Document:

Co-Development and OEM Agreement

	CONFIDENTIAL TREATMENT REQUESTED 
 	EXHIBIT 10.1 
 

 
 CONFIDENTIAL
TREATMENT REQUESTED: INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND IS NOTED WITH “[CONFIDENTIAL TREATMENT REQUESTED].” AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN FILED SEPARATELY WITH THE SECURITIES
EXCHANGE COMMISSION. 
  
 CO-DEVELOPMENT AND OEM AGREEMENT 
  

This Co-Development and OEM Agreement (the “Agreement”) is dated and effective July    , 2002 (the “Effective
Date”), by and between CardioDynamics International Corporation, a California corporation with its principal offices located at 6175 Nancy Ridge Drive, Suite 300, San Diego, California (“CDIC”) and Philips Medical Systems,
a division of PENAC, a Delaware corporation with its principal offices located at 3000 Minuteman Road, Andover, Massachusetts (“Philips”) for the purchase and/or license by CDIC and Philips of products under the terms and conditions
contained in this Agreement. 
  
 1.    Background. 
  
 1.1  CDIC is a developer, manufacturer and distributor of medical devices, equipment, related hardware, software and related products and accessories, including
impedance cardiology technology. 
  
 1.2  Philips is a developer, manufacturer and distributor of medical
devices, equipment, related hardware, software and related products and accessories, including 12-Lead ECG Products. 
  
 1.3  Philips desires to integrate CDIC’s impedance cardiography technology into Philips’s 12-Lead ECG Products. 
  
 1.4  CDIC agrees to develop, sell and/or license to Philips the products and/or technologies described below, subject to the terms and conditions contained in this Agreement. 

 
 1.5  Philips agrees to sell and/or license to CDIC the products and/or technologies described below, subject to the
terms and conditions contained in this Agreement. 
  
 2.    Definitions (in alphabetical order). 

 
 2.1  “CDIC Core Technology” means CDIC’s proprietary patient electrode sensors, interconnect
cables, analog and digital hardware designs, digital signal processing software designs, and signal processing algorithms which apply stimulation to the body and measure or calculate, display, and record hemodynamic parameters using thoracic
electrical bio-impedance. 
  
 2.2  “CDIC Documentation” means the product literature,
operations and maintenance manuals, and other information to sell and maintain the ICG/ECG Device, and the CDIC Specifications. 
  
 2.3  “CDIC ICG Module” means the CDIC-developed hardware, software and cables used to acquire and process patient waveforms used to measure and calculate hemodynamic parameters and interface with the
Philips ECG Products. 
  
 2.4  “CDIC Dual Snap Bio-impedance (DSB) Sensor” or “DSB
Sensor” means a set of single use disposable electrodes manufactured by or for CDIC for use with the CDIC ICG Module Kit and that is required to generate a report with CDIC’s ICG. 
  

 
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 2.5  “CDIC ICG Module Kit” means the bundle of all components developed and manufactured by or for CDIC that
will be incorporated into the ICG/ECG Device and licensed/sold to Philips under this Agreement, including the CDIC ICG Module, CDIC System Application Software Installation Disc, and one box of 10 applications of DSB Sensors. 

 
 2.6  “CDIC ICG Module Kit Specifications” means Specifications (as defined below) for the CDIC ICG
Module Kit, which shall be in the possession of the Parties’ respective attorneys pursuant to that certain letter dated the Effective Date from counsel to CDIC to the general counsel of Philips. 
  
 2.7  “CDIC Products” means CDIC ICG Module Kit, OEM Board and any other product that can be ordered by Philips
as listed in Exhibit A (Products and Purchase Prices) and Exhibit F (Other Pricing). 
  
 2.8  “CDIC
System Application Software” means the CDIC software program developed by CDIC and designed to run on the Philips ECG Products and provide a user interface for the CDIC ICG Module. 
  
 2.9  “CDIC System Application Software Installation Disc” means the 3-1/4" floppy disc used to install the CDIC System Application Software onto
the Philips ECG Products. 
  
 2.10  “DSB Sensor” or “CDIC Dual Snap Bio-impedance
(DSB) Sensor” means a set of single use disposable electrodes manufactured by or for CDIC for use with the CDIC ICG Module Kit and that is required to generate CDIC’s ICG. 
  
 2.11  “ICG” or “Impedance Cardiography” means CDIC’s measured and processed group of parameters that measures the
mechanical function of the heart non-invasively using electrical bio-impedance. 
  
 2.12  “ECG
Device” means the Philips ECG Product together with and including all components (hardware, software, and accessories) required to integrate the “Philips ECG Product” with a “CDIC ICG Module Kit.” 

 
 2.13  “ICG/ECG Device” means the combination of the “CDIC ICG Module Kit” and the
“ECG Device.” 
  
 2.14  “OEM Board” means the printed circuit board (PCB)
component inside the CDIC ICG Module used for acquiring and processing the ICG signal. 
  
 2.15  “Party” or “Parties” means CDIC and Philips each individually or jointly. 
  
 2.16  “Person” means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, pool,
syndicate, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein. 

 
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 2.17  “Philips Documentation” means the product literature, operations and maintenance manuals, and other
information to sell and maintain the ICG/ECG Device, and the Philips Specifications. 
  
 2.18  “Philips ECG Products” means 12-lead ECG systems manufactured by or for Philips. 
  
 2.19  “Philips ECG Products Specifications” means Specifications (as defined below) for the Philips ECG Products, which shall be in the possession of the Parties’ respective attorneys pursuant to that
certain letter dated the Effective Date from counsel to CDIC to the general counsel of Philips. 
  
 2.20  “Philips Products” means those products manufactured by Philips from time to time during the term of the Agreement. 
  
 2.21  “Specifications” means the engineering, operational and/or functional description of any products described in this Agreement, the complete
written version of which shall be in the possession of the Parties, as may be attached hereto, or summarized herein, and as same may be amended from time to time by agreement of the Parties. 
  

3.    ICG Module Development Project. 
  
 3.1  Project Timing.    The overall duration of the project to develop the CDIC ICG Module Kit, as set forth in this Section 3, (the “Project”) through completion of the
items set forth on Exhibit C is expected to be [CONFIDENTIAL TREATMENT REQUESTED]. A preliminary outline of the Project is attached to this Agreement as Exhibit C. 
  
 3.2  Project Management.    Each Party shall appoint a “Project Manager” who shall oversee and manage the Project on a
day-to-day basis. 
  
 (a)  The Project Managers shall meet regularly based on the Project
needs to assess the Project status and discuss and resolve any issues or problems. These meetings may be held face-to-face or as telephone or video teleconferences. 
  
 (b)  Each Party shall bear its own communication and travel costs. 
  
 (c)  All communication in conjunction with this Agreement shall be directed to the appropriate Person(s) at the address as listed in Exhibit
D (Contact Persons/Addresses). 
  
 3.3  Philips Responsibilities.    Philips
shall develop, design and test the modular integration of the components of the CDIC System Application Software with the Philips ECG Products according to the schedule as set forth in Exhibit C of this Agreement once Philips has received a
completed version of the CDIC System Application Software. The costs for Philips to complete this portion of the Project [CONFIDENTIAL TREATMENT REQUESTED]. 
  
 3.4  CDIC Responsibilities.    CDIC shall design, develop, and test the CDIC ICG Module Kit according to the CDIC ICG Module Kit
Specifications and schedule for completion of such work as set forth in Exhibit C [CONFIDENTIAL TREATMENT REQUESTED]. 
  

 
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 4.    Purchase and Sale Obligations; Licenses. 
  
 4.1  General.    Subject to the terms and conditions of this Agreement, CDIC agrees to sell to Philips the CDIC Products, and Philips agrees to sell to CDIC the ECG
Devices as listed on Exhibit A (Products and Purchase Prices) and Exhibit F (Other Pricing). The Parties agree that CDIC, Philips and their respective distributors and manufacturers’ representatives [CONFIDENTIAL TREATMENT
REQUESTED]. Each Party agrees to use commercially reasonable efforts to sell, market and promote the ICG/ECG Devices. The CDIC ICG Module Kits and components of the CDIC ICG Module Kits purchased from CDIC under this Agreement shall be used only
as components in, incorporated into, or integrated with, the Philips Products which the Parties sell or lease to third party users in the regular course of business. The components of the CDIC ICG Module Kits and Philips ECG Products shall be
re-sold, leased, rented, licensed or otherwise transferred to third Parties only for use as a part of the ICG/ECG Device or the Philips Products, or as replacement parts used in the ICG/ECG Device or the Philips Products, and the Parties shall sell
only accessories, including cables and DSB Sensors, approved by the Parties in connection with any ICG/ECG Device. Nothing in this Agreement shall prohibit or in any way restrict CDIC’s rights to sell, lease, license, collaborate with respect
to, or otherwise transfer any CDIC Core Technology, or any other CDIC Products to any other Person or entity including without limitation, any direct competitor of Philips, except as set forth in Section 23 herein. Nothing in this Agreement
shall prohibit or in any way restrict Philips’ rights to sell, lease, license, collaborate with respect to, or otherwise transfer the Philips ECG Products to any other Person or entity including, without limitation, any direct competitor of
CDIC. 
  
 4.2  Non-Exclusive License Grant by CDIC.    CDIC hereby grants to
Philips a non-exclusive, perpetual (subject to termination as provided in this Agreement) and non-transferable worldwide license, with the right to sub-license to purchasers/end-users of Philips Products, to use, install, test, adapt, and transfer
and otherwise distribute (a) the CDIC ICG Module Kit and related CDIC Documentation in connection with the manufacture, assembly, test, lease, sale, license, transfer or other distribution by or for Philips of (i) ICG/ECG Devices and/or (ii) ECG
Devices intended to be used as ICG/ECG Devices under this Agreement, as such are provided to Philips by CDIC under this Agreement and (b) the OEM Board in connection with the manufacture, assembly, test, lease, sale, license, transfer or other
distribution by or for Philips. Except for this express license by CDIC, Philips shall not disclose, furnish, transfer, distribute or otherwise make available the CDIC System Application Software, the CDIC Documentation, or any portion thereof, in
any form to any third party and shall not duplicate the CDIC System Application Software, the CDIC Documentation or any part of any of same. Title to and ownership of any and all proprietary rights in or to the CDIC Products, CDIC System Application
Software and the CDIC Documentation therefor shall at all times remain with CDIC or its licensor(s), provided that title and ownership of the CDIC Products shall transfer to Philips when such products are delivered to Philips pursuant to Section
9.2. Nothing in this Agreement shall be construed as a sale or any other transfer of any title in the CDIC System Application Software or the CDIC Documentation. All references in this Agreement to sale, resale or purchase of the CDIC ICG Module
Kit, OEM Board, or the respective components thereof, or references of like effect, shall, with respect to the CDIC System Application Software and the CDIC Documentation, mean licenses or sublicenses of the CDIC System Application Software and the
CDIC Documentation, or of a sale or transfer of any title in the CDIC System 

 
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 CONFIDENTIAL TREATMENT REQUESTED 
  
 Application Software pursuant to this Section 4.2. Philips shall not disassemble, decompile or otherwise reverse-engineer the CDIC System Application Software or any part of any of same. Philips shall retain and shall
not alter or obscure any notices, markings or other insignia affixed to the CDIC System Application Software, the CDIC Documentation or any part of any of same, as such notices, markings and/or insignia may be affixed as of the time Philips receives
same. 
  
 4.3  Non-Exclusive License Grant by Philips.    Philips hereby grants
CDIC a non-exclusive, perpetual (subject to termination as provided in this Agreement) and non-transferable worldwide license, with the right to sublicense to purchasers/end-users of the ICG/ECG Devices to use, install, test, adapt, and transfer and
otherwise distribute the software embedded in or otherwise provided in connection with the manufacture, assembly, test, lease, sale, license, transfer or other distribution by or for CDIC of Philips ECG Products and/or ECG Devices (“ECG
Software”) as such Philips ECG Products and ECG Devices are provided to CDIC by Philips under this Agreement. Except for this express license by Philips, CDIC shall not disclose, furnish, transfer, distribute or otherwise make available the
ECG Software, or any portion thereof, in any form to any third party and shall not duplicate the Philips ECG Products, ECG Devices, ECG Software, or any part of any of same. Title to and ownership of any and all proprietary rights in or to the
Philips ECG Products and/or ECG Devices and/or ECG Software shall at all times remain with Philips or its licensor(s), provided that title and ownership of the Philips ECG Products and ECG Devices shall transfer to CDIC when such products are
delivered to CDIC pursuant to Section 9.2. Nothing in this Agreement shall be construed as a sale or other transfer of any title in the ECG Software. All references in this Agreement to sale, resale or purchase of the Philips ECG Products or ECG
Devices, or references of like effect, shall mean licenses or sublicenses of the Philips ECG Products and/or ECG Devices, or of a sale or other transfer of any title or interest in the ECG Software pursuant to this Section 4.3. CDIC shall not
disassemble, decompile or otherwise reverse-engineer the Philips ECG Products, the ECG Devices, the ECG Software, or any part of any of same. CDIC shall retain and shall not alter or obscure any notices, markings or other insignia affixed to the
Philips ECG Products, the ECG Devices, the ECG Software, or any part of any of same, as such notices, markings and/or insignia may be affixed as of the time CDIC receives same. 
  
 4.4  Standard of Care; Priority.    In connection with the Parties’ performance of their obligations hereunder, each Party shall
use commercially reasonable efforts in the performance of its obligations hereunder and will do so with the same degree of priority, care, skill, and prudence customarily exercised when engaged in similar activities for itself. 

 
 5.    Sensor Commissions 
  
 5.1  Commissions on Sales of CDIC Dual Snap Bio-impedance (DSB) Sensors.    For each DSB Sensor sold by CDIC for ICG/ECG Devices, CDIC shall pay Philips a
commission equal to [CONFIDENTIAL TREATMENT REQUESTED] for such DSB Sensors. CDIC shall pay such commissions to Philips [CONFIDENTIAL TREATMENT REQUESTED]. [CONFIDENTIAL TREATMENT REQUESTED] shall mean, with respect to this
Section 5.2, the [CONFIDENTIAL TREATMENT REQUESTED] to the [CONFIDENTIAL TREATMENT REQUESTED]. With such [CONFIDENTIAL TREATMENT REQUESTED], CDIC shall provide to Philips a list of customers to which such sales were made, the
number of DSB Sensors sold [CONFIDENTIAL TREATMENT REQUESTED], and the [CONFIDENTIAL TREATMENT REQUESTED] DSB Sensor from the sale of the DSB Sensorsby CDIC. This [CONFIDENTIAL TREATMENT REQUESTED] shall be provided to
Philips no later than [CONFIDENTIAL TREATMENT REQUESTED] days following the [CONFIDENTIAL TREATMENT REQUESTED]. 
  

 
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 [CONFIDENTIAL TREATMENT REQUESTED] 
  
 5.2  Finder’s Fees on Sales of stand-alone CDIC ICG Modules.    CDIC shall pay Philips a finder’s fee equal to [CONFIDENTIAL TREATMENT REQUESTED] for certain sales of stand-alone
CDIC ICG products, as further described in Exhibit G. CDIC shall pay such finder’s fees to Philips on a [CONFIDENTIAL TREATMENT REQUESTED]. With such [CONFIDENTIAL TREATMENT REQUESTED], CDIC shall provide to Philips a list of
customers to which such sales were made. This [CONFIDENTIAL TREATMENT REQUESTED] shall be provided to Philips no later than [CONFIDENTIAL TREATMENT REQUESTED] days following [CONFIDENTIAL TREATMENT REQUESTED]. 

 
 6.    Scope of Delivery. 
  
 6.1  Purchase Orders.    Purchase orders (via facsimile, e-mail, other electronic transmission or paper) for CDIC Products, ECG Devices and/or ICG Module Kits to be
purchased under this Agreement (the “Orders”) must be received by CDIC and Philips, respectively, during the term of this Agreement and must specify a delivery date which is not earlier than contemplated in the lead-time schedule
outlined below under Section 6.6. All Orders shall make reference to the appropriate engineering drawing or manufacturing reference numbers. There is no minimum volume commitment required for any Order. Philips will provide to CDIC a
non-binding initial forecast six (6) months prior to the expected commercial availability of the ICG/ECG Device for purposes of CDIC ordering of initial component volumes, and CDIC will provide to Philips a non-binding initial forecast six (6)
months prior to the expected commercial availability of the ICG/ECG Device for purposes of Philips ordering of ICG/ECG Device volumes. Unless otherwise noted, all orders placed by Philips for CDIC Products and/or CDIC Module Kits will be shipped to
the Philips, Oxnard manufacturing facility. All orders placed by CDIC for Philips ECG Devices will be shipped directly to CDIC customers. 
  
 6.2  Order Acknowledgements.    Philips Orders shall be acknowledged by CDIC within five (5) days after receipt of the Order, and CDIC Orders shall be acknowledged by Philips within five
(5) days after receipt of the Order, provided that the Order is correct and complies with Section 6.1 hereof and that the requested delivery time is within the agreed upon lead time. If the requested delivery time is less than the agreed upon
lead-time as set forth in Section 6.6, the Party receiving such order shall complete the requirements of such nonconforming Order within the agreed lead-time. Each Party shall deliver the products requested in the acknowledged Orders within
the agreed upon lead-time. 
  
 6.3  Forecasts.    Each Party shall furnish to
the other Party a non-binding quarterly forecast during the term of this Agreement with, with respect to Philips, the number and type of CDIC Products for which Philips expects to submit Orders for the following twelve (12) months and, with respect
to CDIC, the number of ECG Devices for which CDIC expects to submit Orders for the following twelve (12) months. If quarterly forecasts exceed the products on hand, the receiving Party reserves the right to request non-binding monthly forecasts.

  
 6.4  [CONFIDENTIAL TREATMENT REQUESTED]  

 
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 CONFIDENTIAL TREATMENT REQUESTED 
  
 6.5  Lead Times.    The agreed upon lead time for delivery of the CDIC ICG Module Kit and/or OEM
Board is ninety (90) days from the date of receipt by CDIC of a Philips Order. The agreed upon lead time for delivery of the ECG Device is ninety (90) days from the date of receipt by Philips of a CDIC Order. The lead times described in this
Section 6.5 shall only apply with respect to up to 125% of the products specified in the forecasts furnished pursuant to Section 6.3 hereof. If the quantity of CDIC ICG Module Kits, OEM Boards, or ECG Devices requested are in excess of
125% of the quantity listed in the forecasts furnished pursuant to Section 6.3 hereof, the Parties agree to use commercially reasonable efforts to ship the excess quantities within ninety (90) days of the date of receipt of such Order.

  
 6.6  Sales Channel Plan.    CDIC and Philips agree that sales of the ICG/ECG
Devices and the stand-alone CDIC ICG Modules shall be made by the parties in accordance with the Sales Channel Plan attached as Exhibit G. 
  
 7.    Prices 
  
 7.1  Purchase
Prices.    The prices of CDIC Products and ECG Devices to be purchased by Philips and CDIC, respectively, hereunder (the “Purchase Prices”) which are ordered during the term of the Agreement shall be as set
forth in Exhibit A (Products and Purchase Prices) and Exhibit F (Other Pricing). Exhibit A reflects that the OEM transfer price paid to CDIC by Philips for the CDIC ICG Module Kit [CONFIDENTIAL TREATMENT REQUESTED] of
CDIC and Philips for all ICG/ECG Devices sold by them during the applicable period, [CONFIDENTIAL TREATMENT REQUESTED]. The [CONFIDENTIAL TREATMENT REQUESTED] shall be determined on an annual basis by an independent auditor (the
“Auditor”), commencing with the annual period ending on June 30, 2004 and continuing for each anniversary thereafter. The Auditor shall be selected by the Parties and shall not otherwise be engaged by the Parties. The Parties agree
to provide the Auditor with such books and records and other information (the “Information”) as may be necessary for the Auditor [CONFIDENTIAL TREATMENT REQUESTED] by July 31st of the applicable year, and any new transfer price shall become effective [CONFIDENTIAL TREATMENT REQUESTED] of the applicable year. The
Auditor will not share any individual customer purchasing data regarding one Party with the other Party. The fees and costs of the Auditors will be shared equally by CDIC and Philips. If for any event Philips determines it will not distribute the
ICG/ECG Device, the transfer price to CDIC for the ECG Device will change [CONFIDENTIAL TREATMENT REQUESTED]. The Parties agree to review the transfer price paid by CDIC to Philips for ECG Devices [CONFIDENTIAL TREATMENT REQUESTED] and
in good faith renegotiate such transfer price to reflect any substantial changes in burdened costs or market conditions. Each of CDIC and Philips agrees to automatically extend to the other [CONFIDENTIAL TREATMENT REQUESTED] for the CDIC ICG
Module Kit, DSB Sensor commission, and ECG Devices [CONFIDENTIAL TREATMENT REQUESTED]. 
  
 7.2  Taxes on CDIC Products.    All Purchase Prices for CDIC Products are exclusive of all federal, state and local taxes, import taxes, levies and assessments, and Philips shall be responsible
for the payment of all such taxes, levies and/or assessments imposed on CDIC Products purchased and/or licensed by Philips hereunder, excluding taxes based on CDIC’s net income from the transaction. Philips shall be responsible for providing in
a timely manner all 

 
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 documentation, in the nature of exemption certificates or otherwise, necessary to allow CDIC to refrain from collections, such as sales tax, which it would
otherwise be obligated to make. 
  
