Exhibit 10.23
CONFIDENTIAL TREATMENT
REQUESTED
NON-EXCLUSIVE DISTRIBUTION
AGREEMENT
between
DEXCOM, INC.
and
RGH Enterprises, Inc.
Dated April 30, 2008
***** CERTAIN INFORMATION WITHIN THIS EXHIBIT
HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS
NON-EXCLUSIVE DISTRIBUTION
AGREEMENT
THIS NON-EXCLUSIVE DISTRIBUTION
AGREEMENT (the “Agreement”) is made April 30, 2008
by and between DexCom, Inc., a Delaware corporation, with a
principle place of business at 6340 Sequence Drive, San Diego,
California 92121 (the “Company”) and RGH Enterprises,
Inc., an Ohio corporation with a principle office at 1810 Summit
Commerce Park, Twinsburg, Ohio 44087 (the
“Distributor”). The Company and the Distributor are
referred to individually as a “Party” and collectively
as the “Parties”.
The Parties hereby agree as
follows:
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1.
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Definitions and
Interpretation
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1.1.1
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“Customer” means the end-user
patient to which the Distributor sells the Products;
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1.1.2
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“Effective Date” means
April 30, 2008, being the date upon which this Agreement is
deemed to commence;
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1.1.3
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“Intellectual Property Rights” means
any rights with respect to any intellectual property including but
not limited to rights with respect to or under or pursuant to any
patents, trademarks, copyrights, know-how and trade
secrets;
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1.1.4
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“FOB
Shipping Point” means freight on board the place from which
the Company ships the Products to the Distributor;
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1.1.5
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“Price” means the Price identified
in Schedule 1 , as amended from time to time in accordance
with Section 6.1, below;
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1.1.6
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“Products” means the Products
identified in Schedule 1 , as amended from time to time in
accordance with Section 6.1, below; and
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1.1.7
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“Territory” means United States of
America.
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1.2.1
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The words
“include”, “including” and “in
particular” shall be construed as being by way of
illustration only and shall not be construed as limiting the
generality of any foregoing words.
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1.2.2
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Any references
to Recitals, Section or Schedules are to provisions of and
Schedules to this Agreement.
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1.2.3
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Section and
paragraph headings are inserted for ease of reference only and
shall not affect construction.
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DexCom Confidential
1
***** CERTAIN INFORMATION WITHIN THIS EXHIBIT
HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS
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1.2.4
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Words denoting
one gender include all genders; words denoting individuals or
persons include corporations and trusts and vice versa; words
denoting the singular include the plural and vice versa; and words
denoting the whole include a reference to any part
thereof.
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1.2.5
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References to
this Agreement mean this Agreement as the same may be amended,
notated, modified or replaced from time to time with the agreement
of the Parties.
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2.
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Appointment of Distributor, Additional Products
and Relationship.
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2.1
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The Company
appoints the Distributor to be its non-exclusive distributor in the
Territory for the Products and the Distributor hereby accepts such
appointment subject to the terms of this Agreement. The Company
reserves the right to appoint other non-exclusive distributors and
agents in the Territory for the Products. The Company also reserves
the right to market and sell the Products directly to Customers in
the Territory.
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2.2
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The Company may
from time to time at its discretion offer additional products to
the Distributor for inclusion in this Agreement. If the Distributor
accepts those products, Schedule 1 of this Agreement will be
amended and signed by authorized representatives of the Parties and
thereafter such products shall be treated as the
Products.
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3.
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Relationship of Independent Contractor,
Expenses, No Agency or Authority.
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3.1
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The Distributor
is and shall act as an independent contractor, and not as a
partner, co-venturer, agent, employee, franchisee or representative
of the Company. No partnership, joint venture, agency or employment
is intended between Company and Distributor.
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3.2
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Except as may
be specifically provided for in this Agreement, the Distributor
shall be responsible for any and all expenses incurred by
Distributor in the performance of Distributor’s duties under
this Agreement.
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3.3
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Nothing in this
Agreement shall be construed as giving Distributor authority to
enter into obligations on the Company’s behalf or to act as
the Company’s agent for any purpose; nor shall the
Distributor hold itself out as having any such
authority.
