Document:

Exhibit 10.50

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

Distribution
and Remarketing Agreement

Between

Siemens
Medical Solutions,

Oncology
Care Systems Group

And

Accuray
Incorporated

Effective
Date: April 3, 2007

 

	
  DISTRIBUTION AND REMARKETING
  AGREEMENT

  (SIEMENS REVISED 4-03-07)

  	
   

  	
  SIEMENS/ACCURAY
  CONFIDENTIAL

  

 

 1
 

This Distribution and Remarketing Agreement
(hereafter, the “Agreement”) is effective as of April 3, 2007 (“Effective Date”)
by and between Siemens Medical Solutions Inc
USA, a Delaware corporation acting through its Oncology Care Systems
Group, which maintains a place of business at 4040 Nelson Drive, Concord,
California, 94520 (hereafter, “OCS”), and Accuray
Incorporated, a Delaware corporation with a business address at 1310
Chesapeake Terrace, Sunnyvale, CA 94089 (hereafter, “Accuray”).

WHEREAS, Accuray is interested in a business solution
utilizing a  CT-on-rails in
combination with its CyberKnife® System; and

WHEREAS, OCS has developed and is marketing a sliding
gantry (CT-on-rails);

NOW THEREFORE, the parties agree as follows:

1.             SCOPE.
This Agreement governs OCS’s authorization to Accuray to
purchase, license, sell, and sublicense certain OCS Products directly from OCS,
including shipment from OCS directly to Accuray’s end customer, and to resell
and sublicense those OCS Products in the Territory under the terms and
conditions set forth in this Agreement. “OCS Products” are set out in Exhibit A
and “Territory” is set out in Exhibit A-1.

2.             APPOINTMENT.
OCS grants Accuray the right to purchase and license Products from OCS, and
to promote, market, lease, resell and sublicense (collectively referred to from
time to time as “sell”) the “OCS Products” (“Equipment” and “Software”, if any,
listed on Exhibit A) to end users, either directly or through its channels of
distribution, in the Territory, and to market the OCS Products in conjunction
with its CyberKnife® and/or RoboCouchTM products (“Accuray Products”). Accuray
is not authorized to sell OCS Products other than as set forth below.

All sales or lease opportunities outside the
Territory, either directly or through an integrator or contractor, will be
handled on a case-by-case basis.

3.             ACCURAY’S
OBLIGATIONS.

a.        Promotion of OCS Products. Accuray
agrees to use reasonable commercial efforts to promote and sell the OCS
Products, including (i) actively and diligently canvassing and soliciting
business in the Territory; (ii) employing salesmen who are familiar with the
OCS Products; (iii) providing adequate sales and technical training in
accordance with OCS’s recommendations; (iv) doing such advertising as is
reasonably appropriate and necessary; (v) displaying, demonstrating and
representing the OCS Products fairly and (vi) not making any representations
concerning OCS or the OCS Products which are false, misleading, or inconsistent
with those representations set forth in the promotional materials, literature
and manuals published and supplied by OCS, and (vii) conditioning the sale and
sublicense of OCS Products to end users on

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acceptance of those terms and conditions as are set
forth in Exhibit B, OCS Sales Terms and Conditions, except that Siemens Medical
Sales organizations of each foreign country may have its own unique set of
terms and conditions, which will apply to Sales in those countries. These terms
and conditions shall be reprinted on Accuray’s standard contract forms, and
signed by all end users purchasing OCS Products from Accuray hereunder.
Notwithstanding these obligations, Accuray may provide terms and conditions
(Accuray Terms and Conditions) that supplement those provided in the OCS Sales
Terms and Conditions, with Accuray to bear all additional expenses and
liability associated with the Accuray Terms and Conditions, including
indemnifying OCS for and against any additional liability arising out of such
additional terms and conditions. All such promotion and sales activity by
Accuray will be the responsibility of Accuray, without any expense to OCS. OCS
agrees that Accuray shall also have the right to continue, at its own expense,
promotion and advertising activities to end users in order to encourage sales
of the OCS Products.

b.        License
of Internal Code and Software. The purchase of each Product includes
a non-exclusive, worldwide, paid up license to sublicense to customers, in
object code only, the operating software incorporated within or otherwise
supplied with or in connection with the specific Product purchased (“Software”),
solely for use as part of the Product combined with CyberKnife or RoboCouch.
Such software shall be sublicensed by Accuray only to customers who have duly
executed Accuray’s standard end-user license agreement, provided that such
end-user license agreement contains terms no less protective of OCS than the
software license attached hereto as Exhibit B. OCS shall retain ownership of
any title to all such software and to the trade secrets embodied therein,

c.        Records, Forecasts and Audit Rights. Accuray
agrees, upon written request, to report monthly in writing to OCS regarding the
OCS Products that Accuray has sold, the names of all end users and locations of
OCS Products sold by Accuray, as well as the model and serial numbers of such
OCS Products. Accuray agrees that on the Effective Date, it will provide OCS
with a non-binding estimate of the amount of OCS Products to be ordered during
the following six-month period. Such estimates shall be furnished to OCS
monthly thereafter and shall set forth projections for the following six (6)
month period.

d.        Subcontract of Service Obligations. If
a service contract is sold to an end user, then Accuray shall ensure that such
service contract also permits service to be performed by OCS or its delegate,
as a subcontractor. Such service contract shall contain the terms and
provisions contained in the OCS standard service contract, attached hereto as
part of Exhibit B, except that the Siemens service organization of each foreign
country has its own unique service terms and conditions, which will apply to
service performed in that country. OCS, or its delegate, herein commits to
provide Accuray and its end users with the opportunity to purchase ongoing
service and support for the OCS Products for a period of up to five (5) years
from the installation date of the OCS Products. Notwithstanding the supplemental
warranty that Accuray may provide for the OCS Products under Section 6(i), the
service terms and conditions of Exhibit B may be modified, upon written
agreement of the parties, for service in the U.S and

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foreign countries.

e.        Service and Complaint Handling. Accuray
will initially receive all customer service related calls. Accuray may then
contact OCS as necessary, depending on the nature of the service required for
additional support. For complaints relating to the OCS Products. Accuray will
perform an analysis and forward the complaints to OCS. To be clear, OCS will be
responsible for all medical device reporting (MDR)  and recalls related to OCS Products.

f.         Responsibility for Maintaining Solution
Compatibility. Accuray agrees that it is responsible for
developing and maintaining the integration and compatibility of the OCS
Products in accordance with all applicable laws and regulations.

g.        Regulatory Clearance. Accuray
agrees that it is responsible for obtaining, maintaining, and owning any approvals,
permits, and licenses required under any applicable law in order to sell,
market, and distribute the OCS Products as integrated with the CyberKnife
System in the Territory. Accuray will fully cooperate with OCS and will bear
all expenses and manage all paperwork in connection with obtaining such
approvals, permits and licenses. Upon written request by Accuray, OCS will
provide data to support submissions relating to such approvals, permits, and
licenses in a timely manner. To be clear, OCS shall be responsible for
obtaining the regulatory clearance for OCS Products sold without Accuray
Products in the Territory.

h.        Audit Rights. OCS has
the right to have an independent certified public accountant or attorney, who
executes an appropriate confidentiality agreement, conduct an audit and inspect
the books and records of Accuray that involve the sale, license or service of
the OCS Products (“Audit Rights”). Such audit shall be conducted at mutually
agreeable times so as to not interfere with the ordinary conduct of Accuray’s
business. Such Audit Rights shall be for the limited purpose of verifying the
obligations of Accuray to OCS hereunder and also to ensure protection of OCS’s
proprietary rights. The expenses payable to the auditors shall be the
responsibility of OCS, provided however that if any substantive errors are
identified as a result of such audit. Accuray shall reimburse such expenses.

4.             OCS’S
OBLIGATIONS.

a.        Supply of OCS Products. Subject
to reasonable notification regarding delivery issues, OCS agrees to sell OCS
Products to Accuray pursuant to the terms set forth in this Agreement. OCS
shall have the right to discontinue the sale of any model or type of OCS
Products, if, in OCS’s sole discretion and business judgment the production,
manufacture or then-current distribution method of such Product becomes
economically or otherwise unfeasible. However, in the case of any such
discontinuance, OCS agrees to provide Accuray with the earlier of (i) written
notice when a decision is made by OCS to discontinue the OCS Products or (ii)
at least ninety (90) days’ written notice of such intention to discontinue. If
an order has been accepted prior to such notice of discontinuance, OCS shall
fill such order subject to limited rescheduling and

 4
 

cancellation rights if the OCS Products for any such
order have been allocated for OCS and no other division or group of Siemens
Medical Solutions that may also distribute the OCS Products.

b.        Installation of Equipment. OCS
or its delegate agrees to work with Accuray to install all OCS Products sold by
Accuray to the end users in the Territory. Installation charges are included in
the cost of the Product.

c.        Training.
OCS agrees to provide Accuray with mutually agreed upon Product
training from time to time at the convenience of both parties, at no charge to
Accuray, except that Accuray agrees to pay reasonable transportation and living
expenses of OCS personnel in accordance with OCS’s policies regarding such
expenses, which are set forth in Exhibit C, Siemens Medical Solutions Inc. USA
Corporate Travel & Entertainment Policy.

Such training is intended to train Accuray’s sales,
training and technical support employees, who will in turn train Accuray’s
other employees as needed. Accuray agrees not to use or disclose, either
directly or indirectly through any affiliate, the technical training and
support provided by OCS and to ensure that each of its employees are bound by
such obligation by signing or have signed a non-disclosure agreement.

OCS also agrees to provide Accuray’s end-users with
initial applications training on the OCS Products according to standard OCS
policy.

d.        Documentation. Site Documentation. OCS shall provide,
at no charge, one (1) set of Site Documentation for each Product purchased for
each end user installation, provided that the End User is identified in the
purchase order with respect to said Equipment. “Site Documentation” as used
herein means such information as is commonly available and supplied by OCS at
that time. OCS reserves the unilateral right to change the content of the Site
Documentation at any time with notice as required under Section 5(e)
(Engineering Changes).

Additional Documentation. OCS
agrees to provide reasonable quantities of sales materials prepared in English,
such as brochures, press releases and fact sheets to Accuray without charge
therefor.

e.        Site Survey and Planning. OCS
agrees that the technical support personnel at each of its regional or country
offices will be available to assist Accuray’s local representatives in site
survey and planning with respect to end users who are interested in purchasing
or leasing Equipment from Accuray; provided, however, that the primary
responsibility to completing such survey and planning is Accuray’s.

f.         Regulatory Clearance. OCS
agrees that it is responsible for maintaining any approvals, permits, and
licenses required under any applicable law in order to sell, market, and
distribute the OCS Products (without Accuray Products) in the Territory. OCS
represents and warrants that as of the Effective Date of this Agreement, it has

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obtained all the necessary regulatory clearances for
the countries listed in Exhibit A-1 in order for Accuray to sell, market, and
distribute the Products in the Territory.

g.                      MDR and
Recalls. OCS agrees that it is responsible for all MDRs and recalls for the
OCS Products.

5.                         MUTUAL OBLIGATIONS.

a.                         Confidentiality.
Neither OCS nor Accuray shall publicize the terms and conditions of this
Agreement except as required by law or as may be necessary in order to assert
its rights hereunder in connection with the resolution of a dispute of this
Agreement. Each party agrees to obtain the other party’s written approval prior
to issuing any press releases or other publicity relating to this Agreement,
including the existence thereof. Any obligation of confidentiality of the
parties hereunder with respect to the Confidential Information, exchanged under
and in accordance with this Agreement, shall expire five (5) years after the
date of the disclosure of such Confidential Information.

In addition, OCS and
Accuray agree that they will keep confidential and not disclose or use in any
manner whatsoever, except as authorized herein, any nonpublic information given
by one party to the other, including without limitation, information about OCS
Products, pricing, technical materials and all trade secrets and other
proprietary information furnished to them by the other party which is
identified as “top security”, “restricted”, “secret”, “confidential”, “proprietary”
or “trade secret” either verbally or in writing (all such items are
collectively referred to as “Proprietary Information”).

Both parties agree to
cause each of their employees, agents, contractors or consultants, whom such
party knows or should know has access to any such Proprietary Information, to
execute or have executed such agreements as are necessary to assure that such
individuals maintain the confidentiality of the Proprietary Information and not
to use the Proprietary Information except in accordance with this Agreement.
The obligations set forth herein shall not apply to any Proprietary Information
which (i) was publicly available at the date of receipt; (ii) was in the
receiving party’s possession without obligation of confidentiality before the
date of receipt from the disclosing party; (iii) has become publicly available
after the date of receipt from the disclosing party, without disclosure through
any means by the receiving party; or (iv) has become legally available to the
receiving party from any third party without an obligation of confidentiality
or other similar restriction on disclosure or use.

b.                         Compliance
With Laws. OCS and Accuray each agree to comply with all applicable laws,
as such laws may be modified from time to time, and each understand and agree
that the continuing rights and obligations of the parties hereunder are
specifically conditioned upon compliance with all such laws. These laws
specifically include, without limitation, the following material laws

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affecting the distribution of OCS Products hereunder
and the grant to Accuray of marketing and other rights: (i) the U.S.
anti-boycott regulations, (ii) the U.S. Foreign Corrupt Practices Act (“FCPA”),
(iii) the export control laws of the United States of America, (iv) the
prevailing regulations which may be issued from time to time by the U.S.
Department of Commerce and the Office of Munitions Control and the U.S.
Department of State, and (v) Food and Drug Administration, and any export or
import laws of the agencies of the Territory or of any countries into or
through which the OCS Products purchased under this Agreement may be
transported. Each party agrees to indemnify the other for any violation by the
breaching party of the obligations set forth herein. Each party specifically
provides the representations and warranties regarding the FCPA and export
control laws.

c.                         Authority of Parties. Each party acknowledges and agrees that
neither it nor its employees or representatives are under any circumstances to
be considered to be employees, agents or other representatives of the other
party and have no authority or power to bind the other party or contract in the
other party’s name or on the other party’s behalf. Each party agrees that it
will not make any representation to any third party to the contrary.

d.                         Indemnity.
Each party agrees to indemnify and hold the other party harmless from and
against all claims from third parties arising out of any wrongful or negligent
acts and/or omissions of its employees or representatives.

e.                         Engineering Changes. OCS agrees to give Accuray one hundred
twenty (120) days’ advance written notice of any proposed engineering change
(including code changes) that affects the form, fit or function or safety of
the OCS Products (each, a “Modification”).

f.                           Integration/Modification.

a.                         Accuray
may make modifications to the OCS Products, as necessary for integration with
Accuray Products, with prior written approval from OCS. Such approval of
requested modifications will be given within 30 days, or if approval of the
requested modifications is not possible, a written statement of the reason or
reasons will be delivered to Accuray within that timeframe. If a requested
modification is not possible, OCS will work in good faith with Accuray to
complete an approved version of the changes.

6.                                                           TERMS OF PRODUCT SALES.

a.                         Prices. For
sales within the Territory, the prices and volume discounts are listed in
Exhibit A. All Equipment shall be sold and shipped FOB OCS’s shipping point.

These prices are exclusive of any taxes, duties or governmentally
imposed levies or other fees imposed or levied by any jurisdictional authority
based upon or measured by charges set forth in this Agreement, including sales
or license of

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OCS Products, their use or services provided in
connection therewith (other than taxes assessed on the income of OCS). Accuray
agrees that it is responsible for and will promptly pay any such taxes, duties
or levies (or reimburse OCS therefor upon presentation of documentation showing
payment by OCS)

The prices listed in Exhibit A are for the
configurations and models of OCS Products as specified therein. Accuray agrees
that no Product may be altered in any way to modify the performance
characteristics without the prior written permission of OCS.

Prices are subject to change on sixty (60) days’ prior
written notice and will be deemed effective upon the expiration of the 60 day
notice period. Notwithstanding the immediately preceding sentence, orders for
OCS Products will be filled at the price in effect at the time of acceptance of
such orders.

b.                         Payment Terms. All payments for OCS Products shall be in U.S.
dollars. Invoices will be prepared upon shipment. Accuray agrees to pay all
invoices within thirty (30) days of the date of such invoice.

OCS reserves the right to impose interest charges for
delinquent payment of any amounts due and owing (except invoices disputed in
good faith). Interest will be charged at the rate of one and one-half percent
(1.5%) per month (or the maximum permissible legal rate, if lower) on the unpaid
and overdue balance and will be added to future statements. OCS may elect to
withhold future shipments, regardless of acceptance of orders therefor and
without liability therefor, for failure to make prompt payment of invoices,
except for disputed invoices.

c.                         Title and
Risk of Loss. Title to OCS Products (except software) as well as the risk
of loss, damage or destruction for all OCS Products shall pass to Accuray upon
shipment FOB OCS’s or its delegate’s shipping point.

d.                         Purchase
Orders. Purchase orders issued by Accuray for the purchase of OCS Products
(including software) must allow ninety (90) days for OCS’s production schedule.
All purchase orders shall include the following information:

1)                         Model and
description of OCS Products;

2)                         Quantity
to be purchased;

3)                         Unit
price and total order price;

4)                         Requested
shipment date(s);

5)                         Delivery
instructions, including SHIP TO address;

6)                         Reference
to this Agreement;

7)                         Any other
special information required by this Agreement or the circumstances of the
order;

8)                         Payment
information; and

9)                         Any other
information reasonably requested in advance by OCS.

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All orders placed under this Agreement shall be sent
to the Siemens Medical local office in the country where the order is placed,
or if specifically directed by OCS, to:

Siemens Medical Solutions USA, Inc.

Oncology Care Systems Group

Attn: Manager of Order Administration

4040 Nelson Avenue

Concord, CA 94520

Facsimile: (925) 246-8460

e.                         Acceptance
of Orders. Orders shall not be considered accepted until the “order acknowledgement”,
which may be in the form of a facsimile, has been transmitted from OCS or its
delegate to Accuray.

The order acknowledgement will state the scheduled
shipment date as well as the estimated on-site delivery date. It is agreed that
all such orders shall be governed by the provisions of this Agreement and that
none of the provisions of Accuray’s purchase orders or OCS’s acknowledgment
thereof, whether printed, stamped, typed or written, shall be applicable to the
purchase.

f.                           Cancellation/Rescheduling/OCS
Delay.

1)                        Cancellation.
Except as specified below, Accuray may, by written notice, cancel all or any
units of Equipment on order upon payment of the following cancellation charges
for the units canceled:

Number of days prior to the originally scheduled
delivery Cancellation Charges date (or, rescheduled date if as a Percent of
Unit due to OCS delay) Purchase Price that notice of cancellation is received
by OCS

	
  30-over

  	
   

  	
  0%

  
	
  10-29

  	
   

  	
  5%

  
	
  0-9

  	
   

  	
  No cancellation.

  

 

Notwithstanding the table of cancellation charges
above, no cancellation will be permitted for any Product which has been shipped
in advance of the originally scheduled delivery date.

Any cancellation charges due OCS in accordance with
the above cancellation schedule will be separately invoiced.

2)                        Rescheduling

Delays. Upon written notice to OCS,
Accuray may request OCS to defer delivery of the Equipment for a maximum of
sixty (60) days, the delivery

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date then being so
extended. If notice of an extension of a delivery date is received by OCS less
than three (3) weeks before the originally scheduled date of delivery, Accuray
shall pay the costs of insurance and storage to OCS. In the event of a notice
from Accuray to delay a delivery of Equipment and then a subsequent cancellation
thereof, any cancellation charges due shall be based upon the original delivery
date and the date of the request for the first delay.

Moving Forward.
(i) Upon Accuray’s written request, OCS agrees to use its reasonable efforts to
allow accelerating any scheduled delivery of Equipment as may be reasonably
necessary to meet the needs of any end user, without being liable for any
increased costs associated therewith. In the event that Accuray requests
abnormally short lead time changes which would result in premium expediting
charges such as air freight or overtime, Accuray shall be responsible for those
charges; and

(ii) upon OCS’s request,
and with written authorization from Accuray, OCS may accelerate any scheduled
delivery of Equipment as may be reasonably necessary, without Accuray being
liable for any increased costs associated therewith.

OCS Delay.
If OCS is unable to meet its agreed delivery schedules for any Equipment,
Accuray shall have the option of either (i) rescheduling deliveries; or (ii)
requiring OCS to ship the Equipment by air freight and having OCS pay the
differential between the normal mode of transportation and air freight.

g.                        Packaging. OCS shall pack Equipment for shipping in conformity
with its own then-current standards and any applicable laws or regulations.

h.                        Shipping Costs. All costs of or related to shipping and
transportation shall be the responsibility of and shall be borne by Accuray,
which shall pay all shipping costs, transportation costs and similar charges
directly to the carrier and all others connected with shipping and handling.

i.                           Warranty. Warranties applicable to OCS Products supplied under
this Agreement are set forth in Exhibit B. Notwithstanding the obligations of
this section, Accuray may provide a supplemental warranty for the OCS Products
(Accuray Warranty) to its end customer. Accuray will bear all additional
expenses and liability associated with the Accuray Warranty, including
indemnifying OCS against any damages arising out of Accuray’s breach of such supplemental warranty. In
addition to the provisions of Exhibit B, OCS and Accuray agree to work together
in good faith to ensure a process is established in each territory to address
product performance issues in a timely manner.

7.                                                           Trademarks
and Private Labeling. OCS herein licenses to Accuray OCS’s

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Symbols
(hereinafter defined) for use only during the term of this Agreement and only
in the Territory and only for the purpose of implementing the provisions of
this Agreement. The OCS Products must always be sold or licensed within the
Territory under trademarks owned by OCS unless stated otherwise in writing by
OCS. Accuray agrees not to use OCS’s name or any abbreviation thereof, its
acronym, logotype or other trademarks or trade name (collectively referred to
as “OCS’s Symbols”) without OCS’s prior written approval, nor will Accuray use
or be authorized to use OCS’s Symbols, except in connection with and directly
in furtherance of marketing and servicing the OCS Products.

All rights, title and interest in and to said
trademarks and trade names shall remain the property of OCS. By using OCS’s
Symbols, Accuray does not acquire any proprietary right to such Symbols. OCS
agrees that after three years, and if sufficient sales activity warrants, it
will grant to Accuray the right to sell OCS Products within the Territory under
a private label, and not under any OCS name, logotype, or other trademarks or
trade name.

OCS further agrees that, without altering any Siemens
markings or labeling, Accuray may place its logo on the CT Gantry cover, with
the location and size to be mutually agreed between OCS and Accuray. Accuray
may, at its own expense, paint the OCS Products for a consistent look and feel
with Accuray Products. The painting of OCS Products under this section will not
void any warranty provided by OCS for the OCS Products.

8.             INTELLECTUAL
PROPERTY INDEMNITY. OCS agrees to defend any legal
proceeding brought against Accuray in the Territory to the extent that it is
based on a claim that the use of any OCS Products sold or licensed hereunder
infringes a copyright or a patent issued in the Territory or misappropriates
any trade secret and will pay all damages and costs awarded by a court of final
appeal attributable to such claim, or incurred in the settlement thereof;
provided that OCS is promptly informed and furnished a copy of each written
communication, notice or other action relating to the alleged infringement and
is given all control, authority, information and assistance (at OCS’s expense)
necessary to defend or settle such legal proceeding. Accuray will not be bound
by any settlement or compromise that OCS enters into without Accuray’s express
prior written consent. However, if Accuray declines to be bound by any such
settlement or compromise, this indemnity is rescinded, and Accuray must defend
itself at its own cost.

OCS will not be obligated to defend or be liable for
any costs and damages to the extent any such infringement arises (i) out of
compliance with Accuray’s specifications or designs, or those of an end user or
other purchasers or licensees of Accuray (ii) from a combination with or in
addition to devices not supplied by OCS to the extent that the infringement
arises solely as a result of such combination or addition; (iii) from a modification
of the OCS Products by any person other than OCS; or (iv) from the use of an
allegedly infringing version of any OCS Products, if such alleged infringement
could be avoided by the use of a different version having similar functionality
and made available by OCS.

 11
 

If any claim which OCS is obligated to defend
hereunder has occurred, or in OCS’s opinion is likely to occur, OCS shall
provide written notice to Accuray of such claim. Furthermore, Accuray agrees to
permit OCS, at OCS’s sole option and expense, either to procure for Accuray the
right to continue using the OCS Products or to modify the OCS Products so that
it becomes non-infringing, or to replace the OCS Products with a product of
substantially equivalent functionality (including assisting Accuray in
migrating its data to the replacement product at no charge). If none of the
foregoing alternatives is reasonably available, then Accuray agrees to return
the OCS Products, on written request by OCS, and OCS agrees to refund the
purchase price for any such OCS Products, less a deduction for depreciation
equal to .0167 of the purchase price for each month or part of a month since
the date of purchase (based upon a 5-year depreciable product life).

In addition, to the extent that the infringing OCS
Products render unusable any other OCS Products that are dependent upon the
infringing OCS Product for operation, then OCS shall also, upon Accuray’s
written request, refund the purchase price for such unusable OCS Products, less
a deduction for depreciation equal to .0167 of the purchase price for each
month or part of a month since the date of purchase (based upon a 5-year
depreciable product life).

THE FOREGOING STATES THE SOLE AND
EXCLUSIVE REMEDY OF ACCURAY AND THE TOTAL LIABILITY AND RESPONSIBILITY OF OCS
WITH RESPECT TO INFRINGEMENT OF ANY THIRD PARTY INTELLECTUAL PROPERTY RIGHTS BY
OCS PRODUCTS.

8.

a.                 PRODUCTS LIABILITY. OCS
will defend or settle, indemnify and hold Accuray harmless from any liability,
damages, and expenses for any action brought against Accuray to the extent that
it is based upon a third-party claim that the OCS Products, as provided by OCS
to Accuray under this Agreement is unsafe when used according to OCS’s written
product specifications for its intended use, and will pay any costs and damages
made in settlement or awarded against Accuray in final judgment resulting from
any such claim, provided that Accuray: (i) gives OCS prompt notice of any such
claim; (ii) gives OCS sole control of the defense and any related settlement of
any such claim; and (iii) gives OCS, at OCS’s expense, all reasonable
information, assistance and authority in connection with the foregoing.

Accuray will not be bound by any settlement or
compromise that OCS enters into without Accuray’s express prior written consent.
However, if Accuray declines to be bound by any such settlement or compromise,
this indemnity is rescinded, and Accuray must defend itself at its own cost.

9.                                    TERM
AND TERMINATION.

a.               Term. The term of this Agreement
begins on the Effective Date and expires three (3) years from the Effective
date, unless the Agreement has otherwise

 12
 

expired, or been canceled or terminated.

b.                         Termination.
This Agreement will immediately terminate upon expiration of the term without
notice. In addition, this Agreement may be terminated at any time by either
upon ninety (90) days’ prior written notice.

c.                         Effect of
Termination. Each party must still fulfill any obligations, including but
not limited to pending purchase orders, accrued on or before the effective date
of such termination.

10.                 LIMITATION OF LIABILITY AND
DISCLAIMER OF WARRANTY. Neither party’s liability in any
given instance from any cause whatsoever, and regardless of the form of action,
whether in contract, warranty, tort (including negligence) or any other theory
of liability, will exceed:

a.                         for any breaches related to
OCS Products, the greater of (i) fifty percent (50%) of the previous year’s
revenue to OCS earned in respect of the purchase and/or license by Accuray of
the OCS Products under this Agreement (or, after termination of the Agreement,
fifty percent (50%) of the last full calendar year’s revenue prior to such
termination related to such OCS Products); or (ii) the purchase price for the
specific OCS Products that are the subject matter of or is directly related to
the cause of action; and

b.                         for
other breaches hereunder, a maximum of fifty percent (50%) of the previous year’s
revenue to OCS earned in respect of the purchase and/or license by Accuray of
the OCS Products under this Agreement (or, after termination of the Agreement,
fifty percent (50%) of the last full calendar year’s revenue prior to such
termination related to such breaches)

The foregoing limitations will not apply to claims for
either personal injury or damage to tangible property. In the case of
intellectual property indemnification, OCS’s liability shall be limited to the
exclusive remedies provided in Article 8 (Intellectual Property Indemnity).

IN NO EVENT WILL EITHER PARTY BE
LIABLE FOR ANY INDIRECT, PUNITIVE, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES
(INCLUDING LOST PROFITS, TERMINATION INDEMNITIES, ADVERTISING OR PROMOTIONAL
COSTS, TERMINATION OF EMPLOYEES, SALARIES OF EMPLOYEES OR SEVERANCE PAYMENTS,
CREATION OF CUSTOMER BASE, OR FUTURE EXPECTATIONS, LOST DATA, OR OTHER ECONOMIC
ADVANTAGE), HOWSOEVER ARISING AND REGARDLESS OF THE FORM OF ACTION, WHETHER IN
CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE) OR ANY OTHER THEORY OF
LIABILITY, EVEN IF SUCH PARTY HAS BEEN PREVIOUSLY ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.

EXCEPT AS SPECIFIED IN THIS
AGREEMENT, ALL EXPRESS OR IMPLIED

 13
 

REPRESENTATIONS AND WARRANTIES,
INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE OR NONINFRINGEMENT, ARE HEREBY DISCLAIMED AND EXCLUDED.

11.                                                    GENERAL
PROVISIONS.

a.                         This Agreement is the sole and
complete statement of the rights and obligations of the parties as to the sale
and purchase of the OCS Products and supersedes all previous understandings,
negotiations, proposals, conversations, writings, and Agreements with respect
to any such sale and purchase.

b.                         Except as otherwise permitted
herein, this Agreement may not be altered, amended or modified except in
writing and signed by duly authorized representatives of OCS and Accuray. For
Accuray, a duly authorized representative must be any of the following: CEO,
CFO, COO, or General Counsel.

c.                         This Agreement is governed by
and construed in accordance with the laws of the State of California.

d.                         In the event any provisions of
this Agreement are declared unenforceable by a duly authorized court or
arbitrator having jurisdiction, then this Agreement, with respect to the
remaining enforceable provisions, shall continue in full force and effect
provided that this Agreement continues to preserve and express the general intent
of the parties.

e.                         Neither party will be liable
for delays in manufacturing, shipping or delivery, or failure to manufacture,
ship or deliver OCS Products, or to otherwise perform any obligation under this
Agreement due to any cause beyond their reasonable control including, but not
limited to, acts of God, acts of civil or military authority, labor disputes,
fire, riots, civil commotions, sabotage, war, embargo, blockage, floods,
epidemics, power shortages, or when due to governmental restrictions, provided
the party gives prompt written notice and makes all reasonable efforts to
perform. In no event, however, will this provision affect any Accuray
obligation to make payments due to OCS at the time of any such delay for OCS
Products received, including without limitation payments for continuing
periodic charges.

f.                           Except as specified
otherwise, notices and other communications made or required under this
Agreement by a party to this Agreement must be given in writing by mail,
postage prepaid, first class certified mail, return receipt requested, and
shall be deemed to have been given five (5) days after deposit with the US
Postal Service, and addressed to the parties at their respective addresses as
set forth below:

 14
 

Siemens:

Attention: VP Finance and Administration

4040 Nelson Avenue

Concord, CA 94520

with cc to: VP Business Administration

Accuray Incorporated:

Attention: Chief Operating
Officer

1310 Chesapeake Terrace

Sunnyvale, CA 94089

with cc to: General Counsel

g.                        Either party may assign this
Agreement with the written consent of the other party, which consent shall not
be unreasonably withheld.

h.                        A waiver by either party of its
rights under this Agreement with respect to a breach of the other party’s
obligations hereunder will not be construed to be a continuing waiver or as a
waiver with respect to other breaches of the same or of other provisions of
this Agreement.

i.                           Progressive Dispute
Negotiation Process. This Section will govern any dispute between the parties
arising from or related to the subject matter of this Agreement that is not
resolved by agreement between the respective personnel of the parties
responsible for day-to-day administration and performance of this Agreement.

1)                         Prior
to the filing of any suit with respect to such a dispute (other than a suit
seeking injunctive relief with respect to Intellectual Property Rights) the
party believing itself aggrieved (the “Invoking Party”) will call for
progressive management involvement in the dispute negotiation by written notice
to the other party. Such a written notice will be without prejudice to the
Invoking Party’s right to any other remedy permitted by this Agreement.

2)                         The
parties will use their best efforts to arrange personal meetings or telephone
conferences as needed, at mutually convenient times and places, between
negotiators for the parties at the following successive management levels, each
of which will have a period of allotted time as specified below in which to
attempt to resolve the dispute.

	
  Level

  	
   

  	
  Accuray

  	
   

  	
  Level OCS

  	
   

  	
  Allotted Time

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1st

  	
   

  	
  Product Mgr

  	
   

  	
  Product Mgr.

  	
   

  	
  10 Bus. Days

  
	
  2nd

  	
   

  	
  Division VP

  	
   

  	
  Business Dir.

  	
   

  	
  10 Bus. Days

  
	
  3rd

  	
   

  	
  Corporate Off.

  	
   

  	
  Division VP.

  	
   

  	
  30 Cal. Days

  

 

 15
 

The allotted time for the first level negotiator will
begin on the effective date of the Invoking Party’s notice. If a resolution is
not achieved by negotiators at any given management level at the end of their
allotted time, then the allotted time for the negotiations at the next
management level, if any, will begin immediately. If resolution is not achieved
by negotiators at the final management level within the allotted time then the
parties agree within twenty (20) days to select a form of alternative dispute
resolution “ADR” (either informal, non-binding arbitration, private judging,
mini trial, summary jury trial, moderated settlement conference, mediation or
some other format), and negotiate an ADR Agreement for an ADR process. The ADR
Agreement shall at least include provisions governing the ADR procedure, rules,
discovery, timing and cost allocations. In no event will such ADR process
result in the imposition of any element of punitive damages to either party in
the event of any award.

If the ADR Agreement is not agreed to by the parties
within the time as set forth above, then either party may bring suit to resolve
the dispute in any court of competent jurisdiction.

3)                         Injunctive
Relief. Notwithstanding the above provisions relating to arbitration, the
parties agree that in respect of a violation of any provision of this
Agreement, including without limitation violation of any proprietary of
Confidential Information, for which an award of damages is an inadequate remedy
to protect the injured party, the injured party is entitled to seek injunctive
relief, including a preliminary injunction, in a court of competent
jurisdiction, in addition to any other relief available to it under the
arbitration procedures specified above in this Section

[Signature
Page Follows]

Remainder
of page Intentionally left blank.

 16
 

IN WITNESS WHEREOF,
the parties have executed this Agreement by their duly authorized
representatives, effective as of the Effective Date.

	
  ACCURAY INCORPORATED

  
	
   

  
	
  By

  	
   

  	
  /s/ Chris A.
  Raanes

  	
   

  
	
  Name:

  	
   

  	
  Chris A. Raanes

  	
   

  
	
  Title:

  	
   

  	
  SVP, Chief
  Operating Officer

  	
   

  
	
  Date:

  	
   

  	
  4/3/7

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
   

  	
  /s/ Darren J.
  Milliken

  	
   

  
	
  Name:

  	
   

  	
  Darren J.
  Milliken

  	
   

  
	
  Title:

  	
   

  	
  General Counsel

  	
   

  
	
  Date:

  	
   

  	
  4-3-2007

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIEMENS
  MEDICAL SOLUTIONS USA, INC.

  
	
   

  
	
  By

  	
   

  	
  /s/ Holger
  Schmidt

  	
   

  
	
  Title:

  	
   

  	
  PRESIDENT MED
  OCS

  	
   

  
	
  Date:

  	
   

  	
  03 APRIL 2007

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
   /s/ Terrence E. Moore

  	
   

  
	
  Title:

  	
   VICE PRESIDENT BUSINESS DEVELOPMENT

  	
   

  
	
  Date:

  	
     April 3, 2007

  	
   

  
											

 

 17
 

Exhibit
A

Distribution and remarketing Agreement

Products and Pricing

	
   

  	
   

  	
  Emotion 6

  	
   

  	
  S Open

  	
   

  	
  S Open (Z-sharp)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USLP

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LEVEL A
  (Qty *** Units)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Accuray Price

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Net Discount

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LEVEL B
  (Qty *** Units)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Accuray Price

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Net Discount

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LEVEL C
  (Qty *** Units)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Accuray Price

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Net Discount

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

Notes:

Annual Fiscal year October 1st - Sept 30th Volume
based on Sales in any FY Volume discount Reconcialliation at end of fiscal
period.

Level B to be implemented on a transactional basis.
Over/Under achievement to be paid at end of fiscal period by either party.

Volume quantities based on Orders and condition that
shipment happens max 6 months after closing period.

Special Program Through
9/30/07:

Level C Discount will apply to all units ordered and installed prior to
9/30/07, providing at *** units are ordered and installed during that period.

Special Engineering Package Price:*

Qty
(1) Sensation Open (Z-Sharp) - Full functionality

Qty (2) Sensation Open (Shells)

Limited
Functionality             Total
Price = *** Including

Installation
and Full Warranty

   * A
separate Quotation with complete specifications will be submitted to Accuray

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

 18

Distribution and remarketing Agreement

Products and Pricing

[Attachment Follows]

Remainder of page
intentionally left blank.

 19

	
  Accuray (Service Value-added Reseller)

  	
   

  	
  Customer

  List Price

  	
   

  	
  Customer

  Realized

  Price

  	
   

  	
  Accuray

  Price

  	
   

  
	
  Emotion 6

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
  25,000 Scan Sec Tube
  Coverage

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
  Extended PCP (1 4 Hr.
  Block)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sensation 40

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
  100,000 Scan Sec Tube
  Coverage

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
  Extended PCP (1 4 Hr.
  Block)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Options

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chiller (24 x 7)
  coverage

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  syngo Multimodality
  WorkSpace

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  
	
  Power Supply

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  

 

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

 20

Exhibit A-1

Distribution and remarketing Agreement

Territory:

Stage I:

***

***

***

***

***

***

Stage II: (Implementation date to be mutually agreed)

***

***

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

 21
 

Exhibit B-1

Distribution and remarketing Agreement

OCS Contract Terms and Conditions for End Users

[Attachment Follows]

Remainder of page
intentionally left blank.

 22

	
  

  	
   

  	
   

  	
   

  	
  Quote

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Siemens
  Medical Solutions USA, Inc.

  	
   

  	
  Siemens Medical Solutions

  	
   

  	
  Siemens
  Medical Solutions

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  51 Valley Stream
  Parkway, Malvern PA 19355

  	
   

  	
  Health Services Corporation

  	
   

  	
  Ultrasound
  Division

  

 

Terms and Conditions of Sale

1.        GENERAL

1.1 Contract Terms. These
terms and conditions constitute an integral part of any contract between the
Seller identified on the first page hereof to sell products (“Products”) and
Purchaser and shall govern the sale of the Products. Seller shall not be bound
by, and specifically objects to, any term, condition or other provisions which
are different from or in addition to the provisions of this Agreement (whether
or not it would materially alter this Agreement) which is proffered by Purchaser
in any purchase order, receipt, acceptance, confirmation, correspondence or
otherwise, unless Seller specifically agrees to any such provision in a writing
signed by Seller. Products may contain used, reworked or refurbished parts and
components that comply with performance and reliability specifications.
Purchaser acknowledges that this is a commercial and not a consumer
transaction.

