Document:

exv10w24

 

Exhibit 10.24

PURCHASE AGREEMENT

Agreement Number SS02AUG2007

This Purchase Agreement (hereinafter the “Agreement”) is entered into between:

	 	 	Contract Manufacturer
	 
	 	 	Plexus Services Corp.

55 Jewelers Park Drive

Neenah, WI 54956
	 
	 	 	Hereinafter referred to as “Seller”
	 
	 	 	and
	 
	 	 	Hansen Medical, Inc.

380 North Bernardo Avenue

Mountain View, CA 94043
	 
	 	 	Hereinafter referred to as “Buyer”.

In consideration for the mutual obligations herein contained, the Seller and Buyer (hereinafter
referred to as the “Parties”) agree as follows:

	1.	 	EFFECTIVE DATES
	 
	 	 	This Agreement shall commence and be effective as of September 21, 2007 and shall remain in
effect for *** to order and to ship Products from the effective date of
this Agreement unless terminated sooner under the provisions set forth herein. Thereafter,
the Agreement may be extended for an additional period by mutual written agreement of the
Parties.
	 
	2.	 	APPLICABLE DOCUMENTS
	 
	 	 	This Agreement contains the following Attachments, which are incorporated herein and made a
part of this Agreement:
	 
	 	 	Attachment A — Plexus Markup Model
	 
	 	 	Attachment B — Intentionally Omitted
	 
	 	 	Attachment C — Intentionally Omitted
	 
	 	 	Attachment D — Mutual Nondisclosure Agreement (effective May 9, 2007)

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	4.	 	PURCHASE AND SALE OF PRODUCT

	 	4.1  	     	Purchase and Sale
	 
	 	 	 	Subject to the terms and conditions of this Agreement, Buyer agrees to purchase for
resale by Buyer and its distributors throughout the world, the Products described in
applicable active quotations and Purchase Orders (each a “Product”), as such
documentation may be changed from time to time by the Parties, in quantities
specified by Buyer, and Seller agrees to manufacture and sell to Buyer such
Products.
	 
	 	4.2  	     	Authorization of Work/Purchase Orders
	 
	 	 	 	This Agreement, which is not considered a purchase order, sets forth the overriding
terms and conditions of sale between Buyer and Seller. This Agreement does not
authorize Seller to produce or deliver any Products. Buyer shall be responsible
only for those Products which have been released on an official purchase order or as
provided hereunder. Official purchase orders for Product may be issued, at Buyer’s
discretion, from multiple locations of Buyer’s facilities of both domestic and
international origins associated with any of Buyer’s Products.
	 
	 	 	 	On a quarterly or more frequent basis, Buyer shall provide to Seller, a nonbinding
rolling quantity forecast of delivery requirements indicating the delivery
requirements projected for the next *** for the Product. This forecast shall in no
way be deemed a commitment for Buyer to purchase any Products. Buyer will issue
purchase orders at least *** prior to the required delivery dates for Product.
Buyer’s purchase orders and/or subsequent purchase order alterations for delivery
with lead times of less than *** will be mutually agreed to by both Parties.
	 
	 	4.3  	     	Component Purchases

	 	4.3.1	 	DEFINITIONS

	 	 	 	 	 
	Component Lead-Time:

	 	 	 	As defined in quarterly report
provided by Seller.
	Material Requirements Planning (“MRP”) Lead Time:
	 	 	 	***
	Dock to Stock Lead Time:

	 	 	 	***
	Minimum Buys:

	 	 	 	As defined in quarterly report
provided by Seller.
	Non-Cancellable/Non-Returnable

	 	 	 	As defined in quarterly report
provided by Seller.

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	Calendar Days:

	 	 	 	Unless otherwise specified, all
days are to be considered calendar
days throughout this Agreement

	 	4.3.2	 	Seller will purchase on behalf of Buyer material in order to
manufacture Buyer’s Products pursuant to quantity forecasts submitted by Buyer.
Material will be purchased by Seller using purchasing practices as mutually
agreed in writing by the Parties. Notwithstanding the rolling *** forecast
indicated in Section 4.2, Seller will purchase materials to cover no more than
the following time period:

Component Lead-Time + MRP Lead-Time + Dock to Stock Lead-Time taking
into account Minimum Buys

	5.	 	PURCHASE PRICE; PAYMENT TERMS

	 	5.1	 	In consideration for the manufacture and sale to Buyer of the Products, Buyer
shall pay to Seller the purchase price for the Products based upon the applicable
quotation, which shall be based upon the general principles set forth in Attachment A.
	 
	 	5.2	 	Except as provided in this Agreement or applicable Purchase Orders or quotation
documentation, the pricing stated shall be complete and the maximum charged to Buyer.
No additional charges of any type shall be added without Buyer’s express written
consent. Notwithstanding the foregoing, should the cost to Buyer on any given line
item component on an active quotation, as negotiated by Seller with suppliers using
commercially best efforts, exceed the quoted price for such line item component by ****
or less, such variance shall be presumptively acceptable to Buyer without express
written consent.
	 
	 	5.3	 	Seller warrants that the prices for the costed bill of material sold to Buyer
hereunder are no less favorable than those currently extended to any other customer,
provided that such material is sold under the same supply chain model and under the
same minimum and economic order quantities.
	 
	 	5.4	 	On receipt of advance notification of Buyer’s increased requirements,
additional Products may be added by mutual written agreement of the Parties.
	 
