DOUBLETWIST INC
S-1/A, EX-10.15, 2000-10-13
BUSINESS SERVICES, NEC
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                                                               Exhibit 10.15

                                DOUBLETWIST, INC.
                             DISTRIBUTION AGREEMENT

     This agreement ("Agreement") dated the 29th day of September, 2000
     ("Effective Date") is by and between DoubleTwist, Inc. ("DoubleTwist")
     having its principal offices at 1999 Harrison Street, Suite 1100, Oakland,
     CA 94612, and Hitachi, Ltd., including its subsidiaries and affiliates in
     which 50% or more of the stock is directly or indirectly controlled by
     Hitachi, Ltd. ("Hitachi") having it principal offices at 6, Kanda-Surugadai
     4-Chome, Chiyoda-ku, Tokyo, 101-8010 Japan.

1.   PURPOSE. The purpose of this Agreement is to set forth the terms and
     conditions pursuant to which Hitachi will market and distribute DoubleTwist
     software and/or database products described on Exhibit A attached hereto
     and made a part hereof ("Licensed Product(s)").

2.   DEFINITIONS.

     (a) All terms defined in the Product Description shall have the meanings
         therein ascribed to them for purposes of this Agreement.

     (b) "End Users" shall be defined as current and future Hitachi customers
         which are headquartered in the Region (as defined hereinbelow) and
         which purchase a Licensed Product from Hitachi or a Third Party
         Distributor.

     (c) "Updates" shall be defined as generally available revisions to Licensed
         Product released from time to time by DoubleTwist.

     (d) "Upgrade" shall be defined as the license of a) a more expensive
         Licensed Product, or b) a Licensed Product with additional features,
         by End Users.

     (e) "Licensed Product" shall be defined as those DoubleTwist products
         described in Exhibit A, as may be amended from time to time.

     (f) "DoubleTwist Documentation" shall be defined as the user manuals and
         similar materials customarily supplied by DoubleTwist to End Users.

     (g) "Third Party Software" shall be defined as any coding system or other
         component supplied by a third party and accessible through or used with
         a Licensed Product, which Software may change from time to time. Third
         Party Software associated with a particular Licensed Product shall be
         described in the relevant Order Attachment.

     (h) "Region" shall be defined as the following countries: Japan, China,
         Nepal, Myanmar, Laos, Thailand, Kampuchea (Cambodia), Vietnam, North
         Korea, South Korea, Malaysia, Philippines, Indonesia, Taiwan,
         Singapore, Bhutan, Mongolia, New Guinea, Australia and New Zealand.





                                      - 1 -

THE SYMBOL "*******" IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.


<PAGE>


     (i) "Third Party Distributor" shall be defined as an entity selected by
         Hitachi which shall be granted, in a writing signed by DoubleTwist and
         Hitachi containing terms and conditions substantially the same as those
         in this Agreement, the right to distribute the Licensed Product, and
         DoubleTwist Documentation or Hitachi Documentation, directly to End
         Users.

     (j) "Master Subscription Agreement" and "Order Attachment" shall be defined
         as the document described in Exhibit D which may be amended by
         DoubleTwist from time to time.

3.   GRANT OF RIGHTS.

     (a) Subject to execution of this Agreement by Hitachi on or before
         September 29, 2000 and payment of the Distribution Fees by Hitachi to
         DoubleTwist as provided in Exhibit B hereto, DoubleTwist grants to
         Hitachi during the Term a personal, exclusive, non-transferable,
         royalty-free right to market, sublicense distribution rights to Third
         Party Distributors and distribute, solely to Third Party Distributors
         and End Users in the Region, software packages comprising a Licensed
         Product, subject to the terms and conditions of this Agreement. Hitachi
         shall not transfer any Licensed Product other than in the form
         described in Exhibit A. Subject also to the provisions of this section
         3(a), DoubleTwist grants Hitachi the right to provide virtual private
         network ("VPN") access by End Users to the Licensed Product running on
         computer equipment at Hitachi facilities.

     (b) Subject to thirty (30) days advanced review and approval by
         DoubleTwist, DoubleTwist grants Hitachi an exclusive, non-transferable,
         royalty-free right (i) to use, make copies of and translate into the
         Japanese language ("Hitachi Documentation") the DoubleTwist
         Documentation for marketing, distribution, service and support of
         Licensed Product and (ii) to furnish such documentation to Third Party
         Distributors and End Users in connection with Hitachi's distribution of
         Licensed Products, and maintenance and support thereof. Hitachi shall
         own all right, title and interest to the Hitachi Documentation,
         provided that Hitachi shall not preclude any other entity or person
         acting on DoubleTwist's behalf from copying, distributing or
         translating the DoubleTwist Documentation.