1.2 Acceptance. An
order shall be binding on Seller only after a credit approval and an order
confirmation have been issued by Seller. Acceptance is expressly made
conditional on Purchaser’s acceptance of these terms and conditions. Purchaser
shall be deemed to have assented to, and waived any objection to, this
Agreement upon the earliest to occur of any of the following: Purchaser’s
completion or execution of this Agreement; Purchaser’s acceptance of all or any
part of the Products subject to this Agreement; Purchaser’s issuance of a
purchase order for any Products identified on Seller’s quotation or proposal;
or delivery of the Products to the common carrier for shipment pursuant hereto.

1.3 Third Party Products. If
this Agreement includes the sale of third party products not manufactured by
Seller, then Purchaser agrees and acknowledges that (a) Purchaser has made the
selection of these products on its own, (b) the products are being acquired by
Seller solely at the request of and for the benefit of Purchaser, in order to
eliminate the need for Purchaser to issue a separate purchase order to the
manufacturer of the products, (c) no representation, warranty or guarantee has
been made by Seller with respect to the products, (d) the obligation of
Purchaser to pay Seller for the products is absolute and unconditional, (f)
Purchaser will assert no claim whatsoever against the Seller with respect to
the products, and will look solely to the manufacturer regarding any such
claims, and (g) Purchaser will indemnify and hold Seller harmless from and
against any and all claims, regardless of the form of action, related to,
resulting from or caused by the products or any work or service provided by the
manufacturer of the products or any other party.

2.        PRICES

2.1 Quotations. Unless
otherwise agreed to in writing or set forth in the quotation, all prices quoted
by Seller are based on U.S. dollars, and include standard and customary
packaging. F.O.B. terms are set forth in Section 6.2 hereof. Domestic prices
apply only to purchasers located in, and who will use the Products in, the U.S.
International prices apply to all purchasers located outside of, or who will
use or ship or facilitate shipment of the Products outside of, the U.S. Unless
otherwise stated, the quotation shall only be valid for forty-five (45) days
from the date of the quotation.

2.2 Delay in Acceptance of Delivery.
Should the agreed delivery date be postponed by Purchaser, Seller shall have
the right to deliver to storage at Purchaser’s risk and expense, and payments
due upon delivery shall become due when Seller is ready to deliver.

2.3
Escalation. Unless otherwise agreed to in writing,
except as to goods to be delivered within six (6) months of Seller’s acceptance
of Purchaser’s order, Seller reserves the right to increase its prices to those
in effect at the time of shipment.

3.        TAXES

3.1 Any sales, use
or manufacturer’s tax which may be imposed upon the sale or use of Products, or
any property tax levied after readiness to ship, or any excise tax, license or
similar fee required under this transaction, shall be in addition to the quoted
prices and shall be paid by Purchaser.

4.        TERMS OF PAYMENT; DEFAULT

4.1 Due Date. Unless
otherwise set forth in the quotation, Seller’s payment terms are as follows: an
initial deposit of 10% of the purchase price for each Product is due upon
submission of the purchase order, an additional 80% of the purchase price is
due upon delivery of each Product, and the final 10% of the purchase price is
due upon completion of installation. Unless otherwise agreed, all payments
other than the initial deposit are due net thirty (30) days from the date of
invoice. All amounts payable pursuant to this Agreement are denominated in
United States dollars, and Purchaser shall pay all such amount in lawful money
of the United States. Partial shipments shall be billed as made, and payments
for such shipments will be made in accordance with the foregoing payment terms.

4.2 Late Payment. A
service charge of 11⁄2% per month, not to exceed the maximum rate allowed by law,
shall be made on any portion of Purchaser’s outstanding balance which is not
paid within thirty (30) days after invoice date, which charge shall be
determined and compounded on a daily basis from the due date until the date
paid. Payment of such service charge shall not excuse or cure Purchaser’s
breach or default for late payment. In addition, in the event that Purchaser
fails to make any payment to Seller within this thirty (30) day period,
including but not limited to any payment under any service contract, promissory
note or other agreement with Seller, then Seller shall have no obligation to
continue performance under any agreement with Purchaser.

4.3
Payment of Lesser Amount. If Purchaser pays, or
Seller otherwise receives, a lesser amount than the full amount provided for
under this Agreement, such payment or receipt shall not constitute or be construed
other than as on account of the earliest amount due Seller. Seller may accept
any check or payment in any amount without prejudice to Seller’s right to
recover the balance of the amount due to or pursue any other right or remedy.
No endorsement or statement on any check or payment or in any letter
accompanying a check or payment or elsewhere shall constitute or be construed
as an accord or satisfaction.

4.4 Where Payment Upon Installation
or Completion. Should any special terms of payment provide for
either full or partial payment upon installation or completion of installation
or thereafter, and the installation or completion is delayed for any reason for
which Seller is not responsible, the Products shall be deemed installed upon
delivery and, if no other terms were agreed upon in writing signed by the
parties, the balance of payments shall be due no later than thirty (30) days
from delivery regardless of the actual installation date.

4.5 Default. Each
of the following shall constitute an event of default under this Agreement: (i)
a failure by Purchaser to make any payment due Seller within ten (10) days of
receipt of notice of non-payment from Seller; (ii) a failure by Purchaser to
perform any other obligation under this Agreement within thirty (30) days of
receipt of notice from Seller; (iii) a default by Purchaser or any affiliate of
Purchaser under any other obligation to or agreement with Seller, Siemens
Financial Services, Inc. or Siemens Medical Solutions Health Services
Corporation, or any assignee of the foregoing (including, but not limited to, a
promissory note, lease, rental agreement, license agreement or purchase
contract); or (iv) the commencement of any insolvency, bankruptcy or similar
proceedings by or against the Purchaser (including any assignment by Purchaser
for the benefit of creditors). Upon the occurrence of any event of default, at
Seller’s election: (a) the entire amount of any indebtedness and obligation due
Seller under this Agreement and interest thereon shall become immediately due
and payable without notice, demand, or period of grace; (b) Seller may suspend
the performance of any of Seller’s obligations hereunder, including, but not
limited to, obligations relating to delivery, installation and warranty
services; (c) Purchaser shall put Seller in possession of the Products upon
demand; (d) Seller may enter any premises where the Products are located and
take possession of the Products without notice or demand and without legal
proceedings; (e) at the request of Seller, Purchaser shall assemble the
Products and make them available to Seller at a place designated by Seller
which is reasonable and convenient to all parties; (f) Seller may sell or
otherwise dispose of all or any part of the Products and apply the proceeds thereof
against any indebtedness or obligation of Purchaser under this Agreement
(Purchaser agrees that a period of 10 days from the time notice is sent to
Purchaser shall be a reasonable period of notification of sale or other
disposition of the Products by or for Seller); (g) if this Agreement or any
indebtedness or obligation of Purchaser under this Agreement is referred to an
attorney for collection or realization, Purchaser shall pay to Seller all costs
of collection and realization (including, without limitation, a reasonable sum
for attorneys’ fees, expenses of title search, all court costs and other legal
expenses) incurred thereby; and (h) Purchaser shall pay any deficiency
remaining after collection of or realization by Seller on the Products.

5.        EXPORT
TERMS

5.1 Unless other
arrangements have been made, payment on export orders shall be made by
irrevocable confirmed letter of credit, payable in U.S. dollars against Seller’s
invoice and standard shipping documents. Such letter of credit shall be in an
amount equal to the full purchase price of the Products and shall be
established in a U.S. bank acceptable to Seller. Purchaser shall procure all
necessary permits and licenses for shipment and compliance with any
governmental regulations concerning control of final destination of Products.

5.2 Purchaser shall
not, directly or indirectly, violate any U.S. law, regulation or treaty, or any
other international treaty or agreement, relating to the export or reexport of
any Product or associated technical data, to which the U.S. adheres or with
which the U.S. complies. Purchaser shall defend, indemnify and hold Seller
harmless from any claim, damage, liability or expense (including but not
limited to reasonable attorney’s fees) arising out of or in connection with any
violation of the preceding sentence. If Purchaser purchases a Product at the
domestic price and exports such Product, or transfers such Product to a third
party for export, outside of the U.S., Purchaser shall pay to Seller the
difference between the domestic price and the international retail price of
such Product pursuant to the payment terms set forth herein. Purchaser shall
deliver to Seller, upon Seller’s request, written assurance regarding
compliance with this section in form and content acceptable to Seller.

6.        DELIVERY, RISK OF LOSS

6.1 Delivery Date. Delivery
and completion schedules are approximate only and are based on conditions at
the time of acceptance of Purchaser’s order by Seller. Seller shall make every
reasonable effort to meet the delivery date(s) quoted or acknowledged, but
shall not be liable for any failure to meet such date(s). Partial shipments may
be made.

6.2 Risk of Loss; Title Transfer. Unless
otherwise agreed to in writing, the following shall apply:

(a) For Products that do not require installation by
Seller or its authorized agent or subcontractor, and for options and add-on
products purchased subsequent to delivery and installation of Products
purchased under this Agreement, delivery shall be complete upon transfer of possession
to common carrier, F.O.B. Shipping Point, whereupon title to and all risk of
loss, damage to or destruction of the Products shall pass to Purchaser.

(b) For Products that require installation by Seller
or its authorized agent or subcontractor, delivery shall be complete upon
delivery of the Products to Purchaser’s designated site, F.O.B. Destination;
title to and all risk of loss, damage to or destruction of such Products shall
pass to Purchaser upon completion of the installation by Seller or its authorized
agent or subcontractor.

(c) All freight charges and other transportation,
packing and insurance costs, license fees, custom duties and other similar
charges shall be the sole responsibility of the Purchaser unless otherwise
agreed to in writing by Seller. In the event of any loss or damage to any of
the Products during shipment. Seller and Purchaser shall cooperate in making a
claim against the carrier.

7.        SECURITY INTEREST/FILING

7.1 From the F.O.B.
point, Seller shall have a purchase money security interest in the Products
(and all accessories and replacements thereto and all proceeds thereof) until
payment in full by  Purchaser and
satisfaction of all other obligations of Purchaser hereunder. Purchaser hereby
(i) authorizes Seller to file (and Purchaser shall promptly execute, if
requested by Seller) and (ii) irrevocably appoints Seller its agent and
attorney-in-fact to execute in the name of Purchaser and file, with such
authorities and at such locations as Seller may deem appropriate, any Uniform
Commercial Code financing statements with respect to the Products and/or this
Agreement. Purchaser also agrees that an original or a photocopy of this
Agreement (including any addenda, attachments and amendments hereto) may be
filed by Seller as a Uniform Commercial Code financing statement. Purchaser
further represents and covenants that (a) it will keep the Products in good
order and repair until the purchase price has been paid in full, (b) it will
promptly pay all taxes and assessments upon the Products or the use thereof,
(c) it will not attempt to transfer any interest in the Products until the
purchase price has been paid in full, and (d) it is solvent and financially
capable of paying the full purchase price for the Products.

8.        CHANGES, CANCELLATION, AND RETURN

8.1 Orders accepted
by Seller are not subject to change except upon written agreement.

8.2 Orders accepted
by Seller are noncancellable by Purchaser except upon Seller’s written consent
and payment by Purchaser of Seller’s reasonable cancellation charges not to
exceed 25% of the price of the affected Products, plus any shipping, insurance,
inspection and refurbishment charges. In no event can an order be cancelled by
Purchaser or Products be returned to Seller after shipment has been made.

8.3  Seller shall have the right to change the
manufacture and/or design of its Products if, in the judgment of Seller, such
change does not alter the general function of the Products.

9.        FORCE
MAJEURE

9.1 Seller will
make every effort to complete shipment, and installation where indicated, but
shall not be liable for any loss or damage for delay in delivery, inability to
install or any other failure to perform due to causes beyond its reasonable
control including, but not limited to, acts of government or compliance with
any governmental rules or regulations, acts of God or the public, war, civil
commotion, blockades, embargoes, calamities, floods, fires, earthquakes,
explosions, storms, strikes, lockouts, labor disputes, or unavailability of
labor, raw materials, power or supplies. Should such a delay occur, Seller may
reasonably extend delivery or production schedules or, at its option, cancel
the order in whole or part without liability other than to return any unearned
deposit or prepayment.

10.      WARRANTY

10.1 Seller
warrants that the Products manufactured by Seller and sold hereunder shall be
free from defects in material or workmanship under normal use and service for
the warranty period. Unless otherwise set forth in the quotation or in a
separate Warranty Statement covering the Products to be provided by Seller, the
warranty period shall commence on the date that the Products have been
installed in accordance with 12.6 hereof, which date shall be confirmed in
writing by Seller, and shall continue for 12 consecutive months. Seller makes
no warranty for any Products made by persons other than Seller or its
affiliates, and Purchaser’s sole warranty therefor, if any, is the original
manufacturer’s warranty, which Seller agrees to pass on to Purchaser, as applicable.

ACCEPTANCE ON FIRST PAGE
INCLUDES ALL FOLLOWING PAGES AS SPECIFIED ABOVE

 23
 

Terms and Conditions of
Sale

10.2 No warranty
extended by Seller shall apply to any Products which have been damaged by
accident, misuse, abuse, negligence, improper application or alteration or by a
force majeure occurrence as described in Section 9 hereof or by the Purchaser’s
failure to operate the Products in accordance with the manufacturer’s
instructions or to maintain the recommended operating environment and line
conditions; which are defective due to unauthorized attempts to repair,
relocate, maintain, service, add to or modify the Products by the Purchaser or
any third party or due to the attachment and/or use of non-Seller supplied
equipment without Seller’s prior written approval; which failed due to causes
from within non-Seller supplied equipment;; which have been damaged from the
use of operating supplies or consumable parts not approved by Seller. In
addition, no warranty extended by Seller shall apply to any transducer failure
due to events such as cracking from high impact drops, cable rupture from
rolling equipment over the cable, or delamination from cleaning with
inappropriate solutions. Seller’s obligation under this warranty is limited to
the repair or replacement, at Seller’s option, of defective parts. Seller may
effectuate such repair at Purchaser’s facility, and Purchaser shall furnish
Seller safe and sufficient access for such repair. Repair or replacement may be
with parts or products that are new, used or refurbished. Repairs or
replacements shall not interrupt, extend or prolong the term of the warranty.
Purchaser shall, upon Seller’s request, return the noncomplying Product or part
to Seller with all transportation charges prepaid, but shall not return any
Product or part to Seller without Seller’s prior written authorization.
Purchaser shall pay Seller its normal charges for service and parts for any
inspection, repair or replacement that is not, in Seller’s sole judgement,
required by noncompliance with the warranty set forth in Section 10.1. Seller’s
warranty does not apply to consumable materials, except as specifically stated
in writing, nor to products or parts thereof supplied by Purchaser.

10.3 This warranty
is made on condition that immediate written notice of any noncompliance be
given to Seller and Seller’s inspection reveals that the Purchaser’s claim is
valid under the terms of the warranty (i.e., that the noncompliance is due to
traceable defects in original materials and/or workmanship).

10.4 Warranty
service will be provided without charge during Seller’s regular working hours
(8:30-5:00), Monday through Friday, except Seller’s recognized holidays. If
Purchaser requires that service be performed other than during these times,
such service can be made available at an additional charge, at Seller’s then
current rates. SELLER MAKES NO WARRANTY OTHER
THAN THE ONE SET FORTH HEREIN OR THAT WHICH MAY BE PROVIDED IN A SEPARATE
WARRANTY COVERING THE APPLICABLE PRODUCT CATEGORY. SUCH WARRANTY IS IN LIEU OF
ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY
EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR PARTICULAR
PURPOSES, AND SUCH CONSTITUTES THE ONLY WARRANTY MADE WITH RESPECT TO THE
PRODUCTS AND ANY DEFECT, DEFICIENCY OR NONCONFORMITY IN ANY PRODUCT, SERVICE OR
OTHER ITEM FURNISHED UNDER THIS AGREEMENT.

11.      LIMITATION
OF LIABILITY

11.1 In no event
shall Seller’s liability hereunder exceed the actual loss or damage sustained
by Purchaser, up to the purchase price of the Products.

11.2 SELLER SHALL NOT BE LIABLE FOR
ANY LOSS OF USE, REVENUE OR ANTICIPATED PROFITS, LOSS OF STORED, TRANSMITTED OR
RECORDED DATA, OR FOR ANY INCIDENTAL, UNFORESEEN, SPECIAL, PUNITIVE OR
CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR
THE SALE OR USE OF THE PRODUCTS. This provision does not
affect third party claims for personal injury arising as a result of Seller’s
negligence or product defect. THE FOREGOING
IS A SEPARATE, ESSENTIAL TERM OF THIS AGREEMENT AND SHALL BE EFFECTIVE UPON THE
FAILURE OF ANY REMEDY, EXCLUSIVE OR NOT.

12.      INSTALLATION-ADDITIONAL
CHARGES

12.1 General.
Unless otherwise expressly stipulated in writing, the Products covered hereby
shall be installed by and at the expense of Seller except for rigging charges
which shall be the responsibility of Purchaser.

12.2  Installation by Seller. If Seller specifies
it will install the Products, the following applies: subject to fulfillment of
the obligations set forth in 12.4 below, Seller shall install the Products
covered hereby and connect same to the requisite safety switches and power
lines to be installed by Purchaser. Except as otherwise specified below, if
such installation and connection are performed by Seller technical personnel,
prices shown include the cost thereof, provided that the installation and
connection can be performed within the Continental United States or Puerto Rico
and during normal business hours. Any overtime charges or other special
expenses shall be additional charges to the prices shown.

12.3 Trade Unions.
If a trade union, or unions, prevents Seller from performing the above work,
the Purchaser shall make all required arrangements with the trade union, or
unions, to permit Seller completion of said work. Moreover, any additional cost
related to such labor disputes shall be paid by the Purchaser and Seller’s
obligations under such circumstances will be limited to providing engineering
supervision of installation and connection of Seller equipment to existing
wiring.

12.4 Purchaser’s Obligations.
Purchaser shall, at its expense, provide all proper and necessary labor and
materials for plumbing service, carpentry work, conduit wiring, and other
preparations required for such installation and connection. All such labor and
materials shall be completed and available at the time of delivery of the
Products by Seller. Additionally, the Purchaser shall provide free access to
the premises of installation and, if necessary, safe and secure space thereon
for storage of Products and equipment prior to installation by Seller. If any
special work of any type must be performed in order to comply with requirements
of any governmental authority, including procurement of special certificates,
permits and approvals, the same shall be performed or procured by Purchaser at
Purchaser’s expense. Purchaser shall provide a suitable environment for the
Products and shall ensure, at its sole cost and expense, that its premises are
free of asbestos, hazardous conditions and any concealed dangerous conditions
and that all site requirements are met. In the event that Seller is requested
to supervise the installation of the Products, it remains the Purchaser’s
responsibility to comply with local regulations. Seller is not an architect and
all drawings furnished by Seller are not construction drawings.

12.5 Regulatory Reporting.
In the event that any regulatory activity is performed by other than Seller
authorized personnel, Purchaser shall be responsible for fulfilling any and all
reporting requirements.

12.6 Completion of Installation.
Installation shall be complete upon the conclusion of final calibration and
checkout under Seller standard procedures to verify that the Products meet
applicable written performance specifications. Notwithstanding the foregoing,
first use of the Products by Purchaser, its agents or employees for any purpose
after delivery shall constitute completion of installation.

13.      PATENT,
TRADEMARK AND OTHER INFRINGEMENT CLAIMS

13.1 Infringement by Seller.
Seller warrants that the Products manufactured by Seller and sold hereunder do
not infringe any U.S. patent or copyright. If Purchaser receives a claim that
any such Product, or parts thereof, infringe upon the rights of others under
any U.S. patent or copyright, Purchaser shall notify Seller immediately in
writing. As to all infringement claims relating to Products or parts
manufactured by Seller or one of its affiliates:

(a) Purchaser shall give Seller information,
assistance and exclusive authority to evaluate, defend and settle such claims.

(b) Seller shall then, at its own expense, defend or
settle such claims, procure for the Purchaser the right to use the Products, or
remove or modify them to avoid infringement. If none of these alternatives is
available on terms reasonable to Seller, then Purchaser shall return the
Products to Seller and Seller shall refund to Purchaser the purchase price paid
by the Purchaser less reasonable depreciation for Purchaser’s use of the
Products.

13.2 Infringement by Purchaser.
If some or all of the Products sold hereunder are made by Seller pursuant to
drawings or specifications furnished by the Purchaser, or if Purchaser modifies
or combines, operates or uses the Products other than as specified by Seller or
with any product, data, software, apparatus or program not provided or approved
by Seller, then the indemnity obligation of Seller under Section 13.1 shall be
null and void and should a claim be made that such Products infringe the rights
of any third party under patent, trademark or otherwise, then Purchaser shall
indemnify and hold Seller harmless against any liability or expense, including
reasonable attorneys’ fees, incurred by Seller in connection therewith.

14.      DESIGNS
AND TRADE SECRETS/LICENSE

14.1 Any drawings,
data, designs, software programs or other technical information supplied by
Seller to Purchaser in connection with the sale of the Products are not
included in the sale of the Products to Purchaser, shall remain Seller’s
property and shall at all times be held in confidence by Purchaser. Such
information shall not be reproduced or disclosed to others without Seller’s
prior written consent.

14.2 For all goods
purchased hereunder which utilize software for their operation, such “Applications
Software” shall be licensed to Purchaser under the terms of Seller’s Software
License Schedule as attached hereto.

14.3
Diagnostic/Maintenance Software is not included under 14.2 above, is available
only as a special option under a separate Diagnostic Materials License
Agreement and may be subject to a separate licensing fee.

15.      ENGINEERING
CHANGES

15.1 Seller makes
no representation that engineering changes which may be announced in the future
will be suitable for use on, or in connection with, the Products.

16.      ASSIGNMENT

16.1 Neither party
may assign any rights or obligations under this Agreement without the written
consent of the other and any attempt to do so shall be void, except that Seller
may assign this Agreement without consent to any subsidiary or affiliated
company. This Agreement shall inure to and be binding upon the parties and
their respective successors, permitted assigns and legal representatives.

17.      DAMAGES,
COSTS AND FEES

17.1 In the event
that any dispute or difference is brought arising from or relating to this
Agreement or the breach, termination or validity thereof, the prevailing party
shall NOT be entitled to recover from the other party any punitive damages. The
prevailing party shall be entitled to recover from the other party all
reasonable attorneys’ fees incurred, together with such other expenses, costs
and disbursements as may be allowed by law.

18.      MODIFICATION

18.1 This Agreement
may not be changed, modified or amended except in writing signed by duly
authorized representatives of the parties.

19.      GOVERNING
LAW

19.1 This Agreement
shall be governed by the laws of the Commonwealth of Pennsylvania.

20.      INTEGRATION

20.1 These terms
and conditions, including any attachments or other documents incorporated by
reference herein, constitute the entire agreement and the complete and exclusive
statement of agreement with respect to the subject matter hereof, and supersede
any and all prior agreements, understandings and communications between the
parties with respect to the Products.

21.      SEVERAB1LITY;
HEADINGS

21.1 No provision
of this Agreement which may be deemed unenforceable will in any way invalidate
any other portion or provision of this Agreement. Section headings are for
convenience only and will have no substantive effect.

22.      WAIVER

22.1 No failure and
no delay in exercising, on the part of any party, any right under this
Agreement will operate as a  waiver
thereof, nor will any single or partial exercise of any right preclude the
further exercise of any other right.

23.      NOTICES

23.1 Any notice or
other communication under this Agreement shall be deemed properly given if
given in writing and delivered in person or mailed, properly addressed and
stamped with the required postage, to the intended recipient at its address
specified on the face hereof. Either party may from time to time change such
address by giving the other party notice of such change in accordance with this
section.

24.      RIGHTS
CUMULATIVE

24.1 The rights and
remedies afforded to Seller under this Agreement are in addition to, and do not
in anyway limit, any other rights or remedies afforded to Seller by any other
agreement, by law or otherwise.

25.      END USER
CERTIFICATION

25.1 Purchaser
represents, warrants and covenants that it is acquiring the Products for its
own end use and not for reselling, leasing or transferring to a third party
(except for lease-back financings). 08/05 Rev.

ACCEPTANCE
ON FIRST PAGE INCLUDES ALL FOLLOWING PAGES AS SPECIFIED ABOVE

 24
 

Software License Schedule To The
Siemens Medical Solutions USA, Inc.

Terms and Conditions of Sale

1. DEFINITIONS: The following
definitions apply to this Schedule: “Agreement”
shall mean the attached (i) Quotation for Products and/or Services including
the Terms and Conditions of Sale and applicable schedules; and/or (ii) Software
License Agreement describing the software licensed herein and the specific
system for which the license is issued.

“Licensor” shall mean Siemens
Medical Solutions USA, Inc.

“Licensee” shall mean the end-user
to whom Licensor provides Software or Documentation for its internal use under
the Agreement. “Software” shall
mean the software described in the attached Agreement, including the following
as contained therein: (i) software programs consisting of a series of
statements or instructions to be used directly or indirectly in a programmable
controller or computer to bring about a certain result and (ii) databases
consisting of systemized collections of data to be used or referenced directly
or indirectly by a programmed controller or computer. Notwithstanding the
foregoing, “Software” does not include “firmware” as such term is
conventionally understood. Diagnostic/Maintenance Software also is not included
within the scope of the Software licensed under this Schedule, and is available
only as a special option under a separate Diagnostic Materials License
Agreement and may be subject to a separate licensing fee. “Documentation” shall mean the documents
and other supporting materials which are intended to support the use of an
associated product, including (but not limited to) instructions, descriptions,
flow charts, logic diagrams and listings of the Software, in text or graphic
form, on machine readable or printed media.

“Designated Unit”
shall mean a single control unit or computer identified on the first page of
the Agreement, on which Software licensed hereunder may be used by Licensee.

2. SCOPE: The following terms and
conditions shall apply to all Software and Documentation provided by Licensor
to Licensee under the Agreement (whether included with other products listed in
the Agreement or listed separately in the Agreement), together with any updates
or revisions thereto which Licensor may provide to Licensee, and all copies
thereof, except any Software and/or Documentation licensed directly by Licensor’s
supplier under a separate end-user license agreement accompanying the Software
or the Documentation, in which case Licensee agrees to be bound by that license
agreement as a condition to using the Software and/or Documentation. Except as
expressly provided herein, and provided that in no event shall the warranties
or other obligations of Licensor with respect to such Software or Documentation
exceed those set forth in this Schedule, this Schedule shall be subject to the
liability limitations and exclusions and other terms and conditions set forth
in the Agreement. ANY USE OF THE SOFTWARE,
INCLUDING BUT NOT LIMITED TO USE ON THE DESIGNATED UNIT, WILL CONSTITUTE
LICENSEE’S AGREEMENT TO THIS SOFTWARE LICENSE SCHEDULE (OR RATIFICATION OF ANY
PREVIOUS CONSENT).

3. SOFTWARE AND DOCUMENTATION LICENSE:
Subject to the payment of any applicable annual license fee(s), whether stated
separately or included in the purchase price of another product, and to
Licensee’s acceptance of all of the obligations set forth herein and to the
fulfillment of those obligations, Licensor or, if applicable, its licensor or
supplier, hereby grants to Licensee a paid-up, nonexclusive and nontransferable
(except as expressly provided in this Schedule) limited license to use the
Software provided by Licensor under the Agreement solely for Licensee’s own use
on the Designated Unit and to use the Documentation in support of Licensee’s
authorized use of the Software,  for the
purpose of operating the Designated Unit in accordance with the instructions
set forth in the user’s manual supplied with the Designated Unit and for no
other purpose whatsoever. A separate license is required for each Designated
Unit on which the Software is to be used. Licensee may obtain from Licensor one
copy of the Software licensed hereunder for backup and archival purposes only
as is necessary to support Licensee’s own authorized use of the Software,
provided that Licensee includes on or in all copies (in any form) all
copyright, trade secret or other proprietary notices contained on or in the
Software as provided by Licensor. Additional copies of the Documentation may be
licensed from Licensor at its then applicable charges. Licensee may make the
Software and Documentation (including any copies) available only to its
employees and other persons on Licensee’s premises to whom such disclosure is
necessary to enable Licensee to use the Software or Documentation within the
scope of the license provided in this Schedule. If the Software is supplied to
any unit or agency of the United States Government other than the Department of
Defense, the Software and Documentation are classified as “restricted computer
software’’ and the Government’s rights in the Software and Documentation shall
be as provided in paragraph (c) (2) of the Commercial Computer
Software-Restricted Rights clause in FAR 52.227-19 and any successor laws,
rules or regulations thereto.

If the Software is supplied to the United States Department of Defense,
the Software is classified as “commercial computer software” and the Government
is furnished the Software and Documentation with “restricted rights” as defined
in paragraph (c) (1) of the Rights in Technical Data and Computer Software
clause in DFARS 252.227-7013 and any successor laws, rules or regulations
thereto.

4. PROPRIETARY PROTECTION AND CONFIDENTIALITY:
Ownership of and title to the Software and Documentation and all copies, in any
form, licensed under this Schedule are and will remain in Licensor or its
suppliers at all times. Licensee shall not (i) remove any copyright, trade
secret or other proprietary right notices contained on or in the Software or
Documentation as provided by Licensor, (ii) reproduce or modify any Software or
Documentation or copy thereof, (iii) reverse assemble, reverse engineer or
decompile any Software, or copy thereof, in whole or in part (except and only
to the extent that such activity is expressly permitted by applicable law
notwithstanding this limitation), (iv) sell, transfer or otherwise make
available to others the Software or Documentation, or any copy thereof, except
as expressly permitted by this Schedule, or (v) apply any techniques to derive
any trade secrets embodied in the Software or Documentation. Licensee shall
take all appropriate actions to ensure that: (i) the Software does not leave
the Designated Unit’s equipment location as set forth above, (ii) the Software
is not copied by Licensee or any third parties, and (iii) the Software is not
used in any equipment other than the Designated Unit. Licensee shall secure and
protect the Software and Documentation and copies thereof from disclosure and
shall take such actions with its employees and other persons who are permitted
access to the Software or Documentation or copies as may be necessary to
satisfy Licensee’s obligations hereunder. Prior to disposing of any computer
medium, computer memory or data storage apparatus, Licensee shall ensure that
all copies of Software and Documentation have been erased therefrom or
otherwise destroyed. In the event that Licensee becomes aware that any Software
or Documentation or copies are being used in a manner not permitted by the
license, Licensee shall immediately notify Licensor in writing of such fact and
if the person or persons so using the Software or Documentation are employed or
otherwise subject to Licensee’s direction and control, Licensee shall use
reasonable efforts to terminate such impermissible use. Licensee will fully
cooperate with Licensor so as to enable Licensor to enforce its proprietary and
property rights in the Software. Licensee agrees that, subject to Licensee’s
reasonable security procedures, Licensor shall have immediate access to the
Software at all times and that Licensor may take immediate possession thereof
upon termination or expiration of the associated license or this Schedule.
Licensee’s obligations under this paragraph shall survive any termination of a
license, the Schedule or the Agreement.

5. UPDATES AND REVISIONS: During the
warranty period or under a separate service contract or software update
subscription, revised or updated versions of the Software licensed under this
Schedule may be made available, at Licensor’s option, to Licensee to use or to
test while Licensee continues use of a previous version. Licensee has the right
to decide whether to install any such revised or updated versions or to
continue use of the previous version after giving due regard to the United
States Food and Drug Administration rules and regulations. However, Licensee
shall pay Licensor for any services necessitated by any modifications of the
Software by Licensee or by Licensee’s failure to utilize the current
non-investigational version of the Software provided by Licensor. Software
updates that provide new features or capabilities or that require hardware
changes will be offered to Licensee at purchase prices established by Licensor.
Licensor retains the sole right to determine whether an update represents an
enhancement of a previously purchased capability or a new capability for which
the Licensee will be charged. In addition, some updates may require Applications
Training performed by Licensor’s personnel that will be offered at Licensor’s
prevailing rates. Licensor retains the sole right to determine whether an
update requires such training.

6. DELIVERY, RISK OF LOSS AND TITLE:
Notwithstanding the provisions of Section 6 of the attached Terms and
Conditions of Sale, if any, the Software and Documentation licensed hereunder
shall be delivered on or about the delivery date stated in the Agreement unless
a separate delivery date is agreed upon. If Software or Documentation licensed
hereunder is lost or damaged during shipment from Licensor, Licensor will
replace it at no charge to Licensee. If any Software or Documentation supplied
by Licensor and licensed hereunder is lost or damaged while in the possession
of Licensee, Licensor will replace it at Licensor’s then current applicable
charges, if any, for materials, processing and distribution. Notwithstanding
the provisions of Section 6 of the attached Terms and Conditions of Sale, if
any, the Software and Documentation, in any form, and all copies made by
Licensee, including partial copies, and all computer media provided by Licensor
are and remain the property of Licensor or its supplier. Licensee has no right,
title or interest in the Software, the Documentation, or any computer media
provided by Licensor, or copies, except as stated herein, and ownership of any
such Software, Documentation and computer media shall at all times remain with
Licensor or its suppliers.

7. LICENSE TRANSFER: The Software
and Documentation, and the license hereunder, may not be assigned, transferred
or sublicensed except as hereinafter provided. Upon the sale or lease of the
Designated Unit to a third party, Licensee may transfer to such third party,
with Licensor’s written consent and in accordance with Licensor’s then current
policies and charges, the license to use the Software and Documentation
hereunder, together with the Software, the Documentation, the computer media
provided by Licensor, and all copies provided that: (i) Licensee notifies
Licensor in writing of the name and address of such third party; (ii) such
third party agrees in a written instrument delivered to Licensor to the terms
of this Schedule; and (iii) Licensee does not retain any copies of the Software
or Documentation in any form.

8. WARRANTIES: Licensor warrants
that for the warranty period, provided by Licensor under the attached Terms and
Conditions of Sale, if any, the Software shall conform in all material respects
to Licensor’s published specifications as contained in the applicable
supporting Documentation. This paragraph replaces Paragraphs 10.1 and 10.4 of
any such Terms and Conditions of Sale with respect to the Software and
Documentation. Such Documentation may be updated by Licensor from time to time
and such updates may constitute a change in specification.

Licensee acknowledges that the Software is of such complexity that it
may have inherent or latent defects. As Licensee’s sole remedy under the
warranty. Licensor will provide services, during the warranty period, to
correct documented Software errors which Licensor’s analysis indicates are
caused by a defect  in the unmodified
version of the Software as provided by Licensor. Licensor does not warrant that
the Software will meet Licensee’s requirements, or will operate in combinations
which may be selected for use by Licensee, or that the operation of the
Software will be uninterrupted or error free. Licensee is responsible for
determining the appropriate use of and establishing the limitations of the
Software and its associated Documentation as well as the results obtained by
use thereof.

LICENSOR MAKES NO WARRANTY WITH RESPECT TO THE
SOFTWARE AND DOCUMENTATION OTHER THAN THOSE SET FORTH IN THIS SECTION. THE
WARRANTY HEREIN IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING BUT NOT LIMITED TO ANY EXPRESS OR IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WHICH ARE HEREBY
DISCLAIMED, AND CONSTITUTES THE ONLY WARRANTY MADE WITH RESPECT TO THE SOFTWARE
AND DOCUMENTATION.

9. LICENSE TERM AND TERMINATION: The
license for the Software and Documentation is effective on the shipment date of
the Software and Documentation (F.O.B. shipping point or F.A.S., as the case
may be) and continues until Licensee’s possession of the Software and all
copies ceases (except in connection with a transfer of the license as permitted
by this Schedule) or until otherwise terminated as provided herein. Licensee
may terminate the license for the Software and Documentation at any time after
discontinuance of use of the Software and Documentation and all copies, upon
written notice to Licensor. If Licensee (i) fails to comply with its
obligations herein and does not cure such failure within ten (10) days after
receipt of notice from Licensor, or (ii) attempts to assign the Agreement or
this Schedule or any rights or obligations hereunder without Licensor’s prior
written consent, then Licensor may terminate the license hereunder and require
the immediate discontinuance of all use of the Software and Documentation and
all copies thereof in any form, including modified versions and updated works.
Within five (5) days after the termination of the license, Licensee shall, at
Licensor’s option either. (i) return to Licensor the Software and Documentation,
and all copies, in any form, including updated versions, along with any
computer media provided by Licensor, or (ii) destroy the affected Software and
Documentation, and all copies, in any form, including updated versions, and
certify such return or destruction in writing to Licensor.

10. MISCELLANEOUS: Since the
unauthorized use of the Software and/or Documentation may leave Licensor
without an adequate remedy at law. Licensee agrees that injunctive or other
equitable relief will be appropriate to restrain such use, threatened or
actual. Licensee further agrees that to the extent applicable, (i)
any of Licensor’s suppliers of Software and/or Documentation is a direct
and intended beneficiary of this Schedule and may enforce it directly against
Licensee with respect to the Software and/or Documentation provided by such
supplier, and that (ii) NO SUPPLIER OF
LICENSOR SHALL BE LIABLE FOR ANY GENERAL, SPECIAL, DIRECT, INDIRECT,
CONSEQUENTIAL, INCIDENTAL OR OTHER DAMAGES ARISING OUT OF ANY SUBLICENSE OF THE
SOFTWARE

ACCEPTANCE
ON FIRST PAGE INCLUDES ALL FOLLOWING PAGES AS SPECIFIED ABOVE

 25
 

 

AND/OR DOCUMENTATION. THIS LIMITATION ON LIABILITY
SHALL APPLY EVEN IF ANY REMEDY FAILS OF ITS ESSENTIAL PURPOSE.

11. ADDITIONAL PROVISIONS RELATING TO THIRD-PARTY
SOFTWARE: If the Software includes software licensed by
Licensor from third parties, the following additional provisions shall apply:

(a) If Software is provided by Licensor on separate
media and labeled “Recovery Media,” Licensee may use the Recovery Media solely
to restore or reinstall the Software and/or Documentation originally installed
on the Designated Unit.

(b) Licensee is licensed to use the Software to
provide only the limited functionality (specific tasks or processes) for which
the Designated Unit has been  designed
and marketed by Licensor. This license specifically prohibits any other use of
the software programs or functions, or inclusion of additional software
programs or functions that do not directly support the limited functionality,
on the Designated Unit. If Licensee uses the Designated Unit to access or
utilize the services or functionality of Microsoft Windows Server products
(such as Microsoft Windows NT Server 4.0 (all editions) or Microsoft Windows
2000 Server (all editions)), or uses the Designated Unit to permit workstation
or computing devices to access or utilize the services or functionality of
Microsoft Windows Server products, Licensee may be required to obtain a Client
Access License for the Designated Unit and/or each such workstation or
computing device. Licensee should refer to the end user license agreement for
its Microsoft Windows Server product for additional information.

(c) The Software may contain support for programs
written in Java. Java technology is not fault tolerant and is not designed,
manufactured, or intended for use or resale as online control equipment in
hazardous environments requiring fail-safe performance, such as in the
operation of nuclear facilities, aircraft navigation or communication systems,
air traffic control, direct life support machines, or weapons systems, in which
the failure of Java technology could lead directly to death, personal injury,
or severe physical or environmental damage. Sun Microsystems, Inc. has
contractually obligated Licensor’s supplier to make this disclaimer.