	 	5.5	 	Payment terms shall be net *** from the date of receipt of invoice of such
Product with a discount of ***. Invoicing typically occurs within one (1) day after
shipment of Product. Payment will occur via wire transfer.
	 
	 	5.6	 	Buyer and Seller agree to establish a “benchmark” of standard material cost for
material purchased by Seller and used to produce Buyer’s Product and reviewed on a
quarterly basis. This benchmark will be per the agreed on pricing as outlined

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	 	 	 	in Seller’s quotation and attached as Attachment A. If market conditions affect the
price of such material, Buyer and Seller will review the impact of such fluctuation
and mutually agree in writing to any pricing changes arising therefrom.

	6.	 	DELIVERY; TRANSPORATION

	 	6.1	 	“Delivery Date” shall mean the date specified on Buyer’s Purchase Order, as
mutually agreed upon by Buyer and Seller. Buyer expects *** the Products to be
delivered on or *** before the Delivery Date. Seller shall immediately notify Buyer of
any anticipated delays in shipment prior to the scheduled Delivery Dates specified on
Buyer’s Purchase Order. Seller thereafter shall have *** to submit a recovery plan
for Buyer’s approval.
	 
	 	6.2	 	Title and risk of loss of Products ordered by Buyer hereunder shall pass to
Buyer, FOB, Seller’s City, State. Freight payment terms shall be freight collect.
Buyer’s purchase order number must appear on all Bill of Lading copies. All shipments
shall be made to Buyer via the carrier specified on the face of Buyer’s purchase order
form.
	 
	 	6.3	 	Subject to the Warranty terms in Section 11, Buyer will be liable for payment
only for quantities ordered and delivered. Unauthorized shipments delivered beyond
Buyer’s ordered quantities shall be held at Seller’s risk and expense for a reasonable
time awaiting shipping instructions. Shipping charges to and from Buyer’s purchasing
locations for unauthorized shipments shall be at Seller’s expense. Seller agrees to
pay shipping charges to Seller’s facility for all warranty returns shipped back to
Seller within *** of Seller’s original ship date; otherwise shipping costs on such
warranty returns shall be covered by Buyer; Seller will pay shipping charges back to
Buyer’s facility on all warranty returns.
	 
	 	6.4  	      	Invoices
	 
	 	 	 	Seller shall submit invoices that identify the following:

     Purchase order number

     Buyer’s part number

     Quantity of delivery

     Unit Price

     Date of Delivery

     Buyer’s Name

 Invoices shall not deviate in terms from this Agreement without Buyer’s express
written consent.

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	7.	 	CHANGES / IMPACTS ON COST

	 	7.1  	      	Definition
	 
	 	 	 	The term “Engineering Change” (hereinafter referred to as “EC”) shall mean
mechanical or electrical design, material and/or specification changes which, if
made to the Product to be supplied hereunder, would affect the delivery schedule,
availability, performance, function, reliability, serviceability, form, appearance,
fit, dimensions, tolerance, safety or purchase price of such Product or which, in
Buyer’s opinion, would require additional testing and evaluation of the Product to
ensure its suitability for Buyer’s intended purposes. Any such changes shall be
subject to the terms as set forth in Section 7.2 and 7.3.
	 
	 	7.2  	      	Seller’s Proposed Changes
	 
	 	 	 	Seller shall not make any significant process changes without the prior written
notice to the Buyer (“Process Change”). Examples of such significant Process
Changes shall include such actions as: changes in solder, flux, epoxies, wash
chemistry, or changes in material profiles, but shall exclude the movement or
relocation of assembly and test equipment, limited to Seller’s Production facility
now located and known as “Seller Manufacturing Center, Seller Address”, which do not
affect the Product’s form, fit, or function.
	 
	 	 	 	Seller shall promptly inform Buyer of any ideas it may have for ECs for the Product
or the Process Change(s) used to manufacture the Product, as well as any cost
increase or decrease associated with such change or improvement as long as such ECs
are not in violation of confidentiality agreements relating to any other of Seller’s
customers. ECs proposed by Seller shall be set forth in detail, in writing, and
submitted to Buyer for comprehensive evaluation, testing and specification. In such
writing, Seller shall include:

(a) the
amount of rework necessary to implement any such EC,

(b) any increase or decrease in unit pricing of Products,

(c) lead time required to implement the proposed EC,

(d) impact on material that will become obsolete and/or

(e) any non-recurring engineering charge to implement the proposed EC.

Seller shall not proceed with any EC until Buyer provides its written approval.
Seller shall deliver to Buyer upon request units of the Product incorporating the
EC, to perform testing and evaluation prior to approving incorporation of the EC
into the Product. Buyer and Seller agree to share *** any cost savings realized as
a result of incorporation of the EC as submitted by Seller for a
period of ***. After ***, all cost savings resulting from the EC shall pass to Buyer.

	 	7.3  	      	Buyer’s Proposed Changes
	 
	 	 	 	Buyer may, by written notice to Seller, require ECs to the Product. Seller shall
use commercially best efforts to respond, in writing, to Buyer within *** of

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	 	 	 	receipt of such notice, unless a longer period is mutually agreed upon in writing,
with the following information:

   (a) the amount of rework necessary to implement any such EC,

   (b) any increase or decrease in unit pricing of Products,

   (c) lead time required to implement the proposed EC,

   (d) impact on material that will become obsolete and/or

   (e) any non-recurring engineering charges to implement the proposed EC.