 7.3  Taxes on Philips ECG Products.    All
Purchase Prices for ECG Devices are exclusive of all federal, state and local taxes, import taxes, levies and assessments, and CDIC shall be responsible for the payment of all such taxes, levies and/or assessments imposed on ECG Devices purchased
and/or licensed by CDIC hereunder, excluding taxes based on Philips’ net income from the transaction. CDIC shall be responsible for providing in a timely manner all documentation, in the nature of exemption certificates or otherwise, necessary
to allow Philips to refrain from collections, such as sales tax, which it would otherwise be obligated to make. 
  
 7.4  Other Pricing.    CDIC will extend to Philips [CONFIDENTIAL TREATMENT REQUESTED] for products on Exhibit F[CONFIDENTIAL TREATMENT REQUESTED] based on the current CDIC
proposal in Exhibit F hereto for Philips to incorporate CDIC ICG Core Technology into other Philips products including patient monitors, including access to the OEM Board. Any custom design work for a CDIC ICG Module for other Philips
products would be priced based on scope of work. 
  
 7.5  Commission.    At such
time as CDIC sales representatives are able to sell ICG//ECG Devices, CDIC agrees to pay an incentive commission to CDIC sales representatives on ICG/ECG Devices for sales made by Philips no less than the incentive commission paid on stand-alone
CDIC ICG Modules. 
  
 7.6  Other Fees.    Philips agrees to [CONFIDENTIAL
TREATMENT REQUESTED] to CDIC for each ICG Module Kit purchased for [CONFIDENTIAL TREATMENT REQUESTED]. Until such time as Philips may elect to provide customer training on the use of the CDIC ICG Module, either itself or through some
party other than CDIC, Philips agrees to pay an additional fee for such training of [CONFIDENTIAL TREATMENT REQUESTED]. 
  
 8.    Terms of Payment. 
  
 8.1  Invoices.    Philips shall pay to CDIC, and CDIC shall pay to Philips, the Purchase Price for all CDIC Products and ECG Devices, respectively, shipped hereunder within thirty (30) days after
the date of such invoice. Nothing herein shall affect the right of a Party (the “Delivering Party”) to withhold shipment or otherwise exercise its rights under Section 22 (Termination) hereof in the event of the failure of
the other Party (the “Ordering Party”) to make payment hereunder when due. The Ordering Party shall have the right to provide the Delivering Party with a specific address to which the Delivering Party will send invoices for CDIC
Products or ECG Devices, as the case may be, purchased under this Agreement. 
  
 8.2  Late Payment
Charge.    Subject to applicable law, service and/or interest charges not exceeding the lesser of one and one-half percent (1 1/2%) per month or the highest amount permitted by law may, at the election of the Party due payment, be assessed on amounts past due more than thirty (30) days (that is, more than thirty (30) days after
the payment due date as specified in Section 8.1 hereof). 
  
 9.    Shipment and Delivery.

 
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 9.1  Delivery Location.    Each shipment must indicate the exact address of the recipient on the
outside of the packaging as follows: 
  
 Deliveries to Philips: 
  
 Philips Medical Systems 
 1201-B N. Rice Avenue 
 Oxnard, CA 93030-7964 
 Attention: Receiving Department 
  
 Deliveries to
CDIC: 
  
 CardioDynamics International Corporation 
 6175 Nancy Ridge Drive 
 Suite 300

 San Diego, CA 92121 
 Attention: Receiving Department 
  
 9.2  Delivery Terms.    All
shipments hereunder to Philips by CDIC and by Philips to CDIC customers shall be FOB to the designated location, and all delivery and freight costs shall be paid by the receiving Party. All CDIC Products and/or ECG Devices shall be deemed delivered
and subject to the receiving Party’s dominion and control when placed in the possession of a carrier designated by the receiving Party, properly packed and ready for shipment to the receiving Party. The parties shall cooperate with each other
in the documentation and proof of loss claims promptly presented by such Party to the appropriate carrier and/or insurer. 
  
 9.3  Delivery Date and Date of Dispatch.    The requested delivery date shall be specified on the Order provided that such delivery date must be at least sixty (60) days after the date such Party
receives the Order. The Party receiving the Order shall utilize commercially reasonable efforts to ensure that the Order is delivered in accordance with its Order acknowledgement and that the date of dispatch is at least ten (10) days prior to the
delivery date. 
  
 10.    Acceptance. 
  
 Any CDIC Product and/or ECG Device shipped hereunder may be subjected to inspection and performance testing by the receiving Party (Philips or CDIC), to confirm that it
functions in accordance with applicable product Specifications in effect at the time of delivery of such CDIC Products and/or ECG Device to the delivering Party. The receiving Party (Philips or CDIC) shall provide written notice to the delivering
Party of the rejection of any such CDIC Product and/or ECG Device within sixty (60) days of the date of its receipt. The Party that delivered the product shall have thirty (30) days from receipt of a notice rejecting a CDIC Product and/or ECG Device
either, at such Party’s option, to make any necessary repairs to the defective CDIC Product and/or ECG Device or to replace it. If replaced, the Party (Philips or CDIC) that received the product shall dispose of the replaced CDIC Product and/or
ECG Device in accordance with accompanying instructions and at the expense of the Party that delivered the product. The sole remedy for the Party that received the product for rejected CDIC Products and/or ECG Device shall be limited to repair or
replacement, and if neither repair or replacement results in acceptance by the Party receiving the product, reimbursement of any monies paid for 

 
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 such CDIC Products and/or ECG Device. A product that fails during installation and training or during the first 48 hours shall be exchanged according to a
process to be established by both Parties. 
  
 11.    Service and Support 
  
 11.1  General.    CDIC will provide Philips with support for CDIC Products (excluding OEM Boards sold
separately to Philips) and Philips will provide support to CDIC for Philips ECG Products as specified hereunder. Both CDIC and Philips will maintain such number of qualified personnel as is necessary to provide timely and knowledgeable maintenance
and support service. Both CDIC and Philips warrant that all support will be provided in a professional and workmanlike manner. Each CDIC and Philips acknowledges that the other may independently offer and provide support services to its customers.
However, in no event may CDIC and Philips use the other’s confidential information to provide such support without the other’s prior written consent. 
  
 11.2  Philips Customer Support.    Philips shall be the first line of customer support for products distributed by Philips’ sales channels. Philips will triage
the customer call to determine which part needs to be repaired. Philips will place an order with CDIC for the replacement. If the customer is under warranty, there is no charge for the parts (excluding DSB Sensors). If the customer is not under
warranty, the cost of the replacement parts and accessories for CDIC Products (excluding OEM Boards sold separately) is shown in Exhibit A. CDIC recognizes that certain inquiries may not be answerable by Philips, and CDIC agrees to provide
second tier support and assistance to Philips as may be necessary after Philips has made reasonable attempts to resolve customer issues. 
  
 11.3  CDIC Customer Support.    CDIC shall be the first line of customer support for products distributed by CDIC’s sales channel. If service is required on Philips ECG Product, CDIC
will request service from the Philips response center. If the customer is under warranty, there is no charge for the parts and accessories for the Philips ECG Products supplied by Philips. If the customer is not under warranty, the cost of the
replacement parts and accessories for Philips ECG Products shall be at Philips standard pricing. 
  
 11.4  New Products.    Upon request by either CDIC or Philips (the “Requesting Party”), the other Party (the “Providing Party”) will use all reasonable efforts to
provide the Requesting Party with the Philips ECG Products or CDIC Products (excluding OEM Boards sold separately to Philips), as the case may be, adapted for use with new releases of the Requesting Party’s products within timeframes and at
such additional costs, including development costs, if any, to be negotiated by the parties, provided that the Requesting Party makes available to the Providing Party such property as may be reasonably necessary for the Providing Party to develop
any adaptation. 
  
 11.5  Substitute Products.    If either Party develops any
products that are more efficient or less expensive than the comparable products available under this Agreement, the other Party will have the right to substitute the newer products for all subsequent purchases under this Agreement at the price then
being charged for comparable volumes of such newer products to 
  

 
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 such Party’s best customer. Such substitute products must be compatible with the current version of the products provided under this Agreement.

  
 11.6  Failure Rate Calculation.    Philips will be responsible for
calculating the failure rate of the CDIC ICG/Module Kit and OEM Boards sold by Philips. If a part is replaced or repaired and the customer problem is eliminated then the part will be counted as a failure. If the parts that have been replaced are
tested by CDIC and are not defective, CDIC will be responsible for communicating back to Philips to ensure that the Philips support team is not incorrectly swapping parts. 
  
 11.7  Trigger Failure Rate.    CDIC shall use reasonable commercial efforts to achieve an actual failure rate [CONFIDENTIAL
TREATMENT REQUESTED]. Should Philips notify the CDIC in writing that: (i) the actual failure rate reached [CONFIDENTIAL TREATMENT REQUESTED], whichever is greater, for all CDIC Products (other than patient lead sets, cables) delivered; or
(ii) the actual failure rate reached [CONFIDENTIAL TREATMENT REQUESTED], whichever is greater, for patient lead sets and cables (the rate in (i) or (ii), as the case may be, the “Trigger Failure Rate”), CDIC will provide
additional engineering and technical support to develop a root cause analysis and action plan that, upon full field implementation, will bring the actual failure rate down to below the Trigger Failure Rate within ninety (90) days of written notice
from Philips. This Trigger Failure Rate is applied only after Philips has supplied CDIC with all failed parts and the circumstances of their failure, so that CDIC can perform a failure analysis. If the root cause analysis shows that a portion of the
actual failure rate is due to rejected parts that have been found to be conforming, then the CDIC will meet with Philips and the failure rate will be recalculated. If the recalculated failure exceeds the Trigger Failure Rate, then CDIC will then
implement such root cause analysis and action plan within the immediately succeeding ninety (90) day period. Should CDIC fail to provide such support, Philips shall have the option to provide such engineering and technical support, or use a third
party to do so, at CDIC’s expense.  
  
 11.8  Survival of Support
Obligations.    CDIC’s maintenance and support obligations specified in this Section 11, and in Sections 12 and 13 will run for the term of this Agreement and will continue for a period of the lesser
of five and one half years after CDIC ships the last CDIC ICG Module Kit to Philips or five years after Philips ships the last ICG/ECG Device. This obligation includes making necessary parts and DSB Sensors to Philips and/or its customers, as
provided above. Philips may purchase DSB Sensors from CDIC at [CONFIDENTIAL TREATMENT REQUESTED], in which case Philips shall be responsible for all costs of sales and distribution and Philips will not be entitled to any commission under
Section 5.1. 
  
 12.    Training. 
  
 12.1  Technical Training.    CDIC will provide up to [CONFIDENTIAL TREATMENT REQUESTED] technical/service training sessions for
up to [CONFIDENTIAL TREATMENT REQUESTED] each at its place of business or at Philip’s Andover facility sufficient to allow Philips personnel skilled in the relevant field to become fully familiar with the technical attributes of each
CDIC Product (excluding OEM Boards) and the service of each CDIC Product (excluding OEM Boards). If training is held elsewhere, Philips will be responsible for reasonable travel expenses for CDIC personnel, provided expenses are discussed and agreed
upon in advance. Training will be at no charge to Philips. CDIC will provide product literature, learning products, and service manuals for each CDIC Product (excluding OEM Boards), provided that in no event shall the source code or source listings
of CDIC System 
  

 
 11 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 Application Software be required to be disclosed or provided by CDIC to Philips other than as required under this Agreement. Philips may further request and CDIC
will provide additional training at no charge as reasonably necessary to inform Philips personnel of upgraded, enhanced or new versions of the CDIC Products (excluding OEM Boards), but in no event shall CDIC’s personnel be required to spend
more than sixteen (16) man-hours per year in providing such additional training. Other training will be provided upon mutually agreeable terms and conditions. 
  
 12.2  Sales Training.    Each Party will provide up to [CONFIDENTIAL TREATMENT REQUESTED] sales training sessions for up to [CONFIDENTIAL TREATMENT
REQUESTED] each at its place of business or at Philip’s Andover facility or CDIC’s San Diego facility, as the case may be, sufficient to allow the other Party to become fully familiar with each product provided under this Agreement
(excluding OEM Boards) and its market. If training is held elsewhere, the Party receiving the training will be responsible for reasonable travel expenses of personnel of the Party providing the training, provided expenses are discussed and agreed
upon in advance. Training will be at no charge to the Party receiving the training. Each Party will provide the other Party with product literature, learning products, service manuals, lap-top based sales demonstration software, and all other sales
tools that have been created for each product provided under this Agreement (excluding OEM Boards). Each Party may further request and the other Party will provide additional training at no charge as reasonably necessary to inform the other Party
personnel of upgraded, enhanced or new versions of the products provided under this Agreement (excluding OEM Boards), but in no event shall personnel of the Party providing the training be required to spend more than sixteen (16) man-hours per year
in providing such additional training. Other training will be provided upon mutually agreeable terms and conditions. 
  
 12.3  Rights in Training Classes and Materials.    Each Party may at no charge use, reproduce, modify, display and perform internally (including such Party’s distributors), all training
classes, methods, and materials supplied or developed by the other Party under this Agreement solely for training purposes. 
  
 12.4  Customer Training.    Until such time as Philips may elect to provide customer training on the use of the CDIC ICG Module, either itself or through some party other than CDIC, CDIC will be
responsible for satisfactorily training Philips’ customers on use of the CDIC ICG Module. Customer training consists of eight (8) hours of on-site, in-service instruction at the customer’s location, and expenses for travel, lodging, meals
and course materials. CDIC recognizes that Philips does not provide staffed, in-service training on the use of Philips ECG Products and instead provides computer-based training for such products on a CD-Rom shipped with the products. 

 
 13.    Quality Assurance. 
  
 13.1  Certification Status.    Both Parties agree to maintain EN46001, European directive 93/42/EEC Annex II certification status and compliance with the U.S. Food
and Drug Administration’s Quality System Regulation, the European Medical Device Directive, and all other applicable U.S. and international regulations pertinent to the development, manufacturing and marketing of the CDIC Products and Philips
ECG Products. 

 
 12 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 13.2  Quality Assurance and Regulatory Audits.    CDIC shall permit Philips’s quality assurance
department, and Philips shall permit CDIC’s quality assurance department, to conduct a reasonable audit of its facilities at a mutually agreed upon date after the date of this Agreement for the purpose of approving its status as an OEM
supplier, and reasonable periodic audits thereafter for the purpose of confirming continuing compliance with applicable quality and regulatory requirements and guidelines. Such audits shall be at the expense of the auditor and scheduled with at
least thirty (30) days advance notice during normal business hours and shall not take place more than once per calendar year. 
  
 14.    Regulatory Matters. 
  
 14.1  CDIC
Products.    CDIC shall obtain and maintain all applicable governmental authorizations and regulatory approvals required to distribute the CDIC ICG Module Kit and OEM Board. The Parties shall work together to develop a
regulatory plan which defines and identifies with specificity the applicable regulatory and localization requirements for all countries other than the U.S. in which the ICG/ECG Device intended to be sold. In particular, CDIC shall be responsible for
generating its own device master record for the CDIC ICG Module Kit. It is understood that the CDIC ICG Module Kit shall be combined with components developed by Philips to comprise the ICG/ECG Device. Philips shall be responsible for obtaining and
maintaining all applicable U.S. and international governmental authorizations and regulatory approvals required to distribute the combination of CDIC Products and Philips products in the ICG/ECG Device as provided in Section 14.3. 

  
 14.2  Philips ECG Products.    Philips shall assume full regulatory
responsibility for the Philips ECG Products, including obtaining and maintaining all applicable governmental authorizations and regulatory approvals required to distribute the Philips ECG Products in all countries as applicable. 

 
 14.3  ICG/ECG Device.    Philips shall assume the regulatory responsibility at Philips
cost for the combination of the CDIC and Philips components in the ICG/ECG Device. CDIC shall fully support Philips as required in the process of obtaining global regulatory approvals by making available to Philips any required information, data,
certificates, or technical files in the requested formats. 
  
 14.4  International Regulatory
Responsibilities.    For purposes of bringing the CDIC Products into the market in countries affected by the European Medical Device Directive, CDIC shall be the legally responsible manufacturer under the European Medical
Device Directive. All CDIC Products distributed by Philips shall be marked accordingly. Other markings required by other geographical markets shall be incorporated as applicable. 
  
 14.5  Product Complaints and Incident Reporting.    Philips and CDIC shall inform each other by telephone and in writing promptly upon
receiving notice of any event that may require incident reporting in any country. Philips and CDIC shall inform each other in writing within two (2) business days of a customer complaint regarding the Philips ECG Products, the CDIC Products, DSB
Sensors, or the ECG Device. The Parties shall cooperate and use commercially reasonable efforts to resolve such customer complaints in a timely manner. Closure of any customer complaint relating to the ICG/ECG Device or Philips ECG Products shall
occur when 
  

 
 13 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 Philips notifies CDIC that the problem has been resolved satisfactorily. Closure of any customer complaint relating solely to CDIC Products or DSB Sensors shall
occur when CDIC notifies Philips that the problem has been resolved satisfactorily. 
  
 14.6  Delegation.    Philips may at its sole discretion delegate some of the obligations under this Section 14 to its sub-distributors. 
  

14.7  Traceability.    For the purpose of facilitating product traceability, all CDIC Products purchased from CDIC by Philips, and
all ECG Devices purchased from Philips by CDIC, shall require identification of an internal order number and tracking code. The Parties shall develop a methodology for placing such internal order number and tracking code. 
  
 15.    Product Changes; Discontinued Products; Future Products; Continued Supply. 
  
 15.1  Product Changes.    CDIC and Philips shall have the right, at any time, to make substitutions
and modifications to CDIC Products and ECG Devices, respectively, provided that such substitutions or modifications shall be backward compatible, i.e., they will not materially affect its form, fit, function, reliability, serviceability,
performance, functional interchangeability or interface capability. In the event that any proposed substitution or modification affects, in the reasonable judgment of the Party making such proposed substitution or modification, its form, fit,
function, reliability, serviceability, performance, functional interchangeability or interface capability, such Party shall give the other Party written notice of such proposed substitution or modification at least ninety (90) days prior to its
taking effect and the other Party shall have the right, during such ninety (90) day period and for ninety (90) days thereafter, to order CDIC Products or ECG Devices, as the case may be, without such substitution or modification for delivery up to
ninety (90) days after such substitution or modification takes effect. The Party making the proposed substitution or modification shall provide the other Party appropriate verification and validation information for evaluating the effect of the
change on the ECG Device. Philips and CDIC will agree upon any disputed changes. 
  
 15.2  Discontinued
Products.    Each Party agrees to notify the other Party in writing not less than twelve (12) months in advance of the discontinuance of any CDIC Product or Philips ECG Products, as the case may be, the other Party shall be
able to place Orders for such discontinued CDIC Products or Philips ECG Products, as the case may be, until the earlier of (a) twelve (12) months after receipt of the written notice of discontinuance or (b) termination of this Agreement. In
addition, the other Party shall be entitled to determine its lifetime-buy quantities and place a corresponding last purchase order. Parts price on discontinued products should not increase more than [CONFIDENTIAL TREATMENT REQUESTED] as set
forth in Exhibit A. 
  
 16.    Ownership and Protection of Results. 
  
 16.1  No Transfer of Ownership.    It is expressly agreed that neither Party shall license, sell or
otherwise transfer, expressly or by implication, to the other Party any patent rights, copyrights, trademarks, trade names, trade secrets or other intellectual property rights of any kind that either Party owns, or has filed patent applications for
or other registrations/applications, as of the Effective Date of this Agreement, except as provided under Sections 4.2 and 4.3 of this Agreement. 
  

 
 14 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 16.2  Models, Patterns, Dies, etc.    Except for intellectual property rights of Philips, if any,
CDIC shall retain the title to and possession of any models, patterns, dies, molds, jigs, fixtures, and other tools made for or obtained in connection with this Agreement and related to the CDIC Products, even if made for Philips. 

 
 16.3  Individual Developments.    Any and all right, title and interest in and to
inventions, patent applications, patents, copyrights, trademarks, trade names and/or other intellectual property rights of any kind (“IPR”) based on work performed under this Agreement solely by one or more employee(s) of one Party
to this Agreement shall be solely owned by that Party. 
  
 16.4  Joint
Developments.    Any and all right, title and interest in and to IPR based on work performed under this Agreement which IPR is created or invented jointly by one or more employees of CDIC and one or more employees of Philips
shall be jointly owned by the Parties. Any and all issues of joint creation and invention, as well as rights in the resulting IPR, shall be determined under the applicable laws and regulations of the United States of America, the States and any
other political divisions of same. 
  
 16.5  Procedures for Joint
Inventions.    When a potential joint invention is identified by a Party, that Party shall promptly notify in writing the other Party of such joint invention. The Parties will determine an appropriate course of action as to
filings of patent applications, including (i) which Party will be responsible for the preparation, filing and prosecution of any such applications and (ii) the countries of the world in which patent applications are to be filed. All costs related to
patent applications for joint inventions shall be shared equally between the Parties, except as otherwise provided herein. 
  
 In the event that one of the Parties (the “Filing Party”) desires to file a patent application on a joint invention hereunder in a country wherein the other Party does not want to file such a patent application, the
Filing Party shall be entitled to file or have filed in its own name patent or similar applications for such joint inventions and shall be the sole owner of the resulting intellectual property right. All additional costs related or pursuant to such
filing, including prosecution costs, maintenance costs of the application granted thereon shall be paid by the Filing Party. Intellectual property rights arising from such filings are subject to a free, fully paid-up, nonexclusive non-assignable and
unrestricted license in the countries concerned in favor of the other Party for that Party’s own use. Without limiting the scope of the foregoing, it is acknowledged that the other Party shall have no right to grant licenses or sublicenses
under such arising intellectual property rights in such countries to any third party. 
  
