Document:

exv10w15

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

EXHIBIT 10.15

BROADLANE CONTRACT NO.    EZ-104   

AGREEMENT

FOR

PORTABLE ULTRASOUND EQUIPMENT

between

BROADLANE, INC.

and

ZONARE MEDICAL SYSTEMS INC.

EFFECTIVE DATE: MAY 1, 2006

 

 

     This Agreement for Portable Ultrasound Equipment (this “Agreement”), effective as of May 1,
2006 (the “Effective Date”), is between Broadlane, Inc., a Delaware corporation
(“Broadlane”), and ZONARE Medical Systems Inc., a Delaware corporation
(“Supplier”), and remains in effect for three years commencing on the Effective Date and
expiring on April 30, 2009 (the “Term”). Broadlane and Supplier agree as follows:

SECTION 1

ORGANIZATION AND BACKGROUND

1.1 Definitions.

     1.1.1 Broadlane Customer. “Broadlane Customer” means any health care provider (including, but not limited to, any
hospital, physician office, nursing home, ambulatory surgery center, home care agency, diagnostic
imaging center, long-term care facility, etc.) for whom Broadlane provides services in connection
with this Agreement and that designates Broadlane as its contracting agent. “Broadlane
Customer” also includes a parent corporation of a health care provider that enters into an
agreement with Broadlane designating Broadlane as the purchasing agent of the health care
provider. Supplier must access a current list of Broadlane Customers at
http://vendors.broadlane.com on a monthly basis.

     1.1.2 Customer. “Customer” means any Broadlane Customer purchasing Products under this Agreement.

     1.1.3 Product. “Product” means any product and service listed on Exhibit A (including
maintenance, repairs, and upgrades that Supplier performs to these products and services).

     1.1.4
Other Definitions. All capitalized terms not otherwise defined have the meanings given to them in Exhibit B.

1.2 Group Purchasing Agreement. This Agreement is a group purchasing agreement through which any Broadlane Customer may elect to
purchase Products from Supplier. Supplier may sell the Products directly to the Customers or
through an authorized distributor.

1.3 Customers. Any Broadlane Customer may elect to purchase Products under this Agreement, but this Agreement
neither (a) obligates any Broadlane Customer to purchase the Products, nor (b) precludes any
Broadlane Customer from purchasing Competing Products. Broadlane does not imply any participation
levels by the Broadlane Customers. A Customer is bound to the terms and conditions of this
Agreement by purchasing Products under this Agreement. Each Customer is liable directly to
Supplier for all payments and any other obligations with respect to the Products.

1.4 Broadlane. Broadlane negotiates contracts for certain products and services on behalf of the Broadlane
Customers. Broadlane negotiated and entered into this Agreement as the contracting agent of the
Broadlane Customers, but is not a purchaser of the Products. Except as

2

 

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

 

explicitly set forth in
this Agreement, Broadlane has no liability, responsibility, or performance obligations to Supplier
relating to any Product.

1.5 Supplier. Supplier sells the Products and entered into this Agreement to offer the Products for sale to
all Broadlane Customers. Supplier may also desire to access the BroadLinkTM and the Web-based
Interface so that Supplier can offer products and services to the
Broadlane Customers (including the Products) through electronic means.

1.6 Distributor. If any Customer purchases any Product through an authorized distributor, then the applicable
terms of the Customer’s agreement with the authorized distributor govern all taxes, ordering,
invoicing, payment, delivery, and return terms. For sales of any Product to any Customer through
an authorized distributor, Supplier’s price of that Product to the authorized distributor must be
the same as that set forth on Exhibit A; but the ultimate price of the Product to the
Customer may be higher or lower based on the terms and conditions of the Customer’s agreement with
the authorized distributor. No authorized distributor is a party to this Agreement, and no
authorized distributor has any right as a third-party beneficiary of this Agreement. Broadlane or
Supplier may disclose the terms and conditions of this Agreement with an authorized distributor as
necessary to facilitate the sale of Products to Customers. Supplier must direct each authorized
distributor to disclose all sales data regarding the Customers to Broadlane.

SECTION 2

CUSTOMERS

2.1 Third-Party Beneficiary. Broadlane and Supplier are entering this Agreement for the express, intended benefit of the
Customers, Broadlane and Supplier. Each Customer is an intended third-party beneficiary of this
Agreement. Each Customer may enforce the terms and conditions of this Agreement that affect that
Customer. Except as provided in this Section 2.1, there are no other third-party
beneficiaries of this Agreement.

2.2 Termination of Existing Contracts. Any Broadlane Customer or Customer wishing to purchase any Product under this Agreement may, at
its option and without any penalty or cost, terminate any existing contract or other arrangement
with Supplier for the same Products. Supplier must not directly or indirectly contract with any
Broadlane Customer or Customer for the Products.

2.3 Qualification for Participation. Any Broadlane Customer (including any entity that becomes a Broadlane Customer after the
Effective Date) in any location within the United States (including the District of Columbia) and
any class of trade may elect to purchase Products pursuant to the terms and conditions of this
Agreement. Supplier must not allow any Broadlane Customer that withdraws or is terminated as a
Broadlane Customer to purchase Products pursuant to the terms and conditions of this Agreement.

2.4 Freedom to Purchase. Except as provided in Section 4.1.1.2, any Broadlane Customer may elect to purchase a
Competing Product without penalty.

3

 

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

 

SECTION 3

SUPPLIER

3.1 Duty to Sell; Provide Products. Except as set forth in Section 2.3, Supplier must offer to sell the Products to any
Broadlane Customer electing to purchase Products under this Agreement. Supplier must make each
Product available to any Customer for direct purchase or to authorized distributors/wholesalers for
a distributed purchase.

3.2 Failure to Supply. If Supplier fails to perform its obligations under Section 3.1 (regarding Supplier’s
duty to make Product available) or under Section 4 (regarding the sale of any Product),
then any Customer may purchase a Competing Product and Supplier must remit to the Customer the
difference between the price of the Product as set forth on Exhibit A and the Customer’s
purchase price of the Competing Product. Supplier must make this payment within 30 days after
receiving documentation of the amount. Supplier must give Broadlane and each Customer reasonable
notice if a Product becomes unavailable to all of Supplier’s customers because of an industry-wide
shortage.

3.3 Business Continuity/Disaster Plan. As a supplier to the health care industry, Supplier realizes the importance of health care
delivery during disasters. Supplier must have a written business continuity/disaster recovery
plan, for which Supplier must maintain and test all critical components on a regular basis.
Supplier’s failure to restore its performance of its obligations under this Agreement within 30
days after an event requiring it to implement the business continuity/disaster recovery plan is a
material breach of this Agreement.

SECTION 4

PURCHASING PRODUCTS

4.1 Pricing.

4.1.1 Pricing.

4.1.1.1 Firm Pricing. Except as provided in Section 4.1.1.2, any Customer may purchase Products at the
Committed Tier pricing. Supplier must not increase the prices on Exhibit A during
the Term. Supplier may decrease the prices set forth on Exhibit A upon prior
written notice to Broadlane, and this notice must include a proposed amended Exhibit
A in electronic format. In addition to these prices, Supplier may offer bulk purchase
options to the Customers that offer additional discounts based on a Customer’s commitment;
but all other terms and conditions of this Agreement apply to those bulk purchase options as
if the prices were listed on Exhibit A.

4.1.1.2 Compliance with Committed Level Requirements. Supplier and Broadlane may conduct periodic reviews of the Customers’ Committed Level
compliance. If any review reveals that any Customer failed or is failing to purchase at the
Committed Level, then Supplier may issue written notice of non-compliance to that Customer
and to

4

 

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

 

Broadlane. If that Customer does not bring its purchases to the Committed Level within
30 days after receiving notice of non-compliance from Supplier; then Supplier has no
retroactive remedy and, as its exclusive remedy, Supplier may move the Customer to the
Access Tier pricing for future purchases, but only after providing 90 days’ prior written
notice to the Customer and Broadlane indicating that (a) the Customer’s access to the
Committed Tier is being terminated, and (b) the Customer is being moved to the Access Tier
pricing. If the Customer subsequently brings its purchases to the Committed Level, then
Supplier must immediately reinstate the Customer’s access to the Committed Tier pricing.

     4.1.1.3 Exception to Compliance. If any Customer purchases Products at the Committed Level
under this Agreement, and either (a) Supplier cannot provide any Product, or (b) the
Customer, in its sole discretion, determines that any Product is not clinically satisfactory
or clinically preferable; then (i) the Customer may, without penalty, purchase Competing
Products from any source, and (ii) those purchases must not apply toward the Customer’s
Committed Level requirements.

     4.1.2 Taxes.

     4.1.2.1 Taxes on Direct Purchases. Supplier must calculate and pay any applicable local and
state sales tax or other taxes with respect to the direct purchase of any Product. Unless
the applicable Customer is tax-exempt, Supplier may invoice the Customer for these taxes if
they are correctly and separately reflected on the invoice.

     4.1.2.2 Property Taxes. The party with title to a Product must pay any property tax.
Supplier must reimburse any Customer for property tax the Customer pays on a Product owned
by Supplier.

     4.1.3 Delivery. Supplier must deliver an ordered Product to the Delivery Location not more
than 90 days after Supplier’s receipt of the Customer’s order for the Product. All prices set
forth on Exhibit A include shipping, but Supplier may pre-pay and invoice the Customer for
any additional costs associated with any expedited delivery requested by the Customer if those
costs are listed as a separate line-item on the Customer’s invoice. The risk of loss of any
Product does not pass to a Customer until the Customer accepts the Product in accordance with
Section I.B of Exhibit D. Upon any Customer’s written request, Supplier must ship
Products “freight collect” to the Customer using the carrier and billing information provided by
the Customer.

     4.1.4 Competitive Pricing. The prices, terms, and conditions under this Agreement must be
equal to or better than those offered to any other customer of Supplier with similar levels of
compliance and exclusivity,
excluding the federal government. To the extent that Supplier is not in compliance with this
Section 4.1.4, Supplier must refund to each Customer the difference between the price set
forth on Exhibit A that the Customer paid to Supplier and the lower, competitive price in
violation of this Section 4.1.4. Within 30 days of determining that Supplier is not in
compliance, Broadlane and Supplier must amend this Agreement to provide the more favorable terms.

5

 

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

 

     4.1.5 Access. If a Customer desires a third party to purchase any Product on its behalf
(including an outsourced clinical engineering service providers, a leasing company financing the
acquisition, etc.), then Supplier must (a) sell that Product to the third party at the same price,
terms and conditions as though the Customer purchased the Product directly, and (b) treat that sale
as a sale to that Customer.

     4.1.6 Market Price. If Broadlane, in its reasonable judgment, determines that (a) there
occurred a material change in the market effecting a Product, and (b) that market change resulted
in a market price for that Product that is lower than the price set forth on Exhibit A;
then, upon notice from Broadlane, Supplier must (i) offer new pricing for that Product that is no
greater than the new market price within 30 days after receiving Broadlane’s notice, or (ii)
release any commitment requirements under this Agreement relating to that Product within 30 days
after receiving Broadlane’s notice.

4.2 Ordering. Any Customer may place a purchase order for any Product through BroadLink or the
Web-based Interface (if applicable), an authorized distributor, by telephone, fax, or through
electronic order entry directly through Supplier at:

ZONARE Medical Systems, Inc.

1061 Terra Bella Avenue

Mountain View, California 94043

Cread@zonare.com

Telephone No.: 877.913.9663

Fax No.: 650.230.0255

There are no minimum order requirements or fees for any Product order, but a Customer must place an
order only in Supplier’s standard sale unit of measure.

4.3 Invoicing. Supplier is solely responsible for invoicing the Customers for the Products.

4.4 Payment. For all purchases of Equipment, there is [*] due upon ordering the Equipment, but a
Customer must pay (a) [*] of the Equipment’s purchase price upon delivery of the Equipment to the
Delivery Location, and (b) [*] of the Equipment’s purchase price upon acceptance of the Equipment
pursuant to Section I.B of Exhibit D. For all other Products, a Customer must pay
for an ordered Product within [*] after the Customer’s receipt of the invoice, with a [*]
additional discount if Supplier receives payment within [*] after the Customer’s receipt of the
invoice. [*]

4.5 Products.

     4.5.1 New Products. If Supplier begins to sell a similar product not listed on Exhibit
A, then Supplier must notify Broadlane within 30 days after governmental approval or Supplier’s
release of the product. At Broadlane’s discretion, Broadlane and Supplier may amend Exhibit
A to add the new Product at a mutually agreed-upon price.

6

 

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

 

     4.5.2 Discontinuing Products. Supplier may discontinue the manufacture of any Product, but
Supplier must replace the discontinued Product with a functionally equivalent Product at a price
equal to or less than the discontinued Product.