Seller shall not proceed with any EC until Buyer provides its written approval.
Subject to Buyer’s approval of the proposed EC, Seller may increase prices for the
Product, spare parts and service tools pursuant to the mutual agreement of the
Parties. ECs developed, initiated, and financed by Buyer, and resulting in
cost-reduction of Products, will be fully realized in the price of Products listed
in Attachment A.

	 	7.4  	     	Cost Reduction
	 
	 	 	 	Seller agrees to work in good faith toward cost-reduction efforts for the Products.
Cost Reduction may include, but shall not be limited to: process improvements;
value analysis; process changes; implementation of enhanced tooling; test or
manufacturing equipment; improved subcontract sourcing; and process efficiencies
associated with the learning curve process. Buyer expects and bases all future
renewals of this purchase agreement on target cost decreases to be mutually agreed
to in writing during the period of discussion prior to each contract renewal. Buyer
agrees to make commercially best efforts in reviewing all suggestions for such
cost-reduction promptly and assist Seller as required to implement cost reduction
plans.
	 
	 	7.5  	     	Changes in Delivery Schedules or Quantities

	 	  7.5.1	  	Schedule of Changes to Purchase Orders

	 	 	 
	Days Prior to Scheduled Delivery	 	Maximum Pushout Allowed
	0-30 days

	 	*** can be rescheduled.
	 
	 	 
	31+days

	 	*** of total volume can be rescheduled out to a maximum of *** from original
scheduled delivery date.

7.5.2 Upside Flexibility (Purchase Order or Forecast)

Buyer may also require Seller to analyze the material feasibility of
schedule increases proposed by Buyer. Seller shall use commercially best efforts to

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perform such analysis and respond in writing to Buyer within *** after
receipt of the proposed schedule increases with the following information:

	 	A.	 	Feasibility of proposed change;
	 
	 	B.	 	Parts critical to the proposed change

	 	7.6  	    	Limit of Liability for Excess and Obsolete Components

	 	7.6.1	 	Obsolete Components: “Obsolete Components” shall be defined as
material used in Buyer’s product for which there is no current or future
demand. Buyer’s liability for Obsolete Components acquired in accordance to
Section 4.3.2 and resulting from the implementation of an engineering change
pursuant to Section 7, or demand cancellation from Buyer, shall be limited to
current quoted price plus material overhead plus a *** handling fee as stated
in Attachment A. Seller and Buyer agree to review obsolete components on a
monthly basis, and to so agree and disposition such material. Payment terms are
as set forth in section 5.5.
	 
	 	7.6.2	 	Excess Components: “Excess Components” shall be defined as
those components exceeding *** of demand as a result of an engineering change
and/or Buyer’s schedule changes, pursuant to Section 7 and acquired to meet
Buyer’s original delivery date in accordance to Section 4.3.2. Buyer’s
liability for components that exceed *** of demand, shall be handled with the
following process:

	 	a)	 	Plexus will offer a *** Excess threshold based
upon the then current annual revenue. Plexus and Hansen agree to
review the annual revenue projections and Excess threshold as part to
of the Quarterly Business Review. (QBR)
	 
	 	b)	 	Upon written notice, Buyer’s payment of deposit
monies in the sum of the current quoted price plus materials overhead
as stated in Attachment A. Such deposit shall be held by Seller as a
credit to Buyer’s account until material is either used in Buyer’s
Products or dispositioned as obsolete in accordance with section 7.6.1
above. Deposit value will be to bring the Excess value back down to
the Excess threshold percentage. Plexus and Hansen agree to review
current Excess deposit on a quarterly basis and the deposit will be
adjusted as appropriate. Payment terms are as set forth in section
5.5.
	 
	 	c)	 	Exclude material that is stocked by Seller’s
distributor (“in-house stores”), unless otherwise noted.
	 
	 	d)	 	Plexus and Hansen will mutually work together
to minimize any potential Excess Components. When Plexus is going to
make a purchase of components or a change in forecast that has a
line-item Excess of greater than ***, Plexus will work with Hansen to
obtain written consent before any order or change is placed.
	 
	 	e)	 	Plexus and Hansen will mutually work together
utilizing commercially best efforts to minimize any NCNR components.
Plexus will give

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	 	 	 	Hansen a list of all BOM items that are currently NCNR. Plexus will get
written pre-approval for all NCNR components before any order is placed.

	 	7.6.3	 	Seller shall make every reasonable effort to mitigate Buyer’s
liability for components procured by Seller, including but not limited to,
canceling commitments for, reselling or diverting the components purchased.
Such mitigation shall be done before payments for Excess and Obsolete
components as specified above in sections 7.6.1 and 7.6.2.

	8.	 	TERMINATION

	 	8.1  	     	Mutual Agreement to Terminate at End Date of the Agreement
	 
	 	 	 	In the event Seller and Buyer do not agree to an extension of the term of this
Agreement, Buyer shall have the right, subject to material availability, to continue
providing purchase orders and forecasts for Products to be delivered on the dates
specified by Buyer pursuant to the terms and conditions of this Agreement, and
Seller shall continue manufacturing and selling Products to Buyer, so long as
delivery of such Products is no later than *** after the termination of this
Agreement. Material shall be deemed unavailable under this Section 8.1 if it is
completely unavailable at any price. If the Buyer’s Purchase Order quantity cannot
be completely filled due to unavailability of material, it should be filled to the
extent that the material is available. The terms and conditions of this Agreement
shall continue in full force and effect until the last delivery made on such
Products. Buyer agrees to use its best effort to obtain a new supplier within ***.
	 
