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Exhibit 10.09    
    

CONFIDENTIAL TREATMENT REQUESTED

EXCLUSIVE PATENT LICENSE AGREEMENT  

        This Exclusive Patent License Agreement ("Agreement") is entered
into as of this 17th day of August 2001 ("Effective Date"), by and between DEXCOM, INC., a California corporation with its principal place
of business at 6725 Mesa Ridge Road, Suite 100, San Diego, California, 92121 and any and all of it's Affiliates, collectively ("DexCom"), and  SM Technologies,
LLC, a Utah corporation with a corporate address at 3190 Chula Vista Circle, Salt Lake City, Utah, 84121 and any and all of it's
Affiliates, collectively ("SMTLLC"). 

        RECITALS

        Whereas, SMTLLC has discovered and developed certain know-how, methods and processing technologies relating to  [*****]; 

        Whereas, SMTLLC is also the exclusive owner of all right, title and interest in certain United States Patents and foreign filings of those
patents relating to [*****] compositions and methods for making them, which are listed in; 

        Whereas, DexCom is in the business of developing and distributing products related to diabetes treatment and management; and 

        Whereas, SMTLLC is willing to grant to DexCom and DexCom desires to acquire from SMTLLC, an exclusive, worldwide license under the SMTLLC
Technology and within the Field of Use, to practice SMTLLC Technology, and to make, have made, use and sell products incorporating such SMTLLC Technology in accordance with the terms hereinafter
specified. 

        Now Therefore, in consideration of the foregoing and the covenants and premises contained in this Agreement, the parties agree as follows: 

1.     Definitions.  

        All definitions below or elsewhere in, this Agreement shall apply to both the single or plural forms, as the context may require. The following terms when used
herein shall have the following meanings: 

 1.1 General  

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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        1.1.1 "Field of Use" means the field of diabetes treatment and  [*****]. 

        1.1.2 "Term" shall have the meaning set forth in Section 7.1. 

        1.1.3 "Affiliate" means any corporation, company business or entity that
directly or indirectly Owns, or is Owned by or is under common Ownership or control with, a party to this Agreement, where "Owns" or
"Ownership" means direct or indirect possession of at least 50% of the outstanding voting securities of a corporation or a comparable equity interest in
any other type of entity. 

        1.1.4 "Third Party" shall mean any person or entity other than DexCom,
SMTLLC, and their respective Affiliates. 

        1.1.5 "Confidential Information" means the specific terms or conditions of
this Agreement; further it shall mean any information either party receives from the other party that is designated in writing as "Proprietary" or "Confidential," whether documentary, oral, or, if
demonstrative is designated in writing by the disclosing party within three (3) months following disclosure as "Proprietary" or "Confidential" including all oral, written, or electronically
transmitted technical, business, financial, customer or other information, including without limitation, trade secrets, patents, techniques, know-how, processes, algorithms, software
programs, or information related to current, future or proposed products, services, or clients, information concerning research, development, employees, marketing or business plans or information
regarding Third Parties, which is identified by the Disclosing Party prior to disclosure as being confidential or proprietary. 

        1.1.6 "Invention" means any discovery, improvement or invention whether or
not patentable, and all related know-how, designs, formulae, processes, manufacturing techniques, trade secrets, ideas, or other copyrightable or patentable works. 

        1.1.7 "Intellectual Property Rights" means any and all patents, patent
applications, patent registrations, business processes, data rights, copyrights, trade names, trademarks, trade secrets, know-how, or any other intellectual property right, whether
registered or unregistered, arising or enforceable under U.S. law or the law of any other jurisdiction or international treaty regime. 

        1.1.8 "Valid Claim" shall mean a claim of an issued patent contained in the
SMTLLC Patents, which claim has not lapsed, been canceled, or become abandoned and which claim has not been declared invalid by an unreversed decision or judgment of a court of competent jurisdiction
from which no appeal has been or can be taken, and which has not been admitted to be invalid or unenforceable through reissue or disclaimer. 

        1.1.9 "Sold," "Sale," or
"Sell" means sold, leased or otherwise transferred or put into use; a sale shall be deemed to have occurred upon shipment, use or invoicing, whichever
shall occur first. Notwithstanding the foregoing, a transfer of a Licensed Product or a Reportable 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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Product
to a Third Party without consideration in connection with the development, testing, marketing, sampling, or promotion of such Licensed Product or Reportable Product shall not be deemed a Sale. 

        1.1.10 "Applicable Laws" means any laws, rules, regulations, guidelines or
guidance documents applicable to the manufacture of [*****]® Material, including cGMPs of the U.S. Federal Food and Drug Administration and the European Union, any
applicable environmental, health and safety laws relating to the manufacture of [*****]® Material, and any other laws, regulations or guidelines applicable to the
performance of this Agreement. 

        1.1.11 "cGMPs" means the current good manufacturing practices and quality
systems regulations promulgated by Regulatory Authorities, as amended from time to time. 

        1.1.12 "CMC" means the chemistry, manufacturing and controls section(s) and
data in a Regulatory Approval which specifies part or all of the following: the chemical composition of [*****]® Material, its components and the control and
manufacturing process for [*****]® Material, including any references to MAFs. 

        1.1.13 "MAF" means the set of documents referred to in Applicable Laws as
"Master File for Devices", to be filed with the U.S. Food and Drug Administration, and any applicable European equivalent, as updated from time to time,
which is required for some portion of the manufacture and testing of [*****]® Material for clinical use and commercial sale. 

        1.1.14 "Regulatory Approvals" means all marketing and production approvals,
and all other permits required for manufacturing and selling the [*****]® Material in a particular country. 

        1.1.15 "Regulatory Authority" means the competent government regulatory
authority responsible for granting the Regulatory Approvals in the applicable country or jurisdiction. 

 1.2 Products and Patents  

        1.2.1 "Licensed Products" means any implantable glucose sensing device and
associated interfaces (e.g., tissue attachment interface and/or bio sensing interface), developed, manufactured or sold by DexCom, its Affiliates or sublicensees, for use within the Field, which:
(a) when used, made, practiced or sold would, but for the license granted DexCom pursuant to this Agreement, constitute an infringement of a Valid Claim of any issued patent contained in the
SMTLLC Patents, (b) involves the use or practice of any process or other Invention that constitutes SMTLLC Know-How or SMTLLC Improvements. In the case of combination products or
"bundled" products involving multiple components, Licensed Products shall mean only those components of such combination or bundled products with respect to which the manufacture, use, sale, offer for
sale or import of such components would, but for the license granted hereunder by SMTLLC to DexCom, infringe a Valid Claim. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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        1.2.2 "Reportable Products" means any products, excluding Licensed Products,
developed, manufactured or sold by DexCom, its Affiliates or sublicensees, for use within the Field, which: (a) when used, made, practiced or sold would, but for the license granted DexCom
pursuant to this Agreement, constitute an infringement of a Valid Claim of any issued patent contained in the SMTLLC Patents in the countries in which such use, manufacture or sale occurs; and
(b) involves the use or practice of any process or other Invention that constitutes SMTLLC Know-How or SMTLLC Improvements. In the case of combination products or "bundled" products
involving multiple components, Reportable Products shall mean only those components of such combination or bundled products with respect to which the manufacture, use, sale, offer for sale or import
of such components would, but for the license granted hereunder by SMTLLC to DexCom, infringe a Valid Claim. 

 1.3 SMTLLC Technology  

        1.3.1 "SMTLLC Technology" means the SMTLLC Patents and/or the SMTLLC
Know-How. 

        1.3.2 "Licensed Patents" shall mean: 

	(a)
	United States Patent [*****], issued [*****], entitled [*****]
and

	(b)
	United States Patent [*****], issued [*****], entitled [*****]
and

	(c)
	United States Patent [*****], issued [*****], entitled [*****]
and

	(d)
	United States Patent [*****], issued [*****], entitled [*****]
and

	(e)
	United States Patent [*****], issued [*****], entitled [*****]
and

	(f)
	United States Patent [*****], issued [*****], entitled [*****]
and

	(g)
	United States Patent [*****], issued [*****], entitled [*****]
and

	(h)
	United States Patent [*****], issued [*****], entitled [*****]
and

	(i)
	United States Patent [*****], issued [*****], entitled [*****]. 

        1.3.3 "SMTLLC Patents" means: (i) the Licensed Patents listed in 1.3.2
above and any and all patents issuing therefrom or from any patent applications directly related to such Licensed Patents ("Licensed Applications"), such Licensed Applications including any patent
applications to which such Licensed Patents claim priority; (ii) any patents that issue at any time from patent applications filed before or after the Effective Date directly relating and/or
that claim priority to any of the Licensed Patents or Licensed Applications. "Licensed Patents" or "patents" as used herein shall include, without limitation, all substitutions, extensions, reissues, 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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renewals,
divisions, continuations, continuations-in-part, foreign counterpart patents, and inventors' certificates of the aforementioned. 

        1.3.4 "SMTLLC Know-How" means all knowledge,
know-how, trade secrets, manufacturing methods, and proprietary information owned by or under the control of SMTLLC (with the right to license or sublicense), which is: (i) not
covered by the SMTLLC Patents but is necessary or useful for the commercial exploitation of the subject matter of the SMTLLC Patents or the [*****]® Material;
(ii) not generally publicly known. Know-how will be described in manufacturing process documentation which is provided to DexCom by SMTLLC and confirmed in writing by DexCom as
received from SMTLLC and constituting SMTLLC Know-How. 

        1.3.5 "SMTLLC Improvements" means any Improvement that SMTLLC makes,
conceives or otherwise acquires during the Term of the Agreement, specifically related to the SMTLLC Patents. 

        1.4   "[*****]®  Material" means any [*****] (including, without limitation) the
 [*****]®, and/or [*****] and any
[*****] sheet(s) described in the SMTLLC Patents or SMTLLC Know-How, or manufactured by DexCom or SMTLLC under this
Agreement as of the Effective Date. 

        1.5   "Improvements" means any Inventions or know-how conceived,
reduced to practice or (in the case of unpatentable Inventions) made by one party, whether solely or jointly with a Third Party, relating to the function, composition or production of the
[*****]® Material or any other materials described in the SMTLLC Patents or SMTLLC Know-How. 

        1.6   "Sublicensing Revenues" means the gross revenues actually received by
DexCom from its sublicensees and allocable to the sublicensing of the SMTLLC Patents. Sublicensing Revenues excludes specifically any amounts received by DexCom from a sublicensee: (i) as
research and development funding or support payments; (ii) for the purchase of an equity interest in DexCom; (iii) as a loan to DexCom; or (iv) any advanced royalty payments,
options or other payments to DexCom that are refundable to such sublicensee (collectively, "Refundable Payments"), but only until such time as such
Refundable Payments become non-refundable. For the avoidance of doubt, Sublicensing Revenues shall not be deemed to include any amounts payable to DexCom in connection with DexCom's
exercise of its "have made" rights pursuant to Section 2.1. 

2.     License and Option.  

        2.1    Technology License.    On the terms and conditions set forth in this Agreement, SMTLLC hereby grants to DexCom
an exclusive (even as to SMTLLC), worldwide, royalty-bearing license, with the right to assign and grant sublicenses, under the SMTLLC Technology, to make or have made for its own use or use by
others, offer for sale, sell or import, lease and/or 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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otherwise
commercialize any and all Licensed Products and/or Reportable Products within the Field of Use. 

        2.2    Know-How License.    SMTLLC hereby grants to DexCom an exclusive (except as to SMTLLC),
fully-paid, royalty-bearing, worldwide license to use the SMTLLC Know-How to make or have made the [*****]® Material and incorporate the
[*****]® Material into Licensed Products and/or Reportable Products within its Field of Use. 