     4.5.3 Replacement Products. If Supplier discontinues any Product and fails to provide a
substitute of comparable functionality at a price not higher than the discontinued Product, then
the commitment requirements set forth in this Agreement (if any) do not apply to a Customer’s
purchase of a Competing Product.

     4.5.4 [*]. If [*], including Supplier, then the [*] set forth in this Agreement (if any)
[*] and Broadlane [*] so the Broadlane Customers
and the Customers [*]. [*] set forth in this
Agreement (if any) [*] and Broadlane[*].

     4.5.5 Product-Specific Standard Terms and Conditions. Additional terms and conditions
related to the Products are set forth on Exhibit D.

4.6 Returns. Any Customer may return a Product pursuant to Supplier’s return policy, as set forth
on Exhibit E.

4.7 Warranties.

     4.7.1 Product Warranties. The warranty for each Product is set forth on Exhibit F.
Supplier provides a standard [*] warranty. In addition, Supplier provides a basic warranty on the
scan engine and transducers to cover phone support, parts and Software Upgrades for [*].

     4.7.2 Services Warranty. Supplier represents and warrants that: (a) its Representatives
have the skills and qualifications necessary to perform services under this Agreement in a timely,
competent, and professional manner in accordance with the highest industry standards and all
applicable governmental requirements, laws, ordinances, rules, and regulations; and (b) Supplier is
able to fulfill the technical service requirements and all other services requirements of this
Agreement.

     4.7.3 Manufacturers’ Warranties. Upon any Customer’s request, Supplier must provide to
Broadlane and the Customer copies of all warranties for Products that Supplier receives from its
vendors and all manufacturers’ warranties. Supplier assigns to Broadlane and to each Customer all
vendors’ and manufacturers’ warranties and rights of action under these warranties and authorizes
Broadlane and the Customers to enforce these warranties.

     4.7.4 Warranties Cumulative. The warranties provided under this Agreement are cumulative
and apply to any replacement or modification of the Products by Supplier or any of its
Representatives, and these warranties are in addition to any warranties provided at law or in
equity.

SECTION 5

ADMINISTRATIVE FEES

7

 

[*] Certain information in this document has been omitted and filed separately with the Securities
and Exchange Commission. 

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

 

5.1 Calculation of Administrative Fees. Each month, Supplier must pay Broadlane a fee equal to
[*] of the aggregate purchase price for all Products that Customers purchased under this Agreement
during the prior calendar month, less any credits and returns (the “Administrative Fee”).
Supplier must pay the Administrative Fee no later than 30 days after the end of each applicable
calendar month. Supplier must only pay an Administrative Fee on a Customer’s purchases of Products
pursuant to the terms and conditions of this Agreement, any related agreement, any related
promotion under this Agreement, or any other applicable written agreement between Broadlane and
Supplier.

5.2 Administrative Fee Payments. Supplier must pay to Broadlane interest on any past due Administrative Fee owing to
Broadlane under this Agreement at the lesser of (a) [*] per month, or (b) the maximum interest rate
legally permitted. Supplier must send to Broadlane all Administrative Fee payments due to
Broadlane at the addresses set forth below:

Broadlane, Inc.

P.O. Box 915119

Dallas, Texas 75391-5119

E-mail:  slsrpt@broadlane.com

(for transmittal of Sales Data

Reports pursuant to Section 7.2)

Overnight Delivery Address

JP Morgan Chase

Dallas Wholesale Lockbox Department

Maxus Energy Tower

717 North Harwood Street, 6th Floor

Dallas, Texas 75201-6507

Attn: Broadlane, Inc., Lockbox 915119

Wire Transfer

Broadlane, Inc.

JP Morgan Chase

Account # [*]

ABA # [*]

Reference: (Admin. Fee, Contract Number, Payment Period)

SECTION 6

TERMINATION

6.1 Termination for Breach. If any party asserts that another party committed a material breach
of this Agreement (including any failure to pay Administrative Fees), then the non-breaching party
must notify the breaching party in writing of the specific breach and request that it be cured. If
the breaching party does not cure the breach within 30 days after notice, then the

8

 

[*] Certain information in this document has been omitted and filed separately with the Securities
and Exchange Commission. 

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

 

non-breaching
party may terminate this Agreement without cost or penalty by sending written notice to the
breaching party.

6.2 Termination for Ineligibility. Broadlane may immediately terminate this Agreement if Supplier
or any of Supplier’s key personnel is convicted of an offense related to health care or listed by a
federal agency as being debarred, excluded, or otherwise ineligible for federal program
participation.

6.3 Effect of Termination. The termination of this Agreement by either party (a) does not excuse
either party from performing any duty or obligation assumed under this Agreement before
termination, (b) does not have the effect of waiving any right either party may have to obtain
performance, and (c) does not preclude the non-breaching party from pursuing any and all remedies
available to it at law or equity.

SECTION 7

REPORTING REQUIREMENTS

7.1 Pricing and Other Data. Supplier must provide Broadlane with pricing information (and related
cross-reference, Product attributes, and Product categorization data) in the electronic format as
set forth on http://vendors.broadlane.com/DataTemplates.aspx, which are subject to revision from
time-to-time. Broadlane and Supplier must mutually agree upon the method of transmission of this
pricing data. At Broadlane’s request, Supplier must provide Broadlane with a complete catalog of
all of its products (including the Products) in electronic format.

7.2 Periodic Reporting. Accompanying each Administrative Fee payment, Supplier must provide
Broadlane with a Sales Data Report in the electronic format as set forth on
http://vendors.broadlane.com/DataTemplates.aspx, which are subject to revision from time-to-time.
Supplier must pay Broadlane its hourly fee for Broadlane to re-format the data Supplier sends in
any format not listed here.

SECTION 8

MISCELLANEOUS

8.1 Broadlane Standard Terms and Conditions. Broadlane’s standard terms and conditions are set
forth on Exhibit C.

8.2 E-Commerce. Broadlane maintains BroadLink and the Web-based Interface as its private
electronic market places. At Broadlane’s request, Supplier must use either of BroadLink or the
Web-based Interface, and execute a BSA or other e-commerce support agreement in a form mutually
agreeable to Supplier and Broadlane within 60 days after Broadlane’s request. If Supplier does not
execute a BSA or other support agreement as set forth in this Section 8.2, then Broadlane
may, as its sole remedy, terminate this Agreement upon 30 days’ prior written notice without cost
or penalty.

9

 

[*] Certain information in this document has been omitted and filed separately with the Securities
and Exchange Commission. 

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

 

8.3 Visitation Policies. In connection with sending a Representative to visit any Customer,
Supplier and its Representative must comply with that Customer’s visitation policy. Broadlane
recommends that Supplier contact each Customer directly prior to any proposed visit to obtain a
current copy of that Customer’s visitation policy.

8.4 Force Majeure. The performance by either party of any obligations to be performed under this
Agreement (other than an obligation to pay money or issue credit) is excused to the extent that
performance is prevented by an act of God or the public enemy, insurrections, riots, labor disputes
(including lockouts or boycotts), fire, explosion, flood, government order, shortage of materials
or energy, or other unforeseeable causes beyond the control and without fault or negligence of the
party so affected. The party so affected must give prompt written notice to the other party of the
cause and take whatever reasonable steps are necessary to relieve the effect of the cause as
rapidly as possible.

8.5 Controlling Terms. If there is a conflict between this Agreement and any other writing or
correspondence between Supplier, Broadlane, or any Customer, then the terms of this Agreement
control. If there is an internal conflict of terms within this Agreement, then the term found in
the part of this Agreement first listed below controls: the main body of the Agreement; the
exhibits in order of priority as set forth in the table following the signature blocks; any other
exhibits provided to Broadlane by Supplier.

8.6 Entire Agreement. This Agreement may be executed in any number of counterparts, each of which
is deemed an original but all of which constitute the same instrument. This Agreement, including
all exhibits and attachments (all of which are incorporated in this Agreement by reference),
constitutes the entire agreement on this subject and supersedes all previous and contemporaneous
communications, representations, or agreements regarding the referenced subject matter. This
Agreement may not be modified orally, and no modification, amendment, or supplement is binding
unless it is in writing and signed by authorized representatives of Broadlane and Supplier.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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[*] Certain information in this document has been omitted and filed separately with the Securities
and Exchange Commission.

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

 

Duly authorized representatives of the parties executed this Agreement as written below.

	 	 	 	 	 	 	 	 	 
	Broadlane, Inc.	 	ZONARE Medical Systems, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	By: 

Name:

	 	/s/ [*]
 

[*]
	 	By:

Name:
	 	/s/ Michael Thompson
 

Michael Thompson
	 	 
	Title:

	 	[*]
	 	Title:
	 	Director, National Accounts

and Business Development	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	4/4/06
	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 

Reviewed as to form. ALH Date: 3/1/06

ZONARE Portable Ultrasound Equipment FINAL v09 03-01-06.doc

	 	 	 	 	 
	 	 	 	 	Order of
	Exhibits	 	 	 	Priority
	A
	 	Products and Pricing	 	4
	B
	 	Definitions	 	1
	C
	 	Broadlane’s Standard Terms and Conditions	 	2
	D
	 	Standard Terms and Conditions – Products	 	3
	E
	 	Supplier’s Return Policy	 	5
	F
	 	Supplier’s Product Warranties	 	6
	G
	 	Environmental and Diversity Contracting Disclosures	 	7

11

 

EXHIBIT A

PRODUCTS AND PRICING

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number	 	 	 	 	 	 
	 	 	 	 	of Eaches	 	 	 	 	 	 
	 	 	 	 	Per	 	 	 	 	 	 
	 	 	 	 	Purchase	 	Purchase	 	 	 	 
	Catalog	 	 	 	Unit of	 	Unit of	 	 	 	 
	Number	 	Catalog/Product Description	 	Measure	 	Measure	 	Access Price	 	Committed Price
	Z003
	 	z.one Ultrasound System

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z001
	 	Additional z.one Scan Engine

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z002
	 	Additional z.one SuperCart

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z009
	 	Simple Cart

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z101
	 	C5-2 Curvilinear Transducer

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z102
	 	L10-5 Linear Transducer

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z103
	 	E9-4 Endovaginal Transducer

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z104
	 	P4-1 Deep Abdominal Transducer

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z105
	 	P10-4 Neonatal Transducer

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z150
	 	C5-2 Biopsy Starter Kit

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z151
	 	L10-5 Biopsy Starter Kit

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z152
	 	E9-4 Biopsy Guide Kit – Disposable

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z200
	 	DICOM Networking

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z301
	 	Battery

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z302
	 	AC Power Adapter

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z303
	 	256 MB CompactFlash

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z304
	 	2 GB CompactFlash

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z305
	 	Scan Engine Carrying Bag

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z306
	 	Stylus

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z307
	 	Additional Hardcopy Users Manual

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z308
	 	Hardcopy Service Manual

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z310
	 	Dual Battery Charger

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z320
	 	Additional Quick Start Guide

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z401
	 	B&W Thermal Printer (Sony UP-895MD) Mounted

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z402
	 	Sony UP-895MD Mounting Kit

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z403
	 	Color Thermal Printer (Sony UP-21 MD} Not Mounted

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z404
	 	DVD Video Recorder (Panasonic LQ-MD800}

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z501
	 	Platinum Plus Service Coverage for z.one
Utrasound System

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z502
	 	Platinum Plus Service Coverage for z.one
Scan Engine Only

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z503
	 	Platinum Plus Service Coverage for Transducer

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z504
	 	Platinum Service Coverage for z.one
Ultrasound System

	 	 	1	 	 	EA
	 	[*]
	 	[*]

A-1 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number	 	 	 	 	 	 
	 	 	 	 	of Eaches	 	 	 	 	 	 
	 	 	 	 	Per	 	 	 	 	 	 
	 	 	 	 	Purchase	 	Purchase	 	 	 	 
	Catalog	 	 	 	Unit of	 	Unit of	 	 	 	 
	Number	 	Catalog/Product Description	 	Measure	 	Measure	 	Access Price	 	Committed Price
	Z505
	 	Platinum Service Coverage for z.one
SuperCart Only

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z506
	 	Platinum Service Coverage for z.one Scan
Engine Only

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z507
	 	Platinum Service Coverage for Transducer

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z508
	 	Damage/Theft Coverage for z.one Scan Engine
Only (in Warranty)

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z509
	 	Damage/Theft Coverage for Transducer (in
Warranty)

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z510
	 	Labor & Travel Hourly Bill Service

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z511
	 	Technical Training Course

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z512
	 	Annual Renewal Fee for Technical Training
Course update

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z550
	 	1 Day Applications Training subsequent to
initial system installation

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z513
	 	Service Support Agreement Basic: Scan Engine

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z514
	 	Service Support Agreement Basic: SuperCart

	 	 	1	 	 	EA
	 	[*]
	 	[*]
	Z515
	 	Service Support Agreement Basic: Transducer

	 	 	1	 	 	EA
	 	[*]
	 	[*]

A-2 

 

EXHIBIT B

DEFINITIONS

     “Access Tier” means Tier 1 on Exhibit A.

