Document:

Exhibit 10.20

 

 

MANUFACTURING LICENSE

 

AND TECHNOLOGY TRANSFER
AGREEMENT

 

January 28, 1991

 

 

MANUFACTURING LICENSE AND
TECHNOLOGY TRANSFER AGREEMENT

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Documentation

  	
  1

  
	
   

  	
  (b)

  	
  Exercise Date

  	
  1

  
	
   

  	
  (c)

  	
  Improvements

  	
  1

  
	
   

  	
  (d)

  	
  Licensed Copyrights

  	
  1

  
	
   

  	
  (e)

  	
  Licensed Know-How

  	
  2

  
	
   

  	
  (f)

  	
  Licensed Patents

  	
  2

  
	
   

  	
  (g)

  	
  Licensed Product

  	
  2

  
	
   

  	
  (h)

  	
  Licensed Rights

  	
  2

  
	
   

  	
  (i)

  	
  Medical Applications

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  License Grant

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Manufacturing License

  	
  2

  
	
   

  	
  (b)

  	
  Documentation

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Exercise Preconditions

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Insolvency, Bankruptcy

  	
  3

  
	
   

  	
  (b)

  	
  Inadequate Supply

  	
  3

  
	
   

  	
  (c)

  	
  Acquisition of Company

  	
  3

  
	
   

  	
  (d)

  	
  Breach of Purchase Agreement

  	
  3

  
	
   

  	
  (e)

  	
  Six (6) Months Notice

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Improvements

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Company Improvements

  	
  3

  
	
   

  	
  (b)

  	
  Licensee Improvements

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Royalties

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Amount of Payment

  	
  4

  
	
   

  	
  (b)

  	
  Payment Terms

  	
  4

  
	
   

  	
  (c)

  	
  Records

  	
  4

  
	
   

  	
  (d)

  	
  Taxes

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Duties of Company

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Delivery of Documentation

  	
  5

  
	
   

  	
  (b)

  	
  Training

  	
  5

  
	
   

  	
  (c)

  	
  Visitation Rights

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Rights Under Government Grants

  	
  5

  

 

i

 

	
   

  	
  (a)

  	
  Subcontract of Research and Development

  	
  5

  
	
   

  	
  (b)

  	
  Inclusion in Licensed Rights

  	
  5

  
	
   

  	
  (c)

  	
  Technology Transfer

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Subcontracting

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Indemnification

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Infringement of Proprietary Rights

  	
  6

  
	
   

  	
  (b)

  	
  Breach of Representations and Warranties

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Representations and Warranties

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Authority

  	
  7

  
	
   

  	
  (b)

  	
  No Conflicts

  	
  7

  
	
   

  	
  (c)

  	
  Ownership

  	
  7

  
	
   

  	
  (d)

  	
  Government Grants

  	
  7

  
	
   

  	
  (e)

  	
  Adequate Documentation

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  The Company’s Vendors

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  Limitation of Liability

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Termination

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Company’s Rights

  	
  8

  
	
   

  	
  (b)

  	
  Licensee’s Rights

  	
  8

  
	
   

  	
  (c)

  	
  Cure Period

  	
  8

  
	
   

  	
  (d)

  	
  Licensee’s Remedy Upon Termination

  	
  8

  
	
   

  	
  (e)

  	
  The Company’s Remedy Upon Termination

  	
  8

  
	
   

  	
  (f)

  	
  Rights of Third Parties

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  Termination of Exclusivity

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  Arbitration

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Procedure

  	
  9

  
	
   

  	
  (b)

  	
  Injunctive Relief

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  Escrow of Documentation

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Patent Protection

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Patent Enforcement

  	
  10

  
	
   

  	
  (b)

  	
  Maintenance

  	
  10

  
	
   

  	
  (c)

  	
  Notice of New Patents

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  Confidential Information

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Definition

  	
  10

  

 

ii

 

	
   

  	
  (b)

  	
  Nondisclosure Obligations

  	
  11

  
	
   

  	
  (c)

  	
  Survival

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  General Provisions

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Notices

  	
  11

  
	
   

  	
  (b)

  	
  Waiver

  	
  12

  
	
   

  	
  (c)

  	
  Severability

  	
  12

  
	
   

  	
  (d)

  	
  Choice of Law

  	
  12

  
	
   

  	
  (e)

  	
  Attorney’s Fees

  	
  12

  
	
   

  	
  (f)

  	
  Assignment

  	
  12

  
	
   

  	
  (g)

  	
  Export Control

  	
  12

  
	
   

  	
  (h)

  	
  Entire Agreement

  	
  12

  
	
   

  	
  (i)

  	
  Independent Contractor

  	
  12

  
	
   

  	
  (j)

  	
  Force Majeure

  	
  13

  
	
   

  	
  (k)

  	
  Section Headings

  	
  13

  

 

 

Exhibits

 

	
   

  	
  1

  	
  Licensed Product

  	
   

  

 

iii

 

MANUFACTURING
LICENSE AND TECHNOLOGY TRANSFER AGREEMENT

 

This Manufacturing License and Technology
Transfer Agreement (“Agreement”) is made and entered into this 28th day of
January, 1991, by and between Schonberg Radiation Corporation, a California
corporation having its principal place of business in Santa Clara, California (“Company”),
and Accuray Associates, a California limited partnership having its principal
place of business in Santa Clara, California (“Licensee”).

 

WHEREAS, the Company is engaged in the
business of designing, engineering, manufacturing and selling linear
accelerator products; and

 

WHEREAS, the Company has acquired extensive
know-how and related technical information with respect to such products; and

 

WHEREAS, the Company has developed and is the
exclusive owner of certain proprietary information, intellectual property
rights and know-how related to such products;

 

WHEREAS, Licensee wishes to manufacture,
modify, use, sell, reproduce and distribute products utilizing the Company’s
proprietary information, intellectual property rights, know-how and related
technical information; and

 

WHEREAS, Licensee desires to obtain from the
Company an exclusive, worldwide license, subject to field of use restrictions,
to use all of the Company’s intellectual property to manufacture, reproduce,
modify, use, sell and otherwise distribute its products; and

 

WHEREAS, Licensee wishes to acquire ownership
of certain technology which may be developed with funds obtained by the
Company through certain government grants.

 

NOW, THEREFORE, in consideration of the
mutual promises contained herein, the parties hereby agree as follows:

 

1.                                       Definitions.
As used herein:

 

(a)                                  Documentation.
The term “Documentation” shall mean any and all of the documents in the Company’s
possession relating to the manufacture, testing, use, sale or other
distribution of the Licensed Product.

 

(b)                                 Exercise Date. The
term “Exercise Date” shall mean the date on which any of the conditions set
forth in paragraph 3 (“Exercise Preconditions”) hereof are satisfied.

 

(c)                                  Improvements. The
term “Improvements” shall mean any improvements, enhancements, adaptations,
modifications or derivations, whether or not patentable.

 

(d)                                 Licensed Copyrights.
The term “Licensed Copyrights” means any registered or unregistered copyrights
of the Company as such exist on the Exercise Date that are relevant to, or may be
reasonably required for, or in connection with, the development, design, manufacture,
reproduction, testing, modification, application, use, sale or other
distribution of the

 

 

Licensed Product and the modification, translation, reproduction and
distribution of the Documentation.

 

(e)                                  Licensed Know-How.
The term “Licensed Know-How” shall mean any and all software, techniques,
methods, drawings, formulae, specifications, designs, toolings, skills,
concepts, trade secrets, vendor lists, technical and applications information
and know-how existing on the Exercise Date, and all documentation or written or
recorded data in the possession of the Company on the Exercise Date, whether
patented or not, that are relevant to, or may be reasonably required for,
or in connection with, the development, design, manufacture, reproduction,
modification, testing, application, use, sale or other distribution of the
Licensed Product.

 

(f)                                    Licensed Patents.
The term “Licensed Patents” means (i) any United States or foreign
applications filed by the Company which are based on the Licensed Know-How; (ii) any
foreign patent applications based upon said United States patent applications; (iii) any
additions, continuations, continuations-in-part, divisions, reissues or
extensions based thereon; and (iv) any United States or foreign patent or
other intellectual property rights obtained from any of said United States or
foreign patent applications.

 

(g)                                 Licensed Product.
The term “Licensed Product” shall mean the hardware product described on the
attached Exhibit 1 as modified or enhanced from time to time by (i) all
Improvements thereto developed by the Company prior to the Exercise Date and (ii) all
Improvements thereto developed by Licensee at any time.

 

(h)                                 Licensed Rights.
The term “Licensed Rights” shall mean the Company’s Licensed Know-How, Licensed
Patents and Licensed Copyrights.

 

(i)                                     Medical
Applications. The term “Medical Applications” shall mean any and all
applications involving x-ray and electron treatments which utilize stereotaxic
localization for the definition of target volumes including radiosurgery and
stereotaxic radiotherapy.

 

2.                                       License Grant.

 

(a)                                  Manufacturing
License. The Company grants to Licensee a perpetual, exclusive, worldwide
license, subject to the right to exercise such rights set forth in paragraph 3
(“Exercise Preconditions”) to use the Licensed Rights and Licensed Know-How
(including any Improvements thereto developed by the Company prior to the
Exercise Date) to manufacture (or have manufactured pursuant to paragraph 8 (“Subcontracting”)
hereof) Licensed Products for Medical Applications and an exclusive worldwide
license to use, sell or otherwise distribute, make Improvements to, and repair
such Licensed Products; provided, however, that the Company retains the right
to manufacture the Licensed Products for sale to Licensee pursuant to the terms
of the Purchase Agreement (as defined below) and all rights to the Licensed
Product for applications other than Medical Applications.

