Document:

exv10w62

 

EXHIBIT 10.62

Cardiac Science Corporation

Certain Executive Officers — 2007 Base Salaries

     Base salary amounts were approved by the Compensation Committee, effective March 15, 2007, as
set forth below. The compensation arrangement between the Company and each executive officer listed
below is governed by an employment agreement between the Company and each executive officer.

	 	 	 	 	 	 	 
	Name	 	Title	 	2007 Base Salary
	 
	 	 	 	 	 	 
	John Hinson
	 	President and Chief Executive Officer	 	$	350,000	 
	 
	 	 	 	 	 	 
	Michael Matysik
	 	Senior Vice President, Chief Financial Officer and Secretary	 	$	240,000	 
	 
	 	 	 	 	 	 
	Kurt Lemvigh
	 	Vice President, International	 	DK	1,799,640	 
	 
	 	 	 	 	 	 
	Darryl Lustig
	 	Vice President, North America Cardiology Sales	 	$	215,000	 
	 
	 	 	 	 	 	 
	Garry Norris
	 	Vice President, Marketing	 	$	225,000exv10w66

 

EXHIBIT 10.66

OEM SUPPLY AND PURCHASE AGREEMENT

          This OEM Supply and Purchase Agreement (“Agreement”) is made as of March 1, 2002 by and
between Nihon Kohden Corporation with offices at 31-4 Nishiochiai 1-chome, Shinjuku-ku, Tokyo
161-8560 Japan (hereinafter referred to as “NK”), and Cardiac Science Inc., with offices at 16931
Millikan Avenue, Irvine, California, USA 92606 (hereinafter referred to as “CSI”) (NK and CSI each
being a “Party”, and collectively the “Parties”).

RECITALS

          CSI is a manufacturer of various medical devices including automated external defibrillators
(“AEDs”) and Replacement Electrodes referred to collectively as (“Products”) as defined in Appendix
1 below which, among other things, externally defibrillate a human heart.

          NK develops, manufactures, distributes and sells various medical devices and systems including
patient monitoring systems and defibrillators.

          NK desires to purchase from CSI, and CSI desires to sell to NK certain AEDs and Replacement
Electrodes made by CSI for sale under one or more of NK’s trademarks or brand names. CSI Products
sold under the NK trademark or brand name will be sold exclusively by NK on a worldwide basis both
inside and outside the Japanese domestic market.

          NOW THEREFORE, in consideration of the mutual promises and covenants hereinafter contained,
and other consideration the receipt and sufficiency of which is hereby acknowledged, it is hereby
agreed between the parties as follows:

TERMS AND CONDITIONS

1. GRANT OF RIGHTS

     1.1 License. Subject to the terms of this Agreement, CSI grants to NK the
non-assignable and non-transferable right and license to:

          (a) Resell and sub-license the NK-branded AEDs to End-Users or to other third parties for
sale;

          (b) Resell and sub-license the Replacement Electrodes to End-Users or to other third parties
for sale and sub-license to End-Users for use only with AEDs;

          (c) Use CSI Marks in connection with the marketing, resale and sublicensing of Products,
pursuant to CSI’s prior written approval, such approval not to be unreasonably withheld; and

          (d) Resell and sub-license the Products as provided herein under NK’s own Marks and using
NK’s own labeling and packaging; provided, however, that NK maintains all CSI Marks and other
proprietary notices contained on the Products.

 

[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.

 

 

     1.2 Enforcement. NK shall enforce its obligations under this Agreement with respect
to sublicenses granted by NK pursuant to this Agreement and, upon the request of CSI, shall
enforce, at NK’s cost, the rights of CSI with respect to any such sublicense and shall cooperate
with CSI, at NK’s cost, in any action by CSI to enforce its rights with respect to any such
sublicense, including by providing to CSI all information and assistance that CSI considers
reasonably useful to pursue such action. NK’s sale, distribution or other transfer of Products to
a distributor or a third party for resale to an End-User shall not prevent CSI from enforcing its
rights pursuant to this section.

     1.3 Reservation of Rights. Except as expressly provided herein, CSI does not grant to
NK any license or Intellectual Property Rights, whether by implication, estoppel or otherwise in
and to the Products, CSI Marks and CSI Confidential Information. NK shall not: (a) reverse
engineer, decompile, or otherwise tamper with the Products; (b) permit any third party including
distributors or End Users to do any of the foregoing.

2. SCOPE OF THE OEM SUPPLY AND PURCHASE AGREEMENT

     2.1 For the term of this Agreement, on the terms and conditions provided herein, CSI agrees to
sell and NK agrees to purchase the Products more closely specified in Appendix 1 hereto in such
quantities as NK orders from time to time pursuant to Section 3.

     2.2 CSI shall supply to NK Products that conform to the technical specifications defined in
Appendix 3 hereto and in accordance with the warranty in Section 9.1.

     2.3 Parties shall cooperate and provide to each other in a timely fashion all information
necessary to facilitate the OEM version of the AEDs.

     2.4 NK agrees to pay CSI for any and all non-recurring engineering (“NRE”) costs and other
expenses associated with any modifications to the Products requested by NK including the NK color
and labeling under one or more of NK’s trademarks or brand names and any modifications to the
casing, internal electronics, software or interfaces of the AED. The Parties will agree in advance
as to the nature and the amount of the NRE costs and expenses associated with the aforementioned
modifications.

     2.5 All artwork, packages and labels (if any) prepared by CSI in connection with the NK name
shall be sent to NK for approval.

     2.6 For convenient reference, each of the capitalized terms used in this Agreement is defined
in Appendix 4.

3. TERM AND TERMINATION

     3.1 Duration. This Agreement becomes effective as of the Effective Date and continues
in full force and effect, unless sooner terminated as set forth below, until [*] (the
“Term”), with an automatic one (1) year renewal (the “Renewal Term”) unless either party provides a
ninety (90) day prior written notice of its intent not to renew the Agreement.

 

[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.

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     3.2 Termination. Either party (the “terminating party”) may immediately terminate
this Agreement upon notice to the other in the event that the other party: (a) breaches any
material term of this Agreement, including the obligation to pay amounts due under this Agreement
and such breach is not cured within thirty (30) days after notice from the terminating party; or
(b) immediately upon written notice to the other party in the event that proceedings in bankruptcy
or insolvency are instituted by or against the other party, or a receiver is appointed, or if any
substantial part of the assets of the other party is the object of attachment, sequestration or
other type of comparable proceeding, and such proceeding is not vacated or terminated within thirty
(30) days after its commencement or institution

     3.3 Effect of Expiration or Termination. Upon any expiration or termination of this
Agreement, the following provisions apply:

          (a) NK will promptly remit to CSI all money due as of the date of expiration or termination;
and if CSI terminates this Agreement pursuant to Section 3.2(a), then NK shall reimburse CSI for
its actual costs of raw materials and components used to manufacture the Products which CSI has
procured in order to supply the Products anticipated by this Agreement, and all work-in-process
related to such Products; provided, however, that (i)NK shall only be required to reimburse CSI for
such volume of raw materials, components and work-in-process that CSI reasonably determines is
unable to utilize for any reasonable period in products other than the Products; and (ii) the
amount of any such reimbursement shall be reduced by any refunds that CSI is able to obtain upon
making reasonable efforts to return such raw materials and components to the vendors thereof. In
the event of termination of this Agreement NK may sell and sublicense the Products existing in its
inventory at expiration or termination;

          (b) NK shall have no further right to use CSI’s Marks and shall return all promotional
materials that contain CSI Marks to CSI;

          (c) NK promptly shall return to CSI all CSI Confidential Information in NK’s possession. NK
shall be entitled to retain, however, copies any data and information that NK may be obligated to
retain for Quality Control and warranty purposes and/or the requirements of any government agency
or applicable law.