        2.3    SMTLLC Improvements.    During the Term, SMTLLC and it's Affiliates shall promptly disclose to DexCom in
writing any Improvements related directly to the SMTLLC Technology. Subject to DexCom's ownership of DexCom Improvements (defined below), SMTLLC shall retain sole and exclusive ownership of any SMTLLC
Improvements made solely and exclusively by SMTLLC including, without limitation, all Intellectual Property Rights therein. During the Term, any SMTLLC Improvements described in any patent application
shall be offered to DexCom for a one time fee of [*****] plus a [*****] a year maintenance fee with respect to each original such patent application
describing one or more of such SMTLLC Improvements and shall automatically be included in the SMTLLC Technology licensed "to DexCom under this Agreement, and any patent application or issued patent
describing or claiming such SMTLLC Improvement shall automatically be included within the SMTLLC Patents licensed to DexCom under this Agreement within its Field of Use without any additional payment
or compensation to SMTLLC. In addition, any SMTLLC Improvements not described in any patent application(s) shall automatically be deemed to be included in the SMTLLC Technology licensed to DexCom
under this Agreement without any additional payment or compensation to SMTLLC. 

        2.4    DexCom Improvements.    During the Term, DexCom shall promptly disclose to SMTLLC in writing any Improvement to
SMTLLC Technology that DexCom makes, conceives or otherwise acquires (collectively, "DexCom Improvements"). DexCom shall retain sole and exclusive
ownership of any and all Improvements created during the Term including, without limitation, all Intellectual Property Rights therein. 

        2.5    License Back.    DexCom shall grant SMTLLC a non-exclusive, royalty-bearing, worldwide license,
with the right to assign and grant sublicenses, to make, have made for its own use or use by others, offer for sale, sell or import any DexCom Improvements only outside the Field. There will be a
one-time fee of [*****] plus a [*****] per year maintenance fee for each patent or patent application licensed back to SMTLLC pursuant to
this Section 2.4 which describes or claims or more such DexCom
Improvements ("DexCom Improvement Patents"). In addition, SMTLLC shall pay to DexCom a royalty with respect to any products Sold by SMTLLC which would infringe a claim of any DexCom Improvement Patent
("SMTLLC Products") at the same rate as would be paid by DexCom pursuant to Section 4.2.1 with respect to Sales of Licensed Products ("SMTLLC Product Royalty"), calculated as a ratio equivalent
to the Running Royalty for DexCom (Section 4.2.1) divided by [*****] for a DexCom Licensed or Reportable Product for that same quarter. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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3.     Patent Prosecution and Enforcement.  

        3.1    Expenses.    During the Term of the Agreement, SMTLLC shall pay for the actual expenses related to maintenance
of SMTLLC Patents and DexCom shall pay for the actual expenses related to maintenance of DexCom Improvement Patents. 

 3.2 Infringement by Third Parties.  

        3.2.1    Notice of Third Party Infringement.    If DexCom becomes aware that any goods made, used, sold, offered for
sale or imported into any country by another, not party to this Agreement, which DexCom reasonably believes infringes any Valid Claim of the SMTLLC Patents, DexCom shall promptly notify SMTLLC in
writing describing the facts relating thereto in reasonable detail. If SMTLLC becomes aware that any goods made, used, sold, offered for sale or imported into any country by another, not party to this
Agreement, which SMTLLC reasonably believes infringes any Valid Claim of the SMTLLC Patents, SMTLLC shall promptly notify DexCom in writing describing the facts related thereto in reasonable detail. 

        3.2.2    Right to Sue.    If any third party shall, in the reasonable opinion of DexCom, which may be contested by
SMTLLC pursuant to the Arbitration provision herein, infringe any of the SMTLLC Patents within the Field of Use, the right of each party to "sue for such infringement shall be determined based on the
proportion of royalties paid by DexCom to SMTLLC to the total royalties paid by all licensees of the infringed SMTLLC Patent. If royalties paid by DexCom constitute [*****] or
more of the total royalties paid by all licensees of the infringed SMTLLC Patent, then DexCom shall have the sole right, but not the obligation, to bring an action or reach an agreement, at its
expense, to prevent any infringement of the SMTLLC Patents within the Field of Use. If royalties paid by DexCom constitute at least [*****], but less than
[*****], of the total royalties paid by all licensees of the infringed SMTLLC Patent, then SMTLLC shall have initial right to bring an action or reach an agreement, at its
expense, to prevent any infringement of the SMTLLC Patents within the Field of Use, and should SMTLLC not take appropriate and diligent action to prevent any infringement of SMTLLC Patents, then
DexCom shall have the right to bring an action or reach an agreement consistent with this Agreement, at its expense, to prevent any infringement of the SMTLLC Patents within the Field of Use. If
royalties paid by DexCom constitute less than [*****] of the total royalties paid by all licensees of the infringed SMTLLC Patent, then SMTLLC shall have sole right to bring an
action or reach an agreement, at its expense, to prevent any infringement of the SMTLLC Patents. If SMTLLC should not take appropriate and diligent action or reach an agreement at its expense to
prevent any infringement of the Licensed Products within the Field of Use, DexCom's Running Royalty will be reduced to [*****] of the rate as determined in
Section 4.2.1; provided, however, that SMTLLC shall have the right within its sole discretion, which may be unreasonably withheld, to promptly offer in writing to allow DexCom to bring a suit
to prevent infringement of any of the SMTLLC Patents within the Field of Use and such written offer shall prevent reduction of the rate of the Running Royalty regardless whether DexCom chooses to
bring such a suit. In connection with any suit brought by DexCom under 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

7

 

this
Section 3.2.2, DexCom may cause SMTLLC to be joined as a party Plaintiff in such action, and SMTLLC agrees to be so joined, at DexCom's expense. If not joined, SMTLLC shall have the right
to appear and represent its own interests in such action at its own expense. If SMTLLC is not joined and does not appear on its own behalf, DexCom shall nevertheless have an obligation to keep SMTLLC
advised regarding the proceedings. In connection with any suit brought by DexCom under this section, employees of SMTLLC and any Affiliates shall execute all papers necessary or desirable to effect
formal requirements, and shall testify, provide statements, or produce documents, whenever reasonably requested so to do by DexCom. DexCom agrees to reimburse SMTLLC for all reasonable expenses
related to activities requested by DexCom.. 

        3.2.3    Infringement of Third Party Patents.    In the event that DexCom becomes aware that the Sale of a Licensed
Product would, in the reasonable opinion of DexCom's patent counsel, infringe a valid patent right of a third party (excluding any Affiliate of DexCom) because of practicing one or more of the claimed
inventions of the SMTLLC Patents, DexCom will first use reasonable efforts to redesign such Licensed Product to avoid such infringement. If such redesign is impossible or unreasonable such that DexCom
is required to pay royalties to such third party ("Other Royalties") in order to offer such Licensed Product in commerce, the royalties payable by DexCom pursuant to Section 4.2 and 4.3 of this
Agreement may be reduced by up to [*****] to offset payments by DexCom of Other Royalties, but in no event will the royalties payable by DexCom to SMTLLC be reduced by more
than [*****] of the royalties otherwise due to SMTLLC for such Licensed Product. 

        3.2.4    Right to Defend.    SMTLLC shall give prompt written notice to DexCom if, during the term of the License,
SMTLLC becomes aware of any claim that any Licensed Product infringes a patent of a third party by reason of practicing one or more claims of.an SMTLLC Patent. DexCom shall have the right, but not the
obligation, to defend any suit brought by a third party for patent infringement, to bring a declaratory judgment action or reach an agreement, at its expense, to defend against any such claim of
infringement; provided however, that SMTLLC shall be fully apprised of all aspects of DexCom's defense if DexCom wishes to assert any right to decreased royalties to SMTLLC in the event of an adverse
judgment coupled with DexCom taking a license from the third party in order to continue to practice the features of the claims of the SMTLLC Patents involved in the infringement claim. If required by
law and paid for by DexCom, DexCom may cause SMTLLC to be joined as a party Plaintiff in such action, and SMTLLC agrees to be so joined. In connection with any such suit, employees of SMTLLC and any
affiliates shall execute all papers necessary or desirable to effect formal requirements, and shall testify, provide statements, or produce documents, whenever reasonably requested so to do by DexCom,
although DexCom shall reimburse SMTLLC for all expenses related to activities requested by DexCom. SMTLLC shall have the right to appear on its own behalf in any such suit, at its own expense. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

8

   4.     Royalties; Right of Accounting.  

        4.1    Minimum Advance Royalty.    During each year of the Term, DexCom will pay SMTLLC a minimum annual advance
royalty ("Minimum Royalty") in the amounts below: 

	Year
 
	 	Amount

	2001	 	$	80,000
	2002	 	$	76,000
	2003	 	$	76,000
	2004	 	$	101,000
	2005	 	$	116,000
	Each year thereafter	 	$	116,000

        4.2    Licensed Products Royalty.    

        4.2.1    Running Royalty.    In consideration for the license grant in Section 2.1, DexCom shall pay SMTLLC a
running royalty of [*****] per unit of Licensed Products Sold by DexCom and its sublicensees during the Term, to increase by [*****] per year beginning
[*****] months following commercialization of DexCom's first product utilizing SMTLLC Technology ("Running Royalty"). It is
anticipated that commercialization will occur by the end of [*****]. For the avoidance of doubt, this Running Royalty shall apply to all Licensed Products Sold by DexCom
worldwide. 

        4.2.2    Reportable Products Royalty.    As of the Effective Date, the parties mutually recognize that they do not
possess sufficient marketing and cost data relating to the type of Reportable Products likely to be produced for sale in order to be able to fix commercially realistic royalty rates. Accordingly, the
parties agree that the eventual royalty rate for Sales of Reportable Products by DexCom or its sublicensees during the Term shall not exceed [*****] per unit. For the avoidance
of doubt, this royalty shall apply to all Reportable Products Sold by DexCom worldwide. 

        4.3    Time of Payment.    The Minimum Royalty shall be paid quarterly on January 1, April 1,
July 1, and October 1 of each year, provided that, payment for the first [*****] quarters of 2001 shall be made on the Effective Date. During each calendar
quarter of the Term, the royalties arising under Section 4.1, 4.2 and 4.3 (collectively, "Quarterly Royalty") shall be paid by DexCom to SMTLLC
within forty-five (45) days after the end of each such calendar quarter. Prior to making payment to SMTLLC in connection with any Quarterly Royalty, DexCom shall first compute an
adjusted Quarterly Royalty by deducting the amount of the Minimum Royalty paid for the applicable calendar quarter from such Quarterly Royalty. DexCom's payment 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

9

 

obligation
to SMTLLC for such calendar quarter shall then be only be the positive amount, if any, of the adjusted Quarterly Royalty. 

        4.4    Reports.    Within forty-five (45) calendar days after the close of each calendar quarter
during the Term, DexCom will remit payment of the Quarterly Royalty due to the bank account designated by SMTLLC and DexCom shall furnish SMTLLC a written report providing: (a) all Sales of
Licensed Products during the preceding calendar quarter; (b) if applicable, all Sales of Reportable Products during the preceding calendar quarter; (c) the amount of royalties due for
the preceding calendar quarter pursuant to the provisions hereof; and (d) all Sublicensing Revenues received during the preceding calendar quarter. A report shall be submitted for each quarter
even in the absence of any Sales made, Sublicensing Revenues received, and/or Quarterly Royalties due in such quarter. The
correctness and completeness of each such report shall be attested to in writing by the responsible financial officer of DexCom or by DexCom's external auditor. With respect to royalties due from
sublicenses, attestation by DexCom may be that it has obtained from sublicensees' attestations complying with the preceding sentence. 

        4.5    Audit of DexCom.    DexCom will keep, and will cause its licensees and sublicensees to keep, complete and
accurate books of account in accordance with generally acceptable accounting principles pertaining to the sale of Licensed Products and Reportable Products in sufficient detail to permit SMTLLC to
confirm the accuracy of calculations of all payments hereunder. Such records will be maintained for a two (2) year period following the year in which any such payments were made. No more
frequently than on an annual basis, DexCom will permit an independent audit of its relevant financial and other records by SMTLLC for the sole purpose of verifying the accuracy of any and all payments
and reports required by this Agreement. Such audit shall be requested with reasonable prior written notice, conducted during normal business hours, and situated on the premises of DexCom. The audit
must be conducted in strict confidence and by an independent auditor reasonably acceptable to DexCom. The inspection of records shall be at SMTLLC's sole cost unless the inspector concludes that
royalties reported by DexCom for the period being audited are understated by five percent (5%) or more from actual royalties, in which case the reasonable cost of such inspection shall be paid by
DexCom. 

