Document:

Physician Plus Agreement dated August 15, 2004

 EXHIBIT 10.5 
  
 PHYSICIANPLUSTM AGREEMENT 
 (Branded Products)

  
 This PHYSICIAN PLUS AGREEMENT (“Agreement”),
effective August 15, 2004 (“Effective Date”), is between Hemosense, Inc., a California corporation with its principal offices located at 651 River Oaks Parkway, San Jose, California 95134, hereinafter called “SUPPLIER,”
and Cardinal Health 200, Inc., a Delaware Corporation that is the Medical Products and Services Group of Cardinal Health, with offices located at 1450 Waukegan Road, McGaw Park, Illinois 60085, hereinafter called “DISTRIBUTOR.” 

 
 BACKGROUND 
  
 DISTRIBUTOR works with its physician customers to provide a broad product
offering while helping those customers make the best possible product choices to maximize their supply budget dollars. This broad product offering contains, among other products, PhysicianPlusTM products. Distributor’s intent is, through its strategic program called the
PhysicianPlusTM Program, to encourage its physician
customers’ conversion to Distributor’s portfolio of PhysicianPlus products. 
  
 SUPPLIER desires to have certain of its products (specifically, the “Products” as defined in Section 1 below) included in the PhysicianPlus Program and DISTRIBUTOR is willing to include the Products in such
program subject to the terms and conditions of this Agreement. 
  
 SUPPLIER and DISTRIBUTOR agree as follows: 
  
 1.
Products Covered by this Agreement; Exclusivity. 
  
 The
products covered by this Agreement are those products listed on Schedule “A” (the “Products”). Products may be added to or deleted from this Agreement by mutual consent of the parties. SUPPLIER hereby appoints DISTRIBUTOR as, and
DISTRIBUTOR hereby accepts such appointment as, the exclusive distributor of the Products for physician offices, clinics and surgery centers in the United States (the “Customers”). SUPPLIER shall have the right, upon written notice to
DISTRIBUTOR, to terminate this Agreement in the event DISTRIBUTOR fails to achieve the quarterly order volume targets as listed in Schedule “B” (the “Minimums”) and fails to cure such failure by placing a purchase order for
Products an amount necessary to reach such Minimums within 30 days after written notice from SUPPLIER. 
  
 For so long as DISTRIBUTOR continues to achieve the Minimums, SUPPLIER shall not appoint any other person or entity to distribute the Products (or any
products with the same specifications as the Products) to the Customers. SUPPLIER shall notify DISTRIBUTOR in the event SUPPLIER elects to exercise its rights to appoint any other distributors as permitted in the preceding sentence. Notwithstanding
anything to the contrary above, SUPPLIER may, in its sole discretion, (i) solicit orders directly from and distribute Products directly to Customers without violating SUPPLIER’s exclusivity obligation described above (it being understood that
SUPPLIER shall use commercially reasonable efforts to refer all inquiries from Customers regarding the purchase of Products to DISTRIBUTOR), and (ii) solicit orders and distribute Products to Customers through Quality Assured Services without
violating SUPPLIER’s exclusivity obligation described above provided Quality Assured Services is not currently, and is not for so long as DISTRIBUTOR continues to achieve the Minimums set forth in this Agreement, authorized to resell the
Products through other distributors and SUPPLIER uses best efforts to enforce its contractual rights against Quality Assurance Services as they relate to unauthorized distribution of Products.  
  
 The parties also acknowledge that as of the Effective Date, SUPPLIER has
appointed a third-party distributor for the skilled nursing-care facility and extended-care markets. If that distribution agreement is terminated, the parties shall, upon Distributor’s request, discuss the possibility of extending the scope of
Distributor’s exclusivity under this Agreement to cover such markets; provided that in any such case extension of Distributor’s exclusivity would require an increase in the Minimums described above. 
  
 2. Distributor’s Duties: 
  
 DISTRIBUTOR agrees that, during the term of this Agreement, the Products
shall be included in the PhysicianPlus Program; as such program may be amended from time to time by DISTRIBUTOR in its sole 

  

	***	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 
discretion (provided that such amendments shall in all cases be subject to the limitations of this Agreement). With regard to the PhysicianPlus Program,
DISTRIBUTOR agrees to: (i) position the Products to its physician and clinic customers as PhysicianPlus products; (ii) provide financial incentives to its sales force to sell the Products to Distributor’s physician customers; (iii) provide
focus on the development of marketing tools and promotions relating to the Products; (iv) assist and actively cooperate with SUPPLIER in complementary physician customer-focused promotional activities with regard to the Products; (v) provide access,
when appropriate, to Distributor’s senior management, regional presidents and sales staff to facilitate the meeting of mutual objectives; (vi) maintain such inventory levels of Products as, DISTRIBUTOR in its sole discretion, deems necessary to
meet customary demand; and (vii) provide SUPPLIER with a rolling 12-month non binding forecast of anticipated purchases updated quarterly. For purposes of this Agreement, the determination of whether a particular facility is classified a
“physician” customer shall generally be based upon the “bill-to” location for that customer. Notwithstanding the foregoing, SUPPLIER acknowledges that DISTRIBUTOR reserves the right to classify facilities within integrated
delivery networks or particular group purchasing organizations as an “acute”, “non-acute” or “physician” customer based upon the overall composition and purchasing characteristics of such networks or groups. DISTRIBUTOR
agrees that, for so long as SUPPLIER has not exercised its rights to appoint additional distributors pursuant to the first sentence of the second paragraph of Section 1 and SUPPLIER has complied with requirements of the scope of the exceptions with
regard to DISTRIBUTOR’s exclusive distribution rights as set forth in the remainder of that paragraph, DISTRIBUTOR will not sell or promote any third-party point-of-care anti-coagulation products during the term of this Agreement other than any
such products sold to DISTRIBUTOR by vendors who were selling these types of products to DISTRIBUTOR as of the Effective Date. SUPPLIER acknowledges and agrees that (i) except as described above, DISTRIBUTOR is not prohibited from using, selling or
promoting products which are competitive with the Products and (ii) DISTRIBUTOR has no minimum purchase obligations under this Agreement, provided that DISTRIBUTOR acknowledges that its failure to achieve the Minimums and to cure such failure will
give SUPPLIER the right to terminate this Agreement as described in Section 1 above. 
  
 3. Term. The term of this Agreement shall begin on the Effective Date and shall continue for three (3) years, or until earlier terminated in accordance with the provisions of Section 6 below. At the end of the
term, the parties may renew the Agreement for successive one (1) year terms on mutual written agreement. 
  
