Exhibit
10.3
CONFIDENTIAL PORTIONS HAVE
BEEN OMITTED BASED UPON A REQUEST
FOR CONFIDENTIAL TREATMENT
PURSUANT TO RULE 24b-2 OF THE
SECURITIES EXCHANGE ACT OF
1934 AND HAVE BEEN SEPARATELY FILED
WITH THE
COMMISSION.
EXCLUSIVE DISTRIBUTION
AGREEMENT
FOR
UNITED STATES AND CANADIAN
HOSPITALS
This Exclusive Distribution Agreement for United
States and Canadian Hospitals (this “Agreement”) is
made as of June 10, 2005 (the “Effective Date”), by and
between Cardiac Science, Inc., a Delaware corporation
(“Supplier” or “Cardiac Science” or
“CSI”), a medical device developer and manufacturer of
automated external defibrillators having its principal place of
business at 1900 Main Street, Irvine, CA 92614 and GE Medical
Systems Information Technologies, Inc., a Wisconsin corporation
d/b/a GE Healthcare (“GEMS-IT”), having its principal
place of business at 8200 W. Tower Avenue, Milwaukee, WI
53223.
W I T N E S S E T H:
WHEREAS, CSI and GEMS-IT are parties to that
certain OEM Purchase and Supply Agreement dated July 29, 2003, an
“Addendum 1” to the OEM Purchase and Supply Agreement
dated as of March 24, 2004, Amendment One to OEM Purchase and
Supply Agreement dated August 10, 2004 (“Amendment
One”), and Second Amendment to OEM Purchase and Supply
Agreement dated February 14, 2005 (collectively, the “OEM
Purchase and Supply Agreement”).
WHEREAS, CSI and GEMS-IT are further amending
the OEM Purchase and Supply Agreement on the date of this
Agreement.
WHEREAS, CSI and GEMS-IT desire to supplement
the OEM Purchase and Supply Agreement by providing GEMS-IT with
exclusive distribution rights to the OEM Products to United States
and Canadian hospitals.
NOW THEREFORE, in consideration of the premises
and other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, is the parties hereto agree as
follows:
1.
Construction
. This Agreement is separate and
distinct from the OEM Purchase and Supply Agreement, and the terms
and conditions set forth in the OEM Purchase and Supply Agreement
shall remain unaffected by the execution of this Amendment. The
rights granted to GEMS-IT hereunder are in addition to the rights
granted to GEMS-IT under the OEM Purchase and Supply Agreement.
Regardless of any language contained in any Order, all OEM Products
purchased referencing this Agreement will be governed by the terms
and conditions of the OEM Purchase and Supply Agreement and shall
be treated as if they were placed under the OEM Purchase and Supply
Agreement; this Agreement only provides for additional distribution
rights to GEMS-IT. If this Agreement expires or is terminated, such
termination shall not affect the OEM Purchase and Supply Agreement
or the parties’ rights and obligations with respect to the
OEM Products previously sold; provided however, that if the OEM
Purchase and Supply Agreement is terminated, this Agreement shall
be automatically terminated. Terms not otherwise defined herein,
shall have the meanings set forth in the OEM Purchase and Supply
Agreement. This Agreement supplements the OEM Purchase and Supply
Agreement and not that certain OEM Purchase Agreement entered into
by the parties on July 29, 2003.
2.
Term of the Agreement and Certain
Rights Associated with Minimum Purchases . This Agreement will commence as of the
Effective Date and continue until June 30, 2009
(“Term”), unless GEMS-IT fails to comply with the
minimum purchase obligations contained herein, or GEMS-IT acquires
a company that manufacturers external defibrillators and
distributes said external defibrillators in the United States, in
which case Supplier shall have the option to terminate this
Agreement by providing written notice of termination, which shall
be effective immediately. Any extension beyond the Term shall be
based upon the mutual agreement of the parties.
3.
Exclusive Distribution
Rights . In addition to
the distribution rights granted in the OEM Purchase and Supply
Agreement, Supplier hereby grants to GEMS-IT the exclusive right to
promote, sell and distribute OEM Products, including Parts and
Accessories, and all of Supplier’s other defibrillators,
accessories, consumables or other products that may be supplied in
conjunction with or as upgraded models to such defibrillators
(collectively, &