Document:

Receivables Purchase Agreement dated as of February 1,2010

 Exhibit 10.3 
 EXHIBIT 10.3 – RECEIVABLES PURCHASE AGREEMENT 
 [EXECUTION COPY] 
 CARMAX BUSINESS SERVICES, LLC, 
 as Seller, 
 and 
 CARMAX AUTO FUNDING LLC, 
 as Purchaser 
  
  
 RECEIVABLES PURCHASE AGREEMENT 
 Dated as of February 1,
2010 
  
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	
	 ARTICLE I

	 DEFINITIONS

	 SECTION 1.1
	  	Definitions	  	1
	 SECTION 1.2
	  	Other Definitional Provisions	  	4
	
	ARTICLE II
	CONVEYANCE OF RECEIVABLES
			
	 SECTION 2.1
	  	Sale and Conveyance of Receivables	  	4
	 SECTION 2.2
	  	Receivables Purchase Price; Payments on the Receivables	  	5
	 SECTION 2.3
	  	Transfer of Receivables	  	5
	 SECTION 2.4
	  	Examination of Receivable Files	  	6
	 SECTION 2.5
	  	Expenses	  	6
	
	 ARTICLE III

	REPRESENTATIONS AND WARRANTIES
			
	 SECTION 3.1
	  	Representations and Warranties of the Purchaser	  	6
	 SECTION 3.2
	  	Representations and Warranties of the Seller	  	7
	
	 ARTICLE IV

	 CONDITIONS

			
	 SECTION 4.1
	  	Conditions to Obligation of the Purchaser	  	13
	 SECTION 4.2
	  	Conditions to Obligation of the Seller	  	15
	
	 ARTICLE V

	 COVENANTS OF THE SELLER

			
	 SECTION 5.1
	  	Protection of Right, Title and Interest in, to and Under the Receivables	  	15
	 SECTION 5.2
	  	Security Interests	  	16
	 SECTION 5.3
	  	Delivery of Payments	  	17
	 SECTION 5.4
	  	No Impairment	  	17
	 SECTION 5.5
	  	Costs and Expenses	  	17
	 SECTION 5.6
	  	Hold Harmless	  	17
	
	 ARTICLE VI

	 MISCELLANEOUS PROVISIONS

			
	 SECTION 6.1
	  	Amendment	  	17
	 SECTION 6.2
	  	Termination	  	18
	 SECTION 6.3
	  	Governing Law	  	18
	 SECTION 6.4
	  	Notices	  	18
	 SECTION 6.5
	  	Severability of Provisions	  	18

					
	 	  	 	  	Page
			
	 SECTION 6.6
	  	Further Assurances	  	18
	 SECTION 6.7
	  	No Waiver; Cumulative Remedies	  	19
	 SECTION 6.8
	  	Counterparts	  	19
	 SECTION 6.9
	  	Third-Party Beneficiaries	  	19
	 SECTION 6.10
	  	Headings and Table of Contents	  	19
	 SECTION 6.11
	  	Representations, Warranties and Agreements to Survive	  	19
	 SECTION 6.12
	  	No Proceedings	  	19
	 SECTION 6.13
	  	Accountant’s Letters	  	19
	 SECTION 6.14
	  	Obligations of Purchaser	  	20
	
	SCHEDULES
			
	 SCHEDULE A
	  	Receivables Schedule	  	
	
	EXHIBITS
			
	 EXHIBIT A
	  	Bill of Sale and Assignment	  	
	 EXHIBIT B
	  	Form of Retail Installment Sale Contract	  	

 RECEIVABLES PURCHASE AGREEMENT 
 This Receivables Purchase Agreement, dated as of February 1, 2010, is between CarMax Business Services, LLC, a Delaware limited
liability company (“CarMax”), as seller (the “Seller”), and CarMax Auto Funding LLC, a Delaware limited liability company (“CarMax Funding”), as purchaser (the “Purchaser”).