 4. Pricing and Payment Terms. 
  
 a. The prices for Products ordered by the DISTRIBUTOR shall be as set forth on Schedule A. All such prices shall remain firm until [***]. Shall a price
change be incurred, SUPPLIER agrees to give DISTRIBUTOR 90 days of notification, and incorporate such price changes at the start of the calendar year. Notwithstanding anything to the contrary set forth herein or in any other agreement between
SUPPLIER and DISTRIBUTOR: (i) payments are due net 30 days from the date of DISTRIBUTOR’s receipt of Product, (ii) for payments received within 30 days from the date of DISTRIBUTOR’s receipt of Product, DISTRIBUTOR shall receive a [***]%
discount on such payment; provided that, upon SUPPLIER’s implementation of EDI transaction #810, such discount shall only apply where payments are received within 10 days of the date of DISTRIBUTOR’s receipt of Product; (iv) SUPPLIER
shipments to DISTRIBUTOR’s locations in the U.S. will be FOB Destination, transportation expenses included, and (v) to the extent SUPPLIER agrees in its discretion to expedite Product shipments, (including through Direct (Drop) shipments to
DISTRIBUTOR’s customers) shipment by SUPPLIER must be F.O.B. Destination, with shipment Prepaid by SUPPLIER and added to the invoice to DISTRIBUTOR. 
  
 b. DISTRIBUTOR and SUPPLIER agree to work together in good faith to review the opportunity of utilizing DISTRIBUTOR’s third-party logistics freight
program pursuant to terms to be mutually agreed upon. 
  
 c.
Distributor shall deduct an administrative fee of [***]% at the time of invoice payment to cover the costs of trace sales reports, the rebate process, contract administration, master merchandise file costs and other costs to assist with ongoing
administration and support of the program 
  
 d. SUPPLIER agrees
to the following process with regard to rebates: DISTRIBUTOR uses an auto-debit system where rebate dollars are automatically deducted from a supplier’s payables balance upon the sale to the end-user customer. Rebate dollars are accumulated
until a specified time period (usually one month) and then the deduction is made. A remittance advice will follow showing which deductions have been made. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

 2 

 e. As additional consideration for Distributor’s agreement to include the Products in the
PhysicianPlus Program in accordance with the terms and conditions of this Agreement, SUPPLIER shall pay DISTRIBUTOR an annual volume growth incentive in the event Distributor’s purchases of Products (valued at the acquisition cost provided to
DISTRIBUTOR hereunder) in any 12-month period following the Effective Date meet or exceed the following hurdles: 
  

			
	 Percentage over applicable Minimum

	 	 Percentage Incentive Paid on Total Purchases
 During Twelve-Month Period

	[***]%	 	[***]%
	[***]%	 	[***]%
	[***]%	 	[***]%
	[***]% [***]	 	[***]%

  
 Any volume growth
incentive earned by DISTRIBUTOR will be paid in the form of a check within 30 days after the close of the applicable 12-month period. If this agreement is terminated prior to the expiration date, any earned growth incentives for the final
consecutive twelve-month period, if any, will be prorated for the number of months this agreement was in effect during such final twelve-month period. 
  
 5. Supplier’s Duties. SUPPLIER shall: 
  
 a. Maintain silver status on Distributor’s Supply Chain Management Scoreboard, as set forth on Attachment 1 to this Agreement (attached and
incorporated into this Agreement) (the “Scoreboard”). 
  
 b. Provide DISTRIBUTOR, free of charge, with reasonable quantities of available materials which would aid in the promotion and sale of the Products. 
  
 c. On or before the Effective Date, provide to DISTRIBUTOR, electronically via Excel or Access or such other format as the parties shall agree, such
competitive cross referencing information with regard to the Products as DISTRIBUTOR shall reasonably request and, thereafter, update such information no less frequently than quarterly. 
  
 d. Attend Distributor’s Annual National Sales Meeting at the then-current PhysicianPlus supplier rate. 
  
 e. Collaborate with DISTRIBUTOR to review its various businesses and
determine other market segment opportunities for the Products. 
  
 f. Provide various promotional opportunities for DISTRIBUTOR and its sales force, including without limitation, the “[***]” promotion, at times mutually agreed upon between the parties. 
  
 g. Make any claims for unpaid invoices in writing within ninety (90) days of
the date of SUPPLIER’s first invoice for such amount. DISTRIBUTOR will not be obligated to make payments for, or investigate, entries which are dated more than ninety (90) days before SUPPLIER’s written claim or request for investigation.

  
 h. On a [***] basis, use commercially reasonable efforts, in
conjunction with DISTRIBUTOR, to [***]. Excess/no move inventory is any inventory of Products in a given distribution center that exceeds [***] ([***]) months of customer demand for that distribution center. “Salable” Product is defined as
undamaged Product in its original sealed shipping carton. 
  
 i.
Not impose any item or order minimums inconsistent with SUPPLIER’s standard terms and conditions of sale. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

 3 

 j. Use commercially reasonable efforts to maintain [***]% Fill Rate (defined below) on all orders for
Products. Fill Rate is defined as complete line items shipped within [***] hours of receipt of DISTRIBUTOR’s purchase order. 
  
 k. In addition to any electronic data interchange (EDI) transactions which are required under DISTRIBUTOR’s “Supplier Price Change &
Notification Policy”, use commercially reasonable efforts to implement and maintain the systems necessary to utilize the following: 
  
 i. Purchase Order (EDI #850): Transmitted by DISTRIBUTOR to SUPPLIER and received electronically by SUPPLIER without data entry. 
  
 ii. Invoice (EDI #810): Received electronically by DISTRIBUTOR from
SUPPLIER without data entry. 
  
 iii. Shipment Notice (EDI
#856): Transmitted by SUPPLER to DISTRIBUTOR when shipment leaves SUPPLIER’s facility. 
  
 6. Termination. Either party shall have the right to terminate this Agreement on written notice if the other (a) commits or suffers any act of bankruptcy or insolvency, or (b) fails to cure any material breach
of the provisions of this Agreement within thirty (30) days after written notice of such breach. 
  
 7. Trade Out Program. During the term of this Agreement, SUPPLIER will offer to Distributor’s physician customers a reasonably competitive
equipment trade out program. 
  
 8. Warranties, Indemnification
and Insurance. SUPPLIER specifically warrants to DISTRIBUTOR that the Products are free from material defects in workmanship and materials and are in material compliance with the specifications for them and that the Products will have a minimum
of [***] month self-life when delivered to DISTRIBUTOR. SUPPLIER further agrees to comply with the provisions of the Continuing Guaranty attached hereto as Exhibit 1, the terms and conditions of which are made part hereof to the extent consistent
with the terms set out in the body of this Agreement. 
  
 9.
Miscellaneous. 
  
 a. Notices. Any notice required or
permitted under this Agreement shall be in writing and shall be deemed to have been given upon receipt if forwarded by personal delivery, certified mail, or facsimile transmission (transmission confirmed) properly addressed to the respective parties
as set forth below until notice of a different address is supplied in accordance with this Section: 
  

					
	 If to SUPPLIER:
	  	HemoSense
	 	  	651 River Oaks Parkway
	 	  	San Jose, CA 95134
	 	  	Attn:	  	  

	 	  	Title: CEO or EVP Sales and Marketing
	 	  	Facsimile: 408 719 1184
		
	 If to DISTRIBUTOR:
	  	Cardinal Health
	 	  	Medical Products and Services
	 	  	1450 Waukegan Road
	 	  	McGaw Park, IL 60085
	 	  	Attn:	  	 
	 	  	Title: Associate Supplier Relations Manager
	 	  	Facsimile: 847-689-5080

  
 c. Entire Agreement.
This Agreement is the entire agreement between the parties hereto with regard to the parties’ respective obligations relating to the PhysicianPlus Program and the distribution of the Products, there being no prior written or oral promises or
representations not incorporated herein with respect to such matters. Without limiting the foregoing, the parties agree that the provisions of Section 306(2) 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