          (d) CSI shall continue to supply Licensed Replacement Electrodes to NK for at its standard
published dealer prices under such terms that are mutually agreeable to the parties and NK shall
have a right to keep providing sales support for the Product to end users customer after expiration
and/or termination of the Agreement.

          (e) NK shall not by reason of the termination or expiration of this Agreement in accordance
with its terms be liable to CSI for compensation, reimbursement or damages on account of lost
prospective profits or anticipated sales, or on account of expenditures, investments, leaves or
commitments by CSI or on any other account.

 

[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.

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4. NK OBLIGATIONS

     4.1 Applicable Laws.

          (a) NK shall comply with all applicable laws, rules and regulations in all of its activities
relating to this Agreement including the U.S. export laws, and to the marketing, sale, lease,
license, promotion, distribution, export, import and transfer of the Products, including without
limitation, obtaining any and all registrations and licenses required for the operation of NK’s
business and the marketing, sale, lease, license, promotion, distribution, export, import and
transfer the Products.

          (b) NK shall be solely responsible for and agrees to provide, in connection with the sale,
offer to sell, license, lease, import, export, transfer or distribution of Products, such labeling,
manuals, or other information as may be required by applicable laws, including but not limited to
instructions, warning and preventions.

          (c) NK shall maintain in effect, pursuant to applicable laws including but not limited to
21CFR 821 of the U.S. Code of Federal Regulations, a system of tracking each of the Products, and
shall provide such information to CSI. Such a system shall, at a minimum enable CSI to promptly:

     (i) identify each Product to its final and/or current location.

     (ii) if appropriate to recall, remedy, repair or modify any or all of the Products,
and/or notify the owners or possessors thereof, in the event of a recall affecting the
Products;

     4.2 Documentation and Models. NK shall provide CSI with one copy of the operations
manuals for each AED model sold under NK’s tradename. When a manual is revised, a copy of the
revised manual will be provided within 30 days after the revised manual is first issued.

     4.3 Responsibility. NK shall be jointly and severally liable to CSI for the actions
and omissions of its officers, employees, agents, directors, representatives, distributors,
sub-dealers, End-Users and other sublicenses with respect to performance under any license or
sub-license granted or authorized hereunder or related to the subject matter thereof.

5. CSI OBLIGATIONS

     5.1 Supply. CSI shall provide Products to NK pursuant to the terms and conditions
specified herein. Notwithstanding the foregoing, CSI shall be relieved of the obligation to supply
such Products in the event that any of the following circumstances occurs: (i) a third party
claims that any of the Products infringes or misappropriates its intellectual property; and (ii)
any product recall involving any of the Products. CSI shall not be required to provide any direct support
to End-users unless mutually agreed upon by CSI and NK in writing.

     5.2 Modifications. NK may request modifications to the Products, which would result
in a deviation from the description of the Products in the Technical Specifications which is
specified

 

[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.

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in Appendix 3; provided such a request is made at least ninety (90) days prior to the
desired effective date of such modification. The parties shall negotiate in good faith any such
requested modification, including any related amendments to this Agreement to provide for
reimbursement for any non-recurring costs that CSI will incur to effect such modifications and any
adjustments to the prices hereunder to reflect any increased costs of manufacturing the Products as
a result of such modification. If the parties are unable to agree upon such requested modification
and related amendments to this Agreement within such ninety (90) day period, this Agreement and the
Document shall continue in effect without change;

     5.3 Training. CSI shall provide training on the Products for certain NK’s sales
personnel, engineers or its clinical specialists. CSI’s training on the Products will be provided
as reasonably agreed upon by the parties.

     5.4 Development. CSI shall use commercially reasonable efforts to complete agreed
upon modification and deliver Licensed AEDs to NK by the earlier date of March 31, 2002 or JMHW
approval date, pursuant to NK’s purchase order.

     5.5 CSI Product Changes. CSI shall inform NK about any changes of specification or
any other material changes to the Products at least 240 days prior to their implementation. If the
proposed modification might affect the performance, quality or functioning of the Products or the
approvals, permissions, consents or licenses applicable to them, CSI shall not modify the Products
unless NK has given its consent to the modification in writing. If NK gives its consent to the
proposed modification, the modified Products shall replace the prior version of the Products and
the terms and conditions of this Agreement shall continue to apply. If the modified Products are
not acceptable to NK, CSI shall, if feasible, continue to deliver to NK unmodified Products.

     5.6 Out of warranty service. With respect to out-of-warranty product returns, CSI
shall agree to repair or replace, but only in case of not repairing, the defective Product. NK
shall contact CSI and inform CSI of the relevant information and request a returned goods
authorization and CSI shall give a return authorization number. As promptly as possible, but not
later than ten (10) working days after CSI’s receipt of the defective Products, CSI shall repair or
replace the defective Product. CSI shall provide a repair/replacement report together with any
product being returned. Each Party shall bear own shipping costs. Title and risk of loss or
damage to the product shall pass to the other party upon delivery to the other party’s carrier.
The Parties will agree in advance as to the nature and the amount of the repair or replacement
costs and expenses associated with the defective Product.

     5.7 Product Discontinuation. If CSI plans to discontinue manufacturing of any of the
Product from its product line, it shall notify NK about the intended removal in writing at least
240 days in advance. CS will make its best commercial effort to provide substitute product if
Product, as defined in Appendix 1, is discontinued.

     5.8 Spare Parts. CSI will make best effort to make compatible spare parts will be
available on reasonable commercial terms for a period of at least [*] from the delivery by CSI of
the Product in question. NK understands that there may be no spare parts for the Products other
than

 

[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.

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the Products themselves or their replacements. Accordingly, in such cases where spare parts
are reasonably required for necessary repair of such Products, CSI shall replace the Product in
question with replacements that are reasonably acceptable to NK and on reasonable commercial terms.

     5.9 Applicable Laws and Regulations.

          (a) CSI shall manufacture the Products in compliance with FDA, ISO 9001, the MDD (the Counsel
Directive 93/42/EEC concerning medical devices promulgated by the Counsel of the European
Communities as amended) and all other applicable laws and regulations.