        4.6    Invalid or expired SMTLLC's Patents.    The Running Royalty shall be reduced by [*****]
each time that any of the eight (8) SMTLLC Patents listed in Section 1.3.2 (a)-(h) expires or is held to be unenforceable. At the time when the eight SMTLLC Patents hereto expire or are
held to be unenforceable, DexCom shall continue to pay [*****] of the Running Royalty for the license to the SMTLLC Know-how granted to DexCom by SMTLLC pursuant to
Section 2.2. 

        4.7    Third Party Technology.    If DexCom makes payment greater than [*****] of the
applicable [*****] Selling Price of a Reportable Product or the Sale price of a Licensed Product, to one or more Third Parties under patents, patent applications or
know-how which DexCom reasonably believes in any way relates to the particular Reportable Product or Licensed 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

10

 

Product
or the use thereof, and if the total royalty which DexCom is obligated to pay to all such Third Parties and to SMTLLC ("Aggregate Royalty") with
respect to each such Reportable Product or Licensed Product exceeds the Running Royalty as defined in section 4.2.1, the royalties otherwise owed
by DexCom pursuant to Section 4.1 and 4.3 shall be subject to reduction. Such reduction shall be equal to that portion of the Aggregate Royalty which is in excess of the  Running Royalty.
Notwithstanding the foregoing, in no event shall the amount owed by DexCom pursuant to Section 4.1 and 4.3 be reduced in
accordance with this Section 4.9 to less than [*****] for any such Reportable Product or Licensed Product. Such reduction shall be subject to receipt by SMTLLC from
DexCom of adequate evidence of DexCom's royalty obligation to such Third Parties, including where possible the identity of such Third Parties. SMTLLC shall treat all such information presented to
SMTLLC under this Section 4.9 as confidential subject to the provisions of Section 5 below. 

        4.8    SMTLLC Product Royalty.    SMTLLC shall pay the SMTLLC Product Royalty (Section 2.4) on a quarterly
basis and accompanied by a written report providing pertinent details of all Sales of SMTLLC Products during the quarter. The correctness and completeness of each such report shall be attested to in
writing by the responsible financial officer of SMTLLC or by SMTLLC's external auditor. With respect to royalties due from sublicenses, attestation by SMTLLC may be that it has obtained from
sublicensees' attestations complying with the preceding sentence. 

        4.9    Audit of SMTLLC.    SMTLLC will keep, and will cause its sublicensees to keep, complete and accurate books of
account in accordance with generally acceptable accounting principles pertaining to the sale of SMTLLC Products in sufficient detail to permit DexCom to confirm the accuracy of calculations of all
payments under Section 4.10. Such records will be maintained for a two (2) year period following the year in which any such payments were made. No more frequently than on an annual
basis, SMTLLC will permit an independent audit of its relevant financial and other records by DexCom for the sole purpose of verifying the accuracy of any and all payments and reports required by this
Agreement. Such audit shall be requested with reasonable prior written notice, conducted during normal business hours, and situated on the premises of SMTLLC. The audit must be conducted in strict
confidence and by an independent auditor reasonably acceptable to SMTLLC. The inspection of records shall be at DexCom's sole cost unless the inspector concludes that royalties reported by SMTLLC for
the period being audited are understated by [*****] or more from actual royalties, in which case the reasonable cost of such inspection shall be paid by SMTLLC. 

5.     Confidentiality.  

        5.1    Non-Disclosure.    Each party receiving Confidential Information
("Recipient") from the other party ("Disclosing Party") acknowledges that the Confidential Information
constitutes valuable trade secrets of the Disclosing Party and that the Disclosing Party or its licensors owns all rights, title, interest and Intellectual Property Rights therein. Recipient shall not
use any Confidential Information for any purpose whatsoever, whether for its own benefit or 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

11

 

the
benefit of any Third Party, other than as contemplated in this Agreement. Recipient shall only allow access to the Confidential Information on a need-to-know basis to its
employees who previously contractually agree to abide by the restrictions herein (collectively, "Authorized Personnel"). Any breach by any Authorized
Personnel of their obligations under such confidentiality agreements shall also constitute a breach by Recipient under this Agreement. Recipient shall promptly notify the Disclosing Party in writing
in the event of any loss or unauthorized disclosure of Confidential Information, or other breach of this Section 5. 

        5.2    Standards of Care.    Each party shall use at least the same degree of care to avoid inadvertent disclosure or
unauthorized use of the other party's Confidential Information which it employs with respect to it own proprietary or confidential information which it does not wish to have disseminated, published or
disclosed, but in no event less than a reasonable degree of care. 

        5.3    Exceptions.    The obligations of the parties hereunder shall not apply to any Confidential Information which
Recipient can demonstrate: 

        (a)   is now, or hereafter becomes, through no act or failure to act on the part of the Recipient party or Affiliated company
the recipient party, in the public domain; 

        (b)   is known by the Recipient party or any Affiliated company of the Recipient party prior to receiving such Information; 

        (c)   is independently developed by the Recipient party or Affiliated company of the Recipient party without use of or
reference to the Confidential Information; or 

        (d)   is received from a Third Party without breach of the restrictions contained in this Agreement 

        (e)   is the subject of a prior written permission to disclose provided by the Disclosing Party. 

        (f)    is transmitted after the Term of this Agreement. 

        5.3.1 The burden of proof for situations (a), (b), (c) and (d) of Section 5.3 shall rest upon the
receiving party and shall require clear and convincing evidence. 

        5.3.2 If knowledge of Confidential Information is obtained through (a), (b), (c), and/or (d) of Section 5.3,
the Recipient will make known to the Disclosing Party that the Recipient has obtained the Confidential Information elsewhere, and may not reveal to any Third Party that the Disclosing Party also knows
this information, or that there is a relationship between the Recipient and the Disclosing Party, without prior written permission of the Disclosing Party. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

12

 

        5.4   Notwithstanding any other provision of this Agreement, disclosure of Confidential Information shall not be precluded if
such disclosure: (a) is in response to a valid order of a court or other governmental body, provided, however, that the responding party shall first have given notice to the other party hereto
in order that such other party may obtain a protective order requiring that the Confidential Information so disclosed be used only for the purpose for which the order was issued and the responding
party uses reasonable efforts to have such information treated as confidential and under seal; (b) is necessary in filing or prosecuting patent applications; (c) is otherwise required by
law; or (d) is otherwise necessary to establish rights or enforce obligations under this Agreement, but only to the extent that any such disclosure is necessary. Compulsory disclosure to a
court or governmental agency shall not act to relieve the party subject to the compulsory disclosure from any obligation to avoid further disclosure of any Confidential Information subject to such
compulsory disclosure. 

6.     Assistance.  

        6.1    Technical Assistance Provided by SMTLLC.    During the Term, upon written request from DexCom, SMTLLC shall
provide, at [*****], reasonable amounts of technical assistance in response to DexCom's questions or difficulties related to the SMTLLC Technology. 

        6.1.1 Such technical assistance shall be provided by SMTLLC at DexCom's facility in San Diego or other specified location for
up to a total of [*****] days per calendar year for two years starting January 2001, during the technology transfer period. DexCom shall reimburse SMTLLC for its
reasonable coach class travel and living expenses for technical assistance rendered at DexCom's facility in San Diego, California, or any other location outside of SMTLLC's facility. SMTLLC shall
submit receipts to DexCom for all such expenses and DexCom will provide reimbursement for such expenses within thirty (30) days of delivery thereof 

        (a)   SMTLLC shall provide reasonable assistance and cooperation to DexCom in relation to any regulatory filings made, or
approvals sought, by DexCom. 

        (b)   SMTLLC shall provide access to SMTLLC's MAF relating to the [*****]® Material, under
the FDA procedures for MAF's on subject matters. 

        (c)   SMTLLC will reasonably assist DexCom with its establishment and implementation of processes for independent manufacture
of the [*****]® Material. 

        (d)   If DexCom requests, or if SMTLLC determines that specific data obtained by one SMT licensee may be of value to another
licensee, then SMTLLC will first confidentially see if both parties may be willing to be introduced. Only after bilateral agreement to this introduction will SMTLLC provide the names of the Licensee
and the contact person to initiate their independent negotiations for that data. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

13

 

        (e)   For SMTLLC consultation services unrelated to the SMTLLC Technology, the parties shall in good faith negotiate a separate
consultation agreement. 

        (f)    For [*****] manufacturing services, the parties shall in good faith negotiate a separate
agreement, as necessary, where the following parameters have been identified and agreed upon by both parties: 

        (i)    Manufacturing.    Establishing traceable manufacturing for material used in animal and human studies. DexCom
shall assist [*****] in establishing parameters of control for manufacturing [*****]®, including: 

        (1)   Raw material sourcing 

        (2)   Quality control specifications 

        (3)   Manufacturing documentation 

        (ii)   Manufacturing Changes.    [*****] agrees to advise DexCom of any proposed material,
manufacturing site, process or specification changes, or any process or specification deviations occurring during the manufacturing of [*****]® Material, and that
all such changes must be approved by DexCom in writing prior to their implementation by [*****]. 

        (iii) Interim Sales.    Until DexCom is able to become fully operational with regard to manufacturing the
[*****]® Material, agrees to sell [*****]'s [*****]® to DexCom at a cost of
[*****] per square inch to DexCom's specifications manufactured with [*****]. [*****] shall deliver the
[*****]® using an insured overnight shipping service to DexCom's facility in San Diego, California or other location specified by DexCom.
[*****] agrees to continue to provide material to DexCom for up to [*****] after the Effective Date of this Agreement. 

        (iv)  Factory Audit.    [*****] shall permit DexCom to inspect
[*****] manufacturing facilities to the extent required by applicable law, rule or regulation. Such inspection shall be requested with reasonable prior written notice,
conducted during normal business hours, and be at the sole expense of DexCom 

        (v)   Indemnification for Product Liability by DexCom.    DexCom shall indemnify hold harmless and defend
[*****] its Affiliates, employees, officers, directors and agents, from any
and all against any and all claims, suits, losses, damages, costs, fees expenses (including, without limitation, reasonable attorneys' fees), demands, actions and causes of action resulting from or
arising out of DexCom's practice or use of the [*****] Technology, manufacture of the [*****]® Material or implantation or removal of the
Licensed Products or the Reportable Products, for the death or bodily injury incurred by or rendered against [*****] arising from the testing or use of an Licensed Product or
Reportable Products by 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

14

 

DexCom,
provided that [*****] shall give notice as soon as practical of any claims, demands, actions and causes of action against [*****] for which
DexCom may be obliged to indemnify hold harmless and defend [*****] and that [*****] shall have the right to participate in any compromise, settlement
and defense thereof. 

        6.2    Technical Assistance Provided by DexCom.    During the Term, DexCom shall make available to SMTLLC certain
technical data specifically related to the performance of [*****]® Technology including: 

        6.2.1 Such technical assistance shall be provided by DexCom at DexCom's facility in San Diego and any expense relating to
that transfer of data will be borne by SMTLLC, if SMTLLC requested transfer of the data. 

        (a)   Summary technical data about specific performance or comparative [*****]® materials
regarding physiologic sensor testing, will be provided visually and verbally to SMTLLC, but not necessarily reduced into written form. This data is to fall strictly under the
Non-Disclosure provisions of this Agreement and is only to be used by SMTLLC for understanding and optimizing the performance of [*****]® Technology
products outside the Field of Use, and without ever referencing the data, how the data was obtained, or from whom the data was obtained. 

        (b)   Data not related to physiologic sensor testing, such as tissue biocompatability, tissue toxicity testing, short or
long-term animal testing, tissue-
[*****]® material peel testing, histology, bacterial bioburden of [*****] parts, which is obtained as part of DexCom's regulatory and
developmental processes, will be provided to SMTLLC visually and verbally, as it becomes available. It is agreed by DexCom, that this data will be placed confidentially into SMTLLC's and/or
[*****]'s MAF. In addition, this data will be generally summarized into a form that may be used in the Table of Contents listing and Subject Matter Listings, for the SMTLLC
and/or the [*****] MAF. 