 WHEREAS, in the regular course of business, CarMax Auto Superstores, Inc., a Virginia corporation (“CarMax
Auto”), and certain affiliates of CarMax Auto originate motor vehicle retail installment sale contracts secured by new and used motor vehicles; 
 WHEREAS, the Seller intends to convey all of its right, title and interest in and to contracts having an aggregate outstanding principal balance of $470,000,001.57 as of the close of business on
January 31, 2010 (the “Receivables”) to the Purchaser and, concurrently with its purchase of the Receivables, the Purchaser intends to convey all of its right, title and interest in and to the Receivables to CarMax Auto Owner
Trust 2010-1, as issuer (the “Issuer”), pursuant to a Sale and Servicing Agreement, dated as of February 1, 2010 (the “Sale and Servicing Agreement”), among the Issuer, CarMax Funding, as depositor, CarMax, as
servicer, and Wells Fargo Bank, National Association, a national banking association, as backup servicer; and 
 WHEREAS, the
Seller and the Purchaser wish to set forth the terms pursuant to which the Receivables are to be sold by the Seller to the Purchaser; 
 NOW, THEREFORE, in consideration of the mutual terms and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.1 Definitions. Whenever used in this Agreement, the following words and phrases shall
have the following meanings: 
 “Agreement” shall mean this Receivables Purchase Agreement and all amendments
hereof and supplements hereto. 
 “Base Prospectus” shall mean the prospectus, dated February 2, 2010, of
the Purchaser relating to the public offering by the Purchaser of the Notes. 
 “Bill of Sale” shall mean the
Bill of Sale and Assignment, substantially in the form attached as Exhibit A. 
 “CarMax” shall mean
CarMax Business Services, LLC, a Delaware limited liability company, and its successors. 
 “CarMax Auto” shall
mean CarMax Auto Superstores, Inc., a Virginia corporation, and its successors. 

 “CarMax Funding” shall mean CarMax Auto Funding LLC, a Delaware limited
liability company, and its successors. 
 “CarMax Funding II” shall mean CarMax Funding II, LLC, a Delaware
limited liability company, and its successors. 
 “Class A Notes” shall mean the Class A-1 Notes, the
Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes issued pursuant to the Indenture. 
 “Class
B Notes” shall mean the Class B Notes issued pursuant to the Indenture. 
 “Class C Notes” shall mean
the Class C Notes issued pursuant to the Indenture. 
 “Closing Date” shall mean February 19, 2010.

 “Cutoff Date” shall mean January 31, 2010. 
 “Delaware Trustee” shall mean BNY Mellon Trust of Delaware, a Delaware banking corporation, as Delaware trustee under the
Trust Agreement, and its successors in such capacity. 
 “Depositor” shall mean CarMax Funding, in its capacity
as Depositor under the Trust Agreement, and its successors in such capacity. 
 “Indenture” shall mean the
Indenture, dated as of February 1, 2010, between the Issuer and the Indenture Trustee, as amended, supplemented or otherwise modified and in effect from time to time. 
 “Indenture Trustee” shall mean Wells Fargo Bank, National Association, a national banking association, as indenture trustee
under the Indenture, and its successors in such capacity. 
 “Initial Reserve Account Deposit” shall mean
$1,175,000. 
 “Issuer” shall mean CarMax Auto Owner Trust 2010-1, a Delaware statutory trust, and its
successors. 
 “Noteholders” shall mean the registered holders of the Notes. 
 “Notes” shall mean the Class A Notes, the Class B Notes and the Class C Notes. 
 “Owner Trustee” shall mean The Bank of New York Mellon, a New York banking corporation, as owner trustee under the Trust
Agreement, and its successors in such capacity. 
 “Prospectus Supplement” shall mean the final prospectus
supplement, dated February 9, 2010, of the Purchaser relating to the public offering by the Purchaser of the Class A Notes, the Class B Notes and the Class C Notes. 
  

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 “Prospectus” shall mean the Prospectus Supplement and the Base Prospectus.

