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Exhibit 10.06    
    

January 31,
2005 

Andy
Rasdal

c/o DexCom, Inc.

5555 Oberlin Drive

San Diego, California 92121 

	Re:
	Amended and Restated Employment Agreement

Dear
Andy, 

        This
letter agreement ("Agreement") will set forth the terms of your continued employment with DexCom, Inc. (the
"Company") as its President and Chief Executive Officer and amends and restates the existing offer letter agreement between you and the Company dated
November 14, 2001. 

        You
will be expected to diligently perform various duties consistent with your position. You will work at our offices located at 5555 Oberlin Drive, San Diego, California. 

        Your
annual compensation will consist of a $337,000 salary. You will be paid bi-weekly less payroll deductions and all required withholdings. You will be eligible for the
following Company benefits: medical insurance and 15 days of paid vacation annually. You will accrue 15 days of vacation per year. Details about these benefits are provided in the
Company's Employee Handbook and Summary Plan Descriptions. The Board of Directors, or its compensation committee, will determine the actual amount of any bonus to be paid to you each year, and may
modify Company benefits from time to time, as it deems necessary. 

        You
have been granted the following options to purchase shares of the Company's Common Stock under its 1999 Stock Option Plan (the
"Plan"): 

	1)
	Option
to purchase 1,000,000 shares granted on 12/12/01;

	2)
	Option
to purchase 300,000 shares granted on 12/12/01;

	3)
	Option
to purchase 156,000 shares granted on 2/10/04;

	4)
	Option
to purchase 300,000 shares granted on 3/11/04; and

	5)
	Option
to purchase 366,000 shares granted on 12/24/04 

        The
terms and vesting provisions of each such option are as set forth in the applicable Stock Option Agreement, the Plan, the Amended and Restated Executive Change of Control Agreement
between you and the Company dated of even date herewith and attached hereto (the "Amended and Restated Executive Change of Control Agreement");  provided,
however, that notwithstanding anything to the contrary in the Stock Option Agreement governing
option no. 2) above vesting on option no. 2) above shall occur as follows: 25% of the 300,000 shares issuable thereunder (i.e., 75,000 shares) were vested as of February 1,, 2003
and thereafter the shares have vested and continue to vest at a rate of 1/48th of the 300,000 (i.e., 6,250) shares per month, subject to your continuing to provide "Continuous Service"
to the Company (as defined in and governed by the Plan). 

        As
a Company employee, you will be expected to abide by Company rules and regulations and acknowledge in writing that you have read the Company's Employee Handbook, which will govern the
terms and conditions of your employment. The Company's Employee Handbook may be modified from time to time at the sole discretion of the Company. 

        In
the event that you terminate your employment with the Company after a change of control, you will agree not to compete, in the field of glucose monitoring or other fields for which
you were directly responsible as President and CEO, for a period of 1 year following the change of control date. 

        Your
employment with the Company is not for a guaranteed or definite period of time. Rather, the employment relationship is "at will". This means that you may terminate your employment
with the 

Company
at any time and for any reason whatsoever simply by notifying the Company. Likewise, the Company may terminate your employment at any time and for any reason whatsoever, with or without
"cause" or advance notice. Should the Company terminate your employment at any time without "cause" you will be entitled to a lump sum payment equivalent to 12 months salary at your then
current annual salary rate. If you terminate your employment due to a "constructive termination", you will be entitled to 12 months salary at your then current salary rate. For the purposes of
the preceding sentences, your employment may be terminated for "cause" only if you have engaged in (i) willful misconduct or gross negligence in the performance of your duties; (ii) a
material breach of your Proprietary Information and Inventions Agreement; or (iii) the commission of a felony affecting the Company or its business. Should you elect to terminate your
employment for any reason other than "constructive termination," you are not eligible for any severance and you agree not to compete as described above in this letter with the Company for a period of
1 year from your termination date. For the purposes of this paragraph, you may terminate your employment due to a "constructive termination" only if (i) either your title or your annual
salary and bonus potential are reduced from that set forth herein or (ii) the headquarters of the Company is moved more than 50 miles from its present location;  provided in either case that you
give notice of such constructive termination within 30 days of the occurrence of such event. This
at-will employment relationship cannot be changed except in a writing signed by a duly authorized Company officer. 

