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STRATEGIC ARRANGEMENT
9 Months Ended
Jun. 29, 2012
STRATEGIC ARRANGEMENT

16. STRATEGIC ARRANGEMENT

In April 2012, VMS entered into a strategic global partnership with Siemens AG (“Siemens”) through which, among other things, the Company and Siemens will collaborate to develop interfaces that will enable the Company’s ARIA® oncology information system software to connect with Siemens linear accelerators and imaging systems. Under the agreement establishing this collaboration, the Company committed to make certain payments, including up to $10 million in fixed fees and $20 million in license fees, in the event certain product development milestones are achieved. The Company also pays for additional licenses beyond the minimum quantities set forth in the agreement. As of June 29, 2012, no amount related to achievement of product development milestones was payable under this agreement.

 

In addition, pursuant to this agreement, the Company will represent Siemens diagnostic imaging products to radiation oncology clinics initially in most international markets and in North America later in calendar year 2012, and Siemens will represent the Company’s equipment and software products for radiotherapy and radiosurgery within its offerings to its healthcare customers. This agreement also provides a framework for both companies to co-develop new imaging and treatment solutions in the future.