     “Administrative Fee” has the meaning given to that term in Section 5.1.

     “Affiliate” means any entity that controls, is controlled by, or is under common
control with a party.

     “Agreement” has the meaning given to that term in the first paragraph of this
Agreement.

     “AHLA Rules” means the American Health Lawyers Association Alternative Dispute
Resolution Service Rules of Procedure for Arbitration, as amended (available at www.
healthlawyer.org).

     “Anti-Kickback Statute” means the federal anti-kickback statute codified at 42 U.S.C.
§ 1320a-7b, as amended.

     “Arbitration Act” means the federal arbitration statute set forth at 9 U.S.C. §§ 1-16,
as amended.

     “Broadlane” has the meaning given to that term in the first paragraph of this
Agreement.

     “Broadlane Customer” has the meaning given to that term in Section 1.1.1.

     “BroadLink” means the private electronic marketplace created and maintained by
Broadlane.

     “BSA” means a BroadLink Supplier Agreement.

     “Committed Level” means [*] of the Customer’s requirements for the Products and items
functionally equivalent to the Products.

     “Committed Tier” means Tier [*] on Exhibit A.

     “Competing Product” means any item that is functionally equivalent to a Product that
is sold by a third-party supplier.

     “Confidential Information” has the meaning given to that term in Section II.A
of Exhibit C.

     “Contract Fees” means Administrative Fees, services fees, or other amounts due to
Broadlane or the Customers.

B-1 

 

     “Customer” has the meaning given to that term in Section 1.1.2.

     “DEHP” means di-ethylhexyl phthalate.

     “Delivery Location” means the Customer’s place of business or any other location
specified by the Customer for delivery of any Product.

     “Disclosing Party” means Broadlane, Supplier or any Customer that discloses
Confidential Information.

     “Discount Safe-Harbor” means the regulatory safe-harbor of the Anti-Kickback Statute
for discounts set forth at 42 C.F.R. § 1001.952(h), as amended.

     “Dispute” means any controversy, claim, or disagreement (whether in contract or in
tort) arising out of or relating to this Agreement, that cannot be resolved through the normal
course of business, between or among any of Broadlane, Supplier, or any Customer.

     “Effective Date” has the meaning given to that term in the first paragraph of this
Agreement.

     “Equipment” means any Product that is equipment.

     “FAR” means the Federal Acquisition Regulation at 48 C.F.R. pt. 52.

     “FDA” means the Food and Drug Administration.

     “GPO Safe-Harbor” means the regulatory safe-harbor of the Anti-Kickback Statute for
group purchasing organizations set forth at 42 C.F.R. § 1001.952(j), as amended.

     “HIN” means Health Identification Number.

     “HIPAA” means the Health Insurance Portability and Accountability Act of 1996 and the
rules and regulations promulgated under its authority, as amended.

     “Infringement Claim” means any assertion that a Product furnished to a Customer under
this Agreement infringes any existing patent, trademark, copyright, or other proprietary right or
any third party.

     “Material Accounting Error” means (a) with regard to audits of invoices, an aggregate
variance from all applicable invoices in excess of 5% of the aggregate amount shown on all of the
invoices; and (b) with regard to audits of Contract Fees, an aggregate underpayment of all Contract
Fees in excess of 5%.

     “Medical Information Act” means Confidentiality of Medical Information Act codified at
Cal. Civ. Code §§ 56-56.31, as amended.

     “Misquote Liquidated Damages” means an amount equal to 50% of the difference between
(a) any aggregate price quotation (including amounts related to the Products, warranties, parts,
and shipping) to any Customer in which any price term is inconsistent with the terms and

B-2 

 

conditions of this Agreement; and (b) the aggregate price (as set forth on Exhibit A)
of the Products listed in the price quotation.

     “MSDS” means a Material Safety Data Sheet.

     “New Technology” means any current technology that, in the good faith opinion of
Broadlane or any of any Customer’s clinicians, is more than an enhancement or improvement to an
existing Product, that (a) offers significant technological advancements, (b) would significantly
improve clinical outcomes, or (c) would significantly streamline work processes, as compared to
existing Products.

     “OIG” means the Office of Inspector General of the Department of Health and Human
Services.

     “PBT” means persistent, accumulative and toxic compounds designated as an EPA Waste
Minimization Priority Chemical at http://www.epa.gov/epaoswer/hazwaste/minimize/chemlist.htm.

     “Product” has the meaning given to that term in Section 1.1.3.

     “Public Announcement” means any publicity, press releases, advertising, or other
materials distributed to any prospective customer or other third-party.

     “Purchased Part” means any z.one system part (either mechanical or electrical) which
is purchased by the Customer and is not covered under the warranty or a service contract.

     “PVC” means polyvinyl chloride plastic.

     “Receiving Party” means Broadlane, Supplier or any Customer that receives Confidential
Information.

     “Replacement Part” means any z.one system part that has been identified by Supplier as
a field replaceable part.

     “Representative” means any or all of any party’s directors, officers, employees,
agents, or other representatives.

     “Return Part” has the meaning given to that term in Section C of Exhibit
F.

     “Requirements” means various federal laws, executive orders and regulations regarding
equal opportunity, and affirmative action.

     “RMA” means Return Material Authorization (an authorization from Supplier to return
Products from the Customer).

     “Sales Data” means any data regarding the purchase and sale of Products under this
Agreement.

B-3 

 

     “Sales Data Report” means a monthly report of all Products purchased by each Customer,
as described in Section 7.2.

     “SEC” means the Securities and Exchange Commission.

     “Secretary” means the Secretary of the Department of Health and Human Services.

     “Software” has the meaning given to that term in Section A.1 of Exhibit
F.

     “Software Upgrade” means any improvement, enhancement, bug fix, or correction that
enables the Software to perform in accordance with the Product specifications as defined at the
time of Product purchase. Software Upgrades do not include any new Software features or new
hardware, If additional hardware is required to run the Software Upgrade.

     “Software Warranty Period” has the meaning given to that term in Section A.2
of Exhibit F.

     “Spare Part” means any z.one system part that has been identified by Supplier as a
field replaceable part.

     “Supplier” has the meaning given to that term in the first paragraph of this
Agreement.

     “Term” has the meaning given to that term in the first paragraph of this Agreement.

     “Web-based Interface” means the Internet-based interface to BroadLink created and
maintained by Broadlane.

B-4 

 

EXHIBIT C

BROADLANE’S STANDARD TERMS AND CONDITIONS

I. AUDIT RIGHTS

A. Broadlane Audit of Supplier.

     1. Frequency; Scope. No more than once every 12 months, Supplier must permit
Broadlane or a third-party auditor appointed by Broadlane to conduct an audit of Supplier’s books
and records relating to orders, invoices, sales reports, and discounts regarding the Customers’
purchases of Products under this Agreement, for the purposes of determining whether Supplier:

	 	(a)	 	extended the correct pricing (including proper rebates) to the
Customers, and
	 
	 	(b)	 	paid the correct Contract Fees.

     2. Reimbursements. If any audit reveals any variance from any invoice to any
Customer, then Supplier must immediately refund to the Customer any overcharge received from the
Customer. If any audit reveals any underpayment of Contract Fees to Broadlane or any Customer (as
applicable), the Supplier must immediately pay to Broadlane or the Customer any underpayment due to
Broadlane or the Customer. In addition, if any audit
reveals a Material Accounting Error, then
Supplier must reimburse Broadlane for all costs and expenses incurred in conducting the audit.

     3. Procedures. Broadlane must conduct any audit pursuant to this Section I.A
in accordance with the procedures set forth in Section I.C of this Exhibit C.

B. Customer Audit of Supplier.

     1. Frequency; Scope. No more than once every 12 months with regard to any Customer,
Supplier must permit the Customer or a third-party auditor appointed by the Customer to conduct an
audit of Supplier’s books and records relating to orders, invoices, sales reports, and discounts
regarding that Customer’s purchase of Products under this Agreement, for the sole purpose of
determining whether Supplier extended the correct pricing (including proper rebates) to that
Customer.

     2. Reimbursements. If any audit reveals any variance from any invoice of the Customer
initiating the audit, Supplier must immediately refund to the Customer any overcharge received from
the Customer. If any audit reveals any underpayment of Contract Fees to Broadlane or any Customer
(as applicable), the Supplier must immediately pay to Broadlane or the Customer any underpayment
due to Broadlane or the Customer. In addition, if any audit

C-1 

 

reveals a Material Accounting Error, then Supplier must reimburse the Customer for all costs
and expenses incurred in conducting the audit.

     3. Procedures. Each Customer must conduct any audit pursuant to this Section
I.B in accordance with the procedures set forth in Section I.C of this Exhibit
C.

C. Audit Procedures.

     1. Conduct. All audits pursuant to this Section I must be conducted: (a)
upon reasonable prior written notice during the regular business hours at the location where
Supplier keeps the relevant records; and (b) in a manner not to unduly interfere with Supplier’s
operations.

     2. Overcharges and Undercharges.

     (a) Disputes. If any audit conducted pursuant to this Section I
produces documentation of any overcharges or underpayments, then Supplier must resolve any
issues regarding that audit conclusion within 30 days after presentation of the audit
results to Supplier. If any issue regarding audit conclusions is not resolved within
30 days after presentation, then any party may submit that issue as a Dispute for resolution
pursuant to Section IV of this Exhibit C.

     (b) Payments. Supplier must pay to the Customer or Broadlane (as applicable);

     (i) any undisputed overcharge or underpayment (and any related audit cost and
expense) within 30 days after presentation of the audit results to Supplier, and

     (ii) any overcharge, underpayment, or audit cost and expense submitted as a
Dispute within 30 days after final resolution of the Dispute.

     (c) Interest. Supplier must pay to the Customer or Broadlane (as applicable)
interest on any past due overcharge, underpayment, or audit cost and expense owing to the
Customer or Broadlane under this Section I at the lesser of (i) 1.5% per month, or
(ii) the maximum interest rate legally permitted.

II. CONFIDENTIALITY

A. Confidential Information.

     1. Definition. “Confidential Information” means any information or analyses
(including any derivative information or analyses that a Disclosing Party may develop) provided by
a Disclosing Party that is:

     (a) particularized and identifiable to the Disclosing Party;

     (b) non-public, confidential, and proprietary to the Disclosing Party; and

C-2 

 

     (c) required to be maintained in the strictest confidence and to not be disseminated to
persons other than the Receiving Party and its Representatives.

     2. Specific Categories. Specifically, “Confidential Information” includes,
but is not limited to:

     (a) information and data regarding the Disclosing Party’s business, operations,
business and marketing plans, Representatives, properties, business goals and strategies,
financial information and reports, customer lists, technical data, formulae, programs,
hardware, software, technical processes, and other technical information, whether or not in
writing;

     (b) the subject matter of any discussions or correspondence between or among Broadlane,
Supplier and any Customer; and

     (c) any analyses, compilations, projections, studies, or related materials prepared by
the Disclosing Party.

     3. Exclusions. “Confidential Information” does not include:

     (a) the existence of this Agreement (including the Products);

     (b) any information that,

     (i) at the time of disclosure is:

     (A) generally available to and known by the public (other than as a
result of its unauthorized disclosure by a party); available to a party on a
non-confidential basis prior to disclosure; received by a party on a
non-confidential basis from a third person who is not under an obligation to
maintain the confidentiality of the information;

     (B) aggregated and blinded data that cannot be identified to a
Disclosing Party; or

     (ii) at any time, consists of intellectual property independently developed
without reference or use of any Confidential Information.

B. General Treatment of Confidential Information. Except as provided in Section II.C
of this Exhibit C:

     1. A Receiving Party must hold all Confidential Information in strictest confidence, and must
not disclose any Confidential Information to any person except its Affiliates and Representatives
that have a need to have access to the Confidential Information in connection with Receiving Party
performing its obligations under this Agreement.

     2. Without the Disclosing Party’s prior written consent, a Receiving Party must not use any
Confidential Information in any manner that is:

C-3 

 

	 	(a)	 	competitive with the business of the Disclosing Party, or
	 
	 	(b)	 	adverse to the Disclosing Party’s business interests and objectives.

     3. A Receiving Party must advise each of its Representatives of the obligation to keep all
Confidential Information strictly confidential and the Receiving Party is responsible for any
breach of this Agreement by any of its Representatives.

C. Specific Treatment of Confidential Information.

     1. This Agreement is Confidential. Except as provided in this Section II,
Broadlane and Supplier may not disclose the terms and conditions of this Agreement to any other
person or entity other than (a) a Broadlane Customer, (b) an authorized distributor (if
applicable), or (c) as required by law.