 

(b)                                 Documentation. The
Company grants to Licensee a perpetual, nonexclusive, worldwide license to use,
reproduce, modify, translate and distribute the Documentation pursuant to the
terms of this Agreement.

 

2

 

3.                                       Exercise
Preconditions. Licensee may only exercise its rights under paragraph 2
(“License Grant”) under any of the following circumstances:

 

(a)                                  Insolvency,
Bankruptcy. The insolvency of the Company or the commencement by or against
the Company of any case or proceeding under any bankruptcy, reorganization,
insolvency or moratorium law, or any other law or laws for the relief of
debtors which case or proceeding is not dismissed within thirty (30) days after
a petition is first filed against the Company.

 

(b)                                 Inadequate Supply.
The Company at any time becomes unwilling or unable to supply products under
that certain OEM Purchase Agreement dated January 28, 1991 between the
Company and Licensee (the “Purchase Agreement”) in a sufficient quantity to
meet Accuray’s requirements. The parties agree that the Company’s failure to
meet Accuray’s delivery requirements within 45 business days after the delivery
date scheduled pursuant to the terms of the Purchase Agreement shall be deemed
to be conclusive evidence of the Company’s inability to meet Licensee’s
requirements.

 

(c)                                  Acquisition of
Company. The Company is acquired through a merger, sale of all or
substantially all of its assets or a purchase of more than fifty percent of its
outstanding capital stock by a person or persons not affiliated with the
Company as of the date of this Agreement.

 

(d)                                 Breach of Purchase
Agreement. The Company is in material breach under the terms of the
Purchase Agreement.

 

(e)                                  Six (6) Months
Notice. Six (6) months after Licensee delivers written notice to the
Company that it intends to exercise its right to manufacture (or have manufactured)
the Licensed Product; provided, that in such event the Licensee shall purchase
from the Company at its cost all of the Company’s remaining
inventory related to the manufacture of the Licensed Products which is not
useable by the Company in the manufacture of the Company’s products for sale to
customers other than the Licensee.

 

4.                                       Improvements.

 

(a)                                  Company
Improvements. Subject to Licensee’s rights under paragraph 2 (“License
Grant”), the Company shall own the entire right, title and interest to all
Improvements developed by it. However, the Company shall, during the term
hereof, promptly disclose such Improvements to Licensee and upon the request of
Licensee, shall enter into good faith negotiations with Licensee for a license
to such Improvements which are developed after the Exercise Date.

 

(b)                                 Licensee
Improvements. Licensee shall own the entire right, title and interest to
Improvements developed by it. However, Licensee shall, during the term hereof,
promptly disclose such Improvements to the Company and, upon the request of the
Company, shall enter into good faith negotiations for a license to such
Improvements.

 

3

 

5.                                       Royalties.

 

(a)                                  Amount of Payment.
Licensee shall pay to the Company a royalty of $25,000 for each Licensed
Product manufactured by Licensee, or by a third party on Licensee’s behalf,
which is sold or otherwise distributed (a “Royalty Bearing Product”) until such
time as the Maximum Royalty Amount (as defined below) has been paid to the
Company under this Agreement; provided, however, that the Maximum Royalty
Amount shall be reduced by the full amount of any research and development
costs which are paid for by Licensee under the terms of the Purchase Agreement
in connection with the delivery of the Initial Units (as defined in the
Purchase Agreement). The Maximum Royalty Amount shall be calculated as
follows:  (i) if the Exercise Date occurs on or prior to the fifth
anniversary of the date hereof, the Maximum Royalty Amount shall be $2,500,000
and (ii) if the Exercise Date occurs after the fifth anniversary of the
date hereof, the Maximum Royalty Amount shall be $3,750,000, $1,500,000 of
which shall be paid by the Licensee in a lump sum payment upon delivery by the
Company of the Documentation. Upon payment in full for the royalties accrued
during such period, the licenses granted under this Agreement shall become
fully-paid and royalty-free.

 

(b)                                 Payment Terms. Royalties
shall be paid within twenty (20) business days after the end of each quarter
during which Licensee ships a Royalty Bearing Product to any user. Concurrently
with the royalty payment, Licensee shall submit to the Company a written report
for the preceding calendar quarter setting forth the total number of Royalty
Bearing Products shipped during the quarter, and a calculation of the total
royalties owed to the Company for such quarter.

 

(c)                                  Records. Licensee
shall keep accurate records of the Royalty Bearing Products for a minimum of
three (3) years from shipment in sufficient detail to enable the royalties
payable to the Company to be determined accurately. To enable the Company from
time to time to determine the accuracy of such records, Licensee shall permit
an independent certified public accountant, acceptable to both parties, to
inspect its pertinent records following reasonable notice and during reasonable
business hours, not more frequently than annually. To protect Licensee’s
confidential business information, the report of such accountant to the Company
shall be confined solely to statements regarding the accuracy of royalty
payments made to the Company by Licensee. Except as specified below, such
inspections shall be at the expense of the Company. If such inspection
discloses an underpayment of more than 5%, Licensee shall reimburse the Company
for the cost of such inspection and shall promptly pay the Company all
previously unpaid amounts plus interest thereon at the rate of eighteen percent
(18%) per annum or the highest interest rate permitted by law, whichever is
lower. The Company’s inspection rights pursuant to this paragraph shall
terminate two (2) years after the licenses granted under this Agreement
become fully-paid and royalty-free.

 

(d)                                 Taxes. Licensee
further agrees to pay any sales, use, excise, value added, or similar tax not
based on the Company’s income which the Company may incur to any state in
respect of this Agreement if the Company submits an invoice to Licensee on a
timely basis reflecting the amount of any such tax. If a resale certificate or
other certificates or document of exemption is required in order to exempt any
transaction under this Agreement from sales or use tax liability, Licensee will
promptly furnish such certificate or document to the Company.

 

4

 

6.                                       Duties of
Company.

 

(a)                                  Delivery of
Documentation. The Company agrees to furnish to Licensee all current
versions of Documentation then existing within ten (10) business days
after the Exercise Date; provided, however, that if the Licensee exercises its
rights under subparagraph 3(e) (“Six Months Notice”) above, the Company
will furnish the Documentation to Licensee at least sixty (60) days prior to
the Exercise Date. If Documentation is provided to Licensee prior to the
Exercise Date, the Company shall be required to provide any updates or
modifications to such Documentation which are made prior to the Exercise Date
within ten (10) business days after the Exercise Date.

 

(b)                                 Training. The
Company will furnish help to Licensee in the form of transfer of the
Licensed Rights and instruction in the manufacture of the Licensed Products by
providing free of charge, 500 person-hours of a qualified person’s time for
engineering know-how, manufacturing know-how, and service know-how, at times reasonably
requested by Licensee during the first eighteen (18) months after the Exercise
Date. In addition, during the first two (2) years after the Exercise Date,
Licensee shall have the right to purchase from the Company additional
consultation services at the Company’s standard engineering, manufacturing or
service consultant rate in effect at the time of the request. At Licensee’s
request, the Company will provide this training at Licensee’s premises,
provided that Licensee will pay all reasonable transportation and living
expenses for training at any facility which is more than fifty (50) miles from
the Company’s principal place of business.

 

(c)                                  Visitation Rights.
Upon reasonable advance notice during the first two (2) years after the
Exercise Date and provided that Licensee’s manufacturing license under
paragraph 2 (“License Grant”) remains in effect, the Company shall allow
Licensee’s personnel to visit the Company’s place of business and discuss and
inspect the Company’s method of manufacturing the Licensed Product and related
matters concerning the technology transferred to Licensee hereunder.

 

7.                                       Rights Under
Government Grants.

 

(a)                                  Subcontract of
Research and Development. The Company has submitted a proposal entitled “Computer
Mediated Stereotaxic Radiosurgery” to the Department of Health and Human
Services for a Phase II Small Business Innovation Research Grant (the “SBIR
Grant”). In addition, the Company is a Private Sector Participant along with
Stanford University in a project entitled “Computer Mediated Stereotaxic
Radiosurgery” which is being funded by a California Competitive Technology
Grant (the “CCT Grant”). If the Company is awarded the SBIR Grant, it will
subcontract to Licensee the maximum amount which it is entitled for research
and development to be conducted under the SBIR Grant. In addition, the Company
will use Licensee’s employees as consultants wherever possible and appropriate.
The Company also agrees to consult with Licensee in the selection of equipment
to be purchased with funds from the SBIR Grant and will transfer to Licensee,
upon completion of the research and development, all computer equipment and
related equipment purchased with the SBIR Grant, subject to the rights of the
U.S. Government to such equipment under the SBIR Grant.

 

(b)                                 Inclusion in
Licensed Rights. Any patent applications, copyrights, trade secrets or
other intellectual property rights which result from the research and
development under

 

5

 

the SBIR Grant and/or the CCT Grant and which directly relate to the
manufacture of the Licensed Products shall be included in the definition of
Licensed Rights.

 

(c)                                  Technology
Transfer. The Company will transfer and assign to Licensee all right, title
and interest which it acquires at any time in any patents, patent applications,
copyrights, trade secrets or other intellectual property which results from the
research and development conducted utilizing the SBIR Grant and/or the CCT
Grant and is not directly related to the manufacture of the Licensed Products
or other linear accelerator devices.

 

8.                                       Subcontracting.
Licensee shall have the right to contract with a third party to manufacture all
or any part of the Licensed Product for Licensee’s exclusive benefit so
long as such subcontractor agrees to the same obligations and limitations as
are imposed upon Licensee in the manufacture of the Licensed Product under this
Agreement, including the Company’s termination rights set forth in paragraph 13
(“Termination”) hereof; provided, however, that if Licensee has exercised its
rights under Paragraph 2 (“License Grant”) pursuant to Paragraph 3(c) (“Acquisition
of Company”) or Paragraph 3(e) (“Six (6) Months Notice”), Licensee
shall not be entitled, without the prior written consent of the Company, to use
any subcontractor to manufacture the Licensed Products which manufactures
X-Band linear accelerators for the industrial market. Licensee agrees that a
breach by its subcontractor of the obligations and limitations of this
Agreement shall be deemed to be a breach by Licensee under this Agreement.