        This
letter, together with your Proprietary Information and Inventions Agreement and the Employee Handbook, forms the complete and exclusive statement of the terms of your employment
with the Company. The employment terms in this letter supersede any other agreements or promises made to you by anyone on behalf of the Company, whether oral or written, including without limitation
the terms of the letter agreement between you and the Company dated November 14, 2001. Nothing in this letter agreement shall be deemed to modify the terms of your existing Stock Option
Agreements governing your five option grants listed above or the Amended and Restated Executive Change of Control Agreement, except that the vesting provisions for option no. 2) set forth above
shall be deemed to supercede the vesting provisions for such option set forth in the relevant Stock Option Agreement. You and the Company further agree that the letter agreement between you and the
Company dated June 25, 2003 is superceded by this letter agreement and the Amended and Restated Executive Change of Control Agreement and that the June 25, 2003 letter agreement is
hereby terminated. This letter will be binding and shall inure to the benefit of the Company, its successors, and its assigns. The term "Company" as used herein shall include such successors and
assigns to the extent applicable. 

	Sincerely,	 	 
	 	 	 
	/s/  DONALD L. LUCAS      
 Donald L. Lucas

Chairman of the Board	 	 
	 	 	 
	 	 	 
	Accepted and agreed	 	 
	 	 	 
	/s/  ANDY RASDAL      
 Andy Rasdal	 	 
	 	 	 
	 	 	 
	January 31, 2005	 	 

        Attachment:
Amended and Restated Executive Change of Control Agreement 

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Exhibit 10.07    
    

January
31, 2005 

c/o
DexCom, Inc.

5555 Oberlin Drive

San Diego, California 92121 

Dear            :

        This
letter will set forth the agreement between you and DexCom, Inc. (the "Company") with respect to vesting acceleration of any
Company stock options you may hold and severance. 

        In
the event that in connection with, or within twelve months following, a "change of control" (as defined below) you are terminated by the Company other than for "cause" (as defined
below) or you resign following a change of control as a result of either (i) a material adverse change in your duties and title, (ii) a reduction in your annual salary and bonus
potential, or (iii) the offices to which you are required to report being relocated by more than 50 miles from the Company's present location, all of your unvested shares (100%) under any
option to purchase shares of the Company's Common Stock that you may currently hold or subsequently receive will vest immediately and you will also be eligible for your severance as specified below
(subject to the condition of signing a full release of claims as specified below). As used herein, "change of control" means (i) a consolidation,
merger or other reorganization of the Company with or into any other entity or entities (excluding an equity financing) in which the holders of the Company's outstanding shares immediately before such
consolidation, merger or other reorganization do not, immediately after such consolidation, merger or reorganization, retain stock representing a majority of the voting power of the surviving entity
of such consolidation, merger or reorganization as a result of their shareholdings in the Company immediately prior to the consolidation, merger or other reorganization; or (ii) a sale of all
or substantially all of the assets of the Company and its subsidiaries, on a consolidated basis. 

        Should
the Company terminate your employment at any time without "cause" you will be entitled to 6 months of salary continuation at your then current base salary, subject to your
executing a full release of claims against the Company. For the purposes of the preceding sentence, your employment may be terminated for "cause" only
if you have engaged in (i) willful misconduct or gross negligence in the performance of your duties; (ii) a material breach of your Employee Proprietary Information and Inventions
Agreement; or (iii) the commission of a felony affecting the Company or its business. 

        In
the event that vesting on any stock options held by you is accelerated or you are paid severance as specified above, you agree not to compete in the field of glucose monitoring or
other fields for which your were directly responsible at the Company for a period of one year following the acceleration or initial payment of severance. During that same one year period, you agree
not to, directly or indirectly, recruit, attempt to hire, solicit, or assist others in recruiting or hiring, any person who is an employee of Company or any of its subsidiaries or induce or attempt to
induce any such employee to terminate his employment with Company or any of its subsidiaries. 

        This
letter will form the complete and exclusive statement of your agreement with the Company with respect to vesting acceleration or severance. It supersedes any other agreements or
promises made 

1

 

to
you with respect to the subject matter hereof by anyone, whether oral or written, and it can only be modified in a written agreement signed by you and by an officer of the Company. 

	 	 	Sincerely,
	 	 	 
	 	 	 
	 	 	Andy Rasdal

President and CEO
	 	 	 
	 	 	 
	Accepted and Agreed:	 	 
	 	 	 
	 	 	 
	    
	 	 
	 	 	 
	1/31/05
 Date	 	 

2

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Exhibit 10.07

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