          (b) CSI shall obtain all necessary regulatory clearances and approval for the Products
including FDA, UL and CE, and will assist NK’s efforts to the extent reasonably necessary, in
obtaining any regulatory approvals necessary for the use of the Products. In this case of JMHW,
the parties shall cooperate with each other to attain necessary approvals.

     5.10 CSI Notification. Notification of quality control and assurance from CSI to NK
shall be as set forth in Appendix 5. CSI will indemnify and hold NK harmless from and against any
and all direct damages sustained as the result of CSI’s failure to provide timely notice of Product
failure or defect as detailed in the Appendix 5.

6. ORDERS

     Unless expressly otherwise agreed, all sales under this Agreement shall be between CSI as
seller and NK as purchaser.

     6.1 NK shall submit to CSI periodic forecasts every three (3) months (4 times per year) of its
anticipated requirement of the Products for the subsequent six (6) month period. The purchase
forecasts are not binding on NK. The forecasts shall be provided in good faith. CSI shall notify
NK of any inability as a result of causes beyond CSI’s control (i.e. Force Majeure) to supply
according to NK’s forecasts no later than four (4) weeks prior to the forecast date of shipment and
in such case shall inform NK of the maximum amount it is able to supply.

     6.2 NK shall order Products from CSI by issuing written purchase orders. Purchase orders (a)
for AEDs shall be issued at least sixty (60) days in advance of the requested shipment date.
Purchase orders for Electrodes shall be issued at least thirty (30) days in advance of requested
shipment date.

     6.3 In order to initiate the Agreement, NK shall order the following Products and quantities
from CSI:

	 	 	 
	Item to be ordered	 	Minimum Opening Order Quantity
	NK-branded AED — modified FirstSave
monophasic version (includes
accessories)
	 	[*]
	 
	 	 
	NK-branded AED — biphasic version
	 	Order quantity to be determined
	 
	 	upon approval by JMHW)

 

[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.

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     6.4 Unless otherwise agreed between the Parties, NK may reschedule in writing, delivery of any
Product on purchase orders with CSI within the following guidelines:

	 	 	 
	Days from Scheduled Shipment Date:	 	Allowed Changes
	AEDs [*] days

	 	No changes
	 
	 	 
	AEDs [*] days

	 	[*] percent (plus or minus)
	 
	 	 
	AEDs [*] days

	 	[*] percent (plus or minus)

	 	 	 
	Days from Scheduled Shipment Date	 	Allowed Changes
	Electrodes [*] days

	 	No changes
	 
	 	 
	Electrodes [*] days

	 	[*] percent (plus or minus)
	 
	 	 
	Electrodes [*] days

	 	[*] percent (plus or minus)

     6.5 Every purchase order given by NK will be deemed to be a separate purchase contract under
the terms of this Agreement. Cardiac Science may at its sole discretion refuse to accept or may
cancel any outstanding purchase order in the event that any of the following circumstances occurs:
(i) CSI determines or a third party claims that any of the Products infringes or misappropriates
its intellectual property; and (ii) any product recall or similar corrective action involving any
of the Products which is required to be reported under the FDA’s Medical Device Reporting
requirements such as 21 CFF Part 803.

7. DELIVERIES

     7.1 Delivery and Shipping. Unless expressly otherwise agreed in writing, all orders
shall be delivered by CSI EXW Irvine, CA, interpreted in accordance with INCOTERMS (2000 Edition).
CSI shall use its commercially reasonable efforts to ship the Products with test reports in time
for them to arrive by delivery dates agreed upon in compliance with the ordering procedure
described herein. CSI shall notify NK of any anticipated delivery problems in advance, but CSI
shall not be responsible for any loss or liability suffered by NK as a result of delay in delivery
or replacement of any order. NK agrees, however, that for shipments destined to locations outside
the U.S., where transit time is expected to take more than one week, the minimum lead time for
orders may be appropriately increased by CSI to reasonably account for such additional transit
time. Title and risk of loss to Products purchased under this Agreement shall pass to NK upon
delivery thereof to the carrier.

 

[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.

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     7.2 Packaging. Unless NK specifies otherwise, deliveries of the Products shall be
made in CSI’s standard delivery containers, which are reasonably designed to avoid damage during
delivery and inventory phases. Delivery shall be made to such address as NK specifies in a
purchase order. NK shall pay reasonable costs of any special packaging that it requires.

     7.3 Taxes. Except as expressly stated otherwise, prices set forth herein do not
include any existing or future taxes, tariffs, fees, duties, assessments or other charges (other
than income taxes assessed on CSI) that may be applicable to the Products supplied to NK pursuant
to this Agreement. If such additional sums are required to be withheld, collected, or paid, then
CSI shall add them to the price payable by NK.

     7.4 Acceptance. NK shall inspect Products promptly upon receipt at the shipping
destination and may reject any non-conforming Products. Any product not rejected by written notice
to CSI within thirty (30) days of NK’s receipt shall be deemed accepted. Upon reasonable request,
CSI shall provide reasonable assistance to NK in order to determine whether any of the Products are
non-conforming. Rejected goods shall be returned freight prepaid by CSI within ten (10) days after
receipt of a return authorization number from CSI. No returns will be accepted without a return
authorization number. As promptly as possible, but not later than ten (10) working days after
CSI’s receipt of properly rejected goods, CSI shall, at its option and expense, either repair or
replace properly rejected goods. CSI shall provide a repair/replacement report together with any
product being returned. Title and risk of loss or damage to the products shall pass to the other
party upon delivery to the other party’s carrier. CSI will prepay transportation charges back to
NK and shall reimburse NK for any costs of transportation incurred by NK in connection with the
return to CSI of properly rejected goods. Other than as permitted in this Section or under the
terms of the warranty stated herein, goods may not be returned to CSI.

     7.5 Failure to Pay Duties. NK shall bear all applicable taxes (such as sales, use or
similar taxes); all customs, duties, and similar charges; and all personal property taxes
assessable on Products after delivery to the carrier at CSI’s plant. In the event of NK’s failure
to pay any amounts due CSI within the time herein provided, CSI may, in addition to other remedies
available to it, cease acceptance and /or delivery of orders for Products from NK until such time
as NK’s payments are current and may thereafter condition acceptance and delivery of future orders
on such other or additional payment terms as it shall, in its discretion, determine.

     7.6 Inspection. NK may, by itself or through its appointed representative, during
regular business hours and following reasonable notice to CSI, inspect CSI’s physical facilities
and CSI’s quality control procedures in order to assure compliance with the specifications, quality
requirements and other applicable standards. In the event that NK determines that the quality
procedures applied by CSI are insufficient as to ensure consistent acceptable quality, NK shall
specifically inform CSI thereof and of its recommended corrective measures to be undertaken by CSI.
CSI agrees to evaluate such recommendation in good faith. CSI agrees to take all appropriate
measures in order to ensure compliance of its sub-suppliers with the foregoing. Any
circumstance which might lead to modification or cancellation of CSI’s quality certificate(s)
or status as an FDA registered manufacturer in good standing, shall be immediately informed to NK
in writing.

