# EDGAR Filing Document

**Accession Number:** 0001616543
**File Stem:** 0001104659-26-022298
**Filing Date:** 2026-3
**Character Count:** 1066900
**Document Hash:** 56465f6b2e0968698ee9a1b47d222f58
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-022298.hdr.sgml**: 20260302

**ACCESSION NUMBER**: 0001104659-26-022298

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 121

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260302

**DATE AS OF CHANGE**: 20260302

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Senseonics Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001616543
- **STANDARD INDUSTRIAL CLASSIFICATION:** INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 471210911
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37717
- **FILM NUMBER:** 26708410

**BUSINESS ADDRESS:**
- **STREET 1:** 20451 SENECA MEADOWS PARKWAY
- **CITY:** GERMANTOWN
- **STATE:** MD
- **ZIP:** 20876
- **BUSINESS PHONE:** (301) 515-7260

**MAIL ADDRESS:**
- **STREET 1:** 20451 SENECA MEADOWS PARKWAY
- **CITY:** GERMANTOWN
- **STATE:** MD
- **ZIP:** 20876

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ASN Technologies, Inc.
- **DATE OF NAME CHANGE:** 20140813

?xml version='1.0' encoding='ASCII'? SENSEONICS HOLDINGS, INC._December 31, 2025

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

(Mark One)

☒&nbsp;&nbsp;&nbsp;&nbsp; **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended December 31, 2025** __________________________________________

**OR**

☐&nbsp;&nbsp;&nbsp;&nbsp; **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from _______________________ to _____________________________

**Commission file number 001-37717**

**SENSEONICS HOLDINGS, INC.**

(Exact name of registrant as specified in its Charter)

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| | |
|:---|:---|
| **Delaware**<br>(State or other jurisdiction of<br>incorporation or organization) | **47-1210911**(I.R.S. Employer<br>Identification No.) |

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**20451 Seneca Meadows Parkway**

**Germantown, MD 20876-7005**

**(301) 515-7260**

(Address and telephone number, including area code, of registrant's principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of Each Class:** | **Trading Symbol (s)** | &nbsp;&nbsp;&nbsp;**Name of Each Exchange on which Registered** |
| **Common Stock, par value $0.001 per share** | **SENS** | &nbsp;&nbsp;**Nasdaq Stock Market LLC** |

---

Securities registered pursuant to section 12(g) of the Act: **None**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ◻ &nbsp;&nbsp;&nbsp;&nbsp;No ⌧&nbsp;&nbsp;&nbsp;&nbsp;

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ◻ &nbsp;&nbsp;&nbsp;&nbsp;No ⌧

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ &nbsp;&nbsp;&nbsp;&nbsp;No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ &nbsp;&nbsp;&nbsp;&nbsp;No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ◻ Accelerated filer ◻ Non-accelerated filer ⌧ Smaller reporting company ⌧ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ◻

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ⌧

As of June 30, 2025, the last business day of the registrant's last completed second quarter, the aggregate market value of the common stock held by non-affiliates of the registrant was approximately $376.7 million based on the closing price of $9.52 per share as reported on the NYSE American on such date.

As of February 20, 2026, 41,770,466 shares of common stock, $0.001 par value, were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's definitive Proxy Statement for its 2026 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K.

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| [**PART I**](#PARTI_541694) |  |
| [Item 1. Business](#Item1Business_43660) | **4** |
| [Item 1A. Risk Factors](#Item1ARiskFactors_861156) | **26** |
| [Item 1B. Unresolved Staff Comments](#Item1BUnresolvedStaffComments_589972) | **69** |
| [Item 1C. Cybersecurity](#Item1C_Cybersecurity) | **70** |
| [Item 2. Properties](#Item2Properties_757194) | **71** |
| [Item 3. Legal Proceedings](#Item3LegalProceedings_505956) | **71** |
| [Item 4. Mine Safety Disclosures](#Item4MineSafetyDisclosures_42612) | **72** |
| [**PART II**](#PARTII) |  |
| [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#Item5MarketforRegistrantsCommonEquity_65) | **72** |
| [Item 6. \[Reserved\]](#Item6SelectedConsolidatedFinancial) | **72** |
| [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](#Item7ManagementsDiscussionandAnalysis_27) | **72** |
| [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](#Item7AQuantitativeandQualitativeDisclosu) | **84** |
| [Item 8. Financial Statements and Supplementary Data](#Item8FinancialStatementsandSupplementary) | **85** |
| [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](#Item9ChangesinandDisagreements_485300) | **121** |
| [Item 9A. Controls and Procedures](#Item9AControlsandProcedures_930784) | **121** |
| [Item 9B. Other Information](#Item9BOtherInformation_729783) | **121** |
| [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#Item_9C) | **122** |
| [**PART III**](#PARTIII_898815) |  |
| [Item 10. Directors, Executive Officers and Corporate Governance](#Item10DirectorsExecutiveOfficersandCorpo) | **122** |
| [Item 11. Executive Compensation](#Item11ExecutiveCompensation_627904) | **122** |
| [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#Item12SecurityOwnershipofCertainBenefici) | **122** |
| [Item 13. Certain Relationships and Related Transactions, and Director Independence](#Item13CertainRelationshipsandRelatedTran) | **122** |
| [Item 14. Principal Accountant Fees and Services](#Item14PrincipalAccountingFeesandServices) | **122** |
| [**PART IV**](#PARTIV_998435) |  |
| [Item 15. Exhibit and Financial Statement Schedules](#Item15ExhibitsandFinancia_831396) | **123** |
| [Item 16. Form 10-K Summary](#Item16_Form_10K_Summary) | **126** |
| [Signatures](#SIGNATURES_875539) | &nbsp;&nbsp;&nbsp;&nbsp;**127** |

---

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

This Annual Report on Form 10-K (this "Annual Report") contains forward-looking statements that involve substantial risks and uncertainties. The forward-looking statements are contained principally in Part I, Item 1: "Business," Part I, Item 1A: "Risk Factors," and Part II, Item 7: "Management's Discussion and Analysis of Financial Condition and Results of Operations," but are also contained elsewhere in this Annual Report. In some cases, you can identify forward-looking statements by the words "may," "might," "will," "could," "would," "should," "expect," "intend," "plan," "objective," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue", "target", "seek", "contemplate", and "ongoing," or the negative of these terms, or other comparable terminology intended to identify statements about the future. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this Annual Report, we caution you that these statements are based on a combination of facts and factors currently known by us and our expectations of the future, about which we cannot be certain. All statements other than statements of historical fact could be deemed forward-looking, including but not limited to statements about:

● the timing, progress and results of transition of commercial responsibility for Eversense back to the Company from Ascensia;

● the timing of product launches;

● the clinical utility of Eversense;

● our ability to develop future generations of Eversense;

● our ability to service our outstanding indebtedness;

● the timing and availability of data from our clinical trials;

● the timing of our planned regulatory filings and potential regulatory approvals and CE Certificates of Conformity;

● our future development priorities;

● our ability to obtain and maintain adequate reimbursement and third-party payor coverage for Eversense;

● the purchasing patterns of our customers, including as a result of seasonality, which may be impacted by the timing and use of deductibles and out-of-pocket expense limits;

● our expectations about the willingness of healthcare providers to recommend Eversense to people with diabetes;

● our commercialization, marketing and manufacturing capabilities and strategy;

● our ability to comply with applicable regulatory requirements;

● our ability to maintain our intellectual property position;

● our estimates regarding the size of, and future growth in, the market for continuous glucose monitoring systems;

● our estimates regarding the period of time for which our current capital resources will be sufficient to fund our continued operations; and

● our estimates regarding our future expenses and needs for additional financing.

Forward-looking statements are based on our management's current expectations, estimates, forecasts and projections about our business and the industry in which we operate, and our management's beliefs and assumptions are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. You should refer to "Item 1A. Risk Factors" in this Annual Report on Form 10-K for a discussion of important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking statements. As a result of these factors, we cannot assure you that the forward-looking statements in this Annual Report will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. The forward-looking statements in this Annual Report represent our views as of the date of this Annual Report. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we

undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Annual Report.

You should read this Annual Report and the documents that we reference in this Annual Report and have filed as exhibits to this Annual Report completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

Unless otherwise indicated or the context otherwise requires, all references in this Annual Report to "the Company," "we," "our," "ours," "us" or similar terms refer to Senseonics Holdings, Inc. and its subsidiaries. "Senseonics," the Senseonics logo, Eversense, Eversense E3 and Eversense 365 continuous glucose monitoring and other trademarks or service marks of Senseonics Holdings, Inc. appearing in this Annual Report are the property of Senseonics Holdings, Inc. This Annual Report contains additional trade names, trademarks and service marks of others, which are the property of their respective owners.

**PART I**

**Item 1. Business**

**Overview** 

We are a medical technology company focused on the development and commercialization of a long-term, implantable continuous glucose monitoring ("CGM") system to improve the lives of people with diabetes by enhancing their ability to manage their disease with relative ease and accuracy. Our implantable CGM system ("Eversense"), including Eversense E3 and Eversense 365 CGM systems are designed to continually and accurately measure glucose levels in people with diabetes via an under-the-skin sensor, a removable and rechargeable smart transmitter, and a convenient app for real-time diabetes monitoring and management for a period of up to twelve months in the case of Eversense 365 and six months in the case of Eversense E3, as compared to seven to 15 days for non-implantable CGM systems. In September 2024, the 365-day extended life Eversense E3 CGM system was approved by the FDA and, through Ascensia Diabetes Care Holdings AG ("Ascensia"), we began commercializing Eversense 365 in the fourth quarter of 2024. In January 2026, we took over full commercial responsibility for Eversense 365 in the United States and began marketing and distributing the product with our own sales force. In June 2022, we affixed the CE Mark to the Eversense E3 CGM system and Ascensia began commercialization in select markets in Europe during the third quarter of 2022. In January 2026, the Company obtained CE Mark approval for Eversense 365 and expects to launch Eversense 365 in the European Territories by the second half of 2026.

Prior to the commercialization of the current Eversense systems, we sold Eversense system measuring glucose levels for up to 180 days in the United States and prior to that 90 days in both the United States and select European markets. In September 2017, we affixed the CE Mark to the Eversense XL CGM system to be sold in select markets in Europe and the Middle East. In June 2018, we obtained FDA approval for the 90-day Eversense CGM system for distribution throughout the United States. In June 2019, we received FDA approval for the non-adjunctive indication (dosing claim) for the 90-day Eversense system. With this approval and the availability of a new app in December 2019, the Eversense system can be used as a therapeutic CGM in the United States to replace fingerstick blood glucose measurement to make treatment decisions, including insulin dosing.

We are in the early commercialization stages of the Eversense brand and are focused on driving awareness of our CGM system amongst people with diabetes and their healthcare providers. In both the United States and our overseas markets, we have entered into strategic partnerships and distribution agreements that allow third party collaborators with direct sales forces and established distribution systems to market and promote Senseonics' various Eversense systems and future generation products, including our "Gemini" product variation to allow for a 2-in-1 glucose monitoring system combining the functionality of CGM and flash glucose monitoring, in an implantable sensor with battery that may be utilized with a smart transmitter to get continuous glucose readings and alerts, or be utilized through a swipe over

the sensor with a smart phone to get on-demand glucose reading without a smart transmitter and our "Freedom" product variation which would include Bluetooth in the sensor eliminating the on-body component.

As described in detail below, in August 2020, we entered into a collaboration and commercialization agreement ("Commercialization Agreement"), with Ascensia pursuant to which we granted Ascensia the exclusive right to distribute Eversense worldwide, with certain initial exceptions. On September 3, 2025, the Company and Ascensia signed a memorandum of understanding ("MOU") related to the transfer of commercial operations relating to Eversense from Ascensia back to the Company. On December 31, 2025, the parties entered into a master asset purchase agreement (the "Master Asset Purchase Agreement") formalizing this transfer and subsequently entered into an Amended and Restated Collaboration and Commercialization Agreement (the "A&R Commercialization Agreement"), which terminated Ascensia's right to market Eversense products in the U.S. and rendered Ascensia's right to market Eversense products in Italy, Germany, Spain and Sweden (the "European Territories") non-exclusive. Pursuant to the A&R Commercialization Agreement, effective January 1, 2026, we are entitled to 100% of the revenues derived from the sale of Eversense products in the European Territories. We expect to enter into a series of asset purchase agreements to acquire certain additional assets related to Ascensia's commercial Eversense activities in the European Territories on or before March 31, 2026.

**Significant Business Developments**

*Global Commercialization of Eversense CGM Systems*

In September 2024, the FDA approved the Eversense 365 CGM system for marketing and sale in the U.S. As described in this Annual Report, Ascensia had the exclusive right to distribute the Company's Eversense system worldwide for people with diabetes prior to December 31, 2025. Ascensia began commercializing Eversense 365 in the U.S. in October 2024. Prior to that, Ascensia commercialized the Eversense E3 CGM system which was approved by the FDA in February 2022. In June 2022, we affixed the CE Mark to the Eversense E3 CGM system, and Ascensia began commercialization in all European Economic Area ("EEA") markets during the third and fourth quarters of 2022. In January 2026, the Company obtained CE Mark approval for Eversense 365 and expects to launch Eversense 365 in the European Territories by the second half of 2026.

In connection with the launch of Eversense 365, Ascensia and the Company initiated a new direct to consumer U.S. marketing campaign on social and digital media platforms. 'The One Year. One CGM.' campaign expanded market awareness of the Eversense 365 system's unique benefits among people with diabetes and healthcare professionals. 'The One Year. One CGM' campaign aims to highlight the reality of the diabetes experience, through everyday complexities, successes, and challenges that people with diabetes face. The campaign demonstrates how Eversense 365 provides a differentiated CGM option, with unparalleled flexibility and long-term use that allows it to seamlessly integrate into real life. Following the launch of Eversense 365, the Company has experienced higher direct-to-consumer leads compared to pre-launch months, continued growth in patient shipments with December 2025 being the largest compared to any previous month in company history, an increase in the number of new prescribers and prescriptions, and an increase in new patients. In 2026 we continue to drive efforts to raise patient and prescriber awareness with targeted programs such as paid social ads, website optimization strategies, the Eversense 365 and twiist<sup>TM</sup> automated insulin delivery (or "AID") campaign, and other focused marketing strategies.

*Transfer of Eversense Commercial Operations*

On September 3, 2025 the Company and Ascensia signed a MOU related to the transfer of commercial operations relating to Eversense from Ascensia back to the Company, including the proposed termination, orderly unwinding of, and smooth transition of the commercial relationship between the Company and Ascensia. On December 31, 2025, the Company and Ascensia entered into the Master Asset Purchase Agreement, pursuant to which, among other things, the Company agreed to acquire Ascensia's right, title and interest in and to certain assets related to the marketing, selling and distribution of Eversense in the United States (such assets, the "U.S. Purchased Assets"). Pursuant to the terms of the Master Asset Purchase Agreement, the Company agreed to assume certain liabilities and obligations associated with the U.S. Purchased Assets (the "U.S. Assumed Liabilities" and together with the U.S. Purchased Assets,

the "U.S. Asset Purchase"), including, but not limited to, certain liabilities under the contracts transferred to the Company under the Master Asset Purchase Agreement, liabilities arising out of the use or ownership of the transferred assets after the closing, and liabilities and obligations arising from certain employees who were offered employment with Senseonics Inc. pursuant to new employment letter agreements. The U.S. Asset Purchase closed on January 1, 2026 (the "U.S. Closing").

Subject to the terms and conditions of the Master Asset Purchase Agreement, as well as the negotiation and execution of local asset purchase agreements which we expect to execute on or before March 31, 2026 (the "Local Purchase Agreements"), the Company and/or its affiliates are in the process of acquiring certain additional assets related to Ascensia's commercial Eversense activities in the European Territories (such assets, the "European Purchased Assets") and in connection therewith expect to assume certain liabilities and obligations associated with the European Purchased Assets (the "European Assumed Liabilities" and together with the European Purchased Assets, the "European Asset Purchases"). The European Asset Purchases remain subject to negotiation and the execution of Local Purchase Agreements. The closing of each of the European Asset Purchases will be subject to the terms and conditions set forth in the Master Asset Purchase Agreement and the Local Purchase Agreements, and are expected to close on or before June 30, 2026.

In connection with the execution of the Master Asset Purchase Agreement, the Company and Ascensia also entered into the A&R Commercialization Agreement on December 31, 2025, which amended and restated that certain Collaboration and Commercialization Agreement, dated August 9, 2020, as amended to date (the "Existing Commercialization Agreement"). The A&R Commercialization Agreement terminated Ascensia's right to market Eversense products in the U.S. and rendered Ascensia's right to market Eversense products in the European Territories non-exclusive. Ascensia agreed to continue to sell and market the Eversense product in Europe to support the orderly transition of the business pending the closing of the European Asset Purchases and to allow Senseonics to transfer its local tender contracts. These rights and obligations apply from January 1, 2026 until the later of (i) January 1, 2027, (ii) the transfer of all local tender contracts, or (iii) the wind down of certain other commercial activities. Following the U.S. Closing, Ascensia has no further rights to revenues from the sale of Eversense products in the U.S. Pursuant to the A&R Commercialization Agreement, effective January 1, 2026, the Company is entitled to 100% of the revenues derived from the sale of Eversense products in the European Territories. Senseonics will pay for certain transition services, and certain other costs, to maintain and achieve the orderly transition of the commercial operations in the European Territories. In connection with the transfer of commercial operations relating to Eversense from Ascensia back to the Company, the Company reassessed its remaining performance obligations under its arrangement with Ascensia and adjusted the related contract assets and contract liabilities in accordance with ASC 606 based on the satisfaction (or non-satisfaction) of performance obligations as of the termination date.

The continued success of the commercial launch of the Eversense globally will continue to depend on several factors such as: (1) the success of the transition of commercial responsibility for Eversense back to the Company (2) growing the installed base of users, (3) increasing patient awareness of Eversense above current levels in order to expand the population of Eversense users, through driving sales and marketing efforts on the Eversense system, (4) increasing awareness and adoption of Eversense by healthcare providers, including high volume CGM prescribers, through expanded targeted marketing efforts, (5) educating patients and prescribers regarding the product and its benefits relative to legacy products, (6) continuing to grow the base of the authorized inserters through geographically targeted efforts so that potential users locating a qualified inserter of Eversense is not an impediment to adoption, (7) timely establishing and maintaining favorable payor coverage for the product, including transitioning commercial payors from six month to one year coverage and (8) more effective tender participation outside the U.S.

**Background**

Diabetes is a chronic, life-threatening disease for which there is no known cure. The disease is caused by the body's inability to produce or effectively utilize the hormone insulin, which prevents the body from adequately regulating blood glucose levels. If diabetes is not managed properly, it can lead to serious health conditions and complications, including heart disease, limb amputations, loss of kidney function, blindness, seizures, coma and even death. According to the 2025 International Diabetes Federation Atlas, an estimated 589 million people worldwide had diabetes as of the date of the report. The number of people with diabetes worldwide is estimated to reach 853 million by

2050, driven primarily by growth in type 2 diabetes and due to various reasons, including an aging population, changes in dietary trends primarily as the result of increased urbanization, and a higher prevalence of the disease in younger people. Diabetes is typically classified into two primary types. Type 1 diabetes is an autoimmune disorder that usually develops during childhood and is characterized by the inability of the body to produce insulin, resulting from destruction of the insulin producing beta cells of the pancreas.

Type 2 diabetes is a metabolic disorder that results when the body is unable to produce sufficient amounts of insulin or becomes insulin resistant. People with type 1 diabetes must administer insulin, either by injection or insulin pump, to survive. People with type 2 diabetes may require diet and nutrition management, exercise, oral medications or the administration of insulin to regulate blood glucose levels. Type 2 diabetes is the most common type of diabetes and accounts for over 90% of all diabetes worldwide. We expect the growth in sales of CGM systems to be driven by increased penetration of CGM in both the type 1 and type 2 patient populations.

In an attempt to maintain blood glucose levels within the normal range, many people with diabetes seek to actively monitor their blood glucose levels. The traditional self-monitoring of blood glucose, ("SMBG"), method of glucose monitoring requires lancing the fingertips, commonly referred to as fingersticks, multiple times per day and night to obtain a blood drop to be applied to a test strip inside a blood glucose meter. This method of monitoring glucose levels is inconvenient and can be painful and, because each measurement represents a single blood glucose value at a single point in time, it provides limited information regarding trends in blood glucose levels. In contrast, CGM systems are generally less painful and involve the insertion of sensors into the body to measure glucose levels in the interstitial fluid throughout the day and night, providing real-time data that shows trends in glucose measurements. As a result, CGMs improve glycemic control and quality of life, particularly in patients with type 1 diabetes treated with continuous subcutaneous insulin infusion or multiple daily insulin injection therapy, and support avoidance of hypoglycemia.

In November 2019, the Eversense CGM system became the first CGM technology to be reimbursed through the Part B Medical Services benefit for Medicare beneficiaries and expanded access to our product. In November 2022, the Centers for Medicare & Medicaid Services ("CMS") released its Calendar Year 2023 Medicare Physician Fee Schedule Proposed Rule that updated the payment amounts for the three CPT© Category III codes to account for the longer 6-month sensor. In February 2024, we announced that Medicare coverage was expanded for Eversense E3 to include all people with diabetes using insulin and non-insulin users who have a history of problematic hypoglycemia providing access to millions of Medicare patients. All of the Medicare administrative contractors ("MAC") expansions became effective in 2024. In April 2025, CMS updated the payment amounts in the Physician Fee Schedule to account for the longer duration Eversense 365 for all eligible Medicare beneficiaries. We have been working with payors to transition their policies to Eversense 365 and have confirmed immediate coverage policy transition from select payors.

We are headquartered in Germantown, Maryland. The members of our management team have held senior leadership positions at a number of medical technology and biopharmaceutical companies, including Abbott Diabetes Care, Medtronic, and Tandem Diabetes Care. Members of our team have contributed to the development, regulatory approval and commercialization of several glucose monitoring systems and insulin pumps.

**Commercial Strategy**

We primarily sell directly to our network of distributors and strategic fulfillment partners, who provide the Eversense system to healthcare providers and patients through a prescribed request and invoice insurance payors for reimbursement. In addition, we sell our product through a consignment model through established agreements with our network of healthcare professionals. Sales of the Eversense 365 and E3 CGM system and future products are widely dependent on the ability of patients to obtain coverage and adequate reimbursement from third-party payors or government agencies. We prioritize and target regions where we have coverage decisions for patient device use and provider insertion and removal procedure payment.

Addressing reimbursement and access barriers is a top priority for us. We have reached approximately 300 million covered lives in the U.S. through positive insurance payor coverage decisions including UnitedHealthcare, the largest healthcare insurance company in the U.S. In efforts to address these priorities, we initiated the Patient Assistance and Simple Savings ("PASS") program to provide financial assistance for patients adopting Eversense. Additionally, we

acquired the insertion network assets of NPG establishing our Eon Care Network to continue to expand U.S. patient access to the Eversense System by providing additional convenient in-office and at-home sensor insertion options utilizing the insertor network currently operating in approximately 30 states.

Our net revenues are derived from sales of the Eversense CGM system which includes the Eversense sensor pack containing the sensor, insertion tool, and adhesive patches, the Eversense smart transmitter pack containing the transmitter and charger and in some cases the procedure revenue associated with insertions and removals.

**Clinical Development and Regulatory Pathway** 

***Overview***

We conduct pivotal trials, primarily in the United States, to gather the data that supports submission to the FDA as a Premarket Approval ("PMA") application, PMA supplement or 510(k) submission and to our Notified Body for issuance of a CE Certificate of Conformity allowing us to commercialize our products.

We are also continuing to conduct a number of post-approval and feasibility studies.

***United States Pivotal Trials***

*PRECISE II Trial*

In 2016, we conducted our U.S. 90-day pivotal trial. The trial was a prospective, single-arm, multi-center trial designed to determine the accuracy and safety of the Eversense system. Ninety subjects were enrolled in eight centers across the United States.

The purpose of this clinical trial was to evaluate the accuracy of Eversense measurements, measured by the mean absolute relative difference ("MARD"), when compared with bed-side blood glucose measurements obtained using the YSI glucose analyzer over successive periods of 30 days through 90 days, as well as to assess the safety of Eversense. YSI in vitro analyzers are bed-side instruments used in hospitals and clinics to accurately measure blood glucose levels and are commonly used as comparators of glucose monitoring systems in clinical trials. MARD is a statistical calculation that measures the average absolute value of the differences, expressed as a percentage, between glucose measurements taken from interstitial fluid based on our CGM system and blood glucose measurements from YSI. The lower the MARD of a glucose monitoring system, the more accurate the system and, therefore, the more reliable the system's readings.

In the trial, we observed a MARD of 8.8% for Eversense across the 40-400 mg/dL range when compared to YSI blood reference values during the 90-day continuous wear period. We conducted a second study, the PRECISION study, to collect supplementary data early in sensor life with two additional in-clinic visits in the first 30 days after insertion. Study participants were able to see their real-time glucose readings during this study. The accuracy and safety observed in PRECISE II was confirmed in this study. In addition, the data from PRECISE II study was also analyzed using an updated glucose calculation algorithm which improved the MARD to 8.5%. Based on the data from both of these trials, we submitted a PMA application to the FDA to market Eversense in the United States for 90-day use. On June 21, 2018, we received PMA approval from the FDA for the 90-day Eversense system and received Category III CPT codes for the insertion and removal of the Eversense sensor.

*PROMISE Trial*

In December 2018, we began enrollment for the U.S. 180-day pivotal trial. The trial is a prospective, single-arm, multi-center trial designed to evaluate the accuracy and safety of the Eversense system up to six months using the methods described above for the 90-day system. Over 180 subjects were enrolled in eight centers across the United States.

In the trial, we observed performance matching that of the 90-day Eversense system available in the United States, with MARD of 8.5%-9.6%. This result was achieved with reduced calibration, down to one per day, while also doubling the sensor life to 180 days. Following the results of the PROMISE trial, on September 30, 2020, a Premarket Approval Application Supplement, or PMA supplement to extend the wearable life of the Eversense CGM System to six months was submitted to the FDA.

On February 26, 2020, we announced that the FDA approved a subgroup of PROMISE trial participants to continue for a total of 365 days to gather feasibility data on the safety and accuracy of a 365-day sensor. This sub-set of 30 participants who all had sensors with the modified chemistry were left undisturbed for 365 days with the goal of measuring accuracy and longevity over the full 365 days. Information gathered from this sub-set and continued development efforts provided us the confidence to start the pivotal study for the Eversense 365-day System.

*ENHANCE Trial*

In March 2022, we began enrollment for the U.S. 365-day pivotal trial. The trial is a prospective, single-arm, multi-center trial designed to evaluate the accuracy and safety of the Eversense system up to one year using the methods described above for the 90-day and 180-day systems. Over 165 adult subjects were inserted with Eversense systems in four centers across the United States. In mid-2023, the data gathered in this trial were used to submit an application to the FDA for the integrated continuous glucose monitoring ("iCGM") designation. The iCGM designation will enable our ability to integrate with insulin delivery devices like pens and pumps to create systems that would use Eversense for autonomous control and we received approval in April 2024. In 2022, we submitted and received approval for an IDE for an extension of the trial to allow for pediatric patients and we began enrolling patients in the first half of 2023. The ENHANCE pivotal study for the Eversense 365-day system has been fully enrolled, the last patient of the adult cohort completed the study, and we completed analysis of the data. Based on this analysis we determined to advance the next generation sensor platform as the underlying technology used in the 365-day and future products. In May 2024 this data supported an FDA 510(k) submission for a new product with a 365-day duration and once per week calibration. The 510(k) submission was approved by the FDA on September 17, 2024 and our 365-day product was cleared for sale in the United States. In February 2025, the data supported the submission of an application for the conformity assessment of the Eversense 365-day product in compliance with the EU Medical Device Regulation, to our Notified Body. The CE Mark was approved on January 29, 2026, permitting the Company to commercialize Eversense 365 in the EEA.

*GEMINI Trial*

In December 2025, we secured Investigational Device Exemption ("IDE") approval from the FDA to commence a U.S. pivotal clinical trial for our next-generation Gemini sensor, a self-powered, battery-enabled continuous glucose monitoring system. Following IDE approval, we initiated patient enrollment and enrolled the first patients in the GEMINI pivotal trial in December 2025. The GEMINI pivotal trial is designed to evaluate the safety and performance of the Gemini sensor in adult patients with diabetes in the U.S. The study is intended to support future regulatory submissions for the Gemini system. The trial is being conducted at multiple clinical sites, and enrollment is ongoing, with a planned enrollment of 80 patients. We expect to complete the trial in 2026 to support a 510(k) submission to the FDA.

**Our Technology**

Eversense consists of three primary components: a small sensor inserted subcutaneously under the skin by a healthcare provider; an external removable smart transmitter that receives, assesses and relays data from the sensor and provides vibratory alerts; and a mobile app that receives data from the transmitter and provides real-time glucose readings, alerts and other data on the person's mobile device. All of these components work together to provide sensor glucose values, trends and alerts to a user's mobile device within 20 milliseconds. We have designed this reliable, long-term and implantable CGM system to continually and accurately measure a person's glucose levels for up to one year. Eversense 365 requires once weekly fingerstick calibrations after day 13.

We believe our implantable CGM system offers the following advantages to support the management of diabetes:

● Duration: Longest available sensor duration at up to one year.

● Convenience: Our Eversense CGM system supports the patient's lifestyle; the smart transmitter can be removed and replaced without disturbing the sensor, strong but gentle-on-skin adhesive patches, wireless communication to patient's mobile device or Apple Watch®, including readings every five minutes whether the patient has their mobile device or not, remote monitoring that can be shared with friends, family, and health care providers, and tracking of meals and workouts for further diabetes treatment management.

● Accuracy: Exceptional accuracy particularly in the low glucose range throughout the sensor life.

● Vibe Alerts: Added safety of an on-body vibration alert when low or high glucose threshold is reached, or importantly before low or high threshold is reached, even when the mobile device is not nearby.

● Continuous Support: Patient and healthcare provider hotline support 24/7.

***Sensor***

The sensor is approved and CE Marked to be inserted under the skin, in the upper arm, and measures the glucose in the interstitial fluid. These glucose levels are then communicated wirelessly to the smart transmitter. We have designed the sensor to last up to one year, as compared to other currently available CGM sensors labeled for use for between seven and 15 days.

The sensor consists of an optical system, known as a micro-fluorometer, encased in a rigid, translucent polymer capsule, which is 3.3 mm in diameter and 15 mm in length. The capsule is coated with a glucose-indicating hydrogel that is bound to the surface of the capsule through polymerization. This hydrogel is energized, or excited, by a light-emitting diode ("LED"), contained in the optical system of the sensor, causing the hydrogel to fluoresce, or glow. Two photodiodes within the optical system of the sensor measure the degree of fluorescence of the hydrogel, which is proportional to the level of glucose present in the interstitial fluid. The sensor then communicates the amount of fluorescence via a near field communication ("NFC") interface to the transmitter. NFC is a high frequency wireless communication technology that enables the exchange of data and energy between devices over a short range. The sensor does not have a power source and remains electrically dormant (powered off) between readings every five minutes, and it is remotely and discretely powered, as needed, by an inductive NFC link between the sensor and the transmitter. On power-up, the LED source is energized for approximately five milliseconds to excite the hydrogel.

***Smart Transmitter***

The removable smart transmitter is a rechargeable, external device that is worn over the sensor implantation site using a daily adhesive patch. The transmitter supplies wireless power to the sensor through an inductive NFC link, which activates a measurement sequence every five minutes. The transmitter then receives data from the sensor and calculates glucose concentrations and trends. Based on these calculations and on the user's individual settings for glucose levels, the transmitter determines if an alert condition exists, in which case the transmitter communicates the condition to the user through the mobile app and through on-body vibration. The information from the transmitter is also transmitted for display to the user's mobile device via Bluetooth Low-Energy ("BLE"). Our transmitter is functional for at least 24 hours following a full charge and can be fully charged in approximately fifteen minutes.

***Mobile App***

Our mobile app is a software application that runs on both platforms; iOS mobile devices, including iPhones, iPads and Apple Watches, and Android mobile devices. The mobile app receives information from the transmitter via BLE and displays that information discreetly to the user. This user-friendly, intuitive app provides real-time glucose readings, alerts, trends, and graphs. Within the mobile app, users can set alerts based on, among other things, glucose levels. The mobile app also allows for cloud-based storage.

***Future Product Development***

We intend to continue to expand our line of product offerings to benefit people with diabetes and healthcare providers. We expect these product development initiatives to include system modifications and next generation enhancements that we believe will further increase the convenience and appeal of our products to the diabetes community.

We are focusing our future development efforts on enhancing current product offerings by incorporating first a power source and then Bluetooth in the sensor to remove the need for an on-body component of our system. We are currently conducting a pivotal study of our Gemini product variation to allow for a 2-in-1 glucose monitoring system combining the functionality of CGM and flash glucose monitoring, in an implantable sensor with battery that may be utilized with a smart transmitter to get continuous glucose readings and alerts, or be utilized through a swipe over the sensor with a smart phone to get on-demand glucose reading without a smart transmitter. We are also developing our Freedom product variation which would include Bluetooth in the sensor eliminating the on-body component. We are seeking to ensure that we meet the growing and unique needs of people with diabetes utilizing our core and proprietary sensor technology. The company's technology also has potential applications measuring analytes other than glucose, such as keytones and oxygen, and the company may consider incorporating these in future products or opportunities for the development or out-licensing of such applications. We aim to launch the Gemini and Freedom systems by the fourth quarter of 2027 and fourth quarter of 2028, respectively. These target dates will depend on our ability to successfully achieve clinical and regulatory milestones, including obtaining FDA approval, which is uncertain.

**Sales and Marketing** 

We are in the early commercialization stages of Eversense and are focused on driving awareness and adoption of our CGM system amongst people with diabetes and their healthcare providers. As described above, the Company is in the process of transferring the global commercial operations relating to Eversense from Ascensia back to the Company.

Building strong adoption with an implantable device requires a strong network of healthcare providers trained on the Eversense sensor placement procedure. In the first few quarters of our commercial launch, our focus was ensuring the Endocrinology providers obtained the necessary training needed to support their diabetes patients. In 2019, we began our second phase of establishing a large network of Eversense proceduralists with the launch of the Certified Eversense Specialist ("CES") network. This group of healthcare providers includes specialists who have strong familiarity with conducting in-office procedures such as dermatologists and plastic surgeons. The CES network offers an alternative for healthcare providers who want to prescribe Eversense for their patients but prefer to refer the procedure to a specialist. In 2022, we announced a collaboration with NPG designed to expand U.S. patient access to Eversense by providing additional convenient in-office and at-home sensor insertion options utilizing NPG's broad network in approximately 30 states. In October 2024, we acquired the sensor insertion network assets of NPG to begin transitioning nurse practitioners to our Eon Care subsidiaries. We will continue to expand the inserter network through EON Care select geographic areas.

As people with diabetes often consult with their healthcare providers about treatment options, we believe that educating healthcare providers regarding the benefits of Eversense compared to SMBG and other currently available CGM systems is an important step in promoting its use in people with diabetes. Our United States and European experience indicate healthcare providers highly value the accuracy and sensor duration of our CGM system and the majority of physicians surveyed considered the insertion process to be fairly simple or feasible. We intend to continue educating healthcare providers and people with diabetes on the advantages of Eversense compared to SMBG and other currently available CGM systems.

In October 2024, Ascensia and the Company launched a new direct to consumer U.S. marketing campaign on social and digital media platforms. 'The One Year. One CGM.' campaign expanded market awareness of the Eversense 365 system's unique benefits among people with diabetes and healthcare professionals. 'The One Year. One CGM' campaign aims to highlight the reality of the diabetes experience, through everyday complexities, successes, and challenges that people with diabetes face. The campaign demonstrates how Eversense 365 provides a differentiated

CGM option, with unparalleled flexibility and long-term use that allows it to seamlessly integrate into real life. Following the launch of Eversense 365 in October 2024, the Company has experienced higher direct-to-consumer leads compared to pre-launch months, continued growth in patient shipments with December 2025 being the largest in company history, an increase in the number of new prescribers and prescriptions, and an increase in new patients. In 2026 we continue to drive efforts to raise patient and prescriber awareness with targeted programs such as paid social ads, website optimization strategies, the Eversense 365 and twiist<sup>TM</sup> AID campaign, and other focused marketing strategies.

**Reimbursement** 

*Coverage in the United States* 

In the U.S. market, it is essential to obtain third-party payor coverage policies, coding mechanisms, and adequate payment for medical technology to expand market acceptance and adoption. CGM as a class of products has been broadly accepted by commercial third-party payors, such as health insurers and health maintenance organizations, and by Medicare for patients who require the use of insulin to manage their diabetes. We approach the U.S. commercial third-party payor community in efforts to establish coverage for Eversense. To date, approximately 300 million people in the United States may have coverage and access to Eversense via commercial (for example, UnitedHealthcare) or government (for example, Medicare) payors.

Some commercial payors have denied coverage deeming Eversense as an "experimental and investigational" technology electing to wait for further clinical evidence, more safety data, or time in market. We disagree with this position as the CGM class has already proven to improve health outcomes and Eversense is another product that fits into the class. Additionally, in 2019 we published several sets of real-world data, which show Eversense provides the same clinical benefits as other CGM systems and has a favorable safety profile. However, until payment for the Eversense sensor placement becomes consistent, some patients will be required to bear the financial cost for the placement of the sensor by their healthcare provider. As a result, some patients and their healthcare provider may choose not to use Eversense on a widespread basis. Patient access programs and patient appeals support have been key initiatives to expanding payor policy and acceptance through case-by-case review and eventual denial overturn. This can be a long process with varying results in each case but is a prudent step to challenge payor positions of non-coverage given the strong evidence that supports CGM and Eversense. Further, coverage policies and third-party payor reimbursement rates may change at any time. Therefore, even if favorable coverage and reimbursement status is attained, less favorable coverage policies and reimbursement rates may be implemented in the future.

*Coverage Outside the United States* 

In countries outside the United States, coverage for CGM systems is obtained from various sources, including governmental authorities, national healthcare systems, private health insurance plans, and hospital funds. Coverage systems in international markets vary significantly by country and, within some countries, by region. Coverage approvals must be obtained on a country-by-country, region-by-region or, in some instances, a case-by case basis. The responsibility for securing this coverage historically resided with our third-party distributors in the respective markets. We are in the process of acquiring the coverage and payment contracts for Eversense in the European Territories from Ascensia and upon the closing of the Local Purchase Agreements, we expect to be responsible for securing coverage for the related CGM systems going forward.

**Manufacturing and Quality Assurance** 

We currently outsource the manufacturing of all components of the Eversense system to contract manufacturers across North America and Europe. We plan to continue with an outsourced manufacturing arrangement for the foreseeable future. Our contract manufacturers are all recognized in their field for their competency to manufacture the respective portions of our system and have quality systems established that meet FDA and, to the extent required,

international regulatory requirements. We believe the manufacturers we currently utilize have sufficient capacity to meet our requirements. We believe that, as we increase our demand in the future, our per unit costs will decrease materially.

We have received certification from BSI, our Notified Body to the International Standards Organization ("ISO") for our quality system. This ISO 13485:2016 certification includes design control requirements. As a medical device manufacturer, the facilities of our sterilization and other critical suppliers are subject to periodic inspection by the FDA and corresponding state and foreign regulatory authorities and Notified Bodies. We believe that our quality systems and those of our suppliers are robust and achieve high product quality.

Typically, our outside vendors produce the components to our specifications and in many instances to our designs. Our suppliers are audited periodically by our quality department to ensure conformity with the specifications, policies and procedures for our devices. We believe that, if necessary, alternative sources of supply would be available in a relatively short period of time and on commercially reasonable terms. Most of the raw materials we use in our manufacturing operations are available from more than one source. However, certain raw material components are obtained principally from one supplier. In the event one of these suppliers was unable to provide the materials or product, we generally seek to maintain sufficient inventory to supply the market until an alternative source of supply can be implemented. However, in the event of an extended failure of a supplier, it is possible that we could experience an interruption in supply until we established new sources or, in some cases, implemented alternative processes.

**Competition** 

The market for CGM systems is developing and competitive, subject to rapid change and significantly affected by new product introductions. We compete with well-capitalized companies, some of which are publicly traded, that manufacture CGM systems including Dexcom, Medtronic and Abbott. Each of these companies has received FDA approval, CE Certificates of Conformity and CE Marked their products, permitting them to market their respective CGM systems across the United States and EEA. Both Dexcom (G6 and G7) and Abbott (Freestyle Libre 2 and 3) systems have factory calibration, and do not require user calibration.

Dexcom has also received the first FDA iCGM indication allowing its Dexcom G6 and G7 to be interoperable with other diabetes tech devices such as insulin pumps. As the industry evolves, we anticipate encountering increasing competition from companies that integrate CGM with insulin pumps. Abbott has also received an iCGM indication for its Freestyle Libre 2 and 3 products and we expect all other CGM companies to pursue an iCGM indication including Medtronic.

In addition to CGM providers, we also compete with providers of SMBG systems. Three companies currently account for a substantial share of the worldwide sales of SMBG systems: Roche Diabetes Care, a division of Roche Diagnostics; Abbott; and Ascensia.

We may also compete with companies who are developing real-time intermittent sensing devices, low cost transcutaneous CGM systems, fully implantable CGM devices and non-invasive CGM system to measure a user's glucose level. There are also a number of academic and other institutions involved in various phases of our industry's technology development.

Although we face potential competition from many different sources, we believe that our technology, knowledge, experience and scientific resources provide us with competitive advantages. The key competitive factors affecting the success of Eversense are accuracy, duration, convenience, alert functionality, and customer support.

Many of the companies which we compete with have significantly greater financial resources and expertise in research and development, manufacturing, preclinical testing, conducting clinical trials, obtaining regulatory approvals, certifications and marketing approved products than we do. Mergers and acquisitions in the pharmaceutical, biotechnology and diagnostic industries may result in even more resources being concentrated among a smaller number of our competitors. Smaller or earlier stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. These competitors also compete with us in recruiting

and retaining qualified scientific and management personnel and establishing clinical trial sites and subject registration for clinical trials, as well as in acquiring technologies complementary to, or necessary for, our development.

**Seasonality**

We anticipate that the revenue generated from our product sales will vary from quarter to quarter as we continue to commercialize Eversense. This variation is influenced by annual insurance deductible limits and out-of-pocket costs associated with some health insurance plans and government insurance programs providing coverage to Eversense and the utilization of patient assistance programs to offset those costs. This variation is also influenced by our distributor's reductions of inventory of our products in the first quarter. Specifically, our revenues are generally lower in the first quarter of the year as compared to the fourth quarter of the preceding year.

For additional information, refer to "Part I. Item 1A. Risk Factors" in this Annual Report, including the risk factor entitled "Our product revenue is subject to seasonal variation".

**Intellectual Property**

Protection of our intellectual property is a strategic priority for our business. We rely on a combination of patents, trademarks, copyrights, trade secrets as well as nondisclosure and assignment of invention agreements, material transfer agreements, confidentiality agreements and other measures to protect our intellectual property and other proprietary rights.

*Patents* 

As of December 31, 2025, we held a total of approximately 504 issued patents and pending patent applications that relate to our CGM system. Our intellectual property portfolio includes 122 issued United States patents, 251 patents issued in countries outside the United States and 131 pending patent applications worldwide. Our patents expire between 2026 and 2049, subject to any patent term extensions or adjustments that may be available for such patents. If patents are issued on our pending patent applications, the resulting patents are projected to expire on dates ranging from 2037 to 2043, subject to any patent term extensions or adjustments that may be available for such patents.

Our patents and patent applications cover certain aspects of our core sensor technologies and our product concepts for CGM systems. However, our patent applications may not result in issued patents, and any patents that have been issued or may be issued in the future may not protect the commercially important aspects of our technology. Furthermore, the validity and enforceability of our issued patents may be challenged by third parties and our patents could be invalidated or modified by the issuing governmental authority. Third parties may independently develop technology that is not covered by our patents that is similar to or competes with our technology. In addition, our intellectual property may be infringed or misappropriated by third parties, particularly in foreign countries where the laws and governmental authorities may not protect our proprietary rights as effectively as those in the United States.

The medical device industry in general, and the glucose testing sector of this industry in particular, are characterized by the existence of a large number of patents and frequent litigation based on assertions of patent infringement. We are aware of numerous patents issued to third parties that may relate to the technology used in our business, including the design and manufacture of CGM sensors and CGM systems, as well as methods for continuous glucose monitoring. Each of these patents contains multiple claims, any one of which may be independently asserted against us. The owners of these patents may assert that the manufacture, use, sale or offer for sale of our CGM sensors or CGM systems infringes one or more claims of their patents. Furthermore, there may be additional patents issued to third parties of which we are presently unaware that may relate to aspects of our technology that such third parties could assert against us and materially and adversely affect our business. In addition, because patent applications can take many years to issue, there may be patent applications that are currently pending and unknown to us, which may later result in issued patents that third parties could assert against us and materially and adversely affect our business.

Any adverse determination in litigations, post grant trial proceedings, including interference proceedings, at the Patent Office relating to intellectual property to which we are or may become a party could subject us to significant liabilities to third parties or require us to seek licenses from third parties, and result in the cancellation and/or invalidation of our intellectual property. Furthermore, if a court finds that we have willfully infringed a third party's intellectual property, we could be required to pay treble damages and/or attorney fees for the prevailing party, in addition to other penalties. Although intellectual property disputes in the medical device area are often settled through licensing or similar arrangements, costs associated with such arrangements can be substantial and often require ongoing royalty payments. We may be unable to obtain necessary licenses on satisfactory terms, if at all. If we do not obtain necessary licenses, we may not be able to redesign our products to avoid infringement; if we are able to redesign our products to avoid infringement, we may not receive FDA approval in a timely manner. Adverse determinations in a judicial or administrative proceeding or failure to obtain necessary licenses could prevent us from manufacturing and selling our products, which could have a significant adverse impact on our business.

*Trademarks* 

We have 14 U.S. trademark registrations and 133 foreign trademark registrations, as well as one pending foreign trademark application.

*Trade Secrets* 

We also rely on trade secrets, technical know-how and continuing innovation to develop and maintain our competitive position. We seek to protect such intellectual property and proprietary information by generally requiring our employees, consultants, contractors, scientific collaborators and other advisors to execute non-disclosure and assignment of invention agreements upon the commencement of their employment or engagement as the case may be. Our agreements with our employees prohibit them from providing us with any intellectual property or proprietary information of third parties. We also generally require confidentiality agreements or material transfer agreements with third parties that receive or have access to our confidential information, data or other materials. Notwithstanding the foregoing, there can be no assurance that our employees and third parties that have access to our confidential proprietary information will abide by the terms of their agreements. Despite the measures that we take to protect our intellectual property and confidential information, unauthorized third parties may copy aspects of our products or obtain and use our proprietary information.

**Government Regulation**

The Eversense system is a medical device subject to extensive and ongoing regulation by the FDA, CMS, the European Union, competent authorities of the EEA countries, Notified Bodies and regulatory bodies in other countries. Regulations cover virtually every critical aspect of a medical device company's business operation, including research activities, product development, contracting, reimbursement, medical communications, and sales and marketing. In the United States, the Federal Food, Drug and Cosmetic Act ("FDCA"), and the implementing regulations of the FDA govern product design and development, preclinical and clinical testing, premarket clearance or approval, product manufacturing, import and export, product labeling, product storage, recalls and field safety corrective actions, advertising and promotion, product sales and distribution, and post-market clinical surveillance. Our business is subject to federal, state, local, and foreign regulations and standards, such as ISO 13485, ISO 14971, FDA's Quality Management System Regulation ("QMSR") contained in 21 CFR Part 820, Directive 90/385/EEC concerning active implantable medical devices and, Regulation 2017/745 on Medical Devices, as amended.

*Regulation by the FDA* 

The FDA classifies medical devices into one of three classes according to the degree of risk the FDA determines to be associated with a device and the level of regulatory control deemed necessary to ensure the device's safety and effectiveness. The Eversense System is a Class II device and subject to 510(k) approval under section 515 of the FDCA in order to obtain a marketing approval. A 510(k) application must be supported by valid scientific evidence that typically includes extensive technical, preclinical, clinical, manufacturing and labeling data, to demonstrate to the

FDA's satisfaction the safety and efficacy of the device. A 510(k) application also must include a complete description of the device and its components, a detailed description of the methods, facilities and controls used to manufacture the device, and proposed labeling. After a 510(k) application is submitted and found to be sufficiently complete, the FDA begins an in-depth review of the submitted information.

New 510(k) applications or 510(k) supplements may be required for modifications to the manufacturing process, labeling, device specifications, materials or design of a device that has been approved through the 510(k) process. 510(k) supplements often require submission of the same type of information as an initial 510(k) application, except that the supplement is limited to information needed to support any changes from the device covered by the approved 510(k) application and may or may not require as extensive technical or clinical data or the convening of an advisory panel.

Any devices we manufacture and distribute pursuant to clearance or approval by the FDA are subject to pervasive and continuing regulation by the FDA and certain state agencies. These include product listing and establishment registration requirements, which help facilitate FDA inspections and other regulatory actions. As a medical device manufacturer, all of our manufacturing facilities are subject to inspection on a routine basis by the FDA. We are required to adhere to applicable regulations setting forth detailed Current Good Manufacturing Practice ("cGMP") requirements, as set forth in the QMSR, which require manufacturers, including third-party manufacturers, to follow stringent design, testing, control, documentation and other quality assurance procedures during all phases of the design and manufacturing process. Noncompliance with these standards can result in, among other things, fines, injunctions, civil penalties, recalls or seizures of products, total or partial suspension of production, refusal of the government to grant 510(k) clearance or PMA approval of devices, withdrawal of marketing approvals and criminal prosecutions. We believe that our design, manufacturing and quality control procedures are in compliance with the FDA's regulatory requirements.

We must also comply with post-market surveillance regulations, including medical device reporting ("MDR") requirements which require that we review and report to the FDA any incident in which our products may have caused or contributed to a death or serious injury. We must also report any incident in which our product has malfunctioned if that malfunction would likely cause or contribute to a death or serious injury if it were to recur.

Labeling and promotional activities are subject to scrutiny by the FDA and, in certain circumstances, by the Federal Trade Commission. Medical devices approved or cleared by the FDA may not be promoted for unapproved or uncleared uses, otherwise known as "off-label" promotion. The FDA and other agencies actively enforce the laws and regulations prohibiting the promotion of off-label uses, and a company that is found to have improperly promoted off-label uses may be subject to significant liability, including substantial monetary penalties and criminal prosecution.

*International Regulation*

International sales of medical devices are subject to national, supra-national, and local government regulations, which may vary substantially from country to country. The time required to obtain approval or certification in another country may be longer or shorter than that required for FDA approval, and the requirements may differ. There is a trend towards harmonization of quality system standards among the European Union, United States, Canada and various other industrialized countries.

On May 26, 2021, Regulation (EU) 2017/745 on Medical Devices, or the Medical Device Regulation, entered into application, repealing and replacing both Directive 93/42/EEC concerning medical devices, or MDD, and Directive 90/385/EEC concerning active implantable medical devices, or AIMD. The Medical Device Regulation and its associated guidance documents and harmonized standards govern, among other things, device design and development, preclinical and clinical or performance testing, premarket conformity assessment, registration and listing, manufacturing, labeling, storage, claims, sales and distribution, export and import and post-market surveillance, vigilance, and market surveillance. Medical devices must comply with the General Safety and Performance Requirements, ("GSPRs") set out in Annex I of the Medical Device Regulation. Compliance with these requirements is a prerequisite to be able to affix the CE Mark to devices, without which they cannot be marketed or sold in the EEA. To demonstrate compliance with the GSPRs provided in the Medical Device Regulation and obtain the right to affix the CE Mark, medical devices

manufacturers must undergo a conformity assessment procedure, which varies according to the type of medical device and its classification. Apart from low risk medical devices (Class I with no measuring function and which are not sterile), in relation to which the manufacturer may issue an EC Declaration of Conformity based on a self-assessment of the conformity of its products with the GSPRs, a conformity assessment procedure requires the intervention of a Notified Body, which is an organization designated by a Competent Authority of an EEA country to conduct conformity assessments. Depending on the relevant conformity assessment procedure, the Notified Body audits and examines the technical documentation and the quality system for the manufacture, design and final inspection of the medical devices. The Notified Body issues a CE Certificate of Conformity following successful completion of a conformity assessment procedure conducted in relation to the medical device and its manufacturer and their conformity with the GSPRs. This Certificate and the related conformity assessment process entitles the manufacturer to affix the CE Mark to its medical devices after having prepared and signed a related EC Declaration of Conformity.

As a general rule, demonstration of conformity of medical devices and their manufacturers with the GSPRs must be based, among other things, on the evaluation of clinical data supporting the safety and performance of the products during normal conditions of use. Specifically, a manufacturer must demonstrate that the device achieves its intended performance during normal conditions of use and that the known and foreseeable risks, and any adverse events, are minimized and acceptable when weighed against the benefits of its intended performance, and that any claims made about the performance and safety of the device (e.g., product labeling and instructions for use) are supported by suitable evidence. This assessment must be based on clinical data, which can be obtained from (1) clinical studies conducted on the devices being assessed, (2) scientific literature from similar devices whose equivalence with the assessed device can be demonstrated or (3) both clinical studies and scientific literature. The conduct of clinical studies in the EEA is governed by detailed regulatory obligations. These may include the requirement of prior authorization by the Competent Authorities of the country in which the study takes place and the requirement to obtain a positive opinion from a competent Ethics Committee. This process can be expensive and time-consuming. After a device is placed on the market, it remains subject to significant regulatory requirements.

The Medical Device Regulation provides a transitional provision. Accordingly, CE Certificates of Conformity issued by Notified Bodies in accordance with the MDD or the AIMD from May 25, 2017, and which remained valid on May 26, 2021 and have not since been withdrawn will, with certain exceptions, remain valid until December 31, 2027 for Class III and Class IIb implantable medical devices and until December 31, 2028 for other Class IIb, Class IIa and Class I devices with a measuring function or which are sterile. Class I medical devices, for which the conformity assessment procedure in accordance with the MDD or the AIMD did not require the involvement of a Notified Body but will require the involvement of a Notified Body in accordance with the Medical Device Regulation and for which an EU Declaration of Conformity was issued in accordance with the MDD or the AIMD prior to May 26, 2021, can continue to be placed on the EEA market until December 31, 2028. Manufacturers of medical devices may only benefit from the above extended transitional provisions deadlines if the following conditions are fulfilled: (i) the devices continue to comply with the requirements of the MDD or AIMD, (ii) there are no significant changes in the design and intended purpose, (iii) the devices do not present an unacceptable risk to the health or safety of patients, users or other persons, or to other aspects of the protection of public health, (iv) the manufacturer implemented a quality management system by May 26, 2024 which complies with the requirements of the Medical Devices Regulation, (v) by May 26, 2024 an application was lodged with a Notified Body for conduct of the conformity assessment of the devices covered by the CE Certificate of Conformity, or the devices intended to substitute for such devices, in accordance with the Medical Device Regulation and a related written agreement was signed with the Notified Body by September 26, 2024, and (vi) from May 26, 2021, compliance with the Medical Device Regulation relating to post-market surveillance, market surveillance, vigilance, registration of economic operators and of devices is ensured in place of the corresponding requirements in the MDD or AIMD.

In addition, CE Certificates of Conformity issued by Notified Bodies in accordance with the MDD or the AIMD from May 25, 2017, which were valid on May 26, 2021 and have not been withdrawn since but which expired before March 20, 2023, will only continue to be valid in accordance with the extended transitional deadlines above if either (i) the manufacturer signed a written agreement with a Notified Body for the conformity assessment of the device covered by the expired CE Certificate of Conformity, or the device intended to substitute that device, in accordance with the Medical Device Regulation before the date of expiry of the CE Certificate of Conformity, or (ii) a competent authority of

an EU Member State has granted a derogation from the application conformity assessment procedure in accordance with Article 59(1) or Article 97(1) of the Medical Device Regulation.

Class III custom-made implantable medical devices may be placed on the market until May 26, 2026 without a CE Certificate of Conformity issued by a Notified Body, provided that (i) by May 26, 2024, an application was lodged with a Notified Body for the conformity assessment of the devices, in accordance with the Medical Device Regulation and a related written agreement was signed with the Notified Body by September 26, 2024.

The advertising and promotion of medical devices in the EU is subject to the national laws of the individual EU Member States that implemented the MDD, the AIMD and that apply the Medical Device Regulation, Directive 2006/114/EC concerning misleading and comparative advertising, and Directive 2005/29/EC on unfair commercial practices, as well as other national legislation of individual EU Member States governing the advertising and promotion of medical devices. EU Member States' national legislation may also restrict or impose limitations on our ability to advertise our products directly to the general public. In addition, voluntary EU and national industry Codes of Conduct provide guidelines on the advertising and promotion of our products to the general public and may impose limitations on our promotional activities with healthcare professionals.

*Other Regulatory Requirements* 

Even after a device receives clearance, certification or approval and is placed in commercial distribution, numerous regulatory requirements apply. These include, but are not limited to:

● establishment registration, device listing and other registration requirements;

● QMSR and Quality Management System requirements, which require manufacturers, including third party manufacturers, to follow stringent design, testing, production, control, supplier/contractor selection, complaint handling, documentation and other quality assurance procedures during all aspects of the manufacturing process;

● MDR regulations, which require that manufacturers report to the FDA, and foreign regulatory authorities, when applicable, if their device may have caused or contributed to a death or serious injury or malfunctioned in a way that would likely cause or contribute to a death or serious injury if the malfunction were to recur and comparable foreign post-market surveillance and vigilance requirements;

● voluntary and mandatory device recalls addressing problems when a device is defective and could be a risk to health; and

● corrections and removals reporting regulations, which require that manufacturers report to the FDA, and foreign regulatory authorities, when applicable, field corrections and product recalls or removals if undertaken to reduce a risk to health posed by the device or to remedy a violation of the FDCA that may present a risk to health, and comparable foreign requirements.

Also, the FDA requires us to conduct Post Approval Studies (post-market surveillance studies) and establish and maintain a system for tracking our products through the chain of distribution to the patient level. We may be subject to similar requirements abroad. The FDA and applicable regulatory authorities enforce regulatory requirements by conducting periodic, unannounced inspections and market surveillance. Inspections may include the manufacturing facilities of our subcontractors.

Moreover, the FDA, competent authorities of the EEA countries, and foreign regulatory authorities, when applicable, strictly regulate marketing, labeling, advertising and promotion of medical devices. Medical devices may be promoted only for the approved or CE Marked indications and in accordance with the provisions of the approved or certified label, although physicians, in the practice of medicine, may prescribe approved medical devices for unapproved indications. Companies may also share truthful and not misleading information that is otherwise consistent with the labeling. The FDA, competent authorities of the EEA countries, and foreign regulatory authorities, when applicable, and other agencies actively enforce the laws and regulations prohibiting the promotion of off-label uses, and a company that is found to have improperly promoted off-label uses may be subject to significant liability.

In the United States, failure to comply with applicable regulatory requirements can result in enforcement actions by the FDA and other regulatory agencies. These may include, among other things, any of the following sanctions or consequences:

● warning letters or untitled letters that require corrective action;

● fines and civil penalties;

● unanticipated expenditures;

● delays in approving or refusal to approve future products;

● FDA refusal to issue certificates to foreign governments needed to export products for sale in other countries;

● suspension or withdrawal of FDA clearance or approval;

● product recall or seizure;

● interruption of production;

● operating restrictions;

● injunctions; and

● criminal prosecution.

In the EEA, similar regulatory requirements apply once a device has been CE Marked and placed on the EEA Market. EEA countries are responsible for enforcing the EU's medical device rules and for ensuring that only compliant medical devices are placed on the market or put into service in their jurisdictions. In addition, similar actions and obligations may be imposed by the competent authorities of an EEA country, or a foreign regulatory authority. If a Notified Body suspects or discovers any non-compliance, this may also result in Notified Bodies revoking, suspending or varying a CE Certificate of Conformity that they have issued for a device or the manufacturer's quality system.

Our contract manufacturers, specification developers and some suppliers of components or device accessories, also are required to manufacture our products in compliance with current good manufacturing practice requirements set forth in the QMSR. The QMSR requires a quality system for the design, manufacture, packaging, labeling, storage, installation and servicing of marketed devices, and it includes extensive requirements with respect to quality management and organization, device design, buildings, equipment, purchase and handling of components or services, production and process controls, packaging and labeling controls, device evaluation, distribution, installation, complaint handling, servicing, and record keeping. The FDA evaluates compliance with the QMSR through periodic unannounced inspections that may include the manufacturing facilities of our subcontractors. If the FDA believes that any of our contract manufacturers or regulated suppliers are not in compliance with these requirements, it can shut down such manufacturing operations, require recall of our products, refuse to approve new marketing applications, institute legal proceedings to detain or seize products, enjoin future violations or assess civil and criminal penalties against us or our officers or other employees. Similar quality management requirements and related risks apply abroad.

*Health Insurance Portability and Accountability Act of 1996 and Other Foreign and State Laws and Regulations Affecting the Transmission, Security and Privacy of Personal Information* 

We are subject to certain data privacy and security regulation by both the federal government and the states in which we conduct our business. The Health Insurance Portability and Accountability Act of 1996 ("HIPAA") as amended by the Health Information Technology for Economic and Clinical Health Act ("HITECH") and their respective implementing regulations, imposes specified requirements relating to the privacy, security and transmission of individually identifiable health information. Among other things, HITECH makes HIPAA's security standards directly applicable to business associates, defined as service providers of covered entities, which include certain healthcare providers, health plans and healthcare clearinghouses, that create, receive, maintain or transmit protected health information in connection with providing a service for or on behalf of a covered entity, and their covered subcontractors. HITECH also created four new tiers of civil monetary penalties and gave state attorneys general new authority to file civil actions for damages or injunctions in federal courts to enforce the federal HIPAA laws and seek attorneys' fees and costs associated with pursuing federal civil actions. Accordingly, state attorneys general (along with private plaintiffs) have brought civil actions seeking injunctions and damages resulting from alleged violations of HIPAA's privacy and security rules. In addition, many state laws govern the privacy and security of health information in certain circumstances, many of which differ from HIPAA and each other in significant ways and may not have the same effect.

In the EEA, the General Data Protection Regulation (2016/679) ("EU GDPR") and in the United Kingdom ("UK"), the United Kingdom's GDPR ("UK GDPR") (together the "GDPR"), applies to personal data about identified or identifiable data subjects processed by automated means and data contained in, or intended to be part of, non-automated filing systems (traditional paper files) as well as transfer of such data to a country outside of the EEA or UK. Under the EU GDPR companies may face temporary or definitive bans on data processing and other corrective actions, fines of up to €20 million or up to 4% of the annual global turnover, whichever is greater; or private litigation related to processing of personal data brought by classes of data subject or consumer protection organizations authorized at law to represent their interests. The GDPR includes more stringent operational requirements for data processors and data controllers and creates additional rights for data subjects.

*Fraud and Abuse Laws*

In addition to FDA restrictions, there are numerous U.S. federal and state laws and equivalent third country laws pertaining to healthcare fraud and abuse, including anti-kickback laws and physician self-referral laws. Our relationships with healthcare providers and other third parties are subject to scrutiny under these laws. Violations of these laws are punishable by significant criminal, civil, and administrative sanctions, including, in some instances, monetary penalties, payment denials, imprisonment, exclusion from participation in federal and state healthcare programs, including the Medicare, Medicaid and Veterans Administration health programs, or similar comparable foreign programs, as well as integrity oversight and reporting obligations to resolve allegations of non-compliance.

*Federal Anti-Kickback and Self-Referral Laws* 

The federal Anti-Kickback Statute prohibits persons from knowingly and willfully soliciting, receiving, offering or providing remuneration (including any kickback, bribe or rebate), directly or indirectly, overtly or covertly, to induce either the referral of an individual, or the furnishing, recommending, or arranging of a good or service, for which payment may be made under a federal healthcare program such as Medicare and Medicaid or other federal healthcare programs. The term "remuneration" has been broadly interpreted to include anything of value, including such items as gifts, discounts, the furnishing of supplies or equipment, credit arrangements, waiver of payments and providing anything at less than its fair market value. Although there are a number of statutory exceptions and regulatory safe harbors protecting some common activities from prosecution, the exceptions and safe harbors are drawn narrowly and require strict compliance to provide protection. Practices that involve remuneration that may be alleged to be intended to induce prescribing, purchases or recommendations may be subject to scrutiny if they do not qualify for an exception or safe harbor. Failure to meet all of the requirements of a particular applicable statutory exception or regulatory safe harbor does not make the conduct per se illegal under the federal Anti-Kickback Statute. Instead, the legality of the arrangement will be evaluated on a case-by-case basis based on a review of all its relevant facts and circumstances. Several courts have interpreted the statute's intent requirement to mean that if any one purpose of an arrangement involving remuneration is to induce referrals of (or purchases, or recommendations related to) federal healthcare covered business, the federal Anti-Kickback Statute has been implicated and potentially violated.

The penalties for violating the federal Anti-Kickback Statute include imprisonment for up to ten years, criminal fines of up to $100,000 per violation, possible exclusion from federal healthcare programs such as Medicare and Medicaid and other penalties, including significant civil monetary penalties and integrity oversight and reporting obligations to resolve allegations of non-compliance. Further, the federal Anti-Kickback Statute was amended by the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act (collectively "PPACA"). Specifically, as noted above, under the federal Anti-Kickback Statute, the government must prove the defendant acted "knowingly" to prove a violation occurred. The PPACA added a provision to clarify that with respect to violations of the federal Anti-Kickback Statute, "a person need not have actual knowledge" of the statute or specific intent to commit a violation of the statute. This change effectively overturns case law interpretations that set a higher standard under which prosecutors had to prove the specific intent to violate the law. In addition, the PPACA codified case law that a claim including items or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the federal civil False Claims Act. Many states have adopted prohibitions similar to the federal Anti-Kickback Statute, some of which do not have the same exceptions or safe harbors

and apply to the referral of patients for healthcare services reimbursed by any source, not only by the Medicare and Medicaid programs.

Federal law also includes a provision commonly known as the "Stark Law," which prohibits a physician from referring Medicare or Medicaid patients to an entity providing "designated health services," including a company that furnishes durable medical equipment, in which the physician has an ownership or investment interest or with which the physician has entered into a compensation arrangement. Violation of the Stark Law could result in denial of payment, disgorgement of reimbursements received under a noncompliant arrangement, civil penalties, and exclusion from Medicare, Medicaid or other governmental programs.

We believe that we have structured our provider arrangements to comply with current fraud and abuse law requirements. Nevertheless, a determination of liability under such laws could result in fines and penalties and restrictions on our ability to operate in these jurisdictions.

Additionally, as some of these laws are still evolving, we lack definitive guidance as to the application of certain key aspects of these laws as they relate to our operations and activities, including our arrangements with providers with respect to patient training. As a result, our operations and activities, including our provider and training arrangements, may ultimately be found to be not in compliance with applicable federal law.

*Federal False Claims Act & HIPAA* 

The federal False Claims Act provides, in part, that the federal government may bring a lawsuit against any person whom it believes has knowingly presented, or caused to be presented, a false or fraudulent request for payment from the federal government, or who has made a false statement or used a false record to get a claim approved. In addition, amendments in 1986 to the federal False Claims Act have made it easier for private parties to bring "qui tam" whistleblower lawsuits against companies under the federal False Claims Act. Penalties include significant civil monetary penalties for each false claim, plus three times the amount of damages that the federal government sustained because of the act of that person. Qui tam actions have continued to increase significantly in recent years, causing greater numbers of healthcare companies to have to defend a false claim action, pay fines, be excluded from Medicare, Medicaid or other federal or state healthcare programs, or be subject to integrity oversight and reporting obligations to resolve allegations of non-compliance, as a result of an investigation arising out of such action.

There are other federal anti-fraud laws that prohibit, among other actions, knowingly and willfully executing, or attempting to execute, a scheme to defraud any healthcare benefit program, including private third-party payors, knowingly and willfully embezzling or stealing from a healthcare benefit program, willfully obstructing a criminal investigation of a healthcare offense, and knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false, fictitious or fraudulent statement in connection with the delivery of or payment for healthcare benefits, items or services.

Additionally, HIPAA established two federal crimes for healthcare fraud and false statements relating to healthcare matters. The healthcare fraud statute prohibits knowingly and willfully executing a scheme to defraud any healthcare benefit program, including private payors. The false statements statute prohibits knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false, fictitious or fraudulent statement in connection with the delivery of or payment for healthcare benefits, items or services. A violation of either of these statutes is a felony and may result in fines, imprisonment, exclusion from Medicare, Medicaid or other federal or state healthcare programs, or integrity oversight and reporting obligations to resolve allegations of non-compliance.

*Civil Monetary Penalties Law* 

In addition to the federal Anti-Kickback Statute and the civil and criminal false claims laws, including the federal False Claims Act, the federal government has the authority to seek civil monetary penalties ("CMPs") assessments, and exclusion against an individual or entity based on a wide variety of prohibited conduct. For example, the Civil Monetary Penalties Law authorizes the imposition of substantial CMPs against an entity that engages in

activities including, but not limited to: (1) knowingly presenting or causing to be presented, a claim for services not provided as claimed or which is otherwise false or fraudulent in any way; (2) knowingly giving or causing to be given false or misleading information reasonably expected to influence the decision to discharge a patient; (3) offering or giving remuneration to any beneficiary of a federal health care program likely to influence the receipt of reimbursable items or services; (4) arranging for reimbursable services with an entity which is excluded from participation from a federal health care program; (5) knowingly or willfully soliciting or receiving remuneration for a referral of a federal health care program beneficiary; or (6) using a payment intended for a federal health care program beneficiary for another use. Noncompliance can result in significant civil money penalties for each wrongful act, assessment of three times the amount claimed for each item or service and exclusion from the federal healthcare programs.

*Physician Payments Sunshine Act* 

Transparency laws regarding payments or other items of value provided to healthcare providers and teaching hospitals may also impact our business practices. The federal Physician Payment Sunshine Act requires most medical device manufacturers to report annually to CMS financial arrangements, payments, or other transfers of value made by that entity to physicians (defined to include doctors, dentists, optometrists, podiatrists, and chiropractors), other healthcare professionals (such as physician assistants and nurse practitioners), and teaching hospitals, as well as ownership and investment interests held by physicians and their immediate family members. The payment information is made publicly available in a searchable format on a CMS website. Failure to comply with the reporting requirements can result in significant civil monetary penalties. Similar laws have been enacted or are under consideration in many states and foreign jurisdictions.

*State Fraud and Abuse Provisions* 

Many states have also adopted some form of anti-kickback and anti-referral laws, false claims laws, some of which apply regardless of source of payment and do not have the same exceptions as the federal laws, as well as professional fee-splitting laws. We believe that we are in conformance with such laws. Nevertheless, a determination of liability under such laws could result in fines and penalties and restrictions on our ability to operate in these jurisdictions.

*State Corporate Practice of Medicine Restrictions*

Our consolidated financial statements include our subsidiaries and variable interest entities. Through the administrative agreements with the Eon Care PCs, our medical affiliates, we have exclusive authority over all non-medical decisions related to their ongoing business operations. Some states have laws that prohibit business entities from practicing medicine, employing physicians to practice medicine, or exercising control over medical decisions of physicians. These laws are generally referred to as corporate practice of medicine laws. These state laws and regulations and agency and court decisions that enumerate the specific corporate practice rules vary considerably from state to state and are enforced by both the courts and regulatory authorities, each with broad discretion. In these states, a violation of the corporate practice of medicine prohibition constitutes the unlawful practice of medicine. If regulatory authorities or other parties in any jurisdiction successfully assert that we are engaged in the unauthorized corporate practice of medicine, we could be required to pay significant fines and restructure our contractual and other arrangements. In addition, any physician who participates in an arrangement that violates a state's corporate practice of medicine prohibition may be punished for aiding and abetting a lay entity in the unlawful practice of medicine.

Outside the United States, interactions between medical device companies and health care professionals are also governed by strict laws, such as national anti-bribery laws of European countries, national sunshine rules, regulations, industry self-regulation codes of conduct and physicians' codes of professional conduct.

*Healthcare and Regulatory Reform*

Federal and state governments continue to propose and pass new legislation and regulations designed to contain or reduce the cost of healthcare. Such new laws may result in decreased reimbursement for medical devices, which may further exacerbate industry-wide pressure to reduce the prices charged for medical devices. For example, in March 2010, the PPACA, was enacted, which substantially changes the way healthcare is financed by both governmental and private

insurers, encourages improvements in the quality of healthcare items and services and significantly impacts the medical device industry. In the years since its enactment, there have been judicial and Congressional challenges and amendments to certain aspects of the PPACA. For example, on July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law, which narrowed access to PPACA marketplace exchange enrollment and declined to extend the PPACA enhanced advanced premium tax credits that expired at the end of 2025, which, among other provisions in the law, are anticipated to reduce the number of Americans with health insurance. The OBBBA also is expected to reduce Medicaid spending and enrollment by implementing work requirements for some beneficiaries, capping state-directed payments, reducing federal funding, and limiting provider taxes used to fund the program. Congress is considering proposed legislation intended to further reduce healthcare costs with alternatives to replace the expired PPACA subsidies. It is possible that the PPACA will be subject to judicial or Congressional challenges in the future. It is unclear how such challenges and the healthcare reform measures of the current administration will impact the PPACA.

In addition, other legislative changes have been proposed and adopted since the PPACA was enacted. In August 2011, the Budget Control Act of 2011 was signed into law, which, among other things, included aggregate reductions to Medicare payments to providers of up to 2% per fiscal year, starting in 2013 and, due to subsequent legislative amendments, will remain in effect until 2032 unless additional congressional action is taken.

It is uncertain whether and how future legislation could affect our current and future operations or what actions federal, state, or private payors for healthcare treatment and services may take in response to any such healthcare reform proposals or legislation.

*Regulatory Framework in the United Kingdom*

Following the result of a referendum in 2016, the UK left the European Union on January 31, 2020, commonly referred to as Brexit.

On May 26, 2021, the Medical Device Regulation entered into application in the EU. However, the Medical Device Regulation is not applicable in Great Britain (England, Scotland, and Wales). In Great Britain, medical devices are governed by the Medical Devices Regulations 2002 (SI 2002 No 618, as amended) (UK MDR 2002) which currently retains a regulatory framework similar to the framework set out by the MDD. The UK has devised a new route to market culminating in a UKCA Mark to replace the CE Mark. Northern Ireland will, however, continue to be covered by the EU regulations governing CE Marks (and comply with the Medical Device Regulation). The UK Government has established transitional provisions to recognize the acceptance of CE Marked medical devices on the Great Britain market. Current legislations provides that medical devices which have been CE Marked in accordance with the MDD or AIMD, and for which a CE Certificate of Conformity has been delivered by a Notified Body in accordance with the MDD or AIMD, can be placed on the Great Britain market until the sooner of the expiry of the certificate or June 30, 2028. Medical devices which have been CE Marked in accordance with the Medical Device Regulation may be placed on the Great Britain market until June 30, 2030. However, the government has indicated that it intends to launch a consultation (that was penciled in for late 2025 but has not yet commenced) on proposals to indefinitely recognize CE Marked medical devices.

The UK government has introduced new legislation governing medical devices, with the first regulations strengthening post-market surveillance having come into force on June 16, 2025. Further updated regulations are scheduled to follow in the course of 2026.

*U.S. Foreign Corrupt Practices Act* 

The U.S. Foreign Corrupt Practices Act ("FCPA") prohibits U.S. corporations and their representatives from offering, promising, authorizing or making corrupt payments, gifts or transfers to any foreign government official, government staff member, political party or political candidate in an attempt to obtain or retain business abroad. The FCPA also obligates companies whose securities are listed in the United States to comply with accounting provisions requiring the company to maintain books and records that accurately and fairly reflect all transactions of the corporation, including international subsidiaries, and to devise and maintain an adequate system of internal accounting controls for international operations. Activities that violate the FCPA, even if they occur wholly outside the United States, can result in criminal and civil fines, imprisonment, disgorgement, oversight, and debarment from government contracts.

*UK Bribery Act and other anti-corruption laws*

The UK Bribery Act 2010 and other applicable foreign anti-corruption laws that apply in countries where we do business, generally prohibit us and our employees and intermediaries from authorizing, promising, offering, or providing, directly or indirectly, improper or prohibited payments, or anything else of value, to government officials or other persons to obtain or retain business or gain some other business advantage. Under the UK's Bribery Act, we may also be liable for failing to prevent a person associated with us from committing a bribery offense.

We are also subject to other laws and regulations governing our international operations, including regulations administered by the governments of the UK and authorities in the EU, including applicable export control regulations, economic sanctions and embargoes on certain countries and persons, anti-money laundering laws, import and customs requirements and currency exchange regulations, collectively referred to as trade control laws. Failure to comply with the UK's Bribery Act, and other anti-corruption laws and trade control laws could subject us to criminal and civil penalties, disgorgement and other sanctions and remedial measures, and legal expenses.

*Environmental Health and Safety Regulations*

We are also subject to various environmental health and safety rules and regulations both within the U.S. and internationally relating to pollution or protection of human health and the environment. Our research and development, manufacturing, and clinical processes involve handling potentially harmful or hazardous materials regulated under environmental laws. We may be held liable for damages, penalties and other remedial actions and legal costs if we fail to comply with these laws. These expenses or this liability could have a significant negative impact on our financial condition and reputation.

**Employees and Human Capital Resources** 

We believe that our future success depends upon our continued ability to attract and retain highly skilled and qualified employees who share in our mission to transform lives in the global diabetes community with differentiated, long-term implantable glucose monitoring technology. As of December 31, 2025, we had 130 full-time employees, of whom over half hold Ph.D., M.D., master's degree, or other post graduate degrees, and all of whom are in the United States. In 2025, most employees were in Operations and Research and Development positions aligned with our corporate focus of designing, developing and manufacturing glucose monitoring products. Effective January 2, 2026, in connection with the transition of commercialization and marketing activities back to the Company from Ascensia, we significantly expanded our workforce by hiring more than 150 employees, primarily within commercial sales, marketing, and related support functions. As a result, the composition of our employee base has begun to shift toward a greater proportion of commercial and customer-facing roles.

None of our employees are represented by a labor union or covered by a collective bargaining agreement. We consider our relationship with our employees to be good and believe our culture emphasizes innovation, accountability, collaboration, and a shared commitment to improving outcomes for people living with diabetes.

*Culture*

Employee engagement is always important to us, and improving our employee engagement with a remote, in-person and hybrid workforce remained a strategic imperative for us in 2025. We are committed to maintaining a flexible working environment for our employees because it is important to them, however this requires an intentional focus to build communications and connections in a diverse work place settings. Throughout the year, we employed initiatives and communications to attach our employees to our company mission, vision, and values. Our values define the behaviors of our existing employees, and the new hires that we welcomed to our organization during 2025:

● *Customer Inspired* emphasizes how we put the customer first while we use our talents, passion, empathy, and hard work to build technology solutions for the unmet needs of our customers.

● *Game-Changing* Innovation affects everything we do from how we think, design, and manufacture advanced technology that makes a difference.

● *Learn Fast* highlights our respect for the process of discovery and supports intelligent risk-taking knowing that all outcomes are learning opportunities to iterate and improve.

● *Thrive Together* reflects the deep respect and trust in the diversity of our backgrounds, knowledge, skills, ideas and capabilities and our belief in each other and our partners to drive success.

● *Get It Done* represents working with a sense of urgency to go above and beyond to get the job done right through quality, compliance, and timeliness.

We continue to utilize a human resource software which collects weekly employee feedback on work experience, culture, communications, interaction with their managers and other topics enabling us to react and address real time feedback. This software is an excellent tool to help monitor our culture at the organizational level, as well as the individual manager level. This feedback allows us to evaluate our initiatives and the reactions of our employees to successes and challenges in the organization. We use this platform to distribute surveys on specific topics, which demonstrates our commitment to hearing the voice of our employees and creating an inclusive environment. This software also provides opportunities for peer-to-peer recognition and valuable insights for managers to better lead their teams. We also conduct regular company calls to update all employees on progress towards our company objectives, initiatives, what is happening in various departments, customer feedback and to celebrate employee achievements and company milestones and personal employee milestones. In addition, we conduct regular employee engagement events to recognize the value of our employees and their contributions.

*Employee Health & Wellbeing*

We are committed to the health and safety of our employees and have safety training programs that ensure our workforce knows how to do their jobs safely and in compliance with laws and regulations. We operate in modern, efficient, and safe facilities, and have minimal accident and injury rates. In 2025, we expanded our wellness program "A Healthier You" to deliver a consistent cadence of weekly wellness tips, lunch and learns focused on wellness, and employee recognition to demonstrate our commitment to employee well-being. This program also includes a stipend to further support healthy behaviors.

*Organizational Development*

We are committed to attracting, developing, and retaining employees by promoting an environment to continuously develop and learn. As part of our performance management process, all levels of employees are formally required to meet with their managers at semi-annually to receive feedback on their established objectives, identify opportunities for skill development, discuss opportunities to support their career goals, and reflect on how their behaviors demonstrate our corporate values. Managers are strongly encouraged to have routine 1:1 meetings with their employees in between formal performance management meetings. The executive team meets routinely to discuss key initiatives for strategic, operational, and organizational planning. Many of these meetings were focused on organizational development including high-potential and high-performer talent discussions and employment engagement data to better understand our employee profiles and address their specific needs. We continued to celebrate our revised technical leadership pathway with an awards program to recognize and reward employees who were recently named as patent inventors. We continue to encourage professional certification and continuing education by reimbursement for professional certification classes, testing, maintenance, and tuition reimbursement of up to $5,250 annually. During 2025, we enhanced our focus on the development of and investment in our Senior Directors, which represent the key leaders within the organization by connecting regularly to capture feedback and discuss organizational strengths and challenges. We regularly engage in development conversations with our managers and directors to reinforce best practices and ensure effective performance management

*Inclusion in the Workplace*

As stated in our company values, our success thrives on the diversity of backgrounds, knowledge, skills, ideas, and capabilities within our workforce. We deeply respect each other and trust the diversity we have. With over half of our employees representing diverse ethnicities, we aspire to promote a diverse and inclusive culture that reflects the diversity of the customers we serve and fosters an environment where all employees feel welcomed, respected, and valued.

*Total Rewards*

We provide competitive compensation and benefits to attract and retain the best people. We engage nationally recognized compensation and benefits consulting firms to evaluate our total rewards programs and to provide benchmarking against our peers within the industry. We provide our employees with market competitive pay and bonuses. We complete a year-end market adjustment review process to ensure we maintain our competitive pay and pay equity between active employees and new hires and to align with the highly competitive labor market. As a result of this review process, we evaluate any market adjustments required to stay on track with the everchanging labor market and align with individual employee performance. Annual increases and incentive compensation are based on merit and documented through our performance management process as part of our annual review procedures. All employees are issued stock options and/or restricted stock units under our broad-based stock incentive programs. We offer an employee stock purchase program to all employees. Finally, we offer comprehensive benefits to all eligible employees, including health insurance, paid time off, a retirement plan with company match, health savings accounts, flexible spending accounts, life and disability coverage, voluntary accident, and critical illness.

**Corporate Information** 

Our principal executive offices are located at 20451 Seneca Meadows Parkway, Germantown, Maryland 20876-7005 and our telephone number is (301) 515-7260. Our common stock is listed on the Nasdaq Global Select Market under the symbol "SENS."

**Available Information**

Our website address is www.senseonics.com. In addition to the information contained in this Annual Report, information about us can be found on our website. Information contained in, or accessible through, our website is not a part of this Annual Report on Form 10-K, and the inclusion of our website address in this Annual Report is only as an inactive textual reference.

Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are available free of charge through our website as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission, or SEC. Additionally, the SEC maintains an internet site that contains reports, proxy and information statements and other information. The address of the SEC's website is www.sec.gov.

**Item 1A. Risk Factors**

*Our business is subject to numerous risks. You should carefully consider the following risks and all other information contained in this Annual Report, as well as general economic and business risks, together with any other documents we file with the SEC. If any of the following events actually occur or risks actually materialize, it could have a material adverse effect on our business, operating results and financial condition and cause the trading price of our common stock to decline.*

**Summary of Risks Affecting Our Business** 

Our business is subject to numerous risks. The following summary highlights some of the risks you should consider with respect to our business and prospects. This summary is not complete, and the risks summarized below are not the only risks we face. You should review and consider carefully the risks and uncertainties described in the "Risk Factors" section of this Annual Report on Form 10-K, which includes a more complete discussion of the risks summarized below as well as a discussion of other risks related to our business and an investment in our common stock, as well as our other public filings with the Securities and Exchange Commission, or SEC.

Any of the following risks could have a material adverse effect on our business, financial condition, results of operations and prospects and cause the trading price of our common stock to decline:

● We have incurred significant operating losses since inception and cannot assure you that we will ever achieve or sustain profitability. Our results of operations may fluctuate significantly from quarter to quarter or year to year.

● If we are unable to successfully transition commercial responsibility for Eversense back from Ascensia and successfully expand our commercialization of Eversense in the United States and Europe, including among other things if we are delayed or unsuccessful in growing the adoption of our product, our commercialization efforts and financial results would be directly and adversely affected.

● The markets in which we participate are highly competitive, and our primary competitors, as well as a number of other companies, medical researchers and existing medical device companies, are pursuing new delivery devices, delivery technologies, sensing technologies, procedures, drugs and other therapies for the monitoring, treatment and prevention of diabetes. Any technological breakthroughs in diabetes monitoring, treatment or prevention could reduce the potential market for Eversense or render Eversense less competitive or obsolete, which would significantly reduce our potential sales.

● We have limited operating history as a commercial-stage company and may face difficulties encountered by companies early in their commercialization in competitive and rapidly evolving markets.

● Our actual operating results may differ significantly from any guidance provided. If our actual results of operations fall below the expectations of investors or securities analysts, the price of our common stock could decline significantly.

● Medical device development involves a lengthy and expensive process, with an uncertain outcome. We may incur additional costs or experience delays in completing, or ultimately be unable to complete, ongoing development for lifecycle management of our products.

● Our products and operations are subject to extensive governmental regulation, and failure to comply with applicable requirements could cause our business to suffer. In particular, the FDA and other foreign regulatory clearance, certification, or approval processes are expensive, time-consuming and uncertain, and the failure to maintain required regulatory clearances, certifications and approvals could prevent us from commercializing Eversense and future versions of Eversense.

● Failure to secure or retain coverage or adequate reimbursement for Eversense or future versions of Eversense systems, including the related insertion and removal procedures, by third-party payors could adversely affect our business, financial condition and operating results.

● If we are unable to establish a broad inserter network through Eon Care, our commercialization efforts and financial results will be directly and adversely affected.

● Our stock price has been highly volatile and may continue to be highly volatile. The stock market in general and the market for innovative, emerging medtech and biotechnology companies in particular, has experienced volatility that has often been unrelated to the operating performance of particular companies. We cannot predict the action of market participants and, therefore, can offer no assurances that the market for our common stock will be stable or appreciate over time.

● Our operating results are subject to significant fluctuations.