     (c) DoubleTwist further grants Hitachi during the Term the right to use and
         distribute the DoubleTwist trademarks and logos, as provided by
         DoubleTwist a copy of which is attached as Exhibit C, as related to
         Hitachi's marketing efforts for the Licensed Product, which includes
         but is not limited to brochures and advertisements. DoubleTwist also
         grants to Hitachi for the Term the right to manufacture and distribute
         seminar and tradeshow giveaway items ("Giveaway Items"), subject to
         DoubleTwist's prior approval of each such item, which items display a
         DoubleTwist trademark or logo.

     (d) DoubleTwist reserves all other rights to the Licensed Products which
         are not expressly specified in this Agreement.

4.   DUTIES OF DOUBLETWIST

     (a) Upon DoubleTwist's receipt of a purchase order from Hitachi,
         DoubleTwist shall make available to Hitachi or End User a copy of the
         Licensed Product and associated DoubleTwist Documentation and/or ID
         code and password to access Licensed Product from DoubleTwist's web
         site, as specified in the relevant Order Attachment. Hitachi shall have
         thirty (30) days in which to inspect the Licensed



                                       - 2 -

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         Products to determine if they comply with the specifications contained
         in DoubleTwist Documentation. If Hitachi has not informed DoubleTwist
         of any failure of the Licensed Product within thirty (30) days of
         Hitachi's receipt, the Licensed Products shall be deemed accepted
         ("Acceptance Date").

     (b) DoubleTwist shall provide five (5) days training for marketing,
         distribution and installation of the Licensed Product. Hitachi
         employees shall be trained at DoubleTwist's principal offices without
         charges or, at Hitachi's election, at another site subject to Hitachi's
         reimbursement to DoubleTwist of all reasonable travel and accommodation
         expenses related to such training. DoubleTwist shall, without charge
         and during DoubleTwist's regular business hours, reply to questions
         from Hitachi regarding the operation and maintenance of the Licensed
         Product, by telephone, mail and E-mail, necessary for Hitachi's
         distribution, installation, maintenance, and support of the Licensed
         Product.

     (c) DoubleTwist will be responsible for providing to Hitachi and
         maintaining Updates to the Licensed Product without charge. Updates
         will be Licensed Product-specific and their frequency will be
         determined solely by DoubleTwist.

     (d) DoubleTwist will provide, without charge, back-up support and
         maintenance of Licensed Product to Hitachi related to the appropriate
         use, error correction, and contents of the Licensed Products, to the
         same extent that DoubleTwist provides such support for its products
         generally. Upon any termination of this Agreement, DoubleTwist or an
         entity designated by DoubleTwist will provide support and maintenance
         of Licensed Product to End Users according to the standard DoubleTwist
         Maintenance and Support Policy in effect at such time at no cost to
         Hitachi.

     (e) DoubleTwist shall collaborate with and provide reasonable
         assistance to Hitachi to market the Licensed Products in the Region,
         including but not limited to participation in Hitachi-sponsored
         seminars, meetings with customers, Third Party Distributors and End
         Users, and executive meetings between the parties.

5.   DUTIES OF HITACHI

     (a) Hitachi will be responsible for installation and on-going front
         line support and maintenance of Licensed Product for End Users.

     (b) Hitachi will be responsible for notifying DoubleTwist in writing of
         orders it receives for Licensed Products, per Section 7(a).

     (c) Hitachi will provide best efforts marketing services for the
         Licensed Product.

     (d) Hitachi will provide to DoubleTwist, and update in a timely manner,
         a listing of Third Party Distributor and End Users including the
         contact name, organization name, address, phone number, e-mail address
         and Licensed Product. DoubleTwist's use of Third Party Distributor and
         End User information will be strictly limited to DoubleTwist's
         marketing and support activities. Such information shall constitute
         "Confidential Information" for purposes of Section 8, hereinbelow.


                                        - 3 -

<PAGE>


     (e) During the Term, and in the event of any breach or termination of
         this Agreement by Hitachi before the end of the Term ******* from the
         date of such breach or termination, Hitachi shall not ******* during
         the Term or any extension of the Term.