        (c)   Data that is obtained by DexCom and publicly published that is specifically related to the performance of
[*****]® Material in animals and humans will be provided to SMT and [*****] and can thereafter be placed into the SMTLLC and/or
[*****] MAF. 

7.     Term and Termination.  

        7.1    Term.    The term of this Agreement will begin on the Effective Date and will continue until
[*****], unless sooner terminated pursuant to Section 7.2 or 7.3 ("Term"). 

        7.2    Termination by DexCom.    

        7.2.1    For Convenience.    DexCom will have the right to terminate this Agreement, for any reason or no reason, upon
[*****] prior written notice. In the event of such 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

15

 

termination,
DexCom will pay SMTLLC all accrued payments due SMTLLC through the termination date. 

        7.2.2    For Cause.    DexCom will have the right to terminate this Agreement, in addition to pursuing any remedies
available under law or in equity, upon [*****] days prior written notice to SMTLLC if SMTLLC is in breach of this Agreement unless SMTLLC cures the breach before expiration of
the [*****] day period (unless any such breach is not curable within [*****] days and SMTLLC is proceeding forward to use diligent and continuing
efforts to pure such breach); provided, however, in the event of any such breach for which DexCom elects not to terminate this Agreement, DexCom may elect to continue this Agreement while pursuing its
legal remedies, including the receipt of damages related to such breach. 

        7.3    Termination by SMTLLC.    SMTLLC will have the right to terminate this Agreement, in addition to pursuing any
remedies available under law or in equity, upon [*****] days prior written notice to DexCom if DexCom is in breach of this Agreement (unless any such breach is not curable
within [*****] days and DexCom is proceeding forward to use diligent and continuing efforts to cure such breach). Notwithstanding the foregoing, in the event of nonpayment of
any amounts due hereunder, the time frames set forth above shall be reduced to [*****] days after written notice to DexCom, provided, however, that such time shall be extended
during any such period in which DexCom is attempting to resolve any dispute over the payment obligation or amount in good faith. In the event of a dispute resulting in Arbitration or Litigation, such
a dispute does not relieve DexCom of continued payments due under this Agreement. 

        7.4    Effect of Termination or Expiration.    

        7.4.1 Upon the expiration of this Agreement, or the termination of this Agreement by DexCom under Section 7.2.1 or by
SMTLLC under Section 7.3, any licenses granted to SMTLLC pursuant to Section 2.4 shall continue, all licenses granted to DexCom hereunder shall be immediately terminated. DexCom shall
return to SMTLLC all embodiments of the SMTLLC Technology, and all payment obligations hereunder, except those incurred before the effective date of expiration or termination, shall cease. Upon
termination of this Agreement by DexCom under Section 7.2.1 or by SMTLLC under Section 7.3, any sublicensee of DexCom shall automatically become a direct licensee of SMTLLC with respect
to the rights originally sublicensed to it by DexCom under the SMTLLC Patents, provided such sublicensee did not cause the termination of this Agreement, and such sublicensee agrees to comply with all
of the terms of this Agreement and assume the responsibilities of DexCom hereunder. 

        7.4.2 Upon termination of this Agreement by DexCom under Section 7.2.2, for breach by SMTLLC of Representations and
Warranties (Section 9.1, 9.2.2), DexCom shall have a worldwide, paid-up, royalty-free, perpetual and non-exclusive license under the SMTLLC Technology to
make, have made, use, sell, and import Licensed Products and Reportable Products. In addition, SMTLLC shall return any and all Confidential Information of DexCom in 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

16

 

its
possession at the time of termination. If, prior to such termination, DexCom has exercised its option under Section 2.3, then the license granted in the preceding sentence shall extend to
Future Products. 

        7.4.3 Upon the termination or expiration of this Agreement for any reason other than under Section 7.2.2, each party
shall return any and all Confidential Information of the other party in its possession at the time of such termination or expiration. Termination or expiration of this Agreement shall not relieve the
parties of any obligation accruing prior to such termination or expiration. 

        7.5    Disposition of Products on Hand upon Termination or Expiration.    Upon termination of this Agreement by DexCom
under Section 7.2.1 or by SMTLLC under Section 7.3, DexCom shall have the privilege of disposing of all previously made or partially made Licensed Products and Reportable Products, but
no more, within a period of one hundred eighty (180) days following the effective date of termination, provided, however, that the sale of such Licensed Products and Reportable Products shall
be subject to the terms of this Agreement including, but not limited to, the payment of royalties; and SMTLLC shall have the privilege of disposing of all previously made or partially made SMTLLC
Products, but no more, until all such SMTLLC Products are disposed of, within a period of one hundred eighty (180) days following the effective date of termination, provided, however, that the
sale of such Products shall be subject to the terms of this Agreement including, but not limited to, the payment of royalties. 

8.     Indemnity.  

        8.1    By SMTLLC.    SMTLLC shall indemnify, hold harmless and defend DexCom, its Affiliates, employees, officers,
directors and agents, from and against any and all claims, suits, losses, damages, costs, fees and expenses (including, without limitation, reasonable attorneys' fees) resulting from or arising out of
Third Party claims resulting from or arising out of an SMTLLC breach of any of its warranties contained in Section 9.1; provided, however, that SMTLLC shall have no indemnification obligation
for claims resulting from the unauthorized practice of the SMTLLC Technology. 

        8.2    Procedures.    The party seeking indemnification hereunder (the "Indemnified
Party") shall: (i) promptly notify the party obligated to indemnify (the "Indemnifying Party") of any loss for which the
Indemnified Party seeks indemnification; (ii) cooperate fully with the Indemnifying Party and its legal representatives in the investigation of any matter the subject of indemnification;
(iii) permit the Indemnifying Party full control over the defense and settlement of any matter subject to indemnification; and (iv) not unreasonably withhold its approval of the
settlement of any claim, liability or action by the Indemnifying Party covered by this indemnification provision. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

17

   9.     Representations and Warranties.  

        9.1   Each party hereby represents and warrants 

        9.1.1    No Conflicting Agreements.    Both parties warrant that they have no agreements with any third party or
commitments or obligations which conflict in any way with their obligations under this Agreement. Neither Party will enter into during the term of this Agreement any agreement, commitment or
obligation in conflict with its obligations under this Agreement. 

        9.1.2    Corporate Power.    Such party is duly organized and validly existing under the laws of the state of its
incorporation and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof. 

        9.1.3    Binding Agreement.    This Agreement is a legal and valid obligation binding upon it and enforceable in
accordance with its terms. The execution, delivery and performance of this Agreement by such party does not conflict with any agreement, instrument or understanding, oral or written, to which it is a
party or by which it may be bound, nor violate any, law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it. 

 9.2 By SMTLLC.  

        9.2.1 As of the Effective Date, SMTLLC hereby represents and warrants that to the best of its knowledge there do not exist
any patents or pending patent applications owned or controlled by SMTLLC other than the SMTLLC Patents, which would be infringed by the practice of the SMTLLC Technology or which would otherwise
prevent the practice of any Valid Claim. The parties agree and acknowledge that if such patents or patent applications owned or controlled by SMTLLC are subsequently found to have existed prior to the
Effective Date, or during the Term with respect to the SMTLLC Patents granted hereunder, SMTLLC shall grant to DexCom a fully paid-up, royalty-free, exclusive, worldwide
license to such patents and/or patent applications, to the extent necessary or useful for the practice of the SMTLLC Technology. 

        9.2.2 SMTLLC represents, warrants and covenants to DexCom that: (i) it is the owner of all right, title and interest
in and to the SMTLLC Technology and the Marks; (ii) it has not granted any license under the SMTLLC Technology in the Field of Use, except to DexCom. pursuant to this Agreement, and is under no
obligation to grant any such license; (iii) there are no outstanding liens, encumbrances, agreements or understandings of any kind, whether written, oral or implied, regarding the SMTLLC
Technology which are in conflict with any provision of this Agreement; (iv) no patent or patent application within the SMTLLC Technology or any SMTLLC Patent is the subject of any pending
interference, opposition, cancellation or other protest proceeding in the United States; (v) there have been no legal proceedings (including but not limited to requests for reexamination or
motions for summary judgement) questioning or 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

18

 

bringing
at issue in any way the validity of any SMTLLC Patent in the United States; and (vi) to the best of SMTLLC's knowledge, the practice or use of the SMTLLC Technology by DexCom as
authorized herein will not infringe any Third Party Intellectual Property Rights in the United States 

        9.2.3 SMTLLC represents, warrants and covenants to DexCom that: (i) no patent or patent application within the SMTLLC
Technology or any SMTLLC Patent is the subject of any pending interference, opposition, cancellation or other protest proceeding outside the United States; (ii) there have been no legal
proceedings (including but not limited to requests for reexamination or motions for summary judgement) questioning or bringing at issue in any way the validity of any SMTLLC Patent outside the United
States; and (iii) to the best of SMTLLC's knowledge, the practice or use of the SMTLLC Technology by DexCom as authorized herein will not infringe any Third Party Intellectual Property Rights
outside the United States. 

10.   Limitation of Liability.  

        10.1 IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY OR
CONSEQUENTIAL DAMAGES, WHETHER BASED UPON A CLAIM OR ACTION OF CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT, OR OTHERWISE, ARISING OUT OF THIS AGREEMENT; 

        10.2 OTHER THAN WITH RESPECT TO A PARTY'S LIABILITY FOR BREACH OF SECTION 5 OR PARTY'S INDEMNIFICATION OBLIGATION UNDER
SECTION 8, EACH PARTY'S AGGREGATE LIABILITY IN CONNECTION WITH THE SMTLLC TECHNOLOGY, THE LICENSED PRODUCTS, THE REPORTABLE PRODUCTS OR OTHERWISE OUT OF THIS AGREEMENT, WILL BE LIMITED TO THE
AGGREGATE AMOUNT ACTUALLY PAID BY DEXCOM TO SMTLLC HEREUNDER 

11.   Miscellaneous Provisions.  

        11.1    Choice of Law; Jurisdiction and Venue.    This Agreement is made in accordance with and shall be governed,
construed and enforced solely and exclusively in accordance with the laws of the State of California, without regard to conflicts of law rules. In any legal action relating to this Agreement, each
party agrees: (a) to the exercise of jurisdiction over it by a state court in San Diego County, California or a federal court in the Southern District of California; and (b) that if such
party brings an action it shall be instituted in one of the courts specified in subsection (a) above. 

        11.2    Insurance.    DexCom shall purchase and maintain in effect throughout the Term a policy of products liability
insurance covering all claims with respect to Licensed Products and Reportable Products manufactured or Sold within the term of any license granted hereunder, 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

19

 

which
policy shall be for [*****] coverage, or shall change from time to time but be in the same comparable form and coverage as the foregoing policy. DexCom shall furnish a
certificate of such insurance to SMTLLC on or before the date of the first Sale or use of Licensed Products. 

        11.3    Patent Marking.    To the extent required by applicable law, DexCom shall mark all Licensed Products or
Reportable Products or their container in accordance with the patent marking laws of the country in which such Licensed Products or Reportable Products are manufactured, used or sold. 

        11.4    Registered Trademark Markings.    DexCom will utilize the registered trademark of
[*****]® (the "Marks") when referring to the [*****] which results through use of SMTLLC Patents or Licensed Know-How, and
SMTLLC hereby grants to DexCom a fully paid-up, royalty-free, worldwide right and license under the Marks in connection with such utilization. SMTLLC shall have the right to
insure proper quality control is performed by DexCom in connection with all goods bearing the [*****]® trademark, and shall also have the right to insure that all
uses of such mark are made in accordance with applicable trademark law. All uses of the [*****]® trademark by DexCom shall inure to the benefit of SMTLLC. 

        11.5    Relationship of the Parties.    The relationship between the parties is that of independent contractors, and
nothing in this Agreement shall be construed to constitute the parties as principal and agent, employer and employee, partners, joint venturers, co-owners, agents or otherwise as
participants in a joint undertaking. Neither party has authority to bind the other. 