	 	8.2  	     	For Cause
	 
	 	 	 	Either Party may terminate this Agreement immediately upon written notice to the
other Party if: (i) the other Party has failed to cure a material breach of this
Agreement or fails to submit an acceptable plan to cure said breach within *** after
receipt of written notice of such breach from a Party; (ii) the other Party ceases
to do business in the normal course, becomes insolvent, files a petition under the
federal bankruptcy laws, or has such a petition filed against it which is not
dismissed within *** after such filing, files for protection from its creditors
under the insolvency laws of any state, has a receiver appointed with respect to any
of its assets or makes a general assignment for the benefit of its creditors; or
(iii) the other Party breaches the terms of the Proprietary Information Agreement
per Attachment D. Termination under this Section 8.2 is in addition to any other
right or remedy a Party may have under this Agreement, at law, or in equity. In no
case, however, shall Buyer’s liability for termination of this Agreement or of any
Purchase Orders pursuant to Section 8.2 of this Agreement exceed the following:
Seller’s current quoted price plus material overhead as set forth in Attachment A

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	 	 	 	for the material acquired pursuant to Section 4.3.2. Upon payment to Seller from
Buyer for such material, Seller shall immediately deliver said material with title
and risk of loss passing to Buyer upon delivery of said material. Payment terms are
as set forth in section 5.5.
	 
	 	8.3  	     	Buyer’s Termination for Convenience
	 
	 	 	 	Buyer may terminate for its convenience and without cause this Agreement and/or any
purchase orders issued against this Agreement at any time in whole or part by
delivering *** written notice of termination to Seller. Seller may terminate for
its convenience and without cause this Agreement and/or any purchase orders issued
against this Agreement at any time in whole or part by delivering *** written notice
of termination to Seller. Seller shall make every reasonable effort to cancel all
applicable purchase orders and reduce inventory through return for credit programs,
allocating materials for alternate programs if applicable, reselling, and all other
appropriate actions in order to mitigate charges associated with finished goods,
work in process, and raw materials resulting from cancellation. Any costs that may
be incurred to make such mitigation will be reviewed by the Buyer and approved by
Buyer prior to any commitment by Seller to incur such costs. Buyer’s liability to
Seller for any quantity of Excess Components and/or Obsolete Components procured by
Seller pursuant to Section 4.3 shall be limited to Seller’s current quoted price
plus material overhead as set forth in Attachment A. In no case, however, shall
Buyer’s liability for termination of this Agreement or of any Purchase Orders
pursuant to Section 8.3 of this Agreement exceed the following:

	 	A.	 	For Products scheduled for delivery within *** from the date of
termination of this Agreement, Buyer will be liable for up to *** of purchase
price.
	 
	 	B.	 	For Products scheduled for delivery *** from date of
termination of this Agreement, Buyer will be liable for actual work in process
(materials plus labor incurred).
	 
	 	C.	 	For Products scheduled for delivery *** from the date of
termination of this Agreement, Buyer will not be liable for any costs incurred
by Seller, other than reasonable transition cost.
	 
	 	D.	 	For Obsolete Components under Section 7.6, current quoted price
plus material overhead plus a *** handling fee as set forth in Attachment A for
the material acquired pursuant to Section 4.3.2.

Upon written notice to Seller from Buyer for return of the material, Seller shall
immediately deliver to Buyer said material with title and risk of loss passing to Buyer upon
delivery of said material. Payment terms are as set forth in section 5.5.

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	9.	 	ACCEPTANCE

	 	9.1	 	All material purchased in support under this Agreement shall be in compliance
with Buyer’s written specifications and documentation in effect as of the effective
date of this Purchase Agreement unless such specifications or documentation have been
superseded by other specifications or documentation agreed to between Buyer and Seller.
	 
	 	9.2	 	At no additional charge to Buyer, Buyer may witness Seller’s performance and
compliance with provisions of this Agreement through periodic process reviews at
Seller’s location at mutually agreeable times. Records of all inspection work done by
Seller, including equipment inspection and calibration, shall be made available to
Buyer at reasonable times upon request.

	10.	 	QUALITY

	 	10.1	 	Buyer expects Seller to meet the quality levels as mutually agreed upon by the
Buyer/Seller Bi-Weekly Quality Team for Product delivered pursuant to this Agreement.
Buyer agrees to communicate bi-weekly to Seller in the Buyer/Seller Production Team
meeting, per the standard meeting format for reporting in this meeting, the percentage
of Products conforming to the Product acceptance criteria. In addition, Buyer will
issue a monthly report of unacceptable Products, which shall include the Purchase Order
Number against which the Product was received, the Buyer Discrepant Material Report
Number, the date of rejection, the reason for rejection, and the rejection rate as
determined by dividing the number of Products received by the number of Products
rejected during such monthly period.
	 
	 	10.2	 	In the event Seller fails to maintain the quality levels required in Section
10.1, Buyer will notify Seller in writing of such failure, and Seller thereafter shall
have *** to submit a plan of corrective action for Buyer’s approval. Such plan shall
include: (i) a recovery plan to supply conforming Products to Buyer’s requirements
within *** and (ii) a plan to ensure continuous supply of conforming
Products thereafter. In the event Seller is unable to adhere to the corrective action
plan as approved by Buyer, Seller shall be considered in breach of this Agreement.
	 