 

9.                                       Indemnification.

 

(a)                                  Infringement of
Proprietary Rights. In the event that a third party makes any claim, which
the Licensee reasonably believes to be valid, that (i) the manufacture,
reproduction, use, sale or other distribution of the Licensed Product or any part or
component thereof, and/or (ii) the use, reproduction or distribution of
the Documentation infringes, violates or misappropriates the intellectual
property rights of any third party, the Company will use its best efforts to
modify the design of the Licensed Product at no cost to the Licensee so that is
no longer infringing and continues to comply with the Specifications in all
materials respects; provided, however, that this obligation will not cover any
claim that the Licensed Product infringes any third party’s rights as used in
combination with any software or hardware not supplied by the Company, if that
claim could have been avoided by the use of the Licensed Product alone or with
other software or hardware. In the event that the Company is unable, after
using its best efforts, to modify the design of the Licensed Product so that it
is no longer infringing, Licensee shall be entitled to offset against any
portion of the Maximum Royalty Amount which remained unpaid as of the date on
which Licensee gives the Company notice of the third party claim, any royalties
or lump sum payments made by Licensee to the party claiming that the Licensed
Product infringes its intellectual property rights.

 

(b)                                 Breach of
Representations and Warranties. The Company agrees to indemnify and hold
Licensee and its affiliates harmless from any loss, cost, damage or expense
(collectively a “Loss”) suffered by Licensee and/or its affiliates to the
extent such Loss arises from a breach of the Company’s representations and
warranties contained in Section 10 (“Representations and Warranties”) of
this Agreement.

 

6

 

10.                                 Representations and
Warranties.

 

(a)                                  Authority. Each
party represents and warrants that:  (i) it
has the right and authority to enter into this Agreement and to perform its
obligations under this Agreement and (ii) this Agreement is a valid and
binding obligation of such party, enforceable in accordance with its terms,
except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other laws of general application relating to or affecting
enforcement of creditors’ rights and rules or laws concerning equitable
remedies.

 

(b)                                 No Conflicts. The
Company represents and warrants that the execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby will not
violate or conflict with or constitute a material default under any agreement,
license or other instrument to which the Company is a party or by which it is
bound. The Company further represents and warrants that it has not granted to
any third party any rights or licenses to the Licensed Rights, or any portion
thereof, for Medical Applications.

 

(c)                                  Ownership. The
Company represents and warrants that it is the owner and holder, or licensee,
of the Licensed Rights, that it has the authority to grant a license thereto,
and that it has no knowledge of any facts which might lead to a claim of infringement
of any patent, copyright, trade secret or other proprietary rights of any third
party as a result of this Agreement or any acts contemplated by this Agreement.

 

(d)                                 Government Grants.
The Company will use its best efforts to obtain the SBIR Grant and shall take
all actions which are necessary and proper to limit, to the extent possible,
the rights of any third party, including any governmental agency, in the
technology developed pursuant to such grant.

 

(e)                                  Adequate
Documentation. The Company represents and warrants that the Documentation
delivered in accordance with subparagraph 6(a) (“Delivery of Documentation”)
is in accordance with good commercial practice and is sufficient in detail to
enable the Company to manufacture the Licensed Product as it exists on the
Exercise Date.

 

11.                                 The Company’s
Vendors. The Company has no contracts, agreements, understandings or
arrangements of any kind with any of its vendors which prevent, or will
prevent, Licensee from buying directly from any such vendor any standard
commercial parts or assemblies necessary to assemble the Licensed Products. The
Company will furnish its vendor list to Licensee within ten (10) business
days following the Exercise Date; provided, however, that if the Licensee
exercises its rights under paragraph 3(e) (“Six Months Notice”) above, the
Company shall provide such list to Licensee sixty (60) days prior to the
Exercise Date.

 

12.                                 Limitation of
Liability. NEITHER LICENSEE NOR THE COMPANY SHALL BE LIABLE TO THE OTHER
PARTY UNDER ANY CIRCUMSTANCES FOR ANY LOST REVENUE, LOST PROFITS OR OTHER
SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES UNDER ANY LEGAL THEORY,
EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

7

 

13.                                 Termination.

 

(a)                                  Company’s Rights.
The Company shall have the right to terminate this Agreement and to terminate
its further obligations hereunder upon the occurrence of any of the following
events (subject to Licensee’s ability to cure or remedy such event as described
in subparagraph 13(c) (“Cure Period”):

 

(i)                                     A material default
by Licensee under any provision of this Agreement; or

 

(ii)                                  The commencement by
or against Licensee of a case or proceeding under any bankruptcy,
reorganization, insolvency or moratorium law or any other law or laws for the
relief of creditors, which case or proceeding is not dismissed within thirty
(30) days after the first petition is filed; or

 

(iii)                               Cessation of all or
substantially all of its Licensee’s business operations at any time after July 1,
1991, unless such operations are continued by a successor or assign under
subparagraph 19(f) (“Assignment”) below; or

 

(iv)                              The eighth anniversary of
the date hereof if the Licensee has not exercised its rights under Paragraph 2
hereof (“License Grant”) prior to such date.

 

(b)                                 Licensee’s Rights.
Licensee shall have the right to terminate this Agreement and to terminate its
further obligations hereunder upon the occurrence of a material default by the
Company under Section 6 (“Duties of the Company”) or Section 10 (“Representations
and Warranties”) of this Agreement (subject to the Company’s ability to cure or
remedy such event as described in subparagraph 13(c) (“Cure Period”)
below).

 

(c)                                  Cure Period. Upon
the occurrence of any event entitling a party to terminate this Agreement and
its further obligations under this Agreement, and if such party wishes to
terminate its further obligations under the Agreement, the party shall send
notice of termination, specifying the nature of the default, to the other party
and shall permit at least thirty (30) days following receipt of such notice to
enable the other party to cure the problem. Failure to cure the problem shall
result in termination without further notice by the notifying party, unless
such notifying party extends the cure period by written notice.

 

(d)                                 Licensee’s Remedy
Upon Termination. Upon Licensee’s termination of this Agreement, Licensee’s
sole and exclusive remedy hereunder shall be the receipt of a perpetual right
to manufacture, have manufactured (pursuant to Paragraph 8 (“Subcontracting”)),
make Improvements to repair, sell or otherwise distribute the Licensed Product,
to use, reproduce, modify and distribute the Documentation and to use the
Licensed Rights and Licensed Know-How without any additional payments to the
Company, other than royalty payments owed to the Company for Licensed Products
manufactured prior to termination, regardless of whether such Licensed Products
have been shipped to a user prior to termination, which shall be paid within
twenty (20) days after the end of the quarter in which the Licensed Products
are shipped to a user.

 

(e)                                  The Company’s
Remedy Upon Termination. Upon the Company’s termination of this Agreement,
Licensee shall immediately cease using the Licensed Rights and shall deliver a
certificate to the Company by a duly authorized representative of Licensee
stating

 

8

 

that it no longer has any right to use the Licensed Rights of the
Company or to manufacture or have manufactured the Licensed Product, and that
the original and all copies of any information furnished by the Company
hereunder have either been destroyed or returned to the Company; provided,
however, that Licensee shall have the right to dispose of its inventory of the
Licensed Product manufactured prior to the effective date of termination
conditioned upon payment of the royalties set forth in Paragraph 5 (“Royalties”)
hereof. Licensee shall have the right to continue to lease Licensed Products
which were being leased to customers at the time of termination.

 

(f)                                    Rights of Third
Parties. Any termination of this Agreement shall not in any way affect the
right of prior recipients of the Licensed Products from continuing to use such
products after such termination.

 

14.                                 Termination of
Exclusivity. If the Licensee has not sold or otherwise distributed a
minimum of thirty (30) systems incorporating Royalty Bearing Products (whether
manufactured pursuant to the terms of this Agreement or purchased pursuant to
the terms of the Purchase Agreement) (“Licensee Systems”) prior to March 31,
1997, the manufacturing license granted in subparagraph 2(a) (“Manufacturing
License”) above shall become non-exclusive; provided, however, that in lieu of
losing its exclusive rights under this Agreement, Licensee may, at its option,
elect to make a cash payment to the Company in an amount equal to $25,000
multiplied by the difference between thirty (30) and the number of Licensee
Systems which Licensee has sold or otherwise distributed, which payment shall
be credited in full against the Maximum Royalty Amount. Thereafter, the
manufacturing license shall remain exclusive provided that in each successive
twelve (12) month period, until the Maximum Royalty Amount is paid, Licensee sells
or otherwise distributes at least twenty (20) Licensee Systems.

 

15.                                 Arbitration.

 

(a)                                  Procedure. Except
as provided in subparagraph (b) (“Injunctive Relief”) below, any
controversy or claim arising out of or related to this Agreement, or the breach
hereof, will be settled by arbitration before one arbitrator in Santa Clara
County, California, in accordance with the Commercial Arbitration Rules of
the American Arbitration Association. Judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof. The
arbitration hearing will commence within ninety (90) days after appointment of
the arbitrator. Unless the arbitrator finds that exceptional circumstances
justify delay, the hearing will be completed and an award will be rendered in
writing within ninety (90) days after commencement of the hearing. The
arbitrator may include in the award the prevailing party’s costs of
arbitration and reasonable fees of attorneys, accountants and other
professionals connected with the arbitration.