 

[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.

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8. PRICES AND TERMS OF PAYMENT

     8.1 Prices. The prices for the Products shall be as set forth in Appendix 2 and
unless expressly otherwise agreed by the Parties CSI shall sell and NK shall purchase the Products
during the Term from April 1, 2002 to March 31, 2003 at those prices. Prices after such term shall
be based upon mutual agreement of the parties.

     8.2 Credit. Any credit terms set forth for NK hereunder shall be subject to the
condition that open account credit is established and maintained to CSI’s satisfaction and that
shipment of any delivery will not cause NK to exceed such credit limit as CSI may from time to time
establish. Unless expressly otherwise agreed in writing, payment for all Products shall be made by
NK in US dollars by wire transfer within thirty (30) days from the date of arrival of the Products
at NK’s premises or such other destination as may have been specified in the purchase order. In
addition to all of the other rights and remedies to which CSI shall be entitled, CSI shall be
entitled to interest on overdue payments at the rate of twelve (12) per cent per annum or highest
rate permitted by the applicable law, whichever is lower. In the event of NK’s failure to pay any
amounts due CSI within the time herein provided, CSI may, in addition to other remedies available
to it, cease acceptance and/or delivery of orders for Products from NK until such time as NK’s
payments are current.

9. CSI REPRESENTATIONS AND WARRANTIES

     9.1 General. CSI’s warranty obligations for the Products supplied by CSI shall be set
forth in subsection (a) — (e) below:

          (a) CSI represents and warrants that the Products supplied by CSI resulting shall be in
accordance with the specifications and quality requirements specified in this Agreement and for a
period of fifteen (15) months after delivery by CSI of each Product to NK, such Product, (i) will
function in accordance with the applicable specifications; and (ii) will be free from defects or
faults in design workmanship and materials;

          (b) Product as provided by CSI, and as of the Effective Date, are in compliance with all
applicable requirements of U.S. and Japanese law or regulation. As stated in Section 13.3 herein,
CSI will make its best effort to be in compliance with applicable regulatory requirements of other
foreign countries in which the Products may be marketed;

          (c) CSI shall maintain quality control procedures in compliance with the requirements of the
following quality systems ISO 9001, EN 46001 or ISO 13485, US GMP 21 CFR 820 (“the US GMP”) and the
Council Directive 93/42/EEC concerning medical devices promulgated by the Council of the European
Communities as amended (“the MDD”). If requested by NK, CSI shall provide NK with appropriate
documents evidencing that the Products comply with the essential requirements of the MDD and US GMP
product standards. CSI grants NK the right, by
itself or through its appointed representative, during regular business hours and following
reasonable notice to CSI, to inspect CSI’s physical facilities and CSI’s quality control procedures
in order to assure compliance with the specifications, quality requirements and other applicable
standards as required by JMHW ordinances. In the event that NK
determines that the quality

 

[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.

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procedures applied by CSI are insufficient as to ensure consistent acceptable quality, NK shall
specifically inform CSI thereof and of the reasonable corrective measures recommended to be
undertaken by CSI. CSI agrees to consider in good faith any such recommended corrective measures
without delay. CSI agrees to take all appropriate measures in order to ensure compliance of its
sub-suppliers with the foregoing;

          (d) CSI has good and marketable title, and the right to license or sell the Products free and
clear of all liens, security interests and encumbrances;

          (e) CSI has the legal capacity to execute this Agreement and to perform its obligations
hereunder; and execution and delivery of this Agreement by CSI and performance of its obligations
hereunder shall not violate any applicable U.S. laws.

     9.2 Remedies. (a) If CSI breaches any of its warranties described in Section 9.1, CSI
will, in its sole discretion, either: (i) repair or replace the Product under the applicable
warranty, or (ii) refund any fees already paid for the non-conforming goods. If CSI decides to
repair or replace a Product, NK shall contact CSI and inform CSI of the relevant information and
request a returned goods authorization. If CSI gives a returned goods authorization, CSI will bear
shipping costs in transit in both directions; provided, however, CSI will only bear CSI’s shipping
costs to CSI if NK ships via a carrier designated by NK and directs the carrier bill to CSI. Title
and risk of loss or damage to the Product shall pass to the other party upon delivery to the other
party’s carrier. CSI shall ship the repaired or replacement Product to NK with repair/replacement
report as promptly as possible, but not later than ten (10) working days after CSI’s receipt of the
non-confirming Products.

     9.3 Limitations.

          (a) THE EXPRESS WARRANTY PROVIDED IN THIS ARTICLE 9 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN
BY CSI WITH RESPECT TO THE PRODUCTS, AND CSI GIVES AND MAKES NO REPRESENTATIONS OR WARRANTIES OF
ANY KIND, EXPRESS OR IMPLIED, OTHER THAN THE FOREGOING. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, NO IMPLIED WARRANTY OF MERCHANTABILITY, NO IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR
PURPOSE, AND NO IMPLIED WARRANTY ARISING BY USAGE OF TRADE, COURSE OF DEALING OR COURSE OF
PERFORMANCE IS GIVEN OR MADE BY CSI OR SHALL ARISE BY OR IN CONNECTION WITH ANY SALE OR PROVISION
OF THE PRODUCTS BY CSI OR NK’S USE OR SALE OF THE PRODUCTS OR NK’s AND CSI’s CONDUCT IN RELATION
THERETO OR TO EACH OTHER. NO REPRESENTATIVE OF CSI IS AUTHORIZED TO GIVE OR MAKE ANY OTHER
REPRESENTATION OR WARRANTY OR TO MODIFY THE FOREGOING WARRANTY IN ANY WAY. THE REMEDIES SET FORTH
IN SUCH EXPRESS WARRANTY ARE THE ONLY REMEDIES AVAILABLE TO ANY PERSON FOR BREACH OF WARRANTY.

          (b) The warranties described in Article 9 do not extend to any Products that have been subject
to misuse, neglect or accident; that have been damaged by causes external to the Products,
including but not limited to failure of or faulty electrical power; that have been used in

 

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confidential treatment filed separately with the commission.

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violation of CSI’s instructions, inconsistent with the Documentation or outside the scope of the
license granted herein; on which the serial number has been removed or made illegible; or that have
been modified, disassembled, serviced or reassembled by anyone other than CSI or its authorized
agents.

          (c) NK agrees that the warranty, remedies and limitations on liability provided in this
Agreement (subject to the limitations thereon) reflect a bargained-for compromise between CSI and
NK as to the allocation of risk in this Agreement.

10. NK REPRESENTATION AND WARRANTY

     10.1 General. NK represents and warrants:

          (a) As to Products subject to sublicenses granted by NK, NK shall not provide any
representations and warranties to its sublicenses, which exceed in scope the representations and
warranties provided by CSI to NK herein.