 “Purchaser” shall mean CarMax Funding, in its capacity as purchaser of the Receivables under this Agreement,
and its successors in such capacity. 
 “Receivables” shall mean the motor vehicle retail installment sale
contracts sold by the Seller to the Purchaser pursuant to this Agreement and identified on the Receivables Schedule. 
 “Receivables Purchase Price” shall mean $484,100,001.62. 
 “Receivables Schedule”
shall mean the schedule of receivables attached as Schedule A, as amended, supplemented or otherwise modified and in effect from time to time. 
 “Representative” shall mean Wells Fargo Securities, LLC, a Delaware limited liability company, as representative of the Underwriters. 
 “Sale and Servicing Agreement” shall have the meaning specified in the recitals. 
 “Seller” shall mean CarMax, in its capacity as seller of the Receivables under this Agreement, and its successors in such
capacity. 
 “State” shall mean any of the 50 states of the United States or the District of Columbia.

 “Transaction Documents” shall mean this Agreement, the Trust Agreement, the Sale and Servicing Agreement,
the Indenture, the Administration Agreement and the other documents and certificates delivered in connection therewith, in each case as amended, supplemented or otherwise modified and in effect from time to time. 
 “Trust Agreement” shall mean the Trust Agreement, dated as of December 3, 2009, among CarMax Funding, the Delaware
Trustee and the Owner Trustee, as amended and restated by the Amended and Restated Trust Agreement, dated as of February 1, 2010, among CarMax Funding, the Delaware Trustee and the Owner Trustee. 
 “Trustee” shall mean either the Owner Trustee or the Indenture Trustee, as the context requires. 
 “UCC” shall mean the Uniform Commercial Code as in effect in the applicable jurisdiction. 
 “Underwriters” shall mean the underwriters named in Schedule A to the Underwriting Agreement. 
 “Underwriting Agreement” shall mean the Underwriting Agreement, dated February 9, 2010, among CarMax Funding, CarMax
and the Representative, relating to the purchase of the Notes by the Underwriters from CarMax Funding. 
  

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 SECTION 1.2 Other Definitional Provisions. 
 (a) Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed thereto in the Sale and Servicing
Agreement. 
 (b) The words “hereof”, “herein” and “hereunder” and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; Section, subsection, Schedule and Exhibit references contained in this Agreement are references to Sections,
subsections, Schedules and Exhibits in or to this Agreement unless otherwise specified; the term “proceeds” shall have the meaning set forth in the applicable UCC; and the word “including” shall mean including without limitation.

 ARTICLE II 
 CONVEYANCE OF RECEIVABLES 
 SECTION 2.1 Sale and Conveyance of Receivables. 
 (a) On the Closing Date, subject to the terms and conditions of this Agreement, the Seller hereby agrees to sell, transfer, assign, set over
and otherwise convey to the Purchaser, and the Purchaser hereby agrees to purchase from the Seller, without recourse (subject to the Seller’s obligations hereunder and the satisfaction of the conditions set forth in Section 4.1), all of
the right, title and interest of the Seller, whether now owned or hereafter acquired, in, to and under the following: 
 (i) the Receivables; 
 (ii) all amounts received on or in respect of the Receivables (including
proceeds of the repurchase of Receivables by the Seller pursuant to Section 3.2(f)) after the Cutoff Date; 
 (iii) the security interests in the Financed Vehicles granted by the Obligors pursuant to the Receivables and any other interest of the Seller in such Financed Vehicles; 
 (iv) all proceeds from claims on or refunds of premiums of any physical damage or theft insurance policies covering the
Financed Vehicles and any proceeds or refunds of premiums of any credit life or credit disability insurance policies relating to the Financed Vehicles or the Obligors; 
 (v) the Receivable Files; 
 (vi) the right to realize upon any property (including the right to receive future Liquidation Proceeds) that shall have secured a Receivable and have been repossessed by or on behalf of the Issuer; and

 (vii) all present and future claims, demands, causes of action and choses in action in respect of any or all
of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing,

  