 4 

 
of the Uniform Commercial Code shall not apply to the obligations of either party under this Agreement and that no marketing or sales obligations shall be
implied other than those expressly set forth herein. 
  
 d.
Applicable Law. This Agreement shall be governed by the laws of the State of Illinois, applicable to contracts made and to be performed in that state. 
  
 e. Amendments. No amendment or modification of the terms of this Agreement shall be binding on either party unless reduced to writing and signed by an
authorized employee of the party to be bound. 
  
 f. Waiver of
Punitive Damages and Jury Trial. Both parties irrevocably waive trial by jury in any action, proceeding or counterclaim, whether at law or in equity, brought by either of them arising out of this Agreement. SUPPLIER and DISTRIBUTOR waive to the
fullest extent permitted by law any right to or claim for any punitive or exemplary damages against the other and agree that, in the event of a dispute between them regarding this Agreement, the party making a claim will be limited to equitable
relief and to recovery of any actual damages it sustains. 
  
 g.
Publicity. Neither party will make any press release or other public announcement regarding this Agreement without the other party’s express prior written consent, except as required under applicable law or by any governmental agency, in which
case the party required to make the press release or public disclosure shall use commercially reasonable efforts to obtain the approval of the other party as to the form, nature and extent of the press release or public announcement prior to issuing
the press release or making the public announcement. 
  
 h. Force
Majeure. The obligations of either party to perform under this Agreement shall be excused during each period of delay caused by matters such as strikes, shortages of power or raw material, government orders or acts of God, which are reasonably
beyond the control of the party obligated to perform. 
  
 10.
Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, provided, however, that neither party shall have the right to assign its interest in this Agreement
without the prior written authorization of the other party. Notwithstanding the foregoing, only notice (but no consent) shall be required in connection with SUPPLIER’s assignment of this Agreement in connection with a sale of all or
substantially all of its business or assets to which this Agreement relates, whether by merger, consolidation, sale of assets or any similar transaction; provided that, within 60 days after DISTRIBUTOR‘s receipt of such notice, DISTRIBUTOR
shall have the right to terminate this Agreement upon 30 days’ notice. Without modifying the foregoing, SUPPLIER agrees to cause any purchaser of the assets of SUPPLIER’s business to agree to assume all the obligations of SUPPLIER pursuant
to this Agreement. 
  
 11. Counterparts. For convenience of
the parties hereto, this Agreement may be executed in one or more counterparts, each of which shall be deemed an original for all purposes. 
  
 IN WITNESS WHEREOF, the parties have by their duly authorized employees executed this Agreement as of the Effective Date. 
  
 HemoSense, Inc. 
  

			
	          By:	 	 /s/ James D. Merselis

	          Title:	 	President and CEO

  
 CARDINAL HEALTH
200, INC., the Medical Products and 
 Services Group of Cardinal Health 
  

			
	          By:	 	 /s/ Illegible

	          Title:	 	VP Supplier Relations

  

	***	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

 5 

 SCHEDULE “A” 
 Product Listing and Prices 
  

																
	Cardinal
Material #

	  	Supplier
Product #

	  	 Description: Product Name        

	  	Invoice
Cost each

	 	 	Suggested
List Price

	  	 Contents        

	 	 
	HI100004	  	0100004	  	INRatio Professional Kit	  	$	[***	]	 	$	1,595.00	  	 1 INRatio Meter
 1 INRatio Professional User’s
Guide
 1 Quick Reference
 Guide
	 	 1 Power Supply
 50 Lancets
 1 Training Video

							
	HI100007	  	0100007	  	INRatio Patient Self-Test Kit	  	$	[***	]	 	$	1,995.00	  	 1 INRatio Meter
 1 INRatio Self-Test User’s
Guide
 1 Quick Reference Guide
 1 Patient Results
Log
	 	 1 auto-Lancet Device
 12 Blood Lancets
 1 Starter Kit
 4 AA Batteries
 1 Carrying Tote

							
	HI100071	  	0100071	  	INRatio Test Strips -Box of 12	  	$	[***	]	 	$	120.00	  	12 Test Strips	 	 
							
	HI100139	  	0100139	  	INRatio Test Strips – Bulk Pack of 48	  	$	[***	]	 	$	264.00	  	48 Test Strips	 	 
							
	HI100011	  	0100011	  	Power Supply	  	$	[***	]	 	$	20.00	  	1 Power Supply (120v)	 	 
							
	HI200046	  	0200046	  	Axiohm Printer	  	$	[***	]	 	$	350.00	  	 1 Printer
 1 Printer Cable
 1 Power Transformer
	 	 1 User’s Manual
 1 Roll of Labels
 1 Spindle

							
	HI200009	  	0200009	  	Professional VHS Video	  	$	[***	]	 	$	5.00	  	 	 	 
							
	HI200120	  	0200120	  	Self-Test VHS Video	  	$	[***	]	 	$	5.00	  	 	 	 
							
	HI200133	  	0200133	  	Self-Test DVD	  	$	[***	]	 	$	5.00	  	 	 	 
							
	HI200122	  	0200122	  	 12 Unilet GP Lancets (21g) for use in auto-Lancet
 Device
	  	$	[***	]	 	$	3.50	  	 	 	 
							
	HI200138	  	0200138	  	 100 Unilet GP Lancets (21g) for use in auto-Lancet
 Device
	  	$	[***	]	 	$	12.50	  	 	 	 
							
	HI200121	  	0200121	  	auto-Lancet Device	  	$	[***	]	 	$	10.00	  	 	 	 
							
	HI200016	  	0200016	  	Carrying Tote	  	$	[***	]	 	$	19.95	  	 	 	 
							
	HI200083	  	0200083	  	Patient Results Log 3 Pack	  	$	[***	]	 	$	3.50	  	 	 	 
							
	HI902009	  	0902009	  	50 “Unistik 2” Single Use Lancets (21g)	  	$	[***	]	 	$	10.50	  	 	 	 

  

			
	HemoSense, Inc	 	Customer Service:
	651 River Oaks Pkwy	 	Tel: 1-877-436-6444 (7:00 am - 5:00 pm PST)
	San Jose, CA 95134 USA	 	Fax: 408-719-1184
	www.hemosense.com	 	Email: sales@hemosense.com

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

 6 

 SCHEDULE “B” 
  
 Quarterly Minimum Purchase Targets from HemoSense: 
  

																					
	 	  	Q1

	 	 	Q2

	 	 	Q3

	 	 	Q4

	 	 	Total

	 
	 2004
	  	 	 	 	 	 	 	 	 	$	[***	]	 	$	[***	]	 	$	[***	]
	 2005
	  	$	[***	]	 	$	[***	]	 	$	[***	]	 	$	[***	]	 	$	[***	]
	 2006
	  	$	[***	]	 	$	[***	]	 	$	[***	]	 	$	[***	]	 	$	[***	]
	 First Half 2007
	  	$	[***	]	 	$	[***	]	 	 	 	 	 	 	 	 	 	 	 	 