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4.1
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The Distributor
hereby agrees:
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4.1.1
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to maintain a
properly trained and equipped sales force for the Products,
including but not limited to making its sales personnel available
to the Company for training in the use and sale of the Products and
coordination of sales efforts;
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4.1.2
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to maintain
such ordering, billing and filling of customer orders, facilities
and personnel as the Company may reasonably specify;
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DexCom Confidential
2
***** CERTAIN INFORMATION WITHIN THIS EXHIBIT
HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS
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4.1.3
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to contact the
Company for technical or repair services required;
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4.1.4
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to promptly
notify the Company in writing of each new Customer per Schedule
3;
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4.1.5
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to implement
such mutually agreed upon promotional programs as the Company may
reasonably specify;
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4.1.6
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to comply with
such good practices as the Company may reasonably specify in
respect of storage, handling, distribution and sale of the
Products;
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4.1.7
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to leave in
position and not cover, alter (unless authorized to do so in
writing by the Company), remove or erase any notices, warnings,
instructions, marks (including without limitation, notices that a
patent, trademark, design or copyright or other Intellectual
Property Right relating to the Products that is owned by the
Company or a third party) or any other writing which the Company
may place on or affix to the Products. To maintain the integrity of
the Products, the Company has approval on all repackaging
configurations the Distributor may utilize in regard to the
Products;
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4.1.8
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to not use any
trade or service mark which is confusingly similar to any trade or
service mark used by the Company;
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4.1.9
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to not infringe
upon or otherwise use any Intellectual Property Rights of the
Company;
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4.1.10
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not to do
anything to bring the Company or the Products into
disrepute;
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4.1.11
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to provide such
information about sales of the Products, the markets for them and
competitive market share activity as the Company may reasonably
request and Distributor is not prohibited from
providing;
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4.1.12
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to promptly
notify the Company of all incidents, potential events or complaints
relating to the Products, and to comply with all reasonable
directions of the Company, whether regarding the handling of
specific incidents, events or complaints in the Territory, or
regarding the continued sale of the Products in the Territory in
the light of any other incident, event, complaint or information
otherwise reported to the Company;
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4.1.13
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to ensure that
it and its employees conform(s) with all legislation, rules,
regulations and statutory requirements existing in the Territory
from time to time in connection with the Products;
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4.1.14
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to meet with
representatives of the Company at least quarterly to discuss
promotional programs and to implement such promotional programs as
the Company may reasonably specify;
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DexCom Confidential
3
***** CERTAIN INFORMATION WITHIN THIS EXHIBIT
HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS
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4.1.15
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to provide
advertising and sales representation for local and regional trade
shows where the Distributor has representatives, and to provide an
annual list of shows to be attended by the Distributor;
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4.1.16
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not to provide
any warranty with respect to the Products other than the
Company’s warranty;
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4.1.17
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to obtain and
maintain reasonable amounts of insurance to protect it and its
employees and agents for loss or damage of inventory, property
damage or any other claims arising out of or in any way connected
with the acts or omissions of Distributor, its agents or employees,
and other insurance which may be required in the Territory and to
provide evidence of such insurance to the Company from time to time
at the Company’s request;
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4.1.18
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to appoint any
sub-distributor or sub-agent only with the prior written approval
of the Company, with the exception of a wholly owned subsidiary of
RGH Enterprises, Inc.;
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4.1.19
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to provide all
reasonable assistance to the Company to ensure the successful
performance of this Agreement;
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4.1.21
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to provide to
the Company Product information with Customer name, Customer
address (including city, state and zip code), Customer phone
number, prescribing physician name, prescribing physician city,
prescribing physician state, prescribing physician zip code,
prescription from physician, payer name, date of sale, product sold
and serial number as defined in Schedule 3 . Distributor
hereby agrees to establish and maintain a tracking system in
compliance with the Safe Medical Device Act and the FDA Regulation
(21 CFR 821) as amended to enable the Products to be promptly
located within commercial distribution. The Distributor agrees to
provide the Company with device tracking and sales tracing
information, at such times as the Company may reasonably request,
in order to demonstrate the effectiveness of the tracking systems
in accordance with Schedule 3 . The device tracking records
shall not be discarded or destroyed without prior written consent
from the Company;
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4.1.22
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not to alter or
damage any Products;
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4.1.23
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not to sell any
Products which are altered, damaged, or contaminated or which have
been removed from their original packaging
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4.1.24
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to comply with
the Company’s standard ordering methods, as set forth on
Schedule 2 ;
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4.1.25
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to obtain
Products and supplies related to the Products only from the
Company;
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DexCom Confidential
4
***** CERTAIN INFORMATION WITHIN THIS EXHIBIT
HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS
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4.1.26
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in relation to
the Products, not to seek Customers outside the Territory or
establish any branch or maintain any distribution depot outside the
Territory;.