          (b) NK has the legal capacity to execute this Agreement and perform its obligations hereunder;

          (c) Execution and delivery of this Agreement by NK and performance of its obligations
hereunder shall not violate any applicable Japan laws.

11. LIMITATION OF LIABILITY EXCEPT PRODUCT LIABILITY

     IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, INCIDENTAL,
CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES OR LOST PROFITS, EVEN IF ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES. THE LIABILITY OF CSI FOR ANY CLAIM CONCERNING PERFORMANCE OR NONPERFORMANCE BY CSI
PURSUANT TO, OR IN ANY WAY RELATED TO, THE SUBJECT MATTER OF THIS AGREEMENT, REGARDLESS OF THE FORM
OF ACTION, WHETHER IN CONTRACT OR IN TORT, EXCEPT PRODUCT LIABILITY DESCRIBED IN SECTION 12, SHALL
BE LIMITED TO THE AMOUNT PAID TO CSI BY NK FOR THE LICENSED AEDs OR REPLACEMENT ELECTRODES, AS
APPLICABLE, IN ACCORDANCE WITH THIS AGREEMENT AND WITH RESPECT TO WHICH LICENSED AED OR REPLACEMENT
ELECTRODES, AS APPLICABLE, SUCH CLAIM SPECIFICALLY RELATES. IN NO EVENT SHALL CSI BE LIABLE FOR
DAMAGES CAUSED BY NK’s OR ANY END-USER’S ACT OR OMISSION.

12. PRODUCT LIABILITY

     CSI agrees to indemnify and hold NK harmless from and against any and all losses, claims,
damages, costs and expenses, including reasonable attorney’s fees, arising out of or relating to
personal injury, illness and/or death if it is established that such damage and/or personal
injuryresulted from i) defect with respect to design, manufacturer, workmanship or materials of

 

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confidential treatment filed separately with the commission.

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the Product; or ii) failure of the Product, at the time of shipment to NK, to comply with the Technical
Specifications which is specified in Appendix 3.

13. REGULATORY REQUIREMENTS, RECALLS

     13.1 The Parties confirm that in relation to the JMHW regulatory approvals or submission that
CSI shall be regarded as the manufacturer of the Products and NK as the in- country caretaker.

     13.2 The Parties agree to cooperate in order to gain JMHW regulatory approval for the Products
including Cardiac Science’s biphasic AED product. For shipments outside of Japan, CSI warrants
that the Products conform to the requirements established in the MDD for CE marking and will affix
the CE mark to all the Products.

     13.3 Each Party shall make its best efforts to comply with all applicable laws and regulations
of the competent jurisdiction in which NK sells its Products. In particular, each Party shall
ensure that the Products as well as their respective activities in relation thereto conform to all
legislation, rules, regulations and statutory requirements existing from time to time.

     13.4 If either Party becomes aware of an event where there is reasonable suspicion that the
Product contributed to or caused a death or serious injury or an event where a Product has
malfunctioned and, if that malfunction occurred again, it could cause death or serious injury. As
used herein, “Serious injury” means: Any injury or illness that i) is life threatening, or ii)
result in permanent impairment of a body function or permanent damage to a body structure, or iii)
necessities medical or surgical intervention to preclude permanent impairment of a body function or
permanent damage to a body structure. To be reported a direct link with the Product and its
possible short -comings should be clearly established. Party shall use its best efforts to give
such notice to the other Party orally within 24 hours from the receipt of such complaint or
becoming aware of such event and shall use its best efforts to confirm such notice by telefax
within 24 hours after giving oral notice.

     13.5 The Parties shall be responsible for reporting under United States reporting requirements
such as 21 CFR Part 803, the Japanese Ministry of Health and Welfare and the European Union
reporting requirements and under the reporting requirements of any other country as may be
applicable. Before submitting a report involving a Product either Party shall use its best efforts
to notify the other Party and to obtain any information it may have relating to any incident
involving a Product. Copies of such reports shall be sent to the other Party without delay. If
JMHW or any governmental authorities require to take any product corrective action (including
notification, recall, removal and correction) involving a Product in Japan, NK shall use its best
efforts to notify CSI by telefax within 24 hours from the receipt of such information and CSI shall
be responsible to determine the conduction or non-conduction of the correctiveaction within 24
hours after the receipt of the information from NK. In case that CSI decides to take any
corrective action for any product in overseas which is substantially the same
as the Product specified herein, the Product sold or distributed by NK in Japan shall also to
be taken corrective action.

 

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     If FDA or other authorities contact either Party to inquire about or investigate the Products
sold under this Agreement, the contacted Party, unless required to maintain confidentiality by such
authorities, shall inform the other Party immediately thereof. The Parties shall co-operate
closely to clear any regulatory issues or potential regulatory issues promptly.

     Notice required by this section 13.4 and 13.5 shall be responsible for each party’s Quality
Assurance Department.

     The information required from NK in case of reporting incidents are including the following:

	 	i)	 	identification of the device including brand name,
	 
	 	ii)	 	description of the incidents
	 
	 	iii)	 	how the Product was involved and/or contributed to the incident,
	 
	 	iv)	 	identity of the person(s) who were affected by the incidents,
	 
	 	v)	 	identity of the medical personnel who were involved in the incident,
	 
	 	vi)	 	whether a death or serious injury occurred,
	 
	 	vii)	 	identity by name, address, telephone number, telefax and title of the person submitting
the information to the other Party,
	 
	 	viii)	 	whether the incidents has already been reported to a FDA or otherauthoritiesby the
person making the report

     13.6 In the event CSI decides to take any product corrective action in Japan (including
notification, recall, removal and correction) with respect to the Product sold or distributed by
NK, regardless of whether such action is initiated to comply with applicable laws or regulations or
for other reasons, the Parties agrees that: a) NK shall be the point of contact for purchasers of
its Products (whether directly of through its distributors); b) after discussion between the
parties, CSI will “define the action to be taken” and c)during the course of recall of the Product,
CSI shall work with NK to provide replacement Product if required by end users customers to
minimize any downtime of replacement Product. In such cases, CSI shall provide NK with efficient
quantity of replacement Product as soon as possible for NK’s immediate action to end users
customers and d) CSI shall reimburse NK for direct costs of the type set forth below which are in
incurred by NK to implement such actions,

As used herein, “define action to be taken” means;

	 	i)	 	In the event of any recall of any Product, CSI shall work with NK to provide
investigation of scope and root cause of the Product failure, and provide a corrective
action plan for any found cause of the Product failure.

 

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	 	ii)	 	Defining the effectiveness check procedure (to establish the corrective action has been
completed).
	 
	 	iii)	 	CSI shall make every effort to pursue any necessary actions against the Vendor or
Supplier responsible for the Product.
	 
	 	iv)	 	If NK submits a corrective action request that accompanies a end users customer
returned Product that requires immediate response, then Seller shall respond with scope of
problem evidence of registration and initial plan for root cause analysis within 72 hours
of the request.

