Amendment No. 1 to OEM Supply and Purchase Agreement
Exhibit 10.67
Amendment No. 1 to
OEM Supply and Purchase Agreement
OEM Supply and Purchase Agreement
This is an Amendment to the OEM and Purchase Agreement for Purchase and Sale (the “OEM
Agreement”) made as of the date indicated below between Cardiac Science Inc. (“CSI”) and Nihon
Kohden Corporation (“NK”).
Date of the OEM Agreement (“Agreement”): March 1, 2002
Effective Date of this Amendment No. 1: March 16, 2005.
CSI and NK hereby agree as follows:
1. Prices. Section 8.1 shall be replaced with the following:
The prices for the Products shall be as set forth in Appendix 2 and unless expressly otherwise
agreed by the Parties CSI shall sell and NK shall purchase the Products at those prices.
2. CSI Product Changes. Section 5.5 shall be replaced as follows:
CSI shall inform about any material changes of specification or any other material changes to
the Products at least 180 days prior to their implementation. If any proposed modification might
affect the performance, quality or functioning of the critical component of Products or the
approvals, permissions, consents or licenses applicable to them, CSI shall not modify the Products
unless NK has given its consent to the modification in writing. If NK gives its consent to the
proposed modification, the modified Products shall replace the prior version of the Products and
the terms and conditions of this Agreement shall continue to apply. If the modified Products are
not acceptable to NK, CSI shall, if feasible, continue to deliver to NK unmodified Products.
Concerning the Electrodes, if the modification relates to a change in the gel material, CSI
shall provide NK with the modification notice and biocompatibility data at least 180 days prior to
the proposed date of shipment of the modified Electrodes.
3. Out of warranty service. Section 5.6 shall be replaced as follows:
With respect to out-of-warranty product returns, CSI shall agree to repair the out of warranty
Product for a period of at least [*] from the date of delivery by CSI of the Product. NK shall
contact CSI and inform CSI of the relevant information and request a returned goods authorization
and upon approval by CSI, CSI shall give a return authorization number within two (2) days from
receiving request from NK. As promptly as possible, but not later than ten (10) working days after
CSI’s receipt of the defective Products, CSI shall to the extent possible, repair the defective
Product. CSI shall provide a report together with any product being returned. Each Party shall
bear own shipping costs. Title and risk of loss or damage to the product shall pass to the other
party upon delivery to the other party’s carrier. CSI shall apply it standard service rate to out
of warranty repairs, unless the cost of repair is estimated to exceed $200. In such cases,
[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.
NK shall have the right to approve in advance the nature and the amount of the repair costs
and expenses associated with the out of warranty Product requiring repairs
4. Spare Parts. The first sentence of Section 5.8 shall be replaced as follows:
CSI will make best effort to make compatible spare parts available on reasonable commercial
terms for a period of at least [*] from the delivery by CSI of the Product in question.
The balance of Section 5.8 of OEM Agreement remains the same.
5. Forecast. Section 6.1 shall be replaced with the following:
NK shall submit to CSI periodic forecasts of its anticipated requirement of the Products for
the subsequent five (5) month period on monthly basis. The purchase forecasts are not binding on
NK. The forecasts shall be provided in good faith. CSI shall notify NK of any inability as a
result of causes beyond CSI’s control (i.e. Force Majeure) to supply according to NK’s forecasts no
later than four (4) weeks prior to the forecast date of shipment and in such case shall inform NK
of the maximum amount it is able to supply and its shipment schedule.
6. Acceptance upon shipment. This new section shall be added as Section 7.4 as
follows:
All sales of Products to NK shall be deemed accepted upon shipment by CSI and title to the
Products shall pass to NK upon delivery to NK’s carrier.
By adding a new section, the section from 7.4 to 7.6 shall be changed to Section 7.5 to 7.7.
7. Non-conforming Products. The title of Section 7.4 shall be changed from
Acceptance to Non-conforming Products, change Section number from 7.4 to 7.5 and shall be
replaced as follows:
NK shall inspect Products, based on the criteria for incoming inspection which shall be
separately and mutually agreed to by CSI and NK, and promptly determine if any of the Products are
non-conforming. Upon reasonable request, CSI shall provide reasonable assistance to NK in order to
determine whether any of the Products are non-conforming. Non-conforming Products may be returned
freight prepaid to CSI after receipt of a return authorization number from CSI. CSI shall issue a
return authorization number within two (2) days from receiving information from NK. No returns
will be accepted without a return authorization number. As promptly as possible, but not later
than ten (10) working days after CSI’s receipt of non-conforming Products, CSI shall, at its option
and expense, either repair or replace non-conforming Products. CSI shall provide a
repair/replacement report together with any goods being returned. Title and risk of loss or damage
to the products shall pass to the other party upon delivery to the other party’s carrier. CSI will
prepay transportation charges back to NK and shall reimburse NK for any costs of transportation
incurred by NK in connection with the return to CSI of properly rejected goods. Other than as
permitted in this Section or under the terms of the warranty stated herein, goods may not be
returned to CSI.
[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.
8. Product and Battery Warranty. Section 9.1 (a) shall be replaced with the
following: CSI represents and warrants that any Products supplied by CSI shall be in accordance
with the specifications and quality requirements specified in this Agreement and shall be warranted
to be free from defects or faults in design, workmanship and materials for a period of [*] after
delivery by CSI of each Product to NK. With respect to batteries, they shall be supplied in
accordance with the specifications and quality requirements specified in this Agreement and shall
be warranted for a period of [*] after delivery by CSI to NK.
9. Addition of AED models 9131, 9231 and substitute models for discontinuation
Products.
A revised Appendix 2, as attached hereto, shall replace the Appendix 2 of the Agreement in its
entirety. This revised Appendix 2 includes AED model 9131, 9231 and substitute Products for
discontinued AED models 9200, 9100, 9100-D/9200-D and 9110-D/9210-D. NK has the option of ordering
any of the currently available models to include; 9100G, 9200G, 9131 and 9231.
[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.
All other provisions of the OEM Agreement remain the same.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the date set forth below:
Cardiac Science Inc. | Ninon Kohden Corporation | |||||
Signature:
|
/s/ Xxxxxxx X. Xxxxx | Signature: | /s/ Kohei Ono | |||
Name:
|
Xxxxxxx X. Xxxxx | Name: | Kohei Ono | |||
Title:
|
Chairman & CEO | Title | Corporate Director | |||
General Manager | ||||||
Engineering Operations | ||||||
Date: 3/16/2005 | Date: 3/16/2005 |
[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.
APPENDIX 2
(Revised per Amendment No.1)
Prices
The price for the Products shall be as set forth herein and unless expressly otherwise agreed
by the Parties CSI shall sell and NK shall purchase the Products at those prices.
Nihon Kohden branded Product | Transfer Price | |||
AED model 9100G-299 (includes
display) G3 platform with
display with 5 years shelf
life battery |
[*] | |||
AED model 9200G (includes display) biphasic G3 platform with
display with 5 years shelf life battery |
[*] | |||
AED model 9131
|
||||
G3 standard version with 5 years shelf life battery |
[*] | |||
AED model 9231
|
[*] | |||
G3 standard version biphasic with 5 years shelf life battery
|
[*] | |||
NK branded AED Electrodes |
[*] | |||
USB to RS-232 Plug in Adaptor |
[*] | |||
All prices are in US Dollars (USD). Any quantity can be ordered |
[*] |
AED Products package includes:
One (1) defibrillator, one (1) extended life lithium battery, one (1) user manual, one (1)
serial cable and one (1) CD for Rescue Link. NK branded Electrodes will be purchased separately.
[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.