Document:

exv10w23

 

Exhibit
10.23

TERMS AND CONDITIONS OF PURCHASE

 

All products and services of ordered by TomoTherapy Incorporated (“Buyer”) are only ordered on
the terms and conditions stated in this document and in the applicable purchase order accompanying
these terms and conditions to the exclusion of any terms and conditions submitted by Seller orally
or in writing. Buyer’s performance of any contract is expressly conditioned on Seller’s agreement
to these terms and conditions of sale. Seller’s signed acceptance of or performance upon a
purchase order shall be deemed acceptance of these Standard Terms and Conditions in their entirety
and without alteration or supplementation. These Standard Terms and Conditions may not be altered,
supplemented, or amended by the use of any other document(s), and Buyer has not authorized any
employee or agent to offer any terms, conditions, or any other rights whatsoever except as provided
herein. Any additional or different terms and conditions contained in any oral communication or
purchase order or other document of Buyer will be null and void, unless they are in writing and
duly executed by TomoTherapy.

 

(1) Contract Terms. This purchase order is an offer to
purchase materials or services upon the terms and
conditions stated herein. Any proposal for additional or
different terms shall not be binding upon Buyer. IF FOR
ANY REASON THIS ORDER SHALL BE DEEMED AN ACCEPTANCE OF A
PRIOR OFFER MADE BY SELLER, SUCH ACCEPTANCE IS EXPRESSLY
CONDITIONED UPON SELLER’S ASSENT TO THE TERMS CONTAINED
HEREIN. BUYER WILL PROCEED WITH THIS TRANSACTION ONLY IF
SELLER ASSENTS TO THE TERMS CONTAINED IN THIS ORDER.

(2) Warranties. Seller expressly warrants that the
products it sells to Buyer: (i) comply with all
applicable laws; (ii) are of new, merchantable quality
and free of defects in workmanship and materials; (iii)
conform to any and all final specifications requested of
Seller and are fit and sufficient for the purpose(s) for
which they were sold; (iv) do not infringe the patent,
copyright, trademark or trade secret rights of any
person; (v) will be sold to Buyer at prices which are no
higher than those charged by Seller to other purchasers;
and (vi) are free of all liens, claims, or encumbrances.
Seller shall compensate, indemnify and hold harmless from
and against any and all damages, claims, liabilities, and
expenses (including court costs and attorneys’ fees)
arising out of or relating to or resulting from a breach
of any warranty.

(3) Delivery and Risk of Loss. All materials are to be
furnished F.O.B. point of destination. The entire risk
of loss, regardless of the F.O.B. point and cause
therefor, shall be borne by the Seller until the
materials are delivered to and accepted by Buyer.

(4) Inspection and Acceptance. Buyer shall have a
reasonable time to inspect the materials upon delivery,
and the materials may be rejected for defects revealed by
such inspection. Payment for goods shall not constitute
acceptance of such goods. Rejected materials may be
returned to Seller for full refund, including any
transportation charges paid by the Buyer.

(5) Product Liability, Recall. Seller agrees to indemnify
the Buyer from and against any and all claims resulting
from, by the sale or recall, distribution, or use of any
of such goods. Seller agrees to defend at Seller’s own
expense on behalf of the Buyer any and all such claims,
but Buyer may, at its election, defend any and all such
claims at the expense of Seller.

(6) Insurance. Upon request from Buyer, Seller shall
furnish to Buyer an insurance carrier’s certificate
showing that Seller has adequate Workmen’s Compensation,
Public Liability (including products liability) and
Property Damage insurance coverage.

(7) Time of Delivery. Time is of the essence with
respect to the specified delivery date. Seller agrees to
compensate Buyer for any damages resulting from Seller’s
failure to deliver on time. In addition, Buyer reserves
the right to cancel all or any portion of this order which
is not delivered on time.

(8) Changes. Buyer shall have the right to make changes
as to design, specifications, destination, packaging, and
delivery schedules. Seller shall not make any changes
in the design or composition of any goods ordered
hereunder without prior written approval of the buyer
within 30 days from the date of receipt by the buyer of
the notification of changes.