 In the event that one of
the Parties seeks not to pay its full share of maintenance fees or other costs associated with protecting a joint invention in any country, the other Party may take over the payment of such share. The non-paying Party forthwith relinquishes to the
paying Party all right, title and interest in and to the joint invention and any and all implicated intellectual property rights for the countries concerned, subject, however, to the non-paying Party’s retention of a free, fully paid-up,
non-exclusive, non-assignable and unrestricted license under such implicated intellectual property rights in the countries concerned. Notwithstanding such license, the non-paying Party shall have no right to grant licenses or sublicenses under the
implicated intellectual property rights in such countries to any third party. 

 
 15 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 17.    Documentation. 
  
 Each Party agrees to provide the other Party with such product literature, operations and maintenance manuals, and other information and training as is mutually agreed, to enable the other Party to properly sell and maintain
the ICG/ECG Device. CDIC agrees to give Philips the rights to use or reproduce its CDIC Documentation for incorporation into Philips Documentation excluding source code or source listings. Such documentation shall be provided in an electronic
format. CDIC shall be given the opportunity to review and approve Philips Documentation that incorporates CDIC Documentation prior to publication. The training each Party is required to provide the other Party under this Section 17 shall be
essentially completed prior to introduction of the ICG/ECG Device and shall be defined as part of any marketing plan to be developed by CDIC or Philips. 
  
 18.    Confidentiality. 
  
 No Confidential Information disclosed by
either Party to the other in connection with this Agreement shall be disclosed to any Person or entity other than the recipient Party’s employees and contractors directly involved with the recipient Party’s use of such information, who are
bound by written agreement to protect the confidentiality of such Confidential Information, and such Confidential Information shall otherwise be protected by the recipient Party from disclosure to others with the same degree of care accorded to its
own Confidential Information and at least reasonable care. In addition, each Party and its representatives shall use the Confidential Information only for the purposes specified under this Agreement and such Confidential Information shall not be
used for any other purpose without the prior written consent of the disclosing Party. As used in this Section 18, “Confidential Information” shall mean technical information, including but not limited to, drawings, data,
specifications, design instructions, installation and operational instructions, product cost information, memoranda, patent applications, working models and embodiments, as well as business and financial information which either (i) the disclosing
Party treats as confidential and reasonably believes is proprietary and confidential to the disclosing Party, or (ii) such information, if delivered in writing, is designated by the disclosing Party as “proprietary” or
“confidential,” or if delivered orally, is identified orally by the disclosing Party as “confidential” or “proprietary” at the time of disclosure. Information shall not be subject to this provision if it is or becomes a
matter of public knowledge without the fault of the recipient Party; if it was a matter of written record in the recipient Party’s files prior to disclosure to it by the other Party; if it was or is received by the recipient Party from a third
person under circumstances permitting its unrestricted disclosure by the recipient Party; or if it was independently developed by the recipient Party without reference to the Confidential Information. Upon termination of this Agreement, each Party
shall promptly destroy all Confidential Information of the other Party in the possession or control of such Party and all copies thereof, provided that each Party may retain one copy thereof for archival purposes. The obligations under
this Section 18 shall continue for both Parties for a period of three (3) years after termination of this Agreement. Neither Party will disclose any Confidential Information of the other Party with any of such Party’s subsidiaries or
affiliated companies without the express written consent of the other Party. 

 
 16 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 19.    Warranties and Indemnities. 
  
 19.1  Mutual Representations and Warranties.    Each Party hereby represents and warrants to the other Party as follows: 
  
 (a)  Corporate Existence and Power.    Such Party (i) is a corporation duly
organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated; (ii) has the corporate power and authority and the legal right to own and operate its property and assets, and to carry on its business
as it is now being conducted (iii) is in compliance with all requirements of applicable law, except to the extent that any noncompliance would not have a material adverse effect on the properties, business, financial or other condition of such Party
and would not materially adversely affect such Party’s ability to perform its obligations under this Agreement. 
  
 (b)  Authorization and Enforcement of Obligations.    Such Party (i) has the corporate power and authority and the legal right to enter into this Agreement and to perform its obligations
hereunder and (ii) has taken all necessary corporate action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement has been duly executed and delivered on behalf of such
Party, and constitutes a legal, valid, binding obligation, enforceable against such Party in accordance with its terms. 
  
 (c)  Consents.    All necessary consents, approvals and authorizations of all governmental authorities and other Persons required to be obtained by such Party in connection with this
Agreement have been obtained. 
  
 (d)  No Conflict.    The
execution and delivery of this Agreement and the performance of such Party’s obligations hereunder (i) do not conflict with or violate any requirement of applicable laws or regulations, and (ii) do not conflict with, or constitute a default
under, any contractual obligation of such Party. 
  
 19.2  Warranties by CDIC 

 
 (a)  CDIC warrants solely to Philips, for a period of [CONFIDENTIAL TREATMENT REQUESTED] from
the date the installation and training to the end user is completed of such CDIC Products, that CDIC Products (including CDIC System Application Software) delivered hereunder shall perform in accordance with the CDIC ICG Module Kit Specifications
and other applicable product specifications as published by CDIC in effect at the time of delivery of such CDIC Products (including Software), (provided that any such product specifications provide for at least the same level of functionality and
performance of the CDIC ICG Module Kit as required under the specifications in Exhibit B) and shall be free from material defects in materials and workmanship, when given normal, proper and intended usage. The above warranty does not extend
to any CDIC Products if and to the extent that problems with the CDIC Products arise because such Product is not maintained to CDIC’s maintenance recommendations, or is operated, handled or stored in a manner other than that specified by CDIC
in writing, has its serial number removed or altered or is treated with abuse, negligence or other improper treatment (including, without limitation, use outside the recommended environment). CDIC agrees, during the applicable warranty period, to
repair or replace (at CDIC’s option) all defective CDIC Products 
  

 
 17 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 within thirty (30) days after the date of return to CDIC and without cost (including shipping) to Philips. This warranty shall not extend
to any CDIC Product that is modified or altered (except as expressly provided herein) or is not maintained in accordance with CDIC’s maintenance recommendations. This warranty shall not apply to expendable components and supply items, such as,
but not limited to, cables, fuses and bulbs (or disposable items such as an DSB Sensor after the expiration date marked on the DSB Sensor packaging); nor shall CDIC have any obligation under this Agreement to make repairs or replacements, or which
result, in whole or in part, from catastrophe, fault or negligence of Philips, or anyone claiming through or on behalf of Philips, or from improper or unauthorized use of CDIC Products, or use of CDIC Products in a manner for which they were not
designed, or by causes external to CDIC Products such as, but not limited to, power or air conditioning failure. 
  
 (b)  CDIC represents and warrants that it either has all rights, title and interest in, or valid licenses to, the CDIC Products and any intellectual property rights related thereto. CDIC represents and warrants that it has
not granted any exclusive licenses or exclusive sublicenses in the CDIC Products that would prevent it from granting Philips the licenses set forth in Section 4.2 hereof (Non-Exclusive License Grant by CDIC). CDIC also represents and warrants
that it has the right and authority to engage in the joint development of the ICG/ECG Device as contemplated hereunder and that to its knowledge such activity will not infringe upon or misappropriate any third party’s intellectual property
rights. 
  
 (c)  CDIC warrants that it will deliver all CDIC Products free from the
rightful claims of any third party for infringement of any Patents, Trademarks or Copyrights or misappropriation of Trade Secrets. CDIC warrants that as of the date of this Agreement, CDIC has received no notice of a claim of infringement or
misappropriation from any third party regarding CDIC Products. 
  
 (d)  Philips’
exclusive remedy with respect to breach of any warranty provided in this Section 19.2 (b) and (c) shall be that CDIC will defend at its own expense, and will pay the costs and damages (including attorneys’ fees, other professional fees
and other costs of litigation or settlement) made in settlement or awarded as a result of, any action brought against Philips or any of Philips’ customers based on an allegation of such infringement or misappropriation with respect to any CDIC
Product. If an injunction is obtained against Philips’ or its customers’ use of an CDIC Product by reason of an infringement or misappropriation described above, or if in CDIC’s opinion an CDIC Product or any part thereof is likely to
become the subject of a claim of such infringement or misappropriation, CDIC may, at its option and its own expense procure the right for Philips and its customers to continue using such CDIC Product, or replace or modify such CDIC Product or any
part thereof so that it becomes non-infringing with a functionally equivalent replacement or a modified non-infringing CDIC Product that retains at least the same level of functionality. CDIC shall not have any obligation to Philips or its customers
under any provision of this Section 19.2 if the infringement or misappropriation claim is based upon (i) the modification of any CDIC Product not made by or on behalf of CDIC, (ii) the use of CDIC Products in combination with any program or
equipment not furnished or recommended in writing by CDIC or (iii) the use of CDIC Products in a manner or for any purpose for which CDIC did not design or license them. 

 
 18 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 19.3  Warranties by Philips. 
  
 (a)  Philips warrants solely to CDIC, for a period of [CONFIDENTIAL TREATMENT REQUESTED] from the date the installation and training to the
end user is completed of such CDIC Products to Philips, that Philips ECG Products delivered hereunder as a part of the ICG/ECG Device, shall perform in accordance with the Specifications and other applicable product specifications as published by
Philips in effect at the time of delivery of such ECG Device, (provided that any such product specifications provide for at least the same level of functionality and performance of the Philips ECG Products as required under the specifications in
Exhibit B) and shall be free from material defects in materials and workmanship, when given normal, proper and intended usage. The above warranty does not extend to any ECG Device if and to the extent that problems with the ECG Device arise
because such product is not maintained to Philips’s maintenance recommendations, or is operated, handled or stored in a manner other than that specified by Philips in writing, has its serial number removed or altered or is treated with abuse,
negligence or other improper treatment (including, without limitation, use outside the recommended environment). Philips agrees, during the applicable warranty period, to repair or replace (at Philips’s option) all defective Philips ECG
Products integrated in the ICG/ECG Device within thirty (30) days after the date of return to Philips and without cost (including shipping) to CDIC. This warranty shall not extend to any Philips ECG Products that is modified or altered (except as
expressly provided herein) or is not maintained in accordance with Philip’s maintenance recommendations. This warranty shall not apply to expendable components and supply items, such as, but not limited to, cables, fuses and bulbs (or
disposable items); nor shall Philips have any obligation under this Agreement to make repairs or replacements which are required by normal wear and tear, or which result, in whole or in part, from catastrophe, fault or negligence of CDIC, or anyone
claiming through or on behalf of CDIC, or from improper or unauthorized use of ICG/ECG Devices, or use of ICG/ECG Devices in a manner for which they were not designed, or by causes external to such products such as, but not limited to, power or air
conditioning failure. 
  
 (b)  Philips represents and warrants that it either has all
rights, title and interest in, or valid licenses to, the Philips ECG Products and any intellectual property rights related thereto. Philips represents and warrants that it has not granted any exclusive licenses or exclusive sublicenses in the
Philips ECG Products or ICG/ECG Device that would prevent it from granting CDIC the licenses set forth in Section 4.3 hereof (Non-Exclusive License Grant by Philips). Philips also represents and warrants that it has the right and authority to
engage in the joint development of the ICG/ECG Device as contemplated hereunder and that to its knowledge such activity will not infringe upon or misappropriate any third party’s intellectual property rights. 
  
 (c)  Philips warrants that it will deliver all Philips ECG Products, as integrated in the ICG/ECG Devices, free
from the rightful claims of any third party for infringement of any Patents, Trademarks or Copyrights or misappropriation of Trade Secrets. Philips warrants that as of the date of this Agreement, Philips has received no notice of a claim of
infringement or misappropriation from any third party regarding Philips ECG Products. 
  
 (d)  CDIC’s exclusive remedy with respect to breach of any warranty provided in this Section 19.3 (b) and (c) shall be that Philips will defend at its own expense, and will pay 

 
 19 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 the costs and damages (including attorneys’ fees, other professional fees and other costs of litigation or settlement) made in
settlement or awarded as a result of, any action brought against CDIC or any of CDIC’s customers based on an allegation of such infringement or misappropriation with respect to the ECG Device. If an injunction is obtained against CDIC’s or
its customers’ use of the ECG Device by reason of an infringement or misappropriation described above, or if in Philip’s opinion the ECG Device or any part thereof is likely to become the subject of a claim of such infringement or
misappropriation, Philips may, at its option and its own expense procure the right for CDIC and its customers to continue using such ECG Device, or replace or modify such ECG Device or any part thereof so that it becomes non-infringing with a
functionally equivalent replacement or a modified non-infringing ECG Device that retains at least the same level of functionality. Philips shall not have any obligation to CDIC or its customers under any provision of this Section 19.3 if the
infringement or misappropriation claim is based upon (i) the modification of any ECG Device not made by or on behalf of Philips, (ii) the use of ECG Devices in combination with any program or equipment not furnished or recommended in writing by
Philips or (iii) the use of ECG Devices in a manner or for any purpose for which CDIC did not design or license them. 
  
 19.4  Warranty Procedures.    Each Party (the “Notifying Party”) shall notify the other Party (the “Notified Party”) of any products it believes to be defective
during the applicable warranty period and which are covered by the warranties set forth in this Agreement. At the Notified Party’s option, such products shall be returned by the Notifying Party to Notified Party’s designated facility for
examination and testing, or may be repaired on site by the Notified Party. The Notified Party shall either repair or replace, within thirty (30) days of receipt, any such product found to be so defective and promptly return such products to the
Notifying Party. Transportation, service costs related to product removal and replacement, and insurance costs shall be borne by the Notified Party. Should the Notified Party’s examination and testing not disclose any defect covered by the
foregoing warranty, the Notified Party shall so advise the Notifying Party and, if the Notifying Party agrees with such determination, the Notified Party shall dispose of or return the product in accordance with the Notifying Party’s
instructions and at the Notifying Party’s sole expense, and the Notifying Party shall reimburse the Notified Party for such transportation and insurance costs. 
  
 19.5  Repair Warranty.    Each Party warrants its repair work and/or replacement parts for the greater of (i) the duration of the
original warranty period as set forth in Sections 19.2 or 19.3, as the case may be, or (ii) ninety (90) days from the date of repair. 
  
 19.6  DISCLAIMER OF WARRANTIES.  THE PROVISIONS OF THE FOREGOING WARRANTIES ARE IN LIEU OF ANY OTHER WARRANTY, WHETHER EXPRESS OR IMPLIED, WRITTEN OR ORAL
(INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WHICH WARRANTIES ARE EXPRESSLY DISCLAIMED. 
  
 19.7  Indemnification. 
  
 (a)  In the event that any
claim is brought against Philips as a result of personal injuries and/or property damages resulting from the ICG/ECG Device, CDIC agrees that it shall indemnify and hold Philips and its directors, officers, employees, representatives and agents

 
 20 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 harmless from and against any damages, liabilities, costs and expenses (including attorneys’ and other professional fees and other costs of litigation) to the extent they are determined by a court
of competent jurisdiction in a proceeding to which CDIC is a party to arise out of the strict liability of CDIC or the negligent acts or omissions of CDIC, its employees, agents and subcontractors. 
  
 (b)  In the event that any claim is brought against CDIC as a result of personal injuries and/or property
damages resulting from the ICG/ECG Device, Philips agrees that it shall indemnify and hold CDIC and its directors, officers, employees, representatives and agents harmless from and against any damages, liabilities, costs and expenses (including
attorneys’ and other professional fees and other costs of litigation) to the extent they are determined by a court of competent jurisdiction in a proceeding to which Philips is a party to arise out of the strict liability of Philips or the
negligent acts or omissions of Philips, its employees, agents and subcontractors. 
  
 20.    Trademarks.

  
 20.1  Ownership.    Philips acknowledges and agrees that CDIC is the
sole and exclusive owner of all right, title and interest in, or has valid licenses to the trademarks of CDIC and associated goodwill identified in Exhibit E (the “CDIC Trademarks”). CDIC acknowledges and agrees that Philips
is the sole and exclusive owner of all right, title and interest in and to the trademarks of Philips and associated goodwill identified on Exhibit E (the “Philips Trademarks”), CDIC Trademarks and Philips Trademarks,
collectively, (“Trademarks”). Each Party recognizes the value of the other Party’s Trademarks and the good will associated with the other Party’s Trademarks. Each Party agrees that its use of the other Party’s
Trademarks (under license by the other Party and subject to quality control requirements of the other Party) and any good will arising therefrom shall inure to the benefit of the Party owning such Trademark. Nothing contained herein shall create,
nor shall be construed as an assignment of, any right, title or interest in or to the CDIC Trademarks to Philips, or the Philips Trademarks to CDIC, other than the grant of the licenses in Section 20.3 below; it being acknowledged and agreed
that all other right, title and interest in and to the CDIC Trademarks is expressly reserved by CDIC and its licensors, and all other right, title and interest in and to the Philips Trademarks is expressly reserved by Philips. Each Party shall keep
the other Party’s Trademarks free from all liens, mortgages or other encumbrances. Each Party agrees that it shall not attack or otherwise challenge the title, validity or any other rights of the other Party in or to its Trademarks. Each Party
agrees to execute all papers reasonably requested by the other Party to effect further registration of, maintenance and renewal of the Trademarks authorized for use hereunder and, where applicable, to record the other Party as a registered user of
the same. A Party shall not use the other Party’s Trademarks or any other part thereof as part of its corporate name nor use any name or mark confusingly similar to the other Party’s Trademarks. Philips further agrees not to register in
any country any name or mark resembling or confusingly similar to the CDIC Trademarks and CDIC further agrees not to register in any country any name or mark resembling or confusingly similar to the Philips Trademarks. 
  
 20.2  Notice.    All ICG/ECG Devices that use the CDIC Trademarks or the Philips Trademarks shall be
accompanied, where reasonable and appropriate, by a proprietary notice consisting of the following elements: 

 
 21 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 (a)    (i)  The statement “BioZ” is a trademark of CDIC on the label of the CDIC
ICG Module Kit. 
  
 (ii)  The statement “PHILIPS” and “PHILIPS Shield
emblem” are registered trademarks of Koninklijke Philips Electronics N.V. on the label of the ICG/ECG Device. 
  
 (b)  Philips or CDIC shall include the “TM” or
“®” symbol, only as instructed by CDIC or Philips with respect to that Party’s
Trademark, after the first prominent use of the CDIC or Philips Trademark in the CDIC ICG Module Kit, the ICG/ECG Devices and related materials. A Party shall have a period of sixty (60) days in which to begin to use the “®” symbol in replacement of the “TM” symbol upon receiving instructions to do so by the other Party for all new stock of such materials. Such notified Party may continue to
deliver stocked literature before the change becomes effective and to deplete inventory of all such pre-existing material after the change becomes effective. 
  
 (c)  Philips shall reproduce copyright and trademark notices of CDIC on the “set-up screen” or in the location where the ICG screen is
initiated. 
  
 20.3  Cross-License To Use Trademarks. 
  
 (a)  Each Party hereby authorizes the other, on a nonexclusive, worldwide, royalty-free basis, to use the other
Party’s Trademarks to designate, distribute and promote CDIC Products and Philips ECG Products (as integrated with ICG/ECG Devices) subject to prior review and written approval by the Party whose Trademarks are used. It is contemplated that the
CDIC Module Kit and OEM Board will be branded with the CDIC Trademark and the ICG/ECG Devices with CDIC Module Kit incorporated will be branded with the Philips Trademark. ICG/ECG Devices having a Party’s branding as indicated on the attached
Exhibit F shall be deemed approved. Neither Party shall have any other right to use, display or utilize the other Party’s Trademarks for any other purpose or in any other manner without the prior written approval of the other Party.

  
 (b)  Neither Party shall have the right to authorize a third party to use, display or
utilize the other Party’s Trademarks for any purpose or in any manner without the prior written consent of the other Party. 
  
 (c)  Use of each Party’s Trademarks shall at all times comply with each such Party’s corporate identity policies. 
  
 (d)  Philips shall have the right to determine branding on all ICG/ECG Devices and final determination as to the appearance and placement of
Trademarks on all ICG/ECG Devices shall be made by Philips. CDIC shall have the right to determine branding on all CDIC Module Kits and final determination as to the appearance and placement of Trademarks on all CDIC Module Kits shall be made by
CDIC. 

 
 22 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 (e)  The Parties shall not brand ICG/ECG Devices, CDIC Module Kits or OEM Boards, as the case may be, with any
trademarks, service marks, trade names or logos other than those of Philips and/or CDIC, except as mutually agreed by the Parties, in writing. 
  
 20.4  Inspection.    Upon reasonable notice and request, each Party will furnish to the other samples of its applicable advertising and promotional materials as
necessary to allow the requesting Party to monitor compliance with this Agreement. 
  