(d) The Software may permit Licensor, its supplier(s),
or their respective affiliates to provide or make available to Licensee
Software updates, supplements, add-on components, or Internet-based services
components of the Software after the date Licensee obtains its initial copy of
the Software (“Supplemental Components”).

- If Licensor provides or makes available to Licensee
Supplemental Components and no other end-user software licensing agreement
terms are provided along with the Supplemental Components, then the terms of
this Software License Schedule shall apply.

- If a supplier of Licensor or affiliates of such a
supplier make available Supplemental Components, and no other end-user software
licensing agreement terms are provided, then the terms of this Schedule shall
apply, except that the supplier or affiliate entity providing the Supplemental
Component(s) shall be the licensor of the Supplemental Component(s).

Licensor, its supplier(s), and their respective affiliates reserve the
right to discontinue any Internet-based services provided to Licensee or made
available to Licensee through the use of the Software.

(e) The Software and Documentation supplied by
Licensor’s suppliers are provided by such suppliers “AS IS” and with all
faults. SUCH SUPPLIERS DO NOT BEAR ANY OF THE RISK AS TO SATISFACTORY QUALITY,
PERFORMANCE, ACCURACY, OR EFFORT (INCLUDING LACK OF NEGLIGENCE) WITH RESPECT TO
SUCH SOFTWARE AND DOCUMENTATION. ALSO, THERE IS NO WARRANTY BY SUCH SUPPLIERS
AGAINST INTERFERENCE WITH LICENSEE’S ENJOYMENT OF THE SOFTWARE OR AGAINST
INFRINGEMENT. IF LICENSEE HAS RECEIVED ANY WARRANTIES REGARDING THE DESIGNATED
UNIT OR THE SOFTWARE, THOSE WARRANTIES DO NOT ORIGINATE FROM, AND ARE NOT
BINDING ON, LICENSOR’S SUPPLIERS.

(f) Licensee acknowledges that portions of the
Software are of U.S. origin. Licensee agrees to comply with all applicable
international and national laws that apply to the Software, including the U.S.
Export Administration Regulations, as well as applicable end-user, end-use and
destination restrictions issued by U.S. and other governments. For additional
information on exporting software supplied by Microsoft, see
http://www.microsoft.com/exporting/.

Revised 03-15-05

 26
 

CT Warranty Information

	
  Product

  	
   

  	
  Period of Warranty(1)

  	
   

  	
  Coverage

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CT System (not including glassware and consumables

  	
   

  	
  12 month

  	
   

  	
  Full Warranty (parts & labor) including Straton
  tube

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Following parts will include warranty as listed
  below:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Single Tank tube with rotating anode (non spiral)
  (Rotanx)

  	
   

  	
  Prorated to a maximum of *** scans or 12 month
  whichever occurs first

  	
   

  	
  Prorated credit given to customer against
  replacement cost

  	
   

  	
  credit percentage = (***-scans used)/****100

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Single Tank tube with rotating anode (spiral) (Rotanx)

  	
   

  	
  Prorated to a maximum of *** scanseconds or 12 month
  whichever occurs first

  	
   

  	
  Prorated credit given to customer against
  replacement cost

  	
   

  	
  credit percentage = (***-scanseconds used)/****100

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Opti 151 and Opti 157 tube

  	
   

  	
  Prorated to a maximum of *** scans or 12 month
  whichever occurs first

  	
   

  	
  Prorated credit given to customer against
  replacement cost

  	
   

  	
  credit percentage = (***-scans used)/****100

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  All other Dura tubes and Opti 131 tube

  	
   

  	
  Prorated to a maximum of *** scanseconds or 12 month
  whichever occurs first

  	
   

  	
  Prorated credit given to customer against
  replacement cost

  	
   

  	
  credit percentage = (***-scanseconds used)/****100

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dura Akron B tubes

  	
   

  	
  Prorated to a maximum of *** scanseconds or 12 month
  whichever occurs first

  	
   

  	
  Prorated credit given to customer against
  replacement cost

  	
   

  	
  credit percentage = (***-scanseconds used)/****100

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dura Akron Q tubes

  	
   

  	
  Prorated to a maximum of *** scanseconds or 12 month
  whichever occurs first

  	
   

  	
  Prorated credit given to customer against
  replacement cost

  	
   

  	
  credit percentage = (***-scanseconds used)/****100

  

 

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

 27
 

 

	
  Control triodes

  	
   

  	
  12 months

  	
   

  	
  Prorated credit given to customer against
  replacement cost

  	
   

  	
  credit percentage =

  (12 – month in use) / 12 month* 100

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cathode-ray tubes (CRT)

  	
   

  	
  12 month

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Detector Somatom Plus**,
  AR**, HiQ**, DR, DR H,G, CR for systems delivered after May 1, 1987

  	
   

  	
  First 12 month 

  Month 13 through 24

  	
   

  	
  Prorated credit given to customer against
  replacement cost, parts only

  	
   

  	
  

  credit percentage =

  (12 – month in use) / 12* 100

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consumables

  	
   

  	
  Not covered

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Post-Warranty (after expiration of system warranty) –
  Replacement parts only!

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Excluded items above

  	
   

  	
  Like described above, but parts only

  	
   

  	
  Like described above, but parts only

  	
   

  	
  Like described above, but parts only

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Straton

  	
   

  	
  Prorated to a maximum of *** scanseconds or 12 month

  whichever occurs first

  	
   

  	
  Prorated credit given to customer against
  replacement cost

  	
   

  	
  

  credit percentage =

  (*** – scanseconds used) / ***100 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Spare Parts

  	
   

  	
  6 month

  	
   

  	
  Parts only

  	
   

  	
   

  

 

Note: Optional extended warranty coverage can be obtained by purchase
of a service agreement.

(1) Period of warranty commences from the date of first use or
completion of installation, whichever occurs first. In the event the completion
of installation is delayed for reasons beyond Siemens’ control, the stated
warranty period shall commence 60 days after delivery of equipment.

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

ACCEPTANCE
ON FIRST PAGE INCLUDES ALL FOLLOWING PAGES AS SPECIFIED ABOVE

 28

Exhibit B-2

Distribution and remarketing Agreement

OCS Contract Terms and Conditions for End Users

[Attachments Follows]

Remainder of page
intentionally left blank.

 29

Siemens
Medical Solutions USA, Inc. General Terms and Conditions

1.                         Scope

Siemens will provide
remedial maintenance service on the equipment described on the preceding pages
hereof (the “Equipment”) when requested by the Customer, as well as planned
maintenance inspections, when scheduled, as further described in the
Features/Benefits Listing attached hereto, in order to keep the Equipment
operating in accordance with the manufacturer’s specifications. Siemens will
make every effort to respond to service calls at a mutually agreed upon arrival
time consistent with the provisions cited in paragraph 2.

2.                         Principal
Coverage Period (PCP)

Service and maintenance will
be provided during the principal coverage period as defined on the preceding
page(s) hereof, excluding the following holidays: New Years Day, Memorial Day
(observed), Independence Day, Labor Day, Thanksgiving Day, Christmas Day. If
one of the foregoing holidays falls on a Saturday, then the holiday will be
observed on the previous Friday, and if the holiday falls on a Sunday, the
holiday will be observed on the following Monday. Unless an extended hours
coverage option has been selected, labor and travel required outside the
principal coverage period will be charged at Siemens’ prevailing per-call rates.

3.                         Replacement
Parts

Siemens will supply at its
own expense, necessary parts, except as indicated in the Features/Benefits
Listing, provided replacement of the parts is required because of normal wear
and tear or otherwise deemed necessary by Siemens and further provided that the
Siemens-manufactured parts are available from the factory. All Parts will be
new, standard parts, or used, reworked or refurbished parts that comply with
applicable performance and reliability specifications. Exchange parts removed
from the Equipment shall become the property of Siemens unless such exchange
parts constitute “hazardous wastes”, “hazardous substances”, “special wastes”
or other similar materials, as such terms are defined by any federal, state or
local laws, rules or regulations, in which case, at the option of Siemens, the
exchange parts shall remain the property of the Customer and shall be disposed
of by the Customer in strict compliance with all applicable laws, rules and
regulations.

4.                         Planned
Maintenance (PM)

Planned maintenance will be
carried out in accordance with the schedule described in the Features/Benefits
Listing. This generally includes checking for mechanical and electrical safety,
lubrication, functional testing and adjusting for optimum performance as
specified in the detailed planned maintenance check list.

5.                         Software
Maintenance

Whenever the Equipment
covered by this Agreement utilizes Siemens’ operating system software, Siemens
will provide all maintenance and updates for such operating system software as
part of the Agreement. Such updates will solely enhance previously purchased
capacities of the Equipment. Operating system software updates that provide new
features or capabilities or that require hardware changes will be offered to
Customer at purchase prices established by Siemens. Siemens retains the sole
right to determine whether an update represents an enhancement of a previously
purchased capability or a new capability for which the Customer will be
charged. In addition, some updates may require Applications Training performed
by Siemens’ personnel that will be offered at prevailing rates. Siemens retains
the sole right to determine whether an update requires such training.

Nothing in this Agreement
shall in any way grant to Customer any right to or license in any diagnostic
service software utilized by Siemens in servicing the Equipment. Such service
software is and remains the property of Siemens and is available to Customer
pursuant to the terms and conditions of a separate diagnostic materials license
agreement, which may require payment of a license fee. This service software
shall be disabled by Siemens upon cancellation or termination of the Agreement.

6.                         Equipment;
Location; Remote Access

The Equipment covered under
this Agreement is limited to the Siemens furnished Equipment described on the
face sheet. The Equipment shall not be moved to another location unless
Customer obtains the prior written consent of Siemens, subject to the following
exceptions (i) portable Equipment (e.g., Ultrasound equipment, but not
including any equipment that is housed in a mobile vehicle, van or trailer) may
be moved to other locations within the same facility, so long as the Customer
informs Siemens of the location of the Equipment when Siemens is scheduled to
provide on-site service, (ii) if Equipment is located in a trailer, van or
other form of mobile vehicle, the Equipment may be moved from the original
Equipment Location identified on the first page of this Agreement, provided,
however, that Siemens shall not be required to service such Equipment, and the
Response Time and System Performance Guarantees shall not apply, if either (a)
the Customer does not notify Siemens at least one (1) month in advance of the
Equipment’s mobile route, or (b) the Equipment is moved more than 25 miles from
the original Equipment Location; and (iii) if fixed Equipment is moved to any
other location within the Customer’s facility, then either (a) the Customer
will engage Siemens to relocate the Equipment, at Siemens’ then current rates
and charges, or (b) if Siemens does not perform the services necessary to
relocate the Equipment, then Siemens may suspend services with respect to such
Equipment until Siemens performs an inspection of the Equipment, at the
Customer’s cost to determine if any repairs are necessitated as a result of any
such relocation (in which case the Customer shall be separately charged for
such repairs, including parts and labor). The Equipment shall be eligible for
coverage under this Agreement immediately upon expiration of the Siemens
warranty or an existing Siemens service agreement, provided it is properly
installed, remains connected to the original power supply in its original
location (other than portable or mobile Equipment, subject to the qualifications
set forth in this paragraph) and is serviced by Siemens authorized personnel
only. Equipment not eligible because of this stipulation is subject to
inspection by Siemens to determine if it is in good operating condition. Such
inspection shall be charged to the Customer at Siemens’ per-call rates and
terms then in effect. Any repairs or adjustments deemed necessary by Siemens
during the inspection shall be made at Siemens’ per-call rates and terms then
in effect and shall include charges for parts, with all such repairs or
adjustments to be completed prior to the commencement of service under this
Agreement.

Siemens service personnel
will be given full and free access to the Equipment to perform inspections and
service/maintenance on the Customer’s premises, and will make specific
appointments for such maintenance. If the Equipment is not made available at
the appointed time, waiting time beyond a reasonable allowance will be charged
at prevailing per-call rates.

Customer shall provide
Siemens with both on-site and remote access to the Equipment via the network
configuration. Remote access will be established through either
Customer-provided VPN IPsec Tunneling (non-client) Peer-to-Peer connection or
Customer-provided analog telephone service (POTS) to facilitate the connection
of a Siemens-provided Analog Router/modem solution. In both cases, access
through specific inbound and outbound network ports is required.

7.                         Agreement
Term; Price; Payment Terms

This Agreement shall be in
effect for the period stated on the face of this document.

For the basic services to be
provided by Siemens under the terms of the Agreement, the Customer agrees to
pay the Agreement Price upon the terms set forth on the first page of this
Agreement.

All payments to be made by
Customer under the Agreement are due not thirty (30) days from the invoice date.
Past due payments shall bear interest at the rate of 11⁄2% per month.

8.                         Causes
for Exclusion/Separate Charges

This Agreement specifically
excludes labor, parts and expenses necessary to repair Equipment:

·                             damaged
by fire, accident, misuse, abuse, negligence, improper application or
alteration or by a force majaure occurrence as described in paragraph 17
hereof, or by the Customer’s failure to operate the Equipment in accordance
with the manufacturer’s  
instructions  or  to 
maintain  the   recommended 
operating environment and line conditions:

·                             defective
due to unauthorized attempts to repair, relocate, maintain, service, add to or
modify the Equipment by the Customer or any third party or due to the
attachment and/or use of non-Siemens supplied equipment without Siemens’ prior
written approval;

·                             defective
due to any repair or service of the Equipment by the Customer or any third
party prior to the commencement of the term of this Agreement;

·                             which failed due to causes from within
non-Siemens supplied equipment;

·                             which
is worn out and cannot be reasonably repaired due to the unavailability of
spare parts from the original equipment manufacturer; or

·                             which
is a transducer and which is damaged or defective, or which failed, due to any
of the foregoing causes or due to improper cleaning, disinfecting or TEE bile
marks.

If Siemens is called upon to
service or repair Equipment which falls under this paragraph, a separate
invoice will be issued for labor, parts and expenses at prevailing per-call
rates and prices.

9.                         Default

In addition to any and all
other remedies available by law, Siemens may cancel this Agreement if the
Customer is in default. An event of default includes, but is not limited to:
(i) a failure by Customer to make any payment due Siemens within ten (10) days
of receipt of notice from Siemens that the payment was not made within the
applicable payment period; (ii) a failure by Customer to perform any other
obligation under this Agreement within thirty (30) days of receipt of notice
from Siemens; (iii) a failure to grant Siemens access to the Equipment as set
forth in paragraph 6 of this Agreement; (iv) a default by Customer or any
affiliate  of the Customer under any
other obligation to or agreement with Siemens, Siemens Financial Services, Inc.
or Siemens Medical Solutions Health Services Corporation,

 30
 

or any assignee of the foregoing
(including but not limited to, a promissory note, lease, rental agreement, license agreement or
purchase contract); or (v) the commencement of any insolvency, bankruptcy or similar proceedings by or against the
Customer (including any assignment by Customer for the benefit of creditors).
In addition, upon the occurrence of
any event of default, Siemens may immediately cease providing services under this Agreement until such default is cured
or corrected. Remedies shall be
cumulative and there shall be no obligation for Siemens to exercise a  particular
remedy.

10.                  Limitation of Liability

Siemens entire liability and
Customer’s exclusive remedy for damages from any cause whatsoever, and regardless of the form of action, whether liability
in contract or in tort, arising under
the Agreement or related hereto, shall not exceed an amount equal to one (1) year’s maintenance charges for the
specific item of Equipment under the Agreement that caused the damage or is the
subject matter of, or is directly
related to, the cause of action. Such maintenance charges will be those in effect for the specific item of Equipment when the
cause of action arose. The foregoing
limitation of liability shall not apply to claims by Customer or third parties
for personal injury or damage to real property or tangible personal property
caused solely and directly by the
gross negligence or willful misconduct of Siemens. In addition, Siemens shall have no liability
hereunder to Customer to the extent that Customer’s or any third party’s acts or omissions contributed in any way
to any loss it sustained or to the extent that the loss or damage is due to an
act of God or other causes beyond the reasonable control of Siemens.

THIS IS A SERVICE AGREEMENT. THERE
ARE NO SIEMENS WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO,
ANY IMPLIED WARRANTIES OF
MERCHANTABILITY AND WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT WILL SIEMENS BE LIABLE FOR ANY LOST PROFITS, LOST SAVINGS, LOST REVENUES, LOSS OF
USE OR DOWNTIME (EXCEPT AS OTHERWISE
PROVIDED HEREIN), OR FOR ANY SPECIAL,
INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE),
STRICT LIABILITY OR ANY OTHER THEORY
OR FORM OF ACTION, EVEN IF SIEMENS HAS BEEN
ADVISED OF THE POSSIBILITY THEREOF, ARISING OUT OF OR IN CONNECTION WITH THE AGREEMENT OR THE USE OR PERFORMANCE
OF THE EQUIPMENT.

11.                  Notices; Non-Assignment

All notices and changes to this
Agreement must be in writing. All notices shall be deemed to have been given on
the date of service if personally served, or upon receipt if sent by certified or registered mail,
postage prepaid, to the address set forth
on  the first page of this
Agreement. The Agreement is not assignable except that Siemens may assign
without Customer approval to any subsidiary or affiliated company or any of its
authorized dealers.

12.                  Governing Law

This Agreement shall be governed
by the laws of the Commonwealth of Pennsylvania.

13.                  Government Access Clause

Until the expiration of four (4)
years after the furnishing of any services under this Agreement, Siemens shall
make available upon written request of the Secretary of the Department of
Health and Human Services, the Comptroller General, or any of their duly authorized representatives, this
Agreement and the books, documents and records of Siemens which are necessary
to certify the nature and extent of costs
incurred under this Agreement. If Siemens carries out any of the duties of this
Agreement through a subcontract with
a value of $10,000 or more over a 12 month period with a related organization, such subcontract shall include a
clause to the effect that until the expiration or four (4) years after the
furnishing of any services under the subcontract, the related organization
shall make available upon written request of the Secretary of the Department of
Health and Human Services, the Comptroller
General, or any of their duly authorized representatives, the subcontract and the books, documents and records of the related
organization that are necessary to
certify the nature and extent of costs incurred under that subcontract.

This provision shall apply if and
solely to the extent that Section 1861 (v) (1) (I) of the Social Security Act applies to this Agreement.

14.                  Damages, Costs,
And Fees

In the event that any dispute or
difference is brought arising from or relating to this Agreement or the breach, termination, or validity
thereof, the prevailing party shall not be entitled to recover from the other
party punitive damages. The prevailing party shall be entitled to recover from
the other party all reasonable attorneys fees incurred, together with such
other expenses, costs and disbursements as may be allowed by law.

15.                  Severability;
Headings

No provision of this Agreement
which may be deemed invalid, illegal or unenforceable will in any way invalidate any other portion of provision
of this Agreement. Paragraph headings
are for convenience only and will have no substantive affect.

16.                  Waiver

No failure, and no delay in
exercising, on the part of any party, any right under this Agreement will operate as a waiver thereof, nor
will any single or partial exercise of any
right preclude the further exercise of any other right.

17.                  Force Majeure

Siemens will not be liable to
Customer for any failure to fulfill its obligations under this Agreement due to causes beyond its reasonable
control and without its fault or negligence
including, but not limited to, governmental laws and regulations, acts of God or the public, war or other violence, civil
commotion, blockades, embargoes, calamities,
floods, fires, earthquakes, explosions, accidents, storms, strikes, lockouts, work stoppages, labor disputes, or
unavailability of labor, raw materials, power or supplies. In addition, in the event of any determination
pursuant to the provisions of a
collective bargaining agreement between the Customer and any labor union representing any employees of the
Customer preventing or hindering the
performance of any of the obligations of Siemens under this Agreement, or
determining that the performance of any such obligations violates provisions of
that collective bargaining agreement,
or in the event a trade union, or unions, representing any of the employees of the Customer otherwise prevents
Siemens from performing any such obligations, then Siemens shall be excused
from the performance of such
obligations unless the Customer makes all required arrangements with the trade union, or unions, to
permit Siemens to perform the work.
The Customer shall pay any additional costs incurred by Siemens that are
related to any labor dispute(s) that involve the Customer.

18.                  Execution

If the Customer is a corporation
or partnership, the person signing this Agreement on its behalf certifies that such person is an
officer or partner thereof, that his or her action was duly authorized by
appropriate corporate or partnership action, that such action does not conflict with the corporate
charter or bylaws or the partnership agreement,
as the case may be, or any contractual provision binding on such corporation or partnership, and that no consent of
any stockholders to his or her action
is required.

19.                  HIPAA

To
the extent required by the provisions of the Health Insurance Portability and Accountability Act (“HIPAA”) and the
regulations promulgated thereunder, Siemens
does hereby assure Customer that it will appropriately safeguard protected health information made available to or obtained
by Siemens pursuant to this Agreement or any Service Schedule (“PHI”). Without
limiting the obligations of Siemens
otherwise set forth in this Agreement or imposed by applicable law, Siemens agrees to comply with applicable
requirements of law relating to PHI and with respect to any task or other activity Siemens performs on behalf of
customer. Specifically, Siemens shall:

(a) not use or disclose PHI other than as permitted or
required by this Agreement or as required by
law;

(b)
implement administrative, physical and technical safeguards that
reasonably and appropriately protect the confidentiality, integrity and
availability of any electronic PHI that it creates, receives, maintains or
transmits on behalf of the Customer and otherwise use appropriate safeguards to
prevent use or disclosure of PHI, other than as provided for by this Agreement;

(c)
report to Customer any use or disclosure of PHI not provided for by this
Agreement, and report any security incident, of which Siemens becomes aware;

(d)
ensure that any subcontractors or agents to whom Siemens provides PHI received
from, or created or received by Siemens on behalf of, Customer agree to
essentially the same restrictions and conditions that apply to Siemens with
respect to PHI and implement reasonable and appropriate safeguards with respect
to PHI;

(e)
make PHI available to the Customer in accordance with applicable law;

(f)
permit Customer to access PHI to make or permit others to make amendments to
PHI in accordance with applicable law;

(g)
make available to Customer the information in its possession required to
provide an accounting of Siemens’ disclosures of PHI as required by applicable
law;

(h)
make Siemens’ internal practices, books, and records relating to the use and
disclosure of PHI received from Customer available to the Secretary of the
United States Health & Human Services for purposes of determining Customer’s
compliance with applicable law; and

(i)
upon expiration or termination of this Agreement, return to Customer or destroy
all PHI in its possession as a result of this Agreement and retain no copies of
PHI, if it is feasible to do so. If return or destruction is not feasible,
Siemens agrees to extend all protections contained in this Agreement to Siemens’
use and/or disclosure of any retained PHI, and to limit further uses and/or
disclosures to the purposes that make the return or destruction of the PHI
infeasible.

Siemens agrees that it will negotiate in good faith an
amendment to this Agreement if, and to the extent requited by, the provisions
of HIPAA and regulations promulgated thereunder, in order to assure that this
Agreement is consistent therewith.

20.                  Entire Agreement

This Agreement, including all exhibits and addenda
attached hereto, constitutes the entire agreement between the parties relating
to the subject matter hereof, and supersedes all prior and contemporaneous oral
or written representations or communications between the parties. This
Agreement may not be modified or amended, except in writing executed by the
appropriate designated officers of the parties hereto. Any variation in the
terms and conditions contained in this

 31
 

Agreement (including, but
not limited to, the inclusion of Customer’s own terms and conditions in any purchase
order or other document issued by Customer in response to and/or referencing
Siemens’ quotation for service or this Agreement) shall not be deemed to be a
part of this Agreement and shall not be binding upon Siemens unless set forth
in writing and executed by the appropriate designated officer of Siemens.
Subject to the limitations expressed herein, this Agreement will be binding
upon and inure to the benefit of the parties hereto, their successors, legal
representatives, and permitted assigns.

 32

Exhibit C

Distribution and
remarketing Agreement: Siemens Medical Solutions USA, Inc. Corporate Travel
& Entertainment Policy (as it may be revised by Siemens from time to time).

Attachment Follows

Remainder of page
intentionally left blank.

 33Exhibit
10.51

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

License
and Development Agreement

This License and
Development Agreement (the “Agreement”) is entered into as of April 27,
2007, (the “Effective Date”) by and between Accuray
Incorporated, a Delaware corporation, with its principal place of
business at 1310 Chesapeake Terrace, Sunnyvale, CA 94089 (“Accuray”) and
CyberHeart, Inc., a Delaware
corporation, with its principal place of business at 707 Menlo Ave, Menlo Park,
CA 94025 (“CyberHeart”). In this Agreement, Accuray and CyberHeart may
be referred to each individually as a “Party” or collectively as “Parties.”

WHEREAS, Accuray
owns or controls certain intellectual property rights and technologies related
to stereotactic radiosurgery devices for use in, among other things, cranial
tumor and thoracic applications;

WHEREAS,
CyberHeart desires to obtain, and Accuray is willing to grant, certain licenses
to such intellectual property rights and technologies to permit CyberHeart to
develop and commercialize new applications for such devices in the field of
cardiac disease, including, but not limited to, atrial fibrillation; and

WHEREAS,
CyberHeart also desires to have the right to engage Accuray, and Accuray
agrees, to perform certain development services to create such new applications
for such devices.

NOW THEREFORE, the
Parties hereto, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound
hereby, agree as follows:

1.             DEFINITIONS.

The following
terms, as used in this Agreement, shall have the meanings set forth below:

1.1            “Accuray
Competitors” means each of the Persons set forth in Exhibit A.

1.2           “Accuray Field”
means radiation treatments, including without limitation radiotherapy and
radiosurgery, but excluding the CyberHeart Field.

1.3           “Accuray
Improvements” means any Improvement of a CyberKnife System, or of any
portion of a CyberKnife System, to the extent that such Improvement (i) is
necessary or useful for the manufacture or use of CyberKnife Systems in the
Accuray Field and (ii) is first conceived or created by or on behalf of
CyberHeart or Accuray, either solely or jointly, after the Effective Date
during the Development Period.  Notwithstanding
the foregoing, Accuray Improvements shall exclude (a) the New Software, (b) any
Technology to the extent related solely to the CyberHeart Module, and (c) any
Technology conceived or created by or on behalf of CyberHeart, its Affiliates,
or any of their contractors or licensors (other than Accuray) to the extent
that such Technology is not an Improvement derived during the
Development Period from a CyberKnife System, or a portion of a CyberKnife
System, that was disclosed by 

Accuray to CyberHeart prior to the time at
which the Improvement was first conceived or created.  For clarity, CyberHeart will own, and the
Accuray Improvements shall exclude, any Improvements to the CyberHeart Module
conceived or created by or on behalf of CyberHeart, and not by Accuray, as set
forth in Section 9.1.3.

1.4           “Accuray Patents” means (i) the Patents set forth
in Exhibit B; (ii) all Patents to which the Patents in Exhibit B
claim priority; (iii) all Patents claiming priority to any of the Patents
identified in (i) or (ii), above; (iv) any and all other Patents claiming an
Accuray Improvement, or portion thereof; (v) any and all other Patents claiming
Accuray Technology, CyberKnife Systems, a CyberHeart Improvement (except to the
extent the Patent is assigned to CyberHeart by Accuray pursuant to Section
9.1.3), or portion thereof, and (vi) any and all other Patents that are
necessary or useful in the CyberHeart Field or for any making, use, sale, offer
for sale, importation, or other exploitation or disposition of any CyberHeart
Product or portion thereof; in each case in any country or jurisdiction and, in
the case of (iv), (v) and (vi), above, to the extent owned or otherwise
controlled by Accuray or its Controlled Affiliates, including without
limitation by assignment from CyberHeart under Section 9.1.2 (but other than as
a result of any license from CyberHeart), such that Accuray or its Controlled
Affiliate may grant to CyberHeart the rights and licenses hereunder, on the
Effective Date or at any other time after the Effective Date and prior to the IP
Cutoff Date.

1.5           “Accuray Technology”
means (i) the Technology set forth in Exhibit B; (ii) any
Technology (a) that is owned or controlled by Accuray or any of its Controlled
Affiliates on the Effective Date or at any time after the Effective Date and prior
to the IP Cutoff Date and (b) that is necessary or useful for, or contributes
in whole or in part to, the practice of the Accuray Patents or the development,
regulatory approval, use, promotion, marketing, or sale of CyberHeart Products;
(iii) any other Technology disclosed or provided to CyberHeart under this
Agreement or any other agreement between the Parties, including without
limitation the Deliverables; and (iv) all Intellectual Property Rights related
thereto, other than Patents. 
Notwithstanding the foregoing, the Accuray Technology shall include the
Manufacturing Technology solely to the extent that the Manufacturing Technology
is required to be disclosed under the terms of this Agreement or any other
agreement between the Parties (such as the Manufacture and Supply Agreement) or
has actually been disclosed by Accuray to CyberHeart or its designee.

1.6           “Affiliate”
means, with respect to any Party, any Person that Controls, is Controlled by,
or is under common Control with such Party, only so long as such Control
exists.  As used in this Section 1.6 and
in Section 1.8, “Control”
(and its derivatives) means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such
entity through ownership of fifty percent (50%) or more of the securities
entitled to elect the board of directors (or in the case of an entity that is
not a corporation, the corresponding managing authority); provided that, for a
Person established in a jurisdiction where a Party cannot, as a matter of law,
have such ownership interest, Control shall mean the maximum ownership interest
permitted by law.  “Controlled Affiliate”
of a Party means an Affiliate that is Controlled by such Party, directly or
indirectly.  For clarity, any Affiliate
of CyberHeart that is not in existence as a legal entity as of one (1) year
before the effective date of 

 2
 

any Change of Control transaction of
CyberHeart shall be equally considered an Affiliate and Controlled Affiliate of
CyberHeart regardless of whether it is controlled by CyberHeart, directly or
indirectly.

1.7           “Applicable Law”
means all laws, ordinances, rules and regulations applicable to the
Deliverables, the Development Services, or this Agreement, or other activities
under or pursuant to this Agreement, including without limitation (a) all
applicable federal, state, provincial, and local laws and regulations, (b)
regulations and guidelines of the U.S. Food and Drug Administration (“FDA”)
and other Regulatory Authorities and the International Conference on
Harmonization (“ICH”) guidelines
and (c) current Good Manufacturing Practices and other regulations promulgated
by the FDA, ICH and other Regulatory Authorities.

1.8            “Change of Control”
means (i) the sale of all or substantially all of the assets of a Party or (ii)
the acquisition of a Party by another entity in which such other entity obtains
Control of such Party by means of merger or consolidation resulting in the
exchange of the outstanding shares of such Party for securities or other
consideration issued, or caused to be issued, by the acquiring entity or its
subsidiaries (in each case provided that the consideration to be received by
such Party’s stockholders, or other equity holders, consists solely of cash
and/or publicly traded securities), unless the stockholders (or other equity
holders) of such Party, as constituted immediately prior to such transaction,
hold immediately after such transaction a majority of the voting power of the
surviving or resulting entity in such a transaction (or majority voting power
in an entity that Controls (as defined in Section 1.6) the surviving or
resulting entity).  For clarity, no
public offering of stock or other securities shall be considered a Change of
Control.

1.9           “Confidential
Information” has the meaning assigned to such term in Section 14.1.

1.10         “CyberHeart Field”
means any and all non-tumor applications involving or relating to the heart,
the coronary arteries (including without limitation the epicardial coronary
arteries), the cardiac veins, the structure or function of any of the
foregoing, or related conditions, including without limitation all diseases and
conditions of the conduction system, the coronary, arterial and/or venous
systems, heart valves or chambers, wall anomalies affection, ejection fraction
and/or conduction.

1.11         “CyberHeart
Improvement” means (i) any Improvement of any CyberKnife System or
CyberHeart Product, or of any portion of a CyberKnife System or CyberHeart
Product, that (a) is necessary or useful for the manufacture or use of any
CyberHeart Product solely in the CyberHeart Field and (b) is first conceived or
created by or on behalf of CyberHeart or Accuray, either solely or jointly,
after the Effective Date during the Development Period; and (ii) the New Software.
Notwithstanding the foregoing, CyberHeart Improvements shall exclude (1) any
Improvements to the CyberKnife System (other than the New Software) that are
useful in the Accuray Field and (2) any Technology (other than the New
Software), conceived or created by or on behalf of Accuray, its Affiliates, or
any of their contractors or licensors, to the extent that such Technology is not
an Improvement derived during the Development Period from a CyberHeart Product,
or a portion of a CyberHeart Product that was 

 3
 

disclosed by CyberHeart to Accuray  prior to the time at which the Improvement
was first conceived or created.

1.12         “CyberHeart Liaison”
has the meaning assigned to such term under Section 4.2.3.

1.13         “CyberHeart Module”
means any and all hardware, software, other modifications, and Technology that
are added to or used with, or that alter, any CyberKnife System—whether or not
such hardware, software, other modification, or Technology is an Improvement of
a CyberKnife System, or portion thereof, and whether or not it is developed
through the exercise of rights granted to CyberHeart in this Agreement—so that
such modified CyberKnife System, in combination with such hardware, software,
other modifications, and Technology, is capable of performing applications
solely within the CyberHeart Field.  For
clarity, the CyberHeart Module includes all portions of any CyberHeart System
that are within the scope of the foregoing.

1.14         “CyberHeart Patents”
means (i) the Patents set forth in Exhibit C; (ii) all Patents to
which the Patents in (i), above claim priority; (iii) all Patents claiming
priority to any of the Patents identified in (i) or (ii), above; (iv) any and
all other Patents claiming CyberHeart Technology, CyberHeart Products, or an
Accuray Improvement (except to the extent the Patent is assigned to Accuray
pursuant to Section 9.1.2), or any portion thereof; (v) any and all other
Patent claims claiming CyberHeart Products (or any portion thereof) that are
useful in the Accuray Field; and (vi) any and all other Patents that are useful
in the Accuray Field or for any making, use, sale, offer for sale, importation,
or other exploitation or disposition of any CyberKnife System; in each case in
any country or jurisdiction and, in the case of (iv), (v) and (vi), above, to
the extent owned or otherwise controlled by CyberHeart or its Controlled
Affiliates, including without limitation by assignment from Accuray under
Section 9.1.3 (but other than as a result of any license from Accuray), such
that CyberHeart or its Controlled Affiliate may grant to Accuray the licenses
hereunder, on the Effective Date or at any other time prior to the IP Cutoff
Date.  Notwithstanding the foregoing, the
CyberHeart Patents shall exclude the Accuray Patents.

1.15         “CyberHeart Product”
means each of the CyberHeart Module and the CyberHeart System.

1.16         “CyberHeart Software”
has the meaning assigned to such term under Section 2.2.4.1.

1.17         “CyberHeart System”
means a stereotactic radiosurgery system that is designed or developed by or on
behalf of CyberHeart or its Affiliates (but which may include components
purchased or licensed from third party suppliers that are not designed by or on
behalf of CyberHeart) solely for use in applications solely in the CyberHeart
Field, including, without limitation, a stereotactic radiosurgery system that
is based upon or incorporates a CyberKnife System or Accuray Technology, or is
based upon or incorporates any portion or component thereof, or method or
process related thereto, solely for use in applications solely in the
CyberHeart Field.

 4
 

1.18         “CyberHeart Technology”
means (i) all Technology, including without limitation CyberHeart Improvements,
CyberHeart Software, and New Software, disclosed or provided to Accuray by
CyberHeart under this Agreement or any other agreement between the Parties and
(ii) all Intellectual Property Rights related thereto, other than Patents;
provided that CyberHeart Technology does not include any Accuray Technology or
any Technology or Intellectual Property Rights conceived or created by or on
behalf of Accuray.

1.19         “CyberKnife Component”
means a hardware component of a CyberHeart Product that (a) was designed by or
on behalf of Accuray (other than pursuant to the Development Services) and is
used in the CyberHeart Product in substantially the same form in which it is
used in a CyberKnife System at the time that CyberHeart first seeks any quote,
proposal, or terms for supply of such component or CyberHeart Product (an “Initial
Solicitation”), (b) is not made generally commercially available by any
other party in the form used by Accuray, and (c) is manufactured by or on
behalf of Accuray for incorporation into CyberKnife Systems at the time that
CyberHeart makes an Initial Solicitation with respect to such component. Any components
that are acquired by Accuray or its Affiliate (such as, without limitation,
from a contract manufacturer) for the CyberKnife System pursuant to (a) through
(c) above shall be deemed a CyberKnife Component in accordance with the
foregoing solely if used in the CyberHeart Product in substantially the same
form as acquired by Accuray or the Affiliate. 
For clarity, small parts and components that are valued at under one
thousand dollars ($1,000), are generally commercially available, and used in
CyberKnife Systems without modification are not CyberKnife Components and can
be purchased directly by CyberHeart from their manufacturers.

1.20         “CyberKnife Software”
has the meaning assigned to such term under Section 2.2.6.3.

1.21         “CyberKnife System”
means any stereotactic radiosurgery system designed or developed by or on
behalf of Accuray or any Accuray Affiliate (but which may include components
purchased or licensed from third party suppliers that are not designed by or on
behalf of Accuray) for any application solely in the Accuray Field.

1.22         “Deliverables”
means any Technology first conceived or created by Accuray or its Affiliate, or
jointly with CyberHeart, pursuant to the Development Services for the
development, making, use, importation, marketing, sale, or other exploitation
or commercialization of CyberHeart Products, or for the exploitation of the
Accuray Technology or the Accuray Patents in the CyberHeart Field, or other
Technology that is incorporated by Accuray in the deliverables under, or otherwise
explicitly specified in the applicable Statement of Work.

1.23         “Development Period”
means the period commencing as of the Effective Date and ending on the later of
the fifth (5th)
anniversary of the Effective Date or as otherwise described in each Statement
of Work under Section 3.3 during which Development Services will be performed
by Accuray or its subcontractors.

 5
 

1.24         “Development Services”
means the design and development services to be performed by Accuray and its
Subcontractors for CyberHeart pursuant to a Statement of Work under Section
3.3.

1.25         “Fees” means the
amounts to be paid by CyberHeart to Accuray under Article 8, Section 6.4,
and/or related Exhibits.

1.26         “FTE” means the
full time equivalent effort of one person who participates directly in the
Development Services.  For purposes of
this Section 1.26, “full time equivalent effort” shall mean one thousand nine
hundred (1,900) hours per year.

1.27         “JSC” has the
meaning assigned to such term under Section 4.1.

1.28         “Improvement”
means with respect to Technology: (a) for copyrightable or copyrighted
Technology (including without limitation any mask works), a work which is based
upon one or more pre-existing works, such as a revision, modification,
translations, abridgment, condensation, expansion, collection, compilation, or
any other form in which such pre-existing works may be recast, transformed, or
adapted; (b) for patentable or patented Technology, any adaptation,
addition, improvement, or combination based on a pre-existing work or Patent;
and (c) for Technology subject to trade secret protection, any new
material, information, or data relating to and derived from such existing trade
secret material, including without limitation new material which may be
protectable by copyright, patent, or other proprietary rights. For the purposes
of clarification, an item of Technology shall be considered to be an
Improvement of another item of Technology only if it is actually derived from
such other item, and not merely because it may have the same or similar
functionality or use as such other item.

