Coupling T 20-6

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  37

  	
   

  	
  9990435

  	
   

  	
  Coupling DD-6

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  39

  	
   

  	
  9990955

  	
   

  	
  Coupling T 220-210-6

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  36

  	
   

  	
  9990989

  	
   

  	
  Coupling T220-6

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  38

  	
   

  	
  9990437

  	
   

  	
  Coupling Y220-6

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  16

  	
   

  	
  5304097

  	
   

  	
  Detector

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-05

  	
   

  	
  8

  	
   

  	
  9990910

  	
   

  	
  Fan for F-120

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  75

  	
   

  	
  9990598

  	
   

  	
  Filter VG9 4mm Ø 8

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  59

  	
   

  	
  5306006

  	
   

  	
  Gearbox complete

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  22

  	
   

  	
  5306005

  	
   

  	
  Gearbox complete

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  103

  	
   

  	
  5304077

  	
   

  	
  Glass cylinder

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  10

  	
   

  	
  5304011

  	
   

  	
  Guiding rod

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  

 

 21
 

 

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

	
  530-02

  	
   

  	
  25

  	
   

  	
  5304015

  	
   

  	
  Guiding wheel

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  9990900

  	
   

  	
  Hal switch TLE
  4905L

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-2

  	
   

  	
  105

  	
   

  	
  5304075

  	
   

  	
  Housing upper
  glass cylinder

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  9990844

  	
   

  	
  IC 82C55A

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  9990891

  	
   

  	
  IC LM338K

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  9990890

  	
   

  	
  IC LT350AK

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  9990847

  	
   

  	
  IC PBL 3773

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  9990848

  	
   

  	
  IC PBM 3960

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  45

  	
   

  	
  4804014

  	
   

  	
  Ind. Lower

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  23

  	
   

  	
  5304002

  	
   

  	
  Indicator
  housing

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  620-01

  	
   

  	
  2

  	
   

  	
  6203018

  	
   

  	
  Keyboard folio

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-05

  	
   

  	
  27

  	
   

  	
  5306001

  	
   

  	
  Level detector
  hemolyzer

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-05

  	
   

  	
  26

  	
   

  	
  5306000

  	
   

  	
  Level detector
  isoton

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  9

  	
   

  	
  9990395

  	
   

  	
  Locking ring RS
  4

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-01

  	
   

  	
  38

  	
   

  	
  9990479

  	
   

  	
  Magnet lock

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  7

  	
   

  	
  9990402

  	
   

  	
  Magnet valve
  one-way

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  8

  	
   

  	
  9990403

  	
   

  	
  Magnet valve
  two-way

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-05

  	
   

  	
  42

  	
   

  	
  9991128

  	
   

  	
  Mains inlet

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  47

  	
   

  	
  5304026

  	
   

  	
  Metering unit

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2606001

  	
   

  	
  Micocaps for MPA
  260 10x100

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  20

  	
   

  	
  5814036

  	
   

  	
  Mixing
  cup/bl.bägare

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  21

  	
   

  	
  5303010

  	
   

  	
  Mixing cup lid

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-05

  	
   

  	
  11

  	
   

  	
  9990405

  	
   

  	
  Nipple

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  16

  	
   

  	
  5304020

  	
   

  	
  Optical detector

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  44

  	
   

  	
  9990475

  	
   

  	
  O-ring 5.30x
  2.40 silikon

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  49

  	
   

  	
  9990475

  	
   

  	
  O-ring 5.30x
  2.40 silikon

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  77

  	
   

  	
  9990597

  	
   

  	
  O-ring 7.10x
  1.60

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  79

  	
   

  	
  9990597

  	
   

  	
  O-ring 7.10x
  1.60

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  36

  	
   

  	
  9991164

  	
   

  	
  O-ring 22.00x
  2.00 nitril

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  32

  	
   

  	
  9990453

  	
   

  	
  O-ring 5.10x1.60
  nitril

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  104

  	
   

  	
  9990468

  	
   

  	
  O-ring 12.10x
  1.60 epdm

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  74

  	
   

  	
  9991085

  	
   

  	
  O-ring 13.10x
  1.6 nitril

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  69

  	
   

  	
  9990382

  	
   

  	
  O-ring 20.24x
  2.62 viton

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  28

  	
   

  	
  9990392

  	
   

  	
  O-ring 22.10x
  1.60 viton

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  13

  	
   

  	
  9990887

  	
   

  	
  O-ring 6.10x1.60
  nitril

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-06

  	
   

  	
  3

  	
   

  	
  5309021

  	
   

  	
  PCB ampl 530
  mounted complete

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-06

  	
   

  	
  2

  	
   

  	
  5309001

  	
   

  	
  PCB CPU 530
  mounted complete

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  620-01

  	
   

  	
  4

  	
   

  	
  6209001

  	
   

  	
  PCB display
  CA620

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-06

  	
   

  	
  8

  	
   

  	
  5309011

  	
   

  	
  PCB power
  mounted complete

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-06

  	
   

  	
  27

  	
   

  	
  9991161

  	
   

  	
  Plastic cover

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-05

  	
   

  	
  7

  	
   

  	
  9990422

  	
   

  	
  Pump F120-28 24
  AC

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  

 

 22
 

 

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

	
  530-05

  	
   

  	
  39

  	
   

  	
  9980001

  	
   

  	
  Repair kit for
  pump 9990422

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  9

  	
   

  	
  5814120

  	
   

  	
  Ring/främre
  styrh. v.

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  6

  	
   

  	
  5814119

  	
   

  	
  Ring/mothåll fj.