● Due to our recurring losses and uncertainty regarding our ability to maintain liquidity sufficient to operate our business effectively, there is substantial doubt about our ability to continue as a going concern.

● We contract with third parties for the manufacture of Eversense. Risks associated with the manufacturing of our products, loss of key suppliers or disruption to their facilities could reduce our gross margins and negatively affect our operating results.

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● We operate in a regulated industry and our business, operations and the business and operations of our third-party manufacturers are subject to various foreign, U.S. federal, state and local laws and regulations, including those promulgated by the FDA and equivalent foreign regulatory authorities, among others. Failure to comply with applicable laws and regulations could harm our business and we may incur significant expenditures related to compliance efforts.

● Failure or perceived failure to comply with existing or future laws, regulations, contracts, self-regulatory schemes, standards, and other obligations related to data privacy and security (including security incidents) could harm our business. Compliance or the actual or perceived failure to comply with such obligations could increase the costs of our products, limit their use or adoption, and otherwise negatively affect our operating results and business.

● Holders of debt instruments may exert substantial influence over us and may exercise their control in a manner adverse to the interests of our common stockholders.

**Risks Relating to our Business and our Industry** 

***We have incurred significant operating losses since inception and cannot assure you that we will ever achieve or sustain profitability***.

Since our inception, we have incurred significant net losses and expect to incur additional losses in the near future. We incurred total net loss of $(69.1) million and $(78.6) million for the years ended December 31, 2025, and 2024, respectively. As of December 31, 2025, we had an accumulated deficit of $1.0 billion. To date, we have financed our operations primarily through sales of our equity securities and debt financings. We have devoted substantially all of our resources to the research and development of our products, including conducting clinical trials, and the commercial launch of Eversense in the United States, select markets in Europe, the Middle East, and Africa (EMEA).

To implement our business strategy we need to, among other things, successful transition commercial responsibility for Eversense back to the Company from Ascensia, gain regulatory approval or certification in other regions where we intend to sell our products, expand our commercial launch in the United States and Europe, and develop future generations of Eversense. We have never been profitable from operations and do not expect to be profitable for at least the next several years. We expect to make significant investments in product development as we pursue these objectives. The extent of our future operating losses and the timing of profitability are highly uncertain, and we expect to continue incurring expenses and operating losses over the next several years. Any additional operating losses may have an adverse effect on our stockholders' equity, and we cannot assure you that we will ever be able to achieve profitability. Even if we achieve profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis. Our failure to become and remain profitable would depress the value of our company and could impair our ability to raise capital, expand our business, maintain our development efforts, obtain regulatory approvals or certificates, diversify our product offerings or continue our operations.

***The transition of commercial responsibility for Eversense to Senseonics in European markets is subject to the finalization and execution of definitive agreements with Ascensia and an uncertain government approval process.***

We executed the Master Asset Purchase Agreement and the A&R Commercialization Agreement with Ascensia related to the termination of our Existing Commercialization Agreement and the transfer of commercial responsibility for Eversense from Ascensia back to the Company. Pursuant to these agreements, we resumed responsibility for U.S. commercial activities as of January 1, 2026 and are entitled to 100% of revenue from European Territories, subject to certain transitional arrangements. While the Master Asset Purchase Agreement and A&R Commercialization Agreement establish the primary terms of the transition, the timing and scope of certain transition activities, costs, and obligations remain subject to ongoing coordination with Ascensia. Additionally, the formal transition of commercial responsibility in the European countries is subject to the finalization and execution of definitive local purchase agreements for those jurisdictions, the negotiation of which is ongoing. Accordingly, we cannot predict with certainty the total costs that we will incur, or liabilities that we may assume, in connection with the commercial transition. If the transition requires greater resources than anticipated or the final outcomes differ from our expectations, it could have a material adverse effect on our ability to fully implement the commercial transition or on our future results of operations.

The commercialization of Eversense in certain European countries is also subject to government tender systems within the various countries. The ability of the Company to participate in the various tenders will require the satisfaction of the requirements of these countries' regulatory bodies, and in some cases approval, which vary country by country and are further governed by specific regional level requirements within the countries. Although we are working with Ascensia and our advisors to understand these processes and the necessary requirements for each country, this process is inherently uncertain, as is the timing for receipt of any required approvals. As a result, the timeline for our eventual assumption of full commercial responsibilities in these countries is difficult to predict. Additionally, if one or more countries were to condition the transfer of a tender to the Company on terms that are less favorable than we expect, it could adversely affect the success of our European commercialization efforts.

***Our resumption of commercial responsibility for Eversense will require us to develop a number of internal functions and may not be successful.***

Prior to our resumption of commercial responsibility for Eversense in the United States on January 1, 2026, it had been more than five years since we had direct commercial responsibility for Eversense. In order to effectively resume commercial responsibility for the product, we will need to develop internal sales, marketing and distribution capabilities. This will require us to integrate, and in some cases, recruit, hire and train additional sales and dedicated marketing personnel, as well as other supportive functions. As a result, we expect our operating expenses to significantly increase as we resume commercial responsibility for Eversense. Although we expect to capture a larger portion of the revenue from Eversense sales following the transition, these revenue increases may not be sufficient to cover our increased operating expenses.

We have hired many of the Ascensia personnel previously responsible for Eversense commercialization in the United States and plan to offer employment to additional European personnel after finalization of the definitive agreements with Ascensia and appropriate local labor law processes. However, we cannot guarantee you that we will be successful in transitioning all needed personnel to our Company or that we will not experience operational challenges and inefficiencies as we resume commercial responsibility for the product. Additionally, although we are working to transition the commercial responsibility of Eversense in a smooth manner, with minimal disruption to the supply of Eversense to patients, it is possible that health care providers, patients or tender authorities may have questions or concerns regarding the transition that could adversely affect demand for the product. If we encounter any of the issues described above in the transition of commercial responsibility for Eversense back to the Company, it could have a material adverse effect on our business, prospects and results of operations.

***We have limited operating history as a commercial-stage company and may face difficulties encountered by companies early in their commercialization in competitive and rapidly evolving markets.***

Our experience as a commercial-stage company upon which to evaluate our business, future sales expectations and operating results is limited. In assessing our business prospects, you should consider the various risks and difficulties frequently encountered by companies early in their commercialization in competitive and rapidly evolving markets, particularly companies that develop and sell medical devices. These risks include our ability to:

● obtain regulatory clearance, certification or approval to commercialize our products;

● perform clinical trials with respect to current Eversense or future versions of Eversense;

● implement and execute our business strategy;

● expand and improve the productivity of our sales and marketing infrastructure to grow sales of Eversense or future versions of Eversense;

● increase awareness of our brand and Eversense and build loyalty among people with diabetes, their caregivers and healthcare providers;

● manage expanding operations;

● manage and secure effective sales of our product, including the establishment of required commercial infrastructure in the U.S. and elsewhere;

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● expand the capabilities and capacities of our third-party manufacturers, including increasing production of current products efficiently and having our vendors adapt their manufacturing facilities to the production of new products;

● respond effectively to competitive pressures and developments;

● enhance Eversense and develop future versions of Eversense; and

● attract, retain and motivate qualified personnel in various areas of our business.

Due to our limited operating history as a commercial-stage company, we may not have the institutional knowledge or experience to be able to effectively address these and other risks that may face our business. In addition, we may not be able to develop insights into trends that could emerge and negatively affect our business and may fail to respond effectively to those trends As a result of these or other risks, we may not be able to execute key components of our business strategy, and our business, financial condition and operating results may suffer.

***If we are unable to successfully expand our commercialization of Eversense in the United States and Europe our business will be harmed.***

We have limited commercialization experience in both the United States and Europe. We have invested substantially all of our efforts and financial resources to the development and commercialization of Eversense. Our ability to generate revenue from our products will depend heavily on successful commercialization of products in the United States and Europe and on continuing development of future generations of our Eversense system. The success of any products that we develop will depend on several factors, including:

● receipt of timely marketing approvals from applicable regulatory authorities or CE Certificates Conformity from notified bodies in the EEA;

● our ability to procure and maintain suppliers and manufacturers of the components of Eversense and future versions of Eversense;

● market acceptance of Eversense by people with diabetes, the medical community and third-party payors;

● our ability to obtain and maintain coverage and adequate reimbursement for Eversense and the related insertion and removal procedures from third-party payors;

● our success in educating healthcare providers and people with diabetes about the benefits, administration and use of Eversense and future versions of Eversense;

● the prevalence and severity of adverse events experienced with Eversense and future versions of Eversense;

● the perceived advantages, cost, safety, convenience and accuracy of alternative diabetes management therapies;

● obtaining and maintaining patent, trademark and trade secret protection and regulatory exclusivity for Eversense and otherwise protecting our rights in our intellectual property portfolio;

● maintaining compliance with regulatory requirements, including current good manufacturing practices; and

● maintaining a continued acceptable accuracy, safety, duration and convenience profile of Eversense.

Our revenue is dependent, in part, upon the size of the markets in the territories for which we have regulatory approval or certification, the accepted price for the product, the ability to obtain coverage and reimbursement, and whether we own the commercial rights for that territory. If the number of people with diabetes we target is not as significant as we estimate or the treatment population is narrowed by competition, physician choice or treatment guidelines, we may not generate significant revenue from sales of such products.

Approval in the United States by the FDA or approval, or certification by a regulatory agency or notified body in another country does not guarantee approval, or certification by the regulatory authorities or notified bodies in other countries or jurisdictions or ensure approval, or certification for the same conditions of use. In addition, clinical trials conducted in one country may not be accepted by regulatory authorities in other countries. Approval or certification processes vary among countries and can involve additional product testing and validation and additional administrative review periods. If we do not achieve one or more of these approvals, or certifications in a timely manner or at all, we could experience significant delays or an inability to fully commercialize Eversense and achieve profitability.

Both before and after a product is commercially released, we will have ongoing responsibilities under U.S. and EU regulations. We will also be subject to periodic inspections by the FDA, the notified bodies in the EEA and comparable foreign authorities to determine compliance with regulatory requirements, such as the QMSR of the FDA, medical device reporting regulations, vigilance in reporting of adverse events and regulations regarding notification, corrections, and recalls. These inspections can result in observations or reports, warning letters or other similar notices or forms of enforcement action. If the FDA, or any comparable foreign regulatory authority concludes that we are not in compliance with applicable laws or regulations, or that any of our products are ineffective or pose an unreasonable health risk, such authority could ban these products, suspend, vary or cancel our marketing authorizations or CE Certificates of Conformity, impose "stop-sale" and "stop-import" orders, refuse to issue export certificates, detain or seize adulterated or misbranded products, order a recall, repair, replacement, correction or refund of such products, or require us to notify health providers and others that the products present unreasonable risks of substantial harm to the public health. Discovery of previously unknown problems with our product's design or manufacture may result in restrictions on the use of Eversense, restrictions placed on us or our suppliers, or withdrawal or variation of an existing regulatory clearance or CE Certificate of Conformity for Eversense. The FDA, competent authorities of EEA countries and comparable foreign regulatory authorities may also impose operating restrictions, enjoin and restrain certain violations of applicable law pertaining to medical devices, assess civil or criminal penalties against our officers, employees or us, or recommend criminal prosecution of our company. Adverse regulatory action may restrict us from effectively marketing and selling our products. In addition, negative publicity and product liability claims resulting from any adverse regulatory action could have a material adverse effect on our business, financial condition, and operating results.

Foreign governmental regulations have become increasingly stringent and more extensive, and we may become subject to even more rigorous regulation by foreign governmental authorities in the future. Penalties for a company's noncompliance with foreign governmental regulation could be severe, including revocation or suspension of a company's business license and civil or criminal sanctions. In some jurisdictions, such as Germany, any violation of a law related to medical devices is also considered to be a violation of the unfair competition law. In such cases, governmental authorities, our competitors and business or consumer associations may then file lawsuits to prohibit us from commercializing Eversense in such jurisdictions. Our competitors may also sue us for damages. Any domestic or foreign governmental law or regulation imposed in the future may have a material adverse effect on our business, financial condition and operating results.

***Our collaboration agreement with Sequel Med Tech may not lead to the benefits that we anticipate.***

In April 2025, we entered into a collaboration agreement with Sequel Med Tech (the "Sequel Collaboration"), for the purpose of integrating the companies' technologies to jointly create the first ever automated insulin delivery system with a once-yearly CGM. The development program seeks to integrate Eversense 365 and Sequel's twiist™ AID system to enable improved outcomes for people living with diabetes In January 2026, the first commercial patients began using the integrated twiist AID system paired with Eversense 365, marking the first time the world's only one-year CGM has been utilized within an AID system, and we are continuing to work with Sequel toward broader commercialization of the integrated solution. The Sequel Collaboration subjects us to additional risks in our business operations, including but not limited to:

● costs and expenses associated with the Sequel Collaboration, including the possibility that the costs associated with the integration of the companies' technologies materially exceed our current expectations;

● potential distraction from other development priorities that may provide more value to the Company;

● the possibility that either party to the Sequel Collaboration may not devote sufficient financial or other resources to the collaboration, including as a result of changes to corporate priorities;

● potential technological challenges that may be experienced in the course of the collaboration, which could disrupt integration or impede adoption;

● potential claims for infringement, misappropriation or violation of intellectual property rights of others, which could expose us to potential litigation or other legal proceedings;

● the potential for disputes to arise between the Company and Sequel Med Tech regarding the integration of the companies' technologies or other aspects of the Sequel Collaboration; and

● compliance with regulatory and legal requirements.

In addition, there is no guarantee that the Sequel Collaboration will result in the financial and economic benefits we anticipate. Any of the risks listed above and other risks may cause disruption to the technology integration under the Sequel Collaboration or even prevent us from further development efforts related to the project altogether. If the Sequel Collaboration is not successful or if we are unable to generate sufficient revenue as a result of the Sequel Collaboration, it could adversely affect our business and results of operations, and may damage our reputation.

***We are dependent on one product, Eversense. Our success depends on our ability to continue to develop, commercialize and gain market acceptance for our products.***

Our current business strategy is highly dependent on the successful commercialization of Eversense and achieving and maintaining market acceptance. In order to sell Eversense to people with diabetes, we must educate them, their caregivers and healthcare providers that Eversense is an attractive alternative to competitive products for the monitoring of glucose levels, including SMBG, as well as other competitive CGM systems and alternatives to CGM methodologies. Market acceptance and adoption of Eversense depends on educating people with diabetes, as well as their caregivers and healthcare providers, as to the distinct features, ease-of-use, positive lifestyle impact, and other perceived benefits of Eversense as compared to competitive products.

Achieving and maintaining market acceptance of Eversense could be negatively impacted by many factors, including:

● the failure of Eversense to achieve wide acceptance among people with diabetes, their caregivers, healthcare providers, third-party payors and key opinion leaders in the diabetes treatment community;

● lack of evidence supporting the accuracy, duration, safety, ease-of-use or other perceived benefits of Eversense over competitive products or other currently available diabetes management therapies;

● perceived risks associated with the use of Eversense or similar products or technologies generally;

● the introduction of competitive products and the rate of acceptance of those products as compared to Eversense;

● adverse results of clinical trials relating to Eversense or similar competitive products;

● loss of regulatory approval or CE Certificates of Conformity for Eversense, adverse publicity or other adverse events including any product liability lawsuits; and

● any limitations in our ability to effectively communicate and promote product benefits.

In addition, Eversense may be perceived by people with diabetes, their caregivers or healthcare providers to be more complicated or less effective than traditional monitoring methodologies, including SMBG or CGM systems which may require less calibration, and people may be unwilling to change their current regimens.

Moreover, healthcare providers tend to be slow to change their medical treatment practices because of perceived liability risks arising from the use of new products and the uncertainty of third-party payor reimbursement. Accordingly, healthcare providers may not recommend Eversense unless and until there is sufficient evidence to convince them to alter the treatment methods they typically recommend, such as receiving recommendations from prominent healthcare providers or other key opinion leaders in the diabetes treatment community.

If we are not successful in educating people with diabetes of the benefits of Eversense, or if we are unable to achieve the support of caregivers and healthcare providers or widespread market acceptance for Eversense, then our sales potential, strategic objectives and profitability could be negatively impacted, which would adversely affect our business, financial condition and operating results.

***We contract with third parties for the manufacture of Eversense. Risks associated with the manufacturing of our products could reduce our gross margins and negatively affect our operating results.***

We do not have any manufacturing facilities or direct manufacturing personnel. We currently rely, and expect to continue to rely, on third parties for the manufacture of Eversense for commercial sale and development of future CGM products. Our business strategy depends on our third-party manufacturers' ability to manufacture Eversense in sufficient quantities and on a timely basis so as to meet consumer demand, while adhering to product quality standards, complying

with regulatory requirements and managing manufacturing costs. We are subject to numerous risks relating to our reliance on the manufacturing capabilities of our third-party manufacturers, including:

● quality or reliability defects in Eversense;

● inability to secure product components in a timely manner, in sufficient quantities or on commercially reasonable terms;

● failure to increase production of Eversense to meet demand;

● inability to modify production lines to enable us to efficiently produce future products or implement changes in current products in response to regulatory requirements;

● difficulty identifying and qualifying alternative manufacturers in a timely manner;

● inability to establish agreements with current or future third-party manufacturers or to do so on acceptable terms; or

● potential damage to, disruption of or destruction of our manufacturers' equipment or facilities, including their information technology systems.

These risks are likely to be exacerbated by our limited experience with Eversense and its manufacturing process. As demand for our products increases, our third-party suppliers will need to invest additional resources to purchase components, hire and train employees, and enhance their manufacturing processes. If our manufacturers fail to increase production capacity efficiently, our sales may not increase in line with our expectations and our operating margins could fluctuate or decline. Further, we may be required to fund capital investments at our third-party suppliers to support increased production capacity. In addition, although we expect some of our future versions of Eversense to share product features and components with our current Eversense versions, manufacturing future versions of Eversense may require the modification of production lines, the identification of new manufacturers for specific components, or the development of new manufacturing technologies. It may not be possible for us to manufacture these products at a cost or in quantities sufficient to make these future versions of Eversense commercially viable.

***We depend on a limited number of third-party suppliers for the components of Eversense and the loss of any of these suppliers, or their inability to provide us with an adequate supply of materials, could harm our business.***

We rely on third-party suppliers to supply and manufacture the components of our Eversense system. For our business strategy to be successful, our suppliers must be able to provide us with components and Eversense systems in sufficient quantities, in compliance with regulatory requirements and quality control standards, in accordance with agreed upon specifications, at acceptable costs and on a timely basis. Future increases in sales of Eversense, whether expected or unanticipated, could strain the ability of our suppliers to deliver an increasingly large supply of components and Eversense systems in a manner that meets these various requirements.

We generally use a small number of suppliers of components for our products. Depending on a limited number of suppliers exposes us to risks, including limited control over pricing, availability, quality and delivery schedules. Generally, we do not have long-term supply agreements with our suppliers, and, in many cases, we make our purchases on a purchase order basis. Under most of our supply and manufacturing agreements, we have no obligation to buy any given quantity of products, and our suppliers have no obligation to sell us or to manufacture for us any given quantity of components or products. As a result, our ability to purchase adequate quantities of components or our products may be limited, and we may not be able to convince suppliers to make components and products available to us. Additionally, our suppliers may encounter problems that limit their ability to supply components or manufacture products for us, including financial difficulties, damage to their manufacturing equipment or facilities, or product discontinuations. As a result, there is a risk that certain components could be discontinued and no longer available to us. We may be required to make significant "last time" purchases of component inventory that is being discontinued by the supplier to ensure supply continuity. If we fail to obtain sufficient quantities of high-quality components to meet demand for our products in a timely manner or on terms acceptable to us, we would have to seek alternative sources of supply. Because of factors such as the proprietary nature of our products, our quality control standards and regulatory requirements, we may not be able to quickly engage additional or replacement suppliers for some of our critical components. Failure of any of our suppliers to deliver components at the level our business requires could disrupt the manufacturing of our products and limit our ability to meet our sales commitments, which could harm our reputation and adversely affect our business.

We may also have difficulty obtaining similar components from other suppliers that are acceptable to the FDA or other foreign regulatory authorities, and the failure of our suppliers to comply with strictly enforced regulatory requirements could expose us to regulatory action including warning letters, product recalls, and termination of distribution, product seizures or civil penalties. It could also require us to cease using the components, seek alternative components or technologies and modify our products to incorporate alternative components or technologies, which could result in a requirement to seek additional regulatory approvals or certifications. Any disruption of this nature or increased expenses could harm our commercialization efforts and adversely affect our operating results.

***Our third-party suppliers operate primarily at facilities in a single location, and any disruption to these facilities could adversely affect our business and operating results.***

Each of our third-party suppliers operates at a facility in a single location and substantially all of our inventory of component supplies and finished goods is held at these locations. We, and our suppliers, take precautions to safeguard facilities, including acquiring insurance, employing back-up generators, adopting health and safety protocols and utilizing off-site storage of computer data. However, vandalism, terrorism or a natural or other disaster, such as an earthquake, health epidemic, such as the coronavirus, fire or flood, could damage or destroy equipment or our inventory of component supplies or finished products, cause substantial delays in our operations, result in the loss of key information, or cause us to incur additional expenses. Our insurance may not cover our losses in any particular case. In addition, regardless of the level of insurance coverage, damage to our or our suppliers' facilities could harm our business, financial condition and operating results.

***If we do not enhance our product offerings through our research and development efforts, we may fail to effectively compete or become profitable.***

In order to capture and grow market share in the intensively managed diabetes market, we will need to enhance and broaden our product offerings in response to the evolving demands of people with diabetes and healthcare providers, as well as competitive pressures and technologies. These development needs include additional features, extended product life and other attributes we believe may be desired by patients. We may not be successful in developing, obtaining regulatory approval or certification for, or marketing future versions of Eversense. In addition, notwithstanding our market research efforts, our future products may not be accepted by people with diabetes, their caregivers, healthcare providers or third-party payors who reimburse people with diabetes for Eversense and healthcare providers for their services. The success of Eversense or future versions of Eversense will depend on numerous factors, including our ability, and the ability of our commercial partners, to:

● identify the product features that people with diabetes, their caregivers and healthcare providers are seeking in a CGM system and successfully incorporate those features into our products;

● develop and introduce future generations of Eversense in a timely manner;

● offer products at a price that is competitive with other products then available;

● adequately protect our intellectual property and avoid infringing upon the intellectual property rights of third parties;

● demonstrate the accuracy and safety of Eversense or future versions of Eversense;

● obtain coverage and adequate reimbursement for Eversense or future versions of Eversense and the related insertion and removal procedures; and

● obtain the necessary regulatory approvals or certifications for Eversense and future versions of Eversense. However, if regulatory authorities or Notified Bodies were to disagree, this would adversely impact our ability to commercialize that product enhancement.

If we fail to generate demand by developing products that incorporate features requested by people with diabetes, their caregivers or healthcare providers, or if we do not obtain regulatory clearance, certification or approval for future versions of Eversense in time to meet market demand, we may fail to generate sales sufficient to achieve or maintain profitability. We have in the past experienced, and we may in the future experience, delays in various phases of product development, approval, certification and commercial launch, including during research and development, regulatory submission and approval or certification, manufacturing, limited release testing, marketing and customer education efforts. Any delays in our anticipated product launches may significantly impede our ability to successfully

compete in our markets. In particular, such delays could cause customers to delay or forego purchases of our products, or to purchase our competitors' products. Even if we are able to successfully develop future versions of Eversense when anticipated, these products may not produce sales in excess of the costs of development, and they may be quickly rendered obsolete by the changing preferences of people with diabetes or the introduction by our competitors of products embodying new technologies or features.

***Failure to secure or retain coverage or adequate reimbursement for Eversense or future versions of Eversense systems, including the related insertion and removal procedures, by third-party payors, and an inability of patients to be able to access the product, could adversely affect our business, financial condition and operating results.***

We derive nearly all of our revenue from sales of Eversense in the United States and Europe and expect to do so for the next several years. Patients who receive treatment for their medical conditions and their healthcare providers generally rely on third party payors to reimburse all or part of the costs associated with their medical treatment, including healthcare providers' services. As a result, access to coverage and adequate reimbursement for Eversense by third-party payors is essential to the acceptance of our products by people with diabetes. Similarly, healthcare providers may choose not to order a product unless third-party payors cover and reimburse a substantial portion of the product. Coverage determinations and reimbursement levels of both our products and the healthcare provider's performance of the insertion and removal procedures are critical to the commercial success of our product, and if we or our commercial partners are not able to secure positive coverage determinations and reimbursement levels for our products or the insertion and removal procedures, our business would be materially adversely affected.

Within and outside the United States, reimbursement is obtained from a variety of sources, including government sponsored and private health insurance plans. These third-party payors determine whether to provide reimbursement for specific products and procedures. A third-party payor's decision to provide coverage for our products does not imply that an adequate reimbursement rate will be obtained. Further, one third-party payor's decision to cover our products does not assure that other payors will also provide coverage for the products or will provide coverage at an adequate reimbursement rate. In addition, there may be significant delays in obtaining a reimbursement determination, and coverage, if granted, may be more limited than the purposes for which the product is cleared or certified by the FDA, a Notified Body in the EEA or other foreign regulatory authorities. Moreover, eligibility for reimbursement does not imply that any product will be paid for in all cases or at a rate that covers its associated costs, including research, development, manufacture, sale and distribution. For example, payment rates may vary according to the use of the product and the clinical setting in which it is used, may be based on payments allowed for lower cost products that are already reimbursed, and may be incorporated into existing payments for other services. Net prices for products may be reduced by mandatory discounts or rebates required by government healthcare programs or third-party payors and by any future relaxation of laws that presently restrict imports of products from countries where they may be sold at lower prices.

Private insurance companies and other private third-party payors set payor-specific reimbursement policies. The extent of coverage and the rate of reimbursement vary on a payor-by-payor basis. Most of the largest private third-party payors, in terms of the number of covered lives, have issued coverage policies for the category of CGM devices. These policies include varied coverage requirements regarding patient condition and characteristics. Many of these coverage policies reimburse for CGM systems under durable medical equipment benefits, which are restrictive in nature and require the healthcare provider or supplier to comply with extensive documentation and other requirements. In addition, those third-party payors that cover CGM products may and have included limitations as to the patient conditions and characteristics eligible for coverage and may adopt different coverage and reimbursement policies for our products, which could also diminish payments for Eversense. It is possible that some third-party payors will not offer any coverage for our products. Even if favorable coverage and reimbursement status is attained for Eversense, less favorable coverage policies and reimbursement rates may be implemented in the future.

Eversense is an implantable medical device in the clinic setting and thus follows a different reimbursement path when compared to the current CGM class. Some payors will adopt a payment methodology that will bundle payment of device and procedure back to the implanting clinic. Other payors may choose to reimburse device and procedure separately. Without a Category 1 code to define the payment process, there will be some heterogeneity in this process. Given this heterogeneity, we will have to work closely with certified clinics to keep abreast of which process to follow

and what to expect. This will be disruptive to some clinics and could delay product uptake until the process of payment becomes more homogenous and well defined for clinics to follow. Until a steady state is reached, delays in processing and clinic operating coordination could result in the loss of sales, which could negatively affect our business, financial condition and operating results.

Third-party payors, whether foreign or domestic, or governmental or commercial, are developing increasingly sophisticated methods of controlling healthcare costs by imposing lower payment rates and negotiating reduced contract rates, among others. As such, we believe that future coverage and reimbursement may be subject to increased restrictions, such as additional preauthorization requirements, both in the United States and in international markets. Our dependence on the commercial success of our Eversense products makes us particularly susceptible to any cost containment or reduction efforts. If third-party coverage and reimbursement of products for which we may receive regulatory approval or certification is not available or adequate in either the United States or international markets, or if our production costs increase faster than increases in reimbursement levels, we or our commercial partners may be unable to sell Eversense or future versions of Eversense profitably and our business would be adversely impacted.

Moreover, in the EU some countries may require the completion of additional studies that compare the cost-effectiveness of a particular medical device candidate to currently available therapies. This Health Technology Assessment, or HTA process, which is currently governed by the national laws of the individual EU Member States, is the procedure according to which the assessment of the public health impact, therapeutic impact and the economic and societal impact of use of a given medical device in the national healthcare systems of the individual country is conducted. The outcome of HTA regarding specific medical device will often influence the pricing and reimbursement status granted to these products by the competent authorities of individual EU Member States. On January 31, 2018, the European Commission adopted a proposal for a regulation on health technologies assessment. The Regulation is intended to boost cooperation among EU Member States in assessing health technologies, including new medical devices, and providing the basis for cooperation at EU level for joint clinical assessments in these areas. In December 2021 the HTA Regulation was adopted and entered into force on January 11, 2022. It is now in effect as of January 12, 2025, although its implementation is phased.

In April 2022, as a part of commercialization efforts, our partner Ascensia implemented the PASS program designed to enhance affordability and access to Eversense for patients who do not have insurance coverage for Eversense, or whose insurance is denied or is insufficient. The program's design being ineffective, or a lack of a patient assistance program could adversely impact the sales of Eversense and, consequently, our net revenues. In addition, we may not be able to recognize a substantial portion of the revenue related to Eversense insertions for the patients participating in these access programs. The amount of time required to obtain favorable coverage and reimbursement decisions, including navigating the appeals process with third-party payors, is uncertain, and we may see increased product utilization without corresponding recognized revenue. Our operating results may be adversely impacted if we are unable to obtain successful appeals or favorable coverage decisions by insurance providers, or if there are not effective patient access programs in place.

***If important assumptions we have made about what people with intensively managed diabetes are seeking in a CGM system are inaccurate, our business and operating results may be adversely affected.***

Our business strategy was developed based on a number of important assumptions about the diabetes industry in general, and the diabetes market for CGM in particular, any one or more of which may prove to be inaccurate. For example, we believe that the benefits of CGM will continue to drive increased rates of market acceptance for products in this space. However, this trend is uncertain and limited sources exist to obtain reliable market data.

Another key element of our business strategy is utilizing market research to understand how people with diabetes are seeking to improve their diabetes therapy management. This strategy underlies our entire product design, marketing and customer support approach and is the basis on which we developed Eversense. However, our market research is based on interviews, focus groups and online surveys involving people with diabetes on insulin, their caregivers and healthcare providers that represent only a small percentage of the overall diabetes market. As a result, the attributes we incorporated into the Eversense system may not be reflective of what is desired by the various constituents

in the diabetes market. Consequently, our estimates of our future market share and penetration may not be accurate and our sales may be less than estimated.

***We operate in a very competitive industry and if we fail to compete successfully against our existing or potential competitors, many of whom have greater resources than we have, our sales and operating results may be negatively affected.***

The market for CGM systems is developing and competitive, subject to rapid change and significantly affected by new product introductions. We compete with well-capitalized companies, some of which are publicly traded, that manufacture CGM systems including Dexcom, Medtronic and Abbott. Each of these companies has received approval from the FDA to market their respective CGM system. Dexcom's CGM system was the first CGM system to be approved by the FDA for marketing as a non-adjunctive device, and Abbott's Freestyle Libre was also approved for non-adjunctive use. Both Dexcom (G6 and G7) and Abbott (Freestyle Libre) systems have factory calibration, and do not require user calibration.

Dexcom has also received the first FDA iCGM indication allowing its Dexcom G6 and G7 to be interoperable with other diabetes tech devices such as insulin pumps. As the industry evolves, we anticipate encountering increasing competition from companies that integrate CGM with insulin pumps. Abbott also received an iCGM indication for their Freestyle Libre 2 and 3 products and we expect all other CGM companies to pursue an iCGM indication including Medtronic.

In addition to CGM providers, we also compete with providers of SMBG systems. Three companies currently account for a substantial share of the worldwide sales of SMBG systems: Roche Diabetes Care, a division of Roche Diagnostics; Abbott; and Ascensia Diabetes Care Holdings AG. There are also a number of academic and other institutions involved in various phases of our industry's technology development.

Many of these competitors enjoy several advantages over us, including:

● greater financial and human resources for sales and marketing, and product development;

● established relationships with healthcare providers and third-party payors;

● established reputation and name recognition among healthcare providers and other key opinion leaders in the diabetes industry;

● in some cases, an established base of long-time customers;

● products supported by long-term clinical data;

● larger and more established sales, marketing and distribution networks;

● greater ability to cross-sell products or provide incentives to healthcare providers to use their products; and

● more experience in conducting research and development, manufacturing, clinical trials, and obtaining regulatory approval or clearance and certification.

In addition, mergers and acquisitions in the diabetes industry may result in even more resources being concentrated among a smaller number of our competitors. Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. These competitors also compete with us in recruiting and retaining qualified scientific and management personnel and establishing clinical trial sites and subject registration for clinical trials, as well as in acquiring technologies complementary to, or that may be necessary for, our programs.

If we are unable to effectively compete with our competitors, we may fail to meet our strategic objectives, and our business, financial condition and operating results could be harmed.

***Competitive products or other technological innovations for the monitoring, treatment or prevention of diabetes may render our products less competitive or obsolete.***

Our ability to achieve our strategic objectives will depend, among other things, on our ability to develop and commercialize products for the monitoring and management of diabetes that offer distinct features, have a longer

duration than available alternatives, are easy-to-use, receive adequate coverage and reimbursement from third-party payors, include essential safety features and are more appealing than available alternatives. Our primary competitors, as well as a number of other companies, medical researchers and existing medical device companies are pursuing new delivery devices, delivery technologies, sensing technologies, procedures, drugs and other therapies for the monitoring, treatment and prevention of diabetes. For example, the National Institutes of Health and other supporters of diabetes research are continually seeking ways to prevent, cure or improve treatment of diabetes, which, if successful, could render glucose monitoring devices, like Eversense, obsolete. Any technological breakthroughs in diabetes monitoring, treatment or prevention could reduce the potential market for Eversense or render Eversense less competitive or obsolete altogether, which would significantly reduce our potential sales.

Because of the size of the diabetes market, we anticipate that companies will continue to dedicate significant resources to developing competitive products. The frequent introduction by competitors of products that are, or claim to be, superior to our products may create market confusion that may make it difficult to differentiate the benefits of our products over competitive products. In addition, the entry of multiple new products may lead some of our competitors to employ pricing strategies that could adversely affect the pricing of our products. If a competitor develops a product that competes with or is perceived to be superior to Eversense, or if a competitor employs strategies that place downward pressure on pricing within our industry, our sales may decline significantly or may not increase in line with our expectations, either of which would harm our business, financial condition and operating results.

***The size and future growth in the market for CGM systems and CGM-related products has not been established with precision and may be smaller than we estimate, possibly materially. If our estimates and projections overestimate the size of this market, our sales growth may be adversely affected.***

Our estimates of the size and future growth in the market for CGM systems and CGM-related products, including the number of people currently managing their diabetes with insulin who may benefit from and be amenable to using Eversense, are based on a number of internal and third-party studies, reports and estimates. In addition, our internal estimates are based in large part on current treatment patterns by healthcare providers using CGM systems and our belief that the incidence of diabetes in the United States and worldwide is increasing. While we believe these factors have historically provided and may continue to provide us with effective tools in estimating the total market for CGM systems and CGM related products and our products, these estimates may not be correct and the conditions supporting our estimates may change at any time, thereby reducing the predictive accuracy of these underlying factors. The actual incidence of diabetes, and the actual demand for our products or competitive products, could differ materially from our projections if our assumptions are incorrect. As a result, our estimates of the size and future growth in the market for our CGM systems may prove to be incorrect. If the actual number of people with diabetes who would benefit from Eversense and the size and future growth in the market for Eversense is smaller than we have estimated, it may impair our projected sales growth and have an adverse impact on our business.

***Our ability to maintain and grow our revenue will depend on establishing a customer base and retaining a high percentage of our customer base.***

A key to maintaining and growing our revenue will be establishing a customer base and retaining a high percentage of our customers due to the potentially significant revenue generated from ongoing purchases of disposable sensors. We intend to continue developing customer loyalty programs to help with retention aimed at patients, their caregivers and healthcare providers, which include patient ambassadors, training specific to Eversense, ongoing support by sales and clinical employees and 24/7 technical support and customer service. If demand for our products fluctuates as a result of the introduction of competitive products, changes in reimbursement policies, manufacturing problems, perceived safety issues with our or our competitors' products, the failure to secure regulatory clearance or approvals, certifications or for other reasons, our ability to attract and retain customers could be harmed. The failure to retain a high percentage of our customers would negatively impact our business, financial condition and operating results.

***Various factors outside our direct control may adversely affect manufacturing, sterilization and distribution of our products.***

The manufacture, sterilization and distribution of our products is challenging. Changes that our suppliers may make outside the purview of our direct control can have an impact on our processes, quality of our products and the successful delivery of products to our customers. Mistakes and mishandling are not uncommon and can affect supply and delivery. Some of these risks include:

● failure to complete sterilization on time or in compliance with the required regulatory standards;

● transportation and import and export risk, particularly given the international nature of our supply and distribution chains;

● delays in analytical results or failure of analytical techniques that we will depend on for quality control and release of products;

● natural disasters, labor disputes, financial distress, raw material availability, issues with facilities and equipment (including through cyberattacks or other security incidents) or other forms of disruption to business operations affecting our manufacturers or suppliers; and

● latent defects that may become apparent after products have been released and that may result in a recall of such products.

If any of these risks were to materialize, our ability to provide our products to customers on a timely basis would be adversely impacted.

***Potential complications from Eversense or future versions of Eversense may not be revealed by our clinical experience.***

Based on our experience, complications from the use of Eversense may include sensor errors, sensor failures or skin irritation under the adhesive dressing of the transmitter. Inflammation or redness, swelling, minor infection, and minor bleeding at the sensor insertion site are also possible risks with an individual's use of the device. However, if unanticipated side-effects result from the use of Eversense or future versions of Eversense, we could be subject to liability and our systems would not be widely adopted. Additionally, we have limited clinical experience with repeated use of our CGM system in the same patient or the same insertion site. We cannot assure you that long-term use would not result in unanticipated complications, even after the device is removed.

***Undetected errors or defects in Eversense or future versions of Eversense could harm our reputation, decrease the market acceptance of Eversense or expose us to product liability claims.***

Eversense or future versions of Eversense may contain undetected errors or defects. Disruptions or other performance problems with Eversense or future versions of Eversense, including our sensors not lasting for the full approved or certified duration of use, may harm our reputation. If that occurs, we may incur significant costs, the attention of our key personnel could be diverted, or other significant customer relations problems may arise. We may also be subject to increased warranty and liability claims for damages related to errors or defects in Eversense or future versions of Eversense. A material liability claim or other occurrence that harms our reputation or decreases market acceptance of Eversense could harm our business and operating results. This risk exists even if a device is cleared, certified or approved for commercial sale and manufactured in facilities licensed and regulated by the FDA or an applicable foreign regulatory authority. Any side effects, manufacturing defects, misuse or abuse associated with Eversense or future versions of Eversense systems could result in patient injury or death. The medical device industry has historically been subject to extensive litigation over product liability claims, and we cannot offer any assurance that we will not face product liability lawsuits.

The sale and use of Eversense or future versions of Eversense could lead to the filing of product liability claims if someone were to allege that Eversense or one of our products contained a design or manufacturing defect. A product liability claim could result in substantial damages and be costly and time consuming to defend, either of which could materially harm our business or financial condition. Product liability claims may be brought against us by people with diabetes, healthcare providers or others selling or otherwise coming into contact with our products, among others. If we

cannot successfully defend ourselves against product liability claims, we will incur substantial liabilities and reputational harm. In addition, regardless of merit or eventual outcome, product liability claims may result in:

● costs of litigation;

● distraction of management's attention from our primary business;

● the inability to commercialize Eversense or future versions of Eversense;

● decreased demand for Eversense;

● damage to our business reputation;

● product recalls or withdrawals from the market;

● withdrawal of clinical trial participants;

● substantial monetary awards to patients or other claimants; or

● loss of revenue.

While we currently maintain product liability insurance covering claims up to $10.0 million per occurrence, we cannot assure you that such insurance would adequately protect our assets from the financial impact of defending a product liability claim. Any product liability claim brought against us, with or without merit, could increase our product liability insurance rates or prevent us from securing such insurance coverage in the future.

***We may enter into collaborations, in-licensing arrangements, joint ventures, strategic alliances or partnerships with third parties that may not result in the development of commercially viable products or the generation of significant future revenues.***

In the ordinary course of our business, we may enter into collaborations, in-licensing arrangements, joint ventures, strategic alliances, partnerships or other arrangements to develop products and to pursue new markets. Proposing, negotiating and implementing collaborations, in-licensing arrangements, joint ventures, strategic alliances or partnerships may be a lengthy and complex process. Other companies, including those with substantially greater financial, marketing, sales, technology or other business resources, may compete with us for these opportunities or arrangements. We may not identify, secure, or complete any such transactions or arrangements in a timely manner, on a cost-effective basis, on acceptable terms or at all. We have limited institutional knowledge and experience with respect to these business development activities, and we may also not realize the anticipated benefits of any such transaction or arrangement. In particular, these collaborations may not result in the development of products that achieve commercial success or result in significant revenues and could be terminated prior to developing any products.

Additionally, we may not be in a position to exercise sole decision-making authority regarding the transaction or arrangement, which could create the potential risk of creating impasses on decisions, and our future collaborators may have economic or business interests or goals that are, or that may become, inconsistent with our business interests or goals. It is possible that conflicts may arise with our collaborators, such as conflicts concerning the achievement of performance milestones, or the interpretation of significant terms under any agreement, such as those related to financial obligations or the ownership or control of intellectual property developed during the collaboration. If any conflicts arise with any future collaborators, they may act in their self-interest, which may be adverse to our best interest, and they may breach their obligations to us. For example, one of our vendors who provides a component to the Eversense sensor has communicated to us its belief that one of its employees should be named as a co-inventor on a related patent application. We have communicated to the third party that its employee should not be named as a co-inventor and its employee has not been named as a co-inventor to date. In addition, we may have limited control over the amount and timing of resources that any future collaborators devote to our or their future products. Disputes between us and our collaborators may result in litigation or arbitration which would increase our expenses and divert the attention of our management. Further, these transactions and arrangements will be contractual in nature and will generally be terminable under the terms of the applicable agreements and, in such event, we may not continue to have rights to the products relating to such transaction or arrangement or may need to purchase such rights at a premium.

If we enter into in-bound intellectual property license agreements, we may not be able to fully protect the licensed intellectual property rights or maintain those licenses. Future licensors could retain the right to prosecute and defend the intellectual property rights licensed to us, in which case we would depend on the ability of our licensors to obtain, maintain and enforce intellectual property protection for the licensed intellectual property. These licensors may

determine not to pursue litigation against other companies or may pursue such litigation less aggressively than we would. Further, entering into such license agreements could impose various diligence, commercialization, royalty or other obligations on us. Future licensors may allege that we have breached our license agreement with them, and accordingly seek to terminate our license, which could adversely affect our competitive business position and harm our business prospects.

***We may seek to grow our business through acquisitions of complementary products or technologies, and the failure to manage acquisitions, or the failure to integrate them with our existing business, could harm our business, financial condition and operating results.***

From time to time, we may consider opportunities to acquire other companies, products or technologies that may enhance our product platform or technology, expand the breadth of our markets or customer base, or advance our business strategies. Potential acquisitions involve numerous risks, including:

● problems assimilating the acquired products or technologies;

● issues maintaining uniform standards, procedures, controls and policies;

● unanticipated costs associated with acquisitions;

● diversion of management's attention from our existing business;

● risks associated with entering new markets in which we have limited or no experience;

● increased legal and accounting costs relating to the acquisitions or compliance with regulatory matters; and

● unanticipated or undisclosed liabilities of any target.

We have no current commitments with respect to any acquisition. We do not know if we will be able to identify acquisitions we deem suitable, whether we will be able to successfully complete any such acquisitions on favorable terms or at all, or whether we will be able to successfully integrate any acquired products or technologies. Our potential inability to integrate any acquired products or technologies effectively may adversely affect our business, operating results and financial condition.

***Our business could be adversely affected by economic downturns, inflation, increases in interest rates, natural disasters, public health crises such as pandemics, political crises, geopolitical events, or other macroeconomic conditions, which have in the past and may in the future negatively impact our business and financial performance.***

The global economy, including credit and financial markets, has experienced extreme volatility and disruptions,

including, among other things, severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, supply chain shortages, increases in inflation rates, higher interest rates and uncertainty about economic stability, due to reasons including, among other things, political changes and trends such as protectionism, economic nationalism resulting in government actions impacting international trade agreements or imposing trade restrictions such as tariffs and retaliatory counter measures.

A widespread public health crisis such as a pandemic could result in significant disruption of global financial markets, reducing our ability to access capital, which could negatively affect our liquidity. In addition, a recession or market correction resulting from the effects of public health crises could materially affect our business and the value of our common stock. It may have further negative impacts, such as (a) a global or U.S. recession or other economic crisis; (b) credit and capital markets volatility (and access to these markets, including by our suppliers and customers); (c) manufacturing supply disruption due to travel restrictions or other government actions; (d) disruptions in raw material supply, our manufacturing operations, or in our distribution and supply chain; and (e) our ability to conduct planned clinical trials and commercialization activities. The ultimate impact of a public health crisis is highly uncertain.

The Federal Reserve recently raised interest rates multiple times in response to concerns about inflation and it may raise them again. Higher interest rates, coupled with reduced government spending and volatility in financial markets may increase economic uncertainty and affect consumer spending. If the equity and credit markets deteriorate, including as a result of political unrest or war, it may make any necessary debt or equity financing more difficult to obtain in a timely manner or on favorable terms, more costly or more dilutive. Increased inflation rates can adversely affect us by increasing our costs, including labor and employee benefit costs.

***International trade policies, including tariffs, sanctions and trade barriers may adversely affect our business, financial condition, results of operations and prospects.***

We operate in a global economy, and our business depends on a global supply chain for the development, manufacturing, and distribution of our products, and for the advancement of the development programs for our future generation products. There is inherent risk, based on the complex relationships among the U.S. and the countries in which we conduct our business, that political, diplomatic, and national security factors can lead to global trade restrictions and changes in trade policies and export regulations that may adversely affect our business and operations. The current international trade and regulatory environment is subject to significant ongoing uncertainty.

We do not own or operate any manufacturing facilities. We currently rely, and expect to continue to rely, on third parties for the manufacture of our products as well as the future generations of our products under development. Currently, several of our suppliers are located outside of the United States. Tariff policies, particularly those affecting countries where our suppliers are located and medical devices generally, could materially increase our costs and reduce our profitability, including as a result of our inability to adjust pricing for our products. Although these tariff policies have not, to date, had a material effect on our production costs, recent and potential future changes in international trade policies, and medical device-specific tariffs, could present material risks to our operations and financial performance.

Recent policy discussions have included potential targeted tariffs or other trade measures specifically aimed at medical technologies as part of broader healthcare cost control or national security initiatives. Unlike consumer goods, medical devices are subject to unique regulatory constraints that make rapid supply chain adjustments particularly difficult and costly. Should additional tariffs be imposed specifically targeting medical device components, our production costs could rise significantly, and it may be difficult and costly to qualify alternative sources within another country with a lower tariff rate or within the United States, as developing and qualifying alternative sources typically requires at least several months and substantial investment and regulatory approvals. Moreover, the dynamic and unpredictable tariff and trade landscape creates substantial uncertainty and significant planning challenges for our operations. Changes in tariff classifications, country-of origin requirements, or customs procedures can occur with limited notice. This uncertainty complicates our long-term investment decisions regarding manufacturing facilities, supply chain optimization, and research and development activities.

Unlike many industries, our ability to pass increased costs to customers is limited by the nature of medical device pricing and reimbursement systems. Many of our products are distributed pursuant to pricing established through annual or multi-year contracts with commercial, third-party payors, and reimbursement methodologies established by government programs, such as Medicare. These arrangements typically include fixed pricing terms that were negotiated prior to the implementation of the recently announced tariffs. As a result, and depending on the timing and scope of the implementation of these tariffs, cost increases due to tariffs may be difficult or impossible to pass through to customers until the next negotiation cycle.

Current or future tariffs will also result in increased research and development expenses, including with respect to increased costs associated with raw materials, laboratory equipment and research materials and components. Trade restrictions affecting the import of materials necessary for the clinical trials of our future generation products could result in delays to our development timelines. Increased development costs and extended development timelines could place us at a competitive disadvantage compared to companies operating in regions with more favorable trade relationships and could reduce investor confidence and negatively impact our business, results of operations, financial condition and growth prospects.

The complexity of announced or future tariffs may also increase the risk that we or our customers or suppliers may be subject to civil or criminal enforcement actions in the United States or foreign jurisdictions related to compliance with trade regulations. Foreign governments may also adopt non-tariff measures, such as procurement preferences or informal disincentives to engage with, purchase from or invest in U.S. entities, which may limit our ability to compete internationally and attract non-U.S. investment, employees, customers and suppliers. Foreign governments may also take other retaliatory actions against U.S. entities, such as decreased intellectual property protection, increased enforcement actions, or delays in regulatory approvals, which may result in heightened international legal and operational risks. In addition, the United States and other governments have imposed and may continue to impose additional sanctions, such

as trade restrictions or trade barriers, which could restrict us from doing business directly or indirectly in or with certain countries or parties and may impose additional costs and complexity to our business.

Trade disputes, tariffs, restrictions and other political tensions between the United States and other countries may also exacerbate unfavorable macroeconomic conditions including inflationary pressures, foreign exchange volatility, financial market instability, and economic recessions or downturns. The ultimate impact of current or future tariffs and trade restrictions remains uncertain and could materially and adversely affect our business, financial condition, and prospects. While we actively monitor these risks, any prolonged economic downturn, escalation in trade tensions, or deterioration in international perception of U.S.-based companies could materially and adversely affect our business, ability to access the capital markets or other financing sources, results of operations, financial condition and prospects. In addition, tariffs and other trade developments have and may continue to heighten the risks related to the other risk factors described elsewhere in this Annual Report.

**Risks Related to our Financial Results and Need for Financing** 

***We will need to generate significant sales to achieve profitable operations.***

We intend to continue to increase our operating expenses in connection with the commercialization of Eversense, our ongoing research and development activities including the development of next generation products and the clinical trials for those products, and the commensurate development of our management and administrative functions. We will need to generate significant sales to achieve profitability, and we might not be able to do so. Even if we do generate significant sales, we might not be able to achieve, sustain or increase profitability on a quarterly or annual basis in the future. If our sales grow more slowly than we expect or if our operating expenses otherwise exceed our expectations, our financial performance and operating results will be adversely affected.

***We cannot predict the ultimate effect on our common stock share price of the one-for-twenty Reverse Stock Split of our common stock that was effected on October 17, 2025. The Reverse Stock Split may decrease the liquidity of our common stock and magnify any decrease in our overall market capitalization.***

The Reverse Stock Split may decrease the liquidity of our common stock and magnify any decrease in our overall market capitalization. The ultimate effect of the Reverse Stock Split on the market price of our common stock cannot be predicted with any certainty, and we cannot assure you that the Reverse Stock Split will result in any or all of the benefits we expect. While we expect that the reduction in the number of outstanding shares of common stock will proportionally increase the market price of our common stock, we cannot assure you that the Reverse Stock Split will increase the market price of our common stock by a multiple of the Reverse Stock Split ratio or result in any permanent or sustained increase in the market price of our common stock. The market price of our common stock depends on multiple factors, many of which are unrelated to the number of shares outstanding, including our business and financial performance, general market conditions and prospects for future success, any of which could have a counteracting effect to the Reverse Stock Split on the per share price.

In addition, the Reverse Stock Split also reduced the total number of outstanding shares of common stock, which may lead to reduced trading for our common stock. As a result of a lower number of shares outstanding, the market for our common stock may also become more volatile. The Reverse Stock Split also increased the number of stockholders who own "odd lots" of less than 100 shares of common stock. A purchase or sale of less than 100 shares of common stock (an "odd lot" transaction) may result in incrementally higher trading costs through certain brokers, particularly "full service" brokers. Therefore, those stockholders who own fewer than 100 shares of common stock following the Reverse Stock Split may be required to pay higher transaction costs if they sell their common stock.

***Our operating results may fluctuate from quarter to quarter or year to year.***

We anticipate that there will be meaningful variability in our operating results among years and quarters, as well as within each year and quarter. Our operating results, and the variability of these operating results, will be affected by numerous factors, including:

● regulatory clearance, certification or approvals affecting our products or those of our competitors;

● the ability to increase sales of Eversense and to commercialize and sell our future products, and the number of our products sold in each quarter;

● the ability to establish and grow an effective sales and marketing infrastructure and third-party distribution network;

● acceptance of our products by people with diabetes, their caregivers, healthcare providers and third-party payors;

● the pricing of our products and competitive products, and the effect of third-party coverage and reimbursement policies;

● the amount of, and the timing of the payment for, insurance deductibles required to be paid by our customers and potential customers under their existing insurance plans;

● interruption in the manufacturing or distribution of our products;

● seasonality and other factors affecting the timing of purchases of Eversense;

● timing of new product offerings, acquisitions, licenses or other significant events by us or our competitors;

● results of clinical research and trials on our products in development;

● the ability of our suppliers to timely provide us with an adequate supply of components and CGM systems that meet our requirements; and

● the timing of revenue recognition associated with our product sales pursuant to applicable accounting standards.

As a result of our lack of operating history as a commercial-stage company and lack of experience selling CGM systems, and Eversense in particular, and due to the complexities of the industry and regulatory framework in which we operate, it will be difficult for us to forecast demand for our future products and to forecast our sales with any degree of certainty. For example, many of the products we will seek to develop and introduce in the future will require regulatory approval, certification or clearance and import licenses before we can sell such products and given that the timing of such approvals, certification, clearances or licenses may be uncertain, it will be difficult for us to predict sales projections for these products with any degree of certainty before such approvals, certifications, clearances or licenses are obtained. In addition, we will be increasing our operating expenses as we expand our business. Accordingly, we may experience substantial variability in our operating results from year to year and quarter to quarter. If our quarterly or annual operating results fall below the expectations of investors or securities analysts, the price of our common stock could decline substantially. Furthermore, any quarterly or annual fluctuations in our operating results may, in turn, cause the price of our common stock to fluctuate substantially. We believe that quarterly comparisons of our financial results are not necessarily meaningful and should not be relied upon as an indication of our future performance.

***Our product revenue is subject to seasonal variation***

Our product revenues have historically been lower in the first quarter of the year as compared to the fourth quarter of the preceding year. We believe this arises primarily due to the annual reset of health insurance plan deductibles that occur at the beginning of the insurance plan year and the utilization of patient assistance programs to offset those costs and our distributors reductions of inventory of our products in the first quarter. The seasonal variance has also historically been impacted by the timing of Ascensia's purchases in accordance with minimum purchase requirements under our distribution agreement. As a result, our net sales are typically lower in the first quarter of the year than would otherwise have been the case as a result of the reduction of product inventory at our distributors. Many health insurance plans and government insurance programs reset annual limits on deductibles and out-of-pocket costs at the beginning of each calendar year and require participants to pay for a large portion of medical products and services until such deductibles and annual out-of-pocket cost limits are met. As a result of these factors, patients may delay medical expenses or find cheaper alternatives until such deductibles and annual out-of-pocket cost limits are met. Any reduction in the demand for Eversense as a result of the foregoing factors or otherwise, can adversely affect our business, operating results and financial condition.

***Covenants under the Loan and Security Agreement may result in the acceleration of outstanding indebtedness and limit the manner in which we operate.***

In September 2023, we entered into a loan agreement (the "Loan and Security Agreement") with several institutions (collectively, the "Lenders") and Hercules Capital, Inc. ("Hercules"), as administrative agent. On September 3, 2025, the Company amended the Loan and Security Agreement (the "Amended Loan and Security Agreement"). The Amended Loan and Security Agreement contains customary terms and covenants, including financial covenants, such as operating within an approved budget and achieving minimum revenue and liquidity targets, and negative covenants, such as limitations on indebtedness, liens, mergers, asset transfers, certain investing activities and other matters customarily restricted in such agreements. Most of these restrictions are subject to certain minimum thresholds and exceptions. The Amended Loan and Security Agreement also contains customary events of default, after which borrowings under the term loan will be due and payable immediately, including defaults related to payment compliance, material inaccuracy of representations and warranties, covenant compliance, material adverse changes, bankruptcy and insolvency proceedings, cross defaults to certain other agreements, judgments against the Company, change of control or delisting events, termination of any guaranty, governmental approvals, and lien priority.

As a result, we are limited in the manner in which we conduct our business and we may be unable to engage in favorable business activities, repurchase shares of our common stock or finance future operations or capital needs.

***Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt.***

Our ability to make scheduled payments of the principal of, to pay interest on or to refinance our indebtedness depends on our future performance, which is subject to economic, financial, competitive and other factors beyond our control. Our business may not generate cash flow from operations in the future sufficient to service our debt and make necessary capital expenditures. If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as selling assets, restructuring debt or obtaining additional equity capital on terms that may be onerous or highly dilutive. Our ability to refinance our indebtedness will depend on the capital markets and our financial condition at such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in a default on our debt obligations.

***Despite our current debt levels, subject to certain conditions and limitations, we may still incur substantially more debt or take other actions which would intensify the risks discussed above.***

Despite our current consolidated debt levels, we may be able to incur substantial additional debt in the future, some of which may be secured debt. We may not be subject to any restrictions on incurrence of additional indebtedness under the terms of any future indebtedness. If new debt is added to our current debt levels, the related risks that we and they now face could intensify.

***Our business may be exposed to foreign exchange risks.***

We incur some of our expenses and derive revenues from the Eversense system in currencies other than the U.S. dollar. As a result, we are exposed to foreign currency exchange risk as our results of operations and cash flows are subject to fluctuations in foreign currency exchange rates. We currently do not engage in hedging transactions to protect against uncertainty in future exchange rates between particular foreign currencies and the U.S. dollar. Therefore, for example, an increase in the value of the U.S. dollar against the euro or the British pound could have a negative impact on our revenue and earnings growth as euro and British pound revenue and earnings, if any, are translated into U.S. dollars at a reduced value. We cannot predict the impact of foreign currency fluctuations, and foreign currency fluctuations in the future may adversely affect our financial condition, results of operations and cash flows.

***There is uncertainty regarding our ability to maintain liquidity sufficient to operate our business effectively, which raises substantial doubt about our ability to continue as a going concern.***

The financial statements in this Annual Report have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our management has concluded that the capital considerations required to assume Eversense commercialization and distribution responsibilities, our existing unrestricted cash and cash equivalents, and the minimum cash requirements and satisfaction of performance milestones to comply with debt covenants under our Amended Loan and Security Agreement raise substantial doubts regarding our ability to continue as a going concern for the next twelve months after issuance of our financial statements in this Annual Report.

As of December 31, 2025 the Company had unrestricted cash, cash equivalents and marketable securities of $94.0 million consisting of cash and investments in highly liquid U.S. money market funds. We do not expect our existing cash and cash equivalents will be sufficient to fund our operations, including the expanded operations that will be required to resume commercialization of Eversense, through the next twelve months and we will need to seek additional capital to fund our operations, working capital needs, capital expenditures and other strategic initiatives beyond that time. There can be no assurance that we will be successful in raising additional capital or that any needed financing will be available in the future at terms acceptable to us. As such, we cannot conclude that such plans will be effectively implemented within one year after the date that the financial statements are issued and there is uncertainty regarding our ability to maintain liquidity sufficient to operate our business effectively, and substantial doubt exists about our ability to continue as a going concern. If we are unable to secure additional capital on acceptable terms or at all, we may be required to significantly reduce or cease our operations, pursue strategic alternatives, or consider other actions which could result in a loss to investors of their investment in our securities.

**Risks Related to Development of our Products** 

***If we modify our approved product or CE Marked, we may need to seek additional approvals or CE Certificates of Conformity, which, if not granted, would prevent us from selling our modified products.***

A component of our strategy is to continue to modify and upgrade our Eversense system, which requires approval or certification by the FDA and analogous regulatory bodies in other jurisdictions. We may not be able to obtain additional regulatory approvals or certifications for new products or for modifications to, or additional indications for, our existing products in a timely fashion, or at all. Delays in obtaining future approvals or certification, including potential delays in obtaining approval of our currently pending applications, would adversely affect our ability to introduce new or enhanced products in a timely manner, which in turn would harm our revenue and potential future profitability.

Any modifications to the Eversense that could significantly affect its safety or effectiveness, including significant design and manufacturing changes, or that would constitute a major change in its intended use, manufacture, design, components, or technology requires approval of a new PMA, or PMA supplement or similar modifications in other jurisdictions. However, certain changes to a PMA-approved device do not require submission and approval of a new PMA or PMA supplement, or appropriate modifications in other jurisdictions, and may only require notice to FDA in a PMA Annual Report, or similar notifications in other jurisdictions. In the U.S., the FDA requires every manufacturer to make this determination in the first instance, but the FDA may review any such decision. The FDA may not agree with our decisions regarding whether new approvals are necessary. Our products could be subject to recall if the FDA determines, for any reason, that our products are not safe or effective or that appropriate regulatory submissions were not made. Similar regulatory considerations apply outside the U.S. If new regulatory approvals or certifications are required, this could delay or preclude our ability to market the modified system.

For those medical devices sold in the EEA, we must notify our Notified Body if significant changes are made to the products or if there are substantial changes to our quality assurance systems affecting those products. Obtaining variation of existing CE Certificates of Conformity or a new Certificate can be a time-consuming process, and delays in obtaining required future clearances or approvals would adversely affect our ability to introduce new or enhanced products in a timely manner, which in turn would harm our future growth.

***Medical device development involves a lengthy and expensive process, with an uncertain outcome. We may incur additional costs or experience delays in completing, or ultimately be unable to complete, ongoing development for lifecycle management of our products.***

While we have completed pivotal trials in Europe and the United States, we are and may need to conduct future clinical trials in order to develop new versions of our system or to comply with requirements for post-approval studies. Clinical testing is expensive, difficult to design and implement, can take many years to complete and is inherently uncertain as to outcome. A failure of one or more clinical trials can occur at any stage of testing. Further, the outcomes of our earlier clinical trials may not be predictive of the success of later clinical trials, and interim results of a clinical trial do not necessarily predict final results. Moreover, clinical data is often susceptible to varying interpretations and analyses, and many companies that have believed their products performed satisfactorily in clinical trials have nonetheless failed to obtain marketing approval or certification.

If we are unable to successfully complete clinical trials of Eversense or other testing, if the results of these trials or tests are not favorable or if there are safety concerns, we may:

● not obtain marketing approval or certification for such modifications;

● be delayed in obtaining marketing approval or certification for such modifications;

● be subject to additional post-marketing testing requirements; or

● have Eversense removed from the market after obtaining marketing approval.

Our development costs will also increase if we experience delays in testing, marketing approvals, or certification. Significant clinical trial delays also could allow our competitors to bring innovative products to market before we do and impair our ability to successfully commercialize our products.

**Risks Related to Employee Matters and Managing our Growth** 

***Our future success depends on our ability to retain key executives and to attract, retain and motivate qualified personnel.***

We are highly dependent on the management, research and development, commercial, financial and business development expertise of Tim Goodnow, our Chief Executive Officer, Rick Sullivan, our Chief Financial Officer, Mukul Jain, our Chief Operating Officer, Brian Hansen, Chief Commercial Officer and Ken Horton, our General Counsel and Corporate Development Advisor, as well as the other members of our scientific and clinical teams. Although we have employment agreements with our executive officers, each of them may terminate their employment with us at any time and will continue to be able to do so. We do not maintain "key person" insurance for any of our executives or employees.

Recruiting and retaining qualified scientific, clinical and marketing personnel are critical to our success. In addition, as we have begun to transition responsibility for the commercialization of our products, we will also be required to recruit and retain a qualified sales force and supporting functions. The loss of the services of our executive officers or other key employees, or the inability to add required staff, could impede the achievement of our research, development and commercialization objectives or the expansion of activities to support Eversense, and seriously harm our ability to successfully implement our business strategy. Furthermore, replacing executive officers and key employees may be difficult and may take an extended period of time because of the limited number of individuals in our industry with the breadth of skills and experience required to successfully develop, gain regulatory approval of and commercialize our products. Competition to hire from this limited pool is intense, and we may be unable to hire, train, retain or motivate these key personnel on acceptable terms given the competition among numerous medical device companies for similar personnel, many of which have greater financial and other resources dedicated to attracting and retaining personnel. We also experience competition for the hiring of scientific and clinical personnel from universities and research institutions. In addition, we rely on consultants and advisors, including scientific and clinical advisors, to assist us in formulating our research and development and commercialization strategy. Our consultants and advisors may be employed by employers other than us and may have commitments under consulting or advisory contracts with other entities that may limit their availability to us. If we are unable to continue to attract and retain high quality personnel, our ability to pursue our growth strategy will be limited.

Although it will be subject to restrictions on trading, a portion of the equity of our management team will not contain other contractual transfer restrictions. This liquidity may represent material wealth to such individuals and impact retention and focus of existing key members of management.

***We will need to expand our sales and marketing and potentially other capabilities, and as a result, we may encounter difficulties in managing our growth, which could disrupt our operations.***

As of December 31, 2025, we had 137 full-time employees. As we resume responsibility for the commercialization of our products, we expect to experience significant growth in the number of our employees and the scope of our operations, particularly in the areas of sales and marketing and commercial operations. In connection with that effort, effective January 2, 2026, we expanded our workforce by hiring more than 150 employees, primarily within commercial sales, marketing, and related support functions. We also may experience growth in the number of employees in the areas of research, product development, clinical sciences, regulatory affairs, supply chain, logistics, clinical/insertion services, or additional commercial activities. To manage our future growth, we must continue to implement and improve our managerial, operational and financial systems, expand our facilities and continue to recruit and train additional qualified personnel. Due to our limited financial resources and the limited experience of our management team in managing a company with such anticipated growth, we may not be able to effectively manage the expansion of our operations or recruit and train additional qualified personnel. The expansion of our operations may lead to significant costs and may divert our management and business development resources. Any inability to manage growth could delay the execution of our business plans or disrupt our operations.

Additionally, we have and may undertake cost reduction plans, which may include reorganization of our workforce. These actions could disrupt the employee base, our ability to attract and retain qualified personnel, or cause other operational and administrative inefficiencies.

***Our employees, independent contractors, consultants, manufacturers and distributors may engage in misconduct or other improper activities, including non-compliance with regulatory standards and requirements.***

We are exposed to the risk that our employees, independent contractors, consultants, manufacturers and distributors may engage in fraudulent conduct or other illegal activity. Misconduct by these parties could include intentional, reckless or negligent conduct or disclosure of unauthorized activities to us that violates FDA regulations, including those laws requiring the reporting of true, complete and accurate information to the FDA, manufacturing standards, federal and state healthcare laws and regulations, and laws that require the true, complete and accurate reporting of financial information or data. In particular, sales, marketing and business arrangements in the healthcare industry are subject to extensive laws and regulations intended to prevent fraud, kickbacks, self-dealing and other abusive practices. These laws and regulations may restrict or prohibit a wide range of pricing, discounting, marketing and promotion, sales commission, customer incentive programs and other business arrangements. Misconduct by these parties could also involve the improper use of individually identifiable information, including, without limitation, information obtained in the course of clinical trials, which could result in regulatory sanctions and serious harm to our reputation. Our exposure to these risks will increase as we significantly increase our work force and resume responsibility for the commercialization of our products. We have adopted a code of business conduct and ethics, but it is not always possible to identify and deter misconduct, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to be in compliance with such laws or regulations. If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions could have a significant impact on our business, including the imposition of significant civil, criminal and administrative penalties, including, without limitation, damages, fines, disgorgement of profits, individual imprisonment, exclusion from participation in government healthcare programs, such as Medicare and Medicaid, integrity oversight and reporting obligations, and the curtailment or restructuring of our operations.

***We may incur product liability losses, and insurance coverage may be inadequate or unavailable to cover these losses.***

Our business exposes us to potential product liability claims that are inherent in the design, manufacture, testing and sale of medical devices. We could become the subject of product liability lawsuits alleging that component failures, manufacturing flaws, design defects or inadequate disclosure of product-related risks or product-related information resulted in an unsafe condition, injury or death to customers. In addition, the misuse of our products or the failure of customers to adhere to operating guidelines could cause significant harm to customers, including death, which could result in product liability claims. Product liability lawsuits and claims, safety alerts or product recalls, with or without merit, could cause us to incur substantial costs, and could place a significant strain on our financial resources, divert the attention of management from our core business, harm our reputation and adversely affect our ability to attract and retain customers, any of which could harm our business, financial condition and operating results.

Although we maintain third-party product liability insurance coverage, it is possible that claims against us may exceed the coverage limits of our insurance policies. Even if any product liability loss is covered by an insurance policy, these policies typically have substantial deductibles for which we are responsible. Product liability claims in excess of applicable insurance coverage would negatively impact our business, financial condition and operating results. In addition, any product liability claim brought against us, with or without merit, could result in an increase of our product liability insurance premiums. Insurance coverage varies in cost and can be difficult to obtain, and we cannot guarantee that we will be able to obtain insurance coverage in the future on terms acceptable to us or at all.

**Risks Related to our Intellectual Property** 

***Our ability to protect our intellectual property and proprietary technology is uncertain.***

We rely primarily on patent, trademark and trade secret laws, as well as confidentiality and non-disclosure agreements, to protect our proprietary technologies. As of December 31, 2025, we held a total of approximately 504 issued patents and pending patent applications that relate to our CGM system. Our intellectual property portfolio includes 122 issued United States patents, 251 patents issued in countries outside the United States, and 131 pending patent applications worldwide. Our patents expire between 2026 and 2049, subject to any patent extensions that may be available for such patents. If patents are issued on our pending patent applications, the resulting patents are projected to expire on dates ranging from 2037 to 2043, subject to any patent term extensions or adjustments that may be available for such patents. We are also seeking patent protection for our proprietary technology in Europe, Japan, China, Canada, India, Australia and other countries and regions throughout the world. We have 14 U.S. trademark registrations and 133 foreign trademark registrations, as well as one pending foreign trademark application.

We have applied for patent protection relating to certain existing and proposed products and processes. Currently, several of our issued U.S. and foreign patents as well as various pending U.S. and foreign patent applications relate to the structure and operation of our CGM sensor and CGM systems, which are important to the functionality of our products. If we fail to timely file a patent application in any jurisdiction, we may be precluded from doing so at a later date. Furthermore, we cannot assure you that any of our patent applications will be approved in a timely manner or at all. The rights granted to us under our patents, and the rights we are seeking to have granted in our pending patent applications, may not provide us with any meaningful commercial advantage. In addition, those rights could be opposed, contested or circumvented by our competitors, or be declared invalid or unenforceable in judicial or administrative proceedings. The failure of our patents to adequately protect our technology might make it easier for our competitors to offer the same or similar products or technologies. Even if we are successful in receiving patent protection for certain products and processes, our competitors may be able to design around our patents or develop products that provide outcomes which are comparable to ours without infringing on our intellectual property rights. Due to differences between foreign and U.S. patent laws, our patented intellectual property rights may not receive the same degree of protection in foreign countries as they would in the United States. Even if patents are granted outside the United States, effective enforcement in those countries may not be available.

We rely on our trademarks and trade names to distinguish our products from the products of our competitors and have registered or applied to register many of these trademarks. For example, we have one pending foreign application for the "Eversense Now" trademark relating to our mobile application. We cannot assure you that our

trademark applications will be approved in a timely manner or at all. Third parties also may oppose our trademark applications, or otherwise challenge our use of the trademarks. In the event that our trademarks are successfully challenged, we could be forced to rebrand our products, which could result in loss of brand recognition, and could require us to devote additional resources to marketing new brands. Further, we cannot assure you that competitors will not infringe upon our trademarks, or that we will have adequate resources to enforce our trademarks.

We also rely on trade secrets, know-how and technology, which are not protectable by patents, to maintain our competitive position. We try to protect this information by entering into confidentiality agreements and intellectual property assignment agreements with our officers, employees, temporary employees and consultants regarding our intellectual property and proprietary technology. In the event of unauthorized use or disclosure or other breaches of those agreements, we may not have an adequate remedy to compensate us for our trade secrets or other proprietary information. In addition, our trade secrets may otherwise become known or be independently discovered by competitors. To the extent that our commercial partners, collaborators, employees and consultants use intellectual property owned by others in their work for us, disputes may arise as to the rights in the related or resulting know-how and inventions. If any of our trade secrets, know-how or other technologies not protected by a patent were to be disclosed to or independently developed by a competitor, our business, financial condition and results of operations could be materially adversely affected.

If a competitor infringes upon one of our patents, trademarks or other intellectual property rights, enforcing those patents, trademarks and other rights may be difficult and time consuming. Patent law relating to the scope of claims in the industry in which we operate is subject to rapid change and constant evolution and, consequently, patent positions in our industry can be uncertain. Even if successful, litigation to defend our patents and trademarks against challenges or to enforce our intellectual property rights could be expensive and time consuming and could divert management's attention from managing our business. Moreover, we may not have sufficient resources or desire to defend our patents or trademarks against challenges or to enforce our intellectual property rights. Litigation also puts our patents at risk of being invalidated or interpreted narrowly and our patent applications at risk of not issuing. Additionally, we may provoke third parties to assert claims against us. We may not prevail in any lawsuits that we initiate and the damages or other remedies awarded, if any, may not be commercially material. The occurrence of any of these events may harm our business, financial condition and operating results.

***Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment and other requirements imposed by government patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.***

Periodic maintenance fees, renewal fees, annuity fees, and various other government fees on patents and applications will be due to be paid to the United States Patent and Trademark Office ("USPTO") the European Patent Office ("EPO"), and other foreign patent agencies over the lifetime of our owned patents and applications. The USPTO, the EPO and various foreign governmental patent agencies require compliance with several procedural, documentary, fee payment, and other similar provisions during the patent application process. While an inadvertent lapse can in many cases be cured by payment of a late fee or by other means in accordance with the applicable rules, there are situations in which noncompliance can result in abandonment or lapse of the patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. Non-compliance events that could result in abandonment or lapse of a patent or patent application include failure to respond to official actions within prescribed time limits, non-payment of fees and failure to properly legalize and submit formal documents. If we or our licensors or collaboration partners fail to maintain the patents and patent applications covering our proprietary technologies, our competitors might be able to enter the market earlier with similar products or technology, which would have an adverse effect on our business.

The medical device industry is characterized by patent litigation, and we could become subject to litigation that could be costly, result in the diversion of management's time and efforts, stop our development and commercialization measures, harm our reputation or require us to pay damages.

Our success will depend in part on not infringing the patents or violating the other proprietary rights of third parties. Significant litigation regarding patent rights exists in our industry. Our competitors in both the United States and

abroad, many of which have substantially greater resources and have made substantial investments in competing technologies, may have applied for or obtained or may in the future apply for and obtain, patents that will prevent, limit or otherwise interfere with our ability to make and sell our products. The large number of patents, the rapid rate of new patent issuances, and the complexities of the technology involved increase the risk of patent litigation.

The medical device industry in general, and the glucose testing sector of this industry in particular, are characterized by the existence of a large number of patents and frequent litigation based on assertions of patent infringement. We are aware of numerous patents issued to third parties that may relate to the technology used in our business, including the design and manufacture of CGM sensors and CGM systems, as well as methods for continuous glucose monitoring. Each of these patents contains multiple claims, any one of which may be independently asserted against us. The owners of these patents may assert that the manufacture, use, sale or offer for sale of our CGM sensors or CGM systems infringes one or more claims of their patents. For example, as noted in Item 3: Legal Proceedings, in May 2024, the Company received notice and accepted service of a civil complaint that had been filed in the Eastern District of Texas and styled Cellspin Soft, Inc. vs. Senseonics Holdings, Inc., and Ascensia Diabetes Care Holdings AG Case No. 2:24-cv 263. The case was filed by a non-practicing entity alleging patent infringement of three patents. The validity of all three of these patents currently is being challenged in Inter Partes Review proceedings at the U.S. Patent and Trademark Office by another party, TikTok Inc., (the "TikTok IPR") and on September 30, 2024, the Patent Trial and Appeal Board instituted a review with respect to each of the asserted claims in these three patents. Together with LifeScan, Inc. and Ascensia, on October 30, 2024, we filed a joint motion to join the TikTok IPR as well as our own independent, similar *Inter Partes Review* petitions challenging these patents. On February 5, 2025, the court issued an order staying the proceedings in the Eastern District of Texas pending resolution of the Inter Partes Reviews. On June 5, 2025, prior to the imminent TikTok IPR final hearings, the Acting Director of the U.S. Patent and Trademark Office ordered a sua sponte review by the Acting Director of whether the TikTok IPR could proceed based on certain novel issues relating to TikTok's Chinese ownership status. On January 23, 2026, the Director of the U.S. Patent and Trademark Office issued and order stating that, in view of a recent order by the Patent Trial and Appeal Board and TikTok Inc.'s announced joint venture (and the referenced ownership attributes thereof), the parties were authorized to file an additional brief addressing whether the evidence Cellspin Soft, Inc. submitted is sufficient to put TikTok Inc.'s real party in interest identification into dispute, and what effect, if any, the announced joint venture has on the TikTok IPR proceedings. TikTok, Inc. and Cellspin Soft, Inc. filed additional briefs on February 2, 2026. To date, no decision has been rendered on by the Director whether the TikTok IPR can proceed. The Inter Partes Review proceedings are all stayed pending the outcome of the sua sponte Director's review. The timing of this review remains uncertain. Were the TikTok IPR terminated, it is our belief that our independent Inter Partes Review should continue because the issues raised in the challenge to the TikTok IPR are not relevant to our filings. Should any asserted claim in the three patents survive the invalidity challenge in the Inter Partes Review proceedings, the Company intends to vigorously defend the lawsuit.

We are further reviewing the allegations, and intend to vigorously defend this matter, however, the outcome of any litigation, such as this, is inherently unpredictable.

Furthermore, there may be additional patents issued to third parties of which we are presently unaware that may relate to aspects of our technology that such third parties could assert against us and materially and adversely affect our business. In addition, because patent applications can take many years to issue, there may be patent applications that are currently pending and unknown to us, which may later result in issued patents that third parties could assert against us and harm our business.

In preparation for commercializing our Eversense products, we are performing an analysis, the purpose of which is to review and assess publicly available information to determine whether third parties hold any valid patent rights that a well-informed court would more likely than not find that we would infringe by commercializing our products, understanding that there are risks and uncertainties associated with any litigation and no predictions or assurances can be made regarding the outcome of any such litigation. Although our review and analysis are not complete and subject to the express limitations in the preceding sentence, we are not aware of any such valid patent rights. Moreover, we have not previously performed an exhaustive review of this type, and we cannot be certain that it will not result in our locating patent rights relating to our products of which we were not previously aware.

In the future, we could receive communications from various industry participants alleging our infringement of their intellectual property rights. Any potential intellectual property litigation could force us to do one or more of the following:

● stop selling our products or using technology that contains the allegedly infringing intellectual property;

● incur significant legal expenses;

● pay substantial damages to the party whose intellectual property rights we are allegedly infringing;

● redesign those products that contain the allegedly infringing intellectual property; or

● attempt to obtain a license to the relevant intellectual property from third parties, which may not be available on reasonable terms or at all, and if available, may be non-exclusive, thereby giving our competitors access to the same technology.

Patent litigation can involve complex factual and legal questions, and its outcome is uncertain. Any litigation or claim against us, even those without merit, may cause us to incur substantial costs, and could place a significant strain on our financial resources, divert the attention of management from our core business, stop our development and commercialization measures and harm our reputation. Further, as the number of participants in the diabetes market increases, the possibility of intellectual property infringement claims against us increases.

***We may be subject to damages resulting from claims that we, or our employees, have wrongfully used or disclosed alleged trade secrets of our competitors or are in breach of non-competition or non-solicitation agreements with our competitors.***

Many of our employees were previously employed at other medical device companies, including those that are our direct competitors or could potentially be our direct competitors. In some cases, those employees joined our company recently. We may be subject to claims that we, or our employees, have inadvertently or otherwise used or disclosed trade secrets or other proprietary information of these former employers or competitors. In addition, we may in the future be subject to allegations that we caused an employee to breach the terms of his or her non-competition or non-solicitation agreement. Litigation may be necessary to defend against these claims. Even if we successfully defend against these claims, litigation could cause us to incur substantial costs and could place a significant strain on our financial resources, divert the attention of management from our core business and harm our reputation. If our defense to those claims fails, in addition to paying monetary damages, we may lose valuable intellectual property rights or personnel. There can be no assurance that this type of litigation will not occur, and any future litigation or the threat thereof may adversely affect our ability to hire additional direct sales representatives. A loss of key personnel or their work product could hamper or prevent our ability to commercialize Eversense or future versions of Eversense, which could have an adverse effect on our business, financial condition and operating results.

***We may be subject to claims challenging the inventorship of our patents and other intellectual property.***

We may be subject to claims that former employees, collaborators or other third parties have an interest in our owned patent rights, trade secrets, or other intellectual property as an inventor or co-inventor. For example, inventorship disputes may arise from conflicting obligations of employees, consultants or others who are involved in developing our medical devices or other technologies. Litigation may be necessary to defend against these and other claims challenging inventorship or our patent rights, trade secrets or other intellectual property. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights, such as exclusive ownership of, or right to use, intellectual property that is important to our medical devices and other technologies. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to management and other employees. Any of the foregoing could have a material adverse effect on our business, financial condition, results of operations and prospects.

We are subject to the patent laws of countries other than the United States, which may not offer the same level of patent protection and whose rules could seriously affect how we draft, file, prosecute and maintain patents, trademarks and patent and trademark applications.

Many countries, including certain countries in Europe, have compulsory licensing laws under which a patent owner may be compelled to grant licenses to third parties (for example, the patent owner has failed to "work" the invention in that country, or the third party has patented improvements). In addition, many countries limit the enforceability of patents against government agencies or government contractors. In these countries, the patent owner may have limited remedies, which could materially diminish the value of the patent. Moreover, the legal systems of certain countries, particularly certain developing countries, do not favor the aggressive enforcement of patent and other intellectual property protection which makes it difficult to stop infringement.

We cannot be certain that the patent or trademark offices of countries outside the United States will not implement new rules that increase costs for drafting, filing, prosecuting and maintaining patents, trademarks and patent and trademark applications or that any such new rules will not restrict our ability to file for patent protection. For example, we may elect not to seek patent protection in some jurisdictions in order to save costs. We may be forced to abandon specific patents due to a lack of financial resources.

***Our intellectual property rights do not necessarily address all potential competitive threats or confer meaningful competitive benefits.***

The degree of future protection afforded by our intellectual property rights is uncertain because intellectual property rights have limitations, and may not adequately protect our business, or permit us to maintain any competitive advantage. The following examples are illustrative:

● others may be able to make devices that are the same as or similar to Eversense but that are not covered by the claims of the patents that we own;

● we or any collaborators might not have been the first to make the inventions covered by the issued patents or pending patent applications that we own and, therefore, we may be unable to enforce them;

● we might not have been the first to file patent applications covering certain of our inventions;

● others may independently develop similar or alternative technologies or duplicate any of our technologies without infringing our intellectual property rights;

● it is possible that our pending patent applications will not lead to issued patents;

● issued patents that we own may not provide us with any competitive advantages, or may be held invalid or unenforceable as a result of legal challenges;

● our competitors might conduct research and development activities in the United States and other countries that provide a safe harbor from patent infringement claims for certain research and development activities, as well as in countries where we do not have patent rights, and then use the information learned from such activities to develop competitive products for sale in our major commercial markets; and

● we may not develop additional proprietary technologies that are patentable.

**Risks Related to our Legal and Regulatory Environment** 

Our products and operations are subject to extensive governmental regulation, and failure to comply with applicable requirements could cause our business to suffer.

The medical device industry is regulated extensively by governmental authorities, principally the FDA and corresponding state regulatory agencies in the United States, foreign regulatory authorities and the Notified Bodies in the EEA. The regulations are very complex and are subject to rapid change and varying interpretations. Regulatory restrictions or changes could limit our ability to carry on or expand our operations or result in higher than anticipated costs or lower than anticipated sales. These governmental authorities enforce laws and regulations that are meant to assure product safety and effectiveness, including the regulation of, among other things:

● product design and development;

● preclinical studies and clinical trials;

● product safety;

● establishment registration and product listing;

● labeling and storage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● marketing, manufacturing, sales and distribution;

● pre-market clearance, certification or approval;

● servicing and post-market surveillance;

● advertising and promotion; and

● recalls and field safety corrective actions.

The regulations to which we are subject are complex and have tended to become more stringent over time. Regulatory changes could result in restrictions on our ability to carry on or expand our operations, higher than anticipated costs or lower than anticipated revenues. Failure to comply with applicable regulations could jeopardize our ability to sell our products and result in enforcement actions such as fines, civil penalties, injunctions, warning letters, recalls of products, delays in the introduction of products into the market, refusal of the regulatory agency or other regulators or Notified Bodies to grant future clearances, CE Certificates of Conformity or approvals, and the suspension, variation or withdrawal of existing approvals or CE Certificates of Conformity by such regulatory bodies. For example, in September 2019 we voluntarily initiated a recall of Eversense sensors that had not yet been implanted, due to premature loss of function due to inadequate hydration of the sensor's glucose-sensing surface. This recall, as well as any of the above sanctions, could result in higher than anticipated costs or lower than anticipated sales and harm our reputation, business, financial condition and operating results.

***The FDA regulatory clearance process and regulatory processes in other countries are expensive, time-consuming and uncertain, and the failure to obtain and maintain required regulatory clearances, certification and approvals could prevent us from commercializing Eversense and future versions of Eversense.***

Products that are approved through a PMA application generally need FDA approval before they can be modified, and similar approval or certification processes are required in other jurisdictions where we may want to market our products. The process of obtaining regulatory approvals or certifications to market a medical device can be costly and time-consuming, and we may not be able to obtain these approvals or certifications on a timely basis, or at all for our products.

If the FDA requires us to go through a more rigorous examination for future products or modifications to existing products than we had expected, our product introductions or modifications could be delayed or canceled, which could cause our sales to decline or to not increase in line with our expectations.

The FDA or comparable foreign regulatory authorities and Notified Bodies can delay, limit or deny approval or certification of a device for many reasons, including:

● we may not be able to demonstrate that our products are safe and effective for their intended users;

● the data from our clinical trials may be insufficient to support approval or certification; and

● the manufacturing process or facilities we use may not meet applicable requirements.

In addition, the FDA or comparable foreign regulatory authorities may change approval or certification policies, adopt additional regulations or revise existing regulations, or take other actions which may prevent or delay approval or certification of our product modifications under development.

Any delay in, or failure to receive or maintain, approval or certifications for our products could prevent us from generating revenue from these products or achieving profitability.

***If we or our third-party suppliers fail to comply with the FDA's or other foreign regulatory authorities' good manufacturing practice regulations, this could impair our ability to market our products in a cost-effective and timely manner.***

We and our third-party suppliers are required to comply with the FDA's QMSR, which covers the methods and documentation of the design, testing, production, control, quality assurance, labeling, packaging, sterilization, storage and shipping of our products. The FDA audits compliance with the QMSR through periodic announced and unannounced inspections of manufacturing and other facilities. The FDA may impose inspections or audits at any time.