     2. Broadlane Limitations. Broadlane may disclose relevant information regarding this
Agreement (including the pricing set forth on Exhibit A) to any Broadlane Customer, and to
any prospective Broadlane Customers (and that have agreed to confidentiality obligations consistent
with this Section II) in connection with Broadlane’s business offerings (including group
purchasing, consulting, supply chain management, etc.), for the purpose of demonstrating cost
savings.

     3. Supplier Limitations.

     (a) Protection of Customer’s Information. Supplier must not in any manner
disclose any information relating to the purchases by any Customer of any Products or
purchases made through BroadLink, except to the Customer or Broadlane.

     (b) Protection of BroadLink Information. Supplier must not in any manner
disclose any business or technical Information relating to BroadLink.

D. Publicity. Except as permitted by Section II.C of this Exhibit C, Supper
may not make any Public Announcement concerning the existence of this Agreement or its terms and
conditions without Broadlane’s prior written approval. Only with Broadlane’s prior written consent
may Supplier: (i) use the names, trade names, trademarks, service marks, trade dress, or logos of
Broadlane, Inc. or any Broadlane Customers in any Public Announcement; or (ii) refer to the
existence of this Agreement in any Public Announcement. Only with Supplier’s prior written consent
may Broadlane use Supplier’s name, trade name, trademarks, service marks, trade dress, or logos in
any Public Announcement. Broadlane and Supplier may distribute marketing materials for purposes of
promoting this Agreement to Broadlane Customers, but neither party may distribute any marketing
materials that may be interpreted as originating from the other party.

E. Data Ownership. Each of Broadlane, Supplier and any Customer have all ownership, rights and title to any
unique Information that it provides or discloses in connection with the administration of this
Agreement or in connection with any transaction under this Agreement. Supplier and the applicable
Customer jointly own relevant Sales Data. Pursuant to Section 7, Supplier must disclose
Sales Data to Broadlane and grants Broadlane permission to use this information in providing
services to the Broadlane Customers in accordance with this Section II.

C-4 

 

F. Legal Obligations to Disclose. Regardless of anything in this Section II to the
contrary, if any Receiving Party or its Representatives are requested or required (by oral
questions, written interrogatories, requests for information or documents, subpoena, civil or
criminal Investigatory demand, or similar process) to disclose any Confidential Information, then
the Receiving Party must provide the Disclosing Party with notice of the request or requirement so
that the Disclosing Party may seek an appropriate protective order or waive compliance with this
Section II. If, in the absence of a protective order or the receipt of a waiver under this
Agreement, a Receiving Party or its Representatives nonetheless, in the opinion of its counsel, is
compelled to disclose any Confidential Information, then the Receiving Party or its Representatives
may disclose only that portion of the Confidential Information that its counsel advises is legally
required to be disclosed. Broadlane, Supplier and each Customer must take reasonable steps to
cooperate with each other in seeking to obtain any protective order or other assurance of
confidential treatment of the Confidential Information.

G. Remedies. As there is no adequate remedy at law, a Disclosing Party may seek equitable
relief (including Injunctive or mandatory relief) if there is any breach or threatened breach of
this Section II, and a Receiving Party must not oppose the granting of this relief. A
Disclosing Party’s entitlement to equitable relief pursuant to this Section II.G must not
be deemed to be an exclusive remedy under this Agreement, but is in addition to all other remedies
available in law or equity.

III. INDEMNIFICATION

A. Indemnification of Customers. Supplier must indemnify, defend, and hold each Customer and
its affiliates, officers, directors, and agents harmless from and against all damages, claims, or
other losses arising from a breach of this Agreement by Supplier or arising from any Product. This
indemnity must include provision of a defense to any third-party claims and the advance of costs
related to this defense, but does not extend to any portion of the loss due to a Customer’s
negligence or willful misconduct.

B. Indemnification of Broadlane. Supplier must indemnify, defend, and hold Broadlane and its
affiliates, officers, directors, and agents harmless from and against all damages, claims, or other
losses arising from a breach of this Agreement by Supplier or arising from any Product. This
indemnity must include provision of a defense to any third-party claims and the advance of costs
related to this defense, but does not extend to any portion of the loss due to Broadlane’s
negligence or willful misconduct.

C. Indemnification of Supplier. Broadlane must indemnify, defend, and hold Supplier and its
affiliates, officers, directors, and agents harmless from and against all damages, claims, or
losses caused by Broadlane’s breach of any term in this Agreement. This indemnity must include
provision of a defense to any third-party claims and the advance of costs related to this defense,
but does not extend to any portion of the loss due to Supplier’s negligence or willful misconduct.

D. Infringement Indemnification. Supplier must indemnify, defend, and hold Broadlane and
Customer and their respective affiliates, officers, directors, and agents harmless from and against
any Infringement Claim. If a Product becomes the subject of an Infringement Claim or becomes the
subject of an injunction or settlement prohibiting the use of a Product, then Supplier must at its

C-5 

 

own expense (i) procure for each Customer the right to continue using the Product, (ii) replace the
Product with non-Infringing Supplier products with equivalent or better capacity performance, or
(iii) refund to each Customer the price paid for the Product, This Indemnity does not extend to any
portion of the loss due to any Customer’s negligence or willful misconduct.

E. Insurance.

     1. General Requirements. All Insurance required by this Section III.E must:

     (a) name Broadlane and each Customer as an additional insured,

     (b) not be cancelable with less than 30 days’ prior written notice to Broadlane and
each Customer,

     (c) be provided by an “admitted carrier” with not less than an “A” A.M. Best rating,
and

     (d) be endorsed to include a waiver of subrogation in favor of Broadlane and each
Customer.

     2. Basis of Coverage. All coverage should be obtained on occurrence basis forms.
Coverage may be provided on a claims-made basis, but Supplier must (prior to the effective date of
termination of Supplier’s current Insurance coverage and at its sole expense) either:

     (a) procure a replacement policy having a retroactive date no later than the Effective
Date, or

     (b) (i) purchase unlimited tall coverage in the amounts required in this Section
III.E for all claims arising out of Incidents occurring:

     (A) prior to termination of Supplier’s current coverage, or

     (B) prior to expiration or earlier termination of this Agreement, and

     (ii) provide Broadlane with a certificate of insurance evidencing that
coverage.

     3. Supplier Coverage. At no cost to Broadlane or any Customer, during the Term
Supplier must secure and maintain insurance in the amounts and types set forth in this
Section III.E.3. Annually, Supplier must provide Broadlane with a certificate of insurance
evidencing the coverage required by this Section III.E.3.

     (a) Commercial General Liability Insurance. Supplier must maintain primary
commercial general liability insurance to cover Supplier and its employees for bodily injury
and property damage to third parties in an amount not less than $1 million dollars per
occurrence and $2 million dollars general aggregate. Supplier must maintain insurance
coverage including: (i) products/completed operations in an amount of not less

C-6 

 

than $2
million aggregate, (ii) blanket contractual liability in an amount of not less than $1
million per occurrence, and (iii) personal/advertising injury in an amount not less than $1
million dollars per occurrence. All limits are in addition to defense costs.

     (b) Workers’ Compensation Insurance. Supplier must maintain workers’
compensation coverage as required by statute, which (unless otherwise agreed to by Broadlane
and Supplier) must be in the form of a workers’ compensation insurance policy. Supplier
must maintain employer’s liability insurance in an amount not less than (1) $1 million per
accident, (ii) $1 million for disease policy limit, and (iii) $1 million disease coverage
per employee.

     (c) Commercial Automobile Liability Insurance. Supplier must maintain primary
commercial automobile liability insurance to cover Supplier and its employees for bodily
injury and property damage to third parties arising from the ownership, maintenance, or use
of an owned, non-owned, or hired vehicle in an amount not less than $1 million per
occurrence combined single limit.

     (d) Umbrella Liability Insurance. Supplier must maintain an umbrella liability
policy of not less than $4 million, in excess of the commercial general liability,
employer’s liability, and commercial automobile liability coverage.

     4. Subcontractor Coverage. Supplier must require all subcontractors it uses in
conjunction with this Agreement to secure and maintain insurance in the amounts and types set forth
in Section III.E.3 (as if Supplier performed the work or provided the service performed or
provided by the subcontractor), except that each subcontractor must maintain an umbrella liability
policy of not less than $10 million, in excess of the commercial general liability, employer’s
liability, and commercial automobile liability coverage. Annually, each subcontractor must provide
Broadlane with a certificate of insurance evidencing the coverage required by this
Section III.E.4.

IV. DISPUTE RESOLUTION

A. Arbitration.

     1. Procedures. Any Dispute must:

     (a) except as otherwise provided in this Section IV.A, be settled by binding
arbitration in accordance with the AHLA Rules, and to the extent of the subject matter of
the arbitration, must be binding not only on all parties to the Dispute, but on any other
Affiliate of a party to the Dispute to the extent that the Affiliate joins in the
arbitration; and

     (b) governed by the Arbitration Act.

     2. Location. Arbitration pursuant to this Section IV.A. must be held in
Dallas, Texas.

     3. Damages. The arbitrator’s award must be:

C-7 

 

     (a) the sole and exclusive remedy of the parties to the Dispute, and

     (b) enforceable in any court of competent jurisdiction, subject only to revocation on
grounds of fraud or clear bias on the part of the arbitrator.

B. Limitation. Nothing in this Section IV limits any party’s rights or obligations
regarding indemnification for third-party claims pursuant to Section III of this
Exhibit C.

V. REGULATORY COMPLIANCE

A. Safe Harbor. Supplier must comply with the applicable requirements of the Discount
Safe-Harbor.

B. Federal Program Participation. The OIG Special Advisory Bulletin on the Effect of
Exclusions on Participation in Federal Health Care Programs, dated September 30, 1999, clarifies
the OIG’s sanction authority to impose civil money penalties and deny reimbursement under federal
health care programs of any and all products or services if the products or services are provided
by an excluded entity. (64 Fed. Reg. 52791 (1999)) The OIG Special Advisory Bulletin specifically
provides that “items or equipment sold by an excluded manufacturer or supplier used in the care or
treatment of beneficiaries and reimbursed, directly or indirectly, by a federal health care program
violate the OIG’s exclusion.” S upplier represents and warrants that: (i) neither it, nor any of
its key personnel, have been convicted of an offense related to health care or listed by a federal
agency as being debarred, excluded, or otherwise ineligible for federal program participation as of
the Effective Date; and (ii) Supplier must immediately notify Broadlane and each Customer in
writing if any of these events occurs.

C. HIPAA. This Agreement and certain data that may be exchanged under this Agreement may be
subject to (i) HIPAA, and (ii) the Medical Information Act, and Supplier may be considered a
“business associate” of a Customer for purposes of HIPAA. If any Customer determines that
Supplier must agree to additional terms to comply with HIPAA, the Medical information Act, or any
other privacy law or regulation, then Supplier must negotiate in good faith with the Customer for
mutually agreeable terms. If the Customer and Supplier do not reach agreement, then the Customer
may terminate its participation under this Agreement without cost or penalty by providing 30 days’
prior written notice to Supplier.

D. Equal Opportunity. Some Customers are government contractors and are subject to the
Requirements. Some suppliers and subcontractors who contract with these Customers also must comply
with these Requirements. Broadlane notifies Supplier that Supplier may be subject to certain
Requirements and incorporates by reference the following clauses from the FAR: (a) Equal
Opportunity (Feb. 1999) at FAR 52.222-26; (b) Equal Opportunity for Special Disabled Veterans,
Veterans of the Vietnam Era, and other Eligible Veterans (Dec. 2001) at FAR 52.222-35; (c)
Affirmative Action for Workers with Disabilities (June 1998) at FAR 52.222-36; and (d) Small
Business Subcontracting Plan (Oct. 1999) at FAR 52.219-9.

E. Environmental and Diversity Contracting Disclosures. Supplier must complete and attach the
disclosures required by Exhibit G (i) as of the Effective Date unless Supplier submitted a
disclosure within 12 months prior to the Effective Date and that disclosure remains substantially
accurate; and (ii) promptly following any subsequent disclosure requests.

C-8 

 

F. Statutory Audit Rights for Services.

     1. Access to Books, Documents, and Records. In connection with 42 U.S.C.
§ 1395x(v)(1)(I) (and the implementing regulations set forth at 42 C.F.R. §§ 420.300-.304),
Supplier must, upon five days’ prior written request, grant to the Secretary, the Secretary’s
duly-authorized representative, the Comptroller General of the United States, or the Comptroller
General’s duly-authorized representative, the right to review any and all books, documents, and
records as may be necessary to certify the nature and extent of the costs of the services in excess
of $10,000 per year.

     2. Requirement. If any of the services are performed by way of subcontract with
another organization, then the subcontract must contain and Supplier must enforce a provision to
the same effect as in Section V.F.1 of this Exhibit C.