 6.  END USER LICENSE TERMS

     (a) Hitachi agrees that the use of the Licensed Product by End Users
         will be subject to the terms and conditions of the applicable
         DoubleTwist Master Subscription Agreement and relevant Order Attachment
         in substantially the form as attached hereto as Exhibit D.

     (b) DoubleTwist shall, after the first anniversary of the Effective
         Date, have the right, at its sole discretion, to increase the Standard
         List Price of the Licensed Product. DoubleTwist shall notify Hitachi
         within thirty (30) days of any such change, and Hitachi shall have an
         additional sixty (60) days from such notification to institute such
         price change within Region.

     (c) Hitachi shall, in addition to the other amounts payable under this
         Agreement, pay all sales and other taxes, federal, state, or otherwise,
         however designated, which are levied or imposed by reason of the
         transactions contemplated by this Agreement, except taxes related to
         the income of or the employees of DoubleTwist.

     (d) Hitachi agrees to notify End Users of the requirement to license
         Third Party Software for use with the Licensed Product. Notwithstanding
         any other provision of this Agreement, DoubleTwist shall have no
         liability and makes no warranty with regard to any such Third Party
         Software, and shall have no responsibility to procure or otherwise make
         available to End User such Third Party Software. DoubleTwist shall
         notify Hitachi in the event of any change in Third Party Software for
         each Licensed Product.

7.   PAYMENT TERMS AND RECORD KEEPING

     (a) Within ten (10) days of the end of each calendar month, Hitachi shall
         provide DoubleTwist with a report ("Monthly Report"), which shall
         detail the following items:

         i.    A listing of the number and type of Licensed Products distributed
               by Hitachi to End Users during the previous calendar month; and

         ii.   The number of returns or rejections, if any, of the Licensed
               Product that occurred during the previous calendar month.

     (b) The Monthly Report described in Section 7 (a) shall be certified as
         correct by an officer of Hitachi. Hitachi shall keep accurate and
         correct records of distributions of Licensed Product as is appropriate
         to determining the amount due DoubleTwist under this Agreement. Copies
         of these records shall be retained by Hitachi ("Hitachi Records") for
         at least three (3) years following a given month and shall be made
         available at Hitachi's principal office during normal business hours
         for inspection once each calendar year by DoubleTwist or its authorized
         representative, for the sole purpose of verifying reports and payments
         made under this Agreement. DoubleTwist shall notify Hitachi in writing
         more than sixty (60) days prior to the date of such inspection.

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<PAGE>

     (c) In the event that it is determined that Hitachi has inadvertently
         underreported in excess of five percent (5%) of the amounts due
         DoubleTwist, then in addition to the amount due DoubleTwist by Hitachi
         from such under-reporting, Hitachi shall also reimburse DoubleTwist the
         reasonable cost of such inspection of Hitachi's records. Following such
         underreporting, DoubleTwist shall have the right to inspect Hitachi
         Records once every six (6) months during the term of the Agreement, and
         in the event a subsequent underreporting in excess of five percent (5%)
         is discovered, Hitachi shall reimburse DoubleTwist the reasonable cost
         of each such inspection.

8.   CONFIDENTIALITY

     (a) For the purposes of this Agreement, "Confidential Information"
         means that information disclosed by each party to the other party, that
         is related to, but is not limited to, the terms and conditions of this
         Agreement, the existence of the discussions between the parties, trade
         secrets of each party, any nonpublic information relating to each
         party's product plans, designs, ideas, concepts, costs, prices,
         finances, marketing plans, business opportunities, personnel, research,
         development or know-how and any other nonpublic technical or business
         information of each party. Confidential Information does not, however,
         include information that: (a) is now or subsequently becomes generally
         available to the public through no fault or breach on the part of the
         receiving party; (b) the receiving party can demonstrate to have had
         rightfully in its possession without an obligation of confidentiality
         prior to disclosure hereunder; (c) is independently developed by the
         receiving party without the use of any Confidential Information of the
         disclosing party as evidenced by written documentation; or (d) the
         receiving party rightfully obtains from a third party who has the right
         to transfer or disclose it and who provides it without a
         confidentiality obligation.