If we or our suppliers have significant non-compliance issues or if any corrective action plan that we or our suppliers propose in response to observed deficiencies is not sufficient, the FDA could take enforcement action against us. We are subject to equivalent limitations and penalties in foreign countries. Any of the foregoing actions could impair our reputation, business, financial condition and operating results.

***A recall of our products, or the discovery of serious safety issues with our products, could have a significant negative impact on us.***

The FDA has the authority to require the recall of commercialized products in the event of material deficiencies or defects in design or manufacture or in the event that a product poses an unacceptable risk to health. Our third-party suppliers may, under their own initiative, recall a product if any material deficiency in a device is found. A government-mandated or voluntary recall by us or one of our third-party distributors could occur as a result of an unacceptable risk to health, component failures, manufacturing errors, design or labeling defects or other deficiencies and issues. For example, in September 2019 we voluntarily initiated a recall of Eversense sensors that had not yet been implanted, due to premature loss of function due to inadequate hydration of the sensor's glucose-sensing surface. Recalls of any of our products would divert managerial and financial resources and have an adverse effect on our reputation, financial condition and operating results, which could impair our ability to produce our products in a cost-effective and timely manner.

Further, under the FDA's medical device reporting regulations, we are required to report to the FDA any incident in which our product may have caused or contributed to a death or serious injury or in which our product malfunctioned and, if the malfunction were to recur, would likely cause or contribute to death or serious injury. Repeated product malfunctions may result in a voluntary or involuntary product recall, which could divert managerial and financial resources, impair our ability to manufacture our products in a cost-effective and timely manner and have an adverse effect on our reputation, financial condition and operating results.

Any adverse event involving our products could result in future voluntary corrective actions, such as recalls or customer notifications, or regulatory agency action, which could include inspection, mandatory recall or other enforcement action. Any corrective action, whether voluntary or involuntary, will require the dedication of our time and capital, distract management from operating our business and may harm our reputation and financial results.

In addition, we may be required to conduct costly post-market testing and surveillance to monitor the safety or effectiveness of our products in the EEA. We must comply with medical device reporting requirements, including the reporting of adverse events and malfunctions related to our products. Later discovery of previously unknown problems with our products, including unanticipated adverse events or adverse events of unanticipated severity or frequency, manufacturing problems, or failure to comply with regulatory requirements may result in changes to labeling, restrictions on such products or manufacturing processes, withdrawal of the products from the market, voluntary or mandatory recalls, a requirement to repair, replace or refund the cost of any medical device we manufacture or distribute, fines, suspension, variation or withdrawal of CE Certificates of Conformity, product seizures, injunctions or the imposition of civil or criminal penalties which would adversely affect our business, operating results and prospects.

***We are subject to the U.K. Bribery Act, the U.S. Foreign Corrupt Practices Act and other anti-corruption and anti-money-laundering laws in foreign jurisdictions, as well as export control laws, customs laws, sanctions laws and other laws governing our future global operations. If we fail to comply with these laws, we could be subject to civil or criminal penalties, other remedial measures and legal expenses, which could adversely affect our business, results of operations and financial condition.***

Our current and future global operations will expose us to trade and economic sanctions and other restrictions imposed by the United States, the European Union and other governments and organizations. The U.S. Departments of Justice, Commerce, State and Treasury and other federal agencies and authorities have a broad range of civil and criminal penalties they may seek to impose against corporations and individuals for violations of economic sanctions laws, export control laws, the Foreign Corrupt Practices Act ("FCPA") and other federal statutes and regulations, including those established by the Office of Foreign Assets Control ("OFAC"). In addition, the U.K. Bribery Act of 2010 ("Bribery Act") prohibits both domestic and international bribery, as well as bribery across both private and public

sectors. An organization that "fails to prevent bribery" by anyone associated with the organization can be charged under the Bribery Act unless the organization can establish the defense of having implemented "adequate procedures" to prevent bribery. Under these laws and regulations, as well as other anti-corruption laws, anti-money-laundering laws, export control laws, customs laws, sanctions laws and other laws governing our operations, various government agencies may require export licenses, may seek to impose modifications to business practices, including cessation of business activities in sanctioned countries or with sanctioned persons or entities and modifications to compliance programs, which may increase compliance costs, and may subject us to fines, penalties and other sanctions. A violation of these laws or regulations could adversely impact our business, results of operations and financial condition.

We will implement and maintain policies and procedures designed to ensure compliance by us, and our directors, officers, employees, representatives, third-party distributors, consultants and agents with the FCPA, OFAC restrictions, the Bribery Act and other export control, anticorruption, anti-money-laundering and anti-terrorism laws and regulations, including in foreign jurisdictions. We cannot assure you, however, that our policies and procedures will be sufficient or that directors, officers, employees, representatives, third-party distributors, consultants and agents have not engaged and will not engage in conduct for which we may be held responsible, nor can we assure you that our business partners have not engaged and will not engage in conduct that could materially affect their ability to perform their contractual obligations to us or even result in our being held liable for such conduct. Violations of the FCPA, OFAC restrictions, the Bribery Act or other export control, anti-corruption, anti-money-laundering and anti-terrorism laws or regulations, including in foreign jurisdictions, may result in severe criminal or civil sanctions, and we may be subject to other liabilities, which could have a material adverse effect on our business, financial condition, cash flows and results of operations.

***We are subject to additional federal, state and foreign laws and regulations relating to our healthcare business; our failure to comply with those laws could have an adverse impact on our business***.

We are subject to broadly applicable federal, state, and foreign healthcare laws, including health care fraud and abuse and health information privacy and security laws, which could adversely impact our business. Such healthcare laws applicable to our operations include:

● the federal Anti-Kickback Statute, which will apply to our marketing practices, educational programs, pricing policies and relationships with healthcare providers, by prohibiting, among other things, soliciting, receiving, offering or providing remuneration intended to induce the purchase or recommendation of an item or service reimbursable under a federal healthcare program, such as the Medicare or Medicaid programs. A person or entity does not need to have actual knowledge of this statute or specific intent to violate it to have committed a violation;

● federal civil and criminal false claims laws and civil monetary penalty laws, including the False Claims Act, which is enforceable through civil whistleblower or qui tam actions, prohibit, among other things, knowingly presenting, or causing to be presented, claims for payment or approval to the federal government that are false or fraudulent, knowingly making a false statement material to an obligation to pay or transmit money or property to the federal government or knowingly concealing or knowingly and improperly avoiding or decreasing an obligation to pay or transmit money or property to the federal government. The government may assert that a claim including items or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the false claims statutes;

● HIPAA, and its implementing regulations, which created federal criminal and civil statutes that prohibit, among other things, executing a scheme to defraud any healthcare benefit program or making false statements relating to healthcare matters;

● HIPAA, as amended by HITECH, and their implementing regulations, which also imposes obligations on "covered entities," including certain healthcare providers, health plans, and healthcare clearinghouses, as well as their respective "business associates" that create, receive, maintain or transmit individually identifiable health information for or on behalf of a covered entity and their subcontractors, regarding the privacy, security and transmission of such individually identifiable health information;

● federal "sunshine" requirements, under the Physician Payments Sunshine Act, imposed by the PPACA, on device manufacturers regarding the annual reporting to CMS, of any "transfer of value" made or distributed to physicians (defined to include doctors, dentists, optometrists, podiatrists, and chiropractors), other healthcare

professionals (such as physician assistants and nurse practitioners), and teaching hospitals, and ownership and investment interests held by physicians and their immediate family members. Failure to timely submit required information may result in significant civil monetary penalties;

● federal consumer protection and unfair competition laws, which broadly regulate marketplace activities and activities that potentially harm consumers;

● state law equivalents of each of the above federal laws, such as anti-kickback and false claims laws that may apply to items or services reimbursed by any third-party payor, including commercial insurers; state laws that require device companies to comply with the industry's voluntary compliance guidelines and the relevant compliance guidance promulgated by the federal government or otherwise restrict payments that may be made to healthcare providers; state laws that require device manufacturers to report information related to payments and other transfers of value to physicians and other healthcare providers or marketing expenditures; state fee-splitting laws, and state laws governing the privacy and security of certain health information, many of which differ from each other in significant ways and often are not preempted by HIPAA;

● state corporate practice of medicine laws, which prohibit business entities from practicing medicine, employing physicians to practice medicine, or exercising control over medical decisions of physicians. In addition, any physician who participates in an arrangement that violates a state's corporate practice of medicine prohibition may be punished for aiding and abetting a lay entity in the unlawful practice of medicine; and

● equivalent foreign legislation and requirements including in relation to interactions between medical devices companies and healthcare professionals, such as national anti-bribery laws of European countries, national sunshine rules, regulations, industry self-regulation codes of conduct and physicians' codes of professional conduct. Failure to comply with these requirements could result in reputational risk, public reprimands, administrative penalties, fines or imprisonment

The risk of our being found in violation of these laws and regulations is increased by the fact that the scope and enforcement of these laws is uncertain, many of them have not been fully interpreted by the regulatory authorities or the courts, their provisions are open to a variety of interpretations, or they vary country by country. We are unable to predict what additional federal, state or foreign legislation or regulatory initiatives may be enacted in the future regarding our business or the healthcare industry in general, or what effect such legislation or regulations may have on us. Federal, state or foreign governments may (i) impose additional restrictions or adopt interpretations of existing laws that could have a material adverse effect on us or (ii) challenge our current or future activities under these laws. Any of these challenges could impact our reputation, business, financial condition and operating results.

Our activities, including our research, sales and marketing, training programs, and patient reimbursement support activities, and relationships with Eon Care PCs, may be subject to scrutiny under these laws. If our operations are found to be in violation of any of the laws described above or any other governmental regulations that apply to us now or in the future, we may be subject to penalties, including significant civil, criminal, and administrative penalties, damages, fines, disgorgement of profits, imprisonment, exclusion from governmental health care programs, such as Medicare and Medicaid, payment denials, and the curtailment or restructuring of our operations, any of which could adversely affect our ability to operate our business and our financial results. Any federal, state or foreign regulatory review to which we may become subject, regardless of the outcome, would be costly and time-consuming. In addition, if our affiliated physicians are found to have violated these laws, they could also be subject to significant fines and other sanctions through professional licensure proceedings.

For example, to enforce compliance with the federal laws, the U.S. Department of Justice has increased its scrutiny of interactions between healthcare companies and healthcare providers, which has led to a number of investigations, prosecutions, convictions and settlements in the healthcare industry. Dealing with investigations can be time and resource consuming and can divert management's attention from our core business. Additionally, if we settle an investigation with law enforcement or other regulatory agencies, we may be forced to agree to additional onerous compliance and reporting requirements as part of a consent decree or corporate integrity agreement. Any such investigation or settlement could increase our costs or otherwise have an adverse effect on our business.

***We are subject to stringent and evolving U.S. and foreign laws, regulations, and rules, contractual obligations, industry standards, policies and other obligations related to data privacy and security. Our actual or perceived failure to comply with such obligations could lead to regulatory investigations or actions; litigation (including class claims) and mass arbitration demands; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; loss of customers or sales; and other adverse business consequences.***

In the ordinary course of business, we collect, receive, store, process, generate, use, transfer, disclose, make accessible, protect, secure, dispose of, transmit, and share (collectively, process) personal data and other sensitive information, including proprietary and confidential business data, trade secrets, intellectual property, data we collect about trial participants in connection with clinical trials, and sensitive third-party data. Our data processing activities subject us to numerous data privacy and security obligations, such as various laws, regulations, guidance, industry standards, external and internal privacy and security policies, contractual requirements, and other obligations relating to data privacy and security.

In the United States, federal, state, and local governments have enacted numerous data privacy and security laws, including data breach notification laws, personal data privacy laws, consumer protection laws (e.g., Section 5 of the Federal Trade Commission Act), and other similar laws (e.g., wiretapping laws). For example, the federal Health Insurance Portability and Accountability Act of 1996 ("HIPAA"), as amended by the Health Information Technology for Economic and Clinical Health Act ("HITECH"), imposes specific requirements relating to the privacy, security, and transmission of individually identifiable protected health information.

Numerous U.S. states have enacted comprehensive privacy laws that impose certain obligations on covered businesses, including providing specific disclosures in privacy notices and affording residents with certain rights concerning their personal data. As applicable, such rights may include the right to access, correct, or delete certain personal data, and to opt-out of certain data processing activities, such as targeted advertising, profiling, and automated decision-making. The exercise of these rights may impact our business and ability to provide our products and services. Certain states also impose stricter requirements for processing certain personal data, including sensitive information, such as conducting data privacy impact assessments. These state laws allow for statutory fines for noncompliance. The California Consumer Privacy Act of 2018 ("CCPA") and other comprehensive U.S. state privacy laws exempt some data processed in the context of clinical trials, but these developments may further complicate compliance efforts, and increase legal risk and compliance costs for us and the third parties with whom we work. Similar laws are being considered in several other states, as well as at the federal and local levels, and we expect more states to pass similar laws in the future.

The collection and use of personal health data in the EEA and the UK is governed by the EU and UK GDPR (collectively, GDPR). The GDPR applies to the processing of personal data by any company established in the EEA or UK and to companies established outside the EEA to the extent they process personal data in connection with the offering of goods or services to data subjects in the EEA or the monitoring of the behavior of data subjects in the EEA or UK. Under the GDPR, companies may face temporary or definitive bans on data processing and other corrective actions; fines of up to 20 million Euros under the EU GDPR / 17.5 million pounds sterling under the UK GDPR, or 4% of annual global revenue, whichever is greater; or private litigation related to processing of personal data brought by classes of data subjects or consumer protection organizations authorized at law to represent their interests. The GDPR enhances data protection obligations for data controllers of personal data, including stringent requirements relating to the consent of data subjects, expanded disclosures about how personal data is used, requirements to conduct privacy impact assessments for "high risk" processing, limitations on retention of personal data, mandatory data breach notification and "privacy by design" requirements, and creates direct obligations on service providers acting as processors. The Swiss Federal Act on Data Protection, or the FADP, also applies to the collection and processing of personal data, including health-related information, by companies located in Switzerland, or in certain circumstances, by companies located outside of Switzerland. The GDPR also imposes strict rules on the transfer of personal data outside of the EEA and UK to countries that do not ensure an adequate level of protection, like the United States. In the ordinary course of business, we transfer personal data from the EEA and UK or other jurisdictions to the United States or other countries. Europe and other jurisdictions have enacted laws requiring data to be localized or limiting the transfer of personal data to other countries. In particular, the EEA and the UK have significantly restricted the transfer of personal data to the United States and other countries whose privacy laws it generally believes are inadequate. Although there are currently various

mechanisms that may be used to transfer personal data from the EEA and UK or other jurisdictions to the United States in compliance with law, such as the EEA standard contractual clauses, the UK's International Data Transfer Agreement / Addendum, and the EU-U.S. Data Privacy Framework and the UK extension thereto (which allows for transfers to relevant U.S.-based organizations who self-certify compliance and participate in the Framework). These mechanisms are subject to legal challenges, and there is no assurance that we can satisfy or rely on these measures to lawfully transfer personal data to the United States. If there is no lawful manner for us to transfer personal data from the EEA or UK or other jurisdictions to the United States, or if the requirements for a legally-compliant transfer are too onerous, we could face significant adverse consequences, including the interruption or degradation of our operations, the need to relocate part of or all of our business or data processing activities to other jurisdictions at significant expense, increased exposure to regulatory actions, substantial fines and penalties, the inability to transfer data and work with partners, vendors and other third parties, and injunctions against our processing or transferring of personal data necessary to operate our business. Additionally, companies that transfer personal data out of the EEA and UK to other jurisdictions, particularly to the United States, are subject to increased scrutiny from regulators, individual litigants, and activist groups. Some European regulators have ordered certain companies to suspend or permanently cease certain transfers out of Europe for allegedly violating the GDPR's cross-border data transfer limitations. Other jurisdictions have adopted and may adopt stringent data localization and cross-border data transfer laws.

Additionally, the U.S. Department of Justice issued a rule entitled the Preventing Access to U.S. Sensitive Personal Data and Government-Related Data by Countries of Concern or Covered Persons, which places additional restriction on certain data transactions involving countries of concern (e.g., China, Russia, Iran) and covered persons (i.e., individuals and entities who are designated as such by the U.S. Attorney General or considered "foreign persons" and are majority owned by, organized under the laws of, a primary resident in, or a contractor of, a covered person or country of concern, as applicable) that may impact certain business activities such as vendor engagements, sale or sharing of data, employment of certain individuals, and investor agreements. Violations of the rule could lead to significant civil and criminal fines and penalties. The rule applies regardless of whether data is anonymized, key-coded, pseudonymized, de-identified or encrypted, which presents particular challenges for companies like ours and may impact our ability to engage in transactions or agreements with certain third parties in the future.

In addition to data privacy and security laws, we are contractually subject to certain industry standards adopted by industry groups and, we are, and may become subject in the future, to additional such obligations. We are also bound by contractual obligations related to data privacy and security, and our efforts to comply with such obligations may not be successful. Our contracts may not contain limitations of liability, and even where they do, there can be no assurance that limitations of liability in our contracts are sufficient to protect us from liabilities, damages, or claims related to our data privacy and security obligations. We publish privacy policies, and other statements concerning data privacy and security. Regulations in the United States are increasingly scrutinizing these statements, and if these policies or statements are found to be deficient, lacking in transparency, deceptive, unfair, misleading, or misrepresentative of our practices, we may be subject to investigation, enforcement actions by regulators or other adverse consequences.

Our employees and personnel use generative artificial intelligence ("AI") technologies to perform their work, and the disclosure and use of personal data in generative AI technologies is subject to various privacy laws and other privacy obligations. Governments have passed and are likely to pass additional laws and regulations regulating generative AI. Our use of this technology could result in additional compliance costs, regulatory investigations and actions, and lawsuits. If we are unable to use generative AI, it could make our business less efficient and result in competitive disadvantages.

Additionally, under various privacy laws and other obligations, we may be required to obtain certain consents to process personal data. For example, some of our data processing practices may be challenged under wiretapping laws, if we obtain consumer information from third parties through various methods, including chatbot and session replay providers, cookies, or via third-party marketing pixels. These practices are subject to increased challenges by class action plaintiffs. Our inability or failure to obtain consent for these practices could result in adverse consequences, including class action litigation and mass arbitration demands.

Obligations related to data privacy and security (and consumers' expectations) are quickly changing, becoming increasingly stringent, and creating uncertainty. Additionally, these obligations may be subject to differing applications

and interpretations, which may be inconsistent or conflict among jurisdictions. Preparing for and complying with these obligations requires us to devote significant resources, which has in the past and may in the future necessitate changes to our services, information technologies, systems, and practices and to those of any third parties that process personal data on our behalf.

If we or the parties on which we rely fail to comply or are alleged to have failed to comply with applicable data privacy obligations, we could face significant consequences, including but not limited to: government enforcement actions (e.g., investigations, fines, penalties, audits, inspections, and similar); litigation (including class-action claims) and mass arbitration demands; additional reporting requirements and/or oversight; bans on processing personal data; orders to destroy or not use personal data and imprisonment of company officials. In particular, plaintiffs have become increasingly more active in bringing privacy-related claims against companies, including class claims and mass arbitration demands. Some of these claims allow for the recovery of statutory damages on a per violation basis, and, if viable, carry the potential for monumental statutory damages, depending on the volume of data and the number of violations.

Any associated claims, inquiries, or investigations or other government actions could lead to unfavorable outcomes that have a material impact on our business including through significant penalties or fines, monetary judgments or settlements including criminal and civil liability for us and our officers and directors, increased compliance costs, delays or impediments in the development of new products, inability to process personal data or to operate in certain jurisdictions; negative publicity, increased operating costs, diversion of management time and attention, or other remedies that harm our business, including orders that we modify or cease existing business practices.

Moreover, governments and regulators in certain jurisdictions, including Europe, are increasingly seeking to regulate the use, transfer and other processing of non-personal information (for example, under the European Union's Data Act). This means that, if and to the extent such regulations are relevant to our operations or those of our customers, certain of the above risks and considerations may apply equally to our processing of both personal and non-personal information.

***If our information technology systems or those third parties with whom we work, or our data, are or were compromised, we could experience adverse consequences resulting from such compromise, including but not limited to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; loss of customers or sales; and other adverse consequences.*** 

In the ordinary course of our business, we and the third parties with whom we work, process proprietary, confidential, and sensitive data, including personal data (such as health-related data), intellectual property and trade secrets (collectively, sensitive information). Cyber-attacks, malicious internet-based activity, online and offline fraud, and other similar activities threaten the confidentiality, integrity, and availability of our sensitive information and information technology systems, and those of the third parties upon which we rely. Such threats are prevalent and continue to rise, are increasingly difficult to detect, and come from a variety of sources, including traditional computer "hackers," threat actors, "hacktivists," organized criminal threat actors, personnel (such as through theft or misuse), sophisticated nation states, and nation-state-supported actors. We and the third parties with whom we work are subject to a variety of evolving threats, including but not limited to social-engineering attacks (including through deep fakes, which may be increasingly more difficult to identify as fake, and phishing attacks), malicious code (such as viruses and worms), malware (including as a result of advanced persistent threat intrusions), denial-of-service attacks, credential stuffing attacks, credential harvesting, personnel misconduct or error, ransomware attacks, supply-chain attacks, software bugs, server malfunctions, software or hardware failures, loss of data or other information technology assets, adware, telecommunications failures, attacks enhanced or facilitated by AI, and other similar threats. In particular, severe ransomware attacks are becoming increasingly prevalent and can lead to significant interruptions in our operations, loss of sensitive data and income, reputational harm, and diversion of funds. Extortion payments may alleviate the negative impact of a ransomware attack, but we may be unwilling or unable to make such payments due to, for example, applicable laws or regulations prohibiting such payments.

It may be difficult and/or costly to detect, investigate, mitigate, contain, and remediate a security incident. Our efforts to do so may not be successful. Actions taken by us or the third parties with whom we work to detect, investigate,

mitigate, contain, and remediate a security incident could result in outages, data losses, and disruptions of our business. Threat actors may also gain access to other networks and systems after a compromise of our networks and systems. For example, threat actors may use an initial compromise of one part of our environment to gain access to other parts of our environment, or leverage a compromise of our networks or systems to gain access to the networks or systems of third parties with whom we work, such as through phishing or supply chain attacks.

Because of our hybrid work policies, sensitive information may be less secure as more of our employees utilize network connections, computers and devices outside our premises or network, including working at home, while in transit and in public locations.

Future or past business transactions (such as acquisitions or integrations) could expose us to additional cybersecurity risks and vulnerabilities, as our systems could be negatively affected by vulnerabilities present in acquired or integrated entities' systems and technologies. Furthermore, we may discover security issues that were not found during due diligence of such acquired or integrated entities, and it may be difficult to integrate companies into our information technology environment and security program.

We rely on third-parties and technologies to operate critical business systems to process sensitive information in a variety of contexts. Our ability to monitor these third parties' information security practices is limited, and these third parties may not have adequate information security measures in place. If the third-parties upon whom we rely on experience a security incident or other interruption, as they have in the past, we could experience adverse consequences. While we may be entitled to damages if our third-party service providers fail to satisfy their privacy or security-related obligations to us, any award may be insufficient to cover our damages, or we may be unable to recover such award. In addition, supply-chain attacks have increased in frequency and severity, and we cannot guarantee that third parties' infrastructure in our supply chain or our third-party partners' supply chains have not been compromised.

While we have implemented security measures designed to protect against security incidents, there can be no assurance that these measures will be effective. We take steps designed to detect, mitigate, and remediate vulnerabilities in our information systems (such as our hardware and/or software, including that of third parties upon which we rely). We may not, however, detect and remediate all such vulnerabilities including on a timely basis. Further, we may experience delays in developing and deploying remedial measures and patches designed to address identified vulnerabilities. Vulnerabilities could be exploited and result in a security incident.

Any of the previously identified or similar threats could cause a security incident or other interruption that could result in unauthorized, unlawful, or accidental acquisition, modification, destruction, loss, alteration, encryption, disclosure of, or access to our sensitive information or our information technology systems, or those of the third parties with whom we work. For example, we have been the target of phishing attempts in the past, and expect such attempts will continue in the future. A security incident or other interruption could disrupt our ability (and that of third parties with whom we work) to provide our products and services.

We may expend significant resources or modify our business activities, including our clinical trial activities, to try to protect against security incidents, and have in the past. Certain data privacy and security obligations have required us to implement and maintain specific security measures to protect our information technology systems and sensitive information.

Applicable data privacy and security obligations may require us to notify relevant stakeholders, including affected individuals, customers, regulators, and investors, of security incidents. Such disclosures are costly, and the disclosure or the failure to comply with such requirements could lead to adverse consequences. If we (or a third party with whom we work) experience a security incident or are perceived to have experienced a security incident, we may experience adverse consequences, such as government enforcement actions (for example, investigations, fines, penalties, audits, and inspections); additional reporting requirements and/or oversight; restrictions on processing sensitive information (including personal data); litigation (including class claims); indemnification obligations; negative publicity; reputational harm; monetary fund diversions; diversion of management attention; interruptions in our operations (including availability of data); financial loss; and other similar harms. Security incidents and attendant consequences

may prevent or cause customers to stop using our products, deter new customers from using our products, and negatively impact our ability to grow and operate our business.

Our contracts may not contain limitations of liability, and even where they do, there can be no assurance that limitations of liability in our contracts are sufficient to protect us from liabilities, damages, or claims related to our data privacy and security obligations. We cannot be sure that our insurance coverage will be adequate or sufficient to protect us from or to mitigate liabilities arising out of our privacy and security practices, that such coverage will continue to be available on commercially reasonable terms or at all, or that such coverage will pay future claims.

In addition to experiencing a security incident, third parties may gather, collect, or infer sensitive information about us from public sources, data brokers, or other means that reveals competitively sensitive details about our organization and could be used to undermine our competitive advantage or market position. Additionally, sensitive information of the Company or our customers could be leaked, disclosed, or revealed as a result of or in connection with our employees', personnel's, or vendors' use of generative AI technologies.

***We may be liable if the FDA, competent authorities of the EEA countries, or another regulatory agency concludes that we have engaged in the off-label promotion of our products.***

Our promotional materials and training methods must comply with FDA and other applicable laws and regulations, including the prohibition of the promotion of the off-label use of our products. Healthcare providers may use our products off-label, as the FDA does not restrict or regulate a physician's choice of treatment within the practice of medicine. However, if the FDA, competent authorities of the EEA countries, or other foreign regulatory authorities determine that our promotional materials or training constitute promotion of an off-label use, it could request that we modify our training or promotional materials or subject us to regulatory or enforcement actions, including the issuance of an untitled letter, a warning letter, injunction, seizure, civil fine and criminal penalties. It is also possible that other federal, state or competent authorities of the EEA countries, or foreign enforcement authorities might take action if they consider our promotional or training materials to constitute promotion of an unapproved use, which could result in significant fines or penalties. Although we intend to train our marketing and direct sales force to not promote our products for uses outside of their cleared uses and our policy will be to refrain from statements that could be considered off-label promotion of our products, the FDA competent authorities of the EEA countries, or another regulatory agency could disagree and conclude that we have engaged in off-label promotion. In addition, the off-label use of our products may increase the risk of product liability claims. Product liability claims are expensive to defend and could result in substantial damage awards against us and harm our reputation.

International sales of medical devices are subject to foreign government regulations, which vary substantially from country to country. In order to market our products in other countries, we must obtain regulatory approvals or certifications and comply with extensive safety and quality regulations in other countries.

The advertising and promotion of our products in the EEA is subject to EEA countries' national laws implementing the AIMD and applying the Medical Device Regulation, Directive 2006/114/EC concerning misleading and comparative advertising, and Directive 2005/29/EC on unfair commercial practices, as well as other national legislation of individual EEA countries governing the advertising and promotion of medical devices. EEA countries' legislation may also restrict or impose limitations on our ability to advertise our products directly to the general public. In addition, voluntary EU and national industry Codes of Conduct provide guidelines on the advertising and promotion of our products to the general public and may impose limitations on our promotional activities with healthcare professionals, which could negatively impact our business, operating results and financial condition.

***Off-label use of our product by patients could lead to product liability claims and regulatory action.***

Eversense is currently labeled as non-adjunctive; however, once weekly fingerstick calibrations are still required. We have no control over whether patients adhere to labeling instructions and confirm blood glucose levels to ensure calibration with Eversense. If a patient fails to do so and has an adverse reaction to self-medication, the patient might make a claim against us. While we do not believe that, as a general matter, such a claim would have merit, the possibility of an adverse result to the manufacturer cannot be dismissed, and in any event, we could incur significant

defense costs. Also, if there should be widespread off-label use of our system by patients, and resulting adverse medical events, the FDA, competent authorities of the EEA countries or other foreign regulatory bodies might require us to implement additional measures to reduce off-label use, which could be costly or reduce adoption of Eversense.

***Legislative or regulatory healthcare reforms may make it more difficult and costly for us to obtain regulatory clearance, certification or approval of our products or otherwise impact our profitability.***

Recent political, economic and regulatory influences are subjecting the healthcare industry to fundamental changes. The sales of our products depend in part on the availability of coverage and reimbursement from third-party payors such as government health administration authorities, private health insurers, health maintenance organizations and other healthcare-related organizations. Both the federal and state governments in the United States continue to propose and pass new legislation and regulations designed to contain or reduce the cost of healthcare. This legislation and regulation may result in decreased reimbursement for medical devices, which may further exacerbate industry-wide pressure to reduce the prices charged for medical devices. This could harm our ability to market our products and generate sales.

On a global level, the regulatory environment is increasingly stringent and unpredictable. Many countries have introduced or expanded their existing regulation of medical devices or are planning to expand their existing regulation in the future. Regulatory requirements continue to differ significantly among countries. We expect this global regulatory environment will continue to evolve, which could impact the cost, the time needed to approve, and ultimately, our ability to maintain existing approvals or certifications or obtain future approvals or certifications for our products. For example, in the EU, on May 26, 2021, the EU Medical Device Regulation entered into application repealing and replacing both Directive 93/42/EEC concerning medical devices and Directive 90/385/EEC concerning active implantable medical devices. We affixed the CE Mark to the original 90-day Eversense CGM system in June 2016, which marked the first certification for the product to be sold within the European Economic Area ("EEA"). Subsequently, we affixed the CE Mark to the extended life Eversense XL CGM system in September 2017 which was sold in select markets in Europe and the Middle East and in January 2026 obtained CE Mark approval for Eversense 365 which is expected to launch in the European Territories by the second half of 2026. The changes to the regulatory system implemented in the EU by the Medical Device Regulation include stricter requirements for clinical evidence and pre-market assessment of safety and performance, new classifications to indicate risk levels, requirements for third party testing by Notified Bodies, tightened and streamlined quality management system assessment procedures and additional requirements for the quality management system, additional requirements for traceability of products and transparency as well as a refined responsibility of economic operators. We are also required to provide clinical data in the form of a clinical evaluation report. Fulfilment of the obligations imposed by the Medical Device Regulation may cause us to incur substantial costs. We may be unable to fulfill these obligations, or our Notified Body may consider that we have not adequately demonstrated compliance with our related obligations to merit a CE Certificate of Conformity on the basis of the Medical Device Regulation.

On May 26, 2021, the Medical Device Regulation entered into application in the EU. However, the MDR is not applicable in Great Britain (i.e. England, Wales and Scotland) but does apply in Northern Ireland. In Great Britain, medical devices are governed by the Medical Devices Regulations 2002 (SI 2002 No 618, as amended) (UK MDR 2002) which, currently retains a regulatory framework similar to the framework set out by the MDD. The UK's regulator, the Medicines & Healthcare products Regulatory Agency ("MHRA") introduced new regulations for medical devices. The first of the regulations, which strengthen post-market surveillance requirements came into force on June 16, 2025. Further updated regulations are scheduled to follow in and the course of 2026. Should the UK or Great Britain further diverge from the EU from a regulatory perspective, tariffs could be put into place in the future. We could therefore, both now and in the future, face significant additional expenses to operate our business, which could significantly and materially harm or delay our ability to generate revenue or achieve profitability of our business. Any further changes in international trade, tariff and import/export regulations as a result of Brexit or otherwise may impose unexpected duty costs or other non-tariff barriers on us. These developments, or the perception that any of them could occur, may significantly reduce global trade and, in particular, trade between the EU and the UK.

Regulations of the FDA and other regulatory agencies, including third country authorities and Notified Bodies, in and outside the U.S. impose extensive compliance and monitoring obligations on our business. These agencies review

our design and manufacturing practices, labeling, record keeping, manufacturers' required reports of adverse experiences and other information to identify potential problems with marketed medical devices. We are subject to unannounced device inspections by Notified Bodies, as well as other regulatory authorities overseeing the implementation and adherence of applicable regulations. These inspections may include our suppliers' facilities. In addition, the competent authorities of individual EEA countries have powers to suspend the marketing and use, or demand the recall, of unsafe or non-compliant devices. They also have the power to bring enforcement action against companies or individuals for breaches of the device rules. Non-compliance may also result in Notified Bodies revoking, suspending or varying any CE Certificate of Conformity that they have issued for a device or the manufacturer's quality system.

In addition, FDA and foreign regulations and guidance are often revised or reinterpreted by the FDA and comparable foreign regulatory authorities in ways that may significantly affect our business and our products. For example, in July 2024, Regulation (EU) 2024/1860 entered into application in the EU. The Regulation imposes new manufacturer obligations, including mandatory pre-notification of supply interruptions starting January 10, 2025. In addition, the Regulation introduces the gradual rollout of EUDAMED, the EU's central database for medical devices and diagnostics. Starting from May 28, 2026, the use of the first four modules will become mandatory - actor registration, UDI/Devices registration, notified bodies and certificates, and Market Surveillance. The evolving nature of the EU regulatory environment creates uncertainty, and additional amendments or guidance could further increase compliance burden or disrupt market access for certain products.

Any new regulations or revisions or reinterpretations of existing regulations may impose additional costs or lengthen review times of our products. Government shutdowns, reductions in force among FDA personnel, and funding shortages have and may result in significant delays. Delays in receipt of or failure to receive regulatory clearances or approvals for our products would harm our business, financial condition and operating results.

While a goal of healthcare reform is to expand coverage to more individuals, it also involves increased government price controls, additional regulatory mandates and other measures designed to constrain medical costs. For example, the PPACA was enacted in March 2010. The PPACA substantially changed the way healthcare is financed by both governmental and private insurers, encourages improvements in the quality of healthcare items and services and significantly impacts the medical device industries.

There have been executive, judicial and Congressional challenges and amendments to certain aspects of the PPACA. For example, on July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law, which narrowed access to PPACA marketplace exchange enrollment and declined to extend the PPACA enhanced advanced premium tax credits that expired at the end of 2025, which, among other provisions in the law, are anticipated to reduce the number of Americans with health insurance. The OBBBA also is expected to reduce Medicaid spending and enrollment by implementing work requirements for some beneficiaries, capping state-directed payments, reducing federal funding, and limiting provider taxes used to fund the program. Congress is considering proposed legislation intended to further reduce healthcare costs with alternatives to replace the expired PPACA subsidies. It is possible that the PPACA will be subject to judicial or Congressional challenges in the future. It is unclear how such challenges and the healthcare reform measures of the current administration will impact the PPACA and our business.

In addition, other legislative changes have been proposed and adopted since the PPACA was enacted. On August 2, 2011, the Budget Control Act of 2011 was signed into law, which, among other things, includes reductions to Medicare payments to providers of 2% per fiscal year, which went into effect on April 1, 2013 and, due to subsequent legislative amendments to the statute, will remain in effect through 2032 unless additional Congressional action is taken.

The current administration is pursuing policies to reduce regulations and expenditures across government agencies including at the Department of Health and Human Services, the FDA, CMS and related agencies. Such actions and policies may, among other things, significantly reduce U.S. medical device prices, potentially impacting manufacturers' global pricing strategies and profitability, while increasing their operational costs and compliance risks.

At this time, we cannot predict which, if any, additional healthcare reform proposals will be adopted, when they may be adopted or what impact they, or the PPACA, may have on our business and operations, and any of these impacts may be adverse on our operating results and financial condition.

**Risks Related to our Common Stock**

***Because our stock price has and will likely continue to be highly volatile, the market price of our common stock may be lower or more volatile than expected.***

Our stock price has been highly volatile. The stock market in general and the market for innovative, emerging medtech and biotechnology companies in particular have experienced volatility that has often been unrelated to the operating performance of particular companies. From January 1, 2025 through February 13, 2026, the trading price of our common stock has been as low as $5.25 per share and as high as $28.00 per share. This stock price volatility has been accompanied by significant variability in trading volume of our common stock in comparison to historical experience.

The volatility in our trading volumes has not necessarily correlated to the company's announcement of material developments and often appears unrelated to changes in actual or expected operating performance. Purchases or sales of large quantities of our stock, including the establishment and/or closing of significant short positions in our stock could have an unusual or adverse effect on our market price. Market fluctuations may also cause short sellers to periodically enter the market in the belief that we will have poor results in the future. Abnormal trading activity, including activity that is considered market manipulation, can lead to irrational and/or temporary movements in the price of our common stock, which, in turn, may increase its risk and volatility. We cannot predict the actions of market participants and, therefore, can offer no assurances that the market for our common stock will be stable or appreciate over time.

The market price of our common stock may also be influenced by many additional factors, including:

● analyst coverage, recommendations or changes in their estimates of our financial performance;

● our degree of success in transitioning commercial responsibility for Eversense back from Ascensia;

● future announcements about us or our competitors, including the results of technological innovations or new commercial products;

● announcement of operating results and other factors relating to the commercialization of our products;

● clinical trial and topline data results;

● depletion of our cash reserves;

● sale of equity securities or issuance of additional debt;

● announcement by us of significant strategic partnerships, capital commitments or acquisitions;

● changes in government regulations;

● impact of competitor successes;

● developments in our relationships with our collaboration partners;

● global market or financial developments;

● announcements relating to health care reform, legislation and reimbursement levels, including third-party payor coverage decisions;

● sales of substantial amounts of our stock by existing stockholders (including stock by insiders or 5% stockholders);

● regulatory approvals, certifications, timelines or other actions;

● litigation;

● public concern as to the safety of our products or recalls;

● the make-up of our shareholder base; and

● the other factors described in this Risk Factors section.

***The issuance of additional stock in connection with financings, acquisitions, investments, our equity incentive plans, or otherwise will dilute our existing stockholders.***

Our certificate of incorporation authorizes us to issue up to 70,000,000 shares of common stock and up to 5,000,000 shares of preferred stock with such rights and preferences as may be determined by our board of directors. Subject to compliance with applicable rules and regulations, we may issue our shares of common stock, including securities convertible into common stock, in connection with a financing, acquisition, investment, our equity incentive

plans or otherwise. This includes the issuance, from time to time, of non-statutory stock options exercisable for shares of our common stock and/or restricted stock units that may be settled in shares of our common stock pursuant to the Senseonics Holdings, Inc. 2023 Commercial Equity Plan. Any such issuance could result in substantial dilution to our existing stockholders and cause the trading price of our common stock to decline.

***PHC may have the ability exert substantial influence over us in a manner adverse to your interests.***

As of the date of this filing, PHC beneficially owns approximately 9.6% of our common stock. Additionally, although PHC's designee to the Company's board of directors resigned from our board in connection with the execution of the Master Asset Purchase Agreement on December 31, 2025, PHC continues to have the right to designate one individual to serve on our board of directors as outlined in their Investor Rights Agreement and that right will continue as long as PHC beneficially owns in excess of 5% of our outstanding common stock.

As a result, PHC may be able to significantly influence our decisions, including the election and removal of directors, any merger, consolidation, sale of all or substantially all of our assets, or other significant corporate transactions. PHC may have interests different from the interests of the other holders of our common stock.

***The rights that we have granted to Abbott in connection with a recent private placement may affect the likelihood of a change of control of Senseonics.***

In connection with an investment in Senseonics made by Abbott Laboratories in May 2025, we granted Abbott certain information rights regarding the clinical and regulatory development status and progress of our Gemini and Freedom development programs. We also granted Abbott preferential negotiation rights with respect to certain future strategic transactions, including a merger, acquisition or other transaction involving a change in control of Senseonics, the sale or disposition of a material portion of our consolidated assets, the sale, exclusive license or exclusive distribution arrangement involving any of our material intellectual property (including the Gemini product and/or the Freedom product), excluding certain distribution agreements with respect to any product in one or more jurisdictions outside of the United States. Although these rights are subject to certain conditions and limitations, the existence of these rights may, prior to their expiration, impact the likelihood that Abbott or other third parties may seek to explore an acquisition of us or pursue a distribution agreement with us with respect to future products. As a result, the existence of these rights could have an adverse effect on our stock price until the rights terminate.

***If our estimates relating to our critical accounting policies are based on assumptions or judgments that change or prove to be incorrect, our operating results could fall below expectations of financial analysts and investors, resulting in a decline in our stock price.***

The preparation of financial statements in conformity with U.S. GAAP requires our management to make estimates, assumptions and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets, liabilities, equity, revenue and expenses that are not readily apparent from other sources. Our operating results may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our operating results to fall below the expectations of financial analysts and investors, resulting in a decline in our stock price. Significant assumptions and estimates used in preparing our consolidated financial statements include those related to revenue recognition and variable consideration, reserves for inventory obsolescence and warranties, stock-based compensation, clinical accruals and income taxes.

***We do not intend to pay cash dividends in the foreseeable future.***

We have never declared or paid cash dividends on our capital stock. We currently intend to retain all available funds and any future earnings for use in the operation and expansion of our business and do not anticipate paying any cash dividends in the foreseeable future. In addition, pursuant to our debt agreements, we are precluded from paying any cash dividends. Accordingly, you may have to sell some or all of your shares of our common stock in order to generate

cash flow from your investment. You may not receive a gain on your investment when you sell shares and you may lose the entire amount of the investment.

***Provisions in our corporate charter documents and under Delaware law may prevent or frustrate attempts by our stockholders to change our management and hinder efforts to acquire a controlling interest in us, and the market price of our common stock may be lower as a result.***

There are provisions in our certificate of incorporation and bylaws that may make it difficult for a third party to acquire, or attempt to acquire, control of our company, even if a change of control was considered favorable by some or all of our stockholders. For example, our board of directors has the authority to issue up to 5,000,000 shares of preferred stock. The board of directors can fix the price, rights, preferences, privileges, and restrictions of the preferred stock without any further vote or action by our stockholders. The issuance of shares of preferred stock may delay or prevent a change of control transaction. As a result, the market price of our common stock and the voting and other rights of our stockholders may be adversely affected. An issuance of shares of preferred stock may result in the loss of voting control to other stockholders.

Our charter documents also contain other provisions that could have an anti-takeover effect, including:

● only one of our three classes of directors is elected each year;

● stockholders are not entitled to remove directors other than by a 66 2/3% vote and only for cause;

● stockholders are not permitted to take actions by written consent;

● stockholders are not permitted to call a special meeting of stockholders; and

● stockholders are required to give advance notice of their intention to nominate directors or submit proposals for consideration at stockholder meetings.

In addition, we are subject to the anti-takeover provisions of Section 203 of the Delaware General Corporation Law, which regulates corporate acquisitions by prohibiting Delaware corporations from engaging in specified business combinations with particular stockholders of those companies. These provisions could discourage potential acquisition proposals and could delay or prevent a change of control transaction. They could also have the effect of discouraging others from making tender offers for our common stock, including transactions that may be in your best interests. These provisions may also prevent changes in our management or limit the price that investors are willing to pay for our stock.

***Our amended and restated certificate of incorporation and amended and restated bylaws provide that the Court of Chancery of the State of Delaware and the federal district courts of the United States of America will be the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.***

Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware is the exclusive forum for the following types of actions or proceedings under Delaware statutory or common law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any derivative action or proceeding brought on our behalf;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any action asserting a claim for breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law, our amended and restated certificate of incorporation or our amended and restated bylaws; or

Our amended and restated bylaws further provide that the federal district courts of the United States of America will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act. We note that investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder.

These exclusive forum provisions may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other employees, which may discourage lawsuits against

us and our directors, officers and other employees. Any person or entity purchasing or otherwise acquiring any interest in any of our securities shall be deemed to have notice of and consented to these provisions. There is uncertainty as to whether a court would enforce such provisions, and the enforceability of similar choice of forum provisions in other companies' charter documents has been challenged in legal proceedings. While the Delaware courts have determined that such choice of forum provisions are facially valid, a stockholder may nevertheless seek to bring a claim in a venue other than those designated in the exclusive forum provisions, and there can be no assurance that such provisions will be enforced by a court in those other jurisdictions. If a court were to find these types of provisions to be inapplicable or unenforceable, and if a court were to find the exclusive forum provision in our amended and restated bylaws to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving the dispute in other jurisdictions, which could materially adversely affect our business.

***If we fail to maintain proper and effective internal controls, our ability to produce accurate financial statements on a timely basis could be impaired***.

We are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the rules and regulations of the Nasdaq Global Select Market. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting and perform system and process evaluation and testing of our internal control over financial reporting to allow management to report on the effectiveness of our internal control over financial reporting. This requires that we incur substantial additional professional fees and internal costs to expand our accounting and finance functions and that we expend significant management efforts.

During the evaluation and testing process of our internal controls, if we identify one or more material weaknesses in our internal control over financial reporting that exists at the reporting date, we will be unable to assert that our internal control over financial reporting is effective. We have no material weaknesses in our internal control over financial reporting at December 31, 2025. While we have established certain procedures and controls over our financial reporting processes, we cannot assure you that these efforts will prevent future material weaknesses or restatements of our financial statements. For future reporting periods, our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our controls are documented, designed or operating. We may not be able to remediate any future material weaknesses, or to complete our evaluation, testing and any required remediation in a timely fashion.

Any failure to maintain effective internal control over financial reporting could severely inhibit our ability to accurately report our financial condition or results of operations. If we are unable to conclude that our internal control over financial reporting is effective, or if our independent registered public accounting firm determines we have a material weakness or significant deficiency in our internal control over financial reporting, we could lose investor confidence in the accuracy and completeness of our financial reports, the market price of our common stock could decline, and we could be subject to sanctions or investigations by Nasdaq, the SEC or other regulatory authorities. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain other effective control systems required of public companies, could also restrict our future access to the capital markets.

***Our effective tax rate may fluctuate, and we may incur obligations in tax jurisdictions in excess of accrued amounts.***

We are subject to taxation at the U.S. federal level and in numerous U.S. states. As a result, our effective tax rate is derived from a combination of applicable tax rates in the various places that we operate. In preparing our financial statements, we estimate the amount of tax that will become payable in each of such jurisdictions. Nevertheless, our effective income tax rate may be different than experienced in the past due to numerous factors, including passage of the newly enacted federal or state income tax laws, changes in the mix of our profitability from state to state, the results of examinations and audits of our tax filings, our inability to secure or sustain acceptable agreements with tax authorities, changes in accounting for income taxes and changes in tax laws. Any of these factors could cause us to experience an effective tax rate significantly different from previous periods or our current expectations and may result in tax obligations in excess of amounts accrued in our financial statements.

***We may be unable to utilize our tax attribute carryforwards to reduce our income taxes.***

At December 31, 2025, we had gross federal and state net operating loss ("NOL") carryforwards of $791.3 million and $134.9 million, respectively and research and experimental credit carryforwards of $18.1 million. Federal NOL carryforwards in the amount of $190.1 million will expire in varying amounts through 2037 and tax credits of $18.1 million will expire in varying amounts through 2045. These net operating loss carryforwards and credits could expire unused and be unavailable to offset future income tax liabilities. Federal NOL carryforwards generated in tax years beginning after December 31, 2017 may be carried forward indefinitely, but limited to offset 80% of our taxable income annually. State NOLs have various expiration dates beginning in 2032. Under Section 382/383 of the Internal Revenue Code of 1986, as amended, or the Code, and corresponding provisions of state law, if a corporation undergoes an "ownership change," which generally occurs if the percentage of the corporation's stock owned by 5% stockholders increases by more than 50% over a three-year period, the corporation's ability to use its pre-change NOL carryforwards and other pre-change tax attributes to offset its post-change income may be limited. We have not determined if we have experienced Section 382/383 ownership changes and if a portion of our NOL and tax credit carryforwards are subject to an annual limitation under Section 382/383. In addition, we may experience ownership changes in the future as a result of subsequent shifts in our stock ownership, which may be outside of our control. If we determine that an ownership change has occurred and our ability to use our historical NOL and tax credit carryforwards is significantly limited, it would harm our future operating results by effectively increasing our future tax obligations.

***Changes in tax laws or regulations that are applied adversely to us or our customers may have a material adverse effect on our business, cash flow, financial condition, or results of operations***.

New tax laws, statutes, rules, regulations, or ordinances could be enacted at any time. Further, existing tax laws, statutes, rules, regulations, or ordinances could be interpreted differently, changed, repealed, or modified at any time. Any such enactment, interpretation, change, repeal, or modification could adversely affect us, possibly with retroactive effect. Legislation commonly referred to as the One Big Beautiful Bill Act enacted in 2025 (the "OBBBA"), the Inflation Reduction Act enacted in 2022, the Coronavirus Aid, Relief, and Economic Security Act enacted in 2020, and the Tax Cuts and Jobs Act enacted in 2017 made many significant changes to the U.S. Internal Revenue Code of 1986, as amended. Future guidance from the Internal Revenue Service and other tax authorities with respect to any legislation may affect us, and certain aspects of such legislation could be repealed or modified in future legislation or sunset in future years. Changes in or interpretations under the OBBBA, the Tax Cuts and Jobs Act, the IRA, or other tax legislation, or the enactment of new tax legislation, could increase our future tax liability, which could in turn adversely impact our business and future profitability. We are unable to predict what changes to the tax laws of the U.S. and other jurisdictions may be proposed or enacted in the future or what effect such changes would have on our business. Any of these or similar developments or changes to tax laws or rulings (which changes may have retroactive application) could have a material impact on the value of our deferred tax assets, result in significant one-time charges, and increase our future tax expenses.

***Our bank deposits in excess of the Federal Deposit Insurance Corporation ("FDIC") insurance limits could be impacted if the underlying financial institutions fail.***

Our cash and cash equivalents are held in accounts at US Bank Corp, JPMorgan Chase Bank, Truist Bank, and Silicon Valley Bank and consist of cash in our operating accounts and cash invested in money market funds. At any point in time, the funds in our operating accounts may exceed the FDIC insurance limits. While we monitor the cash balances in our operating accounts and adjust the cash balances as appropriate, these cash balances could be impacted if the underlying financial institutions fail. To date, we have not experienced significant losses or lack of access to cash in our operating accounts or our invested cash or cash equivalents; however, we can provide no assurances that access to our operating cash or invested cash and cash equivalents will not be impacted by adverse conditions in the financial markets.

**Item 1B. Unresolved Staff Comments**

None.

**Item 1C. Cybersecurity**

***Risk management and strategy***

We have implemented and maintain various information security processes designed to identify, assess and manage material risks from cybersecurity threats to our critical computer networks, third party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, and confidential information that is proprietary, strategic or competitive in nature (collectively, "Information Systems and Data").

Our information security function is led by our head of IT and supported by our executive team (specifically, our CEO, COO, and CFO), our engineering department, and third-party service providers, and helps identify, assess and manage the Company's cybersecurity threats and risks. This group identifies and assesses risks from cybersecurity threats by monitoring and evaluating our threat environment using various methods including, for example: manual and automated tools, conducting scans of the threat environment, subscribing to reports and services that identify cybersecurity threats, analyzing reports of threats and actors and evaluating threats reported to us, external audits, third party testing and vulnerability assessments, and tabletop incident response exercises.

Depending on the environment, we implement and maintain various technical, physical, and organizational measures, processes, standards and policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including, for example: incident detection and response processes; disaster recovery plan; encryption of certain data; network security controls; segregation of certain data; access and physical security controls; asset management; tracking and disposal; systems monitoring; a vendor risk management program; employee training; penetration testing by third parties; and maintaining cybersecurity insurance.

Our assessment and management of material risks from cybersecurity threats are integrated into the Company's overall risk management processes. For example, our executive team evaluates material risks from cybersecurity threats against our overall business objectives and reports to the audit committee of the board of directors, which evaluates our overall enterprise risk.

We use third-party service providers to assist us from time to time to identify, assess, and manage material risks from cybersecurity threats, including for example professional services firms, managed cybersecurity services providers, penetration testing firms, dark web monitoring services and cybersecurity software providers.

We use third-party service providers to perform a variety of functions throughout our business, such as application providers, hosting companies, contract manufacturers and distributors. We have vendor management processes designed to manage cybersecurity risks associated with our use of certain of these providers. The processes in place include a risk assessment for certain vendors and the imposition of certain contractual obligations related to cybersecurity on certain providers. Depending on the nature of the services provided, the sensitivity of the Information Systems and Data at issue, and the identity of the provider, our vendor management processes involve different levels of assessment designed to help identify cybersecurity risks associated with these providers.

For a description of the risks from cybersecurity threats that may materially affect the Company and how they may do so, see our risk factors under Part 1. Item 1A. Risk Factors in this Annual Report, including the risk factor entitled "*If our information technology systems or those third parties with whom we work, for our data, are or were compromised, we could experience adverse consequences resulting from such compromise, including but not limited to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; loss of customers or sales; and other adverse consequences.*"

***Governance***

Our board of directors addresses the Company's cybersecurity risk management as part of its general oversight function. The board of directors' audit committee is responsible for overseeing the Company's cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats.

Our cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, including our executive team and head of IT who has over twenty-five years of IT management experience.

Management is responsible for hiring appropriate personnel and the head of IT is responsible for communicating key priorities to relevant personnel. The executive team works with the head of IT to help prepare for cybersecurity incidents, approve cybersecurity processes, and review security assessments and other security-related reports.

Our cybersecurity incident response processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including the executive team, legal and others. The executive team works with the head of IT and the Company's incident response team to help the Company mitigate and remediate cybersecurity incidents of which they are notified. In addition, the Company's incident response processes include reporting to the audit committee of the board of directors for certain cybersecurity incidents.

The audit committee receives regular reports from the IT function concerning the Company's significant cybersecurity threats and risk and the processes the Company has implemented to address them. The audit committee also receives various reports, summaries or presentations related to cybersecurity threats, risk and mitigation.

**Item 2. Properties**

Our principal offices occupy approximately 33,000 square feet of research and office space for our corporate headquarters in Germantown, Maryland pursuant to a lease that expires in 2033. We believe that our current facilities are suitable and adequate to meet our current needs. We intend to add new facilities or expand existing facilities as we add employees, and we believe that suitable additional or substitute space will be available as needed to accommodate any such expansion of our operations.

**Item 3. Legal Proceedings** 

From time to time, we are subject to litigation and claims arising in the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Legal proceedings, including litigation, government investigations and enforcement actions could result in material costs, occupy significant management resources and entail civil and criminal penalties.

In May 2024, the Company received notice and accepted service of a civil complaint that had been filed in the Eastern District of Texas and styled Cellspin Soft, Inc. vs. Senseonics Holdings, Inc., and Ascensia Diabetes Care Holdings AG Case No. 2:24-cv 263. The case was filed by a non-practicing entity alleging patent infringement of three patents. The validity of all three of these patents currently is being challenged in Inter Partes Review proceedings at the U.S. Patent and Trademark Office by another party, TikTok Inc., (the "TikTok IPR") and on September 30, 2024, the Patent Trial and Appeal Board instituted a review with respect to each of the asserted claims in these three patents. Together with LifeScan, Inc. and Ascensia, on October 30, 2024, we filed a joint motion to join the TikTok IPR as well as our own independent, similar *Inter Partes Review* petitions challenging these patents. On February 5, 2025, the court issued an order staying the proceedings in the Eastern District of Texas pending resolution of the Inter Partes Reviews. On June 5, 2025, prior to the imminent TikTok IPR final hearings, the Acting Director of the U.S. Patent and Trademark Office ordered a sua sponte review by the Acting Director of whether the TikTok IPR could proceed based on certain novel issues relating to TikTok's Chinese ownership status. On January 23, 2026, the Director of the U.S. Patent and Trademark Office issued and order stating that, in view of a recent order by the Patent Trial and Appeal Board and TikTok Inc.'s announced joint venture (and the referenced ownership attributes thereof), the parties were authorized to file an additional brief addressing whether the evidence Cellspin Soft, Inc. submitted is sufficient to put TikTok Inc.'s real party in interest identification into dispute, and what effect, if any, the announced joint venture has on the TikTok IPR proceedings. TikTok, Inc. and Cellspin Soft, Inc. filed additional briefs on February 2, 2026. To date, no decision has been rendered on by the Director whether the TikTok IPR can proceed. The Inter Partes Review proceedings are all stayed pending the outcome of the sua sponte Director's review. The timing of this review remains uncertain. Were the

TikTok IPR terminated, it is our belief that our independent Inter Partes Review should continue because the issues raised in the challenge to the TikTok IPR are not relevant to our filings. Should any asserted claim in the three patents survive the invalidity challenge in the Inter Partes Review proceedings, the Company intends to vigorously defend the lawsuit.

Except as described above, we are not currently a party to any material legal proceedings, and we are not aware of any pending or threatened legal proceeding against us that we believe could have a material adverse effect on our business, operating results or financial condition.

**Item 4. Mine Safety Disclosures**

Not applicable.

**PART II**

**Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities**

**Market Information for Common Stock** 

Our common stock is listed on the Nasdaq Global Select Market under the symbol "SENS."

**Dividend Policy**

We have never declared or paid any dividends on our common stock. We anticipate that we will retain all of our future earnings, if any, for use in the operation and expansion of our business and do not anticipate paying cash dividends in the foreseeable future. Our ability to pay dividends on shares of our common stock is further limited by restrictions on our ability to pay dividends or make distributions under the terms of the agreements governing our indebtedness and may be limited by future similar agreements.

**Stockholders**

As of February 20, 2026, we had approximately 98 active holders of record of our common stock. The number of beneficial owners of our Common Stock is substantially greater than the number of record holders because a large portion of our Common Stock is held of record in broker "street names" for the benefit of individual investors.

**Recent Sales of Unregistered Securities**

None.

**Item 6. [Reserved]**

**Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes in Part II, Item 8 of this Annual Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Annual Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section of this Annual Report for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.*

Unless otherwise indicated, all information in this Annual Report on Form 10-K gives effect to a 1-for-20 reverse stock split of our common stock that became effective on October 17, 2025 (the "Reverse Stock Split"), and all references to historical share and per share amounts give effect to the Reverse Stock Split.

**Overview**

We are a medical technology company focused on the design, development and commercialization of glucose monitoring products designed to transform lives in the global diabetes community with differentiated, long-term implantable glucose management technology. Our implantable CGM systems, including the Eversense E3 system ("Eversense E3") and the Eversense 365 system ("Eversense 365" and, together with Eversense E3, "Eversense" or the "Eversense Systems"), are designed to continually and accurately measure glucose levels in people with diabetes via an under-the-skin sensor, a removable and rechargeable smart transmitter, and a convenient app for real-time diabetes monitoring and management for a period of up to six months in the case of Eversense E3 and up to twelve months in the case of Eversense 365, as compared to seven to 15 days for non-implantable CGM systems. As described in more detail below, in August 2020, we entered into a collaboration and commercialization agreement ("Existing Commercialization Agreement"), with Ascensia Diabetes Care Holdings AG ("Ascensia") pursuant to which we granted Ascensia the exclusive right to distribute Eversense worldwide, with certain initial exceptions. In February 2022, Eversense E3, a 180 day CGM system, was approved by the FDA and Ascensia began commercializing Eversense E3 in the United States in the second quarter of 2022. In June 2022, we affixed the CE Mark to the extended life Eversense E3 system and Ascensia began commercialization in select markets in Europe during the third quarter of 2022. In September 2024, Eversense 365, a 365-day extended life CGM system, was approved by the FDA and Ascensia began commercializing Eversense 365 in the United States in the fourth quarter of 2024. In January 2026, we took over full commercial responsibility for Eversense 365 in the United States and began marketing and distributing the product with our own sales force.

On September 3, 2025 the Company and Ascensia signed a memorandum of understanding ("MOU") related to the transfer of commercial operations relating to Eversense from Ascensia back to the Company. On December 31, 2025, the parties entered into a master asset purchase agreement (the "Master Asset Purchase Agreement") formalizing this transfer and subsequently entered into an Amended and Restated Collaboration and Commercialization Agreement (the "A&R Commercialization Agreement"), which terminated Ascensia's right to market Eversense products in the U.S. and rendered Ascensia's right to market Eversense products in Italy, Germany, Spain and Sweden (the "European Territories") non-exclusive. Pursuant to the A&R Commercialization Agreement, effective January 1, 2026, we are entitled to 100% of the revenues derived from the sale of Eversense products in the European Territories. We expect to enter into a series of asset purchase agreements to acquire certain additional assets related to Ascensia's commercial Eversense activities in the European Territories on or before March 31, 2026.

Our net revenues are derived from sales of the Eversense CGM system which includes the Eversense Sensor Pack containing the sensor, insertion tool, and adhesive patches, the Eversense Smart Transmitter Pack containing the transmitter and charger and in some cases the procedure revenue associated with insertions and removals.

We primarily sell directly to our network of distributors and strategic fulfillment partners, who provide the Eversense system to healthcare providers and patients through a prescribed request and invoice insurance payors for reimbursement. In addition, we sell our product through a consignment model through arrangements with our network of healthcare professionals. Sales of the Eversense system are widely dependent on the ability of patients to obtain coverage and adequate reimbursement from third-party payors or government agencies. We leverage and target regions where we have coverage decisions for patient device use and provider insertion and removal procedure payment. We have reached approximately 300 million covered lives in the United States through positive insurance payor coverage decisions. In June 2023, we received positive payor coverage decision from UnitedHealthcare, the largest healthcare insurance company in the United States that effective July 1, 2023, Eversense E3 would be covered. On August 3, 2020, the Center for Medicare and Medicaid Services ("CMS") released its Calendar Year 2021 Medicare Physician Fee Schedule Proposed Rule that announces proposed policy changes for Medicare payments, including the proposed establishment of

national payment amounts for the three CPT© Category III codes describing the insertion (CPT 0446T), removal (0447T), and removal and insertion (0048T) of an implantable interstitial glucose sensor, which describes our Eversense Systems, as a medical benefit, rather than as part of the Durable Medical Equipment channel that includes other CGMs. In December 2021, CMS released its Calendar Year 2022 Medicare Physician Fee Schedule that updated bundled payments for the device cost and procedure fees. In November 2022, CMS released its Calendar Year 2023 Medicare Physician Fee Schedule Proposed Rule that updates the payment amounts for the three CPT© III codes to account for the longer 6-month sensor. In February 2024, we announced that Medicare coverage was expanded for Eversense E3 to include all people with diabetes using insulin and non-insulin users who have a history of problematic hypoglycemia providing access to millions of Medicare patients. All of the Medicare administrative contractors expansions became effective in 2024. In April 2025, CMS updated the payment amounts in the Physician Fee Schedule to account for the longer duration Eversense 365 for all eligible Medicare beneficiaries. We have been working with payors to transition their policies to Eversense 365 and have confirmed immediate coverage policy transition from select payors.

In February 2020, we announced that the FDA approved a subgroup of PROMISE trial participants to continue for a total of 365 days to gather feasibility data on the safety and accuracy of a 365-day sensor. This sub-set of 30 participants was left undisturbed for 365 days with the goal of measuring accuracy and longevity over the full 365 days. Information gathered from this sub-set and additional development efforts provided us the confidence to start the ENHANCE pivotal study of Eversense 365. The ENHANCE pivotal study of Eversense 365 completed enrollment, the last patient of the adult cohort completed the study, and we completed our analysis of the data. Based on this analysis, we determined to advance to the next generation sensor platform as the underlying technology used in the 365-day and future products. In May 2024, this data supported an FDA 510(k) submission for a new product with a 365-day duration and once per week calibration. The 510(k) submission was approved by the FDA on September 17, 2024 and Eversense 365 was cleared for sale in the United States.

We are in the early commercialization stages of the Eversense brand and are focused on driving awareness of our CGM system amongst people with diabetes and their healthcare providers. In both the United States and our overseas markets, we have entered into strategic partnerships and distribution agreements that allow third party collaborators with direct sales forces and established distribution systems to market and promote Senseonics' various Eversense Systems and future generation products, including our Gemini product variation to allow for a 2-in-1 glucose monitoring system combining the functionality of CGM and flash glucose monitoring, in an implantable sensor with battery that may be utilized with a smart transmitter to get continuous glucose readings and alerts, or be utilized through a swipe over the sensor with a smart phone to get on-demand glucose reading without a smart transmitter and our Freedom product variation which would include Bluetooth in the sensor eliminating the on-body component.

**United States Development and Commercialization of Eversense**

In 2016, we completed our PRECISE II pivotal clinical trial in the United States. This trial, which was fully enrolled with 90 subjects, was conducted at eight sites in the United States. In the trial, we measured the accuracy of the Eversense 90 system ("Eversense 90") measurements through 90 days after insertion. We also assessed safety through 90 days after insertion or through sensor removal. In the trial, we observed a mean absolute relative difference ("MARD"), of 8.5% utilizing two calibration points for Eversense 90 across the 40-400 mg/dL range when compared to YSI blood reference values during the 90-day continuous wear period. Based on the data from this trial, in October 2016 we submitted a pre-market approval ("PMA") application to the FDA to market Eversense 90 in the United States for 90-day use. In June 2018, we received PMA approval from the FDA for the Eversense 90 system. In July 2018, we began distributing the 90-day Eversense 90 system directly in the United States through our own direct sales and marketing organization. We have received Category III CPT codes for the insertion and removal of the Eversense 90 sensor.

In December 2018, we initiated the PROMISE pivotal clinical trial to evaluate the safety and accuracy of Eversense 90 for a period of up to six months in the United States and on September 30, 2019, we completed enrollment of the PROMISE trial. In the trial, we observed performance matching that of the then current Eversense 90 available in the United States, with a MARD of 8.5%. This result was achieved with reduced calibration, down to one per day, while also doubling the sensor life to six months. Following the results of the PROMISE trial, on September 30, 2020, a PMA supplement application to extend the wearable life of Eversense 90 to six months was submitted to the FDA. In February 2022, the extended life Eversense E3 was approved by the FDA.

On February 26, 2020, we announced that the FDA approved a subgroup of PROMISE trial participants to continue for a total of 365 days to gather feasibility data on the safety and accuracy of a 365-day sensor. This sub-set of 30 participants was left undisturbed for 365 days with the goal of measuring accuracy and longevity over the full 365 days. Information gathered from this sub-set and additional development efforts provided us with the confidence to start the Pivotal study for Eversense 365.

In April 2020, we announced that we received an extension to our CE Certificate of Conformity in the EEA such that the Eversense XL is no longer contraindicated for MRI, which means the sensor does not need to be removed from under the skin during MRI scanning. We had previously obtained this indication for Eversense 90 in the United States in 2019. This MRI approval is a first for the CGM category, as all other sensors are required to be removed during an MRI scan.

On August 9, 2020, we entered into the Commercialization Agreement pursuant to which we granted Ascensia the exclusive right to distribute Eversense 90 and Eversense E3 worldwide, with certain initial exceptions. Pursuant to the Commercialization Agreement, in the United States, Ascensia began providing sales support for the Eversense 90 product on October 1, 2020 and Ascensia ramped up sales activities and assumed commercial responsibilities for Eversense 90 during the second quarter of 2021.

On September 3, 2025, the Company and Ascensia signed the MOU related to the transfer of commercial operations relating to Eversense from Ascensia back to the Company, including the proposed termination, orderly unwinding of, and smooth transition of the commercial relationship between the Company and Ascensia. On December 31, 2025, the Company and Ascensia entered into the Master Asset Purchase Agreement, pursuant to which, among other things, the Company agreed to acquire Ascensia's right, title and interest in and to certain assets related to the marketing, selling and distribution of Eversense in the United States (such assets, the "U.S. Purchased Assets"). Pursuant to the terms of the Master Asset Purchase Agreement, the Company agreed to assume certain liabilities and obligations associated with the U.S. Purchased Assets (the "U.S. Assumed Liabilities" and together with the U.S. Purchased Assets, the "U.S. Asset Purchase"), including, but not limited to, certain liabilities under the contracts transferred to the Company under the Master Asset Purchase Agreement, liabilities arising out of the use or ownership of the transferred assets after the closing, and liabilities and obligations arising from certain employees who were offered employment with Senseonics Inc. pursuant to new employment letter agreements. The U.S. Asset Purchase closed on January 1, 2026 (the "U.S. Closing").

In connection with the execution of the Master Asset Purchase Agreement, the Company and Ascensia also entered into the A&R Commercialization Agreement on December 31, 2025, which amended and restated the Existing Collaboration Agreement. The A&R Commercialization Agreement terminated Ascensia's right to market Eversense products in the U.S. Following the U.S. Closing, Ascensia has no further rights to revenues from the sale of Eversense products in the U.S.

In February 2022, we received approval from the FDA for Eversense E3. The approval for our third-generation sensor, with proprietary sacrificial boronic acid ("SBA") technology doubles the sensor life to six months with MARD of 8.5%. Ascensia began commercializing Eversense E3 in the United States during the second quarter of 2022.

The ENHANCE clinical study was initiated as a pivotal study with the purpose of gathering additional clinical data to support an integrated continuous glucose monitoring ("iCGM") submission for Eversense E3 using the SBA technology. In March 2022, we extended the ongoing ENHANCE clinical study to evaluate the safety and accuracy of Eversense 365 for a period of up to one year in the United States. In September 2022, we completed enrollment of the ENHANCE study and the last patient of the adult cohort completed the study in the third quarter of 2023. In November 2022, we submitted and in the first quarter of 2023 we received approval of an investigational device exemption ("IDE") for the enrollment of a pediatric cohort in the ENHANCE study. In 2023 the data gathered in the ENHANCE study supported the iCGM submission and in April 2024, Eversense 365 was authorized to be marketed as an iCGM through the FDA's De Novo pathway, by establishing the special controls that will serve as a predicate device for 510(k) submissions in the future. Based on the analysis of the ENHANCE Pivotal study data, the decision was made to advance to the next generation sensor platform as the underlying technology used in the 365-day and future products. In May 2024, this data supported an FDA 510(k) submission for a new product with a 365-day duration and once per week

calibration. The 510(k) submission was approved by the FDA on September 17, 2024 and Eversense 365 product was cleared for sale in the United States. Ascensia began commercializing Eversense 365 in the United States during the fourth quarter of 2024.

In an effort to accelerate commercialization efforts and address challenges to Eversense adoption, in April 2024 and July 2024, we established new legal entities, Eon Care Services, LLC and Eon Management Services, LLC, (collectively "Eon Care PCs"), which were formed as wholly owned subsidiaries of Senseonics, Incorporated. In November 2024, Eon Management Services, LLC entered into the Administrative Agreement with the Eon Care PCs, which are consolidated as VIEs. The wholly owned entities and Eon Care PCs (collectively, "Eon Care") were established to support patient access to the Eversense systems by providing convenient Eversense insertion and training services. We fully completed the transition of our network of inserters from the Nurse Practitioner Group to Eon Care in the second quarter of 2025, and we experienced an increase in the number of insertions through Eon Care during the second and third quarters. Once we build out and establish the Eon Care network, we expect established CPT codes associated with Eversense insertions to enable a self-sustaining economic model for this initiative in the future.

We have also sought to complement commercialization efforts by establishing a consignment program, whereby we sell the Eversense system and related components and supplies through a network of healthcare professionals, and supporting certain commercial programs such as direct to consumer ("DTC") spending, certain key account activities, and market access support. We are determined to increase investment in supporting DTC spending, which we believe correlates with higher awareness and adoption of Eversense. Although the rate of Eversense adoption and lead generation has increased following these initiatives, as well as the regulatory approval of Eversense 365, we continue to work on ways to accelerate commercialization and adoption of our product.

In July 2024, we began first-in-human testing for the Gemini product. The next-generation Gemini product utilizes a fully implantable self-powering system that includes a flash glucose monitor with no on-body component for people with type 2 diabetes and traditional CGM with an on-body component for people with type 1 diabetes. The Gemini product is built on the 365-day sensor platform and the clinical and regulatory work will be focused on demonstrating the battery integration and functionality rather than the sensor life. Data gathered from this first-in-human testing was utilized for an IDE submission that was approved by the FDA in December 2025 which allowed us to begin enrolling patients in the Gemini pivotal study.

 **European Commercialization of Eversense**

In September 2017, we affixed the CE Mark for Eversense XL which permits the product to be sold freely in any part of the EEA. Eversense XL is indicated for a sensor life of up to 180 days. Eversense XL began commercialization in Europe in the fourth quarter of 2017. All such commercialization and marketing activities remain subject to applicable government approvals.

In June 2022, we affixed the CE Mark to Eversense E3, and Ascensia began commercialization in European markets during the second half of 2022.

In February 2025, we submitted an application for the conformity assessment of Eversense 365 to our Notified Body for certification. The submission was prepared in compliance with the EU medical device regulation. In January 2026, the Company obtained CE Mark approval for Eversense 365 and expects to launch Eversense 365 in the European Territories by the second half of 2026.

The A&R Commercialization Agreement rendered Ascensia's right to market Eversense products in the European Territories non-exclusive. Ascensia agreed to continue to sell and market the Eversense product in Europe to support the orderly transition of the business pending the closing of the European Asset Purchases and to allow Senseonics to transfer its local tender contracts. These rights and obligations apply from January 1, 2026 until the later of (i) January 1, 2027, (ii) the transfer of all local tender contracts, or (iii) the wind down of certain other commercial activities. Pursuant to the A&R Commercialization Agreement, effective January 1, 2026, the Company is entitled to 100% of the revenues derived from the sale of Eversense products in the European Territories. Senseonics will pay for certain transition services, and certain other costs, to maintain and achieve the orderly transition of the commercial

operations in the European Territories. In connection with the transfer of commercial operations relating to Eversense from Ascensia back to the Company, the Company reassessed its remaining performance obligations under its arrangement with Ascensia and adjusted the related contract assets and contract liabilities in accordance with ASC 606 based on the satisfaction (or non-satisfaction) of performance obligations as of the termination date.

**Critical Accounting Estimates**

The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States.

The preparation of our consolidated financial statements requires us to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities and equity and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates, particularly estimates relating to accounting for variable consideration related to revenue, inventory obsolescence and embedded derivatives, have a material impact on our financial statements and are discussed in detail throughout our analysis of the results of operations discussed below. We did not make any material changes to these assumptions for the year ended December 31, 2025. We do not expect any material changes to the underlying assumptions during the year ending December 31, 2026.

We base our estimates on historical experience and various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets, liabilities and equity that are not readily apparent from other sources. Actual results and outcomes could differ from these estimates and assumptions.

***Revenue***

A significant portion of our product revenue has historically been generated from sales of the Eversense system and related components and supplies to Ascensia, through the Commercialization Agreement, who then resells the products to health care providers and patients.

Revenue from product sales to Ascensia is recognized at a point in time when Ascensia obtains control of our product based upon the delivery terms as defined in the contract at an amount that reflects the consideration which we expect to receive in exchange for the product. Our contract with Ascensia contains performance obligations, mostly for the supply of goods, and are typically satisfied upon transfer of control of the product and does not include the right to return unless there is a product issue, in which case we may provide replacement product. Product conformity guarantees do not create additional performance obligations and are accounted for as warranty obligations in accordance with guarantee and loss contingency accounting guidance.

The consideration we expect to receive includes estimates of variable consideration for which reserves are established that is primarily the result of variable consideration such as patient assistance program rebates, prompt-pay discounts, tier-volume price discounts and for the Commercialization Agreement, revenue share. Variable consideration, such as rebates and prompt-pay incentives, are treated as a reduction in revenue and variable considerations, such as revenue share, is treated as an addition in revenue when the product sale is recognized. The amount of variable consideration that is included in the transaction price may be constrained and is included in revenue only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period, when the uncertainty associated with the variable consideration is subsequently resolved. Estimating variable consideration and the related constraint requires the use of significant management judgment. Depending on the variable consideration, we develop estimates for the expected value based on the terms of the agreements, historical data, geographic mix, reimbursement rates, and market conditions. Variances in the consideration recognized is partially mitigated by minimum price provisions for certain purchases under the contract.

***Inventory Obsolescence***

Inventory is valued at the lower of cost or net realizable value. Cost is determined using the standard cost method that approximates first in, first out. We record an adjustment to reduce the value of inventory for items that are potentially obsolete, where the standard costs require adjustment to the net realizable value, and are in excess of future demand taking into consideration current sales orders, timing of new product launches, market conditions, and remaining shelf life. Our sensor manufacturing process can span several months, involves various contract manufacturers and includes raw components with long lead times, often resulting in significant work-in-progress inventory. However, expiry does not commence until the chemistry is applied to the sensor. We are able to isolate pre-chemistry sensor inventory in progress from post-chemistry sensor inventory and finished goods to assess against demand forecasts and customer dating requirements for potential excess or obsolete inventory. Our estimates are based on information known at the time and include factors such as anticipated future usage and sales, potential for external unfavorable conditions such as import holds or quality issues, and planned product upgrades.

However, if actual product conditions differ from our assumptions, additional inventory adjustments that would increase cost of sales could be required.

**Results of Operations**

***Comparison of the Years Ended December 31, 2025 and 2024***

The following table sets forth our results of operations for the years ended December 31, 2025 and 2024.

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| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **Period Change** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Revenue, net | $17084 | $3973 | $13111 |
| Revenue, net - related parties | 18173 | 18499 | (326) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 35257 | 22472 | 12785 |
| Cost of sales | 19494 | 21939 | (2445) |
| Gross profit | 15763 | 533 | 15230 |
| Expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | 31592 | 41144 | (9552) |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 52508 | 34231 | 18277 |
| Operating loss | (68337) | (74842) | 6505 |
| Other income (expense), net: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 4198 | 4502 | (304) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (4951) | (8437) | 3486 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on change in fair value of derivatives |  | 102 | (102) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (expense) income | (23) | 59 | (82) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (776) | (3774) | 2998 |
| Net Loss | $(69113) | $(78616) | $9503 |

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***Components of Results of Operations***

*Total revenue*

Our total net revenue increased to $35.3 million for the twelve months ended December 31, 2025, compared to $22.5 million for the year ended December 31, 2024, an increase of $12.8 million. This increase was primarily driven by sales growth in the US largely due to growth in the consignment program and 365-day product demand. In the fourth quarter, shipments to Ascensia increased for U.S. sales of the 365-day product, driven by a higher number of patients reaching their annual deductibles and the first patients receiving re-insertions after their initial year on the 365-day product.

*Cost of sales and gross profit*

Our cost of sales were $19.5 million for the twelve months ended December 31, 2025 compared to $21.9 million for the twelve months ended December 31, 2024, a decrease of $2.4 million. Our gross profit increased to $15.8 million for the twelve months ended December 31, 2025, compared to $0.5 million for the twelve months ended December 31, 2024. Gross profit as a percentage of revenue, or gross margin, was 44.7% and 2.4% for the twelve months ended December 31, 2025 and December 31, 2024, respectively. The improvement in gross margin was partially due to $4.8 million in one-time charges incurred in the prior year as the result of the transition from Eversense E3 to Eversense 365. The additional improvement in the gross margin is due to several factors, including favorable margins on the 365-day product sales, lower fixed manufacturing costs, one-time impacts such as VAT recoveries of $0.7 million and the benefit of previously expensed inventory in the amount of $0.6 million. These improvements are slightly offset by an increase in revenue share to Ascensia under the terms of the Commercialization Agreement.

*Research and development expenses*

Research and development expenses were $31.6 million for the twelve months ended December 31, 2025, compared to $41.1 million for the twelve months ended December 31, 2024, a decrease of $9.5 million. The decrease was primarily driven by a $6.3 million decrease in clinical study and outsourced development costs, a $2.2 million decrease in personnel costs, and a $1.2 million decrease in consulting costs. These reductions are primarily driven by the completion of the Eversense 365 system clinical trials and development efforts as well as a reduction in headcount, and were offset by a $0.2 million increase in other research and development expenses.

*Selling, general and administrative expenses*

Selling, general and administrative expenses were $52.5 million for the twelve months ended December 31, 2025, compared to $34.2 million for the twelve months ended December 31, 2024, an increase of $18.3 million. The increase was primarily driven by an $11.3 million increase in selling and marketing expenses related to direct-to-consumer marketing campaigns, a $2.7 million increase in sales commission expenses to Ascensia as we increased consignment sales, a $1.1 million increase in personnel costs, and a $3.2 million increase in other selling, general & administrative costs partially driven by costs related to the transition of commercial and distribution rights to Eversense from Ascensia.

*Total other (expense) income, net*

Total other expense, net was $(0.8) million for the twelve months ended December 31, 2025, compared to other expense, net of $(3.8) million for the twelve months ended December 31, 2024, a decrease of $3.0 million. The change was primarily due to lower interest expense of $3.5 million (primarily due to repayment of the 2025 Notes), partially offset by a decrease in other income of $0.5 million (primarily the result of lower returns on marketable securities investments).

**Liquidity and Capital Resources**

Since our inception, we have incurred significant net losses and expect to incur additional losses in the near future. We incurred total net loss of $(69.1) million and $(78.6) million for the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, we had an accumulated deficit of $1.0 billion. To date, the Company has funded its operations principally through the issuance of preferred stock, common stock, warrants, convertible notes, and debt. As of December 31, 2025, the Company had unrestricted cash, cash equivalents, and marketable securities of $94.0 million.

In the past two years, we have taken a number of measures to strengthen our financial position, including the closing of the Amended Loan and Security Agreement, repayment of our 2023 Notes, the sale of common stock in the 2024 Registered Direct Offering (as defined below) and related issuance of warrants, the issuance of a pre-funded warrant to PHC for cash in a private placement, the exchange of our PHC Notes for a newly issued pre-funded warrant, the exchange of a portion of our 2025 Notes for cash and common stock in a series of private exchanges and the repayment of the remaining 2025 Notes, and the issuance of shares of common stock pursuant to at the market offering programs. We have also taken measures to manage our operating expenses, including through a company restructuring in 2024.

On September 8, 2023, the Company entered into the "Loan and Security Agreement with Hercules Capital, Inc. and its managed fund (collectively, the "Lenders"), pursuant to which the Lenders have to make available to Senseonics up to $50.0 million in senior secured term loans (the "Term Loan Facility"), consisting of (i) an initial term loan of $25.0 million (the "Tranche 1 Loan"), which was funded on the Effective Date and (ii) $10.0 million, which was funded on January 2, 2024 upon meeting certain terms in conditions under the loan agreement, and (the "Tranche 2 Loan") and iii) $15.0 million which has not been drawn. On September 3, 2025, the Company amended the Loan and Security Agreement (the "Amended Loan and Security Agreement") with the Lenders and Hercules. The Amended Loan and Security Agreement increased the total loan commitment under the facility from $50.0 million to $100.0 million (collectively, the "2025 Term Loans"). In the Amended Loan and Security Agreement, the undrawn loans increased from

$15.0 million to $65.0 million divided into three tranches of up to $10.0 million ("2025 Tranche 2 Loan"), up to $20.0 million ("2025 Tranche 3 Loan") and up to $35.0 million ("2025 Tranche 4 Loan"), respectively, which will become available to Senseonics upon Senseonics' satisfaction of certain terms and conditions set forth in the Amended Loan and Security Agreement. The loans under the Amended Loan and Security Agreement mature on September 3, 2029.

In August 2025, the Company entered into an at-the-market sales agreement (the "Sales Agreement") with TD Securities (USA) LLC ("TD Cowen"), under which the Company could offer and sell, from time to time, at its sole discretion, shares of its common stock having an aggregate offering price of up to $100.0 million through TD Cowen as its sales agent in an "at the market" offering. TD Cowen will receive commissions up to 3.0% of the gross proceeds of any common stock sold through TD Cowen under the Sales Agreement. The shares were offered and sold pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on August 6, 2025. During the twelve months ended December 31, 2025, the Company received approximately $2.4 million proceeds from the sale of 334,330 shares under the Sales Agreement, after deducting sales commissions and offering expenses.

On May 15, 2025, the Company entered into an underwriting agreement (the "Underwriting Agreement") with several underwriters for the sale of 5,000,000 shares of its common stock (the "Public Offering"), at a public offering price of $10.00 per share (the "Public Offering Price"). Under the terms of the Underwriting Agreement, the Company also granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock at the Public Offering Price, which the underwriters exercised in full. The Company received aggregate gross proceeds from the Public Offering of $57.5 million. The Company also entered into a securities purchase agreement with Abbott Laboratories ("Abbott") pursuant to which the Company agreed to issue and sell 2,026,963 shares of its common stock substantially concurrently with the Public Offering, at the Public Offering Price, to Abbott for an aggregate purchase price of approximately $20.3 million in a private placement (the "Private Placement"). The Public Offering and Private Placement closed on May 19, 2025 and May 20, 2025, respectively, and the Company received net proceeds of approximately $52.1 million and $20.1 million, respectively, after deducting underwriting discount, commissions, and offering expenses.

In August 2023, the Company entered into an Equity Distribution Agreement (the "Equity Distribution Agreement") with Goldman Sachs & Co. LLC ("GS"), under which the Company could offer and sell, from time to time, at its sole discretion, shares of its common stock having an aggregate offering price of up to $106.6 million through GS as its sales agent in an "at the market" offering. GS received commissions up to 3.0% of the gross proceeds of any common stock sold through GS under the Equity Distribution Agreement. The shares were offered and sold pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on August 10, 2023. On October 24, 2024, the Company amended the Equity Distribution Agreement with GS to reduce the maximum amount of shares issuable thereunder to $55.0 million. On May 15, 2025, in connection with the Public Offering and Private Placement, the Equity Distribution Agreement was terminated. At the time of termination of the Equity Distribution Agreement on May 15, 2025, the Company had received approximately $30.8 million in net proceeds from the sale of 2,006,528 shares under the Equity Distribution Agreement, after deducting sales commissions and offering expenses.

On October 24, 2024, the Company completed a registered direct securities offering (the "2024 Registered Direct Offering") to certain institutional investors in which we issued and sold 2,285,714 shares of common stock at $7.00 per share and simultaneously issued the PP Warrants to these investors in a private placement to purchase an aggregate of 2,285,714 shares of common stock at an exercise price of $7.00 per share. The PP Warrants were non-exercisable for the first six months after issuance and expire on April 29, 2030. The offering closed on October 28, 2024, and the Company received proceeds of approximately $14.8 million after payment of fees to the placement agent, but before payment of any additional expenses incurred by the Company in connection with the transaction.

On August 10, 2023, we entered into separate, privately negotiated exchange agreements (the "Exchange Agreements") with a limited number of holders (the "Noteholders") of our outstanding 5.25% Convertible Senior Notes due 2025 (the "2025 Notes"). Under the terms of the Exchange Agreements, the holders of the 2025 Notes agreed to exchange up to $30.8 million in aggregate principal amount of the 2025 Notes (the "Exchanged Notes") for a combination of $7.5 million of cash and newly issued shares of common stock. The number of shares issued was

determined based upon the volume-weighted average price per share of the common stock during a 15-day averaging period. Based on the volume-weighted average price per share of the common stock during the averaging period, we issued a total of 35.1 million shares of common stock in the exchanges. Following the exchange, the remaining balance of the 2025 Notes was $20.4 million. On January 15, 2025, the Company repaid the outstanding principal and accrued interest in full.