VI. MISCELLANEOUS

A. Governing Law and Venue. This Agreement must be construed and its performance enforced
under Texas law. The parties agree to be subject to personal jurisdiction in and consent to
service of process in the State of Texas, except where an individual suit may involve Supplier and
a Customer, in which case Supplier consents to the personal jurisdiction and service of process in
the state or commonwealth where the Customer is domiciled.

B. Assignment. Neither party may assign, subcontract, delegate, or otherwise transfer this
Agreement or any of its rights or obligations under this Agreement (other than to a subsidiary or
parent company of a party owning greater than 50% of that party), nor may it contract with third
parties to perform any of its obligations.

C. Binding Effect Upon Successors. This Agreement is binding upon and inures to the benefit
of the parties and their permitted assigns.

D. No Waiver. The waiver of any breach of any term or condition of this Agreement does not
waive any other breach of that term or condition or of any other term or condition, unless agreed
to in a writing signed by both parties.

E. Severability. If any part of this Agreement is for any reason found to be unenforceable,
then the unenforceable provision is reformed to conform to the law, and all other parts of this
Agreement nevertheless remain enforceable.

F. Headings. The descriptive headings of the sections of this Agreement are inserted for
convenience only and do not control or affect the meaning or construction of any section.

G. Notices. Any notice required to be given under this Agreement must be in writing, postage
and delivery charges pre-paid, and may be sent by email, fax, hand delivery, overnight mail
service, first-class mail, or certified mail with return receipt requested, to Broadlane or
Supplier at the addresses and fax numbers set forth below. Any party may change the address to
which notices are to be sent by notice given in accordance with the provisions of this Section
VI.G. Notices under this Agreement are deemed to have been given, and are effective upon,
actual

C-9 

 

receipt by the other party or, if mailed, upon the earlier of the fifth day after mailing or
actual receipt by the other party.

	 	 	 
	If to Broadlane:

	 	Broadlane, Inc.

13727 Noel Road, Suite 1400

Dallas, Texas 75240

notices@broadlane.com

Attn: Equipment Contracting

Fax No.: 972.813.7893
	 
	 	 
	 

	 	Attn: Operations Counsel

Fax No.: 972.813.7939
	 
	 	 
	If to Supplier:

	 	ZONARE Medical Systems, Inc.

1061 Terra Bella Avenue

Mountain View, California 94043

pryland@zonare.com

Attn: PJ Ryland

Fax No.: 650.230.0255

H. Broadlane’s Ethics Policies. Broadlane’s ethics policy is posted on Broadlane’s website
(http://www.broadlane.com/ethics.html). Supplier is encouraged to report violations of the policy
to Broadlane’s hotline (866.45.ethic).

I. Survival. The terms and conditions of this Exhibit C survive the expiration or
other termination of this Agreement, regardless of the cause giving rise to the expiration or
termination.

C-10 

 

EXHIBIT D

STANDARD TERMS AND CONDITIONS – PRODUCTS

I. GENERAL

A. Special Promotional Pricing. If Supplier offers a special promotion, then Supplier must
offer the promotion to all Broadlane Customers and limit the offer to the terms and conditions of
the specific promotion. Supplier must give Broadlane at least 14 days’ prior written notice of
each special promotion and coordinate each special promotion through Broadlane. If Supplier fails
to follow this procedure, then any special promotional pricing more favorable than the prices set
forth on Exhibit A becomes the new net pricing under this Agreement and applies for the
remainder of the Term.

B. Inspection and Acceptance.

     1. Products Not Requiring Installation by Supplier. Regardless of Supplier’s Return
Policy set forth on Exhibit E, for (a) any Equipment that Supplier does not install, a
Customer has 90 days from the date of delivery to inspect and accept or reject the Product, and (b)
any other Product that Supplier does not install, a Customer has 15 days from the date of delivery
to inspect and accept or reject the Product. If the Customer finds the Product is broken or
damaged, then the Customer may reject the Product and return it at Supplier’s expense. This
Section I.B.1 does not limit any Customer’s remedies.

     2. Products Requiring Installation by Supplier. For any Product that Supplier does
install, the Customer acceptance is deemed to occur upon completion of clinical applications
training, as evidenced by the Customer’s signature on the Supplier’s clinical applications training
certificate.

C. Supplier Representatives. At no cost to any Customer, Supplier must provide
Representatives to call upon a Customer on a periodic basis as agreed by Supplier and the Customer.
Supplier’s Representative must respond to a Customer’s demand for a call not more than 24 hours
after the Customer’s demand to Supplier.

D. Product Recalls. Supplier must notify Broadlane and affected Customers of any Product
recalls not more than 24 hours after Supplier first learns of the recall, and Supplier must use its
best efforts to monitor the recall status of all Products, Recall notices must include instructions
and information
regarding the Product recall and appropriate action to be taken by a Customer. Supplier must
pay all costs associated with the correction of the recall and actions taken in response to the
recall.

E. Product Notices. Supplier must send all notices relating to a Product, as well as notices
of any other changes affecting a Product and notices of new Products, to each Customer with a copy
to Broadlane. Supplier must send written notices to Broadlane and each Customer not more than

D-1 

 

24 hours after Supplier learns of any Product notice that may adversely affect the health or well
being of any user of Product. Supplier must notify each Customer of any defects, errors,
non-conformity with the warranties under this Agreement, or other problems with any Product or
services, promptly after the problems first become known to Supplier.

F. HCPCS Codes for Medicare Reporting. Supplier must provide to Customers all HCPCS Codes
recognized by Medicare for all Products and must cross-reference each HCPCS Code by Supplier’s
Name, Supplier’s identification Number, and Supplier’s Product Catalog Number. Upon any Customer’s
request, Supplier must also provide HCPCS Codes for anything Supplier sold to that Customer since
August 1, 2000. Regardless of any commitment obligation a Customer may enter into with Supplier
under this Agreement, the Customer has no duty to purchase a Product for which Supplier does not
comply with this Section I.F. If a Customer has a commitment obligation, then the
obligation is decreased to the extent a Customer does not buy Products for which Supplier does not
comply with this Section I.F. In addition to all other remedies, Broadlane may terminate
this Agreement if Supplier does not comply with this Section I.F.

G. Financial Responsibility. Within 72 hours of any request by Broadlane or any Customer,
Supplier must furnish proof of financial responsibility. If Supplier registered securities with
the SEC, then a Customer may obtain Supplier’s financial statements from Supplier’s periodic
reports that it filed with the SEC and that are available through www.sec.gov.

H. Quality Assurance. Upon any Customer’s request, and at no additional cost, Supplier must
provide (i) access to its facilities (including related travel, room, and board) for one of
Customer’s Representatives, and (ii) Product information sufficient for the Customer to evaluate
Supplier’s manufacturing processes for the purpose of assessing Product quality assurance.

II. EQUIPMENT

A. Price Quotation and Guarantee. Supplier must provide each Customer with a written price
quotation for Equipment. Supplier must provide Broadlane a copy of each quotation exceeding
$50,000. If Supplier quotes a Customer a price for Equipment that is lower than the price set
forth on Exhibit A, then, in addition to the remedies set forth in Section II.B.2
of this Exhibit D, the lower quoted price replaces the
price set forth on Exhibit A. But if Supplier’s Representative quoted the lower price
without Supplier’s authorization or because of a good faith mistake, then no repricing is required
pursuant to this Section II.A.

B. Accuracy of Price Quotes.

     1. Supplier’s Duty. Supplier has a material duty under this Agreement to provide
price quotations that are 100% consistent with the prices, terms, and conditions of this Agreement.

     2. Remedies. If a Supplier’s Representative provides any Broadlane Customer or
Customer with a price quotation in which any price term is inconsistent with the terms and
conditions of this Agreement, then:

D-2 

 

     (a) Supplier must immediately provide the correct price terms to the Broadlane Customer
or Customer;

     (b) If a Customer purchased Products at the incorrect pricing, then Supplier must:

     (i) Immediately refund any excess amount the Customer paid to Supplier (plus
interest at the lower of 1.5% per month or the highest rate allowed by law), and

     (ii) pay the Misquote Liquidated Damages to the Customer;

     (c) Broadlane may, in its sole discretion, terminate this Agreement pursuant to
Section 6.1; and

     (d) The Customer that purchased Products at the incorrect pricing may terminate or
limit its participation under this Agreement.

     3. Misquote Liquidated Damages. Supplier agrees that the actual damages that a
Customer might sustain as a result of Supplier failing to provide the Customer with an accurate
price quotation pursuant to Section II.B.1 of this Exhibit D are uncertain and
would be difficult to ascertain. Supplier further agrees that the Misquote Liquidated Damages are
a reasonable estimate of the damages the Customer would sustain as a result of Supplier’s failure
to provide an accurate price quotation pursuant to Section II.B.1 of this Exhibit
D. Supplier must pay the Misquote Liquidated Damages to the Customer within 30 days after
Supplier’s delivery of a correct price quotation pursuant to Section II.B.2(a) of this
Exhibit D. A Customer’s remedies pursuant to Section II.B.2 of this Exhibit
D (including the Misquote Liquidated Damages) does not limit the Customer’s remedies or
Supplier’s liability for Supplier’s breach of other sections of this Agreement.

C. Trade-in Allowances. Supplier must negotiate trade-in allowances for used equipment in connection with a
Customer’s purchase of new Equipment. Supplier must provide a copy of any quotation involving a
trade-in allowance to Broadlane. Trade-in allowances are set forth on Exhibit A.

D. Order Cancellation. At no cost to the Customer, any Customer may cancel an order for any
Product at any time before Supplier’s shipment of the Product, except for orders of custom-ordered
Equipment (a Customer may not cancel these orders without Supplier’s approval).

E. Equipment Site Preparation. Each Customer, at its expense, must prepare the clinical sites
where each item of Equipment will be installed according to Supplier’s site preparation
recommendations, and Supplier is not responsible for the quality or adequacy of any work not
performed by, or not under the authority of, Supplier.

F. Preparation for Installation of Equipment. At no cost to any Customer, after delivering
any item of Equipment, Supplier must perform all tasks necessary to install the Equipment
(including uncrating, unpacking, field assembly, interconnection, calibration, testing, and

D-3 

 

inspection) to ensure that the Equipment conforms to Equipment specifications and is completely
ready to perform all procedures for which it is designed and marketed by Supplier.

G. Training, Warranty, and After-Warranty Maintenance.

     1. Training. If requested by any Customer, Supplier agrees to provide the Customer
one additional in-service applications training session, at no additional charge, immediately
following the initial day of applications training after the installation of the Equipment.
Additional in-service training requested by the Customer may be billed to the Customer, as a
separate fine item, at the price listed on Exhibit A.

     2. Training Materials. At no cost to any Customer, Supplier must provide a written
training guide or set of training videotapes to each Customer to be used for in-service training by
the Customer’s staff. Each Customer may make copies, for internal purposes only, of any in-service
and clinical training materials.

     3. Electronic Training and Assessment: At no cost to any Customer, for each item of
Equipment purchased by any Customer, Supplier will provide an installation training checklist which
records the level of training provided at each Customer site.

     4. Biomed Orientation. Upon any Customer’s request, and at no additional cost,
Supplier must, upon the Installation of any item of Equipment, provide the Customer with blamed
training on a CD.

     5, Manuals. At no cost to any Customer, Supplier must supply each Customer with the
following items no later than the time of delivery of the Equipment: (a) two copies of operator
manuals covering the applicable Equipment and accessories; and (b) one copy of complete service
manuals detailing the applicable Equipment and accessories (including technical notes, parts lists,
and diagrams). Supplier must provide all updates to manuals and (where applicable) final versions
of manuals for the life of the Equipment. Supplier will provide updates to manuals at no cost to
the Customer for the first three years after delivery of the Equipment to the Customer and for any
subsequent year in which the Equipment is under a service contract with Supplier. Thereafter,
Supplier will charge the Customer for any update in accordance with the price set forth on
Exhibit A. Supplier’s duty to provide updates pursuant to this Section II.G.5
survives the expiration or other termination of this Agreement regardless of the cause giving rise
to the expiration or termination.

     6. Warranty Extension. If any Item of Equipment exceeds generally accepted repair
downtime during the warranty period, then, at no charge to the Customer, Supplier must extend the
warranty coverage on the affected Equipment until the Customer is fully satisfied with the
performance of the Equipment.

     7. Equipment Maintenance. Supplier warrants that it is possible for a Customer to
maintain each item of Equipment during its useful life to manufacturer’s specification without an
after-warranty maintenance contract.

D-4

 

     8. Maintenance Discounts. Supplier must provide discounts for after-warranty
Equipment maintenance, (including repair labor, travel charges, Equipment Software, and Replacement
Parts). These discounts are set forth on Exhibit A.

     9. Copies of Maintenance Contracts. Upon Broadlane’s request, Supplier must provide
Broadlane copies of all after-warranty maintenance contract proposals for any Customer (attention:
Cardiology/Radiology Strategic Sourcing) at the same time Supplier offers the after-warranty
maintenance contracts to the Customer.