1.29         “Intellectual Property
Rights” means the U.S. and foreign rights associated with the
following:  (i) Patents; (ii) copyrights,
copyright registrations, and applications therefor (“Copyrights”); (iii)
trade-secret rights and all other trade secret or similar proprietary rights in
confidential business or technical information (“Trade Secret Rights”);
and (iv) any similar, corresponding or equivalent rights to any of the
foregoing anywhere in the world.  For
purposes of this Agreement, Intellectual Property Rights excludes any U.S. and
foreign rights associated with logos, trademarks, trade names, and similar
insignia of origin or quality.

1.30         “IP Cutoff Date”
means the earlier of the tenth (10th)
anniversary of the Effective Date or termination of this Agreement pursuant to
Section 11.2, 11.3, or 11.4. 
Notwithstanding the foregoing, if Accuray or its Affiliate is supplying
product or components, or providing installation or support services, on or after
the tenth (10th)
anniversary of the Effective Date, the IP Cutoff Date for purposes of Sections
1.4 and 1.5 shall be two (2) years after the time at which such supply and/or
services are last provided by Accuray and its Affiliates or until termination of
this Agreement pursuant to Section 11.2, 11.3, or 11.4, whichever occurs first.

1.31          “Manufacturing and
Supply Agreement” has the meaning assigned to such term under Section
6.1.1.

 6
 

1.32         “Manufacturing
Technology” means the Technology owned or controlled by Accuray that is
used in or is useful for any manufacturing of a CyberKnife System, CyberKnife
Component, or CyberHeart Product, or of any components or portions of a
CyberHeart Product.  For clarity,
Manufacturing Technology does not include (i) drawings or designs of CyberHeart
Products, (ii) software flow-charts or pseudocode that is not considered source
code or written in any programming language, or (iii) source code for any
interface delivered under a Statement of Work or under Section 2.1.

1.33         “New Software”
means all right, title and interest in and to all software, firmware, and other
code that is created or developed in connection with the research, development,
or modification of or for any CyberHeart Product, or any portion thereof,
including without limitation under this Agreement and including without
limitation all Intellectual Property Rights to the extent embodied in or
concerning such software, firmware, and other code.  For the avoidance of doubt, New Software
shall not include any software developed by Accuray, outside of a Statement of
Work, for its CyberKnife System.

1.34         “Patents” means
any and all (i) pending and issued U.S., foreign, international, and
regional patents, patent applications, certificates of invention, patents of addition
or substitution, utility model, design registration, and other governmental
grants for the protection of inventions, or industrial designs anywhere in the
world; (ii) provisional, continuations, continuations-in-part,
substitutions  divisional, continued
prosecution, and other applications thereof; (iii) patents issuing on any
of the foregoing; (iv) renewal, reissues, re-examinations, and extensions
of any such patents or patent applications; and (v) foreign counterparts
or equivalents of any of the foregoing in any country or jurisdiction.

1.35         “Per-Click Revenue”
means the per-use revenue actually received, earned or deferred, by CyberHeart
from an end-user of a CyberHeart Product in consideration for each use of the
CyberHeart Product by such end-user; less: sales taxes, duties and other
governmental charges (including value added tax), but excluding what is
commonly known as income taxes; provided that such amounts are charged
separately on the invoice and paid by such end-user or representative or agent
(including, without limitation, financing entities) of such end-user.

1.36         “Person” shall be
broadly interpreted to include an individual, a partnership, a corporation, a
limited liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization, or a governmental entity or any
department, agency, or political subdivision thereof.

1.37         “Project Manager”
has the meaning assigned to such term under Section 4.2.1.

1.38         “Reasonable Commercial
Efforts”  means (i) with respect to the efforts to be expended by any
Person—with respect to any objective—reasonable, diligent, good faith efforts
to accomplish such objective as such Person would use or has used in the
ordinary course of business to accomplish a similar objective under similar
circumstances for its own business and (ii) with respect to the efforts to be
expended by any Person with respect to research, development, manufacture,
supply, installation, service, support, and commercialization of a 

 7
 

product, efforts and resources normally used or which
have been used by such Person with respect to a medical device product owned by
such Person which is of similar market potential at a similar stage in the
development or life of such product, taking into account issues of safety,
efficacy, product profile, the competitiveness of the marketplace, the
proprietary position of the product, the regulatory structure involved,
profitability of the product and other relevant commercial factors. For
clarity, the reasonableness of Accuray’s efforts in performing development,
manufacture, and supply for CyberHeart shall be assessed under (i) and (ii)
above as if Accuray was performing development for itself and its own product;
and the CyberHeart Products shall be deemed to be of similar market potential
and profitability as CyberKnife Systems for purposes of the foregoing.

1.39         “Regulatory Agency”
means any national (e.g., the FDA), supra-national (e.g., the European
Commission, the Council of the European Union (“EMEA”)), or other
governmental entity with authority over the development, manufacture, use,
marketing, sale, or pricing of any CyberHeart Product or CyberKnife System in
any jurisdiction.

1.40         “Regulatory Approval”
means the national or multinational approval necessary to market, use, or sell
a new medical device product to the public at large in a particular country or
multi-national group of countries including without limitation throughout the
European Union.

1.41         “Regulatory Filing”
means any application or notification required to be filed with a Regulatory
Agency in order to gain Regulatory Approval in a country, including without
limitation a premarket approval application or premarket notification filed
under section 515 or section 510(k) of the U.S. Federal Food, Drug and Cosmetic
Act, 21, U.S.C. §§ 360e, 360(k), respectively, as amended or its supranational
equivalent.

1.42         “Specifications”
means the characteristics, features, standards, and other requirements for each
of the Deliverables provided hereunder as (i) set forth in each Statement
of Work, (ii) required by Applicable Law, or (iii) otherwise agreed upon
by the Parties in writing. For the avoidance of doubt, either Party may propose
specifications to the other Party, but both Parties must agree to such
specifications.

1.43         “Statement of Work”
has the meaning assigned to such term under Section 3.1.

1.44         “Technology” means
any and all technology, technical information, Confidential Information,
software, works of authorship, know-how, inventions, processes, procedures,
compositions, methods, formulae, protocols, techniques, designs, drawings,
data, and other technical subject matter, documents, and materials.

1.45         “Term” has the
meaning assigned to such term under Section 11.1.

 8
 

2.             ACCURAY
TECHNOLOGY DELIVERY AND GRANT OF RIGHTS AND LICENSE BACK.

2.1           Delivery.  Promptly following the Effective Date,
Accuray shall deliver to CyberHeart, or otherwise provide sufficient access to
meet its obligations or exercise its rights under this Agreement, the Accuray
Technology set forth in Exhibit B in a format and location mutually
agreed to by the Parties, such agreement not to be unreasonably withheld by
either Party.  In addition to the
foregoing, during the period beginning on the Effective Date and ending on the
IP Cutoff Date, Accuray shall, as soon as practical after CyberHeart’s request,
deliver or make available to CyberHeart any other Accuray Technology and
Manufacturing Technology that is reasonably necessary or useful for development
being conducted or work being performed by or on behalf of CyberHeart in the
CyberHeart Field (but excluding Manufacturing Technology related to CyberKnife
Components and other Manufacturing Technology). 
The Parties agree that the Manufacturing Technology that is necessary or
useful for the manufacture of CyberKnife Components and the Manufacturing
Technology not reasonably necessary or useful for development being conducted
or work being performed by or on behalf of CyberHeart shall be delivered, if at
all, to CyberHeart solely pursuant to a Manufacturing and Supply Agreement
between the Parties. For the avoidance of doubt, no Accuray Technology or
Deliverable delivered by Accuray under this Agreement will include any source
code of Accuray other than interface source code indicated below in Section
2.1.1.

2.1.1                Interface.   To
the extent applicable pursuant to the Development Services or a Manufacturing
and Supply Agreement, the Parties will use Reasonable Commercial Efforts to
define and develop an interface between the CyberKnife System and the
CyberHeart Module. Such interface will include applicable hardware and software
to enable hardware and software communication and compatibility and integration
between the CyberKnife System and CyberHeart Module, including as appropriate,
Ethernet or other communication protocols. Accuray shall provide any interface
source code or object code for the CyberKnife System to CyberHeart that is
necessary to enable such integration.

2.2           Grant of Rights.

2.2.1                                                Subject
to the terms and conditions of this Agreement, Accuray hereby grants to
CyberHeart, under the Accuray Patents and Accuray Technology, an exclusive
(including as to Accuray, except as otherwise set forth in this Agreement),
worldwide, fully paid (except as expressly set forth in this Agreement),
royalty-free (except as expressly set forth in this Agreement) right and
license, without the right to authorize or grant sublicenses (except as set
forth in Section 2.2.4), (i) to research, develop, have developed, use, sell,
offer to sell, market, import, and otherwise exploit and commercialize (but not
the right to manufacture or have manufactured except as set forth in Section
2.2.1(ii), below, and in the Manufacturing and Supply Agreement) CyberHeart
Products solely in the CyberHeart Field; (ii) to make and have made all
portions of a CyberHeart Product that are not a CyberKnife Component solely for
use in the CyberHeart Field; and (iii) to disclose Accuray Technology (subject
to obligations of confidentiality and non-use no less restrictive than those
set forth in Article 14) in all cases solely to parties that are not Accuray
Competitors, solely in connection with the grant of a sublicense under the
foregoing rights pursuant to Section 2.2.4, or engaging contractors pursuant to
Section 

 9
 

2.2.4.3, in connection with the exercise of
the rights granted under this Section 2.2.1 and Section 2.2.2, or to
consultants, advisors, investors, potential acquirers (excluding Accuray
Competitors), public accountants, and regulatory authorities.  For
clarity, the license granted to CyberHeart in this Section 2.2.1 and Section
2.2.2 shall not be construed to prohibit or restrict Accuray or its Affiliates
in any manner from exploiting the Accuray Patents or Accuray Technology for any
purposes in the Accuray Field.

2.2.2                Without limiting
the rights and licenses granted to CyberHeart in Section 2.2.1, subject to the
terms and conditions of this Agreement, Accuray hereby grants to CyberHeart,
under the Accuray Technology, an exclusive right and license, without the right
to authorize or grant sublicenses (except as set forth in Section 2.2.4), (i)
to distribute, directly and indirectly, CyberHeart Products, and portions
thereof, solely in the CyberHeart Field, (ii) to use, reproduce, produce
derivative works  of, transmit, display,
perform, and distribute the Accuray Technology (and derivative works thereof,
including the New Software and CyberHeart Software) as necessary or useful to
research, develop, use, sell, offer to sell, market, import, and otherwise exploit
and commercialize (but not the right to manufacture or have manufactured except
as set forth in Section 2.2.1(ii) and in the Manufacturing and Supply
Agreement) CyberHeart Products solely in the CyberHeart Field (subject to
obligations of confidentiality and non-use no less restrictive than those set
forth in Article 14), and (iii) to distribute, reproduce, transmit, publicly
display, and publicly perform, sales, marketing, and user documentation and
materials, in each case solely for purposes in the CyberHeart Field.

2.2.3                Subject to the
terms and conditions of this Agreement, Accuray hereby grants to CyberHeart an
exclusive right and license under Accuray’s trademarks, without the right to
authorize or grant sublicenses (except as set forth in Section 2.2.4), to
distributors and marketing and advertising partners, to use the trademark “CyberHeart”
to market, sell, and promote CyberHeart Products in the CyberHeart Field.  For the avoidance of doubt, Accuray and its
Affiliates shall not oppose any government registration application by
CyberHeart for the trademark “CyberHeart” outside the Accuray Field.

2.2.4                Sublicensing.

2.2.4.1         The licenses granted to
CyberHeart in Section 2.2.1 and Section 2.2.2 include the right for CyberHeart
to grant and authorize sublicenses  only
to final end-users who are not Accuray Competitors, without Accuray’s consent,
to use only (but no other right other than use) the object code version of any
software, firmware, and other code that is included in any CyberHeart Product (the
“CyberHeart Software”) for use of the CyberHeart Software with the
CyberHeart Product on commercially reasonable terms.  Such sublicense by CyberHeart shall contain
prohibitions against reverse engineering of the CyberHeart Software and hardware
that comprises a CyberHeart Product, subject to Applicable Law and obligations
of confidentiality no less restrictive than those set forth in Article 14 and
subject to terms that prohibit (and exclude rights for) use of the CyberHeart
Product in the Accuray Field.

2.2.4.2         Except as set forth in
Section 2.2.4.1, CyberHeart shall have the right to grant non-sublicenseable
sublicenses (including, without limitation, subliceness of object code to non
end-users) under Section 2.2.1 and Section 2.2.2 only upon prior written 

 10
 

consent of Accuray, which consent shall not
be unreasonably withheld, delayed, or conditioned; provided that in no event
shall CyberHeart grant or authorize any sublicenses to any Accuray Competitor
or to any party Accuray reasonably determines may become a competitor of
Accuray in the future. Accuray agrees that it shall not withhold, delay, or
condition any consent upon additional fees or payments (e.g., additional
license fees or royalties) being provided. 
CyberHeart shall provide Accuray a copy of each sublicense under this
Section 2.2.4.2 not less than thirty (30) days prior to execution of such
sublicense, each such sublicense shall require the sublicensee to agree in
writing to be bound by terms and conditions materially as protective of Accuray
as of the provisions of this Agreement, and all sublicenses under this Section
2.2.4.2 shall terminate upon termination or expiration of this Agreement except
to the extent otherwise agreed by the Parties in writing. Notwithstanding this
Section 2.2.4.2, above, but without limiting CyberHeart’s manufacture and have
manufactured rights pursuant to Section 2.2, Section 6.1, or the Manufacturing
and Supply Agreement, CyberHeart may grant sublicenses of the object code form
of Accuray’s software without permission from, or review of the sublicense by,
Accuray solely to contractors and may use contractors to develop hardware and
software (without providing access to any source code form of any Accuray
software), in each case provided that such use of contractors otherwise
complies with Section 2.2.4.3.  If a
third party to which a sublicense has been properly granted under this Section
2.2.4.2 becomes an Accuray Competitor after the granting of such sublicense,
such sublicense shall terminate immediately at the time such third party
becomes an Accuray Competitor.

2.2.4.3         Without granting to
CyberHeart the right to manufacture or have manufactured CyberKnife Components,
and subject to Section 2.2.4.2, CyberHeart has the right to use contractors to
exercise its rights under this Agreement (including without limitation under
Section 2.2.1 and 2.2.2), provided that the contractor is not an Accuray
Competitor or potential Accuray Competitor, as reasonably determined by
Accuray, and is bound by terms and conditions as protective of Accuray, Accuray’s
Intellectual Property Rights, and Accuray’s Confidential Information, as the
terms and conditions of this Agreement. 
Notwithstanding the foregoing, CyberHeart shall not be required to
obtain ownership of Accuray Improvements for Accuray from any contractors so
long as (i) CyberHeart attempts in good faith to obtain such ownership; and
(ii) if CyberHeart does not obtain ownership, then Accuray Improvements
conceived or created by the contractor are licensed by such contractors to
CyberHeart and deemed CyberHeart Technology licensed to Accuray under Section
2.2.6.

2.2.5                Development
Services License.  Subject to the
terms and conditions of this Agreement, CyberHeart hereby grants to Accuray a
worldwide, non-exclusive, non-sublicenseable (without limiting Accuray’s rights
to use subcontractors as set forth in Section 3.9), limited, internal right and
license under CyberHeart’s Intellectual Property Rights to (i) perform the
Development Services on behalf of CyberHeart during the Development Period as
contemplated in this Agreement and in a mutually agreed Statement of Work that
is then in effect; and (ii) to create the Deliverables in the performance of
the Development Services during the Development Period as contemplated in this
Agreement and such Statement of Work and to deliver such Deliverables to
CyberHeart.  In no event shall Accuray
use any of CyberHeart’s Confidential Information or other Intellectual Property
Rights in connection with any engagement, services, or otherwise, of or for any
third party or after the termination or 

 11
 

expiration of the Development Period, except
as expressly provided in Section 2.2.6 of this Agreement, or in the performance
of Development Services for CyberHeart after the end of the Development Period
as set forth in the relevant Statement of Work in connection with which such
CyberHeart Confidential Information was furnished or disclosed.

2.2.6                License Back.

2.2.6.1         Subject to the terms and
conditions of this Agreement, CyberHeart hereby grants to Accuray, under the
CyberHeart Patents and CyberHeart Technology, an exclusive (even as to
CyberHeart), worldwide right and license, without the right to grant or
authorize sublicenses (except as set forth in Section 2.2.6.3 and Section
2.2.6.4), (i) to use, make, have made, sell, offer for sale, import, and
otherwise exploit and commercialize CyberKnife Systems in the Accuray Field and
(ii) to disclose (subject to obligations of confidentiality and non-use no less
restrictive than those set forth in Article 14) the CyberHeart Technology
solely in connection with the grant of a sublicense under the foregoing rights
pursuant to Section 2.2.6.3 and 2.2.6.4, or engaging contractors, in connection
with the exercise of the rights granted under this Section 2.2.6.1 and Section
2.2.6.2.  For clarity, the license
granted to Accuray in this Section 2.2.6.1 and Section 2.2.6.2 shall not be
construed to prohibit or restrict CyberHeart or its Affiliates in any manner
from exploiting the CyberHeart Patents or CyberHeart Technology for any
purposes outside the Accuray Field.

2.2.6.2         Without limiting the
rights and licenses granted to Accuray in Section 2.2.6.1, subject to the terms
and conditions of this Agreement, CyberHeart hereby grants to Accuray, under
the CyberHeart Technology, an exclusive right and license, without the right to
authorize or grant sublicenses (except as set forth in Section 2.2.6.3 and
Section 2.2.6.4), (i) to distribute, directly and indirectly, CyberKnife
Systems, and portions thereof, in the Accuray Field, (ii) to use, reproduce,
produce derivative works of, transmit, display, perform, and distribute the
CyberHeart Technology (and derivative works thereof, including without
limitation the Accuray Software) as necessary or useful to research, develop,
use, sell, offer to sell, market, import, and otherwise exploit and
commercialize CyberKnife Systems solely in the Accuray Field (subject to
obligations of confidentiality and non-use no less restrictive than those set
forth in Article 14), and (iii) to distribute, reproduce, transmit, publicly
display, and publicly perform, sales, marketing, and user documentation and
materials for purposes in the Accuray Field.

2.2.6.3         The licenses granted to
Accuray in Sections 2.2.6.1 and 2.2.6.2 include the right for Accuray to grant
and authorize sublicenses only to final end-users, without CyberHeart’s
consent, of the object code version of any software, firmware, and other code
that is included in any CyberKnife System (the “CyberKnife Software”)
for use of the CyberKnife Software with the CyberKnife System, on commercially
reasonable terms.  Such license shall
include prohibitions against reverse engineering of the CyberKnife Software,
subject to Applicable Law.

2.2.6.4         Accuray shall have the
right to grant and authorize sublicenses (including without limitation
subliceness of object code to non end-users) of the rights granted to Accuray
in this Section 2.2.6 only upon the prior written consent of CyberHeart, 

 12
 

which consent shall not be unreasonably
withheld, delayed, or conditioned. 
CyberHeart agrees that it shall not withhold, delay, or condition any
consent upon additional fees or payments (e.g., additional license fees or
royalties) being provided. Each such sublicense shall require the sublicensee
to agree in writing to be bound by terms and conditions materially as
protective of CyberHeart as of the provisions of this Agreement, and no
sublicense under this Section 2.2.6.4 shall terminate upon termination or
expiration of this Agreement except to the extent otherwise agreed by the
Parties in writing, such agreement not to be unreasonably withheld, delayed, or
conditioned.

2.2.7        Retained Rights; No
Other Rights.

2.2.7.1  Accuray
expressly reserves and retains all right, title, and interest in, to, and under
Accuray’s Intellectual Property Rights outside the CyberHeart Field and all
rights of Accuray not expressly granted to CyberHeart by Accuray under this
Agreement.  Similarly, CyberHeart
expressly reserves and retains all right, title, and interest in, to, and under
CyberHeart’s Intellectual Property Rights outside the Accuray Field and all
rights of CyberHeart not expressly granted to Accuray by CyberHeart under this
Agreement.  No other rights, licenses, or
interest are granted by a Party to the other Party by implication, estoppel, or
otherwise, under such Party’s Intellectual Property Rights other than as
expressly granted by this Agreement. 
CyberHeart agrees and acknowledges that it shall not exercise or
practice any of Accuray’s Intellectual Property Rights to develop or
commercialize any product in the Accuray Field. 
For clarity, the licenses granted to CyberHeart under this Agreement
shall not be construed to prohibit or restrict Accuray or its Affiliates in any
manner from exploiting the Accuray Patents or Accuray Technology for any
purposes outside the CyberHeart Field.

2.2.7.2  Additionally,
Accuray retains:  (i) a non-exclusive
right in the CyberHeart Field only (a) to perform the Development Services in
accordance with Statement(s) of Work under this Agreement for the benefit of
CyberHeart during the Development Period and (b) to manufacture and sell to
CyberHeart components of CyberHeart Products that are not a CyberKnife
Component, but only to the extent mutually agreed by the Parties in the Manufacturing
and Supply Agreement entered into pursuant to Section 6.1 or otherwise agreed
in a subsequent writing; and (ii) an exclusive right to manufacture and have
manufactured (a) any CyberKnife Components that are sold by Accuray to
CyberHeart under a Manufacturing and Supply Agreement, subject to CyberHeart’s
backup rights to manufacture and have manufactured such CyberKnife Components
which shall be granted to CyberHeart in the Manufacturing and Supply Agreement
and (b) any components of CyberKnife Systems or Accuray Improvements in the
Accuray Field, even if such components are also components of a CyberHeart
Product.

2.2.8        Exclusivity.

2.2.8.1         If CyberHeart or its
designee develops a CyberHeart Product that does not contain Accuray Technology
and that is not covered by (for at least one of 

 13
 

manufacture, use, or otherwise)
Accuray Patents, but CyberHeart or its designee has commenced development of a
CyberHeart Product that does contain Accuray Technology and/or is covered by
Accuray Patents prior to such development, Accuray shall have the right to
convert any exclusive license granted by Accuray to CyberHeart, or retained by
CyberHeart in the CyberHeart Field, pursuant to this Agreement immediately to a
co-exclusive (with Accuray) license. 
Notwithstanding anything to the contrary, the terms of this Section
2.2.8.1 above shall not apply or be triggered based upon any CyberHeart Module
that does not use Accuray Technology and is not covered by Accuray Patents,
provided that such CyberHeart Module is used with CyberKnife Systems.
Additionally, any conversion to a co-exclusive license pursuant to this Section
2.2.8.1 shall be subject to cure, and the dispute resolution mechanism,
described in Section 11.2 in the same manner as a breach of this Agreement before
such conversion takes effect.

2.2.8.2         If CyberHeart or its
designee develops and/or markets a CyberHeart Product that does not contain
Accuray Technology and is not covered by Accuray Patents, and does not develop
or does not market a product that does contain Accuray Technology or is covered
by Accuray Patents (for at least one of 
manufacture, use, or otherwise), Accuray may terminate this Agreement
pursuant to Section 11.3.2. 
Notwithstanding anything to the contrary, the terms of this Section 2.2.8.2
above shall not apply or be triggered based upon any CyberHeart Module that
does not use Accuray Technology and is not covered by Accuray Patents, provided
that such CyberHeart Module is used with CyberKnife Systems or CyberHeart
Systems that derive from  CyberKnife
Systems and use Accuray Technology or are covered by Accuray Patents.

2.2.8.3         Notwithstanding anything
to the contrary, CyberHeart shall have no right to enter into any agreement
with Accuray Competitor (i) for any purpose in connection with the activities
conducted under this Agreement during the Term or under any surviving
provisions after the Term, (ii) for the research, development and/or
commercialization of any CyberHeart Product at any time during the Term, and/or
(iii) for the research, development and/or commercialization of any CyberHeart
Product that was developed, or that derives from a CyberHeart Product that was
developed, using Accuray Technology, for a period of two (2) years following
the Term if this Agreement is terminated pursuant to (a) Section 11.2 for cause
for any reason, (b) Section 11.3, or (c) Section 11.4.

2.2.8.4         Notwithstanding anything
to the contrary, and provided Section 2.2.8.3(iii) applies following the Term,
Accuray shall not sell, or enter into any agreement with a third party to sell,
any stereotactic radiosurgery product in the CyberHeart Field for a period of
one (1) year following the Term if this Agreement is terminated pursuant to (i)
Section 11.2 for cause and Accuray’s licenses to CyberHeart do not survive such
termination pursuant to Section 11.5.1.3 or (ii) Section 11.3.

3.             DEVELOPMENT.

3.1       Development Engagement.  It is the intent of the Parties that
CyberHeart shall have sole discretion with respect to the development of
CyberHeart Products.  Accordingly, 

 14
 

CyberHeart has the right to
engage third party contractors to perform any and all development work in
CyberHeart’s sole discretion; provided that CyberHeart has no right to engage
Accuray Competitors for such purpose. 
The Parties acknowledge that (i) it is in the interest of both Parties
that the trade secrets of both Parties be protected from disclosure to third
parties and (ii) that, in light of Accuray’s development of the CyberKnife
System, Accuray is particularly qualified to develop some parts of the
CyberHeart Module and CyberHeart System. 
Consequently, Accuray agrees that it will provide Development Services
to CyberHeart to the extent set forth in Section 3.2 and agreed by Accuray.  Subject to the terms and conditions of this
Agreement, CyberHeart has the right, but not the obligation, to request Accuray
to perform Development Services and, if Accuray agrees to such request, then
Accuray shall: (a) perform the Development Services during the Development
Period; and (b) provide Deliverables in accordance with Specifications,
schedules, and milestones, in each case as set forth in a statement of work
prepared by mutual agreement of the Parties (the “Statement of Work”).  For clarity, the term Statement of Work does
not mean statements of work between CyberHeart and third parties.  A form of Statement of Work is set forth in Exhibit
D.  Except for the restriction with
respect to Accuray Competitors, nothing in this Agreement shall prevent
CyberHeart from using any third party contractors to perform any development in
its sole discretion.  Additionally,
CyberHeart shall have no obligation to engage or use Accuray to perform any
Development Services and Accuray shall have no obligation to agree to any request
of CyberHeart to perform any Development Services, except as set forth in
Section 2.1.1 and subject to Section 3.2.2.

3.2           Contemplated
Development Services.

3.2.1           Initial Development.  The Parties agree that the initial
Development Services shall commence upon written agreement by Accuray and
CyberHeart to a Statement of Work that defines the Development Services to be
performed by Accuray using Reasonable Commercial Efforts.  Each Statement of Work shall, to the extent
requested by CyberHeart, provide for Deliverables (including without limitation
by way of CyberHeart Improvements) as described therein.

3.2.2           Subsequent
Development.  In addition to the
initial Development Services contemplated in Section 3.2.1, Accuray agrees that
it shall, to the extent reasonably requested by CyberHeart and agreed to by
Accuray, provide subsequent Development Services during the Development Period
under mutually agreed Statements of Work that shall enable CyberHeart to
complete development of the CyberHeart Modules and CyberHeart Systems for
applications in the CyberHeart Field. Accuray shall use Reasonable Commercial
Efforts to accommodate CyberHeart’s requests during the Development Period for
Development Services, including without limitation using Reasonable Commercial
Efforts to accommodate any specifications and requirements requested by
CyberHeart.

3.3           Statement of Work.  Each Statement of Work shall (i) be
attached and deemed incorporated into this Agreement, (ii) have a unique
title, and (iii) be consecutively numbered (Statement of Work D-1, D-2,
D-3, etc.).  This Agreement may cover
more than one Statement of Work at any one time, provided that each Statement
of Work that has been signed by both Parties shall be deemed a separate
engagement of Development Services from Accuray.  Each Statement of Work shall also specify the
price, including without limitation number and 

 15
 

type of FTEs, the term of Development
Services to be performed thereunder, and schedule of or milestones required to
be completed for payments.  Any payments
that are specified in connection with a milestone shall become due and payable
only if the milestone has been successfully completed by Accuray, unless
clearly stated to the contrary in the applicable Statement of Work.  In the event of any conflict between this
Agreement and a Statement of Work, the terms and conditions of this Agreement
shall control in all respects.

3.4           Performance of
Development Services.  Upon agreement
to a Statement of Work, CyberHeart shall issue a purchase order  to Accuray for the Development Services in
accordance with the Statement of Work, which, subject to the terms and
conditions of this Agreement, shall be deemed authorizations to commence the
Development Services referenced in such Statement of Work.  Commencing upon issuance of such purchase
order after Accuray has signed the Statement of Work, Accuray shall use
Reasonable Commercial Efforts to perform and complete the Development Services,
and deliver all Deliverables to CyberHeart, in a professional and workmanlike
manner in accordance with each Statement of Work and Applicable Law, including
without limitation using Reasonable Commercial Efforts to meet all timelines
and Specifications.  Without limiting the
foregoing, Accuray shall dedicate and utilize adequate manpower, and in
particular a dedicated project team, in order to perform the Development
Services in accordance with the Statements of Work in a timely manner, and all
individuals performing the Development Services shall be reasonably qualified
to perform the work assigned to them. 
Accuray shall use Reasonable Commercial Efforts not to reallocate any
individuals in a manner that is disruptive of the Development Services. Accuray
shall reasonably solicit CyberHeart’s feedback regarding the Development
Services, including without limitation with respect to all decisions that may
significantly affect the progress or results. 
Subject to compliance with the foregoing and the other terms of this
Agreement, the manner and means by which Accuray chooses to complete its
responsibilities in performing the Development Services are in Accuray’s sole
discretion and control.  The Deliverables
shall materially conform to the requirements set forth in the Statement of
Work, including without limitation the Specifications, and Accuray shall notify
CyberHeart in writing, concurrent with delivery of each Deliverable, of any
non-compliance known to Accuray, its Affiliates, or contractors at such
time.  Except for the particular
Development Services requested under any purchase order, no terms or conditions
in such purchase order, nor any of the terms of any acknowledgement or other
document of Accuray, shall be deemed to vary any of the terms of this Agreement
which shall control in all respects.  All
such additional terms and conditions are hereby rejected and excluded.  All obligations based upon purchase orders
for Development Services shall be solely under, and as expressly set forth in,
this Agreement and the applicable Statement of Work.

3.5           Technical Assistance.  Until the later of completion and acceptance
of all Deliverables under any Statement of Work and Accuray providing
information, materials, and assistance that are sufficient to enable CyberHeart
to reasonably understand, use, and otherwise exploit such Deliverables in
CyberHeart Products in the CyberHeart Field, Accuray shall make reasonably
available to CyberHeart during normal business hours, at CyberHeart’s request
and without charge, ongoing technical assistance with respect to any
Deliverable provided by Accuray to CyberHeart in connection with this
Agreement.  After such time, Accuray
shall not 

 16
 

unreasonably refuse CyberHeart’s requests for
additional technical assistance with respect thereto.

3.6           Acceptance of
Deliverables.  Upon delivery of each
Deliverable to CyberHeart, CyberHeart shall assess whether the Deliverables
materially conform to the applicable part of the Specifications and the
Statement of Work.  CyberHeart shall have
a period of thirty (30) business days to accept or reject each Deliverable
after delivery, or such longer period as is reasonable under the
circumstances.  If written notice of
rejection is not received by Accuray within such thirty (30) business days
after delivery of the applicable Deliverable (or such longer time as is reasonable
under the circumstances), the Deliverable shall be deemed accepted.  Notwithstanding the foregoing, if more time
is needed to complete any reasonable evaluation and/or testing of the
Deliverables (such as in the case of CyberHeart performing field trials and/or
testing), and CyberHeart provides Accuray with notice during such thirty (30)
business day period of the need for additional time, then such time period for
acceptance or rejection shall be reasonably extended sufficient to allow
completion of the desired evaluations and testing.  In the event that a Deliverable does not
materially conform to the Specifications or Statement of Work (such
nonconformance shall be referred to as “Deficiencies”), CyberHeart may
reject the Deliverable and provide written notice to Accuray which notice shall
provide a reasonable description of why CyberHeart believes that the
Deliverable did not comply with the Specification or Statement of Work.  Accuray shall review such description within
five (5) business days after receipt of such notice.  If Accuray disagrees with CyberHeart’s
reason(s) for such rejection, the matter shall be submitted for resolution in
accordance with the procedures set forth in Article 16.  If Accuray agrees with CyberHeart’s reason(s)
for such rejection, Accuray shall, within twenty (20) business days after
receiving each report regarding Deficiencies, or if the Parties agree in
writing to a different time period, upon such time as has been agreed to by the
Parties, correct the Deficiencies so that the Deliverable materially conforms
to the applicable part of the Specifications or Statement of Work.  CyberHeart agrees to cooperate reasonably
with Accuray in Accuray’s efforts to diagnose and correct any
Deficiencies.  The procedure in this
Section 3.6 shall be repeated with respect to a revised Deliverable to
determine whether it is acceptable to CyberHeart, unless and until CyberHeart
expressly indicates in its Deficiency notice that it is issuing final rejection
of the revised Deliverable after rejecting the Deliverable on at least two (2)
prior occasions or otherwise terminates the Development Services under the
Statement of Work.  If CyberHeart issues
a final rejection of the revised Deliverable pursuant to this Section 3.6,
Accuray shall return any and all compensation
previously paid by CyberHeart to Accuray for the nonconforming
Deliverable(s) and for the applicable Statement of Work. Notwithstanding the
above, Accuray shall not be required to return any payments for previously
accepted Deliverables, or to the extent that the Statement of Work identifies
separate payments for conforming components of rejected Deliverables, for such
conforming components.

3.7           Changes.  CyberHeart shall have the right to propose
changes (“Changes”) to any Statement of Work by submitting a change
request (“Change Request”) to Accuray as described in this Section
3.7.  Each Change Request shall identify
the relevant Statement of Work to which the Change applies.  Upon receipt of any Change Request, Accuray
shall, within fifteen (15) days after its receipt thereof, deliver a written
response setting forth the effect of any such Change to the relevant Statement
of Work, including without limitation (i) the Fees payable 

 17
 

by CyberHeart to undertake the Change,
(ii) the time required to effect such Change, and (iii) any
additional information reasonably requested by Accuray from CyberHeart to
undertake such Change (“Change Request Response”).  Accuray shall use Reasonable Commercial
Efforts to minimize any increase in Fees and the delay of any schedule based on
any Change Request and shall only propose in good faith the effect of any
Change on the agreed to schedule and Fees. 
Upon receipt of Accuray’s Change Request Response, CyberHeart shall, at
its sole option and in its sole discretion, either (a) accept such Change
Request Response, in which case, the Parties shall amend the relevant Statement
of Work accordingly; (b) provide Accuray with a revised Change Request (“Modified
Change Request”) as a counteroffer to Accuray; or (c) opt not to
effect the Change.  In the event
CyberHeart delivers a Modified Change Request to Accuray, the Parties shall
repeat the process set forth above until Accuray has accepted such Modified
Change Request or CyberHeart opts not to undertake the relevant Change, but if
no agreement between the Parties as to the Change has been reached, the
proposed Change shall not be adopted. 
Notwithstanding the foregoing, Accuray shall use Reasonable Commercial
Efforts to accommodate the Changes requested by CyberHeart.

3.8           Development Term.  Accuray shall be responsible for completing
any Development Services in accordance with this Agreement that are commenced
during the Development Period unless such Development Services are terminated
in accordance with the terms of this Agreement. 
CyberHeart shall have the right to terminate the Development Services
being provided under each Statement of Work at any time for any reason by
providing notice of such termination to Accuray; provided that CyberHeart will
pay Accuray for all work set forth in the Statement of Work that is completed
in the course of such Development Services (i) to the extent payments have
become due in accordance with the applicable Statement of Work, (ii) provided
that the termination was not for Accuray’s breach, for the work that was
performed, including, without limitation, for uncompleted Deliverables, and
(iii) provided that the termination was not for Accuray’s breach, to cover a
reasonable wind down of Development Services, taking into account Accuray’s
cost to reallocate human and capital resources committed to Development
Services.  No termination of Development
Services shall be considered, or result in, a termination of this Agreement.

3.9           Affiliates and
Subcontractors.  During the Term,
Accuray shall have the right to perform its obligations with respect to
Development Services hereunder through one or more of its Affiliates and
independent contractors and similar third party developers (“Subcontractors”),
subject to the following.  Any use of any
Affiliates and Subcontractors by or under the authority of Accuray to perform
Development Services or exercise the rights or licenses to Accuray shall be
pursuant to a written agreement that is as protective of CyberHeart, its
Intellectual Property Rights, and its rights and licenses under this Agreement,
in all material respects as the terms of this Agreement, including without
limitation Articles 2, 9, 13, 14, and 15, and Accuray shall use Reasonable
Commercial Efforts to make CyberHeart a third party beneficiary of each such agreement
concerning the Development Services with full power and authority to enforce
its terms (“Sub-Agreement”). 
Without limiting the generality of the foregoing, or any other
obligation of Accuray under this Agreement, Accuray shall be responsible under
this Agreement for the acts and omissions of Affiliates and Subcontractors
pursuant to Sub-Agreements as if by Accuray. 
In particular, in any
circumstance where Accuray 

 18
 

uses a Subcontractor to perform Development Services, both Accuray and such Subcontractor
shall be responsible under this
Agreement for performing the obligations of Accuray related to such Development
Services, and Accuray shall be responsible under this Agreement for any failure
of the Subcontractor to do
so.  Accuray shall also use Reasonable
Commercial Efforts to obtain ownership of all Technology and Intellectual
Property Rights conceived, created, or used under each such Sub-Agreement and
under all other agreements with contractors by or under authority of Accuray
(including without limitation all Technology and Intellectual Property Rights
embodied in any Deliverables, or the making or use thereof) sufficient for
Accuray to grant the rights and licenses to CyberHeart under such Technology
and Intellectual Property Rights of the scope contemplated in this Agreement
(and sufficient to grant the backup manufacturing rights to be granted in the
Manufacturing and Supply Agreement), including without limitation to exercise
all such rights based upon and using the Deliverables.  To the extent that Accuray is unable to
obtain such ownership, then it shall obtain sufficient rights for Accuray to
grant to CyberHeart under all such Technology and Intellectual Property Rights
the rights and licenses to CyberHeart of the scope contemplated in this
Agreement.  To the extent applicable as
set forth above, CyberHeart may, in its sole discretion, bring any action for
the enforcement of, or claim under, this Agreement or Sub-Agreement, against
either or both of Accuray or any Affiliate or Subcontractor.  Accuray shall be directly liable to
CyberHeart for any act or omission of any Affiliate or Subcontractor that would
give rise to a breach of this Agreement if by Accuray, and Accuray and any such
Affiliate and Subcontractor shall be jointly and severally liable for any
breach of any Sub-Agreement or any such breach of this Agreement and with
respect to any liability of Accuray or any Affiliate or Subcontractor with
respect thereto, solely to the extent of CyberHeart’s damages resulting from
the breach.  Notwithstanding the
foregoing, Accuray shall be under no obligation to renegotiate or amend any
agreement entered into or effective prior to the Effective Date.  However, any such prior agreement under which
Development Services are performed for CyberHeart must enable Accuray to grant
the rights and licenses to CyberHeart of the scope contemplated in this
Agreement under the Technology and Intellectual Property Rights developed
pursuant to such Development Services.