 20.5  Compliance. 
  
 (a)  CDIC acknowledges the high
standards of quality and excellence established by Philips with respect to products bearing Philips Trademarks. Philips acknowledges the high standards of quality and excellence established by CDIC with respect to products bearing CDIC Trademarks.
Each Party agrees that ICG/ECG Devices which both Parties’ Trademarks are used shall be of such quality so as to maintain such high standards and to reflect well upon both Parties. Each Party agrees to adhere to its own or the following quality
standards (whichever may be more rigorous) for use of the other Party’s Trademarks in connection with the ICG/ECG Devices: 
  
 (b)  In order to ensure that the ICG/ECG Devices distributed under both Parties’ Trademarks complies with the consistent quality standards of each Party, all ICG/ECG Devices distributed
by or for Philips or CDIC which bear a CDIC or Philips Trademark shall have been manufactured in accordance with product specifications and any other commercially reasonable guidelines agreed to by the Parties. Each Party shall cause each major new
release of Philips ECG Products, CDIC Module Kits, and CDIC Products to comply with such standards or remove the CDIC Trademark(s) or the Philips Trademark(s) from any such new release, which does not comply with such standards. A Party shall have a
period of thirty (30) days in which to bring newly manufactured ICG/ECG Devices, Philips ECG Products, CDIC Module Kits, and CDIC Products, into compliance with the agreed standard, following the date of receipt of notice that such ICG/ECG Devices,
Philips ECG Products, CDIC Module Kits, and CDIC Products fail to comply with the agreed standard. 
  
 (c)  Each Party acknowledges that if ICG/ECG Devices bearing both Parties’ Trademarks fail to satisfy the quality standards set forth above, the substantial good will which each Party has built and now possess in its
own products and Trademarks shall be impaired. 
  
 20.6  Protection and
Infringement.    Each Party agrees to cooperate with and assist the other Party in obtaining, maintaining, protecting, enforcing and defending the other Party’s proprietary rights in and to its Trademarks. In the event
that either Party learns of any infringement, threatened infringement or passing-off of the other Party’s Trademarks, or that any third party claims or alleges that the other Party’s Trademarks infringe the rights of the third party or are
otherwise liable to cause deception or confusion to the public, the Party obtaining such information shall notify the other Party giving the particulars thereof, and if such claims or allegations relate to this Agreement, the ICG/ECG Devices, the
Philips ECG Products, the CDIC ICG Module Kit or CDIC Products sold hereunder, shall provide necessary information and assistance reasonably requested by such other Party in the event that such other Party decides that proceedings should be
commenced. Philips shall have the sole right to bring or defend 

 
 23 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 proceedings alleging infringement of the Philips Trademarks or unfair competition related thereto, and to monitor and take such action as may be necessary to prevent any infringement, imitation, claim or other utilization of
the Philips Trademarks, and CDIC shall have the sole right to bring or defend proceedings alleging infringement of the CDIC Trademarks or unfair competition related thereto, and to monitor and take such action as may be necessary to prevent any
infringement, imitation, claim or other utilization of the CDIC Trademarks. 
  
 20.7  Termination.    In addition to the termination rights set forth in Section 22.2(d) and Section 22.2(e) hereof, in the event that either Party is in material breach of any
provision of this Section 20, the non-breaching Party may, upon thirty (30) days written notice, terminate the license granted in Section 20.3 if the breaching Party does not cure such breach or default within such thirty (30) day
period. In addition to the provisions of Section 22 hereof, upon termination of the license granted in Section 20.3, or upon termination of this Agreement, for whatever cause: 
  
 (a)  Each Party shall immediately cease and desist from any further use of the other Party’s Trademarks and any trademarks confusingly
similar thereto, either directly or indirectly; 
  
 (b)  All rights in the CDIC Trademarks
granted to Philips hereunder shall immediately revert to CDIC, and all rights in the Philips Trademarks granted to CDIC hereunder shall immediately revert to Philips; 
  
 (c)  In the event that this Agreement is terminated for any reason other than a material breach or material default by CDIC or Philips, each Party
shall thereafter dispose of all advertising and promotional materials relating thereto which had been completed by it prior to such termination. Products in inventory, materials in the process of manufacture or in a Party’s possession before
such termination, customer and purchase orders placed or in process at the time of termination or ninety (90) days thereafter, and inventory required to fulfill service requirements to customers, will be allowed. 
  
 20.8  Promotional Claims.    The general form of any promotional claims by Philips regarding
CDIC’s ICG Core Technology and/or the integration of CDIC’s ICG Core Technology in ICG/ECG Devices, and the specific form of the use of the CDIC Trademarks, and of intended use claims regarding CDIC’s ICG Core Technology, in
promotional material, advertisement, and/or in written technical literature shall be subject to review and written approval by CDIC prior to its publication or display. The general form of any promotional claims by CDIC regarding Philips’s ECG
Products or the integration of CDIC’s ICG Core Technology in ICG/ECG Devices, and the specific form of the use of the Philips Trademarks, and of intended use claims regarding the Philips ECG Products, in promotional material, advertisement,
and/or in written technical literature shall be subject to review and written approval by Philips prior to its publication or display. 
  
 21.    Export. 
  
 CDIC shall not export, directly or indirectly, the
ICG/ECG Device or other products, information or materials provided by Philips hereunder, and Philips shall not export, directly or 

 
 24 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 indirectly, CDIC Products (including when integrated into ICG/ECG Devices) or other products, information or materials provided by CDIC hereunder, to any country for which the United States requires any export license or
other governmental approval at the time of export without first obtaining such license or approval. Each Party shall comply with the latest United States export regulations, and shall defend and indemnify the other Party from and against any
damages, fines, penalties, assessments, liabilities, costs and expenses (including reasonable attorneys’ fees and court costs) arising out of any claim that the products, information or materials provided by the other Party hereunder were
exported or otherwise shipped or transported in violation of applicable laws and regulations. 
  
 22.    Term;
Default and Termination 
  
 22.1  Term and Renewal.    The initial term of
this Agreement shall commence on the Effective Date and shall continue for a period of [CONFIDENTIAL TREATMENT REQUESTED]. The term of this Agreement shall be renewed automatically for successive [CONFIDENTIAL TREATMENT REQUESTED]
periods, unless either Party provides written notice of termination to the other Party at least [CONFIDENTIAL TREATMENT REQUESTED] prior to expiration of this Agreement. 
  
 22.2  Termination. 
  
 (a)  Termination by CDIC for Philips’ Inability to Provide Deliverables.    This Agreement may be terminated by CDIC giving [CONFIDENTIAL TREATMENT REQUESTED] prior written notice to
Philips if Philips has failed to provide CDIC with the following deliverables, consistent with the Philips ECG Products Specifications outlined in Exhibit B: (i) the software development platform by [CONFIDENTIAL TREATMENT REQUESTED],
(ii) the protoype cart and printer by [CONFIDENTIAL TREATMENT REQUESTED], or (iii) [CONFIDENTIAL TREATMENT REQUESTED] form, fit and function prototype Philips ECG Products by [CONFIDENTIAL TREATMENT REQUESTED], and any such
failure has not been cured within such thirty (30) day notice period.  
  
 (b)  Termination by Philips for CDIC’s Inability to Provide Deliverables.    The Agreement may be terminated by Philips giving [CONFIDENTIAL TREATMENT REQUESTED] prior written notice
to CDIC (i) if CDIC has failed to complete the prototype CDIC ICG Module Kits consistent with the CDIC ICG Module Kit Specifications outlined in Exhibit B for development testing by [CONFIDENTIAL TREATMENT REQUESTED] or (ii) if CDIC
has failed to provide a production unit CDIC ICG Module Kit consistent with the CDIC ICG Module Kit Specifications outlined in Exhibit B by [CONFIDENTIAL TREATMENT REQUESTED], and any such failure has not been cured within such thirty
(30) day notice period. 
  
 (c)  Termination by Either Party for Lack of Material
Competitive Features.    Either Party may terminate this Agreement if the other Party’s component products do not have material competitive features. In order to exercise its rights under this Section 22.2 (c), a
Party must provide [CONFIDENTIAL TREATMENT REQUESTED]prior written notice to the other Party, specifying in reasonable detail the material features or capabilities that are required. Following receipt of such notification, the notified Party
shall have [CONFIDENTIAL TREATMENT REQUESTED] to include for customer shipment such features in its component products. If at the end of such [CONFIDENTIAL TREATMENT REQUESTED] period, the notified Party is unable to do so, the
notifying Party may terminate the Agreement; provided, that no such notification shall be effective [CONFIDENTIAL TREATMENT REQUESTED]. 

 
 25 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 (d)  Termination for Material Breach.    Either Party may terminate this Agreement if the other Party shall neglect or
fail to perform or observe any of its material obligations to such Party hereunder, including, without limiting the generality thereof, the timely payment of any sums due, including, without limitation, timely payment of sums due to CDIC or Philips
pursuant to Sections 3.5 and 6.4 hereof, and such failure is not cured within thirty (30) days after written notice thereof from the such Party. 
  
 (e)  Termination for Dissolution, Insolvency, Etc.    Either Party may terminate this Agreement if there is (i) a dissolution, termination of existence,
liquidation, insolvency or business failure of the other Party, or the appointment of a custodian or receiver of any part of the other Party’s property, if such appointment is not terminated or dismissed within thirty (30) days; (ii) a
composition or an assignment or trust mortgage for the benefit of creditors by the other Party; (iii) the commencement by the other Party of any bankruptcy proceeding under the United States Bankruptcy Code or any other federal or state bankruptcy,
reorganization, receivership, insolvency or other similar law affecting the rights of creditors generally; or (iv) the commencement against the other Party of any proceeding under the United States Bankruptcy Code or any other federal or state
bankruptcy, reorganization, receivership, insolvency or other similar law affecting the rights of creditors generally, which proceeding is not dismissed within thirty (30) days. 
  
 22.3  Remedies.    In addition to the non-defaulting Party’s right to terminate this Agreement pursuant to Section 22.2(d)
and Section 22.2(e) hereof, the non-defaulting Party shall be entitled to any other remedies that such Party may have at law or in equity. Upon termination of this Agreement, the Party terminating the Agreement (“Terminating Party”)
may refuse to make or take further Orders or deliveries, and declare all obligations under this Agreement immediately due and payable. Any such termination or other action taken by the Terminating Party pursuant to this Section 22.3 shall not
relieve the other Party of its obligations hereunder. Notwithstanding anything to the contrary contained herein, (i) CDIC’s sole and exclusive remedy with respect to Philips’ failure to provide the deliverables as set forth in Section
22.2(a) or to maintain materially competitive features as set forth in Section 22.2(c) shall be termination of this Agreement and (ii) Philips’ sole and exclusive remedy with respect to CDIC’s failure to provide the deliverables
as set forth in Section 22.2(b) or to maintain materially competitive features as set forth in Section 22.2(c) shall be termination of this Agreement. 
  
 22.4  Insurance.    Upon request of either Party, the other Party shall provide to the requesting Party, evidence of product liability,
general liability and property damage insurance against an insurable claim or claims which might or could arise regarding CDIC Products purchased from CDIC or Philips products. Such insurance shall contain a minimum limit of liability for bodily
injury and property damage of not less than [CONFIDENTIAL TREATMENT REQUESTED]. 
  
 23.    Restrictions on
Sale of Other Cardiograph Products. 
  
 CDIC agrees to sell no other ICG/ECG product through CDIC’s direct
sales force or through CDIC’s distributors until the [CONFIDENTIAL TREATMENT REQUESTED] of (i) [CONFIDENTIAL TREATMENT REQUESTED] from the [CONFIDENTIAL TREATMENT REQUESTED] of the [CONFIDENTIAL TREATMENT REQUESTED],
(ii) [CONFIDENTIAL TREATMENT REQUESTED] or (iii) the termination of this Agreement by CDIC due to Philips’ breach pursuant to Section 22(d) or Section 22.2(e) herein. 

 
 26 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 24.    Dispute Resolution. 
  
 24.1  General.    Any dispute, controversy or claim arising out of or relating to this Agreement or the validity, interpretation, breach or termination thereof (a “Dispute”),
including claims seeking redress or asserting rights under applicable law, shall be resolved in accordance with the procedures set forth herein. Until completion of such procedures, no Party may take any action not contemplated herein to force a
resolution of the Dispute by any judicial or similar process, except to the limited extent necessary to; (i) avoid expiration of a claim that might eventually be permitted hereby; or (ii) obtain interim relief, including injunctive relief, to
preserve the status quo or prevent irreparable harm. 
  
 24.2  Good Faith
Negotiations.    Any Dispute relating to this Agreement will be resolved first through good faith negotiations between appropriate management-level representatives of each Party having responsibility for the sale or use of
products involved. 
  
 24.3  Arbitration.    After completion of good faith
negotiations between the Parties pursuant to Section 24.2 hereof, the Parties shall submit the Dispute for resolution by binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules. If the
resolution of the Dispute is not found within the terms of this Agreement, the arbitrator shall determine the Dispute in accordance with the governing law of the Agreement, without giving effect to any conflict of law rules or other rules that might
render such law inapplicable or unavailable. 
  
 24.4  Applicable Law.    The
law applicable to the validity of this arbitration provision, the conduct of the arbitration, the challenge to or enforcement of any arbitral award or order or any other question of arbitration law or procedure shall be governed exclusively by the
Federal Arbitration Act, 9 U.S.C. sections 1-16; however, the award can be modified or vacated on grounds cited in the Federal Arbitration Act or, if the arbitrator’s findings of facts are not supported by substantial evidence or the
conclusions of law are erroneous, under the laws of the State of Delaware. The Parties agree that the federal and state courts located in the Southern District of the State of California shall have non-exclusive jurisdiction over any action brought
to enforce this arbitration provision, and each Party irrevocably submits to the jurisdiction of said courts. Notwithstanding the foregoing sentence, either Party may apply to any court of competent jurisdiction, wherever situated, for enforcement
of any judgment on an arbitral award. 
  
 24.5  Provisional or Interim Judicial
Measures.    Notwithstanding any other provision of this Agreement, the Parties expressly agree either shall have the right to apply to any state or federal court in the State of California or any other court that would
otherwise have jurisdiction, for provisional or interim measures. 
  
 25.    General Provisions. 

 
 25.1  Force Majeure.    In the event that either Party is prevented from performing, or is
unable to perform, any of its obligations under this Agreement due to any act of God, fire, casualty, flood, war, strike, lock out, failure of public utilities, injunction or any act, exercise, assertion or requirement of governmental authority,
epidemic, destruction of production facilities, insurrection, inability to procure materials, labor, equipment, transportation or energy 

 
 27 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 sufficient to meet manufacturing needs, or any other cause beyond the reasonable control of the Party invoking this provision, and if such Party shall have used its best efforts to avoid such occurrence and minimize its
duration and has given prompt written notice to the other Party, then the affected Party’s performance shall be excused and the time for performance shall be extended for the period of delay or inability to perform due to such occurrence. If
the force majeure continues for a period of 180 days, the other Party shall have the right to terminate the Agreement. 
  
 25.2  Publicity.    Neither Party shall originate any publicity, news release or other public announcement relating to this Agreement or the existence of an arrangement between the Parties without
the prior written approval of the other Party, except as otherwise required by law. 
  
 25.3  Waiver.    The waiver by either Party of a breach or a default of any provision of this Agreement by the other Party shall not be construed as a waiver of any succeeding breach of the same
or any other provision, nor shall any delay or omission on the part of either Party to exercise or avail itself of any right, power or privilege that it has, or may have hereunder, operate as a waiver of any right, power or privilege by such Party.

  
 25.4  No Agency.    Nothing contained in this Agreement shall be deemed to
constitute either Party as the agent or representative of the other Party, or both Parties as joint venturers or partners for any purpose. Neither Party shall be responsible for the acts or omissions of the other Party, and neither Party shall have
authority to speak for, represent or obligate the other Party in any way without prior written authority from the other Party. 
  
 25.5  Survival of Obligations.    All obligations of either Party under Sections 4.2 and 4.3 (but only insofar as it relates to the rights of customers to continue using ICG/ECG
Devices), 5 (License Fees and Commissions), 11 (Service and Support), 14 (Regulatory Matters), 16 (Ownership and Protection of Results), 18 (Confidentiality), 19 (Warranties and Indemnities), 20
(Trademarks), 23 (Restrictions on Sale of Other Cardiograph Products), 24 (Dispute Resolution), and 25.6 (Limitation on Liability) shall survive the expiration or termination of this Agreement and continue to be enforceable.

  
 25.6  LIMITATION ON LIABILITY.    IN NO EVENT SHALL EITHER PARTY BE LIABLE
TO THE OTHER PARTY FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, EXEMPLARY, STATUTORY, ENHANCED OR OTHER INDIRECT DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS, LOSS OF DATA OR LOSS OF USE DAMAGES) ARISING OUT OF THE MANUFACTURE, SALE
OR SUPPLYING OF CDIC PRODUCTS OR PHILIPS PRODUCTS. 
  
 25.7  Severability.    In
the event that any provision of this Agreement is held by a court of competent jurisdiction to be unenforceable because it is invalid or in conflict with any law of any relevant jurisdiction, the validity of the remaining provisions shall not be
affected and the rights and obligations of the Parties shall be construed and enforced as if the Agreement did not contain the particular provisions held to be unenforceable. 
  
 25.8  Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without
reference to conflict of law 

 
 28 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 principles, and shall not be governed by the U.N. Convention on Contracts for the International Sale of Goods. 
  
 25.9  Notices.    Any notice or communication with regard to the termination of or changes to this Agreement from one Party to the other shall be in writing and either personally
delivered or sent via certified mail, postage prepaid and return receipt requested addressed, to such other Party at the address of such Party specified in this Agreement or such other address as either Party may from time to time designate by
notice hereunder. 
  
 25.10  Entire Agreement.    This Agreement, together with
all exhibits, the CDIC ICG Module Kit Specifications and Philips ECG Products Specifications, constitutes the entire agreement between the Parties. No waiver, consent, modification or change of terms of this Agreement shall bind either Party unless
in writing signed by both Parties, and then such waiver, consent, modification or change shall be effective only in the specific instance and for the specific purpose given. There are no understandings, agreements, representations or warranties,
expressed or implied, not specified herein regarding this Agreement, the CDIC Products or the ECG Devices purchased and/or licensed hereunder. Only the terms and conditions contained in this Agreement shall govern the transactions contemplated
hereunder, notwithstanding any additional, different or conflicting terms which may be contained in any Order or other document provided by one Party to the other. 
  
 25.11  Headings.    Captions and headings contained in this Agreement have been included for ease of reference and convenience and
shall not be considered in interpreting or construing this Agreement. 
  
 25.12  Exhibits:    The following exhibits shall be part of this Agreement: 
  
 Exhibit A:    Products and Purchase Prices 
  
 Exhibit
B:    Specifications for CDIC ICG Module Kit and Philips ECG Products 
  
 Exhibit
C:    Development Project 
  
 Exhibit D:    Contact
Persons/Addresses Prices 
  
 Exhibit E:    Trademarks 
  
 Exhibit F:    Other Pricing 
  
 Exhibit G:    Sales Channel Plan 
  
 25.13  Beneficiaries.    This Agreement is solely for the benefit of the Parties hereto and their respective affiliates, successors in interest and permitted assigns and shall not confer
upon any other person any remedy, claim, liability, reimbursement or other right in excess of those existing without reference to this Agreement. 
  
 25.14  Assignment.    Neither Party may assign or delegate this Agreement or any rights or obligations under this Agreement without the prior written consent of the
other. 

 
 29 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 IN WITNESS WHEREOF, this Agreement has been duly executed as a sealed instrument as of the date specified above. 
  
 
	  	 	  

 
  
 
	 CardioDynamics International Corp.
 	 	 Philips Medical Systems, a division of
 
	  	 	  	 	 Philips Electronics North America
 
	  	 	  	 	 Corporation
 
	  	 	  	 	  	  	  
	  	 	  	 	  	  	  
	 By:
 	 	 /s/     MICHAEL K. PERRY
 	 	 By:
 	  	 /s/    NEAL LONG
 
	  	 	 
	 	  	  	 

	 Name:
 	 	 Michael Perry
 	 	 Name:
 	  	 Neal Long
 
	 Title:
 	 	 Chief Executive Officer
 	 	 Title:
 	  	 VP & GM-CDY and PENAC’s
 authorized representative
 

 
  

 
 30 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 EXHIBIT A 
  
 PRODUCTS AND PURCHASE PRICES 
  
 A)    CDIC ICG MODULE KITS AND ECG DEVICES: 

 
 CDIC shall pay Philips the following transfer fee each ECG Device ordered by CDIC: 
  
 
	  	 	 1.
 	 	 Preferred Transfer Price
 	  	 [CONFIDENTIAL
 TREATMENT
 REQUESTED]
 Provided Philips is
 distributing ICG/ECG

Device
 
	  	 	  	 	  	  	  
	  	 	 2.
 	 	 OEM Transfer Price
 	  	 [CONFIDENTIAL
 TREATMENT
 REQUESTED]
 Provided Philips is
 no longer
 distributing ICG/ECG
 Device
 

 
  
 Philips shall pay CDIC the following transfer fee for each CDIC ICG
Module Kit ordered by Philips: 
  
 
	
	
	
	
	
	
	

	  	    	 COMBINED ASP
 for the ICG/ECG
           Device
 	    	 Transfer Price
 	    	  
	
	
	
	
	
	
	

	 CDIC makes the sale
 of the “ICG/ECG
 Device”
 	    	 N/A
 	    	 [CONFIDENTIAL TREATMENT REQUESTED]
 	    	  
	
	
	
	
	
	
	

	 Philips makes the
 sale of the
 “ICG/ECG Device”
 	    	 [CONFIDENTIAL TREATMENT REQUESTED]
 	    	 [CONFIDENTIAL TREATMENT REQUESTED]
 	    	  
	
	
	
	
	
	
	

	 Sensor Commission
 	    	 CDIC will pay a commission of [CONFIDENTIAL TREATMENT REQUESTED] of the [CONFIDENTIAL TREATMENT REQUESTED] to Philips on a
[CONFIDENTIAL TREATMENT REQUESTED] basis for all DSB Sensors used on the combined “ICG/ECG Device”
 
	
	
	

 
 * If Philips discontinues distribution of the ICG/ECG Device 

 
 31 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 B)    CDIC DSB SENSORS: 
  
 DSB Sensors will be distributed by
CDIC’s dedicated sales force. Philips will not offer DSB Sensors for the ICG/ECG Device except for a sample package of 10 applications included with the initial module order. Philips may purchase DSB Sensors from CDIC [CONFIDENTIAL TREATMENT
REQUESTED], in which case Philips shall be responsible for all costs of sales and distribution and Philips will not be entitled to any commission under Section 5.1. 
  
