Exhibit 10.6
This document has been redacted
pursuant to a confidential treatment request.
The * symbol denotes redacted
information.
DISTRIBUTOR
AGREEMENT
This Distributor Agreement (the
“ Agreement ”) is entered into and effective as
of January 1 st , 2006 (the “ Effective
Date ”) by and between Applied Precision, LLC , a
Delaware limited liability company located at 1040 12th Avenue NW,
Issaquah, Washington 98027 U.S.A. (“ AP ”), and
Zen Voce Technologies, Ltd., a corporation located at Blk 5004, Ang
Mo Kio Ave 5, #04-06 TECHplace II, Singapore 569872 (“
Company ”). AP and Company may be referred to
individually as a “ Party ” and collectively as
the “ Parties ”.
BACKGROUND
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A
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AP manufactures
and sells the Products.
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B
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Company desires
to purchase Products from AP for resale in the
Territory.
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C
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Pursuant to the
terms and conditions of this Agreement, AP desires to sell the
Products to Company for resale in the Territory.
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NOW, THEREFORE,
in consideration of the foregoing
premises and of the mutual covenants and agreements contained in
this Agreement, the Parties hereby agree as follows:
AGREEMENT
“ Affiliate ”
means, with respect to any legally recognizable entity, any other
such entity directly or indirectly Controlling, Controlled by, or
under common Control with such entity. “ Control
,” as used in this definition, means the possession, directly
or indirectly, of the power to direct or cause the direction of the
management and policies of a legally recognizable entity, whether
through the ownership of voting shares or other voting interests,
by contract, or otherwise. Where such entity is a partnership,
limited liability company, corporation, or similar entity and has
partners, members, or shareholders with equal ownership interests
or equal control interests, by contract or otherwise, then each
such partner, member, or shareholder will be deemed to possess,
directly or indirectly, the power to direct or cause the direction
of the management and policies of that entity.
“ Confidential
Information ” means all non-public information that AP
designates as confidential at the time of the disclosure or that,
based on the nature of the information or circumstances surrounding
its disclosure, Company should in good faith treat as confidential.
Confidential Information does not include information Company can
establish by written evidence: (i) entered or subsequently
enters the public domain without Company’s breach of any
obligation owed AP; (ii) became known to Company prior to
AP’s disclosure of such information to Company;
(iii) became known to Company from a source other than AP
other
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This document has been redacted pursuant to a
confidential treatment request.
The * symbol denotes redacted
information.
than by the breach of an obligation of
confidentiality owed to AP; or (iv) is independently developed
by Company without reference to any Confidential
Information.
“ Product(s) ”
means those Product(s) listed in Exhibit A as such Exhibit A may be
updated from time to time by AP upon written notice to
Company.
“ Territory ”
means the territory described in Exhibit B.
“ Trademark(s) ”
means those trademarks listed in Exhibit C may be updated by AP
from time to time upon written notice to Company.
2.1 Appointment.
Subject to Company’s continued
compliance with the terms and conditions of this Agreement, AP
hereby appoints Company as an [*] of the Products within the
Territory and Company hereby accepts such appointment.
2.2
Sub-Distributorships. Company may not appoint sub-distributor(s) for
any of the Product(s) without AP’s prior written approval
which may be given or withheld in AP’s sole discretion.
Notwithstanding any such approval by AP of any such
sub-distributorship, Company will at all times remain fully
responsible for its performance of its obligations under this
Agreement, and will unconditionally and irrevocably guaranty its
sub-distributors’ full compliance with all terms and
conditions of this Agreement applicable to such
sub-distributors.
2.3 [*]
2.4 All Rights
Reserved. AP expressly
reserves all rights not expressly granted to Company by this
Agreement. Without limiting the generality of the foregoing
sentence, AP specifically reserves the right to, in its sole
discretion: discontinue any Product(s); change the specifications
of any Product(s); introduce new Product(s); alter the pricing of
any Product(s); and otherwise adjust its Product offerings in its
sole discretion.
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3.
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PURCHASE AND
SALE OF PRODUCTS
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3.1 Purchase Orders.
Company will submit all orders for
Product(s) to AP in the form of written purchase orders which may
be submitted by fax or electronically. Each purchase order must
clearly specify the Product part number and quantities for each
Product ordered. All purchase orders will be subject to this
Agreement.
3.2 Other Terms
Excluded. This Agreement
will exclusively govern all orders of Product(s) under this
Agreement and, except for the Product part number and quantities
for each Product ordered, any other terms contained on any purchase
order or other document or form or stated orally will be of no
effect.
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This document has been redacted pursuant to a
confidential treatment request.
The * symbol denotes redacted
information.
3.3 Acceptance of Purchase Orders.
Within a reasonable time after
receiving a purchase order from Company, AP will notify Company in
writing whether it accepts such purchase order and, if so, the
anticipated shipment date for the Product(s) ordered. Purchase
orders accepted by AP may be cancelled only by mutual written
agreement of the Parties. However, AP reserves the right to
reschedule the shipment date for all or any part of any purchase
order for Product(s) that are not then available in sufficient
quantities or on schedule to fill such purchase order.
3.4 Prices.
The prices for Products sold by AP
to Company under this Agreement will be the then current price for
such Product as set forth in Exhibit D (“Distributor
Pricing”). During the Term, AP will provide Company with an
updated Exhibit D not less frequently than on a semi-annual basis.
All prices are stated in US dollars.