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including all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid property; all accounts, general intangibles, chattel paper, instruments, documents, money,
investment property, deposit accounts, letters of credit, letter-of-credit rights, insurance proceeds, condemnation awards, rights to payment of any and every kind and other forms of obligations; and all other property which at any time constitutes
all or part of or is included in the proceeds of any of the foregoing. 
 (b) The parties hereto intend that the conveyance of
the Receivables and related property hereunder be a sale and not a loan. In the event that the conveyance hereunder is not for any reason considered a sale, the Seller hereby grants to the Purchaser a first priority perfected security interest in
all of the Seller’s right, title and interest in, to and under the Receivables and all other property conveyed hereunder and listed in this Section and all proceeds of any of the foregoing. The parties intend that this Agreement constitute
a security agreement under applicable law. Such grant is made to secure the payment of all amounts payable hereunder, including the Receivables Purchase Price. If such conveyance is for any reason considered to be a loan and not a sale, the Seller
consents to the Purchaser transferring such security interest in favor of the Indenture Trustee and transferring the obligations secured thereby to the Indenture Trustee. 
 (c) The Seller agrees to treat the transfer of the Receivables and the related property contemplated by this Section for all purposes (including financial accounting purposes) as an absolute transfer
on all relevant books, records, financial statements and other applicable documents. 
 SECTION 2.2 Receivables Purchase
Price; Payments on the Receivables. 
 (a) On the Closing Date, in exchange for the Receivables and other assets described
in Section 2.1, the Purchaser shall pay to the Seller the Receivables Purchase Price. An amount equal to $467,487,359.88 of the Receivables Purchase Price shall be paid by the Purchaser to the Seller in cash or immediately available funds. The
remainder of the Receivables Purchase Price shall be paid by crediting the Seller with a contribution to the capital of the Purchaser. The Purchaser shall deposit, from funds it receives from the issuance of the Notes, an amount equal to the Initial
Reserve Account Deposit into the Reserve Account, which amount shall be an asset of the Issuer. 
 (b) The Purchaser shall be
entitled to, and shall convey such right to the Owner Trustee pursuant to the Sale and Servicing Agreement, all payments of principal and interest on or in respect of the Receivables received after the Cutoff Date. 
 SECTION 2.3 Transfer of Receivables. Pursuant to the Sale and Servicing Agreement, the Purchaser will assign all of its right, title
and interest in, to and under the Receivables and other assets described in Section 2.1 to the Issuer. The parties hereto acknowledge that the Issuer will pledge its rights in, to and under the Receivables and other assets described in
Section 2.1 to the Indenture Trustee pursuant to the Indenture. The Purchaser has the right to assign its interest under this Agreement as may be required to effect the purposes of the Sale and Servicing Agreement, without the consent of the
Seller, and the Owner Trustee as assignee shall succeed to the rights and obligations hereunder of the Purchaser. 
  

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 SECTION 2.4 Examination of Receivable Files. The Seller will make the Receivable
Files available to the Purchaser or its agent for examination during normal business hours at the Seller’s offices or such other location as otherwise shall be agreed upon by the Purchaser and the Seller. 
 SECTION 2.5 Expenses. The Seller will reimburse the Purchaser for expenses of the Purchaser in connection with the sale of the Notes,
including expenses which are reimbursable to the Underwriters by the Purchaser pursuant to the Underwriting Agreement. 
 ARTICLE
III 
 REPRESENTATIONS AND WARRANTIES 
 SECTION 3.1 Representations and Warranties of the Purchaser. The Purchaser hereby makes the following representations and warranties to the Seller as of the date of this Agreement and as of the
Closing Date: 
 (a) Organization and Good Standing. The Purchaser is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Delaware, and has power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted, and had at all
relevant times, and shall have, power, authority and legal right to acquire, own and sell the Receivables. 
 (b) Power and
Authority; Binding Obligation. The Purchaser has the power and authority to execute and deliver this Agreement and to carry out its terms; and the execution, delivery and performance of this Agreement has been duly authorized by the Purchaser by
all necessary action. This Agreement constitutes the legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, subject, as to enforceability, to applicable bankruptcy, insolvency,
reorganization, conservatorship, receivership, liquidation and other similar laws and to general equitable principles. 
 (c)
No Violation. The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof shall not conflict with, result in any breach of any of the terms and provisions of, nor constitute (with or without
notice or lapse of time) a default under, the limited liability company agreement or certificate of formation of the Purchaser, or conflict with or breach any of the material terms or provisions of, or constitute (with or without notice or lapse of
time) a default under, any indenture, agreement or other instrument to which the Purchaser is a party or by which it may be bound. 
 (d) No Proceedings. There are no proceedings or investigations pending, or, to the knowledge of the Purchaser, threatened, against the Purchaser before any court, regulatory body, administrative agency or other tribunal or
governmental instrumentality having jurisdiction over the Purchaser or its properties (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or
(iii) seeking any determination or ruling that, in the reasonable judgment of the Purchaser would materially and adversely affect the performance by the Purchaser of its obligations under, or the validity or enforceability of, this Agreement or
the Receivables. 
  