The type of costs reimbursable under d) above are: mailing, telephone, telefax and printing
charges for shipment of the Product to NK back to CSI; and direct labor costs to receive and
handle returned Product and to replace the Product to end users customer. In case that it is
necessary for NK to confirm that Product is manufactured under appropriate manufacturing and
quality control, NK has a right to audit such system.

14. INTELLECTUAL PROPERTY RIGHTS

     14.1 Ownership. Except as expressly provided herein, neither Party grants to the
other Party any license or intellectual property right, other by implication, estoppel or otherwise
in and to its Products, patents, trademarks, documentation and confidential information. Except in
the case of NK’s need to provide authorized service to said Products, NK shall not: (a) reverse
engineer, decompile, disassemble or otherwise tamper with the Products; (b) install, integrate,
adapt or use the Products except as described in CSI’s documentation; and (c) permit any third
party including any of NK’s distributors or end users customers to do any of the foregoing.

     14.2 CSI Trademarks. Subject to NK’s compliance with the terms of this Agreement, CSI
grants to NK the non-transferable and non-assignable right to use the trademarks, service marks,
trade names, logos or other words or symbols of CSI identifying the Products (the Trademarks”) on
NK’s advertising and promotional materials, stationery, signs, labels and packaging in order to
convey that NK is manufacturing Products, equipment or devices which incorporate the Products. The
Trademarks are and shall remain the exclusive property of CSI, whether or not such ownership is
specifically recognized or protected under the laws of the Territory. NK shall acquire no rights
to the Trademarks other than those set forth in this Article, and NK hereby assigns and transfers
to CSI all rights other than those granted pursuant to this Section that it may acquire in and to
the Trademarks, whether by operation of law or otherwise. NK shall comply with CSI’s guidelines
for the use of the Trademarks, and shall allow CSI an opportunity to inspect the Products to
confirm NK’s compliance herewith.

     14.3 NK Trademarks. CSI shall not use or refer to NK’s name or trademarks in any
other form or manner or for any other purpose than what is expressly allowed in this Agreement.
All artwork, packages and labels (if any) prepared by CSI in connection with the NK name shall be
sent to NK for approval.

 

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     14.4 Infringement. CSI warrants that it is the sole and exclusive owner of, or has
valid licenses, with the right to sublicense, the Products, in each case free and clear of any and
all liens, claims or encumbrances. CSI represents that (i) it has not been determined to be
infringing any patents or other rights with respect to the Products and (ii) no person has asserted
that CSI’s manufacture or sale of the Products anywhere in the world infringes any patent or other
proprietary right of such person.

     14.5 Notification. NK shall promptly notify CSI of (a) any claims, allegations or
notification that NK’s sale, offer to sell, license, lease, importation, export, transfer or
distribution of any Product may or will infringe the Intellectual Property Rights of a third party;
and (b) any determination, discovery, or notification that any person or entity is infringing or
may be infringing the Intellectual Property Rights of CSI.

     14.6 Alteration and Use. NK may not remove or alter any proprietary designs notices
or Marks contained in or on the Products, Documentation or related materials. NK may not make any
reference or claim about CSI or the Products or use any of CSI marks, which have not been approved
or provided by CSI.

15. CONFIDENTIALITY

     15.1 This Agreement and all documents, drawings, manuals and other materials related thereto
and transmitted between the Parties, provided that only if it is designated as “Confidential” in
writing when communicated, or within thirty (30) days of disclose, if disclosed orally, shall be
treated as confidential by the Parties and their employees and such information shall not be
disclosed to any third party. Without the other Party’s prior written consent, this Agreement and
any other materials treated as confidential hereunder may be disclosed by either parties in
compliance with governmental regulations and other corporate reporting requirements; provided that
such Party has notified the other Party and cooperated in good faith to take such steps as may be
reasonably available to protect the confidentiality of the information contained therein to the
extent requested by the other Party and as may be allowable by the applicable law. Confidential
Information does not include information that: a)at the time of disclosure is already known to the
public, b)becomes generally available to the public after disclosure through no fault on the party,
c)Recipient can demonstrate it had rightfully, prior to disclosure to Recipient by the other party,
d)Recipient rightfully obtains from a third party having the right to disclose it, or e) is
independently developed by recipient without the use of Confidential Information; Each Party shall
arrange proper filing for specifications and drawings given by the other Party. Each Party shall
nominate a person who shall be in charge of the filing and shall inform this person of the
confidentiality requirements of this Agreement. The parties agree to hold all Confidential
Information confidential for a period of two (2) years after the expiration and/or termination of
the Agreement.

16. CSI INDEMNIFICATION

     16.1 Indemnity. Subject to NK satisfying the conditions of Section 14, CSI shall
indemnify and hold NK, its affiliates and their respective directors, officers, employees and
representatives harmless from and against any suits, actions, losses, damages and other expenses
solely arising

 

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out of or in connection with any claim (a) that any authorized use of a Product
infringes or violates any Intellectual Property Right or copyright of a third party.

     16.2 Remedies. If NK’s or any End-User’s use of the Products is prevented by an
injunction or court order because of any claim of infringement, CSI will, at its expense, and in
its sole discretion, use reasonable commercial efforts to: (a) replace or modify the Product, in
such a manner so as to maintain its functionality and compatibility, but nonetheless make the
Products, as applicable, no longer subject to a claim of infringement; or (b) procure for NK’s or
any End-User’s benefit the right to use and resell the Products, as applicable, as provided in this
Agreement. If (a) and (b) above are not commercially viable, CSI shall refund to NK all amounts
paid therefore by NK and shall terminate the rights granted herein.

     16.3 Exclusion. CSI will have no liability for any claim of indemnity if such claim
is based upon: (a) Products that have been modified, disassembled, reassembled, serviced, altered
or changed without the express written authorization of CSI; or (b) the combination, operation, or
use of the Products with software and/or hardware not supplied by CSI, if such liability would have
been avoided in the absence of such combination, operation or use.

     16.4 Entire Liability. This Article 16 states CSI’s entire liability for infringement
of any patent or other intellectual rights with respect to the Products

     16.5 Conditions. NK shall promptly notify CSI of (i) any matter for which NK may
claim indemnification, (ii) any claim against NK that any Products misappropriate any trade secret
or infringe any patent, copyright or other Intellectual Property Right of a third party and (iii)
any suit, action or proceeding brought against NK on the basis of any such claims. CSI shall, in
its sole discretion, defend or settle any such claim, suit, action or proceeding in any manner and
on any terms it shall deem appropriate, and the costs thereof (including any final award of
damages) shall be borne entirely by CSI. If CSI elects to defend any such suit, action or
proceeding, NK shall provide CSI, at CSI’s expense, with all the needed information, assistance and
authority necessary to enable CSI to defend such claim. NK shall not without CSI’s prior written
approval itself defend or settle any such suit, action or proceeding.

