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Related-Party Transactions
6 Months Ended
Jun. 30, 2018
Related-Party Transactions  
Related-Party Transactions

 

9. Related-Party Transactions

Board of Directors' Appointment

        We have entered into various agreements and contracts with Medtronic, one of our stockholders. Under these various agreements and contracts, Medtronic was allowed to name one person to be a member of our Board of Directors. In connection with the Series F Preferred Stock purchase agreement in 2016, Medtronic agreed to move from one voting member of our Board of Directors to two non-voting members. This right terminated in connection with the completion of our IPO.

Supply Agreement

        We contract with Medtronic to supply all of our commercial and clinical requirements of certain components used to manufacture the Inspire system. The current Supply Agreement expired on June 5, 2017 but was extended to allow Medtronic to complete a final build of the pressure sensor used in our original pressure sensing lead, which is expected to be completed in 2018. Upon a change of control event whereby we are owned or controlled by a competitor of Medtronic, Medtronic would have the right to terminate the Supply Agreement, provided that, upon any such termination we would be entitled to exercise a one-time buy right of inventory using current product pricing and upon terms to be agreed upon in the definitive agreements.

        We purchased inventory at arms-length with Medtronic, a related party, of $305 and $371 for the six months ended June 30, 2018 and 2017, respectively.

Right-of-First-Offer of the Company

        Under a Right-of-First-Offer with Medtronic that expired on May 16, 2017, had we decided to initiate a possible sale of our company prior to the expiration date, we would have been required to negotiate exclusively with Medtronic for such transaction for a period of 90 days prior to negotiating with a third party.