	 	10.3	 	Seller agrees to inform Buyer of any manufacturing process change as that term
“Process Change” is previously defined in Section 7.2 of this Agreement.
	 
	 	10.4	 	The Seller agrees to establish and maintain a complete Project Team including:
Customer Manager/Director, Program Manager, Process/Manufacturing Engineer, Quality
Engineer, Test Manager and a Material Team Leader (“Team Members”). The Seller will
provide upon request from the Buyer a Monthly Program Status Report including details
on all of the above functional areas. The format for this report will be mutually
agreed upon on at a later date.

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	 	10.5	 	In the event that Seller must replace any Team Member, such replacement shall
be subject to prior written approval by Buyer. Seller shall be responsible for the
training of any such approved Team Member replacement, and shall bear all costs
associated with training, including but not limited to, travel, training expenses and
other training-related costs. With the exception to Team Members subject to
resignation, termination, promotion, or reassignment to a different position, Seller
shall provide a one-month overlap between the previous Team Member and the replacement
Team Member, such that the previous Team Member shall work with the replacement Team
Member for at least one month to facilitate the transition.
	 
	 	10.6	 	In any event, Buyer shall have access and communication with the Team Members,
through the Customer Manager/Director and Program Manager, who shall respond to Buyer’s
inquiries within ***. Buyer shall have access to: (a) build-to-print documentation,
(b) quality data and reports relating to the Products, (c) material/inventory status,
and (d) test and statistical process control data relating to
the Products, with *** notice.
	 
	 	10.7	 	In the event that Seller unilaterally decides to switch production from its
Boise, Idaho facility to a facility in a different location, Seller must obtain Buyer’s
prior written approval, and Seller shall bear all costs and expenses associated with
such change. If the change in facilities prevents the Seller from fulfilling its
obligations according to the terms of this Agreement, then Seller shall be considered
in material breach of this Agreement, subject to termination in accordance with Section
8.2. In the event of a change in facility under this subsection, (a): Seller shall not
charge Buyer a facility cost rate structure any greater than the then facility cost
rate structure charged in connection with the Boise, Idaho facility; and (b) the
pricing model set forth in Attachment A shall not increase without Buyer’s written
approval.

	11.	 	WARRANTY

	 	11.1	 	Seller warrants to Buyer that (i) it has the right and authority to enter into
this Agreement and to perform its obligations hereunder, (ii) the manufacturing process
used in the manufacture of the Products shall not infringe any patent or violate any
intellectual property or proprietary rights of any third party, including but not
limited to copyright, trademark or trade secret rights anywhere in the world, (iii) the
Products delivered under this Agreement shall be free from defects in workmanship, for
a period of *** from the date of shipment of the Product, (iv) the Products will
conform in all material respects to the applicable specifications, and (v) the Products
will be delivered to Buyer free of all liens, claims and encumbrances. Product shall
conform to all manufacturing related recent specifications supplied by Buyer, inclusive
but not limited to: Bill of Materials; Assembly Drawings; Component
Drawings/Specifications; and Test Specifications. Seller agrees that if the material
furnished to Buyer contains manufacturer’s warranty, Seller shall assign, to the extent
legally permissible,

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	 	 	 	manufacturer’s warranty to Buyer. Seller shall manage all materials warranty claims
on behalf of Buyer.
	 
	 	11.2	 	Seller agrees to determine reparability and to either replace or correct
defects of any Products not conforming to the foregoing warranty within *** after
receipt of Product by Seller without labor expense to Buyer, when notified of such
nonconformity by Buyer or, as mutually agreed upon by Buyer and Seller.
	 
	 	11.3	 	All Products returned under warranty to Seller shall have an RMA number issued
and shall be accompanied by Buyer’s written statement of the reason for return.
	 
	 	11.4	 	Seller shall comply with reasonable requests to supply failure analysis reports
on all Products returned to the Seller for repair or replacement.
	 
	 	11.5	 	In the event of failure by Seller to correct defects in or replace
nonconforming Products promptly, Seller will issue a credit for the purchase price of
the nonconforming goods, after *** notice to Seller from Buyer.
	 
	 	11.6	 	This warranty shall survive termination of purchase orders issued pursuant to
this Agreement, or termination of this Agreement itself.
	 
	 	11.7	 	Seller and Buyer agree to enter into good faith negotiations for Seller to
supply spare parts and to repair the Products for a minimum of *** after completion of
Buyer’s final Production order, under a separate agreement, and provided that Seller
has access to appropriate test fixtures and equipment.
	 
	 	11.8	 	THE WARRANTIES SET FORTH IN THIS SECTION ARE IN LIEU OF, AND SELLER EXPRESSLY
DISCLAIMS AND BUYER WAIVES ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED,
STATUTORY OR ARISING BY COURSE OF DEALING OR PERFORMANCE, CUSTOM, USAGE IN THE TRADE OR
OTHERWISE, INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY,
TITLE AND FITNESS FOR A PARTICULAR PURPOSE.

	12.	 	OUT-OF-WARRANTY REPAIR SERVICES, REFURBISHMENT AND SPARE PARTS PROVIDED BY SELLER.
	 
	 	 	Seller agrees to provide out-of-warranty repair, replacement and refurbishment services and
spare parts with respect to the Products. Such services and spare parts shall be negotiated
between the parties in good faith in accordance with this section. Seller and Buyer
agree to enter into good faith negotiations for Seller to repair out-of-warranty Products
and provide spare parts for Products for a period of not less than *** from the last
production ship date of the Product under a separate agreement, and provided that Seller has
access to appropriate test fixtures and equipment.