3.5 Payment.
AP will invoice Company for each
shipment of Product(s) and all invoices will be due and payable
sixty (60) days after the date of the invoice. All payments
will reference the relevant invoice number and be sent by wire
transfer in US dollars as instructed by AP. At the same time
Company wires its payment to AP, Company will also send AP a
written statement by fax or email including the following
remittance information: the name of Company, date of the wire
transfer, applicable invoice number and amount of wire transfer. A
finance charge equal to the lesser of [*] or the maximum
amount allowed by applicable law will accrue on all past due
amounts until paid in full.
3.6 Shipment Terms.
All Product(s) sold under this
Agreement are sold FCA (as defined by Incoterms 2000),
AP’s facilities located at Issaquah, Washington. All
Product(s) must be shipped from such location directly to the
Territory, and all shipping documents must reflect such direct
shipment.
4.1 Marketing and
Promotion. Company will,
at its own expense, use its best efforts to market and promote the
sales of the Products in the Territory, such efforts to include,
without limitation: (i) actively and diligently marketing and
promoting the Products; (ii) featuring the Products at all
appropriate trade shows within the Territory;
(iii) maintaining a qualified, competent and professional
sales, marketing and service staff and regularly training such
staff with respect to the Products; (iv) actively encouraging
its sales and marketing staff to market and promote sales of the
Products; and (v) regularly advertising the Products in
appropriate media within the Territory.
4.2 Promotional
Materials. Before
publication, distribution, display or other use of any advertising,
marketing or promotional materials (“Promotional
Materials”) containing any of the Trademarks and/or referring
to any of the Product(s), Company will submit such Promotional
Materials to AP for its review and approval, and Company will not
use any Promotional Materials without AP’s prior written
approval. Company acknowledges that all Promotional Materials must
be consistent with the high-quality image, reputation and standards
of AP and the Product(s) and protect the good will associated with
the Trademarks.
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This document has been redacted pursuant to a
confidential treatment request.
The * symbol denotes redacted
information.
4.3 Sales Restricted to Territory.
Company will not directly or
indirectly sell, distribute, market or ship any Product(s) outside
of the Territory or to any customer within the Territory that
Company knows or should know may resell or ship the Product(s)
outside of the Territory. Company will immediately report to AP any
and all inquiries regarding the Product(s) from persons outside the
Territory or from persons within the Territory regarding delivery
outside the Territory. If Company discovers that any of its
customers have shipped any Product(s) outside of the Territory,
Company will immediately notify AP and provide AP with the name and
address of such customer, a detailed list of all Product(s) and
quantities sold to such customer and the destination of the
Product(s).
4.4 Training.
Company will, at its own expense,
send qualified Company employees to attend sales and service
training meetings at AP’s headquarters at least twice each
year as such meetings are scheduled by AP.
4.5 Customer Approval.
Company will not directly or
indirectly sell, distribute, market or ship any Product(s) to any
customer that AP notifies Company in writing is not authorized to
purchase the Product(s).
4.6 Forecasts, Reports and
Information. During the
first week of each month during the Term, Company will provide AP
with an updated rolling forecast of Company’s anticipated
monthly purchases of Products for the next twelve (12) months.
Company will provide AP with monthly reports of its marketing
activities, sales and sales prospects for the following month and
reports of successful and unsuccessful sales activities and orders
won and lost during the prior month. Company will provide
additional reports and information as AP may reasonably request
from time to time.
4.7 No Changes to
Product(s). Except as
expressly authorized by AP in its sole discretion and in writing,
Company will resell the Product(s) exactly as shipped by AP without
alteration or modification, removal of components or substitution
or installation of components.
4.8 Compliance with
Law. At all times during
the Term, Company will comply with any and all applicable laws and
regulations, and maintain in full force and effect all permits,
approvals and licenses required for Company to lawfully enter into,
and perform its obligations under, this Agreement. Company will
promptly provide AP with copies of any and all communications
relevant to any of the Product(s) and/or Trademarks that Company
receives from any governmental or regulatory body within the
Territory (and certified English language translations of any of
the foregoing issued in any language other than
English).
4.9 Insurance.
Throughout the Term, [*] of
this Agreement Company will maintain in force insurance policies
with reputable insurers sufficient in coverage and amounts to
secure its obligations and potential liabilities under this
Agreement. Company will be solely responsible for all premiums,
deductibles and/or retentions associated with such insurance. At
the request of AP, Company will provide to AP certificates of
insurance evidencing such coverage and naming AP as an additional
insured under such policies. Failure by AP to request, or by
Company to furnish, such certificates will not constitute a waiver
by AP of any insurance requirement. If AP
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This document has been redacted pursuant to a
confidential treatment request.
The * symbol denotes redacted
information.
so requests, Company will also provide to AP, or
make available for its review, copies of the insurance
policies.
4.10 [*]
4.11 Customer Support and
Service. AP will be
responsible to provide customer repair and maintenance services as
may be required by Company’s customers that purchase
Product(s) including, installation, maintenance, and any other
professional consultation and/or services normally necessary or
desirable to provide for customer satisfaction and to maintain good
customer relations. Company will provide instruction in Product(s)
use as required in support of AP, Company’s product sales
activities and end-user customer satisfaction, and will perform
such instruction in a professional, competent and timely manner.
Company will provide AP with monthly written reports of all service
activities including the name of the customer, time of receipt of
service request, service performed, result and/or status of service
call and root cause of problem requiring service. During the
effective period of the end-user Limited License & Limited
Warranty, AP will provide replacement parts and AP is responsible
for support and/or services required by Company’s customers.
After the expiration of such end-user warranty, AP will provide
replacement parts pursuant to then applicable service agreements
and/or at its then current prices.
4.12 Demonstration Products and
Reference Accounts. Company m