3.10         Records.  Accuray shall keep reasonable records of all
work conducted and results achieved in performing work under this Agreement,
including without limitation all agreed upon documentation, procedures,
processes, protocols, equipment and materials employed in conducting the work,
and all inventions and Technology developed or used.  Additionally, if Development Services are
being paid for on a time and/or materials basis, Accuray shall include in such
records the time at which the work was conducted and the name of each
individual conducting the work.  Accuray
shall provide a copy of such records to CyberHeart upon reasonable request.

 19

4.             MANAGEMENT.

4.1           Joint Steering
Committee.

4.1.1                The Parties shall
establish a Joint Steering Committee (“JSC”), which shall provide a
forum for enabling and facilitating coordination of the Parties’ activities
hereunder and have the additional responsibilities allocated to it in this
Article 4.

4.1.2                Membership.  Each Party shall designate two (2) senior
executives with appropriate expertise to serve as members of the JSC, who shall
include the CyberHeart CEO and the Accuray CEO or an executive designated by
the respective Party’s CEO.  Subject to
the foregoing, each Party may replace its JSC representatives at any time upon
written notice to the other Party.

4.1.3                Meetings.  The JSC shall hold meetings at times and
locations as it elects to do so, but in no event shall such meetings be held
less frequently than once every calendar quarter.

4.1.4                Decision Making.  Each Party’s designees on the JSC shall
collectively have one (1) vote on all matters brought before the JSC and
decisions by the JSC on all such matters shall be made only by a unanimous vote
of the JSC.  Any disagreement between the
designees of the Parties on the JSC as to matters brought before it shall be
reasonably discussed within the JSC, provided that such discussions shall occur
no later than thirty (30) days after either Party’s initial request and subject
to the following.  If any dispute
regarding the interpretation of or breach of a term or condition of this
Agreement, or the reasonableness of any term or condition of a Manufacturing and
Supply Agreement or of any term or condition of any Installation or Service
Agreement (as defined in Section 6.2), (each, a “Contract Dispute”) has
not been resolved by the JSC for any reason within thirty (30) days after
either Party’s request, upon either Party’s good faith election, such Contract
Disputes shall be subject to the dispute resolution provisions of Section 16.1
(only for attempted resolution by the CEOs or independent board members within
the sixty (60) day period specified in Section 16.1) and Section 16.2.  Subject to any final arbitration decision
concerning a Contract Dispute that has been issued pursuant to Section 16.2,
all decisions of the JSC shall be for advisory purposes only and shall not be
binding upon either Party, unless set forth in a writing that is signed by both
Parties.  For clarity, subject to
CyberHeart’s compliance with its obligations in Articles 5, 7, and 8, and
subject to Section 6.1, the manner and means by which the CyberHeart Products
are designed, developed, manufactured, and commercialized shall be in
CyberHeart’s sole discretion and control, and CyberHeart shall have exclusive
decision making authority with respect to all such design, development,
manufacture, and commercialization.  For
clarity, nothing in this Section 4.1.4 shall be construed as requiring
arbitration of any topics other than Contract Disputes.  Nothing in this Agreement shall be construed
to give Accuray, the JSC, or any arbitrator, decision making authority with
respect to, and the consent and/or agreement of Accuray, the JSC, or any
arbitrator shall not be required for, any research, development, design,
marketing, pricing, commercialization, or other decisions related to CyberHeart
Products.  Notwithstanding anything to
the contrary, the JSC shall have no authority or power to amend or alter any of
the terms and conditions of, or to amend or waive compliance with, this
Agreement.

 20
 

4.1.5                Meeting Agendas.  Each Party shall disclose to the other Party
the proposed agenda items along with appropriate information at least three (3)
business days in advance of each meeting of the JSC; provided that, under
exigent circumstances requiring JSC input, a Party may provide its agenda items
to the other Party within a lesser period of time in advance of the meeting, or
may propose that there not be a specific agenda for a particular meeting, so
long as such other Party consents to such later addition of such agenda items
or the absence of a specific agenda for such JSC meeting.  The JSC shall consider and comment on all
matters reasonably identified by either Party. 
The JSC shall remain in effect after the end of the Development Period
only to the extent desired by both Parties.

4.1.6                Responsibilities.
In addition to establishing a forum for communication regarding the Development
Services, while the JSC is in place, the JSC may, as requested by either Party
hereto:

4.1.6.1              Review and comment
on all proposed Statements of Work.

4.1.6.2              Review and comment
on the conduct of the Development Services.

4.1.6.3              Review and comment
on the performance of any Subcontractors performing any portion of the
Development Services on behalf of CyberHeart.

4.1.6.4              Provide feedback to
the Project Manager.

4.1.6.5              Review, evaluate,
and comment on all reports required by this Agreement or the applicable
Statement of Work pursuant to the Development Services.

4.1.6.6              Review and comment
on the conduct and results of pre-clinical studies and clinical trials.

4.1.6.7              Review and comment
on the Regulatory Filings by CyberHeart and Accuray.

4.2           Development Staffing.

4.2.1                Project Manager.  Except to the extent otherwise authorized or
requested by CyberHeart, each Statement of Work shall identify, and Accuray
shall dedicate, an employee of Accuray to act as the Development Services project
manager (the “Project Manager”), who shall be sufficiently senior and
experienced to properly manage the exchange of information and materials
between the Parties and to properly manage and undertake the Development
Services and deliver the applicable Deliverables.  For clarity, a single Project Manager may be
responsible for more than one project to the extent reasonable based upon the
time commitment required for each project. 
CyberHeart shall fund such Project Manager only as expressly set forth
in the applicable Statement of Work during the period in which the Development
Services under the Statement of Work are being performed, and such Project 

 21
 

Manager shall report directly to the JSC and
the CyberHeart Liaison.  Any and all
communication from and to Accuray with respect to the Development Services
shall be channeled through such Project Manager.  Unless otherwise agreed to by CyberHeart,
each Project Manager shall be dedicated solely to the Development Services
under the relevant Statement of Work.

4.2.2                Accuray Project
Team.  Accuray shall provide
sufficient resources, including without limitation FTEs, to use Reasonable
Commercial Efforts to perform the Development Services and create the
Deliverables as set forth in each Statement of Work.  Each member of Accuray’s personnel assigned
to perform Development Services shall be the same level of experience and
expertise that Accuray would assign to development of its own Technology of a
similar nature and importance as the Deliverables under the relevant Statement
of Work and in all cases properly trained and competent in their respective
technical areas.

4.2.3                CyberHeart
Representative.  Each Statement of
Work shall identify one employee of CyberHeart to act as CyberHeart’s liaison
with respect to the Development Services (“CyberHeart Liaison”).  The CyberHeart Liaison shall be sufficiently
senior and experienced to undertake and participate in the Development
Services.  Accuray shall use Reasonable
Commercial Efforts to ensure that each Project Manager shall be staffed under
each Statement of Work to work closely with the CyberHeart Liaison during the
period that Development Services are performed. 
Any and all communication from and to CyberHeart with respect to
Development Services under each Statement of Work shall be channeled through
the relevant CyberHeart Liaison.

4.3           Reports and Access.  Unless otherwise indicated on the applicable
Statement of Work or agreed by CyberHeart, approximately once each week, the
Project Manager shall arrange a meeting with the CyberHeart Liaison, either in
person or by telephone, for a formal progress presentation, describing in
detail the status of the Development Services, including without limitation
results achieved, projections for time of completion, issues and difficulties
that have arisen or are anticipated, steps necessary to return to the schedule
in case of any delay, and discussion of possible resolution of any problems
that have arisen.  Additionally, Accuray
shall provide CyberHeart with written reports regarding the progress of the
Development Services as reasonably requested by CyberHeart.  Without limiting the foregoing, Accuray shall
notify CyberHeart as soon as possible of any issues that arise that may result in
delay or inability to meet goals. Additionally, Accuray agrees that it shall make its
technical personnel and consultants reasonably available to the employees and
consultants of CyberHeart to discuss the Development Services work, and the
results of such work, in detail and to provide reasonable information and
feedback with respect to other development activities for CyberHeart Products,
as reasonably requested by CyberHeart from time to time.

5.             CLINICAL
TRIALS AND REGULATORY MATTERS.

5.1           Accuray Pre-Clinical
Studies and Clinical Trials.  As
between the Parties, Accuray shall be solely responsible, at its expense, for
any and all pre-clinical studies and clinical trials, and have the exclusive
right to communicate with Regulatory Agencies and seek 

 22
 

and obtain Regulatory
Approvals, with respect to CyberKnife Systems in the Accuray Field in any and
all jurisdictions.  Accuray agrees that
it shall keep CyberHeart reasonably informed regarding its pre-clinical studies
and clinical trials of such CyberKnife Systems, and cooperate reasonably with CyberHeart
in order to coordinate its studies and trials reasonably with that of
CyberHeart.  Accuray also shall design
and conduct pre-clinical studies and clinical trials for CyberKnife Systems
reasonably considering feedback and information provided by CyberHeart.

5.2           CyberHeart
Pre-Clinical Studies and Clinical Trials.

5.2.1        CyberHeart shall establish
a committee, consisting either of three (3) or of five (5) advisors, which
shall review CyberHeart’s clinical trial protocols and CyberHeart’s pre-clinical
test results relating to CyberHeart Products, prior to CyberHeart commencing
clinical trials for CyberHeart Products (the “Clinical Advisory Committee”).  The role of the Clinical Advisory Committee
shall be to confirm to CyberHeart that it is not unreasonable for CyberHeart to
move forward with clinical trials in light of CyberHeart’s clinical trial
protocols and pre-clinical test results. 
The Clinical Advisory Committee shall also review informed consent forms
for all clinical trials of CyberHeart Products to confirm that such forms are
reasonable.  The Clinical Advisory
Committee shall make all such confirmation decisions by majority decision.  The Clinical Advisory Committee shall have no
other authority or control.  CyberHeart
shall be entitled to appoint all Clinical Advisory Committee members in its
discretion, provided that the members are reputable and reasonable and Accuray
shall have the right to disqualify without cause up to two (2) Clinical
Advisory Committee members and challenge, in accordance with Article 16, the
reasonableness of any additional Clinical Advisory Committee member designated
by CyberHeart.

5.2.2        Subject to Section 5.2.1,
CyberHeart shall be responsible, at its expense, for any and all pre-clinical
studies and clinical trials, and have the exclusive right to communicate with
Regulatory Agencies and seek and obtain Regulatory Approvals, with respect to
CyberHeart Products in the CyberHeart Field in any and all jurisdictions.  CyberHeart agrees that it shall keep Accuray
reasonably informed regarding its pre-clinical studies and clinical trials of
such CyberHeart Products, and cooperate reasonably with Accuray in order to
coordinate its studies and trials reasonably with that of Accuray.  CyberHeart also shall design and conduct pre-clinical
studies and clinical trials for CyberHeart Products considering feedback and
information provided by Accuray.  Accuray
shall make reasonably available to CyberHeart, at no charge, one (1) CyberKnife
System solely for use in conducting each such pre-clinical and clinical
trials.  CyberHeart may enter into an
agreement with an Accuray customer for pre-clinical or clinical studies,
provided any activities between CyberHeart and such customer will not negatively
impact any revenue of Accuray under its shared ownership or placement programs
for its CyberKnife product.

5.3           Regulatory Matters.  CyberHeart shall have the exclusive right to
prepare, file, prosecute, and maintain all Regulatory Filings necessary for
commercialization of any CyberHeart Product. 
Accuray shall have the exclusive right to prepare, file, prosecute, and
maintain all Regulatory Filings necessary for commercialization of any
CyberKnife System in the Accuray Field. 
Each Party shall provide reasonable assistance to the other Party in
such efforts, including without limitation, at no charge, allowing the other
Party to reference such 

 23
 

Party’s own Regulatory Filings or incorporate
sections of such Party’s Regulatory Filings with the other Party’s Regulatory
Filings, provided, however, that each Party shall provide the other with copies
of all correspondence with FDA and other Regulatory Agencies, in advance, where
possible; provided, further, that each Party shall have the right to comment in
a timely fashion on any Regulatory Filings where such Party’s own Regulatory
Filings are referenced or incorporated with the other’s Regulatory Filings.

6.             MANUFACTURING,
SUPPLY, AND COMMERCIALIZATION.

6.1           Manufacturing and
Supply.

6.1.1                As of the
Effective Date, the Parties shall execute the Manufacturing and Supply
Agreement set forth in Exhibit E. 
Any amendment of the Manufacturing and Supply Agreement will be upon
both Parties mutual agreement and not subject to Dispute Resolution provisions
under Article 16.

6.1.2                If CyberHeart
desires to have a CyberHeart Product, CyberKnife Component, or other component
of a CyberHeart Product (a “Requested Item(s)”) manufactured and
supplied by Accuray, CyberHeart shall provide Accuray with notice of such
desire, together with written proposed specifications (as such specifications
will be defined in the Manufacturing and Supply Agreement) that are desired by
CyberHeart for the Requested Items, which may include updates and modifications
of CyberHeart Products currently being supplied by Accuray.  Accuray shall notify CyberHeart within thirty
(30) days after receipt of such notice whether or not such specifications are
acceptable and whether Accuray will supply such Requested Items to CyberHeart
in accordance with the terms and conditions of the Manufacturing and Supply
Agreement.  Upon Accuray notifying
CyberHeart that it will supply such Requested Items, CyberHeart shall be
entitled to provide Accuray with its first forecast for such Requested Items
and the terms and conditions in the Manufacturing and Supply Agreement shall
apply to require Accuray to supply such Requested Items to CyberHeart.  Provided that any specifications provided by
CyberHeart to Accuray are reasonable, unless Accuray notifies CyberHeart that
it will supply such Requested Items to CyberHeart within thirty (30) days after
CyberHeart’s request, CyberHeart’s manufacture and have manufactured rights
that are granted in Section 2.2.1 shall be deemed to extend to the Requested
Item that was identified in CyberHeart’s notice and not otherwise already
licensed to CyberHeart under Section 2.2.1, including without limitation
modifications, enhancements, and updates thereof. For clarity, Accuray will
have no right to manufacture any Requested Item for CyberHeart after
manufacturing rights have been granted to CyberHeart pursuant to this Section
6.1.2.

6.2           Installation and
Service.  The Parties shall cooperate
on installation and conduct it pursuant to the terms and conditions in Exhibit
F (the “Installation Agreement”). 
The Parties shall cooperate on service of CyberHeart Producs and conduct
it pursuant to the terms and conditions in Exhibit G (the “Service
Agreement”).

6.3           Commercialization.  CyberHeart has the exclusive right (including
as to Accuray) to market and commercialize CyberHeart Products.
Commercialization of CyberHeart 

 24
 

products can be through per-use
(per-click) revenue generated from CyberHeart Products that are not sold or
from the outright sale of CyberHeart Products, provided that, in any given
calendar year, CyberHeart shall not be permitted to sell a number of CyberHeart
Systems or CyberHeart Modules greater than ten percent (10%) of the CyberHeart
Systems or CyberHeart Modules, respectively, supplied to CyberHeart in such
calendar year.

6.4           Revenue Share.

6.4.1        Per-Click Revenue:
Within thirty (30) days after the end of each calendar quarter, CyberHeart
shall pay to Accuray a percentage of Per-Click Revenue as follows:

6.4.1.1              *** of Per-Click
Revenue from use of CyberHeart Modules.

6.4.1.2              *** Per-Click
Revenue from use of CyberHeart Systems.

All Per-Click
Revenue shall be collected in compliance with all federal fraud and abuse laws.

6.4.1.3              The royalty rates
above in Sections 6.4.1.1 and Section 6.4.1.2 shall also apply to any other
revenue received, earned, or deferred, by CyberHeart (including without
limitation fees and other payments) from end-users, their representatives or
agents (including, without limitation, financing entities) for CyberHeart
Products that are delivered, but not sold, to end-users. Notwithstanding the above
in this Section 6.4.1.3, no royalty will be due for any revenue that is
unrelated to treatment of patients using a CyberHeart Product and that is not
in lieu of revenue for any such treatment. For example, no royalties will be
due for revenue received for consulting services concerning billing systems and
treatment protocols, provided that any fees charged for such services are
reasonable and customary for such services in the medical device industry.

6.4.2        Sales Revenue:
CyberHeart shall pay to Accuray an amount equal to *** of gross revenues
collected, received, earned, or deferred, by CyberHeart on sales of CyberHeart
Products or buy-outs, whether full or partial (which are subject to Section
6.4.3 below), of CyberHeart Products subject to Per-Click Revenue arrangements.

6.4.3        Partial Sale: In
such cases where a portion of less than one-hundred percent (100%) of a
CyberHeart Product is sold, the above rates in Section 6.4.2 will apply as to
the portion sold and the above rates in Section 6.4.1 will apply as to the
portion subject to Per-Click Revenue.

6.5           Further to that
specified in Section 2.2.7, the Parties agree and understand that this
Agreement is intended to enable CyberHeart to sell CyberHeart Products solely
for applications in the CyberHeart Field, and CyberHeart shall have no right
under the licenses granted in this Agreement to sell, install, or service
CyberKnife Systems or to sell, install, or service CyberHeart Products outside
the CyberHeart Field.  In addition to
other rights retained 

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

 25
 

by Accuray under this Agreement, Accuray
shall retain the sole and exclusive right under its Intellectual Property
Rights to market and sell, install, and service CyberKnife Systems.  Similarly, however, except as otherwise
agreed by the Parties under this Agreement or in a separate writing, Accuray
and its Affiliates shall not, and shall not license or otherwise authorize any
other Person to, directly or indirectly, install, service, support, develop,
market, promote, sell, import, or otherwise commercialize any stereotactic
radiosurgery product that is used in the CyberHeart Field in any country,
whether or not there are Accuray Patents or whether or not there is Accuray
Technology in such country. Accuray shall include, and shall cause its
Affiliates to include, such a covenant in all licenses and other authorizations
by Accuray or its Affiliates under the Accuray Patents and/or Accuray
Technology.  Additionally, except as
otherwise agreed by the Parties under this Agreement or in a separate writing,
CyberHeart and its Affiliates shall not, and shall not license or otherwise
authorize any other Person to, directly or indirectly, install, service,
support, develop, market, promote, sell, import, or otherwise commercialize in
any country any CyberKnife System that is used in the Accuray Field.  CyberHeart shall include, and shall cause its
Affiliates to include, such a covenant in all agreements granting licenses for
CyberKnife Systems entered into by CyberHeart or its Affiliates.

6.6           Audit Rights.

6.6.1        Accuray Audits.  CyberHeart shall keep or cause to be kept
such records, including, without limitation, those obtained pursuant to Section
6.6.2,  as are required to determine, in
a manner consistent with Generally Accepted Accounting Principals (GAAP) and
this Agreement, the sums due under this Agreement, including, but not limited
to, Per-Click Revenue and sales of CyberHeart Products.  At the request (and expense) of Accuray,
CyberHeart and its Affiliates and sublicensees shall permit an independent
certified public accountant appointed by Accuray and reasonably acceptable to
CyberHeart, at reasonable times and upon reasonable notice, to examine only
those records as may be necessary to determine, with respect to any calendar
year ending not more than three (3) calendar years prior to the beginning of
the calendar year in which such audit occurs, for records to be kept as
provided in this Section 6.6.1 prior to Accuray’s request, the correctness
or completeness of any report or payment made under this Agreement.  Results of any such examination shall be (a)
limited to information relating to CyberHeart Products, (b) made available to
both Parties, and (c) deemed the Confidential Information of CyberHeart subject
to Article 14.  Accuray shall bear
the full cost of the performance of any such audit, unless such audit discloses
a variance to the detriment of Accuray of more than five percent (5%) of the
amount of the original report, royalty or payment calculation.  In such case, CyberHeart shall bear the full
cost of the performance of such audit.

6.6.2        CyberHeart Audits of
Third Parties.  CyberHeart shall
require each third party into which a CyberHeart Product is installed to keep
or cause to be kept such records as are required to determine, in a manner
consistent with GAAP, the sums due to CyberHeart under its agreements with such
third party.  CyberHeart, or its
designated independent certified public accountant, shall audit at least twenty
percent (20%) of such third parties per calendar year during the Term, in order
to examine those records as may be necessary to determine, with respect to any
calendar year ending not more than three (3) calendar years prior to the
beginning 

 26
 

of the calendar year in which such audit
occurs, for records to be kept as provided in this Section 6.6.2, the
correctness or completeness of any report or payment made by such third parties
to CyberHeart.  As between the Parties,
CyberHeart shall bear the full cost of the performance of any such audit.

7.             DILIGENCE.

7.1           CyberHeart shall use
Reasonable Commercial Efforts to develop and file Regulatory Filings to obtain
Regulatory Approval for at least one (1) CyberHeart Product for at least one
(1) indication in the CyberHeart Field.

7.2           CyberHeart shall use
Reasonable Commercial Efforts to achieve agreed commercialization milestones
within the agreed period of time.  For
clarity, CyberHeart shall not be considered to have failed to meet its
diligence obligation under this Section 7.2 due to any failure to meet such
milestones so long as CyberHeart has used Reasonable Commercial Efforts to meet
the milestone.

7.3           Any failure of
CyberHeart to use Reasonable Commercial Efforts to meet the diligence
obligations under this Article 7 shall be a material breach of this Agreement
by CyberHeart.  Notwithstanding anything
to the contrary, CyberHeart shall be deemed to have used the Reasonable
Commercial Efforts required in Sections 7.1 and 7.2 and 11.3.3, and to have met
its diligence obligations under this Article 7 and 11.3.3, if the total
aggregate costs, expenses, and other payments incurred by CyberHeart, its
Affiliates, and sub-licensees (if authorized by Accuray) in connection with the
research, development, filings, making, marketing, and other commercialization
of CyberHeart Product(s) are at least (i) *** during the twelve (12) months
after the Effective Date and (ii) an aggregate of *** from the Effective Date
until twenty-four (24) months after the Effective Date.

7.4           CyberHeart shall use
Reasonable Commercial Efforts to operate in good standing with local, state,
and federal government agencies, including without limitation the FDA, and will
not knowingly materially violate any local, state, or federal law or knowingly
continue any such violation previously unknown that as a consequence of such
violation, may harm the goodwill and reputation of Accuray.

8.             COMPENSATION
AND PAYMENT TERMS.

8.1           Fees.

8.1.1                Development
Services Fees.  In consideration of
Accuray’s performance of the Development Services hereunder, CyberHeart shall
pay to Accuray the amounts indicated, and at the times set forth, in each
Statement of Work.

8.2           Payment.

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

 27
 

8.2.1                Development
Services Fees.  For Development
Services performed on a fixed price basis, Accuray may invoice CyberHeart upon
acceptance by CyberHeart of the applicable milestone and Deliverables as
indicated in the Statement of Work and Section 3.6.  If the Statement of Work indicates that
Development Services are to be performed on a time and materials basis, Accuray
shall invoice CyberHeart on a calendar monthly basis for time reasonably
expended in performing the Development Services and materials expenses
authorized in the Statement of Work, or otherwise authorized by CyberHeart in
advance in writing, and actually incurred during the prior calendar month.  Under no circumstances shall CyberHeart be
responsible for paying any amounts in excess of any budget set forth in a
Statement of Work, and under no circumstances shall CyberHeart be responsible
for reimbursing Accuray for any out of pocket costs or expenses except to the
extent approved by CyberHeart in advance in writing and documented to
CyberHeart’s reasonable satisfaction. 
The rates charged to CyberHeart for Accuray’s time shall be equal to
direct labor costs plus forty percent (40%). Notwithstanding the foregoing, all
payments under this Section 8.2.1 that become due or payable prior to
CyberHeart obtaining more than One Million U.S. dollars ($1,000,000) of investment
financing shall be deferred until, and shall not be due or payable until thirty
(30) days after such time as CyberHeart has completed investments totaling such
amount.

8.3           Payment Terms.  All amounts paid hereunder shall be in U.S.
dollars.  CyberHeart shall pay all Fees
that have become due and payable hereunder within thirty (30) days of receipt
of Accuray’s invoice in accordance with this Agreement.  If CyberHeart fails to make any payment
required under this Agreement within thirty (30) days after the date on which
such payment becomes due and payable, then Accuray may, at its option and sole
discretion and in addition to any other remedies it may have at law or equity,
assess a late fee in the amount equal to one percent (1%) of the unpaid balance
for each month after payment is due until the invoice is paid in full, or if
less, the maximum allowable by law.

8.4           Taxes.  In addition to the payment of Fees and other
amounts described above, CyberHeart shall pay all taxes, including without
limitation sales and use tax, but excluding any tax based upon the net income
of Accuray, if imposed by any government as a result of payments made to
Accuray under this Agreement.  CyberHeart
may withhold from, and reduce the amount of, payment to Accuray under this Agreement
for any taxes required to be withheld by CyberHeart under the applicable laws
of the United States or any other country. 
Such amount shall be paid to the appropriate taxing authorities, and
CyberHeart shall provide Accuray with official receipts issued by said taxing
authority or such other evidence as is reasonably available to establish that
such taxes have been paid.  CyberHeart
shall cooperate with Accuray and take all actions reasonably necessary, that do
not result in any cost, expense, or detriment to CyberHeart, in order to secure
any reasonably available reduction or elimination of withholding taxes pursuant
to any income tax treaty between the United States and any other country.

8.5           CyberHeart Board of
Directors Observation Right. As part of the consideration from CyberHeart
to Accuray under this Agreement, CyberHeart shall provide reasonable board
observation rights to an individual designated by Accuray to which CyberHeart 

 28
 

has no reasonable objection. This Section 8.5
shall not survive any termination or expiration of this Agreement,
notwithstanding anything to the contrary.

8.6           The Fees are Accuray’s
sole remuneration for all rights and licenses granted, and services provided,
under this Agreement.

9.             INTELLECTUAL
PROPERTY OWNERSHIP.

9.1           Ownership.

9.1.1        Existing Rights.
Except as specified otherwise in this Agreement, including without limitation
any exclusivity in this Agreement, (i) each Party shall retain and own all
right, title, and interest in and to all Intellectual Property Rights conceived
or created solely by such Party, (ii) the Parties shall jointly own all right,
title, and interest in and to all Intellectual Property Rights conceived or
created jointly by the Parties, and neither Party shall have any duty to
account or obtain the consent of the other Party in order to exploit or license
such Intellectual Property Rights, and (iii) inventorship and authorship of any
invention or work of authorship conceived or created by either Party, or
jointly by the Parties, shall follow the rules of the U.S. Patent and Trademark
Office and the laws of the United States (without reference to any conflict of
law principles).

9.1.2        Accuray.
Without assigning or otherwise transferring to Accuray any right, title, or
interest in, to, or under any other Intellectual Property Rights or Technology,
Accuray shall own all Accuray Improvements. 
In connection with the foregoing, CyberHeart hereby assigns and agrees
to assign, subject to Section 9.2, all of its right, title, and interest
in and to any such Accuray Improvements and any Intellectual Property Rights
related to Accuray Improvements, subject to the following.  Notwithstanding the foregoing, this Section
9.1.2 shall not require the assignment to Accuray of (i) any Patent claims that
concern an invention that is not an Accuray Improvement or concern an invention
that was conceived before the Effective Date or after the end of the
Development Period; (ii) any other Patent right except to the extent that the
Patent claims, and is entitled to (determined on a claim by claim basis),
priority to a Patent that is owned by Accuray; and (iii) any non-Patent
Intellectual Property Right except to the extent that such non-Patent
Intellectual Property Right embodies an Accuray Improvement.

9.1.3        CyberHeart. Without
assigning or otherwise transferring to Accuray any right, title, or interest
in, to, or under any other Intellectual Property Rights or Technology,
CyberHeart shall own all CyberHeart Improvements.  In connection with the foregoing, Accuray
hereby assigns and agrees to assign, subject to Section 9.2, all of its
right, title, and interest in and to any such CyberHeart Improvements and any
Intellectual Property Rights related to CyberHeart Improvements, subject to the
following.  This Section 9.1.3 shall not
require the assignment to CyberHeart of (i) any Patent claims that concern an
invention that is not a CyberHeart Improvement or concern an invention that was
conceived before the Effective Date or after the end of the Development Period;
(ii) any other Patent right except to the extent that the Patent claims, and is
entitled to (determined on a claim by claim basis), 

 29
 

priority to a Patent that is owned by
CyberHeart; and (iii) any non-Patent Intellectual Property Rights except to the
extent that such non-Patent Intellectual Property Right embodies a CyberHeart
Improvement.  Additionally, CyberHeart
will own, and Accuray Improvements shall exclude, any Improvements to the
CyberHeart Module conceived or created by or on behalf of CyberHeart, and not
by Accuray.

9.1.4        Further Assurances.
Each Party (the “Assignor”) shall assist the other (the “Assignee”),
or the Assignee’s designee, at the Assignee’s expense, reasonably to secure in
any and all countries the Assignee’s rights in and to the Intellectual Property
Rights that the Assignee is to own in accordance with this Section 9.1,
including without limitation reasonable disclosure to the Assignee of
information and data reasonably necessary to pursue Patent applications filed
by the Assignor that are to be assigned to the Assignee in accordance with the
foregoing, the execution of all applications, specifications, oaths,
assignments, and all other instruments reasonably necessary in order to apply
for and obtain such rights and in order to assign and convey to the Assignee,
and its successors, assigns, and nominees, the sole and exclusive right, title,
and interest therein and thereto to the extent contemplated in this Section
9.1.  The Assignor also agrees that its
obligation to execute or cause to be executed any such instrument or papers
shall continue after the termination of this Agreement.  This Section 9.1.4 shall not be construed to
require the disclosure of any Technology to the Assignee except to the extent
it is included in a Patent filed by the Assignor that is to be assigned to the
Assignee.

9.1.5        Attorney-in-Fact.
The Assignor (as defined in Section 9.1.4) agrees that, if the Assignee (as
defined in Section 9.1.4) is unable because of the Assignor’s unavailability,
dissolution, mental or physical incapacity, or for any other reason, to secure
the Assignor’s signature for the purpose of applying for or pursuing any
application for any U.S. or foreign Patent or copyright registrations covering
any Intellectual Property Rights or Technology to be assigned to the Assignee
under this Section 9.1, then the Assignor hereby irrevocably designates
and appoints the Assignee and its duly authorized officers and agents as the
Assignee’s agent and attorney-in-fact, to act for and on the Assignor’s behalf to
execute and file any such applications and to do all other lawfully permitted
acts that are reasonably necessary for the prosecution and issuance of Patent
and copyright registrations to be owned by the Assignee under this Section 9.1
with the same legal force and effect as if executed by the Assignor.  The foregoing appointment shall be deemed
coupled with an interest of the Assignee in and to the Intellectual Property
Rights and Technology to be assigned to the Assignee under this Section 9.1.

9.2           Third Party
Technology.

9.2.1        Unless mutually agreed to
by the Parties through the JSC or otherwise in a separate signed writing,
Accuray, its Affiliates, and its contractors shall not use any product,
software, program materials, trade secrets, information, or other Technology in
performing the Development Services or in any Deliverable in a manner that
would require, for the exercise of any of CyberHeart’s rights pursuant to this
Agreement using or based upon the Deliverables, a license that is not granted
to CyberHeart in this Agreement (or in the case of Intellectual Property to the
extent used to manufacture CyberKnife Components, in the Manufacturing and
Supply Agreement), except to the extent such Technology has been expressly 

 30
 

identified in the Statement of Work that has
been agreed upon by the Parties in advance of the particular Development
Services as Intellectual Property Rights for which a license will be
needed.  Unless otherwise stated in the
Statement of Work, Accuray shall be and remain fully responsible for obtaining
all necessary rights and licenses to include such Technology in the
Deliverables and to the extent necessary to authorize CyberHeart to exercise
all of its rights and licenses of the scope set forth in this Agreement under
the Intellectual Property Rights concerning such Technology incorporated or
used in the Deliverables, or in the making or use of such Technology.  Unless otherwise agreed to by the Parties,
CyberHeart shall not be obligated to pay, and Accuray shall be responsible for,
any royalties and license fees in connection with such Technology and the terms
of any license with any such party shall provide that CyberHeart shall not be
responsible to Accuray or any third party for any breach by Accuray of such
third party licenses.

9.2.2        Except as otherwise
provided in Section 9.2.1, if a Party (the “Grantor”) is to grant a
sublicense or other right to the other Party (the “Grantee”) under this
Agreement or the Manufacturing and Supply Agreement under Intellectual Property
Rights in-licensed by the Grantor from a non-Affiliate third party after the
Effective Date that is subject to royalty or other payment obligations to such
third party (“Third Party Technology”), then the grant of such rights to
the Grantee under this Agreement shall be subject to the Grantee agreeing in
writing to pay the Grantor (i) any and all royalties payable to the third party
with respect to such Third Party Technology that become payable by reason of
Grantee’s exercise of such rights hereunder and (ii) that portion of any
upfront license fees, milestone payments and other similar (non-royalty)
amounts reasonably allocated to the rights granted to the Grantee hereunder
(taking into consideration the benefits of such rights under such Third Party
Technology to each Party). Upon request of the Grantee, the Grantor shall
disclose to the Grantee a true, complete, and correct written description of
such payment obligations.  Any failure to
agree upon an allocation shall be settled under Article 16.

9.3           The Parties intend that
this Agreement, all work in the performance of the Development Services, and
all other development of the CyberHeart Products shall qualify for the benefits
of the Cooperative Research and Technology Enhancement Act (35 U.S.C. §
103(c)) (the “CREATE Act”). 
Accordingly, to the extent mutually agreed and desired by the Parties,
the Parties shall take such lawful and just acts that may be or become
necessary for evidencing, maintaining, recording, and perfecting the benefits
of the CREATE Act.

10.           PATENT
PROSECUTION & ENFORCEMENT.

10.1         Patent Prosecution.  Except as otherwise expressly provided in
this Section 10.1, each Party shall have the exclusive right to prepare, file,
prosecute, and maintain Patents that are solely owned by such Party.  For purposes of this Section 10.1, Patents
that are jointly owned by the Parties shall be filed, prosecuted, and
maintained as if the Patent is either an Accuray Patent or a CyberHeart Patent,
as agreed by the Parties.

10.1.1              Accuray Patents.
Accuray shall, at its sole expense, diligently file, prosecute, and maintain
the Accuray Patents, including without limitation Patents with 

 31
 

claims covering any of the Deliverables, and
including without limitation timely payment of all maintenance fees in
connection with any issued Patents, that are part of or become part of the
Accuray Patents, including without limitation using diligent efforts to obtain
issuance of claims within such Accuray Patents that provide a reasonable scope
of protection for CyberHeart in the CyberHeart Field or are reasonably
necessary or useful for any future CyberHeart Products or other stereotactic
radiosurgery devices in the CyberHeart Field. 
Accuray shall reasonably take CyberHeart’s comments into account in
filing and prosecuting the Accuray Patents that relate to the CyberHeart Field
or any CyberHeart Product.  Accuray shall
keep CyberHeart reasonably informed regarding the status, preparation, filing,
prosecution, and maintenance of all such Accuray Patents (including without
limitation inventions for which CyberHeart may desire to have a Patent
application filed), and shall give CyberHeart a reasonable opportunity to
provide comments on such preparation, filing, prosecution, and maintenance
efforts that relate to the CyberHeart Field or any CyberHeart Product, to the
extent desired by CyberHeart. 
Notwithstanding the foregoing, Accuray shall have the right, in its
reasonable discretion, to abandon any such Patent application and/or cease
payment of maintenance fees on any such issued Patent; provided that Accuray
has first advised CyberHeart in writing of such intention at least ninety (90)
days prior to the intended abandonment or cessation date.  In such event, CyberHeart, at its sole
expense, shall have the right to assume the prosecution of any such Patent
application and may continue to pay to maintain such issued Patent, in each
case, that is within the Accuray Patents and relates to the CyberHeart Field or
any CyberHeart Product.

10.1.2              CyberHeart
Patents.  CyberHeart shall, at its
sole expense, have the right, but not the obligation, to file, prosecute, and
maintain the CyberHeart Patents, including without limitation Patents with
claims covering any of the CyberHeart Improvements, and to pay all maintenance
fees in connection with any issued Patents that are part of or become part of
the CyberHeart Patents including without limitation using diligent efforts to
obtain issuance of claims within such CyberHeart Patents that provide a
reasonable scope of protection for Accuray in the Accuray Field.  CyberHeart shall reasonably take Accuray’s
comments into account in filing and prosecuting the CyberHeart Patents to the
extent the CyberHeart Patent concerns CyberKnife Systems in the Accuray
Field.  CyberHeart shall keep Accuray
reasonably informed regarding the status, preparation, filing, prosecution and
maintenance of all CyberHeart Patents (including without limitation CyberHeart
Improvements for which Accuray may desire to have a Patent application filed)
to the extent the CyberHeart Patent concerns CyberKnife Systems in the Accuray
Field, and shall give Accuray a reasonable opportunity to provide comments on
such preparation, filing, prosecution, and maintenance efforts for CyberHeart
Patents, to the extent desired by Accuray. 
Notwithstanding the foregoing, CyberHeart shall have the right, in its
reasonable discretion, to abandon any such Patent applications and/or cease
payment of maintenance fees on any such issued Patents; but only if CyberHeart
has first advised Accuray in writing of such intention at least ninety (90)
days prior to the intended abandonment or cessation date.  In such event, Accuray, at its sole expense,
shall have the right to assume the prosecution of any such Patent application
and/or may continue to pay to maintain such issued Patent in each case that is
within the CyberHeart Patents and relates to the Accuray Field or any
CyberKnife System.

 32
 

10.1.3              Assistance.  Each Party agrees to (i) reasonably cooperate
with the other Party in preparing, filing, prosecuting, and maintaining any
Accuray Patents or CyberHeart Patents, as the case may be, and (ii) execute any
documents as shall be necessary or desirable for such purpose.

10.2         Enforcement of
Intellectual Property Rights.

10.2.1              Notification.  Each Party shall promptly notify the other
Party in writing (and provide a reasonable description) of any suspected
infringement by a third party of any Accuray Patent or CyberHeart Patent (a “Third-Party
Infringement”).

10.2.2              Enforcement of
Accuray Patents.

10.2.2.1            by Accuray.  Subject to Section 10.2.2.2, Accuray shall
have the first right, but not the obligation, to file and pursue any suit or
action for any Third-Party Infringement of the Accuray Patents, including
without limitation in the CyberHeart Field, and Accuray shall not, absent
CyberHeart’s prior written permission not to be withheld unreasonably, enter
into any settlement or other arrangement that grants a license or freedom to
operate (including without limitation by way of a covenant not to sue) to any
third party under the Accuray Patents that would infringe upon or violate
CyberHeart’s exclusivity under this Agreement or that otherwise is for any
activities in or for the CyberHeart Field. 
Accuray shall bear the reasonable expenses incurred by CyberHeart in providing
assistance and cooperation pursuant to this Section 10.2.2.1 as requested by
Accuray.  Unless Accuray and CyberHeart
otherwise agree, any amount recovered in any such suit or action, whether by
judgment or settlement, shall be paid to and retained by Accuray, unless the
Third-Party Infringement was in the CyberHeart Field.  For Third-Party Infringements in the
CyberHeart Field, Accuray shall be reimbursed out of Accuray’s own recovery
Accuray’s reasonable expenses (including without limitation attorney’s fees)
and for any payments made to CyberHeart for any reasonable expenses incurred by
CyberHeart in providing any assistance and cooperation requested by and
provided to Accuray in connection with such suit or action. Any remaining
amount shall be allocated twenty percent (20%) to Accuray and eighty percent
(80%) to CyberHeart.