  
 SUPPLIER acknowledges
that the Minimums above are not binding purchase obligations and that its sole remedy in the event the Minimums above are not achieved by DISTRIBUTOR shall be to terminate this Agreement as set forth in Section 1 of this Agreement. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

 7 

 Exhibit 1 
  
 

 
  

			
	 	  	CONTINUING GUARANTY

  
 Allegiance Healthcare Corporation

 1430 Waukegan Road 
 McGaw Park, IL 60086-8787 
  

					
			
	 Vendor :
	 	 (Name)
	 	Hemo Sense, Inc.
	 	 	(Address)	 	400 Valley Way
	 	 	 	 	Milpitas CA 95035

  
 1. Compliance with
Laws: Vendor guarantees that each product shipped to, or on the order of, Allegiance Healthcare Corporation or any affiliated corporation (“Allegiance”) is as of the date of shipment in compliance with all federal, state and local
laws, regulations, rules and orders and agrees to provide Allegiance with such additional certifications of Vendor’s compliance with laws and regulations as Allegiance shall from time to time reasonably request to fulfill its obligations as a
government contractor. Without limiting the foregoing, Vendor specifically guarantees that the products are not adulterated or misbranded within the meaning of the Federal Food, Drug and Cosmetic Act, as amended and the regulations issued
thereunder, or with the meaning of any applicable state or municipal law in which the definitions of adulteration and misbranding are substantially identical to those contained in the Federal Food, Drug and Cosmetic Act, or products that may not
under the provisions of Sections 404, 505, 514 or 515 of said Act be introduced into interstate commerce, and are not banned devices under Section 516 of said Act, and the products are not products that may not under any state or municipal law,
ordinance, regulation or order be introduced into commerce. 
  
 2.
Child Labor Laws: Vendor represents and warrants that it compiles with all federal, state, local and other applicable laws, regulations, conventions or treaties prohibiting any form of child labor or other exploitation of children in the
manufacturing and delivery or Vendor’s products or services. 
  
 3. Insurance: Vendor agrees to procure and maintain commercial general liability and products liability (including completed operations) insurance covering bodily injury and property damage, in the amount of not less than [***]
Dollars ($[***]) per occurrence (or such higher limits as Allegiance shall reasonably request) with endorsements for blanket contractual liability and vendor’s liability. Vendor shall, on or before delivery of any product, furnish a certificate
of insurance evidencing the foregoing coverage and limits, stating that the insurer shall give Allegiance thirty (30) days prior written notice of any cancellation or non-renewal in coverage. The certificate of insurance should also name Allegiance
Healthcare Corporation and its ultimate parent company, Cardinal Health, Inc. as additional insureds. 
  
 4. Indemnification: Vendor agrees to indemnify and hold harmless Allegiance from any liability, loss, expense, cost, claim or judgment (including
attorneys fees), arising out of: (a) any claim for property damage, or personal injury or death where the product is alleged to have caused or contributed to the damage, injury or death, provided that this indemnification does not extend to
injuries, damages or death to the extent caused by gross negligence or reckless disregard on the part of Allegiance or any of its employees; and (b) any claim that the products infringe the patent, trademark or other proprietary rights of any other
party. 
  
 5. Corrective Actions and Product Complaints:
Vendor agrees that it will reimburse Allegiance for all costs associated with product corrective actions (including recalls), except those recalls that result from gross negligence or reckless disregard on the part of Allegiance or any of its
employees. Vendor shall be responsible for notifying the appropriate federal, state and local authorities of any customer complaints or other occurrences regarding the Products which are required to be so reported, evaluating all complaints and
responding to Allegiance in writing on the resolution of any complaints from Allegiance or its customers. 
  
 6. Private Label Products: If Vendor private labels any product for Allegiance, Vendor agrees: (a) to make no changes in the product, labeling or
packaging of the product without first obtaining Allegiance’s written approval, and (b) to allow duly authorized representatives of Allegiance to enter and inspect Vendor’s facilities during normal business hours to determine Vendor’s
adherence to quality assurance and regulatory compliance standards. 
  
 7. Survival of Guaranty: This guaranty shall be continuing and shall be binding upon the vendor and his or its heirs, executors, administrators, successors and/or assigns and shall inure to the benefit of Allegiances, its successors
and assigns and to the benefit of its officers, directors, agents and employees. 
  
 Date: 3-24-2003 
  

			
	
	HEMO SENSE, INC.
	Corporate Name or Name Under Which Business Is Conducted
	
	/s/    J. D. MERSELIS         Pres. & CEO
	Signature & Title of Authorized Employee, Partner or Proprietor
	
	J. D. MERSELIS
	Printed Name & Title of Authorized Employee, Partner or Proprietor

  

													
	APL-06-02B/Form 5	 	 	  	Chg No: CN-1058	  	 	  	Issue Date: 3/6/02	  	 	  	Page 1 of 1

  
 For Use By Affiliates
of Allegiance Healthcare Corporation 
 This document contains proprietary information. It may not be reproduced or disclosed without prior
written approval 
 >>THE USER OF THIS DOCUMENT IS RESPONSIBLE FOR CHECKING THE CURRENT ISSUE DATE BEFORE USING THIS DOCUMENT<<

  
 Page 6 of 9 
 7/02 SupSetup.doc 
 Allegiance Healthcare Corp. 
  

  

	***	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 AMENDMENT TO PHYSICIAN PLUS AGREEMENT 
  
 This AMENDMENT (“Amendment”) is made and entered into effect as of
this 1 day of March     , 2005, by and between Hemosense, Inc., a California corporation, with its principal offices at 651 River Oaks Parkway, San Jose, California 95134 (“SUPPLIER”) and Cardinal Health
200, Inc., the Medical Products and Services group of Cardinal Health, a Delaware Corporation with offices at 1450 Waukegan Road, McGaw Park, IL 60085 (“DISTRIBUTOR”). 
  
 Recitals 
  
 SUPPLIER and DISTRIBUTOR are parties to that certain PhysicianPlus Agreement effective as of August 15, 2004 (the “Agreement”). 
  
 The parties desire to amend the terms and conditions of the Distribution Agreement.

  
 Agreement 
  
 In consideration of the foregoing, the mutual covenants and agreements contained herein and
in the Agreement, and for other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 
  
 1. Section 1 of the Agreement is hereby deleted in its entirety and is replaced with the following language: 
  

	 	“1.	Products Covered; Authorization. 

  
 The products covered by this Agreement are those products listed on Schedule “A” (the “Products”). Products may be added to or deleted
from this Agreement by mutual consent of the parties. SUPPLIER hereby appoints DISTRIBUTOR as a non-exclusive distributor of the Products for acute care facilities, physician offices, clinics and surgery centers in the United States, and DISTRIBUTOR
accepts such grant for the term and on the conditions stated in this Agreement. SUPPLIER reserves the right to (i) distribute products directly to acute care facilities physician offices, clinics and surgery centers in the United States, and (ii) to
appoint other distributors on a non-exclusive basis to sell the Products to acute care facilities physician offices, clinics and surgery centers in the United States.” 
  