***Warrants***

In connection with certain of our historical financing transactions, we have issued warrants to investors and providers of debt financing, as described below.

On June 30, 2016, we entered into a loan agreement with Oxford Finance and Silicon Valley Bank (collectively, the "Lenders") and issued to the Lenders 10-year stock purchase warrants to purchase an aggregate of 5,830, 3,152 and 4,033 shares of common stock at an exercise price of $77.20, $47.60 and $37.20 per share, respectively ("Oxford/SVB Warrants"). The Oxford/SVB Warrants expire on June 30, 2026, November 22, 2026 and March 29, 2027, respectively.

On March 13, 2023, we issued and sold to PHC a warrant to purchase 771,288 shares of common stock for $15.0 million (the "Purchase Warrant"). The Purchase Warrant is a "pre-funded" warrant with a nominal exercise price of $0.02 per share (the "Purchase Warrant Shares"). All or any part of the Purchase Warrant is exercisable by PHC at any time and from time to time.

In March 2023, we entered into an exchange agreement with PHC, pursuant to which PHC exchanged $35.0 million aggregate principal amount of convertible notes due October 31, 2024 (the "PHC Notes"), including all accrued and unpaid interest thereon, for a warrant (the "PHC Exchange Warrant") to purchase up to 3,426,266 shares of common stock (the "PHC Exchange Warrant Shares"). The PHC Exchange Warrant is a "pre-funded" warrant with a nominal exercise price of $0.02 per PHC Exchange Warrant Share. All or any part of the PHC Exchange Warrant is exercisable by PHC at any time and from time to time.

On September 8, 2023, we entered into the Loan and Security Agreement with several lenders and issued the Tranche 1 Warrants to acquire an aggregate of 41,619 shares of common stock at an initial exercise price of $12.01 per share. The Tranche 1 Warrants may be exercised through the earlier of (i) September 8, 2030 and (ii) the consummation of certain acquisition transactions involving the Company, as set forth in the warrant agreement. On September 3, 2025, the Company and the lenders entered into an amendment to reduce the exercise price to $9.09 per share. All other terms of the warrants, including the expiration date and number of shares issuable upon exercise, remain unchanged.

On January 2, 2024, we issued the Tranche 2 Warrants to acquire an aggregate of 17,395 shares at an initial exercise price of $11.50 per share. The Tranche 2 Warrants may be exercised through the earlier of (i) January 2, 2031 and (ii) the consummation of certain acquisition transactions involving the Company, as set forth in the warrant agreement. On September 3, 2025, the Company and the lenders entered into an amendment to reduce the exercise price to $9.09 per share. All other terms of the warrants, including the expiration date and number of shares issuable upon exercise, remain unchanged.

On October 24, 2024, in connection with the 2024 Registered Direct Offering, the Company issued to the investors in the offering the PP Warrants to purchase an aggregate of 2,285,714 shares of common stock at an exercise price of $7.00 per share. The PP Warrants were non-exercisable for the first six months after issuance and expire on April 29, 2030.

***Indebtedness***

*Amended Loan and Security Agreement*

On September 8, 2023, the Company entered into the Loan and Security Agreement with the Lenders and Hercules, pursuant to which the Lenders agreed to make available to the Company the Term Loan Facility, consisting of (i) an initial Tranche 1 Loan, which was previously funded on the Effective Date in an amount of $25.0 million and (ii) the Tranche 2 Loan, which was funded on January 2, 2024 in an amount of $10.0 million, and (iii) Tranche 3 Loan, which has not been drawn. On September 3, 2025, the Company entered into the Amended Loan and Security Agreement, increasing the total loan commitment under the facility from $50.0 million to $100.0 million. Under the Amended Loan and Security Agreement, the undrawn loans increased from $15.0 million to $65.0 million divided into three tranches of up to $10.0 million, up to $20.0 million, and up to $35.0 million, respectively, which will become available to Senseonics upon Senseonics' satisfaction of certain terms and conditions set forth in the Amended Loan and Security Agreement. The loans under the Amended Loan and Security Agreement mature on September 3, 2029.

*Convertible Notes*

The 2025 Notes were repaid in full on January 15, 2025. See Note 13 in the accompanying notes to our consolidated financial statements included elsewhere in this Annual Report for further discussion of the 2025 Notes.

***Funding Requirements and Outlook***

Our ability to grow revenues and achieve profitability depends on the successful commercialization and adoption of our Eversense System by diabetes patients and healthcare providers, along with future product development, regulatory approvals, and post-approval requirements. Successful completion of the transfer of commercial operations relating to Eversense from Ascensia back to the Company may provide opportunities to have greater influence on revenue generation and market adoption of Eversense. These activities, including our ongoing focus to grow covered lives through positive insurance payor policy decisions, initiatives to support patient access, and continued development of Eversense 365 in the United States, will require significant uses of working capital through 2025 and beyond. As of December 31, 2025, the Company had unrestricted cash, cash equivalents and marketable securities of $94.0 million.

In accordance with the FASB Accounting Standards Codification Topic 205-40, Presentation of Financial Statements-Going Concern, management is required to assess the Company's ability to continue as a going concern through twelve months after issuance of the financial statements. Based on the Company's current operating plan including expected capital investments required to assume commercialization and distribution responsibilities, existing unrestricted cash, cash equivalents and marketable securities, minimum cash requirements and satisfaction of performance milestones to comply with debt covenants under its Amended Loan and Security Agreement, the Company has determined that it may not meet its debt covenants as early as the third quarter of 2026. Further, the Company will require additional liquidity to continue its operations over the next twelve months. Therefore, the Company has concluded that substantial doubt exists regarding its ability to continue as a going concern for the one-year period following the date these consolidated financial statements are issued. As part of our liquidity strategy, the Company will continue to monitor our capital structure and market conditions, and the Company may finance our cash needs through public or private debt and equity financings and other sources which may include collaborations, strategic alliances, and licensing arrangements with third parties. There is no assurance that the Company will be successful in obtaining sufficient funding on acceptable terms, if at all, and could be forced to delay, reduce, or eliminate some or all of its research, clinical trials, product development or future commercialization efforts, which could materially adversely affect its business prospects or its ability to continue as a going concern.

**Cash Flows**

The following is a summary of cash flows for each of the periods set forth below (in thousands):

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| | | |
|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Net cash used in operating activities | $(59129) | $(60465) |
| Net cash (used in) provided by investing activities | (53422) | 32838 |
| Net cash provided by financing activities | 78188 | 26830 |
| Net decrease in cash and cash equivalents | $(34363) | $(797) |

---

*Net cash used in operating activities*

Net cash used in operating activities was $59.1 million for the year ended December 31, 2025, and consisted of a net loss of $69.1 million, a $3.3 million net change in operating assets and liabilities, partially offset by $10.2 million of stock-based compensation, and $3.1 million related to depreciation/amortization and other non-cash items.

Net cash used in operating activities was $60.5 million for the year ended December 31, 2024, and consisted of a net loss of $78.6 million, partially offset by a $0.9 million net change in operating assets and liabilities, $9.2 million of stock-based compensation, $3.9 million in non-cash inventory costs primarily due to transition to the 365-day product, and $4.1 million related to depreciation/amortization and other non-cash items.

*Net cash (used in) provided by investing activities*

Net cash used in investing activities was $53.4 million for the year ended December 31, 2025, and consisted of $100.7 million from the purchase of marketable securities and $1.1 million of capital expenditures partially offset by $48.4 million from the sales and maturity of marketable securities.

Net cash provided by investing activities was $32.8 million for the year ended December 31, 2024, and consisted of $93.1 million from the sale and maturity of marketable securities, partially offset by $58.1 million from the purchase of marketable securities and $2.2 million of capital expenditures.

*Net cash provided by financing activities*

Net cash provided by financing activities was $78.2 million for the year ended December 31, 2025, and primarily consisted of $72.3 million in net proceeds from the Public Offering and Private Placement, $28.5 million in net proceeds related to the issuance of common stock pursuant to our at the market offering and the exercise of stock options, offset by $20.4 million used to repay the remaining outstanding 2025 Notes, $1.7 million of taxes paid related to net share settlement of equity awards and $0.4 million used to repay the debt modification costs.

Net cash provided by financing activities was $26.8 million for the year ended December 31, 2024, and primarily consisted of an aggregate of $4.0 million in proceeds related to the issuance of common stock pursuant to our at the market offering and the exercise of stock options, $14.5 million in proceeds from a registered direct offering, and $10.0 million in net proceeds from borrowings pursuant to the Loan and Security Agreement, partially offset by $1.7 million of taxes paid related to net share settlement of equity awards.

**Item 7A. Quantitative and Qualitative Disclosures About Market Risk**

We are a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K. Accordingly, pursuant to Item 305(e) of Regulation S-K, we are not required to provide the disclosures under this Item 7A.

**Item 8. Financial Statements and Supplementary Data** 

**SENSEONICS HOLDINGS, INC. AND SUBSIDIARIES**

**Consolidated Financial Statements**

**Table of Contents** 

---

| | |
|:---|:---|
| [Report of KPMG LLP](#Report_1), Auditor ID:185, [Independent Registered Public Accounting Firm](#Report_1) | 86 |
| [Consolidated Balance Sheets as of December 31, 2025 and 2024](#BalanceSheets_721894) | 88 |
| [Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2025 and 2024](#StatementsofOperations_379266) | 89 |
| [Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the years ended December 31, 2025 and 2024](#StockholdersEquity_294402) | 90 |
| [Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024](#StatementsofCashFlows_909240) | 91 |
| [Notes to Consolidated Financial Statements](#NotestoFinancialStatements_26884) | 92 |

---

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and the Board of Directors

Senseonics Holdings, Inc.:

*Opinion on the Consolidated Financial Statements*

We have audited the accompanying consolidated balance sheets of Senseonics Holdings, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive loss, changes in stockholders' equity (deficit), and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

*Going Concern*

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has determined that it may not meet its covenants as early as the third quarter of 2026. Further, the Company will require additional liquidity to continue its operations over the next twelve months. Therefore, the Company concluded that substantial doubt exists about its ability to continue as a going concern for the one-year period following the date the consolidated financial statements are issued. Management's plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

*Basis for Opinion*

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

*Critical Audit Matters*

Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that

are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ KPMG LLP

We have served as the Company's auditor since 2022.

Baltimore, Maryland

March 2, 2026

**Senseonics Holdings, Inc.**

**Consolidated Balance Sheets**

 **(in thousands, except for share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $40234 | $74597 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 315 | 315 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short term investments, net | 53796 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 6807 | 1365 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net - related parties | 5312 | 4921 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory, net | 6703 | 4421 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 4366 | 5819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 117533 | 91438 |
| Deposits and other assets | 4536 | 4926 |
| Property, equipment and intangible assets, net | 4200 | 4074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $126269 | $100438 |
| **Liabilities and Stockholders' Equity (Deficit)** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $4059 | $3205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 15091 | 13636 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities, related parties | 5198 | 1870 |
| &nbsp;&nbsp;&nbsp;&nbsp;Note payable, current portion, net |  | 20138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 24348 | 38849 |
| Long-term debt and notes payables, net | 35586 | 34703 |
| Non-current operating lease liabilities | 5289 | 5785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 65223 | 79337 |
| Commitments and contingencies |  |  |
| Preferred stock and additional paid-in-capital, subject to possible redemption: $0.001 par value per share; 0 shares and 12,000 shares issued and outstanding as of December 31, 2025 and December 31, 2024 |  | 37656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total temporary equity |  | 37656 |
| Stockholders' equity (deficit): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.001 par value per share; 70,000,000 shares authorized as of December 31, 2025 and December 31, 2024; 41,265,778 shares and 29,767,561 shares issued and outstanding as of December 31, 2025 and December 31, 2024 | 41 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 1077923 | 931289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 69 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (1016987) | (947874) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity (deficit)  | 61046 | (16555) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities, temporary equity and stockholders' equity (deficit)  | $126269 | $100438 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**Senseonics Holdings, Inc.**

**Consolidated Statements of Operations and Comprehensive Loss**

**(in thousands, except for share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Revenue, net | $17084 | $3973 |
| Revenue, net - related parties | 18173 | 18499 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 35257 | 22472 |
| Cost of sales | 19494 | 21939 |
| Gross profit | 15763 | 533 |
| Expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | 31592 | 41144 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 52508 | 34231 |
| Operating loss | (68337) | (74842) |
| Other income (expense), net: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 4198 | 4502 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (4951) | (8437) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on change in fair value of derivatives |  | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense (income) | (23) | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (776) | (3774) |
| Net Loss | (69113) | (78616) |
| Other comprehensive income |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on marketable securities | 69 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income | 69 | 11 |
| Total comprehensive loss | $(69044) | $(78605) |
| Basic net loss per common share | $(1.66) | $(2.50) |
| Basic weighted-average shares outstanding | 41727983 | 31486079 |
| Diluted net loss per common share | $(1.66) | $(2.50) |
| Diluted weighted-average shares outstanding | 41727983 | 31486079 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**Senseonics Holdings, Inc.**

**Consolidated Statements of Changes in Stockholders' Equity (Deficit)**

**(in thousands)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | <br>**Additional**<br>**Paid-In**<br>**Capital** | <br>**Accumulated**<br>**Other**<br>**Comprehensive Income (Loss)** | <br>**Accumulated**<br>**Deficit** | <br>**Total**<br>**Stockholders'**<br>**Equity (Deficit)** | **Series B**<br>**Convertible** <br>**Preferred Stock**<br>**Temporary Equity** |
| Balance, December 31, 2023 | 26518 | $27 | $905038 | $(11) | $(869258) | $35796 | $37656 |
| Issuance of common stock, net of issuance costs | 2882 | 3 | 3812 |  |  | 3815 |  |
| Issuance of the RD Shares and the PP Warrants, net of issuance costs |  |  | 14549 |  |  | 14549 |  |
| Issuance of warrants, net of issuance costs |  |  | 149 |  |  | 149 |  |
| Issuance of common stock for vested RSUs, ESPP purchases and stock option exercises | 483 |  | 179 |  |  | 179 |  |
| Stock-based compensation expense |  |  | 9225 |  |  | 9225 |  |
| Shares withheld related to net share settlement of equity awards | (116) |  | (1663) |  |  | (1663) |  |
| Net loss |  |  |  |  | (78616) | (78616) |  |
| Other comprehensive income |  |  |  | 11 |  | 11 |  |
| Balance, December 31, 2024 | 29767 | 30 | 931289 |  | (947874) | (16555) | 37656 |
| Conversion of preferred stock | 1518 | 2 | 37654 |  |  | 37656 | (37656) |
| Issuance of common stock, net of issuance costs | 9521 | 9 | 100582 |  |  | 100591 |  |
| Issuance of warrants, net of issuance costs |  |  | (163) |  |  | (163) |  |
| Issuance of common stock for vested RSUs, ESPP purchases and stock option exercises | 656 |  | 143 |  |  | 143 |  |
| Stock-based compensation expense  |  |  | 10153 |  |  | 10153 |  |
| Shares withheld related to net share settlement of equity awards | (199) |  | (1735) |  |  | (1735) |  |
| Net loss |  |  |  |  | (69113) | (69113) |  |
| Other comprehensive income |  |  |  | 69 |  | 69 |  |
| Balance, December 31, 2025 | 41263 | $41 | $1077923 | $69 | $(1016987) | $61046 |  |

---

The accompanying notes are an integral part of these consolidated financial statements.

**Senseonics Holdings, Inc.**

**Consolidated Statements of Cash Flows**

**(in thousands)**

---

| | | |
|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| Net loss | $(69113) | $(78616) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 1512 | 1475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash interest expense (debt discount and deferred costs) | 1393 | 3845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net amortization of premiums and accretion of discounts on marketable securities | (1421) | (1319) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on change in fair value of derivatives |  | (102) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 10153 | 9225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for inventory obsolescence and losses | 694 | 3942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | 931 | 220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (6765) | (2699) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1453 | 1164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (2975) | 696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits and other assets | 13 | 1737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1218 | (1828) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 5207 | 2621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | (490) | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on lease liabilities | (939) | (912) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (59129) | (60465) |
| **Cash flows from investing activities** |  |  |
| Capital expenditures | (1116) | (2239) |
| Purchase of marketable securities | (100693) | (58018) |
| Proceeds from sale and maturity of marketable securities | 48387 | 93095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by investing activities | (53422) | 32838 |
| **Cash flows from financing activities** |  |  |
| Proceeds from at-the-market sales of common stock, net | 28321 | 3815 |
| Proceeds from issuance of common stock in Public Offering, net | 52122 |  |
| Proceeds from issuance of common stock in Private Placement, net | 20148 |  |
| Proceeds from exercise of stock options, RSUs and ESPP issuances, net | 143 | 179 |
| Proceeds from issuance of term loan, net |  | 9950 |
| Taxes paid related to net share settlement of equity awards | (1735) | (1663) |
| Repayment of 2025 Notes | (20399) |  |
| Proceeds from issuance of the RD Shares and the PP Warrants |  | 14549 |
| Payment of debt modification costs | (412) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 78188 | 26830 |
| Net decrease in cash and cash equivalents  | (34363) | (797) |
| Cash and cash equivalents and restricted cash, at beginning of period | 74912 | 75709 |
| Cash and cash equivalents and restricted cash, at ending of period | $40549 | $74912 |
| **Supplemental disclosure of cash flow information** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the period for interest | $4049 | $4506 |
| **Supplemental disclosure of non-cash transactions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock converted from preferred shares | 30372 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment purchases included in accounts payable and accrued expenses | 54 | 418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of warrants for Loan and Security Agreement |  | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in exercise price of warrants due to Amended Loan and Security Agreement | (163) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of sensor insertion network assets in exchange for accounts receivable |  | 725 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities for contingent consideration  |  | 50 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**Senseonics Holdings, Inc.**

**Notes to Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Organization** 

***Business***

Senseonics Holdings, Inc., a Delaware corporation, is a medical technology company focused on the development and manufacturing of long-term, implantable continuous glucose monitoring systems to improve the lives of people with diabetes by enhancing their ability to manage their disease with relative ease and accuracy.

Senseonics, Incorporated is a wholly owned subsidiary of Senseonics Holdings, Inc. and was originally incorporated on October 30, 1996 and commenced operations on January 15, 1997. Eon Care Services, LLC and Eon Management Services, LLC are wholly owned subsidiaries of Senseonics, Incorporated formed in April 2024 and July 2024, respectively. Senseonics Holdings, Inc. and its consolidated subsidiaries and affiliated entities, including its consolidated VIEs are hereinafter collectively referred to as the "Company", unless otherwise indicated or the context otherwise requires.

***Reverse Stock Split***

On October 17, 2025, at 4:05 p.m. Eastern Time (the "Effective Time"), the Company effected a 1-for-20 reverse stock split of the Company's issued and outstanding shares of common stock (the "Reverse Stock Split") and a proportionate reduction in the total number of authorized shares of its common stock from 1,400,000,000 shares to 70,000,000 shares, as authorized by the Company's stockholders at the Company's 2025 special meeting of stockholders held on September 29, 2025 and approved by the Company's board of directors on October 3, 2025. As a result of the Reverse Stock Split, every 20 shares of issued and outstanding common stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value of $0.001 per share. No fractional shares were issued as a result of the Reverse Stock Split. Shareholders entitled to a fractional share received a cash payment based on the average closing sales price of the Company's common stock on The NYSE American for the five trading days immediately preceding the Effective Time. All historical share and per share amounts reflected throughout the financial statements have been adjusted to reflect the Reverse Stock Split. Proportionate adjustments were made to the per share exercise price and the number of shares of common stock that may be purchased upon exercise of outstanding stock options and warrants and the number of shares of common stock reserved for future issuance under the Company's equity compensation plans.

***Transfer to Nasdaq Stock Exchange***

On November 14, 2025, the Company provided written notice to NYSE American of its determination to make a voluntary withdrawal of the Company's common stock from the NYSE American to the Nasdaq Global Select Market ("Nasdaq"). The Company ended trading on the NYSE American effective after the market closed on November 14, 2025 and began trading on Nasdaq under the existing ticker symbol "SENS" on November 17, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Liquidity, Capital Resources, and Going Concern** 

The Company's operations are subject to certain risks and uncertainties including, among others, current and potential competitors with greater resources, limited operating history as a commercial-stage company and uncertainty of future profitability. Since inception, the Company has suffered substantial operating losses, principally from expenses associated with the Company's research and development programs and commercial launch of the Eversense® 365 CGM System (for use up to one-year) in the United States, the Eversense® E3 (for use up to six months) in Europe and expenses incurred for our legacy product versions.

The Company has not generated significant profit from the sale of products and its ability to generate revenue and achieve profitability largely depends on the Company's ability to successfully expand the commercialization of

Eversense, continue the development of its products and product upgrades, and to obtain necessary regulatory approvals or certifications for the sale of those products. These activities including the costs associated with our plans to transition the commercial activities back to the Company (as further described in Note 4) will require significant uses of working capital through 2026 and beyond. The Company generated total net loss of $69.1 million for the twelve months ended December 31, 2025 and had an accumulated deficit of $1.0 billion at December 31, 2025. To date, the Company has funded its operations principally through the issuance of preferred stock, common stock, warrants, convertible notes and debt. As of December 31, 2025, the Company had unrestricted cash, cash equivalents and marketable securities of $94.0 million.

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") assuming the Company will continue

as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that may be necessary if the Company were unable to continue as a going concern.

Based on the Company's current operating plan including expected capital investments required to assume commercialization and distribution responsibilities, existing unrestricted cash, cash equivalents and marketable securities, minimum cash requirements and satisfaction of performance milestones to comply with debt covenants under its Amended Loan and Security Agreement as discussed in Note 13, the Company has determined that it may not meet its debt covenants as early as the third quarter of 2026. Further, the Company will require additional liquidity to continue its operations over the next twelve months. Therefore, the Company has concluded that substantial doubt exists regarding its ability to continue as a going concern for the one-year period following the date these consolidated financial statements are issued. The Company is currently evaluating strategies to obtain the required additional funding for future operations. The Company anticipates that the principal uses of cash in the future will be primarily fund our operations, working capital needs, capital expenditures and other strategic initiatives. The Company's ability to continue to fund our operations and meet capital needs will depend on the ability to successfully obtain funding from public or private debt and equity financings and other sources of capital. There can be no assurance that additional capital will be available on acceptable terms, or at all.

The consolidated financial statements do not include any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that may be necessary if the Company were unable to continue as a going concern.

Actions taken by the Company with regards to liquidity and to manage our cash flows during the years ended December 31, 2025 and 2024, included, but were not limited to the following:

On September 8, 2023 (the "Effective Date"), the Company entered into a loan agreement (the "Loan and Security Agreement") with the several institutions or entities party thereto (collectively, the "Lenders") and Hercules Capital, Inc., a Maryland corporation ("Hercules") in its capacity as administrative agent and collateral agent for itself and the Lenders, pursuant to which the Lenders agreed to make available to the Company up to $50.0 million in senior secured term loans (the "Term Loan Facility"), consisting of (i) an initial term loan of $25.0 million (the "Tranche 1 Loan"), which was funded on the Effective Date and (ii) two additional tranches of term loans in the amounts of up to $10.0 million (the "Tranche 2 Loan") and $15.0 million (the "Tranche 3 Loan"), respectively, which will become available to the Company upon the Company's satisfaction of certain terms and conditions set forth in the Loan and Security Agreement. In December 2023, we met the terms and conditions to draw on the Tranche 2 Loan and the loan was funded on January 2, 2024 in an amount of $10.0 million. On September 3, 2025 (the "2025 Effective Date"), the Company amended the Loan and Security Agreement (the "Amended Loan and Security Agreement") with the Lenders and Hercules. The 2025 Amended Loan and Security Agreement increased the total loan commitment under the facility from $50.0 million to $100.0 million (collectively, the "2025 Term Loans") and made certain other modifications to the terms and conditions of the arrangement, as further described in Note 13. The 2025 Term Loans mature on September 3, 2029 (the "Maturity Date").

In August 2025, the Company entered into an at-the-market sales agreement (the "Sales Agreement") with TD

Securities (USA) LLC ("TD Cowen"), under which the Company could offer and sell, from time to time, at its sole discretion, shares of its common stock having an aggregate offering price of up to $100.0 million through TD Cowen as its sales agent in an "at the market" offering. TD Cowen will receive commissions up to 3.0% of the gross proceeds of any common stock sold through TD Cowen under the Sales Agreement. The shares were offered and sold pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on August 6, 2025. During the year ended December 31, 2025, the Company received approximately $2.4 million proceeds from the sale of 334,330 shares under the Sales Agreement, after deducting sales commissions and offering expenses.

On May 15, 2025, the Company entered into an underwriting agreement (the "Underwriting Agreement") with

several underwriters for the sale of 5,000,000 shares of its common stock (the "Public Offering"), at a public offering price of $10.00 per share (the "Public Offering Price"). Under the terms of the Underwriting Agreement, the Company also granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock at the Public Offering Price, which the underwriters exercised in full. The Company received aggregate gross proceeds from the Public Offering of $57.5 million. The Company also entered into a securities purchase agreement with Abbott Laboratories ("Abbott") pursuant to which the Company agreed to issue and sell 2,026,963 shares of its common stock substantially concurrently with the Public Offering, at the Public Offering Price, to Abbott for an aggregate purchase price of approximately $20.3 million in a private placement (the "Private Placement"). The Public Offering and Private Placement closed on May 19, 2025 and May 20, 2025, respectively, and the Company received net proceeds of approximately $52.1 million and $20.1 million, respectively, after deducting underwriting discount, commissions, and offering expenses.

On October 24, 2024, the Company entered into a securities purchase agreement with certain institutional investors to issue and sell (i) in a registered direct offering an aggregate of 2,285,714 shares of the Company's common stock, $0.001 par value per share (the "RD Shares") and (ii) in a concurrent private placement, warrants to purchase an aggregate of 2,285,714 shares of common stock (the "PP Warrants"). The combined purchase price of each RD Share and accompanying PP Warrant was $7.00 per share for total gross proceeds of $16.0 million. The RD Shares and the PP Warrants were immediately separable and were issued separately. The PP Warrants have an exercise price of $7.00 per share, were non-exercisable for the first six months after issuance and expire five years from the date of initial exercisability. The offering closed on October 28, 2024, and the Company received proceeds of approximately $14.8 million after payment of fees to the placement agent, but before payment of any additional expenses incurred by the Company in connection with the transaction. The proceeds were allocated to the RD Shares and PP Warrants based on the relative fair values of the instruments themselves at the time of issuance.

In August 2023, the Company entered into an Equity Distribution Agreement (the "Equity Distribution Agreement") with Goldman Sachs & Co. LLC ("GS"), under which the Company could offer and sell, from time to time, at its sole discretion, shares of its common stock having an aggregate offering price of up to $106.6 million through GS as its sales agent in an "at the market" offering. GS received commissions up to 3.0% of the gross proceeds of any common stock sold through GS under the Equity Distribution Agreement. The shares were offered and sold pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on August 10, 2023. On October 24, 2024, the Company amended the Equity Distribution Agreement with GS to reduce the maximum amount of shares issuable thereunder to $55.0 million. From March 2024 through March 2025, the Company received approximately $30.8 million in net proceeds from the sale of 2,006,528 shares under the Equity Distribution Agreement, after deducting sales commissions and offering expenses. On May 15, 2025, in connection with the Public Offering and Private Placement, the Equity Distribution Agreement was terminated.

On November 9, 2020, the Company entered into an Equity Line Agreement with Energy Capital (the "Equity Line Agreement"), pursuant to which Energy Capital committed to purchase up to an aggregate of $12.0 million of shares of our newly designated Series B convertible Preferred Stock ("Series B Preferred Stock"), at our request from time to time during the 24-month term of the Equity Line Agreement. Beginning on January 1, 2022, since there had been no sales of the Series B Preferred Stock pursuant to the Equity Line Agreement, Energy Capital had the right, at its sole discretion to purchase up to $12.0 million of Series B Preferred Stock under the Equity Line Agreement at a purchase price of $1,000 per share of Series B Preferred Stock initially convertible into common stock, beginning six months after the date of its issuance, at a conversion price of $7.90 per share. On November 7, 2022, Energy Capital

exercised in full its right to purchase $12.0 million of Series B Preferred Stock. In the first quarter of 2025, Energy Capital converted its Series B Preferred Stock in full into 1,518,602 shares of common stock.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Summary of Significant Accounting Policies** 

***Basis of Presentation***

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") assuming the Company will continue

as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

The consolidated financial statements reflect the accounts of Senseonics Holdings, Inc. and its consolidated subsidiaries and affiliated entities, including its variable interest entities ("VIEs") in which the Company is the primary beneficiary. All intercompany balances and transactions are eliminated upon consolidation.

In November 2024, Eon Management Services, LLC entered into management services agreements (the

"Administrative Agreement") for an initial fixed term of 10 years with several professional corporations created to support patient access to the Eversense system by contracting nurse practitioners and other healthcare professionals to perform Eversense insertion procedures and other clinical activities. Eon Care Clinicians PC, Eon Care Clinicians of NJ PC, and Eon Care Clinicians of CA PC (collectively referred to as "Eon Care PCs") are the professional corporations that were established pursuant to the requirements of its respective domestic jurisdiction governing the corporate practice of medicine.

In accordance with relevant accounting guidance, the Eon Care PCs have been determined to be VIEs of the Company, as the Company is its primary beneficiary with the ability, through the Administrative Agreement to direct the activities (excluding clinical activities) that most significantly affect the Eon Care PCs financial performance and have the obligation to absorb losses of, or the right to receive benefits from, the Eon Care PCs that could potentially be significant to it. The assets of the consolidated VIEs may only be used to settle obligations of the consolidated VIEs, if any. Our variable interest entities' assets, liabilities, and results of operations were not material to our consolidated financial results.

***Use of Estimates***

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses during the reporting period. In the accompanying consolidated financial statements, estimates are used for, but not limited to, stock-based compensation, recoverability of long-lived assets and definite-lived intangible assets, deferred taxes and valuation allowances, derivative assets and liabilities, obsolete inventory, warranty obligations, variable consideration related to revenue, allowance for credit losses, depreciable lives of property and equipment, and accruals for clinical study costs, which are accrued based on estimates of work performed under contract. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenues and expenses. Actual results could differ from those estimates; however, management does not believe that such differences would be material.

***Cash and Cash Equivalents and Concentration of Credit Risk***

The Company considers highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. Restricted cash represents cash and cash equivalents that are restricted to withdrawal or use as of the reporting date. The Company's restricted cash relates to collateral for procurement cards issued by a U.S. commercial bank. Cash, cash equivalents and restricted cash consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** <br>**2025** | **December 31,**<br>**2024** |
| Cash ⁽¹⁾ | $6610 | $3984 |
| Money market funds | 33624 | 70613 |
| Restricted cash | 315 | 315 |
| Cash, cash equivalents and restricted cash  | $40549 | $74912 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes overnight repurchase agreements.

***Marketable Securities***

Marketable securities typically consist of commercial paper, corporate debt securities, asset backed securities and government and agency securities. The Company's investments are classified as available for sale. Such securities are carried at fair value, with any unrealized holding gains or losses reported, net of any tax effects reported, as accumulated other comprehensive income. Realized gains and losses and declines in value judged to be other-than-temporary, if any, are included in consolidated results of operations. A decline in the market value of any available for sale security below cost that is deemed to be other-than-temporary results in a reduction in fair value, which is charged to earnings in that period, and a new cost basis for the security is established. Dividend and interest income is recognized when earned. The cost of securities sold is calculated using the specific identification method. We classify all available-for-sale marketable securities with maturities greater than one year from the balance sheet date as non-current assets. We do not generally intend to sell these investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

***Inventory and Obsolescence***

Inventory is valued at the lower of cost or net realizable value. Cost is determined using the standard cost method that approximates first in, first out. The Company records an adjustment to reduce the value of inventory for items that are potentially obsolete, where standard costs require adjustment to the net realizable value, and are in excess of future demand taking into consideration the product shelf life. The sensor manufacturing process can span several months, involves various contract manufacturers and includes raw components with long lead times, often resulting in significant work-in-progress inventory. However, expiry does not commence until the chemistry is applied to the sensor. The Company is able to isolate pre-chemistry sensor inventory in progress from post-chemistry sensor inventory in progress and finished goods to assess against demand forecasts and customer dating requirements for potential excess or obsolete inventory. The Company's estimates are based on information known as of the balance sheet date and include factors such as anticipated future usage and sales, potential for external unfavorable conditions such as import holds or quality issues, and planned product upgrades. However, if actual product quality or conditions differ from the Company's assumptions, additional inventory adjustments that would increase cost of sales could be required.

The Company capitalizes inventory costs associated with pre-launch inventory upon regulatory approval when, based on management's judgment, future commercialization is considered probable and the future economic benefit is expected to be realized. The determination to capitalize inventory costs is based on the particular facts and circumstances relating to the product. Inventory costs incurred prior to regulatory approval are expensed as research and development expenses.

***Accounts Receivable***

The Company grants credit to various customers in the normal course of business. Accounts receivable consist of amounts due from distributors and consignment customers. These receivables are reduced by an expected credit loss at the time revenue is recognized. Uncollectible accounts are written off against the credit loss reserve after appropriate collection efforts have been exhausted and when it is deemed that a balance is uncollectible. At December 31, 2025 and December 31, 2024, the credit loss reserve was $1.3 million and $0.3 million, respectively.

***Property and Equipment, net***

Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which is generally between three to seven years, and is recorded within operating expenses and cost of goods sold in the consolidated statements of operations and comprehensive loss. Upon disposition of the assets, the costs and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations. Repairs and maintenance costs are included as expense in the accompanying statement of operations.

***Intangibles***

The Company amortizes intangible assets acquired using the straight-line method over the estimated economic useful life. The useful life is determined after considering the specific facts and circumstances related to the use of the intangible asset such as the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's strategy for use of the asset, and any other factors which could impact the useful life of the asset.

***Leases***

The Company evaluates whether contractual arrangements contain leases at the inception of such arrangements. Specific considerations include whether the Company can control the underlying asset and has the right to obtain substantially all of the economic benefits or outputs from the asset. Substantially all of the Company's leases are long-term operating leases with fixed payment terms. The Company currently does not have financing leases. Right-of-use ("ROU") operating lease assets represent the Company's right-to-use an underlying asset for the lease term, and operating lease liabilities represent the Company's obligation to make lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in general and administrative expenses on the Company's consolidated statement of operations and comprehensive loss. Options to extend the leases or terminate the leases early are only included in the lease term when it is reasonably certain that the option will be exercised.

The Company recognizes a ROU lease asset and liability as of the lease commencement date at the present value of the lease payments over the lease term. If the discount rate in the lease agreement is not implicit, the Company estimates the incremental borrowing rate based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term. Lease and non-lease components are accounted for as a single component for facility leases. Leases with an initial term of 12 months or less are expensed over the related term.

***Impairment of Long*-*Lived Assets***

Management reviews long-lived assets, including property and equipment, intangible assets, and right-of-use assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the long-lived asset is measured by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. There were no impairment indicators identified in 2025 or 2024.

***Product Warranty Obligations***

The Company provides a warranty of one year on its smart transmitters. Additionally, the Company may also replace Eversense system components that do not function in accordance with the product specifications. Estimated replacement costs are recorded at the time of shipment as a charge to cost of sales in the consolidated statement of

operations and are developed by analyzing product performance data and historical replacement experience, including comparing actual return management authorizations to revenue.

The following table provides a reconciliation of the change in estimated warranty liabilities for the years ended December 31, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** <br>**2025** | **December 31,**<br>**2024** |
| Balance at beginning of the period | $406 | $514 |
| Provision for warranties during the period | 408 | 311 |
| Settlements made during the period | (366) | (419) |
| Balance at end of the period | $448 | $406 |

---

***Revenue Recognition***

We generate product revenue from sales of the Eversense system and related components and supplies to Ascensia, through the Commercialization Agreement (amended effective January 1, 2026 in connection with the Master Asset Purchase Agreement), third-party distributors outside the United States and to strategic fulfillment partners in the United States (collectively "Customers"), who then resell the products to health care providers and patients. We are paid for our sales directly to the Customers, regardless of whether or not the Customers resell the products to health care providers and patients. The Company also generates product revenue from sales of the Eversense system and related components and supplies through a consignment model with our network of independent healthcare professionals in the United States and revenue is recognized when the product is consumed by a patient.

Revenue from product sales is recognized at a point in time when the Customers obtain control of our product based upon the delivery terms as defined in the contract at an amount that reflects the consideration which we expect to receive in exchange for the product. Contracts with our distributors contain performance obligations, mostly for the supply of goods, and is typically satisfied upon transfer of control of the product. Customer contracts do not include the right to return unless there is a product issue, in which case we may provide replacement product. Product conformity guarantees do not create additional performance obligations and are accounted for as warranty obligations in accordance with guarantee and loss contingency accounting guidance.

Under the consignment model, small quantities of inventory are held at healthcare provider locations to ensure

availability when a patient is identified. No revenue is recognized upon delivery of our products to the healthcare provider locations, as we retain the ability to control the inventory. Rather, revenue is recognized when the product is consumed by a patient. For the twelve months ended December 31, 2025 and December 31, 2024, the Company derived 41% and 15% of total revenue, respectively from consignment sales.

Our contracts may contain some form of variable consideration such as prompt-pay discounts, tier-volume price discounts and for the Commercialization Agreement, revenue share. Variable consideration, such as discounts and prompt-pay incentives, are treated as a reduction in revenue and variable considerations, such as revenue share, is treated as an addition in revenue when the product sale is recognized. The amount of variable consideration that is included in the transaction price may be constrained and is included in revenue only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period, when the uncertainty associated with the variable consideration is subsequently resolved. Estimating variable consideration and the related constraint requires the use of management judgment. Depending on the variable consideration, we develop estimates for the expected value based on the terms of the agreements, historical data, geographic mix, reimbursement rates and market conditions.

Contract assets consist of unbilled receivables from customers and are recorded at net realizable value and relate to the revenue share variable consideration from the Commercialization Agreement.

***Cost of Sales***

The Company uses third-party contract manufacturers to manufacture Eversense and related components and supplies. Cost of sales includes raw materials, contract manufacturing service fees, expected warranty costs, recall costs, product obsolescence, scrap, third-party warehousing, shipping and handling expenses associated with product delivery, and employee-related costs of the internal supply chain and manufacturing team.

***Research and Development Expenses***

Research and development expenses consist of expenses incurred in performing research and development activities in developing Eversense, including clinical trials and feasibility studies, and partnerships for strategic initiatives including insulin delivery and new indications. Research and development expenses include compensation and benefits for research and development employees including stock-based compensation, cost of laboratory supplies, clinical trial and related clinical manufacturing expenses, costs related to regulatory operations, fees paid to contract research organizations and other consultants, and other outside expenses. Research and development expenses are expensed as incurred.

***Selling, General and Administrative Expenses***

Selling, general and administrative expenses consist primarily of salaries, commissions, and other related costs, including stock-based compensation, for personnel in the Company's sales and marketing, executive, finance, accounting, business development, information technology, and human resources functions. Other significant costs include information technology, website design and advertising, educational and promotional materials, tradeshow expenses, marketing programs, facility costs, legal fees relating to patent and corporate matters, and fees for accounting and consulting services.

***Advertising Costs***

The Company expenses advertising costs as they are incurred. Advertising expenses were $11.2 million for the year ended December 31, 2025 and were not significant for the year ended December 31, 2024. These costs are included in "selling, general and administrative expenses" in the accompanying consolidated statements of operations and comprehensive loss.

***Stock*-*Based Compensation***

The Company accounts for stock-based compensation related to stock option grants and restricted stock units under stock incentive plans, purchases under the employee stock purchase plan, as well as inducement stock grants based on the fair value of those awards at the date of grant. The estimated fair value of stock options on the date of grant is amortized on a straight-line basis over the requisite service period of the individual award, which typically equals the vesting period. Forfeitures are accounted for in the period in which they occur.

The Company uses the Black-Scholes-Merton option pricing model ("Black-Scholes Model") to determine the fair value of stock-option awards. Valuation of stock awards requires management to make assumptions and to apply judgment to determine the fair value of the awards. These assumptions and judgments include estimating the fair value of the Company's common stock, the risk-free interest rate, future volatility of the Company's stock price, dividend yields, and the expected life of the stock-option awards. Changes in these assumptions can affect the fair value estimate.

The risk-free interest rate assumption is based on observed interest rates for constant maturity U.S. Treasury securities consistent with the expected life of employee stock options. The expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method. Under the simplified method, the expected life of an option is presumed to be the mid-point between the vesting date and the end of the contractual term. The Company uses the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. Expected volatility is based on the daily closing prices of the Company as well as the daily closing prices of a peer group of comparable publicly traded

companies in similar stages of development. The Company has assumed no dividend yield because it does not expect to pay dividends in the future, which is consistent with its history of not paying dividends.

***Income Taxes***

The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that are in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The measurement of a deferred tax asset is reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Management uses a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return, as well as guidance on derecognition, classification, interest and penalties and financial statement reporting disclosures. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. In the ordinary course of business, transactions occur for which the ultimate outcome may be uncertain. Management does not expect the outcome related to accrued uncertain tax provisions to have a material adverse effect on the Company's financial position, results of operations or cash flows. The Company recognizes interest and penalties accrued on any unrecognized tax positions as a component of income tax expense.

The Company is subject to taxation in various jurisdictions in the United States and remains subject to examination by taxing jurisdictions for the year 2005 and all subsequent periods due to the availability of NOL and tax credit carryforwards. In addition, all of the net operating losses and research and development credit carryforwards that may be used in future years are still subject to adjustment.

***Fair Value of Financial Instruments***

Under ASC 825, the Company is required to disclose the fair value of financial instruments that are not recognized at fair value in the statement of financial position for which it is practicable to estimate that value. The carrying amounts of cash, cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value because of their short maturities. The Company's term loan under the Amended Loan and Security Agreement and warrants is recorded at historical cost, net of discounts. The fair value for debt is estimated by a discounted cash flow model using a discount rate equal to the rate currently offered on similar borrowings.

***Recent Accounting Pronouncements***

*Recently Adopted*

In December 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), the objective of which is to enhance the transparency of income tax disclosures by requiring greater disaggregation of information presented and consistent categories in the rate reconciliation. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, or our fiscal year 2025, using either a prospective or retrospective transition method, and early adoption is permitted. We adopted ASU 2023-09 on December 31, 2025 on a retrospective basis and the adoption resulted in enhanced disclosures as included in Note 16, Income Taxes.

*Not Yet Adopted*

In November 2024, the FASB issued Accounting Standards Update ("ASU") No. 2024-03, Disaggregation of Income Statement Expenses (DISE) ("ASU 2024-03"), the objective of which is to provide greater transparency about an entity's expenses to allow investors to better understand an entity's performance, assessing its prospects for future cash flows, and comparing its performance both over time and with that of other entities. ASU2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027.

The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. The Company is currently evaluating the impact of the new standard on its financial statements and disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Revenue Recognition**

*Revenues by geographic region* 

The following table sets forth net revenues derived from the Company's two primary geographical markets, the United States and outside of the United States, based on the geographic location to which the Company delivers the product, for the years ended December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  |  | **%** |  | **%** |
| *(Dollars in thousands)* | **Amount** | **of Total** | **Amount** | **of Total** |
| **Revenue, net:** |  |  |  |  |
| United States | $27909 | 79.2% | $15278 | 68.0% |
| Outside of the United States | 7348 | 20.8 | 7194 | 32.0 |
| &nbsp;&nbsp;Total | $35257 | 100.0% | $22472 | 100.0% |

---

*Contract Assets*

Contract assets consist of unbilled receivables from customers and are recorded at net realizable value. Included in accounts receivable, net as of December 31, 2025 and December 31, 2024 are unbilled accounts receivable of $2.1 million and less than $0.1 million, respectively, which are related to the timing of billings. Included in accounts receivable – related parties, net are unbilled accounts receivable of $2.0 million and $0.9 million for the periods ended December 31, 2025 and 2024, respectively, which are related to revenue share variable consideration from the Commercialization Agreement. The Company expects to invoice and collect all unbilled accounts receivable within twelve months.

*Concentration of Revenues and Customers*

A significant portion of the Company's revenue is derived from one customer, Ascensia. For the year ended December 31, 2025 and 2024, sales to Ascensia accounted for 53% and 82% of total revenue, respectively.

A portion of the Company's revenue is earned via consignment arrangements with healthcare providers. For the years ended December 31, 2025 and 2024, sales under consignment arrangements accounted for 41% and 15% of total revenue, respectively. Ascensia earns a commission on sales made through these consignment arrangements for the support provided by their sales reps and commercial organization. Revenues for these corresponding periods represent sales of sensors, transmitters and miscellaneous Eversense System components.

*Termination and Transition of the Commercialization Agreement* 

On September 3, 2025, the Company and Ascensia entered into a memorandum of understanding related to the transition of commercial operations for Eversense from Ascensia back to the Company. On December 31, 2025, the parties executed a Master Asset Purchase Agreement, pursuant to which the Company acquired certain U.S. commercial assets and assumed certain related liabilities, with the transaction closing on January 1, 2026. In connection with the agreement, the parties entered into an Amended and Restated Collaboration and Commercialization Agreement (the "A&R Commercialization Agreement"), which terminated Ascensia's rights to market Eversense products in the United States and made Ascensia's European commercialization rights non-exclusive.

Following the U.S. Closing, Ascensia has no further rights to revenues from sales of Eversense products in the United States, and effective January 1, 2026, the Company is entitled to 100% of revenues from sales in the European

Territories, subject to transitional arrangements. As a result of the termination and modification of the arrangement, the Company reassessed its remaining performance obligations and adjusted related contract assets and contract liabilities in accordance with ASC 606. In connection with the termination, the Company accepted the return of certain unsold inventory held by Ascensia, reversed $0.4 million of revenue, and recorded the returned inventory at its estimated net realizable value.

**5. Net Loss per Share**

Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. An aggregate of 4,197,554 shares of common stock issuable upon the exercise of the PHC Exchange Warrant Shares and the Purchase Warrant held by PHC are included in the number of outstanding shares used for the computation of basic net loss per share for both years presented. Since the shares are issuable for little or no consideration, sometimes referred to as "penny warrants", they are considered outstanding in the context of earnings per share, as discussed in ASC 260-10-45-13.

Dilutive net loss per share is computed using the weighted average number of common shares outstanding during the period and, when dilutive, potential common share equivalents. Potentially dilutive common shares consist of shares issuable from restricted stock units, stock options, warrants and the Company's convertible instruments. Potentially dilutive common shares issuable upon vesting of restricted stock units and exercise of stock options and warrants are determined using the average share price for each period under the treasury stock method. Potentially dilutive common shares issuable upon conversion of the Company's convertible instruments are determined using the if converted method. The if-converted method assumes conversion of convertible securities at the beginning of the reporting period. Interest expense, dividends, and the changes in fair value measurement recognized during the period are added back to the numerator. The denominator includes the common shares issuable upon conversion of convertible securities.

In periods of net loss, all potentially dilutive common shares are excluded from the computation of the diluted net loss per share for those periods, as the effect would be anti-dilutive.

*(Dollars, in thousands, except per share amounts)* 

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Net loss | $(69113) | $(78616) |
| Basic weighted average common shares outstanding | 41727983 | 31486079 |
| Net loss per share:  |  |  |
| &nbsp;&nbsp;Basic and diluted | $(1.66) | $(2.50) |

---

Outstanding anti-dilutive securities not included in the diluted net loss per share calculations were as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Stock-based awards | 2596450 | 1816859 |
| 2025 Notes |  | 790659 |
| Series B Preferred Stock |  | 1518603 |
| Warrants | 2357747 | 2357747 |
| Total anti-dilutive shares outstanding | 4954197 | 6483868 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Marketable Securities** 

Marketable securities as of December 31, 2025, were as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | <br>**Amortized**<br>**Cost** | **Gross**<br>**Unrealized**<br>**Gains** | **Gross**<br>**Unrealized**<br>**Losses** | **Estimated**<br>**Market**<br>**Value** |
| Commercial Paper | $6396 | 3 |  | 6399 |
| Corporate debt securities | $12452 | 18 |  | 12470 |
| Government and agency securities | $34879 | 48 |  | 34927 |
| Total | $53727 | $69 | $— | $53796 |

---

There were no marketable securities held as of December 31, 2024.

The following are the scheduled maturities as of December 31, 2025 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Net**<br>**Carrying Amount** | **Fair**<br>**Value** |
| 2026 | $53727 | 53796 |
| Total | $53727 | $53796 |

---

The Company periodically reviews its portfolio of debt securities to determine if any investment is impaired due to credit loss or other potential valuation concerns. For debt securities where the fair value of the investment is less than the amortized cost basis, the Company assesses at the individual security level, for various quantitative factors including, but not limited to, the nature of the investments, changes in credit ratings, interest rate fluctuations, industry analyst reports, and the severity of impairment. Unrealized losses on available-for-sale securities at December 31, 2025 were not significant and were primarily due to changes in interest rates and not due to increased credit risk associated with specific securities. The Company does not intend to sell these impaired investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Inventory, net** 

Inventory, net consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Work-in-process | $3631 | $3213 |
| Finished goods | 2580 | 781 |
| Raw materials | 492 | 427 |
| &nbsp;&nbsp;Total | $6703 | $4421 |

---

The Company recorded $0.7 million and $4.3 million in cost of sales for the years ended December 31, 2025 and 2024, respectively, to reduce the value of inventory for items that are potentially obsolete due to expiry, in excess of product demand, or to adjust costs to their net realizable value. Costs incurred in 2024 were primarily write offs of our existing Eversense E3 systems following obtaining FDA 510(k) clearance to sell Eversense 365. In addition, we incurred $0.6 million in cost of sales for the year ended December 31, 2024 due to impairment losses on prepayments to suppliers as the result of the transition from Eversense E3 to Eversense 365.

The Company capitalizes inventory costs associated with products when future commercialization is considered probable and the future economic benefit is expected to be realized, which is typically when regulatory approval is obtained. As such, the Company began capitalizing costs related to the 365-day product inventory in September 2024 upon successfully obtaining FDA 510(k) clearance. Prior to regulatory approval, the Company expensed all inventory-related costs, including that used for clinical development, to research and development expenses and this has resulted in lower cost of sales as the pre-clearance inventory is sold to customers. The total product costs expensed to research and development expenses prior to the clearance were $1.9 million and $0.3 million for the years ended December 31, 2024 and 2023, respectively. If we were to have included those costs previously expensed as a component of cost of sales, our cost of sales for the year ended December 31, 2025 would have been $0.6 million higher. The previously expensed inventory also reduced our cost of sales for the year ended December 31, 2024 by approximately $1.6 million. As of December 31, 2025, this inventory has been consumed and we do not anticipate an impact on cost of sales for the remainder of 2025 resulting from the sale of pre-approval inventory that was expensed as incurred in previous periods.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Prepaid expenses and other current assets** 

Prepaid expenses and other current assets consisted of the following as of December 31, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Contract manufacturing⁽¹⁾ | $1949 | $2720 |
| Clinical and Preclinical | 883 | 689 |
| Sales and Marketing | 492 | 104 |
| Interest receivable | 311 |  |
| IT and software | 310 | 228 |
| Insurance | 113 | 97 |
| Rent and utilities | 102 | 99 |
| Tax credits receivable<sup>(2)</sup> |  | 1793 |
| Accounting and Audit |  | 71 |
| Other | 206 | 18 |
| &nbsp;&nbsp;Total prepaid expenses and other current assets | $4366 | $5819 |

---

 <br> (1)Includes deposits to contract manufacturers for manufacturing process(2)Refundable employee retention credits, enacted under the CARES Act.

**9. Property, Equipment and Intangible Assets, net**

Property, equipment and intangible assets, net consisted of the following as of December 31, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| **Property and equipment** |  |  |
| Machinery and laboratory equipment | $3904 | $3156 |
| Office furniture and equipment | 611 | 606 |
| Leasehold improvements | 2200 | 2201 |
| **Intangible assets** |  |  |
| Sensor insertion network assets | 800 | 800 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Accumulated depreciation and amortization | (3315) | (2689) |
| Property, equipment and intangible assets, net | $4200 | $4074 |

---

Depreciation and amortization expense for the years ended December 31, 2025 and 2024 was $0.6 million and $0.6 million, respectively. There were no material disposals during 2025. During 2024, the Company disposed of fully depreciated office furniture and equipment in the amount of $0.4 million. There was no gain or loss on these disposals.

In November 2024, the Company acquired the sensor insertion network assets of NPG to directly contract with healthcare providers under our Eon Care subsidiaries. The purchase price of $0.7 million was satisfied in exchange for the settlement of a portion of NPG's outstanding accounts receivable balance. The total value of the sensor insertion network assets of $0.8 million includes the agreed-upon purchase price, the fair value of contingent consideration, and transaction costs. These intangible assets will allow us to further expand patient access to sensor insertion options and enhance convenience. The intangible assets will be amortized over a 5-year period. Over the next five years, the annual amortization expense for these finite life intangible assets will total approximately $0.6 million, as follows: less than $0.2 million in each of the years 2026-2028 and $0.1 million in 2029.

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Accrued Expenses and Other Current Liabilities** 

Accrued expenses and other current liabilities (including related party amounts) consisted of the following as of December 31, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Compensation and benefits | $5271 | $5311 |
| Sales and marketing services | 5028 | 1287 |
| Professional and administration services | 3784 | 1587 |
| Research and development | 2705 | 3416 |
| Contract manufacturing | 1673 | 1813 |
| Operating lease | 496 | 429 |
| Product warranty and replacement obligations | 448 | 406 |
| Interest on notes payable | 298 | 789 |
| Accrued construction and renovations costs | 54 | 397 |
| Other | 532 | 71 |
| &nbsp;&nbsp;Total accrued expenses and other current liabilities | $20289 | $15506 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Leases** 

The Company leases approximately 33,000 square feet of research and office space for its corporate headquarters under a non-cancelable operating lease. In May 2023, the Company amended our lease, extending the lease term through 2033, and obtained a tenant improvement allowance of $1.3 million. The Company accounted for the amendment as a lease modification and remeasured the ROU asset and lease liability as of the amendment date, which resulted in an increase of $2.5 million to the ROU asset, and an increase of $3.8 million to the lease liability. The Company has one option to extend the term for an additional period of five years beginning on June 1, 2033. The rent expense is recognized on a straight-line basis through the end of the lease term, excluding option renewals. The difference between the straight-line rent amounts and amounts payable under the lease is recorded as deferred rent.

Operating lease expense for the years ended December 31, 2025 and 2024 was $0.9 million for each period.

The following table summarizes the lease assets and liabilities as of December 31, 2025 and 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | | **December 31,**  | **December 31,**  |
| <br>**Operating Lease Assets and Liabilities** | <br>**Balance Sheet Classification** | **2025** | **2024** |
| **Assets** |  |  |  |
| Operating lease ROU assets  | Deposits and other assets | $4460 | $4837 |
| **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current operating lease liabilities | Accrued expenses and other current liabilities | $496 | $429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-current operating lease liabilities | Non-current operating lease liabilities | 5289 | 5785 |
| Total operating lease liabilities |  | $5785 | $6214 |

---

The following table summarizes the maturity of undiscounted payments due under operating lease liabilities and the present value of those liabilities as of December 31, 2025 (in thousands):

---

| | |
|:---|:---|
| 2026 | $967 |
| 2027 | 996 |
| 2028 | 1026 |
| 2029 | 1057 |
| Thereafter | 3851 |
| Total | 7897 |
| Less: Present value adjustment | (2112) |
| Present value of lease liabilities | $5785 |

---

The following table summarizes the weighted-average lease term and weighted-average discount rate as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| Remaining lease term (years) | **2025** | **2024** |
| &nbsp;&nbsp;Operating leases | 7.4 | 8.4 |
| Discount rate |  |  |
| &nbsp;&nbsp;Operating leases | 8.5% | 8.5% |

---

During the years ended December 31, 2025 and 2024, the Company made cash payments of $0.9 million for each period included in the measurement of its operating lease liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **401(k) Plan** 

The Company has a defined contribution 401(k) plan available to all full-time employees. Employee contributions are voluntary and are determined on an individual basis subject to the maximum allowable under federal income tax regulations. Participants are fully vested in their contributions. The Company has provided a discretionary match of up to 3% of the participant's contributions. Employer match expenses during the years ended December 31, 2025 and 2024 were $0.5 million for each period. Administrative expenses for the plan, which are paid by the Company, were not material in 2025 or 2024.

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Notes Payable** 

**Term Loans**

*Loan and Security Agreement*

On September 8, 2023 (the "Effective Date"), the Company entered into a loan agreement (the "Loan and Security Agreement") with Hercules Capital, Inc. and its managed fund (collectively, the "Lenders"), pursuant to which the Lenders agreed to make available to Senseonics up to $50.0 million in senior secured term loans (the "Term Loan Facility"), consisting of (i) an initial term loan of $25.0 million, which was funded on the Effective Date, (ii) $10.0 million, which was funded on January 2, 2024 upon meeting certain terms in conditions under the loan agreement, and (iii) $15.0 million which has not been drawn. On September 3, 2025 (the "2025 Effective Date"), the Company amended the Loan and Security Agreement (the "Amended Loan and Security Agreement") with the Lenders and Hercules. The Amended Loan and Security Agreement increased the total loan commitment under the facility from $50.0 million to $100.0 million (collectively, the "2025 Term Loans"). In the Amended Loan and Security Agreement, the undrawn loans increased from $15.0 million to $65.0 million divided into three tranches of up to $10.0 million ("2025 Tranche 2 Loan"), up to $20.0 million ("2025 Tranche 3 Loan") and up to $35.0 million ("2025 Tranche 4 Loan"), respectively,

each of which will become available to Senseonics upon Senseonics' satisfaction of certain terms and conditions set forth in the Amended Loan and Security Agreement. The loans under the Amended Loan and Security Agreement mature on September 3, 2029 (the "Maturity Date").

The loans under the Amended Loan and Security Agreement bear interest at an annual rate equal to the greater of (i) the prime rate as reported in The Wall Street Journal plus 2.40% and (ii) 9.90%. Borrowings under the Amended Loan and Security Agreement are repayable in monthly interest-only payments through October 1, 2027. The interest-only period will be extended through October 2, 2028 if the Company satisfies the conditions for the 2025 Tranche 2 Loan, and through the maturity date of the loan if the Company satisfies the conditions for both the 2025 Tranche 2 Loan and 2025 Tranche 3 Loan. After the interest-only payment period, borrowings under the Amended Loan and Security Agreement are repayable in equal monthly payments of principal and accrued interest until the Maturity Date.

At the Company's option, the Company may prepay all or any portion of the outstanding borrowings under the Amended Loan and Security Agreement, subject to a prepayment fee equal to (a) 3.0% of the principal amount being prepaid if the prepayment occurs within one year of the 2025 Effective Date, 2.0% of the principal amount being prepaid if the prepayment occurs during the second year following the 2025 Effective Date, and 1.00% of the principal amount being prepaid if the prepayment occurs more than two years after the 2025 Effective Date and prior to the Maturity Date. In addition, the Company paid $425,000 in facility fees upon drawing Tranche 1 Loan and Tranche 2 Loan and additional facility fees of $412,500 upon execution of the Amended Loan and Security Agreement. The Company will pay additional facility charges in connection with any borrowing of the 2025 Terms Loans, in the amount of 0.50% of the 2025 Tranche 2 Loan and 2025 Tranche 3 Loan and 1.00% of the 2025 Tranche 4 Loan. The Amended Loan and Security Agreement also provides for an end of term fee in an amount equal to 6.45% of the aggregate principal advances of the 2025 Terms Loans, which fee is due and payable on the earliest to occur of (i) the Maturity Date, (ii) the date the Company prepays the outstanding loans in full, and (iii) the date that the secured obligations become due and payable. The existing end of term fee under the existing Tranche 1 Loan and Tranche 2 Loan remains payable on September 1, 2027 (the original maturity date). The end of term fees are accreted to interest expense over the term of the loans.

The Company's obligations under the Amended Loan and Security Agreement are secured by a first-priority security interest in substantially all of its assets. The Amended Loan and Security Agreement contains a minimum cash covenant that requires the Company to hold unrestricted cash equal to 80% of the total amounts funded under the Amended Loan and Security Agreement, reduced to 55% and 35% subject to achieving certain milestones under the agreement. The Amended Loan and Security Agreement also contains a performance covenant, commencing on January 1, 2026, that requires the Company to achieve certain net product revenue targets on a trailing six-month basis for applicable measuring periods. The performance covenant shall be waived at any time in which either (a) the Company's market capitalization exceeds $550.0 million and the Company maintains unrestricted cash equal to at least 75% of the total amounts funded, or (b) the Company maintains unrestricted cash equal to at least 100% of the total amounts funded.

In addition, the Amended Loan and Security Agreement contains customary representations and warranties and customary affirmative and negative covenants, including, among other things, restrictions on indebtedness, liens, investments, mergers, corporate changes, dispositions, prepayment of other indebtedness, and dividends and other distributions, subject to certain exceptions. The Amended Loan and Security Agreement also contains events of default including, among other things, payment defaults, breach of covenants, material adverse effect, breach of representations and warranties, cross-default to material indebtedness, bankruptcy-related defaults, judgment defaults, revocation of certain government approvals, and the occurrence of certain adverse events. Following an event of default and any applicable cure period, a default interest rate equal to the then-applicable interest rate plus 4.0% may be applied to the outstanding amount, and the Lenders will have the right to accelerate all amounts outstanding under the Loan and Security Agreement, in addition to other remedies available to them as secured creditors of the Company. The Company was in compliance with all covenants as of December 31, 2025.

In addition, in connection with the issuance of the Tranche 1 Loan, the Company issued warrants to the Lenders (collectively, the "Tranche 1 Warrants") to acquire an aggregate of 41,619 shares of the Company's common stock at an exercise price of $12.01 per share (the "Tranche 1 Warrant Shares"). For the Tranche 2 Loan the Company issued additional warrants to the Lenders (collectively, the "Tranche 2 Warrants") to acquire an aggregate of 17,395 shares at an

exercise price of $11.50 per share (the "Tranche 2 Warrant Shares"). On the 2025 Effective date, the exercise price of all outstanding warrants was reduced to $9.09 per share (the "Amended Exercise Price"). The Tranche 1 Warrant Shares and Tranche 2 Warrant Shares may be exercised through the earlier of (i) the seventh anniversary of the initial issuance date and (ii) the consummation of certain acquisition transactions involving the Company, as set forth in the Warrants. The number of Tranche 1 Warrant Shares and Tranche 2 Warrant Shares for which the Tranche 1 Warrants and Tranche 2 Warrants are exercisable, and the associated exercise price are subject to certain customary proportional adjustments for fundamental events, including stock splits and reverse stock splits, as set forth in the Warrants. The proceeds from the Loan and Security Agreement were allocated between the Tranche 1 Loan and the Tranche 1 Warrants based on their respective fair value of $25.0 million and $0.4 million, and the amount allocated to the Tranche 1 Warrants was recorded in equity resulting in a debt discount to the Tranche 1 Loan. The Company estimated the fair value of the Tranche 2 Warrants as of the grant date to be $0.1 million and classified the full amount in equity. As a result of the Amended Exercise Price, the value of all outstanding warrants was reduced by $0.2 million. The value of the warrants are amortized as additional interest expense over the term of the Amended Loan and Security Agreement using the effective interest method.

In connection with Loan and Security Agreement, the Company incurred $1.1 million in debt issuance costs and debt discounts which are netted against the principal balance of the initial term loan and amortized as interest expense over the term of the loan. The Company incurred additional debt discounts of $0.2 million under the Amended Loan and Security Agreement. The Company evaluated Amended Loan and Security Agreement in accordance with ASC 470-50, Debt, and determined that the amendment resulted in a debt modification. Therefore, no loss on debt extinguishment was recognized. The unamortized debt issuance costs and debt discounts are amortized over the revised term of the loan using an effective interest rate of 13.10%. The fair value of the Company's Loan and Security Agreement was $35.7 million as of December 31, 2025.

Pursuant to the Amended Loan and Security Agreement, the Company also agreed to issue additional seven year term warrants upon the funding of the 2025 Tranche 2 Loan, 2025 Tranche 3 Loan, and 2025 Tranche 4 Loan which warrants would be exercisable for an aggregate number of shares equal to 2.0% of the funded loan amount divided by the exercise price equal to the three-day volume-weighted average price at the time of each advance.

**Convertible Notes**

*2025 Notes*

In July 2019, the Company issued $82.0 million in aggregate principal amount of senior convertible notes that matured on January 15, 2025 (the "2025 Notes"), unless earlier repurchased or converted. The 2025 Notes were convertible, at the option of the holders, into shares of the Company's common stock, at an initial conversion rate of 37.88 shares per $1,000 principal amount of the 2025 Notes (equivalent to an initial conversion price of approximately $26.40 per share). The 2025 Notes also contained an embedded conversion option requiring bifurcation as a separate derivative liability, along with the fundamental change make-whole provision and the cash settled fundamental make-whole shares provision.

On April 21, 2020, $24.0 million aggregate principal of the Company's outstanding 2025 Notes held by Highbridge Capital Management, LLC ("Highbridge") were settled pursuant to an exchange agreement. Between September 3, 2020 and January 27, 2021, $6.8 million in aggregate principal of the 2025 Notes were converted into 257,613 shares of common stock.

On August 10, 2023, the Company entered into separate, privately negotiated exchange agreements (the "Exchange Agreements") with a limited number of holders (the "Noteholders") of the Company's outstanding 2025 Notes. Under the terms of the Exchange Agreements, the Noteholders agreed to exchange with the Company (the "Exchanges") up to $30.8 million in aggregate principal amount of the 2025 Notes for a combination of $7.5 million of cash and newly issued shares of common stock (the "Exchanged Shares"). The number of Exchanged Shares was determined based upon the volume-weighted average price per share of the common stock during a 15-day averaging period commencing on August 11, 2023 and ending August 31, 2023. Based on the volume-weighted average price per share of the common stock during the averaging period, a total of 1.76 million shares of common stock were issued in

the Exchanges. The Exchanges were settled on the initial share issuance date of August 14, 2023 and the final settlement date of September 5, 2023.

Following the Exchanges, approximately $20.4 million aggregate principal amount of the 2025 Notes remained outstanding. On January 15, 2025, the Company repaid the outstanding principal and accrued interest for the 2025 Notes in the full amount of $20.9 million. The conversion option expired unexercised.

The following carrying amounts are outstanding under the Company's notes payable as of December 31, 2025 and December 31, 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | Principal ($) | Debt (Discount) Premium ($)<sup>1</sup> | Issuance Costs ($) | Carrying Amount ($) |
| Amended Loan and Security Agreement | 35000 | 753 | (167) | 35586 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | Principal ($) | Debt (Discount) Premium ($)<sup>1</sup> | Issuance Costs ($) | Carrying Amount ($) |
| 2025 Notes | 20399 | (256) | (5) | 20138 |
| Loan and Security Agreement | 35000 | (49) | (248) | 34703 |

---

(1) Includes accretion of end of term fees payable at maturity

Interest expense related to the notes payable for the periods presented below is as follows (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Twelve Months Ended December 31, 2025** | **Twelve Months Ended December 31, 2025** | **Twelve Months Ended December 31, 2025** | **Twelve Months Ended December 31, 2025** | **Twelve Months Ended December 31, 2025** |
|  | Interest Rate | Interest ($) | Debt Discount & Fees ($)<sup>1</sup> | Issuance Costs ($) | Total Interest Expense ($) |
| 2025 Notes | 5.25% | 45 | 256 | 4 | 305 |
| Loan and Security Agreement | 9.90% | 2339 | 650 | 65 | 3054 |
| Amended Loan and Security Agreement | 9.90% | 1174 | 401 | 17 | 1592 |
| Total |  | 3558 | 1307 | 86 | 4951 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(1) Includes accretion of end of term fees payable at maturity

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Twelve Months Ended December 31, 2024** | **Twelve Months Ended December 31, 2024** | **Twelve Months Ended December 31, 2024** | **Twelve Months Ended December 31, 2024** | **Twelve Months Ended December 31, 2024** |
|  | Interest Rate | Interest ($) | Debt Discount & Fees ($)<sup>1</sup> | Issuance Costs ($) | Total Interest Expense ($) |
| 2025 Notes | 5.25% | 1071 | 2833 | 47 | 3951 |
| Loan and Security Agreement | 9.90% | 3520 | 883 | 83 | 4486 |
| Total |  | 4591 | 3716 | 130 | 8437 |

---

The following are the scheduled maturities of the Company's notes payable (including end of term fees) as of December 31, 2025 (in thousands):

---

| | |
|:---|:---|
| 2027 | $6622 |
| 2028 | 17829 |
| 2029 | 15239 |
| Total | $39690 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Stockholders' Equity (Deficit)** 

In connection with the Company's acquisition of Senseonics, Incorporated in December 2015 (the "Acquisition"), (1) all outstanding shares of common stock of Senseonics, $0.01 par value per share, were exchanged for 97,796 shares of the Company's common stock, $0.001 par value per share (reflecting an exchange ratio of 2.0975), (2) all outstanding shares of preferred stock were converted into shares of common stock of Senseonics, and exchanged into

2,765,084 shares of the Company's common stock, $0.001 par value per share, and (3) all outstanding options and warrants to purchase shares of common stock of Senseonics were exchanged for or replaced with options and warrants to acquire shares of the Company's common stock using the same exchange ratio.

**Common Stock** 

At each December 31, 2025 and December 31, 2024, the Company's authorized capital stock included 70,000,000 shares of common stock, par value $0.001 per share. The Company had 41,265,778 and 29,767,561 shares of common stock issued and outstanding at December 31, 2025 and December 31, 2024, respectively.

**Preferred Stock**

As of December 31, 2025 and 2024, the Company's authorized capital stock included 5,000,000 shares of undesignated preferred stock, par value $0.001 per share. The Company had 12,000 shares of Series B Preferred Stock outstanding as of December 31, 2024 which was converted in full into 1,518,602 shares of common stock during the first quarter of 2025. As of December 31, 2025, the Company had no shares of preferred stock outstanding.

*Voting Rights*

The holders of Series B Preferred Stock generally were entitled to vote with the holders of the shares of common stock on all matters submitted for a vote of holders of shares of common stock (voting together with the holders of shares of common stock as one class) on an as-converted basis and were entitled to a number of votes per share equal to $1,000 divided by $24.8, subject to a cap of 29.0% of total voting power.

*Dividends*

The Series B Preferred Stock was not entitled to dividends.

*Conversion Rights*

Each share of Series B Preferred Stock was initially convertible into the number of shares of the common stock of the Company, $0.001 par value per share, equal to $1,000 divided by the conversion price of $7.90 per share, subject to customary anti-dilution adjustments, including in the event of any stock split.

**Public and Registered Direct Offerings**

On May 15, 2025, the Company entered into the Underwriting Agreement related to the Public Offering with several underwriters for the sale of 5,000,000 shares of its common stock at the Public Offering Price. Under the terms of the Underwriting Agreement, the Company also granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock at the Public Offering Price, which the underwriters exercised in full. The Company received aggregate gross proceeds from the Public Offering of $57.5 million. The Company also entered into a securities purchase agreement with Abbott pursuant to which the Company agreed to issue and sell 2,026,963 shares of its common stock substantially concurrently with the Public Offering, at the Public Offering Price, to Abbott for an aggregate purchase price of approximately $20.3 million in the Private Placement. The Public Offering and Private Placement closed on May 19, 2025 and May 20, 2025, respectively, and the Company received net proceeds of approximately $52.1 million and $20.1 million, respectively, after deducting underwriting discount, commissions, and offering expenses.

On October 24, 2024, the Company completed a registered direct securities offering (the "2024 Registered Direct Offering") to certain institutional investors in which we issued and sold 2,285,714 shares of common stock at $7.00 per share and simultaneously issued warrants ("PP Warrants") to these investors in a private placement to purchase an aggregate of 2,285,714 shares of common stock at an exercise price of $7.00 per share. The PP Warrants were non-exercisable for the first six months after issuance and expire on April 29, 2030. The offering closed on October 28, 2024,

and the Company received proceeds of approximately $14.8 million after payment of fees to the placement agent, but before payment of any additional expenses incurred by the Company in connection with the transaction.

**ATM Offerings**

On August 6, 2025, the Company entered into the Sales Agreement with TD Cowen, under which the Company could offer and sell, from time to time, at its sole discretion, shares of its common stock having an aggregate offering price of up to $100.0 million through TD Cowen as its sales agent in an "at the market" offering, or ATM offering. TD Cowen will receive commissions up to 3.0% of the gross proceeds of any common stock sold through TD Cowen under the Sales Agreement. The shares were offered and sold pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on August 6, 2025. During the twelve months ended December 31, 2025, the Company received approximately $2.4 million proceeds from the sale of 334,330 shares under the Sales Agreement, after deducting sales commissions and offering expenses.

In August 2023, the Company entered into an Equity Distribution Agreement (the "Equity Distribution Agreement") with Goldman Sachs & Co. LLC ("GS"), under which the Company could offer and sell, from time to time, at its sole discretion, shares of its common stock having an aggregate offering price of up to $106.6 million through GS as its sales agent in an "at the market" offering. GS received commissions up to 3.0% of the gross proceeds of any common stock sold through GS under the Equity Distribution Agreement. The shares were offered and sold pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on August 10, 2023. On October 24, 2024, the Company amended the Equity Distribution Agreement with GS to reduce the maximum amount of shares issuable thereunder to $55.0 million. On May 15, 2025, in connection with the Public Offering and Private Placement, the Equity Distribution Agreement was terminated. At the time of termination of the Equity Distribution Agreement on May 15, 2025, the Company had received approximately $30.8 million in net proceeds from the sale of 2,006,528 shares under the Equity Distribution Agreement, after deducting sales commissions and offering expenses.

**Stock Purchase Warrants**

The table below summarizes the warrant activity for the year ended December 31, 2025 (in thousands). This table does not include the PHC Exchange Warrant or the PHC Purchase Warrant (described below). Such warrants are pre-funded and excluded from the table due to their nominal exercise price of $0.02 per warrant share.

---

| | | | |
|:---|:---|:---|:---|
|  | Shares | Exercise price (per share) | Weighted average exercise price (per share) |
| &nbsp;&nbsp;Outstanding, December 31, 2024 | 2357747 | $7.00 to $77.20 | $7.40 |
| &nbsp;&nbsp;Granted |  |  |  |
| &nbsp;&nbsp;Exercised |  |  |  |
| &nbsp;&nbsp;Expired |  |  |  |
| &nbsp;&nbsp;Outstanding and Exercisable, December 31, 2025 | 2357747 | $7.00 to $77.20 | $7.40 |
| &nbsp;&nbsp;Exercisable, December 31, 2025 | 2357747 | $7.00 to $77.20 | $7.40 |
| &nbsp;&nbsp;Weighted Average Remaining Life, December 31, 2025 (years) | 4.32 |  |  |

---

On June 30, 2016, we entered into a loan agreement with Oxford Finance and Silicon Valley Bank (collectively, the "Lenders") and issued to the Lenders 10-year stock purchase warrants to purchase an aggregate of 5,830, 3,152 and

4,033 shares of common stock at an exercise price of $77.20, $47.60 and $37.20 per share, respectively ("Oxford/SVB Warrants"). The Oxford/SVB Warrants expire on June 30, 2026, November 22, 2026 and March 29, 2027, respectively.

On March 13, 2023, we issued and sold to PHC a warrant to purchase 771,288 shares of common stock for $15.0 million (the "Purchase Warrant"). The Purchase Warrant is a "pre-funded" warrant with a nominal exercise price of $0.02 per share ("the Purchase Warrant Shares"). All or any part of the Purchase Warrant is exercisable by PHC at any time and from time to time.

In March 2023, we entered into an exchange agreement with PHC, pursuant to which PHC exchanged $35.0 million aggregate principal amount of convertible notes due October 31, 2024 (the "PHC Notes"), including all accrued and unpaid interest thereon, for a warrant (the "PHC Exchange Warrant") to purchase up to 3,426,266 shares of common stock (the "PHC Exchange Warrant Shares"). The PHC Exchange Warrant is a "pre-funded" warrant with a nominal exercise price of $0.02 per PHC Exchange Warrant Share. All or any part of the PHC Exchange Warrant is exercisable by PHC at any time and from time to time.

On September 8, 2023, we entered into the Loan and Security Agreement with several lenders and issued the Tranche 1 Warrants to acquire an aggregate of 41,619 shares of common stock at an initial exercise price of $12.01 per share. The Tranche 1 Warrants may be exercised through the earlier of (i) September 8, 2030 and (ii) the consummation of certain acquisition transactions involving the company, as set forth in the warrant agreement. On September 3, 2025, the Company and the lenders entered into an amendment to reduce the exercise price to $9.09 per share. All other terms of the warrants, including the expiration date and number of shares issuable upon exercise, remain unchanged.

On January 2, 2024, we issued the Tranche 2 Warrants to acquire an aggregate of 17,395 shares at an initial exercise price of $11.50 per share. The Tranche 2 Warrants may be exercised through the earlier of (i) January 2, 2031 and (ii) the consummation of certain acquisition transactions involving the company, as set forth in the warrant agreement. On September 3, 2025, the Company and the lenders entered into an amendment to reduce the exercise price to $9.09 per share. All other terms of the warrants, including the expiration date and number of shares issuable upon exercise, remain unchanged.

On October 24, 2024, in connection with the 2024 Registered Direct Offering, the Company issued to the investors in the offering the PP Warrants to purchase an aggregate of 2,285,714 shares of common stock at an exercise price of $7.00 per share. The PP Warrants were non-exercisable for the first six months after issuance and expire on April 29, 2030.

**15. Stock-Based Compensation**

*2015 Plan*

In December 2015, the Company adopted the 2015 Equity Incentive Plan (the "2015 Plan"), under which incentive stock options, non-qualified stock options and restricted stock units may be granted to the Company's employees and certain other persons, such as officers and directors, in accordance with the 2015 Plan provisions. In February 2016, the Company's Board of Directors adopted, and the Company's stockholders approved, an Amended and Restated 2015 Equity Incentive Plan (the "Amended and Restated 2015 Plan"), which became effective on February 20, 2016. The Company's Board of Directors may terminate the Amended and Restated 2015 Plan at any time. Options granted under the Amended and Restated 2015 Plan expire ten years after the date of grant.

Pursuant to the Amended and Restated 2015 Plan, the number of shares of the Company's common stock reserved for issuance automatically increases on January 1 of each year, ending on January 1, 2026, by 3.5% of the total number of shares of its common stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares as may be determined by its Board of Directors. As of December 31, 2025, 1,539,625 shares remained available for grant under the Amended and Restated 2015 Plan. Effective January 1, 2026, by virtue of the automatic increase described above, the total number of shares remaining available for grant under the Amended and Restated 2015 Plan was increased to 2,983,927 shares.

*Inducement Plan*

On May 30, 2019, the Company adopted the Senseonics Holdings, Inc. Inducement Plan (the "Inducement Plan") pursuant to which the Company reserved 90,000 shares of the Company's common stock for issuance. The only persons eligible to receive grants of awards under the Inducement Plan are individuals who satisfy the standards for inducement grants in accordance with Nasdaq Listing Rule 5635(c)(4), including individuals who were not previously an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to such persons entering into employment with the Company. An "Award" is any right to receive the Company's common stock pursuant to the Inducement Plan, consisting of non-statutory options, restricted stock unit awards and other equity incentive awards. As of December 31, 2025, 26,875 shares remained available for grant under the Inducement Plan.

*Commercial Equity Plan*

On January 30, 2023, the Company adopted the Senseonics Holdings, Inc. 2023 Commercial Equity Plan (the "Commercial Equity Plan"), pursuant to which the Company reserved 500,000 shares of common stock for issuance. Eligible recipients under the plan are non-employees of Senseonics who assist with the commercialization of Eversense. An "Award" is any right to receive the Company's common stock pursuant to the Commercial Equity Plan, consisting of non-statutory options and restricted stock unit awards. As of December 31, 2025, 315,378 shares remained available for grant under the Commercial Equity Plan.

*2016 Employee Stock Purchase Plan*

In February 2016, the Company adopted the 2016 Employee Stock Purchase Plan (the "2016 ESPP"). The 2016 ESPP became effective on March 17, 2016. The maximum number of shares of common stock that may be issued under the 2016 ESPP was initially 40,000 shares and will automatically increase on January 1 of each year, beginning on January 1, 2017 and ending on and including January 1, 2026, by 1.0% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year; provided, however, the Board of Directors may act prior to the first day of any calendar year to provide that there will be no January 1 increase in the share reserve for such calendar year or that the increase in the share reserve for such calendar year will be a lesser number of shares of common stock. At December 31, 2025 there were 1,404,389 shares of common stock available for issuance under the 2016 ESPP. Effective January 1, 2026, by virtue of the automatic increase described above, the total number of shares remaining available for issuance under the 2016 ESPP was increased to 1,817,046 shares.

The 2016 ESPP permits participants to purchase shares of the Company's common stock through payroll deductions of up to 15% of their earnings. Unless otherwise determined by the administrator, the purchase price of the shares will be 85% of the lower of the fair market value of common stock on the first day of an offering or on the date of purchase. Participants may end their participation at any time. The Company initiated its first 2016 ESPP offering period on August 1, 2019. On January 31, 2025, there were 174,945 shares purchased in connection with the offering period. On July 31, 2025, there were 211,966 shares purchased in connection with the offering period. The 2016 ESPP is considered compensatory for financial reporting purposes.

**Stock Options**

The Company recognizes the cost of employee and non-employee services received in exchange for awards of equity instruments, such as stock options, based on the fair value of those awards at the date of grant. The estimated fair value of stock options on the date of grant is amortized on a straight-line basis over the requisite service period for each separately vesting portion of the award for those awards with service conditions only. For awards that also contain performance conditions, expense is recognized beginning at the time the performance condition is considered probable of being met over the remaining vesting period.

Stock option activity under the plans during the years ended December 31, 2025 and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Number of**<br>**Shares in**<br>**(in thousands)** | <br>**Weighted-**<br>**Average**<br>**Exercise**<br>**Price** | **Weighted-**<br>**Average**<br>**Remaining**<br>**Contractual**<br>**Life (in years)** |
| Options outstanding as of December 31, 2023 | 687 | $42.40 | 5.18 |
| Options granted | 161 | 10.40 |  |
| Options exercised | (1) | 9.40 |  |
| Options canceled/forfeited | (133) | 14.80 |  |
| Options outstanding as of December 31, 2024 | 714 | 40.20 | 4.66 |
| Options granted | 863 | 9.70 |  |
| Options exercised |  |  |  |
| Options canceled/forfeited | (63) | 38.81 |  |
| Options outstanding as of December 31, 2025 | 1514 | $21.67 | 7.32 |
| Options vested and expected to vest as of December 31, 2025 | 1514 | $21.67 |  |
| Options exercisable as of December 31, 2025 | 631 | $41.16 | 4.04 |

---

The weighted average grant-date fair value of stock option awards granted in 2025 and 2024 was $6.88 and $7.80 per share, respectively.

There were no options exercised for the year ended December 31, 2025. For the year ended December 31, 2024, 593 options were exercised with an aggregate intrinsic value at the time of exercise of less than $0.1 million.

The total fair value of options that vested during 2025 and 2024 was approximately $1.5 million and $0.2 million, respectively.

The aggregate intrinsic value of the options currently exercisable at December 31, 2025 was $0.00. The aggregate intrinsic value of stock options outstanding at December 31, 2025 less than $0.1 million, which approximated the aggregate intrinsic value of options vested and expected to vest as of December 31, 2025.

The weighted average grant date fair value of the unvested stock option awards outstanding at December 31, 2025 and 2024 was $6.98 and $8.40 per share, respectively. The weighted average grant date fair value of the stock option awards vested, exercised, and forfeited/cancelled for the year ended December 31, 2025 was $7.85, $0.00 and $9.80 per share, respectively.

Fair value is estimated at each grant date under the plans using the Black-Scholes Model with assumptions summarized in the following table:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Expected term of options (in years) | 6.5 | 6.5 | 6.0 | 6.5 |
| Expected volatility rate | 74.93 | 96.21% | 83.37 | 84.99% |
| Risk-free interest rate | 3.84 | 4.45% | 3.54 | 4.45% |
| Expected dividend yield |  | 0% |  | 0% |

---

The risk-free interest rate assumption is based upon observed U.S. treasury yields for a period consistent with the expected term of the Company's employee and non-employee stock options. The expected term is the period of time for which the stock-based options are expected to be outstanding. The expected term is determined using the "simplified method" which is defined as the mid-point between the vesting date and the end of the contractual term. The Company does not pay a dividend, and is not expected to pay a dividend in the foreseeable future.

The Company utilizes comparable public companies' volatility rates as a proxy of its expected volatility for purposes of the Black-Scholes Model. Stock-based compensation expense is recorded monthly and is adjusted periodically for actual forfeitures as they occur.

Stock-based compensation expense for employee and non-employee stock options for each of the years ended December 31, 2025 and 2024, is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Cost of sales | $47 | $44 |
| Research and development | 309 | 230 |
| Selling, general and administrative | 1354 | 472 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense related to stock options | $1710 | $746 |

---

As of December 31, 2025, there was $5.8 million of total unrecognized compensation cost related to non-vested stock option awards, which is expected to be recognized over a weighted average period of 3.21 years.

**Restricted Stock Units** 

The Company issued a total of 586,383 and 962,142 restricted stock units to employees of the Company during 2025 and 2024, respectively, as incentive compensation. Restricted stock units granted to employees in 2025 and 2024 vest in eight equal installments beginning with an initial accelerated vesting tranche in the month following the grant, followed by seven vesting dates every six months.

The Company issued 42,587 and 103,255 restricted stock units to members of the Board of Directors during 2025 and 2024, respectively, under the non-employee director compensation policy. These grants includes an annual grant that vests on the earlier of the first anniversary of the grant date or the next year's annual meeting of stockholders and grants issued in lieu of compensation that immediately vest upon issuance. New members of the Board of Directors may be granted initial restricted stock units which vest over a three-year period.

Restricted stock units activity under the Plans during the years ended December 31, 2025 and 2024, is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Number of**<br>**Shares in**<br>**(in thousands)** | <br>**Weighted-**<br>**Average**<br>**Exercise**<br>**Price** | **Weighted-**<br>**Average**<br>**Remaining**<br>**Contractual**<br>**Life (in years)** |
| RSU's outstanding as of December 31, 2023 | 694 | $17.80 | 2.29 |
| Granted | 1066 | 9.02 |  |
| Vested | (574) | 14.82 |  |
| Forfeited | (83) | 12.02 |  |
| RSU's outstanding as of December 31, 2024 | 1103 | 11.31 | 2.23 |
| Granted | 629 | 12.38 |  |
| Vested | (637) | 11.98 |  |
| Forfeited | (13) | 10.08 |  |
| RSU's outstanding as of December 31, 2025 | 1082 | $11.55 | 1.90 |

---

For the years ended December 31, 2025 and 2024, the weighted average grant date fair value of restricted stock units granted, vested, and forfeited is presented above. The weighted average grant date fair value of restricted stock units outstanding was $11.55 per share as of December 31, 2025 and $11.31 per share as of December 31, 2024.