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 SECTION 3.2 Representations and Warranties of the Seller. 
 (a) The Seller hereby makes the following representations and warranties to the Purchaser as of the date of this Agreement and as of the
Closing Date: 
 (i) Organization and Good Standing. The Seller is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of Delaware, and has power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted,
and had at all relevant times, and shall have, power, authority and legal right to acquire, own and sell the Receivables. 
 (ii) Power and Authority; Binding Obligation. The Seller has the power and authority to execute and deliver this Agreement and to carry out its terms; and the execution, delivery and performance of
this Agreement has been duly authorized by the Seller by all necessary action. This Agreement constitutes the legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, subject, as to
enforceability, to applicable bankruptcy, insolvency, reorganization, conservatorship, receivership, liquidation and other similar laws and to general equitable principles. 
 (iii) No Violation. The consummation of the transactions contemplated by this Agreement and the fulfillment of the
terms hereof shall not conflict with, result in any breach of any of the terms and provisions of, nor constitute (with or without notice or lapse of time) a default under, the certificate of formation or limited liability company agreement of the
Seller, or conflict with or breach any of the material terms or provisions of, or constitute (with or without notice or lapse of time) a default under, any indenture, agreement or other instrument to which the Seller is a party or by which it may be
bound. 
 (iv) No Proceedings. There are no proceedings or investigations pending, or, to the knowledge of
the Seller, threatened, against the Seller before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Seller or its properties (i) asserting the invalidity of this
Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that, in the reasonable judgment of the Seller would materially and adversely affect
the performance by the Seller of its obligations under, or the validity or enforceability of, this Agreement or the Receivables. 
 (v) No Tax Liens. The Seller is not aware of any material judgment or tax lien filings against the Seller. 
  

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 (b) The Seller hereby makes the following representations and warranties to the Purchaser as
of the date of this Agreement and as of the Closing Date, which representations and warranties shall remain operative and in full force and effect, shall survive the transfer and conveyance of the Receivables and other assets described in
Section 2.1 by the Seller to the Purchaser and by the Purchaser to the Issuer and shall inure to the benefit of the Purchaser, the Trustees and the Noteholders: 
 (i) Characteristics of Receivables. Each Receivable (i) has been originated by CarMax Auto or an Affiliate of
CarMax Auto in the ordinary course of business in connection with the sale of a new or used motor vehicle and has been fully and properly executed by the parties thereto, (ii) contains customary and enforceable provisions such that the rights
and remedies of the holder thereof are adequate for realization against the collateral of the benefits of the security, (iii) provides for level monthly payments that fully amortize the Amount Financed by maturity (except that the period
between the date of such Receivable and the date of the first Scheduled Payment may be less than or greater than one month and the amount of the first and last Scheduled Payments may be less than or greater than the level payments) and yield
interest at the related APR, (iv) provides for, in the event that such Receivable is prepaid, a prepayment that fully pays the Principal Balance of such Receivable with interest at the related APR through the date of payment, (v) is a
retail installment sale contract substantially in the form of Exhibit B, (vi) is secured by a new or used motor vehicle that had not been repossessed as of the Cutoff Date, (vii) is a Simple Interest Receivable, (viii) relates to an
Obligor who has made at least one payment under such Receivable as of the Cutoff Date and (ix) relates to an Obligor whose mailing address is located in any State. 
 (ii) Receivable Schedule. The information set forth in the Receivable Schedule was true and correct in all material
respects as of the opening of business on the Cutoff Date, and no selection procedures believed to be adverse to the Depositor and/or the Noteholders were utilized in selecting the Receivables from those retail installment sale contracts which met
the criteria contained in this Agreement. The information set forth in the compact disk or other listing regarding the Receivables made available to the Depositor and its assigns (which compact disk or other listing is required to be delivered as
specified herein) is true and correct in all material respects. 
 (iii) Compliance with Law. Each
Receivable and the sale of the related Financed Vehicle complied, at the time such Receivable was originated and complies, as of the Closing Date, in all material respects with all requirements of applicable federal, State and local laws, and
regulations thereunder, including usury laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty
Act, the Federal Reserve Board’s Regulations B and Z, the Servicemembers Civil Relief Act, State adaptations of the National Consumer Act and the Uniform Consumer Credit Code and any other consumer credit, equal opportunity and disclosure laws
applicable to such Receivable and sale. 
  