 2. Section 2 of the Agreement is hereby deleted in its entirety and is replaced with the following language: 
  

	 	“2.	Distributor’s Duties: 

  
 DISTRIBUTOR agrees that, during the term of this Agreement, the Products shall be included in the PhysicianPlus Program, as such program may be amended
from time to time by DISTRIBUTOR in its sole discretion with regard to the PhysicianPlus Program, DISTRIBUTOR agrees to: (i) position the Products to its physician and clinic customers as PhysicianPlus products; (ii) provide financial incentives to
its sales force to sell the Products to Distributor’s physician customers; (iii) provide focus on the development of marketing tools and promotions relating to the Products; (iv) assist and actively cooperate with SUPPLIER in complementary
physician customer-focused promotional activities with regard to the Products; (v) provide access, when appropriate, to Distributor’s senior management, regional presidents and sales staff to facilitate the meeting of mutual objectives; (vi)
maintain such inventory levels of Products as, DISTRIBUTOR in its sole discretion, deems necessary to meet customary demand For purposes of this Agreement, the determination of whether a particular facility is classified a “physician”
customer shall generally be based upon the “bill-to” location for that customer. Notwithstanding the foregoing, SUPPLIER acknowledges that DISTRIBUTOR reserves the right to classify 

  

  

	***	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

 
facilities within integrated delivery networks or particular group purchasing organizations as an “acute”, “non-acute” or
“physician” customer based upon the overall composition and purchasing characteristics of such networks or groups SUPPLIER acknowledges and agrees that (a) DISTRIBUTOR is not prohibited from using, selling or promoting products which are
competitive with the Products and (b) DISTRIBUTOR has no minimum purchase obligations under this Agreement.” 
  
 3. The following sentence is hereby added at the end of Section 6 of the Agreement: 
  
 “In addition, each party shall have the right to terminate this Agreement, with or without cause, upon not less than 90
days written notice to the other party.” 
  
 4. Schedule B of the Agreement
is hereby deleted in its entirety. 
  
 5. Except as otherwise provided herein, the
Agreement shall remain unchanged and in full force and effect. 
  
 IN WITNESS
WHEREOF, the parties have executed this Amendment as of the day and date first written. 
  

			
	Hemosense, Inc.
		
	 By:
	 	 /s/ T. Still

	 Title:
	 	 EVP S&M

	 Date:
	 	 3/8/05

  
 Cardinal Health 200, Inc., the
Medical Products and Services Group of Cardinal Health 
  

			
	 By:
	 	 /s/ Illegible

	 Title:
	 	 VP Supplier Relations

	 Date:
	 	 3/7/05

  

  

	***	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission.Distribution Agreement dated June 30, 2004

 EXHIBIT 10.6 
  
 DISTRIBUTION AGREEMENT 
  

This AGREEMENT made as of June 30, 2004 (the “EFFECTIVE DATE”) by and between HEMOSENSE, Inc., (hereafter referred to as “HEMOSENSE”), a California
Corporation, and Medline Industries, Inc., an Illinois Corporation with offices at One Medline Place, Mundelein, IL 60060 (hereafter referred to as “MEDLINE”). Each of HEMOSENSE and MEDLINE are referred to in this Agreement as a
“PARTY” and collectively as the “PARTIES.” 
  
 WITNESSETH:

  
 WHEREAS, HEMOSENSE is engaged in the business of manufacturing and
marketing PT Diagnostic products, which include but are not limited to the instrumentation and reagents particularly identified on Exhibit A (which list of products shall, as amended by HEMOSENSE from time to time with 60 days’ advance written
notice to MEDLINE, and agreed to by MEDLINE, to be considered the “PRODUCTS” under this Agreement); 
  
 WHEREAS, MEDLINE is engaged in the business of providing health care products, including instrumentation and reagents designed for testing various blood analytes, and desires to distribute and market the devices and
related test supplies subject to the conditions set forth herein; 
  
 WHEREAS,
MEDLINE and HEMOSENSE are currently parties to those certain Meter Supply Agreements between MEDLINE and HEMOSENSE for the acquisition of Products by Customers, which arrangements include pricing commitments by HEMOSENSE and usage commitments by
MEDLINE, all in accordance with the provisions of this agreement. 
  
 NOW,
THEREFORE, in consideration of the premises hereof and the mutual covenants and conditions hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending
to be legally bound, hereby agree as follows: 
  
 ARTICLE 1 – APPOINTMENT

  

	1.1	HEMOSENSE hereby appoints and MEDLINE and MEDLINE hereby accepts appointment as the exclusive distributor of the Products to [***], home-health-care, free-standing-nursing-home-care
facilities, [***], (collectively, “CHANNEL END USERS”) in the markets listed on Exhibit B (the “TERRITORY”), commencing on the EFFECTIVE DATE. Medline will not distribute or sell competitive POC anticoagulation products for the
term of this agreement. 

  

	1.2	MEDLINE’s authority under this Agreement is limited to distributing Products directly to its Channel End Users within the Territory. MEDLINE shall not advertise market or
solicit orders within the Territory from customers or potential customer other than Channel End Users, or outside the Territory from any customers or potential customers, without HEMOSENSE’s prior consent. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 1	 	 

	1.3	MEDLINE will have the exclusive right to distribute the Products to Channel End Users in the Territory; provided that nothing in this Agreement restricts HEMOSENSE from marketing,
selling, and otherwise distributing Products, directly or indirectly, to Channel End Users outside the Territory, or to other customers within the Territory. Hemosense represents that it has not made, and will not make, any appointment or grant of
rights inconsistent with the grants/appointment of Medline in this Section 1. 

  

	1.4	During the term of this Agreement, MEDLINE shall meet the Minimum Unit Sales as delineated in Exhibit C attached hereto. Further, the Parties hereby agree that to the Minimum Unit
Sales and Pricing for Meters and Strips (the “Minimums”) as delineated in Exhibit B +C. In the event Medline fails to satisfy any Minimums under this Agreement, HEMOSENSE’s sole remedy will be to either terminate this Agreement, or
terminate the grant of exclusivity to Medline in Section 1.3. Under no circumstances or theory will Medline be liable to HEMOSENSE for damages relating to any failure of Medline to satisfy any Minimum. For purposed of determining compliance with the
year 1 minimum as provided in exhibit C, “year 1” shall encompass the first 18 months of this agreement, “year 2” shall encompass the next successive 12 months, and “year 3” the last 12 months of the 31⁄2 year term .
The first 6 months of year 1 will serve as a trial period for determining whether the annual Minimums are feasible and appropriate or require adjustment. Adjustments to Minimums shall be by agreement of the parties and made within 60 days of the
expiration of the sixth month of year 1; in the event the parties cannot reach agreement on Minimum adjustments, then either party may terminate this Agreement on 90 days written notice. 

  
 ARTICLE 2 – TERMS OF AGREEMENT 
  

	2.1	The initial term of this Agreement shall commence on the Effective Date and remain in effect until three and a half (3 1/2) years thereafter. This Agreement may be renewed for additional one year periods by written agreement of the Parties prior to the date on which the
Agreement would otherwise expire. In the event MEDLINE satisfies the Exhibit C minimums in each of the three contract years, unless declined by Medline, the parties shall negotiate in good faith for successive one year periods 90 days before the
original agreement expires. If he parties are (a) unable to reach agreement on the minimums, and/or (b) do not execute an amendment to this agreement that includes additional years (i) Medline exclusive rights shall immediately convert to
non-exclusive distribution rights. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 2	 	 

	2.2	No modification of this Agreement is effective or binding unless in writing and signed by the Parties. This Agreement consists of 15 pages, including exhibits.