***
= CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	13.	 	END-OF-LIFE NOTIFICATIONS
	 
	 	 	As Seller is notified by component suppliers and distributors of the end of availability of
a given part due to obsolescence or manufacturing changes, Seller will notify Buyer
immediately in writing with attached documentation from the supplier or distributor
supporting the notification. Seller will work with suppliers and distributors to give as
much advanced notice as possible to Buyer, and to reduce the exposure of loss of material
availability by seeking alternate sources or allocations. Seller will seek distributors who
will bond end-of-life material for Buyer’s use to mitigate the need for end-of-life buys, to
avoid, if possible, non-cancellable/non-returnable requirements and to minimize any
additional handling or storage fees.
	 
	14.	 	MISCELLANEOUS

	 	   14.1  	     	Confidentiality and Intellectual Property; Design Exclusivity
	 
	 	 	 	Confidentiality and Intellectual Property. Any technical, financial, business or
other information provided by one party (the “Disclosing Party”) to the other party
(the “Receiving Party”) and designated as confidential or proprietary (“Proprietary
Information”) shall be held in confidence and not disclosed and shall not be used,
pursuant to the Mutual Nondisclosure Agreement signed by the Parties on May 9, 2007,
incorporated by reference herein and duplicated for convenience in Attachment D.
The terms and conditions of the Mutual Nondisclosure Agreement shall stay in effect
until the termination, cancellation or expiration of this Agreement, regardless of
the term of such agreement.
	 
	 	   14.2  	     	Force Majeure
	 
	 	 	 	Delay or default in performance arising from acts of God or contingencies beyond the
reasonable control of either Party hereto shall not be deemed a breach of this
Agreement by such Party. The affected Party shall notify the other Party within ***
of discovery and/or occurrence of such acts or contingencies. In the event of any
such act or contingency affecting Seller’s performance beyond ***, Buyer at its
option, may elect either to have the quantities so affected eliminated or to extend
the period for delivery of the quantities so affected. Such elimination or
extension shall be governed by Section 7.5 and Section 8.
	 
	 	   14.3  	     	Limitation of Liability / Indemnity
	 
	 	 	 	Neither Party shall be liable for any special, incidental, indirect or consequential
damages, including reimbursement for lost profits, whether in contract or in tort,
and regardless of whether or not it was advised of the possibility or certainty of
such damage, arising from either Party’s performance under this Agreement.
	 
	 	 	 	Seller shall defend, indemnify and hold Buyer and its officers, directors, agents
and employees harmless from liability (including all damages, losses, costs and

***
= CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	 	 	 	attorneys fees) arising out of (i) infringement by the Seller’s manufacturing
process, know-how, and/or trade secrets used in manufacturing the Products of any
intellectual property rights of any third party, including patent rights, trademark
rights, copyrights or other proprietary rights, or (ii) the negligence or willful
misconduct of Seller.

Buyer shall defend, indemnify and hold Seller and its officers, directors, agents
and employees harmless from liability (including all damages, losses, costs and
attorneys fees) arising out of sale or use of the Product, including but not limited
to product related liabilities or intellectual property infringement.

	 	14.4  	     	Forms of Notice; Document Ownership
	 
	 	 	 	All notices under this Agreement shall be in writing, and shall be deemed given when
personally delivered, when sent by confirmed fax, or three days after being sent by
prepaid certified or registered U.S. mail to the address of the party to be noticed
as set forth herein or such other address as such party last provided to the other
by written notice.
	 
	 	 	 	All documents that Buyer submits to Seller are owned by Buyer. These shall not be
used by Seller for any purpose other than to produce (including any purchase of
components) Products for Buyer under the terms and conditions of this Agreement.
All such documents shall be deemed Proprietary Information under the terms of the
Mutual Nondisclosure Agreement, effective May 9, 2007, set forth in Attachment D.
Upon the earlier to occur of expiration or termination of this Agreement and Buyer’s
request, Seller will deliver promptly to Buyer all of these documents and any copies
thereof.
	 
	 	14.5  	     	Tooling Rights
	 
	 	 	 	All tooling produced or obtained for the Product delivered hereunder and paid for by
Buyer shall become and remain the property of Buyer. The title to all tooling
purchased or manufactured pursuant to this Agreement shall pass to Buyer upon
acceptance by Buyer, in the form of authorization of payment of the invoice, for
said tooling and prior to the time the tooling is used by Seller. Such tooling
shall be used by Seller only for the benefit of Buyer, and shall be delivered to
Buyer upon request. Seller shall provide Buyer with a complete inventory of tooling
created or procured for Buyer.
	 
	 	14.6  	     	Assignments
	 
	 	 	 	No right or interest in this Agreement or obligation under this Agreement shall be
assigned by either Buyer or Seller, excepting from an assignment to a wholly-owned
subsidiary or affiliate of either Buyer or Seller, now located and known as “Seller
Manufacturing Center, Seller Address”, without the prior written permission of the
other Party, provided, however, that Buyer may assign this

 

 

	 	 	 	Agreement to another Party without the prior written permission of Seller for the
purpose of such other Party’s incorporating the Product into Products to be sold by
Buyer.
	 