     (b) The Confidential Information is provided for the purposes of
         facilitating the distribution of DoubleTwist's bioinformatics products
         or projects (the "Business Purpose"). The receiving party will not
         disclose, publish or disseminate Confidential Information to anyone
         other than those of its employees who need to know for the Business
         Purpose, and the receiving party will take reasonable precautions to
         prevent any unauthorized use, disclosure, publication or dissemination
         of Confidential Information. The receiving party accepts Confidential
         Information for the Business Purpose and in connection with the
         business discussions regarding the Business Purpose hereunder. The
         receiving party will not use Confidential Information other than for
         the Business Purpose for its own or any third party's benefit without
         the prior written approval of an authorized representative of the
         disclosing party in each instance. If the receiving party receives
         notice that it may be required or ordered by any judicial or
         governmental entity to disclose Confidential Information of the
         disclosing party, it will take all necessary steps to give the
         disclosing party sufficient prior notice in order to contest such
         requirement or order.


9.   INDEMNIFICATION.

     (a) DoubleTwist represents and warrants to Hitachi that the Licensed
         Products were developed or licensed by DoubleTwist and, *******.

     (b) DoubleTwist shall indemnify, defend and hold harmless Hitachi from all
         costs, damages or expenses (including attorney's fees) which may be
         finally assessed in any action resulting from a claim that


                                        - 5 -

<PAGE>


         *******; provided that (1) Hitachi shall give DoubleTwist prompt
         written notice of any such action, claim or threat of suit (2)
         DoubleTwist shall take over, settle or defend such action, claim or
         suit through counsel of DoubleTwist's choice and under DoubleTwist's
         sole direction, and 3) Hitachi shall cooperate fully with DoubleTwist
         in connection with such action, claim or suit.

     (c) Hitachi shall indemnify, defend and hold harmless DoubleTwist from
         all costs, damages or expenses (including attorney's fees) which may be
         finally assessed in any action resulting from a claim that any
         statement made by Hitachi in marketing, advertising, licensing or
         promoting the Licensed Product is false or misleading or for any
         material breach by Hitachi of its obligations hereunder, provided that
         (1) DoubleTwist shall give Hitachi prompt written notice of any such
         action, claim or threat of suit; (2) Hitachi shall take over, settle or
         defend such action, claim or suit through counsel of Hitachi's choice
         and under Hitachi's sole direction and at Hitachi's expense; and (3)
         DoubleTwist shall cooperate fully with Hitachi in connection with such
         action.

    (d)  The foregoing provisions shall not apply to ******* not expressly
         authorized in writing by DoubleTwist herein.

    (e)  Except for ******* covered by part Section 9 (a) and (b), Hitachi shall
         indemnify and hold DoubleTwist harmless against any liability, or any
         litigation cost or expense (including attorney's fees), arising out of
         third party claims of any kind against DoubleTwist as a result of
         Hitachi's use or distribution of the Licensed Product, Hitachi
         Documentation, DoubleTwist Documentation or Giveaway Items.

10.  WARRANTY

     (a) DoubleTwist represents and warrants that the computer programs,
         databases and/or other reports included in the Licensed Product will,
         for sixty (60) days from each Acceptance Date, conform to their
         then-current DoubleTwist Documentation.

     (b) If defects in the Licensed Product are discovered by Hitachi,
         DoubleTwist agrees ******* .

     (c) EXCEPT AS SPECIFICALLY PROVIDED HEREIN, THERE ARE NO WARRANTIES,
         EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED
         WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

11. LIMITATION OF LIABILITY.

     (a) DoubleTwist's sole liability to Hitachi for any claims,
         notwithstanding the form of such claims (e.g., contract, negligence or
         otherwise), arising out of errors or omissions in the Licensed Product
         shall be to furnish the correct information as soon as reasonably
         practicable.

     (b) DoubleTwist's sole liability for claims, notwithstanding the form
         of such claims (e.g., contract, negligence or otherwise), arising out
         of unavailability of support or the unusability of the Licensed Product
         shall be to use reasonable efforts to correct the Licensed Product as
         soon as reasonably practicable.


                                        - 6 -

<PAGE>


     (c) DoubleTwist shall not be liable or deemed to be in default for any
         delay or failure to perform under this Agreement resulting directly or
         indirectly from any cause beyond DoubleTwist's reasonable control such
         as acts of Gods, act of any governmental authority, riot, revolution,
         fires or war.