10.2.2.2            by CyberHeart.  In the event Accuray (i) has not filed a suit
or action to enforce the Accuray Patents with respect to a Third-Party
Infringement of Accuray Patents in the CyberHeart Field within ninety (90) days
of learning of such Third-Party Infringement, (ii) ceases to use Reasonable
Commercial Efforts with respect to such suit or action, or (iii) provides
written notice to CyberHeart of its refusal to file or pursue such suit or
action, then, upon CyberHeart’s prior written notice, CyberHeart shall have the
right, but not the obligation, to bring any appropriate suit or action to
enforce any such Accuray Patents. 
Notwithstanding the foregoing, CyberHeart shall not have such right even
if Accuray does not file or pursue a suit or action under all patent claims
that may be infringed, (i) if Accuray has filed during such ninety (90) day
period, and continues to use Reasonable Commercial Efforts to pursue a suit or action
to enforce the Accuray Patents, under some of such patent claims, that is
reasonably anticipated by Accuray to terminate such Third-Party Infringement,
or (ii) if Accuray reasonably determines filing a suit or action would
materially harm its business. If CyberHeart undertakes such a suit or action,
Accuray shall reasonably join as a party to such suit or action, 

 33
 

take such other actions as are necessary for
standing or to otherwise bring or pursue such action, and reasonably cooperate
with CyberHeart, including without limitation executing all papers, causing its
employees to testify when requested, making available relevant records, papers,
information, samples, specimens, and the like, and performing such other acts
as may be reasonably requested by CyberHeart. 
CyberHeart shall bear the reasonable expenses incurred by Accuray in
providing assistance and cooperation pursuant to this Section 10.2.2.2 as
requested by CyberHeart.  Accuray may, at
its expense, be represented by counsel of its choice.  Unless Accuray and CyberHeart otherwise
agree, any amount recovered in such suit or action, whether by judgment or
settlement, after deducting CyberHeart’s reasonable expenses (including without
limitation any attorneys’ fees) and subject to payment to Accuray of any
reasonable expenses incurred by Accuray in providing assistance and cooperation
as requested by CyberHeart, shall be paid to or retained entirely by
CyberHeart.  This Section 10.2.2.2 shall
not give CyberHeart the right to enforce the Accuray Patents against any
Third-Party Infringement outside the CyberHeart Field.

10.2.3              Enforcement of
CyberHeart Patents.

10.2.3.1            by CyberHeart.  Subject to Section 10.2.3.2, CyberHeart shall
have the first right, but not the obligation, to file and pursue any suit or
action for any Third-Party Infringement of the CyberHeart Patents, including
without limitation in the Accuray Field, and CyberHeart shall not, absent
Accuray’s prior written permission, enter into any settlement or other
arrangement which grants a license or freedom to operate (including without
limitation by way of a covenant not to sue) to any third party under the
CyberHeart Patents which would infringe upon or violate Accuray’s exclusivity
under this Agreement or that otherwise is for any activities in or for the
Accuray Field.   Unless Accuray and
CyberHeart otherwise agree, any amount recovered in any such suit or action,
whether by judgment or settlement, shall be paid to and retained by CyberHeart,
unless the Third-Party Infringement was in the Accuray Field.  For Third-Party Infringements in the Accuray
Field, CyberHeart shall be reimbursed out of CyberHeart’s own recovery
CyberHeart’s reasonable expenses (including without limitation attorney’s fees)
and for any payments made to Accuray for any reasonable expenses incurred by
Accuray in providing any assistance and cooperation requested by and provided
to CyberHeart in connection with such suit or action. Any remaining amount
shall be allocated fifty percent (50%) to CyberHeart and fifty percent (50%) to
Accuray.

10.2.3.2            by Accuray.  In the event CyberHeart (i) has not filed a
suit or action with respect to a Third-Party Infringement of CyberHeart Patents
in the Accuray Field within ninety (90) days of learning of such Third-Party
Infringement, (ii) ceases to use diligent efforts with respect to such suit or
action, or (iii) provides written notice to Accuray of its refusal to file or
pursue such suit or action, then, upon Accuray’s prior written notice, Accuray
shall have the right, but not the obligation, to bring any appropriate suit or
action to enforce any such CyberHeart Patents. Notwithstanding the foregoing,
Accuray shall not have such right even if CyberHeart does not file or pursue a
suit or action under all patent claims that may be infringed, (i) if CyberHeart
has filed during such ninety (90) day period, and continues to use Reasonable
Commercial Efforts to pursue a suit or action to enforce the CyberHeart
Patents, under some of such patent claims, that is reasonably anticipated by CyberHeart
to terminate such 

 34
 

Third-Party Infringement, or (ii) if
CyberHeart reasonably determines filing a suit or action would materially harm
its business. If Accuray undertakes such a suit or action, CyberHeart shall
reasonably join as a party to such suit or action, take such other actions as
are necessary for standing or to otherwise bring or pursue such action, and
CyberHeart shall reasonably cooperate with Accuray, including without
limitation executing all papers, causing its employees to testify when
requested, making available relevant records, papers, information, samples,
specimens, and the like, and performing such other acts as may be reasonably
requested by Accuray.  Accuray shall bear
the reasonable expenses incurred by CyberHeart in providing assistance and
cooperation pursuant to this Section 10.2.3.2 as requested by Accuray.  CyberHeart may, at its expense, be
represented by counsel of its choice. 
Unless Accuray and CyberHeart otherwise agree, any amount recovered in
such suit or action, whether by judgment or settlement, after deducting Accuray’s
reasonable expenses (including without limitation any attorneys’ fees) and
subject to payment to CyberHeart of any reasonable expenses incurred by
CyberHeart in providing assistance and cooperation as requested by Accuray,
shall be paid to or retained entirely by Accuray.  This Section 10.2.3.2 shall not give Accuray
the right to enforce any CyberHeart Patent against any Third-Party Infringement
in the CyberHeart Field.

11.           TERM
AND TERMINATION.

11.1         Term.  This Agreement shall become effective on the
Effective Date and shall remain in effect until the last to expire of the
Accuray Patents unless earlier terminated in accordance with Section 11.2,
Section 11.3, or Section 11.4 (the “Term”). This Agreement shall not be
terminated, except in accordance with Section 11.2, Section 11.3, or Section
11.4.

11.2         Termination for Cause.  In the event of a material breach of this
Agreement, the non-breaching Party shall be entitled to terminate this
Agreement by written notice to the breaching Party, if such breach is not cured
within ninety (90) days after written notice is given by the non-breaching
Party to the breaching Party specifying the breach.  However, if the Party alleged to be in breach
of this Agreement disputes such breach and submits such dispute for dispute
resolution pursuant to Article 16 within such ninety (90) day period, the
non-breaching Party shall not have the right to terminate this Agreement unless
the dispute resolution provisions of Article 16 result in a determination that
this Agreement was materially breached by the other Party, and the breaching
Party fails to cure such breach within ninety (90) days after such
determination.

11.3         Accuray’s Right to
Terminate.  All terminations under
this Section 11.3 shall be subject to dispute resolution prior to termination
in the same manner as terminations for breach, as set forth in the last
sentence of Section 11.2.

11.3.1      For CyberHeart’s Failure
to Receive Funding.  Accuray shall
have the right to terminate this Agreement upon ninety (90) days’ prior written
notice in the event CyberHeart has not received a total of *** in financing by
the second (2nd)
anniversary of the Effective Date.

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

 35

11.3.2      For CyberHeart’s Failure to Include Accuray
Technology in CyberHeart Products. 
Accuray shall have the right to terminate this Agreement immediately if
CyberHeart or its designee as described in Section 2.2.8.2,  (A) develops and/or markets a  CyberHeart Product that does not contain
Accuray Technology and that is not covered by an Accuray Patent or (B) does not
develop and does not market a product that (i) does contain Accuray Technology,
(ii) is covered by an Accuray Patent (iii) is for use with a CyberKnife System,
or (iv) is for use with a CyberHeart System that derives from a CyberKnife
System and uses Accuray Technology or is covered by an Accuray Patent.

11.3.3      For CyberHeart’s Failure to use Reasonable
Commercial Efforts to Develop and Sell CyberHeart Products.  If CyberHeart (including, for clarity, any
successor or assignee of CyberHeart in connection with a Change of Control)
fails to use Reasonable Commercial Efforts to develop and/or sell CyberHeart
Products that (i) incorporate Accuray Technology, (ii) are covered by Accuray
Patents or (iii) are for use with CyberKnife Systems, Accuray may terminate
this Agreement upon sixty (60) days’ prior written notice.

11.4         Termination for Convenience by CyberHeart.
CyberHeart shall have the right to terminate this Agreement, in whole or in
part, for convenience upon thirty (30) days’ prior written notice to Accuray.

11.5         Effect of Termination or Expiration.

11.5.1              Generally. In the event of
termination of this Agreement by either Party pursuant to Section 11.2, Section
11.3, or Section 11.4 or expiration of this Agreement pursuant to Section 11.1,
all rights and licenses granted by one Party to the other pursuant to Article
2, shall continue in full force and effect, provided that:

11.5.1.1            no rights or licenses to CyberHeart shall
survive, or have further force or effect, if the Agreement is terminated by
CyberHeart under Section 11.4;

11.5.1.2            no rights or licenses to CyberHeart shall
survive, or have further force or effect, if the Agreement is terminated by
Accuray under Section 11.3;

11.5.1.3            no rights or licenses to CyberHeart shall
survive, or have further force or effect, if the Agreement is terminated by
Accuray (A) under Section 11.2 due to CyberHeart’s (i) material and negligent
or willful breach of any provision in Article 2, (ii) breach for failure to
meet its diligence obligations under Article 7, (iii) negligent or willful
breach of its obligations under Section 9.1.2, (iv) material and negligent or
willful breach of it obligations under Article 14, (v) material breach of its
obligations under Section 15.3, (vi) breach of its obligations under Section
17.2, , or (vii) for breach of Section 11.7 if CyberHeart commences discussions
through the exchange of Confidential Information with an Accuray Competitor or
enters into a Change of Control transaction with an Accuray Competitor or (B)
for cause under the Manufacturing and Supply Agreement. Notwithstanding the
foregoing, with respect to termination for any non-willful breach of any of
Articles 2 and 14, Sections 9.1.2 and 17.2, or the Manufacturing and Supply
Agreement, this Section 11.5.1.3 shall only apply if 

 36
 

Accuray has no adequate and reasonable remedy in the absence of
termination of this Agreement.

11.5.1.4            subject to Section 11.5.1.3, if the
Agreement is terminated by Accuray, CyberHeart’s licenses under Article 2, to
the extent any such rights survive, 
shall not include any license to any Accuray Technology (or any
Intellectual Property Rights) that are conceived or created by Accuray after
the effective date of such termination.

11.5.1.5            if the Agreement is terminated by
CyberHeart pursuant to Section 11.2, Accuray’s rights and licenses under this
Agreement shall not include any right or license to any CyberHeart Technology
(or any Intellectual Property Rights) that are conceived or created after the
effective date of termination; and, for any material breach that is due to
Accuray’s negligent or willful conduct, and for which CyberHeart has no other
adequate and reasonable remedy, Accuray’s license in Section 2.2.6 shall
terminate in its entirety.

11.5.1.6            Notwithstanding the foregoing, all of
CyberHeart’s rights, licenses, and exclusivity in this Agreement shall survive
with respect to all Accuray Improvements, and Intellectual Property Rights that
CyberHeart has agreed to assign to Accuray pursuant to Section 9.1.2,
regardless of the reason for termination or expiration.

11.5.1.7            In addition, each Party shall be entitled
to retain, and shall be deemed to have a right and license to continue to use
and disclose in accordance with this Agreement, to the same extent then
existing, any Confidential Information of the other Party disclosed during the
Term to the extent such Party’s rights and licenses under the Accuray
Technology (in the case of rights and licenses to CyberHeart) or under the
CyberHeart Technology (in the case of rights and licenses to Accuray) survive.
Upon each Party’s decision to terminate use and disclosure of such Confidential
Information of the other Party, such Party shall return, or at the instruction
of the disclosing Party, destroy, the disclosing Party’s retained
Confidential Information.

11.5.1.8            For avoidance of doubt, no termination or
expiration of this Agreement shall be deemed to terminate or otherwise extinguish
any rights of any customers of a CyberKnife System under their then current
contracts for use of such CyberKnife System, and no termination or expiration
of this Agreement shall terminate or otherwise affect or extinguish the rights
or licenses of any customer for any CyberHeart Products.  If a customer of a CyberHeart Product
materially breaches its user agreement with CyberHeart, or any agreement with
Accuray related to such CyberHeart Product, through no fault of CyberHeart,
whether by inducement or otherwise, then any licenses to CyberHeart under this
Agreement shall not be extinguished due to such customer breach.

11.5.1.9            No termination by any Party or the
expiration of this Agreement shall relieve either Party of any liability
accrued hereunder prior to its termination.

11.5.2              Development Services.  Unless otherwise instructed by CyberHeart,
upon the termination of this Agreement or any relevant Statement of Work,
Accuray shall:

 37
 

11.5.2.1            immediately cease all performance of the
terminated Development Services and furnish to CyberHeart all Deliverables and
work in progress; and

11.5.2.2            within thirty (30) days, provide to
CyberHeart a full accounting itemizing all Development Services performed prior
to termination, for which Accuray has not yet received payment and is entitled
to receive payment.

11.5.2.3            In the event CyberHeart instructs Accuray
to continue to perform any Development Services pursuant to any outstanding
purchase order under any Statement of Work, all relevant provisions applicable
to such performance shall continue to survive as necessary for Accuray to
fulfill such obligations.

11.5.3              Termination Pursuant to Section 11.4.  If CyberHeart terminates this Agreement
pursuant to Section 11.4, CyberHeart shall compensate Accuray for all costs
incurred to wind down any ongoing activities (including without limitation any
Development Services or manufacturing, installation, or maintenance services)
being performed by Accuray as of the effective date of such termination and
reasonably incurred by Accuray thereafter, and CyberHeart shall have no right
to enter into agreements or arrangements with Accuray Competitors for a period
of two (2) years following such termination.

11.6         Survival.  The following provisions shall survive any
termination or expiration of this Agreement: 
(i) Articles 1, 5 (only with respect to activities occurring or
commenced during the Term), 8 (solely for amounts owed during the Term but not
paid), 9, 10 (but only to the extent rights and licenses under Article 2 survive
pursuant to Section 11.5), 12, 13, 14, 16, and 17, (ii) Sections
2.2.7.1 (if any of CyberHeart’s licenses under Article 2 survive pursuant to
Section 11.5), 3.5 (but only upon termination by CyberHeart under Section
11.2), 3.9 (for contractors used in the exercise of any of Accuray’s surviving
rights), 3.10 (for a
period of five years after termination or expiration, or such longer period as
such records are required for a government filing), 4.3 (for a final report);
6.1, 6.2 and 6.4 (but, as to Sections 6.1, 6.2, and 6.4, only if any of
CyberHeart’s license rights under Article 2 survive pursuant to Section 11.5,
other than any rights that survive under Section 11.5.1.6), 6.5 and 6.6 (if any
of CyberHeart’s licenses under Article 2 survive pursuant to Section 11.5,
other than any rights that survive under Section 11.5.1.6), 11.5, 11.6, 15.1
(but only to the extent licenses under Article 2 survive pursuant to Section
11.5), 15.2, 15.3, 15.4, 15.5, and 15.6 (but only to the extent CyberHeart’s
licenses under Article 2 survive pursuant to Section 11.5) and (iii) the
Manufacturing and Supply Agreement (but only to the extent CyberHeart’s
licenses under Article 2 survive pursuant to Section 11.5). For the avoidance
of doubt, in any case where the only surviving rights of CyberHeart under this
Agreement are those set forth in Section 11.5.1.6, the Manufacturing and Supply
Agreement will terminate in its entirety. Except as set forth in Section 11.5
and 11.6, all other terms and conditions of this Agreement shall terminate and
have no further force or effect, upon any termination or expiration of this
Agreement.

11.7         Change of Control.   In the event of a proposed Change of Control
of CyberHeart, whether initiated by CyberHeart or a third party, CyberHeart
shall notify Accuray that CyberHeart is considering a Change of Control at any
time prior to closing of the Change of Control. Notwithstanding the above or
anything else in this Agreement, CyberHeart shall not 

 38
 

commence (defined
as the exchange of Confidential Information) or enter into any Change of Control transaction with
any Accuray Competitor.

12.           BANKRUPTCY.

12.1         Bankruptcy.  All rights and licenses granted to each Party
pursuant to this Agreement are, and shall otherwise be deemed to be, for
purposes of Section 365(n) of Title 11 of the U.S. Code (the “Bankruptcy
Code”), licenses to rights of “intellectual property” as such term is used
thereunder.  Notwithstanding any
provision contained herein to the contrary, if either Party is under any
proceeding under the Bankruptcy Code and the trustee in bankruptcy of such
Party, or such Party as a debtor in possession, rightfully elects to reject
this Agreement, the other may, pursuant to Sections 365(n)(1) and (2) of the
Bankruptcy Code, retain any and all of their respective rights hereunder, to
the maximum extent permitted by law, subject to making the payments specified
herein, if any.

13.           LIMITATION OF
LIABILITY.

13.1         EXCEPT FOR EITHER PARTY’S BREACH OF THE
REPRESENTATIONS AND WARRANTIES UNDER SECTION 15.1, BREACH OF CONFIDENTIALITY
OBLIGATIONS, IN NO EVENT SHALL EITHER PARTY HAVE ANY LIABILITY FOR ANY
INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES,
HOWEVER CAUSED, AND ON ANY THEORY OF LIABILITY, WHETHER FOR BREACH OF CONTRACT,
TORT (INCLUDING WITHOUT LIMITATION NEGLIGENCE) OR OTHERWISE, ARISING OUT OF OR
RELATED TO THIS AGREEMENT, INCLUDING WITHOUT LIMITATION LOSS OF ANTICIPATED
PROFITS, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.  NOTWITHSTANDING THIS ARTICLE
13, NOTHING IN THIS AGREEMENT SHALL EXCLUDE LIABILITY TO THE EXTENT THAT SUCH
LIABILITY MAY NOT BE EXCLUDED OR LIMITED BY APPLICABLE LAW.

14.           CONFIDENTIALITY.

14.1         Confidential Information.  “Confidential Information” shall mean
any trade secrets, confidential data or other confidential information that is
disclosed by one Party (“Disclosing Party”) to the other Party (“Receiving
Party”), which (i) if disclosed in writing, is marked “Confidential,” “Proprietary,”
or in some other manner to indicate its confidential nature, (ii) if
disclosed orally, is designated as confidential at the time of disclosure and
confirmed in writing as confidential within thirty (30) days after its oral
disclosure, which confirmation is marked in a manner to indicate its confidential
nature and delivered to the Receiving Party within such thirty (30) day period,
or (iii) given the contents thereof or circumstances surrounding its
disclosure, would reasonably be considered by an objective third party to be
the other Party’s Confidential Information.

 39
 

14.2         Exclusions.  Notwithstanding the foregoing, Confidential
Information shall not include any information which the Receiving Party can
establish (i) was publicly known or made available in the public domain
prior to the time of disclosure by the Disclosing Party; (ii) becomes
publicly known or made available after disclosure to the Receiving Party
through no action or inaction of the Receiving Party; (iii) is in the
possession of the Receiving Party, without confidentiality restrictions, at the
time of disclosure by the Disclosing Party as shown by the Receiving Party’s
files and records immediately prior to the time of disclosure;
(iv) disclosed to the Receiving Party without restriction by a third party
who had a right to disclose and was not under an obligation of confidence to
the Disclosing Party; or (v) is independently developed by the Receiving
Party without use of or reference to the Confidential Information of the
Disclosing Party.

14.3         Non-Use and Non-Disclosure.  Each Party agrees to use the Confidential
Information of the other Party solely for the purposes of exercising its rights
or performing its obligations under this Agreement.  Each Party further agrees not to disclose any
Confidential Information of the other Party to any third parties other than
those third parties who are bound, prior to receiving any Confidential
Information, by confidentiality obligations at least as protective as those in
this Agreement.

14.4         Maintenance of Confidentiality.  Each Party agrees that it shall take
reasonable measures to protect the secrecy of and avoid unauthorized disclosure
and unauthorized use of the Confidential Information of the other Party.  Without limiting the foregoing, each Party shall
take at least those measures that such Party takes to protect its own
confidential information of a similar nature, but in no event less than
reasonable measures.  Each Party shall
reproduce the other Party’s proprietary rights notices on all copies, in the
same manner in which such notices were set forth in or on the original.  Each Party shall immediately notify the other
Party in the event of any unauthorized use or disclosure of the Confidential
Information of the Disclosing Party.

14.5         Non-Disclosure of Terms.  Each Party agrees not to disclose to any
third party the terms of this Agreement (including without limitation all
Exhibits) without the prior written consent of the other Party, except to such
Party’s attorneys, advisors, investors, potential investors, and others on a
need to know basis under circumstances that reasonably ensure the
confidentiality thereof, or in connection with financing activities, securities
filings, mergers, acquisitions, or the like.

14.6         Permitted Disclosures.  Nothing in this Agreement shall be deemed to prohibit
the Receiving Party from disclosing any Confidential Information to the extent
(i) required by law or (ii) pursuant to the written consent of the
Disclosing Party; provided, however, that in the event of such
requirement, prior to disclosing any Confidential Information, the Receiving
Party shall notify the Disclosing Party of the scope and source of such legal
requirement and shall, to the extent reasonably possible, give the Disclosing
Party the opportunity to challenge the need to disclose and/or limit the scope
of disclosed information.

 40
 

15.           REPRESENTATIONS,
WARRANTIES, INDEMNIFICATION, AND INSURANCE.

15.1         Representations and
Warranties.

15.1.1              General.  Each Party hereby represents and warrants
that it has the full right and authority to enter into this Agreement; that the
consummation of the transactions contemplated hereunder do not violate or
breach the terms of any other agreement with any third party; and it has not
previously made, and during the Term shall not make, any commitment or grant or
authorization of rights which are in conflict in any material way with the
rights, licenses, or exclusivity granted to the other Party herein.

15.1.2              Intellectual Property Rights.  Accuray hereby represents and warrants that
(i) it is the sole and exclusive owner of the Technology set forth in Exhibit
B and the Patents set forth in Exhibit B, and has the right with
respect thereto to grant the exclusivity, rights, and licenses thereto to
CyberHeart as set forth herein; (ii) it has not received any written notice
from any third party that the CyberKnife System, component thereof, or method
of making or manufacturing any of the foregoing infringes or misappropriates
the rights of any third party; (iii) it is not aware of any facts or
circumstances providing the basis for any third party making any offer or
delivering any infringement notice under (ii), above; (iv) upon execution of
this Agreement by both Parties, to its actual knowledge, the rights and
licenses granted by Accuray to CyberHeart in this Agreement shall be fully
valid and enforceable in accordance with their terms, including without
limitation with respect to the Intellectual Property Rights listed in Exhibit
B; (v) it shall not deliver any Technology to CyberHeart under this
Agreement unless, to its actual knowledge, it has the right and license to
authorize CyberHeart to exercise its rights and licenses using such Technology;
and (vi) it is not aware of any Patents that are necessary or useful for
CyberHeart Products or CyberKnife Components in the CyberHeart Field that are
owned by Accuray, its Affiliates, other licensees, or contractors, that are not
licensed to CyberHeart as Accuray Patents under this Agreement.

15.2         Accuray Indemnification.

15.2.1              Scope.  Accuray shall:  (i) at its sole option and expense, defend
CyberHeart, its Affiliates, and their respective agents, employees, and
officers (each, a “CyberHeart Indemnitee”) against, or settle, any suit,
complaint, demand, or action by a third party against any CyberHeart Indemnitee
arising out of (a) a claim by a third party that (1) the Development Services
performed by Accuray, (2) the use, disclosure or other exploitation by or under
authority of either Party of the Deliverables or Technology delivered by
Accuray hereunder (including without limitation as part of any CyberHeart
Product), or (3) any use, disclosure or exploitation of any CyberHeart Patents
or CyberHeart Technology, by Accuray or any party receiving rights thereunder
directly or indirectly from Accuray, other than as necessary to perform the
Development Services on behalf of CyberHeart in accordance with a Statement of
Work then in effect, violate, infringe, or otherwise misappropriate the
Intellectual Property Rights of a third party (each of (a)(1)–(3), an “Accuray
Infringement Claim”), (b) any breach of its representations and
warranties under Section 15.1 or under the Manufacture and Supply Agreement,
(c) the acts or omissions of any Affiliate or Subcontractor used to exercise
Accuray’s rights or fulfill its obligations hereunder or under the
Manufacturing and Supply 

 41
 

Agreement or any negligent or reckless acts
or omissions, or willful misconduct, of Accuray or its Affiliates, or (d) any
disclosure, use or exploitation of any CyberHeart Technology or CyberHeart
Patents by Accuray or any party receiving rights or access thereto directly or
indirectly (only to the extent authorized in writing) from Accuray, other than
as necessary to perform the Development Services on behalf of CyberHeart under
this Agreement in accordance with a Statement of Work then in effect (other
than Infringement Claims) ((b), (c), and (d) referred to as an “Accuray
General Claim,” and, together with an Accuray Infringement Claim, each an “Accuray
Claim”) and (ii) indemnify each CyberHeart Indemnitee against any and all
damages, cost, expenses, losses, and liabilities, including without limitation
reasonable attorneys’ fees, which are awarded in connection with, or which are
included in any settlement amounts of, any such Accuray Claim; provided, however,
that Accuray indemnification obligations shall not apply to the extent that (1)
such Accuray Claim arises out of any breach by CyberHeart of any of its
representations, warranties, or covenants in this Agreement, or (2) such
Accuray Claim arises out of the negligence, recklessness or willful misconduct
of CyberHeart or its Affiliate.

15.2.2              Requirements.  Accuray’s indemnity obligations above shall
be relieved to the extent that CyberHeart fails to (i) give Accuray
written notice thereof and such failure prejudices Accuray’s ability to defend
the Accuray Claim or (ii) provide Accuray, at Accuray’s expense, with necessary
information, cooperation, and assistance in connection with such Accuray
Claim.  CyberHeart shall have the right
to participate, at its option and at its own expense, in any such Accuray
Claim.  No settlement of an Accuray
Infringement Claim that involves a remedy other than payment of money by
Accuray shall be agreed to and entered into without the consent of CyberHeart,
whose consent shall not be unreasonably withheld or delayed.  Accuray
shall not be responsible under this Section 15.2 for any cost, expenses, or
settlements incurred without Accuray’s prior written consent, such consent not
to be unreasonably withheld or delayed.

15.2.3              Remedies.  Without limiting the indemnification
obligation set forth in Section 15.2.1, if it is determined, or if Accuray
reasonably believes, that the Deliverables or any Accuray Technology, or any
portion thereof, infringes any third party Intellectual Property Rights, then
Accuray shall, at its option and expense: 
(i) procure for CyberHeart the right to continue using such
Deliverable or Accuray Technology, or portion thereof, in accordance with this
Agreement; (ii) replace the relevant Deliverable or Accuray Technology or
portion thereof with a substantially similar non-infringing alternative; or
(iii) modify such Deliverable or Accuray Technology with an at least
functionally equivalent modification so that CyberHeart’s use becomes
non-infringing.

15.2.4              Exclusions.  Except for Accuray Claims arising out of the
use, disclosure, or other exploitation of CyberHeart Patents or CyberHeart
Technology other than as necessary to perform the Development Services on
behalf of CyberHeart under this Agreement in accordance with a Statement of
Work then in effect, Accuray shall have no liability under Section 15.2.1
for any Accuray Claim to the extent the Accuray Claim is solely and exclusively
based on (i) any Technology invented by CyberHeart, and not by Accuray or
its Affiliates, that is incorporated in any Deliverable or used in performance
of the relevant Development Services or 

 42
 

(ii) any portion of any Technology
invented by CyberHeart, and not by Accuray or its Affiliates, that is not based
on, and which does not incorporate, any Deliverable or Accuray Technology, or
any portion thereof.

15.3         CyberHeart Indemnification.

15.3.1              Scope.  CyberHeart shall:  (i) at its sole option and expense, defend
Accuray, its Affiliates, and their respective agents, employees, and officers
(each an “Accuray Indemnitee”) against, or settle, any suit, complaint,
demand, or action by a third party (a “Claim”) against any Accuray Indemnitee
arising out of (a) a claim by a third party that any Technology conceived or
created by CyberHeart, or on  behalf of
CyberHeart by Accuray or its Affiliates, and not Accuray Technology conceived
or created by Accuray or its Affiliates, and incorporated in any Deliverable or
used in performance of the relevant Development Services, or any portion of any
such Technology not based on, and which does not incorporate any Accuray
Technology, as delivered to Accuray hereunder violates, infringes or otherwise
misappropriates the Intellectual Property Rights of a third party (“CyberHeart
Infringement Claim”), (b) the 
disclosure, use, or exploitation of any Accuray Technology or Accuray
Patents outside of the CyberHeart Field by CyberHeart or any party receiving
rights thereunder directly or indirectly from CyberHeart, (c) any use of a
CyberHeart Product in the CyberHeart Field, or (d) any breach of its
representations and warranties under Section 15.1 or the negligence,
recklessness, or willful misconduct of CyberHeart or its Affiliate (each of
(a), (b), (c), and (d), a “CyberHeart Claim”) and (ii) indemnify each
Accuray Indemnitee against any and all damages, cost, expenses, losses, and
liabilities, including without limitation reasonable attorneys’ fees, which are
awarded in connection with, or which are included in any settlement amounts of,
any such CyberHeart Claim; provided, however, that CyberHeart’s indemnification
obligations shall not apply to the extent that (1) such CyberHeart Claim arises
out of any breach by Accuray of any of its representations, warranties, or
covenants in this Agreement or the Manufacturing and Supply Agreement, or (2)
such CyberHeart Claim arises out of the negligence, recklessness or willful
misconduct of Accuray, its Affiliates, or otherwise out of the acts or
omissions of Affiliates and contractors for which Accuray is responsible in
Section 15.1.

15.3.2              Requirements.  CyberHeart’s indemnity obligations above
shall be relieved to the extent that any Accuray Indemnitee fails to
(i) give CyberHeart written notice thereof and such failure prejudices
CyberHeart’s ability to defend the CyberHeart Claim; or (ii) provide
CyberHeart, at CyberHeart’s expense, with information, cooperation, and
assistance in connection with such CyberHeart Claim.  Any Accuray Indemnitee shall have the right
to participate, at its option and at its own expense, in any such CyberHeart
Claim.  No settlement of a CyberHeart Infringement
Claim that involves a remedy other than payment of money by CyberHeart shall be
agreed to and entered into without the consent of Accuray, whose consent shall
not be unreasonably withheld or delayed. 
CyberHeart shall not be responsible under this Section 15.3 for any
cost, expenses, or settlements incurred without CyberHeart’s prior written
consent, such consent not to be unreasonably withheld or delayed.

15.3.3              Remedies.  Without limiting the indemnification
obligation set forth in Section 15.3, if it is determined, or if CyberHeart
reasonably believes, that any CyberHeart Technology, or any portion thereof,
infringes any third party Intellectual Property 

 43
 

Rights, then CyberHeart shall have the right,
at its option and expense:  (i) to
procure for Accuray the right to continue using such CyberHeart Technology, or
portion thereof, sufficient to perform the Development Services under this
Agreement; (ii) replace the relevant CyberHeart Technology or portion thereof
with a substantially similar non-infringing alternative sufficient to perform
the Development Services; or (iii) modify such CyberHeart Technology with an at
least functionally equivalent modification so that Accuray’s use in performing
the Development Services becomes non-infringing.

15.3.4              Exclusions.  CyberHeart shall have no liability under
Section 15.3.1 for any CyberHeart Claim to the extent that the CyberHeart
Claim is (i) a CyberHeart Infringement Claim against the CyberHeart
Technology that is not required in order to perform the Development Services on
behalf of CyberHeart under this Agreement in accordance with a Statement of
Work then in effect and incorporated thereby by Accuray without request from
CyberHeart, unless CyberHeart accepts such incorporation, whether passively or
actively, in which case this Section 15.3.4 will not apply; (ii) results
from any portion of any Technology to the extent conceived or created by or on
behalf of Accuray or its Affiliates and not by CyberHeart or its Affiliates; or
(iii) results from any grossly negligent or willful material failure of Accuray
or its Affiliates, or their contractors or suppliers, to comply with the terms
of this Agreement or the Manufacturing and Supply Agreement, any manufacture or
supply by or under authority of Accuray not in accordance with Applicable Law
or any regulatory approval, or any negligent or reckless acts or omissions, or
willful misconduct, of Accuray or its Affiliate or their contractors or
suppliers.

15.4         SOLE REMEDY.  SECTIONS 15.2 AND 15.3 STATE EACH PARTY’S
SOLE AND EXCLUSIVE OBLIGATION AND EACH PARTY’S SOLE AND EXCLUSIVE REMEDY FOR
ANY ACCURAY CLAIMS THAT ARE THE SUBJECT OF SECTION 15.2 OR ANY CYBERHEART
CLAIMS THAT ARE THE SUBJECT OF SECTION 15.3.

15.5         Insurance.  CyberHeart shall procure and maintain
insurance, including without limitation product liability and other appropriate
insurance, adequate to cover its obligations hereunder in a manner which is
consistent with normal business practices of prudent companies similarly
situated at all times during which any CyberHeart Product is being clinically
tested in human subjects or commercially distributed or sold. For clarity, such
insurance shall not be construed to create a limit of CyberHeart’s liability
with respect to its indemnification obligations under this Article 15.  CyberHeart shall provide Accuray with written
evidence of such insurance upon request. 
CyberHeart shall provide Accuray with written notice at least thirty (30)
days prior to the cancellation, non-renewal or material change in such
insurance or self-insurance which materially adversely affects the rights of
Accuray hereunder.

15.6         WARRANTY DISCLAIMER. EXCEPT FOR THE
REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE
MANUFACTURE AND SUPPLY AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS,
WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED, BY STATUTE, OR OTHERWISE, IN
CONNECTION WITH THIS AGREEMENT AND THE MANUFACTURE AND SUPPLY AGREEMENT, AND
EACH PARTY SPECIFICALLY DISCLAIMS ALL OTHER REPRESENTATIONS AND 

 44
 

WARRANTIES, INCLUDING WITHOUT LIMITATION ALL IMPLIED WARRANTIES OF
FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, AND NONINFRINGEMENT.

16.           DISPUTE RESOLUTION.

16.1         Any dispute between the Parties regarding
interpretation of or breach of a term or condition of this Agreement shall
first be discussed between the parties, either among the JSC (as provided in
Section 4.1.4) or by the Project Manger and the CyberHeart Liaison in good faith
in an effort to achieve a reasonable resolution.  If the dispute is not resolved within thirty
(30) days by the JSC or Project Manager and CyberHeart Liaison, as the case may
be, then upon either Party’s election, shall be submitted to the CEOs of both
Parties for resolution.  If one or both
CEOs of the Parties are on the JSC, or if thirty (30) days after submission of
a dispute to the CEOs, no resolution has been made, then such dispute (i.e., a
dispute within the scope of this Section 16.1) shall be submitted to a
committee of equal independent board members of each Party for resolution.  If no resolution is reached within sixty (60)
days after either Party notified the other of a dispute, then each Party shall
have the right to have the matter resolved in accordance with Section 16.2.

16.2         With respect to disputes regarding
interpretation of or breach of a term or condition of this Agreement only, or
the reasonableness of any term or condition of a Manufacturing and Supply
Agreement or of any term or condition of an Installation Agreement or Service
Agreement upon failure to resolve any such dispute under Section 16.1, either
Party may thereafter seek to resolve the dispute through binding arbitration in
accordance with the Rules of Arbitration of the American Arbitration
Association (“AAA”) by one (1) arbitrator jointly selected by the
Parties and qualified to settle disputes in the medical device industry and
appointed in accordance with such rules and applying a Reasonable Commercial
Efforts standard.  If the arbitrator has
not been agreed upon by the parties within ten (10) business days after either
Party’s request for arbitration, the arbitrator shall be selected in accordance
with the Rules of the AAA (or if the Rules to not provide selection procedures,
by the chief executive of the AAA located in New York).  The place of arbitration shall be Santa Clara
County, California.  Any decision by the
arbitrator shall be final and binding upon the Parties and may be entered as a
final judgment in any court of competent jurisdiction.  The costs of such arbitration shall be shared
equally by the Parties, and each Party shall bear its own expenses in
connection with the arbitration.

16.3         For clarity, this Article 16 shall not apply
with respect to any research, development, design, marketing, pricing,
commercialization, or other decision making concerning CyberKnife Systems or
CyberHeart Products.

17.           GENERAL PROVISIONS.

17.1         Notices.  All notices called for under this Agreement
shall be made in writing and shall be sent by personal delivery, reputable
overnight courier service, or registered 

 45
 

or certified mail, return receipt requested, addressed to the other
Party at the address set forth in the first paragraph of this Agreement.  The date of such notice shall be deemed to be
the day it is delivered, if hand delivered, or five (5) days after deposit, if
mailed.

17.2         Assignment.  This Agreement, and the rights and
obligations hereunder, shall not be assigned or transferred in whole by either
Party without the prior written consent of the other Party, which consent shall
not be unreasonably withheld, provided that either Party may assign this
agreement in whole to any Affiliate or to any successor in interest (other than
to an Accuray Competitor as to CyberHeart) to all or substantially all of the
business or assets of such Party to which this Agreement pertains, whether by
operation of law, merger, purchase, or otherwise.  Any attempted assignment in violation of the
foregoing shall be null and void and of no effect.  Subject to the foregoing, this Agreement
shall be binding and inure to the benefit of the respective Parties and their
successors and permitted assigns, and the name of the Party appearing herein
shall be deemed to change to the names of such Party’s successors and permitted
assigns upon such a transfer.

17.3         Non-Solicitation.   Neither Party shall solicit during the Term
and until the IP Cutoff Date any of the employees of the other Party to this
Agreement without the prior consent of the President or Chief Executive Officer
of the other Party.  Notwithstanding
anything in this 17.3 to the contrary, the Parties hereby acknowledge and agree
that each Party shall not be restricted from hiring any employee of the other
Party if such employee seeks employment and was not initially solicited or
induced.

17.4       Governing Law.  This Agreement shall be governed by, and
construed and interpreted in accordance with, the laws of the State of
California, without reference to any principles of conflicts of law that would
result in the application of the laws of any State other than the State of
California.  Except as set forth in
Article 16, any and all disputes arising under or in connection with this
Agreement shall be submitted exclusively in the state or federal courts located
in Santa Clara County, California, the personal jurisdiction of which each of
the Parties hereby irrevocably submits.