	 	14.7    	     	Advertising
	 
	 	 	 	Neither Party shall advertise, market, or otherwise make known to others any
information relating to this Agreement without the prior written consent of the
other Party except as required by law or regulation.
	 
	 	14.8    	     	Failure to Enforce/Waiver
	 
	 	 	 	The failure of either Party, at any time, to enforce any of the provisions of this
Agreement shall not be construed to be a waiver of the right of such Party
thereafter to enforce each and every provision of this Agreement.
	 
	 	14.9    	     	Relationship of the Parties
	 
	 	 	 	The relationship between the Parties is that of independent contractors. No
franchise, partnership, joint venture or relationship of principal and agent is
intended. The Parties agree that they shall not take any action or omit to take any
action, the effect of which act or omission shall obligate or bind the other Party
to any act, commitment, obligation or payment to third Parties, including
governmental agencies, without the written consent of the other Party of except as
authorized by this Agreement. Nothing contained herein is intended to or shall
confer in either Party any right to effect any decisions of the other Party with
respect to the other Party’s conduct of its business.
	 
	 	14.10  	     	Epidemic Failure
	 
	 	 	 	“Epidemic Failure” shall mean those substantial deviations from the specifications
which seriously impair the use of Products existing at the time of delivery but
which are not reasonably discernible at that time and which are evidenced by an
identical, repetitive defect due to the same cause and occurring in the same series
of the Products and exceeding *** of the Products delivered within *** of the date
of manufacture. In the event an epidemic failure is identified by Buyer, Buyer
agrees to consult with Seller and the Parties agree to mutually address the failure
and reasonable remedial actions necessary to resolve the failure mode.
	 
	 	14.11  	     	Modification
	 
	 	 	 	This Agreement, including the Attachments here to, may not be modified or terminated
orally, and no claimed modification, termination, or waiver shall be binding unless
in writing and signed by both Parties.

***
= CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	 	14.12  	     	Applicable Law
	 
	 	 	 	This Agreement will be governed by and construed in accordance with the laws of the
State of New York.
	 
	 	14.13  	     	Audit
	 
	 	 	 	At any time during working hours upon reasonable notice, Buyer shall have the right
to audit Seller’s manufacturing facilities and processes. Such audit shall be on an
annual basis, provided that such audit may occur more frequently if Buyer has any
concerns about such facilities and processes. The audit will only be of those areas
that are directly related to Buyer’s Product.
	 
	 	14.14  	     	Integration
	 
	 	 	 	Except for the terms of the Mutual Nondisclosure Agreement between the Parties
effective May 9, 2007, this Agreement embodies the entire understanding between the
Parties, and any prior or contemporaneous representations, either oral or written,
are hereby superseded. No amendments or changes to this Agreement shall be
effective unless made in writing and signed by authorized representatives of the
Parties. In the event of conflict between the terms of this Agreement, and the
terms of any other related agreement between the Parties (such as a purchase order),
the terms of this Agreement shall control unless mutually agreed to the contrary in
writing by the Parties on a case-by-case basis. If for any reason a court of
competent jurisdiction finds any provision of this Agreement, or portion thereof, to
be unenforceable, that provision of the Agreement shall be enforced to the maximum
extent permissible so as to effect the intent of the Parties, and the remainder of
this Agreement shall continue in full force and effect.

 

 

AGREED AND ACCEPTED

	 	 	 	 	 
	SELLER

	 	BUYER
	 	 
	Plexus Services Corp.

	 	Hansen Medical, Inc.	 	 
	 
	 	 	 	 
	/s/ Todd Kelsey

	 	/s/ Gary Restani                                                      	 	 
	 
	 	 	 	 
	Signature

	 	Signature	 	 
	 
	 	 	 	 
	Todd Kelsey — V.P.

	 	Gary Restani President & COO                          	 	 
	 
	 	 	 	 
	Name & Title

	 	Name & Title	 	 
	 
	 	 	 	 
	10/9/07

	 	10/10/07                                                                   	 	 
	 
	 	 	 	 
	Date

	 	Date	 	 
	 
	 	 	 	 
	 

	 	[Intentionally left blank]                                        	 	 
	 

	 	Signature	 	 
	 
	 	 	 	 
	 

	 	[Intentionally left blank]                                        	 	 
	 

	 	Name & Title	 	 
	 
	 	 	 	 
	 

	 	[Intentionally left blank]                                        	 	 
	 

	 	Date	 	 

 

 

Attachment A

***

***
= CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.exv10w25

 

Exhibit 10.25

November 30, 2007

David Shaw, Esq.

Dear David:

          Hansen Medical, Inc. (the “Company”) is pleased to offer you employment on the following
terms:

          1.
Position. Your title will be Senior Vice President, Business Development and General
Counsel, and you will report to the Company’s Chief Executive Officer. This is a full-time
position. While you render services to the Company, you will not engage in any other employment,
consulting or other business activity (whether full-time or part-time) that would create a conflict
of interest with the Company. By signing this letter agreement, you confirm to the Company that
you have no contractual commitments or other legal obligations that would prohibit you from
performing your duties for the Company.