  

	2.3	MEDLINE has no authority or right, either legal or apparent, expressed or implied, to bind HEMOSENSE in any contractual, financial, or legal obligation. 

  

	2.4	Both Parties agree to hold harmless, defend and indemnify the other for any liability, loss, expense or damage sustained by the resulting from the indemnifying party’s breach
of this Agreement. 

  

	2.5	HEMOSENSE covenants and agrees that it will not circumvent MEDLINE and appoint, without MEDLINE’s consent, a third-party distributor of the Products within the Territory during
this Agreement’s term, unless the grant of exclusivity to MEDLINE is terminated under Section 1.4. 

  
 ARTICLE 3 – OBLIGATIONS OF MEDLINE 
  

	3.0	MEDLINE shall use diligent efforts to launch, advertise, promote, market and distribute the Products to Channel End Users in the Territory. 

  

	3.2	MEDLINE will develop adequate numbers of suitably qualified personnel as well as suitable equipment and infrastructure for efficient Distribution, sale, and other services related
to the Products throughout the Territory. 

  

	3.3	The MEDLINE will inform the HEMOSENSE in a timely basis of any claims, complaints, adverse events or deficiencies concerning the Products in the Territory and shall provide
reasonable assistance to HEMOSENSE in handling such claims and events. 

  

	3.4	At MEDLINE’s discretion MEDLINE will maintain stock of all the Products at an appropriate level having regard to the monthly sales thereof in the Territory.

  

	3.5	MEDLINE will provide monthly sales tracings reports to HEMOSENSE that will include account name, location, product shipped and monthly sales volume. This information will be
provided by the 15th of the month after the previous month’s sales. HEMOSENSE understands that this information
is confidential and is the property of Medline. 

  

	3.6	MEDLINE shall provide HEMOSENSE with advance copies of any promotional, advertising and educational materials that MEDLINE intends to use in connection with the Products. MEDLINE
shall not commercially release any such materials without HEMOSENSE’s prior approval, which approval HEMOSENSE shall not, after a 30-day review period, unreasonably withhold. 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 3	 	 

 ARTICLE 4 – OBLIGATIONS OF HEMOSENSE 
  

	4.1	At its sole discretion, HEMOSENSE shall implement changes to the products or develop new products. Notification of changes in product will be submitted to Medline in writing at a
minimum of 60 days prior to the change 

  

	4.2	HEMOSENSE will maintain stocks of all the Products at an appropriate level having regard to the monthly sales thereof in the Territory. HEMOSENSE will inform MEDLINE of the
available stock of the Products and will provide MEDLINE a daily feedback on product deliveries e.g. order confirmation including availability of product and shipping schedules within [***] of receipt of the order. 

  

	4.3	HEMOSENSE will use good faith commercial efforts to process and ship all Orders in accordance with requested delivery dates. 

  

	4.4	HEMOSENSE will determine, in its sole discretion, the shipping origin of the Product, without MEDLINE incurring any extra cost by reason of such choice. The shipping confirmation
will be provided to MEDLINE by fax and/or by e-mail. HEMOSENSE will ship Products with no less than [***] months shelf life remaining on those Products for the first three months of the Agreement, but [***] months minimum for the remainder of the
Agreement, to fulfill the terms of this Agreement. 

  

	4.5	HEMOSENSE will provide to MEDLINE a reasonable level of product support and marketing support including product training in demonstration and use of the Products. HEMOSENSE will
also supply MEDLINE with price lists, literature and support materials, advertising and support of sales programs, as well as after sales service and technical support. 

  
 ARTICLE 5 – RECORD KEEPING 
  

	5.1	MEDLINE shall track and record a reasonable level of traceable detail of Product sold to MEDLINE’s Channel End-User customers. These records will include, but not be limited to
customer name, address, product # detail, & quantity, MEDLINE agrees to maintain these records during the Term of the Agreement and to supply them monthly to HemoSense. 

  

	5.2	The PARTIES agree to meet no less than twice yearly to review their mutual business. These reviews will be conducted in an agreed upon location. 

  
 ARTICLE 6 – CONFIDENTIALITY 
  

	6.1	For the purposes of this Article 6, the term “Confidential Information” shall be any information embodying a whole or any portion or phase of any business, scientific or
technical information, design, process, procedure, formula, improvement, concept, idea, technique, know-how, market data, and accounting data which: 

  

	 	(a)	is disclosed by one Party hereto to the other; 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 4	 	 

	 	(b)	is claimed by the disclosing Party to be secret, confidential, and proprietary to the disclosing Party; and 

  

	 	(c)	either: 

  

	 	(i)	is marked by the disclosing Party as “confidential” or “proprietary” (or with some similar designation) at the time of disclosure, or 

 

	 	(ii)	with respect to orally-disclosed information, the disclosing Party notifies the other Party of the confidential nature of such information, in writing at the time of disclosure or
within a reasonable time thereafter. 

  

	6.2	During the period this Agreement remains in effect and for a period of two (2) years following termination thereof, each Party (except as is explicitly otherwise required hereby)
shall keep confidential, shall not use for itself or the benefit of others, and shall not copy or allow to be copied, in whole or in part, any Confidential Information disclosed to such Party by the other. Except for information supplied in Section
5.1. 

  

	6.3	The obligations of confidentiality imposed upon the Parties by the foregoing Paragraph shall not apply with respect to any alleged Confidential Information which:

  

	 	(a)	is known to the recipient thereof prior to receipt thereof from the other Party hereto; 

  

	 	(b)	is disclosed to said recipient after the day hereof by a third party who has the right to make such disclosure; or 

  

	 	(c)	is or becomes a part of the public domain through no fault of said recipient 

  

	 	(d)	is disclosed by disclosing Party to any third Party on an unrestricted or non-confidential basis. 

  
 ARTICLE 7 – OWNERSHIP OF PROPOSED SERVICES AND RESULTS 
  
 Nothing herein shall, or is intended to, grant, assign, or transfer, or shall be construed as granting, assigning, or transferring to
HEMOSENSE or MEDLINE, INC any and all right, title, and interest of each others technical and business information, commercial practices and procedures, processes, designs and specifications, and computer software 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 5	 	 

 
including, without specifications, the know-how, copyright, or other intellectual property that both have developed or acquired, or shall develop to acquire
in the future, in the operation of their respective business. 
  
 ARTICLE 8
– TRANSFER 
  
 This Agreement may not be assigned by either Party,
except with the written consent of the other Party hereto. This written consent will not be unreasonably withheld by either Party. Notwithstanding the forgoing, HEMOSENSE may transfer or assign this Agreement to a successor of all or substantially
all of it’s business or assets in connection with a merger, asset sale or the like. Subject to the foregoing, this Agreement shall inure to the benefit of and be binding upon each of the Parties hereto and their respective heirs, successors,
and permitted assigns. 
  