17.5         Severability.  If any term of this Agreement is held to be
invalid or unenforceable for any reason, the remainder of the provisions shall
continue in full force and effect, and the Parties shall substitute a valid
provision with the same intent and economic effect as nearly as possible.

17.6         Non-Waiver.  The failure of either Party at any time to
require performance by the other Party of any provision hereof shall not affect
in any way, or act as a waiver of, the right to require the other Party to
perform in accordance with this Agreement at any other time, nor shall the
waiver of either Party of a breach of a provision of this Agreement be held or
taken to be a waiver of the provision itself.

17.7         Relationship of Parties.  Nothing in this Agreement shall be construed
to create a relationship of employer and employee, principal and agent, joint
venture, partnership or association between the Parties, and neither Party
shall have the power to obligate or bind the other in any manner whatsoever.

 46
 

17.8         Interpretation.  This Agreement is to be deemed to have been
drafted jointly by the Parties and any uncertainty or ambiguity shall not be
construed for or against either Party based on attribution of drafting to
either Party.  The captions and headings
to this Agreement are for convenience only, and are to be of no force or effect
in construing or interpreting any of the provisions of this Agreement.  Unless specified to the contrary, references
to Articles, Sections or Exhibits mean the particular Articles,
Sections or Exhibits to this Agreement and references to this Agreement
include all Exhibits hereto.  Unless
context otherwise clearly requires, whenever used in this Agreement, the words “include”
or “including” shall be construed as incorporating, also, “but not limited to”
or “without limitation.”

17.9         Headings.  The paragraph headings appearing in this
Agreement are inserted only as a matter of convenience and in no way define,
limit, construe or describe the scope or extent of such paragraph, or in any
way affect such agreements.

17.10       Counterparts.  This Agreement may be executed simultaneously
in two or more counterparts, each of which shall be considered an original, but
all of which together shall constitute one and the same instrument.  Faxed signatures shall have the same legal
effect as original signatures.

17.11       Entire Agreement. This Agreement contains
the Parties’ entire understanding with respect to the matters contained herein
and supersedes all prior oral or written understandings with respect to the
subject matter hereof.  There are no
promises, covenants or undertakings other than those set forth herein, and
neither Party is relying upon any representations or warranties except as set
forth herein.  This Agreement may not be
modified except by a writing signed by both Parties.

IN WITNESS
WHEREOF, the Parties hereto have caused their duly authorized representatives to
execute this Agreement.

[Signature Page Follows]

 47
 

 

	
  ACCURAY, INC.

  	
   

  	
  CYBERHEART, INC.

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Euan S.
  Thomson

  	
   

  	
   

  	
  By: 

  	
  /s/ Patrick J. Maguire

  	
   

  
	
   

  	
   

  	
   

  
	
  Name: Euan S.
  Thomson

  	
   

  	
  Name: Patrick J. Maguire

  
	
   

  	
   

  	
   

  
	
  Title: President
  and CEO

  	
   

  	
  Title: President and CEO

  
							

 

 

	
  By: 

  	
  /s/ Darren J.
  Milliken

  	
   

  
	
   

  
	
  Name: Darren J.
  Milliken

  
	
   

  
	
  Title: Associate
  General Counsel

  

 

 48

Exhibit A

Accuray
Competitors

BrainLAB AG and
Affiliates

Elekta AB and
Affiliates

IBA and Affiliates

Integra Radionics,
Integra LifeSciences Corporation, Radionics and Affiliates

Mitsubishi Heavy
Industries and Affiliates

North American
Scientific and Affiliates

Nucletron and
Affiliates

Philips and
Affiliates

Siemens AG and
Affiliates

Still River
Systems and Affiliates

TomoTherapy
Incorporated and Affiliates

Toshiba and
Affiliates

Varian, Varian
Medical Systems, and Affiliates

View Ray and
Affiliates

Accuray
Competitors shall include (i) any company or other entity that has an implied
or actual contractual relationship with any of the entities listed in this
Exhibit A above for the development, manufacturing, or sale of radiosurgery or
radiotherapy devices in the Accuray Field, (ii) any entity that, after the
Effective Date, sells any products that constitute substitute or otherwise
competitive products of Accuray in the Accuray Field, and (iii) any entity
that, after the Effective Date, falls under the definition in (i) above,
including with entities that fall under the definition of (ii) above.

 A-1

Exhibit
B

Accuray
Patents and Accuray Technology

	
  Accuray

  Reference

  	
   

  	
  Title

  	
   

  	
  Patent

  No.

  	
   

  	
  Status

  
	
  P021

  	
   

  	
  APPARATUS FOR AND METHOD OF PERFORMING STEREOTAXIC
  SURGERY

  	
   

  	
  5,207,223

  	
   

  	
  Issued

  
	
  P030

  	
   

  	
  APPARATUS FOR AND METHOD OF CARRYING OUT STEREOTAXIC
  RADIOSURGERY AND RADIOTHERAPY

  	
   

  	
  5,427,097

  	
   

  	
  Issued

  
	
  P032

  	
   

  	
  APPARATUS AND METHOD FOR COMPENSATING FOR
  RESPIRATORY AND PATIENT MOTION DURING TREATMENT

  	
   

  	
  6,144,875

  	
   

  	
  Issued

  
	
  P032X

  	
   

  	
  FRAMELESS RADIOSURGERY TREATMENT SYSTEM AND METHOD

  	
   

  	
  6,778,850

  	
   

  	
  Issued

  
	
  P032X2

  	
   

  	
  APPARATUS AND METHOD FOR COMPENSATING FOR
  RESPIRATORY AND PATIENT MOTION DURING TREATMENT

  	
   

  	
  6,501,981

  	
   

  	
  Issued

  
	
  P043

  	
   

  	
  APPARATUS AND METHOD FOR RADIOSURGERY

  	
   

  	
  7,171,257

  	
   

  	
  Issued

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

 B-1
 

 

	
  Accuray

  Reference

  	
   

  	
  Title

  	
   

  	
  Patent

  No.

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  ***

  

 

A.                                    Accuray
Technology:

Accuray technology includes technology used in
connection with treatment planning and image guided radiosurgery and precision
radiotherapy for lesions, tumors, and conditions anywhere in the body when
radiation treatment is indicated.

B.

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

 B-2

Exhibit
C

CyberHeart
Patents

[Intentionally
Omitted]

 C-1

Exhibit D

Statement of Work

TBD after the Effecitve Date

 D-1

Exhibit E

Manufacturing
and Supply Agreement

This Manufacturing
and Supply Agreement (the “Manufacturing and Supply Agreement”) is
entered into as of April 16, 2007 (the “Effective Date”) by and between Accuray Incorporated, a Delaware corporation, with its
principal place of business at 1310 Chesapeake Terrace, Sunnyvale, CA 94089 (“Accuray”)
and CyberHeart, Inc., a Delaware
corporation, with its principal place of business at 707 Menlo Ave, Menlo Park,
CA 94025 (“CyberHeart”).  In this
Manufacturing and Supply Agreement, Accuray and CyberHeart may be referred to
each individually as a “Party” or collectively as “Parties.”

WHEREAS,
concurrently, on April 16, 2007, the Parties entered into a License and
Development Agreement (the “License Agreement”) under which each Party
granted the other certain rights and licenses to such Party’s technology and
intellectual property and under which Accuray agreed to provide development
services to CyberHeart; and

WHEREAS, the
License Agreement contemplates that Accuray and CyberHeart will concurrently
enter into this Manufacturing and Supply Agreement to set forth the terms and
conditions under which Accuray will supply CyberHeart Products (as defined in
the License Agreement), or components thereof, to CyberHeart.

NOW THEREFORE, the
Parties hereto, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound
hereby, agree as follows:

A.            Definitions.

1.             All terms defined in
the License Agreement shall have the same meaning when used in this
Manufacturing and Supply Agreement, unless expressly indicated to the contrary.

2.             “Backup
Manufacturing License” shall have the meaning set forth in Section D.1,
below.

3.             “Purchase Order”
shall have the meaning set forth in Section C.1, below.

4.             “Release Notice”
shall mean a notification provided by Accuray to CyberHeart or by CyberHeart to
Accuray, in accordance with Section D.1, below.

5.             “Rolling
Requirement Forecast” shall have the meaning set forth in Section C.2,
below.

6.             “Site Readiness
Guide” shall mean Accuray’s then current checklist for qualification of a
customer end-user site before any CyberHeart Product can be installed at such
site. Such checklist shall include Accuray’s requirements for qualification of
a site for a CyberKnife System.

 E-1
 

7.             “Specifications”
shall mean, with respect to a CyberHeart Product or CyberKnife Component: (i)
the written specification mutually agreed to by the Parties and attached as of
the Effective Date to this Manufacturing and Supply Agreement as Schedule 1, as
amended from time to time; and (ii) other specifications that have been agreed
upon by the Parties in writing.

B.            Exclusivity.  The Parties agree that Accuray shall be the
exclusive supplier of CyberKnife Components; provided, however, that CyberHeart
may manufacture or have manufactured CyberKnife Components solely to the extent
permitted under (i) Section 6.1.2 of the License Agreement in cases where
Accuray does not agree to manufacture a CyberKnife Component, or (ii) a Backup
Manufacturing License granted by Accuray to CyberHeart pursuant to Section D.1,
below.

C.            Manufacture and
Supply by Accuray.

1.             Terms and
Conditions.  If CyberHeart requests
that Accuray manufacture a CyberHeart Product or CyberKnife Component pursuant
to Section 6.1.2 of the License Agreement and Accuray agrees to such request,
then Accuray shall be (i) obligated to supply CyberHeart with such CyberHeart
Product and (ii) manufacture and supply such CyberHeart Product using the same
level of manufacture and supply scheduling priorities that it uses for the
manufacture and supply of CyberKnife Systems. All supply of CyberHeart Products
and CyberKnife Components by Accuray to CyberHeart shall be subject to the
terms and conditions of this Manufacturing and Supply Agreement and any
purchase order issued by CyberHeart will be identical to that attached hereto
as Schedule 2 (the “Purchase Order”). 
ANY TERMS OR CONDITIONS OF A PURCHASE ORDER OTHER THAN THOSE CONTAINED
IN SCHEDULE 2 OR ACKNOWLEDGMENT GIVEN OR RECEIVED SHALL HAVE NO EFFECT AND SUCH
TERMS AND CONDITIONS ARE HEREBY EXCLUDED AND REJECTED.

2.             Purchase Orders
and Rolling Requirement Forecasts. 
At least four (4) months prior to the beginning of CyberHeart’s fiscal
year, which commences on January of every calendar year, during the term of
this Manufacturing and Supply Agreement, CyberHeart shall provide Accuray with
a written Purchase Order specifying CyberHeart’s expected requirements, plus or
minus twenty percent (20%), for CyberHeart Products, or components thereof, and
CyberKnife Components, as the case may be, during such annual period.  Notwithstanding anything to the contrary,
Accuray shall not be required to provide more than ten (10) CyberHeart Modules
during the first annual period.  In
addition to such annual Purchase Order, at least ten (10) days prior to the
beginning of each calendar month (M1) during the term of this Manufacturing and
Supply Agreement, CyberHeart shall provide Accuray with a written forecast of
CyberHeart’s expected requirements for CyberHeart Products, or components
thereof, and CyberKnife Components during the following twelve (12) months
broken down by months (M1–M12), which shall include projected order dates,
quantities, and shipping dates (“Rolling Requirement Forecast”).  In each Rolling Requirement Forecast, the
terms set forth for (i) the first four (4) months (months M1–M4) shall be firm
orders binding, subject to Section C.3, below, on CyberHeart and (ii) the
subsequent eight (8) months (months M5–M12) shall be nonbinding estimates.  In the event CyberHeart requests additional
quantity of CyberHeart Products, or components thereof, or CyberKnife
Components, in excess of the amount set forth for the first four (4) months of
the Rolling Requirement Forecast, Accuray shall use Reasonable 

 E-2
 

Commercial Efforts  to deliver such quantities and shall promptly provide
CyberHeart written notice in the event that Accuray shall not be able to
deliver such quantities.  Notwithstanding
anything to the contrary, the quantity of CyberHeart Products, or components
thereof, and CyberKnife Components ordered for any annual Purchase Order by
CyberHeart pursuant to this Manufacturing and Supply Agreement shall not
increase or decrease by more than twenty percent (20%) of the quantity
specified in the then-current Rolling Requirement Forecast. For components
manufactured by Accuray during the prior calendar year, Accuray shall be
required to accept any such forecast that is within such twenty percent (20%).
In addition, if CyberHeart’s actual requirements for a given calendar year are
greater than or less than the expected requirements specified in the Purchase
Order by greater than twenty percent (20%), then CyberHeart shall pay a penalty
of Two-percent (2%).

3.             Pricing.  Pricing shall be on a cost-plus *** basis
where costs are based on direct costs plus overhead costs as determined using
Generally Accepted Accounting Principals (GAAP) and based on twelve (12) month
costs, unless adjusted by the Parties, such adjustment not to exceed once every
six (6) months.  Pricing will be quoted
prior to each purchase order based on actual gross margin of CyberKnife
Products over the previous six (6) months. 
Notwithstanding anything to the contrary, CyberHeart shall pay all
amounts due and payable in connection with binding firm orders.  All payments shall be made in accordance with
Section C.5, below.

4.             Site
Qualification, Delivery, Packaging, and Labeling.

a.             Site Qualification.
Accuray shall deliver CyberHeart Products and CyberKnife Components only (i)
upon written request from CyberHeart, and (ii) with respect to CyberHeart
Products to be delivered to a customer end-user, upon written confirmation by
Accuray that the end-user site, where such CyberHeart Product is to be
installed, complies with all requirements of the Site Readiness Guide. If a
CyberHeart Product is ready for delivery and Accuray cannot deliver such
CyberHeart Product due to failure of the customer end-user site to comply with
the requirements of the Site Readiness Guide, then any inventory holding costs
and costs to maintain such CyberHeart Product within Specifications that are
incurred by Accuray will be at CyberHeart’s expense and added to the invoice
described in Section C.5 below. Any delays caused by failure of a customer
end-user site to comply with the Site Readiness Guide shall not be
deemed to be a delay by Accuray or a failure by Accuray to meet any agreed upon
shipment date from the applicable Purchase Order.

b.             Delivery.
Accuray agrees to ship CyberHeart Products and CyberKnife Components to
CyberHeart or other designated destination on the agreed upon shipment dates
committed to in the applicable Purchase Order. 
Accuray shall notify CyberHeart, in writing, of any potential delay in
shipment date at the earliest possible time, including any delay due to failure
of a customer end-user site to meet the requirements of the Site Readiness
Guide as described in Section C.4(a) above. Within seventy-two (72) hours of
notification, Accuray shall (i) provide a plan for minimizing such delay, or
(ii) where such delay is caused by failure to meet the Site Readiness Guide, a
written description of such failure. 
Deliveries scheduled within one-hundred twenty (120) days cannot be
rescheduled by CyberHeart. All CyberHeart Products and CyberKnife Components
shipped to CyberHeart or its designated location shall be delivered in
accordance with the applicable Specifications and Purchase Order, and as
amended through ECO 

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

 E-3
 

procedures.  Accuray will procure and add on charges for
all shipping materials necessary to conform to the applicable Specifications
and will not be responsible for any damage or loss due to adherence to the
applicable Specifications.  Delivery
terms are FCA Destination (Incoterms 2000), freight prepaid and added to
invoice. Title to the CyberHeart Products and CyberKnife Components and risk of
loss pass to CyberHeart on the date of receipt. 
All freight, insurance, and other shipping expenses from the point of
shipment shall be borne by CyberHeart. 
The carrier shall be selected by CyberHeart, provided that in the event
no carrier is specified in the applicable Purchase Order or otherwise prior to
shipment, Accuray shall select the carrier.

c.             Packaging, and
Labeling All CyberHeart Products and CyberKnife Components shipped to
CyberHeart or its designee shall be fully packaged and labeled as specified in
the applicable Specifications.

5.             Invoicing.  Accuray shall submit invoices to CyberHeart
no earlier than shipment by Accuray.  All
invoices shall be sent to CyberHeart in accordance with Section 17.1 of the
License Agreement, and each such invoice shall state CyberHeart’s price based
on Section C.3, above, for the CyberHeart Products, or portions thereof, and
CyberKnife Components, and shall separately itemize any insurance, taxes, or
other costs to be borne by CyberHeart.

6.             Warranties.

a.             Quality and
Quality Control Warranty.  Accuray
agrees to maintain an ISO-13485 certified quality system and will maintain
quality control procedures in compliance with applicable FDA Quality System
Regulations (QSR). Accuray will notify CyberHeart of any proposed material changes in the CyberHeart
Products or CyberKnife Components so that CyberHeart may determine whether such changes may affect
the quality of such CyberHeart Products or CyberKnife Components.  The Parties shall cooperate on a timely basis
on issues affecting product quality, including items such as customer
complaints, reliability improvement, and field issues.

b.             Product Warranty.  Accuray hereby represents and warrants that
the CyberHeart Products or CyberKnife Components delivered to CyberHeart by Accuray
under this Manufacturing and Supply Agreement will be free of defects in
workmanship and materials for a period of the earlier of (i) eighteen (18)
months from the date of delivery to CyberHeart or (ii) twelve (12) months from
the date of delivery to an end-user by or on behalf of CyberHeart (“Warranty
Period”). CyberHeart’s exclusive remedy and Accuray’s sole liability under
this Section C.6(b) shall be for Accuray, at its option, either to repair or
replace the CyberHeart Products or CyberKnife Components found to have a material
manufacturing defect, if such defect is reported to the Accuray within the
Warranty Period and CyberHeart, at Accuray’s request, provides Accuray with
sufficient information to reproduce the defect in question.  If Accuray determines that it cannot remedy
such defect, it no longer has the equipment necessary to repair the defect, or
it has no replacement CyberHeart Products or CyberKnife Components, Accuray
may, at its option, refund the purchase price paid to it by CyberHeart for such
CyberHeart Products or CyberKnife Components. Accuray’s warranty hereunder
shall be void if the CyberHeart Products or CyberKnife Components have been
subjected to abuse, misuse, accident, alteration, neglect, extended storage by
CyberHeart prior to installation, operation 

 E-4
 

inconsistent with the
product documentation, or unauthorized repair, installation, or alteration by
anyone other than Accuray.

c.             LIMITATION OF
LIABILITY.  EXCEPT AS PROVIDED IN
SECTIONS C.6(A) AND (B), ABOVE, ACCURAY MAKES NO REPRESENTATION OR WARRANTY OF
ANY KIND, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, UNDER OR RELATED TO THIS
MANUFACTURING AND SUPPLY AGREEMENT OR WITH RESPECT TO THE CYBERHEART PRODUCTS
OR CYBERKNIFE COMPONENTS OR ANY SERVICES UNDER THIS MANUFACTURING AND SUPPLY
AGREEMENT, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF
MERCHANTABILITY, WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTY OF
NON-INFRINGEMENT, AND ALL SUCH WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED.  IN NO EVENT SHALL ACCURAY BE LIABLE UNDER,
AND CYBERHEART COVENANTS NOT TO BRING, ANY CLAIM OR CLAIMS FOR DAMAGES ARISING
FROM THIS MANUFACTURING AND SUPPLY AGREEMENT IN EXCESS OF THE AMOUNTS PAID TO ACCURAY
BY CYBERHEART UNDER THIS MANUFACTURING AND SUPPLY AGREEMENT, OR FOR SPECIAL,
CONSEQUENTIAL, INDIRECT, EXEMPLARY, OR PUNITIVE DAMAGES, WHETHER OR NOT SUCH
DAMAGES WERE FORESEEABLE AND EVEN IF ADVISED OF THE POSSIBILITY OF THE SAME.

7.             Shortage of Supply.  Accuray shall notify CyberHeart as soon as
possible if Accuray has any reason to believe that it may be unable to deliver
CyberHeart Products or CyberKnife Components in accordance with CyberHeart’s Purchase
Orders, including if Accuray is experiencing manufacturing difficulties that it
believes create a reasonable possibility of disrupting supply in the
future.  In such event, the Parties shall
meet and cooperate reasonably in order to formulate a plan in an effort to
avoid any disruption of supply to CyberHeart. With respect to CyberKnife
Components which are supplied to Accuray by a single source supplier, Accuray
will have discretion to qualify and engage a second source supplier within nine
(9) months of the earlier of the date of (i) its decision to seek a second
source for such CyberKnife Component or 
(ii) actual failure to supply or loss of such sole supplier of such
CyberKnife Component. During such nine (9) month period (A) CyberHeart shall have
the right to identify and otherwise qualify a second source supplier, but not
the right to engage such second source supplier and (B) Accuray shall not be
obligated to transfer any Manufacturing Technology to such second source
supplier. After (but not during) such nine (9) month period, to the extent
applicable, Section D.1 shall apply and Accuray shall be obligated to integrate
any such second source supplier qualified and identified under such Section.

8.             Third Party
Contractors.  If Accuray uses any third
party contractor in connection with performing its obligations under this
Manufacturing and Supply Agreement, Accuray shall remain responsible for
compliance with its obligations and shall be responsible for the actions and
inactions of such contractor in connection therewith as if by Accuray.

9.             Process Changes.  Accuray agrees that any material changes,
contemplated by Accuray and, to the extent communicated to Accuray its
contractors, to processes, methods, equipment, raw materials, components, suppliers,
or otherwise, related to manufacturing, testing, or quality control, of the
CyberHeart Products or CyberKnife Components to be supplied by 

 E-5
 

Accuray to CyberHeart,
shall be submitted to CyberHeart ninety (90) days in advance to allow
CyberHeart an opportunity to evaluate such changes, including by inspecting,
for no more than one (1) business day on reasonable advance notice, the
applicable facilities.  Accuray agrees to
discuss such changes with CyberHeart in good faith if such changes would materially
impact a CyberHeart Product.

10.           Sourced Components. If
CyberHeart decides to source any small components of CyberHeart Products that
are not CyberKnife Components directly from a third party supplier, it shall
first notify Accuray in good faith in writing in advance of any initial
purchase order for any particular component to obtain any such components from
such third party. Accuray shall have sixty (60) days from the date of receipt
of such notice to use Reasonable Commercial Efforts to qualify such components
for use with the CyberHeart Products to which they relate, which qualification
shall not be unreasonably withheld. Upon qualification by Accuray of such
components, Accuray shall be obligated to integrate such components into the
manufacturing of the CyberHeart Product to which they relate and contractually
source any such components from such third party supplier. Upon request by
Accuray, CyberHeart shall assist Accuray in obtaining any such components
directly as a source of component supply for CyberKnife Systems. Unless Accuray
sources such small components from such third party for CyberKnife Systems, any
delay or failure to supply by Accuray that is due to a delay or failure to
supply of components sourced under this Section C.10 shall not be deemed a
delay by Accuray or failure to supply by Accuray under Section D below and any
costs associated with such delays shall be paid by CyberHeart.

D.            Failure to Supply.

1.             Backup
Manufacturing License.

a.             Release Notice by
Accuray. Accuray shall within thirty (30) days deliver a Release Notice to
CyberHeart if:  (a) Accuray becomes
insolvent, (b) bankruptcy or insolvency proceedings are instituted against
Accuray, (c) Accuray terminates the License Agreement pursuant to Section 11.2
of the License Agreement, but not due to any breach described in Section
11.5.1.3 of the License Agreement, or (d) Accuray determines, after expiration
or exhaustion of any cure period or other remedy provisions of this
Manufacturing and Supply Agreement with respect to a CyberKnife Component, that
it is unable to manufacture or have manufactured within the applicable
Specifications such CyberKnife Component. For clarity, no Release Notice shall
be provided unless the rights and licenses of CyberHeart under Article 2 of the
License Agreement, survive pursuant to Article 11 of such agreement.

b.             Release Notice by
CyberHeart. CyberHeart shall within thirty (30) days deliver a Release
Notice to Accuray if after expiration or exhaustion of any cure period
(including, without limitation, the second source qualification period under
Section C.7 above) or other remedy provisions of this Manufacturing and Supply
Agreement with respect to a CyberKnife Component, CyberHeart notifies Accuray,
and Accuray confirms, that Accuray has supplied less than seventy-five percent
(75%) of the amount of such CyberKnife Component set forth in the portion of a
Rolling Requirement Forecast that is binding on Accuray for two (2) consecutive
calendar quarters. For the avoidance of doubt, any delay due to failure of a
customer 

 E-6
 

end-user site to
meet the Site Readiness Guide requirements will not be counted under
this Section D.1(b).

c.             License to
Manufacture. Concurrent with delivery of a Release Notice, subject to the
terms and conditions of this Manufacturing and Supply Agreement, Accuray hereby
grants as of the date of such delivery of a Release Notice, to CyberHeart a
non-exclusive right and license under the Accuray Patents, the Accuray
Technology, and the Manufacturing Technology, without the right to grant or
authorize sublicenses, to make and have made (solely as set forth in this
Section D.1 and excluding Accuray Competitors) such CyberKnife Component,
including the right to practice any method or process in connection with the
foregoing (the “Backup Manufacturing License”). CyberHeart shall not
enter into any agreement with any third party manufacturer that (A) has a term
of longer than twelve (12) months and/or (B) is less restrictive with respect
to its manufacture for the benefit of CyberHeart than the terms and conditions
of this Manufacturing and Supply Agreement, and any failure by such third party
manufacturer to comply with such terms and conditions of this Manufacturing and
Supply Agreement shall be considered a breach of this Manufacturing and Supply
Agreement by CyberHeart. Any such Backup Manufacturing License shall have a
renewable term of no more than twelve (12) months. The above twelve (12) month
restriction will not apply to any willful refusal by Accuray to supply
CyberHeart with a CyberKnife Component consisting of the a linear accelerator
that Accuray is otherwise continuing to manufacture for the CyberKnife.

2.             Manufacturing
Technology and Assistance.  If
Accuray has not deposited into escrow the Manufacturing Technology pursuant to
D.3 below, Accuray shall deliver to CyberHeart within sixty (60) days after the
delivery of a Release Notice the Manufacturing Technology necessary for the
manufacture of the CyberKnife Component(s) for which such Release Notice was
delivered, including all instructions, specifications, and other Manufacturing
Technology and materials describing or used in the design or manufacture of
such CyberKnife Component(s), a description of the suppliers, raw materials,
components, processes, equipment, instructions, and instruments used for such
manufacture, and other information and materials, all in sufficient detail to
reasonably enable CyberHeart and its contractors to manufacture and test
(including quality control and testing), without need for further information,
such CyberKnife Component(s) in the same manner as such manufacture is
performed by or for Accuray.  Without
limiting the foregoing, Accuray shall use Reasonable Commercial Efforts to
enable CyberHeart, and its contract manufacturer (for clarity, such other
contract manufacturer shall not include an Accuray Competitor), if any, to use
the materials that Accuray is required to disclose to manufacture such
CyberKnife Component(s)in the same manner as performed by Accuray or its
contractor.  CyberHeart and such contract
manufacturers shall agree to obligations of confidentiality no less restrictive
than those contained in the License Agreement with respect to the Manufacturing
Technology prior to disclosure of such Manufacturing Technology to CyberHeart
and such contract manufacturers, respectively.

3.             Escrow.  At any time after the Effective Date of the
License Agreement, CyberHeart shall have the right to request that Accuray
place in escrow a copy, and reasonable description, of the Manufacturing Technology
that Accuray is required to disclose under Section D.2, above, for each
CyberKnife Component that may be subject to a Release Notice.  Such deposit shall be made by Accuray as soon
as reasonably possible, but no later than one-hundred-eighty (180) days, after
CyberHeart’s request.  Such deposit shall
be made under an escrow 

 E-7
 

agreement reasonably
acceptable to both Parties, agreement not to be unreasonably withheld or
delayed, or if the Parties have failed to agree upon an escrow agreement within
thirty (30) days after CyberHeart’s request for deposit, the standard escrow
agreement used by a nationally (or internationally) known and reputable escrow
agent reasonably selected by CyberHeart. Any escrow agreement used pursuant to
the forgoing must contain release conditions identical to those provided under
this Manufacturing and Supply Agreement. Any contrary release conditions will
be null and void. Accuray shall update the Manufacturing Technology deposited
in escrow regularly, but no less often than once (1) each calendar year, to
reflect changes to the Manufacturing Technology and maintain the deposited
materials consistent with the deposit requirements in Section D.2, above.  CyberHeart shall have the right to have a
technical auditor inspect the materials that have been deposited to evaluate
the sufficiency thereof. All costs related to such escrow agreement, including
set up and maintenance, will be the sole responsibility of CyberHeart.

4.             Reversion of
Supply to Accuray.  Notwithstanding
anything to the contrary, if, following the delivery of Manufacturing
Technology with respect to a CyberKnife Component pursuant to Section D.2,
above, Accuray is able to manufacture such CyberKnife Component, and is able to
reasonably demonstrate that it can so manufacture, then at Accuray’s
discretion, it can regain the right to manufacture such CyberKnife Component
under the same terms and conditions as in this Manufacturing and Supply
Agreement, and the Backup Manufacturing License with respect to such CyberKnife
Component shall terminate. Accuray shall pay reasonable costs directly incurred
by CyberHeart in connection with the termination of a contract entered into by
and between CyberHeart and a third party manufacturer pursuant to Section D.1,
above, if Accuray requests that CyberHeart terminate such contract prior to its
term (for clarity, such term shall not be longer than twelve (12) months).  Additionally, the Parties shall discuss in
good faith whether any resumption of manufacture and supply by Accuray shall be
made over the course of a phase-in period, of no more than three (3)
consecutive calendar months, in which supply by Accuray of the CyberKnife
Component is ramped up concurrent with a wind-down by CyberHeart in the
manufacture of the CyberKnife Component by its contract manufacturer,
reasonably established and implemented in a manner that avoids disruptions in
supply to CyberHeart and its customers, and at the end of which the Backup
Manufacturing License with respect to such CyberKnife Component shall
terminate. Upon resumption of manufacturing by Accuray, this Section D.1 shall
again apply.

E.             Regulatory Matters.

1.             The terms and
conditions in Article 5 of the License Agreement shall apply to this
Manufacturing and Supply Agreement in the same manner as they apply to the
License Agreement as if fully set forth in this Section E.1; provided that each
Party, its Affiliates, and its Subcontractors shall reasonably cooperate, as
requested by the other Party and at such other Party’s expense, in regulatory
activities, qualifications, and approvals to the extent related to the
facilities, suppliers, raw materials, equipment, and the like used in
connection with the supply of the CyberHeart Products and/or CyberKnife
Components, including by allowing applicable Regulatory Agencies to inspect
such facilities as such Regulatory Agencies request at such other Party’s
expense.  With respect to non-routine
inspections, each Party shall be entitled to be present each time any
Regulatory Agency is present at such facilities, and such shall notify the
other Party immediately upon receiving any communication from any Regulatory
Agency that is 

 E-8
 

related to a CyberHeart
Product or CyberKnife Component that is or was supplied under this
Manufacturing and Supply Agreement. Each Party shall remedy any issues
identified by any Regulatory Agency or the other Party as soon as possible and
shall keep such other Party fully informed of all actions taken to do so, and
the results of such actions.

2.             Audit Rights.   Upon thirty (30) days notice (forty-five
(45) days for suppliers), each Party will permit the other Party reasonable
audit rights to inspect manufacture of CyberHeart Products or CyberKnife
Components, or portions thereof, by such other Party or its suppliers, to the extent
permitted by such other Party’s supplier agreements.

3.             Medical Device
Reporting.  Pursuant to the FDA’s
Medical Device Reporting (MDR) Regulations, and corresponding regulations of
regulatory authorities outside the United States, each Party may be required to
report to regulatory authorities information that reasonably suggests that a
CyberHeart Product or CyberKnife Component may have caused or contributed to
the death or serious injury or has malfunctioned and would be likely to cause
or contribute to a death or serious injury if the malfunction were to
recur.  Accordingly, each Party agrees to
supply to the other Party all such information, promptly after becoming aware
of it, sufficient to enable such other Party to comply with all Applicable
Laws, including governmental reporting requirements.  Each Party shall cooperate as reasonably
requested by the other Party to establish processes and procedures with respect
to such reporting, and delivery of 
information relating to, such issues, and each Party shall comply with
the procedures established.

4.             Potential Hazards.  Each Party shall inform the other Party as
soon as possible, but no later than forty-eight (48) hours, after its receipt
of any information that (i) indicates or suggests a potential material
liability for either Party arising in connection with any CyberHeart Product or
CyberKnife Component; (ii) any concern or issue that is reasonably likely to
lead to a recall or market withdrawal of a CyberHeart Product or CyberKnife
Component; and (iii) all ongoing and potential FDA and other Regulatory Agency
investigations, inspections, detentions, seizures, or injunctions involving a
CyberHeart Product or CyberKnife Component of which such Party becomes
aware.  Without limiting the foregoing,
each Party shall immediately notify the other Party in writing of any material
concerns and issues of which it becomes aware that may present a substantial
safety issue and result in a failure to comply with and are therefore
reportable under any applicable law or regulation.

5.             Recalls.

a.          By CyberHeart.     If CyberHeart believes that a voluntary or
involuntary recall or market withdrawal of any CyberHeart Product is necessary
as a result of any failure of a CyberHeart Product to comply with the
applicable Specifications, CyberHeart shall notify Accuray, and CyberHeart
shall be responsible for initiating and managing the recall, and Accuray shall
reasonably cooperate with CyberHeart with respect to such recall.  As between the Parties, CyberHeart shall be
responsible for paying the costs of such recalls and market withdrawals,
including in jurisdictions outside the United States.  If CyberHeart believes that a voluntary or
involuntary recall or market withdrawal of any CyberHeart Product is necessary
as a result of any failure of a CyberHeart Product to comply with the
applicable Specifications due solely to failure of a CyberKnife Component to
comply with the applicable Specifications, CyberHeart shall notify Accuray,
and, as between the Parties, CyberHeart and 

 E-9
 

Accuray shall discuss in
good faith allocation of responsibility for paying the costs of such recalls
and market withdrawals, including in jurisdictions outside the United
States.  Each Party shall keep the other
Party fully informed with respect to any of its activities in connection with a
recall and shall provide such other Party with reasonable opportunities to
comment with respect to the activities associated therewith.

b.          By Accuray.          If Accuray believes that a voluntary or
involuntary recall or market withdrawal of any CyberKnife Component is
necessary, Accuray shall notify CyberHeart, and the Parties shall cooperate
with respect to initiating and managing the recall with respect to CyberHeart
Product.  As between the Parties, Accuray
shall be responsible for paying the costs of such recalls and market
withdrawals relating solely to such CyberKnife Components including in
jurisdictions outside the United States, or where such costs are difficult to
determine, the Parties shall cooperate to allocate such costs reasonably. Each
Party shall keep the other Party fully informed with respect to any of its
activities in connection with a recall and shall provide such other Party with
reasonable opportunities to comment with respect to the activities associated
therewith.

F.             Representations,
Warranties, and Indemnities.  Article
15 of the License Agreement shall apply to this Manufacturing and Supply
Agreement in the same manner as it applies to the License Agreement as if fully
set forth in this Section F.

G.            Confidentiality.  All confidential information exchanged in
connection with this Manufacturing and Supply Agreement shall be governed by
the confidentiality terms and restrictions in the License Agreement, including
Article 14 of the License Agreement.

H.            Dispute Resolution.  Article 16 of the License Agreement shall
apply with respect to this Manufacturing and Supply Agreement, in the same
manner as it applies with respect to the License Agreement, as if fully set
forth in this Section H.

I.              Payment Terms.
 CyberHeart shall pay, in U.S. dollars,
to Accuray all amounts set forth in an invoice within thirty (30) days after
delivery of such invoice in accordance with Section 17.1 of the License
Agreement.  Any payments or portions
thereof due hereunder that are not paid on the date such payments are due under
this Manufacturing and Supply Agreement shall bear interest at a per annum rate
equal to the lesser of (i) the prime rate as published in The Wall Street Journal, Western Edition,
on the first day of each calendar quarter in which such payments are overdue,
plus two (2) percentage points, calculated on the number of days such payment
is delinquent, compounded monthly, or (ii) the maximum rate permitted by
Applicable Law.  Additionally, Section
8.4 of the License Agreement shall apply to this Manufacturing and Supply
Agreement, in the same manner as it applies to the License Agreement, as if
fully set forth herein.

J.             Term and  Termination.

a.             Term.
This Agreement shall become effective on the Effective Date and shall remain in
effect until CyberHeart’s rights and licenses pursuant to Article 2 of the
License Agreement expire or are terminated as provided therein and
notwithstanding any survival of CyberHeart’s rights pursuant to Section
11.5.1.6 of the License Agreement (the “Term”).

 E-10
 

b.             Termination
for Cause.  In the event of a
material breach of this Manufacturing and Supply Agreement, the non-breaching
Party shall be entitled to terminate this Manufacturing and Supply Agreement by
written notice to the breaching Party, if such breach is not cured within
ninety (90) days after written notice is given by the non-breaching Party to
the breaching Party specifying the breach. 
However, if the Party alleged to be in breach of this Manufacturing and
Supply Agreement disputes such breach and submits such dispute for dispute
resolution pursuant to Section 16.1 of the License Agreement within such ninety
(90) day period, the non-breaching Party shall not have the right to terminate
this Manufacturing and Supply Agreement unless the dispute resolution
provisions of Article 16 in the License Agreement result in a determination
that this Agreement was materially breached by the other Party, and the
breaching Party fails to comply with its obligations hereunder within ninety (90)
days after such determination.

c.             Survival.  The following provisions shall survive any
termination or expiration of this Manufacturing and Supply Agreement:  Articles A, E (to the extent CyberHeart’s
licenses under Article 2 of the License Agreement remain in effect other than
pursuant to Section 11.5.1.6 of the License Agreement), G, H, I, J (as to
Article I, to the extent payments are due as of the date of termination or
expiration), J, K, and L and Section E.1, E.3, E.4 and E.5 (in each case only to
the extent CyberHeart’s licenses under Article 2 of the License Agreement
remain in effect other than pursuant to Section 11.5.1.6 of the License
Agreement ).

K.            Bankruptcy.  Article 12 of the License Agreement shall
apply with respect to this Manufacturing and Supply Agreement, in the same
manner as it applies with respect to the License Agreement, as if fully set
forth in this Section K.

L.             General Provisions.  Article 17 of the License Agreement shall
apply with respect to this Manufacturing and Supply Agreement, in the same
manner as it applies with respect to the License Agreement, as if fully set
forth in this Section L.

 E-11
 

Schedule
1

SPECIFICATION

To be added by the
Parties after the Effective Date

 E-12
 

Schedule
2

FORM OF
PURCHASE ORDER

Will be added after
the Effective Date

 E-13

Exhibit F

Installation

Accuray shall be obligated to
install (inclusive of site qualification and planning) CyberHeart Products on
the terms and conditions attached below in this Exhibit F (“CyberHeart
Installation Agreement”).  If CyberHeart
engages any third party to manufacture a component or components of a
CyberHeart Product pursuant to Exhibit E, then, to the extent necessary,
CyberHeart shall obligate such third party to use Reasonable Commercial Efforts
to provide reasonable training to Accuray with respect to the installation of
such component or components.