For the years ended December 31, 2025 and 2024, 637 and 574, restricted stock units were vested, respectively, with an aggregate intrinsic value at the time of vest of $5.6 million and $4.3 million, respectively.

The total fair value of the restricted stock units that vested during 2025 and 2024 were approximately $5.6 million and $8.5 million, respectively.

The aggregate intrinsic value of the restricted stock units currently outstanding at December 31, 2025 was $6.0 million. Employee stock-based compensation expense for restricted stock units granted to employees for the years ended December 31, 2025 and 2024, respectively, is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Cost of sales | $223 | $110 |
| Research and development | 2132 | 1745 |
| Selling, general and administrative | 6088 | 6624 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense related to RSUs | $8443 | $8479 |

---

As of December 31, 2025, there was $10.5 million of total unrecognized compensation cost related to non-vested restricted stock units, which is expected to be recognized over a weighted average period of 1.9 years.

&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Income Taxes** 

No provision for U.S. federal or state income taxes has been recorded, and therefore no income taxes were paid, as the Company has incurred net operating losses since inception and provides a full valuation allowance against its net deferred income tax assets. The tax effect of temporary differences that give rise to the net deferred income tax assets (liabilities) at December 31, 2025 and 2024 is as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| <br>**Deferred income tax assets (liabilities)** | **2025** | **2024** |
| Deferred Tax Assets: |  |  |
| &nbsp;&nbsp;Net operating loss carryforwards | $174442 | $152908 |
| &nbsp;&nbsp;Capitalized start-up costs | 4294 | 4999 |
| &nbsp;&nbsp;Research and development credit carryforwards | 18108 | 17057 |
| &nbsp;&nbsp;Research and development expenditures | 14851 | 20490 |
| &nbsp;&nbsp;Stock-based compensation | 1809 | 1501 |
| &nbsp;&nbsp;Other | 4001 | 4146 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross total deferred tax assets | 217505 | 201101 |
| &nbsp;&nbsp;Valuation allowance | (216069) | (199455) |
| Total deferred tax assets | $1436 | $1646 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;Right of use asset amortization | (1436) | (1601) |
| &nbsp;&nbsp;Amortization of debt discount |  | (45) |
| Total deferred tax liabilities | (1436) | (1646) |
| Net deferred tax assets (liabilities) | $— | $— |

---

The net change in valuation allowance for the years ended December 31, 2025 and 2024 was a net increase of $16.6 million and $19.9 million, respectively.

The increase in valuation allowance is primarily due to deferred tax assets generated from net operating losses and tax credits carried forward in 2025. This increase in valuation allowance is based on management's assessment that it is not more likely than not that the Company will realize these deferred tax assets. At December 31, 2025, the Company had gross federal and state NOL carryforwards of $791.3 million and $134.9 million, respectively and research and experimental credit carryforwards of $18.1 million. Research and experimental credit carryforwards will expire in varying amounts between 2026 and 2045. Federal NOL carryforwards in the amount of $190.1 million will expire in varying amounts between 2026 and 2037. Federal NOL carryforwards incurred in tax years 2018 and forward have an indefinite carryforward period, although limited to eighty percent of taxable income annually. State NOLs have various expiration dates beginning in 2032. Under the provisions of the Internal Revenue Code, certain substantial changes in the Company's

ownership may result in a limitation on the amount of NOL carryforwards and research and experimental credit carryforwards which can be available in future years. The Company has not yet determined whether such an ownership change has occurred. In order to make this determination, the Company will need to complete a Section 382/383 analysis regarding the limitation of the carryforwards.

A reconciliation of the Company's estimated U.S. federal statutory rate to the Company's effective income tax rate for the years ended December 31, 2025 and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Total** | **%** | **Total** | **%** |
| Tax at U.S. Federal Statutory rate | $(14514) | 21.00% | $(16509) | 21.00% |
| State and local income taxes⁽¹⁾  | (3) | 0.00 |  | 0.00 |
| Tax credits |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research credit | (1314) | 1.90 | (2164) | 2.75 |
| Changes in valuation allowances | 13318 | (19.27) | 16042 | (20.41) |
| Nontaxable or nondeductible items |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity based compensation | 969 | (1.40) | 874 | (1.11) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 685 | (0.99) | 667 | (0.85) |
| Changes in unrecognized tax benefits | 263 | (0.38) | 433 | (0.55) |
| Other adjustments | 592 | (0.86) | 657 | (0.84) |
| Income tax expense | $— | 0.00% | $— | 0.00% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Although state and local income taxes are a net zero due to the Company's valuation allowance, Maryland made up the majority (greater than 50 percent) of the tax effect in this category for the year ended December 31, 2025 with California making up the majority for the year ended December 31, 2024.

Income before income taxes by source for the years ended December 31, 2025 and 2024 was as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Domestic | $(69113) | $(78616) |
| Foreign |  |  |
| Income before income taxes | $(69113) | $(78616) |

---

Deferred income taxes reflect temporary differences in the recognition of revenue and expense for tax reporting and financial statement purposes. Deferred tax assets (liabilities) are adjusted for changes in tax laws or tax rates of the various tax jurisdictions as of the enacted date.

A breakdown of the Company's uncertain tax positions during 2025 and 2024 is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Gross unrecognized tax benefit at beginning of year | $4264 | $3832 |
| Increase from tax positions taken in prior years |  |  |
| Increase from tax positions in current year | 331 | 497 |
| Lapse of statute of limitations / expiration | (68) | (65) |
| Gross unrecognized tax benefit at end of year | $4527 | $4264 |

---

If recognized, the entire amount of gross unrecognized tax benefit would favorably affect the effective income tax rate, although, due to the Company's valuation allowance there would be no net impact. The Company does not expect a significant change in its unrecognized tax positions to occur in the next twelve months.

The Company's U.S. Federal and state income tax returns from 2004 to 2025 remain subject to examination by the tax authorities. The Company's prior tax years remain open for examination, even though the statute of limitations has expired, due to the net operating losses and credits carried forward for use in prospective years.

.

**17. Related Party Transactions**

PHC has a noncontrolling ownership interest in the Company. In addition, PHC previously appointed two members on the Company's board of directors (which appointment was terminated on January 1, 2026). The Company previously entered into a financing agreement with PHC on August 9, 2020 (the "PHC Notes"). Ascensia, through the ownership interests of its parent company, PHC, is a related party.

Revenue from Ascensia for the years ended December 31, 2025 and 2024 was $18.2 million and $18.5 million, respectively. Ascensia earned commissions of $3.7 million and $1.2 million on sales made through our consignment channel during the years ended December 31, 2025 and 2024, respectively.

The amount due from Ascensia as of December 31, 2025 and 2024, was $5.3 million and $4.9 million, respectively. The amount due to Ascensia as of December 31, 2025 and 2024 was $5.2 million and $1.8 million, respectively. We also purchase certain medical supplies from Ascensia for our clinical trials. We paid Ascensia less than $0.1 million during each of the twelve months ended December 31, 2025 and 2024 under this arrangement.

As discussed in Note 4, on September 3, 2025 the Company and Ascensia signed a MOU related to the transition of commercial operations for Eversense from Ascensia back to the Company. On December 31, 2025, the parties executed a Master Asset Purchase Agreement, pursuant to which the Company acquired certain U.S. commercial assets and assumed certain related liabilities, with the transaction closing on January 1, 2026. In connection with the Master Asset Purchase Agreement, the parties entered into an A&R Commercialization Agreement, which terminated Ascensia's rights to market Eversense products in the United States and modified Ascensia's commercialization rights in Europe. The parties are cooperating during a defined transition period to ensure continuity of supply, customer support, and patient access.

**18. Fair Value Measurements**

The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use to price the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Inputs that are generally unobservable and typically reflect management's estimate of assumptions that market participants would use in pricing the asset or liability.

*Cash and Cash Equivalents*

The fair value of money market funds and other investments classified as cash and cash equivalents are based on period-end statements supplied by the various banks and brokers that hold the majority of the funds.

The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis at December 31, 2025 and 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
| ***Assets*** |  |  |  |  |
| ***Cash and Cash Equivalents⁽¹⁾*** |  |  |  |  |
| Money market funds | $33624 | 33624 |  |  |
| ***Short-Term Investments*** |  |  |  |  |
| Commercial paper  | $6399 |  | 6399 |  |
| Corporate debt securities | 12470 |  | 12470 |  |
| Government and agency securities | 34927 | 34927 |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
| ***Assets*** |  |  |  |  |
| Money market funds⁽¹⁾ | $70613 | 70613 |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Classified as cash and cash equivalents due to their short-term maturity .

The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain financial instruments within the fair value hierarchy. The Company's policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. During the years ended December 31, 2025 and 2024, there were no transfers between Level 1, Level 2, or Level 3.

**19. Segment Information**

The Company views its operations and manages its business in one operating segment, which also represents one reportable segment which derives its revenues from diabetes products and services. Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker ("CODM"), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company CODM, its Chief Executive Officer, manages the Company's operations on a consolidated basis for the purpose of allocating resources.

The CODM assesses performance for the segment based on net loss, which is reported in the consolidated statements of operations and comprehensive loss and uses the financial information in deciding on how to invest into the Company. The measure of segment assets reported on the balance sheets is total assets.

The table below summarizes the significant expense categories regularly reviewed by the CODM for the years ended December 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **December 31,** | **December 31,** |
| ***(in thousands)*** | **2025** | **2024** |
| Revenue | $35257 | $22472 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of goods sold | 19494 | 21939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing expenses | 22785 | 7268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | 31592 | 41144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 29723 | 26963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other segment items<sup>(1)</sup> | 776 | 3774 |
| Net loss | $(69113) | $(78616) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Other segment items include interest income, interest expense, gains on changes in fair value, other income, and other expense as presented in the Company's consolidated statements of operations and comprehensive loss.

**20. Litigation**

From time to time, the Company is subject to litigation and claims arising in the ordinary course of business. The Company accrues for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company has evaluated claims in accordance with the accounting guidance for contingencies that it deems both probable and reasonably estimable, and for the periods ended December 31, 2025 and 2024 has no such contingencies.

**21. Subsequent Events**

The Company has evaluated all subsequent events through the filing date of this Form 10-K with the SEC, to ensure that this filing includes appropriate disclosure of events both recognized in the financial statements as of December 31, 2025, and events which occurred subsequently but were not recognized in the financial statements. There were no subsequent events that required recognition or disclosure.

**Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure** 

None.

**Item 9A. Controls and Procedures**

*Evaluation of Disclosure Controls and Procedures* 

Under the supervision of and with the participation of our management, including our chief executive officer, who is our principal executive officer, and our chief financial officer, who is our principal financial officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of December 31, 2025, the end of the period covered by this Annual Report. The term "disclosure controls and procedures," as set forth in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, means controls and other procedures of a company that are designed to provide reasonable assurance that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms promulgated by the Securities and Exchange Commission (the "SEC"). Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of December 31, 2025, our chief executive officer and chief financial officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

*Changes in Internal Control over Financial Reporting* 

There was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter ended December 31, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

*Management's Report on Internal Control over Financial Reporting and Attestation Report of the Registered Public Accounting Firm* 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under this framework, our management concluded that our internal control over financial reporting was effective as of December 31, 2025.

This Annual Report does not include an attestation report of our registered public accounting firm due to an exemption for "non-accelerated filers."

**Item 9B. Other Information**

During the fiscal quarter ended December 31, 2025, none of our officers or directors, as defined in Rule 16a-1(f), adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as those terms are defined in Item 408 of Regulation S-K.

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable.

**PART III**

We will file a definitive Proxy Statement for our 2026 Annual Meeting of Stockholders, or the 2026 Proxy Statement, with the SEC, pursuant to Regulation 14A, not later than 120 days after the end of our fiscal year. Accordingly, certain information required by Part III has been omitted under General Instruction G(3) to Form 10-K. Only those sections of the 2026 Proxy Statement that specifically address the items set forth herein are incorporated by reference.

**Item 10. Directors, Executive Officers and Corporate Governance**

The information required by Item 10 is hereby incorporated by reference to the sections of the 2026 Proxy Statement under the captions "Information Regarding the Board of Directors and Corporate Governance," "Election of Directors," "Information about our Executive Officers" and "Section 16(a) Beneficial Ownership Reporting Compliance."

**Item 11. Executive Compensation**

The information required by Item 11 is hereby incorporated by reference to the sections of the 2026 Proxy Statement under the captions "Executive Compensation" and "Non-Employee Director Compensation."

**Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters**

The information required by Item 12 is hereby incorporated by reference to the sections of the 2026 Proxy Statement under the captions "Security Ownership of Certain Beneficial Owners and Management" and "Securities Authorized for Issuance under Equity Compensation Plans."

**Item 13. Certain Relationships and Related Transactions, and Director Independence**

The information required by Item 13 is hereby incorporated by reference to the sections of the 2026 Proxy Statement under the captions "Transactions with Related Persons" and "Independence of the Board of Directors."

**Item 14. Principal Accounting Fees and Services**

The information required by Item 14 is hereby incorporated by reference to the sections of the 2026 Proxy Statement under the caption "Ratification of Selection of Independent Registered Public Accounting Firm."

**PART IV**

**Item 15. Exhibit and Financial Statement Schedules**

(a)(1) Financial Statements.

Our Consolidated Financial Statements are listed in the "Index to Consolidated Financial Statements" under Part II, Item 8 of this Annual Report on Form 10-K.

(a)(2) Financial Statement Schedules.

All financial schedules have been omitted because the required information is either presented in the consolidated financial statements or the notes thereto or is not applicable or required.

(a)(3) Exhibits

The exhibits listed below are filed as part of this Annual Report on Form 10-K, or are incorporated herein by reference, in each case as indicated below.

---

| | |
|:---|:---|
| **ExhibitNumber** | **Description of Document** |
| 2.1\*# | [Master Asset Purchase Agreement, dated December 31, 2025, by and among the Company, the Subsidiary and Ascensia Diabetes Care Holdings AG.](sens-20251231xex2d1.htm) |
| 3.1<br>| [Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717) filed on March 23, 2016).](http://www.sec.gov/Archives/edgar/data/1616543/000110465916107185/a16-7127_1ex3d1.htm) |
| 3.2 | [Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.3 to the Registrant's Quarterly Report on Form 10-Q for the Quarter ended June 30, 2018 (File No. 001-37717) filed on August 8, 2018)](https://www.sec.gov/Archives/edgar/data/1616543/000155837018006768/sens-20180630ex3374f9028.htm). |
| 3.3 | [Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717) filed on October 26, 2020).](https://www.sec.gov/Archives/edgar/data/1616543/000110465920118175/tm2034287d1_ex3-1.htm) |
| 3.4<br>3.5 | [Certificate of Amendment to Amended and Restated Certificate of Incorporation of Senseonics Holdings, Inc. (incorporated herein by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717), filed with the Commission on May 22, 2024).](https://www.sec.gov/Archives/edgar/data/1616543/000110465924064335/tm2415323d1_ex3-1.htm)<br>[Certificate of Amendment to Amended and Restated Certificate of Incorporation of Senseonics Holdings, Inc. (incorporated herein by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717), filed with the Commission on October 16, 2025).](https://www.sec.gov/Archives/edgar/data/1616543/000110465925100097/tm2528782d1_ex3-1.htm)<br>|
| 3.6 | [Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717) filed on August 18, 2020).](https://www.sec.gov/Archives/edgar/data/1616543/000110465920096504/tm2028874d1_ex3-1.htm) |
| 3.7 | [Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock (incorporated by reference to Exhibit 3.5 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-37717) filed with the Commission on November 8, 2022).](https://www.sec.gov/Archives/edgar/data/1616543/000155837022016867/sens-20220930xex3d5.htm) |
| 3.8 | [Amended and Restated Bylaws of the Registrant (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K (File No. 001-37717) filed on March 23, 2016).](http://www.sec.gov/Archives/edgar/data/1616543/000110465916107185/a16-7127_1ex3d2.htm) |
| 3.9 | [Amendment to Bylaws of Senseonics Holdings, Inc. (incorporated by reference to Exhibit 3.7 to the Registrant's Annual Report on Form 10-K (File No. 001-37717) filed on March 5, 2021).](https://www.sec.gov/Archives/edgar/data/1616543/000155837021002458/sens-20201231xex3d7.htm) |
| 4.1 | [Registration Rights Agreement, dated as of August 9, 2020, by and between the Registrant and PHC Holding Corporation (incorporated herein by reference to Exhibit 4.1 to Amendment No. 1 to the Registrant's Current Report on Form 8-K (File No. 001-37717), filed with the Commission on August 31, 2020).](https://www.sec.gov/Archives/edgar/data/1616543/000110465920100772/tm2029829d1_ex4-1.htm) |

---

---

| | |
|:---|:---|
| <br>**ExhibitNumber** | <br>**Description of Document** |
| 4.2 | [Investor Rights Agreement, dated as of August 9, 2020, by and between the Registrant and PHC Holding Corporation (incorporated herein by reference to Exhibit 4.3 to Amendment No. 1 to the Registrant's Current Report on Form 8-K (File No. 001-37717), filed with the Commission on August 31, 2020).](https://www.sec.gov/Archives/edgar/data/1616543/000110465920100772/tm2029829d1_ex4-3.htm) |
| 4.3<br> \* | [Description of Senseonics Holdings, Inc. Common Stock](sens-20251231xex4d3.htm) |
| 4.4 | [Registration Rights Agreement, by and between Senseonics Holdings, Inc. and PHC Holdings Corporation, dated as of March 13, 2023 (incorporated herein by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717) filed with the Commission on March 15, 2023).](https://www.sec.gov/Archives/edgar/data/1616543/000110465923032799/tm239630d2_4-1.htm)  |
| 5.1<br> \* | [Opinion of Cooley LLP](sens-20251231xex5d1.htm) |
| 10.1 | [Lease Agreement, dated as of February 4, 2008, by and between Senseonics, Incorporated and Seneca Meadows Corporate Center III Limited Partnership, as amended by the First Amendment to Lease, dated as of September 25, 2012 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 333-198168) filed on December 10, 2015).](http://www.sec.gov/Archives/edgar/data/1616543/000104746915009159/a2226823zex-10_1.htm) |
| 10.1.1 | [Second Amendment to Lease, by and between Senseonics, Incorporated and Seneca Meadows Corporate Center III L.L.L.P., dated as of January 21, 2016 (incorporated by reference to Exhibit 10.1.1 to Amendment No. 1 to the Registrant's Registration Statement on Form S-1 (File No. 333-208984) filed on February 17, 2016).](http://www.sec.gov/Archives/edgar/data/1616543/000104746916010175/a2227131zex-10_11.htm) |
| 10.2+ | [Amended and Restated 1997 Stock Option Plan of Senseonics, Incorporated, as amended to date (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K (File No. 333-198168) filed on December 10, 2015).](http://www.sec.gov/Archives/edgar/data/1616543/000104746915009159/a2226823zex-10_3.htm) |
| 10.3+ | [Form of Incentive Stock Option Agreement under Senseonics, Incorporated Amended and Restated 1997 Stock Option Plan (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K (File No. 333-198168) filed on December 10, 2015).](http://www.sec.gov/Archives/edgar/data/1616543/000104746915009159/a2226823zex-10_4.htm) |
| 10.4+ | [Form of Nonqualified Stock Option Agreement under Senseonics, Incorporated Amended and Restated 1997 Stock Option Plan (incorporated by reference to Exhibit 10.5 to the Registrant's Current Report on Form 8-K (File No. 333-198168) filed on December 10, 2015).](http://www.sec.gov/Archives/edgar/data/1616543/000104746915009159/a2226823zex-10_5.htm) |
| 10.5+ | [Amended and Restated 2015 Equity Incentive Plan (incorporated by reference to Exhibit 4.7 to the Registrant's Registration Statement on Form S-8 (File No. 333-210586) filed on April 4, 2016).](http://www.sec.gov/Archives/edgar/data/1616543/000110465916109617/a16-7847_1ex4d7.htm) |
| 10.6+ | [Amendment to Amended and Restated 2015 Equity Incentive Plan (incorporated by reference to Exhibit 3.1 to the Registrant's Registration Statement on Form S-8 (File No. 001-37717) filed on October 16, 2025).](https://www.sec.gov/Archives/edgar/data/1616543/000110465925100097/tm2528782d1_ex3-1.htm) |
| <br>10.7+ | [Form of Stock Option Grant Notice and Stock Option Agreement under 2015 Equity Incentive Plan (incorporated by reference to Exhibit 10.7 to the Registrant's Current Report on Form 8-K (File No. 333-198168) filed on December 10, 2015).](http://www.sec.gov/Archives/edgar/data/1616543/000104746915009159/a2226823zex-10_7.htm) |
| 10.8+ | [Form of Restricted Stock Unit Grant Notice and Restricted Stock Unit Award Agreement under 2015 Equity Incentive Plan (incorporated by reference to Exhibit 10.8 to the Registrant's Current Report on Form 8-K (File No. 333-198168) filed on December 10, 2015).](http://www.sec.gov/Archives/edgar/data/1616543/000104746915009159/a2226823zex-10_8.htm) |
| 10.9+ | [Form of Indemnification Agreement between the Registrant and its directors and executive officers (incorporated by reference to Exhibit 10.9 to the Registrant's Current Report on Form 8-K (File No. 333-198168) filed on December 10, 2015).](http://www.sec.gov/Archives/edgar/data/1616543/000104746915009159/a2226823zex-10_9.htm) |
| 10.10+ | [Amended and Restated Executive Employment Agreement by and between Senseonics, Incorporated and Timothy T. Goodnow, dated as of July 24, 2015 (incorporated by reference to Exhibit 10.10 to the Registrant's Current Report on Form 8-K (File No. 333-198168) filed on December 10, 2015).](http://www.sec.gov/Archives/edgar/data/1616543/000104746915009159/a2226823zex-10_10.htm) |
| 10.11+ | [Amended and Restated Executive Employment Agreement by and between Senseonics, Incorporated and Mukul Jain, dated as of August 12, 2017 (incorporated by reference to Exhibit 10.10+ to the Registrant's Annual Report on Form 10-K (File No. 001-37717) filed with the Commission on March 16, 2023).](https://www.sec.gov/Archives/edgar/data/1616543/000155837023003952/sens-20221231xex10d10.htm) |
| 10.12+ | [Amended and Restated Executive Employment Agreement by and between Senseonics, Incorporated and Kenneth L. Horton, dated as of April 1, 2023 (incorporated by reference to Exhibit 10.11+ to the Registrant's Annual Report on Form 10-K (File No. 001-37717) filed with the Commission on March 16, 2023).](https://www.sec.gov/Archives/edgar/data/1616543/000155837023003952/sens-20221231xex10d11.htm) |

---

---

| | |
|:---|:---|
| <br>**ExhibitNumber** | <br>**Description of Document** |
| 10.13+\* | [Executive Employment Agreement by and between Senseonics, Incorporated and Brian Hansen, dated as of September 3, 2025.](sens-20251231xex10d13.htm) |
| 10.14 | [Form of Replacement Warrant to Purchase Common Stock issued to Oxford Finance LLC by Senseonics, Incorporated, dated as of December 7, 2015 (incorporated by reference to Exhibit 10.17 to the Registrant's Current Report on Form 8-K (File No. 333-198168) filed on December 10, 2015).](http://www.sec.gov/Archives/edgar/data/1616543/000104746915009159/a2226823zex-10_17.htm) |
| 10.15+ | [Form of 2016 Employee Stock Purchase Plan (incorporated by reference to Exhibit 4.10 to the Registrant's Registration Statement on Form S-8 (File No. 333-210586) filed on April 4, 2016).](http://www.sec.gov/Archives/edgar/data/1616543/000110465916109617/a16-7847_1ex4d10.htm) |
| 10.16 | [Form of Warrant to Purchase Stock issued by the Registrant to Oxford Finance LLC and Silicon Valley Bank, dated as of June 30, 2016 (incorporated by reference to Exhibit 10.5 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-37717) filed on August 9, 2016).](http://www.sec.gov/Archives/edgar/data/1616543/000155837016007809/sens-20160630ex105a5e33e.htm) |
| 10.17# | [Senseonics Holdings, Inc. Inducement Plan (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717), filed with the Commission on June 5, 2019).](http://www.sec.gov/Archives/edgar/data/1616543/000155837019005510/ex-10d1.htm) |
| 10.18+ | [Form of Stock Option Grant Notice and Stock Option Agreement used in connection with the Senseonics Holdings, Inc. Inducement Plan (incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 001-37717), filed with the Commission on June 5, 2019).](http://www.sec.gov/Archives/edgar/data/1616543/000155837019005510/ex-10d2.htm) |
| 10.19 | [Form of Warrant to Purchase Common Stock issued to Highbridge Tactical Credit Master Fund, L.P. (incorporated herein by reference to Exhibit 10.8 to Amendment No. 1 to the Registrant's Annual Report on Form 10-K (File No. 001-37717) filed with the Commission on April 28, 2020).](https://www.sec.gov/Archives/edgar/data/1616543/000110465920052435/tm2017791d1_ex10-8.htm) |
| 10.20 | [2023 Commercial Equity Plan, dated as of January 10, 2023 (incorporated herein by reference to Exhibit 4.1 to the Registration Statement on Form S-3 (File No. 333-269177 filed with the Commission on January 10, 2023)](https://www.sec.gov/Archives/edgar/data/1616543/000110465923002800/tm232916d2_ex4-1.htm). |
| 10.21 | [Securities Purchase Agreement, by and between Senseonics Holdings, Inc. and PHC Holdings Corporation, dated as of March 13, 2023 (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717) filed with the Commission on March 15, 2023).](https://www.sec.gov/Archives/edgar/data/1616543/000110465923032799/tm239630d2_10-1.htm)  |
| 10.22 | [Form of Warrant to Purchase Common Stock issued to PHC Holdings Corporation (incorporated herein by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K (File No. 001-37717) filed with the Commission on March 15, 2023).](https://www.sec.gov/Archives/edgar/data/1616543/000110465923032799/tm239630d2_10-3.htm) |
| 10.23 | [Form of Stock Option Grant Notice and Stock Option Agreement under Senseonics Holdings, Inc. 2023 Commercial Equity Plan (incorporated herein by reference to Exhibit 4.2 to the Registration Statement on Form S-3 (File No.333-269177) filed with the Commission on January 10, 2023).](https://www.sec.gov/Archives/edgar/data/1616543/000110465923002800/tm232916d2_ex4-2.htm) |
| 10.24 | [Form of Restricted Stock Unit Grant Notice and Restricted Stock Unit Award Agreement under Senseonics Holdings, Inc. 2023 Commercial Equity Plan (incorporated herein by reference to Exhibit 4.3 to the Registration Statement on Form S-3 (File No. 333-269177) filed with the Commission on January 10, 2023).](https://www.sec.gov/Archives/edgar/data/1616543/000110465923002800/tm232916d2_ex4-3.htm) |
| 10.25 | [Common Stock Purchase Warrant, dated April 1, 2023 (incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 001-37717) filed with the Commission on March 15, 2023).](https://www.sec.gov/Archives/edgar/data/1616543/000110465923032799/tm239630d2_10-2.htm) |
| 10.26 | [Securities Purchase Agreement dated October 24, 2024 between Senseonics Holdings, Inc. and the purchasers party thereto. (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717), filed with the Commission on October 28, 2024).](https://www.sec.gov/Archives/edgar/data/1616543/000110465924111627/tm2426770d1_ex10-1.htm) |
| 10.27+ | [Non-Employee Director Compensation Policy (As amended on May 25, 2021) (incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-37717) filed with the Commission on May 9, 2023).](https://www.sec.gov/Archives/edgar/data/1616543/000155837023008830/sens-20230331xex10d1.htm) |
| 10.28 | [Loan and Security Agreement, dated September 8, 2023, by and among the Company and Hercules Capital, Inc. (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717) filed with the Commission on September 11, 2023).](https://www.sec.gov/Archives/edgar/data/1616543/000110465923099505/tm2325842d1_ex10-1.htm) |
| 10.29 | [First Amendment to Loan and Security Agreement, dated September 3, 2025, by and among the Company and Hercules Capital, Inc. (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717) filed with the Commission on September 3, 2025).](https://www.sec.gov/Archives/edgar/data/1616543/000110465925087170/tm2525109d1_ex10-1.htm) |

---

---

| | |
|:---|:---|
| <br>**ExhibitNumber** | <br>**Description of Document** |
| 10.30 | [Form of Warrant Agreement (incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 001-37717) filed with the Commission on September 11, 2023).](https://www.sec.gov/Archives/edgar/data/1616543/000110465923099505/tm2325842d1_ex10-2.htm) |
| 10.31 | [Form of Common Stock Purchase Warrant (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form - K (File No. 001-37717) filed with the Commission on October 28, 2024).](https://www.sec.gov/Archives/edgar/data/1616543/000110465924111627/tm2426770d1_ex4-1.htm) |
| 10.32 | [Securities Purchase Agreement, dated May 15, 2025, by and between the Company and Abbott Laboratories (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-37717), filed with the Commission on May 15, 2025).](http://www.sec.gov/Archives/edgar/data/1616543/000110465925049437/tm2514956d1_ex10-1.htm) |
| 10.33\*# | [Amended and Restated Collaboration and Commercialization Agreement, dated December 31, 2025, by and among the Subsidiary and Ascensia Diabetes Care Holdings AG.](sens-20251231xex10d33.htm) |
| 19.1 | [Insider Trading Policy, as amended on March 20, 2024 (incorporated herein by reference to Exhibit 19.1 to the Registrant's Annual Report on Form 10-K (File No. 001-37717) filed with the Commission on March 3, 2025).](https://www.sec.gov/Archives/edgar/data/1616543/000155837025002044/sens-20241231xex19d1.htm) |
| 21.1 | [Subsidiaries of the Registrant (incorporated by reference to Exhibit 21.1 to the Registrant's Current Report on Form 8-K (File No. 333-198168) filed on December 10, 2015).](http://www.sec.gov/Archives/edgar/data/1616543/000104746915009159/a2226823zex-21_1.htm) |
| 23.1\* | [Consent of KPMG LLP, independent registered public accounting firm.](sens-20251231xex23d1.htm) |
| 23.2\* | Consent of Cooley LLP (included in Exhibit 5.1) |
| 31.1\* | [Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.](sens-20251231xex31d1.htm) |
| 31.2\* | [Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.](sens-20251231xex31d2.htm) |
| 32.1\* † | [Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rules 13a- 14(b) and 15d-14(b) promulgated under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.](sens-20251231xex32d1.htm) |
| 97.1 | [Incentive Compensation Recoupment Policy, approved October 25, 2023, incorporated by reference to Exhibit 97.1 of the Registrant's Current Report on Form 10-K filed with the SEC on March 1, 2024.](https://www.sec.gov/Archives/edgar/data/1616543/000155837024002218/sens-20231231xex97d1.htm) |
| 101.INS\* | XBRL Instance Document |
| 101.SCH\* | XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

\* Filed herewith.

&nbsp;&nbsp;&nbsp;&nbsp;† These certifications are being furnished herewith solely to accompany this Annual Report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

+ Indicates management contract or compensatory plan.

# Certain portions of this exhibit, indicated by asterisks, have been omitted because they are not material and are the type that the registrant treats as private and confidential.

**Item 16. Form 10-K Summary**

Not applicable.

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **SENSEONICS HOLDINGS, INC.** | **SENSEONICS HOLDINGS, INC.** |
| By: | /s/ Timothy T. Goodnow, Ph.D. |
|  | Timothy T. Goodnow, Ph.D. |
|  | *President and Chief Executive Officer* |

---

Date: March 2, 2026

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Timothy T. Goodnow, Ph.D., and Rick Sullivan, jointly and severally, as his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign this Annual Report on Form 10-K of Senseonics Holdings, Inc., and any or all amendments (including post-effective amendments) thereto, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite or necessary to be done in and about the premises hereby ratifying and confirming all that said attorneys-in-fact and agents, or his or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Timothy T. Goodnow, Ph.D. | President, Chief Executive Officer and Director | March 2, 2026 |
| Timothy T. Goodnow, Ph.D. | *(Principal Executive Officer)* |  |
| /s/ RICK SULLIVAN | Chief Financial Officer | March 2, 2026 |
| Rick Sullivan | *(Principal Financial Officer and Principal Accounting Officer)* |  |
| /s/ Stephen P. DeFalco | Chairman of the Board of Directors | March 2, 2026 |
| Stephen P. DeFalco |  |  |
| /s/ Steven Edelman, M.D. | Director | March 2, 2026 |
| Steven Edelman, M.D. |  |  |
| /s/ Edward J. Fiorentino | Director | March 2, 2026 |
| Edward J. Fiorentino |  |  |
| /s/ Douglas S. Prince | Director | March 2, 2026 |
| Douglas S. Prince |  |  |
| /s/ Douglas A. roeder<br>| Director<br>| March 2, 2026<br>|
| Douglas A. Roeder<br>|  |  |
| /s/ FRANCINE KAUFMAN, M.D. | Director and Chief Medical Officer | March 2, 2026 |
| Francine Kaufman, M.D. |  |  |

---

---

| | | |
|:---|:---|:---|
| /s/ SHARON D. LARKIN | Director | March 2, 2026 |
| Sharon D. Larkin |  |  |
| /s/ BRIAN HANSEN | Director and Chief Commercial Officer | March 2, 2026 |
|  Brian Hansen |  |  |

---

## Exhibit 2.1

------

**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

**Exhibit 2.1**

**MASTER ASSET PURCHASE AGREEMENT** 

among:

**Senseonics Holdings, Inc.**,

a Delaware corporation

**Senseonics, Incorporated**,

a Delaware corporation

and

**Ascensia Diabetes Care Holdings AG**,

a company organized under the laws of Switzerland

____________________________

Dated as of December 31, 2025

____________________________

------

**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

**1. Purchase and Sale; Closings** 2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1.1Purchase and Sale of the Purchased Assets.</sup>2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1.2Delivery of Specified Initial Assets</sup>5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1.3Excluded Assets</sup>5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**1.4** **Excluded Liabilities; Assumption of Assumed Liabilities.**6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**1.5** **Purchase Price; Payment of Purchase Price; Adjustment of Purchase Price**8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1.6Withholding</sup>11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1.7Allocation of Purchase Price</sup>11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1.8Closings; Closing Conditions.</sup>12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1.9Transfer Taxes</sup>13

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1.10European CGM Activities.</sup>13

**2.** **Representations and Warranties of the Seller Group**16

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.1Due Organization</sup>17

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.2Authority; Binding Nature Of Agreements</sup>17

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.3Title To and Sufficiency of Purchased Assets</sup>17

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.4Inventory</sup>17

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.5Intellectual Property.</sup>18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.6Contracts.</sup>20

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.7Compliance with Law</sup>20

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.8Environmental Matters</sup>21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.9Governmental Authorizations</sup>21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.10Affiliate Transactions</sup>21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.11Proceedings; Orders</sup>21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.12Non-Contravention; Consents</sup>21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.13Brokers and Finders</sup>22

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.14Tax Matters</sup>22

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.15Financial Information and Absence of Changes</sup>23

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.16Equipment</sup>24

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.17Lease</sup>24

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.18Employment Matters</sup>24

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.19Accreditation</sup>27

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.20No Other Representations</sup>27

**3.** **Representations and Warranties of the Purchaser Group.**28

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>3.1Due Organization</sup>28

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>3.2Authority; Binding Nature Of Agreements</sup>28

------

**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>3.3Non-Contravention; Consents</sup>28

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>3.4Brokers</sup>29

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>3.5Required Filings and Consents</sup>29

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>3.6Solvency</sup>29

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>3.7Employment Offers</sup>29

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>3.8No Other Representations</sup>29

<sup>4.Pre-Closing Covenants.</sup>30

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.1Access and Investigation</sup>30

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.2Operation of CGM Activities</sup>30

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.3Filings and Consents</sup>31

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.4Notification</sup>32

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.5Exclusivity</sup>32

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.6Best Efforts</sup>32

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.7Confidentiality</sup>32

<sup>5.Conditions Precedent to the Closings.</sup>33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**5.1** **Conditions Precedent to Purchaser's Obligations to each Applicable Closing**33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**5.2** **Conditions Precedent to Seller's Obligation to Applicable Closing**35

<sup>6.Termination.</sup>36

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.1Termination Events</sup>36

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.2Termination Procedures</sup>37

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.3Effect Of Termination</sup>37

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.4Nonexclusivity of Termination Rights</sup>37

<sup>7.INDEMNIFICATION, ETC.</sup>37

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.1Survival of Representations and Covenants</sup>37

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.2Indemnification by Seller</sup>38

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.3Indemnification by Purchaser Parties</sup>39

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.4Limitations on Indemnification</sup>40

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.5Exclusivity of Indemnification Remedies</sup>41

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.6Indemnification Procedures.</sup>42

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.7Tax Treatment of Indemnification Payments</sup>43

<sup>8.Additional agreements.</sup>44

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.1Further Actions</sup>44

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.2Publicity</sup>44

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.3Bulk Sales Requirements</sup>44

------

**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**8.4** **Access to Books and Records; Cooperation on Financial Statements**44

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.5Contract Matters.</sup>45

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.6Misallocated Assets</sup>47

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.7Employees and Related Matters</sup>48

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.8Trademarks; Trademark License</sup>52

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.9Transferred Inventory</sup>52

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.10Intentionally Omitted.</sup>53

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.11Tax Matters.</sup>53

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.12PASS Accrual Adjustment</sup>54

<sup>9.Miscellaneous Provisions.</sup>55

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.1Fees and Expenses</sup>55

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.2Attorneys' Fees</sup>55

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.3Notices</sup>55

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.4Time of the Essence</sup>55

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.5Headings</sup>55

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.6Counterparts</sup>56

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.7Governing Law; Dispute Resolution.</sup>56

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.8Successors And Assigns; Parties In Interest.</sup>56

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.9Waiver.</sup>57

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.10Amendments</sup>57

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.11Severability</sup>57

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.12Entire Agreement</sup>58

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>9.13Construction.</sup>58

**Exhibits**

**Exhibit A** **-** **Certain Definitions**

**Exhibit B** **-** **Form of Bill of Sale and Assumption Agreement**

**Exhibit C** **-** **Form of Release**

**Exhibit D** **-** **Reference Balance Sheet**

**Exhibit E** **-** **Amended and Restated Existing Agreement**

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

#### MASTER ASSET PURCHASE AGREEMENT
**This Master Asset Purchase Agreement** (this "**Agreement**") is entered into as of December 31, 2025 ("**Agreement Date**"), by and among **Senseonics, Incorporated**, a Delaware corporation with its principal office and place of business at 20451 Seneca Meadows Parkway, Germantown, Maryland (the "**Purchaser**"), **Senseonics Holdings, Inc.**, a Delaware corporation with its principal office and place of business at 20451 Seneca Meadows Parkway Germantown, Maryland, 20876 ("**Purchaser Parent**" and together with Purchaser, collectively, the "**Purchaser Parties**") and **Ascensia Diabetes Care Holdings AG**, a company organized under the laws of Switzerland, with its principal office and place of business at Peter Merian-Strasse 90 4052 Basel, Switzerland (the "**Seller**"). Certain capitalized terms used in this Agreement are defined in **Exhibit A**. The Purchaser Parties and Seller are referred to in this Agreement collectively as the "**Parties**," and individually as a "**Party**."

**Whereas**, the Purchaser and Seller are currently bound by that certain Collaboration and Commercialization Agreement, dated August 9, 2020, as amended (the "**Existing Agreement**");

**Whereas**, the Seller owns, directly or indirectly through one or more Seller Affiliates, the Purchased Assets;

**Whereas**, the Parties desire to provide for an orderly wind-up and transition of activities under the Existing Agreement and in connection therewith to provide for the amendment and restatement, and ultimate termination, of the Existing Agreement, in connection therewith, the entry into this Agreement to effect the sale and transfer of the Purchased Assets, the assumption of the Assumed Liabilities, and the transition of certain operations of Seller related to the CGM Activities subject to the conditions and other provisions set forth in this Agreement and in the Transactional Agreements;

**Whereas**, the Purchaser Group wishes to purchase the Purchased Assets from the Seller Group, and the Seller Group desires to sell and transfer such Purchased Assets to the Purchaser Group, subject to the conditions and other provisions set forth in this Agreement and in the Transactional Agreements, including the Local Purchase Agreements;

**Whereas**, concurrently with the execution of this Agreement, Purchaser and/or certain Purchaser Affiliates on one hand and Seller and/or certain Seller Affiliates on the other hand, are entering into Local Purchase Agreement to effect the purchase, sale and transfer of the Specified European Assets, subject to the conditions and other provisions set forth in this Agreement, the Local Purchase Agreements and other Transactional Agreements;

**Whereas**, concurrently with the execution of this Agreement, Purchaser and Seller shall execute and deliver the Amended and Restated Existing Agreement;

**Whereas**, this Agreement and the Transactional Agreements have been approved by the respective boards of directors, or applicable equivalent governing body, of each of Seller and Purchaser; and

**Whereas**, the transactions contemplated by this Agreement may occur in separate closings: (i) an Initial Closing, in which the Seller Group will transfer to Purchaser, or a Purchaser Affiliate, the Specified

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

Initial Assets and Purchaser, or a Purchaser Affiliate, will assume certain liabilities of Seller and the Seller Affiliates, and (ii) additional subsequent Closings governed by this Agreement and the Local Purchase Agreements, in which the Seller Group will transfer to Purchaser, or a Purchaser Affiliate, the Specified European Assets and Purchaser, or a Purchaser Affiliate, will assume certain additional liabilities of the Seller Group.

**Now, Therefore**, in consideration of the premises and mutual covenants, agreements and provisions herein contained, the Parties agree as follows:

**1.** **Purchase and Sale; Closings**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** **Purchase and Sale of the Purchased Assets**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Specified Initial Assets.** Subject to <u>Section</u> <u>1.3</u> (*Excluded Assets*), on the terms and subject to the conditions and other provisions set forth in this Agreement, at the Initial Closing, Seller shall (or, as applicable, shall cause each Seller Affiliate to) sell, assign, transfer, convey and deliver to Purchaser (or to any Purchaser Affiliate designated by Purchaser) all of Seller's (or, as applicable, such Seller Affiliate's) right, title, and interest in, to and under the Specified Initial Assets (as defined below), free of any Encumbrances (other than Permitted Encumbrances). For purposes of this Agreement, "**Specified Initial Assets**" shall mean and include the following properties, assets, goodwill, privileges, contracts, claims, rights, title, interests, business, other assets of every kind, nature and description, real, personal or mixed, and tangible and intangible assets (wherever located):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**the Transferred Technology in the U.S. as set forth on <u>Schedule 1.1(a)(i)</u> (the "**U.S. Transferred Technology**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**the U.S. CGM IP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**the U.S. Inventory set forth on <u>Schedule 1.1(a)(iii)</u> (excluding, for the avoidance of doubt, Excluded Inventory) (the "**U.S. Transferred Inventory**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**the Seller Contracts that are set forth on <u>Schedule 1.1(a)(iv)</u> (excluding, for the avoidance of doubt, Excluded Contracts) and any rights or claims arising thereunder (the "**U.S. Transferred Contracts**"), which Transferred Contracts may be terminated and replaced by Purchaser, in its sole discretion and subject to the terms of such Transferred Contracts at any time after the Initial Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)**the U.S. Regulatory Materials set forth on <u>Schedule 1.1(a)(v)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)**the U.S. Other Materials set forth on <u>Schedule 1.1(a)(v)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)**the U.S. Equipment set forth on <u>Schedule 1.1(a)(vii)</u> (the "**U.S. Transferred Equipment**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(viii)**to the extent transferrable under applicable Law, all U.S. Accreditations (as defined below);

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ix)**all causes of action (regardless of whether or not such claims and causes of action have been asserted by the Seller), lawsuits, judgments, claims and demands of any nature available to or being pursued by the Seller Group to the extent exclusively related to (1) the Specified Initial Assets, (2) the Assumed Initial Liabilities or (3) the ownership, use, function or value of any of the Specified Initial Assets, whether arising by way of counterclaim or otherwise, whether choate or inchoate, known or unknown, contingent or noncontingent (other than claims, counterclaims, defenses, causes of action, rights of recovery, rights of set-off and rights of subrogation against any third parties relating to Excluded Assets or Excluded Liabilities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(x)**all credits, prepaid expenses, deferred charges, advance payments, security or other deposits, prepaid items, duties and right to offset relating exclusively to the Specified Initial Assets, including as set forth on <u>Schedule 1.1(a)(x)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(xi)**all U.S. Books and Records; *provided*, that (1) the Seller Group shall be entitled to keep copies thereof for operational, legal, Tax, regulatory or record-keeping purposes or in order to comply with applicable Laws, Seller's or Seller Affiliates' internal policies and procedures or any applicable contractual or other similar obligations, subject to the confidentiality and use restriction obligations hereunder, and (2) U.S. Books and Records shall not include any U.S. Books and Records the transfer of which would be prohibited by applicable Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(xii)**the marketing and sales materials, advertising materials, catalogues and sales brochures primarily relating to (1) the U.S. CGM Activities, (2) the Assumed Initial Liabilities or (3) the ownership, use, function or value of any of the Specified Initial Assets, including as set forth on <u>Schedule 1.1(a)(xii)</u> and all marketing and sales materials, advertising materials, catalogues and sales brochures with incidental mentions of other products that are unrelated to the CGM Activities or the Products, in each case, excluding any Seller Marks incorporated therein, which Seller Marks may be used by Purchaser subject to the terms and conditions of the limited license set forth in <u>Section</u> <u>8.8</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(xiii)**the CRM Systems and Seller IT Systems and related documentation and data (the "**Transferred Seller IT Systems**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(xiv)**all CGM Data related to the U.S. CGM Activities, including the data set forth on <u>Schedule 1.1(a)(xiv)</u> (the "**U.S. Transferred Data**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(xv)**all other assets, properties and rights that exclusively relate to, exclusively held for use with, or exclusively used in connection with the U.S. CGM Activities, including such assets and rights set forth on <u>Schedule 1.1(a)(xiii)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Specified European Assets.** Subject to the terms and conditions of <u>Section 1.10</u> (*European CGM Activities*), the Local Purchase Agreements, if agreed upon and executed after date hereof, and other provisions set forth in this Agreement, Seller shall (or, as applicable, shall cause each Seller Affiliate to) sell, assign, transfer, convey and deliver to Purchaser (or to any Purchaser Affiliate designated by Purchaser) all of Seller's (or, as applicable, such Seller Affiliate's) right, title and interest in, to and under the Specified European Assets (as defined below), free of any Encumbrances (other than Permitted Encumbrances), on the terms and subject to the conditions set forth in this Agreement and the Local Purchase Agreements at the Applicable Closing (if any). For purposes of this Agreement, "**Specified European Assets**" shall mean and include the following properties, assets, goodwill, privileges, contracts,

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

claims, rights, title, interests, business, other assets of every kind, nature and description, real, personal or mixed, and tangible and intangible assets (wherever located), other than the Excluded Assets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**the Transferred Technology in the European Territory as set forth on <u>Schedule 1.1(b)(i)</u> (the "**European Transferred Technology**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**the European CGM IP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**the European Inventory set forth on <u>Schedule 1.1(b)(iii)</u> (excluding, for the avoidance of doubt, Excluded Inventory) (the "**European Transferred Inventory**", and together with the U.S. Transferred Inventory, the "**Transferred Inventory**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**the Seller Contracts that are set forth on <u>Schedule 1.1(b)(iv)</u> (excluding, for the avoidance of doubt, Excluded Contracts), the Tender Contracts and any rights or claims arising thereunder (the "**European Transferred Contracts,**" and together with the U.S. Transferred Contracts, the "**Transferred Contracts**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)**the European Regulatory Materials set forth on <u>Schedule 1.1(b)(v)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)**the European Other Materials set forth on <u>Schedule 1.1(a)(v)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)**the European Equipment set forth on <u>Schedule 1.1(b)(vii)</u> (the "**European Transferred Equipment,**" and together with the U.S. Transferred Equipment, the "**Transferred Equipment**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(viii)**to the extent transferable under Law, all European Accreditations (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ix)**all causes of action (regardless of whether or not such claims and causes of action have been asserted by the Seller), lawsuits, judgments, claims and demands of any nature available to or being pursued by the Seller Group to the extent exclusively related to (1) the Specified European Assets, (2) the Assumed European Liabilities or (3) the ownership, use, function or value of any of the Specified European Assets, whether arising by way of counterclaim or otherwise, whether choate or inchoate, known or unknown, contingent or noncontingent (other than claims, counterclaims, defenses, causes of action, rights of recovery, rights of set-off and rights of subrogation against any third parties relating to Excluded Assets or Excluded Liabilities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(x)**all credits, prepaid expenses, deferred charges, advance payments, security or other deposits, prepaid items, duties and right to offset relating exclusively to the Specified European Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(xi)**all European Books and Records; *provided*, that (1) the Seller Group shall be entitled to keep copies thereof for operational, legal, Tax, regulatory or record-keeping purposes or in order to comply with applicable Laws, Seller's or Seller Affiliates' internal policies and procedures or any applicable contractual or other similar obligations, subject to the confidentiality and use restriction obligations hereunder, and (2) European Books and Records shall not include any European Books and Records the transfer of which would be prohibited by applicable Law;

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(xii)**the marketing and sales materials, advertising materials, catalogues and sales brochures primarily relating to (1) the European CGM Activities, (2) the Assumed European Liabilities or (3) the ownership, use, function or value of any of the Specified European Assets, including all marketing and sales materials, advertising materials, catalogues and sales brochures with incidental mentions of other products that are unrelated to the CGM Activities or the Products, in each case, excluding any Seller Marks incorporated therein; *provided*, that the Purchaser Group may use such Seller Marks in accordance with the terms and conditions of the limited license set forth in <u>Section</u> <u>8.8</u> (Trademarks; Trademark License; Trademarks; Trade Names; Service Marks); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(xiii)**all CGM Data related to the European CGM Activities, including the data set forth on <u>Schedule 1.1(b)(xiii)</u> (the "**European Transferred Data**" and together with the U.S. Transferred Data, the "**Transferred Data**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(xiv)**all other assets or rights, tangible or intangible, which are exclusively used in connection with the European CGM Activities, including without limitation, such assets set forth on <u>Schedule 1.1(b)(xiv)</u>. For the avoidance of doubt, the Parties hereby acknowledge that the schedules contemplated in this <u>Section</u> <u>1.1(b)</u> shall be delivered by Seller after the date hereof in accordance with <u>Section</u> <u>1.10</u> (*European CGM Activities*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** **Delivery of Specified Initial Assets**. Seller shall deliver all Specified Initial Assets and U.S. Transferred Technology to Purchaser at the Initial Closing in a format and manner as reasonably requested by Purchaser prior to the Initial Closing Date. To the extent delivery of such Specified Initial Assets and U.S. Transferred Technology (excluding Transferred Inventory) results in costs (excluding Transfer Taxes) incurred by any member of the Seller Group, such costs shall be borne equally by the Seller and Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3** **Excluded Assets**. Notwithstanding anything to the contrary contained in <u>Section</u> <u>1.1(a)</u> or elsewhere in this Agreement, the following (collectively, the "Excluded Assets") shall not be part of the sale and purchase contemplated hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**all Technology that is not U.S. Transferred Technology or European Transferred Technology, including without limitation, such Technology as set forth on <u>Schedule 1.2(a)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**all CGM IP that is not the U.S. CGM IP or European CGM IP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**all Inventory of the Seller Group listed on <u>Schedule 1.2(c)</u> (the "**Excluded Inventory**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**all Contracts of the Seller Group that are not Transferred Contracts, including the Seller Contracts set forth on <u>Schedule 1.2(d)</u> (the "**Excluded Contracts**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)**all Regulatory Materials that are not U.S. Regulatory Materials or European Regulatory Materials set forth on <u>Schedule 1.2(e)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)**any equity interest in any subsidiary or Affiliate of Seller;

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)**all rights of the Seller Group under this Agreement and the other Transactional Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)**all minute books, organizational documents, corporate seals, stock books, books of account or other similar records of the Seller Group having to do with the corporate organization of Seller, any Tax identification numbers of Seller, any Tax Returns of Seller or any books or records which Seller is required by Law to retain, if any (including any employee or employee benefit-related files or records which Seller is prohibited from transferring to Purchaser under applicable Law) other than the Transferred Books and Records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**all cash, cash equivalents on hand or in bank accounts and short term investments, bank accounts, marketable securities, accounts receivables and inter-company accounts receivable of the Seller Group, life insurance policies, safe deposit boxes, money market accounts, or similar accounts or depositories of Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)**all insurance policies or the right to make claims under any insurance policy, *provided*, that the right to recover under any such policy with respect to any Purchased Asset or Assumed Liability, in each case, which arises out of conditions existing or events occurring on or before the Applicable Closing Date shall be a Purchased Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)**all employee benefit plans of Seller or any of its Affiliates, including the Seller Employee Plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)**all rights to any actions of any nature available to or being pursued by Seller or any of its Affiliates to the extent related to the CGM Activities, whether arising by way of counterclaim or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)**all rights of Seller to any refunds, claims to refunds, Tax deposits, Tax credits or other Tax assets attributable to Excluded Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)**all data that is not Transferred Data; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)**all assets of the Seller Group that are not Purchased Assets or are otherwise set forth on <u>Schedule 1.3(o)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4** **Excluded Liabilities; Assumption of Assumed Liabilities.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Excluded Liabilities.** Other than, after the Applicable Closing Date, the Assumed Liabilities as expressly provided for in <u>Section</u> <u>1.4(b)</u> (*Assumed Liabilities*), the Purchaser Parties shall not assume, and shall have no liability for any Liabilities of Seller or any Seller Affiliate of any kind, character or description, whether accrued, absolute, contingent or otherwise, it being understood that Purchaser is expressly disclaiming any express or implied assumption of any Liabilities other than after the Initial Closing Date, the Assumed Initial Liabilities or, after the Applicable Closing Date, the Assumed European Liabilities including, without limitation: (i) any Liabilities under the Transferred Contracts to the extent arising out of or relating to any obligation performed or required to be performed by Seller or any Seller Affiliate under (1) the Seller Contracts or (2) any Transferred Contracts, in each case, prior to the Applicable Closing Date, (3) that arise under the Transferred Contracts out of the execution of the Transactional

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

Agreements or the Applicable Closing (all such Liabilities set forth in the foregoing provisions of this clause (i) pertaining to Transferred Contracts that constitute Tender Contracts, collectively, the "**Tender Liabilities**"), and (4) subject to any written agreement entered into between the parties pursuant to <u>Section</u> <u>8.5</u> (*Contract Matters*), any Liability under any Transferred Contracts if the Seller or any Seller Affiliate shall not have obtained, prior to the Applicable Closing Date, any Consent required to be obtained from any Person with respect to the assignment or delegation to the Purchaser Group of any rights or obligations under such Transferred Contract; (ii) any Liability of Seller or any Seller Affiliate arising out of or relating to the execution, delivery or performance of any Transactional Agreement; (iii) any Liability of Seller or any Seller Affiliate relating to or arising out of the Excluded Assets; (iv) except as otherwise expressly set forth in this Agreement or the Local Purchase Agreements, any Liability of Seller or any Seller Affiliate arising in respect of or relating to any current or former employee or consultant or agent of the Seller Group, including any Transferred Employee, including all Liabilities related to the Seller Employee Plans, in addition to all wages, salaries and other compensation and employee benefits (including any severance pay, notice pay, insurance, supplemental pension, deferred compensation, "stay" or other similar incentive bonuses, change-in-control bonuses (or other bonuses or compensation related in any way to the execution, delivery or performance of this Agreement), retirement and any other benefits, premiums, claims and related costs) to any of the employees, former employees or retirees of Seller or any Seller Affiliate (all such liabilities set forth in this clause (iv), collectively, the "**Excluded Employee Liabilities**"); (v) any Excluded Taxes; and (vi) any Liabilities arising out of or relating to the prosecution, ownership, operation, maintenance, sale, lease or use of the Purchased Assets or the operation of the CGM Activities by or on behalf of Seller or any Seller Affiliate to the extent arising prior to any Applicable Closing Date(collectively, the "**Excluded Liabilities**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Assumed Liabilities.** Upon and subject to the terms and conditions set forth in this Agreement, including, without limitation, <u>Section</u> <u>1.4(a)</u> (*Excluded Liabilities*), <u>Section</u> <u>1.9</u> (*Transfer Taxes*), <u>Section</u> <u>1.10</u> (*European CGM Activities*), and <u>Section</u> <u>8.5</u> (*Contract Matters*), Purchaser hereby assumes (or as applicable, the applicable Purchaser Affiliate shall assume) as of the Applicable Closing Date (collectively, the "**Assumed Liabilities**"): (i) the Liabilities and obligations under the Transferred Contracts, but (1) only to the extent arising out of obligations performed or required to be performed by Purchaser or the applicable Purchaser Affiliate under such Transferred Contracts after the assignment and transfer of such Transferred Contract on the Applicable Closing (or in the case of the assignment and/or transfer after the Applicable Closing, the date of such assignment and/or transfer) and not on or before such date, (2) only to the extent such obligations do not arise from or relate to any breach by any member of the Seller Group of any provision of any of such Transferred Contracts, and (3) only to the extent such obligations do not arise from or relate to any event, circumstance or condition occurring or existing on or prior to the Applicable Closing Date that, with notice or lapse of time, would constitute or result in a breach of any of such Transferred Contracts; (ii) liabilities accruing, arising out of or relating to the conduct or operation of the CGM Activities or the ownership or use of the Purchased Assets, solely to the extent such liabilities arise or accrue after the Applicable Closing; (iii) all liabilities and obligations in respect of the Transferred Employees solely on a going-forward basis after the Applicable Closing Date; (iv) pursuant to the express terms and conditions and limitations set forth in the Existing Agreement, all Liabilities of Seller arising out of or related to that certain Case No. 2:24-cv-263 filed in the United States District Court for the Eastern District of Texas Marshall Division (Cellspin Soft, Inc. vs Senseonics Holdings, Inc., Ascensia Diabetes Care Holdings AG), those certain cases IPR2024-00768, IPR2024-00769, and IPR2024-00770 before the Patent Trial and Appeal Board of the United States Patent and Trademark Office (TikTok Inc. v. CellSpin Soft, Inc., to which LifeScan, Inc., Senseonics Holdings, Inc., and Ascensia Diabetes Care Holdings AG have been joined), those certain cases IPR2025-00102, IPR2025-00103, and IPR2025-00104

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

also before the Patent Trial and Appeal Board of the United States Patent and Trademark Office (LifeScan, Inc., Senseonics Holdings, Inc., and Ascensia Diabetes Care Holdings AG v. CellSpin Soft, Inc.), and all appeals from any of the aforementioned cases (collectively, the "**Cellspin Litigation Matter**"), (v) the Termination PTO Reimbursement Amount, (vi) the Liabilities expressly assumed by Purchaser or a Purchaser Affiliate, as applicable, pursuant to express terms of the Local Purchase Agreements (if any). For the avoidance of doubt, nothing in this <u>Section</u> <u>1.3(b)</u> shall limit the indemnification obligations or Liabilities of Purchaser and Seller under the Amended and Restated Existing Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**For the avoidance of doubt, <u>Section</u> <u>1.1(a)(xv)</u> (*Specified European Assets*) and <u>Section</u> <u>1.3(b)</u> (*Assumed Liabilities*) shall not apply to the European CGM Activities or any Specified European Asset as of the Initial Closing. As of the Initial Closing, (1) the term "CGM Activities" as used in this Agreement shall be deemed to exclude the European CGM Activities, (2) the term "Assumed Liabilities" as used in this Agreement shall be deemed to exclude the Assumed European Liabilities, (3) the term "Transferred Employees" as used in this Agreement shall be deemed to exclude the European Transferred Employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5** **Purchase Price; Payment of Purchase Price; Adjustment of Purchase Price**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Purchase Price.** Subject to <u>Section 1.10</u> (*European CGM Activities*) and the Local Purchase Agreements, no later than [\*\*\*] prior to the Applicable Closing, Seller shall provide written wire instructions to Purchaser and pursuant to the wire instructions provided to Purchaser, as consideration for the sale, transfer, conveyance, assignment and delivery to Purchaser and its Affiliates of the Purchased Assets, in addition to the assumption by Purchaser of the Assumed Liabilities as of the Applicable Closing Date, on the Applicable Closing Date, Purchaser will pay to Seller (or to a Seller Affiliate as designated by Seller in the written wire instructions) at the Applicable Closing (by wire transfer of immediately available funds), an amount equal to the sum of (the "**Purchase Price**"): [\*\*\*]. For purposes of this Agreement, "**Pre-Closing Balance Sheet Adjustment Amount**" shall mean: [\*\*\*]. Unless otherwise expressly stated in any Local Purchase Agreement, the Purchase Price shall be paid in the lawful currency of the jurisdiction in which the Applicable Closing occurs and unless otherwise agreed in writing by the Parties, and the Purchase Price shall be paid by Purchaser with respect to the Initial Closing and the applicable Purchaser Affiliate under the Local Purchase Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Adjustment of Purchase Price**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)Net Book Value Adjustment**. (A) At least [\*\*\*] prior to each Applicable Closing Date, Seller shall deliver to Purchaser (i) an unaudited balance sheet with respect to the "Purchased Assets", "Assumed Liabilities" and "Net Book Value" (the "**Pre-Closing Balance Sheet**") which shall (1) estimated as of the Applicable Closing Date, (2) contain the same line item categories as those contained in the form of the balance sheet attached in **Exhibit D** hereto (the "**Reference Balance Sheet**"), (3) for the purposes of determining Net Book Value shall be consistent with the methodology, line items and categories applied in the Reference Balance Sheet and using the same accounting methods, practices, principles, policies, and procedures, with consistent classifications, judgements, and valuation and estimation and accrual methodologies used in the preparation of the Financial Statements (together, the "**Accounting Principles**"), (4) set forth the Italy Purchase Price, the Germany Purchase Price, the Spain Purchase Price, the Sweden Purchase Price, and (5) reflect no write-up of any individual Purchased Asset which was included in the Reference Balance Sheet and is included in the Pre-Closing Balance Sheet to a Net Book Value that is greater than its Net Book Value in the Reference Balance Sheet; *provided*, that the

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

Pre-Closing Balance Sheet shall not necessarily be construed to establish, limit or determine the fair market value of any asset for U.S. federal, state or local income Tax purposes, and (ii) a certificate of Seller executed by a duly authorized representative of Seller (the "**Pre-Closing Certificate**") setting forth thereon Seller's good faith estimate of the Net Book Value as of the Applicable Closing Date (the "**Estimated Net Book Value**"), which shall be derived from and supported by the Pre-Closing Balance Sheet. Seller shall consider in good faith any comments provided by Purchaser in respect of the Pre-Closing Balance Sheet but the Seller's determination will be final for purposes of the Applicable Closing. Seller and its independent public accountant ("**Seller's Accountant**"), to the extent Seller's Accountant has been involved in the preparation of the Pre-Closing Balance Sheet, shall make all of their respective work papers and other relevant documents in connection with the preparation of the Pre-Closing Balance Sheet available to Purchaser and its accountant (the "**Purchaser's Accountant**") upon reasonable request, subject to customary privilege and confidentiality practices and shall make the persons in charge of the preparation of the Pre-Closing Balance Sheet available for reasonable inquiry by Purchaser and its accountants upon request, which shall not be unreasonably withheld. For the purposes of this Agreement, the Pre-Closing Balance Sheet shall be calculated in a manner consistent with the example calculation set forth on <u>Schedule 1.5(b)</u>, including without limitation, the example methodology, line items, policies and procedures set forth on <u>Schedule 1.5(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**As soon as practicable, and in no event later than [\*\*\*] following the last Applicable Closing Date, Purchaser shall prepare and deliver to Seller an unaudited balance sheet with respect to the "Purchased Assets", "Assumed Liabilities" and "Net Book Value" as of the Applicable Closing Date (the "**Closing Date Balance Sheet**"), which shall set forth the Net Book Value as of the Applicable Closing Date (the "**Closing Date Net Book Value**") as derived from and supported by the Closing Date Balance Sheet. The Closing Date Balance Sheet shall (1) contain the same line item categories as those contained in the Reference Balance Sheet and the Pre-Closing Balance Sheet and (2) be in accordance with the Accounting Principles used in the preparation of the Reference Balance Sheet; *provided*, that neither the Closing Date Balance Sheet nor any Closing Date Net Book Value calculation shall necessarily determine or limit the fair market value of the Purchased Assets or the allocation of the Purchase Price for any U.S. federal, state, or local income Tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**Seller shall notify Purchaser in writing (such notice, the "**Objection Notice**") as soon as practicable, and in no event more than [\*\*\*] ("**Review Period**"), following receipt of the Closing Date Balance Sheet if Seller does not agree with the Closing Date Net Book Value calculations set forth thereon. The Objection Notice, if any, shall specify those items or amounts with which Seller disagrees and shall include a reasonably detailed explanation of Seller's basis for each item or amount in dispute and Seller's alternative calculation of the item or amount in dispute. As part of such review, upon Seller's request and at Seller's expense, Purchaser shall provide the Seller and the Seller's Accountant with reasonable access (during normal business hours and without material interference to the operations of the Purchaser Group) to the books and records and personnel of Purchaser for the purpose of enabling the Seller and the Seller's Accountant to calculate, and to review Purchaser's calculation of, the Closing Date Net Book Value. If Seller fails to deliver an Objection Notice to Purchaser before the expiration of the Review Period, then Purchaser's Closing Date Balance Sheet and the calculations therein shall be final and binding on Seller and Purchaser. In the event Seller submits an Objection Notice, then Purchaser and Purchaser's Accountant, on the one hand, and Seller and Seller's Accountant, on the other, will use good faith efforts for a period of [\*\*\*] after Purchaser's receipt of the Objection Notice (the "**Resolution Period**") to resolve any differences they may have as to the Closing Date Net Book Value. If Seller and Purchaser cannot reach agreement during the Resolution Period, they shall submit their disagreements within [\*\*\*] after the

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

expiration of the Resolution Period to an independent, nationally-recognized public accounting firm jointly selected by Seller and Purchaser (the "**Independent Accountant**"), which shall conduct such additional review as is necessary to resolve the specific disagreements referred to it and, based thereon, shall determine the Closing Date Net Book Value. Each of Purchaser and Seller will be afforded the opportunity to present to the Independent Accountant any material related to the determination of such dispute and to discuss the determination of such dispute with the Independent Accountant; *provided*, that no Party shall initiate discussions with the Independent Accountant without the other Party being given an opportunity to participate in such discussion and each Party shall provide the other Party with copies of any materials provided to the Independent Accountant. For the avoidance of doubt, there shall be no *ex parte* communications between any Party and the Independent Accountant. The Independent Accountant shall act as an expert, not an arbitrator, to determine, based solely on the written submissions of the Parties and not by independent investigation, only the specific items under dispute by the Parties. In resolving any disputed item, the Independent Accountant shall (A) apply the terms and conditions of this Agreement, including the Accounting Principles, (B) consider only those disputed items and amounts that Purchaser and Seller are unable to resolve, and (C) not assign a value to any item greater than the greatest value for such item claimed by Seller or Purchaser or less than the least value for such item claimed by Seller or Purchaser. The Independent Accountant's determination of the Closing Date Net Book Value, which shall be completed as promptly as practicable but in no event later than [\*\*\*] following its selection, shall be confirmed by the Independent Accountant in writing to, and shall be final and binding on, Seller and Purchaser for all purposes. If the Closing Date Net Book Value as determined by the Independent Accountant is closer to the Closing Date Net Book Value advocated by (i) Seller than it is to the Closing Date Net Book Value advocated by Purchaser, Purchaser shall pay the fees, costs and expenses of the Independent Accountant for services rendered pursuant to this <u>Section 1.5(b)(iii)</u> or (ii) Purchaser than it is to the Closing Date Net Book Value advocated by Seller, Seller shall pay the fees, costs and expenses of the Independent Accountant for services rendered pursuant to this <u>Section 1.5(b)(iii)</u>. Otherwise, such fees, costs and expenses shall be paid equally by Seller and Purchaser. Except in the case of Fraud, this <u>Section 1.4(b)(iii)</u> shall be the exclusive procedure for determination of the Closing Date Net Book Value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**In the event that the Closing Date Net Book Value determined in accordance with subparagraphs (ii) and (iii) of this <u>Section</u> <u>1.5(b)</u>, as the case may be (the "**Final Net Book Value**") is less than the Estimated Net Book Value (such difference being herein referred to as the "**Net Worth Deficiency**"), then Seller shall, within [\*\*\*] following the date of determination of the Final Net Book Value (the "**Determination Date**"), pay to Purchaser an amount equal to the Net Worth Deficiency. In the event that the Final Net Book Value is greater than the Estimated Net Book Value (such difference being herein referred to as the "**Net Worth Excess**"), Purchaser shall, within [\*\*\*] following the Determination Date, pay to Seller an amount equal to the Net Worth Excess. Any payment or set-off made pursuant to this <u>Section</u> <u>1.5(b)</u><u>(iv)</u> shall be treated by the Parties as an adjustment to the Purchase Price for all U.S. federal, state and local income Tax purposes unless otherwise required by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)**The Parties agree that there shall be no duplication of recovery for any item, amount, Damage, liability, or shortfall addressed or taken into account in the determination of the Final Net Book Value. Without limiting the foregoing, (1) no Party shall be entitled to recover the same Damage, shortfall, or amount more than once under different provisions of this Agreement, and (2) any amount reflected in, reserved for, or otherwise included in the calculation of the Final Net Book Value shall not form the basis of, or be recoverable again as, an indemnifiable Damage or other claim hereunder. The Parties shall use commercially reasonable efforts to avoid duplicative payments and to make appropriate correlative adjustments to ensure compliance with this <u>Section</u> <u>1.5(b)</u>.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)**In the event of the sale and purchase of the Specified European Assets, on the Applicable Closing Date of the sale of such Specified European Assets (or European Territory portion thereof as the case may be), the Parties shall apply the principals and adjustment mechanisms set forth in this Section 1.5(b) to the Specified European Assets and Assumed Liabilities (as the case may be) to obtain the same result as if such sale(s) occurred on the Initial Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6** **Withholding.** Purchaser, any Purchaser Affiliate and any of their respective Affiliates or agents shall be entitled to deduct and withhold from any payments made pursuant to this Agreement such amounts as may be required to be deducted and withheld with respect to such payments under the Code or any other applicable Law and shall be provided any necessary Tax forms, including IRS Form W-9 or applicable IRS Form W-8 and any similar Tax information, from Seller, each applicable Seller Affiliate and any other recipient of any consideration paid pursuant to this Agreement. Solely with respect to the acquisition of the Specified Initial Assets or, if applicable, the Specified European Assets, Purchaser agrees to (a) use commercially reasonable efforts to provide Seller with at least [\*\*\*] prior written notice regarding any proposed withholding amounts, (b) give Seller a reasonable opportunity to provide additional information or to apply for an exemption from, or a reduced rate of, withholding and (c) otherwise reasonably cooperate with any request to obtain reduction of or relief from such deduction or withholding. To the extent that amounts are so withheld, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of which such deduction and withholding was made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7** **Allocation of Purchase Price**. For U.S. federal and applicable state and local income tax purposes, the Parties agree to allocate the Purchase Price, Assumed Liabilities, and any other amount considered to be purchase consideration for U.S. federal and applicable state and local income Tax purposes among the Purchased Assets in accordance with Section 1060 of the Code and the Treasury Regulations thereunder. Purchaser shall prepare and deliver to the Seller an allocation schedule (the "**Allocation Schedule**") within [\*\*\*] of the final determination of the Purchase Price as last Applicable Closing pursuant to <u>Section</u> <u>1.5(b)</u>. If Seller does not notify Purchaser in writing of its objections to the Allocation Schedule within [\*\*\*] of receipt thereof, such Allocation Schedule shall be deemed final and binding for all purposes of this Agreement. If Seller objects to the Allocation Schedule, it shall notify Purchaser in writing of such disputed item (or items), its basis for objection in reasonable detail, and proposed changes within [\*\*\*] of the receipt of the Allocation Schedule, and the Parties shall negotiate in good faith and shall use reasonable efforts to resolve any such dispute within [\*\*\*] after the delivery of the written objections to the Allocation Schedule to Purchaser. If Seller and Purchaser are unable to resolve any dispute with respect to the Allocation Schedule within [\*\*\*] after the delivery of the written objections to the Allocation Schedule to Purchaser, such dispute will be resolved in the same manner as disputes with respect to the calculation of Final Net Book Value under <u>Section</u> <u>1.5(b)</u><u>(iii)</u>. Purchaser, Seller and their respective Affiliates shall file all U.S. federal and applicable state and local income Tax Returns (including IRS Form 8594) in a manner consistent with the Allocation Schedule and shall not take any position before any U.S. federal, state or local income taxing authority that is inconsistent with the Allocation Schedule unless required by a "final determination" within the meaning of Section 1313(a) of the Code. If any taxing authority disputes the allocation set forth in the Allocation Schedule, the Parties subject to such dispute shall be entitled to settle the dispute in any manner in its sole discretion, and no Party shall have any obligation to the other Parties under this Agreement to the extent that the allocation set forth in the Allocation Schedule is not upheld by the applicable taxing authority. The Parties hereto acknowledge and agree that, for U.S. federal and applicable state and local income Tax purposes, any deferred revenue obligations assumed by Purchaser

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

pursuant to this Agreement shall not be treated as giving rise to taxable income of Purchaser or any of its Affiliates under the principles of James M. Pierce Corp., 326 F.2d 67 (8th Cir. 1964).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8** **Closings; Closing Conditions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)Closings**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**Subject to the terms and conditions of this Agreement, the closing of the transactions contemplated hereunder in respect of the Specified Initial Assets (the "**Initial Closing**"), shall take place remotely via the exchange of documents and signatures on January 1, 2026, following the satisfaction and/or waiver of all conditions to the Initial Closing set forth in <u>Section</u> <u>5</u> or at such other place, time or date as may be mutually agreed upon in writing by Seller and Purchaser. For purposes of this Agreement, "**Initial Closing Date**" shall mean the time and date as of which the Initial Closing actually takes place. Except to the extent expressly set forth in this Agreement to the contrary, and notwithstanding the actual occurrence of the Initial Closing at any particular time, the Initial Closing shall be deemed to occur and be effective, in the United States, as of 10:00 a.m. Eastern Standard Time on the Initial Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**Subject to the terms and conditions of this Agreement and the Local Purchase Agreements, unless otherwise designated by the Parties, the closing of the transactions contemplated hereunder in respect of the Specified European Assets by the applicable Purchaser Affiliate(s) shall occur on the terms and subject to the conditions of this Agreement and the Local Purchase Agreements with effect from the Applicable Closing or such date and time as set forth in such Local Purchase Agreement and in accordance with <u>Section 1.10</u> (*European CGM Activities*). Except to the extent expressly set forth in the applicable Local Purchase Agreement to the contrary, the Applicable Closing in any jurisdiction within the European Territory, shall be deemed to occur and be effective as of 10:00 a.m. Eastern Standard Time on the Applicable Closing Date in such jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**At the Initial Closing and each Applicable Closing (unless otherwise noted below), the Seller (and/or applicable Seller Affiliate) and Purchaser (and/or applicable Purchaser Affiliate) will enter into the following additional agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**a bill of sale, assignment and assumption agreement (or equivalent document for any jurisdiction outside of the U.S.) as necessary assign, convey, transfer and deliver to Purchaser good and valid title to the respective Purchased Assets free of any Encumbrances and all of Seller's right title, and interest in and to the respective Transferred Contracts, in substantially the form attached hereto as **Exhibit B** (the "**Bill of Sale and Assumption Agreement**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**such reasonable instruments of sale and assignment as mutually agreed between the Parties as necessary to vest in Purchaser (or Purchaser Affiliate) as of the Applicable Closing all of the applicable Seller or Seller Affiliate's right, title and interest in the Purchased Assets, including, without limitation, (i) an intellectual property assignment agreement in a form reasonably satisfactory to Purchaser, and (ii) such separate assignments of any intangible Purchased Assets necessary to record the transfer of such Purchased Assets with any applicable governmental agency, lessor or other party with whom such assignments must be filed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**at the first Applicable Closing, the Transition Services Agreement; and

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**at the Initial Closing, the Amended and Restated Existing Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9** **Transfer Taxes.** Except as otherwise provided by the Local Purchase Agreements with respect to the specific transactions contemplated by such Local Purchase Agreements, all transfer, documentary, sales, use, value-added, gross receipts, stamp, registration, property, excise, transfer or other similar taxes, charges or fees incurred in connection with the transfer and sale of the Purchased Assets, including all recording or filing fees and other similar costs of the Applicable Closing, that may be imposed, payable, collectible or incurred (collectively, "**Transfer Taxes**"), shall be borne by Seller or the applicable Seller Affiliate, and the applicable Party shall make all filings, returns, reports and forms as may be required to comply with the provisions of all applicable Law relating to Transfer Taxes and shall reasonably cooperate with the other Party in connection with such filings, including by executing and delivering any certificates, forms or other documents reasonably required to reduce, eliminate or comply with any Transfer Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10** **European CGM Activities.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)Sale of Specified European Assets.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**It is the Parties' mutual desire to consummate the transaction for the sale of the Specified Initial Assets in the U.S. prior to finalizing the negotiation and agreement on certain terms and matters relating to the sale of the Specified European Assets, including finalization of the Local Purchase Agreements. Following the Initial Closing, the Parties will negotiate in good faith to finalize open agreements, documents and terms relating to the sale of Specified European Assets (in Germany, Italy, Spain and Sweden). The Parties shall negotiate Local Purchase Agreements on the terms and conditions set forth in this Agreement, as further detailed below, and any sale and purchase of the Specified European Assets shall occur on the terms and subject to the conditions of this Agreement and the Local Purchase Agreements with effect from the date and time set forth in each respective Local Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**Each Local Purchase Agreement shall (a) be on terms and conditions substantially consistent with this Agreement, subject to adjustments for the nature, value and applicable Law governing the Specified European Assets and European CGM Employees, (b) be based on the representations, warranties, covenants, and indemnities set forth in this Agreement and set forth in the draft Local Purchase Agreements as partially negotiated between the parties as of the date of this Agreement, subject to further negotiation and review with counsel. Finalization of the Local Purchase Agreements require that Seller deliver a substantially complete draft of the asset schedules identifying all (a) Specified European Assets to be transferred at each Applicable Closing (which the Parties may agree to organize by each European Territory), and (b) the European Disclosure Schedule setting forth any exceptions to Seller Group representations and warranties in <u>Section</u> <u>2</u> of this Agreement with respect to such Specified European Assets and the European CGM Activities. The Parties shall review the current draft of such schedules, discuss in good faith the form and substance of such schedules, and make such modifications as are reasonably satisfactory to the Parties. The Parties shall cooperate in good faith with a goal to review and finalize such schedules on or prior to [\*\*\*], subject to an agreed provision in the schedules to account for anticipated ongoing collaborative work on the transferred contract and consent schedules. The Parties shall use commercially reasonable efforts to negotiate, finalize and execute the Local Purchase Agreements and any and all related documentation and agreements governing the sale of the Specified European Assets in each European Territory with a goal of concluding such negotiations on or prior to [\*\*\*]. Prior to the delivery of executed documentation of each Party evidencing the conclusion of the negotiations

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

contemplated by this subparagraph (ii) and agreement to join Schedules and forms of local purchase agreements relating to the Specified European Assets to this Agreement, covenants and other provisions of this Agreement which presuppose the completion of these documents shall not be of effect but shall commence upon such joinder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)Local Purchase Agreements.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**Further, Seller shall, and shall cause the other applicable Seller Affiliates to, and Purchaser shall and cause its applicable Purchaser Affiliates to negotiate and deliver to the other Party the Local Purchase Agreements and any and all related documentation and agreements for each European Territory (such agreement not to be unreasonably withheld, conditioned or delayed) as being necessary or appropriate to effect the sale, transfer, conveyance, assignment, delivery or assumption of any Purchased Asset in any such jurisdiction (each such jurisdiction where a Local Purchase Agreement is anticipated to be executed and delivered pursuant to this <u>Section 1.10</u>, a "**Local Purchase Agreement Jurisdiction**"). The Parties acknowledge and agree that the execution and/or delivery of the Local Purchase Agreements may require prior consultation with or notice, information or notification to, the relevant employee representative body of Seller or Purchaser (or any of their respective Affiliates), as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**Notwithstanding anything to the contrary in this Agreement or any Local Purchase Agreement, the Parties acknowledge and agree that (i) the Local Purchase Agreements shall be entered into solely for purposes of implementing the sale, transfer, conveyance, assignment, delivery and assumption, as applicable, of the Specified European Assets and Assumed European Liabilities in compliance with applicable Law in each Local Purchase Agreement Jurisdiction and (ii) the Local Purchase Agreements shall not expand or limit the rights, obligations or other Liabilities of the Parties or their respective Affiliates, beyond those provided for, or to which such party is subject to, in this Agreement, except as otherwise expressly agreed in writing between the Parties or as required under applicable Law. Without limiting the generality of the immediately preceding sentence, in the event of any conflict between the terms of any Local Purchase Agreement and this Agreement, Seller and Purchaser agree and acknowledge that the term of this Agreement shall control and that, if necessary, the Parties shall, and shall cause their respective Affiliates to, deliver such additional instruments or agreements (also in notarial form) as may be necessary to accomplish the foregoing, unless applicable Law requires otherwise. Notwithstanding anything to the contrary, applicable Law requirements (including in rem transfer, employment and works council matters) shall be governed and interpreted by the Law the Local Purchase Agreement Jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**Notwithstanding anything to the contrary in this Agreement or any Transactional Agreement, the Parties acknowledge and agree that: (A) the sale, conveyance, assignment, transfer and delivery of the Specified European Assets shall be effected solely in, and shall be limited strictly to, the jurisdiction of the applicable Local Purchase Agreement for each European Territory pursuant to which such transfer is consummated; (B) no Specified European Assets shall be deemed sold, conveyed, assigned, transferred or delivered in, into, or under the applicable Laws of any jurisdiction other than the specific country expressly identified in the corresponding Local Purchase Agreement for such Specified European Assets; and (C) no Local Purchase Agreement shall have any extraterritorial effect or operate to transfer, assign, novate, deliver or otherwise vest title to, or any rights in, any Specified European Assets located in, registered in, arising under, or governed by the Laws of, any other country outside the European Territory. For the avoidance of doubt, (1) title to, and risk of loss for, any Purchased Asset shall

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

pass only upon the consummation of the transfer of such Purchased Asset under the applicable Local Purchase Agreement in the country where such Purchased Asset is located, registered, or otherwise required by applicable Law to be transferred, (2) any reference in this Agreement to the sale or transfer of the "Purchased Assets" shall be interpreted on a country-by-country basis and shall be limited to those Purchased Assets validly transferred under the applicable Local Purchase Agreement in the applicable European Territory, and (3) no failure to consummate any transfer in one country within the European Territory shall affect or impair the validity or enforceability of any transfer consummated in any other country within the European Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)Italy.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**The sale and purchase of the Italy Purchased Assets (if any) shall occur on the terms and subject to the conditions of Italy Local Purchase Agreement and this Agreement with effect from the date and time set forth in the Italy Local Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**Subject to the terms of this Agreement and the Italy Local Purchase Agreement, the closing of (A) the sale, transfer, assignment, and conveyance by Seller or the other applicable Seller Affiliates of the Italy Purchased Assets, (B) the assumption by Purchaser (or a Purchaser Affiliate) of the Italy Assumed Liabilities and (C) the transfer of the Italy Transferred Employees to Purchaser (or a Purchaser Affiliate) ((A)-(C), collectively, the "**Italy Closing**"), shall take place before the Italian Notary selected by the applicable Purchaser Affiliate on the [\*\*\*] after the closing conditions set forth in <u>Section</u> <u>5</u> (*Conditions Precedent to Closings*) and under the Italy Local Purchase Agreement are satisfied, or such other date, time and location agreed to by the parties to the Italy Local Purchase Agreement (the "**Italy Closing Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)Germany.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**The sale and purchase of the Germany Purchased Assets (if any) shall occur on the terms and subject to the conditions of Germany Local Purchase Agreement and this Agreement with effect from the date and time set forth in the Germany Local Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**Subject to the terms of this Agreement and the Germany Local Purchase Agreement, the closing of (A) the sale, transfer, assignment, and conveyance by Seller or the other applicable Seller Affiliates of the Germany Purchased Assets, (B) the assumption by Purchaser (or a Purchaser Affiliate) of the Germany Assumed Liabilities and (C) the transfer of the Germany Transferred Employees to Purchaser (or a Purchaser Affiliate) ((A)-(C), collectively, the "**Germany Closing**"), shall take place remotely via the exchange of documents and signatures at 10:00 a.m., Eastern Standard Time on the [\*\*\*] after the closing conditions set forth in <u>Section</u> <u>5</u> (*Conditions Precedent to Closings*) and under the Germany Local Purchase Agreement are satisfied, or such other date, time and location agreed to by the parties to the Germany Local Purchase Agreement (the "**Germany Closing Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)Spain.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**The sale and purchase of the Spain Purchased Assets (if any) shall occur on the terms and subject to the conditions of Spain Local Purchase Agreement and this Agreement with effect from the date and time set forth in the Spain Local Purchase Agreement.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**Subject to the terms of this Agreement and the Spain Local Purchase Agreement, the closing of (A) the sale, transfer, assignment, and conveyance by Seller or the other applicable Seller Affiliates of the Spain Purchased Assets, (B) the assumption by Purchaser (or a Purchaser Affiliate) of the Spain Assumed Liabilities and (C) the transfer of the Spain Transferred Employees to Purchaser (or a Purchaser Affiliate) ((A)-(C), collectively, the "**Spain Closing**"), shall take place remotely via the exchange of documents and signatures at 10:00 a.m., Eastern Standard Time on the [\*\*\*] after the closing conditions set forth in <u>Section</u> <u>5</u> (*Conditions Precedent to Closings*) and under the Spain Local Purchase Agreement are satisfied, or such other date, time and location agreed to by the parties to the Spain Local Purchase Agreement (the "**Spain Closing Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)Sweden.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**The sale and purchase of the Sweden Purchased Assets (if any) shall occur on the terms and subject to the conditions of Sweden Local Purchase Agreement and this Agreement with effect from the date and time set forth in the Sweden Local Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**Subject to the terms of this Agreement and the Sweden Local Purchase Agreement, the closing of (A) the sale, transfer, assignment, and conveyance by Seller or the other applicable Seller Affiliates of the Sweden Purchased Assets, (B) the assumption by Purchaser (or a Purchaser Affiliate) of the Sweden Assumed Liabilities and (C) the transfer of the Sweden Transferred Employees to Purchaser (or a Purchaser Affiliate) ((A)-(C), collectively, the "**Sweden Closing**"), shall take place remotely via the exchange of documents and signatures at 10:00 a.m., Eastern Standard Time on the [\*\*\*] after the closing conditions set forth in <u>Section</u> <u>5</u> and under the Sweden Local Purchase Agreement are satisfied, or such other date, time and location agreed to by the parties to the Sweden Local Purchase Agreement (the "**Sweden Closing Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)Delivery of Specified European Assets.** Seller (or the applicable Seller Affiliate) shall deliver the Specified European Assets and European Transferred Technology to Purchaser (or the applicable Purchaser Affiliate) at the Applicable Closing in a format and manner as reasonably requested by Purchaser (or a Purchaser Affiliate) prior to such Applicable Closing Date and in accordance with the Local Purchase Agreements. Seller (or the applicable Seller Affiliate) shall deliver all non-physical Specified European Assets and European Transferred Technology to Purchaser or a Purchaser Affiliate at the Applicable Closing in a format and manner as reasonably requested by Purchaser or a Purchaser Affiliate prior to the Applicable Closing Date. To the extent delivery of such Specified European Assets and/or European Transferred Technology (excluding Transferred Inventory) results in costs (excluding Transfer Taxes) incurred by any member of the Seller Group, such costs shall be borne equally by the Seller and Purchaser.