     10. Software Upgrades Beyond Warranty or Service Contract Terms. Beyond any Software
or Equipment Warranty contained in Exhibit F, or beyond any service contract term, Customer
may elect to purchase Software Upgrades alone at an annual cost of [*].

H. Miscellaneous.

     1. Accessories. Supplier must offer to each Customer all accessories and components
that may be used with the Equipment (including hardware, firmware, and Software). Supplier’s duty
to offer accessories and components pursuant to this Section II.H.1 survives the expiration
or other termination of this Agreement regardless of the cause giving rise to the expiration or
termination.

     2. Replacement Parts. Supplier must ensure that all Replacement Parts for the
Equipment are available for not less than [*] following the earlier of either (a) the date when
Supplier ceases to sell the Equipment or a reasonable substitute of the Equipment, or (b) the
expiration of the warranty period set forth on Exhibit F, including all applicable warranty
extensions.

     3. Regulatory Modifications to Software and Hardware. At no cost to any Customer,
Supplier must provide all Software and hardware modifications necessary for the Products to meet
any regulatory safety requirements.

D-5

 

EXHIBIT E

SUPPLIER’S RETURN POLICY

A. Reasons for Returns. Any Customer may return a Product to Supplier for 100% credit, at the
Customer’s option, if the Customer determines in good faith that any of the following conditions
are met:

     1. Supplier shipped the Product in error;

     2. The Product is damaged before it is accepted by the Customer;

     3. The Product packaging or crating is damaged before it is accepted by the Customer;

     4. The Product does not materially perform to performance specifications provided by Supplier
or the manufacturer of the Product;

     5. The Product does not meet industry quality standards related to performance specifications
and data submissions required by the FDA or FDA approval of the Product;

     6. The Product is outdated or expired; or

     7. Supplier gives prior written approval, which must not be unreasonably withheld.

B. Manner of Return. Where possible, a Customer must return a Product in its original
packaging or crating.

C. Restocking Fees. [*] restocking fee and [*] must pay all return shipping costs unless the
[*].

E-1

 

EXHIBIT F

SUPPLIER’S PRODUCT WARRANTIES

A. Software.

     1. Software License. Supplier hereby grants to the Customer and, for purposes of
providing services to the Customer, any third-party service provider engaged by the Customer, a
royalty-free, nontransferable and nonexclusive license to use the computer software incorporated
into any Product or any upgrade provided (the “Software”). Such license is limited solely to the
use of the Software in the Product. No other use of the Software may be made without Supplier’s
express written consent. The Customer may copy the Software for back-up or archival purposes or,
in the event of a computer malfunction, for temporary or permanent transfer. Supplier retains
title to the Software.

     2. Software Warranty Period and Limitation. For a period of [*] after initial
installation of the Software (the “Software Warranty Period”), Supplier warrants that the
Software, when used as permitted under this Agreement, will operate as described in the
documentation that explains the different modules acquired by the Customer. Except as provided in
Section III of Exhibit C, Supplier will, as its sole and exclusive obligation and
the Customer’s sole and exclusive remedy for any breach of this warranty, make its best efforts to
remedy any reproducible error in the Software reported to Supplier by the Customer in writing
during the Software Warranty Period. Software Upgrades, when and if available, will be provided at
no-charge. Supplier will provide an additional basic warranty on the scan engine and transducers
to cover technical assistance phone support and Software Upgrades for the second and third year
following the Initial warranty. Supplier’s toll free number for phone support is 1.877.913.9663.

     3. Proprietary Rights. The Customer acknowledges that the Software, its structure,
organization and source code, and the documentation are the property and constitute valuable trade
secrets of Supplier and its suppliers. The Customer agrees not to: (a) decomplie or disassemble
the Software, separate the Software into its component parts, or in any way reverse engineer or
attempt to reconstruct or discover any source code or algorithms of the Software by any means
whatsoever; (b) remove any Product identification, trademark, copyright, confidentiality,
proprietary or other notice contained on or within the Software; (c) modify or create any
derivative works from the Software or any part thereof, except to the extent that the Software
provides for user-modifiable components (to the extent that the Customer’s use of the Software
results in any derivative works, the parties shall jointly own such derivative works); (d) sell,
sublicense, lease, rent, loan, assign, convey or otherwise transfer the Software or any component
thereof or use the Software for service bureau purposes; (e) otherwise copy or use the Software for
any purpose or in any manner not expressly permitted in this Agreement; or (f) permit or encourage
any third party to do any of the foregoing.

F-1

 

B. Equipment.

     1. Warranty. For a period of [*] after initial installation of the Equipment,
Supplier or its authorized dealer will provide on-site labor during regular business hours,
excluding holidays. Supplier will provide Replacement Parts, excluding consumable supplies, and
technical assistance phone support during regular business hours (pacific time) excluding holidays.
Warranty service will be performed without charge from 8:00 am to 5:00 pm, Monday-Friday,
excluding Supplier holidays, and outside those hours at Supplier’s prevailing service rates and
subject to the availability of personnel.

     2. Equipment Refinements. Supplier will provide an additional basic warranty of scan
engine and transducers to cover Replacement Parts, excluding consumable supplies, and technical
assistance phone support for the [*] following the initial warranty. Supplier reserves the right
to modify or change Equipment to include electrical or mechanical refinements it deems appropriate.
In the event Supplier modifies any Equipment, it is agreed that Supplier has no obligation to
modify or change any other Equipment previously delivered or to supply new Equipment without such
modifications, except as otherwise provided in this Agreement. Supplier retains all patent,
copyright and other proprietary and intellectual property rights in the Equipment and all
modifications thereto except as granted herein or by operation of law.

C. Replacement Parts. When the Customer accepts delivery of a Replacement Part, the Customer
accepts the responsibility of returning a comparable item (“Return Part”) to Supplier. The
Return Part to be returned to Supplier in this process must be: (1) of the same type and part
number and for the same Product as the Replacement Part and must be identified for return by the
assigned Supplier RMA number; (2) in a repairable form, with no signs of physical abuse or
mishandling (If an Item is returned in a non-repairable condition as determined by Supplier, the
Customer will be invoiced and responsible for the entire current list price of the Replacement Part
even if such price is higher than the original purchase price paid for the Return Part.); (3)
received by Supplier within 30 days from the date of shipment from Supplier of the Replacement Part
(If the Return Part is not received within such time period, the Customer will be invoiced and
responsible for the entire current list price of the Replacement Part.); and (4) delivered in a
proper and protective shipping container so as to avoid damage to the Return Part during shipment
to Supplier.

D. Purchased Parts. When the Customer accepts delivery of a Purchased Part, or a Spare Part,
the Customer accepts responsibility to pay the purchase price as shown on Supplier’s invoice for
the Purchased Part or Spare Part.

E. Warranty; Limitation of Liability.

     1. Product Warranty. Supplier warrants to the original Customer that Products
(including Purchased Parts) will be free from defects in material and workmanship, under normal use
and service, for [*] from the installation date, or for [*] from date of shipment by Supplier for
Replacement Parts. If during the warranty period, the Customer promptly notifies Supplier of a
warranty claim, Supplier shall, at its discretion, replace or repair the warranted Product or parts
with new or exchange Replacement Parts pursuant to Section C above. EXCEPT AS
OTHERWISE PROVIDED IN SECTION III OF EXHIBIT C, SUPPLIER’S EXCLUSIVE

F-2

 

OBLIGATION
(AND THE CUSTOMER’S ONLY REMEDY) FOR ANY DEFECTS SHALL BE TO REPLACE OR REPAIR, AT SUPPLIER’S
DISCRETION, WARRANTED PRODUCTS OR PARTS THAT ARE RETURNED TO SUPPLIER’S FACTORY OR SERVICE CENTER.
Supplier reserves the right to inspect or repair warranted Products on the Customer’s premises.
Parts shall be returned to Supplier’s factory or service center only with prior written
authorization from Supplier, shipping prepaid by Supplier. Defective parts may be replaced with
either new or factory refurbished or remanufactured parts.

     2. Demonstration Products. The Customer recognizes that demonstration Products are
sold “AS IS” insofar as the appearance of the Products are concerned. However, Supplier provides
the same performance warranty as provided in Section E.1 for new Products.

     3. Exclusions from Warranty Coverage. THE FOLLOWING ARE EXCLUDED FROM WARRANTY
COVERAGE:

     (a) Any Product that has been repaired or altered by other than Supplier-approved
employees or designees, been subjected to misuses, misapplication, improper maintenance,
negligence, accident (including failure of or excessive electric power or failure of
environment-control Equipment) by the Customer, or been used with other than Supplier
approved parts; and

     (b) Any Product that has had its serial number altered, defaced, or removed by the
Customer.

     4. No Extension. No repair or replacement shall extend any of the above warranty
periods.

     5. Manufacturers’ Warranties. Purchased Products identified by the original
manufacturer’s trademark and incorporated without modification as a functional assembly into the
Product are warranted if and to the same extent and subject to the same limitations as each such
manufacturer warrants such Product(s) to Supplier.

     6. Disclaimer. Except as otherwise provided in Section III of Exhibit
C:

     (a) Except for the repair or replacement described in this Section E, Supplier
shall not be liable for damages of any kind arising out of either the use of Products or
their failure to function properly;

     (b) THE PRODUCT WARRANTY SET FORTH IN THIS AGREEMENT IS IN LIEU OF ANY OTHER WARRANTY,
WHETHER EXPRESS, IMPLIED, OR ARISING PURSUANT TO THE UNIFORM COMMERCIAL CODE OR ANY OTHER
LAW NOW OR HEREAFTER IN EFFECT, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, FREEDOM FROM INFRINGEMENT, OR THE LIKE
(OTHER THAN AS EXPRESSLY SPECIFIED IN SECTION F), AND ANY WARRANTY OTHERWISE ARISING
OUT OF ANY PROPOSAL, SPECIFICATION, OR SAMPLE. SUPPLIER
NEITHER ASSUMES NOR AUTHORIZES ANY PERSON TO ASSUME FOR IT ANY OTHER LIABILITY. THE
REMEDIES OF THE CUSTOMER SET FORTH IN

F-3

 

THIS AGREEMENT ARE EXCLUSIVE AND SUPPLIER IS HEREBY
RELEASED FROM ANY LIABILITY IN EXCESS THEREOF.

     7. Limitation of Liability. EXCEPT AS OTHERWISE PROVIDED IN SECTION III OF
EXHIBIT C, (A) IN NO EVENT SHALL SUPPLIER BE LIABLE UNDER THIS WARRANTY FOR ANY LOST
PROFITS OR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, OR SPECIAL DAMAGES, WHETHER IN
CONTRACT OR IN TORT, IN ANY ACTION, IN CONNECTION WITH THIS AGREEMENT OR ANY PRODUCT, OR SERVICES
FURNISHED HEREUNDER: AND (B) SUPPLIER’S MAXIMUM LIABILITY FOR ANY REASON SHALL BE LIMITED TO THE
AGGREGATE AMOUNT PAID BY THE CUSTOMER FOR THE PRODUCT OUT OF WHICH SUCH LIABILITY AROSE.

F. Customer Responsibilities. The Customer shall have complete responsibility for and
operation of Equipment and for obtaining any permits, licenses, and/or certificates which may be
required by any regulatory agency for the installation, use or operation of such Equipment.

F-4

 

EXHIBIT G

ENVIRONMENTAL AND DIVERSITY CONTRACTING DISCLOSURES

A.  Mercury Reduction. Key Broadlane Customers are committed to minimizing the amount of
mercury used in their operation and desire to avoid the acquisition of Products that contain
mercury whenever feasible alternatives exist that do not compromise patient care. Supplier must
provide information in relation to those Products that contain mercury.

	o	 The Products do not contain mercury.

þ The Products that contain mercury are identified in Exhibit A, which specifies the
amount of mercury contained in each Product that contains mercury and indicates if a feasible
mercury-free alternative is available. Supplier must specify the alternative component that is
replacing mercury.

Note from Supplier: The Cold Cathode Fluorescent Lamps (“CCFLs”) contain a small amount of
mercury, but the CCFLs located in the z.one Scan Engine are hermetically sealed and do not contact
patients in daily normal use.

B.  Latex Reduction. Key Broadlane Customers are committed to protecting patients and health
care workers against exposure to latex and its allergenic properties. Supplier must provide
information in relation to those Products that contain latex either in the Products or their
packaging.

	þ	 The Products or their packaging offered in this Agreement do not contain latex.

o The Products or their packaging that contain latex are identified in Exhibit A, which
specifies the location of latex contained in each Product or its packaging. Supplier must specify
the alternative component that is replacing latex.

C.  Polyvinyl Chloride Plastic Reduction. Key Broadlane Customers are committed to minimizing
the amount of PVC used in their operation and desire to avoid the acquisition of Products that
contain PVC whenever feasible alternatives exist that do not compromise patient care. Supplier
must provide information in relation to those Products that contain PVC.

	o	 The Products do not contain PVC.