CyberHeart shall provide
Accuray with no less than one hundred eighty (180) days notice of a request for
installation and Accuray will agree to install a CyberHeart Product within
thirty (30) days before or after such date. Such installation date will be
subject to and conditioned upon the customer end-user site meeting all the
requirements of the Site Readiness Guide. Any material delay of installation
beyond thirty (30) days after such installation date that is caused by
CyberHeart or that is due to a customer end-user site not meeting the
requirements of the Site Readiness Guide shall result in a delay fee to be paid
to Accuray by CyberHeart of ten percent (10%) of the transfer price for such CyberHeart
Product.

Accuray’s obligations under
such installation agreement shall be subject to CyberHeart remaining current
with all payments therein. Upon any default by CyberHeart due to failure to
make payments, Accuray will have the right, but not the obligation, to contract
directly with the end-user for installation services.

CYBERHEART INSTALLATION AGREEMENT

 

 

SEE BELOW

 

 F-1
 

CyberHeart
Installation Agreement

1.                            Scope
of Agreement.

1.1.                    Scope.  This Installation Agreement (“Agreement”) is
made by and between ACCURAY INCORPORATED
(“Accuray”), a Delaware corporation, with its principal place of business at
1310 Chesapeake Terrace, Sunnyvale, CA 94089, and CYBERHEART INCORPORATED (“CyberHeart”), a Delaware
corporation, with its principal place of business at 3270 Alpine Road, Portola
Valley, CA, for Accuray to install the CyberHeart System at                                                        ’S (“Customer”) site at                                                   (“System”).

1.2.                    CyberHeart
Obligation.  Accuray’s obligations
under this Agreement are contingent on CyberHeart’s performance under its
installation contract with Customer.  As
such, Accuray expects and CyberHeart agrees that CyberHeart will provide
Customer with the same or greater service as is offered by Accuray under this
Agreement; provided, however, that Accuray shall perform the actual
installation of the CyberHeart System.

2.                            Terms
of Payment.

2.1.                    Installation
Price; Payment Schedule.  The
Installation Price for the CyberHeart System is $125,000.00. The installation
price is valid only for the System specified above in Section 1. The
Installation Price is exclusive of all taxes (including, but not limited to,
any sales tax, use tax, or value-added tax or other similar tax), license fees,
customs fees, duties, and similar charges. 
CyberHeart shall pay for installation of the CyberHeart System fifty
percent (50%) upon delivery of the CyberHeart System and fifty percent (50%)
upon Acceptance.

2.2.                    Invoices;
Late Payments. If CyberHeart’s or Customer’s internal payment processing
procedure requires CyberHeart to receive an invoice before paying amounts due
hereunder, CyberHeart shall request such invoice sufficiently in advance to
make the payment in accordance with the payment schedule set forth in Section
2.1 above.  Past due balances shall bear
interest at the rate of 1% per month or, if lower, the maximum amount permitted
by applicable law.  Accuray may suspend its
performance under this Agreement if payments are not made in accordance with
the payment schedule set forth in Section 2.1 above.  CyberHeart shall pay Accuray’s reasonable
costs of collecting amounts due hereunder that are more than 30 days past due.

3.                            Installation.

3.1.                    Installation by Accuray.  Accuray will notify CyberHeart approximately
90 calendar days prior to the scheduled delivery of the CyberHeart System to
coordinate installation details. 
Installation will be performed by Accuray.  Accuray will assemble and test the CyberHeart
System.  Operation of the CyberHeart System
by Accuray, as necessary for completion of installation or acceptance tests, is
subject to Customer providing adequate radiation shielding protection and other
site preparations required for the safety and protection of personnel and the
CyberHeart System. Upon completion of the installation, Accuray’s
representatives will demonstrate proper machine operation by performing Accuray’s
acceptance test procedure.  For clarity,
Accuray is not responsible for any commissioning of the CyberHeart System,
including, but not limited to, any calibration or radiation surveys.  Such commissioning shall be the sole
responsibility of Customer.

3.2.                    Site
Preparation.  Customer will be
responsible for having the building, utilities, lighting, ventilation, air
conditioning, mounting facilities, all necessary radiation shielding, patient
positioning lasers, closed-caption TV system, intercom, and access to the room
completed on the estimated delivery date and ready for installation of the
CyberHeart System.  Accuray will have no
responsibility for any matter affecting or related to the adequacy of
architectural design, utility service design, the radiation protection walls
and barriers, patient viewing devices, or facility personnel safety devices at

 F-2
 

Customer’s site.  Architectural
design, radiation protection walls and barriers and other safety devices must
be approved by an expert in the radiation field and shall be Customer’s
responsibility.

3.3.                    Rigging and Unloading.  Accuray will
locate and contract with a rigger or local licensed contractor to provide labor
and rigging services necessary to unload the sub-base frame and the rest of the
CyberHeart System
from the transport vehicle and move the entire CyberHeart System to its final position
under Accuray’s supervision.  Accuray
shall be responsible for all standard rigging costs and expenses.  An Accuray representative will monitor the
movement, final positioning and connection of the CyberHeart System.

3.4.                    Customer Representative.  CyberHeart shall require that Customer provide
a representative who shall be present at all times during the installation and
be capable of assisting where necessary. 
When no representative is present and assistance from Customer is not
available when required, Accuray may suspend the installation until an
appropriate Customer representative is made available consistently.

4.                            Calibration
and Local Requirements.

4.1.                    Calibration.  Customer shall be solely responsible for all
CyberHeart System commissioning and calibration.  The dose rate and integrated dose measured by
the accelerator transmission ionization chamber and dosimetry electronics must
be calibrated by a qualified radiological physicist prior to use  of the CyberHeart System for patient
treatment.  Customer shall be responsible
for quality assurance testing and calibrating the CyberHeart System
regularly.  Customer also shall be
responsible for radiation surveys which may be required by applicable law or
regulation or which may be necessary to establish that radiation does not
exceed safe levels.  Accuray has no
responsibility for any such commissioning, quality assurance testing,
calibration or radiation surveys.

4.2.                    Local
Requirements.  Customer shall be
responsible for obtaining all permits and for meeting all requirements relating
to state and local codes, registration, regulations and ordinances applicable
to Customer’s use of the CyberHeart System. Accuray has no responsibility for
compliance by the CyberHeart System with such requirements.

5.                            Acceptance.  “Acceptance” of the CyberHeart System
shall occur upon the earlier of (i) completion by Accuray of its acceptance
test procedure that demonstrates that the CyberHeart System substantially
conforms to the Specifications or (ii) execution of Accuray’s acceptance form
by Customer.  In no event shall
CyberHeart, Customer or its agents use the CyberHeart System (or any portion
thereof) for any purpose before Acceptance thereof without the express written
approval of Accuray.  CyberHeart and/or
Customer shall indemnify and hold Accuray harmless from any such use.

6.                            Mutual
Indemnity.  If it is determined by a
court in accordance with applicable law that the negligence of a party (the “Responsible
Party”), its employees or agents causes damage or injury to a third party,
the Responsible Party shall pay the other party for any damages awarded by a
court or agreed to by the Responsible Party in a settlement arising from such
claims to the extent such damages reflect the Responsible Party’s relative
fault therefor.  Notwithstanding the
foregoing, Accuray shall have no responsibility whatsoever for, and CyberHeart
shall indemnify and hold Accuray harmless from, all damage or injury to third
parties which (i) results from the use, operation or service of the CyberHeart
System by other than Accuray personnel prior to Acceptance and completion of
the radiation survey by Customer, (ii) results from or relates to any service
of the CyberHeart System by a party not authorized to perform such service by
Accuray, or (iii) any use by CyberHeart, Customer or their agents of the
CyberHeart System contrary to any written warning or instruction given by
Accuray.

7.                            Limitation
of Liability and Warranty

7.1.                    Accuray’s
liability arising under this Agreement shall be limited to an amount not to
exceed the payment(s) received by Accuray for the then current Agreement
year.  In addition, Accuray shall not be
liable to CyberHeart in the event that CyberHeart’s, Customer’s or any third
party’s acts or

 F-3
 

omissions contributed in any way to any loss it
sustained or the loss or damage is due to an act of God or other causes beyond
its reasonable control.

7.2.                    This
is a service agreement.  THERE ARE NO
INCLUDED OR IMPLIED ACCURAY WARRANTIES OF PRODUCT FITNESS FOR A PARTICULAR
PURPOSE OR MERCHANTABILITY.

8.                            Damages.  IN NO EVENT SHALL
ACCURAY BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES ARISING FROM
OR RELATED TO THIS AGREEMENT EVEN IF ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. ACCURAY’S AGGREGATE LIABILITY ARISING FROM OR RELATED TO THIS
AGREEMENT SHALL NOT EXCEED THE PAYMENT RECEIVED BY ACCURAY FOR THE INSTALLATION
OF THE CYBERHEART SYSTEM RESULTING IN THE LOSS OR DAMAGE CLAIMED.

9.                            Confidentiality.
All drawings, designs, specifications, manuals and software and other
non-public information furnished to CyberHeart or Customer by Accuray hereunder
shall remain the confidential and proprietary property of Accuray (“Confidential
Information”).  All such information,
except as may be found in the public domain, shall be held in confidence by
CyberHeart and shall not be disclosed by CyberHeart to any third parties or
used by CyberHeart other than in its operation of the CyberHeart System in
accordance with the Specifications. 
CyberHeart shall require that Customer agree in writing to similar
confidentiality obligations.

10.                     Assignment.
Neither party may assign this Agreement without the other party’s prior written
consent, except that Accuray may assign this Agreement without CyberHeart’s
consent to an affiliate and either party may assign this Agreement without the
other party’s consent to a successor or acquirer in connection with a merger or
acquisition, or the sale of all or substantially all of such party’s assets or
the sale of that portion of such party’s business to which this Agreement
relates, upon written notice; provided that any party to which CyberHeart
proposes assigning this Agreement must meet Accuray’s standard creditworthiness
requirements.  Subject to the foregoing,
this Agreement will bind and inure to the benefit of the parties’ permitted
successors and assigns. Any attempted assignment in violation of this Section
10 shall be null and void.

11.                     Dispute
Resolution.  Any
dispute between Accuray and CyberHeart arising from or related to this
Agreement, excluding disputes regarding payment or CyberHeart’s unauthorized
use or disclosure of Accuray Confidential Information or intellectual property,
shall be settled as follows.  The party
initiating the dispute shall provide written notification to the other party
identifying in detail the nature of the dispute.  The other party shall respond in writing to
the notification within 30 calendar days from the date of receipt of the
notification.  The party initiating the
dispute shall have an additional 30 calendar days after the receipt of the
response to either accept the resolution offered by the other party or escalate
the matter.  If the dispute is not
resolved within the foregoing 30-day period, the parties shall escalate the
claim to the President of Accuray and the Chief Executive Officer of
CyberHeart.  Each shall negotiate in good
faith and use his or her best efforts to resolve such dispute or claim.  If the dispute is not resolved within 15
calendar days after escalation to the President and Chief Executive Officer as
described above, then either party may pursue resolution by any means available
at law or equity.

12.                     Governing Law.  The
rights and obligations of the parties under this Agreement shall be governed in
all respects by the laws of the United States and the State of California
without regard to conflicts of laws principles that would require the
application of the laws of any other jurisdiction. No action, regardless of
form, arising out of or related to the CyberHeart System may be brought by
CyberHeart more than 1 year after CyberHeart  has
or should have become aware of the cause of action.

13.                     Notices.  All notices required
or permitted under this Agreement shall be in writing and if delivered in
person, effective immediately, if delivered by reputable national or
international overnight delivery service, effective 2 business days after
deposit with carrier, or if delivered by registered or certified mail, postage
prepaid with return receipt requested, effective 5 business days after deposit
with carrier.  All

 F-4
 

communications will be
sent to the addresses set forth below or to such other address as may be
specified by either party in accordance with this section.  

	
  To Accuray:

  	
  To CyberHeart:

  
	
   

  	
   

  
	
  Accuray Incorporated   

  	
   

  
	
   

  	
   

  
	
  Attention: Chief Financial Officer 

  	
   

  
	
   

  	
   

  
	
  1310 Chesapeake Terrace

  	
   

  
	
   

  	
   

  
	
  Sunnyvale, CA 94089

  	
   

  
	
   

  	
   

  
	
  Copy to: General Counsel

  	
   

  

 

14.                     Force Majeure.  Neither
party will be responsible for any failure or delay in its performance under
this Agreement (except for the payment of money) due to causes beyond its
reasonable control, including, but not limited to, labor disputes, strike,
lockout, riot, war, fire, acts of God, accident, failure or breakdown of
components necessary for order completion; subcontractor or supplier caused
delays; curtailment of or failure to obtain sufficient electrical or other
energy, raw materials or supplies; or compliance with any law, regulation or
order, whether valid or invalid.

15.                     Waiver.  The waiver of any breach or default of any
provision of this Agreement will not constitute a waiver of any other right
hereunder or of any subsequent breach or default.

16.                     Severability.  If any provision of this Agreement is held
invalid or unenforceable by a court of competent jurisdiction, the remaining
provisions of this Agreement will remain in full force and effect, and the
provision affected will be construed so as to be enforceable to the maximum
extent permissible by law.

17.                     Amendments. 
Any amendment or modification of this Agreement must be made
in writing and signed by duly authorized representatives of each party.  For Accuray, a duly authorized representative
must be any of the following:  CEO, CFO,
or General Counsel.

18.                     Counterparts.  This Agreement may be executed in
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

19.                     Entire Agreement.  This Agreement contains the entire agreement
of the parties hereto with respect to the subject matter hereof, and supersedes
all prior understandings, representations and warranties, written and
oral.  In the event of a conflict or
inconsistency between the terms stated in a purchase order or other similar
document and this Agreement, the terms of this Agreement shall govern.

SIGNATURE PAGE FOLLOWS

 F-5
 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed as of
the date set forth below by their duly authorized representatives.  The parties acknowledge and agree that this
Agreement does not become effective until it has been signed by all parties
indicated below.

	
  ACCURAY INCORPORATED

  	
  CYBERHEART

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Print Name

  	
   

  	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
															

 

The undersigned acknowledges that the terms and conditions of this
Agreement meet the policies and procedures of Accuray.

	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  General Counsel, Accuray Incorporated

  	
   

  

 

SIGNATURE PAGE TO INSTALLATION AGREEMENT

 F-6

Exhibit G

Service

Accuray shall be obligated to service, either
directly or through a third party, and provide technical support, for
CyberHeart Products pursuant to the terms and conditions below in this Exhibit
G (“CyberHeart Service Agreement”). If CyberHeart engages any third party
to manufacture a component or components of a CyberHeart Product pursuant to Exhibit
E, then, to the extent necessary, CyberHeart shall obligate such third
party to use Reasonable Commercial Efforts to provide reasonable training to
Accuray with respect to the service and support of such component or
components.

Accuray’s obligations to provide service and
support shall apply solely to the versions of the CyberKnife System and
CyberKnife Components installed at the time Accuray installs the relevant
CyberHeart Product.  The foregoing
obligations shall terminate with respect to a version of the CyberKnife System
or CyberKnife Component, as applicable, four (4) years after the date on which
Accuray updates such version.

Accuray’s obligations under the CyberHeart
Service Agreement shall be subject to CyberHeart remaining current with all
payments therein. Upon any default by CyberHeart due to failure to make
payments, Accuray will have the right, but not the obligation, to contract
directly with the end-user for installation services.

Pricing.

The annual fee for the
CyberHeart Service Agreement will be the price for Accuray’s then-current
full-service, no upgrade service agreement. 
As of the date of this Agreement, that offering is Accuray’s “Emerald
Elite Service Agreement” and the list price is *** per year.

Volume Discount.

In the event that multiple CyberHeart Service Agreements are purchased
in a one (1) year period beginning with the Effective Date of this Agreement, Accuray
will offer a volume discount as follows:

 

	
  Number of CyberHeart Service

  Agreements Purchased

  	
   

  	
  % Discount off

  List Price

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  

 

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

 G-1
 

CyberHeart
Service Agreement

1.                             Scope
of Service.  This Service Agreement (“Agreement”)
is made by and between ACCURAY
INCORPORATED (“Accuray”), a Delaware corporation, with its principal
place of business at 1310 Chesapeake Terrace, Sunnyvale, CA 94089, and CYBERHEART INCORPORATED (“CyberHeart”),
a Delaware corporation, with its principal place of business at 3270 Alpine
Road, Portola Valley, CA, for Accuray to provide planned maintenance service
when scheduled by Accuray and corrective maintenance service when requested by
CyberHeart to maintain the CyberHeart System installed at                                                                 ’S (“Customer”) site
at                                                     (“System”)
so that it performs substantially in accordance with the Specifications (User
Manuals and Reference Guides) defined for the System revision as installed
and/or upgraded.

1.1.                      Effective
Date.  This Agreement shall be
effective as of demonstration of acceptance testing by Accuray as described in
the CyberHeart Installation Agreement dated                  ,
200        and signed by the parties, or the
expiration of any prior service or warranty agreement, if applicable.

1.2.                      CyberHeart
Obligation.  Accuray’s obligations
under this Agreement are contingent on CyberHeart’s performance under its
service contract with Customer.  As such,
Accuray expects and CyberHeart agrees that CyberHeart will provide Customer
with the same or greater service as is offered by Accuray under this Agreement.

1.3.                      Definitions:

1.3.1.  Bug
Fix means an error correction or minor change in the existing software
and/or hardware configuration that is required in order to enable the existing
software and/or hardware configuration to perform to the existing functional
specification(s).

1.3.2.  Update  means a release of the software or a change to the existing
hardware containing substantially only error corrections, minor new features,
functionality and/or performance improvements, but that would not be required
for the existing software and/or hardware configuration to perform to the
existing functional specification(s) of that particular product.  Such Update would not necessarily replace or
extend the life of the existing software and/or hardware configuration of the
product.  For example, an Update of
software would be indicated where the version number is changed by incrementing
the numeric digits to the right of the decimal point, e.g., versions 1.1, 1.2,
1.3, and 1.4 would each be Updates of the software.

1.3.3.  Upgrade
means a release of the software or a change to the existing hardware containing
major new features, functionality and/or performance improvements that would
enable the existing software and/or hardware configuration to perform to the
level of the next version of the software and/or hardware configuration and
designed to replace the older software and/or hardware version of the same
product and/or extend the useful life of that product.  For example, an Upgrade of software would be
indicated where the version number is changed by incrementing the numeric
digits to the left of the decimal point, e.g., versions 1.0, 2.0, 3.0, and 4.0
would each be Upgrades of the software.

1.3.4.  New
Version/New Product means a release of the software or a change to the
hardware that may or may not work with the existing software and/or hardware
configuration, but that in its totality requires, in Accuray’s sole opinion,
enough change to the software and/or hardware configuration to be considered a
New Version or New Product.

1.3.5.  Consumables
means items that are not necessarily part of the CyberHeart System, but are
consumed as part of the operation of the CyberHeart System, for example
fiducials.

2.                             Service
Period. 

2.1.                     The
Agreement Term shall be for an initial period of four (4) years (years
1, 2, 3, & 4) from the Effective Date of this Agreement, including the
warranty year, with an optional fifth year. There is no payment required under
this Agreement in the first year (“Year 1”or the “Warranty Year”).

 G-2
 

CyberHeart may elect to receive an additional optional fifth year
(the “Optional Year 5”).  CyberHeart may exercise the option for
Optional Year 5 by letter sent to Accuray, in accordance with the Notice
provision set forth below, at any time up to ten (10) days before the Optional
Year 5 commences.  If CyberHeart does not exercise the
option, there will be no charge to CyberHeart,
and Accuray will not provide coverage for Optional Year 5.  If CyberHeart
exercises the option, Accuray is obligated to provide coverage on same
terms as the previous Agreement years. 
Billing will commence on the day following the anniversary of the
Effective Date of this Agreement.

2.2.                     The
Agreement Price shall be one of the following, at CyberHeart’s option
(indicate preferred option by checking a box, if no selection is made
Customer will be billed on an annual basis). 
The Agreement Price shall cover
the Base CyberHeart System, up to two (2) Multiplan Systems (including the
MultiPlan System in the Base CyberHeart System), and up to three (3) InView
Workstations.  If Customer has more than
two (2) MultiPlan Systems or three (3) InView Workstations installed, then an
additional charge of *** per
year per MultiPlan and *** per
year per InView, as applicable, will be added by Accuray to the Agreement Price
set forth below.

o                         ANNUAL:
*** per year, paid yearly in advance, for years 2, 3, 4 and Optional Year 5.

o                         QUARTERLY:
*** per quarter, paid at the beginning of each quarter, for years 2, 3, 4 and
Optional Year 5.

o                         MONTHLY:
*** per month, paid at the beginning of each month, for years 2, 3, 4 and
Optional Year 5.

3.                             Equipment
To Be Covered

3.1.                      This
Agreement is available only for equipment that was purchased directly from
Accuray, installed by Accuray or CyberHeart engineers and has not been moved
from its original installation location or disconnected from its original power
supply without written permission or direction from Accuray or CyberHeart.  This Agreement must immediately commence at
the expiration of the factory warranty period or prior service agreement.  In the event of lapse of service, CyberHeart
shall have the right to reinstate such service by payment of the current
service fee for the then-current service period in addition to the reasonable
costs for Accuray to inspect, repair, and return the System to the state at
which the System would have been had a service agreement been in force
continuously since the expiration of the System factory warranty.

4.                             Software
Maintenance (Bug Fixes and Updates)

4.1.                      For
the duration of the Agreement Term, Accuray will provide software Updates and
Bug Fixes for software that is included as a part of the CyberHeart
System.  These Updates and Bug Fixes may
be transmitted electronically to CyberHeart for subsequent installation by
CyberHeart or Customer technicians. 
Corrections of significant complexity, however, may be installed by
Accuray service engineers.  Software
maintenance will be included only for those product features that were
originally purchased with the System or subsequently purchased separately by CyberHeart
from Accuray or taken under this Agreement as a System Upgrade.

4.2.                     CyberHeart
shall be responsible for installing Bug Fixes and Updates under Accuray’s
direction, as necessary.

4.3.                      CyberHeart
is not entitled to any Upgrades or New Versions/New Products under this
Agreement.  CyberHeart may purchase
Upgrades and New Versions/New Products separately, and such Upgrades or New
Versions/New Products will then be maintained in accordance with the terms of
this Agreement.

4.4.                      During
the Agreement Term, Accuray shall provide CyberHeart with any and all
applicable product notices regarding maintenance, support, Upgrades, Updates
and Bug Fixes generally circulated by

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

 G-3
 

Accuray to Accuray
Customers with CyberHeart installations. 
CyberHeart shall ensure that all such notices are provided to Customer
in a timely manner.

4.5.                      All
such Updates and Bug Fixes, when made by Accuray or according to Accuray
instructions or the product notice, shall be considered to be done by and under
the direction of Accuray.

5.                             System
Quality Assurance Testing 

5.1.                      The
maintenance and support services provided by Accuray and/or CyberHeart under
this Agreement do not include any System Quality Assurance Testing (“QA”).  System commissioning and QA are the sole
responsibility of Customer, and Customer is advised to perform QA on a regular
and ongoing basis.  In addition, Customer
is required to maintain up-to-date QA logs. 
If Customer fails to perform the appropriate QA of the System, and to
record such QA in the appropriate logs, Accuray and/or CyberHeart, upon giving
Notice to Customer in accordance with Section 16 (Notices) of this Agreement,
reserves the right to terminate this Agreement.

5.2.                      Prior
to performing any scheduled service or Preventive Maintenance on the System,
Accuray and/or CyberHeart will review Customer’s QA logs, and if such logs are
not up-to-date, Accuray and/or CyberHeart may refuse to service the
System.  In the event that the requested
service is necessary to bring the System to a point where QA can be performed,
Accuray and/or CyberHeart will proceed with the service only after Customer
signs a written acknowledgement that QA is Customer’s sole responsibility and
that appropriate QA will be performed prior to conducting any patient
treatments.

6.                             First
Line Field Service

6.1.                     CyberHeart
is to provide to Customer, remotely and on-site when needed, routine
maintenance and service and timely response to special requests for service,
including transmission and/or installation of software Bug Fixes and Updates (“First
Line Field Service”).

6.1.1.  The First Line Field Service
Coverage Period will be the hours of at least 8:00 AM to 9:00 PM local (to
Customer’s installation location) time Monday through Saturday (excluding local
legal holidays).

6.1.2.  CyberHeart shall provide Customer
with contact points to request service on a 24-hours-a-day, 7-days-a-week (“24/7”)
basis.

6.1.3.  CyberHeart, directly or remotely as
the situation requires, either with CyberHeart’s own personnel or through
contractors, shall initially respond within one (1) hour of receipt of a call
for service.  The initial response shall
include telephone support, including (as applicable) consultations, diagnostic
assistance and advice on the use and maintenance of the System.

6.2.                     If
CyberHeart does not make available the number of adequately trained engineers
and is unable to provide First Line Field Service under this Agreement, which
results in Accuray providing support beyond what would otherwise be required,
Accuray will be entitled to charge its then-current hourly service rates for
that additional support.  In addition, if
Accuray personnel are unreasonably delayed in carrying out their
responsibilities under this Agreement by either CyberHeart or Customer, Accuray
will be entitled to charge its then-current hourly service rates for the
duration of the delay period.

7.                             Escalated
Service

7.1.                     Once
CyberHeart has fulfilled its obligation to provide First Line Field Service
without successfully resolving the problem, Accuray will provide “Escalated
Service”, which shall include any service beyond that defined as First Line
Field Service.

7.2.                     CyberHeart
will promptly notify Accuray, by calling Accuray’s Customer Support Line at
1-877-668-8667, of any problem or defect with the System which requires
Escalated Service and, at no charge, will ensure Accuray service engineers
access to the System and use of adequate facilities and equipment as necessary
for Accuray to perform the service. 
CyberHeart shall have as many service

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calls
as are reasonably needed to maintain the System so that it performs
substantially in accordance with the Specifications during the period of this
Agreement.

7.3.                     Use
of Customer facility CT scanner may be required for testing purposes and shall
be scheduled to allow as expeditious completion of service as is reasonably
possible.  CyberHeart will ensure that
Customer facility staff will operate the CT scanner.  If service is unreasonably delayed and
Accuray service engineers are required to remain on site, Accuray may choose to
charge the current hourly service rates for the duration of the delay period.

8.                             Escalated
Service Coverage Period

8.1.                     The Escalated
Service Coverage Period will be the hours of 8:00 AM to 9:00 PM local time
Monday through Saturday (excluding legal holidays).  CyberHeart has the option to request service
during non-normal hours, in which case CyberHeart shall pay the overtime
premium portion of the non-normal hours worked. 
(Non-normal hourly rate minus normal hourly rate.)

8.2.                     Accuray shall
provide CyberHeart with contact points to request service on a 24-hours-a-day,
7-days-a-week (“24/7”) basis.  Accuray,
directly or remotely as the situation requires, either with its own personnel
or through contractors, shall initially respond by telephone within twenty-four
(24) hours of receipt of a call for Escalated Service.  The initial response shall include telephone
support, including (as applicable) consultations, diagnostic assistance and
advice on the use and maintenance of the System.

9.                             Preventive
Maintenance.  Accuray will perform
Preventive System Maintenance as prescribed in the current System maintenance
manuals.  Preventive service will be
scheduled at least two (2) weeks in advance and will be performed at a mutually
agreed upon time.  Upon completion of a
service or preventive maintenance call, Accuray shall leave Customer a copy of
a service report describing the service or maintenance performed.

10.                       Replacement
Parts

10.1.               Accuray shall make a commercially
reasonable effort to supply at the time of need or stock with Accuray’s
regional service engineers all tools, equipment, replacement parts and
Consumables as would reasonably be required by Accuray to perform the required
repairs and return the System to good working order.  Accuray shall make a commercially reasonable
effort to maintain at its factory or service center(s) a stock of spare parts,
including, in particular, long-procurement-lead-time parts.

10.2.               Replacement parts used under this Agreement
may be either new manufacture or factory refurbished at Accuray’s choice.  All replacement parts and assemblies provided
will be manufactured in accordance with Accuray’s quality system, and any
applicable laws and regulations.  Parts
replaced under this Agreement become the property of Accuray and/or CyberHeart
and will be disposed of by Accuray Field Service engineers.  Notwithstanding the foregoing, all parts that
are considered by local regulation to be “hazardous” or “contaminated” waste,
or material that requires “special handling” will be disposed of or retained by
Customer at Customer’s facility.

11.                       Exceptions

11.1.                All obligations of
Accuray under this Agreement shall be suspended and/or cease in the event of:

11.1.1. Damage from fire, accident, abuse,
floods, lightning, natural disasters or other calamities commonly defined as “Acts
of God”.

11.1.2. The intentional abuse of the System or
negligence by CyberHeart or Customer.

11.1.3. System hardware or software alterations
not authorized by Accuray including any move of the System from its
installation site (other than by or at the express written direction of Accuray
and/or CyberHeart).

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11.1.4. Use of the System for other than its
intended and authorized purposes, or in a manner not consistent with Accuray’s
User Manuals, including maintenance of the necessary operating environment and
line current conditions, and the failure of CyberHeart or Customer to cure such
matter within thirty (30) days of actual written notice thereof from Accuray.

11.1.5. Failure to make payments in accordance
with the payment schedule set forth above in Section 2.2.

11.2.               If corrective action or adjustment of
the System is performed by Customer’s staff at the direction of Accuray and/or
CyberHeart, such action or adjustment shall not reduce Accuray’s responsibility
under this Agreement or liability for the performance of the System.

12.                       Cancellation.   CyberHeart shall have the right to cancel
and terminate this Agreement, with or without cause, at any time upon thirty
(30) days’ prior written notice to Accuray. 
There shall be no penalty for such cancellation and termination.

13.                       Breach.  Either party reserves the right to cancel
this Agreement by written notice upon the breach of the other.  An event of breach may include, but is not
limited to, failure to make payment due under this Agreement, failure to
provide access as required to execute the services contemplated by this
Agreement, failure to perform and log QA, or the filing of notice under
bankruptcy or equivalent laws.  If the
breaching party is unable or unwilling to cure or make a good faith effort to
cure such breach within thirty (30) days of actual written notice the other
party shall be relieved of all obligations under this Agreement and may
terminate. Termination shall not be the terminating party’s exclusive remedy,
and the terminating party shall retain all other available legal and equitable
remedies.

14.                       Limitation
of Liability and Warranty

14.1.                If it is
determined in accordance with applicable law that any fault or neglect of
either party, its employees or agents, substantially contributes to damage or
injury to third parties, such party shall be responsible in such proportion as
reflects its relative fault therefore, and shall hold the other party harmless
from any liability or damages arising out of such fault or neglect.  Accuray’s liability arising under this
Agreement shall be limited to an amount not to exceed the payment(s) received
by Accuray for the then current Agreement year. 
In addition, Accuray shall not be liable to CyberHeart or Customer in
the event that CyberHeart’s, Customer’s or any third party’s acts or omissions
contributed in any way to any loss it sustained or the loss or damage is due to
an act of God or other causes beyond its reasonable control.  IN NO EVENT WILL ACCURAY BE LIABLE TO
CYBERHEART OR CUSTOMER FOR ANY LOST PROFITS, LOST SAVINGS, LOST REVENUES,
SPECIAL, INDIRECT, INCIDENTAL DAMAGES OR OTHER CONSEQUENTIAL DAMAGES ARISING
OUT OF OR IN CONNECTION WITH THE AGREEMENT, DOWNTIME OR THE USE OR PERFORMANCE
OF THE CYBERHEART SYSTEM.

14.2.                This is a service
agreement.  THERE ARE NO INCLUDED OR
IMPLIED ACCURAY WARRANTIES OF PRODUCT FITNESS FOR A PARTICULAR PURPOSE OR
MERCHANTABILITY.

15.                       Patient
Information.

15.1.               In performing the services hereunder,
Accuray may receive from Customer, or create or receive on behalf of Customer,
patient healthcare, billing, or other confidential patient information (“Patient
Information”).  Patient Information, as
the term is used herein, includes all “Protected Health Information,” as that
term is defined in 45 CFR 164.501. 
Accuray shall use Patient Information only as necessary to provide the
services to Customer as set forth in this Agreement.  Accuray shall comply with all federal laws,
rules and regulations relating to the confidentiality of Patient Information,
including the applicable provisions of the privacy regulations promulgated
pursuant to Health Insurance Portability and Accountability Act of 1996 (“HIPAA”).

15.2.               Customer shall provide Accuray with only
de-identified Protected Health Information, in accordance with the requirements
of 45 CFR 164.514.  Any information
provided to or shared with Accuray in connection with this Agreement shall have
all identifying patient information removed, including, but not limited to,
names, addresses, zip codes, telephone numbers, social security numbers,
medical

 G-6
 

record numbers and health plan numbers, and shall be
assigned a de-identified record code in accordance with 45 CFR 164.514(c).

16.                       Assignment.  Neither party may assign this Agreement
without the other party’s prior written consent, except that Accuray may assign
this Agreement, without CyberHeart’s consent, to an affiliate or to a successor
or acquirer, as the case may be, in connection with a merger or acquisition, or
the sale of all or substantially all of Accuray’s assets or the sale of that
portion of Accuray’s business to which this Agreement relates.  Subject to the foregoing, this Agreement will
bind and inure to the benefit of the parties’ permitted successors and assigns.

17.                       Disputes
and Governing Laws

17.1.                In the event that
a dispute arises between Accuray and CyberHeart with respect to any subject
matter governed by this Agreement, such dispute shall be settled as
follows.  If either party shall have any
dispute with respect to this Agreement, that party shall provide written
notification to the other party in the form of a claim identifying the issue or
amount disputed including a detailed reason for the claim.  The party against whom the claim is made
shall respond in writing to the claim within 30 days from the date of receipt
of the claim document.  The party filing
the claim shall have an additional 30 days after the receipt of the response to
either accept the resolution offered by the other party or escalate the
matter.  If the dispute is not resolved,
either party may notify the other in writing of their desire to elevate the
claim to the President of Accuray and the Chief Executive Officer of
CyberHeart.  Each shall negotiate in good
faith and use his or her best efforts to resolve such dispute or claim.  The location, format, frequency, duration and
conclusion of these elevated discussions shall be left to the discretion of the
representatives involved.  If the negotiations
do not lead to resolution of the underlying dispute or claim to the
satisfaction of either party involved, then either party may pursue resolution
by the courts as follows.

17.2.                All disputes
arising out of or relating to this Agreement not otherwise resolved between
Accuray and CyberHeart shall be resolved in a court of competent jurisdiction,
in Santa Clara County, State of California, and in no other place, provided
that, in Accuray’s sole discretion, such action may be heard in some other
place designated by Accuray (if necessary to acquire jurisdiction over third
persons), so that the dispute can be resolved in one action.  CyberHeart hereby consents to the
jurisdiction of such court or courts and agrees to appear in any such action
upon written notice thereof.  No action,
regardless of form, arising out of, or in any way connected with this Agreement
may be brought by CyberHeart more than one (1) year after the cause of action
has occurred.

18.                       Notices.  All notices required or
permitted under this Agreement will be in writing and delivered in person,
effective immediately, by overnight delivery service, effective two (2)
business days after deposit with carrier, or by registered or certified mail,
postage prepaid with return receipt requested, effective five (5) business days
after deposit with carrier.  All
communications will be sent to the addresses set forth below or to such other
address as may be specified by either party in writing to the other party in
accordance with this Section.

 

	
  To Accuray:

  	
  To CyberHeart:

  
	
   

  	
   

  
	
  Accuray Incorporated   

  	
   

  
	
   

  	
   

  
	
  Attention:   Chief Financial Officer 

  	
   

  
	
   

  	
   

  
	
  1310 Chesapeake Terrace

  	
   

  
	
   

  	
   

  
	
  Sunnyvale, CA 94089

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  with cc to: 
  General Counsel

  	
   

  

 

 G-7
 

19.                       Trademarks.  Accuray is the owner of the trademark
CyberKnife®, and related
trademarks in the U.S. and around the world. 
If CyberHeart or Customer wishes to use the CyberKnife or other Accuray
trademarks in association with a business name, Accuray requires that CyberHeart
or Customer, respectively, execute Accuray’s standard royalty-free Trademark
License Agreement specifying the requirements for and the nature of the
acceptable use. Without the necessary license, neither CyberHeart nor Customer
is not entitled to use the Accuray marks with a business name or to otherwise
use language which would suggest a license with Accuray.

20.                       Waiver.  The waiver of any breach
or default of any provision of this Agreement will not constitute a waiver of
any other right hereunder or of any subsequent breach or default.

21.                       Severability.  If
any provision of this Agreement is held invalid or unenforceable by a court of
competent jurisdiction, the remaining provisions of the Agreement will remain
in full force and effect, and the provision affected will be construed so as to
be enforceable to the maximum extent permissible by law.

22.                       Force Majeure.  Neither
party will be responsible for any failure or delay in its performance under
this Agreement (except for the payment of money) due to causes beyond its
reasonable control, including, but not limited to, labor disputes, strike,
lockout, riot, war, fire, act of God, accident, failure or breakdown of
components necessary to order completion; subcontractor, supplier or customer
caused delays; inability to obtain or substantial rises in the prices of labor,
materials or manufacturing facilities; curtailment of or failure to obtain
sufficient electrical or other energy, raw materials or supplies; or compliance
with any law, regulation or order, whether valid or invalid.

23.                       Amendments.  Any amendment or
modification of this Agreement must be made in writing and signed by duly
authorized representatives of each party. 
For Accuray, a duly authorized representative must be any of the
following:  CEO, CFO, or General Counsel.

24.                       Entire
Agreement.  This Agreement contains
the entire Agreement of the parties hereto with respect to the subject matter
hereof, and supersedes all prior understandings, representations and
warranties, written and oral.  If any
part of the terms and conditions stated herein are held void or unenforceable,
such part will be treated as severable, leaving valid the remainder of the
terms and conditions.

25.                       Counterparts.  This
Agreement may be executed in counterparts, each of which will be deemed an
original, but all of which together will constitute one and the same
instrument.

SIGNATURE
PAGE FOLLOWS

 G-8
 

IN WITNESS
WHEREOF, the parties have caused this Agreement to be executed as of the date
set forth below by their duly authorized representatives.  The parties acknowledge and agree that this
Agreement does not become effective until it has been signed by all parties
indicated below.

	
  ACCURAY INCORPORATED

  	
  CYBERHEART INCORPORATED

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  	
  Print Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Please make certain that you have 

  	
   

  
	
   

  	
   

  	
  selected a payment option in accordance 

  	
   

  
	
   

  	
   

  	
  with Section 2.2, above

  	
   

  
															

 

 

The undersigned
acknowledges that the terms and conditions of this Agreement meet the policies
and procedures of Accuray.

	
  Signed:

  	
   

  	
   

  	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  General Counsel, Accuray Incorporated

  	
   

  

 

SIGNATURE
PAGE TO SERVICE AGREEMENT

 G-9

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