 ARTICLE 9 – WARRANTIES AND RETURNS

  

	9.1	HEMOSENSE warrants that the Products (a) are free from any and all defects, including but not limited to defects in design, manufacturing, labeling, packaging and warnings, (b)
conform to all applicable specifications, and (c) perform and have the characteristics and functionality as set forth in the standard end-user Product documentation that accompanies the Products when shipped from HEMOSENSE to MEDLINE. Hemosense
further warrants that the products are free of all liens and encumbrances and do not infringe any intellectual property rights of any third parties. EXCEPT FOR THE FOREGOING WARRANTIES, HEMOSENSE PROVIDES NO OTHER WARRANTY, EXPRESS OR IMPLIED, AND
SPECIFICALLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THE PRODUCT. 

  

	9.2	In the event any of the Products are the subject of a recall, MEDLINE shall notify its Customers who purchased recalled Products of the recall. HEMOSENSE shall credit MEDLINE for
recalled Products, pay all out of pocket related to the recall including but not limited to the shipping costs for the return to HEMOSENSE of recalled Products from MEDLINE and/or Customers, and reimburse MEDLINE. 

  
 ARTICLE 10 – PRICING 
  
 MEDLINE shall pay to HEMOSENSE the prices identified on Exhibit B for the Products. These
prices are firm for the initial term of the Agreement, unless either Party can demonstrate a [***]% change (+/-) in the market price for products that compete with the Products in any of the customer segments encompassed within Medline’s
exclusivity. This price change would be demonstrated and confirmed via the CPI index for All Urban Consumers for US Medical Care. In the case of such a change, the Parties shall negotiate an equitable adjustment to the prices; in the event the
Parties are unable to agree to such an adjustment, the Parties shall either abide by the existing prices, or either Party shall have the right to terminate this Agreement on 180 days notice. If price increases are agreed to, then the minimums in
Exhibit C will be equitably adjusted by agreement of both parties, 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 6	 	 

 ARTICLE 11 – SHIPPING 
  

	11.1	MEDLINE shall submit written purchase orders with a requested delivery date. The requested delivery date shall be the intended shipment date by HEMOSENSE unless otherwise specified
therein. HEMOSENSE shall not be responsible to MEDLINE or any of the MEDLINE’s accounts for any loss, damage, detention, or delay in shipment resulting from fire, strikes, lockouts, embargoes, insurrection of riots, civil or military authority,
acts of God, or any other forced majure event. 

  

	11.2	All prices are F.O.B, Destination designated shipping facility. HEMOSENSE shall package the products in accordance with accepted, standard commercial practices for a normal shipment
considering the type of item involved and normal risks encountered in shipment. Risk of loss entitled to all products shall pass to MEDLINE F.O.B., Destination designated shipping facility, unless otherwise specifically agreed to in writing by
HEMOSENSE in advance. 

  

	11.3	MEDLINE shall inspect all Products upon receiving it, and may reject any item that fails to conform to the then-current specifications. To reject Product, MEDLINE shall, within five
business days after Product receipt, notify HEMOSENSE in writing of the reason(s) for its rejection and request a return material authorization (“RMA”) number. Within ten business days after receiving the RMA number, MEDLINE
shall return the rejected Product to HEMOSENSE’s designated return facility, freight collect and properly insured, in its original shipping carton with the RMA number displayed on the outside of the carton. If HEMOSENSE confirms the defect,
HEMOSENSE shall, at HEMOSENSE’s option and expense, either repair or replace the Product, and pay the shipping charges for the delivery of the repaired or replacement Product to MEDLINE 

  
 ARTICLE 12 – PAYMENT TERMS 
  
 All invoice balances for products shipped are due within thirty (30) days after the date of
the invoice. All prices are exclusive to any sales use, property or similar taxes, whether federal, state, local, or foreign. 
  
 ARTICLE 13 – FORECASTING AND ORDERING 
  

	13.1	By the 15th day of each quarter, MEDLINE shall provide HEMOSENSE with an updated rolling forecast for the next 12-month period. All forecasts will be categorically itemized by
Products, (e.g., projected monthly purchases of HemoSense INRatio Patient Kits or HemoSense INRatio Test Strips). Forecasts do not bind MEDLINE, but represent MEDLINE’s best, good faith estimates of its anticipated Product orders.

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 7	 	 

	13.2	MEDLINE may order Product only through purchase orders, each of which shall (i) be provided in a form and delivered by a means mutually agreed upon by the Parties (e.g., written,
delivered by fax, e-mail or EDI), (ii) sent to HEMOSENSE at such address as HEMOSENSE may designate, (iii) request a delivery date during the term of this Agreement, and (iv) at least specify quantities that meet HEMOSENSE’s minimum order
amounts. Notwithstanding anything to the contrary set forth in this Agreement, no order is binding until accepted by HEMOSENSE in writing. 

  
 ARTICLE 14 – INDEPENDENT CONTRACTOR 
  

	14.1	In performing the services the MEDLINE shall be an independent contractor and not an employee or agent of HEMOSENSE. 

  

	14.2	Competitive Circumstances. MEDLINE represents and warrants that the contract pricing provided by HEMOSENSE hereunder has been negotiated under circumstances which render the net
prices of Products competitive with net prices of competing products. This Agreement has been offered by HEMOSENSE, INC. in good faith to meet competition. 

  
 ARTICLE 15 – INDEMNIFICATION 
  

	15.1	Indemnification by HEMOSENSE. HEMOSENSE shall defend MEDLINE shareholders, officers, directors, employees, agents and representatives (“MEDLINE INDEMNITEES”) against any
and all third-party claims, causes of action, and suits (collectively, “Claims”) and shall indemnify and hold harmless the MEDLINE INDEMNITEES from and against any resultant costs and expenses (including reasonable attorney’s fees),
losses or liabilities which MEDLINE INDEMNITEES may be required to pay to third-parties, where the Claim alleges or arises by reason of: (i) any U.S. patent infringement or other violation of any proprietary right of any third party related to the
sale or destruction of any product, (ii) injury or death to persons or property caused by the Product or due to HEMOSENSE, INC.’s breach of this Agreement, unless such infringement, injury or death resulted from MEDLINE’s negligence or
willful misconduct; or (iii) any negligent act or omission on the part of HEMOSENSE, its employees, agents or representatives and which relate to HEMOSENSE’s performance hereunder. 

  

	15.2	Indemnification by MEDLINE. MEDLINE shall defend HEMOSENSE and its shareholders, officers, directors, employees, agents and representatives (“HEMOSENSE INDEMNITEES”) from
and against all third-party Claims and shall indemnify and hold harmless the HEMOSENSE INDEMNITEES from and against any costs and expenses (including reasonable attorney’s fees), losses or liabilities of any kind which the HEMOSENSE INDEMNITEES
may be required to pay to third parties, where the Claim arises by reason of any breach of this 

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 8	 	 

	 	 
Agreement by MEDLINE, or (ii) any modification of the Product other than by HEMOSENSE, or by the combination of the Product with MEDLINE products or other
products not supplied by HEMOSENSE. 