 C)    SPARE PARTS: 
  
 CDIC SPARE
PARTS/ACCESSORY PRICES 
 
	         ____________________________________________

	  	  
	         Orderable
         Parts/Products
 	  	 CDIC
 List Price
 (US$)
 	  	 Philips    
 Price    
 N/A    
 	  	  
	         ____________________________________________

	  	  
	         DSB Sensor
         Cable
         (replacement)
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 N/A    
 	  	  
	         ____________________________________________

	  	  
	         User Manual
 	  	 $N/C
 	  	 N/A    
 	  	  
	         ____________________________________________

	  	  

 
  
 D)    OTHER FEES: 
  
 Philips shall [CONFIDENTIAL TREATMENT REQUESTED] CDIC [CONFIDENTIAL TREATMENT REQUESTED] for each ICG Module Kit purchased
for the first [CONFIDENTIAL TREATMENT REQUESTED]. 
  
 Until such time as Philips may elect to provide customer
training on the use of the CDIC ICG Module, either itself or through some party other than CDIC, Philips agrees to pay an additional fee for such training of [CONFIDENTIAL TREATMENT REQUESTED]. 

 
 32 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 EXHIBIT B 
  
 SPECIFICATIONS FOR CDIC ICG MODULE KIT AND PHILIPS
ECG PRODUCTS 
  
 CDIC ICG Module Kit Specifications provided from counsel to CDIC to general counsel to Philips,
pursuant to a certain letter dated the Effective Date. 
  
 Philips ECG Products Specifications provided from general
counsel to Philips to counsel to CDIC, pursuant to a certain letter dated the Effective Date. 

 
 33 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 EXHIBIT C 
  
 DEVELOPMENT PROJECT– 
 PRELIMINARY OUTLINE 
  
 1.    Scope

  
 
	 CDIC:
 	  	 Design, develop and verify CDIC ICG Module Kit Hardware
 
	  	  	  
	 CDIC:
 	  	 Design, develop, and verify CDIC ICG Module Kit software and CDIC System Application Software for the operation of the CDIC ICG Module Kit.

	  	  	  
	 CDIC:
 	  	 Provide project documentation in accordance with a version of CDIC Design Control Procedure QSP 107 that has been approved by PHILIPS.
 
	  	  	  
	 CDIC:
 	  	 Submit 510(k) for a CDIC ICG Module that has the capability to interface with the ICG/ECG Device.
 
	  	  	  
	 PHILIPS:
 	  	 Review CDIC QSP 107.
 
	  	  	  
	 PHILIPS:
 	  	 Provide assistance and information necessary to comply with a PHILIPS-approved version of CDIC QSP 107, under the management of [CONFIDENTIAL TREATMENT
REQUESTED].
 
	  	  	  
	 PHILIPS:
 	  	 Maintain projects file and provide milestone review processes.
 
	  	  	  
	 PHILIPS:
 	  	 Provide reliability testing of the ICG/ECG Device in accordance with Philips internal requirements.
 
	  	  	  
	 PHILIPS:
 	  	 Submit 510(k) for the ICG/ECG Device.
 

 
  
 2.    Development Timetable 
  
 Project schedule will be developed by CDIC and PHILIPS jointly. Preferred completion date would allow for [CONFIDENTIAL TREATMENT
REQUESTED]. 
  
 3.    Tasks 
  
 Tasks will be detailed in project schedule. 

 
 34 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 EXHIBIT D 
  
 CONTACT PERSONS/ADDRESSES 

 
 Contact Persons and Responsibilities at CDIC: 
  
 
	
	
	
	
	
	
	

	 Person
 	 	 Title
 	 	 Responsibility
 	 	 Email
 Phone Number
 Fax Number
 
	
	
	
	
	
	
	

	 Mike Perry
 	 	 Chief Executive Officer
 	 	 Executive Management Issues
 	 	 [CONFIDENTIAL TREATMENT
 REQUESTED](858)
535-0202[CONFIDENTIAL
 TREATMENT REQUESTED]
 [CONFIDENTIAL TREATMENT

REQUESTED]
 
	
	
	
	
	
	
	

	 Steve Loomis
 	 	 Chief Financial Officer
 	 	 Financial Issues
 	 	 [CONFIDENTIAL TREATMENT
 REQUESTED](858) 535-0202
[CONFIDENTIAL
 TREATMENT REQUESTED]
 [CONFIDENTIAL TREATMENT
 REQUESTED]
 
	
	
	
	
	
	
	

	 Rich Trayler
 	 	 Chief Operating Officer
 	 	 International Distribution Issues
 	 	 [CONFIDENTIAL TREATMENT
 REQUESTED](858)
535-0202[CONFIDENTIAL
 TREATMENT REQUESTED]
 [CONFIDENTIAL TREATMENT

REQUESTED]
 
	
	
	
	
	
	
	

	 Dennis Hepp
 	 	 Chief Technology Officer
 	 	 Technical Issues
 	 	 [CONFIDENTIAL TREATMENT
 REQUESTED](858)
535-0202[CONFIDENTIAL
 TREATMENT REQUESTED]
 [CONFIDENTIAL TREATMENT

REQUESTED]
 
	
	
	
	
	
	
	

	 [CONFIDENTIAL
 TREATMENT REQUESTED]
 	 	 [CONFIDENTIAL TREATMENT REQUESTED]
 	 	 [CONFIDENTIAL TREATMENT REQUESTED]
 	 	 [CONFIDENTIAL TREATMENT
 REQUESTED] (858) 535-0202
[CONFIDENTIAL
 TREATMENT REQUESTED]
 [CONFIDENTIAL TREATMENT
 REQUESTED]
 
	
	
	
	
	
	
	

 
  
 
	 Mailing Address:
 	  	 CardioDynamics International Corporation
 6175 Nancy Ridge Drive, Suite 300
 San Diego, California 92121
 USA
 

 
  
 Contact Persons and Responsibilities at Philips: 
  
 
	
	
	
	
	
	
	

	 Person
 	    	 Title
 	    	 Responsibility
 	    	 Email
 Phone Number
 Fax Number
 
	
	
	
	
	
	
	

	 [CONFIDENTIAL
 TREATMENT REQUESTED]
 	    	 [CONFIDENTIAL TREATMENT REQUESTED]
 	    	 [CONFIDENTIAL TREATMENT REQUESTED]
 	    	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	
	
	
	
	
	

	 [CONFIDENTIAL
 TREATMENT REQUESTED]
 	    	 [CONFIDENTIAL TREATMENTREQUESTED]
 	    	 [CONFIDENTIAL TREATMENT REQUESTED]
 	    	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	
	
	
	
	
	

	 [CONFIDENTIAL
 TREATMENT REQUESTED]
 	    	 [CONFIDENTIAL TREATMENT REQUESTED]
 	    	 [CONFIDENTIAL TREATMENT REQUESTED]
 	    	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	
	
	
	
	
	

 

 
 35 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 
	 Mailing Address:
 	  	 Philips Medical Systems
 
	  	  	 1201-B N. Rice Avenue Oxnard, CA 93030
 
	  	  	 USA
 

 

 
 36 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 EXHIBIT E 
  
 TRADEMARKS 
  
 Trademarks of CDIC: 
  
 Registered Trademarks 
  
 BioZ.com® 
 BioZ® 
 BioZsim® 
 ZMARC® 
 Zcare®

  
 Pending 
  
 BioZTECT 
 DISQ 
 BioZ.tel 
  
 Trademarks of Philips:

  
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 TrademarkName
 	  	 Country
 	  	 Status
 	  	 FilDate
 	  	 ApplNumber
 	  	 RegDate
 	  	 RegNumber
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 ACOUSTIC DENSITOMETRY
 	  	 JP
 	  	 Pending
 	  	 08-Nov-96
 	  	 08-126232
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 AQI
 	  	 US
 	  	 Registered
 	  	 13-Apr-95
 	  	 74/660623
 	  	 14-Jan-97
 	  	 2,031,001
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 AVALON
 	  	 US
 	  	 Pending
 	  	 30-Jul-01
 	  	 78/076482
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 BIOMED
 	  	 FR
 	  	 Registered
 	  	 31-Jul-96
 	  	  	  	 31-Jul-96
 	  	 96636838
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CARDIOTEL
 	  	 GB
 	  	 Registered
 	  	 14-May-99
 	  	 2197418
 	  	 14-May-99
 	  	 2197418
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CAREVUE
 	  	 US
 	  	 Registered
 	  	 19-Sep-96
 	  	 75/168939
 	  	 01-Jun-99
 	  	 2,248,487
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CODEMASTER
 	  	 US
 	  	 Registered
 	  	 13-Apr-94
 	  	 74/511967
 	  	 23-Apr-96
 	  	 1,970,449
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CODERUNNER
 	  	 AU
 	  	 Registered
 	  	 04-Apr-96
 	  	 705934
 	  	 04-Apr-96
 	  	 705934
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CODERUNNER
 	  	 CA
 	  	 Registered
 	  	 11-Apr-96
 	  	 809626
 	  	 13-Aug-97
 	  	 480408
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CODERUNNER
 	  	 CN
 	  	 Registered
 	  	 05-Feb-97
 	  	 970012707
 	  	 07-May-98
 	  	 1173527
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CODERUNNER
 	  	 DE
 	  	 Registered
 	  	 03-Apr-96
 	  	 396 16 503.6
 	  	 05-Dec-96
 	  	 396 16 503
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CODERUNNER
 	  	 EU
 	  	 Registered
 	  	 15-Jan-97
 	  	 449819
 	  	 29-Sep-98
 	  	 449819
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CODERUNNER
 	  	 FR
 	  	 Registered
 	  	 03-Apr-96
 	  	 96/619392
 	  	 13-Sep-96
 	  	 96/619392
 
	
	
	
	
	
	
	
	
	
	
	
	
	

 

 
 37 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CODERUNNER
 	  	 IT
 	  	 Registered
 	  	 17-Apr-96
 	  	 FI96C/483
 	  	 14-Jan-99
 	  	 769032
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CODERUNNER
 	  	 JP
 	  	 Registered
 	  	 10-Apr-96
 	  	 08-038970
 	  	 29-Jan-99
 	  	 4235740
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CODERUNNER
 	  	 NO
 	  	 Registered
 	  	 03-Apr-96
 	  	 962325
 	  	 12-Jun-97
 	  	 182639
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CODERUNNER
 	  	 US
 	  	 Registered
 	  	 01-Apr-96
 	  	 75/081289
 	  	 26-Aug-97
 	  	 2,092,202
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 COLOR KINESIS
 	  	 CA
 	  	 Registered
 	  	 13-Jan-97
 	  	 833,451
 	  	 19-Jul-99
 	  	 512,939
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 COLOR KINESIS
 	  	 EU
 	  	 Registered
 	  	 17-Oct-96
 	  	 358044
 	  	 06-Nov-98
 	  	 358044
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 COLOR KINESIS
 	  	 JP
 	  	 Registered
 	  	 22-Oct-96
 	  	 08-119320
 	  	 23-Oct-98
 	  	 4203721
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 COLOR KINESIS
 	  	 US
 	  	 Registered
 	  	 13-Apr-95
 	  	 74/660624
 	  	 14-Jan-97
 	  	 2,031,002
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 DESIGN (BIPHASIC WAVEFORM)
 	  	 US
 	  	 Pending
 	  	 26-Oct-00
 	  	 76/155367
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 ENCONCERT
 	  	 US
 	  	 Registered
 	  	 10-Feb-97
 	  	 75/239029
 	  	 11-May-99
 	  	 2,244,963
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 AU
 	  	 Registered
 	  	 04-Apr-95
 	  	 657496
 	  	 28-Nov-96
 	  	 657496
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 CA
 	  	 Registered
 	  	 20-Mar-95
 	  	 779198
 	  	 25-Mar-97
 	  	 473542
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 CN
 	  	 Registered
 	  	 21-May-97
 	  	 970048521
 	  	 28-Jun-98
 	  	 1186920
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 DE
 	  	 Registered
 	  	 03-Apr-95
 	  	 395 14 510.4
 	  	 08-Mar-96
 	  	 395 14 510
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 ES
 	  	 Registered
 	  	 26-Apr-95
 	  	 1961924
 	  	 05-Jul-96
 	  	 1961924
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 ES
 	  	 Registered
 	  	 12-Mar-96
 	  	 2017712
 	  	 05-Sep-96
 	  	 2017712
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 FR
 	  	 Registered
 	  	 31-Mar-95
 	  	 95/565548
 	  	 08-Sep-95
 	  	 95/565548
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 GB
 	  	 Registered
 	  	 04-Apr-95
 	  	 2016623
 	  	 04-Apr-95
 	  	 2016623
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 ID
 	  	 Registered
 	  	 30-May-97
 	  	 D97-10182
 	  	 30-May-97
 	  	 413014
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 IT
 	  	 Registered
 	  	 14-Apr-95
 	  	 FI95C/374
 	  	 11-Dec-97
 	  	 736034
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 JP
 	  	 Registered
 	  	 06-Apr-95
 	  	 07-034225
 	  	 05-Dec-97
 	  	 4089608
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 KR
 	  	 Registered
 	  	 06-May-97
 	  	 97-20250
 	  	 06-Aug-98
 	  	 414780
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 NO
 	  	 Registered
 	  	 04-Apr-95
 	  	 952172
 	  	 20-Jun-96
 	  	 174468
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 PH
 	  	 Pending
 	  	 27-Jun-97
 	  	 122085
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 TW
 	  	 Registered
 	  	 12-May-97
 	  	 86-023470
 	  	 01-Jun-98
 	  	 804516
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER
 	  	 US
 	  	 Registered
 	  	 16-Mar-95
 	  	 74/647271
 	  	 22-Apr-97
 	  	 2,055,996
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FORERUNNER LOGO
 	  	 US
 	  	 Registered
 	  	 24-Jan-97
 	  	 75/231147
 	  	 13-Jan-98
 	  	 2,128,976
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 FREQUENCY FUSION
 	  	 US
 	  	 Registered
 	  	 03-Jul-97
 	  	 75/319561
 	  	 10-Apr-01
 	  	 2,442,958
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HARMONIC FUSION IMAGING
 	  	 US
 	  	 Pending
 	  	 27-Feb-98
 	  	 75/441828
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 AU
 	  	 Registered
 	  	 20-Dec-94
 	  	 649231
 	  	 20-Dec-94
 	  	 649231
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 BX
 	  	 Registered
 	  	 20-Dec-94
 	  	 839345
 	  	 03-Jul-95
 	  	 560699
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 CA
 	  	 Registered
 	  	 15-Dec-94
 	  	 771093
 	  	 24-Nov-95
 	  	 450864
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 CN
 	  	 Registered
 	  	 05-Feb-97
 	  	 970012694
 	  	 21-May-98
 	  	 1177029
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 CN
 	  	 Registered
 	  	 05-Feb-97
 	  	 970012690
 	  	 07-May-98
 	  	 1173528
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 DE
 	  	 Registered
 	  	 19-Dec-94
 	  	 394 07 552.8
 	  	 05-Dec-95
 	  	 394 07 552
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 ES
 	  	 Registered
 	  	 13-Jan-95
 	  	 1941372
 	  	 05-Sep-95
 	  	 1941372
 
	
	
	
	
	
	
	
	
	
	
	
	
	

 

 
 38 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 FR
 	  	 Registered
 	  	 13-Dec-94
 	  	 94/548916
 	  	 19-May-95
 	  	 94/548916
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 GB
 	  	 Registered
 	  	 14-Dec-94
 	  	 2004922
 	  	 14-Dec-94
 	  	 2004922
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 ID
 	  	 Registered
 	  	 30-May-97
 	  	 D97 10184
 	  	 30-May-97
 	  	 412247
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 ID
 	  	 Registered
 	  	 30-May-97
 	  	 D97 10183
 	  	 30-May-97
 	  	 412324
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 IT
 	  	 Registered
 	  	 30-Dec-94
 	  	 FI94C/1258
 	  	 16-May-97
 	  	 710184
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 JP
 	  	 Registered
 	  	 27-Dec-94
 	  	 06-131169
 	  	 30-May-97
 	  	 4005084
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 KR
 	  	 Registered
 	  	 06-May-97
 	  	 97-20251
 	  	 06-Aug-98
 	  	 414781
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 KR
 	  	 Registered
 	  	 06-May-97
 	  	 97-20252
 	  	 06-Aug-98
 	  	 414782
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 NO
 	  	 Registered
 	  	 23-Dec-94
 	  	 947311
 	  	 29-Feb-96
 	  	 171398
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 PH
 	  	 Pending
 	  	 20-Jun-97
 	  	 121866
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 TW
 	  	 Registered
 	  	 12-May-97
 	  	 86-023469
 	  	 01-Jun-98
 	  	 804515
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 TW
 	  	 Registered
 	  	 12-May-97
 	  	 86-023468
 	  	 15-Oct-98
 	  	 821178
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 US
 	  	 Registered
 	  	 27-May-97
 	  	 75/298883
 	  	 11-Aug-98
 	  	 2,180,345
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM
 	  	 US
 	  	 Registered
 	  	 07-Apr-93
 	  	 74/377124
 	  	 16-May-95
 	  	 1,894,587
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM LOGO
 	  	 AU
 	  	 Registered
 	  	 05-Sep-96
 	  	 716663
 	  	 20-Aug-97
 	  	 716663
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM LOGO
 	  	 CA
 	  	 Registered
 	  	 30-Aug-96
 	  	 822133
 	  	 09-Oct-97
 	  	 483870
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM LOGO
 	  	 EU
 	  	 Registered
 	  	 03-Sep-96
 	  	 369694
 	  	 09-Nov-98
 	  	 369694
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM LOGO
 	  	 JP
 	  	 Registered
 	  	 27-Dec-94
 	  	 06-131170
 	  	 20-Jun-97
 	  	 4016889
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HEARTSTREAM LOGO
 	  	 US
 	  	 Registered
 	  	 29-Jun-93
 	  	 74/408433
 	  	 12-Sep-95
 	  	 1,918,773
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 IMAGEPOINT
 	  	 AU
 	  	 Registered
 	  	 07-Nov-96
 	  	 721,351
 	  	 07-Oct-97
 	  	 721,351
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 IMAGEPOINT
 	  	 BR
 	  	 Registered
 	  	 11-Nov-96
 	  	 819545945
 	  	 20-Apr-99
 	  	 819545945
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 IMAGEPOINT
 	  	 CN
 	  	 Abandoned
 	  	 12-Nov-96
 	  	 960125132
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 IMAGEPOINT
 	  	 EU
 	  	 Registered
 	  	 18-Sep-96
 	  	 334037
 	  	 10-Nov-98
 	  	 334037
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 IMAGEPOINT
 	  	 IN
 	  	 Pending
 	  	 07-Nov-96
 	  	 726415
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 IMAGEPOINT
 	  	 JP
 	  	 Registered
 	  	 04-Oct-96
 	  	 08-112866
 	  	 06-Feb-98
 	  	 4111978
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 IMAGEPOINT
 	  	 KR
 	  	 Registered
 	  	 30-Dec-96
 	  	 96-57809
 	  	 23-Jan-98
 	  	 392858
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 IMAGEPOINT
 	  	 TW
 	  	 Registered
 	  	 15-Nov-96
 	  	 (85)57972
 	  	 16-Nov-97
 	  	 785007
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 IMAGEPOINT
 	  	 US
 	  	 Registered
 	  	 09-Aug-96
 	  	 75/147740
 	  	 24-Feb-98
 	  	 2,139,715
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 INTELLIGENT AQ
 	  	 BR
 	  	 Registered
 	  	 29-Oct-96
 	  	 819532380
 	  	 27-Apr-99
 	  	 819532380
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 INTELLIGENT AQ
 	  	 CA
 	  	 Registered
 	  	 13-Jan-97
 	  	 833,452
 	  	 08-Apr-98
 	  	 492,629
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 INTELLIGENT AQ
 	  	 CN
 	  	 Registered
 	  	 31-Oct-96
 	  	 960120798
 	  	 14-Dec-97
 	  	 1135287
 
	
	
	
	
	
	
	
	
	
	
	
	
	

 