**2.** **Representations and Warranties of the Seller Group**.

Seller represents and warrants to and for the benefit of Purchaser Parties as follows, (i) solely with respect to the Specified Initial Assets and U.S. CGM Activities and as qualified by the Initial Disclosure Schedule, as of the Agreement Date and as of the Initial Closing Date, and (ii) in respect of the Specified European Assets and European CGM Activities and as qualified by the European Disclosure Schedule, as of the Italy Closing, the Germany Closing, the Spain Closing, and the Sweden Closing (in each case, as applicable) and as of such Applicable Closing Date:

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1** **Due Organization.** Seller is a corporation duly incorporated and validly registered on the Swiss Commercial Register and in good standing under the laws of Switzerland. Each other member of the Seller Group that is party to this Agreement or any other Transactional Agreement is a corporation, limited liability company, limited partnership or other applicable business entity duly incorporated, organized or formed, as applicable, validly existing and in good standing (or the equivalent thereof, if applicable, in each case, with respect to the jurisdictions that recognize the concept of good standing or any equivalent thereof) under the Laws of its jurisdiction of incorporation, organization or formation, as applicable. Each member of the Seller Group that is a party to this Agreement or any other Transactional Agreement is duly qualified to do business and is in good standing (or the equivalent thereof, if applicable, in each case, with respect to the jurisdictions that recognize the concept of good standing or any equivalent thereof) as a foreign Person in each jurisdiction where the ownership or operation of its Purchased Assets or the conduct of its portion of the CGM Activities requires such qualification, except for those jurisdictions where failure to be so qualified or in good standing (i) would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and (ii) would not reasonably be expected to affect the ability of Seller or any Seller Affiliate that is party to the Transactional Agreements to timely perform its obligations under this Agreement or any of the other Transactional Agreements. Seller is in good standing as a foreign company in each of the jurisdictions listed in Part 2.1 of the Disclosure Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2** **Authority; Binding Nature Of Agreements.** Seller and the Seller Affiliates party to the Transactional Agreements have all necessary power and authority to execute, deliver and perform this Agreement and any Transactional Agreements to which it is or may become a party and to complete the transactions contemplated hereby and thereby; and the execution, delivery and performance by such member of Seller Group of the Transactional Agreements to which it is or may become a party have been duly authorized by all necessary action on the part of the Seller Group. This Agreement constitutes the legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, subject to the General Enforceability Exceptions. Upon the execution of each of the other Transactional Agreements on the Initial Closing Date, and as applicable on the Applicable Closing Date, each of such other Transactional Agreements to which a member of the Seller Group is a party will constitute the legal, valid and binding obligation of the applicable member of the Seller Group and will be enforceable against each of Seller and the applicable Seller Affiliate, subject to the General Enforceability Exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3** **Title To and Sufficiency of Purchased Assets**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**The Seller Group has good, marketable and valid title to all of the Purchased Assets and has valid and transferable rights, licenses or ownership interests in and to all Transferred Technology, free and clear of any Encumbrances, except for Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**The Purchased Assets (i) constitute all of the assets (tangible or intangible) that are necessary for the conduct of the CGM Activities as it is conducted immediately prior to the Applicable Closing and (ii) are sufficient for the conduct and operation of the U.S. CGM Activities and European CGM Activities, respectively, immediately after the Applicable Closing in substantially the same manner as conducted prior to Closing in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4** **Inventory.** Part 2.3 of the Disclosure Schedule sets forth all Transferred Inventory of Seller and the Seller Affiliates as of the date of this Agreement based on jurisdiction and sets forth a list of all of the physical locations of such Transferred Inventory. All Transferred Inventory has been shipped, stored and otherwise maintained in accordance with applicable Law and in compliance with the applicable

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

terms and conditions of the Quality Agreement (as defined in the Existing Agreement) (the "**Quality Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5** **Intellectual Property**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)Registered IP.** Part 2.4(a) of the Disclosure Schedule completely and accurately identifies (i) each item of Registered IP owned or exclusively licensed by Seller or any Seller Affiliate used in connection with the U.S. CGM Activities and European CGM Activities, (ii) the jurisdiction in which such item of Registered IP has been registered or filed, and (iii) the applicable registration or serial number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)Inbound Licenses.** Part 2.5(b) of the Disclosure Schedule completely and accurately identifies each Transferred Contract pursuant to which any CGM IP is or has been licensed, sold, assigned, or otherwise conveyed or provided to Seller or any Seller Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)Outbound Licenses.** Part 2.5(c) of the Disclosure Schedule completely and accurately identifies each Transferred Contract pursuant to which any Person has been granted any license under, or otherwise has received or acquired any right (whether or not currently exercisable) or interest in, any CGM IP. No member of the Seller Group is bound by, and no CGM IP is subject to, any Transferred Contract that materially restricts the ability of the Seller Group to use, exploit, assert, or enforce any CGM IP anywhere in the world.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)Ownership Free and Clear.** The Seller Group exclusively owns all right, title, and interest to and in any CGM IP (other than Intellectual Property licensed to Seller or a Seller Affiliate, as identified in, or excluded from listing in, Part 2.5(b) of the Disclosure Schedule) free and clear of any Encumbrances (other than non-exclusive licenses granted in the Ordinary Course of Business) (the "**Owned CGM IP**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)Third-Party Infringement of CGM IP.** To the Knowledge of the Seller, no Person has infringed, misappropriated, or otherwise violated, and no Person is currently infringing, misappropriating, or otherwise violating, any Owned CGM IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)Infringement Claims.** Except as set forth on Part 2.4(g) of the Disclosure Schedule, no infringement, misappropriation, or similar claim or Proceeding is pending or, to the Sellers Knowledge, threatened against the Seller or any Seller Affiliate, in each case, relating to the CGM Activities. No member of the Seller Group has received any written notice (or to Seller's Knowledge, other communication) relating to any actual or alleged infringement, misappropriation, or violation by any member of the Seller Group in conducting the CGM Activities, of any Intellectual Property of another Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)Data Privacy and Information Security**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**The Seller Group has since the Reference Date, complied in all material respects with all applicable (A) Privacy Laws, (B) terms of any Contract by which any entity within the Seller Group is bound relating to privacy, information security, or Processing of Sensitive Data (including without limitation, data processing agreements, information security schedules, and data transfer agreements), (C) Privacy Policies in each case with respect to the operation of the CGM Activities, (collectively, the "**Privacy Requirements**").

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**The Seller Group has sufficient rights and authority, including without limitation under applicable Privacy Requirements, to permit the Processing of Personal Data by or for the Seller Group as currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**To the extent required under applicable Privacy Law, the Seller Group has: (i) provided adequate notice and obtained all necessary consents, in each case, as required for its Processing of Personal Data under applicable Privacy Requirements; and (ii) has honored applicable opt-outs. The Seller Group represents that it has not knowingly or intentionally deleted any Sensitive Data (including sales leads, prospects, etc.) from the Purchased Assets prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**To Seller's Knowledge, neither the execution, delivery, or performance of this Agreement, nor the consummation of the transactions contemplated by this Agreement, nor the disclosure or transfer of Sensitive Data to the Purchaser Parties in connection with the transactions contemplated by this Agreement, will violate any Privacy Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)**There is not, and has not been since the Reference Date, any Proceeding, Order or Contract with any Governmental Body or other Person or other written allegation (or to Seller's Knowledge, other communication) involving the Seller Group which materially restricts, impairs, encumbers, hinders, or imposes requirements in connection with, its Processing of any Personal Data. There is not, and has not been since the Reference Date, any Proceeding or other written allegation (or to Seller's Knowledge, other communication) involving the Seller Group by any Governmental Body or other Person relating to the Seller Group's privacy or data security practices, the security of any Sensitive Data or Transferred Seller IT Systems or the Processing of Sensitive Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)Information Security**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**The Transferred Seller IT Systems are, to Seller's Knowledge, in good working condition and are sufficient for the operation of the CGM Activities as currently conducted. To Seller's Knowledge, the Seller Group has not experienced any material disruption to, or material interruption in, the conduct of their business attributable, in whole or in part, to a defect, error, interruption or other failure or deficiency of the Transferred Seller IT Systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**The Seller Group has implemented, maintained, and complied with written information security policies and procedures reasonably designed to protect the confidentiality, availability, security, and integrity of the Transferred Seller IT Systems and Sensitive Data and to comply in all material respects with applicable Privacy Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**To Seller's Knowledge, since the Reference Date, the Seller Group has not experienced a Security Incident. The Seller Group has not received any written claim or notice (or to Seller's Knowledge, other communication) from any Person, Governmental Body, or other third party that a Security Incident may have occurred or is being investigated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**Since the Reference Date, the Seller Group has taken and, if applicable, is currently taking prompt, commercially reasonable actions in response to material risks, threats, and vulnerabilities identified in assessments, scans, penetration tests, or other analyses related to the Seller Group or the Seller IT Systems or about which the Seller Group is otherwise aware. To Seller's Knowledge, Transferred Seller IT Systems are free from malicious code and the Seller Group has not identified and is

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

not otherwise aware of any currently un-remediated security vulnerabilities classified as "critical" or "high" (or of similarly significant risk) affecting the Transferred Seller IT Systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6** **Contracts**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**The Contracts listed on <u>Schedule B</u> include all Seller Contracts. Seller has delivered to Purchaser accurate and complete copies of all Transferred Contracts, including all amendments thereto. Each Transferred Contract is a legal, valid and binding obligation of Seller or any Seller Affiliate and, to Seller's Knowledge, each other party to such Transferred Contract, and is enforceable against Seller or any Seller Affiliate and, to Seller's Knowledge, each such other party in accordance with its terms, except in each case as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, fraudulent conveyance, and other similar Laws and principles of equity affecting creditors' rights and remedies generally (the "**General Enforceability Exceptions**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**Except as set forth in Part 2.6(b) of the Disclosure Schedule, (i) Seller or the Seller Affiliate, as applicable, has not violated or breached, or declared or committed any default under, any Transferred Contract; (ii) to Seller's Knowledge, no event has occurred, and no circumstance or condition exists, that might (with or without notice or lapse of time) (1) result in a violation or breach of any of the provisions of any Transferred Contract, (2) give any Person the right to declare a default or exercise any remedy under any Transferred Contract, (3) give any Person the right to accelerate the maturity or performance of any Transferred Contract, or (4) give any Person the right to cancel, terminate or modify any Transferred Contract; (iii) neither Seller nor any Seller Affiliate has received any written notice or, to Seller's Knowledge, other communication regarding any violation or breach of, or default under, any Transferred Contract; and (iv) neither Seller nor any Seller Affiliate has waived any right under any Transferred Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**To Seller's Knowledge, the performance of the Transferred Contracts in accordance with their terms will not result in any violation of or failure to comply with any applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**Except as set forth on Part 2.6(d) on the Disclosure Schedule, the Purchased Assets, Transferred Contracts and CGM IP collectively constitute all of the assets and Contracts necessary to enable Purchaser to conduct the CGM Activities in substantially the same the manner in which it is currently being conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7** **Compliance with Law.** Except as set forth in Part 2.6 of the Disclosure Schedule: (a) Seller and each Seller Affiliate is in compliance, with, and has within the last five (5) years been in compliance with all Laws that is or was applicable to the conduct of the CGM Activities or the ownership or use of any of the Purchased Assets, except, in each case, as is not and would not reasonably be expected to be, individually or in the aggregate, material to the CGM Activities; (b) to Seller's Knowledge, no event has occurred, and no condition or circumstance exists, that might (with or without notice or lapse of time) constitute or result directly or indirectly in a violation by Seller or any Seller Affiliate of, or a failure on the part of Seller or any Seller Affiliate to materially comply with, any Law with respect to the CGM Activities or the Purchased Assets; and (c) neither Seller nor any Seller Affiliate has received, at any time within the last three (3) years, any notice or other communication (in writing or otherwise) from any Governmental Body or any other Person asserting that Seller, the Purchased Assets or the CGM Activities are not in compliance with any Law, except as is not and would not reasonably be expected to be, individually or in the aggregate, material to the CGM Activities.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.8** **Environmental Matters.** Seller and each of the Seller Affiliates, in respect of the CGM Activities, the Purchased Assets, and the Assumed Liabilities, is and has been for the last three (3) years in material compliance with all Environmental Laws applicable to the CGM Activities, including possession of, and the compliance with, all material permits required under applicable Environmental Laws and has not received any notice or other communication (in writing or otherwise) from any Governmental Body or other Person alleging any violation of any Environmental Law in respect of the CGM Activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9** **Governmental Authorizations.** Part 2.9 of the Disclosure Schedule identifies each Governmental Authorization that is held by Seller and/or any Seller Affiliate that is used in the CGM Activities or that is required under any Transferred Contract. Seller has delivered to Purchaser accurate and complete copies of all of the Governmental Authorizations identified in Part 2.9 of the Disclosure Schedule, including all renewals thereof and all amendments thereto. Each Governmental Authorization identified or required to be identified in Part 2.9 of the Disclosure Schedule is valid and in full force and effect and no action or claim is pending or, to Seller's Knowledge, threatened to revoke, suspend, adversely modify or terminate any such Governmental Authorization or declare any such Governmental Authorization invalid. Each member of the Seller Group is and has at all times in the last three (3) years been in compliance with the terms and requirements of each Governmental Authorization identified or required to be identified in Part 2.8 of the Disclosure Schedule, except as is not and would not reasonably be expected to be, individually or in the aggregate, material to the CGM Activities. No member of the Seller Group has received any written notice (or to Seller's Knowledge, oral notice) that it is in violation of any of the terms or conditions of such Governmental Authorization. Within the last five (5) years, Seller has not received any written notice (or to Seller's Knowledge, oral notice) with respect to any failure by Seller to have any Governmental Authorization required for the conduct or operation of the CGM Activities. To Seller's Knowledge, the Governmental Authorizations identified in Part 2.8 of the Disclosure Schedule constitute all of the Governmental Authorizations necessary to enable the Seller Group to conduct the CGM Activities in substantially the same manner in which such business is being conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10** **Affiliate Transactions.** Except as identified on Part 2.10 of the Disclosure Schedule, no Affiliate, director, officer, employee or consultant of the Seller Group (a) has or has had any financial interest or ownership in any Purchased Asset or any asset, right or property (tangible or intangible) related to or used in the CGM Activities, (b) to Seller's Knowledge, has any claim or cause of action against the Seller Group related to the CGM Activities or any Purchased Asset or (c) is a party to any Contract, transaction, arrangement or course of dealing with Seller related to the CGM Activities or any Purchased Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11** **Proceedings; Orders.** Except as identified in Part 2.11 of the Disclosure Schedule, there is no pending Proceeding pending and, to Seller's Knowledge, no Person has threatened to commence any Proceeding related to the operations or conduct by Seller of the CGM Activities or the Purchased Assets. There are no outstanding or, to Seller's Knowledge, pending, Orders to which the CGM Activities, or any of the Purchased Assets, is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.12** **Non-Contravention; Consents.** Except as set forth in Part 2.12 of the Disclosure Schedule, neither the execution and delivery of any of the Transactional Agreements, nor the consummation or performance of any of the Transactions, will directly or indirectly (with or without notice or lapse of time):

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**contravene, conflict with or result in any violation of (i) any of the provisions of any member of the Seller Group's organizational documents, or (ii) any resolution adopted by any member of the Seller Group's board of directors or similar governing body, including any committee thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**violate or result in a breach of or constitute a default under any Law or other restriction of any Governmental Body to which any member of the Seller Group, the CGM Activities or any Purchased Asset are subject;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**contravene, conflict with or result in a violation or breach of, or result in a default under, any provision of any Transferred Contract, except as is not and would not reasonably be expected to be, individually or in the aggregate, be material to the CGM Activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**give any Person the right to (i) declare a default or exercise any remedy under any Transferred Contract, (ii) accelerate the maturity or performance of any Transferred Contract, or (iii) cancel, terminate or modify any Transferred Contract; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)**result in the imposition or creation of any Encumbrance upon or with respect to any of the Purchased Assets.

Except as set forth in Part 2.12 of the Disclosure Schedule, neither Seller nor any Seller Affiliate party to any Local Purchase Agreement is required to make any filing with or give any notice to, or to obtain any Consent from, any Person in connection with the transfer of any Transferred Contract to Purchaser, the execution and delivery of any of the Transactional Agreements or the consummation or performance of any of the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13** **Brokers and Finders.** Except as set forth in Part 2.13 of the Disclosure Schedule, the Seller Group has not agreed and will not become obligated to pay, and has not taken any action that might result in any Person claiming to be entitled to receive, any brokerage commission, finder's fee or similar commission or fee in connection with any of the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.14** **Tax Matters.** All of the Tax Returns required to be filed by Seller or an applicable Seller Affiliate that relate in whole or in part to the CGM Activities or the Purchased Assets have been timely filed with the appropriate Governmental Body and (a) all such Tax Returns are true, complete and correct in all material respects, and (b) all Taxes required to be paid by Seller or an applicable Seller Affiliate with respect to the CGM Activities or the Purchased Assets (whether or not shown on any Tax Return) have been timely paid in full. Neither Seller nor any Seller Affiliate has received any notice of audit, procedure, proceeding or contest, and is not undergoing any audit, procedure, proceeding or contest, of Tax Returns or Taxes relating to the CGM Activities or the Purchased Assets and has never received any notice of deficiency or assessment from any taxing authority with respect to any Liability for Taxes relating to the CGM Activities or the Purchased Assets which has not been fully paid or finally settled. None of the Purchased Assets or Assumed Liabilities represent prepaid amounts or deferred revenues of Seller or any Seller Affiliate the recognition of which is (or would be in the absence of the Transactions) deferred for income tax purposes to any taxable period or portion thereof after the Initial Closing. Seller and each applicable Seller Affiliate has complied in all material respects with all applicable Laws relating to the payment and withholding of Taxes and has withheld all amounts required by Law to be withheld from the wages or salaries of employees relating to the CGM Activities. There are no outstanding waivers of any limitation periods or agreements providing for an extension of time for (i) the filing of any income or other

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

material Tax Return with respect to the Purchased Assets or the CGM Activities, (ii) the assessment or collection of any Tax by any relevant Governmental Body with respect to the Purchased Assets or the CGM Activities or (iii) the payment of any Tax by Seller or any Seller Affiliate with respect to the Purchased Assets or the CGM Activities. None of the Purchased Assets constitute (i) a United States real property interest as such term is defined in Treas. Reg. Section 1.897-1(c), (ii) property required to be treated as being owned by another Person pursuant to the provisions of Section 168(f)(8) of the Internal Revenue Code of 1954, as amended and in effect immediately prior to the enactment of the Tax Reform Act of 1986, (iii) "tax-exempt use property" within the meaning of Section 168(h)(1) of the Code, (iv) "tax-exempt bond financed property" within the meaning of Section 168(g) of the Code, (v) property that is subject to Section 168(g)(1)(A) of the Code, (vi) property that is subject to a "section 467 rental agreement" as defined in Section 467 of the Code or (vii) an interest in an entity or arrangement classified as a trust, partnership, corporation, limited liability company, or other "business entity" for U.S. federal income Tax purposes. There are no Encumbrances for Taxes on any of the Purchased Assets, other than Encumbrances for Taxes not yet due and payable. No closing agreement, private letter ruling, technical advice memoranda, advance pricing agreement, consent to an extension of time to make an election or consent to a change a method of accounting, has been requested from, entered into with or issued by any Governmental Body with respect to the Purchased Assets or the CGM Activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.15** **Financial Information and Absence of Changes**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**Part 2.15 of the Disclosure Schedule sets forth a balance sheet reflecting the "Purchased Assets", "Assumed Liabilities", and "Net Book Value" as of and for the 9 month period ended September 30, 2025 (the "**Financial Statements**"). The Financial Statements present, in all material respects, the CGM Activities, the "Purchased Assets", "Assumed Liabilities" and "Net Book Value" as of the respective dates thereof or the periods then ended (in each case, subject to the absence of normal year-end adjustments and the absence of footnotes) and have been prepared in good faith and derived from the books and records of Seller, and such books and records of Seller have been prepared in accordance with the IFRS as consistently applied according to past practice and fairly present, in all material respects, the financial conditions of the CGM Activities as at the applicable reference date(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**Other than (i) as set forth in the Financial Statements; (ii) Liabilities incurred since January 1, 2025 in the Ordinary Course of Business; (iii) Liabilities that have been or will be incurred in connection with the transactions contemplated hereby or the announcement, negotiation, execution or performance of this Agreement or the other Transactional Agreements; and (iv) Liabilities that are not material to the CGM Activities, there are no Liabilities of the CGM Activities that are required to be reflected on a balance sheet prepared in accordance with the IFRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**Except as set forth on Part 2.15 of the Disclosure Schedule, since September 30, 2025, no member of the Seller Group has taken any of the following actions with regard to the CGM Activities or the Purchased Assets, except with prior written consent from Purchaser or as otherwise required to consummate the transactions contemplated by the Transactional Agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**adopted any employment or severance agreement for the benefit of any employee, materially increased the compensation or fringe benefits of, or materially modified the employment terms of any employee in excess of [\*\*\*], or paid any benefit not required by the terms in effect on Reference Date of any existing benefit plan or other employee benefit plan, program or policy or employment agreement;

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**sold, leased, licensed or disposed of any Purchased Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**acquired any material asset in excess of [\*\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**terminated (except pursuant to its terms) or materially modified or amended any Transferred Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)**mortgaged or pledged or subjected any Purchased Asset to an Encumbrance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)**changed any accounting methods, principles or practices, except insofar as may be required by a change in IFRS or to comply with the Seller Group's accounting principles or policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)**canceled or compromised any debt or claim or waived or released any rights in excess of [\*\*\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(viii)**agreed to take any of the foregoing actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.16** **Equipment.** All Transferred Equipment whether or not reflected in the Financial Statements, is in good operating condition and repair, ordinary wear and tear excepted, is maintained in accordance with commercially reasonable industry practices, and is suitable in all material respects for the purposes for which it is presently used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.17** **Lease.** Seller has made available true and complete list of all leases pursuant to which the Seller Group leases for the CGM Activities any personal property or real property. The Seller Group has the legal right to use or occupy, as applicable, each personal or real property rented to the Seller Group upon the terms and conditions of the lease agreements. Each lease is a legal, valid and binding obligation of Seller and, to Seller's Knowledge, of each other party thereto, and is enforceable (subject to the General Enforceability Exceptions) and in full force and effect with respect to Seller, and, to Seller's Knowledge, with respect to each other party thereto. Such leased properties are suitable to perform the activities that are currently performed therein under applicable Laws, except in cases that would not be material to the CGM Activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.18** **Employment Matters.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**Except as forth on Part 2.18 of the Disclosure Schedule, no member of the Seller Group is party to any labor or collective bargaining agreement and there are no labor or collective bargaining agreements which pertain to the CGM Employees. There is no organizing activity involving the Seller Group pending or, to Seller's Knowledge, threatened by any labor organization or group of CGM Employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**There are no (i) strikes, work stoppages, slowdowns, lockouts or arbitrations or (ii) material grievances or other labor disputes pending or, to Seller's Knowledge, threatened by or on behalf of any CGM Employee or group of CGM Employees of the Seller Group or independent contractor or agent who provide services for the CGM Activities.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**For the last three (3) years, Seller has complied in all material respects with its labor, social security and health and safety obligations under applicable Law and/or pursuant to applicable collective bargaining agreement, collective agreements or the individual contracts entered into with the CGM Employees of the Seller Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**There are no demands, complaints, charges, requirements or claims against the Seller Group pending or, to Seller's Knowledge, threatened that could be brought or filed, with any Governmental Body (including employment courts and employment inspectorate) based on, arising out of, in connection with or otherwise relating to the employment, terms and conditions, social security and health and safety issues, thereof, termination of employment, or failure to employ by the Seller Group, of any individual in connection with the CGM Activities. Except as set forth on Part 2.18(c) of the Disclosure Schedule, the Seller Group is currently (and has been in the past five (5) years) in compliance with all applicable Laws relating to the employment of the CGM Employees as well as to any former employee who provided services to the CGM Activities within the last five (5) years, including but not limited to those related to wages (including minimum wages and overtime), hours, overtime compensation, misclassification, exempt and non-exempt status, equal employment opportunity, health and safety, immigration, collective bargaining, labor, temporary employees, whistleblowing, disability rights and benefits, equal opportunity and the payment and withholding of Taxes and other sums required to be withheld (including social security contributions and insurance premiums). The Seller Group is up to date with the payment of all remuneration due to CGM Employees as well as with the payment of their respective social security contributions and payments. The Seller Group has no debts with the applicable social security systems and there are no deferrals, installments or similar granted by the social security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)**Part 2.18(e) of the Disclosure Schedule sets forth for each employee of Seller and its Affiliates that provide services primarily related to the CGM Activities, such [\*\*\*]. There is no employee of Seller or any Seller Affiliate who devotes equal or greater than fifty percent (50%) of his/her working time to the CGM Activities who is not listed on Part 2.18(d) of the Disclosure Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)**Part 2.18(f) of the Disclosure Schedule contains an accurate list of all Persons other than employees of Seller and the Seller Affiliates who provide services (other than general and administrative services) used in or primarily related to the CGM Activities for or on behalf of Seller or any Seller Affiliate, identifying such service providers name, the employing entity in the Seller Group and primary work location.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)**Part 2.18(g) of the Disclosure Schedule sets forth each Seller Employee Plan. Seller has provided Purchaser with a complete and current copy of each written Seller Employee Plan and any amendments thereto, the most recently received IRS determination or opinion letter for each Seller Employee Plan (to the extent applicable), and a written description of each unwritten Seller Employee Plan. No CGM Employee might claim any benefit that is not included in the relevant Seller Employee Plan. The Seller Group is not vicariously nor jointly and severally liable for the U.S. Social Security obligations of any Transferred Employee. The Seller Group shall not have to assume any Liability and, in particular, relating to labor, wage and social security matters in respect of the employees' service providers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)**Each Seller Employee Plan complies in all material respects in form, and in operation, and at all times has been administered in accordance with its terms and any applicable provisions of, ERISA, the Code, and all other applicable Laws, including in each European Territory, to the extent applicable, including those set forth in any collective bargaining agreement (as applicable).

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**There is no pending or, to Seller's Knowledge, threatened legal action, proceedings, audit or investigation, other than routine claims for benefits, against or with respect to any Seller Employee Plan or with regards to any termination of CGM Employees or any claim for requalification of the relationship of any Person with Seller or any Seller Affiliate into an employment relationship and / or an hetero-organized relationship pursuant to Section 2 of Italian Legislative Decree 81/2015. There are no Seller Employee Plans that provide medical, life, death or disability benefits (whether or not insured) for employees or former employees of Seller for periods extending beyond their retirement or other termination of service, other than (i) health plan continuation coverage described in Part 6 of Title I(B) of ERISA, or (ii) such benefits of which the full cost is borne by the current or former employee (or such employee's beneficiary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)**Neither Seller nor any ERISA Affiliate sponsor, maintains, contributes to, or has any liability (actual or contingent), or at any time in the past six (6) years has sponsored, maintained, contributed to, or had any liability (actual or contingent) with respect to (1) a "multiemployer plan" as defined in Section 3(37) of ERISA, (2) a "multiple employer plan" as described in Section 413(c) of the Code or Sections 4063, 4064 or 4066 of ERISA, (3) a "defined benefit plan" as defined in Section 3(35) of ERISA or subject to Title IV of ERISA or (4) a pension plan subject to the funding standards of Section 302 of ERISA or Section 412 or 430 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)**With respect to each Seller Employee Plan presently maintained or contributed to by Seller that is intended to be qualified under Section 401(a) of the Code, each such Seller Employee Plan is so qualified under Section 401(a) of the Code, its related trust is tax-exempt under the Code, and there are no existing facts or circumstances that could reasonably be expected to adversely affect such Seller Employee Plan's qualification under Section 401(a) and related sections of the Code or such related trust's tax-exempt status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)**None of the execution, delivery and performance of this Agreement, the consummation of the Transactions, or any termination of employment or service in connection therewith or subsequent thereto will, (i) result in any payment or benefit (including severance, retention payments, termination or change in control benefits, unemployment compensation (including any compensation to be borne by Seller different from those granted by any local social security system), post-contractual non-competition compensation, golden parachute, bonus or otherwise) becoming due or payable, or required to be provided, to any current or former employee, director, independent contractor or consultant of Seller or its Affiliates, (ii) increase the amount or value of any benefit or compensation otherwise payable or required to be provided to any current or former employee, director, independent contractor or consultant or Seller or its Affiliates, (iii) result in the acceleration of the time of payment, vesting or funding of any such benefit or compensation, (iv) increase the amount of compensation due to any Person by Seller, or (v) result in the forgiveness in whole or in part of any outstanding loans made by Seller to any Person., *provided*, *however*, that the foregoing shall not apply to any severance payments payable under Seller's severance pay plan in connection with any separations of employment that occur on or prior to the Initial Closing Date and for which Seller is solely responsible pursuant to <u>Section 1.3</u> (*Excluded Assets*) and <u>Section</u> <u>8.7</u> (*Employees and Related Matters*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)**Each Seller Employee Plan that provides for nonqualified deferred compensation in accordance with Section 409A of the Code has been documented and operated in material compliance with the requirements of Section 409A of the Code and the underlying Treasury Regulations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)**Except as set forth on Part 2.18(m) of the Disclosure Schedule, the Seller Group is not party to any written or oral employment, retention, service or consulting agreement relating to any one or more CGM Employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)**Except as set forth on Part 2.18(o) of the Disclosure Schedule, the services provided by each CGM Employee whose primary work location is in the U.S. is terminable without penalty at the will of the Seller Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(p)**Part 2.18(p) of the Disclosure Schedule sets forth [\*\*\*]. Except as for Part 2.18(p) of the Disclosure Schedule there are no individual or collective dismissal procedures in progress or planned and no CGM Employee is affected by any cause for fair dismissal nor have there been any collective dismissal that have affected CGM Employees or former CGM Employees of fifty year of age or older.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(q)**The Seller Group is not a group of companies for employment purposes in accordance with local regulations and the Seller Group has fulfilled its obligations concerning any transfer of employees that might be qualified as a transfer of undertakings or of an autonomous business unit in accordance with local regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(r)**The Seller Group has complied in all material respects with its obligations towards equality and non-discrimination in accordance with applicable Law. No allegations of discrimination, sexual harassment, sexual harassment, misconduct or retaliation while employed by, or providing services to, the Seller Group have been made against any employee (in their capacity as such), and the Seller Group has not entered into any settlement agreement or conducted any investigation related to allegations of discrimination, sexual harassment, harassment, sexual misconduct or retaliation by or regarding any employee, former employee or other representative of the Seller Group (in their capacity as such).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.19** **Accreditation.** Part 2.19 of the Disclosure Schedules sets forth an accurate and complete list of all accreditations and certifications held by the Seller Group in connection with its ownership and use of the (a) Specified Initial Assets (the "**U.S. Accreditations**") and (b) Specified European Assets (the "**European Accreditation**" and together with the U.S. Accreditations, the "**Accreditations**"). All such Accreditations are in full force and effective as of the Agreement Date and as of the Initial Closing Date. Each member of the Seller Group is in compliance in all material respects with the Accreditations applicable to it, except as is not and would not reasonably be expected, individually or in the aggregate, to be material to the CGM Activities, and has not received any written or, to Seller's Knowledge, other notice that it is in violation of any of the terms or conditions of such Accreditations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.20** **No Other Representations.** EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS <u>SECTION</u> <u>2</u> AND THE RELATED PORTIONS OF THE DISCLOSURE SCHEDULES, NEITHER THE SELLER, THE SELLER GROUP NOR ANY OTHER PERSON HAS MADE ANY OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ABOUT OR PERTAINING TO THE PURCHASED ASSETS, THE SELLER, OR SELLER GROUP'S ASSETS OR LIABILITIES, INCLUDING (A) THE CONDITION (PHYSICAL OR OTHERWISE) OF ANY ASSETS, THE PRESENT OR FUTURE USE OF ANY ASSETS OR SUITABILITY FOR USE IN PURCHASER'S INTENDED USE OR OPERATION OF SUCH ASSETS, OR ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, (B) ANY FUTURE REVENUES, COSTS, EXPENDITURES, CASH FLOW, RESULTS OF OPERATIONS, FINANCIAL

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CONDITION OR PROSPECTS THAT MAY RESULT FROM THE OWNERSHIP, USE OR SALE OF THE PURCHASED ASSETS, (C) ANY OTHER INFORMATION OR DOCUMENTS MADE AVAILABLE TO PURCHASER OR ITS REPRESENTATIVES, OR (D) THE CONDITION OF THE PURCHASED ASSETS, INCLUDING COMPLIANCE WITH ANY LAWS. SELLER EXPRESSLY DISCLAIMS, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL IMPLIED WARRANTIES ARISING BY OPERATION OF LAW, COURSE OF DEALING, USAGE OF TRADE, OR OTHERWISE, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, TITLE (OTHER THAN AS EXPRESSLY PROVIDED HEREIN), QUIET ENJOYMENT, QUIET POSSESSION, OR CONDITION, QUALITY, OR SUITABILITY OF THE INVENTORY.

**3.** **Representations and Warranties of the Purchaser Group.**

The Purchaser Parties, jointly and severally, represent and warrant, to and for the benefit of Seller, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1** **Due Organization.** Purchaser is a corporation duly incorporated, validly existing and in good standing under the laws of Delaware. Purchaser Parent is a corporation duly incorporated, validly existing and in good standing under the laws of Delaware. Purchaser and Purchaser Parent are each qualified, authorized, registered or licensed to do business as a foreign company in each jurisdiction in which the nature or conduct of its business or the ownership, leasing or operation of its properties and other assets requires it to be so qualified, licensed and in good standing, except for those jurisdictions where failure to be so qualified or in good standing (i) has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and (ii) would not reasonably be expected to prevent or materially hinder or delay any of the Transactions or affect the ability of Purchaser Parent or Purchaser to timely perform its obligations under this Agreement or any of the Transactional Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2** **Authority; Binding Nature Of Agreements.** Purchaser Parent and Purchaser have all necessary power and authority to execute, deliver and perform this Agreement and to complete the transactions contemplated hereby and each member of the Purchaser Group has all corporate or similar power and authority to enter into and to perform its obligations under each of the Transactional Agreements to which it is or may become a party; and the execution, delivery and performance by each of the members of the Purchaser Group of the Transactional Agreements to which it is or may become a party have been duly authorized by all necessary action on the part of the Purchaser Group. This Agreement constitutes the legal, valid and binding obligation of the Purchaser Parties, enforceable against the Purchaser Parties in accordance with its terms, subject to the General Enforceability Exceptions. Upon the execution and delivery of the Transactional Agreements at the Applicable Closing Date, the Transactional Agreements will constitute the legal, valid and binding obligation of the Purchaser Parties, enforceable against each of Purchaser Parent and Purchaser in accordance with its terms, subject to the General Enforceability Exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3** **Non-Contravention; Consents.** Neither the execution and delivery of any of the Transactional Agreements, nor the consummation or performance of any of the Transactions, will directly or indirectly (with or without notice or lapse of time):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**contravene, conflict with or result in a violation of (i) any of the provisions of Purchaser's or Purchaser Parent's certificate of incorporation or bylaws, or (ii) any resolution adopted by Purchaser's and Purchaser Parent's stockholders or board of directors, including any committee thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**contravene, conflict with, or result in a breach of, constitute a default under, or create rights of acceleration, termination or cancellation under, any Contract to which either Purchaser or Purchaser Parent are a party or to which its properties or assets are subject; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**contravene, conflict with or result in a violation of, or give any Governmental Body or other Person the right to challenge any of the Transactions or to exercise any remedy or obtain any relief under, any applicable Law or any Order to which any of Purchaser or Purchaser Parent is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4** **Brokers.** The Purchaser Parties has not agreed and will not become obligated to pay, and has not taken any action that might result in any Person claiming to be entitled to receive, any brokerage commission, finder's fee or similar commission or fee in connection with any of the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5** **Required Filings and Consents**. The execution, performance, and delivery of this Agreement and the Transactional Agreements, and the consummation of the transactions contemplated hereby and thereby, by the Purchaser Group do not require any material consent, approval, notice or filing with, by, or from any Person or Governmental Body that would reasonably be expected to prevent or materially delay the Transactions or the ability of the Purchaser Group to timely perform their respective obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.6** **Solvency.** Immediately after giving effect to the transactions contemplated by this Agreement, the Purchaser Parties shall be solvent and shall: (a) be able to pay its debts as they become due; (b) own property that has a fair saleable value greater than the amounts required to pay its debts (including a reasonable estimate of the amount of all contingent liabilities); and (c) has adequate capital to carry on its business. In connection with the transactions contemplated hereby, the Purchaser Parties has not incurred, nor plans to incur, debts beyond its ability to pay as they become absolute and matured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.7** **Employment Offers**. Purchaser has made conditional offers of employment, effective as of the Closing Date, to each of the individuals listed on <u>Schedule 3.7</u>, subject only to the satisfaction of customary pre-employment conditions, and to the Purchaser's Knowledge, each such employee has accepted such offer of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.8** **No Other Representations.** EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS <u>SECTION</u> <u>3</u> AND THE RELATED PORTIONS OF THE DISCLOSURE SCHEDULES, (I) NEITHER THE PURCHASER PARTIES, THE OTHER MEMBERS OF THE PURCHASER GROUP NOR ANY OTHER PERSON HAS MADE ANY OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ABOUT OR PERTAINING TO, AND EXPRESSLY, ANY REPRESENTATION OR WARRANTY OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF ANY INFORMATION PROVIDED OR MADE AVAILABLE TO THE SELLER GROUP BY OR ON BEHALF OF PURCHASER PARTIES IN CONNECTION WITH OR RELATED TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY, THE PURCHASED ASSETS, THE ASSUMED LIABILITIES, OR THE CGM ACTIVITIES, AND THE PURCHASER PARTIES ARE

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NOT RELYING ON ANY REPRESENTATION OR WARRANTY EXCEPT FOR THOSE EXPRESSLY SET FORTH IN <u>SECTION</u> <u>2</u> OF THIS AGREEMENT (II) THE PURCHASER PARTIES HEREBY EXPRESSLY DISCLAIM ANY SUCH OTHER REPRESENTATIONS AND WARRANTIES.

**4.** **Pre-Closing Covenants.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** **Access and Investigation.** At all times during the Pre-Closing Period, Seller shall, and shall cause each of the Seller Affiliates and each of their respective Representatives to, at the reasonable request of the Purchaser Group and during normal business hours: (a) provide the Purchaser Group and their respective Representatives with access to and copies of all existing Books and Records, work papers and other documents and information, in each case, relating to the CGM Activities and the Purchased Assets and (b) provide the Purchaser Group and their respective Representatives with such additional financial, operating and other data and information relating to the CGM Activities as Purchaser may reasonably request in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2** **Operation of CGM Activities**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**Except as set forth on <u>Schedule 4.2</u> of the Disclosure Schedule, as required by applicable Law, as otherwise required under this Agreement or any other Transactional Agreement, or as Purchaser shall otherwise consent in writing (such consent not to be unreasonably withheld, conditioned or delayed), during the Pre-Closing Period, Seller shall, and it shall cause the Seller Affiliates to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**operate and conduct the CGM Activities in the Ordinary Course of Business and in the same manner as such operations have been conducted prior to the date of this Agreement in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**maintain its relationship with Seller's suppliers, customers, licensors, licensees, employees, independent contractors, and other Persons having business relationships with the Seller that are material to CGM Activities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**comply in all material respects with all Laws and contractual Liabilities applicable to the ownership of the Purchased Assets and the operation of the CGM Activities and pay all applicable Taxes with respect thereto when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**During the Pre-Closing Period, Seller shall not, and shall cause the Seller Affiliates not to, without the prior written approval of Purchaser (such consent not to be unreasonably withheld, conditioned or delayed):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**sell, lease, license, or otherwise transfer, or agree, commit or offer (in writing or otherwise) to sell, lease, license, or otherwise transfer any interest in the Purchased Assets or the CGM Activities or any interest in or right relating to any such interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**permit, or agree, commit or offer (in writing or otherwise) to permit, any interest in the Purchased Assets or the CGM Activities to become subject, directly or indirectly, to any Encumbrance (other than Permitted Encumbrances);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**increase the compensation or other benefits arrangements of any of its employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**terminate (other than by expiration) or amend or modify (other than by automatic extension or renewal if deemed an amendment or modification of any such contract) any Transferred Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)**enter into any Contract or transaction relating to the CGM Activities or the Purchased Assets or permit any of the Purchased Assets to become bound by any Contract outside of the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)**incur, assume or otherwise become subject to any Liability with respect to the CGM Activities or the Purchased Assets, except for current liabilities of the type required to be reflected in the "liabilities" column of a balance sheet prepared in accordance with the Reference Balance Sheet incurred in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)**commence or settle any Proceeding relating to the CGM Activities or the Purchased Assets, except where such settlement or compromise does not (1) involve payments (contingent or otherwise) in excess of [\*\*\*] in the aggregate that are not paid in full prior to the Closing, or (2) impose any material non-monetary restrictions, liabilities or obligations (unless such restrictions, liabilities and obligations are immaterial ordinary course terms typically included in the settlement or compromise of the applicable type of Proceeding) on the CGM Activities (or, following the Closing, the Purchaser Group) or Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(viii)**intentionally or materially reduce any aggregate Inventory levels outside of the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ix)**intentionally accelerate or delay the delivery or sale of Products, except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(x)**make, revoke or change any Tax election or any method of Tax accounting, settle or compromise or enter into any contractual arrangement in respect of any Tax liability, file an amended Tax Return, enter into any closing agreement relating to any Tax, enter into any voluntary disclosure or similar program with respect to any Tax, agree to any extension of a statute of limitations with respect to any Tax or Tax Return, or surrender any right to claim a Tax refund, in each case, to the extent such action could reasonably be expected to adversely affect either (1) any Purchased Asset or the CGM Activities or (2) the Purchaser's, or any applicable Purchaser Affiliate's, ownership of the Purchased Assets or the CGM Activities after the Initial Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(xi)**agree, commit or offer (in writing or otherwise) to take any of the actions described in this <u>Section</u> <u>4.2(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3** **Filings and Consents.** Each Party shall use commercially reasonable efforts to ensure that: (a) all filings, notices and Consents required to be made, given and obtained in order to consummate the Transactions are made, given and obtained on a timely basis; and (b) during the Pre-Closing Period, each Party and its Representatives reasonably cooperate with the other Party and its Representatives, and prepare and make available such documents and take such other actions, as such Party may request in good

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faith, in connection with any filing, notice or Consent that such Party is required or elects to make, give or obtain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4** **Notification.** During the Pre-Closing Period, each Party shall promptly notify the other Party in writing of: (a) the discovery of any event, condition, fact or circumstance that may cause or constitute a breach of any representation or warranty in this Agreement; (b) any breach of any covenant or obligation of such Party; and (c) any event, condition, fact or circumstance that may reasonably make the timely satisfaction of any of the conditions set forth in <u>Section</u> <u>5.1</u>, <u>Section</u> <u>5.2</u> or under any Local Purchase Agreement impossible or unlikely. No such notification shall be deemed to supplement or amend this Agreement, including for purposes of determining (x) the accuracy of any representation or warranty made by Seller or Purchaser, as applicable, in this Agreement or in each Seller Closing Certificate or (y) whether any of the conditions set forth in <u>Section</u> <u>5.1</u> or <u>Section</u> <u>5.2</u> has been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5** **Exclusivity.** Seller shall ensure that, during the Pre-Closing Period, neither Seller nor any of its respective Representative or the Seller Affiliates, shall directly or indirectly: (i) solicit or encourage the initiation of any inquiry, proposal or offer from any Person (other than Purchaser) relating to any Acquisition Transaction; (ii) participate in any discussions or negotiations with, or provide any non-public information to, any Person (other than Purchaser) relating to any proposed Acquisition Transaction; or (iii) otherwise cooperate in any effort or attempt to make, implement or accept a proposal from any Person (other than Purchaser) relating to any Acquisition Transaction. Other than in connection with this Agreement, Seller, any Representative thereof and Seller Affiliate shall cease any current discussions regarding any Acquisition Transaction and Seller will promptly notify Purchaser (in any event no later than 48 hours after receipt of any indication of interest or proposal) in the event that Seller receives any indication of interest or proposal concerning an Acquisition Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6** **Best Efforts.** During the Pre-Closing Period, each of the Parties shall reasonably cooperate with each other and use (and shall cause their respective Affiliates to use) their respective reasonable Best Efforts to take or cause to be taken all actions, and to do or cause to be done all things, reasonably necessary, proper or advisable on their part under this Agreement, the other Transactional Agreements (including the Local Purchase Agreements) and applicable Law to consummate the transactions contemplated hereby and thereby as soon as practicable after the date hereof, including using reasonable Best Efforts to cause the conditions set forth in <u>Section</u> <u>5.1</u> and <u>Section</u> <u>5.2</u> to be satisfied on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7** **Confidentiality.** From and after the date of this Agreement, each Party shall, and shall cause its controlled Affiliates and its and their respective to Representatives who have received Confidential Information to, treat and hold as confidential, and not disclose to any Person, any Confidential Information, and not to use any Confidential Information; *provided*, that each Party and their respective Affiliates shall be permitted to disclose any Confidential Information (a) to its financial, tax and legal advisors (each of whom is subject to an obligation of confidentiality no less restrictive than those contained herein), (b) to any Governmental Body or administrative agency to the extent necessary or advisable in compliance with applicable Law and the rules of the primary exchange on which such party is then listed, and (c) to the extent necessary to pursue its rights under this Agreement or any Transactional Agreement. In the event that any of the foregoing Persons is requested or required by oral question or request for information or documents in any Proceeding, interrogatory, subpoena, civil investigative demand or similar process or as otherwise required by Law to disclose any Confidential Information, to the extent permitted by Law, such Party shall notify the other Party promptly of the request or requirement so that it may seek a protective order or waive compliance with the provisions of this <u>Section</u> <u>4.7</u>. If, in the absence of a protective order

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or the receipt of a waiver hereunder, such Person is compelled to disclose any Confidential Information or else stand liable for contempt, such Person may disclose only that portion of such Confidential Information to which it is advised by its counsel to disclose and shall use commercially reasonable efforts, at its sole expense, to cause the recipient thereof to keep such information confidential. The Parties acknowledge that this <u>Section</u> <u>4.7</u> constitutes an independent covenant and shall not be affected by performance or nonperformance of any other provision of this Agreement or any other document contemplated by this Agreement.

**5.** **Conditions Precedent to the Closings.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1** **Conditions Precedent to Purchaser's Obligations to each Applicable Closing**. Purchaser's (or the Purchaser Affiliate's) obligation to purchase the Purchased Assets and to take the other actions required to be taken by Purchaser (or the Purchaser Affiliate) under this Agreement and as applicable, the Local Purchase Agreement, at each Applicable Closing, is subject to the satisfaction, at or prior to each Applicable Closing, of (x) each of the following conditions (any of which may be waived by Purchaser, in whole or in part, in writing) and (y) as applicable to such Applicable Closing, each of the conditions set forth in the Local Purchase Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Accuracy of Seller's Representations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**All of the Seller Fundamental Representations (as defined below) made by the Seller shall be true and correct in all respects as of the date of this Agreement, and shall be true and correct in all respects as of the Applicable Closing Date as if made at the Applicable Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**The other representations and warranties made by the Seller in this Agreement shall be true and correct in all material respects as of the date of this Agreement, and shall be true and correct in all material respects as of the Applicable Closing Date as if made at the Applicable Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Performance of Seller's Obligations.** All of the covenants and obligations that Seller or that any member of the Seller Group is required to comply with or to perform under this Agreement or under any Local Purchase Agreement at or prior to the Applicable Closing (considered collectively), and each of said covenants and obligations, shall have been duly complied with and performed in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)Consents.** Consent to (i) as of the Applicable Closing, the Tender Contracts applicable to the CGM Activities in such European Territory and (ii) as of the Initial Closing, the Contracts identified on <u>Schedule 5.1(c)</u>, in each case, shall have been obtained as of the Applicable Closing Date and shall be in full force.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **No Material Adverse Effect.** There shall have been no Material Adverse Effect in the U.S. CGM Activities and/or the Purchased Assets since the date of this Agreement, and no event shall have occurred and no condition or circumstance shall exist that could reasonably be expected to give rise to any such Material Adverse Effect.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)Required Approvals.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**The Purchaser (and as applicable, the Purchaser Affiliates) shall have obtained all necessary Regulatory Approvals to accept the transfer and assignment of the Purchased Assets and to conduct the CGM Activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**The Seller (and as applicable, the Seller Affiliates) shall have obtained all necessary Regulatory Approvals for the transfer and assignment of the Purchased Assets and as applicable, the conduct of the CGM Activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)No Proceedings or Restraints.** There shall not have been commenced or threatened, any Proceeding, temporary restraining order, preliminary or permanent injunction or other order that restricts or prevents the Closings from taking place as contemplated in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)No Prohibition.** Neither the consummation nor the performance of any the Transactions will, directly or indirectly (with or without notice or lapse of time), or cause the Purchaser Parties to suffer any adverse consequence, contravene or conflict with or result in a violation of any applicable Law or Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)Delivery of Consideration.** Seller or the applicable Seller Affiliate shall have received the applicable Purchase Price referred to in <u>Section</u> <u>1.5(a)</u> (*Purchase Price*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)Additional Documents and Actions:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**On the Initial Closing Date, Seller shall deliver to Purchaser each of the Transactional Agreements required to be executed by Seller or the applicable Seller Affiliate and such agreements shall be in full force and effect as of each Applicable Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**On the first Applicable Closing Date, Seller shall deliver to Purchaser, the Transition Services Agreement, duly executed by Seller and such agreement shall be in full force and effect as of each Applicable Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**On the Initial Closing Date, Seller shall deliver to Purchaser, the Amended and Restated Existing Agreement, duly executed by Seller and such agreement shall be in full force and effect as of each Applicable Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**On the Initial Closing Date, to the extent not previously delivered to Purchaser, a duly executed certificate of non-foreign status from any member of the Seller Group that are U.S. persons within the meaning of the Code, substantially in the form of the sample certification set forth in Treasury Regulations Section 1.1445-2(b)(2)(iv)(B);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)**Seller shall (or shall cause the applicable Seller Affiliate to) deliver to Purchaser all physical Transferred Books and Records, *provided*, that to the extent such Transferred Books and Records are maintained electronically, Seller will transmit such Transferred Books and Records electronically, at Purchaser's expense;

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)**On each Applicable Closing Date, Seller shall (or shall cause the applicable Seller Affiliate) to prepare and deliver to Purchaser the Pre-Closing Balance Sheet and Pre-Closing Certificate in accordance with <u>Section 1.5(b) (</u>*Adjustment to Purchase Price*<u>)</u> as of each Applicable Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)**On each Applicable Closing Date, Seller shall (or shall cause the applicable Seller Affiliate to) deliver all of the applicable Purchased Assets, in the manner and form, and to the locations, reasonably specified by Purchaser or as applicable, the Purchaser Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(viii)**On each Applicable Closing Date, Seller shall execute and deliver to Purchaser a certificate, in form and substance satisfactory to Purchaser, dated as of the Applicable Closing Date, stating that the preconditions specified in <u>Section</u> <u>5.1(a)</u>, <u>Section</u> <u>5.1(b)</u> and <u>Section</u> <u>5.1(d)</u> have been satisfied as of the Applicable Closing Date (each a "**Seller Closing Certificate**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ix)**On each Applicable Closing Date, Seller and PHC Holdings Corporation, a company organized under the laws of Japan, with its principal office and place of business at 2-38-5, Nishi-Shimbashi, Chiyoda-Ku, Tokyo, 100-0006 (the "**Seller Parent**") shall execute and deliver to Purchaser (or its designated Affiliate) a release agreement, substantially in the form attached hereto as **Exhibit C** (each, a "**Release**"), pursuant to which Seller and Seller Parent, respectively, irrevocably and unconditionally release and discharge Purchaser, its Affiliates, and their respective Representatives from any and all claims, liabilities, and obligations relating to the Purchased Assets and the CGM Activities arising prior to such Applicable Closing Date, subject to <u>Section</u> <u>7</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2** **Conditions Precedent to Seller's Obligation to Applicable Closing.** Seller's (or the Seller Affiliate's) obligation to sell the Purchased Assets and to take the other actions required to be taken by Seller (or the Seller Affiliate) under this Agreement and as applicable, the Local Purchase Agreement, at the Applicable Closing is subject to the satisfaction, at or prior to the Applicable Closing, of each of the following conditions (any of which may be waived by Seller, in whole or in part, in writing):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)Accuracy of Purchaser's Representations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**All of the Purchaser Fundamental Representations (as defined below) made by the Purchaser Group shall be true and correct in all respects as of the date of this Agreement, and shall be true and correct in all respects as of the Applicable Closing Date as if made at the Applicable Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**The other representations and warranties made by the Purchaser Group in this Agreement shall be true and correct in all material respects as of the date of this Agreement, and shall be true and correct in all material respects as of the Applicable Closing Date as if made at the Applicable Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)Performance of Purchaser's Obligations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**Purchaser shall deliver to Seller each of the Transactional Agreements required to be executed by Purchaser or the applicable Purchaser Affiliate.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**On the first Applicable Closing Date, Purchaser shall deliver to Seller, the Transition Services Agreement, duly executed by Purchaser and such agreement shall be in full force and effect as of each Applicable Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**On the Initial Closing Date, Purchaser shall deliver to Seller, the Amended and Restated Existing Agreement, duly executed by Purchaser and such agreement shall be in full force and effect as of each Applicable Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**All of the other covenants and obligations that Purchaser is required to comply with or to perform pursuant to this Agreement at or prior to the Applicable Closing (considered collectively), and each of said covenants and obligations (considered individually), shall have been complied with and performed in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)No Proceedings or Restraints.** There shall not have been commenced or threatened, any Proceeding, temporary restraining order, preliminary or permanent injunction or other order that restricts or prevents the Closings from taking place as contemplated in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)Delivery of Consideration.** On the Applicable Closing Date, Purchaser or the applicable Purchaser Affiliate shall deliver, or cause to be delivered, the Purchase Price payable as of such Applicable Closing in accordance with <u>Section 1.5(a) (</u>*Purchase Price*<u>)</u> in cash, by wire transfer of immediately available funds and pursuant to the wire instructions provided by Seller; *provided*, *however*<u>,</u> that, with respect to the Initial Closing, the Purchaser shall deliver, or cause to be delivered, the Purchase Price payable as of the Initial Closing no later than [\*\*\*] after the Initial Closing Date.

**6.** **Termination.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1** **Termination Events.** This Agreement may be terminated prior to the Initial Closing, and after the Initial Closing, any Local Purchase Agreement may be terminated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**by Purchaser if there is a material breach of any representation, warranty, covenant or obligation of Seller and such breach shall not have been cured within [\*\*\*] after the delivery of written notice thereof to Seller to the extent such breach would cause the related condition precedent to Initial Closing not to be satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**by Seller if there is a material breach of any representation, warranty, covenant or obligation of Purchaser and such breach shall not have been cured within [\*\*\*] after the delivery of written notice thereof to Purchaser to the extent such breach would cause the related condition precedent to Initial Closing not to be satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**by the mutual written consent of Purchaser and Seller if the Parties reasonably determine that the timely satisfaction of any condition set forth in <u>Section</u> <u>5.1</u>, <u>Section</u> <u>5.2</u>, or in any Local Purchase Agreement, has become impossible or impractical (other than as a result of any failure on the part of Purchaser or Seller, as applicable, to comply with or perform its covenants and obligations set forth in this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**by Purchaser or Seller if the Initial Closing shall not have been consummated by [\*\*\*]; *provided*, *however*, that the right to terminate this Agreement pursuant to this <u>Section</u> <u>6.1(c)</u> shall

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

not be available to any Party whose action or failure to act has been a principal cause of or resulted in the failure of the Initial Closing to occur on or before such date and such action or failure to act constitutes a material breach of this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)**by the mutual written consent of Purchaser and Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2** **Termination Procedures.** If Purchaser wishes to terminate this Agreement pursuant to <u>Section</u> <u>6.1(a)</u>, <u>6.1(c)</u>, or <u>6.1(d)</u>, Purchaser shall deliver to Seller a written notice stating that Purchaser is terminating this Agreement and setting forth a brief description of the basis on which Purchaser is terminating this Agreement. If Seller wishes to terminate this Agreement pursuant to <u>Section</u> <u>6.1(b)</u>, <u>6.1(c)</u>, or <u>6.1(d)</u> Seller shall deliver to Purchaser a written notice stating that Seller is terminating this Agreement and setting forth a brief description of the basis on which Seller is terminating this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3** **Effect Of Termination.** If this Agreement is terminated pursuant to <u>Section</u> <u>6.1</u>, all further obligations of the Parties shall terminate and become void and have no effect, and there shall be no liability or obligation on the part of any Party, its Affiliates or any of their respective Representatives under or with respect to this Agreement or any of the Transactional Agreements, except as set forth in this <u>Section</u> <u>6.3</u>; *provided*, that in the event that the Initial Closing has occurred, the termination of any Local Purchase Agreement pursuant to <u>Section</u> <u>6.1</u> (*Termination Events*) shall only terminate the obligations of the Parties and their respective Affiliates with respect to such terminated Local Purchase Agreement, and in such case, there shall be no liability or obligation on the part of any Party, its Affiliates or any of their respective Representatives under and solely with respect to such terminated Local Purchase Agreement. In the event of the termination of this Agreement, (a) no Party shall be relieved of any obligation or other Liability arising from any breach by such Party of any provision of this Agreement; (b) the Parties shall, in all events, remain bound by and continue to be subject to the provisions set forth in <u>Section</u> <u>4.7</u><u> </u>(*Confidentiality*), <u>Section</u> <u>6.3</u> (*Effect of Termination*), <u>Section</u> <u>6.4</u> (*Nonexclusivity of Termination Rights*), and <u>Section</u> <u>9</u> (*Miscellaneous Provisions*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4** **Nonexclusivity of Termination Rights.** The termination rights provided in <u>Section</u> <u>6.1</u> shall not be deemed to be exclusive. Accordingly, the exercise by any Party of its right to terminate this Agreement pursuant to <u>Section</u> <u>6.1</u> (*Termination Events*) shall not be deemed to be an election of remedies and shall not be deemed to prejudice, or to constitute or operate as a waiver of, any other right or remedy that such Party may be entitled to exercise (whether under this Agreement, under any other Contract, under any statute, rule or other applicable Law, at common law, in equity or otherwise).

**7.** **INDEMNIFICATION, ETC**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1** **Survival of Representations and Covenants**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**Except as set forth in <u>Section</u> <u>7.1(c)</u> below, the representations and warranties of the Parties shall expire fifteen (15) months after the last Applicable Closing Date (the "**General Expiration Date**"); *provided*, *however*, that if a Claim Notice relating to any such representation or warranty is given to an indemnifying party on or prior to the General Expiration Date, then, notwithstanding anything to the contrary contained in this <u>Section</u> <u>7.1</u>, such representation or warranty shall not so expire, but rather shall remain in full force and effect, only as it relates to such open claim, until such time as each claim made prior to the General Expiration Date (including any indemnification claim asserted by any Purchaser Indemnitee under <u>Section</u> <u>7.2</u> (*Indemnification by Seller*) or by any Seller Indemnitee under <u>Section</u> <u>7.3</u>

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

(*Indemnification by Purchaser Parties*)) that is based directly upon, or that relates directly to, any breach or alleged breach of such representation or warranty has been fully and finally resolved (such time period, the "**General Open Claim Period**"). For the avoidance of doubt, no Party may submit a Claim Notice after the General Expiration Date during the General Open Claim Period alleging any new breach of such representation or warranty. The agreements, covenants and other obligations of the Parties shall survive the Applicable Closing in accordance with their respective terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**The rights and remedies of each Party with respect to any breach of any representations, warranties, covenants and obligations of the other Party, shall not be limited or otherwise affected by or as a result of any information furnished to, or any investigation made by or any knowledge of any such Party, its Affiliates or any its Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**Subject to <u>Section</u> <u>7.1(d)</u>, the representations and warranties set forth in (i) <u>Sections</u> <u>2.1</u> (*Due Organization*), Section <u>2.2</u> (*Authority; Binding Nature of Agreements*), <u>Section</u> <u>2.3(a)</u> (*Title to Purchased Assets*), <u>Section</u> <u>2.12(a)</u> (*Non-Contravention*), and <u>Section</u> <u>2.13</u> (*Brokers & Finders*) (collectively, the "**Seller Fundamental Representations**") and (ii) <u>Section</u> <u>3.1</u> (*Authority; Binding Nature of Agreements*), <u>Section</u> <u>3.5</u> (*Brokers*), and <u>Section</u> <u>3.7</u> (*Sufficiency of Funds*) (collectively, the "**Purchaser Fundamental Representations**") shall expire on the date that is [\*\*\*] after the applicable statute of limitations for such representations and warranties expires (the "**Fundamental Representation Expiration Date**"); *provided*, *however*, that if a Claim Notice relating to any Seller Fundamental Representation or Purchaser Fundamental Representation is given to the other Party on or prior to the Fundamental Representation Expiration Date, then, notwithstanding anything to the contrary contained in this <u>Section</u> <u>7.1(c)</u>, such representation or warranty shall not so expire, but rather shall remain in full force and effect only as it relates to such claim until such time as each claim made prior to the Fundamental Representation Expiration Date (including any indemnification claim asserted by any Purchaser Indemnitee under <u>Section</u> <u>7.2</u> (*Indemnification by Seller*) or any Seller Indemnitee under <u>Section</u> <u>7.3</u><u> </u>(*Indemnification by Purchaser Parties*)) that is based directly or indirectly upon, or that relates directly or indirectly to, any breach of such representation or warranty has been fully and finally resolved (such time period, the "**Fundamental Open Claim Period**"). For the avoidance of doubt, no Party may submit a Claim Notice after the Fundamental Representation Expiration Date during the Fundamental Open Claim Period alleging any new breach of such representation or warranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**Notwithstanding anything to the contrary contained in <u>Section</u> <u>7.1(a)</u> and <u>Section</u> <u>7.1(c)</u>, if there is any Fraud, then such representation or warranty shall not expire, but rather shall remain in full force and effect for an unlimited period of time (regardless of whether any Claim Notice relating to such representation or warranty is ever given).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)**It is the express intent of the Parties that, if the applicable survival period for an item as contemplated by this <u>Section</u> <u>7.1</u> is shorter than the statute of limitations that would otherwise have been applicable to such item, then, by contract, the applicable statute of limitations with respect to such item shall be reduced to the shortened survival period contemplated hereby. The Parties further acknowledge that the time periods set forth in this <u>Section</u> <u>7.1</u> for the assertion of claims under this Agreement are the result of arms'-length negotiation among the Parties and that they intend for the time periods to be enforced as agreed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2** **Indemnification by Seller.** Subject to the limitations set forth in this Agreement, Seller shall hold harmless and indemnify each of the Purchaser Indemnitees from and against, and shall

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

compensate and reimburse each of the Purchaser Indemnitees for, any Damages that are directly or indirectly suffered or incurred by any of the Purchaser Indemnitees or to which any of the Purchaser Indemnitees may otherwise become subject during any applicable period of time during which claims for indemnification may be made hereunder (regardless of whether or not such Damages relate to any Third-Party Indemnifiable Claim) and that arise directly or indirectly from or as a direct or indirect result of, or are directly or indirectly connected with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**any breach of any representation or warranty made by the Seller Group in any Transactional Agreements, including for the avoidance of doubt, under any Local Purchase Agreement (without giving effect to any qualification as to materiality contained or incorporated in such representation or warranty) ("**Seller Warranty Breach**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**any breach of any covenant or obligation of any member of the Seller Group contained in any of the Transactional Agreements, including for the avoidance of doubt, under any Local Purchase Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**any breach of any covenant or obligation of any member of the Seller Group contained in the Transition Services Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**any Excluded Liability, of the Seller Group, including any Excluded Asset, Excluded Liability, including the Excluded Taxes, Excluded Employee Liabilities and Tender Liabilities; *provided*, that Seller's responsibility for Excluded Taxes shall not include (i) any Taxes resulting from Purchaser's failure to timely file any Tax Return required after the Applicable Closing Date or (ii) any Taxes arising from any Tax election, accounting method change, amendment or other action taken by Purchaser or any Purchaser Affiliate after the Applicable Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)**any Fraud, willful misconduct or gross negligence by any member of the Seller Group in connection with any Transactional Agreement, the Transition Services Agreement and the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3** **Indemnification by Purchaser Parties**. Subject to the limitations set forth in this Agreement, the Purchaser Parties shall hold harmless and indemnify the Seller Indemnitees from and against, and shall compensate and reimburse each of the Seller Indemnitees for, any Damages that are directly or indirectly suffered or incurred by any of the Seller Indemnitees or to which any of the Seller Indemnitees may otherwise become subject during any applicable period of time during which claims for indemnification may be made hereunder (regardless of whether or not such Damages relate to any Third-Party Indemnifiable Claim) and that arise directly or indirectly from or as a direct or indirect result of, or are directly or indirectly connected with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**any breach of any representation or warranty made by the Purchaser Group under any Transactional Agreement ("**Purchaser Warranty Breach**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**any breach of any covenant or obligation of any member of the Purchaser Group contained in any Transactional Agreement, including for the avoidance of doubt, under any Local Purchase Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**any breach of any covenant or obligation of any member of the Purchaser Group contained in the Transition Services Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**any Assumed Liability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)**any Fraud, willful misconduct or gross negligence by Purchaser Group in connection with any Transactional Agreement, the Transition Services Agreement and the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4** **Limitations on Indemnification**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**Seller will not have any indemnification obligations under <u>Section</u> <u>7.2(a)</u> and the Purchaser Parties will not have any indemnification obligations under <u>Section</u> <u>7.3(a)</u> (*Indemnification by Purchaser Parties*) attributable to a single claim or all claims arising from the same or substantially related facts, events or circumstances: unless and until the aggregate amount of Damages sustained by the Purchaser Indemnitee or Seller Indemnitee with respect to Seller Warranty Breach or Purchaser Warranty Breach, as applicable, exceeds [\*\*\*] (the "**Threshold Amount**") at which point such Party will be liable to provide indemnification for all such Damages including those comprising the Threshold Amount up to a maximum of [\*\*\*] (collectively, the "**General Cap**"); *provided*, *however*, that (i) the Threshold Amount shall not apply to Damages arising out of Fraud, Seller Fundamental Representations, Purchaser Fundamental Representations, or any indemnifiable matter set forth in <u>Sections</u> <u>7.2(b)</u><u>-</u><u>(e)</u> or <u>Sections</u> <u>7.3(b)</u><u>-</u><u>(e)</u> and any indemnification payments made with respect thereto will not be included in the determination of whether the Threshold Amount has been met and (ii) the General Cap shall not apply to Damages arising out of Fraud, Seller Fundamental Representations, Purchaser Fundamental Representations, or any indemnifiable matter set forth in <u>Sections</u> <u>7.2(b)</u><u>-</u><u>(e)</u> or <u>Sections</u> <u>7.3(b)</u><u>-</u><u>(e)</u> and any indemnification payments made with respect thereto will not be included in the determination of whether the General Cap has been met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**Subject to <u>Section</u> <u>7.4(a)</u>, the aggregate amount of all Liabilities of any Indemnifying Party under this Agreement shall not exceed [\*\*\*] (the "**Transaction Cap**"); *provided*, *however*, that the Transaction Cap shall not apply to Damages arising out or relating to (i) any Fraud, willful misconduct, or gross negligence by the Seller Group or Purchaser Group in connection with this Agreement, any other Transactional Agreement or the Transition Services Agreement, (ii) Excluded Taxes, (iii) Excluded Employee Liabilities, (iv) Tender Liabilities, (v) any post-Closing breach of any covenant or obligation of any member the Seller Group or Purchaser Group expressly set forth in this Agreement or any other Transactional Agreement, (vi) any unauthorized commitment made by Seller or any of its Affiliates, Representatives or employees in violation of clause (c) of Schedule B to the Transition Services Agreement (to the extent the Transition Services Agreement is duly executed by the Seller and Purchaser after the Initial Closing), (vii) any action taken by Seller or its employees under the Transition Services Agreement at the express written consent or written direction of Purchaser in connection with the performance of Seller's services under the Transition Services Agreement without prior written consent by Purchaser, but only if such prior written consent is expressly required by the terms and conditions of the Transition Services Agreement (to the extent the Transition Services Agreement is duly executed by the Seller and Purchaser after the Initial Closing), and (viii) [\*\*\*] pursuant to the applicable terms and conditions of the Existing Agreement as in effect as of immediately prior to the Initial Closing (which for clarity shall be subject to the limitations of liability expressly set forth in the Existing Agreement as in effect as of immediately prior to the Initial Closing), and any indemnification payments made with respect to the

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

matters set forth in the foregoing clauses (i) through (viii) will not be included in the determination of whether the Transaction Cap has been met with respect to any Indemnifying Party. For the avoidance of doubt, there shall be no cap or limit to the recovery of Damages by (1) the Purchaser Indemnitees, or (2) the Seller Indemnitees, in each case, that arise directly or indirectly from or as a direct or indirect result of the items set forth in the foregoing clauses (i) through (viii) (as applicable). For the avoidance of doubt, Seller Indemnitees shall have no liability for product performance, product defects, medical outcomes, or similar items relating to Products under the Transition Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**Any Damages payable by an Indemnifying Party for indemnification under <u>Section</u> <u>7.2</u> (*Indemnification by Seller*) or <u>Section</u> <u>7.3</u> (*Indemnification by Purchaser Parties*) of this Agreement shall be calculated without duplication. No Indemnified Party (defined below) shall be entitled to recover the same Damages more than once, whether arising from the same set of facts constituting a breach of more than one representation, warranty, covenant or agreement, under more than one provision of this Agreement, or under any other theory or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**The amount of any Damages payable by an Indemnifying Party under <u>Section</u> <u>7.2</u> (*Indemnification by Seller*) or <u>Section</u> <u>7.3</u> (*Indemnification by Purchaser Parties*) of this Agreement shall be calculated net of (and reduced by) the amount of any insurance proceeds, indemnification or contribution payments or other similar reimbursements actually received by the Indemnified Party from third parties (other than Purchaser and the Purchaser Affiliates and Seller and the Seller Affiliates, as applicable) in respect of such Damages. The Indemnified Party shall use its commercially reasonable efforts to recover under insurance policies or indemnity, contribution or other similar agreements for any Damages prior to seeking indemnification under this Agreement (net of any costs or expenses incurred in obtaining such insurance, indemnification or reimbursement, including any increases in insurance premiums or retro- premium adjustments resulting from such recovery); *provided*, that except for the following sentence, nothing in this <u>Section</u> <u>7.4(c)</u> shall be construed as or give rise to an obligation to seek any such insurance, indemnification or reimbursement. If any Indemnified Party receives any such insurance proceeds, indemnification or contribution payments or reimbursements from third parties (other than Purchaser and the Purchaser Affiliates and Seller and the Seller Affiliates, as applicable) with respect to any Damages for which it has already received an indemnification payment hereunder, it shall promptly pay an amount equal to the portion of the indemnification payment for which it received such a third party recovery (net of any costs or expenses incurred in obtaining such recovery, including any increases in insurance premiums or retro-premium adjustments resulting from such recovery) to the Indemnifying Party as soon as practicable but in any event no later than [\*\*\*] of the receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)**In no event shall any Indemnifying Party be liable to any Indemnified Party for any punitive damages; *provided*, *however*, that nothing contained herein shall limit indemnification for any such punitive damages to the extent actually awarded to a Person who is not a party to this Agreement or an Affiliate of a party to this Agreement or a Representative of any of the foregoing with respect to a Third-Party Indemnifiable Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)**Each Indemnified Party shall take reasonable steps to mitigate any Damages in a manner consistent with the common law doctrine of mitigation of damages after becoming aware of any event which would reasonably be expected to give rise to any Damages that are indemnifiable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.5** **Exclusivity of Indemnification Remedies.** Each of the Parties agree that, except for such equitable remedies as may be available to enforce the covenants and agreements of the Parties that by their

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terms are to be performed and complied with after the Applicable Closing Date, following the Applicable Closing Date (including under any Local Purchase Agreement) the indemnification provisions in this <u>Section</u> <u>7</u> shall be the sole and exclusive legal remedy of such party for any and all claims against the other Parties and their respective Affiliates for Damages under this Agreement, the other Transactional Agreements and the Transition Services Agreement; *provided*, *however*, that the foregoing sentence shall not be (x) deemed a waiver by any party of any right or remedy arising by reason of any claim based on any Fraud or (y) affect any rights or remedies under the Amended and Restated Existing Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.6** **Indemnification Procedures**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Notice of Claims.** Any indemnified party making a claim for indemnification pursuant to <u>Section</u> <u>7.2</u> (*Indemnification by Seller*) or <u>Section</u> <u>7.3</u> (*Indemnification by Purchaser Parties*) (as applicable, an "**Indemnified Party**") must give Seller, in the case of a claim for Damages by a Purchaser Indemnitee, or Purchaser, in the case of a claim for Damages by a Seller Indemnitee (as applicable, the "**Indemnifying Party**"), written notice (a "**Claim Notice**") of such claim describing such claim in reasonable detail and the nature and amount of such Damages to the extent that the nature and amount thereof are determinable at such time, promptly after the Indemnified Party receives any written notice of any Proceeding against or involving the Indemnified Party by a Third Party or otherwise discovers the Liability, obligation or facts giving rise to such claim for indemnification; *provided*, *however*, that the failure to notify or delay in notifying the Indemnifying Party will not relieve the Indemnifying Party of its obligations pursuant to <u>Section</u> <u>7.2</u> (*Indemnification by Seller*) or <u>Section</u> <u>7.3</u>, as the case may be, except to the extent that the defenses available to such Indemnifying Party are actually and materially prejudiced as a result thereof. Any such claim for indemnification shall be conclusive against the Indemnifying Party in all respects [\*\*\*] after receipt by the Indemnifying Party of such Claim Notice, unless within such period the Indemnifying Party sends the Indemnified Party a notice disputing such claim (a "**Notice of Dispute**"). Upon receipt of any Notice of Dispute, both the Indemnified Party and the Indemnifying Party shall use commercially reasonable efforts to cooperate and arrive at a mutually acceptable resolution of such dispute within [\*\*\*] of the Indemnified Party receiving the Notice of Dispute from the Indemnifying Party. If a mutually acceptable resolution cannot be reached between the Indemnified Party and the Indemnifying Party within such [\*\*\*] period, the Indemnified Party and the Indemnifying Party may thereupon proceed to pursue any and all available remedies at Law. Notwithstanding anything to the contrary in this <u>Section</u> <u>7</u>, Purchaser shall act on behalf of all Purchaser Indemnitees pursuant to this <u>Section</u> <u>7</u>, and Seller shall act on behalf of all Seller Indemnitees pursuant to this <u>Section</u> <u>7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)Control of Defense.** Subject to the provisions of <u>Section</u> <u>7.6(a)</u>, in the event that an Indemnified Party becomes aware of a Third-Party proceeding (x) which constitutes a matter for which either an Indemnified Party is entitled to indemnification under <u>Section</u> <u>7.2</u> (*Indemnification by Seller*) or <u>Section</u> <u>7.3</u> (*Indemnification by Purchaser Parties*) or (y) if determined adversely to an Indemnified Party would provide a basis for a claim for indemnification under <u>Section</u> <u>7.2</u> (*Indemnification by Seller*) or <u>Section</u> <u>7.3</u> (*Indemnification by Purchaser Parties*) (each such claim, a "**Third-Party Indemnifiable Claim**"), with respect to the defense of such Third-Party Indemnifiable Claim, and subject to the limitations on settlement set forth in <u>Section</u> <u>7.6(c)</u>, the Indemnifying Party shall have the right to participate in, or by giving written notice to the Indemnified Party, to assume the defense of any Third-Party Indemnifiable Claim at the Indemnifying Party's expense and by the Indemnifying Party's own counsel, reasonably satisfactory to Indemnified Party (which consent will not be unreasonably withheld, conditions, or delayed), and the Indemnified Party shall cooperate in good faith in such defense as long as (i) the Indemnifying Party notifies the Indemnified Party within [\*\*\*] after the Indemnified Party has given notice of the Third-

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Party Indemnifiable Claim to the Indemnifying Party (or by such earlier date as may be necessary under applicable procedural rules in order to file a timely appearance and response or other required pleading) that the Indemnifying Party is assuming the defense of such Third-Party Indemnifiable Claim, (ii) the Indemnifying Party conducts the defense of the Third-Party Indemnifiable Claim actively and in good faith and at its own cost and expense, and (iii) the Third-Party Indemnifiable Claim (1) does not involve injunctive, equitable or other non-monetary relief against the Indemnified Party, (2) is not one in which the Indemnified Party reasonably determines, after consultation with its counsel, that use of the counsel selected by the Indemnifying Party to represent the Indemnified Party would be reasonably likely to present such counsel with a conflict of interest, (3) does not involve monetary damages in excess of the General Cap applicable to such Indemnifying Party in respect of such Third-Party Indemnifiable Claim, (4) does not relate to or otherwise arise in connection with any Tax or criminal or regulatory Proceeding or any Proceeding by any Governmental Body, (5) is not one in which an adverse judgment would, in the good faith and reasonable judgment of the Indemnified Party, likely be materially adverse to the Indemnified Party's or its Affiliates' business, (6) does not contain an admission of wrongdoing or liability on behalf of any Indemnified Party, (7) does not provide that an Indemnified Party is required to (I) take or refrain from taking any material action that would, in the absence of taking or refraining to take such action, adversely affect such Indemnified Party, (II) acknowledge any material rights of the Person making the Third-Party Indemnifiable Claim that would adversely affect such Indemnified Party or (III) waive any material rights that such Indemnified Party may have against such Person making the Third-Party Indemnifiable Claim or (8) does not include a legally binding, unconditional and irrevocable full release of the Indemnified Party by the Person bringing such Third-Party Indemnifiable Claim from any obligations or liabilities it may have with respect to the Third-Party Indemnifiable Claim. If the Indemnifying Party does not notify the Indemnified Party within [\*\*\*] after the receipt of the Claim Notice hereunder that it elects to undertake the defense thereof, the Indemnified Party may assume the defense of such Third-Party Indemnifiable Claim; *provided*, *however*, that the Indemnified Party may not settle, compromise or consent to any judgment with respect to such Third-Party Indemnifiable Claim without the prior written consent of the Indemnifying Party (not to be unreasonably withheld, conditioned or delayed), and any settlement entered into without such consent shall not be determinative of the amount of Damages payable hereunder. The Indemnified Party may retain separate co-counsel at its sole cost and expense, except that the Indemnifying Party will be responsible for the fees and expenses of such separate co-counsel (subject to the applicable limitations of this <u>Section</u> <u>7</u>, if any) (A) to the extent the Indemnified Party reasonably concludes that the counsel the Indemnifying Party has selected has an actual conflict of interest or (B) during the pendency of such Third-Party Indemnifiable Claim, if the Indemnifying Party requests that the Indemnified Party, of the Indemnified Party is otherwise required to, participate in any aspect of such Third-Party Indemnifiable Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Settlement of Claims.** The Indemnifying Party may not settle or compromise any Proceeding for which a Claim Notice has been provided in accordance with <u>Section</u> <u>7.6(a)</u> without the prior written consent of the Indemnified Party (which consent may not be unreasonably withheld, conditioned or delayed) and such written consent shall be deemed to have been given unless the Indemnified Party has objected within [\*\*\*] after a written request for such consent by the Indemnifying Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.7** **Tax Treatment of Indemnification Payments.** To the extent permitted by applicable Law, the Parties hereto agree to treat any indemnity payment made pursuant to this <u>Section</u> <u>7</u> as an adjustment to the Purchase Price for applicable Tax purposes.