 

(b)                                 Injunctive Relief.
Either party shall have the right to seek and obtain preliminary and/or final
injunctive relief in any court of competent jurisdiction for any dispute
relating to the actual or threatened violation of its proprietary rights or any
unauthorized use of the Licensed Rights.

 

16.                                 Escrow of
Documentation. The Company agrees to place in escrow (the “Escrow”) with an
independent third party escrow agent reasonably acceptable to the Licensee (the
“Escrow Agent”) within ninety (90) days of the date on which the Licensee
obtains financing in the amount of at least $1,700,000, one copy of the
Documentation as it exists on that date.

 

9

 

After the Company has delivered the first Initial Unit (as defined in
the Purchase Agreement), the Documentation in the Escrow shall be revised or
replaced to reflect the as built design requirements of the technology to be
provided to the Licensee. In addition, the Company agrees to update the Documentation
contained in the Escrow to reflect any Improvements and other modifications to
the Licensed Product once each calendar year until the Exercise Date. The
agreement between the Company, the Licensee and the Escrow Agent shall provide
for the release of the Documentation at the request of the Licensee at any time
on or after the date on which the Company is required to deliver the
Documentation in accordance with subparagraph 6(a) (“Delivery of
Documentation”) of this Agreement. All costs and expenses related to
establishing and maintaining the Escrow shall be borne by the Licensee.

 

17.                                 Patent Protection.

 

(a)                                  Patent Enforcement. If the Company fails to bring and
diligently prosecute suits for infringement of the Licensed Patents within
sixty (60) days after a written request by Licensee to bring such action;
Licensee shall have a right to bring a suit for infringement of the Licensed
Patents in its own name and at its own expense if Licensee can reasonably
demonstrate that such infringements have had or will have an adverse impact on
the business being exploited by Licensee under the licenses granted herein. If
an infringement suit is brought by Licensee under this paragraph, Licensee
shall be entitled to retain all costs and damages awarded.

 

(b)                                 Maintenance. The
Company shall pay all maintenance fees required under any law or regulation to
maintain the enforceability of the Licensed Patents during the term of this
Agreement. If the Company decides not to pay any such maintenance fees, it
shall provide Licensee with written notice of such intention within a
sufficient period of time for Licensee, if it so elects, to pay such
maintenance fees. Any fee paid by Licensee under this paragraph shall be offset
against its royalty obligations under Section 5 (“Royalties”).

 

(c)                                  Notice of New
Patents. The Company shall give Licensee prompt written notice of any
patent applications filed and patents issued subsequent to the date hereof
which fall within the scope of Licensed Patents.

 

18.                                 Confidential
Information.

 

(a)                                  Definition. “Confidential
Information” means any information, technical data, or know-how, related to any
aspect of either party’s business, including, but not limited to, research,
products, proposals, software, services, development, inventions, processes,
designs, drawings, engineering, marketing, customer lists, vendor lists and
finances, which is disclosed by one party to the other, either directly or
indirectly, in writing, orally or by drawings, plans or inspection of products,
materials, parts or equipment, provided that any Confidential Information
disclosed orally or visually must be reduced to writing within ten (10) days
and delivered to the receiving party, and all Confidential Information, other
than that given orally, must be marked “Confidential.”  “Confidential Information” does not include
any such information, technical data, or know-how which:

 

(i)                                     is already or
otherwise becomes publicly known, other than as a result of any action or
inaction of the receiving party;

 

10

 

(ii)                                  is in the receiving
party’s possession prior to disclosure by the disclosing party as can be shown
by the receiving party’s files and records immediately prior to disclosure;

 

(iii)                               is approved for release
by written authorization of the disclosing party;

 

(iv)                              is required to be
disclosed by law or competent governmental authority;

 

(v)                                 is in the receiving
party’s possession as a result of disclosure by a third party who did not
violate any restrictions on disclosure in connection therewith; or

 

(vi)                              is independently
developed by the disclosing party without any reliance on the Confidential
Information of the other party, as can be shown by the disclosing party’s files
and records immediately prior to the disclosure.

 

(b)                                 Nondisclosure
Obligations. Each party agrees to protect the confidentiality of all
Confidential Information of the other party, and to take all reasonable steps
to prevent unauthorized disclosure or use of the Confidential Information of
the other party and to prevent it from falling into the public domain or the
possession of unauthorized persons. Each party agrees not to disclose any
Confidential Information of the other party to third parties (other than as
expressly provided herein or in the Purchase Agreement), and to disclose to its
employees, contractors, consultants or sublicensees only such Confidential
Information of the other party as is necessary to each person’s
responsibilities in performing pursuant to the provisions of this Agreement or
the Purchase Agreement, and then only if such person is bound by a
confidentiality agreement containing terms substantially similar to those
contained in this Section 18 (“Confidential Information”). Each party
shall promptly advise the other party of any misappropriation or misuse by any
person of any Confidential Information of such other party.

 

(c)                                  Survival. The
provisions of this Section 18 (“Confidential Information”) shall survive
the termination or cancellation of this Agreement for a period ending ten (10) years
from the date first above written, and shall apply with equal force to any
Confidential Information of either party acquired by the other prior to the
date of this Agreement.

 

19.                                 General Provisions.

 

(a)                                  Notices. All
notices and requests required or authorized by this Agreement shall be given in
writing and shall be conveyed by personal delivery or by certified mail, return
receipt requested, addressed to the other party as designated below. The notice
shall be deemed to have been given upon personal delivery or three (3) days
after deposit in the mail. Notices to Licensee shall be addressed as follows:

 

Accuray Associates

c/o Accuray Incorporated

3300 Keller Street, Building 101 

Santa Clara, CA 95054

Attn:  President

 

11

 

Notices to the Company shall be addressed as follows:

 

Schonberg Radiation Corporation 

3300 Keller Street, Building 101 

Santa Clara, CA 95054

Attn:  President

 

(b)                                 Waiver. The
failure of either party at any time to require performance by the other party
of any provision hereof shall not affect in any way the full right to require
such performance at any time thereafter; nor shall the waiver by either party
of a breach of any provision hereof be taken or held to be a waiver of the
provision itself.

 

(c)                                  Severability. If
any term, provision, covenant or condition of this Agreement is held invalid or
unenforceable for any reason, the remainder of the provisions shall continue in
full force and effect, and the parties agree to substitute a valid provision
with the same intent and economic effect.

 

(d)                                 Choice of Law. The
validity, interpretation, and performance of this Agreement shall be controlled
by, and construed under, the laws of the State of California, without giving
effect to the principles of conflict of laws.

 

(e)                                  Attorney’s Fees.
If any dispute arises between the parties with respect to the matters covered
by this Agreement which leads to a proceeding to resolve such dispute, the
prevailing party in such proceeding shall be entitled to receive its attorneys’
fees and out-of-pocket costs incurred in connection with such proceeding, in
addition to any other relief it may be awarded.

 

(f)                                    Assignment. Neither
party shall assign any rights or obligations hereunder without the prior
written consent of the other party, except that Licensee may assign its
rights and obligations to a third party pursuant to a merger, sale of all or
substantially all of Licensee’s assets, or other reorganization (including, but
not limited to, a reorganization of Licensee into a corporation) provided that
such third party agrees in writing to assume all of Licensee’s obligations
hereunder and to be bound by all of the restrictions contained herein. Subject
to the above restrictions on assignment, this Agreement shall inure to the
benefit of and bind the successors and assigns of the parties.

 

(g)                                 Export Control.
Licensee agrees that it will not re-export from the United States any of the
Licensed Product, Licensed Rights or Documentation in any form, without the
prior written consent of any agency of the Government of the United States,
where such consent is necessary.

 

(h)                                 Entire Agreement.
This Agreement and the Purchase Agreement contain the entire understanding of
the parties with respect to the matters contained herein and therein. There are
no promises, covenants, or undertakings other than those expressly set forth
herein or therein. This Agreement may not be modified except by a writing
of even date herewith or subsequent hereto signed by authorized representatives
of both parties.

 

(i)                                     Independent
Contractor. The relationship between the Company and Licensee shall be that
of independent contractors. Nothing contained herein shall be construed to

 

12

 

imply a joint venture, principal or agent relationship, or other joint
relationship, and neither party shall have the rights, power or authority to
create any obligation, express or implied, on behalf of the other.

 

(j)                                     Force Majeure.
Neither party shall be liable hereunder by reason of any failure or delay in
the performance of its obligations hereunder (except for the payment of money)
on the account of fire, flood, earthquake or other casualty, labor disputes,
shortages, riots, insurrections, acts of God, war or any other cause which is
beyond the reasonable control of such party; provided, however, that any delay
as a result of a cause specified under this paragraph which continues for a
period of more than ninety (90) days shall entitle the other party to terminate
the Agreement in accordance with Section 13 (“Termination”).

 

(k)                                  Section Headings.
The headings used in this Agreement are for convenience of reference only and
shall not be interpreted or construed to modify or alter any of the terms hereof.

 

13

 

IN WITNESS WHEREOF, the parties hereto cause
this Agreement to be signed by their duly designated representatives.