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 (iv) Binding Obligation. Each Receivable represents the genuine,
legal, valid and binding payment obligation in writing of the related Obligor, enforceable by the holder thereof in all material respects in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, liquidation or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 
 (v) No Government Obligor. No Receivable is due from the United States or any State or from any agency, department or instrumentality of the United States or any State. 
 (vi) Security Interest in Financed Vehicles. Immediately prior to the transfer of the Receivables by the Seller to the
Depositor, each Receivable was secured by a valid, binding and enforceable first priority perfected security interest in favor of the Seller in the related Financed Vehicle, which security interest has been validly assigned by the Seller to the
Depositor. The Servicer has received, or will receive within 180 days after the Closing Date, the original certificate of title for each Financed Vehicle (other than any Financed Vehicle that is subject to a certificate of title statute or
motor vehicle registration law that does not require that the original certificate of title for such Financed Vehicle be delivered to the Seller). 
 (vii) Receivables in Force. No Receivable has been satisfied, subordinated or rescinded, nor has any Financed Vehicle been released in whole or in part from the Lien granted by the related
Receivable. 
 (viii) No Waiver. No provision of any Receivable has been waived in such a manner that such
Receivable fails to meet all of the representations and warranties made by the Seller in this Section 3.2(b) with respect thereto. 
 (ix) No Defenses. No Receivable is subject to any right of rescission, setoff, counterclaim or defense, including the defense of usury, and the operation of any of the terms of any Receivable, or
the exercise of any right thereunder, will not render such Receivable unenforceable in whole or in part or subject to any right of rescission, setoff, counterclaim or defense, including the defense of usury, and the Seller has no knowledge of any
such right of rescission, setoff, counterclaim or defense being asserted or threatened with respect to any Receivable. 
 (x) No Liens. The Seller has no knowledge of any liens or claims that have been filed, including liens for work, labor or materials or for unpaid State or federal taxes, relating to any Financed Vehicle that are prior to, or equal or
coordinate with, the security interest in such Financed Vehicle created by the related Receivable. 
 (xi) No
Default. Except for payment defaults continuing for a period of not more than 30 days, the Seller has no knowledge that any default, breach, violation or event permitting acceleration under the terms of any Receivable has occurred or that any
continuing condition that with notice or the lapse of time or both would constitute a default, breach, violation or event permitting acceleration under the terms of any Receivable has arisen, and the Seller has not waived any such event or
condition. 
  