 
 39 

 CONFIDENTIAL TREATMENT REQUESTEED 
  
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 INTELLIGENT AQ
 	  	 EU
 	  	 Registered
 	  	 28-Oct-96
 	  	 411678
 	  	 10-Nov-98
 	  	 411678
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 INTELLIGENT AQ
 	  	 JP
 	  	 Pending
 	  	 08-Nov-96
 	  	 08-126233
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 INTELLIGENT AQ
 	  	 US
 	  	 Registered
 	  	 13-Apr-95
 	  	 74/661120
 	  	 11-Mar-97
 	  	 2,044,673
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OB TRACEVUE
 	  	 JP
 	  	 Registered
 	  	 19-Jul-99
 	  	 11-065120
 	  	 07-Jul-00
 	  	 4398106
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OB TRACEVUE
 	  	 US
 	  	 Registered
 	  	 07-Aug-95
 	  	 74/711669
 	  	 02-Mar-99
 	  	 2,229,234
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 AU
 	  	 Registered
 	  	 02-Jun-92
 	  	 579619
 	  	 10-Dec-93
 	  	 579619
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 AU
 	  	 Registered
 	  	 02-Jun-92
 	  	 579618
 	  	 10-Dec-93
 	  	 579618
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 BX
 	  	 Registered
 	  	 02-Jun-92
 	  	 781008
 	  	 02-Jun-92
 	  	 516364
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 CA
 	  	 Registered
 	  	 09-Jun-92
 	  	 706,597
 	  	 30-Sep-94
 	  	 433903
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 DE
 	  	 Registered
 	  	 17-Jun-92
 	  	 H67 753/10Wz
 	  	 21-Feb-94
 	  	 2 057 292
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 ES
 	  	 Registered
 	  	 16-Jun-92
 	  	 1707894
 	  	 05-Apr-93
 	  	 1707894
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 ES
 	  	 Registered
 	  	 16-Jun-92
 	  	 1707893
 	  	 05-Apr-93
 	  	 1707893
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 FR
 	  	 Registered
 	  	 03-Jun-92
 	  	 92421383
 	  	 03-Jun-92
 	  	 92421383
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 GB
 	  	 Registered
 	  	 01-Jun-92
 	  	 1503647
 	  	 02-Jul-93
 	  	 1503647
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 GB
 	  	 Registered
 	  	 01-Jun-92
 	  	 1503646
 	  	 02-Jul-93
 	  	 1503646
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 IT
 	  	 Registered
 	  	 16-Jun-92
 	  	 RM92C002469
 	  	 21-Dec-94
 	  	 638934
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 JP
 	  	 Registered
 	  	 09-Jul-92
 	  	 04-137719
 	  	 31-Jul-95
 	  	 3057419
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 TW
 	  	 Registered
 	  	 24-Jun-92
 	  	 (81)031032
 	  	 01-Apr-93
 	  	 592400
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 TW
 	  	 Registered
 	  	 24-Jun-92
 	  	 (81)031033
 	  	 01-Dec-92
 	  	 577656
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OMNIPLANE
 	  	 US
 	  	 Registered
 	  	 07-Mar-91
 	  	 74/145620
 	  	 15-Aug-95
 	  	 1,912,045
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OPTI-GO
 	  	 EU
 	  	 Published
 	  	 03-Jul-00
 	  	 1734821
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 OPTI-GO
 	  	 US
 	  	 Pending
 	  	 27-Apr-00
 	  	 78/005903
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PAGEWRITER
 	  	 US
 	  	 Registered
 	  	 05-Mar-87
 	  	 73/648237
 	  	 22-Nov-88
 	  	 1,513,367
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE
 	  	 AT
 	  	 Registered
 	  	 13-Jan-95
 	  	 AM 148/95
 	  	 07-Mar-95
 	  	 157 040
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE
 	  	 BX
 	  	 Registered
 	  	 10-Jan-95
 	  	 840 314
 	  	 10-Jan-95
 	  	 564279
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE
 	  	 CH
 	  	 Registered
 	  	 16-Jan-95
 	  	 264/1995.0
 	  	 24-Jul-96
 	  	 425 573
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE
 	  	 DE
 	  	 Registered
 	  	 12-Jan-95
 	  	 395012732
 	  	 06-Sep-95
 	  	 395 01 273
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE
 	  	 ES
 	  	 Registered
 	  	 11-Jan-95
 	  	 1940639
 	  	 05-Sep-95
 	  	 1940639
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE
 	  	 FR
 	  	 Registered
 	  	 10-Jan-95
 	  	 95552828
 	  	 10-Jan-95
 	  	 95552828
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE
 	  	 GB
 	  	 Registered
 	  	 10-Jan-95
 	  	 2007195
 	  	 10-Jan-95
 	  	 2007195
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE
 	  	 IT
 	  	 Registered
 	  	 13-Jan-95
 	  	 RM95C000153
 	  	 13-Jun-97
 	  	 712300
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE
 	  	 JP
 	  	 Registered
 	  	 20-Sep-95
 	  	 07-96816
 	  	 21-Nov-97
 	  	 4084787
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE
 	  	 SE
 	  	 Registered
 	  	 09-Jan-95
 	  	 95-00192
 	  	 01-Dec-95
 	  	 306427
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE
 	  	 US
 	  	 Registered
 	  	 21-Nov-94
 	  	 74/601108
 	  	 02-Jul-96
 	  	 1,984,710
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PALMVUE DESIGN
 	  	 US
 	  	 Registered
 	  	 12-Feb-96
 	  	 75/056193
 	  	 22-Apr-97
 	  	 2,054,555
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PERMAPAPER
 	  	 ES
 	  	 Registered
 	  	 29-Jul-71
 	  	 651166
 	  	 15-Nov-76
 	  	 651166
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PERMAPAPER
 	  	 ES
 	  	 Registered
 	  	 18-May-71
 	  	 645372
 	  	 19-Nov-74
 	  	 0645372
 
	
	
	
	
	
	
	
	
	
	
	
	
	

 

 
 40 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PERMAPAPER
 	  	 FR
 	  	 Registered
 	  	 09-Aug-88
 	  	 1578885
 	  	 27-Jul-98
 	  	 1578885
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 PERMAPAPER
 	  	 US
 	  	 Registered
 	  	 06-Dec-46
 	  	 513847
 	  	 11-May-48
 	  	 438747
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 POWERSTATION
 	  	 EU
 	  	 Registered
 	  	 19-Jan-00
 	  	 1466523
 	  	 14-Mar-01
 	  	 1466523
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 POWERSTATION
 	  	 US
 	  	 Registered
 	  	 24-Jan-00
 	  	 75/902166
 	  	 03-Apr-01
 	  	 2,440,645
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 RAPAPORT
 	  	 JP
 	  	 Registered
 	  	 18-May-72
 	  	 47-067560
 	  	 17-Jul-75
 	  	 1133076
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SMART BIPHASIC
 	  	 AU
 	  	 Pending
 	  	 24-Apr-01
 	  	 873511
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SMART BIPHASIC
 	  	 CN
 	  	 Pending
 	  	 24-Apr-01
 	  	 2001066385
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SMART BIPHASIC
 	  	 EU
 	  	 Pending
 	  	 24-Apr-01
 	  	 2189678
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SMART BIPHASIC
 	  	 HK
 	  	 Pending
 	  	 24-Apr-01
 	  	 2001 06514
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SMART BIPHASIC
 	  	 JP
 	  	 Pending
 	  	 25-Apr-01
 	  	 2001-38486
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SMART BIPHASIC
 	  	 NZ
 	  	 Pending
 	  	 24-Apr-01
 	  	 636611
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SMART BIPHASIC
 	  	 SG
 	  	 Pending
 	  	 24-Apr-01
 	  	 T01/05652G
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SMART BIPHASIC
 	  	 US
 	  	 Pending
 	  	 26-Oct-00
 	  	 76/155098
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SONOS
 	  	 CN
 	  	 Registered
 	  	 08-Sep-94
 	  	 94090569
 	  	 21-Aug-96
 	  	 864416
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SONOS
 	  	 DE
 	  	 Registered
 	  	 21-Jul-94
 	  	 H 72867/10Wz
 	  	 06-Jun-95
 	  	 2 907 433
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SONOS
 	  	 EU
 	  	 Registered
 	  	 13-May-98
 	  	 822999
 	  	 10-Dec-99
 	  	 822999
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SONOS
 	  	 IT
 	  	 Registered
 	  	 17-Aug-94
 	  	 RM94C003666
 	  	 14-Nov-96
 	  	 691569
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SONOS
 	  	 JP
 	  	 Registered
 	  	 02-Aug-94
 	  	 06-78354
 	  	 24-Feb-97
 	  	 3261045
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SONOS
 	  	 US
 	  	 Registered
 	  	 26-Feb-91
 	  	 74/142853
 	  	 31-Mar-92
 	  	 1,681,085
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 SPEEDPOINT
 	  	 US
 	  	 Registered
 	  	 10-Feb-97
 	  	 75/239598
 	  	 25-Jul-00
 	  	 2,371,411
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 STRESSWRITER
 	  	 CA
 	  	 Registered
 	  	 18-Jan-96
 	  	 802,129
 	  	 22-Jul-97
 	  	 478,839
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 STRESSWRITER
 	  	 GB
 	  	 Registered
 	  	 18-Jan-96
 	  	 2052327
 	  	 18-Jan-96
 	  	 2052327
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 STRESSWRITER
 	  	 US
 	  	 Registered
 	  	 19-Jan-96
 	  	 75/045901
 	  	 21-Oct-97
 	  	 2,106,332
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 STUDYMANAGER
 	  	 US
 	  	 Abandoned
 	  	 26-Feb-99
 	  	 75/649248
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 ULTRABAND
 	  	 US
 	  	 Registered
 	  	 30-Jun-97
 	  	 75/317188
 	  	 01-Jun-99
 	  	 2,250,315
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 VIRIDIA
 	  	 US
 	  	 Registered
 	  	 19-Feb-97
 	  	 75/243747
 	  	 02-Mar-99
 	  	 2,229,493
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 Agilent HSG Subsidiaries
 	  	  	  	  	  	  	  	  	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 Anesthesia Recording, Inc.
 	  	  	  	  	  	  	  	  	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 COMPURECORD
 	  	 DE
 	  	 Registered
 	  	 06-Nov-92
 	  	 P43735/9WZ
 	  	 04-Mar-94
 	  	 2058917
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 COMPURECORD
 	  	 FR
 	  	 Registered
 	  	 05-Nov-92
 	  	 92440661
 	  	 05-Nov-92
 	  	 92440661
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 COMPURECORD
 	  	 IT
 	  	 Registered
 	  	 27-Nov-92
 	  	 RM92C/004321
 	  	 07-Mar-95
 	  	 644874
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 COMPURECORD
 	  	 US
 	  	 Cancelled
 	  	 27-Jul-92
 	  	 74/298397
 	  	 19-Oct-93
 	  	 1,799,235
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 COMPURECORD
 	  	 US
 	  	 Pending
 	  	 31-Oct-00
 	  	 76/158644
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 EZRECORD
 	  	 US
 	  	 Registered
 	  	 22-May-95
 	  	 74/678801
 	  	 04-Mar-97
 	  	 2,042,386
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 Zymed, Inc.
 	  	  	  	  	  	  	  	  	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 CHF.COM
 	  	 US
 	  	 Abandoned
 	  	 01-Jul-99
 	  	 75/756660
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

	 EASI
 	  	 US
 	  	 Registered
 	  	 05-Feb-96
 	  	 75/052279
 	  	 18-Mar-97
 	  	 2,045,746
 
	
	
	
	
	
	
	
	
	
	
	
	
	

	 HOLTER 2000
 	  	 US
 	  	 Abandoned
 	  	 13-Jan-99
 	  	 75/620199
 	  	  	  	  
	
	
	
	
	
	
	
	
	
	
	
	
	

 

 
 41 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 EXHIBIT F 
  
 OTHER PRICING 
  
 
	 	
	
	
	
	
	
	 	 
	  	 	  	  	 OEM Board with
 CDIC
Pre-Sales
 Support
 	  	 OEM Board without
 CDIC Pre-Sales
 support
 	    	  
	 	
	
	
	
	
	
	 	 
	  	 	 Pre-Sales
 Support Fee
 	  	 [CONFIDENTIAL
 TREATMENT
 REQUESTED]
 	  	 [CONFIDENTIAL
 TREATMENT
 REQUESTED]
 	    	  
	 	
	
	
	
	
	
	 	 
	  	 	 ICG Hardware
 	  	 [CONFIDENTIAL
 TREATMENT
 REQUESTED]
 	  	 [CONFIDENTIAL
 TREATMENT
 REQUESTED]
 	    	  
	 	
	
	
	
	
	
	 	 
	  	 	 ICG Cable
 	  	 [CONFIDENTIAL
 TREATMENT
 REQUESTED]
 	  	 [CONFIDENTIAL
 TREATMENT
 REQUESTED]
 	    	  
	 	
	
	
	
	
	
	 	 

 

 
 42 

 CONFIDENTIAL TREATMENT REQUESTED 
  
 EXHIBIT G 
  
 SALES CHANNEL PLAN 
  
 CDY Direct Hospital Market 
  
 From July ‘02 through termination of the Agreement 
  
 Philips shall act as a finder for
CDIC providing lead generation, hospital relationships and coaching to the CDIC reps for the sale of stand-alone CDIC ICG products into CDY Direct Hospitals. The CDIC rep shall do the product selling for stand-alone CDIC ICG products. CDIC shall pay
a finder’s fee of [CONFIDENTIAL TREATMENT REQUESTED] to Philips on successfully closed business into CDY Direct Hospitals. 
  
 From the date the ICG/ECG Device is available for sale through the termination of the Agreement 
  
 Philips shall sell the ICG/ECG Device exclusively into identified CDY Direct Hospitals (1000-1500 Hospitals actively covered Philips/CDY SR’s). The identified CDY Direct Hospital may be expanded by Philips as additional Philips
CDY reps are hired. CDIC reps shall act as product specialists supporting the Philips CDY reps in CDY Direct Hospitals. This shall build knowledge of the Philips CDY reps concerning the CDIC products. CDIC reps shall also support sales of the
ICG/ECG Device through the Philips MR organization. CDIC reps shall be compensated by CDIC for their support services. 
  
 In order for Philips to maintain its exclusivity rights, it must achieve the following minimum sales of ICG/ECG Devices: 
  
 During the [CONFIDENTIAL TREATMENT REQUESTED] following the first Customer shipment of the ICG/ECG Device [CONFIDENTIAL TREATMENT REQUESTED] 
  
 During the [CONFIDENTIAL TREATMENT REQUESTED] following the first Customer shipment of the ICG/ECG Device
[CONFIDENTIAL TREATMENT REQUESTED] 
  
 During the [CONFIDENTIAL TREATMENT REQUESTED]
following the first Customer shipment of the ICG/ECG Device [CONFIDENTIAL TREATMENT REQUESTED] 
  
 If
Philips fails to achieve the above sales, then CDIC shall have the right to sell the ICG/ECG Device into CDY Direct Hospitals. 
  
 At any time during the term of this Agreement, Philips shall have the right to relinquish its exclusivity in the CDY Direct Hospital market and become non-exclusive, upon 30 days’ notice to CDIC. Should Philips lose its
exclusive rights in the CDY Direct Hospital market, it shall have non-exclusive rights to such market. 

 
 43 

  
 CONFIDENTIAL TREATMENT REQUESTED 
  
 All Other Markets 
  
 From July ‘02 through termination of the Agreement 
  
 Philips shall act as a finder for
CDIC providing lead generation, hospital relationships and coaching to the CDIC reps for the sale of stand-alone CDIC ICG products into all markets other than CDY Direct Hospitals. The CDIC rep shall do the product selling for stand-alone CDIC ICG
products. CDIC shall pay a finder’s fee of [CONFIDENTIAL TREATMENT REQUESTED] to Philips on successfully closed business of stand-alone CDIC ICG products into all markets other than CDY Direct Hospitals. 
  
 From the date the ICG/ECG Device is available for sale through the termination of the Agreement 
  
 Both CDIC and Philips will sell the ICG/ECG Device in all markets other than the CDY Direct Hospital market on a non-exclusive basis.

  
 International Markets 
  
 From the date the ICG/ECG Device is available for sale through the termination of the Agreement 
  
 Unless agreed otherwise upon, both Philips and CDIC will sell the ICG/EGG Device in all non-U.S. markets on a non-exclusive basis. 

 
 44OEM Purchase Agreement

	CONFIDENTIAL TREATMENT REQUESTED 
 	EXHIBIT 10.2 
 

 
 CONFIDENTIAL
TREATMENT REQUESTED: INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND IS NOTED WITH “[CONFIDENTIAL TREATMENT REQUESTED].” AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN FILED SEPARATELY WITH THE SECURITIES
EXCHANGE COMMISSION. 
  
 OEM PURCHASE AGREEMENT 
  
 This OEM Purchase Agreement (“Agreement”) is made and entered into this 29th day of August, 2002 (the “Effective Date”), by and between CardioDynamics
International Corporation, a California corporation (“CDIC”), and Vasomedical Inc., a Delaware corporation (“Vasomedical”). 
  
 WHEREAS, CDIC has a proprietary technology allowing CDIC to produce certain electronic boards (“Boards”) containing the necessary components and programming to provide measurement of
impedance cardiography (“ICG”), which module is more specifically described in Exhibit A attached hereto (singularly a “Module” and collectively the “Modules”); 
  
 WHEREAS, Vasomedical desires to purchase Modules from CDIC, and CDIC desires to sell the same to Vasomedical each in accordance with the
provisions contained herein, so that Vasomedical can incorporate the Modules into enhanced external counterpulsation (EECP) devices to be manufactured by Vasomedical (“Equipment”), which Equipment would then be sold by Vasomedical to third
parties. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows: 
  
 1.    Purpose. 
  
 CDIC shall sell Modules to Vasomedical, which Modules will be incorporated into the Equipment to be manufactured and sold by Vasomedical.
For the purpose of this Agreement, the Equipment in which the Modules shall be incorporated shall be limited to the EECP Therapy System and used solely for that purpose unless Vasomedical obtains the prior written consent of CDIC. 

 
 2.    Module Development Project. 
  
 2.1  Project.    The overall duration of the project to develop the Module (the “Project”) [CONFIDENTIAL TREATMENT REQUESTED]. 

 
 2.2  Project Manager.    Each party shall appoint a “Project Manager” who shall
oversee and manage the Project. The Project Managers shall meet regularly based on the Project needs to assess the Project status and discuss and resolve any issues or problems. These meetings may be held face-to-face or as telephone or video
teleconferences. 
  
 2.3  Specifications.    CDIC shall design, develop, and
test the Modules according to the Module specifications attached hereto as Exhibit A. 
  
 2.4  Acceptance.    Vasomedical shall have [CONFIDENTIAL TREATMENT REQUESTED] after the delivery date of the first shipment of Modules to inspect, test and determine if the Modules conform
to the specifications described on Exhibit A. Any inconsistencies shall be immediately reported in writing to the authorized representative of CDIC. CDIC shall receive written acceptance of the Module design prior to continuing shipment of
Modules. 

 
 1 

 
 CONFIDENTIAL TREATMENT REQUESTED 
 
  
 3.    Purchase and Sale Obligations; Licenses. 
  
 3.1  Price.    Subject to the terms and conditions of this Agreement, CDIC agrees to sell Modules to Vasomedical for [CONFIDENTIAL TREATMENT REQUESTED] (the “Price”) per Module.
The Price covers [CONFIDENTIAL TREATMENT REQUESTED]. 
  
 3.2  Manufacture of ICG Board by
Vasomedical.    Vasomedical has the option of manufacturing the ICG Boards and purchasing the cable electrode system (excluding the ICG sensors, which shall be governed by Section 4.8) from a CDIC-approved vendor, provided
CDIC has approved the cable design. If Vasomedical elects to do so, it will provide CDIC at least [CONFIDENTIAL TREATMENT REQUESTED] prior notice and shall purchase any remaining Modules and unique component inventory from CDIC
[CONFIDENTIAL TREATMENT REQUESTED]. If Vasomedical elects to manufacture ICG Boards, CDIC [CONFIDENTIAL TREATMENT REQUESTED] by Vasomedical. With each [CONFIDENTIAL TREATMENT REQUESTED] payment to CDIC, Vasomedical shall provide
to CDIC a reconciliation of the number of ICG Boards manufactured, a list of customers to which such sales were made (including pertinent customer information such as serial number, address and phone number) and the number of ICG Boards sold
[CONFIDENTIAL TREATMENT REQUESTED]. CDIC shall have the right to review Vasomedical’s records during reasonable business hours and upon reasonable notice for the sole purpose of verifying the license fees payable as provided for in this
Section 3.2. The costs of any such review shall be borne by CDIC, unless as a result of the review it is determined that Vasomedical failed to remit to CDIC five percent (5%) or more of the license fees that were payable to CDIC for the review
period, in which case al such costs shall be borne by Vasomedical. Any such costs, together with any shortfall in the license fees, shall be paid to CDIC within thirty (30) days and shall include with such payment a late fee in the amount set forth
in Section 4.5. 
  
 3.3  [CONFIDENTIAL TREATMENT REQUESTED].    The Price for
Modules [CONFIDENTIAL TREATMENT REQUESTED] incurred by CDIC for custom work or modifications to the Modules as specified in Exhibit A, [CONFIDENTIAL TREATMENT REQUESTED]. Attached as Exhibit B are the [CONFIDENTIAL
TREATMENT REQUESTED].[CONFIDENTIAL TREATMENT REQUESTED] of the [CONFIDENTIAL TREATMENT REQUESTED] are due and payable [CONFIDENTIAL TREATMENT REQUESTED]of the [CONFIDENTIAL TREATMENT REQUESTED] are due and payable
[CONFIDENTIAL TREATMENT REQUESTED], and the [CONFIDENTIAL TREATMENT REQUESTED] of the [CONFIDENTIAL TREATMENT REQUESTED] is due and payable [CONFIDENTIAL TREATMENT REQUESTED]. If following the execution of this Agreement,
the parties agree to modify the Specifications, the parties shall also agree upon [CONFIDENTIAL TREATMENT REQUESTED] written acceptance pursuant to Section 2.4. 
  