 

	
  COMPANY:

  	
  LICENSEE:

  
	
   

  	
   

  
	
  SCHONBERG RADIATION

  	
  ACCURAY ASSOCIATES

  
	
  CORPORATION

  	
   

  
	
   

  	
  By:

  	
  Accuray Incorporated, General

  
	
   

  	
   

  	
  Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Russell G. Schonberg

  	
   

  	
  By:

  	
  /s/ Joseph G. Depp

  	
   

  
	
  (

  	
  Authorized signatory)

  	
  (

  	
  authorized Signatory)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Printed Name:

  	
  Russell G. Schonberg

  	
   

  	
  Printed Name:

  	
  Joseph G. Depp

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  CEO

  	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  1/30/91

  	
   

  	
  Date:

  	
  1/30/91

  	
   

  
											

 

14

 

AMENDMENT

 

Made and entered into this 15th day of April,
1996, by and between SCHONBERG RESEARCH CORPORATION, a California corporation,
the name of which was previously Schonberg Radiation Corporation, having its
principal place of business at 3300 Keller Street, Building #101, Santa Clara,
California 95054 (sometimes called “SRC” or “Company”), and ACCURAY
INCORPORATED, a California corporation which was the general partner in and is
the successor to Accuray Associates, a California limited partnership, having
its principal office at 570 Del Rey Avenue, Sunnyvale, California 94087
(sometimes called “Accuray,” “Buyer” or “Licensee”).

 

The agreements between the parties which are
amended hereby are:

 

Manufacturing License and Technology Transfer
Agreement dated January 28, 1991 between Schonberg Radiation Corporation
and Accuray Associates (hereinafter called the “License”) and,

 

OEM Purchase Agreement between Schonberg Radiation
Corporation and Accuray Associates dated January 28, 1991 (hereinafter
called the “Purchase Agreement.”)

 

The License and the Purchase Agreement are sometimes referred to herein
as the “Agreements.”  Initially
capitalized terms herein are intended to have the meanings given them in the
Agreements.

 

RECITALS

 

Under the Agreements, SRC has built (or is in
the process of building) six Licensed Products which have been (or are in the
process of being) incorporated into six frameless stereotactic radiosurgery
devices (variously called the “Neurotron 1000” or the “CyberKnife”) assembled
and sold to providers of medical treatment by Accuray.

 

Unforeseen difficulties have caused delays
and performance problems for the parties.

 

While their expectations have changed in some
respects, the parties nevertheless wish to maintain a business relationship
between them as described in the Agreements, but to amend the Agreements to be
consistent with their experience over the past five-plus years and with their
changed expectations.

 

 

AGREEMENT

 

In consideration of the foregoing, and of the
promises contained herein, the parties hereto, intending to be legally bound
hereby, agree as follows:

 

1.                                       In the first
paragraph on page 1 of both Agreements, “Schonberg Radiation Corporation”
is amended to read “Schonberg Research Corporation,” and “Accuray Associates, a
California limited partnership having its principal place of business in Santa
Clara, California” is amended to read “Accuray Incorporated, a California
corporation having its principal place of business in Sunnyvale, California.”

 

2.                                       Paragraph 3.2 of
the Purchase Agreement is amended and restated in its entirety to read as
follows:

 

3.2                                 Scope of Rights.
Subject to the terms and conditions of this Agreement, SRC hereby grants Buyer,
and Buyer accepts, the exclusive, worldwide right to distribute, install,
maintain and repair the Product for Medical Applications and the nonexclusive,
worldwide right to reproduce and distribute the Documentation (as defined
below). Buyer’s exclusive rights under this Agreements shall continue so long
as Buyer continues to have exclusive rights under the Manufacturing License and
Technology Transfer Agreement between SRC and Buyer dated January 28,
1991, as amended.

 

3.                                       Paragraph 2.(a) of
the License is amended and restated in its entirety to read as follows:

 

2.                                       License Grant

 

(a)                                  Manufacturing
License. The Company grants to Licensee a perpetual, exclusive, worldwide
license to use the Licensed Rights and Licensed Know-How (including any
Improvements thereto developed by the Company) to manufacture (or have
manufactured pursuant to paragraph 8 [“Subcontracting”] hereof) Licensed
Products for Medical Applications and a perpetual, exclusive worldwide license
to use, sell or otherwise distribute, make Improvements to, and repair such
Licensed Product; provided, however, that the Company retains all rights to the
Licensed Product for applications other than Medical Applications.

 

4.                                       Section 3
of the License is deleted in its entirety and replaced by the statement, “This section intentionally
omitted” so as to avoid renumbering subsequent sections.

 

5.                                       Paragraph 5.(a) of
the License is amended and restated in its entirety to read as follows:

 

5.                                       Royalties.

 

(a)                                  Amount of Payment.
Licensee shall pay to the Company a royalty of $25,000 for each Licensed
Product manufactured by Licensee, the Company, or by a third party on Licensee’s
behalf, after 1 April 1996 which is sold or otherwise distributed (a “Royalty
Bearing Product”) until such time as the Maximum Royalty Amount ($2,500,000)
has been paid to the Company under this Agreement; provided, however, that the
Maximum

 

 

Royalty Amount shall be reduced by the full
amount of any research and development costs which are paid for by Licensee
under the terms of the Purchase Agreement in connection with the delivery of
the Initial Units (as defined in the Purchase Agreement). Upon payment in full
of the Maximum Royalty Amount as so reduced, the licenses granted under this
Agreement shall become fully-paid and royalty-free.

 

6.                                       Paragraph 13.(a)(iv) of
the License is deleted in its entirety and replaced by the statement, “This
paragraph intentionally omitted” so as to avoid renumbering subsequent
paragraphs.

 

7.                                       Section 14.
of the License is amended and restated in its entirety to read as follows:

 

14.                                 Termination of
Exclusivity. The manufacturing license granted in subparagraph 2(a) (“Manufacturing
License”) shall become non-exclusive if Licensee fails to make cumulative total
royalty payments as shown below. All royalty payments made according to
paragraph 5 hereof shall be creditable against the cumulative minimum royalty
requirement; if such payments are less than the cumulative minimum royalty. Licensee
shall have the right to pay the difference and it shall be creditable against
future royalties due under paragraph 5.

 

	
  AS OF

  	
   

  	
  CUMULATIVE

  ROYALTY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31, 1997

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  June 30, 1997

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  September 30, 1997

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  December 31, 1997

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  March 31, 1998

  	
   

  	
  $

  	
  125,000

  	
   

  
	
  June 30, 1998

  	
   

  	
  $

  	
  150,000

  	
   

  
	
  September 30, 1998

  	
   

  	
  $

  	
  175,000

  	
   

  
	
  December 31, 1998

  	
   

  	
  $

  	
  200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31,
  1999

  	
   

  	
  $

  	
  225,000

  	
   

  
	
  June 30, 1999

  	
   

  	
  $

  	
  250,000

  	
   

  
	
  September 30, 1999

  	
   

  	
  $

  	
  275,000

  	
   

  
	
  December 31, 1999

  	
   

  	
  $

  	
  300,000

  	
   

  
	
  March 31, 2000

  	
   

  	
  $

  	
  325,000

  	
   

  
	
  June 30, 2000

  	
   

  	
  $

  	
  350,000

  	
   

  
	
  September 30, 2000

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  December 31, 2000

  	
   

  	
  $

  	
  400,000

  	
   

  
	
  March 31, 2001

  	
   

  	
  $

  	
  450,000

  	
   

  
	
  June 30, 2001

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  September 30, 2001

  	
   

  	
  $

  	
  550,000

  	
   

  
	
  December 31, 2001

  	
   

  	
  $

  	
  600,000

  	
   

  
						

 

2

 

8.                                       In paragraph
18.1 of the Purchase Agreement and in paragraph 19.(a) of the License, the
names and addresses of the parties are amended to read as follows:

 

Schonberg Research Corporation

3300 Keller Street, Bldg. #101

Santa Clara, CA 95054

 

Accuray Incorporated

570 Del Rey Avenue

Sunnyvale, CA 94087

 

9.                                       In the signature
blocks on page 15 of the License and on page 16 of the Purchase
Agreement, “SCHONBERG RADIATION CORPORATION” is amended to read “SCHONBERG
RESEARCH CORPORATION”, and “ACCURAY ASSOCIATES By:  Accuray Incorporated, General Partner” is
amended to read “ACCURAY INCORPORATED.”

 

10.                                 EXHIBIT 1 to the
License and EXHIBIT A to the Purchase Agreement are hereby amended and
restated in their entirety to read as follows:

 

EXHIBIT 1/EXHIBIT A

 

LICENSED
PRODUCT/PRODUCT

 

The Licensed Product/Product will consist of:

 

1.                                       A
6 MeV standing-wave X-band linear accelerator, with appropriate rf power
source, modulator, and supporting electronics.

 

2.                                       A
primary collimator to restrict the radiation field to a maximum of 60 mm
diameter at the treatment distance.

 

3.                                       A
dual dosimetry ion chamber system which will monitor the radiation exposure and
terminate the exposure upon delivering a predetermined amount of radiation.

 

4.                                       A
control system which can be interfaced to the Neurotron 1000 control system.

 

11.                                 Except as expressly
amended above, the Agreements shall remain in full force and effect, and the
parties shall be deemed to have substantially complied with their obligations
under the Agreements up to and including the date first above written.

 

3

 

IN WITNESS WHEREOF, the parties have caused
this Amendment to be signed and attested by their respective officers, duly
authorized thereunto, on the day and year first above written.

 

	
  Attest:

  	
  SCHONBERG RESEARCH CORPORATION

  
	
   

  	
   

  
	
  /s/ [Signature illegible]

  	
   

  	
  By:

  	
  /s/ Bruce G. Schonberg

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
  ACCURAY INCORPORATED

  
	
   

  	
   

  
	
   

  	
  /s/ Bruce Bowden

  	
   

  	
  By:

  	
  /s/ Donald Caddes

  
	
   

  	
  Secretary

  	
   

  	
  President

  
							

 

4

 

EXHIBIT 1

 

LICENSED
PRODUCT 

 

The Licensed Product will consist of:

 

1.                                       A 4 MeV
standing-wave X-Band linear accelerator, with appropriate rf power source,
modulator, and supporting electronics.

 

2.                                       A primary
collimator to restrict the radiation field to a maximum of 60 mm diameter at
the treatment distance.