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**8.** **Additional agreements.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1** **Further Actions.** From and after the Initial Closing Date, Seller shall and shall use commercially reasonable efforts to cause the Seller Affiliates to, cooperate with Purchaser and any Purchaser Affiliate and Representatives and to take all actions necessary or appropriate to consummate the Transactions, including executing and delivering such documents and taking such other actions as reasonably requested by any Person or required by the applicable Governmental Body, for the purpose of evidencing the Transactions. Without limiting the generality of the foregoing, each Party agrees to endorse (if necessary) and deliver to the other, promptly after its receipt thereof, any payment or document which it receives after any Applicable Closing Date and which is the property of the other, including, for the avoidance of doubt, any payment or document received by Purchaser or Purchaser Affiliates after any Applicable Closing Date in respect of any Excluded Asset and any payment or document received by Seller or Seller Affiliates after any Applicable Closing Date in respect of any Purchased Asset. If, after any Applicable Closing Date, either Party or any of its Affiliates comes into possession, custody, or control of any Excluded Asset (in the case of Purchaser or any Purchaser Affiliate) or any Purchased Asset (in the case of Seller or any Seller Affiliate), such Party shall promptly notify the other Party thereof, segregate and hold such asset for the benefit of the rightful owner, and take all actions necessary or appropriate to transfer, assign, and deliver such asset to the rightful owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2** **Publicity.** Without limiting the generality of anything contained in <u>Section</u> <u>4.7</u>, the Parties will coordinate in good faith with respect to any public announcement, public release, or other public disclosure, whether written electronic, oral or otherwise (collectively, "**Public Disclosures**") to the public regarding the existence of this Agreement, the terms hereof, the Transactions, or any other information relating to this Agreement shall be issued at such time and in such form as shall be mutually agreed upon between the Parties. Except as required by Law or the rules of any applicable stock exchange, each disclosing Party shall, to the extent legally permissible, (a) provide the non-disclosing Party with reasonable advance notice of each Public Disclosure or its subject matter and an opportunity to review and comment on such proposed Public Disclosure(s), and (b) obtain the prior written consent of the non-disclosing Party prior to each such Public Disclosure's announcement or release of new information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3** **Bulk Sales Requirements.** Each of the Parties waives compliance with any applicable bulk sales, bulk transfers or similar Laws, including without limitation the Uniform Commercial Code Bulk Transfer provisions to the extent that the same may be applicable to the Transactions. All Liabilities arising out of the failure to comply with the requirements and provisions of any bulk sales, bulk transfer or similar Laws of any jurisdiction which would not otherwise constitute Assumed Liabilities shall be treated as Excluded Liabilities. Seller agrees to pay and discharge in due course and will indemnify and hold harmless the Purchaser Parties from and against all claims made by creditors of the Seller, including expenses and attorneys' fees incurred by the Purchaser in defending against such claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4** **Access to Books and Records; Cooperation on Financial Statements**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**For a period of [\*\*\*] after the Initial Closing, Seller shall, and shall cause its Affiliates to, upon written request, provide Purchaser with copies of or access to (as determined in the reasonable discretion of Seller) the relevant portion of any Books and Records, in each case, to the extent (i) relating to, held for use with or used in connection with the CGM Activities but which are not Transferred Books and Records and (ii) such Books and Records are in an Seller Affiliate's or any of its Affiliates' possession or control as of such time (such Books and Records, collectively, the "**Commingled Books and** 

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**Records**"); *provided*, that (1) Seller shall not be required to provide copies of or access to any Commingled Books and Records to the extent prohibited by applicable Law or any Order of a Governmental Body of competent jurisdiction, (2) for the avoidance of doubt, Seller and any of its Affiliates shall be entitled to redact or remove any information in any Commingled Books and Records prior to providing copies or access to Purchaser under this <u>Section</u> <u>8.4(a)</u> to the extent not relating to, held for use with or used in connection with the CGM Activities or relating to, held for use with or used in connection with an Excluded Asset or Excluded Liability, and (3) Purchaser shall comply with all applicable data protection Laws with respect to such copies or access and all confidentiality obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**Notwithstanding anything to the contrary contained in this Agreement, the Parties acknowledge and agree that Seller and its Affiliates shall be entitled to, in Seller's sole discretion, (i) keep copies of any Transferred Books and Records for operational, legal, Tax, regulatory or record-keeping purposes or in order to comply with applicable Laws, Seller's or its Affiliates' internal policies and procedures or any applicable contractual or other similar obligations, subject to the confidentiality and restriction on use obligations hereunder, or (ii) redact or remove any information in any such Transferred Books and Records or any other documents or materials transferred to Purchaser as part of the Purchased Assets to the extent not relating to, held for use with or used in connection with the CGM Activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**From and after the Initial Closing, subject to, at the written request of Seller, [\*\*\*] Purchaser shall comply with all applicable data protection Laws with respect to such copies or access and confidentiality obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**During the period from the date of this Agreement until the later of (i) the [\*\*\*] following the termination of the Transition Services Agreement in accordance with its terms or (ii) the termination of this Agreement in accordance with its terms, each Party shall, and shall cause its Affiliates to, (A) use Best Efforts to furnish other Party with financial and other information as promptly as reasonably practicable upon the requesting Party's written request as may be reasonably necessary for the requesting Party to timely prepare any historical financial statements of the requesting Party or of the other Party (and their Affiliates) that are required (and to obtain any required audit of such financial statements by an independent registered public accounting firm) including, without limitation, a pro forma consolidated balance sheet and related pro forma consolidated statements of income of the other Party and its subsidiaries giving effect to the transactions contemplated hereby that may be required under applicable Laws, including in the case of Purchaser, pursuant to Regulation S-X under the U.S. Securities Act of 1933, and the rules and regulations promulgated thereunder or the rules and regulations applicable to such Party, and (B) reasonably assist the requesting Party with the requesting Party's preparation of such current and/or historical financial statement (and the audit thereof) and pro forma financial statements upon reasonable prior written notice and during normal business hours.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5** **Contract Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)Restricted Material Contracts**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**If there are any Consents required for the sale, assignment, assumption, transfer, conveyance or delivery of any Transferred Contract that have not been obtained (or otherwise are not in full force and effect) as of the Applicable Closing, in the case of each Contract as to which such consents were not obtained (or otherwise are not in full force and effect) (other than a Tender Contract) (each a "**Restricted Material Contract**"), the applicable member of the Seller Group shall, at Purchaser's

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

request, for a period of [\*\*\*] following such Applicable Closing Date (the "**Contract Cooperation Period**"), use commercially reasonable efforts to seek to obtain any such Consents (including enforcement for the account of Purchaser of such rights against the other party thereto [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**Purchaser may elect (by providing advance written notice to Seller at least [\*\*\*] in advance of the end of the Contract Cooperation Period) to have the applicable member of the Seller Group continue to use commercially reasonable efforts to seek to obtain any such Consent to transfer such Restricted Material Contract for [\*\*\*] period (the "**Extended Cooperation Period**"). [\*\*\*]. Notwithstanding this <u>Section 8.2(a)</u>, Seller and its Affiliates shall have no obligation to take any action that would constitute a breach of, default under, or give rise to any right of termination, modification or acceleration under, any Restricted Material Contract or applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**If and when the applicable Consent for the sale, assignment, assumption, transfer, conveyance and delivery of a Restricted Material Contract is obtained during the Contract Cooperation Period, the applicable member of the Seller Group shall promptly assign, transfer, convey and deliver such Restricted Material Contract to the Purchaser or its designee at no additional cost to Purchaser (except as expressly agreed to between the Seller and Purchaser in writing), and the Purchaser or its designee shall assume the obligations under such Restricted Material Contract assigned to the Purchaser or its designee from and after the date of assignment to the Purchaser pursuant to a special-purpose assignment and assumption agreement in form and substance reasonably acceptable to Purchaser, which special-purpose agreement the Seller and Purchaser (or their respective Affiliates) shall prepare, execute and deliver in good faith at the time of such transfer. If the applicable Consent is not obtained by the end of the Contract Cooperation Period (or Extended Cooperation Period, as applicable), Seller shall have no further obligation to seek such Consent or to continue any interim arrangement, and the Parties shall have no further obligations with respect to the applicable Restricted Material Contract under this <u>Section</u> <u>8.5</u> other than the obligations that expressly survive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)Tender Contracts**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**Purchaser and Seller shall [\*\*\*] incurred in connection with the preparation, submission, and processing of any filings, notifications, or applications required by any Governmental Body or other counterparty for Consent to the transfer, novation, or assignment of any Tender Contract entered into by Seller or any Seller Affiliate [\*\*\*] to Purchaser or a Purchaser Affiliate (the "**Existing Tender Contracts Consents**"); *provided*, that [\*\*\*] (the "**New Tender Contract Consents**"). The Existing Tender Contract Consents and New Tender Contracts Consents shall, together, constitute the "**Tender Contracts Consents**"; *provided*, *further*[\*\*\*], unless otherwise expressly agreed to in writing by Seller and Purchaser pursuant to a separate written agreement; *provided*, *further*, [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)**For clarity, costs covered by this <u>Section 8.2(b)</u> shall not include (a) internal administrative costs of any Party or any of their respective Affiliates, (b) costs incurred solely due to a Party's or their respective Affiliate's breach of its obligations under any Tender Contract, or (c) any Liabilities arising from such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**Seller and Purchaser shall reimburse the other party for its allocation of such costs within [\*\*\*] following receipt of an invoice and reasonable supporting documentation.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)**Purchaser and Seller, and their respective Affiliates, shall use commercially reasonable efforts to cooperate in good faith to complete filings and obtain any required consents or approvals under the Tender Contracts as promptly as practicable, including providing all necessary information and executing all required documents; *provided*, *however*, the Parties shall have no obligation to pursue any Tender Contract Consents [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)**In addition to covenants and obligations of the Purchaser and Seller and their respective Affiliates under the Local Purchase Agreements, Purchaser and Seller shall and shall cause their respective Affiliates undertake to cooperate in good faith and use commercially reasonable efforts to obtain the Tender Contracts Consents and to jointly: (1) contact any Governmental Bodies and public contracting authorities as soon as practicable after the Initial Closing in order to verify any and all documentation and information required and/or appropriate for the obtainment of the Tender Contracts Consents; (2) formally notify the transfer of the applicable CGM Activities to such public contracting authorities (enclosing all the necessary and/or appropriate documentation and information) promptly after the Initial Closing Date and request the Tender Contracts Consents as soon as possible after the signing of this Agreement. Purchaser and Seller hereby acknowledge and agree that any period prior to the obtainment of the Tender Contracts Consents, the Tender Contracts shall be performed and fulfilled by Seller and/or the Seller Affiliates in good faith and in the Ordinary Course of Business consistent with past practice and in compliance with the provisions of the Transactional Agreements, the Transition Service Agreement and the Amended and Restated Existing Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)Later Discovered Seller Contracts.** For a period [\*\*\*] following each Applicable Closing Date, in the event that there are any Seller Contracts (other than Contracts that are Excluded Assets) that are primarily related to the CGM Activities which Seller or a Seller Affiliate are party to would have been transferred to Purchaser as part of this Agreement but for the fact that such Seller Contract was not discovered until after the Applicable Closing Date (each, a "**Later Discovered Contract**"), to the extent permitted under the terms and conditions of such Later Discovered Contract and applicable Law, Seller agrees to use commercially reasonable efforts to cooperate in assigning to Purchaser such Later Discovered Contract or the applicable rights or obligations under such Later Discovered Contract at the reasonable request of Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.6** **Misallocated Assets.** In the event that either Seller or Purchaser becomes aware that (i) record or beneficial ownership or possession of any asset that is a Purchased Asset or should have been a Purchased Asset has not been sold, conveyed, transferred, assigned and delivered by Seller or its Affiliates to Purchaser or one of its Affiliates at the Applicable Closing, or that any Assumed Liability has not been assumed by Purchaser at the Applicable Closing, (ii) the parties mutually determine in good faith that an asset that primarily related to the CGM Activities and that is reasonably necessary for the continued operation of the CGM Activities has not been sold, conveyed, transferred, assigned and delivered by Seller or its Affiliates to Purchaser or one of its Affiliates at the Applicable Closing, or (iii) record or beneficial ownership or possession of any asset that is not a Purchased Asset has been sold, conveyed, transferred, assigned and delivered by Seller or its Affiliates to Purchaser or one of its Affiliates at the Applicable Closing, or that any Excluded Liability has been erroneously assumed by Purchaser at the Applicable Closing, then such party shall promptly notify the other party, and each of Seller and Purchaser shall thereafter reasonably cooperate to, as promptly as practicable, (1) sell, convey, transfer, assign and deliver (or cause to be sold, conveyed, transferred, assigned and delivered) the relevant asset to, as the case may be, Purchaser or its designated Affiliate, or Seller or its designated Affiliate, or (2) cause the relevant

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

Liability to be assumed by Purchaser or its designated Affiliate, or Seller or its designated Affiliate, as the case may be, in each case pursuant to this Agreement or any applicable Local Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.7** **Employees and Related Matters.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)Transferred Employees.** The CGM Employees in the U.S. who accept employment with Purchaser or one of its Affiliates as of the Initial Closing shall be referred to herein as "**U.S. Transferred Employees**" and CGM Employees in the European Territory who accept employment with Purchaser or one of its Affiliates or whose employment is transferred to Purchaser or one of its Affiliates as of the Applicable Closing shall be referred herein as "**European Transferred Employees**" and collectively, the "**Transferred Employees.**" The CGM Employees who do not accept employment, whose employment is not transferred to Purchaser or one of its Affiliates, or who are otherwise not classified as a Transferred Employee in accordance with the preceding sentence, and the other employees of Seller and its Affiliates shall be referred to collectively herein as "**Non-Transferred Employees**." Neither Purchaser nor any of its Affiliates shall have any Liability with respect to any Non-Transferred Employee or former employee or retiree of Seller or any Seller Affiliate, regardless of when such Liability arises or occurred. Seller shall be solely responsible for the payment of all wages, salaries and other compensation and employee benefits (including any severance pay, notice pay, insurance, supplemental pension, deferred compensation, "stay" or other similar incentive bonuses, change-in-control bonuses (or other bonuses or compensation related in any way to the execution, delivery or performance of this Agreement), retirement and any other benefits, premiums, claims and related costs) to any of the employees, former employees or retirees of Seller or any Seller Affiliate, including the Transferred Employees, related to or arising out of their employment with Seller or any Seller Affiliate prior to the Applicable Closing Date. Seller and its Affiliates will make payments on or immediately prior to the Applicable Closing Date that constitute all ordinary course wage and other payment obligations to all Transferred Employees in accordance with normal payroll practices in the Ordinary Course of Business. Purchaser shall be solely responsible for the payment of all wages, salaries and other compensation and employee benefits (including any severance pay, notice pay, insurance, supplemental pension, deferred compensation, bonuses, retirement and any other benefits, premiums, claims and related costs) to any Transferred Employee relating to or arising out of their employment with Purchaser or any Purchaser Affiliate on and after the Initial Closing Date with respect to U.S. Transferred Employees or Applicable Closing Date with respect to European Transferred Employees, as applicable. Seller or the relevant Seller Affiliate shall transfer to Purchaser or the relevant Purchaser Affiliate all amounts that it should have accrued under applicable Law in relation to the employment relationship of Transferred Employees with the Seller or any Seller Affiliate. Notwithstanding anything in this Agreement to the contrary, at or promptly following the Initial Closing, Seller shall pay to the U.S. Transferred Employees the accrued but unpaid paid time off as of the Initial Closing Date for the U.S. Transferred Employees set forth on <u>Schedule 8.7</u> to the extent required by applicable Law and/or Seller's policies in effect prior to the Initial Closing ("**Employee Termination PTO**"). Purchaser shall reimburse Seller in an amount of [\*\*\*] (the "**Employee Termination PTO Cap**") as reimbursement of such Employee Termination PTO paid by Seller (the "**Termination PTO Reimbursement Amount**"), without duplication, within [\*\*\*] following Seller's delivery of reasonable supporting documentation evidencing such payments. The Termination PTO Reimbursement Amount shall be net of any withholdings required by applicable Law. For the avoidance of doubt, Purchaser shall not assume any Employee Termination PTO liabilities in excess of the Employee Termination PTO Cap or attributable to services provided by any employee of the Seller Group prior to the Initial Closing, and any Employee Termination PTO accrued by the U.S. Transferred Employees following the Initial Closing shall be the sole responsibility of Purchaser in accordance with Purchaser's applicable policies.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**Where the conditions set forth by applicable Law for an automatic transfer of employment of any Transferred Employees are met, upon the consummation of the Transactions, Seller (i) shall take or cause to be taken such actions as are required under applicable Law to accomplish such transfer of employment of such Transferred Employees to Purchaser by operation of Law as of the Applicable Closing Date (unless they are transferred to Purchaser or one of its Affiliates by operation of law, in which case Seller shall carry out any mandatory union consultation provided by applicable Law) and (ii) shall not take and shall not cause to be taken any such actions that would result in the employment of such Transferred Employees not transferring to Purchaser by operation of Law as of the Applicable Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**If the transfer of any Transferred Employee requires prior authorization from any authority for staff representative members under applicable Law, Seller shall use Best Efforts to comply with the relevant proceeding in order to obtain such authorization prior to the Applicable Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)U.S. Defined Contribution Plans.** To the extent permitted by law and its 401(k) plan, Seller shall make, as and when due, all employee and required employer contributions with respect to the Transferred Employees' employment service rendered prior to the Closing to the 401(k) plan of Seller and/or the applicable Seller Affiliate (the "**Seller 401(k) Plan**") and shall cause the accounts of all Transferred Employees under the Seller 401(k) Plan to become fully vested as of the Applicable Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)U.S. COBRA.** Seller is wholly responsible for complying with all applicable health care continuation coverage requirements under COBRA and related state Laws with respect to the CGM Employees of Seller and the Seller Affiliates as to qualifying events that occur on or prior to the Closing Date, and Purchaser is wholly responsible for complying with such coverage requirements with respect to Transferred Employees employed by Purchaser or the Purchaser Affiliates from and after the Closing Date who have qualifying events that occur after the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)Seller Employee Plans.** Seller shall remain responsible for administering Seller Employee Plans with respect to U.S. Transferred Employees, through the Initial Closing Date and with respect to European Transferred Employees, through the Applicable Closing Date. Seller shall make all required contributions and pay all premiums required under each Seller Employee Plan on behalf of Transferred Employees with respect to periods ending prior to close of business on the date immediately prior to the Initial Closing Date for U.S. Transferred Employees and the Applicable Closing Date for the European Transferred Employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)Mutual Cooperation.** Subject to applicable Law (including any privacy Laws), Seller and each Seller Affiliate shall use reasonable efforts to, during normal business hours, provide promptly to Purchaser, at Purchaser's prior written request, any information or copies of personnel records (including addresses, dates of birth, dates of hire and dependent information) relating to the Transferred Employees or relating to the service of Transferred Employees with Seller (and predecessors and Affiliates of Seller) prior to the Applicable Closing Date. Seller and Purchaser shall each cooperate with the other and shall provide to the other such documentation, information and assistance as is reasonably necessary to effect the provisions of this <u>Section</u> <u>8.7</u>.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)Additional Covenants**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**Seller and the Seller Affiliates shall retain all Liabilities in respect of any employee benefit plan of any kind or nature which any of them has sponsored, sponsors, has contributed to or contributes to, whether on, prior to, or after the Applicable Closing Date. No assets or liabilities of any employee benefit plan shall be transferred to Purchaser or any of its Affiliates or any employee benefit plan maintained by any of them. All claims incurred by Transferred Employees or their covered dependents on or prior to the Initial Closing Date for U.S. Transferred Employees and the Applicable Closing Date for European Transferred Employees under any Seller Employee Plan sponsored by any Seller or Seller Affiliate or any employee benefit plan to which any Seller or Seller Affiliate contributes shall be covered pursuant to the terms and conditions of such benefit plans. For purposes of this Agreement, (i) a claim for health benefits will be deemed to have been incurred on the date on which the related medical service or material was rendered to or received by the individual claiming such benefit, (ii) a claim for sickness, accident or disability benefits based on an injury or illness occurring on or prior to the Initial Closing Date for U.S. Transferred Employees and the Applicable Closing Date for European Transferred Employees will be deemed to have been incurred prior to the Applicable Closing Date and (iii) in the case of any claim for benefits other than sickness, accident or disability benefits (*e.g.*, life insurance benefits), a claim will be deemed to have been incurred upon the occurrence of the event giving rise to such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** **Cooperation; Purchaser Direction Rights.** From and after the Agreement Date and continuing through and after each Applicable Closing, Seller shall reasonably cooperate, at Purchaser's written request and at Purchaser's sole cost and expense, to implement any transfer, separation, assignment, novation, termination, run-off or other restructuring of employee benefit plans and related employment, labor, pension or benefit liabilities to the extent expressly required by applicable Law and the Transactional Agreements with respect to Transferred Employees and the CGM Activities. Such cooperation will consist of executing customary instruments and taking reasonable actions required by a Governmental Body or necessary to evidence or implement such actions, including customary plan data transfers, authorizations, notices, consultations and filings, in each case only to the extent permitted by Law and subject to appropriate data privacy and confidentiality protections. Nothing in this provision requires Seller or any Seller Affiliate to (a) assume, retain or bear any liability allocated to Purchaser under the Transactional Agreements, (b) establish, amend or terminate any Seller Employee Plan except as expressly required by the Transactional Agreements, (c) admit liability, (d) incur more than de minimis out-of-pocket costs without reimbursement by Purchaser, (e) take any action that would materially disrupt Seller's operations, or (f) obtain any third-party consent beyond using reasonable efforts. For clarity, nothing in this clause (ii) shall alter any allocation or retention of liabilities as set forth in the Transactional Agreements; Purchaser may propose alternative arrangements, subject to Seller's prior written consent (not to be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)No Assumption by Purchaser.** For the avoidance of doubt, except as required by Law or an express written agreement between the Parties, Purchaser and the Purchaser Affiliates shall not assume, and shall have no Liability for, any Seller Employee Plan or any Liabilities relating to any employee, former employee, retiree, director, independent contractor, agent or service provider of Seller or any Seller Affiliate (including any Transferred Employee) arising out of or relating to periods on or prior to the Applicable Closing Date, or otherwise relating to any Seller Employee Plan, except to the extent such Liabilities constitute Assumed Liabilities expressly set forth in this Agreement or in any Local Purchase Agreement, or to the extent Purchaser is required to assume such Liabilities under applicable Law. Without limiting the foregoing, all employee benefit plans of Seller or any Seller Affiliate

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

(including the Seller Employee Plans) and all related Liabilities are Excluded Assets and Excluded Liabilities and shall remain the responsibility of Seller and the Seller Affiliates, and no assets or liabilities of any such plan shall be transferred to Purchaser, any Purchaser Affiliate or any employee benefit plan maintained by any of them, except where and to the extent required by applicable Law or expressly agreed in writing by Purchaser. Any cooperation, transition or interim servicing provided by Purchaser or any Purchaser Affiliate shall not constitute, and shall not be construed as, an assumption of any Seller Employee Plan or any related Liability, absent an express assumption in accordance with this Agreement, a Local Purchase Agreement, or applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)Seller Responsibility for Pre-Closing Employment and Benefit Matters.** Seller shall be solely responsible for all wages, salaries, benefits and other compensation and any and all related costs or Liabilities with respect to the employees, former employees and retirees of Seller or any Seller Affiliate, including Transferred Employees, to the extent relating to or arising out of employment with Seller or any Seller Affiliate on or prior to the Applicable Closing Date, subject to any express reimbursement obligations of Purchaser set forth in this Agreement. All claims incurred by Transferred Employees and their covered dependents on or prior to the Applicable Closing Date under any Seller Employee Plan shall be covered under such plans in accordance with their terms, and Seller shall make all required contributions and pay all premiums with respect to periods ending on or prior to the Applicable Closing Date, in each case as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)Information Sharing; Consultations; Privacy and Privilege.** Subject to applicable Law (including data protection and employment privacy Laws), Seller shall, and shall cause the Seller Affiliates to, provide Purchaser and the Purchaser Affiliates, upon reasonable written request, such personnel data and plan information as is reasonably necessary to implement this Section, including employee demographic, service and compensation data, and plan terms necessary to determine and allocate Liabilities in accordance with this Agreement; *provided*, that Seller may redact or withhold information to preserve privilege or as required by Law, while reasonably cooperating to provide necessary information in an alternative manner. Seller shall conduct and complete any works council, employee representative or trade union information and consultation processes and any required notifications in accordance with applicable Law, including any processes required in connection with automatic transfers of employment by operation of Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)No Third-Party Beneficiaries; No Waiver.** This <u>Section 8.7</u> confers no rights on any employees, labor organizations or other third parties and shall not be construed to limit or waive any Excluded Liabilities or to expand any Assumed Liabilities beyond what is expressly provided herein, in any Local Purchase Agreement, or under applicable Law. Nothing in this <u>Section</u> <u>8.7</u> shall require either Party to take any action that would reasonably be expected to breach applicable Law, violate privilege, or contravene any Contract without required Consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)Relationship to Agreement Governance; Local Law.** This <u>Section 8.7</u> is intended to supplement <u>Section</u> <u>1.3</u> (*Excluded Liabilities; Assumption of Assumed Liabilities*) and shall be interpreted consistently therewith. For the avoidance of doubt, any employment transfer obligations, information and consultation processes, and plan transfer mechanics governed by local Law or a Local Purchase Agreement shall be governed by such applicable Law and Local Purchase Agreement in accordance with <u>Section 1.10</u> (*European CGM Activities*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)Intentionally Omitted**.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)Wage Reporting.** The Parties hereby agree to follow the standard procedure relating to employment Tax reporting as provided in Section 4 of Rev. Proc. 2004-53, I.R.B. 2004 35 with respect to U.S. Transferred Employees. Accordingly, the applicable Seller Affiliate shall have employment Tax reporting responsibilities for the wages and other compensation paid by or on behalf of such Seller or Seller Affiliate to U.S. Transferred Employees and the applicable Purchaser Party shall have employment tax reporting responsibilities for the wages and other compensation paid by or on behalf of the Purchaser (or its applicable Affiliate) to U.S. Transferred Employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.8** **Trademarks; Trademark License**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**Seller, on behalf of each Seller Affiliate, hereby grants, and causes each Seller Affiliate to grant, to the Purchaser Group, a limited, non-assignable, nonexclusive, worldwide, irrevocable (for the duration of the license), royalty-free, fully paid up, non-transferable, non-sublicensable, license to use the trademarks and tradenames of the Seller and the Seller Affiliates set forth on <u>Schedule 8.9</u> (the "**Seller Marks**"), for a period of [\*\*\*], beginning on the Initial Closing Date, and terminating on the [\*\*\*] of the Initial Closing Date, solely to the extent strictly necessary to (i) market, promote, advertise and sell any Transferred Inventory that, as of the Closing, already bears the Seller Marks and that remain unaltered, (ii) to effect an orderly wind-down of the Purchaser Group's use of the Seller Marks solely in connection with the CGM Activities as conducted immediately prior to the Closing, and (iii) market and promote the products and services related to the CGM Activities that are bundled or sold with the products and services of the Seller and the Seller Affiliates. All goodwill arising from the use of the Seller Marks will inure solely to the benefit of the Seller and relevant Seller Affiliate. Purchaser will use the Seller Marks in accordance with any written trademark guidelines provided by Seller from time to time. For the avoidance of doubt, the license granted herein does not permit any (A) use of the Seller Marks in connection with any products or services other than Transferred Inventory already bearing the Seller Marks as of the Closing, (B) rebranding, repackaging, relabeling, modification, affixation or any addition of the Seller Marks to any products, services, materials or channels not bearing the Seller Marks as of the Closing, (C) use of the Seller Marks in combination with, or to endorse, identify, bundle, co-brand or otherwise associate with, any products or services of the Purchaser Group (or any third party), (D) use in corporate, trade, domain, social media, metatag, advertising keyword or business names, or (E) any registration, maintenance or challenge of any Seller Mark; *provided*, that Purchaser and its Affiliates' use of any marketing materials that are Purchased Assets and that contain incidental references to Seller's Marks shall not be deemed a violation this <u>Section</u> <u>8.8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**As soon as practicable on and after the Initial Closing Date and in no event later than [\*\*\*] after the last Applicable Closing, the Purchaser shall (and shall cause each Purchaser Affiliate to eliminate the use of all of the trademarks, trade names and service marks not included in the Purchased Assets, in any of their forms or spellings, on all advertising, stationery, business cards, checks, purchase orders and acknowledgments, customer agreements and other contracts, business documents and marketing materials in any countries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.9** **Transferred Inventory.** Notwithstanding anything to the contrary in this Agreement (including, without limitation, any otherwise applicable closing conditions), solely with respect to the purchase and acceptance of Transferred Inventory, Purchaser shall, at such Applicable Closing, purchase, accept, and take delivery of all applicable Transferred Inventory identified on <u>Schedule 1.1(a)(iii)</u> and <u>Schedule 1.1(b)(iii)</u> and any additional Inventory purchased by Seller or the Seller Affiliates after the date of the applicable schedule and that remains unsold as of the Applicable Closing, excluding only the

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

Excluded Inventory as set forth on <u>Schedule 1.2(c)</u> and further excluding any Inventory that following the initial delivery of such Inventory by Purchaser (or an Affiliate thereof) to Seller has been damaged or otherwise handled outside of the requirements of the Quality Agreement, and without any further right of rejection, return, offset, or reduction based on marketability, usability, saleability, demand variability, obsolescence or any other reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.10** **Intentionally Omitted**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.11** **Tax Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**Seller and Purchaser shall (i) provide each other with such assistance as may reasonably be requested in connection with the preparation of any Tax Return, any audit or other examination by any taxing authority or any judicial or administrative proceeding with respect to Taxes, (ii) retain and provide each other with any records or other information which may be relevant to such Tax Return, audit, examination or proceeding, and (iii) provide each other with any final determination of any such audit or examination proceeding or determination that affects any amount required to be shown on any Tax Return of the other (or any of their Affiliates) for any period (which shall be maintained confidentially), in each case, relating to the Purchased Assets or the CGM Activities or arising from the Transactions. The Parties shall promptly notify each other of any audit, examination, investigation, inquiry, inspection or other proceeding by any Governmental Body or other third party that concerns Taxes attributable to the Purchased Assets, and shall contemporaneously furnish to the other Party copies of all material notices and correspondence received or sent, together with a reasonably detailed description of the issues, affected periods and assets, applicable deadlines, and any scheduled conferences or meetings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**All real property Taxes, personal property Taxes and similar ad valorem obligations levied with respect to the Purchased Assets for a Straddle Period shall be apportioned between Seller (on behalf of itself and each applicable Seller Affiliate), on the one hand, and Purchaser (on behalf of itself and each applicable Purchaser Affiliate), on the other hand, as of the Applicable Closing based on the number of days of such taxable period ending on the date of the Applicable Closing (each such portion of such taxable period, a Pre-Closing Tax Period) and the number of days of such taxable period after the Applicable Closing (each such portion of such taxable period, a Post-Closing Tax Period). Seller (on behalf of itself and each applicable Seller Affiliate) shall be liable for the proportionate amount of such Taxes that is attributable to the Pre-Closing Tax Period, and Purchaser (on behalf of itself and each applicable Purchaser Affiliate) shall be liable for the proportionate amount of such Taxes that is attributable to the Post-Closing Tax Period. For the avoidance of doubt, Purchaser shall be responsible for increases in Taxes attributable to Purchaser's ownership, use, actions or elections after the Initial Closing and each Applicable Closing. Upon receipt of any bill for real or personal property Taxes relating to the Purchased Assets, Seller and Purchaser, as applicable, shall present a statement to the other setting forth the amount of reimbursement to which each is entitled under this <u>Section</u> <u>8.11(a)</u> together with such supporting evidence as is reasonably necessary to calculate the proration amount. The proration amount shall be paid by the Party owing it to the other within [\*\*\*] after delivery of such statement. In the event that Seller, on the one hand, or Purchaser, on the other hand, shall make any other payment for which it is entitled to reimbursement under this <u>Section</u> <u>8.11(a)</u>, the other Party shall make such reimbursement promptly but in no event later than [\*\*\*] after the presentation of a statement setting forth the amount of reimbursement to which the presenting Party is entitled along with such supporting evidence as is reasonably necessary to calculate the amount of reimbursement.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**Seller shall not permit to exist any Tax deficiencies (including penalties and interest) assessed against or relating to the Seller or any Seller Affiliate with respect to taxable periods ending on or before, or including, the Applicable Closing Date of a character or nature that could reasonably be expected to result in liens or claims on any of the Purchased Assets or on Purchaser's (or any applicable Purchaser Affiliate's) title or use of the Purchased Assets following the Applicable Closing Date or that would reasonably be expected to result in any claim against Purchaser and any Purchaser Affiliate.

For purposes of this <u>Section</u> <u>8.11</u>, unless clearly indicated to the contrary, all references to "Seller" shall be deemed to also refer to any Seller Affiliate that transfers any Purchased Asset or any Assumed Liability to Purchaser or any Purchaser Affiliate in connection with the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.12** **PASS Accrual Adjustment**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**From the Initial Closing Date through [\*\*\*] (the "**PASS Accrual Adjustment Period**"), Purchaser shall process and pay eligible (as reasonably determined by Purchaser in accordance with the terms of PASS Program and related eligibility rules as in effect immediately prior to the Initial Closing) PASS Program claims submitted by distributors for PASS Program participation. Purchaser shall, within [\*\*\*] following the end of each calendar month during the PASS Accrual Adjustment Period, deliver to Seller a statement setting forth all PASS Program claim payments paid by Purchaser that relate to Revenue Share (applicable to the fiscal as defined in the Existing Agreement) recognized by Seller and Purchaser prior to the Initial Closing Date including reasonable supporting detail (such amount, the "**Monthly PASS Claim Amount**" and each such statement a "**Monthly Historical PASS Claim Statement**"). Within [\*\*\*] of Purchaser's delivery of a Monthly Historical PASS Claim Statement, Seller shall pay to Purchaser an amount equal to the Monthly Pass Claim Amount actually paid by Purchaser in accordance with the foregoing provisions and the supporting detail by wire transfer of immediately available funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**As soon as practicable, and in no event later than [\*\*\*] following the Pass Accrual Adjustment Period, Purchaser shall prepare and deliver to Seller a final statement setting forth the aggregate amount paid by Purchaser and reimbursed by Seller during the PASS Accrual Adjustment Period (such amount, the "**Aggregate PASS Program Reimbursement Amount**" and such final statement, the "**Final PASS Accrual Adjustment Statement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**In the event that the Aggregate PASS Program Reimbursement Amount is less than the PASS Accrual Amount (such difference being herein referred to as the "**PASS Accrual Deficiency Amount**"), then Seller shall, within [\*\*\*] following Purchaser's delivery of the Final PASS Accrual Adjustment Statement, pay to Purchaser an amount equal to Purchaser's applicable Revenue Share (as defined in the Existing Agreement) of such PASS Accrual Deficiency Amount by wire transfer of immediately available funds. In the event that the Aggregate PASS Program Reimbursement Amount is greater than the PASS Accrual Amount (such difference being herein referred to as the "**PASS Accrual Excess Amount**"), Purchaser shall, within [\*\*\*] following Purchaser's delivery of the Final PASS Accrual Adjustment Statement, pay to Seller an amount equal to Seller's applicable Revenue Share (as defined in the Existing Agreement) of such PASS Accrual Excess Amount by wire transfer of immediately available funds.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

**9.** **Miscellaneous Provisions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1** **Fees and Expenses.** Subject to <u>Section</u> <u>1.8</u> (*Transfer Taxes*) and except as otherwise expressly provided in this Agreement, [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2** **Attorneys' Fees.** If any legal action or other legal proceeding relating to any of the Transactional Agreements or the enforcement of any provision of any of the Transactional Agreements is brought against any Party, the prevailing party, as determined by a court of competent jurisdiction in a final non-appealable order, [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3** **Notices.** Any notice or other communication required or permitted to be delivered to any Party under this Agreement shall be in writing and shall be deemed properly delivered, given and received when delivered (by hand, by registered mail, by courier or express delivery service or by facsimile) to the address or facsimile telephone number set forth beneath the name of such Party below (or to such other address or facsimile telephone number as such Party shall have specified in a written notice given to the other Parties):

if to Seller:<br>Ascensia Diabetes Care Holdings AG<br>Peter Merian-Strasse 90, 4052<br>Basel, Switzerland<br>Email: [\*\*\*]<br>Attention: [\*\*\*]

with a copy to:<br>Dentons Cohen & Grigsby P.C.<br>625 Liberty Ave., 5th Floor<br>Pittsburgh, PA 15222-3152 <br>Email: [\*\*\*]<br>Attention: [\*\*\*]

if to Purchaser:<br>Senseonics, Incorporated<br>20451 Seneca Meadows Parkway<br>Germantown, MD 20876-7005<br>Email: [\*\*\*]<br>Attention: [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4** **Time of the Essence.** Time is of the essence of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5** **Headings.** The underlined headings contained in this Agreement are for convenience of reference only, shall not be deemed to be a part of this Agreement and shall not be referred to in connection with the construction or interpretation of this Agreement.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6** **Counterparts.** This Agreement may be executed in several counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one agreement. Any signature page hereto delivered by facsimile machine or by e-mail (including in portable document format (pdf), as a joint photographic experts group (jpg) file, or otherwise) shall be binding to the same extent as an original signature page, with regard to any agreement subject to the terms hereof or any amendment thereto and may be used in lieu of the original signatures for all purposes. Any Party that delivers such a signature page agrees to later deliver an original counterpart to any Party that requests it if required by applicable Law. Signatures may be any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7** **Governing Law; Dispute Resolution**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**This Agreement and any claim, controversy or dispute arising out of or relating to this Agreement shall be construed in accordance with, and governed in all respects by, the internal laws of the State of New York (without giving effect to principles of conflicts of laws). The United Nations Convention on Contracts for the International Sale of Goods does not apply to this Agreement or any Transactional Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**The Parties shall use good faith efforts to resolve any dispute arising out of or relating to this Agreement between designated officers of the Parties within [\*\*\*] of notice of such dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**If the dispute has not been resolved by negotiation as detailed above, then the Parties shall submit the dispute to binding arbitration administered by the International Centre for Dispute Resolution in accordance with its International Arbitration Rules. A single, impartial arbitrator mutually acceptable to the Parties shall conduct the arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**The location of the arbitration shall be in New York, New York. The Parties shall bear the costs of arbitration equally and shall bear their own expenses, including professional fees. The arbitrator's decision shall be binding, final and non-appealable (absent manifest error). Any court having jurisdiction thereof may enter judgment upon the award rendered by the arbitrator. This <u>Section</u> <u>9.7</u>, however, shall not be construed to limit or to preclude either Party from bringing any action in any court of competent jurisdiction for injunctive or other provisional relief as necessary or appropriate. The arbitration proceeding will be confidential and the arbitrator shall issue appropriate protective orders to safeguard each Party's confidential information. Except as required by applicable Laws, including without limitation United States securities laws, no Party shall make (or instruct the arbitrator to make) any public announcement with respect to the proceedings or decision of the arbitrator without prior written consent of the other Party. The existence of any dispute submitted to arbitration, and the award, shall be kept in confidence by the Parties and the arbitrator, except as required in connection with the enforcement of such award or as otherwise required by applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.8** **Successors And Assigns; Parties In Interest**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**This Agreement shall be binding upon Seller and its permitted successors and assigns (if any), Purchaser and its permitted successors and assigns (if any). This Agreement shall inure to the benefit of Seller, Purchaser, the Indemnitees and the respective successors and assigns (if any) of the foregoing.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**No Purchaser Party nor Seller may assign any or all of its rights under this Agreement, in whole or in part, to any other Person without obtaining the consent or approval of the other Party; except that either Party may assign any and all of its rights or obligations under this Agreement to one or more of its wholly owned Subsidiaries or Affiliates without the other Party's prior written consent. No Purchaser Party nor Seller shall be permitted to assign any of its rights or delegate any of its obligations under this Agreement without the other Party's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**Except for the provisions of <u>Section</u> <u>7</u> hereof, none of the provisions of this Agreement is intended to provide any rights or remedies to any Person other than the Parties and their permitted respective successors and assigns (if any). Without limiting the generality of the foregoing, (i) no employee of Seller shall have any rights under this Agreement or under any of the other Transactional Agreements, and (ii) no creditor of Seller shall have any rights under this Agreement or any of the other Transactional Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.9** **Waiver**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**No failure on the part of any Person to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part of any Person in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power, right, privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**No Person shall be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy under this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly executed and delivered on behalf of such Person; and any such waiver shall not be applicable or have any effect except in the specific instance in which it is given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10** **Amendments.** This Agreement may not be amended, modified, altered or supplemented other than by shall mean of a written instrument duly executed and delivered on behalf of Purchaser Parties and Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.11** **Severability.** Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. If the final judgment of a court of competent jurisdiction declares that any term or provision hereof is invalid or unenforceable, the Parties agree that the court making such determination shall have the power to limit the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified. In the event such court does not exercise the power granted to it in the prior sentence, the Parties agree to replace such invalid or unenforceable term or provision with a valid and enforceable term or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable term.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12** **Entire Agreement.** The Transactional Agreements set forth the entire understanding of the Parties relating to the subject matter thereof and supersede all prior agreements and understandings among or between any of the Parties relating to the subject matter thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.13** **Construction**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**For purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and vice versa; the masculine gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and neuter genders; and the neuter gender shall include the masculine and feminine genders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**The Parties agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in the construction or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**As used in this Agreement, the words "include" and "including," and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words "without limitation."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**Except as otherwise indicated, all references in this Agreement to "Sections" and "Exhibits" are intended to refer to Sections of this Agreement and Exhibits to this Agreement.

[*Remainder of Page Intentionally Left Blank*]

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

The Parties have caused this Agreement to be executed and delivered as of the date first written above.

#### PURCHASER PARTIES:<br>Senseonics Holdings, Inc.
By: <u>/s/ Timothy Goodnow</u> 

Name: Timothy T. Goodnow

Title: President & Chief Executive Officer

#### Senseonics, Incorporated
By: <u>/s/ Timothy Goodnow</u> 

Name: Timothy T. Goodnow

Title: President & Chief Executive Officer

#### SELLER:<br>Ascensia Diabetes Holdings AG<br> (two signatories required) <br>By: /s/ Koichiro Sato <br> Name: Kochiro Sato <br> Title: Chief Executive Officer <br>Ascensia Diabetes Holdings AG <br>
By: <u>/s/ Marieke Jansen</u> 

Name: Marieke Jansen

Title: General Counsel

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

#### Exhibit A<br>CERTAIN DEFINITIONS
For purposes of the Agreement (including this **Exhibit A**):

"**Acquisition Transaction**" shall mean any transaction involving: (a) the sale or other disposition of all or any portion of the business or assets of Seller (other than in the Ordinary Course of Business); (b) the issuance, sale or other disposition of (i) any securities of Seller, (ii) any option, call, warrant or right (whether or not immediately exercisable) to acquire any equity interests or other securities of Seller, or (iii) any security, instrument or obligation that is or may become convertible into or exchangeable for any equity interests or other securities of Seller; or (c) any merger, consolidation, business combination, membership interest exchange, reorganization or similar transaction involving Seller which would include all or any portion of the CGM Activities or the Purchased Assets.

Except as otherwise specifically provided in the Agreement, "**Affiliate**" shall mean, with respect to any specified Person, any other Person which, directly or indirectly, controls, is under common control with, or is controlled by, such specified Person, through one or more intermediaries or otherwise. For purposes of this definition, the term "control" shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

"**Agreement**" shall mean this Asset Purchase Agreement to which this **Exhibit A** is attached (including the Disclosure Schedule), as it may be amended from time to time.

"**Amended and Restated Existing Agreement**" shall mean the Amended and Restated Existing Agreement in the form attached hereto as **Exhibit E**.

"**Applicable Closing**" shall mean either the (i) Initial Closing or (ii) if and as applicable, the Italy Closing, the Germany Closing, the Sweden Closing or the Spain Closing, as applicable, in accordance with <u>Section</u> <u>1.10</u><u> </u>(*European CGM Activities*).

"**Applicable Closing Date**" shall mean either the (i) Initial Closing Date or (ii) the Italy Closing Date, the Germany Closing Date, the Sweden Closing Date or the Spain Closing Date, as applicable, in accordance with <u>Section</u> <u>1.10</u> (*European CGM Activities*).

"**Assumed European Liabilities**" shall mean, subject to the limitations set forth in <u>Section</u> <u>1.3(b)</u>, the Assumed Liabilities related to the Specified European Assets.

"**Assumed Initial Liabilities**" shall mean, subject to the limitations set for in <u>Section</u> <u>1.3(b)</u>, the Assumed Liabilities relating to the Specified Initial Assets.

"**Best Efforts**" [\*\*\*].

"**Books and Records**" shall mean all books, ledgers, files, reports, plans, records, manuals and other materials, including books of account, Tax Returns, customer lists, billing records, distribution lists, manuals, safety data, records, files, invoices, correspondence and memoranda, scientific records and files

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

(including invention disclosures), customer and supplier lists, data, specifications, operating history information and inventory records (in any form or medium) of, or maintained for, or primarily relating to, the Purchased Assets and/or the CGM Activities.

"**Business Day**" shall mean a day other than Saturday, Sunday or any other day on which commercial banks located in New York, New York, Bern, Switzerland, or Tokyo, Japan are authorized or obligated by applicable Law to close.

"**CGM Activities**" shall mean Seller's business of marketing, selling and distributing the Products in the Territory.

"**CGM Data**" means all data and information (in any form or medium) collected, generated, received, processed, stored or otherwise used in connection with the operation of the CGM Activities, including [\*\*\*].

"**CGM Employees**" shall mean each employee, independent contractor, advisor director, and officer of Seller and the Seller Affiliates that provide services primarily related to the CGM Activities.

"**CGM IP**" shall mean Intellectual Property that is (a) any Intellectual Property embodied in or necessary to exploit any Transferred Technology or (b) that otherwise is specific to any Purchased Assets or the CGM Activities as currently being conducted, in each case, that is owned by or licensed to Seller or any Seller Affiliate. For the avoidance of doubt, CGM IP does not include: (i) any Purchaser Intellectual Property; (ii) Ascensia Contour or any other Intellectual Property that is not related to the Products, or (iii) any Intellectual Property developed by or on behalf of Seller or Seller Affiliates for its or their respective businesses outside of the CGM Activities.

"**CGM IP Contract**" shall mean any Seller Contract pursuant to which Seller or any Seller Affiliate grants any assignment or license of any CGM IP or Transferred Technology.

"**Closing**" shall mean the Closing or Applicable Closing, as applicable.

"**Closing Date**" shall mean the Closing Date or Applicable Closing Date, as applicable.

"**Code**" shall mean the Internal Revenue Code of 1986, as amended, and any reference to any particular Code section shall be interpreted to include any revision of or successor to that section regardless of how numbered or classified.

"**Confidential Information**" shall mean all information concerning or related to the CGM Activities, the Purchased Assets, the operations, financial condition or prospects of the Seller Group, regardless of the form in which such information appears and whether or not such information has been reduced to a tangible form, and specifically includes (a) all information regarding the officers, directors, managers, employees, equity holders, customers, suppliers, distributors, sales representatives and licensees of the Seller Group, in each case whether past, present or prospective, (b) all inventions, discoveries, trade secrets, specifications, processes, techniques, methods, formulae, ideas and know-how of the Seller Group, (c) all financial statements, audit reports, budgets and business plans or forecasts of the Seller Group and (d) the Transactional Agreements and the Transition Services Agreement, the terms thereof and the transactions contemplated thereby; *provided*, that Confidential Information does not include (i) information

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

which is or becomes generally known to the public other than as a result of a breach of this Agreement or any other confidentiality obligation, and (ii) information which is hereafter lawfully obtained by Purchaser from a source other than the Seller Group (or any of their respective officers, directors, managers, employees, equity holders or agents) asso long as, in the case of information obtained from a third party, such third party was or is not, directly or indirectly, to the knowledge, after reasonable inquiry, of Purchaser, subject to an obligation of confidentiality owed to the Seller Group, or any Affiliate or Related Party of the Seller Group at the time such Confidential Information was or is disclosed to Purchaser.

"**Consent**" shall mean any approval, consent, ratification, permission, waiver or authorization (including any Governmental Authorization).

"**Contract**" shall mean any legally binding written or oral agreement, contract, understanding, arrangement, or other instrument or undertaking of any nature.

"**Copyrights**" shall mean copyrights and registrations and applications therefor, and mask work rights.

"**CRM System**" means the customer relationship management platform(s), modules, configurations, integrations, workflows, custom fields, dashboards, layouts, automations, reports, APIs and related documentation used in the CGM Activities, including any on premises or cloud instances and sandbox or test environments, but excluding any Excluded Assets.

"**Damages**" shall include any loss, damage, injury, Liability, claim, demand, settlement, judgment, award, fine, penalty, Tax, fee (including any reasonable legal fee, expert fee, accounting fee or advisory fee), charge, cost (including any cost of investigation) or out of pocket expense.

"**Disclosure Schedule**" shall mean (a) as of the Initial Closing, the schedule (dated as of the date of the Agreement) delivered to the Purchaser Parties by Seller, a copy of which is attached to the Agreement and incorporated in the Agreement by reference (the "**Initial Disclosure Schedule**") and (b) solely as related to the European CGM Activities and Specified European Assets, the schedule delivered to Purchaser Parties by Seller and as mutually agreed in form and substance between Purchaser Parties and Seller (the "**European Disclosure Schedule**").

"**Encumbrance**" shall mean any lien, pledge, hypothecation, charge, mortgage, security interest, option, claim, encroachment, conditional sales contract, encumbrance, charges, easement or other encumbrance.

"**Entity**" shall mean a corporation, a partnership, an association, a limited liability company, a joint stock company, a joint venture, a proprietorship, a trust, an unincorporated organization, an estate or other similar business entity or organization.

"**Environmental Laws**" shall mean all applicable international, federal, state, or local laws, statutes, ordinances, regulations, policies, guidance, rules, judgments, orders, court decisions or rule of common law, permits, restrictions and licenses, which (a) regulate or relate to the protection or cleanup of the environment; the use, treatment, storage, transportation, handling, disposal or release of Hazardous Materials, the preservation or protection of waterways, groundwater, drinking water, air, wildlife, plants or other natural resources; or the health and safety of persons or property, including protection of the health

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

and safety of employees or (b) impose Liability or responsibility with respect to any of the foregoing, including the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601 et seq.), the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.) and any other Law of similar effect.

"**Equipment**" shall mean the fixed and other tangible personal property, whether owned or leased by the Seller Group relating to the CGM Activities and/or that are used by the Seller Group in connection with the CGM Activities or the Purchased Assets.

"**ERISA**" shall mean the Employee Retirement Income Security Act of 1974, as amended.

"**ERISA Affiliate**" shall mean any entity (whether or not incorporated) which would be treated as a single employer with Seller or any of its subsidiaries under Sections 414(b), (c), (m) or (o) of the Code and the Treasury Regulations promulgated thereunder.

"**European Books and Records**" shall mean (i) any Books and Records maintained for, or relating generally to, the Specified European Assets and/or the European CGM Activities irrespective of whether such Books and Records are comingled with Seller's non-European CGM Activities and (ii) any employee or personnel files or data, in each case, to the extent exclusively relating to any European Transferred Employee.

"**European CGM Activities**" shall mean the CGM Activities of the Seller Group in the European Territory.

"**European CGM Employees**" shall mean the CGM Employees in the European Territory.

"**European CGM IP**" shall mean all CGM IP related to the European CGM Activities and set forth on <u>Schedule 1.1(b)(ii)</u>.

"**European Equipment**" shall mean Equipment used in the European CGM Activities.

"**European Inventory**" shall mean all Inventory in the European Territory.

"**European Other Materials**" shall mean Other Materials which relate to or are used in connection with the European CGM Activities and Specified European Assets.

"**European Regulatory Materials**" shall mean Regulatory Materials which primarily relating to, primarily held for use with, or primarily used in connection with the European CGM Activities and the Specified European Assets.

"**European Territory**" shall mean Italy, Germany, Spain and Sweden.

"**Excluded Taxes**" shall mean (a) Taxes of Seller or any Seller Affiliate, or related to the Excluded Assets or Excluded Liabilities, for any taxable period (for the avoidance of doubt, including (i) Taxes of Seller or any Seller Affiliate that becomes a Liability of Purchaser under any common law doctrine of de facto merger or transferee or successor liability, by operation of Contract or otherwise by operation of Law and (ii) any Taxes of Seller or any Seller Affiliate relating to a Pre-Closing Tax Period the payment of

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

which has been deferred until a Post-Closing Tax Period), (b) Taxes imposed on the Purchased Assets or with respect to the CGM Activities or any Transferred Employees for any Pre-Closing Tax Period, (c) Taxes arising out of any breach of any covenant made by Seller or any Seller Affiliate in this Agreement or any other Transactional Agreement, (d) any Transfer Taxes except as otherwise provided pursuant to <u>Section</u> <u>1.8</u> and the applicable Local Purchase Agreement, and (e) Taxes imposed on Purchaser as a result of any Party's failure to comply with any bulk sales Law and other similar Laws in any applicable jurisdiction in respect of the Transactions to the extent such failure is attributable to Seller or any Seller Affiliate.

"**Fraud**" shall mean, with respect to a Party, "Fraud" means intentional, common law fraud under the Laws of the State of Delaware; *provided*, that under no circumstances shall "**Fraud**" include any fraud based on recklessness or negligence.

"**Germany Assumed Liabilities**" shall mean the Assumed European Liabilities to the extent relating to the CGM Activities conducted in Germany, the Germany Purchased Assets or the Germany Transferred Employees.

"**Germany CGM Activities**" shall mean, collectively, the Germany Purchased Assets, the Germany Assumed Liabilities and the Germany Transferred Employees.

"**Germany Inventory**" shall mean all Inventory located in Germany.

"**Germany Purchase Price**" shall mean the portion of the Purchase Price allocated to Germany CGM Activities and the Germany Inventory value (if any).

"**Germany Purchased Assets**" shall mean the Specified European Assets located in Germany.

"**Germany Transferred Employees**" shall mean, as of any determination time, each European Transferred Employee employed in Germany.

"**Governmental Authorization**" shall mean any: (a) permit, license, certificate, franchise, concession, approval, consent, ratification, permission, clearance, confirmation, endorsement, waiver, certification, designation, rating, registration, qualification or authorization issued, granted, given or otherwise made available by or under the authority of any Governmental Body or pursuant to any applicable Law; or (b) right under any Contract with any Governmental Body.

"**Governmental Body**" shall mean any: (a) nation, principality, state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other government; (c) governmental or quasi governmental authority of any nature (including any governmental division, subdivision, department, agency, bureau, branch, office, commission, council, board, instrumentality, officer, official, representative, organization, unit, body or Entity and any court or other tribunal); (d) multi-national organization or body; or (e) individual, Entity or body exercising, or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, police, military or taxing authority or power of any nature.

"**Hazardous Materials**" shall mean (a) any "hazardous substance," "pollutant," "contaminant," "hazardous waste," "regulated substance," "hazardous chemical" or "toxic chemical" as designated, listed

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

or defined (whether expressly or by reference) in any Environmental Law; (b) any other pollutant, chemical, substance, toxic, infectious, carcinogenic, reactive, corrosive, ignitable or flammable chemical, or chemical compound, or hazardous substance, material or waste, whether solid, liquid or gas, that is subject to regulation, control or remediation under any Environmental Laws, including any quantity of asbestos in any form, urea, formaldehyde, polychlorinated biphenyls (PCBs), radon gas, petroleum, waste oil, crude oil, or any fraction thereof, all forms of natural gas, petroleum products or by-products or derivatives, and (c) any compound, mixture, solution, product or other substance or material that contains any hazardous substance or material referred to in clause (a) and (b) above.

"**IFRS**" shall mean International Financial Reporting Standards applied by Seller on a consistent basis in its Financial Statements.

"**Intellectual Property**" shall mean and include all worldwide intellectual property rights including, without limitation, rights in and to the following: (a) Patents; (b) Marks; (c) Copyrights; (d) all common law and statutory rights in any jurisdiction commonly known as "trade secrets" or that permit the holder of such right to limit the use or disclosure of its know-how and other confidential or proprietary technical, business or other information; and (e) any similar, corresponding or equivalent rights to any of the foregoing.

"**Inventory**" shall mean all Product inventory relating to or to be used in the CGM Activities, including, without limitation, all finished Products, work in process, in process materials, raw materials, packaging, components and all other materials and supplies and parts to be used in connection with the CGM Activities whether held at any location or facility of Seller or any of the Seller Affiliates or in transit to Seller or any of the Seller Affiliates.

"**IRS**" shall mean the U.S. Internal Revenue Service.

"**Italy Assumed Liabilities**" shall mean the Assumed Liabilities to the extent relating to the CGM Activities conducted in Italy, the Italy Purchased Assets or the Italy Transferred Employees.

"**Italy CGM Activities**" shall mean, collectively, the Italy Purchased Assets, the Italy Assumed Liabilities and the Italy Transferred Employees.

"**Italy Inventory**" shall mean all Inventory located in Italy.

"**Italy Purchase Price**" shall mean the portion of the Purchase Price allocated to the Italy CGM Activities and the Italy Inventory value (if any).

"**Italy Purchased Assets**" shall mean the Specified European Assets located in Italy.

"**Italy Transferred Employees**" shall mean, as of any determination time, each European Transferred Employee employed in Italy.

**"Law**" shall mean any federal, state, local, municipal, foreign or other law, statute, legislation, constitution, principle of common law, resolution, ordinance, code, edict, decree, proclamation, treaty, convention, rule, regulation, ruling, directive, pronouncement, requirement, specification, determination,

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

decision, opinion or interpretation, in each case, issued, enacted, adopted, passed, approved, promulgated, made, implemented or otherwise put into effect by or under the authority of any Governmental Body.

"**Liability**" shall mean any debt, obligation, duty or liability of any nature (including any unknown, undisclosed, unmatured, unaccrued, unasserted, contingent, indirect, conditional, implied, vicarious, derivative, joint, several or secondary liability), regardless of whether such debt, obligation, duty or liability would be required to be disclosed on a balance sheet prepared in accordance with generally accepted accounting principles and regardless of whether such debt, obligation, duty or liability is immediately due and payable.

"**Local Purchase Agreements**" shall mean the agreements to be entered into by Seller and/or the other Seller Affiliates and Purchaser (or any of its Affiliates) for purposes of implementing the sale, transfer, conveyance, assignment, delivery and assumption, as applicable, of the Purchased Assets and Assumed Liabilities to Purchaser, by such Seller and/or other Seller Affiliates, as the case may be, in Italy, Germany, Spain and Sweden, (a) in the case of Italy, as shared by the parties as of the date hereof and with such modifications, amendments or supplements, in each case, solely (i) as may be necessary to (A) comply with applicable Laws in Italy, or (B) properly account for the Italy Purchased Assets and Italy Assumed Liabilities that are the subject of the agreement, or (ii) as may be otherwise reasonably agreed to by Purchaser and Seller (such local purchase agreement contemplated by this clause (a), the "**Italy Local Purchase Agreement**"), (b) in the case of Germany, in the draft form as shared by the Parties as of the date hereof and with such modifications, amendments or supplements, in each case, solely (i) as may be necessary to (A) comply with applicable Law in Germany, or (B) properly account for the Germany Purchased Assets and Germany Assumed Liabilities that are the subject of the agreement, or (ii) as may be otherwise reasonably agreed to by Purchaser and Seller (such local purchase agreement contemplated by this clause (b), the "**Germany Local Purchase Agreement**"), (c) in the case of Spain, as shared by the Parties as of the date hereof and with such modifications, amendments or supplements, in each case, solely (i) as may be necessary to (A) comply with applicable Law in Spain, or (B) properly account for the Spain Purchased Assets and Spain Assumed Liabilities that are the subject of the agreement, or (ii) as may be otherwise reasonably agreed to by Purchaser and Seller (such local purchase agreement contemplated by this clause (c), the "**Spain Local Purchase Agreement**") and (d) in the case of the Sweden, as shared by the Parties as of the date hereof and with such modifications, amendments or supplements, in each case, solely (i) as may be necessary to (A) comply with applicable Laws in Sweden, or (B) properly account for the Sweden Purchased Assets and Sweden Assumed Liabilities that are the subject of the agreement, or (ii) as may be otherwise reasonably agreed to by Purchaser and Seller (such local purchase agreement contemplated by this clause (d), the "**Sweden Local Purchase Agreement**").

"**Marks**" shall mean all rights in trademarks, service marks, trade names, service names, brand names, trade dress rights, logos, Internet domain names and corporate names, including and all applications, registrations and renewals thereof.

"**Material Adverse Effect**" shall mean an event, development, change, effect or occurrence that, individually or together with any other event(s), development(s), change(s), effect(s) or occurrence(s), has had or would reasonably be expected to have a material adverse effect on (a) the business, assets, liabilities, financial condition or results of operation of the CGM Activities, taken as a whole, or (b) the ability of Seller or Seller Affiliates to perform their respective obligations under this Agreement and the other Transactional Agreements; *provided*, *however*, that no event, development, change, effect or occurrence resulting from or arising out of any of the following shall be deemed to constitute, or shall be taken into

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

account in determining whether there has been or would reasonably be expected to be, a "Material Adverse Effect": (i) any action required or expressly contemplated to be taken by this Agreement or taken by any Party or any of its Affiliates with the prior written consent or at the written request of the other Party, (ii) macroeconomic factors, political conditions, exchange rates, interest rates, tariffs or tax rates, general financial market and credit related conditions (including any disruption thereof), suspensions of trading, trade disputes, banking moratoriums, limitations on the extension of credit, any "act of God" (including earthquakes, hurricanes, floods, or other natural disasters or weather-related conditions), war (whether or not declared), terrorism or hostilities, (iii) conditions which generally affect the industry in which the CGM Activities operate in, (iv) the failure, in and of itself, of the CGM Activities to meet or achieve any internal or published projections, forecasts, budgets, plans or targets for any period, or changes in market price or credit ratings or other financial or operating metrics (including revenue, margins, profitability, cash flows or cash burn), it being understood that the facts, events or circumstances underlying such failure or changes may be taken into account in determining whether a Material Adverse Effect has occurred to the extent not otherwise excluded by this definition, (v) any epidemic, pandemic or disease outbreak, or (vi) changes in applicable Law, governmental rule, regulation, directive, pronouncement or guideline, or other applicable accounting principles, except in each case, to the extent that any such event, development, change, effect or occurrence has a disproportionate adverse effect on the CGM Activities, in each case, taken as a whole, relative to the adverse effect such event, development, change, effect or occurrence has on other comparable businesses in the industry or markets in which the CGM Activities are operated.

"**Net Book Value**" shall mean the unadjusted original cost, which cost shall not be adjusted for exchange rate changes.

"**Order**" shall mean any: (a) order, judgment, injunction, edict, decree, ruling, pronouncement, determination, decision, opinion, verdict, sentence, subpoena, writ or award issued, made, entered, rendered or otherwise put into effect by or under the authority of any court, administrative agency or other Governmental Body or any arbitrator or arbitration panel; or (b) Contract with any Governmental Body entered into in connection with any Proceeding.

"**Ordinary Course of Business**" shall mean means an action taken by Seller or Seller Affiliate in the ordinary course of conducting the CGM Activities, consistent with past practices (including with respect to nature, scope, timing, volume, frequency and manner), including actions reasonably taken or omitted in good faith to respond to or address business, market, supply chain, customer, workforce, technology, seasonal, competitive, operational, safety, cybersecurity, or other conditions or exigencies, or to comply with, or respond to changes in, applicable Law, Governmental Authorization, or industry standards.

"**Other Materials**" shall mean (a) research and development reports and disclosure memoranda in the possession of Seller or any Seller Affiliates relating to the CGM Activities and/or Products, including study reports, clinical data, clinical trial related documents including consent forms, study contracts, site agreements, manuscripts and in process publications and (b) the guides or reports in Seller's or any Seller Affiliate's possession as of the applicable Closing Date.

"**PASS Accrual Amount**" [\*\*\*]; *provided*, that the Parties may negotiate in good faith to adjust the PASS Accrual Amount to reflect any adjustment resulting from periods after October 31, 2025.

"**PASS Program**" shall mean Seller's Eversense Payment Assistance and Simple Savings Program in the U.S.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

"**Patents**" shall mean: (a) all issued patents, including any extensions, restorations by any existing or future extension or registration mechanism (including patent term adjustments, patent term extensions, supplemental protection certificates or the equivalent thereof), substitutions, confirmations, re-registrations, re-examinations, reissues, patents and patent claims maintained after post grant examination (including *inter partes* review, post grant review or opposition proceeding) and patents of addition; (b) all patent applications, including all provisional applications, substitutions, requests for continuation, continuations, continuations-in-part, divisionals and renewals; and (c) all equivalents of the foregoing in any country of the world.

"**Permitted Encumbrances**" shall mean (a) statutory Encumbrances for current Taxes not yet due and payable or being contested by appropriate proceedings in good faith; (b) Encumbrances incurred or deposits made in the Ordinary Course of Business in connection with workers' compensation, unemployment insurance and other types of social security and that are not material in amount or effect to the CGM Activities; (c) mechanics, carriers', workers', repairers', materialmen's, warehousemen's and similar Encumbrances which have arisen in the Ordinary Course of Business and that are not material in amount or effect on the CGM Activities; (d) restrictions on transfer under applicable securities laws; or (e) any other Encumbrances that do not impair the ownership or use of any of the Purchased Assets or are otherwise de minimis in amount or effect.

"**Person**" shall mean any individual, Entity or Governmental Body.

"**Personal Data**" shall mean any information that (i) relates to an identified or identifiable individual, or that is reasonably capable of being used to identify, contact, or precisely locate an individual, or (ii) that otherwise constitutes "personal information", "sensitive personal information", "personally identifiable information", "personal data" or any similar terms under applicable Laws.

"**Post-Closing Tax Period**" shall mean any taxable period commencing after the Applicable Closing Date and the portion of any Straddle Period (as determined in accordance with <u>Section 8.11</u> (*Tax Matters*)) commencing on the day immediately following the Applicable Closing Date.

"**Pre-Closing Period**" shall mean the period from the date of this Agreement through the earlier of the last Applicable Closing Date or the termination of this Agreement in accordance with its terms.

"**Pre-Closing Tax Period**" shall mean any taxable period ending on or prior to the Applicable Closing Date and the portion of any Straddle Period (as determined in accordance with <u>Section 8.11</u> (*Tax Matters*)) ending on and including the Applicable Closing Date.

"**Privacy Laws**" shall mean all applicable Laws and all binding regulatory guidance concerning (i) the privacy, secrecy, security, protection, sharing, sale, disposal, international transfer or other Processing of Personal Data, (ii) incident reporting or Security Incident notification requirements; (iii) direct marketing, e-mails, communication by text messages or initiation, transmission, monitoring, recording, or receipt of communications (in any format, including without limitation voice, video, email, phone, text messaging, or otherwise); (iv) artificial intelligence involving the Processing of Personal Data, or (v) consumer protection related to the privacy, security, or protection of Personal Data.

"**Privacy Policy**" or "**Privacy Policies**" means each past or present, policy, representation, statement, or notice made by any of the Seller Group, including without limitation, privacy policies

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

published on the Seller Group's online properties, or otherwise made available by the Seller Group to any Person, relating to the Processing of Sensitive Data.

"**Proceeding**" shall mean any action, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative, investigative or appellate proceeding and any informal proceeding), prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental Body or any arbitrator or arbitration panel.

"**Process**" or "**Processing**" means, with respect to data, any operation or set of operations such as collection, recording, organization, structuring, storage, adaptation, enhancement, enrichment or alteration, retrieval, consultation, analysis, use, disclosure by transmission, dissemination or otherwise making available, alignment or combination, restriction, erasure or destruction.

"**Products**" shall mean the following Purchaser proprietary products currently marketed under the brand "Eversense": (a) Eversense® CGM System (90-day product); (b) Eversense® XL CGM System (180-day product outside the US); (c) Eversense XL 2.0; and (d) extended Eversense 365-day product (Rome 1 & Rome 2).

"**Purchased Assets**" shall mean the Specified Initial Assets and Specified European Assets.

"**Purchaser Affiliate**" shall mean the Affiliates of the Purchaser Parties listed on <u>Schedule A</u> under the heading "Purchaser Affiliates".

"**Purchaser Group**" shall mean the Purchaser Parties and the Purchaser Affiliates.

"**Purchaser Indemnitees**" shall mean the following Persons: (a) the Purchaser Parties; (b) the Purchaser Affiliates; (c) the respective Representatives of the Persons referred to in clauses (a) and (b) above; and (d) the respective successors and assigns of the Persons referred to in clauses (a), (b) and (c) above.

"**Purchaser Intellectual Property**" means any Intellectual Property acquired, authored, developed or reduced to practice by Purchaser prior to the Agreement that was made available to Seller pursuant to the Existing Agreement.

"**Reference Balance Sheet Net Book Value**" [\*\*\*].

"**Reference Date**" shall mean January 1, 2021.

"**Registered IP**" shall mean all CGM IP that is registered or filed with any Governmental Body, including all Patents, registered Copyrights, registered mask works, and registered trademarks within the CGM IP and all applications for any of the foregoing.

"**Regulatory Approval**" shall mean all licenses, consents, permits, certificates, filings, registrations, notifications, franchises, concessions, authorizations, approvals, ratifications, permission, clearance, confirmation, endorsement, waiver, designation, rating or qualification issued, granted, given or otherwise made available by or under the authority of any Governmental Body or under the applicable Laws of any Governmental Body.

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**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

"**Regulatory Materials**" shall mean all Regulatory Approvals that are in the possession of or controlled by, or held by or for Seller or any Seller Affiliates and which relate to or are used primarily in connection with the CGM Activities and Purchased Assets, including all regulatory applications, filings, submissions and approvals for sale and marketing of the Products, and all correspondence with Governmental Bodies relating primarily to the CGM Activities, in each case, whether generated, filed or held by or for Seller or any Seller Affiliates.

"**Related Party**" shall mean (a) each individual who is, or who has at any time been, an officer, manager, employee or director of the Seller Group; (b) each member of the family of each of the individuals referred to in clause (a) above; and (c) any Entity (other than Seller) in which any one of the individuals referred to in clauses (a) and (b) above holds or held (or in which more than one of such individuals collectively hold or held), beneficially or otherwise, a controlling interest or a material voting, proprietary or equity interest.

"**Representatives**" shall mean, with respect to any Entity, the officers, directors, managers, employees, agents, attorneys, accountants, advisors, clinical investigators and representatives of such Entity, as applicable.

"**Security Incident**" means (i) any actual or reasonably suspected unauthorized, unlawful, or accidental loss of, damage to, access to, use, alteration, acquisition, encryption, theft, modification, destruction, unavailability, disclosure of, or other Processing of Sensitive Data, or (ii) any damage to, or unauthorized, unlawful, or accidental access to, theft of, or use of, any Seller IT Systems.

"**Seller Affiliate**" shall mean any Affiliate of Seller that owns or has any other rights to any Purchased Assets (or, in the case of Purchased Asset that is a Contract, is a party to or is otherwise bound by) or employs any of the CGM Employees, including the Affiliates of Seller listed on <u>Schedule A</u> under the heading "Seller Affiliates."

"**Seller Contract**" shall mean any Contract relating to the CGM Activities or the Purchased Assets, including any amendment, modification or supplement thereto, (a) to which any member of the Seller Group is a party, (b) by which any member of the Seller Group or any of its respective assets is bound, (c) under which any member of the Seller Group has any obligation related to the CGM Activities or (d) under which any member of the Seller Group has or may acquire any right or interest, relating to the CGM Activities including, without limitation, all CGM IP Contracts and all Contracts pursuant to which Seller or any Seller Affiliate has obtained any assignment, license or other right or interest in, under or to any CGM IP, excluding (i) any Contracts with the Purchaser Group and (ii) Contracts that are not material to the (1) U.S. CGM Activities or (2) European CGM Activities.

"**Sensitive Data**" means all [\*\*\*].

"**Seller Employee Plan**" shall mean any plan, program, policy, practice, contract, agreement or other arrangement providing for terms of employment or engagement, compensation, severance, termination pay, retirement, pension, supplemental retirement, excess benefit, profit sharing, bonus, incentive transaction, retention, deferred compensation, change in control, compensation for post-termination non-compete obligations, vacation, paid time off, performance awards, compensatory equity or equity-related awards, savings, life, health, disability, accident, medical, dental, vision, cafeteria, insurance, flex spending, adoption/dependent/employee assistance, tuition, other health, welfare or fringe benefits or

------

**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

other employee benefits or remuneration of any kind, whether written or unwritten, funded or unfunded, including without limitation, each "employee benefit plan" within the meaning of Section 3(3) of ERISA (whether or not subject to ERISA) which is or has been maintained, contributed to, or required to be contributed to, by Seller for the benefit of CGM Employees or with respect to which Seller has or may have any Liability or obligation, whether actual or contingent and direct or indirect (including on account of any ERISA Affiliates).

"**Seller Group**" shall mean the Seller and the Seller Affiliates.

"**Seller Indemnitees**" shall mean the following Persons: (a) Seller; (b) the Seller Affiliates; (c) the respective Representatives of the Persons referred to in clauses (a) and (b) above; and (d) the respective successors and assigns of the Persons referred to in clauses (a), (b) and (c) above.

"**Seller IT Systems**" shall mean all information technology and computer systems relating to the transmission, storage, maintenance, organization, presentation, generation, processing or analysis of software, code, communications, data or information used in or necessary for the conduct of the CGM Activities.

"**Seller's Knowledge**" shall mean the actual and, after due inquiry, reasonable knowledge of the Seller's directors and officers, and officers of those Seller Affiliates party to the Local Purchase Agreements and the country managers of the Seller's business (CGM Activities and combined business), the Ascensia Care Diabetes leadership team and Serapis workstream leads that are employees of Seller.

"**Spain Assumed Liabilities**" shall mean the Assumed Liabilities to the extent relating to the CGM Activities conducted in Spain, the Spain Purchased Assets or the Spain Transferred Employees.

"**Spain CGM Activities**" shall mean, collectively, the Spain Purchased Assets, the Spain Assumed Liabilities and the Spain Transferred Employees.

"**Spain Inventory**" shall mean the Inventory located in Spain.

"**Spain Purchase Price**" shall mean the portion of the Purchase Price allocated to the Spain CGM Activities and Spain Inventory value (if any).

"**Spain Purchased Assets**" shall mean the Specified European Assets located in Spain.

"**Spain Transferred Employees**" shall mean, as of any determination time, each European Transferred Employee employed in Spain.

"**Straddle Period**" shall mean any taxable period that begins on or before the Applicable Closing Date and ends after the Applicable Closing Date.

"**Sweden Assumed Liabilities**" shall mean the Assumed Liabilities to the extent relating to the CGM Activities conducted in Sweden, the Sweden Purchased Assets or the Sweden Transferred Employees.

------

**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

"**Sweden CGM Activities**" shall mean, collectively, the Sweden Purchased Assets, the Sweden Assumed Liabilities and the Sweden Transferred Employees.

"**Sweden Inventory**" shall mean all Inventory located in Sweden.

"**Sweden Purchase Price**" shall mean the portion of the Purchase Price allocated to the Sweden CGM Activities and Sweden Inventory value (if any).

"**Sweden Purchased Assets**" shall mean the Specified European Assets located in Sweden.

"**Sweden Transferred Employees**" shall mean, as of any determination time, each European Transferred Employee employed in Sweden.

"**Tax**" shall mean any tax (including any income tax, franchise tax, capital gains tax, estimated tax, gross receipts tax, value-added tax, surtax, excise tax, ad valorem tax, transfer tax, stamp tax, sales tax, use tax, property tax, business tax, occupation tax, inventory tax, occupancy tax, withholding tax or payroll tax), levy, escheat, unclaimed property, assessment, tariff, impost, imposition, toll, duty (including any customs duty), deficiency or fee of any kind whatsoever, and any related charge or amount (including any fine, penalty or interest), and any Liability for the payment of any amounts of the type described above in this sentence as a result of being a transferee of or successor to any Person or as a result of any obligation to assume such Tax or to indemnify any other Person for Tax as a result of the application of Treasury Regulation Section 1.1502-6 or any analogous state, local or foreign Law, any Contract, by operation of Law or otherwise.

"**Tax Return**" shall mean any return (including any information return), report, statement, declaration, estimate, schedule, notice, notification, form, election, certificate or other document or information that is, has been or may in the future be filed with or submitted to, or required to be filed with or submitted to, any Governmental Body in connection with the determination, assessment, collection or payment of any Tax or in connection with the administration, implementation or enforcement of or compliance with any Law relating to any Tax, including any attachment thereto, and including any amendment thereof.

"**Technology**" shall mean (a) the media in which any of the items in clause (b)(iii) below is embodied or recorded and (b) the tangible form of technology, know-how and other embodiments of Intellectual Property, including (i) computer software, files, scripts and programs, including source code or object code, and any related documentation; (ii) other tangible embodiments of Copyrights and trade secrets, in each case in whatever form and on whatever media and (iii) inventions (whether or not patentable), invention disclosures, processes, methods, algorithms and formulae, trade secrets, technology, know-how, information, knowledge (including manufacturing knowledge), practices, formulas, instructions, skills, techniques, technical data, designs, drawings, apparatus, results of experiments, test data, including clinical data, analytical and quality control data, manufacturing data and descriptions, market data, devices, assays, procedures (including standard operating procedures), notes of experiments, specifications, compositions of matter, physical, chemical and biological materials, whether in intangible, tangible, written, electronic or other form. For clarity, the term Technology excludes Intellectual Property.

**"Tender Contract"** means the Contracts, framework agreements, purchase order, or other binding arrangement (including any related amendments, extensions, or renewals) that are related to the CGM

------

**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

Activities and entered into by the Seller or any of its Affiliates pursuant to a tender process, public procurement procedure, or competitive bidding process conducted by any Governmental Body or other customer, including any Contract awarded under applicable public procurement laws or regulations, and any Contract that requires compliance with tender specifications, bid terms, or procurement rules.

"**Territory**" shall mean Sweden, Italy, Germany, Spain and the United States.

"**Third Party**" shall mean any Person other than Seller or Purchaser or a Seller Affiliate or Purchaser Affiliate.

"**Transactional Agreements**" shall mean: (a) this Agreement; (b) the Bill of Sale and Assignment Agreement; (c) solely to the extent finalized and executed after Initial Closing Date, the Local Purchase Agreements and (d) all other agreements, instruments and certificates contemplated hereby or thereby to which any Party or any of their respective Affiliates is a party, excluding the Transition Services Agreement and Amended and Restated Existing Agreement.

"**Transactions**" shall mean (a) the execution and delivery of the respective Transactional Agreements by the Parties and their respective Affiliates (as applicable), and (b) all of the transactions contemplated by the respective Transactional Agreements, including: (i) the sale of the Purchased Assets by Seller to Purchaser in accordance with this Agreement and as applicable, the Local Purchase Agreements; and (ii) the performance by Seller and Purchaser Parties of their respective obligations under the Transactional Agreements, and the exercise by Seller and Purchaser Parties of their respective rights under the Transactional Agreements.

"**Transferred Books and Records**" shall mean the U.S. Books and Records and the European Books and Records.

"**Transferred Technology**" means, solely to the extent set forth on <u>Schedule 1.1(a)(i)</u> (with respect to the Transferred Technology in the U.S.) and <u>Schedule 1.1(b)(i)</u> (with respect to any Transferred Technology outside of the U.S.), the tangible forms of Technology owned by Seller or any Seller Affiliate, or, to the extent transferable, licensed by a Third Party to Seller or any Seller Affiliate, that, as of the Agreement Date and continuing through the Applicable Closing, are used exclusively in, and solely for the operation of, the CGM Activities

**"Transition Services Agreement**" shall mean that certain transition services agreement in the form mutually agreed between the Parties to be executed after the Initial Closing and no later than the first Applicable Closing.

"**U.S. Books and Records**" shall mean (i) any Books and Records maintained for, or relating generally to, the Specified Initial Assets and/or the U.S. CGM Activities irrespective of whether such Books and Records are comingled with Seller's non-U.S. CGM Activities and (ii) any employee or personnel files or data, in each case, to the extent exclusively relating to any U.S. Transferred Employee.

"**U.S. CGM Activities**" shall mean the CGM Activities of the Seller Group in the United States.

"**U.S. CGM IP**" shall mean any CGM IP related to the U.S. CGM Activities and set forth on <u>Schedule 1.1(a)(ii)</u>.

------

**CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL*.***

"**U.S. Equipment**" shall mean the Equipment used to perform the U.S. CGM Activities.

"**U.S. Inventory**" shall mean all Inventory in the United States.

"**U.S. Other Materials**" shall mean Other Materials which relate to or are used in connection with the U.S. CGM Activities and Specified Initial Assets.

"**U.S. Regulatory Materials**" shall mean Regulatory Materials which primarily relating to, primarily held for use with, or primarily used in connection with the U.S. CGM Activities and Specified Initial Assets.

------

## Exhibit 4.3

**Exhibit 4.3**

**DESCRIPTION OF SENSEONICS HOLDINGS, INC. COMMON STOCK**

The following description of the common stock of Senseonics Holdings, Inc., or the Company, is a summary and does not purport to be complete. This summary is qualified in its entirety by reference to the provisions of the Delaware General Corporation Law, or the DGCL, and the complete text of the Company's amended and restated certificate of incorporation, or the restated certificate, and amended and restated bylaws, or the bylaws, each as currently in effect, which are incorporated by reference as Exhibits 3.1 and 3.2, respectively, of the Company's Annual Report on Form 10-K, to which this description is also an exhibit. The Company encourages you to read that law and those documents carefully.

**Common Stock**

*Authorized Capital Stock*

The restated certificate authorizes the issuance of up to 70,000,000 shares of common stock, $0.001 par value per share, and 5,000,000 shares of preferred stock, $0.001 par value per share. The Company's board of directors may establish the rights and preferences of the preferred stock from time to time.

*Voting Rights*

Each holder of common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. Under the restated certificate and bylaws, common stockholders do not have cumulative voting rights. Because of this, the holders of a majority of the shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they should so choose.

*Dividends*

Holders of common stock are entitled to receive ratably those dividends, if any, as may be declared from time to time by the board of directors out of legally available funds.

*Liquidation*

In the event of the Company's liquidation, dissolution or winding up, holders of common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders, subject to liquidation preferences of any outstanding shares of preferred stock.

*Rights, Preferences and Privileges*

Holders of common stock have no preemptive, conversion or subscription rights and there are no redemption or sinking fund provisions applicable to the common stock. The rights, preferences and privileges of the holders of common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that the Company may designate in the future.

**Antitakeover Effects of Provisions of Charter Documents and Delaware Law**

*Charter Documents*

The Company's restated certificate and bylaws, each as amended to date, include a number of provisions that may have the effect of deterring hostile takeovers or delaying or preventing changes in control or management of the Company. First, the Company's board of directors is classified into three classes of directors. Under Delaware law, directors of a corporation with a classified board may be removed only for cause unless the corporation's certificate of incorporation provides otherwise. The restated certificate does not provide otherwise. In addition, the restated certificate provides that all stockholder action must be effected at a duly called meeting of stockholders and not by a consent in writing. Further, the bylaws limit who may call special meetings of the stockholders. The restated certificate does not include a provision for cumulative voting for directors. Under cumulative voting, a minority stockholder holding a sufficient percentage of a class of shares may be able to ensure the election of one or more directors. Finally, the bylaws establish procedures, including advance notice procedures, with regard to the nomination of candidates for election as directors and stockholder proposals. These and other provisions of the restated certificate and bylaws and Delaware law could discourage potential acquisition proposals and could delay or prevent a change in control or management of the Company.

------

*Delaware Takeover Statute*

The Company is subject to Section 203 of the DGCL, which regulates acquisitions of some Delaware corporations. Section 203 generally prohibits a publicly held Delaware corporation from engaging in a "business combination" with an "interested stockholder" for a period of three years following the date of the transaction in which the person became an interested stockholder, unless:

● the board of directors of the corporation approved the business combination or the other transaction in which the person became an interested stockholder prior to the date of the business combination or other transaction;

● upon consummation of the transaction that resulted in the person becoming an interested stockholder, the person owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding shares owned by persons who are directors and also officers of the corporation and shares issued under employee stock plans under which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

● on or subsequent to the date the person became an interested stockholder, the board of directors of the corporation approved the business combination and the stockholders of the corporation authorized the business combination at an annual or special meeting of stockholders by the affirmative vote of at least 66-2/3% of the outstanding stock of the corporation not owned by the interested stockholder.

Section 203 of the DGCL defines a "business combination" to include any of the following:

● any merger or consolidation involving the corporation and the interested stockholder;

● any sale, transfer, pledge or other disposition of 10% or more of the corporation's assets or outstanding stock involving the interested stockholder;

● subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any of its stock to the interested stockholder;

● any transaction involving the corporation that has the effect of increasing the proportionate share of its stock owned by the interested stockholder; or

● the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

In general, Section 203 defines an "interested stockholder" as any person who, together with the person's affiliates and associates, owns, or within three years prior to the determination of interested stockholder status did own, 15% or more of a corporation's voting stock.

Section 203 of the DGCL could depress the Company's stock price and delay, discourage or prohibit transactions not approved in advance by the board of directors, such as takeover attempts that might otherwise involve the payment to the Company's stockholders of a premium over the market price of its common stock.

**Transfer Agent and Registrar**

The transfer agent and registrar for the Company's common stock is Computershare Trust Company, N.A. The transfer agent's address is 150 Royall Street, Canton, Massachusetts 02021.

**Listing on the Nasdaq Global Select Market**

The Company's common stock is listed on the Nasdaq Global Select Market under the symbol "SENS."

------

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the registration statements (Nos. 333-210586, 333-224827, 333-231334, 333-232486, 333-265241, and 333-289309) on Form S-8 and (Nos. 333-233656, 333-237937, 333-248659, 333-252939, 333-271932, 333-269177, 333-283509, and 333-289306) on Form S-3 of our report dated March 2, 2026, with respect to the consolidated financial statements of Senseonics Holdings, Inc. and subsidiaries.

The audit report covering the December 31, 2025 consolidated financial statements contains an explanatory paragraph that states that the Company has determined that it may not meet its debt covenants as early as the third quarter of 2026. Further, the Company will require additional liquidity to continue its operations over the next twelve months. Therefore, the Company has concluded that substantial doubt exists about its ability to continue as a going concern for the one-year period following the date the consolidated financial statements are issued. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty

/s/ KPMG, LLP

Baltimore, Maryland

March 2, 2026

------

## Exhibit 31.1

#### EXHIBIT 31.1

#### CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER<br>PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Timothy T. Goodnow, Ph.D., certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K of Senseonics Holdings, Inc. (the "registrant");

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 2, 2026

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy T. Goodnow, Ph.D. |
| Timothy T. Goodnow, Ph.D. |
| President & Chief Executive Officer |
| (principal executive officer) |

---

------

## Exhibit 31.2

#### EXHIBIT 31.2

#### CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER<br>PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Rick Sullivan, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K of Senseonics Holdings, Inc. (the "registrant");

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 2, 2026

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Rick Sullivan |
| Rick Sullivan |
| Chief Financial Officer |
| (principal financial officer) |

---

------

## Exhibit 32.1

#### EXHIBIT 32.1

#### CERTIFICATIONS OF<br>PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER<br>PURSUANT TO 18 U.S.C. SECTION 1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §1350), Timothy T. Goodnow, Ph.D., Chief Executive Officer of Senseonics Holdings, Inc. (the "Company"), and Rick Sullivan, Chief Financial Officer of the Company, each hereby certifies that, to the best of his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report"), to which this Certification is attached as Exhibit 32.1, fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Annual Report fairly presents, in all material respects, the financial condition of the Company as of the end of the period covered by the Annual Report and results of operations of the Company for the periods covered by the Annual Report.

**In Witness Whereof,** the undersigned have set their hands hereto as of the 2nd day of March, 2026.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy T. Goodnow, Ph.D. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Rick Sullivan |
| Timothy T. Goodnow, Ph.D. | Rick Sullivan |
| President & Chief Executive Officer | Chief Financial Officer |

---

\* This certification accompanies the Form 10-K to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-K), irrespective of any general incorporation language contained in such filing.

------

## Exhibit 10.13

#### Exhibit 10.13

#### EXECUTIVE EMPLOYMENT AGREEMENT
This **EXECUTIVE EMPLOYMENT AGREEMENT** (this ***"Agreement"),*** is entered into as of the 3rd day of September, 2025 (the ***"Effective Date"),*** by and between, **Brian Hansen** (the ***"Executive")*** and **SENSEONICS, INCORPORATED *("Company").***

**WHEREAS,** the Company wishes to employ Executive as the Chief Commercial Officer of the Company, and the Executive wishes to serve in such capacity for the Company and be its employee, subject to the terms and conditions of this Agreement;

**WHEREAS,** the Company and the Executive entered into a Consulting Agreement dated as of January 18, 2024 (the "***Consulting Agreement***");

**WHEREAS,** the Company and the Executive desire to set forth their respective rights and obligations in this Agreement; and

**WHEREAS,** this Agreement has been duly approved and its execution has been duly authorized by the Company's Board of Directors.