 3.4  Distribution.    Vasomedical may sell Equipment containing Modules through its distributors and manufacturers’
representatives, provided such distributor or manufacturer representative (i) has been advised by Vasomedical of the specific terms and conditions of this Agreement which are applicable to the distribution of Equipment and Vasomedical indemnifies
CDIC for any breach of the terms and conditions of this Agreement by any such distributors or manufacturers’ representatives. Vasomedical agrees to use commercially reasonable efforts to sell, market and promote the Equipment. The Modules
purchased from CDIC under this Agreement shall be used only as components in, incorporated into, or integrated with, Equipment which Vasomedical sells to third party users in the regular course of business, and are not to be used or sold as a stand
alone instrument. 

 
 2 

 
 CONFIDENTIAL TREATMENT REQUESTED 
 
  
 3.5  Nonexclusive Relationship.    Nothing in this Agreement shall prohibit or in any way restrict CDIC’s rights to sell, lease,
license, collaborate with respect to, or otherwise transfer any technology, or any other CDIC products to any other person or entity including without limitation, any direct competitor of Vasomedical, provided, however, [CONFIDENTIAL TREATMENT
REQUESTED], CDIC shall not [CONFIDENTIAL TREATMENT REQUESTED]. Nothing in this Agreement shall prohibit or in any way restrict Vasomedical’s right to sell, lease, license, collaborate with respect to, or otherwise transfer the
Vasomedical products to any other Person or entity including, without limitation, any direct competitor of CDIC. 
  
 3.6  Non-Exclusive License Grant by CDIC.    CDIC hereby grants to Vasomedical a non-exclusive, perpetual (subject to termination as provided in this Agreement), non-transferable, worldwide
license, with the right to sub-license only to purchasers/end-users of the Equipment, to use, install, test, adapt, and transfer and otherwise distribute the core software used for processing waveform data and calculating hemodynamic parameters (the
“DSP Code”) in the Modules in connection with the manufacture, assembly, test, lease, sale, license, transfer or other distribution by or for Vasomedical of the Equipment under this Agreement. In the event Vasomedical elects to manufacture
the ICG Board itself, the license to the DSP Code shall be to use, install, test, adapt, and transfer and otherwise distribute the DSP Code in the ICG Boards connection with the manufacture, assembly, test, lease, sale, license, transfer or other
distribution by or for Vasomedical of the Equipment under this Agreement. Except for this express license by CDIC, Vasomedical shall not disclose, furnish, transfer, distribute or otherwise make available the DSP Code, or any portion thereof, in any
form to any third party and shall not duplicate DSP Code or any part of any of same. Title to and ownership of any and all proprietary rights in or to the DSP Code shall at all times remain with CDIC or its licensor(s). Nothing in this Agreement
shall be construed as a sale or any other transfer of any title in the DSP Code. All references in this Agreement to sale, resale or purchase of Modules, or the respective components thereof, or references of like effect, shall, with respect to the
DSP Code, mean licenses or sublicenses of the DSP Code pursuant to this Section 3.6. Vasomedical shall not disassemble, decompile or otherwise reverse-engineer the DSP Code or any part of any of same. Vasomedical shall retain and shall not
alter or obscure any notices, markings or other insignia affixed to the DSP Code or any part of any of same, as such notices, markings and/or insignia may be affixed as of the time Vasomedical receives same. 
  
 3.7  Standard of Care; Priority.    In connection with the parties’ performance of their
obligations hereunder, each party shall use commercially reasonable efforts in the performance of its obligations hereunder and will do so with the same degree of priority, care, skill, and prudence customarily exercised when engaged in similar
activities for itself. 
  
 4.    Purchase Orders; Delivery and Payment. 
  
 4.1  Purchase Orders.    Purchase orders (“Orders”) shall include a purchase order number,
“bill to” address, “ship to” address, quantity, unit and extended price, and part number(s). Vasomedical shall purchase a minimum quantity of [CONFIDENTIAL TREATMENT REQUESTED]. Scheduled shipments may have no less than
five (5) Modules per shipment and must
 

 
 3 

 
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specify a delivery date which is not earlier than contemplated in the lead-time schedule outlined below. 
  
 4.2  Order Acknowledgement.    Orders shall be acknowledged by CDIC within five (5) days after receipt of the Order, provided that the Order is correct and complies
with Section 4.1 hereof and that the requested delivery time is within the agreed upon lead time. If the requested delivery time is less than the agreed upon lead-time as set forth in Section 4.4, CDIC on notice to Vasomedical may
elect to complete the requirements of such nonconforming Order within the agreed lead-time. In the event of such election, CDIC shall deliver the Modules requested in the acknowledged Orders within the agreed upon lead-time. 
  
 4.3  Forecasts.    Vasomedical will provide to CDIC a non-binding initial forecast three (3) months
prior to the expected commercial availability of the Module for purposes of CDIC ordering of initial component volumes. Vasomedical shall furnish to CDIC non-binding quarterly forecasts during the term of this Agreement with the number of Modules
for which Vasomedical expects to submit Orders for the following twelve (12) months. 
  
 4.4   Lead
Times.    The agreed upon lead time for delivery of Modules is ninety (90) days from the date of receipt by CDIC of an Order. The lead time described in this Section 4.4 shall only apply with respect to up to 125% of
the Modules specified in the forecasts furnished pursuant to Section 4.3 hereof. If the quantity of Modules requested is in excess of 125% of the quantity listed in the forecasts furnished pursuant to Section 4.3 hereof, CDIC agrees to
use commercially reasonable efforts to ship the excess quantities within ninety (90) days of the date of receipt of such Order. 
  
 4.5  Payment Due Date.    Payment for the Modules shall be due [CONFIDENTIAL TREATMENT REQUESTED] from invoice date for the amount of Modules shipped. Payments shall include the
corresponding invoice number and purchase Order number. Payment for the ICG Boards shall be due [CONFIDENTIAL TREATMENT REQUESTED] from the date of manufacture. Subject to applicable law, late fees not exceeding the lesser of one and one-half
percent (1 1/2%) per month or the highest amount permitted by law may be assessed by CDIC on amounts past due
more than thirty (30) days. 
  
 4.6  Taxes.    Prices for the Modules are
exclusive of any federal, state or local excise, sales, use or other applicable taxes, and are F.O.B. CDIC’s factory, and any such costs and taxes shall be paid by Vasomedical. 
  
 4.7  Price Changes.    CDIC may, upon sixty (60) days prior written notice to Vasomedical, increase the Module Prices [CONFIDENTIAL
TREATMENT REQUESTED] used in the manufacture of the Modules, [CONFIDENTIAL TREATMENT REQUESTED] of the Modules [CONFIDENTIAL TREATMENT REQUESTED][CONFIDENTIAL TREATMENT REQUESTED]. Written [CONFIDENTIAL TREATMENT
REQUESTED] shall be submitted by CDIC to Vasomedical. However, in no event shall [CONFIDENTIAL TREATMENT REQUESTED] without Vasomedical’s written consent. In the event the parties cannot [CONFIDENTIAL TREATMENT REQUESTED]
resulting from such [CONFIDENTIAL TREATMENT REQUESTED], then either party may [CONFIDENTIAL TREATMENT REQUESTED]; provided, however that CDIC shall complete delivery of all remaining Modules which are the subject of outstanding Orders.
In no event should the [CONFIDENTIAL TREATMENT REQUESTED] apply to any orders accepted by CDIC [CONFIDENTIAL TREATMENT REQUESTED]. 
  

 
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 4.8  Sensor Commissions.    CDIC will sell ICG sensors directly to Vasomedical’s customers. CDIC will pay Vasomedical a commission
of [CONFIDENTIAL TREATMENT REQUESTED] of the [CONFIDENTIAL TREATMENT REQUESTED] to Vasomedical. “[CONFIDENTIAL TREATMENT REQUESTED]” shall mean the [CONFIDENTIAL TREATMENT REQUESTED]. CDIC will pay such
commissions to Vasomedical on a [CONFIDENTIAL TREATMENT REQUESTED] basis. With each [CONFIDENTIAL TREATMENT REQUESTED] payment to Vasomedical, CDIC shall provide to Vasomedical a reconciliation of the number of sensors sold, a list of
customers to which such sales were made (including pertinent customer information such as address and phone number) and the number of sensors sold [CONFIDENTIAL TREATMENT REQUESTED]. Vasomedical shall have the right to review CDIC’s
records during reasonable business hours and upon reasonable notice for the sole purpose of verifying the license fees payable as provided for in this Section 4.8. The costs of any such review shall be borne by Vasomedical, unless as a result of the
review it is determined that CDIC failed to remit to Vasomedical [CONFIDENTIAL TREATMENT REQUESTED] or more of the commissions that were payable to Vasomedical for the review period, in which case all such costs shall be borne by CDIC. Any
such costs, together with any shortfall in commissions, shall be paid to Vasomedical within thirty (30) days and shall include with such payment a late fee in the amount set forth in Section 4.5. Alternatively, Vasomedical may elect to purchase ICG
sensors from CDIC at [CONFIDENTIAL TREATMENT REQUESTED], in which case Vasomedical shall be responsible for all costs of sales and distribution and Vasomedical shall not be entitled to any commission. Vasomedical shall not purchase ICG
sensors from any party other than CDIC. 
  
 4.9  Contact Persons.    Exhibit
C attached hereto sets forth the contact information for each of the parties. 
  
 5.    Training.

  
 CDIC will provide up to two sales training days per year at Vasomedical’s place of business to allow
Vasomedical representatives to become familiar with Module application and capability. CDIC shall be responsible for travel expenses associated with such training. 
  
 6.    Regulatory Matters. 
  
 CDIC makes
no representation that the Module(s) is 510(k) cleared for marketing or distribution in the U.S. by the FDA. Vasomedical shall obtain and maintain all applicable U.S. governmental authorizations and regulatory approvals required to market and
distribute the Equipment in the U.S. However, CDIC agrees to provide Vasomedical with any relevant documentation and data CDIC has that will assist Vasomedical in its application for 510(k) clearance. The parties shall work together to develop a
regulatory plan which defines and identifies with specificity the applicable regulatory and localization requirements for all countries other than the U.S. in which the Equipment is intended to be sold. Vasomedical shall be responsible for obtaining
and maintaining all applicable international governmental authorizations and regulatory approvals required to distribute the Equipment in all countries other than this U.S. Vasomedical shall submit to CDIC evidence of Vasomedical’s receipt of
all applicable U.S. and international governmental authorizations and regulatory approvals required with respect to the marketing and distribution of the Equipment prior to any such marketing or distribution of the Equipment in the applicable
market. 

 
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 7.    Warranty. 
  
 7.1  CDIC
Warranty.    CDIC warrants solely to Vasomedical, for a period [CONFIDENTIAL TREATMENT REQUESTED] from the date of delivery of each Module to Vasomedical, that such Module, when given normal, proper and intended usage,
shall be free from material defects in materials and workmanship and shall perform in accordance with the specifications set forth in Exhibit A. The above warranty does not extend to any Module or ICG Board that is not manufactured by
CDIC or is modified or altered or is not maintained to CDIC’s maintenance recommendations, or is operated, handled or stored in a manner other than that specified by CDIC, has its serial number removed or altered or is treated with abuse,
negligence or other improper treatment (including, without limitation, use outside the recommended environment). CDIC agrees, during the applicable warranty period, to repair or replace (at CDIC’s option) all defective Modules within thirty
(30) days after the date of return to CDIC and without cost (including shipping) to Vasomedical. This warranty shall not apply to expendable components and supply items, such as, but not limited to, cables or disposable items such as an ICG sensor
after the expiration date marked on the ICG sensor packaging); nor shall CDIC have any obligation under this Agreement to make repairs or replacements, or which result, in whole or in part, from catastrophe, fault or negligence of Vasomedical, or
anyone claiming through or on behalf of Vasomedical, or from improper or unauthorized use or tampering of the Module, or use of the Module in a manner for which it was not designed, or by causes external to the Module such as, but not limited to,
power or air conditioning failure. 
  
 7.2  Sale Remedy.    Notwithstanding
anything herein contained to the contrary, and as between Vasomedical and CDIC, this warranty of repair and replacement shall be the sole and exclusive remedy available to Vasomedical for any Modules delivered hereunder which are found to be
defective whether such remedies be in contract, tort or at law. 
  
 7.3  DISCLAIMER OF
WARRANTIES.    THE EXPRESS WARRANTIES SET FORTH HEREIN ARE EXCLUSIVE AND NO OTHER WARRANTIES OF ANY KIND, WHETHER STATUTORY, WRITTEN, ORAL OR IMPLIED SHALL APPLY. EXCEPT AS OTHERWISE SET FORTH HEREIN, CDIC DISCLAIMS ANY
WARRANTIES OF MERCHANT-ABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 
  
 7.4  Return
Authorization.    Vasomedical shall, prior to the return of any Module for any cause, notify CDIC of the intended return and mark such Modules (or containers of Modules) so returned with a material return authorization (RMA)
number provided by CDIC. 
  
 7.5  Changes to Modules.    CDIC shall not modify
the form, fit, function, or software of the Modules from the specifications set forth in Exhibit A without prior written notice to Vasomedical at least [CONFIDENTIAL TREATMENT REQUESTED] prior to shipment of the modified Modules.
Vasomedical shall, in its sole discretion, accept or reject such modifications and shall notify CDIC of its intent in writing within thirty (30) days of receipt of CDIC’s notice of intent to modify the Modules. 

 
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 8.    Patent Indemnity. 
  
 8.1  CDIC Indemnity.    CDIC agrees to indemnify and hold harmless Vasomedical (and any of Vasomedical’s directors, officers, employees, shareholders and partners) from any and all liability
for costs and damages awarded against Vasomedical in any civil action for infringement of any patent which allegedly covers any Modules to the extent they are determined by a court of competent jurisdiction, provided that Vasomedical has given CDIC
notice of any suit for infringement brought against Vasomedical within fifteen (15) days of the date of service of the complaint upon Vasomedical and has permitted CDIC to control the defense of such suit. In the event the use or sale of the Modules
is enjoined, CDIC may, at its own expense and with the approval of Vasomedical (which approval shall not be unreasonably withheld), either: (a) procure for Vasomedical and its assigns and customers the right to continue to use the Modules; (b)
modify the Modules so that they become non-infringing; or (c) accept return of the Modules and refund the purchase price and the shipping costs, if any, thereof. The foregoing shall constitute the sole liability of CDIC to Vasomedical for any patent
infringement. CDIC shall not have any obligation if the infringement claim is based upon (i) the modification of any Module not made by or on behalf of CDIC, (ii) the use of any Module in combination with any program or equipment not furnished or
recommended in writing by CDIC or (iii) the use of any Module in a manner or for any purpose for which CDIC did not design or license such Module. 
  
 8.2  Vasomedical Indemnity.    Except for the patent indemnity concerning the Modules given by CDIC to Vasomedical pursuant to the immediately preceding paragraph,
Vasomedical agrees to indemnify and hold harmless CDIC (and any of CDIC’s directors, officers, employees, shareholders and partners) from any and all liability for costs and damages awarded against CDIC in any civil action for infringement of
any patent which allegedly covers any Equipment to the extent they are determined by a court of competent jurisdiction, provided that CDIC has given Vasomedical notice of any suit for infringement brought against CDIC within ten (10) days of the
date of service of the complaint upon CDIC and has permitted Vasomedical to control the defense of such suit. The foregoing shall constitute the sole liability of Vasomedical to CDIC for any patent infringement. 
  
 8.3  Cooperation.    The parties agree to cooperate with each other to defend such patent claims,
demands, suits or proceedings and the indemnitor agrees to promptly pay all damages and costs incurred by or assessed against the indemnified parties hereunder in connection with any and all such claims, demands, suits and proceedings. 

 
 9.    Trademarks. 
  
 9.1  Ownership.    Vasomedical acknowledges and agrees that CDIC is the sole and exclusive owner of all right, title and interest in, or has valid licenses to the
trademarks of CDIC and associated goodwill identified in Exhibit D (the “CDIC Trademarks”). CDIC acknowledges and agrees that Vasomedical is the sole and exclusive owner of all right, title and interest in and to the
trademarks of Vasomedical and associated goodwill identified on Exhibit D (the “Vasomedical Trademarks” and, together with the CDIC Trademarks, the “Trademarks”). Each party recognizes the value of the other party’s
Trademarks and the good will associated with the other party’s Trademarks. Each party agrees that its use of the other party’s Trademarks (under license by the other party and subject to quality control requirements of the other party) and
any good will arising therefrom shall inure to the benefit of the party owning such Trademark. Nothing contained herein shall create, nor shall be construed as an assignment of, any right, title 

 
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 CONFIDENTIAL TREATMENT REQUESTED 
 
 or interest in or to the CDIC Trademarks to Vasomedical, or the Vasomedical Trademarks to CDIC, other than the grant of the licenses below; it being acknowledged and agreed that all other right, title and interest in and to the CDIC
Trademarks is expressly reserved by CDIC and its licensors, and all other right, title and interest in and to the Vasomedical Trademarks is expressly reserved by Vasomedical. A party shall not use the other party’s Trademarks or any other part
thereof as part of its corporate name nor use any name or mark confusingly similar to the other party’s Trademarks. 
  
 9.2  Notice.    All Equipment that uses the CDIC Trademarks shall be accompanied, where reasonable and appropriate, by a proprietary notice consisting of a statement that “BioZ” is a
trademark of CDIC on the label of the Module. Vasomedical shall include the “TM” or
“®” symbol, only as instructed by CDIC, after the first prominent use of the CDIC Trademark
in the Module and related materials. Vasomedical shall reproduce copyright and trademark notices of CDIC on the “set-up screen” or in the location where the ICG screen is initiated. 
  

9.3  Use of Trademarks.    Each party hereby authorizes the other, on a nonexclusive, worldwide, royalty-free basis, to use the
other party’s Trademarks to designate, distribute and promote the Modules and the Equipment, subject to prior review and written approval by the party whose Trademarks are used. The parties shall not brand the Modules or Equipment, as the case
may be, with any trademarks, service marks, trade names or logos other than those of CDIC and/or Vasomedical, except as mutually agreed by the parties, in writing. Each party shall immediately cease and desist from any further use of the other
party’s Trademarks and any trademarks confusingly similar thereto, either directly or indirectly upon termination of this Agreement. 
  
 10.    Ownership of Intellectual Property. 
  
 10.1  No
Transfer of Ownership.    It is expressly agreed that neither Party shall license, sell or otherwise transfer, expressly or by implication, to the other Party any patent rights, copyrights, trademarks, trade names, trade
secrets or other intellectual property rights of any kind that either Party owns, or has filed patent applications for or other registrations/applications, as of the Effective Date of this Agreement, except as provided under Section 3.6 of this
Agreement. 
  
 10.2  Models, Patterns, Dies, etc.    CDIC shall retain the title
to, and possession of, any models, patterns, dies, molds, jigs, fixtures, and other tools made for or obtained in connection with this Agreement and related to the Modules. Vasomedical shall retain the title to and possession of any models,
patterns, dies, molds, jigs, fixtures, and other tools made for or obtained in connection with this Agreement and related to the Equipment. 
  
 10.3  Individual Developments.    Any and all right, title and interest in and to inventions, patent applications, patents, copyrights, trademarks, trade names
and/or other intellectual property rights of any kind (“IPR”) based on work performed under this Agreement solely by one or more employee(s) of one Party to this Agreement shall be solely owned by that Party. 
  
 10.4  Joint Developments.    Any and all right, title and interest in and to IPR based on work
performed under this Agreement which IPR is created or invented jointly by one or more 

 
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 CONFIDENTIAL TREATMENT REQUESTED 
 
  
 employees of CDIC and one or more employees of Vasomedical shall be jointly owned by the parties. Any and all issues of joint creation and invention, as well as rights in the resulting IPR, shall be
determined under the applicable laws and regulations of the United States of America, the States and any other political divisions of same. 
  
 10.5  Procedures for Joint Inventions.    When a potential joint invention is identified by a Party, that Party shall promptly notify in writing the other Party of
such joint invention. The parties will determine an appropriate course of action as to filings of patent applications, including (i) which Party will be responsible for the preparation, filing and prosecution of any such applications and (ii) the
countries of the world in which patent applications are to be filed. All costs related to patent applications for joint inventions shall be shared equally between the parties, except as otherwise provided herein. In the event that one of the parties
(the “Filing Party”) desires to file a patent application on a joint invention hereunder in a country wherein the other Party does not want to file such a patent application, the Filing Party shall be entitled to file or have filed in its
own name patent or similar applications for such joint inventions and shall be the sole owner of the resulting intellectual property right. All additional costs related or pursuant to such filing, including prosecution costs, maintenance costs of
the application granted thereon shall be paid by the Filing Party. Intellectual property rights arising from such filings are subject to a free, fully paid-up, nonexclusive non-assignable and unrestricted license in the countries concerned in favor
of the other Party for that Party’s own use. Without limiting the scope of the foregoing, it is acknowledged that the other Party shall have no right to grant licenses or sublicenses under such arising intellectual property rights in such
countries to any third party. In the event that one of the parties seeks not to pay its full share of maintenance fees or other costs associated with protecting a joint invention in any country, the other Party may take over the payment of such
share. The non-paying Party forthwith relinquishes to the paying Party all right, title and interest in and to the joint invention and any and all implicated intellectual property rights for the countries concerned, subject, however, to the
non-paying Party’s retention of a free, fully paid-up, non-exclusive, non-assignable and unrestricted license under such implicated intellectual property rights in the countries concerned. Notwithstanding such license, the non-paying Party
shall have no right to grant licenses or sublicenses under the implicated intellectual property rights in such countries to any third party. 
  
