Canadian Internet advertising and sales policy

Effective October 1, 2012

ResMed makes superior products for the treatment of sleep-disordered breathing and other medical conditions. Patient compliance is an important aspect of effective treatment, and the involvement of health professionals greatly improves compliance. ResMed believes that its products are best sold directly to patients by a highly qualified network of medical equipment professionals. ResMed also believes the sale of its products on the Internet is most effective when coupled with the high degree of service provided by this network of customers. ResMed therefore chooses to authorize the sale of its products on the Internet only through customers that carry appropriate inventory sufficient to meet in person and online demand, provide superior patient service in person and on the Internet, and consistently promote the features and benefits of ResMed products in online advertising.

ResMed has established this Canadian Internet Advertising and Sales Policy (the "Internet Policy") to describe attributes of those customers it may authorize to advertise and sell ResMed's products on the Internet ("Internet Providers"). ResMed requires that its products be advertised and sold over the Internet only by Internet Providers and only if consistent with this Internet Policy.

ResMed chooses to permit Internet Providers to sell its products online if they meet the following criteria:

  1. Advertise and sell ResMed products over the Internet at prices at or above the prices set forth on ResMed's Minimum Internet Retail Price list applicable to products sold in Canada (the "Canada MIRP"). Specifically, Internet Providers may, but are not required, to use a "shopping basket" to sell ResMed products on the Internet in Canada. Similarly, Internet Providers may, but are not required, to use a secure website to sell ResMed products in Canada. The Canada MIRP will be updated as new products are introduced. ResMed reserves the right to change its Canada MIRP in its sole discretion to serve the needs of its customers, practitioners and patients.
  2. Do not advertise or sell ResMed products outside of Canada.
  3. Advertise and sell ResMed products only to patients in Canada and do not engage in business-to-business sales or sales outside of Canada.
  4. Buy ResMed products only from ResMed for delivery to Internet Provider's Canadian facility. Ship products only from the Internet Provider's Canadian facility and maintain a reporting system to track sales in the event of a need to inform patients of product related information.
  5. Do not reference or mention an assistive devices reimbursement program ("ADP") in any online advertisement. If an Internet Provider intends to refer to an ADP on its website, prior written consent must be obtained from ResMed. This requirement is not intended to prevent participation in an ADP or to set a particular price for ADP reimbursement.
  6. Advertise and sell ResMed products on the Internet in Canada only after receiving written permission to do so from ResMed.
  7. Do not advertise or sell ResMed products through any site other than the approved site, including but not limited to online auction sites, without ResMed's express written permission in advance.
  8. Do not use "call for price" or "call for quote" or other statements designed to circumvent this Internet Policy. Do not offer free or discounted products with the purchase of products covered by ResMed's Canada MIRP. Do not advertise or sell non-ResMed products together with ResMed products as part of a combined therapy product offering. This Internet Policy is not intended to restrict sales of non-ResMed products.
  9. Do not alter the intended use of, misbrand or promote off-label uses of ResMed products.
  10. Use only marketing material, logos, product images and collateral provided or authorized by ResMed. Prominently display ResMed logos and products on the Internet Provider's site. Do not disparage ResMed or its products.
  11. Identify ResMed products that require a doctor's instructions for use. Apply therapy settings in accordance with the doctor's instructions.
  12. Sell only new and unused ResMed products in original packaging. Sales of used, refurbished or tampered products, or in altered product packaging, are strictly prohibited.
  13. State clearly that all services are provided by the Internet Provider.
  14. State the Internet Provider's service policy on its website, including procedures for handling warranties and returns, customer service telephone numbers, and a street address for customer service and shipping returns.
  15. Comply with all laws applicable to the sale of ResMed products online or in person.

ResMed's Internet Policy is a unilaterally adopted policy. The Internet Policy is not a contract or an offer to form a contract or agreement. ResMed does not ask, and will not accept, any agreement about a customer's choice to follow the Internet Policy. The Internet Policy does not require any customer to charge a particular price for any ResMed product. If a customer violates this Internet Policy by selling ResMed products at prices lower than the Canada MIRP, then ResMed reserves the unilateral right to refuse to sell that product to the customer, to stop selling that category of products to the customer, to suspend or terminate customer's Internet Provider status, to terminate its ResMed account, or take such other actions as ResMed, in its sole discretion, deems appropriate in light of the particular circumstances.

ResMed will not discuss the business dealings of any customer with any other customer. ResMed acts in its sole interest, based on its own information and decisions, in administering this Internet Policy to promote its success and the overall success of its customers and patients. ResMed reserves the right to change or discontinue this Internet Policy at any time. No customer has any right to rely on its continued existence. ResMed always reserves the right to choose those customers with which it will do business consistent with applicable laws. The Internet Policy is separate from ResMed's terms and conditions for sale contained on the reverse side of each ResMed invoice.

ResMed's sales representatives are strictly prohibited from discussing retail pricing practices with any customer and from seeking or accepting any agreement from any customer with respect to compliance with this Internet Policy. All questions regarding this Internet Policy should be directed, in writing, to InternetPoliciesQuestions@resmed.com.

Internet Providers currently authorized to sell ResMed products online pursuant to ResMed's prior version of the Internet Policy, dated February 1, 2012, may continue to sell products on the Internet subject to the conditions set forth in this Internet Policy, effective October 1, 2012.

A French language version of this policy is available upon request. Une version fran├žaise de cette police est disponible sur demande.

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