	þ 	The Products that contain PVC are identified in Exhibit A, which specifies the
amount of PVC contained in each Product that contains PVC and indicates if a feasible
PVC-free
alternative is available. Supplier must specify the alternative component that is replacing
PVC.

Note from Supplier: The EMI shields have PVC as a base material, but they are coated with
metal and have no direct human contact during Product use. There are PVC-insulated wires that are
used

G-1

 

in the electronics-PCB system, but they are sealed by the plastic housing of the scanner.
This applies to the z.one Scan Engine only.

D. Di-ethylhexyl Phthalate Reduction. Key Broadlane Customers are committed to minimizing the
amount of DEHP used in their operation and desire to avoid the acquisition of Products that contain
DEHP whenever feasible alternatives exist that do not compromise patient care. Supplier must
provide information in relation to those Products that contain DEHP.

	þ	 	The Products do not contain DEHP.
	 
	o	 	The Products that contain DEHP are identified in Exhibit A, which specifies the
amount of DEHP contained in each Product that contains DEHP and indicates if a feasible
DEHP-free alternative is available. Supplier must specify the alternative component that is
replacing DEHP.

E. Persistent, Accumulative and Toxic Compounds Reduction. Key Broadlane Customers are
committed to minimizing the amount of PBTs used in their operation and desire to avoid the
acquisition of Products that contain PBTs whenever feasible alternatives exist that do not
compromise patient care. Supplier must provide information in relation to those Products that
contain PBTs.

	þ	 	The Products do not contain PBTs.
	 
	o	 	The Products that contain PBTs are identified in Exhibit A, which specifies the
amount of the PBTs contained in each Product that contains PBTs and indicates if a feasible
PBT-free alternative is available. Supplier must specify the alternative component that is
replacing the PBTs.

F. Carcinogens and Reproductive Toxins Reduction: Key Broadlane Customers are committed to
minimizing the amount of carcinogens and reproductive toxins (as delineated on the California
Proposition 65 list and set forth at http://www.oehha.ca.gov/prop65_list/Newlist.html #get)
used in their operation and desire to avoid the acquisition of Products that contain carcinogens
and reproductive toxins whenever feasible alternatives exist that do not compromise patient care.
Supplier must provide information in relation to those Products that contain carcinogens or
reproductive toxins.

	þ	 	The Products do not contain carcinogens or reproductive toxins.
	 
	o	 	The Products that contain carcinogens or reproductive toxins are identified in Exhibit
A, which specifies the amount of carcinogen or reproductive toxin contained in each
Product that contains a carcinogen or reproductive toxin and indicates if a feasible
carcinogen-free or reproductive toxin-free alternative is available. Supplier must specify
the alternative component that is replacing the carcinogen or reproductive toxin.

G. Hazardous Substances or Processes. If applicable, Supplier will deliver to Broadlane and
each Customer an MSDS for each hazardous substance or mixture (as defined in any local, state, or
federal statute, law, or code) ordered under this Agreement. Each MSDS must contain all required

G-2

 

information concerning the hazardous substance or mixture, in a format agreed upon by Broadlane or
the Customer.

H. Environmental Conditions. Supplier will notify Broadlane and each Customer of any
environmental conditions (such as storage temperature), limitations, or requirements for use and
storage of the Products.

	 	 	 	 	 
	Type	 	Parameter	 	Value
	Electrical

	 	Power requirements (120 V system)
	 	100-120V AC, 50-60 hs, 6 A max
	 

	 	Power requirements (220 V system)
	 	200-240V AC, 50-60 hs, 8 A max
	 

	 	Power consumption (no peripherals (max.)
	 	180W — (625 BTU/Hr)
	 

	 	Power consumption (with peripherals
(max.)
	 	720W — (2450 BTU/Hr)
	 
	 	 	 	 
	Environmental (operating)

	 	Cooling requirements
	 	See power consumption above.
	 

	 	Ambient air temperature
	 	0-35 C (32-95 F)
	 

	 	Ambient humidity
	 	15-80% non-condensing
	 

	 	Ambient pressure
	 	700-1060 hPa
	 
	 	 	 	 
	Environmental (storage)

	 	Storage air temperature
	 	-20-60 C (-4-140 F)
	 

	 	Storage humidity
	 	15-90% non-condensing
	 

	 	Ambient humidity
	 	15-80% non-condensing

I. Diversity Contracting Disclosures: Attached as Attachment 1

G-3

 

EXHIBIT
G — ATTACHMENT 1

G-4

 

G-5

 

    AMENDMENT
    TO AGREEMENT for PORTABLE ULTRASOUND EQUIPMENT

 

    Contract No. EZ-104

 

    between

 

    BROADLANE, INC.

 

    and

 

    ZONARE MEDICAL SYSTEMS, INC.

 

    This Amendment (this “Amendment”) to the
    Agreement for Portable Ultrasound Equipment effective as of
    May 1, 2006, as amended, if amended (the
    “Agreement”), is effective as of August 1,
    2007, and is between Broadlane, Inc.
    (“Broadlane”) and Zonare Medical Systems, Inc.
    (“Supplier”).

 

    1.  Products and Pricing.  The
    Agreement is amended by deleting the Products and pricing set
    forth on Exhibit A of the Agreement in its entirety, and
    replacing it with the Products and pricing set forth on
    Exhibit A, attached to this Amendment and
    incorporated by reference. Supplier must not increase these
    prices during the Term.

 

    2.  Replacing a Section.  The
    Agreement is amended by deleting Section 2.4 of the
    Agreement in its entirety, and replacing it with the following:

 

    “2.4  Freedom to
    Purchase.  Regardless of anything in this
    Agreement to the contrary, any Broadlane Customer may elect to
    purchase a Competing Product without penalty.”

 

    3.  Replacing a Section.  The
    Agreement is amended by deleting Section 4.1.1 of
    the Agreement in its entirety, and replacing it with the
    following:

 

    “4.1.1 Firm
    Pricing.  Exhibit A sets forth the
    prices for each Product. Supplier must not increase these prices
    during the Term. Supplier may decrease the prices set forth on
    Exhibit A upon prior written notice to Broadlane,
    and this notice must include a proposed amended
    Exhibit A in electronic format. In addition to these
    prices, Supplier may offer bulk purchase options to the
    Customers that offer additional discounts based on a
    Customer’s commitment in connection with
    Broadlane-sponsored “group buys” or other savings
    opportunities; but all other terms and conditions of this
    Agreement apply to those bulk purchase options as if the prices
    were listed on Exhibit A.”

 

    4.  Replacing a Section.  The
    Agreement is amended by deleting Section 4.1.6 of
    the Agreement in its entirety, and replacing it with the
    following:

 

    “4.1.6 Market Price.  If Broadlane,
    in its reasonable judgment, determines that (a) there
    occurred a material change in the market

 

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

    

    1

 

    effecting a Product, and (b) that market change resulted in
    a market price for that Product that is lower than the price set
    forth on Exhibit A; then, upon notice from
    Broadlane, Supplier must offer new pricing for that Product that
    is no greater than the new market price within 30 days
    after receiving Broadlane’s notice.”

 

    5. Deleting a Section.  The Agreement is
    amended by deleting Section 4.5.3 (Replacement
    Products) of the Agreement in its entirety, and the renumbering
    of [*] as Section 4.5.3.

 

    6. Replacing a Section.  The Agreement is
    amended by deleting Section 4.5.4 of the Agreement in its
    entirety, and replacing it with the following:

 

    “4.5.3 [*].  If [*], including Supplier, then
    Broadlane [*] so the Broadlane Customers and the Customers [*]
[*]. Regardless of whether [*] this Agreement,
    Supplier and Broadlane will negotiate in good faith to [*] under
    this Agreement affected by [*].”

 

    7. Delete Definitions.  The Agreement is
    amended by deleting the following definitions from
    Exhibit B:

 

    “Access Tier”

    “Committed Level”

    “Committed Tier”

 

    8. Principles of Construction.   Whenever
    the terms and conditions of the Agreement and this Amendment
    conflict, the terms and conditions of this Amendment control.
    Except as specifically modified by the terms and conditions of
    this Amendment, all of the Agreement remains in full force and
    effect. This Amendment may be executed in any number of
    counterparts, each of which is deemed an original but all of
    which constitute the same instrument.

 

    [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

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

 

    

    2

 

    Duly authorized representatives of the parties executed this
    Amendment as written below.

 

 

	 	 	 
	
    Broadlane, Inc.

    

By:   /s/[*]    

Name:   [*]

    Title:   [*]

    Date:   7/26/07

    

	
 
	
    Zonare Medical Systems, Inc.

    

By:   
/s/  Kenneth
    E. Ludlum

Name:   Kenneth
    E. Ludlum

    
Title:   Senior
    Vice President

    
Date:   7/18/7

    

 

    Broadlane Preparer:

 

/s/[*]

 

    Printed Name: [*]

     Date: July 17, 2007

 

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

 

    EXHIBIT
    A

    

 

    PRODUCTS
    AND PRICING

 

	 	 	 	 	 	 	 	 	 	 	 
	
    Mfg Cat #
	
 
	
    Description
	
 
	
    Qty
	
 
	
    UOM
	
 
	
    Price

	 

	

    Z002

	
 
	
    Additional z.one SuperCart
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z003

	
 
	
    z.one Convertible Ultrasound System without Advanced Hardware
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z009-00

	
 
	
    z.one miniCart Ultrasound system with Advanced Hardware
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z011-00

	
 
	
    miniCart
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z015-00

	
 
	
    z.one Convertible Ultrasound System with Adv Hardware &
    Super Cart
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z016-00

	
 
	
    Scan Engine with Advanced Hardware
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z022

	
 
	
    SmartCart
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z023

	
 
	
    z.one ultra Convertible Ultrasound System
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z101

	
 
	
    C5-2 Curved Array Transducer
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z102

	
 
	
    L10-5 Linear Transducer
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z103

	
 
	
    E9-4 Endovaginal Transducer
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z104

	
 
	
    P4-1 Deep Abdominal Phased Array Transducer
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z105

	
 
	
    P10-4 Neonatal/Pediatric Phased Array Transducer
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z106

	
 
	
    L8-3 Linear Array Transducer
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z107

	
 
	
    L14-5sp (Special Procedure) Linear Array Transducer
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z108

	
 
	
    P4-1c Phased Array Transducer
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z150

	
 
	
    C5-2 Biopsy Starter Kit
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z151

	
 
	
    L10-5 Biopsy Starter Kit
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z152

	
 
	
    E9-4 Biopsy Guide Kit — Disposable
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z153

	
 
	
    16 Gauge Biopsy Replacement Kit
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z154

	
 
	
    18 Gauge Biopsy Replacement Kit
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z155

	
 
	
    22 Gauge Biopsy Replacement Kit
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z156

	
 
	
    P4-1 Biopsy Starter Kit
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z157

	
 
	
    E9-4 Biopsy Guide Kit — Reusable
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z200

	
 
	
    DICOM Networking
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z201

	
 
	
    Auto Opt with ZST Option (Factory installed)
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z202

	
 
	
    Auto Opt with ZST Option (Field Upgrade)
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z203

	
 
	
    DICOM Networking for miniCart (includes USB to Ethernet
    Adapter)
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z301

	
 
	
    Battery
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z303

	
 
	
    256 MB CompactFlash
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z304

	
 
	
    2 GB CompactFlash
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z305

	
 
	
    Scan Engine Carrying Bag
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z306

	
 
	
    Touch Screen Stylus
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z307

	
 
	
    z.one Ultrasound system — Hardcopy Users Manual
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z308

	
 
	
    z.one Ultrasound system — Hardcopy Service Manual
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z309

	
 
	
    Scan Engine Upgrade to Advanced Hardware
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z310

	
 
	
    Dual Battery Charger
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z313

	
 
	
    AC Power Adapter
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z315

	
 
	
    Four Wheel Swivel for SuperCart
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z316

	
 
	
    AC Power Adapter — Scan Engine with Advanced Hardware
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z320

	
 
	
    z.one Ultrasound system Quick Start Guide
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z321-00

	
 
	
    z.one Ultrasound system with Advanced Hardware and z.one
    miniCart

    Ultrasound system with Advanced Hardware — Hardcopy
    Users Manual
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z322-00

	
 
	
    z.one Ultrasound system with Advanced Hardware and z.one
    miniCart

    Ultrasound system with Advanced Hardware — Hardcopy
    Service Manual
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z323-00

	
 
	
    z.one Ultrasound system with Advanced Hardware Quick Start Guide
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z324

	
 
	
    z.one miniCart Ultrasound system with Advanced Hardware
    Quick Start Guide
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z325

	
 
	
    USB to Ethernet Adapter for Scan Engine with Advanced Hardware
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z326