 

3.                                       A dual dosimetry
ion chamber system which will monitor the radiation exposure and terminate the
exposure upon delivering a predetermined amount of radiation.

 

4.                                       A set of
secondary collimators providing circular field sizes, ranging from 5 mm to 35
mm in diameter.

 

5.                                       A control system
which can be interfaced to the Neurotron 1000 control system.

 

5

 

11 November 2002

 

Russell G. Schonberg

Schonberg Research Corporation 

P.O. Box S

Los Altos, CA 94022

 

Dear Russ:

 

This letter agreement amends agreements
between Schonberg Research Corporation, a California Corporation, the name of
which was previously Schonberg Radiation Corporation (“SRC” or “Company”) and
Accuray Incorporated, a California corporation, which was the general partner
in and is the successor to Accuray Associates, a California limited partnership
(“Accuray” or “Buyer” or “Licensee”). The agreements, which were amended by an
amendment made and entered into on 15 April 1996 (the “Amendment”), are:

 

Manufacturing License and Technology Transfer
Agreement dated January 28, 1991 between Schonberg Radiation Corporation
and Accuray Associates (the “License”) and

 

OEM Purchase Agreement between Schonberg
Radiation Corporation and Accuray                                    Associates dated January 28,
1991 (the “Purchase Agreement”).

 

Initially capitalized terms herein are intended to have the meanings
given them in the License, the Purchase Agreement, and the Amendment.

 

The License, the Purchase Agreement, and the
Amendment are hereby amended as follows:

 

1.                                       Paragraph 10 of
the Purchase Agreement is deleted in its entirety and replaced by the
statement, “This paragraph intentionally omitted” so as to avoid renumbering subsequent
paragraphs.

 

2.                                       Paragraph 5(a) of
the License is amended and restated in its entirety to read as follows:

 

5.                                       Royalties

 

(a)                                  Amount of Payment.
For each Licensed Product manufactured by Licensee, the Company, or by a third
party on Licensee’s behalf which is sold or otherwise distributed (a “Royalty
Bearing Product”) after 1 April 1996, Licensee shall pay to the Company

 

6

 

$25,000, except that beginning 1 October 2002 the payment for the
first such Royalty Bearing Product each calendar quarter shall be $18,750,
until such time as the Maximum Royalty Amount ($2,500,000) has been paid to the
Company under this License; provided, however, that the Maximum Royalty Amount
shall be reduced by the full amount of any research and development costs which
are paid for by licensee under the terms of the Purchase Agreement in
connection with the delivery of the Initial Units (as defined in the Purchase
Agreement). Upon payment in full of the Maximum Royalty Amount as so reduced,
the licenses granted under this License shall become fully-paid and
royalty-free.

 

	
  Sincerely,

  
	
  Accuray Incorporated

  
	
   

  
	
   

  
	
  /s/ John M. Harland

  	
   

  
	
  John M. Harland

  
	
  Sr. Vice President & Chief
  Financial Officer

  
	
   

  
	
   

  
	
  AGREED:

  
	
   

  
	
  Schonberg Research Corporation

  
	
   

  
	
   

  
	
  /s/ Russell G. Schonberg

  	
   

  
	
  Russell G. Schonberg

  
	
  CEO

  

 

7Exhibit 10.49

 

Initials:  Forte TH

Accuray  CAR

 

 

PATENT AND TRADEMARK LICENSE AGREEMENT

 

THIS PATENT AND TRADEMARK LICENSE AGREEMENT (this “Agreement”)
is made and entered into effective as of November 29, 2006 (the “Effective
Date”) by and between Accuray Incorporated (hereinafter
referred to as “LICENSOR”), a California corporation, and Forte
Automation Systems, Inc. (hereinafter referred to as “LICENSEE”),
an Illinois corporation. LICENSOR and LICENSEE are hereafter occasionally
referred to as a “Party” or “Parties,” as indicated by the context.

 

RECITALS

 

A.                                   LICENSOR, in part through
an assignment from Mr. Toby D. Henderson (“Henderson”), is the owner of
U.S. Patent Application No. 11/129,122 (the “‘122 Application”), entitled “Robotic
Arm for Patient Positioning Assembly,” filed May 13, 2005, which relates
to a robotic patient positioning system.

 

B.                                     LICENSOR is the
owner of Licensed Trademarks (as defined below) for use with Licensed Products
(as defined below).

 

C.                                     LICENSEE
desires to obtain certain license rights to the ‘122 Application and any and
all patents that issue therefrom and to the Licensed Trademarks from LICENSOR in
the Field of Use (as defined below) or in the event the Exclusive Manufacturing
Agreement (“Manufacturing Agreement”) effective November 29, 2006 between
LICENSOR and LICENSEE is terminated, and LICENSOR desires to grant certain
license rights to LICENSEE.

 

AGREEMENTS

 

Now, therefore, for valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and in consideration
of the covenants and agreements set forth herein, LICENSOR and LICENSEE
mutually agree as follows:

 

1.                                       Definitions. As used
herein, the following terms shall have the meanings set forth below:

 

“Agreement” has the meaning given in the Preamble
above.

 

“Confidential Information” means any and all
information concerning the Licensed Patent and Licensed Products, including but
not limited to techniques, sketches, drawings, models, inventions, know-how,
processes, apparatus, equipment, algorithms, software programs, software source
documents, design details, and specifications.

 

“Effective Date” has the meaning given in the
Preamble above.

 

1

 

“Field of Use” means (1) Procure
Treatment Centers, Inc. (“Procure”), or a substitute thereof in the
medical device arena, wherein the Licensed Products are incorporated into traditional
large scale proton therapy centers of an end customer, with multiple treatment
rooms and with a cost greater than seventy-five million dollars ($75,000,000) and
the patient positioning systems are not for any other type of resale by Procure
or the end customer of Procure, and (2) any other use to which the issued
claims of the Licensed Patent would apply to a robotic manipulator that is not
to be affixed to a patient positioning system by LICENSEE or any end user of
such manipulator.

 

“Licensed Patent” means each and all of the
following:  (a) the ‘122 Application
and foreign equivalents; (b) all patents maturing from a continuation,
division, reissue, or reexamination of the ‘122 Application or foreign
equivalents and (c) all patents maturing from a continuation-in-part or
foreign equivalents of the ‘122 Application, so long as Henderson is named as
an inventor on the patent that issues from the continuation-in-part or
foreign equivalents.

 

“Licensed Products” means any product which is
covered in whole or in part by one or more valid and unexpired claims of
the Licensed Patent issued in the country of manufacture, sale, importation or
use of the Licensed Product and/or the Licensed Trademarks.

 

“Licensed Territory” means theWorld.

 

“Licensed Trademarks” means the AccurayTM,
the Accuray logo, and the RobocouchTM trademarks.

 

“LICENSEE” has the meaning given in the
Preamble above.

 

“LICENSOR” has the meaning given in the
Preamble above.

 

2.                                       Grant of
Licenses.

 

2.1                                 LICENSOR hereby
grants to LICENSEE, subject to and consistent with the terms and conditions of Section 13
of the Manufacturing Agreement:

 

(a) 
for the Licensed Products shipped by LICENSEE hereunder and installed with
equipment supplied by Ion Beam Applications (IBA), an exclusive only as to
Procure, or a substitute thereof in the medical device arena, non-revocable, fully
paid up, royalty free, license, and privilege under the Licensed Patent in the
Licensed Territory to make, import, use, sell, have sold, distribute, have
distributed, have made (including manufacture by others for LICENSEE’s
benefit), and offer for sale the Licensed Products for the Field of Use;

 

(b) 
for the first 20 Licensed Products shipped by LICENSEE hereunder and not
installed with equipment supplied by IBA, an exclusive only as to Procure, or a
substitute thereof

 

2

 

in the medical device arena,
non-revocable, fully paid up, royalty free, license, and privilege under the
Licensed Patent in the Licensed Territory to make, import, use, sell, have
sold, distribute, have distributed, have made (including manufacture by others
for LICENSEE’s benefit), and offer for sale the Licensed Products for the Field
of Use;

 

(c) 
for 21 or more of the Licensed Products shipped by LICENSEE hereunder, and not
installed with equipment supplied by IBA, an exclusive only as to Procure, or a
substitute thereof in the medical device arena, non-revocable, royalty-based
license and privilege under the Licensed Patent in the Licensed Territory, to
make, import, use, sell, have sold, distribute, have distributed, have made
(including manufacture by others for LICENSEE’s benefit), and offer for sale
the Licensed Products for the Field of Use. The royalty under this section to
be 20% of LICENSEE’s actual cost of goods of the Licensed Products provided
hereunder, such cost of goods shall be disclosed by LICENSEE to LICENSOR within
30 days of the shipment of the 21st 
Licensed Product,

 

2.2                                 LICENSOR hereby
grants to LICENSEE, subject to and consistent with the terms and conditions of Section 13
of the Manufacturing Agreement between LICENSOR and LICENSEE, a non-exclusive,
fully paid up, royalty free, license, and privilege under the Licensed Trademarks
in the Licensed Territory to use the Licensed Trademarks for the Licensed
Products so long as LICENSEE has license under Section 2.1 above.

 

In
order that the use of the Licensed Trademarks may be effective, the
LICENSEE shall maintain in the Licensed Products’ manufacture or services
rendering, the same quality standard that LICENSEE uses in manufacturing the
Licensed Products for the LICENSOR under the Manufacturing Agreement. The
LICENSEE’s use of the Licensed Trademarks shall be conducted in a commercially
reasonable manner, which maintains the associated goodwill, and reputation,
which has been attributed to LICENSOR by its consumers and the public. All
related advertising, promotional, and other related uses of the Licensed
Trademarks by the LICENSEE shall conform to the Guidelines.