        11.6    Tax Withholding.    In the event that DexCom is required to withhold taxes imposed upon SMTLLC for any payment
under this Agreement by virtue of the statutes, laws, codes or governmental regulations of a country in which Licensed Products, Reportable Products, or Future Products are sold, then such payments
will be made by DexCom on behalf of SMTLLC by deducting them from the payment then due SMTLLC and remitting such taxes to the proper authorities on a timely basis, and the payments provided for under
this Agreement will be adjusted appropriately, provided that DexCom supplies SMTLLC with official documentation and/or tax receipts for such withholdings supporting such taxes and such payments as may
be required by SMTLLC for its tax records on or before the date on which such payment is due SMTLLC under this Agreement. 

        11.7    Force Majeure.    Nonperformance of either party will be excused to the extent that performance is rendered
impossible by strike, fire, flood, power outages, governmental acts or orders or restrictions, or
any other reason where failure to perform is beyond the reasonable control of and is not caused by the negligence of the non-performing party. 

        11.8    Assignment.    Neither party shall assign or delegate this Agreement, in whole or in part, without the prior
written consent of the other party, which consent shall not be unreasonably withheld or delayed, provided, however, that DexCom may assign this Agreement 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

20

 

to
a parent, subsidiary, or successor-in-interest to its business (whether by merger, acquisition, consolidation, or sale of substantially all of its shares or assets),
provided that the assignee agrees to the terms and conditions herein. Any permitted assignment will not expand the scope of the licenses granted herein. Any attempted assignment or delegation in
violation of the preceding will be null and void. Subject to the foregoing, this Agreement shall be binding on and inure to the benefit of the parties and their respective successors and permitted
assigns. 

        11.9    Public Announcements.    If either party desires to, or is required by law to, make a public announcement
concerning the Agreement or the subject matter hereof, such party will give reasonable prior advance notice of the proposed text of such announcement to the other party for its review and approval.
Except as defined within this agreement as Confidential Information, neither party will withhold this approval unnecessarily. 

        11.10    Notices.    All notices and other communications hereunder will be in writing and will be deemed given if
delivered personally or by facsimile transmission (receipt verified), or sent by express courier service, to the parties at the following addresses (or at such other address for a party as will be
specified by like notice; provided, that notices of a change of address will be effective only upon receipt thereof): 

If
to SM Technologies, LLC (SMTLLC) 

SM
TECHNOLOGIES, LLC. (SMTLLC)

attn: Manager

3190 Chula Vista Circle

Salt Lake City, Utah 84121 

If
to DexCom, addressed to: 

DexCom Inc.

attn: Chief Executive Officer

6725 Mesa Ridge Rd., suite 100

San Diego, California 92121

[*****] 

        11.11    Amendment.    No amendment, modification or supplement of any provision of the Agreement will be valid or
effective unless made in writing and signed by a duly authorized officer of each party. 

        11.12    Waiver.    No provision of the Agreement unless such provision otherwise provides will be waived by any act,
omission or knowledge of a party or its agents or employees except by an instrument in writing expressly waiving such provision and signed by a duly authorized officer of the waiving party. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

21

 

        11.13    Survival.    In the event of termination of this Agreement, Sections, 4.7 (for a period of
[*****] years), 5, 7.4, 7.5, 8, 9, 10, and 11 shall survive. 

        11.14    Severability.    Whenever possible, each provision of the Agreement will be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of the Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of
such prohibition or invalidity, without invalidating the remainder of the Agreement. 

        11.15    Entire Agreement.    This Agreement constitutes the complete, final and exclusive understanding and agreement
of the parties and cancels and supersedes any and all prior or contemporaneous negotiations, correspondence, understandings and agreements, whether oral or written, between the parties respecting the
subject matter thereof. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

22

 

        In Witness Whereof, the parties hereto have duly executed this Agreement as of the Effective Date. 

	DEXCOM, INC.	 	SM TECHNOLOGIES, LLC
	

By:	
 	

/s/ JOHN F. BURD
	
 	

By:	
 	

/s/ [*****]

	Name:	 	John F. Burd	 	Name:	 	[*****]
	Title:	 	Chief Executive Officer	 	Title:	 	Manager

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

23

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Exhibit 10.10    
    

CONFIDENTIAL TREATMENT REQUESTED

AGREEMENT REGARDING TERMS OF SALE  

        THIS AGREEMENT REGARDING TERMS OF SALE ("Agreement") is entered into as of the 23rd day of May, 2003 ("Effective Date"), by and between  AMI SEMICONDUCTOR,
 INC., on its own behalf and on behalf of its subsidiaries (individually and collectively, "AMIS"), a Delaware corporation
having its principal place of business at 2300 Buckskin Road, Pocatello, Idaho 83201, U.S.A., and DEXCOM, INC.
("DexCom"), a Delaware corporation, having its principal place of business at 6725 Mesa Ridge Road, Suite 100, San Diego, California 92121, U.S.A. AMIS
and DexCom also are hereinafter referred to individually as a "party," and jointly as the "parties." 

        WHEREAS,
DexCom desires to have AMIS design, manufacture and sell to DexCom certain semiconductor products, and AMIS desires to design, manufacture and sell to DexCom such semiconductor
products; and, 

        WHEREAS,
DexCom and AMIS desire to establish the terms and conditions of their business relationship, including the "Terms of Sale" that will govern all purchase orders submitted by
DexCom and accepted by AMIS; 

        NOW,
THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows: 

ARTICLE I  

        All purchase orders issued by DexCom to AMIS shall be subject in each instance to acceptance in writing by AMIS, as evidenced exclusively by the issuance of a
written acknowledgement of purchase order by AMIS. 

ARTICLE II  

        All purchase orders issued by DexCom to AMIS, and all products designed and manufactured by AMIS for DexCom, shall be subject to the separately-executed
"Indemnity Agreement" (annexed hereto as Exhibit A) entered into by DexCom and AMIS. Such Indemnity Agreement shall survive any cancellation,
termination or expiration of any agreement, or any part thereof, including without limitation this Agreement, between DexCom and AMIS. 

ARTICLE III  

        The following "DexCom/AMIS Terms of Sale" in all respects shall govern, and shall be deemed in each instance to be incorporated by reference in, all purchase
orders issued by DexCom to AMIS and all acknowledgments of purchase order issued by AMIS in response to 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

such purchase orders, and the "DexCom/AMIS Terms of Sale" shall supersede in their entirety any preprinted terms and conditions contained in any purchase orders
issued by DexCom to AMIS and/or in any acknowledgments of purchase orders issued by AMIS to DexCom (in the "DexCom/AMIS Terms of Sale" set forth below, the term "Seller" shall be deemed to refer to
AMIS, and the term "Buyer" shall be deemed to refer to DexCom): 

DEXCOM/AMIS TERMS OF SALE  

        1.     ACCEPTANCE: THE TERMS OF SALE CONTAINED HEREIN APPLY TO ALL QUOTATIONS MADE AND PURCHASE ORDERS ENTERED INTO BY THE SELLER
AND BUYER AS WELL AS TO THE DELIVERABLES DESCRIBED IN SELLER'S "FIRM PROPOSAL PREPARED FOR DEXCOM, BID CONTROL NUMBER (BCN) [*****] (A COPY OF WHICH IS ANNEXED TO THIS
AGREEMENT AS EXHIBIT B), PERTAINING TO THE "SENSOR ASIC AND HANDHELD COMMUNICATOR" PROJECT. SOME OF THE TERMS SET OUT HERE MAY DIFFER FROM THOSE IN
BUYER'S PURCHASE ORDER AND SOME MAY BE NEW. THESE TERMS OF SALE WILL CONTROL IN THE EVENT OF ANY ADDITIONAL OR INCONSISTENT TERMS IN BUYER'S PURCHASE ORDER. SELLER'S FAILURE TO OBJECT TO PROVISIONS
CONTAINED IN ANY COMMUNICATION FROM BUYER SHALL NOT BE DEEMED A WAIVER OF THE PROVISIONS OF THESE TERMS OF SALE. ANY CHANGES IN THE TERMS CONTAINED HEREIN MUST SPECIFICALLY BE AGREED TO IN WRITING BY
AN OFFICER OF THE SELLER BEFORE BECOMING BINDING ON EITHER THE SELLER OR THE BUYER. All orders or contracts must be consistent with these Terms of Sale, unless otherwise specifically agreed in writing
by Seller. Seller agrees to accept and fulfill purchase orders submitted by Buyer to Seller that are consistent with these Terms of Sale, are consistent with mutually agreed-upon lead
times, and encompass cumulative die quantities of up to [*****] units per year. Subject to the foregoing and to Seller's then-existing capacity constraints, Seller
agrees to accept and fulfill additional purchase orders submitted by Buyer to Seller that are consistent with these Terms of Sale and are consistent with mutually agreed-upon quantities
and lead times with respect to services and/or products encompassed by such purchase orders.  

         2.     PAYMENT:  

         (a)   Unless otherwise agreed, all invoices are due and payable thirty (30) days from the later of the date of invoice or
product shipment and
notification to Buyer. No discounts are authorized. Shipments, deliveries, and performance of work shall at all times be subject to the approval of the Seller's credit department or prepayment by
Buyer. The Seller may at any time decline to make any shipments or deliveries or perform any work except upon receipt of payment or upon terms and conditions or security reasonably satisfactory to
such department.  

         (b)   If, in the judgment of the Seller, the financial condition of the Buyer at any time does not justify continuation of production or shipment on the terms of
payment
originally specified, for reasons including but not limited to Buyer's bankruptcy or insolvency, the Seller may require full or partial payment in advance and, in the event of the bankruptcy or
insolvency of the Buyer or in the event any proceeding is brought by or against the Buyer under the bankruptcy or insolvency laws, the Seller shall be entitled to cancel any order then outstanding and
shall receive reimbursement for its cancellation charges.  

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

        (c)  Each shipment shall be considered a separate and independent transaction, and payment therefore shall be made accordingly
shipments are delayed by the Buyer, payments shall become due on the date when the Seller is prepared to make shipment. If the work covered by the purchase order is delayed by the Buyer (e.g., Buyer
does not perform its material undertakings in connection with the shipment), payments shall be made based on the purchase price and the percentage of completion. Products held for the Buyer as a
result of delays by the Buyer shall be at the risk and expense of the Buyer.  

        3.     TAXES: Unless otherwise provided herein, the amount of any present or future sales,
revenue, excise or other taxes, fees,
or other charges of any nature (but expressly excluding taxes on the income of Seller), imposed by any public authority, (national, state, local or other) applicable to the services or products
covered by these Terms of Sale, or the performance of services and/or manufacture or sale of products hereunder, shall be added to the purchase price and shall be paid by the Buyer, or in lieu
thereof, the Buyer shall provide the Seller with a tax exemption certificate acceptable to the taxing authority.  

        4.     F.O.B. POINT: All sales are made F.O.B. point of shipment. Seller's title passes to Buyer,
and Seller's liability as to
delivery ceases, upon making delivery of material purchased hereunder to carrier at shipping point, the carrier acting as Buyer's agent. All claims for damages must be filed with the carrier.
Shipments will normally be made by Parcel Post, United Parcel Service (UPS), Air Express, or Air Freight. Unless specific instructions from Buyer specify which of the foregoing methods of shipment is
to be used, the Seller will exercise its own discretion.  

         5.     DELIVERY:  

        (a)   Shipping dates are approximate and are based upon prompt receipt from Buyer of all necessary information. In no event will
Seller be liable for
any re-procurement costs, nor for delay or non-delivery, due to causes beyond its reasonable control including, but not limited to, acts of God, acts of civil or military
authority, priorities, fires, strikes, lockouts, slow-downs, shortages not within Seller's reasonable control, factory conditions not within Seller's reasonable control, labor conditions,
yield problems not within Seller's reasonable control, and inability due to causes beyond the Seller's reasonable control to obtain necessary labor, materials, or manufacturing facilities. In the
event of any such delay, the date of delivery shall, at the request of the Seller, be deferred for a period equal to the time lost by reason of the delay; provided that any delay (for any reason) in
excess of three (3) months will entitle Buyer to cancel any (or all) pending orders.  

         (b)   In the event Seller's production is curtailed for any of the above reasons so that Seller cannot deliver the full amount released hereunder, Seller may allocate
production deliveries among its various customers then under contract for similar goods. The allocation will be made in a commercially fair and reasonable manner. When allocation has been made, Buyer
will be notified of the estimated quota made available.  