(9) Premium Freight Charges. Premium Freight charges due
to errors in the description of freight or freight
terminology, routing, or overdue or partial shipments
(not including those authorized) will be charged back to
the Seller.

(10) Force Majeure. Buyer reserves the right to cancel
all or any part of this order which has not actually been
shipped by Seller, in the event Buyer’s business is
interrupted because of strikes, labor disturbances,
fires, acts of God, or any other cause beyond the
reasonable control of the Buyer.

(11) Taxes. The price stated on the face hereof shall be
deemed to include any and all taxes and other
governmental charges, now imposed or hereafter becoming
effective, upon the production, sale, shipment, or use of
the materials and Seller shall pay and discharge all such
taxes and charges without reimbursement from the Buyer.

(12) Confidentiality. All information contained in any
drawings, blueprints, specifications, samples, purchase
commitments, and other material submitted by Buyer to
Seller is exclusively proprietary to Buyer and shall be
returned to Buyer upon request or upon completion,
termination, or cancellation of this Purchase Order.
Seller shall keep all such information confidential and
shall not use such information in whole or in part for
its own benefit, or disclose such information in whole or
in part to any other party.

(13) Authorization. Only Purchase Orders issued and
approved by Buyer’s Purchasing Personnel are legally
binding.

(14) Cancellation. Buyer reserves the right to terminate
this order or any part thereof for its sole convenience
by giving the Seller written notice of same.

(15) Choice of Forum. The rights of all parties shall be
governed by the laws of the State of Wisconsin. The
parties hereby consent to personal jurisdiction in the
federal or state court located in Dane County, Wisconsin.

 

			
	QUALITY SYSTEM DOCUMENT 

Verify Latest Printed Revision Before Using
	 	T-LGL-HB0001 Rev. A

TomoTherapy Incorporated

 

Confidential
treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality
request. Omissions are designated as [  *  ]. A
complete version of this exhibit has been filed separately with the
Securities and Exchange Commission.

 

Amendment to Terms and Conditions of Purchase

Purchase Order No. 8754

Buyer: TomoTherapy Incorporated

Seller: ReMedPar, Inc.

Effective Date: February 7, 2007

 

This Amendment to Terms and Conditions of Purchase (this “Amendment”) supplements and amends the
Terms and Conditions of Purchase (the “Terms and Conditions”) contained in Purchase Order No. 8754
(the “Purchase Order”) dated as of December 28, 2006 by and between TomoTherapy Incorporated, a
Wisconsin corporation (“Buyer”), and ReMedPar, Inc., a Delaware corporation (“Seller”).

1.
Delivery Schedule. Seller shall deliver to Buyer the number of
[  *  ] detectors (“Dectors”) on or before the dates indicated on the Purchase Order.

2. Safety Stock Inventory. In order to support Seller in its efforts to build an adequate
inventory of Detectors, Buyer agreed to purchase up to
[  *  ] Detectors (“Safety Stock
Inventory”) on the terms provided in Paragraph 3, below. Transfer of ownership shall be at the time
of invoice to the Buyer with respect to the Safety Stock Inventory. Seller agrees to record and
track serial numbers for each Detector retained in Safety Stock Inventory. While Seller holds any
Safety Stock Inventory, it will maintain the insurance as provided for in the attached Evidence of
Property Insurance. Seller will provide to Buyer Safety Stock Inventory cycle counts, including
serial numbers and location, on a monthly basis. Buyer or its designee may physically audit the
Safety Stock Inventory at any time upon seven (7) days’ notice to Seller.

3. Payment for Safety Stock Inventory. Seller has submitted the invoices listed on Exhibit
A to Buyer for [  *  ] per Detector purchased by Seller during the previous month for the
Safety Stock Inventory. Buyer has paid or agrees to pay Seller within thirty (30) days after
Buyer’s receipt of such invoices.