	
 
	
    2 GB USB Memory Stick for Scan Engine with Advanced Hardware
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z327

	
 
	
    2 GB Memory Internal Drive Option Factory
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

	

    Z328

	
 
	
    2 GB Memory Internal Drive Option Field
	
 
	
    1
	
 
	
    EA
	
 
	 
	
    [*]
	 

 

 

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

    

    4

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    Mfg Cat #
	
 
	
 
	
    Description
	
 
	
    Qty
	
 
	
 
	
    UOM
	
 
	
 
	
    Price
	
 

	
 
	
    Z338
	
 
	
 
	
    z.one ultra Battery Pack
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z339
	
 
	
 
	
    z.one ultra Ultrasound system — Hardcopy Users
    Manuals
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z340
	
 
	
 
	
    z.one ultra Ultrasound system Quick Start Guide
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z401
	
 
	
 
	
    Sony B&W Video Printer including Mounting Kit for
    SuperCart (Bracket and Cabling)
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z402
	
 
	
 
	
    Sony B&W Video Printer Mounting Kit only for
    SuperCart (Bracket and Cabling)
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z403
	
 
	
 
	
    Sony UP-21MD Color Thermal Video Printer for SuperCart. Does not
    include Mounting Kit
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z404
	
 
	
 
	
    Panasonic LQ-MD800 DVD Video Recorder for SuperCart. Does not
    including Mounting Kit
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z405
	
 
	
 
	
    Panasonic LQ-MD800 DVD Video Recorder Mounting Kit only
    (Bracket and Cabling) for SuperCart
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z406
	
 
	
 
	
    Sony UP-21MD Color Thermal Printer for SuperCart. Includes
    Mounting Kit
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z409
	
 
	
 
	
    Sony B&W Video Printer with USB interface for z.one
    miniCart, including Mounting Kit (Bracket)
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z410
	
 
	
 
	
    Sony B&W Video Printer with USB interface Mounting Kit
    only (Bracket) for miniCart
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z411-00
	
 
	
 
	
    Sony UP-21MD Color Thermal Video Printer Mounting Kit
    only (Bracket and Cabling) for SuperCart
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z412
	
 
	
 
	
    Olympus P11 Color Printer for z.one ultra
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z413
	
 
	
 
	
    Sony B&W Video Printer with USB Interface Mounting Kit only
    (Bracket) for z.one ultra
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z414
	
 
	
 
	
    Sony B&W Video Printer with USB interface for z.one
    ultra, including Mounting Kit (Bracket)
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z501
	
 
	
 
	
    Platinum PLUS Service Coverage: z.one Ultrasound System
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z502
	
 
	
 
	
    Platinum PLUS Service Coverage: Scan Engine Only
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z503
	
 
	
 
	
    Platinum PLUS Service Coverage: Transducer
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z504
	
 
	
 
	
    Platinum Service Coverage: z.one Ultrasound System
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z505
	
 
	
 
	
    Platinum Service Coverage: SuperCart Only
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z506
	
 
	
 
	
    Platinum Service Coverage: Scan Engine Only
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z507
	
 
	
 
	
    Platinum Service Coverage: Transducer to include accidental
    damage
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z508
	
 
	
 
	
    Scan Engine Damage & Theft Coverage (during Warranty)
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z509
	
 
	
 
	
    Transducer Damage & Theft Coverage (during Warranty)
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z510
	
 
	
 
	
    Labor & Travel Hourly Bill Service — Hourly
    billing rate for onsite repair, travel, or technical telephone
    support
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
    Z511
	
 
	
 
	
    Technical Training Course

    One copy of the Technical Training Course and Service Manual on
    CD.

    Technical updates and access to the Technical Training Course on
    the hosted web site for 1 year.
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z512
	
 
	
 
	
    Technical Training Course — Renewal

    - Annual renewal of the Service Manual and Technical
    Training material.

    - Access to technical training course web site for 1 year.
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z513
	
 
	
 
	
    Service Support Agreement Basic: Scan Engine Only
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z514
	
 
	
 
	
    Service Support Agreement Basic: SuperCart
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z515
	
 
	
 
	
    Service Support Agreement Basic: Transducer to include
    accidental damage
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z516
	
 
	
 
	
    Platinum PLUS Service Coverage: z.one Ultrasound System
    (miniCart)
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z517
	
 
	
 
	
    Platinum Service Coverage: z.one Ultrasound System
    (miniCart)
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z518
	
 
	
 
	
    Basic Service Agreement: Software Upgrade
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z519
	
 
	
 
	
    Service Support Agreement Basic: miniCart
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	

	
    [*]
	
 

	
 
	
    Z520
	
 
	
 
	
    Service Support Agreement Basic: B/W Printer
	
 
	
 
	
    1
	
 
	
 
	
 
	
    EA
	
 
	
 
	
     
	
    [*]
	
 

 

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

    

    5

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    Mfg Cat
    #
	
 
	
 
	
 
	
    Description
	
 
	
 
	
    Qty
	
 
	
 
	
    UOM
	
 
	
 
	
    Price

	 
	

    Z521

	 
	
 
	
 
	
    Service Support Agreement Basic: Color Printer
	
 
	
 
	
    1
	
 
	
 
	
    EA
	
 
	
 
	 
	
    [*]
	 

	 
	

    Z522

	 
	
 
	
 
	
    Service Support Agreement Basic: DVD Recorder
	
 
	
 
	
    1
	
 
	
 
	
    EA
	
 
	
 
	 
	
    [*]
	 

	 
	

    Z523

	 
	
 
	
 
	
    Platinum Service Coverage: miniCart Only
	
 
	
 
	
    1
	
 
	
 
	
    EA
	
 
	
 
	 
	
    [*]
	 

	 
	

    Z529

	 
	
 
	
 
	
    Platinum PLUS Service Coverage: z.one ultra Ultrasound
    System
	
 
	
 
	
    1
	
 
	
 
	
    EA
	
 
	
 
	 
	
    [*]
	 

	 
	

    Z530

	 
	
 
	
 
	
    Platinum Service Coverage: z.one ultra Ultrasound System
	
 
	
 
	
    1
	
 
	
 
	
    EA
	
 
	
 
	 
	
    [*]
	 

	 
	

    Z531

	 
	
 
	
 
	
    Platinum Service Coverage: SmartCart Only
	
 
	
 
	
    1
	
 
	
 
	
    EA
	
 
	
 
	 
	
    [*]
	 

	 
	

    Z532

	 
	
 
	
 
	
    Service Support Agreement Basic: SmartCart
	
 
	
 
	
    1
	
 
	
 
	
    EA
	
 
	
 
	 
	
    [*]
	 

	 
	

    Z550

	 
	
 
	
 
	
    1Day Applications Training
	
 
	
 
	
    1
	
 
	
 
	
    EA
	
 
	
 
	 
	
    [*]
	 

	 
	
 
	 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	 
	
 
	 

 

    [*] Certain information in this document has been omitted
    and filed separately with the Securities and Exchange
    Commission. Confidential treatment has been requested with
    respect to the omitted portions.exv10w16

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

EXHIBIT 10.16

Novasonics and Supertex Inc.

Development Agreement

Pulser Chip

	1.	 	Summary of Description of Services:

To develop a High Voltage Integrated Circuit using Supertex’s HVCMOS technology designed to meet
Novasonics’s requirements. The product is to be developed and manufactured in high volume
production.

	2.	 	Scope of Work:

To develop I.C.’s suitable for high volume production.

Activities to include:

1) Design, layout, digitization, fabrication and debugging of a High Voltage IC Circuit (as
defined below), followed by product characterization and reliability qualification to qualify
the circuits for high volume production.

2) Develop testing hardware and software necessary to:

a) Characterize and qualify the product and

b) Production test in high volume.

	3.	 	Product Description and Requirement:

The custom IC is a [*] channel integrated high voltage pluser with [*]. Each channel is
individually controlled via [*]. The time width of the[*], which is to be [*], is set by [*].
Product to be supplied as cut wafers on adhesive tape.

	4.	 	Spec:

Attached (HV731 Specification)

	5.	 	Design Phase Milestones and Schedule

(*Dates are subject to change)

	 	 	 	 	 	 	 	 	 
	   Milestone	 	*Projected Date	 
	a. Contract Signed
	 	 	3/14/01	 	 	 	 	 
	b. Sign off Proposed Spec (= time 0 of schedule)
	 	 	3/23/01	 	 	 	 	 
	c. Circuit Design Complete
	 	 	6/01/01	 	 	 	 	 
	d. Layout Complete
	 	 	7/13/01	 	 	 	 	 
	e. Mask Tooling Complete
	 	 	7/27/01	}	 	 	10w	 
	f. Engineering Fabrication Runs
	 	 	10/5/01	}	 	 	10w	 
	g. First pass Functional Prototypes 10 unit
	 	 	11/15/01	 	 	best effort
	h. 100 Full Specification Parts
	 	 	01/07/02	 	 	 	 	 
	i. Product Characterization
	 	 	02/21/02	 	 	 	 	 
	j. Reliability Qualification
	 	 	03/08/02	 	 	 	 	 

	 	 	 	 	 
	6.

	 	Nonrecurring Engineering Charge [*]:
	 	[*]
	a.

	 	 Total Material Costs
	 	[*]
	b.

	 	 Total Labor (@$16K/Man Month)
	 	[*]

			
	  

Confidential 
	 	10/2/2001

Page
1

 

	7.	 	Payment Schedule: Payment will be made upon successful completion of the below milestones:

	 	 	 	 	 	 	 
	 

	 	a.
	 	Sign off on Contract
	 	[*]
	 

	 	b.
	 	Layout Complete
	 	[*]
	 

	 	c.
	 	Start Silicon
	 	[*]
	 

	 	d.
	 	Start of testing first silicon
	 	[*]
	 

	 	e.
	 	Receipt of 10 1st Pass Silicon
	 	[*]
	 

	 	f.
	 	Novasonics Engineering Sign off
of Fully Functional Chips
	 	[*]
	 

	 	g.
	 	Product Characterization Complete
	 	[*]
	 

	 	h.
	 	Reliability Qualification Complete
	 	[*]
	 	 
	 

	 	Total
	 	 	 	[*]

	8.	 	Budgetary Printing:

[*] (die on

adhesive tape)

			
	 	 	 
	[*]
	 	[*]
	 	 	 
	 	 	 
	 	 	 

[*] ([*] die in one

  uBGA package)

			
	 	 	 
	[*]

[*] 
	 	[*]

[*]

*Additional NRE for the

for [*] package [*]

	9.	 	Pricing Review

Supertex to review the budgetary pricing as we go to initial silicon and again after completion
of three separate production lots.

	10. 	Marketing Rights

Supertex retains the marketing rights of this Pulser Chip, if Novasonics fails to achieve the
run rate of [*] or [*] per year by 2004.

	11. 	Proprietary Rights

Novasonics will have exclusive rights to all of the Intellectual Property developed by
Novasonics. Supertex will have exclusive rights to all of the Intellectual Property developed
by Supertex Inc. during the performance of services for the company. Such “Intellectual
Property” includes, but is not limited to any copyrightable material, drawings, schematics,
diagrams, designs, inventions, developments, discoveries and trade secrets.

	12. 	Liability

Upon completion of the services rendered by Supertex Inc., Novasonics has the right and duty to
inspect the quality of the services rendered, including drawings, schematics and

			
	 	 	 
	Confidential
	 	10/2/2001

Page 2

 

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

 

simulations
results and inform immediately Supertex Inc. of discrepancies or inconsistencies. If such
discrepancies or inconsistencies persist, Novasonics has the right to refuse payments for the
services rendered if the discrepancies or inconsistencies have not been addressed by Supertex
within 90 days of notification to Supertex by Novasonics of such discrepancies or
inconsistencies.

	13.	 	Termination

Either party may terminate this Agreement in whole or part at its convenience upon Thirty days
written notice to the other party. Such termination shall be effective Thirty days from the
date of the Postmark of said notice and shall be without prejudice to any claims which one party
may have against the other. In the event of such termination the Company shall be obligated to
reimburse Supertex Inc. for services actually performed by Supertex Inc. up to the effective
date of termination, including the Milestone in process.

Agreed:

	 	 	 	 	 
	Novasonics, Inc.:

	 	Supertex Incorporated:	 	 
	 
	 	 	 	 
	/s/ S. Zafar Hamadi
 

Signature

	 	/s/ [*]
 

Signature
	 	 
	 
	 	 	 	 
	 
 

Name

	 	/s/ [*]
 

Name
	 	 
	 
	 	 	 	 
	CEO
 

	 	[*]
 

	 	 
	Title

	 	Title	 	 
	 
	 	 	 	 
	10/03/01
 

Date

	 	10/5/01
 

Date
	 	 

			
	 	 	 
	Confidential
	 	10/2/2001

Page 3

 

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

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