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  24

  	
   

  	
  5814082

  	
   

  	
  Ring/stoppring

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  55

  	
   

  	
  5304008

  	
   

  	
  Rolled thread
  ball screw Shbo 12*4

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-05

  	
   

  	
  14

  	
   

  	
  9990911

  	
   

  	
  Rubber support,
  M4

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  5

  	
   

  	
  9990689

  	
   

  	
  Sealing BA 8 18
  5

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  124

  	
   

  	
  5306009

  	
   

  	
  Sealing piston
  complete

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  503-02

  	
   

  	
  123

  	
   

  	
  5306008

  	
   

  	
  Sealing rod
  complete

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-01

  	
   

  	
  62

  	
   

  	
  5303042

  	
   

  	
  Shield plate

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  42

  	
   

  	
  9990957

  	
   

  	
  Spring
  0,60*6,0*15

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  7

  	
   

  	
  9990439

  	
   

  	
  Spring 1,00*12,0*20

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-02

  	
   

  	
  30

  	
   

  	
  9990952

  	
   

  	
  Spring
  1,50*7,0*10

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  2

  	
   

  	
  5304104

  	
   

  	
  Start plate 1

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  3

  	
   

  	
  5304105

  	
   

  	
  Start plate 2

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-05

  	
   

  	
  46

  	
   

  	
  5304167

  	
   

  	
  Tube ground con.

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  54

  	
   

  	
  9970031

  	
   

  	
  Tubing pvc Ø
  3.0/5.0

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  50

  	
   

  	
  9970022

  	
   

  	
  Tubing tef Ø
  0.7/1.6

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  51

  	
   

  	
  9970023

  	
   

  	
  Tubing tef Ø
  1.2/2.0

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  52

  	
   

  	
  9970041

  	
   

  	
  Tubing tyg Ø
  0.8/2.4

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  53

  	
   

  	
  9970042

  	
   

  	
  Tubing tyg Ø
  1.6/3.2

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  47

  	
   

  	
  9970001

  	
   

  	
  Tubing Ø sil 1,0/3,0

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  48

  	
   

  	
  9970002

  	
   

  	
  Tubing Ø sil
  1,5/3,0

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  46

  	
   

  	
  9970005

  	
   

  	
  Tubing Ø sil
  2,0/5,0

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-04

  	
   

  	
  49

  	
   

  	
  9970024

  	
   

  	
  Tubing Ø tef,
  1,6/3,2

  	
   

  	
  Y

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  35

  	
   

  	
  5814142

  	
   

  	
  Valve part f.

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  
	
  530-03

  	
   

  	
  10

  	
   

  	
  5304048

  	
   

  	
  Valve rear part

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  

 

 23
 

 

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

Appendix
A5

Heska agrees to make
orders of the following Products in units divisible by two.  Payment for fifty percent (50%) of the units
of such Products in each shipment shall be made in Euros and fifty percent
(50%) in U.S. dollars.  The Euro price
shall initially be EUR [***] and shall be determined annually in accordance
with the second paragraph of Section 4.1 of the Distribution Agreement, subject
to adjustment for actual changes in raw material and labor costs pursuant to
the last paragraph of Section 4.1 of the Distribution Agreement.  The U.S. dollar price shall be fixed at USD
[***], subject to adjustment for actual changes in raw material and labor costs
pursuant to the last paragraph of Section 4.1 of the Distribution Agreement.

CA 620-16 Vet, 110/60

CA
620-16 Vet with MPA, 110/60

 

 24
 

 

Appendix
C

Boule’s trademarks are:

Boule

Medonic

Swelab

 

 25
 

 

December 31, 2004

Boule Medical AB

P. O. Box 42056

SE-126 13 Stockholm,
Sweden

Attention:  Ernst Westman, President

Re:                                   Supply
and Distribution Agreement (“Distribution Agreement”) by and between
Heska Corporation (“Heska”) and Boule Medical AB (“Boule”) dated
June 17, 2003

Dear Mr. Westman:

This letter
confirms our agreement to amend our letter dated June 1, 2004 (the “First
Amendment”) to further interpret and supplement the Distribution Agreement
as follows (capitalized terms not otherwise defined herein have the meanings
ascribed to them in the Distribution Agreement):

1.             Pricing and Payment.  Appendix A1 attached to the First Amendment
is hereby deleted and replaced with Appendix A1 attached hereto.

This letter will constitute a written agreement
amending the Distribution Agreement as contemplated by Section 9.10
thereof.  If there is a conflict between
the terms of this letter and the Distribution Agreement or the First Amendment,
this letter shall control.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  HESKA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason Napolitano

  	
   

  
	
   

  	
   

  	
  Jason Napolitano

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED
  AND AGREED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BOULE MEDICAL AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ernst
  Westman

  	
   

  	
   

  	
   

  
	
   

  	
  Ernst Westman

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  President

  	
   

  	
   

  	
   

  
													

 

 26
 

 

Appendix
A1

This Appendix
forms an integrated part of the Supply and Distribution Agreement between BOULE
and HESKA.

Payment terms

All prices are based on
EX Works delivery terms, not insured.

Insurance could be
organized according to a request from the receiver.

All additional costs are
on the behalf of Heska, such as:

-                                            L/C
cost

-                                            Legalization
costs

-                                            Courier

Minimum order/invoicing
amount:  Euro 100

Payment terms

-                                            Boule
will invoice the purchase price upon shipment of Product from Boule’s facility
and Heska shall pay such invoice within forty-two (42) days from the date of
invoice.  This term shall be valid only
as long as Heska complies with said payment term without delays, as judged by
Boule.  For full payments received in
advance of shipment Heska will be granted a 2% discount.

-                                            Interest
rate of 2% per month will be charged for all invoices past due date.  Interest invoices will be made, at least,
twice a year.

-                                            Credit
limit is set to Euro five hundred thousand (500.000).

 

 27

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]