 11.    Term; Termination. 
  
 11.1  Term and
Renewal.    The initial term of this Agreement shall commence on the Effective Date and shall continue for a period [CONFIDENTIAL TREATMENT REQUESTED] thereafter. The term of this Agreement shall be renewed
automatically for successive[CONFIDENTIAL TREATMENT REQUESTED], unless either party provides written notice of termination to the other party at least [CONFIDENTIAL TREATMENT REQUESTED] prior to expiration of this Agreement.

  
 11.2  Termination. 
  
 (a)  Termination by Vasomedical for CDIC’s Inability to Deliver Module.    The Agreement may be terminated by
Vasomedical giving thirty (30) days prior written notice to CDIC if CDIC has failed to provide a Module consistent with the specifications set forth in Exhibit A by [CONFIDENTIAL TREATMENT REQUESTED], and any such failure has not been cured
within such thirty (30) day notice period. 

 
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 (b)  Termination for Material Breach.    Either party may terminate this Agreement if the other party shall neglect or
fail to perform or observe any of its material obligations to such party hereunder, including, without limiting the generality thereof, the timely payment of any sums due, and such failure is not cured within thirty (30) days after written notice
thereof from the such party. 
  
 (c)  Termination for Dissolution, Insolvency,
Etc.    Either party may terminate this Agreement if there is (i) a dissolution, termination of existence, liquidation, insolvency or business failure of the other party, or the appointment of a custodian or receiver of any
part of the other party’s property, if such appointment is not terminated or dismissed within thirty (30) days; (ii) a composition or an assignment or trust mortgage for the benefit of creditors by the other party; (iii) the commencement by the
other party of any bankruptcy proceeding under the United States Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar law affecting the rights of creditors generally; or (iv) the
commencement against the other party of any proceeding under the United States Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar law affecting the rights of creditors generally, which
proceeding is not dismissed within thirty (30) days. 
  
 11.3  Remedies.    In
the event of termination of this Agreement by Vasomedical pursuant to Section 11.2(a) hereof, Vasomedical’s sole remedy shall be the return of the NRE Costs paid to CDIC. In addition to the non-defaulting party’s right to terminate
this Agreement pursuant to Sections 11.2(b) and 11.2(c) hereof, the non-defaulting party shall be entitled to any other remedies that such party may have at law or in equity. Upon termination of this Agreement by CDIC, CDIC may refuse to make
or take further Orders and declare all obligations under this Agreement immediately due and payable. Any such termination or other action taken by the terminating party pursuant to this Section 11.3 shall not relieve the other party of its
obligations hereunder. 
  
 11.4  Insurance.    Upon request of either party, the
other party shall provide to the requesting party, evidence of product liability, general liability and property damage insurance against an insurable claim or claims which might or could arise regarding the other party’s products. Such
insurance shall contain a minimum limit of liability for bodily injury and property damage of not less than [CONFIDENTIAL TREATMENT REQUESTED]. 
  
 12.    Alternative Dispute Resolution 
  
 12.1  Governing
Law; Consent to Jurisdiction; Venue.    This Agreement shall be governed by, and construed in accordance with, the internal laws (as opposed to conflicts of law provisions) of the [CONFIDENTIAL TREATMENT REQUESTED].
Subject to Section 12.2, the parties agree (i) that any state court within the [CONFIDENTIAL TREATMENT REQUESTED] or federal court within the [CONFIDENTIAL TREATMENT REQUESTED] (the “Approved Courts”) shall have exclusive
jurisdiction of any action or proceeding relating to, or arising under or in connection with this Agreement and the parties consent to personal jurisdiction of such Approved Courts and waive any objection to such Approved Courts’ jurisdiction,
(ii) that service of any summons and complaint or other process in any such action or proceeding may be made by registered or certified mail directed to the parties as set forth in Section 14, and service so made shall be deemed to be completed upon
the 

 
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 earlier of actual receipt or three days after the same shall have been posted, the parties hereby waiving personal service thereof. The parties agree that, subject to Section 12.2, any claim or suit between or among any of the
parties hereto relating to or arising under or in connection with this Agreement may only be brought in and decided by an Approved Court, such Approved Courts being a proper forum in which to adjudicate such claim or suit, and each party hereby
waives any objection to each such venue and waives any claim that such claim or suit has been brought in an inconvenient forum. 
  
 12.2  Arbitration.    Except for the need for any party to seek a provisional remedy in an Approved Court (as defined below) to secure or preserve the rights and benefits conferred by this
Agreement or to enforce the restrictions contained herein or therein, including injunctive relief, relief in bankruptcy proceedings or relief that will cease to be available to a party due to any applicable statute of limitations or the doctrine of
laches if the provision of this Section 12.2 are complied with, any dispute among the parties relating to this Agreement shall be resolved by mediation or arbitration as follows: 
  
 (a)  No party hereto shall commence an arbitration proceeding pursuant to the provisions of Section 12.2(b) unless such party shall first give a
written notice (a “Dispute Notice”) to the other parties setting forth the nature of the dispute. The parties shall attempt in good faith to resolve the dispute by mediation in [CONFIDENTIAL TREATMENT REQUESTED] under the Commercial
Mediation Rules of the American Arbitration Association (“AAA”) in effect on the date of this Agreement. If the parties cannot agree on the selection of a mediator within twenty (20) calendar days after delivery of the Dispute Notice, the
mediator will be selected by the AAA in San Diego County, California. If the dispute has not been resolved by mediation as provided above within sixty (60) calendar days after the delivery of the Dispute Notice, then the dispute shall be determined
by arbitration in accordance with the provisions of Section 12.2(b) hereof. Mediation proceedings and documents prepared exclusively for the mediation proceedings shall be deemed to be matters pertaining to confidential settlement negotiations and
not admissible at any other legal proceeding except for such summaries of agreements prepared by the mediator and signed by the parties. 
  
 (b)  Any dispute relating to this Agreement to be resolved by arbitration, shall be determined by arbitration in [CONFIDENTIAL TREATMENT REQUESTED] by one arbitrator in accordance with
the Commercial Arbitration Rules of the AAA and its Supplementary Procedures for Large, Complex Disputes, except that every person named on all lists of potential arbitrators shall be a neutral and impartial lawyer with excellent academic and
professional credentials (i) who is or has been practicing law as a partner in a highly respected law firm for at least five (5) years, specializing in either general commercial litigation or general corporate and commercial matters, with experience
in the field of contract law, (ii) who has had experience as an arbitrator of commercial transactions, and (iii) who is generally available to serve as an arbitrator. The AAA shall submit a list of three (3) arbitrators meeting the criteria set
forth above. CDIC and Vasomedical shall each be entitled to strike one (1) of such three (3) designees on a peremptory basis within five (5) calendar days after its receipt of such list of designees, indicating its order of preference with respect
to the remaining designees. If two (2) of such designees have been stricken by CDIC and Vasomedical, the remaining designee shall be the arbitrator. Otherwise, the selection of the arbitrator shall be made by the AAA from the remaining designees in
accordance with their mutual order of preference, or by random selection in the absence of a 

 
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 mutual order of preference. The arbitrator shall base his or her award on applicable law and judicial precedent and, unless the parties agree otherwise, shall include in such award the findings of fact and conclusions of law
upon which the award is based. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. 
  
 (c)  Notwithstanding the foregoing, upon the application by any party to an Approved Court for an order confirming, modifying or vacating the award, the Approved Court shall have the power to
review (through a process whereby the parties will submit single briefs of no more than 50 pages each), whether, as a matter of law based on the findings of fact determined by the arbitrator, the award should be confirmed, modified or vacated in
order to correct any errors of law made by the arbitrator. In order to effectuate such judicial review limited to issues of law, the parties agree (and shall so stipulate to the Approved Court) that the findings of fact made by the arbitrator shall
be binding on the parties and shall serve as the facts to be submitted to and relied on by the Approved Court in determining the extent to which the award should be confirmed, modified or vacated. 
  
 (d)  If any party fails to proceed with mediation or arbitration as provided herein or unsuccessfully seeks to
stay such mediation or arbitration, or fails to comply with any arbitration award, or is unsuccessful in vacating or modifying the award pursuant to a petition or application for judicial review, the other parties shall be entitled to be awarded
costs, including reasonable attorneys’ fees, paid or incurred by such other parties in successfully compelling such mediation or arbitration or defending against the attempt to stay, vacate or modify such mediation or arbitration award and/or
successfully defending or enforcing the award. 
  
 (e)  During arbitration proceedings, the
parties shall continue to perform their respective responsibilities under this Agreement. 
  
 13.    Confidential
Information. 
  
 No Confidential Information disclosed by either Party to the other in connection with this
Agreement shall be disclosed to any Person or entity other than the recipient Party’s employees and contractors directly involved with the recipient Party’s use of such information, who are bound by written agreement to protect the
confidentiality of such Confidential Information, and such Confidential Information shall otherwise be protected by the recipient Party from disclosure to others with the same degree of care accorded to its own Confidential Information and at least
reasonable care. In addition, each Party and its representatives shall use the Confidential Information only for the purposes specified under this Agreement and such Confidential Information shall not be used for any other purpose without the prior
written consent of the disclosing Party. As used in this Section 13, “Confidential Information” shall mean technical information, including but not limited to, drawings, data, specifications, design instructions, installation and
operational instructions, product cost information, memoranda, patent applications, working models and embodiments, as well as business and financial information which if delivered in writing, is designated by the disclosing Party as
“proprietary” or “confidential,” or if delivered orally, is identified orally by the disclosing Party as “confidential” or “proprietary” at the time of disclosure. Information shall not be subject to this
provision if it is or becomes a matter of public knowledge without the fault of the recipient Party; if it was a matter of written record in the recipient Party’s files prior to disclosure to it by the other Party; if 

 
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 CONFIDENTIAL TREATMENT REQUESTED 
 
 it was or is received by the recipient Party from a third person under circumstances permitting its unrestricted disclosure by the recipient Party; or if it was independently developed by the recipient Party without reference to the
Confidential Information. Upon termination of this Agreement, each Party shall promptly destroy all Confidential Information of the other Party in the possession or control of such Party and all copies thereof, provided that each Party may retain
one copy thereof for archival purposes. The obligations under this Section 13 shall continue for both parties for a period of three (3) years after termination of this Agreement. Neither Party will disclose any Confidential Information of the
other Party with any of such Party’s subsidiaries or affiliated companies without the express written consent of the other Party. 
  
 14.    General Provisions. 
  
 14.1  Notices.    All communications provided for hereunder shall be in writing and shall be deemed to have been given when delivered in person or deposited in the United States mail, first class,
registered or certified, return receipt requested, with proper postage paid and, 
  
 If to CDIC,
addressed to: 
  
 CardioDynamics International Corporation 
 6175 Nancy Ridge 
 San Diego, CA 92121

 Attention: Customer Service Manager 
  
 If to Vasomedical, addressed to: 
  
 Vasomedical Inc. 
 180 Linden Avenue 
 Westbury, NY 11590 
 Attention: Vice
President of Engineering 
  
 or to such other place or places or to such other person or persons as shall be designated in writing by the
parties hereto. 
  
 14.2  Non waiver of Default.    Failure of any party, at any
time, or from time to time, to enforce and require the strict performance of any of the terms and conditions of this Agreement shall not constitute a waiver of any such terms or conditions at any future time and shall not prevent such party from
insisting on the strict performance of such terms and conditions at any later time. 
  
 14.3  Modification.    This Agreement shall not be modified except by a written instrument signed by all the parties hereto. 
  
 14.4  Entirety of Agreement.    This Agreement, with the attached Exhibits A, B, C and D, is intended by the parties to be the final
expression of their agreement and is the complete and exclusive statement of the terms thereof notwithstanding any representation or statement to the contrary heretofore made. There are no understandings, agreements, representations or 

 
 13 

 
 CONFIDENTIAL TREATMENT REQUESTED 
 
  
 warranties, expressed or implied, not specified herein regarding this Agreement, the Modules or the Equipment. Only the terms and conditions contained in this Agreement shall govern the transactions
contemplated hereunder, notwithstanding any additional, different or conflicting terms which may be contained in any Order or other document provided by one party to the other. 
  
 14.5  Headings.    The section and paragraph headings contained in this Agreement are for reference purposes only and shall not in any
way affect the meaning of or interpretation of this Agreement. 
  
 14.6  No Violation or
Breach.    Each party, as to such party, warrants and represents to the other party that its performance of this Agreement does not violate any federal, state, or local law, statute, ordinance, or regulation, or any
agreement, court or administrative order or ruling to which such party may be bound. 
  
 14.7  Severability.    In the event any provision of this Agreement is held invalid, illegal or unenforceable, in whole or in part, the remaining provisions of this Agreement shall not be affected
thereby and shall continue to be valid and enforceable, and if for any reason, a court finds that any provision of this Agreement is invalid, illegal or unenforceable, as written, but that by limiting such provision it would become valid, legal and
enforceable, then such provision shall be deemed to be written and shall be construed and enforced as so limited. 
  
 14.8  Force Majeure.    In the event that either party is prevented from performing, or is unable to perform, any of its obligations under this Agreement due to any act of God, fire, casualty,
flood, war, strike, lock out, failure of public utilities, injunction or any act, exercise, assertion or requirement of governmental authority, epidemic, destruction of production facilities, insurrection, inability to procure materials, labor,
equipment, transportation or energy sufficient to meet manufacturing needs, or any other cause beyond the control of the party invoking this provision, and if such party shall have used its best efforts to avoid such occurrence and minimize its
duration and has given prompt written notice to the other party, then the affected party’s performance shall be excused and the time for performance shall be extended for the period of delay or inability to perform due to such occurrence. If
the force majeure continues for a period of one hundred eighty (180) days, the other party shall have the right to terminate the Agreement. 
  
 14.9  Publicity.    Neither party shall originate any publicity, news release or other public announcement relating to this Agreement or the existence of an
arrangement between the parties without the prior written approval of the other party, unless otherwise required by applicable law including, without limitation, obligations pursuant to any listing agreement with or rules of any securities exchange;
provided, however, that if either party is required to file a copy of this Agreement pursuant to such rules, such party shall apply for an order granting confidential treatment pursuant to Rule 24b-2 promulgated under the Securities Exchange Act of
1934, as amended, of such portions of the Agreement as shall be mutually agreed upon by the parties. 
  
 14.10  No Agency.    Nothing contained in this Agreement shall be deemed to constitute either party as the agent or representative of the other party, or both parties as joint venturers or
partners for any purpose. Neither party shall be responsible for the acts or omissions of the other 

 
 14 

 
 CONFIDENTIAL TREATMENT REQUESTED 
 
  
 party, and neither party shall have authority to speak for, represent or obligate the other party in any way without prior written authority from the other party. 
  
 14.11  Survival of Obligations.    All obligations of either party under Sections 7 (excluding
Section 7.5), 8, 9, 10, 12, 13 and 14 shall survive the expiration or termination of this Agreement and continue to be enforceable. 
  
 14.12  LIMITATION ON LIABILITY.    IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, EXEMPLARY, STATUTORY, ENHANCED OR OTHER
INDIRECT DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS, LOSS OF DATA OR LOSS OF USE DAMAGES) ARISING OUT OF THE MANUFACTURE, SALE OR SUPPLYING OF MODULES OR EQUIPMENT OR THE PERFORMANCE OR NONPERFORMANCE OF THIS AGREEMENT. 

 
 14.13  Governing Law.    This Agreement shall be governed by and construed in accordance
with the laws of the State of California, without reference to conflict of law principles. 
  
 14.14  Beneficiaries.    This Agreement is solely for the benefit of the parties hereto and their respective affiliates, successors in interest and permitted assigns and shall not confer upon any
other person any remedy, claim, liability, reimbursement or other right in excess of those existing without reference to this Agreement. 
  
 14.15  Assignment.    Neither party may assign or delegate this Agreement or any rights or obligations under this Agreement without the prior written consent of the other. 

 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first set forth above.

  
 CardioDynamics International Corporation 
  
 
	 
	 By:
 	  	 /S/    MICHAEL K. PERRY
 
	  	  	 

	  	  	 Chief Executive Officer
 
	 
	 Date:
 	  	 8/30/02        
 
	  	  	 

 
  
 Vasomedical Inc. 
  
 
	 
	 By:
 	  	 /S/    D. MICHAEL DEIGNAN
 
	  	  	 

	  	  	 Chief Executive Officer
 
	 
	 Date:
 	  	 8/30/02        
 
	  	  	 

 

 
 15 

 
 CONFIDENTIAL TREATMENT REQUESTED 
 
  
 EXHIBIT A 
  
 MODULE SPECIFICATIONS

  

 
 16 

 
 CONFIDENTIAL TREATMENT REQUESTED 
 
  
 EXHIBIT B 
  
 NRE COSTS 

 
 

	 #
 	  	 Item
 	  	 Hours
 	  	 Cost
 	  	 Extended Cost
 
	
	
	
	
	
	
	
	
	

	 1
 	  	 Internal cost allocation items
 	  	  	  	  	  	  
	
	 	 	 	 	 	 	 	 
	  	  	 A) Hardware
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	 	 	
	
	
	
	
	

	 
	  	  	 B) Software
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	 	 	
	
	
	
	
	

	 
	  	  	 C) Quality / Regulatory
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	 	 	
	
	
	
	
	

	 
	  	  	 D) Manufacturing support
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	 	 	
	
	
	
	
	

	 
	  	  	 Internal cost allocation sub-total
 	  	  	  	  	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	
	
	
	
	
	
	
	

	 2
 	  	 Outside cash outlay items
 	  	  	  	  	  	  
	
	 	 	 	 	 	 	 	 
	 
	 2
 	  	 A) Outside CADD contractor
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	 	 	
	
	
	
	
	

	 
	 3
 	  	 B) NRE Expenses (components, prototype parts, etc)
 	  	  	  	  	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	 	 	
	
	
	
	
	

	 
	 4
 	  	 C) Outside lab testing
 	  	  	  	  	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	 	 	
	
	
	
	
	

	 
	  	  	 Outside cash outlay sub-total
 	  	  	  	  	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	
	
	
	
	
	
	
	

	 
	  	  	 Product Development Total (does not include manufacturing implementation)
 	  	  	  	  	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	
	
	
	
	
	
	
	

 

 
 17 

 
 CONFIDENTIAL TREATMENT REQUESTED 
 
  
 EXHIBIT C 
  
 CONTACT PERSONS

  
 CONTACT PERSONS/ADDRESSES 
  
 Contact Persons and Responsibilities at CDIC: 
  
 

	 Person
 	  	 Title
 	  	 Responsibility
 	  	 Email
Phone Number
 
	
	
	
	
	
	
	

	 Mike Perry
 	  	 Chief Executive Officer
 	  	 Executive Management Issues
 	  	 [CONFIDENTIAL
 TREATMENT REQUESTED]
 (858) 535-0202
 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	
	
	
	
	
	

	 Steve Loomis
 	  	 Chief Financial Officer
 	  	 Financial Issues
 	  	 [CONFIDENTIAL
 TREATMENT REQUESTED]
 (858) 535-0202
 [CONFIDENTIAL
 TREATMENT REQUESTED]
 
	
	
	
	
	
	
	

	 Patrick Bradley
 	  	 Vice President – Business Development
 	  	 OEM Business
 	  	 [CONFIDENTIAL
 TREATMENT REQUESTED]
 (858) 535-0202
 [CONFIDENTIAL
 TREATMENT REQUESTED]
 
	
	
	
	
	
	
	

	 Dennis Hepp
 	  	 Chief Technology Officer
 	  	 Technical Issues
 	  	 [CONFIDENTIAL
 TREATMENT REQUESTED]
 (858) 535-0202
 [CONFIDENTIAL
 TREATMENT REQUESTED]
 
	
	
	
	
	
	
	

	 [CONFIDENTIAL TREATMENT REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT
REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT
REQUESTED]
 	  	 [CONFIDENTIAL
 TREATMENT REQUESTED]
 
	
	
	
	
	
	
	

 
  

	    Mailing Address: 
 	CardioDynamics International Corporation 
 

	 	6175 Nancy Ridge Drive, Suite 300 
 

	 	San Diego, California 92121 
 

	 	USA 
 

 
 Contact
Persons and Responsibilities at Vasomedical Inc.: 
  
 

	 Person
 	  	 Title
 	  	 Responsibility
 	  	 Email
Phone Number
 
	
	
	
	
	
	
	

	 [CONFIDENTIAL TREATMENT
 REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT
 REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT
 REQUESTED]
 	  	 [CONFIDENTIAL TREATMENT REQUESTED]
 
	
	
	
	
	
	
	

	  	  	  	  	  	  	  
	
	
	
	
	
	
	

	  	  	  	  	  	  	  
	
	
	
	
	
	
	

 
  

	    Mailing Address: 
 	Vasomedical Inc. 
 

 
 18 

 
 CONFIDENTIAL TREATMENT REQUESTED 
 
  
 EXHIBIT D 
  
 CDIC TRADEMARKS

  
 Registered Trademarks 
  
 BioZ.com® 
 BioZ® 
 BioZsim® 
 ZMARC® 
 Zcare® 
  
 Pending 
  
 BioZTECT 
 DISQ 
 BioZ.tel 

 
 19

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