     (d) EXCEPT FOR ANY CAUSE COVERED BY PARAGRAPH 9, IN NO EVENT WILL
         DoubleTwist BE RESPONSIBLE FOR SPECIAL, INDIRECT, INCIDENTAL OR
         CONSEQUENTIAL DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION,
         DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION LOSS OF
         BUSINESS INFORMATION, OR ANY OTHER PECUNIARY LOSS) ARISING OUT OF THE
         SALE, USE OR INABILITY TO USE THE LICENSED PRODUCT, EVEN IF DoubleTwist
         HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

12.  TERM. Except as otherwise provided herein, this Agreement shall be
     effective as of September 29, 2000 ("Effective Date") and shall
     terminate on September 30, 2001 (the "Term"). The Term of this
     Agreement shall be automatically extended for consecutive one (1) year
     periods unless a party's written notice of intent to terminate is
     received by the other party no later than Sixty (60) days before the
     end of the then-current Term. Upon any termination of this Agreement,
     Hitachi shall not have, and shall not contact or represent to any
     entity in any manner that it does have, the right to provide any
     information, data, software, or any other subject matter related to
     Licensed Product or any other product or service of DoubleTwist.

13.  TERMINATION.

     (a) Notwithstanding anything to the contrary contained herein, either
         party may terminate this Agreement (1) upon any material breach by the
         other of its obligations under this Agreement, or (2) if the other
         party shall commit an act of bankruptcy or become insolvent, by sending
         such party written notice of termination which shall state the nature
         of the breach. Such notice shall be effective thirty (30) days
         following the date thereof, unless such breach shall have been remedied
         during such thirty-day period.

     (b) In addition, DoubleTwist may terminate this Agreement, and any
         license granted to an End User for whom the Distribution Fee has not
         been paid, if Hitachi fails to pay DoubleTwist any Distribution Fees or
         taxes due hereunder.

     (c) The foregoing rights and remedies shall be cumulative and in
         addition to all other rights and remedies available to each party in
         law and in equity.

     (d) All licenses with End Users which are entered into due to Hitachi's
         distribution of the Licensed Product will continue in accordance with
         the terms and applicable period as provided in the applicable
         DoubleTwist Master Subscription Agreement and relevant Order
         Attachment.

     (e) Notwithstanding anything to the contrary contained herein, the
         rights and obligations set forth in Paragraphs 5(e), 6(b), 8,9 and 11
         shall survive termination of this Agreement.

14.  PUBLICITY. The parties agree to jointly announce the execution of this
     Agreement and the general relationship covered herein, but not the
     financial terms of the Agreement, and shall obtain prior written


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<PAGE>

         approval of the other in the event a party desires to make a subsequent
         publication related to this Agreement.

 15. MISCELLANEOUS TERMS.

     (a) Each party represents to the other that this Agreement has been
         executed and delivered by an authorized representative of such signing
         party.

     (b) The headings and captions to this Agreement are for reference only and
         are not to be construed in any way as terms hereof.

     (c) Unless otherwise stated, all notices required under this Agreement
         shall be in writing and served by Certified mail or Registered mail,
         return receipt requested, with a copy by first class mail or by
         personal services and shall be deemed to have been duly given when sent
         if mailed to the addressee or when received if hand delivered at the
         address designated below or such subsequent address as may be
         designated in writing by the respective party:

                  if  to DoubleTwist:

                  DoubleTwist, Inc.
                  1999 Harrison Street, Suite 1100
                  Oakland, CA 94612
                  Attn: Legal Counsel

                  if to Hitachi:

                  [Contract]
                  Software & Alliance Business Center, Procurement Division.
                  Hitachi Ltd.,
                  6, Kanda-Surugadai 4-Chome, Chiyoda-ku, Tokyo, 101-8010 Japan
                  Attn: Senior Manager, Software & Alliance Business Center

                  [Delivery]
                  Bioinformatic, Life Science Grp.
                  Hitachi, Ltd.
                  1-3-1 Minamidai,
                  Kawagoe-shi, Saitama, 350-1165 Japan
                  Attn: Manager, Bioinformatics

                  [Technical]
                  Bioinformatic, Life Science Grp.
                  Hitachi, Ltd.
                  1-3-1 Minamidai,
                  Kawagoe-shi, Saitama, 350-1165 Japan
                  Attn: Manager, Bioinformatics


                                    - 8 -

<PAGE>

     (d) If any of the provisions of this Agreement are invalid, illegal or
         unenforceable under any applicable statute or rule of law, the
         validity, legality or enforceability of the remaining provisions shall
         not be affected or impaired thereby.

     (e) This Agreement shall be interpreted in accordance with the laws of the
         State of California, USA, as if performed entirely in California by
         California residents.

     (f) Except for assignment in conjunction with a change of control, this
         Agreement shall not be assigned by either party without the written
         consent of the other party. In event of assignment in conjunction with
         change of control, this Agreement will bind and insure to benefit of
         each party's permitted successors and assigns.