4. Security Interest. In exchange for payment to Seller and to secure full performance of Seller’s
obligations hereunder, Seller hereby grants to Buyer, as Seller acquires the Security Stock
Inventory and Buyer pays the Seller for each Detector included therein, a security interest in the
entire Safety Stock Inventory and any accessions to the Detectors included therein (collectively,
the “Collateral”). Seller hereby authorizes Buyer, and shall cooperate fully with Buyer, to
execute and/or file documents, financing statements and amendments thereto as Buyer may deem
necessary to maintain and perfect its security interest in the Collateral. Seller shall pay all
filing fees and taxes associated with filing UCC financing statements to secure Buyer’s interest in
the Collateral. Seller agrees to take any action reasonably requested by Buyer to ensure the
attachment, perfection and first priority of, and the ability of Buyer to enforce, Buyer’s security
interest in the Collateral, including notifying Buyer of any other security interests in the
Collateral and their priority and cooperating with Buyer to obtain and

 

 

ADDITIONAL TERMS AND CONDITIONS OF PURCHASE

Page 2 of 3

execute subordinations of any security interests in the Collateral which are senior or equal to
Buyer’s security interest in priority. Seller represents and warrants as follows: (i) Seller’s
Tennessee organizational identification number is 0416324, (ii) Seller’s Delaware organizational
identification number is 3425364, and (iii) Seller’s place of business, chief executive office and
mailing address is 101 Old Stone Bridge Road, Goodlettsville, Tennessee 37072 (collectively,
“Seller’s Information”). Seller covenants to not change any of Seller’s Information without
providing prior notice to Buyer.

5.
Delivery Specifications. Seller has delivered and will deliver
Detectors to Buyer fully
modified, assembled, tested, crated, and labeled in accordance with specifications (“Delivery
Specifications”), such Delivery Specifications which were agreed upon in writing by Buyer and
Seller on or before December 1, 2006. Buyer may amend the Delivery Specifications in writing at
any time during the term of this Amendment, and Seller shall indicate written acceptance of
delivered Detectors, such acceptance not to be unreasonably withheld.

6. Test Documentation. Test documentation describing the tests to be performed by Seller on each
Detector, as agreed upon in writing by Buyer and Seller on or before December 1, 2006 (“Test
Documentation”), shall accompany each Detector shipped to Buyer. Buyer may amend the Test
Documentation in writing at any time during the term of this Amendment, and Seller shall indicate
written acceptance, such acceptance not to be unreasonably withheld.

7. Warranty. In Paragraph 2 of the Terms and Conditions (Warranties), item (ii) “are of new,
merchantable quality and free of defects of workmanship and materials” shall be replaced with the
following: “are of merchantable commercial quality, suitable for incorporation into the TomoTherapy
Hi-Art System”. Seller shall warrant the Detectors to be in compliance with the above upon
delivery and acceptance by the Buyer, Buyer may reject materials in accordance with Section 4 of
the Terms and Conditions not to exceed ninety (90) days from delivery date, notwithstanding Section
4 of Terms and Conditions, rejection of materials may only occur on the basis of defects deemed to
be inherent prior to modification.

8. Defective Detectors. If any Detector is not delivered to Buyer per the Delivery Specifications
and with the proper Test Documentation (“Defective Detector”), then within sixty (60) days of its
receipt, Buyer may return the Defective Detector to Seller for a replacement. Seller shall deliver
to Buyer a replacement within ten (10) days of its receipt of a Defective Detector. If Buyer
receives less than [  *  ] percent ([  *  ]%) of the Detectors indicated on the Purchase Order in
acceptable condition within a sixty (60)-day period, then Buyer may purchase Detectors from other
vendors until Seller remedies shipments to [  *  ] percent ([  *  ]%). If Buyer receives less than
[  *  ] percent ([  *  ]%) of the Detectors indicated on the Purchase Order in acceptable condition
within a sixty (60)-day period, then Buyer may terminate this Agreement. In the event of
termination, Seller shall refund Buyer within thirty (30) days
for all Defective Detectors. This
section supersedes Paragraph 7 (Time of Delivery) of the Terms and Conditions.