17. NK INDEMNITY

     17.1 General. NK shall indemnify and hold harmless CSI, its affiliates and their
respective directors, officers, employees and representatives harmless from any claims, demands,
actions, suits, proceedings, judgments, damages, expenses and costs (including reasonable attorneys
fees) related to:

          (a) Any of its activities under this Agreement, including any third party assertion that the
Products or any component thereof, to the extent they have been modified, disassembled,
reassembled, serviced, altered or changed by NK, infringe or misappropriate any patents or
copyrights of such third parties;

 

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     (b) Death, injury or damage (including death) to any person or property caused by the Products
that have been subject to modification, alteration or change that NK instructed and/or required to
CSI.

     17.2 Conditions. CSI shall promptly notify NK of (i) any claim against CSI that
Products, which have been modified, disassembled, reassembled, serviced, altered or changed by NK
or CSI in accordance to NK’s instruction or requirement, misappropriate any trade secret or
infringe any patent, copyright or other intellectual property right of a third party and (ii) any
suit, action or proceeding brought against CSI on the basis of any such claims. NK shall, in its
sole discretion, defend or settle any such claim, suit, action or proceeding in any manner and on
any terms it shall deem appropriate, and the costs thereof (including any final award of damages)
shall be borne entirely by NK. If NK elects to defend any such suit, action or proceeding, CSI
shall provide NK, at NK’s expense, with all the needed information, assistance and authority
necessary to enable NK to defend such claim. CSI shall not without NK’s prior written approval
itself defend or settle any such suit, action or proceeding.

18. INSURANCE

     Throughout the term of this Agreement, and for a period of at least three (3) years
thereafter, CSI and NK shall each carry a reasonable amount of commercial general liability
insurance. Insurance is to be maintained by parties pursuant to the provisions of this Article
shall provide for written notice to the other party thirty (30) days in advance of any termination
or cancellation of such insurance. Upon the request of either party from time to time during the
term hereof, each party shall provide the other with a certificate evidencing such insurance
coverage.

19. GENERAL

     19.1 Notices. All notices, requests, demands, waivers and other communications
required or permitted to be given under this Agreement are to be in writing and are deemed to be
duly given (a) upon being delivered either personally or by overnight courier with delivery charges
prepaid, (b) upon the fifth (5th) day from the date such notice was mailed by certified or
registered mail, postage prepaid, receipt requested, or (c) upon being sent by telecopy, to the
people and addresses set forth below or to such other person or address as either party may specify
by notice in writing to the other party. All notices, requests, demands, waivers and
communications are received on the date of delivery.

If to CSI:

Cardiac Science, Inc.

16931 Millikan Avenue

Irvine, California 92606

Attention: Raymond Cohen, President and Chief Executive Officer

Facsimile: (949) 951-7315

With a copy to:

 

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Jones, Day, Reavis & Pogue

555 W. Fifth Street, Suite 4600

Los Angeles, California 90013-1025

Attention: Kevin McBride, Esq.

Facsimile: (213) 243-2539

If to NK:

Nihon Kohden Corporation

31-4 Nishiochiai 1 Chome

Shinjuku-ku, Tokyo 161-8560 JAPAN

Attention: Shotaro Fujii, GM, Cardiology Div. Engineering Operations

Facsimile: +81 3 5996 8095

     19.2 Force Majeure. If the performance of any obligation under this Agreement is
prevented, restricted or interfered with by reason of war, civil commotion, embargo, strike or any
other act which is beyond the reasonable control of the party affected, then the party so affected
shall, upon giving written notice to the other party, be excused from such performance to the
extent that such prevention, restriction or interference; provided that the party so affected shall
use commercially reasonably efforts to avoid and remove such causes of non-performance, and shall
continue performance hereunder with reasonable dispatch whenever such causes are removed.

     19.3 Successors and Assigns. This Agreement inures to the benefit of and is binding
upon the parties hereto and their successors and permitted assigns. Nothing in this Agreement,
expressed or implied, confers on any person other than the parties hereto (or their successors and
permitted assigns), any rights, remedies, obligations or liabilities.

     19.4 Entire Agreement. This Agreement (including the Exhibits) is the entire
agreement between the parties hereto with respect to the subject matter hereof and supersedes all
other prior and contemporaneous agreements and understandings, oral and written.

     19.5 Assignment. Neither party may assign this Agreement without the prior written
approval of the other party.

     19.6 Relations. This Agreement creates no partnership, joint venture, franchise or
agency between the parties. Except as expressly set forth in this Agreement, neither party has the
right to assume or create, either directly or indirectly, any liability or any obligation of any
kind, expressed or implied, in the name of or on behalf of the other party, and neither party shall
represent that it has such authority.

     19.7 Waiver. This Agreement may only be waived or amended, if such waiver or
amendment is in writing, specifically references this Agreement and is executed by the party to be
bound. The waiver by either party of a breach of any provision of this Agreement does not

 

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operate
as a waiver of any other breach. A party’s failure or delay to exercise any right hereunder does
not operate as a waiver.

     19.8 Unenforceability. The illegality, invalidity or unenforceability of any part of
this Agreement does not affect the legality, validity or enforceability of the remainder of this
Agreement. If any part of this Agreement is found to be illegal, invalid or unenforceable, this
Agreement will be given such meaning as would make this Agreement legal, valid, and enforceable in
order to give effect to the intent of the parties.

     19.9 Governing Law. This Agreement is governed and construed according to the laws of
California, U.S.A. The court of competent jurisdiction shall be the district court of California,
U.S.A., if an action is brought by NK, or in Tokyo district court, Japan if an action is brought by
CSI.

     19.10 Dispute Resolution. Prior to taking any legal action, the parties shall attempt
to resolve any claim or controversy arising out of this Agreement by way of amicable negotiations
within a reasonable period not to exceed thirty (30) days after the date of a notice from either
party to the other describing such claim or controversy.

     19.11 Irreparable Harm. CSI and NK acknowledges that, in view of the uniqueness of
the transactions contemplated by this Agreement, a material breach or material failure to comply
with its confidentiality obligations or license restrictions would cause irreparable harm to other
party’s business and that the other party would not have an adequate remedy at law for money
damages. Therefore, CSI and NK agrees that NK and CSI is entitled to specific performance and/or
injunctive relief without the posting of bond or other security in addition to any other remedy to
which it may be entitled hereunder or at law or in equity, in any court of competent jurisdiction
against any such breach or noncompliance. All remedies provided for herein are cumulative and the
exercise of any particular remedy by NK and CSI and does not limit or preclude the exercise of any
other remedy available to it.

     19.12 Survival. Articles and Sections 1, 2.2, 3.2, 3.3, 4.3, 5.6, 5.8, 7.5, 9, 5.10,
10.1, 11, 12, 13, 14, 16 and 17 survive any expiration or termination of this Agreement.

     19.13 Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original and all of which together shall be deemed to be one and the same
instrument.