     (g) DoubleTwist shall obtain any and all export licenses and/or
         governmental approvals that may be required to export the Licensed
         Product to Japan. Hitachi agrees that the Licensed Product may be
         subject to restrictions under the export control laws and regulations
         of the United States of America, including but not limited to the U.S.
         Export Administration Act and the U.S. Export Administration
         Regulations. Hitachi agrees not to export or re-export, directly or
         indirectly, the Licensed Product in whole or in part without first
         obtaining any required license or other approval from the U.S.
         Department of Commerce or any other agency or department of the United
         States Government.

     (h) This Agreement is the entire agreement between the parties relating to
         the subject matter hereof and supersedes all prior understanding,
         writings, proposals, representations or communications, oral or
         written, of either party. This Agreement may be amended only by an
         instrument executed by the authorized representatives of both parties.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
     the date first written above.

     DoubleTwist, Inc.                             Hitachi, Ltd.

     By:_____________________                      By:_____________________

     Title:____________________                    Title:____________________

     Date:____________________                     Date:____________________



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<PAGE>



                                    EXHIBIT A

                                LICENSED PRODUCTS

Includes the Components described below and current DoubleTwist Documentation.

Following is the Standard List Price for each Component, based on a one (1)
year term:

<TABLE>
<CAPTION>

        COMPONENT                          STANDARD LIST PRICE
        ---------                          -------------------
        <S>                                <C>

        Prophecy                           US$*******
        Gene Forest                        US$*******
        Genomic Viewer                     US$*******
        DoubleTwist.com Gold Level         US$*******

</TABLE>


                                     - 10 -

<PAGE>

                                    EXHIBIT B

                            DISTRIBUTION FEE SCHEDULE

1.   Hitachi shall pay to DoubleTwist on or before October 15, 2000 a
     distribution fee ("Distribution Fee") of *******, and shall pay to
     DoubleTwist an additional Distribution Fee of ******* on or before April
     15, 2001. Payment of such Fees shall entitle Hitachi to distribute in the
     Region Components of the Licensed Product totaling ******* during the Term
     based on the rates described in paragraph 2. For the first extension of the
     Term Hitachi shall pay to DoubleTwist on or before October 15, 2001 a
     Distribution Fee of *******, and shall pay to DoubleTwist an additional
     Distribution Fee of ******* on or before April 15, 2002. Payment of such
     Fees shall entitle Hitachi to distribute in the Region Components of the
     Licensed Product totaling ******* during Year Two based on the then-current
     Standard List Price for DoubleTwist Components. For the third and
     subsequent years, the parties shall mutually agree on the applicable
     Distribution Fees.

2.   Based on the Standard List Price of the Component stated in Exhibit
     A, licenses to the Licensed Product in Year One shall be discounted by X
     percent (X%) to Hitachi under the following schedule:

        X = ******* for DT.com
        X = ******* for licenses to Prophecy, Gene Forest or
                      Genomic Viewer *******
        X = ******* for licenses to Prophecy, Gene Forest or
                      Genomic Viewer *******
        X = ******* for license of any product to *******

     For clarity, and by example only, for each Prophecy license ******* in
     Year One, ******* shall be counted against the Distribution Fee.

3.   For each Licensed Product distributed by Hitachi after distribution
     of the Components to which Hitachi is entitled by payment of the
     Distribution Fee described in paragraph 1, above, Hitachi shall pay to
     DoubleTwist a Distribution Fee equal to the then-current Standard List
     Price minus the discount rate as specified in paragraph 2, above, which
     amount shall be due and payable to DoubleTwist within thirty (30) days of
     distribution of Licensed Product to End User.

4.   Unless this Agreement is terminated before the end of the Term, all
     Licensed Product licensed in the Region during the Term shall be
     attributable to Hitachi, and to the extent Hitachi is asked by DoubleTwist
     to participate and does participate in any license of a Licensed Product
     outside of the Region, Hitachi and DoubleTwist shall confer and agree on
     the portion of the license fee actually received by DoubleTwist that shall
     be allotted to Hitachi based on such participation.

5.   Hitachi America, Ltd. ("HAL") will act as a disbursement agent of
     Hitachi. Notices and invoices to HAL shall be delivered or addressed to:

                  Hitachi America, Ltd.
                  Procurement and Technical Service Division
                  2000 Sierra Point Parkway
                  Brisbane, CA 94005-1835
                  Attn:    Purchasing Manager


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