        6.     INTELLECTUAL PROPERTY:  

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

        (a) All intellectual property rights that belong to either party prior to and as of the date of the Agreement shall remain with such
party. Except as otherwise expressly set forth herein, nothing contained in the Agreement shall operate or be construed to grant any license, by implication, estoppel or otherwise, under any of
Buyer's or Seller's respective patents, copyrights, trade secrets, rights in mask work or other intellectual property rights.  

         (b)   [*****]  

         (c)   In the event that a product designed and/or manufactured by Seller for Buyer incorporates in its design any of Seller's proprietary standard cells, base arrays,
macros
and/or other design data, and Seller at any time thereafter determines that Seller cannot or will not manufacture such product (or if Seller is in material uncured breach of the Agreement or these
Terms of Sale), then, provided that Buyer is not in material uncured breach of the Agreement or these Terms of Sale (or any other agreement between Seller and Buyer pertaining to the supply of
integrated circuits), Seller agrees to grant and hereby grants to Buyer (subject to the following proviso) a perpetual, irrevocable, fully paid-up, royalty-free license to use
the design specification, top-level schematics, top-level simulation results, cell simulation results and documentation pertaining to the uniquely-configured product design by
Seller for Buyer (pursuant to Exhibit B annexed to the Agreement) solely for the purpose of having such uniquely configured product manufactured
for Buyer by an alternative manufacturer (provided, however, that before Buyer uses or attempts to use the aforementioned design specification, top-level schematics, top-level
simulation results, cell simulation results and/or documentation to have such uniquely-configured product manufactured for Buyer by an alternative manufacturer, Buyer must provide to Seller not less
than ten (10) business days' written notice of such planned use by Buyer so as to permit Seller to seek such injunctive and/or other relief as Seller may deem appropriate in the event that
Seller disputes Buyer's rights to such use).  

         (d)   Buyer hereby represents and warrants to Seller that Buyer's provision to Seller of any Buyer design data, and Seller's use of such Buyer design data to design,
develop
and/or manufacture one or more integrated circuits for Buyer, does not: (i) constitute an unfair trade practice against any third party, (ii) misappropriate any trade secret of any third
party, (iii) infringe any patent, copyright, mask work right, trademark or other intellectual property right of any third party, or (iv) tortiously interfere with or breach any contract
between Buyer and any third party. Provided that Seller notifies Buyer promptly in writing and gives Buyer authority, information and assistance (at Buyer's expense) for the defense thereof. Buyer
hereby agrees to defend, indemnify and hold harmless Seller against any claims, suits, actions, proceedings at law or in equity, inquiries and/or investigations brought or asserted by any third
party(ies) ("Third Party Claims") against
Seller, and any and all liability, damages, losses, costs and/or expenses, including reasonable attorney's fees and expenses, arising out of any such Third Party Claims (regardless of whether relating
to unfair trade practice, misappropriation of a trade secret of any third party, infringement of any patent, copyright, mask work right, trademark or other intellectual property right of any third
party, and/or tortious interference with or breach of any contract between Buyer and any third party) to the extent any such Third Party Claims arise from and/or are alleged to have arisen from:
(i) Buyer's provision to Seller of Buyer's design data, (ii) Seller's use of Buyer's design data to design, develop and/or manufacture one or more integrated circuits for Buyer, and/or  

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

(iii) compliance with Buyer's designs, specifications and/or instructions; provided, however, that Buyer shall have no indemnification obligations hereunder to the
extent that a Third Party Claim arises from or is based on any combination by Seller of Buyer's design data, designs and/or specifications with other design data, designs or information not provided
by Buyer. The sale of products by Seller does not convey any license, by implication, estoppel or otherwise, under patent claims covering combinations of those products with other devices or elements.  

         (e)   Subject to subpart (d) above, and provided that Buyer notifies Seller promptly in writing and gives Seller authority, information and assistance (at
Seller's
expense) for the defense thereof, Seller hereby agrees to defend, indemnify and hold harmless Buyer against any Third Party Claims brought or asserted against Buyer, and any and all liability,
damages, losses, costs and/or expenses, including reasonable attorneys' fees and expenses, arising out of any such Third Party Claims to the extent any such Third Party Claims arise from and/or are
alleged to have arisen from: (i) a claim that any product, or any part thereof furnished by Seller hereunder constitutes an infringement of any U.S. patent, and/or (ii) any knowing and
intentional misappropriation by Seller of proprietary information of any third parties. If such product, or any part thereof is held in such suit or proceeding to constitute infringement of a U.S.
patent, and the use of such product is enjoined, Seller shall, at its own expense, procure for Buyer the right to continue using such product or part thereof, replace the same with a
non-infringing product, modify, the product so that it becomes non-infringing, or authorize Buyer's return of such product to Seller and upon its receipt refund the price and
transportation and installation costs thereof. Subject to subpart (f) below, the foregoing states the entire liability of Seller for infringement by such product or any part thereof. THIS
PROVISION IS STATED IN LIEU OF ANY OTHER EXPRESS, IMPLIED OR STATUTORY WARRANTY AGAINST INFRINGEMENT, AND SHALL BE THE SOLE AND EXCLUSIVE REMEDY FOR INFRINGEMENT OF ANY KIND.  

         (f)    In connection with any indemnification obligation under either subpart (d) or (e) above, the following additional provisions shall apply:

         (i)    the party seeking indemnification with respect to a Third Party Claim shall not enter into any settlement of such claim without the written consent of the
indemnifying
party (which consent shall not unreasonably be withheld, conditioned or delayed), and the indemnifying party shall not enter into any settlement of such Third Party Claim (unless such settlement is
solely for payment of an amount no greater than the maximum amount for which the indemnifying party is obligated to provide indemnification hereunder and the indemnifying party agrees in writing to
pay such amount and not to contest its indemnity obligation with respect thereto) without the written consent of the indemnified party (which consent shall not unreasonably be withheld, conditioned or
delayed);  

         (ii)   notwithstanding anything to the contrary in the Agreement or these Terms of Sale, under no circumstances shall an indemnified party be entitled to
indemnification under
this Paragraph 6 with respect to special, indirect or consequential damages suffered by the indemnified party itself and,  

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

        (iii) in no event shall Seller's or Buyer's total liability to the other party under or as a result of compliance with the provisions
of subparts (d) and/or (e) above exceed the aggregate sum paid by Buyer to Seller for the NRE charges pertaining to the allegedly infringing product and for the purchase of production
units of the allegedly infringing product.  

         7.     INSPECTION: Unless otherwise specified and agreed upon, the material and/or products to
be furnished under these Terms of
Sale shall be subject to the Seller's standard inspection at the place of manufacture and to Buyer's standard inspection (provided that Buyer's standard inspection is based on standards that are no
more restrictive than the parties' mutually agreed-upon specifications for the relevant products) at the place of manufacture or at Buyer's facilities following shipment (or both, as
determined by Buyer). Any such inspection by Buyer at the place of manufacture shall be subject to prior written notice to Seller, shall be subject to Seller's confidentiality and security
requirements, and shall be so conducted as to not interfere unreasonably with Seller's operations. Notwithstanding the foregoing, if, upon receipt of such material and/or products by Buyer, the same
shall appear not to be free from defects in material and workmanship under normal use and service and to conform in all material respects to the then-current mutually
agreed-upon product design specifications, the Buyer promptly shall notify, the Seller of such conditions and afford the Seller a reasonable opportunity to inspect the material and/or
products. Seller's Return Material Authorization form, which Seller agrees to provide upon request from Buyer, must accompany such returned material and/or products.  

        8.     LIMITED WARRANTY:

         (a)   The Seller warrants that the products to be delivered under these Terms of Sale will be free from defects in material and workmanship under normal use and
service and
will conform in all material respects to the then-current mutually agreed-upon product design specifications. Seller's obligations under this warranty are limited to replacing
or repairing or giving credit for, at its option, at its factory, any of said products which shall, within one (1) year after shipment, be returned to the Seller's factory of origin,
transportation charges prepaid, and which are, after examination, disclosed to the Seller's satisfaction to be thus defective. THIS WARRANTY IS EXPRESSED IN LIEU OF ALL OTHER WARRANTIES, EXPRESS,
STATUTORY, OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AND OF ALL OTHER OBLIGATIONS OR LIABILITIES ON THE SELLER'S PART, AND IT NEITHER
ASSUMES NOR AUTHORIZES ANY OTHER PERSON TO ASSUME FOR THE SELLER ANY OTHER LIABILITIES IN CONNECTION WITH THE SALE OF THE SAID ARTICLES. This warranty shall not apply to any of such products which
shall have been repaired or altered, except by the Seller, or which shall have been subjected to misuse, negligence, accident or improper storage. The aforementioned provisions do not extend the
original warranty period of any product which has either been repaired or replaced by Seller.  

        (b)   It is understood that if an order calls for the delivery of semiconductor devices which are not finished and fully encapsulated, then no warranty, statutory,
express or
implied, including the implied warranty of merchantability and fitness for a particular purpose, shall apply. All such devices are sold as is where is.  

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

        9.   PRODUCTS NOT WARRANTED BY SELLER: Subpart (e) of Paragraph 6,
Patents, and Paragraph 8, Limited Warranty, above, apply only to integrated circuits of Seller's own manufacture (or, if applicable, to integrated circuits manufactured by a third party for
Seller which then are supplied by Seller to Buyer). IN THE CASE OF PRODUCTS OTHER THAN INTEGRATED CIRCUITS OF SELLER'S OWN MANUFACTURE (OR, IF APPLICABLE, IN THE CASE OF INTEGRATED CIRCUITS
MANUFACTURED BY A THIRD PARTY FOR SELLER WHICH THEN ARE SUPPLIED BY SELLER TO BUYER), SELLER MAKES NO WARRANTIES, EXPRESS, STATUTORY OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY,
FREEDOM FROM PATENT INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE. Such products may be warranted by the original manufacturer of such products. For further information regarding the possible
warranty of such products, contact Seller.  

         10.   PRICE ADJUSTMENTS: Seller's unit prices are based on certain material costs. These materials include,
 among other things,
gold, packages and silicon. Adjustments shall be as follows:  

        (a)   [*****]  

        (b)   [*****]  

         11.   VARIATION IN QUANTITY: If any purchase orders submitted and accepted under these Terms of Sale calls
for a product not
listed in Seller's current catalog, or for a product which is specially programmed for Buyer, it is agreed that Seller may ship a quantity which is [*****] more or less than
the ordered quantity and that such quantity shipped will be accepted and paid for in full satisfaction of each party's obligation hereunder for the quantity ordered.  

         12.   CONSEQUENTIAL DAMAGES: Notwithstanding anything to the contrary in these Terms of Sale, in no event
shall Seller or Buyer
be liable for special, incidental or consequential damages.  

         13.   GENERAL:  

        (a)   The validity, performance and construction of these terms and all sales hereunder shall be governed by the laws of the State of
California.  

         (b)   The Seller represents that with respect to the production of articles and/or performance of the services covered by this order, it will fully comply with all
requirements of the Fair Labor Standards Act of 1938, as amended, Williams-Steiger Occupational Safety and Health Act of 1970, Section 202 of Executive Order 11246, as amended and where
applicable, and other affirmative action requirements made applicable to this order by federal statute, rule or regulation.  

        (c)   The Buyer may make reasonable changes in the drawings, designs or specifications for the items, products and/or materials to be furnished hereunder without
Seller's
prior consent (provided that such changes do not result in a significant additional development  

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

cost to Seller). Seller agrees to implement such changes within a reasonable time, provided that Buyer agrees to pay Seller's customary and usual charges for such
implementation.  

         (d)   Except to the extent provided in Paragraph 2(b), above, and 14, below, purchase orders submitted and accepted under these Terms of Sale are not subject to
cancellation or termination for convenience.  

        (e)   Buyer acknowledges that all or part of the products purchased hereunder may be manufactured and/or assembled at any of Seller's facilities domestic or foreign.

         (f)    Buyer, by accepting products hereunder, certifies that it will not export or re-export the products furnished hereunder unless it complies fully with all
laws and regulations of the United States relating to such export or re-export, including but not limited to the Export Administration Act of 1979 and the Export Administration Regulations
of the U.S. Department of Commerce.  