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4.1.27
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to maintain
medical, financial, billing and administrative records concerning
Customers to whom Distributor sells Products and to keep these
records for at least 7 years from the date Distributor sold the
Products, which will be made available to the Company upon written
request; and
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4.1.28
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within three
business days following the last day of each month, to provide
sell-through reports (which reports shall include data concerning
the number of sales and corresponding sales price), sales return
reports and warranty replacement reports.
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5.1
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The Company
hereby agrees:
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5.1.1
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to provide
Distributor and Distributor’s Customers technical assistance
and support for the Products via access to the Company’s
technical services telephone line at such times as the Company
shall determine in its sole discretion;
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5.1.2
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to attend
regional sales meetings and national conventions as reasonably
requested by the Distributor; and
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5.1.3
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to provide
training classes for the Distributor’s sales and internal
Product support personnel on the Products as requested by the
Distributor and agreed to by the Company.
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6.1
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The Prices for
the Products will be as set out on Schedule 1 . Such Prices
may be increased from time to time by the Company provided it gives
the Distributor not less than [*****] days prior written notice of
such increases.
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6.2
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The Products
will be supplied FOB Shipping Point freight prepaid. Distributor
shall be responsible for all applicable sales taxes.
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6.3
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The Distributor
shall inspect all Products upon delivery and must notify the
Company of any missing, damaged or defective Products within
[*****] days of delivery. The Company shall not be liable to the
Distributor for any such damaged, missing or defective Products not
reported within such [*****] day period. In any event, the
Company’s liability in respect of any Product shall be
limited at the Company’s option to replacement of the Product
in question or repayment of the Price for that Product.
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DexCom Confidential
5
***** CERTAIN INFORMATION WITHIN THIS EXHIBIT
HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS
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6.4
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All invoices
submitted by DexCom, Inc. to the Distributor shall be payable
within [*****] days after the date of such invoice. If the
Distributor fails to pay or procure payment of the full amount when
due, and without in any manner excusing such violation, the
Distributor agrees to pay the Company interest at the greater of:
(i) a rate of [*****]% per month; or (ii) the highest
rate legally permissible on the amount (including interest) due and
owing to the Company, from the date the payment is due. The
Distributor also agrees to pay all collection costs, expenses and
reasonable attorney fees for collection of any amount due and
unpaid. Without prejudice to any of its other rights, the Company
may withhold shipments of the Products if the Distributor has not
paid an invoice when due.
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6.5
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The Distributor
shall bear the cost of any sales, excise or other taxes imposed by
any governmental authority unless appropriate tax exemption
certificate or resale certificate is provided to the Company prior
to shipment.
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6.6
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The Distributor
shall establish and maintain creditworthiness with the Company,
which shall be established prior to the effective date of this
Agreement in the sole judgment of the Company, based on the
Company’s review of Distributor’s credit
references.
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7.
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Supply of
Products and Promotional Literature
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7.1
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Subject to
availability, the Company shall use its reasonable efforts to
supply the Distributor’s requirements for the Products. No
order shall be effective until approved and accepted in writing by
the Company. The Company may, in its sole discretion, reject or
cancel any order for any or no reason and the Company shall incur
no liability of any kind for such action or for any delay or
failure of delivery or performance.
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7.2
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Nothing in this
Agreement shall prevent the Company from selling or supplying
Products to third parties in or outside the Territory.
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7.3
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The Company
will provide [*****] the quantities of each piece of available
literature as set out on Schedule 1 and shall give
reasonable assistance to the Distributor. If the Company determines
that the Distributor’s requests for literature are in excess
of the quantities set out on Schedule 1 , the Company and
the Distributor shall mutually agree upon a fee schedule for
literature.
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7.4
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The Distributor
hereby agrees that if it makes reference to or statements about the
Products in the Distributor’s own catalogues, promotional
literature, advertisements or the like:
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