 

2.3                                 All Licensed
Products for patient positioning systems will be sold by LICENSEE bearing
LICENSOR’s label, which includes the Licensed Trademarks. LICENSOR shall provide
the LICENSEE with written guidelines (the “Guidelines”), attached hereto as Exhibit A,
regarding the appearance and use by the LICENSEE of the Licensed Trademarks,
and the LICENSEE shall fully comply with any such Guidelines in all uses of the
Licensed Trademarks.

 

2.4                                 During the term
of this Agreement, LICENSEE acknowledges ownership of the Licensed Patent and
Licensed Trademarks in LICENSOR and will do nothing inconsistent with such
ownership or in denigration or tarnishment of same. LICENSEE recognizes

 

3

 

LICENSOR’s title in and to
the Licensed Patent and Licensed Trademarks and the validity thereof, and
LICENSEE will not, in any way, in any country, during the term of this
Agreement:

 

(a)                                  dispute or
impugn such title or the validity of the Licensed Patent and Licensed
Trademarks;

 

(b)                                 dispute or
impugn the right of LICENSOR to the Licensed Patent and Licensed Trademarks;

 

(c)                                  dispute or
impugn the right of LICENSOR to use the Licensed Patent and Licensed Trademarks;
or

 

(d)                                 do or suffer to
be done any act or thing which may in any way impair the right of LICENSOR
in and to the Licensed Patent and Licensed Trademarks or any registration
thereof.

 

2.5                                 LICENSOR may,
at a commercially reasonable time and with reasonable notice, carry out an
inspection of LICENSEE’s manufacturing facility or such other places of
productions owned by LICENSEE so that compliance with the quality standards (“Quality
Standards”) set by LICENSOR and attached hereto as Exhibit B may be
verified. Any such inspection shall be at the sole cost and expense of the
LICENSOR. Any inspection shall be subject to a confidentiality agreement between
LICENSOR and LICENSEE mutually agreeable to the Parties before any inspection may take
place.

 

3.                                       Records and
Accounting. LICENSEE shall keep accurate records and books
with respect to Licensed Products sold by LICENSEE, showing in sufficient
detail all facts necessary for determination of compliance with Section 2,
above. LICENSOR shall have the right, during the term of this Agreement, and
for a period of one (1) year thereafter, but no more frequently than
once each calendar year, to have such records and books examined at LICENSOR’s
expense by an independent public accountant appointed by LICENSOR. No
information gained by such audit may or shall be disclosed to LICENSOR or
any third party by any accountant at any time, other than that required to
verify whether the LICENSEE has complied with the restrictions under Section 2
of this Agreement.

 

4.                                       Infringement of
Licensed Rights.

 

4.1                                 Notice of
Infringement. If either Party becomes aware of any actual or
threatened infringement of a Licensed Patent, such Party shall promptly notify
the other Party in writing.

 

4.2                                 Patent
Infringement Actions. LICENSOR shall have the sole right, in its sole
discretion and at its expense, to prosecute any alleged infringement of the
Licensed Patent in

 

4

 

its own name and LICENSOR
shall be the sole beneficiary of any award or settlement resulting from the
prosecution of such an infringement action.

 

If
LICENSEE believes it is being damaged by an infringer in pursuit of the Field
of Use, LICENSOR agrees to consider in good faith whether or not to bring a
suit under the Licensed Patent, but at LICENSOR’s sole discretion. Notwithstanding
the foregoing, if LICENSEE can demonstrate that such alleged infringing action
is affecting LICENSEE’s market share in the Field of Use by more than 10%, then
LICENSOR will prosecute or LICENSOR will permit LICENSEE to prosecute the
alleged infringing action, and if the latter at LICENSEE’s own expense and for
its own benefit. LICENSEE will keep LICENSOR informed of all actions related to
the prosecution and will have no right to settle or diminish the Licensed
Patent in any way, without written authorization of LICENSOR. If a court of
competent jurisdiction deems LICENSOR to be a necessary and indispensable
party, then LICENSEE may add LICENSOR as a plaintiff in any suit brought with
respect to any such infringement in the Licensed Territory. The preceding
notwithstanding, the LICENSOR agrees to allow LICENSEE to assert its exclusive
rights against such third party infringer through correspondence demanding that
such third party infringer cease and desist from such infringing activity in
the Field of Use. LICENSEE shall provide to LICENSOR copies of all such
correspondence.

 

5.                                       Patents.

 

5.1                                 Prosecution of
Licensed Patent. LICENSOR shall at its own cost diligently
prosecute to grant all subsisting patent applications within the Licensed
Patent so as to attempt to secure the broadest patent coverage reasonably
obtainable consistent with the limitations of the prior art and shall maintain
all U.S. patents within the Licensed Patent in force for the full term thereof.

 

5.2                                 Patent Marking. LICENSEE
shall mark all Licensed Products sold by it under this Agreement and marketing
material associated therewith with the number of the Licensed Patent in
conformity with the provisions of the statutes relating to the marking of
patented devices in any nation(s) within the Licensed Territory where the
Licensed Patent is subsisting and in which the particular Licensed Products are
expected to be sold. If a number for the Licensed Patent is not available, LICENSEE
shall mark all Licensed Products and marketing material with “Patent Pending.”

 

6.                                       Representations,
Warranties, and Indemnification.

 

6.1                                 Incorporation. Each Party
represents and warrants to the other that it is a corporation, validly existing
and in good standing under the laws of the jurisdiction of its incorporation
and has the requisite corporate power and authority to enter into this
Agreement and perform its agreements and covenants to be performed
hereunder.

 

5

 

6.2                                 Authority. Each Party
represents and warrants to the other that the execution and delivery of this
Agreement by it and the performance by it of its covenants and agreements
hereunder have been duly authorized by all necessary corporate action and, when
executed and delivered by it, this Agreement shall constitute the valid and
legally binding agreement of it, enforceable against it in accordance with its
terms (except to the extent enforceability may be limited by bankruptcy,
insolvency or other equitable principles).

 

6.3                                 Ownership of
the Licensed Patent and Right to Convey. LICENSOR represents and
warrants that (a) to its knowledge, it is the owner of such right, title,
and interest in the Licensed Patent as necessary for it to have the right and
authority to grant the licenses granted in Section 2 above; and (b) it
has not executed any agreement or taken any other action in conflict herewith
or which may adversely affect LICENSEE’s rights under this Agreement.

 

6.4                                 Indemnification. LICENSEE
agrees to indemnify, defend, and hold LICENSOR, its affiliates, and their
respective officers, directors, employees and agents (collectively the “Indemnitees”)
harmless from and against any claim of any kind and will pay any costs, damages
and reasonable attorneys’ fees incurred or attributable to such claim arising
out of or related to the exercise of any rights granted LICENSEE under this
Agreement or the breach of this License by LICENSEE (except, in either case, to
the extent attributable to LICENSOR’s breach of this Agreement).

 

6.5                                 Nothing in this
Agreement shall be construed as LICENSOR providing:

 

(a)                                  a warranty or
representation as to the validity or scope of any Licensed Patent;

 

(b)                                 a warranty or
representation that anything made, used, sold, or otherwise disposed of under
the Licensed Patent in this Agreement is or will be free from infringement of
patents of third parties;

 

(c)                                  an obligation
to bring or prosecute actions or suits against third parties for infringement
of any patent; or

 

(d)                                 a grant by
implication, estoppel, or otherwise any licenses or rights under patents other
than Licensed Patent and Licensed Trademarks.

 

6.6                                 Products
Liability. LICENSEE ASSUMES ALL RESPONSIBILITY FOR THE
MANUFACTURE AND SALE OF THE LICENSED PRODUCTS. LICENSEE shall indemnify and
hold LICENSOR harmless from and against any loss that LICENSOR may incur,
suffer or be required to pay pursuant to any claim or any allegation that the
Licensed Products have caused death, bodily injury or property damage or loss. For
greater certainty, the foregoing indemnity will not apply if LICENSOR are found
to be grossly negligent or intentionally negligent.

 

6

 

6.7                                 Negation. LICENSOR
PROVIDES ALL RIGHTS GRANTED LICENSEE UNDER THIS AGREEMENT AS IS, AS AVAILABLE,
AND WITH ALL FAULTS. Among other things, LICENSOR disclaims any and all
warranties, whether express or implied, including but not limited to any
implied warranty of merchantability, of fitness for a particular purpose, of
title, of non-infringement or arising out of any course dealing.

 

6.8                                 No Direct
Liability. LICENSEE acknowledges and agrees that LICENSOR
shall have no liability for any special, consequential, lost profits,
expectation, punitive or other indirect damages in connection with any claim
arising out of or related to LICENSEE’s sale or supply of the Licensed Products
in the Licensed Territory in the Field of Use, including but not limited to
damages for loss of business profits and/or business interruption, whether
foreseeable or not, and whether grounded in tort (including negligence), strict
liability, contract, or otherwise, even if LICENSOR has been advised of the
possibility of such damages.

 

6.9                                 No Other
License or Obligation. This Agreement is a license only. There are
no other obligations upon LICENSOR. LICENSEE undertakes any and all obligations
related to selling and manufacturing the Licensed Products based on this
Agreement.

 

7.                                       Assignment. Neither Party
may assign or otherwise transfer this Agreement without the prior written
consent of the other Party, such consent not to be unreasonably withheld, except
that a Party may assign this Agreement, without the other Party’s consent,
to a successor or acquirer that is not a competitor of the other Party, as the
case may be, in connection with a merger or acquisition, or the sale of
all or substantially all of a Party’s assets or the sale of that portion of a
Party’s business to which this Agreement relates. Subject to the foregoing,
this Agreement will bind and inure to the benefit of the Parties’ permitted
successors and assigns. The ownership of the Licensed Patent may be freely
transferred by LICENSOR without LICENSEE’s consent; provided, however, that any
such transfer by LICENSOR shall be expressly subject to LICENSEE’s rights
granted in this Agreement, and that the transferee thereof shall be expressly
bound by the terms hereof.