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 (xii) Title. The Seller intends that the transfer of the Receivables
contemplated by Section 2.1 constitute a sale of the Receivables from the Seller to the Depositor and that the beneficial interest in, and title to, the Receivables not be part of the Seller’s estate in the event of the filing of a
bankruptcy petition by or against the Seller under any bankruptcy law. The Seller has not sold, transferred, assigned or pledged any Receivable to any Person other than the Depositor. Immediately prior to the transfer of the Receivables contemplated
by Section 2.1, the Seller had good and marketable title to the Receivables free and clear of any Lien, claim or encumbrance of any Person and, immediately upon such transfer, the Depositor shall have good and marketable title to the
Receivables free and clear of any Lien, claim or encumbrance of any Person. 
 (xiii) Security Interest
Matters. This Agreement creates a valid and continuing “security interest” (as defined in the Relevant UCC) in the Receivables in favor of the Depositor, which security interest is prior to all other Liens and is enforceable as such
against creditors of and purchasers from the Seller. With respect to each Receivable, the Seller has taken all steps necessary to perfect its security interest against the related Obligor in the related Financed Vehicle. The Receivables constitute
“tangible chattel paper” (as defined in the Relevant UCC). The Seller has caused or will cause prior to the Closing Date the filing of all appropriate financing statements in the proper filing offices in the appropriate jurisdictions under
applicable law necessary to perfect the security interest in the Receivables granted to the Depositor under this Agreement. Other than the security interest granted to the Depositor under this Agreement, the Seller has not pledged, assigned, sold,
granted a security interest in or otherwise conveyed any of the Receivables. The Seller has not authorized the filing of and is not aware of any financing statements against the Seller that include a description of collateral covering the
Receivables other than any financing statement relating to the security interest granted to the Depositor under the Sale and Servicing Agreement or that has been terminated. The motor vehicle retail installment sale contracts that constitute or
evidence the Receivables do not have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Depositor, the Issuer or the Indenture Trustee. The Seller is not aware of any judgment
or tax lien filings against the Seller. 
 (xiv) Financing Statements. All financing statements filed or
to be filed against the Seller in favor of the Indenture Trustee (as assignee of the Depositor and the Issuer) contain a statement substantially to the following effect: “A purchase of or security interest in any collateral described in this
financing statement will violate the rights of the Indenture Trustee.” 
 (xv) Valid Assignment. No
Receivable has been originated in, or is subject to the laws of, any jurisdiction under which the sale, transfer, assignment and conveyance of such Receivable under this Agreement or the Sale and Servicing Agreement or the pledge of such Receivable
under the Indenture is unlawful, void or voidable or under which such Receivable would be rendered void or voidable as a result of any such sale, transfer, assignment, conveyance or pledge. The Seller has not entered into any agreement with any
account debtor that prohibits, restricts or conditions the assignment of the Receivables. 
  

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 (xvi) One Original. There is only one original executed copy of each
Receivable. 
 (xvii) Principal Balance. Each Receivable had an original Principal Balance of not more
than $65,000 and a remaining Principal Balance as of the Cutoff Date of not less than $500. 
 (xviii) No
Bankrupt Obligors. As of the Cutoff Date, no Receivable was due from an Obligor that was the subject of a proceeding under the Bankruptcy Code of the United States or was bankrupt. 
 (xix) New and Used Vehicles. As of the Cutoff Date, approximately 1.23% of the Pool Balance related to Receivables
secured by new Financed Vehicles and approximately 98.77% of the Pool Balance related to Receivables secured by used Financed Vehicles. 
 (xx) Origination. Each Receivable was originated after June 19, 2004. 
 (xxi) Term to Maturity. Each Receivable had an original term to maturity of not more than 72 months and not less than 12 months and a remaining term to maturity as of the Cutoff Date of not more
than 71 months and not less than three months. 
 (xxii) Weighted Average Remaining Term to Maturity. As
of the Cutoff Date, the weighted average remaining term to maturity of the Receivables was approximately 58.82 months. 
 (xxiii) Annual Percentage Rate. Each Receivable has an APR of at least 4.45% and not more than 25.00%. 
 (xxiv) Location of Receivable Files. The Receivable Files are maintained at the location listed in Schedule 2 to the Sale and Servicing Agreement. 
 (xxv) Simple Interest Method. All payments with respect to the Receivables have been allocated consistently in
accordance with the Simple Interest Method. 
 (xxvi) No Delinquent Receivables. As of the Cutoff Date, no
payment due under any Receivable was more than 30 days past due. 
 (xxvii) Insurance. Each Obligor has
obtained or agreed to obtain physical damage insurance (which insurance shall not be force placed insurance) covering the related Financed Vehicle in accordance with the Seller’s normal requirements. 
 (xxviii) Fair Market Value. The Receivables Purchase Price represents the fair market value of the Receivables.