 

 

ADDITIONAL TERMS AND CONDITIONS OF PURCHASE

Page 3 of 3

9. Pricing and Order Adjustments. Seller may review market conditions and make reasonable price
adjustments of the Detector every [ * ] months. Also, every [ * ] months, Buyer may
adjust the number of Detectors to be ordered based on forecasted supply requirements.

10.
Term and Termination. The term of this Amendment shall be for a
period of [ * ] years
beginning on the “effective date” of this Amendment.

11. Counterparts; Facsimile. This Amendment may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument, provided that all such counterparts, in the aggregate, shall contain the signatures of
all parties. Signatures made by facsimile shall be deemed original signatures.

12. Effect of Amendment. All terms and provisions of the Purchase Order and the Terms and
Conditions contained therein shall continue in full force and effect except as expressly modified
in this Amendment.

Dated this
7th day of February, 2007.

	 	 	 	 	 	 	 
	Seller:	 	Buyer:
	 
	 	 	 	 	 	 
	ReMedPar, Inc.	 	TomoTherapy Incorporated
	 
	 	 	 	 	 	 
	By:
	 	/s/ Mark Graham	 	By:	 	/s/ Shawn D. Guse
	 

	 	 
	 	 	 	 
	 

	 	Mark Graham
	 	 	 	Shawn D. Guse
	 

	 	President and CEO
	 	 	 	Vice President, Secretary, and General Counselexv10w01

 

Exhibit 10.01

SILICON IMAGE, INC.

SALES COMPENSATION PLAN FOR VICE PRESIDENT OF WORLDWIDE SALES

FOR FISCAL YEAR 2007

     The current Vice President of Worldwide Sales (the “VP of Worldwide Sales”) of Silicon Image,
Inc. (the “Company”) will receive a cash payment based on the percentage of achievement of the
quota goal for the fiscal year ending December 31, 2007, as set forth in the table below.

	 	 	 	 	 	 	 	 	 	 	 
	Percent	 	Amount of	 	Percent of
	Achievement of	 	Cash Incentive	 	Incentive Target
	Quota Goal	 	Payment1	 	Amount
	 	70	%	 	$	119,000	 	 	 	70.00	%
	 	75	%	 	$	127,500	 	 	 	75.00	%
	 	80	%	 	$	136,000	 	 	 	80.00	%
	 	85	%	 	$	144,500	 	 	 	85.00	%
	 	90	%	 	$	153,000	 	 	 	90.00	%
	 	95	%	 	$	161,500	 	 	 	95.00	%
	 	100	%	 	$	170,000	 	 	 	100.00	%
	 	105	%	 	$	206,250	 	 	 	121.32	%
	 	110	%	 	$	264,250	 	 	 	155.44	%
	 	115	%	 	$	336,750	 	 	 	198.09	%
	 	120	%	 	$	409,250	 	 	 	240.74	%
	 	125	%	 	$	481,750	 	 	 	283.38	%
	 	130	%	 	$	554,250	 	 	 	326.03	%
	 	135	%	 	$	626,750	 	 	 	368.68	%
	 	140	%	 	$	699,250	 	 	 	411.32	%
	 	145	%	 	$	771,750	 	 	 	453.97	%
	 	150	%	 	$	844,250	 	 	 	496.62	%

 

			
	1	 	No amounts are payable if the VP of Worldwide
Sales achieves less than seventy percent (70%) of his quota goal. A cash
incentive payment in the amount of $119,000 is payable to the VP of Worldwide
Sales upon achievement of seventy percent (70%) of his quota goal. An
incremental cash incentive payment is payable to the VP of Worldwide Sales in
the amount of $7,250 for each incremental percentage point of his quota goal
achieved between seventy-one percent (71%) and one hundred and seven percent
(107%). Thereafter an incremental cash incentive payment is payable in the
amount of $14,500 for each incremental percentage point of his quota goal
achieved over one hundred and seven percent (107%). The amount of cash
incentive payment payable under this Plan is not capped. Actual amounts
between the breakpoints shown in the table above will be calculated on pro-rata
basis between the breakpoints.