        (g)   Seller shall own all copyrights in or relating to each product developed by Seller whether or not such product is developed under contract with a third party.

         (h)   The design, development or manufacture by Seller of products for Buyer shall not be deemed to produce a work made for hire and shall not give to Buyer any
copyright
interest in the product or (except as otherwise expressly provided in subparts (b) and (c) of Paragraph 6 of these Terms of Sale) any interest in all or any portion of the mask
works relating to the product. In addition, all such rights shall remain the property of Seller.  

        (i)    Engineering work performed by Seller of any kind, including but not limited to, development of test programs, shall only be on a best efforts basis;
provided that any
uncured failure by Seller to perform mutually agreed-upon work in a timely manner under a mutually agreed-upon schedule will be deemed to be a breach of these Terms of Sale.  

         14.   GOVERNMENT CONTRACT PROVISIONS: If Buyer's original purchase order indicates by contract number that
it is placed under a
government contract, only the following provisions of the current Federal Acquisition Regulations are applicable, in accordance with the terms thereof with an appropriate substitution of parties, as
the case may be—i.e., "Contracting Officer" shall mean "Buyer," "Contractor" shall mean "Seller," and the term "Contract" shall mean this
order:  

52.202-1 Definitions; 52.232-11 Extras; 52.212-9 Variation in Quantity,. 52.232- 23 Assignment of Claims; 52.228-2
Additional Bond Security; 52.224-11 Certain Communist Areas; 52.222-4 Contract Work Hours and Safety Standards Act- Overtime Compensation; 52.222-20
Walsh-Healey Public Contracts Act, if this order exceeds $10,000; 52.222-26 Equal Opportunity; 52.203-1 Officials Not to Benefit; 52.203-5 Covenant Against
Contingent Fees; 52.249-1 Termination for Convenience of the Government if this order does not exceed $500,000 (only to the extent that Buyer's contract is terminated for the convenience
of the government); 52.246-1 Contractor Inspection Requirements; 52.247-1 Commercial Bills of Lading; 52.222-35 Affirmative Action Viet Nam Veterans if  

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

this order exceeds $10,000; 52.222-36 Affirmative Action Handicapped Workers, if this order exceeds $2,500; 52.222-1 Notice to the Government of Labor
Disputes; 52.215-1 Examination of Records by Comptroller General; 52.220-3 Utilization of Labor Surplus Area Subcontracting Concerns.  

         15.   TERM AND TERMINATION: These Terms of Sale, the parties' Agreement in which these Terms of Sale are
contained (but not  Exhibit A annexed thereto, which shall survive any cancellation, termination or expiration for any reason), and the parties' rights and
obligations under Exhibit B annexed to this Agreement, will have a term of [*****] from the Effective Date of the
Agreement, except as provided below. Thereafter, the term will renew automatically for consecutive[*****] terms unless either party gives the other party at least
[*****] notice of non-renewal prior to the end of the initial or any renewal term. Either party may terminate for material breach by the other party if the
terminating party gives the breaching party written notice of the breach and such breach is not fully cured within the [*****] day period immediately following the breaching
party's receipt of such written notice (provided that the cure period will be only [*****] days in length in the case of nonpayment of amounts due and owing). Upon written
notice to Seller at any time during the development phase of any product being designed by Seller for Buyer, Buyer may terminate for Buyer's convenience the Agreement and these Terms of Sale with
respect to such product, in which case: (i) Buyer promptly shall remit to Seller such portion of the entire unpaid balance of the NRE charges applicable to the next milestone toward which
Seller was working at the time of termination as is sufficient to encompass all design and development work performed on such product by Seller with respect to such next milestone up to and including
the date of termination; and, (ii) Seller promptly will provide to Buyer (subject to the terms, conditions and restrictions set forth in Paragraphs 6(b) and 6(c) above) only the
then-current versions of the design specification and the top-level schematics for such product, and hereby grants to Buyer the right to use the same solely for the purpose of
having such uniquely-configured product designed and/or manufactured by an alternative designer and/or manufacturer. As to pending orders as of the effective date of termination, the provisions of
Paragraphs 2, 3, 4, 5, 7 and 10 of these Terms of Sale shall survive; and, in any event, the provisions of Paragraphs 6, 8, 9 and I1 through 15 of these Terms of Sale always shall survive termination
of the Agreement for any reason. Seller's obligation under Exhibit B annexed to the Agreement also shall terminate upon termination of the
Agreement or these Terms of Sale; provided that, in the event such termination results from Seller's uncured material breach of these Terms of Sale, Seller will deliver to Buyer (subject to the terms,
conditions and restrictions set forth in Paragraphs 6(a) and 6(c) above), the design specification, top-level schematics, top-level simulation results, cell simulation results
and documentation pertaining to the uniquely-configured product designed by Seller for Buyer pursuant to Exhibit B annexed to the Agreement, and
hereby grants to Buyer the right to use the same solely for the purpose of having such uniquely-configured product designed and/or manufactured by an alternative designer and/or manufacturer. Neither
party will be liable to the other party for damages of any kind or nature resulting solely from such party's exercise of its rights under this Paragraph 15.  

         16.   CONFIDENTIALITY: Except as provided below, Buyer and Seller acknowledge and agree that the
"Non-Disclosure
Agreement" entered into by Buyer and Seller as of [*****] (the "NDA") shall govern exchanges by Buyer and Seller of confidential information. Subject to  

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

the following proviso, at any time prior to the commencement of manufacture by Seller of production units of the product being designed
by Seller for Buyer, Seller shall, upon request of Buyer, disclose to Buyer the following design data with respect to such product: [*****] (provided, however, that Seller's
disclosure to Buyer of the aforementioned design data shall be subject to the following additional provisions: (i) such design data shall be protected by Buyer in accordance with the
confidentiality restrictions set forth in the NDA, except that, notwithstanding anything to the contrary in the NDA, the duration of Buyer's confidentiality obligations under the NDA with respect to
such design data shall be[*****] years from the date of Seller's disclosure thereof to Buyer; and, (ii) subject only to Paragraphs 6(c) and 15 above, Buyer shall use
such design data solely for the purpose of designing a product to be manufactured exclusively by, and purchased by Buyer exclusively from, Seller).  

ARTICLE IV  

        This Agreement (including Exhibits A and B annexed hereto)
constitutes the entire agreement between the parties concerning the same subject matter, and supersedes and repeals all previous negotiations and/or understandings between the parties relating to this
subject matter. This Agreement may not be modified, altered, changed or amended in any respect other than by a written amendment (which amendment shall be appropriately captioned to refer expressly to
this Agreement, and the sole purpose of which amendment shall be to modify, alter, change or amend this Agreement) signed by both parties. 

ARTICLE V  

        Any notice (other than routine transactional communications) to be given hereunder shall be in writing and shall be sent by certified mail, return receipt
requested, addressed as follows (or to such other address as the parties may specify in writing): 

	To DexCom at:	 	To AMIS at:
	

DEXCOM, INC.

6725 Mesa Ridge Road, Suite 100

San Diego, California 92121, U.S.A.	
 	

AMI SEMICONDUCTOR, INC.

2300 Buckskin Road

Pocatello, Idaho 83201, U.S.A.
	ATTN:	 	Steve Kemper

Director, U.S. Mixed Signal	 	ATTN:	 	Robert Floyd

Chief Financial Officer Operations

ARTICLE VI  

        This Agreement and its performance shall be governed by, subject to and construed in accordance with the laws of the State of California, United States of America
(without reference to principles of conflicts of laws), and the parties hereby submit to the non-exclusive jurisdiction and venue of the state and/or federal courts located in the State of
California and/or the State of Idaho, United States of America, for any dispute arising out of this Agreement. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

        IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Effective Date by their respective authorized representatives. 

	
AMI SEMICONDUCTOR, INC.	
 	

DEXCOM, INC. 
	

By:	
 	

/s/ CHRISTINE KING
	
 	

By:	
 	

/s/ STEVEN KEMPER

	Print Name:	 	Christine King
	 	Print Name:	 	Steven Kemper

	Title:	 	CEO
	 	Title:	 	CFO

	Date:	 	5-23-03
	 	Date:	 	5-23-03

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

EXHIBIT A  

 INDEMNITY AGREEMENT  

        This Indemnity Agreement ("Agreement") is entered into as of May 23rd, 2003 ("Effective Date") by and between AMI
SEMICONDUCTOR, INC. ("Seller"), a Delaware corporation, and DEXCOM, INC. ("Buyer"), a Delaware corporation. 

        Seller
and Buyer hereby agree that Buyer shall protect, defend, save, hold harmless and indemnify Seller, its directors, officers, employees, agents, subsidiaries, successors and assigns
(as well as each of Seller's suppliers and subcontractors, and their respective directors, officers, employees, agents, subsidiaries, successors and assigns, all of whom are expressly agreed to be
intended third-party beneficiaries of this Agreement) against any and all claims, losses, damages, actions, suits, proceedings at law or in equity, government inquiries or investigations, and any and
all liability, costs or expenses, including attorney's fees, arising out of or in connection with any claim or any threatened claim of property damage, economic loss or other damages, in each such
case resulting from personal injury, including death, with regard to any product, any part of any product, or any direct or indirect use of any product or part of any product furnished to Buyer by
Seller or Seller's agent, including without limitation the design, development, manufacture, assembly, selection, testing, delivery, possession and operation of any such product or part of such
product. The obligations of this Agreement shall survive any cancellation, termination or expiration of any agreement, or any part thereof, including without limitation this Agreement, between Buyer
and Seller. 

        Buyer
will conduct and control, through counsel of its own choosing, any claim, action, suit, proceeding, government inquiry or investigation which is or may be subject to Buyer's
defense, indemnity and other obligations set forth in the immediately preceding paragraph of this Agreement. Seller (and/or, as applicable, Seller's suppliers or subcontractors) shall give Buyer
prompt notice of any claim, action, suit, proceeding, government inquiry or investigation which is or may be subject to Buyer's defense, indemnity and other obligations set forth in the immediately
preceding paragraph of this Agreement, and Seller (and/or, as applicable, Seller's suppliers or subcontractors) shall cooperate fully with Buyer (at Buyer's expense) in connection with any such matter
(including making available properly discoverable documents and/or witnesses in response to discovery requests, consulting and cooperating with Buyer in connection with Buyer's preparation of
responses to discovery requests and Buyer's filing of pleadings, and otherwise assisting in Buyer's defense of any such matter). Nothing in this Agreement shall prevent Buyer from assuming the timely
good faith appeal of any judgment rendered by any court of competent jurisdiction against Seller (and/or against any of Seller's 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

suppliers or subcontractors). In the case of a timely good faith appeal of any such judgment by either Buyer or Seller (and/or by any of Seller's suppliers or
subcontractors), Buyer's obligation to indemnify Seller (and/or any of Seller's suppliers or subcontractors) as provided in this Agreement as to such judgment (exclusive of all other costs or
expenses, including but not limited to attorney's fees suffered by Seller and/or any of Seller's suppliers or subcontractors) shall not arise until such judgment has been fully adjudicated by an
appropriate court, or otherwise settled or agreed to be settled by Seller and Buyer. 

        Seller
(and/or, as applicable, Seller's suppliers or subcontractors) shall not enter into any settlement of any claim, action, suit, proceeding, government inquiry or investigation which
is or may be subject to Buyer's defense, indemnity and other obligations set forth in the second paragraph of this Agreement without the written consent of Buyer (which consent shall not unreasonably
be withheld, conditioned or delayed), and Buyer shall not enter into any settlement of any claim, action, suit, proceeding, government inquiry or investigation which is or may be subject to Buyer's
defense, indemnity and other obligations set forth in the second paragraph of this Agreement without the written consent of Seller (and/or, as applicable, Seller's suppliers or subcontractors), which
consent shall not unreasonably be withhold, conditioned or delayed. 

        Notwithstanding
anything to the contrary in this Agreement, under no circumstances shall Seller (and/or, as applicable, Seller's suppliers or subcontractors) be entitled to
indemnification hereunder from Buyer with respect to special, incidental or consequential damages suffered by Seller itself (and/or, as applicable, by Seller's suppliers or subcontractors themselves). 