 

8.                                       Term and
Termination.

 

8.1                                 Effective Date
and Term. The term of this Agreement shall commence on the
Effective Date and shall continue until LICENSEE has completed all of its
contractual obligations for the Licensed Product to the Field of Use, but not
to exceed the period when:

 

(1) the
last of the Licensed Patent has either lapsed or expired;

 

(2) all
of the claims of the Licensed Patent have been determined to be invalid or
unenforceable by a court of competent jurisdiction from whose decision no
appeal is or can be taken, whichever event shall occur first; or

 

7

 

(3) no
patent matures from the ‘122 Application, in which event all information of
confidential nature, including but not limited to specifications and drawings
relating to the Licensed Product, will be governed by Section 9 below
(Confidentiality).

 

8.2                                 Termination for
Material Breach. This Agreement, with respect to the Licensed
Trademarks, may be terminated by either Party at any time if any Party
breaches any material term of this Agreement; provided that the terminating Party
shall have given the other Party written notice of such breach (which shall identify
which provision is not complied with and shall give reasonable justification
therefor) and the other Party shall have failed or otherwise been unable to
cure same within thirty (30) days after receipt of such notice.

 

8.3                                 Other Grounds
for Termination. In addition to Section 8.2 above, LICENSOR may terminate
this Agreement, with respect to the Licensed Trademarks, for the following
offenses, provided that LICENSEE be given written notice of such offenses and LICENSEE
has failed or otherwise been unable to cure same within thirty (30) days
after receipt of such notice:

 

(a)                                  With respect to
the use of the Licensed Trademarks, LICENSEE, its employees or agents, become
the subject of any claim of violation of any law that may potentially
affect, in LICENSOR’s reasonable discretion and opinion, the “good will”
associated with the Licensed Trademarks, or which otherwise calls into question
LICENSOR’s reputation or that of LICENSOR’s goods and services or the Licensed
Products, including without limitation: if LICENSEE engages in unauthorized
uses of the Licensed Products;

 

(b)                                 With respect to
use of the Licensed Trademarks, LICENSEE does not maintain in the Licensed
Products’ sale or manufacture a quality standard equivalent to ISO 9001-2000;

 

It
is expressly agreed that LICENSOR’s reputation and goodwill is of utmost
importance to LICENSOR and termination with respect to the Licensed Trademarks on
these grounds is necessary to the protection thereof.

 

8.4                                 Orders and
Sales of Existing Licensed Products Following Termination. LICENSEE
shall have the right for a period of one hundred eighty (180) days
following any termination, to fill existing orders for Licensed Products placed
prior to the effective date of termination and to sell any inventory of
Licensed Products existing (either in a finished state or as work-in-process)
at the time of termination or notice of termination, whichever occurs first.

 

8.5                                 Bankruptcy,
Receivership. Notwithstanding the cure periods set forth in Sections 8.2
and 8.3 above, LICENSOR may terminate this Agreement immediately if
LICENSEE ceases or suspends doing business or becomes subject to any proceeding
under applicable liquidation, insolvency, bankruptcy, reorganization or similar
laws or LICENSEE makes a conveyance or assignment for the benefit of its
creditors.

 

8

 

8.6                                 Obligations
Incurred Prior to Breach. Any termination pursuant hereto shall not
relieve either Party of any obligation or liability accrued hereunder prior to
such termination nor rescind or give rise to any right to rescind anything done
or any payments made or other consideration given hereunder prior to the time
of such termination and shall not affect in any manner the rights of either Party
arising out of this Agreement prior to such termination.

 

8.7                                 Survival Upon
Termination. Sections 3, 4, 5.2, 6, 8.4, and 8.6 above,
this Section 8.7, and Section 9 below shall survive any termination
of this Agreement.

 

9.                                       Confidentiality.

 

9.1                                 Confidential
Information. All information disclosed by either Party to the
other Party related to the Licensed Products deemed to be Confidential Information
shall be governed by the Mutual Confidentiality Agreement signed by the Parties
and effective November 28, 2006.

 

9.2                                 Permitted
Disclosures of Confidential Information. Notwithstanding the
foregoing provisions, the Parties pursuant to this Agreement shall be entitled
to disclose Confidential Information of the other Party to the Field of Use
insofar as such disclosure is reasonably necessary to promote the sale or use
of products utilizing the Licensed Patents, provided that Disclosing Party has
a confidentiality agreement with Procure, such agreement having substantially
equivalent confidentiality obligations as provided herein.

 

Notice. Each Party
shall immediately give notice to the other Party of any unauthorized
disclosure, misuse, theft, or other loss of confidential information of that
other Party, whether inadvertent or otherwise, and take all reasonable and
appropriate steps that the other Party may request to minimize any
resulting adverse effects.

 

9.3                                 Survival of
Obligation of Confidentiality. The obligations set forth
in this Section 9 shall survive the modification, renewal, or termination
of this Agreement.

 

9

 

10.                                 Notices. All notices
required or permitted under this Agreement shall be in writing and if delivered
in person, effective immediately, if delivered by reputable national or
international overnight delivery service, effective 2 business days after
deposit with carrier, or if delivered by registered or certified mail, postage
prepaid with return receipt requested, effective 5 business days after deposit
with carrier. All communications will be sent to the addresses set forth below
or to such other address as may be specified by either Party in accordance
with this section.

 

If to LICENSOR:

 

Accuray Incorporated

Attention: 
Chief Operating Officer

1310 Chesapeake Terrace

Sunnyvale, CA 94089

 

Copy to:  General Counsel

 

If to LICENSEE:

 

Forte Automation Systems, Inc.

8155 Burden Road

Machesney Park, IL 61115

Attn:  Toby D. Henderson

 

Each notice, request or instruction shall bear the
date on which it is delivered if delivered personally, or the date on which it
is deposited with an express courier service.

 

11.                                 General
Provisions.

 

11.1                           Merger and
Integration. This Agreement and the Manufacturing Agreement represent
the entire understanding of the parties with respect to its subject matter and
supersedes all prior agreements, written or oral, concerning the subject matter
hereof, and may not be changed or modified in any regard except by an
instrument in writing and signed by duly authorized representatives of the
parties hereto. For Accuray, a duly authorized representative must be any of
the following:  CEO, CFO, COO or General
Counsel.

 

11.2                           Severability. It is
expressly agreed that if any term or provision of this Agreement is found to be
invalid or unenforceable in any jurisdiction, then such provision in such
jurisdiction shall be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of
any of the terms or provisions of this Agreement in any other jurisdiction.

 

10

 

11.3                           No Waiver. Failure of a Party
at any time to require performance of any provision of this Agreement shall not
affect the right of that Party to require full performance thereafter; a waiver
by a Party of a breach of any provision of this Agreement shall not constitute
a modification of this Agreement or prevent that Party from again enforcing
such term or condition in the future with respect to subsequent events.

 

11.4                           Relationship of
the Parties. The relationship established between the parties
by this Agreement shall be solely that of LICENSOR and LICENSEE. No principal-agent,
joint venture, employment, or other relationship exists between LICENSOR and
LICENSEE. Neither Party hereto shall have any right or shall attempt to enter
into contracts or commitments on behalf of the other Party or to bind the other
Party in any respect whatsoever.

 

11.5                           Governing Law. This Agreement
shall be governed by and construed in accordance with the patent and trademark laws
of the United States of America. Both Parties submit to the jurisdiction and
venue in the United States District Court for the Northern District of Illinois
in Chicago, Illinois, and any litigation brought to enforce the provisions of
this Agreement shall be brought therein.

 

11.6                           Cumulative
Nature of Rights and Remedies. The rights and remedies
herein reserved to the Parties shall be cumulative and additional to any other
or further rights and remedies available at law or equity.

 

 

[SIGNATURE PAGE FOLLOWS]

 

Remainder of page intentionally left blank.

 

11

 

IN WITNESS WHEREOF, the Parties have executed this
Agreement in duplicate as of the date first written above. By signing below the
individuals represent that they possess the authority to sign on behalf of and
bind the Party for which they are signing.

 

 

	
  ACCURAY INCORPORATED

  	
  FORTE AUTOMATION SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY

  	
  /s/ Chris A. Raanes

  	
   

  	
  BY

  	
  /s/ Toby Henderson

  	
   

  
	
   

  	
  Print Name

  	
  Chris A. Raanes

  	
   

  	
   

  	
  Print Name

  	
  Toby Henderson

  	
   

  
	
   

  	
  Title

  	
  SVP & COO

  	
   

  	
   

  	
  Title

  	
  President

  	
   

  
	
   

  	
  Date

  	
  11/29/6

  	
   

  	
   

  	
  Date

  	
  11/29/06

  	
   

  
										

 

12

 

Exhibit A

 

Accuray
Labeling Guidelines

 

1.                                       The Licensed
Products will include a label or marking with the Licensed Trademarks as shown
below:

 

 

 

2.                                       All use of the
Licensed Trademarks in relation to the Licensed Products shall be clearly
denoted as Accuray’s Trademarks.

 

3.                                       All literature,
business collateral, and other material bearing the Licensed Trademarks will
include an attribute relating to Accuray’s ownership thereof, namely a footnote
or other designation (e.g., “RoboCouchTM is a trademark of Accuray Incorporated
and is used with permission”).

 

13

 

Exhibit B

 

Accuray
Quality Standards

 

1.                                       Compliant with certification standards according to ISO 9001:2000.

 

14

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