 

 

TERMS AND CONDITIONS TO SALES COMPENSATION PLAN FOR VICE PRESIDENT OF

WORLDWIDE SALES FOR FISCAL YEAR 2007

	 	 	 	 	 
	1.

	 	Effect of Changes on
Prior Plans
	 	The terms and conditions of the Silicon Image, Inc. Sales Compensation Plan for Vice President of Worldwide Sales (this “Plan”)
supersede all previous communications regarding sales incentives for the employee in Vice President of Worldwide Sales (“VP, WW
Sales”) position at Silicon Image, Inc. (“Silicon Image” or the “Company”), including, but not limited to employment offer letters,
memos, and verbal or written communications from managers.
	 
	 	 	 	 
	2.

	 	Eligibility
	 	Employee in VP, WW Sales position (the “Participant”), on or after January 1, 2007, shall participate in this Plan unless
participation is not approved by the Compensation Committee of the Board of Directors. In order to participate, the covered employee
and manager must complete and sign the Sales Bonus Plan establishing employee’s quota. Amounts payable under this Plan are in
addition to, and not a part of base salary.
	 
	 	 	 	 
	3.

	 	Plan Objectives
	 	The purpose of this Plan is to attract, retain, motivate, and reward the VP, WW Sales relative to accomplishment of goals and
objectives in support of Silicon Image’s overall business plan and strategy. This Plan is designed to establish a direct link
between the achievement of Silicon Image’s aggressive sales targets and individual rewards. By design, this Plan will provide an
opportunity for market competitive rewards for achievement of performance targets, and above-market rewards for outstanding
performance that exceeds the target objectives.
	 
	 	 	 	 
	4.

	 	Compensation

Components
	 	Base Salary: Each year, the base salary range for this position will be reviewed based on market data and Company objectives. An
individual’s base salary may be reviewed and adjusted based on performance.
	 
	 	 	 	 
	 

	 	 	 	Bonus Compensation: Bonus compensation is the variable cash compensation opportunity that is paid for achievement of defined
performance objective. Target bonus will be confirmed annually. Bonus compensation for this position is composed of:
	 
	 	 	 	 
	 

	 	 	 	Quota Bonus
	 
	 	 	 	 
	5.

	 	Incentive

Compensation
	 	Threshold: Payout for quota bonus calculation begins at 70% percent of quota achieved.
	 

	 	Payout Determination
	 	Measures: Quota will be established based on Company revenue target for the fiscal year ending December 31, 2007.
	 
	 	 	 	 
	6.

	 	Performance

Targets/Quotas
	 	Business performance revenue quota for this Plan year will be established in conjunction with the Company’s fiscal year operating
plan. Revenue quota will be established by the CEO based on Company revenue target for the fiscal year ending December 31, 2007.

 

 

	 	 	 	 	 
	7.

	 	Quota Adjustments
	 	Silicon Image reserves the right to alter revenue quota at any time during the year to reflect its evaluation of windfall gain or
shortfall loss, based on any reason, including but not limited to region/account/sub region assignments, market change, billing
location change, production issues, backorder, price changes, product obsolescence, new products, change in position
responsibilities, etc. Changes to quotas will be communicated in writing to VP, WW Sales.
	 
	 	 	 	 
	8.

	 	Plan Administrators
	 	Annually, the Compensation Committee of the Board of Directors shall review and approve this Plan, including the terms and conditions
and plan structure.
	 
	 	 	 	 
	 

	 	 	 	The day-to-day administration oversight of this Plan will be the responsibility of the Vice President, Human Resources; CFO; and CEO
(the “Plan Administrators”). The Plan Administrators shall have authority, in their sole discretion, to construe, interpret and to
make recommendations to rules and procedures as deemed necessary for proper administration of this Plan. All requests for appeal
should be submitted in writing to the Plan Administrators. In their sole discretion, they will review and make a decision on appeals
within 10 business days from receipt unless extended by the Plan Administrators (such decision is final and binding on all persons).

	 	 	 	 	 	 	 
	9.

	 	Payment Calculation
and Frequency
	 	Quota Bonus
	 	Payment is earned at year end when annual
quotas are calculated and estimates are paid
quarterly.