        No
other separate contract or other document (except a written amendment to this Agreement prepared and executed by Seller and Buyer in accordance with the immediately following
sentence) that now or hereafter may exist between Seller and Buyer shall be deemed to diminish the scope of, supersede or amend this Agreement. This Agreement cannot be modified, altered, changed or
amended in any respect other than by a written amendment (which amendment shall be appropriately captioned to refer expressly to this Agreement, and the sole purpose of which amendment shall be to
modify, alter, change or amend this Agreement) signed by both Seller and Buyer. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

        Seller and Buyer have caused this Agreement to be executed by their respective duly authorized representatives as of the Effective Date. 

	AMI SEMICONDUCTOR, INC.	 	DEXCOM, INC.
	

By:	
 	

/s/ Christine King
	
 	

By:	
 	

/s/ Andy Rasdal

	 	 	(Signature)	 	 	 	(Signature)
	Print Name:	 	Christine King
	 	Print Name:	 	Andy Rasdal

	Title:	 	CEO
	 	Title:	 	President

	Date:	 	5-23-03
	 	Date:	 	5-23-03

	 	 	 	 	Attest:
	 	 	 	 	/s/ Steven Kemper

	 	 	 	 	Corporate Assistant, Secretary & CFO

	*
	This
Indemnity Agreement is to be executed by Buyer's President and attested by Buyer's Corporate Secretary. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

EXHIBIT B  

 AMIS'S FIRM PROPOSAL PREPARED FOR DEXCOM,

BID CONTROL NUMBER (BCN) [*****],

PROJECT NAME: SENSOR ASIC AND HANDHELD COMMUNICATOR

(Copy to be attached.)  

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

Firm Proposal

 Prepared For
  DexCom
  6725 Mesa Ridge Road, Suite 100

San Diego, California, 92121, USA  

Bid Control Number (BCN)  

[*****]

Project Name

  Sensor ASIC and

HandHeld Communicator  

 

  Strictly Private

For DexCom Use Only  

	 	 	 
	 	 	 
	 	 	 
	Proposal Prepared By

Yong Chu Murphy

AMI Semiconductor, Inc.

151 3rd St.

Pocatello, ID 83201

[*****]	 	Proposal Submitted By

Kurt Steenblock

Centaur Corporation—San Diego

5925 Kearny Villa Road, 2nd Floor

San Diego, CA, 92123.

[*****]
	 	 	 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

TABLE OF CONTENTS  

	I.	 	OVERVIEW	 	3
	

II.	
 	

DESIGN SPECIFICATIONS & ASSUMPTIONS	
 	

3
	

III.	
 	

PROCEDURES & SCHEDULES	
 	

4
	

 	
 	

A.	
 	

PROCEDURES	
 	

4
	

 	
 	

B.	
 	

SCHEDULES	
 	

4
	

IV.	
 	

NRE CHARGES	
 	

6
	

 	
 	

A.	
 	

NRE PAYMENT SCHEDULE	
 	

6
	

V.	
 	

SAMPLES & PROTOTYPES	
 	

8
	

VI.	
 	

PRODUCTION PRICING	
 	

8
	

 	
 	

A.	
 	

REGULAR PRODUCTION	
 	

8
	

 	
 	

B.	
 	

RISK PRODUCTION	
 	

9
	

VII.	
 	

TERMS & CONDITIONS	
 	

9

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

   I.     OVERVIEW  

        AMI Semiconductor, Incorporated (AMIS) is pleased to provide the following Firm Proposal for DexCom's Implantable Glucose Meter and Handheld Communicator. 

II.    DESIGN SPECIFICATIONS & ASSUMPTIONS  

	Parameter
 
	 	Assumption

	ASIC Technical Parameters
	Digital Gates	 	[*****]
	Digital Functions	 	[*****]
	Memory Elements	 	[*****]
	Analog/Megacell Functions	 	[*****]

[*****]
	Vector Count	 	[*****]
	Number of Pads	 	[*****]
	Library	 	[*****]
	Design Handoff	 	[*****]
	AMIS Implementation Parameters
	AMIS Device(1)	 	[*****]
	Die Size	 	[*****]
	Device Technology	 	[*****]
	Supply Voltage range	 	[*****]
	Operating Temperature	 	[*****]
	Test Requirements	 	[*****]
	Tester	 	[*****]
	Test Time	 	[*****]
	Production Parameters
	Package	 	[*****]
	Production Screening	 	[*****]
	NRE/Unit Price	 	See Tables 3 and 5

Table 1:    Implantable Meter Design Assumptions Handheld Assumptions: [*****]

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

3

 

III.  PROCEDURES & SCHEDULES  

        AMIS assures that all design needs will be satisfied in the [*****] process. 

 A. Design Procedure  

        The following is the list of design procedures: 

	•
	DexCom
and AMIS will do Phase 1 of the project where the specification is defined and finalized.

	•
	DexCom
and AMIS will jointly agree on the design and test specification.

	•
	Test
specification to be agreed upon before top-level design is complete.

	•
	AMIS
will be responsible for the mixed signal design, layout, generation of fab tooling and test development and prototype production.

	•
	DexCom
and AMIS will perform post layout review. Reticles can only be generated after review is complete.

	•
	AMIS
will manufacture, assemble, test and deliver baseline samples and prototypes. 

 B. Implantable Meter Design Schedule  

        The preliminary design schedule is given in NRE Charges below. Handheld Design Schedule will be conducted in parallel. 

	Development Task
 
	 	Customer
	 	AMIS
	 	Schedule

	AMIS Efforts(1)(3)
	Specification generation starts	 	X	 	X	 	[*****]
	T-0 Specification agreed to, Design starts	 	X	 	X	 	 
	Cell Design, Layout and Simulation	 	 	 	X	 	[*****]
	Design/Cell Reviews, Integration	 	 	 	X	 	[*****]
	Circuit Design and Simulation	 	 	 	X	 	[*****]
	Chip Level Layout / DRC / LVS	 	 	 	X	 	[*****]
	Prototype Fabrication Efforts
	Ship Tape-Tapeout(4)	 	 	 	X	 	 
	Generate Reticles	 	 	 	X	 	[*****]
	Water Fabrication(5)	 	 	 	X	 	[*****]
	Wafer Sort	 	 	 	X	 	[*****]
	Sample Assembly	 	 	 	X	 	[*****]
	Sample Test—25°C	 	 	 	X	 	[*****]
	Ship Samples	 	 	 	X	 	 
	Ship Prototypes	 	 	 	X	 	 
	Total to Samples	 	 	 	 	 	[*****]
	Total to Prototypes	 	 	 	 	 	[*****]

Table 2: Implantable Meter Design Schedule

	(1)
	These
schedules will vary with the quality of the ASIC design data received and do not include any engineering queue time. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

4

 
	(2)
	Specification definition and specification formalization phase must be completed and a firm specification in place by customer before AMIS begins design
work.

	(3)
	The
schedule only represents AMIS' part of the development and does not include any delays due to customer.

	(4)
	Tape
out is defined as completion and approvals of post-layout simulations. It is also assumed that all necessary DRC and LVS checking is completed.

	(5)
	Wafer
fabrication assumes a priority expedite in fab. Although AMIS makes every effort to secure these expedite for first silicon lots, AMIS does not guarantee that an expedite will
be available when the device starts fab—which could affect the schedule. If a priority expedite is not readily available the device will start in fab. Once in fab, the device may be placed
on an expedite, should one become available. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

5

 

IV.    NRE CHARGES  

        There is no NRE charge for the minor modification of the [*****] to meet the Handheld Requirements [*****].
[*****] of below NRE will be incentive based. See Table 3.

        This
NRE includes the following: 

	•
	Design
kit, documentation, and software macro libraries

	•
	Cell/Circuit
design and layout

	•
	QC
Simulation.

	•
	Layout,
Back Annotation

	•
	Schematic
1 Geometric Verification

	•
	Photomask
tooling and Mask sets

	•
	[*****] package selection

	•
	Test
program generation

	•
	[*****] samples tested per Note 1,  [*****] untested

	•
	[*****] per Spec 

 A. NRE Payment Schedule  

	Time in Months
	 	Milestone
	 	Payment

	Start	 	Specification generation starts	 	[*****]
	T-[*****]	 	Specification Agreed to, Design starts	 	[*****]
	T-[*****]	 	Preliminary Design Approved	 	[*****]
	T-[*****]	 	Critical Design Review	 	[*****]
	T-[*****]	 	Tape Out, Reticles ordered	 	[*****]
	T-[*****]	 	[*****] Tested Samples + [*****] untested parts Delivered per Note 1	 	[*****]
	T-[*****]	 	Sample on-time bonus	 	[*****]
	T-[*****]	 	[*****] Prototypes Delivered	 	[*****]
	T-[*****]	 	Prototype on-time Bonus per Note 2	 	[*****]
	T-[*****]	 	[*****] additional Prototypes delivered	 	[*****]
	 	 	TOTAL if Bonus Achieved:	 	[*****]

Table 3: NRE Payment Schedule

Note One:  

	

	AMIS
and Dexcom agree to a [*****] incentive for sample delivery, will be paid by
Dexcom to AMIS if the following circumstances are met at room temperature:

	1)
	Samples
delivered within [*****] weeks of time zero (T-0).

	2)
	All
specification changes requested by Dexcom after time zero will be evaluated and the schedule impact will be mutually agreed to and added, if appropriate, to schedule.

	3)
	Working
electrode current to count linearity of [*****] based on sample points at  [*****] and [*****].

	4)
	Total
average current consumption [*****]

	5)
	Working
electrode current to count minimum resolution down to [*****] per count. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

6

 
	6)
	Output
power range between [*****] and  [*****] dBm

	7)
	Transmit
Periodicity [*****] minutes  [*****] 

Note Two:  

	

	AMIS
and Dexcom agree to a [*****] incentive for prototype delivery, will be paid by
Dexcom to AMIS. [*****] are delivered not more than [*****] weeks from time zero fully tested to best
available test per Design Specification. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

7

 

V.     SAMPLES & PROTOTYPES  

        Upon successful completion and post layout verification, AMIS will manufacture, assemble, test, and deliver baseline samples, which are included in the NRE
charge. 

        Samples
are tested to best available test per Note 1. DexCom may wish to place an order for additional samples. 

        Upon
receipt of Sample Approval, AMIS will assemble [*****], which are included in the NRE charge. Prototypes are
tested to best available test per Test Specification. Shipment of prototypes is contingent upon successful completion of a specification compliant test. 

        Prototypes
and pricing are summarized in Table VI below. 

	AMIS Device
	 	Price

	Baseline Samples [*****] tested plus [*****] untested	 	Included in NRE (die only no [*****])
	[*****]	 	Included in NRE
	Additional Samples/Prototypes	 	The greater of [*****] or [*****]

Table 4: Prototype Pricing

VI.   PRODUCTION PRICING  

 A. Regular Production  

	Annual Volume
	 	Meter Unit Pricing
	 	Hand-Held Unit Pricing

	[*****]	 	[*****]	 	[*****]
	[*****]	 	[*****]	 	[*****]
	[*****]	 	[*****]	 	[*****]

Table 5: Production Pricing

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

8

 

 B. Risk Production  

	1.
	Risk
production orders must be placed prior to Tapeout.

	2.
	Pricing
for risk production is [*****] the low volume price with a  [*****] minimum. Maximum risk order is [*****]
units.

	3.
	Risk
lead-time is [*****] weeks from Tapeout. 

VII. TERMS & CONDITIONS  

	1.
	This
quote is valid for thirty (30) days, and is intended for the use of DexCom only.

	2.
	AMIS
Terms of Sale which will be sent to customer shall apply to any purchase order resulting from this quote.

	3.
	Production
units to be produced in accordance with AMIS specifications for Implantable Class 3 medical devices.

	4.
	Production
lead-times vary Please contact the factory.

	5.
	Wafer
Sort @ maximum operating temperature (all electrical tests).

	6.
	[*****] final test per spec.

	7.
	QC
testing at maximum operating temperature.

	8.
	A  [*****] under-run is allowed for production. The order balance will be canceled. 

* CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SEC. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

9

QuickLinks

Exhibit 10.10

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