  

	15.3	Conditions of Indemnification. If any Party proposes to seek indemnification from another under the provisions of this Article 15, it shall notify the other Party promptly.
The indemnifying Party shall assume at its cost and expense, the sole defense of such claim or cause of action through counsel of its own choice. The indemnified Party shall cooperate fully with the other Party in the defense of such claims or
suits. No settlement or compromise shall be binding on a Party hereto without its prior written consent. Failure to provide such notice will not relieve indemnity obligation except to the extent adversely affected by failure to receive notice.

  
 Article 16 – ENTIRE AGREEMENT 
  
 This Agreement sets forth the entire Agreement and understanding between the Parties with
respect to the subject matter herein and supersedes all other prior and contemporaneous agreements, understanding, representations, and warranties, whether oral or written. This Agreement may not be amended, modified, or altered or any of its
provisions waived except in writing and signed by the authorized individual of the Party against whom enforcement is sought 
  
 ARTICLE 17 – COUNTERPARTS 
  
 This Agreement is executed in two (2) counterparts, each of which shall for all purposes be deemed an original. 
  
 ARTICLE 18 – GOVERNING LAW/JURISDICTION 
  
 All disputes arising in any matter out of or in relation to this Agreement shall be decided
in accordance with the laws of the State of California. 
  
 ARTICLE 19 –
SAVING CLAUSE 
  
 Any provision of this Agreement, which shall be, or shall
be determined to be, invalid shall be ineffective, but such invalidity shall not affect the remaining provisions hereof. 
  
 ARTICLE 20 – ARBITRATION 
  
 Any dispute arising out of this Agreement or with respect to the interpretation of any provision hereof shall be decided finally by arbitration held in San Francisco,
California or Chicago, Illinois in accordance with the rules of the American Arbitration Association applicable to commercial arbitrations. There shall be one (1) arbitrator. A decision of the arbitrators shall be final and non-appealable except as
provided in the rules of commercial arbitration. Each Party shall share equally the fees and expenses of the 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 9	 	 

 
American Arbitration Association and shall be responsible for their own legal costs. The agreement to arbitrate shall be specifically enforceable in a court
of competent jurisdiction, and any decision of the arbitrators may be entered as a judgment in and enforced by any court of competent jurisdiction. 
  
 ARTICLE 21 – TERMINATION 
  

	21.1	Either Party may terminate this Agreement upon ninety days written notice of a material breach by the other Party, (15 days in the case of non payments), if the breach is not cured
during that period. 

  

	21.2	This Agreement shall be deemed automatically terminated, in whole or in part, as appropriate, if the right to sell a Product is retracted, cancelled or withdrawn by the government
authorities (or any competent agency), or if either Party to the Agreement declares bankruptcy or otherwise becomes insolvent and unable to conduct normal business operations. 

  
 ARTICLE 22 – NOTICES 
  
 By signing, both Parties agree, in fact and principle, to the information presented above.
All notices given pursuant to this Agreement shall be sufficient if mailed, postage pre-paid, by certified or registered mail, addressed as follows: 
  

	 	(a)	if to HEMOSENSE, Attention: CEO 

  

	 	(b)	if to MEDLINE, Attention: President, Preferred HealthCare Division 

  
 In witness whereof, the Parties hereto have caused this Agreement to be executed by their duly authorized officer or representative as of the date first
written above. If the Parties hereby sign this Agreement in two (2) originals, it shall not affect the validity or the effective date. 
  
 ARTICLE 23 – LIMITATION OF LIABILITY 
  
 IN NO EVENT SHALL either party BE LIABLE FOR LOST PROFITS OR ANY CONSEQUENTIAL, SPECIAL, INCIDENTAL, OR INDIRECT DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY,
INCLUDING NEGLIGENCE, ARISING OUT OF THIS AGREEMENT, subject to indemnity article 15. IN NO EVENT SHALL THE LIABILITY OF HEMOSENSE FOR OTHER DAMAGES EXCEED THREE MILLION DOLLARS ($3,000,000), OR THE AGGREGATE AMOUNTS RECEIVED BY HEMOSENSE IN THE
PRIOR 12-MONTH PERIOD UNDER THIS AGREEMENT, WHICHEVER IS LESS. 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 10	 	 

			
	 Hunter Banks

	  	 /s/ Timothy I. Still

	Name	  	Name
		
	 President, Preferred Healthcare

	  	 EVP Sales & Marketing

	Title	  	Title
		
	WITNESS:	  	WITNESS:
		
	 /s/ Illegible

	  	 /s/ Illegible

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 11	 	 

 Exhibit A 
  

Products 
  
 The following in vitro diagnostics and ancillary supplies manufactured or labeled BY HEMOSENSE: 
  

	
	Product Description
	
	 Professional Kit
 Includes:
 1 INRatio Meter
 1 Power Supply
 50 Sterile Lancets
 1 User’s Guide
 1 Quick Reference Guide
 1 Training Video

	
	 Patient Self-Test Kit
 Includes:
 1 INRatio Meter
 1 Users Guide
 1 Quick Reference Guide
 1 Patient Results Log
 1 Lancet Device
 12 Sterile Blood Lancets
 1 Starter Kit
 4 AA Batteries
 1 Carrying Tote

	
	 Test Strips
 Includes:
 12 INRatio Test Strips per Box

	
	 Test Strips – Bulk Pack
 Includes:
 48 INRatio Test Strips

	
	 Power Supply
 Includes:
 1 120V Power Supply

	
	 INRatio Printer
 Includes:
 1 Printer
 1 Printer Cable
 1 Power Supply
 1 Users Manual
 1 Roll of Paper

	
	Misc. Items
	
	Professional Users Guide
	Self Test Users Guide
	Train the Trainer Guide
	
	Carrying Tote
	 Patient Results Log
 Includes:
 3 patient logs

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 12	 	 

 Exhibit B 
  

Permitted Distribution Territory, Market Segments, Sales Channels 
  
 TERRITORY: 
 United States of America,

  
 Pricing 
  

							
	 Description: Product Name

	  	 Invoice
 Cost each

	  	 Suggested
 List Price

	 INRatio Professional Kit
	  	$	[***]	  	$	1,595.00
			
	 INRatio Patient Self-Test Kit
	  	$	[***]	  	$	1,995.00
			
	 INRatio Test Strips - Box of 12
	  	$	[***]	  	$	120.00
			
	 INRatio Test Strips - Bulk Pack of 48
	  	$	[***]	  	$	264.00
			
	 Power Supply
	  	$	[***]	  	$	20.00
			
	 Axiohm Printer
	  	$	[***]	  	$	350.00
			
	 Patient Results Log 3 Pack
	  	$	[***]	  	$	3.50

  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 13	 	 

 Exhibit C 
  

Sales Minimums 
  
 During the term of this Agreement, MEDLINE shall meet the Minimum Unit Sales as delineated below: 
  
 Meter Commitment in Year 1 
  
 [***] meters or $[***] 
  
 Meter Commitment in Year 2 
  
 [***]
meters or $[***] 
  
 Meter Commitment in Year 3 
  
 [***] meters or $[***] 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 14	 	 

 Exhibit D 
  

Billing and Shipping Addresses for the PARTIES 
  
 HemoSense Inc. 
 651 River Oaks Parkway 
 San Jose, CA 95134 
 P: 408 240 3808 
 F: 408 719 1184 
  

	***	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the Commission. 

  

					
	Confidential	 	Page 15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]