	 	 	 	 	 
	 

	 	 	 	Payments made under this Plan will be made in the form of cash and will be paid within 75 days from the close of the fiscal year.
	 
	 	 	 	 
	10.

	 	Escrow
	 	Escrow is defined as Bonus earnings as a result of achievement greater than 100%. Escrow will be withheld by Silicon Image and paid
out at fiscal year end.
	 
	 	 	 	 
	11.

	 	Deficit Collection
	 	Quarterly and Fiscal Year end deficits will be offset against future earnings.
	 
	 	 	 	 
	12.

	 	Employment Terms And Conditions
	 	Payouts are not earned until the completion of the performance period. The performance period for Quota Bonus is January 1, 2007
through December 31, 2007. A pro-rated payout, based upon the period of time eligible for participation, may be granted, at the
Company’s sole discretion, under the following situations:

	 	•	 	Voluntary Termination
	 
	 	•	 	Reduction in Force
	 
	 	•	 	Position Elimination
	 
	 	•	 	Transfers into or out of Ineligible Position
	 
	 	•	 	Death of Participant

	 	 	 	 	 
	 

	 	 	 	If Participant is terminated for cause, then he will not be eligible for a pro-rated payout. Pro-rated payout will be calculated
based upon performance through the final quarter of eligibility. Participant terminating prior to the Company’s year-end is not
entitled to any payment under this Plan. Payment in these situations is at the sole discretion of the Plan Administrators.
	 
	 	 	 	 
	13.

	 	Draw
	 	An employee who is newly hired or transferred into the VP, WW Sales position during the fiscal year may receive a non-recoverable
draw for the first quarter in which they participate in this Plan. Otherwise, the VP, WW Sales will receive a recoverable draw.
Draws are subject to regular reconciliation and offsets against future payouts and deficits.

 

 

	 	 	 	 	 
	 

	 	 	 	The Plan Administrators at their discretion can stop draw payments at any time based upon review of actual and expected performance.
	 
	 	 	 	 
	14.

	 	Plan Modifications
	 	Silicon Image reserves the right to suspend, modify, cancel or terminate this Plan at any time. The Plan Administrators has the
right to revise, modify or adjust this Plan to ensure that it supports and meets the needs of the Participant and the goals and
objectives of Silicon Image.
	 
	 	 	 	 
	 

	 	 	 	Nothing in this Plan document should be construed to affect the “at-will” relationship between Silicon Image and any Plan
participant. This Plan does not constitute a contract of any kind and does not limit the right of the Company to terminate
Participant at any time and for any reason, with or without cause or prior notice, or to administer any other form of discipline, or
take any other management action. Any payment under this Plan is at the sole discretion of Silicon Image.
	 
	 	 	 	 
	 

	 	 	 	This Plan is considered to be confidential material. Distribution of this Plan and/or disclosure of this Plan’s provisions include
but is not limited to plan participant, Plan Administrators and those they determine need to have access.
	 
	 	 	 	 
	15.

	 	Crediting Policy
	 	For revenue to qualify towards achievement of quota, that revenue must be invoiced and recognized in
accordance with Company policy. For purposes of this plan, incentive compensation bonus may be
adjusted or not paid for as a result of certain identified revenue transactions. The Plan
Administrators shall communicate such transactions to the VP WW Sales as soon as reasonably possible.
Such transactions could be the result of a variety of business factors, which include but are not
limited to payment terms, prior history, competitive environment, unacceptable fees or margins, etc.
	 
	 	 	 	 
	 

	 	 	 	All, write-downs or returns for credit (an adjustment) associated with specific revenue recognized in
the current or past periods for which a bonus was paid will be applied to the bonus goal achievement
of all applicable sales people in the period when such adjustments are recorded.

	 	 	 	 	 	 	 
	16.

	 	Participant Sign Off
	 	PARTICIPANT:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	Name
	 	Date
	 
	 	 	 	 	 	 
	 

	 	 	 	Vice President of Worldwide Sales	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	SILICON IMAGE, INC.:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	Name
	 	Date
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title

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