**Now, THEREFORE,** in consideration of the mutual promises and covenants contained herein, the parties agree to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Employment by the Company.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1Position.** Subject to the terms set forth herein, the Company agrees to employ Executive in the position of Chief Commercial Officer, and Executive hereby accepts such continued employment on the terms and conditions set forth in this Agreement. Executive will commence work in this position on January 1, 2026, or such earlier date as mutually agreed by the Parties (the "**Start Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2Duties.** Executive will report to the Chief Executive Officer ("CEO") performing such duties as are normally associated with his then current position and such duties as are assigned to him from time to time, subject to the oversight and direction of the CEO. During the term of Executive's employment with the Company, Executive will work on a full-time basis for the Company and will devote Executive's best efforts and a substantially all of Executive's business time and attention to the business of the Company. Executive shall perform Executive's duties under this Agreement principally on a remote basis and Executive shall make such frequent business trips to the Corporate Headquarters, U.S. and European offices and staff locations, potential customers and other such places as may be necessary or advisable for the efficient operations of the Company and performance of his duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3Company Policies and Benefits.** The employment relationship between the parties shall also be subject to the Company's personnel and other policies and procedures as they may be interpreted, adopted, revised or deleted from time to time in the Company's sole discretion. Executive will be eligible to participate in the Company's benefit plans on the same basis as similarly situated employees in effect from time to time during his employment. All matters of eligibility for coverage or benefits under any benefit plan shall be determined in accordance with the provisions of such plan. The Company reserves the right to change, alter, or terminate any benefit plan in its sole discretion. Notwithstanding the foregoing, in the event that the terms of this Agreement differ from or are in conflict with the Company's general employment policies or practices, this Agreement shall control.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4Consulting Termination.** The Consulting Agreement shall terminate upon the commencement of employment on the Start Date and the transition from the Consulting Agreement to the employment hereunder shall constitute continuous service under the terms of existing equity awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Compensation.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***2.1*Salary.** Executive shall receive for Executive's services to be rendered under this Agreement a current base salary of $505,000 (Five hundred and five thousand U.S. dollars) on an annualized basis, subject to review and adjustment by the Company in its sole discretion, payable subject to standard federal and state payroll withholding requirements in accordance with the Company's standard payroll practices ***("Base Salary").***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2Bonus.** During the period Executive is employed with the Company, Executive shall be eligible to earn for Executive's services to be rendered under this Agreement a discretionary annual cash bonus of up to 50% of Base Salary ***("Target Amount"),*** subject to review and adjustment by the Company in its sole discretion, payable subject to standard federal and state payroll withholding requirements. Whether or not Executive earns any bonus and its amount will be dependent upon (a) Executive's continuous performance of services to the Company through the date any bonus is paid; and (b) the actual achievement by Executive and the Company of the applicable performance targets and goals set by the Board of Directors of the Company ("***Board***"). The annual period over which performance is measured for purposes of this bonus is January 1 through December

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. The Board will determine in its sole discretion the extent to which Executive and the Company have achieved the performance goals upon which the bonus is based and the amount of the bonus, which could be above or below the Target Amount (and may be zero). Any bonus shall be subject to the terms of any applicable incentive compensation plan adopted by the Company. Any bonus, if earned, will be paid to Executive within the time period set forth in the incentive compensation plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3Expense Reimbursement.** The Company will reimburse Executive for reasonable business expenses in accordance with the Company's standard expense reimbursement policy, as the same may be modified by the Company from time to time, including for travel and lodging on trips to Company headquarters. The Company shall reimburse Executive for all customary and appropriate business-related expenses actually incurred and documented in accordance with Company policy, as in effect from time to time. For the avoidance of doubt, to the extent that any reimbursements payable to Executive are subject to the provisions of Section 409A of the Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)any such reimbursements will be paid no later than December 31 of the year following the year in which the expense was incurred,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the amount of expenses reimbursed in one year will not affect the amount eligible for reimbursement in any subsequent year, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4Equity**. Executive will be eligible for equity grants at the discretion of the Compensation Committee in accordance with the Company's long term incentive practices for executive officers. Executive received equity grants in January 2024 and May 2025 in conjunction with the Consulting Agreement and Executive's ongoing work. Executive's employment under this Agreement shall constitute continuous service for the purpose of the continued vesting of such grants under the Senseonics 2015 Equity Incentive Plan and a Change in Status enabling Executive to remain an Eligible Recipient for continuing to assist in the commercialization of Eversense for

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continued vesting of grants made under the 2023 Commercial Equity Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Other Agreements and Indemnity.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1Employee Agreement on Ideas, Inventions and Confidential Information.** As a condition of employment, Executive agrees to execute and abide by an Employee Agreement on Ideas, Inventions and Confidential Information attached as Exhibit A ***("Proprietary Information Agreement'),*** which may be amended by the parties from time to time without regard to this Agreement. The Proprietary Information Agreement contains provisions that are intended by the parties to survive and do survive termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2Indemnification and Insurance.** Company shall enter into the Company's standard form indemnification agreement attached as Exhibit B (the "Indemnification Agreement") with Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.Outside Activities during Employment.** Except with the prior written consent of the CEO, Executive will not, while employed by the Company, undertake or engage in any other employment, occupation or business enterprise that would interfere with Executive's responsibilities and the performance of Executive's duties hereunder except for (i) reasonable time devoted to volunteer services for or on behalf of such religious, educational, non-profit and/or other charitable organization as Executive may wish to serve, (ii) reasonable time devoted to activities in the non-profit and business communities consistent with Executive's duties; and (iii) such other activities as may be specifically approved by the Board or the Chief Executive Officer. Company acknowledges the Board activities engaged in by Executive listed on Exhibit C is reasonable. For clarity, the restrictions of this Section shall not preclude Executive (x) from owning less than one percent (1%) of the total outstanding shares of any publicly traded company, or (y) from employment or service in any capacity with Affiliates of the Company. As used in this Agreement, "Affiliates" means an entity under common management or control with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.No Conflict with Existing Obligations.** Executive represents that Executive's performance of all the terms of this Agreement does not and will not breach any agreement or obligation of any kind made prior to Executive's employment by the Company, including agreements or obligations Executive may have with prior employers or entities for which Executive has provided services. Executive has not entered into, and Executive agrees that Executive will not enter into, any agreement or obligation, either written or oral, in conflict herewith. As a part of this obligation, Executive agrees that he is subject to a duty to maintain the confidentiality of confidential or proprietary information that he has received from third parties, to hold such information in the

strictest confidence, and not to disclose it to any person or entity or use it in carrying out Executive's work for the Company, consistent with any agreements between Executive and such third party of third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.Termination of Employment.** The parties acknowledge that Executive's employment relationship with the Company is at-will, meaning either the Company or Executive may terminate Executive's employment at any time, with or without cause or advanced notice. The provisions in this Section govern the amount of compensation, if any, to be provided to Executive

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upon termination of employment and do not alter this at-will status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1**Termination by the Company without Cause or by the Executive for Good Reason (except in a Change of Control).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company shall have the right to terminate Executive's employment with the Company pursuant to this **Section 6.1** at any time, in accordance with **Section 6.6**, without "Cause" (as defined in **Section 6.3(b)** below) by giving notice as described in **Section 8.1** of this Agreement. A termination pursuant to **Section 6.5** below is not a termination without "Cause" for purposes of receiving the benefits described in this **Section 6.1**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If the Company terminates Executive's employment at any time without Cause or Executive terminates his employment with the Company for Good Reason and provided that such termination

constitutes a "separation from service" (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a "***Separation from Service***"), then Executive shall be entitled to receive the Accrued Obligations (defined below). If Executive complies with the obligations in **Section 6.1(c)** below, Executive shall also be eligible to receive the following severance benefits: (1) an

amount equal to Executive's then current Base Salary for nine (9) months, less all applicable withholdings and deductions ("***Severance***"), paid in equal installments beginning on the Company's first regularly scheduled payroll date following the Release Effective Date (as defined in **Section 6.1(c)** below), with the remaining installments occurring on the Company's regularly scheduled payroll dates thereafter and (2) a pro rata portion of Executive's Target Amount for the performance year in which Executive's termination occurs, with such pro rata portion calculated based upon the number of days that Executive was employed during such performance year divided by the total number of days in such performance year, payable as a lump sum payment on the Release Effective Date (as defined below) ("***Bonus Severance***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Executive will be paid all of the Accrued Obligations on the Company's first payroll date after

Executive's date of termination from employment or earlier if required by law. Executive shall receive the Severance and Bonus Severance pursuant to **Section 6.1(b)** of this Agreement and the payments pursuant to **Section 6.1(d)** if: (i) by the 60th day following the date of Executive's Separation from Service, he has signed and delivered to the Company a separation agreement containing an effective, general release of claims in favor of the Company and its affiliates and representatives, in a form acceptable to the Company (the "***Release***"), which cannot be revoked in whole or part by such date (the date that the Release can no

longer be revoked is referred to as the "***Release Effective Date***"); and (ii) if he holds any other positions with the Company, he resigns such position(s) to be effective no later than the date of Executive's termination date (or such other date as requested by the Board), including, if requested, Executive's seat on the Board of the Company, its parent, or any subsidiaries; (iii) he returns all Company property; (iv) he complies with his post-termination obligations under this Agreement and the Proprietary Information Agreement; and (v) he complies with the terms of the Release, including without limitation any non-disparagement and confidentiality provisions contained in Release. To the extent that any severance payments are deferred compensation under Section 409A of the Code, and are not otherwise exempt from the application of Section 409A, then, if the period during which Executive may consider and sign the Release spans two calendar years, the payment of Severance will not be made or begin until the later calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If Executive timely elects continued coverage under COBRA for himself and his covered

dependents under the Company's group health plans following such termination, then the Company shall pay the COBRA premiums necessary to continue Executive's and his covered dependents' health insurance coverage in effect for himself (and his covered dependents) on the termination date until the earliest of: (i) twelve (12) months following the termination date (the "***COBRA Severance Period***"); (ii) the date when Executive becomes eligible for substantially equivalent health insurance coverage in connection with new

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employment or self-employment; or (iii) the date Executive ceases to be eligible for COBRA continuation coverage for any reason, including plan termination (such period from the termination date through the earlier of (i)-(iii), (the "***COBRA Payment Period***"). Notwithstanding the foregoing, if at any time the

Company determines that its payment of COBRA premiums on Executive's behalf would result in a violation of applicable law (including, but not limited to, the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of paying COBRA premiums pursuant to this Section, the Company shall pay Executive on the last day of each remaining month of the COBRA Payment Period, a fully taxable cash payment equal to the COBRA premium for such month, subject to applicable tax withholding (such amount, the "***Special Severance Payment***"), such Special Severance Payment to be made without regard to the COBRA period prior to the end of the COBRA Payment Period. Nothing in this Agreement shall deprive Executive of his rights under COBRA or ERISA for benefits under plans and policies arising under his employment by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)For purposes of this Agreement, "***Accrued Obligations***" are (i) Executive's accrued but unpaid salary through the date of termination, (ii) any unreimbursed business expenses incurred by Executive payable in accordance with the Company's standard expense reimbursement policies, and (iii) benefits owed to Executive under any qualified retirement plan or health and welfare benefit plan in which Executive was a participant in accordance with applicable law and the provisions of such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Severance and Bonus Severance provided to Executive pursuant to this **Section 6.1** are in lieu of, and not in addition to, any benefits to which Executive may otherwise be entitled under any Company severance plan, policy or program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Any damages caused by the termination of Executive's employment without Cause would be difficult to ascertain; therefore, the Severance and Bonus Severance for which Executive is eligible pursuant to **Section 6.1(b)** above in exchange for the Release is agreed to by the parties as liquidated damages, to serve as full compensation, and not a penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)For purposes of this Agreement, "*Good Reason*" shall mean the occurrence of any of the following events without Executive's consent: (i) a material reduction in Executive's Base Salary of at least 10%; (ii) a material breach of this Agreement by the Company; (iii) any material diminution in Executive's duties, responsibilities, authority, reporting structure, status or title, unless approved in writing by Executive; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) requirement that Executive move his residence, without Executive's consent, for Executive's employment, *provided, however,* that, any such termination by Executive shall only be deemed for Good Reason pursuant to this definition if: (1) Executive gives the Company written notice of his intent to terminate for Good Reason within thirty (30) days following the first occurrence of the condition(s) that he believes constitute(s) Good Reason, which notice shall describe such condition(s); (2) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice (the "***Cure Period***"); and (3) Executive voluntarily terminates his employment within thirty (30) days following the end of the Cure Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Any damages caused by the termination of Executive's employment without Cause or for Good Reason would be difficult to ascertain; therefore, the payments for which Executive is eligible pursuant to this **Section 6.1** above in exchange for the Release is agreed to by the parties as liquidated damages, to serve as full compensation, and not a penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2**Termination by the Company without Cause or for Good Reason Following a Change in Control.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)If Executive's employment by the Company is terminated by the Company without "Cause" (and not due to Disability or death) or by Executive for Good Reason

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coincident with a Change in Control (as defined below), then the Company shall pay or provide Executive with the Accrued Obligations and all of the benefits described in Section 6.1 above, subject to compliance with Section 6.1(c); *provided that:* (i) in lieu of the bonus described in Section 6.1(b), the Company shall pay Executive the larger of a pro-rata amount as described in Section 6.1(b) or 125% of the Target Amount for the performance year in which Executive's termination occurs, payable as a lump sum payment on the Release Effective Date; (ii) the severance payable under Section 6.1(b) shall be calculated based on one year rather than nine months, and (iii) if Executive's employment by the Company or any successor entity is terminated by the Company or the successor entity without "Cause" (and not due to Disability or death) within twelve (12) months following a Change in Control, 100% of the then unvested portion of the equity awards granted to Executive shall become fully vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)For purposes of this Agreement, a "***Change in Control***" means (a) any consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, other than any such consolidation, merger or reorganization in which the stockholders of the Company immediately prior to such consolidation, merger or reorganization, continue to hold a majority of the voting power of the surviving entity (or, if the surviving entity is a wholly owned subsidiary, its parent) immediately after such consolidation, merger or reorganization; (b) any transaction or series of related transactions to which the Company is a party in which in excess of fifty percent (50%) of the Company's voting power is transferred; provided that the foregoing shall not include any transaction or series of transactions principally for bona fide equity financing purposes in which cash is received by the Company or indebtedness of the Company is cancelled or converted or a combination thereof; or (c) a sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company. In the event of any interpretation of this definition, the Board of Directors of the Company, upon advice of legal counsel, shall have final and conclusive authority, so long as such authority is exercised in good faith. Notwithstanding the foregoing, a Change in Control will only be deemed to occur for purposes of this Agreement it is also meets the definition used for purposes of Treasury Regulation Section 1.409A-3(a)(5), that is, as defined under Treasury Regulation Section 1.409A-3(i)(5).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Any damages caused by the termination of Executive's employment without Cause or for Good Reason following a Change in Control would be difficult to ascertain; therefore, the payments for which Executive is eligible pursuant to Section 6.2 above in exchange for the Release is agreed to by the parties as liquidated damages, to serve as full compensation, and not a penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3** **Termination by the Company for Cause.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**The Company shall have the right to terminate Executive's employment with the Company at any time, in accordance with **Section 6.6**, for Cause by giving notice as described in **Section 8.1** of this Agreement. In the event Executive's employment is terminated at any time for Cause, Executive will not receive Severance, a Severance Bonus or any other severance compensation or benefits, except that, pursuant to the Company's standard payroll policies, the Company shall pay to Executive the Accrued Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** ***"Cause"*** for termination shall mean that the Company has determined in its sole discretion that Executive has engaged in any of the following: (i) a material breach of any covenant or condition under this Agreement or any other agreement between the parties; (ii) any act constituting dishonesty, fraud, immoral or disreputable conduct; (iii) any conduct which constitutes a felony under applicable law; (iv) violation of any written Company policy or any act of misconduct; (v) refusal to follow or implement a clear and reasonable directive of the Company; (vi) negligence or incompetence in the performance of Executive's duties or failure to perform such duties in a manner

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satisfactory to the Company after the expiration of ten (10) days without cure after written notice of such failure; or (vii) breach of fiduciary duty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4** **Resignation by Executive**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Executive may resign from Executive's employment with the Company at any time, in accordance with **Section 6.6**, by giving notice as described in **Section 8.1**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In the event Executive resigns from Executive's employment with the Company for any reason, Executive will not receive Severance, a Severance Bonus or any other severance compensation or benefits, except that, pursuant to the Company's standard payroll policies, the Company shall pay to Executive the Accrued Obligations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5** **Termination by Virtue of Death or Disability of Executive**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)In the event of Executive's death while employed pursuant to this Agreement, all obligations of the parties hereunder shall terminate immediately, in accordance with **Section 6.6**, and the Company shall, pursuant to the Company's standard payroll policies, pay to Executive's legal representatives all Accrued Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Subject to applicable state and federal law, the Company shall at all times have the right, upon written notice to Executive, and in accordance with **Section 6.6**, to terminate this Agreement based on Executive's Disability. Termination by the Company of Executive's employment based on "***Disability***" shall mean termination because Executive is unable due to a physical or mental condition to perform the essential functions of his position with or without reasonable accommodation for 180 days in the aggregate during any twelve (12) month period or based on the written certification by two licensed physicians of the likely continuation of such condition for such period. This definition shall be interpreted and applied consistent with the Americans with Disabilities Act, the Family and Medical Leave Act, and other applicable law. In the event Executive's employment is terminated based on Executive's Disability, Executive will not receive Severance, a Severance Bonus or any other severance compensation or benefit, except that, pursuant to the Company's standard payroll policies, the Company shall pay to Executive the Accrued Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6** **Notice; Effective Date of Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Termination of Executive's employment pursuant to this Agreement shall be effective on the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)**immediately after the Company gives notice to Executive of Executive's termination, with or without Cause, unless pursuant to Section 6.3(b)(vi) in which case ten (10) days after notice if not cured or unless the Company specifies a later date, in which case, termination shall be effective as of such later date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** immediately upon the Executive's death;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)**ten (10) days after the Company gives notice to Executive of Executive's termination on account of Executive's Disability, unless the Company specifies a later date, in which case, termination shall be effective as of such later date, *provided* that Executive has not returned to the full-time performance of Executive's duties prior to such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)** ten (10) days after the Executive gives written notice to the Company of

Executive's resignation, *provided* that the Company may set a termination date at any time between the date

7. ------

of notice and the date of resignation, in which case the Executive's resignation shall be effective as of such other date. Executive will receive compensation through any required notice period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)**for a termination for Good Reason, immediately upon Executive's full satisfaction of the requirements of Section 6.1(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In the event notice of a termination under subsections (a)(i), (iii), (iv) and (v) is given orally, at the other party's request, the party giving notice must provide written confirmation of such notice within five (5) business days of the request in compliance with the requirement of **Section 8.1** below. In the event of a termination for Cause or Good Reason, written confirmation shall specify the subsection(s) of the definition of Cause or Good Reason relied on to support the decision to terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7** **Cooperation with Company After Termination of Employment**.

Following termination of Executive's employment for any reason, Executive agrees to cooperate fully with the Company in connection with its actual or contemplated defense, prosecution, or investigation of any claims or demands by or against third parties, or other matters arising from events, acts, or failures to act that occurred during the period of Executive's employment by the Company. Such cooperation includes, without limitation, making Executive available to the Company upon reasonable notice, without subpoena, to provide complete, truthful and accurate information in witness interviews, depositions and trial testimony. In addition, for six months after Executive's employment with the Company ends for any reason, Executive agrees to cooperate fully with the Company in all matters relating to the transition of Executive's work and responsibilities on behalf of the Company, including, but not limited to, any present, prior or subsequent relationships and the orderly transfer of any such work and institutional knowledge to such other persons as may be designated by the Company. The Company will reimburse Executive for reasonable out-of-pocket expenses Executive incurs in connection with any such cooperation (excluding forgone wages, salary, or other compensation) and will make reasonable efforts to

accommodate Executive's scheduling needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.8** **Application of Section 409A.** It is intended that all of the severance payments payable under this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (collectively, "***Section 409A***") provided under Treasury Regulations Sections 1.409A-1(b)(4) and 1.409A-1(b)(9), and this Agreement will be construed in a manner that complies with Section 409A. If not so exempt, this Agreement (and any definitions hereunder) will be construed in a manner that complies with Section 409A, and incorporates by reference all required definitions and payment terms. No severance

payments will be made under this Agreement unless Executive's termination of employment constitutes a "separation from service" (as defined under Treasury Regulation Section 1.409A-1(h)). For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii)), Executive's right to receive any installment payments under this Agreement (whether severance payments or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment. If the Company determines that the severance benefits provided under this Agreement constitutes "deferred compensation" under Section 409A and if Executive is a "specified employee" of the Company, as such term is defined in Section 409A(a)(2)(B)(i) of the Code at the time of Executive's Separation from Service, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the Severance will be delayed as follows: on the earlier to occur of (a) the date that is six months and one day after Executive's Separation from Service, and (b) the

date of Executive's death (such earlier date, the "***Delayed Initial Payment Date***"), the Company will (i) pay to Executive a lump sum amount equal to the sum of the severance benefits that Executive would otherwise have received through the Delayed Initial Payment Date if the commencement of the payment of the

8. ------

severance benefits had not been delayed pursuant to this **Section 6.8** and (ii) commence paying the balance of the severance benefits in accordance with the applicable payment schedule set forth in **Section 6**. No interest shall be due on any amounts deferred pursuant to this **Section 6.8**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.9** **Board Service.** Except as otherwise agreed by the Parties and except in the case of a Change of Control under Section 6.2, if Executive or Company terminate Executive's employment for any reason and the Board requests Executive to resign from Executive's seat on the Senseonics Holdings, Inc. Board, Executive continuing to serve on the Board following the effective date of termination,

notwithstanding such request to resign, shall not constitute "continuous service" under Executive's equity awards from the Company and any such equity grants shall not continue to vest. For the avoidance of doubt, this Section 6.9 does not apply to acceleration or vesting of awards in the event of a termination under Section 6.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Section 280G.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1**Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution by the Company to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Code and the applicable regulations thereunder (the "***Aggregate Payments***"), would be subject to the excise tax imposed by Section 4999 of the Code, then the Aggregate Payments shall be reduced (but not below zero) so that the sum of all of the Aggregate Payments shall be $1.00 less than the amount at which Executive becomes subject to the excise tax imposed by Section 4999 of the Code; provided that such reduction shall only occur if it would result in Executive receiving a higher After Tax Amount (as defined below) than Executive would receive if the Aggregate Payments were not subject to such reduction. In such event, the Aggregate Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Aggregate Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing Aggregate Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2**For purposes of this **Section 7**, the "***After Tax Amount***" means the amount of the Aggregate Payments less all federal, state, and local income, excise and employment taxes imposed on

Executive as a result of Executive's receipt of the Aggregate Payments. For purposes of determining the After Tax Amount, Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in each applicable state and locality, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **General Provisions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1Notices.** Any notices required hereunder to be in writing shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by electronic mail or confirmed facsimile if sent during normal business hours of the recipient, and if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company at its primary office location and to Executive at 44

9. ------

Rae Avenue, Needham, MA 02492 or Company-issued email address with a copy to KLHorton@comcast.net, or at such other address as the Company or Executive may designate by ten

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) days advance written notice to the other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2Severability.** Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never been contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3Survival.** Provisions of this Agreement which by their terms must survive the termination of this Agreement in order to effectuate the intent of the parties will survive any such termination, whether by expiration of the term, termination of Executive's employment, or otherwise, for such period as may be appropriate under the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4Waiver.** If either party should waive any breach of any provisions of this Agreement, it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5Complete Agreement.** This Agreement, <u>together</u><u> </u><u>with</u><u> </u><u>the</u><u> </u><u>Proprietary</u><u> </u><u>Rights</u> <u>Agreement,</u> constitutes the entire agreement between Executive and the Company with regard to the subject matter hereof. This Agreement is the complete, final, and exclusive embodiment of their agreement with regard to this subject matter and supersedes any prior oral discussions or written communications and agreements, including the Prior Agreement. This Agreement is entered into without reliance on any promise or representation other than those expressly contained herein, and it cannot be modified or amended except in writing signed by Executive and an authorized officer of

the Company. The parties have entered into a separate Proprietary Information Agreement, a separate Indemnification Agreement and have or may enter into separate agreements related to equity. These separate agreements govern other aspects of the relationship between the parties, have or may have provisions that survive termination of Executive's employment under this Agreement, may be amended or superseded by the parties without regard to this Agreement and are enforceable according to their terms without regard to the enforcement provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.6Counterparts.** This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement. The parties agree that facsimile and scanned image copies of signatures will suffice as original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.7Headings.** The headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.8Successors and Assigns.** The Company shall assign this Agreement and its rights and obligations hereunder in whole, but not in part, to any Company or other entity with or into which the Company may hereafter merge or consolidate or to which the Company may transfer all or substantially all of its assets, if in any such case said Company or other entity shall by operation of law or expressly in writing assume all obligations of the Company hereunder as fully as if it had been originally made a party hereto, but may not otherwise assign this Agreement or its rights and obligations hereunder. Executive may not assign or transfer this Agreement or any rights or

10. ------

obligations hereunder, other than to his estate upon his death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.9Choice of Law.** All questions concerning the construction, validity and interpretation of this Agreement will be governed by the laws of the State of Maryland.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.10Dispute Resolution.** The parties recognize that litigation in federal or state courts or before federal or state administrative agencies of disputes arising out of the Executive's employment with the Company or out of this Agreement, or the Executive's termination of employment or termination of this Agreement, may not be in the best interests of either the Executive or the Company, and may result in unnecessary costs, delays, complexities, and uncertainty. The parties agree that any dispute between the parties arising out of or relating to the negotiation, execution, performance or termination of this Agreement or the Executive's employment, including, but not limited to, any claim arising out of this Agreement, claims under Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, Section 1981 of the Civil Rights Act of 1966, as amended, Massachusetts Antidiscrimination Act, Mass. Gen. Laws ch.151B, the Massachusetts Wage Act, Mass. Gen. Laws ch. 149, the Family Medical Leave Act, the Executive Retirement Income Security Act, and any other similar federal, state or local law, statute, regulation, or any common law doctrine, whether that dispute arises during or after employment, shall be settled by binding arbitration in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association; *provided however,* that this dispute resolution provision shall not apply to any separate agreements between the parties that do not themselves specify arbitration as an exclusive remedy. The location for the arbitration shall be the Washington, DC metropolitan area. Any award made by such panel shall be final, binding and conclusive on the parties for all purposes, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. The arbitrators' fees and expenses and all administrative fees and expenses associated with the filing of the arbitration shall be borne by the Company; *provided however,* that at the Executive's option, Executive may voluntarily pay up to one-half the costs and fees. The parties acknowledge and agree that their obligations to arbitrate under this Section survive the termination of this Agreement and continue after the termination of the employment relationship between Executive and the Company. The parties each further agree that the arbitration provisions of this Agreement shall provide each party with its **exclusive remedy,** and each party expressly waives any right it might have to seek redress in any other forum, except as otherwise expressly provided in this Agreement. By election arbitration as the means for final settlement of all claims, **the parties hereby waive their respective rights to, and agree not to, sue each other in any action in a Federal, State or local court with respect to such claims, but may seek to enforce in court an arbitration award rendered pursuant to this Agreement. The parties specifically agree to waive their respective rights to a trial by jury, and further agree that no demand, request or motion will be made for trial by jury.**

**[SIGNATURES TO FOLLOW ON NEXT PAGE]**

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

---

| | |
|:---|:---|
| **SENSEONICS, INCORPORATED** | **SENSEONICS, INCORPORATED** |
| By: | /s/ Tim Goodnow |
|  | Tim Goodnow, Ph.D. |
|  | President & Chief Executive Officer |
| **EXECUTIVE** | **EXECUTIVE** |
| /s/ Brian Hansen | /s/ Brian Hansen |
| Brian Hansen | Brian Hansen |

---

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## Exhibit 10.33

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

***Exhibit 10.33***

**Amended and Restated Collaboration and Commercialization Agreement**

**This Amended and Restated Collaboration and Commercialization Agreement**

(the "**Agreement**") is made as of December 31, 2025 (the "**Amended Effective Date**") by and between Senseonics Incorporated, a Delaware corporation ("**Senseonics**"), with its principal office and place of business at 20451 Seneca Meadows Parkway • Germantown, MD 20876-7005, and Ascensia Diabetes Care Holdings AG, a Swiss company ("**Ascensia**" or "**ADC**") with its principal office and place of business at Peter Merian-Strasse 90, 4052 Basel, Switzerland (each of Senseonics and Ascensia, a "**Party**" and together, the ***"*Parties*"***). The Parties acknowledge and agree that, effective as of the Amended Effective Date, this Agreement amends, restates, supersedes and replaces in its entirety that certain Collaboration and Commercialization Agreement, dated August 9, 2020, between Senseonics and ADC, as amended and supplemented to date (the "**Prior Agreement**"), and all rights and obligations of the Parties under the Prior Agreement are hereby terminated as of the Amended Effective Date and shall not survive the Amended Effective Date notwithstanding anything to the contrary in the Prior Agreement apart from Sections 3.2, 4.1-4.3 (solely to the extent payments accrued but remain unpaid as of the effective date of termination), 4.5, 6, 7.4, 7.5, and 8 which shall survive the expiration or termination of the Prior Agreement, and this Agreement constitutes the sole and entire agreement of the Parties with respect to its subject matter after the Amended Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **C ERTAIN D EFINITIONS .** 

&nbsp;&nbsp;&nbsp;&nbsp;**1.1"Affiliate"** means, with respect to any Party, another entity or person which directly or indirectly, is controlled by, or controls, or is under common control with, such Party, where, for purposes of this definition, the term "control" means ownership, directly or indirectly, of 50% or more of the shares of stock entitled to vote for the election of directors, in the case of a corporation, or 50% or more of the equity interests in the case of any other type of legal entity, status as a general partner in any partnership, or any other arrangement whereby a Party controls or has the right to control the Board of Directors or equivalent governing body of a corporation or other entity, or if such level of ownership or control is prohibited in any country, any entity owning or controlling at the maximum control or ownership right permitted in the country where such entity exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** "**Apps**" means the mobile applications offered by Senseonics in connection with the Products.

&nbsp;&nbsp;&nbsp;&nbsp;**1.3**"**Asset Purchase Agreement**" means that certain Master Asset Purchase Agreement, dated as of the date hereof, among Senseonics, Senseonics Holdings, Inc., and Ascensia.

&nbsp;&nbsp;&nbsp;&nbsp;**1.4"Confidential Information"** means any confidential or proprietary information of a Party disclosed to the other Party or generated in the course of this Agreement, including inventions, know-how, works of authorship, software, data, software tools, designs, schematics, plans or other information relating to any work in process, future development, engineering, manufacturing, marketing or business plan, or financial or personnel matters relating to either Party, its present or future products, sales, suppliers, customers,

------

***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

employees, investors or business.

&nbsp;&nbsp;&nbsp;&nbsp;**1.5**"**Country Closing**" means for each applicable country the Italy Closing, the German Closing, the Sweden Closing and the Spain Closing as defined in the Asset Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**1.6**"**Data**" means the data collected by Senseonics through customers' use of the Products and the Apps, as set forth in that certain Data Processing Agreement and Joint Controllership Agreement currently in effect between the Parties (collectively, the "**Data Agreements**")

------

***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7** **"Field"** means implantable sensors for continuously monitoring glucose in humans with diabetes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8** **"First Close"** shall mean the Initial Closing as that phrase is defined in the Asset Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**1.9**"**First Closing Territory**" means after the First Close under the Asset Purchase Agreement, worldwide, except for (a) the United States of America and its territories; (b) countries in which rights to distribute certain Products in the Field have been granted, as of the Prior Effective Date, by Senseonics to Roche Diabetes Care GmbH and Roche Diagnostics International AG (together, "**Roche**") pursuant to that certain Distribution Agreement, dated May 24, 2016 between Senseonics and Roche, as amended ("**Roche Agreement**"); (c) the Scandinavian countries in which rights to distribute certain Products in the Field have been granted, as of the Prior Effective Date, by Senseonics to Rubin Medical AB ("**Rubin**") pursuant to that certain Distribution Agreement, dated September 14, 2015, between Senseonics and Rubin Medical AB ("**Rubin Medical Agreement**"); and (d) the country in which rights to distribute the Products in the Field have been granted, as of the Prior Effective Date, by Senseonics to DYN Diagnostics pursuant to that certain Distribution Agreement, dated March 22, 2019, between Senseonics and DYN Diagnostics ("**DYN**" and such agreement, the "**DYN Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;**1.10"Intellectual Property Rights"** means any and all rights in and to discoveries, concepts, ideas, technical information, developments, specifications, methods, drawings, designs, flow charts, diagrams, models, formulae, procedures, processes, schematics, specifications, algorithms, apparatus, inventions, ideas, know-how, materials, techniques, methodologies, modifications, improvements, works of authorship, data (whether or not protectable under patent, copyright, trade secrecy or similar laws), patents, utility models, registered and unregistered designs, including mask works, copyrights, trade secrets, design history, manufacturing documentation, and any other form of protection afforded by law to inventions, models, designs, works of authorship, databases or technical information, and applications and registrations with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;**1.11**"**Pre-Closing Territory**" means worldwide, except for (a) countries in which rights to distribute certain Products in the Field have been granted, as of the Prior Effective Date, by Senseonics to Roche pursuant to the Roche Agreement; (b) the Scandinavian countries in which rights to distribute certain Products in the Field have been granted, as of the Prior Effective Date, by Senseonics to Rubin pursuant to the Rubin Medical Agreement; and (c) the country in which rights to distribute the Products in the Field have been granted, as of the Prior Effective Date, by Senseonics to DYN pursuant to the DYN Agreement (collectively, (a) through (c) referred to as the "**Pre-Closing Excluded Territories**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.12** **"Prior Effective Date"** means August 9, 2020.

&nbsp;&nbsp;&nbsp;&nbsp;**1.13"Products"** means the following Senseonics proprietary products currently marketed under the brand "Eversense", for which Senseonics has received regulatory approval for use in the Field during the Term, including any improved versions thereof for which Senseonics receives regulatory approval during the Term: (a) Eversense® CGM System (90-day product) ("**90-day Product**"); (b) Eversense® XL CGM System (180-day product outside the US) ("**Eversense XL**"); (c) Eversense XL 2.0 ("**180-day Product**"); and (d) extended Eversense 365-day product [\*\*\*] ("**365-day Product**"), as each is more fully described in **Exhibit B**.

&nbsp;&nbsp;&nbsp;&nbsp;**1.14"Quality Agreement**" means that certain Quality Agreement, dated June 21, 2021, between the Parties and which sets forth, among other things, the quality control and quality assurance terms for the Products.

&nbsp;&nbsp;&nbsp;&nbsp;**1.15"Specifications"** means, with respect to each Product, the specifications for such Product, on file with Senseonics and with any amendments thereto to be provided to Ascensia promptly after such amendments.

------

***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

&nbsp;&nbsp;&nbsp;&nbsp;**1.16**"**Tender Agreement**" shall mean any agreement between Ascensia and a third party for the Supply of Products in the Field in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.17** **"Territory"** means the Pre-Closing Territory and the First Closing Territory, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;**1.18"Third Party"** means any entity or person other than Senseonics, Ascensia and their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;**1.19"Transition Services Agreement"** means that certain Transition Services Agreement, to be entered into between the Parties prior to first applicable Country Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **P ERFORMANCE O BLIGATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;**2.1Collaboration.** The Parties intend to collaborate and work together as further set out in this Agreement to provide the Eversense® system to patients in the applicable Territory. As further set out in this Agreement, Senseonics will be responsible for Product development and clinical work and have all responsibility for manufacturing, and Ascensia will have primary responsibility, pursuant to the Transition Services Agreement, for sales and marketing of the Products in the applicable Territory. In exercising these roles, the Parties will collaborate and use commercially reasonable efforts to fulfill its respective obligations hereunder. The Parties acknowledge that certain costs incurred by Ascensia are being paid by Senseonics under the Transition Services Agreement as set forth in that Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2** **Purchase Orders.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)Purchase Orders**. Ascensia shall make all purchases hereunder by submitting to Senseonics monthly firm purchase orders (each, a "**Purchase Order**"), specifying the types of Product ordered, quantities of Product, information on addresses to which the Products should be shipped, and any other categories of information as mutually agreed by the Parties. Senseonics shall accept or reject each Purchase Order in writing within [\*\*\*] after its receipt of such Purchase Order; <u>provided</u>, <u>however</u>, that no Purchase Order that is within the Forecast may be rejected by Senseonics if such rejection would reasonably be expected to result in Ascensia failing to satisfy its obligations under the Transition Services Agreement.

Each Purchase Order accepted by Senseonics shall be deemed an "**Accepted Order**". Any Purchase Order that is not accepted or rejected in writing within [\*\*\*] after Senseonics' receipt of such Purchase Order shall be deemed accepted by Senseonics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Omitted.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)Delivery and Shipping Terms**. Accepted Orders will be binding on both Parties. The Purchase Order will specify a single delivery date for such order to be delivered, but will in no event be a date sooner than [\*\*\*] from the Purchase Order date. Senseonics is responsible for transportation costs of shipping the Products to the packaging facilities in the European Union. If Senseonics is unable to deliver the Products of an Accepted Order on the scheduled delivery date, and Ascensia requests in writing (including by e-mail) that Senseonics deliver such Products on an expedited basis, Senseonics will use expedited delivery services, at its own costs, to deliver the Products. Ascensia or its designee shall be the importer of record and will be responsible for obtaining all distribution licenses for the Products in the Territory. The Parties shall reasonably cooperate with, and assist each other in, all aspects of the shipment, importation, and delivery process. Detailed shipping terms, including Incoterms, are set forth in Exhibit K.

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)Separate Contracts**. Each Accepted Order will constitute a separate contract for the supply of Ordered Product on the terms of this Agreement (and excluding all other terms and conditions including any set out or referred to in any Accepted Order), and the terms of this Agreement shall be incorporated by reference in all Accepted Orders. In the event of a conflict between an Accepted Order and the terms of this Agreement, the terms of this Agreement shall govern unless the Parties' intent to alter the terms of this Agreement is expressly set forth in such Accepted Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3** **Supply**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)Performance.** Senseonics shall manufacture and supply the Products in such quantities of the Products as ordered by Ascensia pursuant to one (1) or more Accepted Orders in accordance with this Agreement, in exchange for the Consideration set forth in Section 4 below. Senseonics shall perform its activities in accordance with all applicable laws and regulations, this Agreement, and prevailing professional standards and practices. Ascensia shall provide, upon request and only for use in accordance with the terms of this Agreement, Senseonics with any information that Senseonics reasonably requires to perform its obligations under this Agreement. The Parties further agree to comply with their obligations under the Quality Agreement. In the event of a conflict between the terms of the Quality Agreement and the terms of this Agreement, the provisions of this Agreement shall govern; provided, however, that the Quality Agreement shall govern with respect to quality and regulatory issues relating to the Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)Rolling Forecast**. On or before the [\*\*\*] of each calendar month during the Term of this Agreement, Ascensia shall provide Senseonics with a rolling monthly forecast of a good faith estimate of the quantity of Products that Ascensia plans to order during the [\*\*\*] period of time or, if the Parties are approaching the end of the Term, during the **[\*\*\*]**, commencing with the following calendar month ("**Forecast**"). Each Forecast shall be made in good faith for budget and capacity planning purposes only and shall be non-binding on the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Omitted.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**Shelf Life**. All Products that are sensors shall be supplied by Senseonics to Ascensia on a monthly basis in accordance with the applicable Accepted Orders and have a shelf life of no less than [\*\*\*] if delivered to the United States and to the European Union; provided, however, if Ascensia provides final kitting and/or packaging, such Products shall be delivered to Ascensia's kitting and labelling facility, or designated subcontractor, in the European Union with [\*\*\*] of shelf life. The Parties acknowledge and agree that, unless otherwise agreed in writing by Ascensia, Senseonics will perform or have performed final kitting and packaging. Further, the Parties acknowledge and agree that there may be exceptional cases where certain tender obligations require a greater shelf life for Products. In such cases, the Parties will discuss and determine in good faith how to meet such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)Failure to Supply.** Except in the event of a force majeure (as set forth in Section 9.12), if Senseonics is unable to materially fulfill its obligations to supply Products in accordance with the terms of this Agreement and the Accepted Orders, then upon written request by Ascensia, Senseonics shall, to the extent needed to cover such failure to supply, (a) supply the undelivered Products or a portion thereof using an expedited transportation mode, at Senseonics' expense; (b) supply the undelivered Products or a portion thereof at a future date; and/or (c) provide Ascensia access to Senseonics' suppliers of the relevant Products such that Ascensia may discuss with such suppliers the terms under which such suppliers may provide Ascensia the undelivered Products or portion thereof, and purchase the undelivered Products or portion thereof from such third-party suppliers, which terms will be communicated to Senseonics in writing prior to any such purchase from a third-party supplier. To the extent such failure to supply results in a backorder to Ascensia's customers, such forecast will be adjusted reasonably to account for such impact . If such failure to supply continues for a period of [\*\*\*], then upon Ascensia's written request,

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

Senseonics shall conduct a technology transfer for the manufacturing of the Products to Ascensia, its Affiliate or a Third Party designated by Ascensia, at Ascensia's discretion, in a manner and in a time period sufficient to satisfy Ascensia's then-current demand for the Products, all subject to an arrangement determined to compensate Senseonics its margin on such Products that are subject to the technology transfer. The Parties shall discuss in good faith whether such replacement supply chain is more efficient or reliable on a going-forward basis, and based on such discussions, Senseonics will determine whether to continue with such replacement supply chain, or to the extent appropriate, revert to its original supply chain provided that the conditions causing the supply failure have been removed or otherwise resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4** **Distribution** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)Appointment and Grant of Rights to Ascensia**. Subject to the terms and conditions of this Agreement, Senseonics hereby appoints Ascensia as Senseonics' exclusive distributor of the Products in the Field in the Pre-Closing Territory until the First Close. Subject to the terms and conditions of this Agreement, Senseonics hereby appoints Ascensia as Senseonics' non-exclusive distributor of the Products in the Field in the First Closing Territory until this Agreement is terminated or expires; provided, however, that after a given Country Closing Ascensia's right to distribute Products in the Field in a country for which a Country Closing has occurred shall be limited to Tender Agreements in effect as of the time of the Country Closing that have not been assigned to Senseonics until the time upon which such Tender Agreement has been assigned to Senseonics. Subject to the payment obligations herein, as well as any limitations, obligations, and exceptions set forth in this Agreement, Senseonics hereby grants to Ascensia (i) the non-exclusive, non-transferable right (but not obligation) to purchase all of Ascensia's requirements of the Products in the applicable Territory from Senseonics, (ii) the non-exclusive, non-transferable, right to market, offer to sell, sell, and distribute the Products (including any software embedded therein, solely as and to the extent embedded in the Products and in no event on a standalone basis) to any customer in the applicable Territory solely for use by such customer in the applicable Territory in the Field, subject to each such customer's execution of an agreement with Ascensia, which will include, at a minimum, customary representations, warranties, covenants and indemnities and the terms of the Product warranty in accordance with **Exhibit E**, and (iii) a non-exclusive, non-transferable, revocable, right and license to make available the Apps or provide a link to download the Apps through a third-party app store to customers in connection with the Products for use in the Field in the applicable Territory, subject to each such customer's agreement to Senseonics' standard end user agreement and provided, that after a given Country Closing Ascensia's rights as set forth above in a country for which a Country Closing has occurred shall be limited to exercising those rights solely to fulfill its obligations under Tender Agreements in effect as of the time of the Country Closing that have not been assigned to Senseonics until the Tender Agreement has been assigned to Senseonics. Ascensia hereby accepts such appointment and agrees to use commercially reasonable efforts to distribute and sell the Products in the Field in the applicable Territory, during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)Senseonics Rights.** Notwithstanding Section 2.4(a), Senseonics shall have the right, but not obligation, to market, offer to sell, sell, and distribute Products in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)Pricing.** The current minimum price for the sale of the Products by Ascensia to customers as of the Amended Effective Date shall continue for the Term of this Agreement, unless either [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)Restrictions.** Ascensia shall not intentionally or knowingly advertise, market, promote, sell, deliver, tender, solicit or fill orders for Product to or for customers outside the applicable Territory, within or outside the Field. Ascensia shall make reasonable efforts to share leads and other prospective

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

customer information for such customers outside the applicable Territory and/or Field with Senseonics from time to time. Except as otherwise expressly permitted under this Agreement, Ascensia shall not itself, or permit others to, modify, adapt, alter, reverse engineer or disassemble Product or create derivative works from the Product. Ascensia shall not remove, alter, or obscure in any way any proprietary rights notices of Senseonics (including patent markings, copyrights, trademarks or other attributions to Senseonics) or any batch, lot or registration numbers on or within any Product, sample or documentation provided by Senseonics to Ascensia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Omitted.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)**Promotional Material.** Senseonics will have the right to review and approve, key advertising, sales information, literature and other promotional materials pertaining to Products ("**Promotional Material**") developed after the Amended Effective Date prior to use or dissemination by Ascensia in the Territory. Senseonics shall complete its review of such Promotional Material within [\*\*\*] after receipt. Ascensia shall be solely responsible, at its expense, for developing, producing, translating (as necessary) and maintaining an adequate inventory of current Promotional Material approved by Senseonics. Any such Promotional Materials will conform to Senseonics' branding guidelines as reasonably provided or otherwise made available by Senseonics. Notwithstanding the foregoing, any Promotional Materials that are in use by Ascensia in the Territory as of the Amended Effective Date and have been previously approved by Senseonics (if and to the extent such approval was required under the Prior Agreement) may continue to be used by Ascensia without further review or approval by Senseonics, so long as they remain accurate, compliant with applicable law and consistent with this Agreement. Senseonics will provide to Ascensia at regular intervals a copy of Senseonics' then-current available printed and online marketing materials in English applicable to the Products and Apps for use in the Field, at no cost to Ascensia. Senseonics will reasonably cooperate with Ascensia on the promotion and marketing of the Products in the Territory in accordance with any mutually agreed marketing plans. Subject to the terms of this Agreement, Senseonics hereby grants to Ascensia a non-exclusive, non-sublicensable (except to Affiliates engaged in the promotion of Products at the direction of Ascensia), non-transferable license under copyrights used by Senseonics in the Territory with respect to the promotion of the Products, including registrations and applications for registration thereof, to use, copy, display and distribute the Promotional Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)Warranties.** The Products shall be covered by Senseonics' warranty set forth in **Exhibit E**, and any breach by Senseonics of such warranty shall be handled in accordance with the terms of **Exhibit**

**E**. For purposes of clarity, warranty Products shall be shipped in accordance with the distribution channel established for the specific country. Senseonics shall be responsible for carrier costs, shipping and handling charges in connection with shipping of replacement Products. Ascensia shall not make or publish any representations, warranties, statements or guarantees concerning Products, including concerning the features, performance or functionality of the Product, that are inconsistent with, or that alter, change, enlarge, limit, or otherwise modify any statements, representations or warranties contained in **Exhibit E** or the approved Promotional Material, unless authorized in writing in advance by Senseonics. Any warranty given or representation or statement made by Ascensia with respect to Product that is inconsistent with, or that alters, changes, enlarges, limits, or otherwise modifies any statements, representations or warranties contained in **Exhibit E** or the approved Promotional Material or that is not authorized in writing in advance by Senseonics ("**Unauthorized Warranty**") shall be void and unenforceable against Senseonics, and Ascensia shall indemnify and hold Senseonics harmless from any liability, loss, damage, expense or claim (including court costs and attorneys' fees) of any nature arising from or related to any such Unauthorized Warranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** **Omitted.** 

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)Packaging and Labeling.** Unless otherwise agreed to in writing between the Parties, Senseonics shall be responsible for packaging the Products in accordance with the Specifications therefor, and all outer packaging used for transportation of the Products shall be of sufficient quality and type to protect such Products from reasonably anticipated risks during shipment from the origin to Ascensia's initial designated destination. Senseonics shall be responsible for all labeling of the Products in accordance with Senseonics' standard company practices and for the control of such labels and label modification processes and documentation, provided that Ascensia shall be responsible for providing Senseonics all Territory-specific labeling specifications for the Product necessary for sale of the Product in the Territory. Such responsibilities of the Parties shall be carried out in full compliance with applicable laws; provided that if Ascensia performs any labeling in connection with any Ascensia product or application related to the Product or Apps, then in no event shall Senseonics assume any liability for such labeling performed solely by Ascensia. Labeling will be conducted under Article 16 (1(a)) of the European Union Medical Device Regulation with such responsibilities set forth in the Quality Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)Training.** Senseonics will provide to Ascensia, at no additional cost to Ascensia, initial and ongoing Product and program training support as reasonably necessary, as determined by Ascensia, and as mutually agreed by the Parties (including with respect to the scope, format, and timing) to enable Ascensia's training staff to provide training to its sales, clinical, and marketing personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)Support.** Ascensia agrees to provide support to customers in the First Closing Territory as set forth in the Transition Services Agreement. Notwithstanding anything to the contrary in this Agreement, Ascensia shall have no obligation or duty to provide any services or support other than those expressly provided in the Transition Services Agreement and this Agreement shall in no way expand the scope or nature of the services provided by Ascensia under the Transition Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5** **Omitted.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6** **Omitted.** 

&nbsp;&nbsp;&nbsp;&nbsp;**2.7Regulatory Compliance**. In performing its obligations hereunder each Party shall comply with all applicable federal, state, municipal, or local laws, rules, regulations, orders, decisions or permits of any relevant jurisdiction relating to matters including, but not limited to foreign corrupt practices, employment, safety, health, environmental standards and requirements, non-discrimination, equal employment opportunity, import/export and privacy protection. For greater certainty, in performing its obligations hereunder, Ascensia shall not make any payments to a government official. Ascensia shall not be responsible for regulatory approvals for the Products. Without limiting any of the foregoing, at all times during the Term, Ascensia shall comply with all requirements of all regulatory approvals applicable to the distribution of the Products. During the Term, Ascensia shall keep Senseonics informed of the regulatory requirements in each country in the Territory and shall promptly notify Senseonics in writing, and provide a copy to Senseonics, of any correspondence, reports, or other communication with respect to Product submitted to or received from any regulatory authority in the Territory. Each Party shall immediately notify the other Party in writing if such Party suffers the loss or impairment of any license, permit or other authorization required for Ascensia to import the Products into the Territory or to distribute, market, promote or sell the Products in any country in the Territory or to otherwise perform obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **O WNERSHIP** 

&nbsp;&nbsp;&nbsp;&nbsp;**3.1Use of Trademarks.** Subject to the terms of this Agreement, Senseonics hereby grants to Ascensia a non-exclusive, non-sublicensable (except to Affiliates engaged in the promotion of Products at the direction

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

of Ascensia), non-transferable authorization to use the name and trademark, SENSEONICS, and other

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

trademarks, service marks, trade dress, and/or logos which are owned by, or licensed or assigned to, Senseonics ("**Senseonics Marks**") as agreed upon in advance by Senseonics, solely to promote Products in a manner consistent with this Agreement and solely in accordance with Senseonics' branding guidelines. Except as set forth in the preceding sentence, Ascensia shall not have, assert or acquire any right, title or interest in or to any Senseonics Marks or any goodwill related thereto. To the extent Ascensia requires use of a Senseonics Mark after the Amended Effective Date that has not already been approved by Senseonics, Ascensia shall provide Senseonics with a sample of each proposed use of Senseonics Marks and shall obtain Senseonics' approval of such sample prior its use. Ascensia shall use the Senseonics Marks in the form provided and in conformance with any trademark usage policies provided, from time to time, by Senseonics to Ascensia; provided that Ascensia may affix secondary labels or indices on the Products it distributes to identify it as the distributors of the Products so long as such labels do not cover and are not inconsistent with the Senseonics Marks. Ascensia shall not adopt, use, or attempt to register any trademarks or trade names that are confusingly similar to the Senseonics Marks or use the Senseonics Marks in such a way as to create combination marks with the Senseonics Marks.

&nbsp;&nbsp;&nbsp;&nbsp;**3.2Ownership of Intellectual Property Rights.** As between the Parties, subject to the terms of this Agreement, each Party will own all intellectual property that is owned or controlled by such Party prior to the Prior Effective Date or that is developed outside of the scope of this Agreement without the use of the Confidential Information of the other Party, as well as any and all modifications, enhancements, and improvements thereto, regardless of the inventorship thereof ("**Background IP**"). Without limiting the foregoing, any inventions first made or conceived of on or after the Prior Effective Date of the Agreement that are directly related to the Products or Apps, or the components or uses thereof, and any Intellectual Property Rights therein (collectively, "**Product IP**"), shall be owned solely by Senseonics, regardless of the inventorship thereof. In connection with the foregoing, Ascensia hereby assigns and agrees to assign all right, title, and interest in and to such Product IP to Senseonics. With respect to any other inventions first made or conceived of on or after the Prior Effective Date solely by Ascensia, solely by Senseonics, or jointly by the Parties, after the Prior Effective Date of the Agreement that are not Product IP, and are not improvements to either Party's Background IP, ownership of such inventions, and any Intellectual Property Rights therein, shall be determined in accordance with U.S. rules of intellectual property ownership or inventorship. For clarity, any inventions so determined to be owned jointly by Senseonics and Ascensia will not require a duty of accounting to the other Party or obligation to obtain consent from the other Party for the licensing or exploitation thereof. The Parties shall negotiate in good faith and enter into a separate agreement relating to any such jointly owned intellectual property, which agreement will set forth the Parties' understandings with respect to prosecution, enforcement, and such other matters agreed to by the Parties with respect to such jointly owned intellectual property.

&nbsp;&nbsp;&nbsp;&nbsp;**3.3Data.** Subject to payment of applicable fees, costs and amounts to be agreed for the work required to make the Data available, Senseonics agrees to grant to Ascensia certain rights in and to the Data, as set forth in the Data Agreements currently in effect between the Parties, solely to the extent allowable by applicable laws, including the U.S. Health Insurance Portability and Accountability Act, the E.U. GDPR, and other applicable laws and regulations. The Parties will enter into any necessary data processing agreements to enable such sharing of Data. The Parties further acknowledge and agree to enter into any new data processing agreements as required after the First Close and/or a given Country Closing to ensure the contemplated data exchanges under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**3.4Reservation of Rights.** Except for the rights expressly provided in this Agreement, no other rights are granted by Senseonics to Ascensia.

&nbsp;&nbsp;&nbsp;&nbsp;**3.5Notification**. Each Party shall promptly notify the other Party if it becomes aware of any claim alleging infringement, misappropriation or misuse of the Senseonics Marks, copyrights, patents or other proprietary rights applicable to the Products by any Third Party.

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **P AYMENTS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** **Consideration.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.1**The consideration for Products to be paid to Senseonics shall be determined by the revenue sharing formula (if applicable) and the other provisions set forth on **Exhibit F-1** (the "**Consideration**"). Ascensia shall be responsible for paying Senseonics all amounts set forth on **Exhibit F-1**, based on a tiered global revenue sharing structure of Net Sales. For purposes of this Agreement, "**Net Sales**" means gross invoiced sales for the Products, less normal and customary sales deductions and allowances as calculated under Generally Accepted Accounting Principles in the US ("**US GAAP**"), as adjusted below. Normal and customary sales deductions and allowances deducted to determine Net Sales for purposes of determining consideration shall include the following: prompt pay cash discounts, returns and allowances, customer (strategic fulfillment partner) rebates, distributor allowances, and chargebacks for government or statutory payments.

&nbsp;&nbsp;&nbsp;&nbsp;4.2**Payments.** Ascensia will be responsible for invoicing customers and collecting fees for the Products from customers. Within [\*\*\*] following the end of each month during the Term and within [\*\*\*] following the expiration or earlier termination of this Agreement, Ascensia will transmit to Senseonics a statement reporting the fees due to Senseonics for the immediately-preceding calendar month in accordance with Section 4.4. Each such statement shall be transmitted together with remittance of the applicable fees due pursuant to this Section 4. All amounts payable under this Section 4 shall be paid in Euros by check or by wire transfer to a bank account specified in writing by Senseonics. Within [\*\*\*] following each quarter during the Term prior to January 1, 2026, the amounts owed to Senseonics during such quarter that were initially determined and based **Exhibit F-1** will be adjusted upwards or downwards, as the case may be, based on credits from pricing Products below the current minimum price , warranty claims (as allowed by **Exhibit E**), chargebacks, rebates, and operational costs and charges between the Parties, such as kitting or other provision of additional products or services from one Party to the other (such difference being the "**True-Up Amount**"). Ascensia shall provide Senseonics with a "True Up" statement that sets forth the calculation of the True Up Amount for such quarter (the "**True Up Statement**"). Senseonics shall have the right to dispute any such True Up Statement and related True Up Amount, and the Parties shall exchange information in good faith and attempt to promptly resolve any such dispute using good faith negotiations prior to resolution of such dispute in accordance with the dispute resolution provisions in Section 9.11. Such True Up Statement shall be transmitted together with remittance of the True Up Amount set forth in the True Up Statement. For the avoidance of doubt there shall be no True-Up Amounts calculated for 2026 and any subsequent year during the Term and the last True-Up shall settle out such charges (e.g., overpayments or underpayments) for fiscal year 2025.

&nbsp;&nbsp;&nbsp;&nbsp;**4.3Taxes.** Unless otherwise provided on the Purchase Order, in addition to the amounts stated above, Senseonics shall pay costs for all sales, use, value-added or excise taxes, assessments or other charges, including customs duties and fees attributable to the sale of the Product. In the event Ascensia pays any such fees, taxes, or charges, Ascensia shall promptly invoice Senseonics for the same pursuant to the Transition Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4** **Omitted.** 

&nbsp;&nbsp;&nbsp;&nbsp;4.5**Records**. Ascensia shall keep complete and accurate business and accounting records pertaining to inventories, sales and uses of Product in sufficient detail to permit Senseonics to confirm Ascensia's compliance with this Agreement and to allow Ascensia to meet its reporting requirements hereunder. Senseonics shall keep complete and accurate business and accounting records pertaining to manufacture, sale, and shipping of Products to Ascensia under this Agreement, to allow Senseonics to meet its reporting requirements hereunder. Each Party shall maintain their respective records for a period of at least [\*\*\*] after

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

the calendar year to which they apply, or such longer period as is set out in the Quality Agreement. Each Party shall provide the other Party with copies of such records within [\*\*\*] of any written request by the other Party. Without limiting the foregoing, Ascensia shall also keep records of Products shipped, quantity, serial or lot number and consignee for all Product sales for purposes of traceability and recall. Ascensia shall maintain these records for a period of at least [\*\*\*] from the date of delivery of Product to Ascensia, or such longer period as is set out in the Quality Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6** **Inspection**. Inspections shall be provided for in the Quality Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **R EPRESENTATIONS A ND W ARRANTIES ; C OVENANTS** 

&nbsp;&nbsp;&nbsp;&nbsp;**5.1By Ascensia**. Ascensia hereby represents and warrants to Senseonics, as of the Amended Effective Date, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**Ascensia is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated and is duly licensed (as applicable) and has the qualifications, the experience and the ability to properly perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**Ascensia does not employ, contract with, or retain any person directly or indirectly to perform Ascensia's obligations under this Agreement if such person is (i) debarred by either the U.S. Food and Drug Administration under 21 U.S.C. § 335(a) or any equivalent law or regulation in the Territory, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) disqualified as described in 21 C.F.R. § 812.119, or any equivalent law or regulation in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**Ascensia has the power and authority and the legal right to enter into this Agreement and perform its obligations hereunder; Ascensia has taken all necessary authorized action on its part required to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder; and this Agreement has been duly executed and delivered on Ascensia's behalf and constitutes a legal, valid and binding obligation that is enforceable against Ascensia in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**Ascensia's execution, delivery and performance of this Agreement shall not conflict in any material fashion with the terms of any other agreement or instrument to which it is or becomes a party or by which it is or becomes bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having authority over it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)**All necessary consents, approvals and authorizations of all governmental authorities and Third Parties required to be obtained by Ascensia in connection with this Agreement have been obtained, except where the failure to do so would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, assets, or operations of Ascensia or on the collaboration contemplated under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)**There is no litigation pending or, to Ascensia's knowledge without having made an independent investigation, threatened against Ascensia or any of its Affiliates with respect to the transactions and activities contemplated by this Agreement, except where the failure to do so would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, assets, or operations of Ascensia or on the collaboration contemplated under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**5.2By Senseonics**. Senseonics hereby represents and warrants to Ascensia, as of the Amended Effective Date, as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**Senseonics is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated and is duly licensed (as applicable) and has the qualifications, the experience and the ability to properly perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**Senseonics does not employ, contract with, or retain any person directly or indirectly to perform Senseonics' obligations under this Agreement if such person is (i) debarred by either the U.S. Food and Drug Administration under 21 U.S.C. § 335(a) or any equivalent law or regulation in the Territory, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) disqualified as described in 21 C.F.R. § 812.119, or any equivalent law or regulation in the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)**Senseonics has the power and authority and the legal right to enter into this Agreement and perform its obligations hereunder; Senseonics has taken all necessary authorized action on its part required to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder; and this Agreement has been duly executed and delivered on Senseonics' behalf and constitutes a legal, valid and binding obligation that is enforceable against Senseonics in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)**Senseonics' execution, delivery and performance of this Agreement shall not conflict in any material fashion with the terms of any other agreement or instrument to which it is or becomes a party or by which it is or becomes bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having authority over it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)**All necessary consents, approvals and authorizations of all governmental authorities and Third Parties required to be obtained by Senseonics in connection with this Agreement have been obtained, except where the failure to do so would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, assets, or operations of Senseonics or Ascensia's distribution of the Products or on the collaboration contemplated under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)**There is no litigation pending or, to Senseonics' knowledge without having made an independent investigation, threatened against Senseonics or any of its Affiliates with respect to the transactions and activities contemplated by this Agreement, except where the failure to do so would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, assets, or operations of Senseonics or Ascensia's distribution of the Products or on the collaboration contemplated under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)**All Products manufactured and supplied by or on behalf of Senseonics under this Agreement, at the time of release for delivery hereunder, (i) shall be conveyed with good and clear title, and (ii) shall not be subject to Third Party encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)**Senseonics shall manufacture or have manufactured the Products supplied by or on behalf of Senseonics under this Agreement using properly qualified personnel and in compliance with all applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;**5.3Disclaimer of Warranties.** EXCEPT AS EXPRESSLY SET FORTH IN SECTION 5.2 OR THE PRODUCT WARRANTY SET FORTH IN **EXHIBIT E**, NEITHER PARTY MAKES ANY WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO THE PRODUCTS, AND EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER WARRANTIES, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUALITY AND NON-INFRINGEMENT, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4** **Covenants.** 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Omitted.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)Compliance with Laws**. The Parties acknowledges that the Products and other materials made available to Ascensia by Senseonics hereunder may be subject to the export administration regulations of the United States Department of Commerce and other governmental regulations related to the export of technical data and equipment and products in the Territory. Each Party agrees to comply with all applicable laws and regulations in the Territory in connection with the distribution of the Products and performance of this Agreement. Each Party also agrees that it will comply with the requirements of the U.S. Foreign Corrupt Practices Act ("**FCPA**"), as amended from time to time, and any other applicable laws relating to bribery and corruption, and will refrain from making any payments to Third Parties that would cause the other Party to violate the FCPA or such other applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)Debarment**. Each Party covenants to the other Party that it shall not during the Term employ, contract with, or retain any person directly or indirectly to perform Ascensia's obligations under this Agreement if such person is (i) debarred by either the U.S. Food and Drug Administration under 21

U.S.C. § 335(a) or any equivalent law or regulation in the Territory, or (ii) disqualified as described in 21

C.F.R. § 812.119, or any equivalent law or regulation in the Territory. If a Party becomes aware of the debarment or disqualification of any person or entity performing, directly or indirectly, any of such Party's obligations under this Agreement, such Party agrees to notify the other Party immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Indemnification And Liability** 

&nbsp;&nbsp;&nbsp;&nbsp;**6.1Indemnification by Ascensia.** Ascensia shall indemnify and hold harmless Senseonics and its Affiliates, and their respective directors, employees, consultants and agents (the "**Senseonics Indemnified Parties**") from and against any and all liabilities, losses, damages, costs, and other expenses (including attorneys' and expert witnesses' costs and fees) awarded to a Third Party (or agreed to in a settlement with the Third Party by the indemnifying Party) (***"*Losses*"***) incurred by the Senseonics Indemnified Parties (or any of them) as a result of any claim, demand, action or proceeding by any Third Party (a ***"*Claim*"***) to the extent arising from or relating to (i) any material breach of any representation, warranty, or covenant set forth in Section 5, (ii) the misappropriation by Ascensia or its Affiliates of any personally identifiable data of a Third Party in connection with the use or distribution of the Products or (iii) any intentional misconduct or negligence by Ascensia or any of its employees, agents, or subcontractors; except to the extent such Losses result from any matter set forth in Section 6.2 for which Senseonics is obligated to indemnify the Ascensia Indemnified Parties.

&nbsp;&nbsp;&nbsp;&nbsp;**6.2Indemnification by Senseonics**. Senseonics shall indemnify and hold harmless Ascensia and its Affiliates, and their respective directors, employees, consultants and agents (the "**Ascensia Indemnified Parties**") from and against any Losses incurred by the Ascensia Indemnified Parties (or any of them) as a result of any Claim to the extent arising from or relating to (i) any material breach of any representation, warranty, or covenant set forth in Section 5, (ii) any intentional misconduct or negligence by Senseonics or any of its employees, agents, or subcontractors, (iii) any product liability claim for injury or death of a person as a result of a material defect in the Products, (iv) use of the Senseonics Marks by Ascensia, as authorized herein, (v) the misappropriation by Senseonics or its Affiliates of any personally identifiable data of a Third Party in connection with the use of the Products, or (vi) the infringement by the Products of any Intellectual Property Rights of a Third Party, excluding infringement arising from (A) use of a Product in combination with equipment or software not supplied by Senseonics where such Product would not itself be infringing, or (B) modifications of a Product by anyone other than Senseonics without Senseonics' prior written approval; except to the extent such Losses result from any matter set forth in Section 6.1 for which Ascensia is obligated to indemnify the Senseonics Indemnified Parties.

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&nbsp;&nbsp;&nbsp;&nbsp;**6.3Indemnification Procedures.** In the event of any Claim for which any Party seeking indemnification (the "**Indemnified Party**") is or may be entitled to indemnification hereunder, the Indemnified Party may, at its option, require the indemnifying Party ("**Indemnifying Party**") to defend such Claim at the Indemnifying Party's sole expense. The Indemnified Party will have the right to participate in such defense and to employ counsel, at its own expense, separate from the counsel employed by the Indemnifying Party. The Indemnified Party will reasonably cooperate with the Indemnifying Party in such defense (including making documents and records available for review and making persons within its control available for pertinent testimony), provided that the Indemnifying Party shall reimburse the Indemnified Party for all of its reasonable out-of-pocket expenses. The Indemnifying Party may not agree to settle any such Claim without the Indemnified Party's express prior written consent, not to be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;**6.4Failure to Defend or Settle.** If the Indemnifying Party fails or wrongfully refuses to defend or settle any Claims, then the Indemnified Party shall, upon written notice to the Indemnifying Party, have the right to defend or settle (and control the defense of) such Claims. In such case, the Indemnifying Party shall cooperate, at its own expense, with the Indemnified Party and its counsel in the defense and settlement of such Claims, and shall pay, as they become due, all costs, damages, and reasonable legal fees incurred therefore.

&nbsp;&nbsp;&nbsp;&nbsp;**6.5Liability**. EXCEPT WITH RESPECT TO LIABILITY ARISING FROM (A) A PARTY'S BREACH OF ITS CONFIDENTIALITY OBLIGATIONS, (B) A PARTY'S INDEMNIFICATION OBLIGATIONS,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) A PARTY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR (D) MISAPPROPRIATION BY A PARTY OF THE OTHER PARTY'S INTELLECTUAL PROPERTY RIGHTS (COLLECTIVELY, "**EXCLUDED LIABILITY**"), IN NO EVENT WILL EITHER OF THE PARTIES BE LIABLE TO THE OTHER FOR ANY INDIRECT OR CONSEQUENTIAL LOSS OR DAMAGES OR LOSS OF PROFITS IN RELATION TO, OR ARISING OUT OF THE OPERATION OR TERMINATION OF THIS AGREEMENT.

EXCEPT WITH RESPECT TO EXCLUDED LIABILITY, EACH PARTY'S LIABILITY TO THE OTHER PARTY UNDER THIS AGREEMENT, REGARDLESS OF THE CAUSE OF ACTION, IS LIMITED TO THE TOTAL AMOUNTS PAID OR PAYABLE BY ASCENSIA TO SENSEONICS DURING THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING SUCH CLAIM; PROVIDED THAT THE FOREGOING LIMITATION SHALL NOT APPLY TO LIMIT ANY PRODUCT LIABILITY CLAIMS FOR DEATH OR INJURY TO PERSON.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **T ERM ; T ERMINATION** 

&nbsp;&nbsp;&nbsp;&nbsp;**7.1Term.** This Agreement shall begin on the Amended Effective Date and, unless terminated sooner as provided in Section 7.2 below, shall end on the later to occur of: (a) January 1, 2027; (b) assignment of all Tender Agreements relating to the Product to Senseonics; or (c) Poland and Switzerland are wound down in accordance with the wind down plan mutually agreed to by the Parties (the "**Term**").

&nbsp;&nbsp;&nbsp;&nbsp;**7.2Termination for Convenience.** Either Party may terminate this Agreement if the Transition Services Agreement is terminated for any reason by providing the other Party at least [\*\*\*] prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;**7.3For Cause**. Each Party shall have the right to terminate this Agreement, effective immediately, upon written notice to the other Party, if at any time the other Party has materially breached any of its obligations hereunder and has not cured such breach within [\*\*\*] of receipt of written notice of such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 **Change of Control.** Ascensia shall have the right to terminate this Agreement, effective upon [\*\*\*] prior written notice, in the event a Third Party acquires, in one (1) or a series of transactions, at

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least [\*\*\*] of the outstanding voting common stock or equity of Senseonics and/or all or substantially all of the business assets of Senseonics to which this Agreement relates.

&nbsp;&nbsp;&nbsp;&nbsp;**7.5Bankruptcy**. Each Party shall have the right to terminate this Agreement upon written notice to the other Party upon the bankruptcy, dissolution or winding up of such other Party, or the making or seeking to make or arrange an assignment for the benefit of creditors of such other Party, or the initiation of proceedings in voluntary or involuntary bankruptcy, or the appointment of a receiver or trustee of such other Party's property, that is not discharged within [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;**7.6Effects of Termination**. Upon expiration of the Term or earlier termination of this Agreement, all rights and obligations of the Parties under this Agreement will terminate, except as expressly provided in this Section 7.6 and Section 7.7. Ascensia shall perform an orderly wind-down of its distribution activities under this Agreement, and shall provide, in a prompt and timely manner, all cooperation and assistance to Senseonics, and undertake all actions as are required or reasonably requested by Senseonics, to facilitate the smooth transition of Ascensia's obligations hereunder to Senseonics or to Senseonics' Affiliate, distributor or other designee and to enable Senseonics or its designee to assume, with as little disruption as possible, the promotion, marketing, import, sale and distribution of Products in the Territory. Thereafter, Ascensia shall (a) cease all further activities related to the Products, including all promotion, marketing, distribution and sales of the Products in the Territory, (b) cease all further use of, and promptly collect and return or, at Senseonics' request, destroy to collect and return or destroy, all documents containing Senseonics Marks or Confidential Information of Senseonics, all Promotional Material, and other Product-related sales or sales training materials; provided, however, Ascensia may retain one (1) copy of the Confidential Information of Senseonics for its legal files for the sole purpose of determining its obligations hereunder and for purposes of exercising any rights that survive expiration or termination hereunder, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) pay any and all amounts due and payable to Senseonics under this Agreement, provided, however, Senseonics will not be liable to Ascensia for any other amounts except as expressly set forth herein. In addition, upon expiration of the Term or earlier termination of this Agreement, Senseonics shall promptly collect and return or, at Ascensia's request, destroy, all Confidential Information of Ascensia then in its possession; provided, however, that Senseonics shall have the right to retain one (1) copy for its legal files for the sole purpose of determining its obligations hereunder and for purposes of exercising any rights that survive expiration or termination hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;**7.7Liability on Termination.** Each Party understands that the rights of termination or expiration hereunder are absolute. Without limiting the generality of the foregoing, each Party acknowledges and agrees that the other Party has no obligation to agree to or approve any renewal or extension of this Agreement, and that it has no basis for expecting, and has received no assurance, that its business relationship with the other Party will continue beyond the Term. Neither Party shall incur any liability whatsoever for any damage, loss or expenses of any kind suffered or incurred by the other arising from or incident to any termination of this Agreement by such Party or any expiration hereof which complies with the terms of the Agreement, whether or not such Party is aware of any such damage, loss or expenses. In particular, without in any way limiting the foregoing, neither Party shall be entitled to any damages on account of prospective profits or anticipated sales, and Ascensia agrees that it has no basis for expecting, and has received no assurance, that any investment by Ascensia in the promotion of the Products will be recovered. Ascensia further agrees to waive the benefit of any law or regulation, if any, providing compensation to Ascensia arising from the termination or failure to renew this Agreement and Ascensia hereby represents and warrants that such waiver is irrevocable and enforceable by Senseonics.

&nbsp;&nbsp;&nbsp;&nbsp;**7.8Survival.** Sections 1, 3.2, 3.4, 4.1-4.3 (solely to the extent payments accrued but remain unpaid as of the effective date of termination), 4.5, 6, 7.3, 7.6, 7.7, 8, and 9 shall survive the expiration or termination of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **C ONFIDENTIAL I NFORMATION** 

&nbsp;&nbsp;&nbsp;&nbsp;**8.1Confidentiality Obligations**. Each Party shall at all times, and notwithstanding any termination or expiration of this Agreement, hold in confidence and not disclose to any Third Party Confidential Information of the other Party, except as approved in writing by the other Party to this Agreement, and shall use the Confidential Information for no purpose other than the performance of this Agreement and the purposes expressly permitted by this Agreement. Each Party shall only permit access to Confidential Information of the other Party to those of its employees, consultants, agents, contractors, Affiliates, and attorneys having a need to know and who are bound in writing prior to disclosure by confidentiality obligations at least as restrictive as those contained herein. The obligations in this Section 8 shall terminate [\*\*\*] from the date of expiration or termination of this Agreement in accordance with Section 7. Notwithstanding the foregoing, Ascensia may not share any Confidential Information relating to Senseonics' technology, intellectual property, internal processes, or development plans with a portfolio company of [\*\*\*] or with any other partner, member, director, officer, retired partners, member, director, officer, or stockholder of such portfolio company of [\*\*\*], except for a partner or member of [\*\*\*] who is involved in the monitoring of the activities under this Agreement. For the avoidance of doubt, the foregoing does not restrict ADC or its Affiliates from engaging in any business activities, operations, products, or services, provided such activities do not use or rely on Senseonics Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;**8.2Exceptions to Confidentiality Obligations**. A Party's obligations under this Agreement with respect to any portion of the other Party's Confidential Information shall terminate when the Party that is subject to such obligations can document in writing that such information: (a) entered the public domain through no fault of such Party; (b) it was in such Party's possession free of any obligation of confidence at the time it was communicated to such Party by the other Party; (c) it was rightfully communicated to such Party free of any obligation of confidence subsequent to the time it was communicated to such Party by the other Party; or (d) it was developed by employees or agents of such Party independently of and without reference to any information communicated to such Party by the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;**8.3Authorized Disclosure**. Notwithstanding anything to the contrary, a Party shall not be in violation of Section 8.1 with regard to a disclosure of the other Party's Confidential Information that is in response to a valid order by a court or other governmental body or necessary to comply with applicable law (including applicable securities laws) or governmental regulations, provided that if such Party is required to make any such disclosure of the other Party's Confidential Information it shall to the extent practicable give reasonable advance notice to the other Party of such disclosure requirement in order to permit the other Party to seek confidential treatment of or to limit the Confidential Information required to be disclosed, and shall reasonably cooperate with the other Party in objecting to or limiting such disclosure or obtaining confidential treatment thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **M ISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;**9.1Assignment.** Neither Party has the right to assign its rights or delegate its obligations under the Agreement without the prior written consent of the other Party, except that each Party may assign its rights and delegate its obligations under the Agreement without such consent to an Affiliate (other than a portfolio company of [\*\*\*] that is not otherwise a subsidiary or parent of Ascensia) of such Party or in connection with the transfer or sale to a Third Party of all or substantially all of the business of such Party to which the Agreement relates, whether by merger, sale of stock, sale of assets or otherwise. Notwithstanding the foregoing, any permitted assignment hereunder shall not relieve the assigning Party of its responsibilities for performance of its obligations under this Agreement. The rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the

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successors and permitted assigns of the Parties. Any assignment not in accordance with this Agreement shall be void.

&nbsp;&nbsp;&nbsp;&nbsp;**9.2Relationship of the Parties.** It is expressly agreed that Senseonics and Ascensia shall be independent contractors and that the relationship between the Parties shall not constitute a partnership, joint venture or agency of any kind. Neither Party shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party, without the prior written consent of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;**9.3Amendment.** Unless otherwise provided herein, this Agreement may not be changed, waived, discharged, or terminated orally, but instead only by a written document that is signed by the duly authorized officers of both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;**9.4Waiver.** No failure or delay by either Party in exercising any right, power, or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial waiver thereof include any other or further exercise thereof or the exercise of any other right, power, or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;**9.5Severability.** Whenever possible, each provision of the Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any term or provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of the Agreement and this Agreement shall be interpreted and construed as if such provision had never been contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;**9.6Notices.** All notices and statements to be given (which shall be in writing) and all payments to be made hereunder (other than payments required to be wired) shall be given or made at the respective addresses of the Parties as set forth above, unless notification of a change of address is given in writing. All notices, payments (other than wired payments) and statements to be made hereunder shall be mailed by certified or registered mail, return receipt requested, or sent by overnight courier, or by facsimile or other electronic means. Any notice given pursuant to this Agreement by mail shall be considered effective **[\*\*\*]** after mailing. Any notice sent by overnight courier shall be considered effective one day after mailing. The date of transmission of any notice sent by electronic means shall be deemed to be the date the notice or statement is transmitted.

&nbsp;&nbsp;&nbsp;&nbsp;**9.7Construction.** The section headings of this Agreement are inserted for ease of reference only, and shall not be used to interpret, define, construe, or describe the scope or extent of any aspect of this Agreement. Unless otherwise expressly stated, when used in this Agreement the word "including" means "including but not limited to." Each Party represents that it has had the opportunity to participate in the preparation of this Agreement and hence the Parties agree that the rule of construction that ambiguities be resolved against the drafting Party shall not apply to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**9.8No Third Party Beneficiaries.** Unless expressly provided, no provisions of this Agreement are intended or shall be construed to confer upon or give to any person other than Ascensia and Senseonics any rights, remedies, or other benefits under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**9.9Equitable Relief.** Each Party acknowledges and agrees that any breaches or violations of Section 8 may cause the non-breaching Party irreparable damage for which the award of monetary damages would be inadequate. Consequently, the non-breaching Party may seek to enjoin the breaching Party from any and all acts in violation of any such provisions, which remedy shall be cumulative and not exclusive, and a Party may seek the entry of an injunction enjoining any breach or threatened breach of such provisions, in addition to any other relief to which the non-breaching Party may be entitled at law or in equity.

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&nbsp;&nbsp;&nbsp;&nbsp;**9.10Governing Law and Dispute Resolution**. This Agreement shall be governed by and interpreted under the laws of New York, without regard to its conflict or choice of law provisions. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**9.11Dispute Resolution**. The Parties shall attempt by direct negotiation, between designated officers of the Parties, in good faith to resolve promptly any dispute arising out of or relating to this Agreement.

If the dispute has not been resolved by negotiation as detailed above, then the Parties shall endeavor to settle the dispute by binding arbitration administered by the International Centre for Dispute Resolution in accordance with its International Arbitration Rules. A single, impartial arbitrator mutually acceptable to the Parties shall conduct the arbitration.

The location of the arbitration shall be in New York, New York. As a condition of appointment of the arbitrator, said arbitrator shall agree to use her/his best efforts to conclude the proceeding within [\*\*\*]. Said arbitrator shall further have the authority to limit the volume of evidence and documents to be submitted by the Parties. The Parties shall bear the costs of arbitration equally and shall bear their own expenses, including professional fees. The arbitrator's decision shall be binding, final and non-appealable (absent manifest error). Any court having jurisdiction thereof may enter judgment upon the award rendered by the arbitrator. This Section 9.11, however, shall not be construed to limit or to preclude either Party from bringing any action in any court of competent jurisdiction for injunctive or other provisional relief as necessary or appropriate. The arbitration proceeding will be confidential and the arbitrator shall issue appropriate protective orders to safeguard each Party's Confidential Information. Except as required by applicable laws, including without limitation United States securities laws, no Party shall make (or instruct the arbitrator to make) any public announcement with respect to the proceedings or decision of the arbitrator without prior written consent of the other Party. The existence of any dispute submitted to arbitration, and the award, shall be kept in confidence by the Parties and the arbitrator, except as required in connection with the enforcement of such award or as otherwise required by applicable laws.

Notwithstanding anything to the contrary herein, the above procedures shall not apply to any disagreements relating to setting Revenue Targets, Marketing Fund spending and U.S. sales force coverage for each Fiscal Year as set forth in Section 2.4(h), or Intellectual Property Rights, which disputes shall be resolved in the state and federal courts located in New York, New York. The Parties hereby irrevocably submit to the jurisdiction of the state and federal courts located in New York, New York for all such disputes.

&nbsp;&nbsp;&nbsp;&nbsp;**9.12Force Majeure**. Neither Party shall be liable to the other for any failure or delay in the performance of any of its obligations under this Agreement arising out of any event or circumstance beyond its reasonable control, including war, rebellion, terrorism, civil commotion, strikes, lock-outs or industrial disputes; fire, explosion, earthquake, acts of God, flood, drought, or bad weather; pandemics, epidemics, or requisitioning or other act or order by any government, council, or constituted body. If such failure or delay occurs, then the affected Party shall give the other Party notice of the circumstances causing such failure or delay, and such Party shall be excused from the performance of such of its obligations that it is thereby disabled from performing for so long as it is disabled and for **[\*\*\*]** thereafter; provided, however, that such affected Party commences and continues to take reasonable and diligent actions to cure such failure or delay. Notwithstanding the foregoing, if a Party is disabled from the performance of any material obligation under this Agreement for a period of **[\*\*\*]** or more, then the other Party shall have the right to terminate this Agreement upon written notice to the other Party, in which event the provisions of Section 7.3 shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;**9.13Attorneys' Fees.** If any claim, action, or dispute arises between the Parties with respect to any matter covered by this Agreement that leads to a proceeding before a court of competent jurisdiction to resolve such claim, the Prevailing Party in such proceeding shall be entitled to receive from the other Party its reasonable

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

attorneys' fees, expert witness fees, court costs and other out-of-pocket costs incurred in connection with such proceeding, in addition to any other relief that it may be awarded. For purposes of this Section 9.13, the term "**Prevailing Party**" means that Party in whose favor any monetary or equitable award is made or in whose favor any dispute is resolved, regardless of any settlement offers.

&nbsp;&nbsp;&nbsp;&nbsp;**9.14Publicity.** Each Party shall have the right to issue from time to time press releases that disclose the relationship of the Parties under this Agreement upon the agreement of the Parties, which agreement shall not be unreasonably withheld, delayed, or conditioned. Any press releases that are to be issued by either Party shall be in a form and substance as may be mutually agreed upon by the Parties. Notwithstanding the foregoing, each Party shall have the right to issue press releases concerning this Agreement without the consent of the other Party solely to the extent necessary to comply with applicable securities laws, provided that such Party shall use reasonable efforts to provide prior notice to the other Party and consult with the other Party with respect to such press releases.

&nbsp;&nbsp;&nbsp;&nbsp;**9.15English Language**. This Agreement is in the English language only, which language shall be controlling in all respects, and all versions hereof in any other language shall not be binding on the Parties hereto. All communications and notices to be made or given pursuant to this Agreement shall be made in the English language.

&nbsp;&nbsp;&nbsp;&nbsp;**9.16Entire Agreement**. This Agreement includes all exhibits attached hereto (and along with the Quality Agreement, the Transition Services Agreement and the Asset Purchase Agreement) constitutes the entire Agreement by and between the Parties as to the subject matter hereof. Except for the Quality Agreement, the Transition Services Agreement and the Asset Purchase Agreement, which shall each remain in effect, this Agreement supersedes and replaces in its entirety all prior agreements, understandings, letters of intent, and memoranda of understanding by and between the Parties hereto, in either written or oral form. No amendment or modification of this Agreement shall be valid unless set forth in writing referencing this Agreement and executed by authorized representatives of both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;**9.17Counterparts**. Each Party may execute this Agreement using a handwritten, electronic, or digital signature, in one or more counterparts, which may be exchanged via paper, fax or email (i.e., PDF format) when signed, each of which will be deemed an original, and all of such counterparts shall together constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;**9.18Non-Disparagement.** The Parties agree that any and all communications to customers and any and all publications, press releases, public statements, social media posts, marketing materials, or other external communications shall be conducted in a professional manner and shall not, directly or indirectly, in any way, publicly or privately, disparage, call into disrepute, defame, slander, libel, or otherwise make or publish any statement or remark, whether written or oral, that could reasonably be expected to damage the reputation, business interests, products, services, officers, directors, employees, agents, or affiliates of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;**9.19Non-Solicitation of Customers.** Until December 31, 2026, neither Ascensia nor any Affiliate shall, directly or indirectly, individually or in partnership or otherwise jointly or in concert with any other person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) knowingly or intentionally induce or attempt to induce any current Senseonics customer to reduce its business with Senseonics or to terminate its relationship with Senseonics, or (ii) use any Senseonics Confidential Information or using any other information obtained by Ascensia or any Affiliate in its performance under the Prior Agreement, this Agreement or the Transition Services Agreement to compete with Senseonics, provided, however, that general sales and marketing efforts not specifically targeted at a current Senseonics customer shall not be a violation of clause (i) of this Section. For purposes of clarity, this Section does not limit or otherwise negate the obligations in Section 8 relating to Senseonics Confidential information.

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**[*Signature Page Follows*]**

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**In Witness Whereof**, the Parties hereto have this day caused this Agreement to be executed by their duly authorized officers.

**Senseonics, Incorporated**

By: <u>/s/ Timothy Goodnow</u><u> </u><br>Name: Timothy T. Goodnow

Title: President & Chief Executive Officer

**Ascensia Diabetes Care Holdings AG**

*(two signatories required)*

By: <u>/s/</u> <u>Koichiro Sato</u> Name: Koichiro Sato

Title: Chief Executive Officer

**Ascensia Diabetes Care Holdings AG**

*(two signatories required)*

By: <u>/s/</u> <u>Marieke</u><u> </u><u>Jansen</u> 

Name: Marieke Jansen<br>Title: General Counsel

[Signature Page to Collaboration and Commercialization Agreement]

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**Exhibit A Omitted.**

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**exhibit B Products**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Eversense® CGM System (90day system) – FDA approved June 2018

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Eversense® XL CGM System (180day system) – CE marked Nov 2017

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Eversense® XL 2.0 CGM System (180day system) –

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. New Rome 1–based sensor CGM System (365day system)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. New Rome 2–based sensor CGM System (365day system)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. [\*\*\*]

**E**

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**Exhibit C Omitted.**

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**Exhibit D**

**Roles and Responsibilities<br>[\*\*\*]**

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**Exhibit E Product Warranty**

**[\*\*\*]**

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**Exhibit F-1**

**Consideration Table**

**[\*\*\*]<br>Exhibit F-2 Omitted**

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**Exhibit G Omitted**

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**Exhibit H**

**OMITTED**

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**exhibit I Omitted**

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**exhibit J Omitted**

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***CERTAIN PORTIONS OF THIS EXHIBIT (INDICATED BY [\*\*\*]) HAVE BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION S-K BECAUSE THEY ARE BOTH NOT MATERIAL AND ARE THE TYPE THAT THE COMPANY TREATS AS PRIVATE AND CONFIDENTIAL.***

**Exhibit K**

**OMITTED.**

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## Exhibit 5.1

**Exhibit 5.1**

![Graphic](sens-20251231xex5d1001.jpg)

Darren DeStefano

+1 703 456 8034

ddestefano@cooley.com

March 2, 2026

Senseonics Holdings, Inc.

20451 Seneca Meadows Parkway

Germantown, MD 20876-7005

Ladies and Gentlemen:

We have acted as counsel to Senseonics Holdings, Inc., a Delaware corporation (the "***Company***"), in connection with the offering by the Company of up to $100,000,000 of shares (the "***Shares***") of the Company's common stock, $0.001 par value per share ("***Common Stock***") that may be sold under the Sales Agreement, dated August 6, 2025, between the Company and TD Securities (USA) LLC (the "***Agreement***") pursuant to the Registration Statement on Form S-3 (File No. 333-289306) (the "***Registration Statement***") and the sales agreement prospectus included in the Registration Statement (the "***Prospectus***") filed with the Securities and Exchange Commission (the "***Commission***") under the Securities Act of 1933, as amended (the "***Securities Act***") on August 6, 2025.

In connection with this opinion, we have examined and relied upon (a) the Registration Statement and the Prospectus, (b) the Agreement, (c) the Company's certificate of incorporation and bylaws, each as currently in effect, and such other records, documents, certificates, opinions, memoranda and instruments as in our judgment are necessary or appropriate to enable us to render the opinion expressed below. We have assumed the genuineness of all signatures; the authenticity of all documents submitted to us as originals; the conformity to originals of all documents submitted to us as copies; the accuracy, completeness and authenticity of certificates of public officials; and the due authorization, execution and delivery of all documents by all persons other than the Company. As to certain factual matters, we have relied upon a certificate of an officer of the Company and have not independently verified such matters.

We have assumed that (i) each sale of Shares will be duly authorized by the Board of Directors of the Company, a duly authorized committee thereof or a person or body pursuant to an authorization granted in accordance with Section 152 of the General Corporation Law of the State of Delaware (the "***DGCL***") and (ii) no more than 13,500,000 Shares will be sold under the Agreement pursuant to the Prospectus for a consideration not less than the par value of the Common Stock. We express no opinion to the extent that future issuances of securities of the Company, anti-dilution adjustments to outstanding securities of the Company or other matters cause the number of shares of Common Stock issuable under the Agreement to exceed the number of shares available for issuance by the Company.

Our opinion is expressed solely with respect to the DGCL. We express no opinion to the extent that any other laws are applicable to the subject matter hereof and express no opinion and provide no assurance as to compliance with any federal or state securities law, rule or regulation.

On the basis of the foregoing, in reliance thereon and subject to the assumptions, qualifications, limitations and exceptions set forth herein, we are of the opinion that the Shares, when sold and issued against payment therefor in accordance with the Agreement, the Registration Statement and the Prospectus, will be validly issued, fully paid and nonassessable.

Our opinion is limited to the matters expressly set forth in this letter, and no opinion has been or should be implied, or may be inferred, beyond the matters expressly stated. This opinion speaks only as to law and facts in effect or existing as of the date hereof, and we have no obligation or responsibility to update or supplement this letter to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur.

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We consent to the reference to our firm under the heading "Legal Matters" in the Prospectus and to the filing of this opinion as an exhibit to the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Commission for incorporation by reference into the Registration Statement. In giving such consents, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission thereunder.

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br><u>: /s/ Darren DeStefano</u> <br> Darren DeStefano<br>|
| Very truly yours,<br>**Cooley LLP**<br>By<u>: /s/ Darren DeStefano</u> <br> Darren DeStefano |

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