          2. Cash Compensation. The Company will pay you a starting salary at the rate of $250,000 per
year, payable in accordance with the Company’s standard payroll schedule. This salary will be
subject to adjustment pursuant to the Company’s employee compensation policies in effect from time
to time. In addition, you will be eligible to be considered for an incentive bonus for each fiscal
year of the Company after 2007. The bonus (if any) will be awarded based on objective or
subjective criteria established by the Company’s Chief Executive Officer and approved by the
Compensation Committee of the Company’s Board of Directors (the “Committee”). Your target bonus
for 2008 will be equal to 35% of your annual base salary. The bonus for a fiscal year will be paid
after the Company’s books for that year have been closed and will be paid only if you are employed
by the Company at the time of payment. The determinations of the Committee with respect to your
bonus will be final and binding.

          3. Employee Benefits. As a regular employee of the Company, you will be eligible to
participate in a number of Company-sponsored benefits. In addition, you will be entitled to paid
vacation in accordance with the Company’s vacation policy, as in
effect from time to time. Your previously arranged family vacation
from December 20 through January 2, 2008 is approved as an addition
to those periods to which you will be entitled under the
Company’s vacation policy.

          4.
Stock Options. On December 3, 2007, you
will receive an option to purchase 275,000 shares of the Company’s Common Stock. The exercise
price per share will be equal to the closing price of the
Company’s Common Stock on December 3, 2007. The option will be subject to the terms and conditions applicable
to options granted under the Company’s 2006 Equity

 

 

David Shaw, Esq.

November ___, 2007

Page 2

Incentive Plan (the “Plan”), as described in the
Plan and the applicable Stock Option Agreement. You will vest in 25% of the option shares after 12
months of continuous service, and the balance will vest in equal monthly installments over the next 36 months of continuous service, as
described in the applicable Stock Option Agreement.

          5.
Stock Units. On December 3, 2007, you will
receive a Restricted Stock Unit Award representing 10,000 shares of the Company’s Common Stock.
The award will be subject to the terms and conditions applicable to Restricted Stock Unit Awards
granted under the Plan, as described in the Plan and the applicable Restricted Stock Unit Award
Agreement. You will vest in the award in equal annual installments over your first four years of
continuous service, as described in the applicable Restricted Stock Unit Award Agreement.

          6. Change in Control Agreement. The Company will offer you the opportunity to enter into a
Vesting Acceleration and Severance Agreement in the form of the document attached hereto as Exhibit
A.

          7. Proprietary Information and Inventions Agreement. Like all Company employees, you will be
required, as a condition of your employment with the Company, to sign the Company’s standard
Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit B.

          8. Employment Relationship. Employment with the Company is for no specific period of time.
Your employment with the Company will be “at will,” meaning that either you or the Company may
terminate your employment at any time and for any reason, with or without cause. Any contrary
representations that may have been made to you are superseded by this letter agreement. This is
the full and complete agreement between you and the Company on this term. Although your job
duties, title, compensation and benefits, as well as the Company’s personnel policies and
procedures, may change from time to time, the “at will” nature of your employment may only be
changed in an express written agreement signed by you and a duly authorized officer of the Company
(other than you).

          9. Taxes. All forms of compensation referred to in this letter agreement are subject to
reduction to reflect applicable withholding and payroll taxes and other deductions required by law.
You agree that the Company does not have a duty to design its compensation policies in a manner
that minimizes your tax liabilities, and you will not make any claim against the Company or its
Board of Directors related to tax liabilities arising from your compensation.

          10. Interpretation, Amendment and Enforcement. This letter agreement and Exhibits A and B
constitute the complete agreement between you and the Company, contain all of the terms of your
employment with the Company and supersede any prior agreements, representations or understandings
(whether written, oral or implied) between you and the Company. This letter agreement may not be
amended or modified, except by an express written agreement signed by both you and a duly
authorized officer of the Company. The terms of this letter agreement and the resolution of any
disputes as to the meaning, effect, performance or

 

 

David Shaw, Esq.

November ___, 2007

Page 3

validity of this letter agreement or arising out
of, related to, or in any way connected with, this letter agreement, your employment with the
Company or any other relationship between you and the Company (the “Disputes”) will be governed by California law, excluding laws relating to
conflicts or choice of law. You and the Company submit to the exclusive personal jurisdiction of
the federal and state courts located in Santa Clara County, California, in connection with any
Dispute or any claim related to any Dispute.

* * * * *

          We hope that you will accept our offer to join the Company. You may indicate your agreement
with these terms and accept this offer by signing and dating both the enclosed duplicate original
of this letter agreement and the enclosed Proprietary Information and Inventions Agreement and
returning them to me. This offer, if not accepted, will expire at the close of business on
November 30, 2007. As required by law, your employment with the Company is contingent upon your
providing legal proof of your identity and authorization to work in the United States. Your
employment is also contingent upon your starting work with the Company on or before December 3,
2007.

If you have any questions, please call me at 650.404.5800.

Very truly yours,

	 	 	 	 	 
	Hansen Medical, Inc.	 	 
	 
	 	 	 	 
	By:
	 	 Frederic H. Moll	 	 
	 

	 	 

	 	 
	Title:
	 	CEO	 	 
	 

	 	 	 	 
	 
	 	 	 	 

I have read and accept this employment offer:

	 	 	 	 	 
	/s/ David Shaw	 	 
	 	 	 
	Signature of David Shaw	 	 
	 
	 	 	 	 
	Dated:
	 	12/3/07	 	 
	 

	 	 	 	 

Attachment

Exhibit A: Vesting Acceleration and Severance Agreement

Exhibit B: Proprietary Information and Inventions Agreement

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