* * *

IN WITNESS WHEREOF, the Parties have caused this OEM Supply and Purchase Agreement to be executed
by their duly authorized representatives.

	 	 	 
	Nihon Kohden Corporation

	 	Cardiac Science Inc.
	 
	 	 
	/s/ Kazuo Ogino

	 	/s/ Raymond Cohen
	 	 	 
	Name: KAZUO OGINO

	 	Name: RAYMOND COHEN
	Title: President & CEO

	 	Title: President & CEO

 

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APPENDICES:

	1.	 	The Products
	 
	2.	 	Prices
	 
	3.	 	Technical Specifications
	 
	4.	 	Definitions
	 
	5.	 	Notification of Quality Control and Assurance from CSI

 

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APPENDIX 1

The Products

     The Products consist of the following:

     A.I. Automated external defibrillators (“AEDs”) shall be a portable automated external
defibrillator that analyzes a persons’ electrocardiogram and advises an operator to deliver an
electric shock(s) using monophasic or biphasic defibrillation technology to a patient in order to
restore normal heart rhythm; and includes Cardiac Science’s patented RescueReady technology such as
one button operation, pre-connected disposable electrode pads and status indicator. CSI will
manufacture the AEDs for NK. The AEDs will have NK specified coloring and labeling as agreed upon
by the Parties

     A.2. Single patient use defibrillation electrodes (the “Electrodes or Replacement
Electrodes”) for use with the AEDs. Electrodes for use with the AEDs will be labeled under the NK
tradename and packaged in such as way to accommodate the RescueReady capabilities of the AED.

     Technical specifications of the Products are (CSI to provide) attached hereto as Appendix 3.

 

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APPENDIX 2

Prices

The prices for the Products during the Term from April 1, 2002 to March 31, 2003 are as follows:

	 	 	 	 	 
	Product	 	 	 	Price, $USD
	AED model 9200

(basic model — ONLY available
in biphasic)

	 	any quantity
	 	[*]
	 
	 	 	 	 
	AED model 9100

(basic model — monophasic)

	 	any quantity
	 	[*]
	 
	 	 	 	 
	AED model 9100-D/9200-D

(mid range model with display,
can be ordered in monophasic,
modified biphasic or biphasic)

	 	any quantity
	 	[*]
	 
	 	 	 	 
	AED model 9110-D/9210-D

(high end model with display and
removable compact flash memory
card, can be ordered in monophasic,
modified biphasic or biphasic)

	 	any quantity
	 	[*]
	 
	 	 	 	 
	AED Electrodes

	 	any quantity
	 	[*]
	 
	 	 	 	 
	Datacard Adapter

	 	any quantity
	 	[*]
	 
	 	 	 	 
	          All prices are in US Dollars (USD)

	 	 
	 	 

          Note: All AED devices carry a [*] warranty on the battery.

 

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APPENDIX 3

Technical Specifications

[*]

 
 

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APPENDIX 4

Definitions

	 	1.	 	The following is a listing for convenient reference of terms as defined in this
Agreement:
	 
	 	2.	 	Affiliate means with respect to any specified party, any other legal entity that
directly or indirectly controls, is controlled by or is under common control with, such
specified party.
	 
	 	3.	 	CSI means Cardiac Science, Inc.
	 
	 	4.	 	NK means the Nihon Kohden Corporation.
	 
	 	5.	 	Effective Date means the date on which the Parties has signed this Agreement.
	 
	 	6.	 	Replacement electrode means the electrodes specified in Appendix 1.
	 
	 	7.	 	Initial Term means the period from the Effective Date until December 31, 2006 unless
earlier terminated pursuant to other terms hereof.
	 
	 	8.	 	MDD means the counsel directive 93/42 EEC concerning medical devices promulgated by the
Council of the European Communities as amended.
	 
	 	9.	 	Module means the module specified in Appendix 1.
	 
	 	10.	 	Party or Parties means NK and CSI individually and collectively as applicable.
	 
	 	11.	 	Products means the products specified in Appendix 1.
	 
	 	12.	 	Renewal Term means successive one-year terms during which this Agreement may be
automatically renewed following the Initial Term or any prior Renewal Term.
	 
	 	13.	 	Systems means such of NK’s patient monitoring products and/or systems into which NK has
incorporated or will incorporate the Modules.
	 
	 	14.	 	U.S. GMP means the requirements of U.S. GMP 21 CFR 820.

 

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Appendix 5

          Notification of Quality Control and Assurance from CSI

	1.	 	CSI shall inform the following of NKC in writing.
	 
	 	 	CSI shall inform NKC of attentions which NKC shall inform to purchaser or installer of products,
if there are some possibilities that product is installed in non-medical institution and
operated by personnel who are not qualified as a doctor or not trained.
	 
	 	 	CSI shall inform NKC of the contents of the obligation of purchaser or installer concerning
control or maintenance of products. CSI shall inform NKC of the contents of the obligation of
NKC concerning control or maintenance of installed products.
	 
	2.	 	In the following cases, CSI shall inform NKC in writing immediately (within at least 1 week).
	 
	 	 	After the products are supplied to the customer, if there are any mistakes or omissions which
shall be corrected, or if there are any other additional items concerning safety which are not
described on the operator’s manual, CSI shall inform NKC of them in writing.
	 
	3.	 	In the following cases, CSI shall inform NKC by fax quickly.
	 
	 	 	CSI shall inform NKC by fax, if any adverse events concerning AED are reported in a medical
congress, in Enforcement Report or MDR by FDA. The information of any adverse events includes
the product of other company.
	 
	 	 	CSI shall inform NKC by fax if the failure or the claim concerning safety of products of CSI has
occurred, regardless of whether CSI has the responsibility or not, or whether the product is
failure or not.
	 
	 	 	CSI shall inform NKC by fax if software is changed.
	 
	 	 	Where automatic charge and/or internal discharge algorithm or arrhythmia detection algorithm is
changed, or change that affects input and output or the result of arrhythmia detection program
is implemented, CSI shall inform NKC of the differences between changed products and previous
products, the purpose or reason of the change, and identify the scope of the change (whether it
is applied to products which has already supplied to the customer, or it limits products which
will be shipped in the future) and explain the reason to NKC.
	 
	4.	 	When the circuit or material or structure of the products is improved or changed, CSI shall
inform NKC of the outline and serial number, regardless of the details of notification to
JMHW. In the following cases, CSI shall inform NKC of them in written quickly.

 

[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.

 - 25 - 

 

	1)	 	When parts, related to electrical isolation of applied part from live parts, and creepage
distance, air clearance and construction related to dielectric stress are changed, or these
parts manufacturers are changed.
	 
	2)	 	When exterior material of the products is changed.
	 
	3)	 	When dimension and weight are changed more than +/- 5% greater.
	 
	4)	 	When specification affects the products’ performance, quality and function.
	 
	5)	 	When block diagram is changed.
	 
	6)	 	When testing procedure is changed.

 

[*] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the commission.

 - 26 -

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