  

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 (xxix) Custodial Agreements. Immediately prior to the transfer of the
Receivables by the Seller to the Depositor, the Seller or an Affiliate of the Seller had possession of the Receivable Files and there were no, and there will not be any, custodial agreements in effect materially adversely affecting the right or
ability of the Seller to make, or cause to be made, any delivery required under this Agreement. 
 (xxx) Bulk
Transfer Laws. The transfer of the Receivables and the Receivable Files by the Seller to the Depositor pursuant to this Agreement is not subject to the bulk transfer laws or any similar statutory provisions in effect in any applicable
jurisdiction. 
 (c) The Seller shall indemnify the Purchaser and hold the Purchaser harmless against any losses, penalties,
fines, forfeitures, legal fees and related costs, judgments and other costs and expenses resulting from any third party claim, demand, defense or assertion based on or grounded upon, or resulting from, a breach of the Seller’s representations
and warranties set forth in Section 3.2(b). The Trustees shall also have the remedies provided in the Sale and Servicing Agreement. 
 (d) Any cause of action against the Seller relating to or arising out of the breach of any of its representations and warranties set forth in Section 3.2(b) shall accrue as to any Receivable
upon (i) discovery of such breach by the Purchaser or either Trustee or notice thereof by the Seller to the Purchaser, (ii) failure by the Seller to cure such breach and (iii) demand upon the Seller by the Purchaser for all amounts
payable in respect of such Receivable under this Agreement. 
 (e) The Purchaser or the Seller, as the case may be, shall inform
the other parties promptly, in writing, upon discovery of any breach of the Seller’s representations and warranties set forth in Section 3.2(b) which materially and adversely affects the interests of the Noteholders in any Receivable.

 (f) If a breach of any representation or warranty set forth in Section 3.2(b) which materially and adversely affects the
interests of the Purchaser, the Issuer or the Noteholders in any Receivable shall not have been cured by the close of business on the last day of the Collection Period which includes the thirtieth day after the date on which the Seller becomes aware
of, or receives written notice from the Servicer, the Purchaser or the Owner Trustee of, such breach or failure, the Seller shall repurchase such Receivable from the Purchaser on the Distribution Date following such Collection Period. In
consideration for the repurchase of any such Receivable, the Seller shall remit the Purchase Amount of such Receivable to the Purchaser. Upon any such repurchase, the Purchaser shall, without further action, be deemed to transfer, assign, set-over
and otherwise convey to the Seller, without recourse, representation or warranty, all the right, title and interest of the Purchaser in, to and under such repurchased Receivable and all other related assets described in Section 2.1. The
Purchaser shall execute such documents and instruments of transfer or assignment and take such other actions as shall reasonably be requested by the Seller to effect the conveyance of such Receivable pursuant to this Section. The sole remedy of the
Purchaser with respect to a breach of the Seller’s representations and warranties set forth in Section 3.2(b) shall be to require the Seller to repurchase the related Receivables pursuant to this Section. 
  

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 ARTICLE IV 
 CONDITIONS 
 SECTION 4.1 Conditions to Obligation of the Purchaser. The
obligation of the Purchaser to purchase the Receivables from the Seller on the Closing Date is subject to the satisfaction of the following conditions: 
 (a) Representations and Warranties True. The representations and warranties of the Seller contained herein and in the other Transaction Documents shall be true and correct on the Closing Date with
the same effect as if made on the Closing Date, and each of the Seller and the Servicer shall have performed all obligations to be performed by it hereunder and under the other Transaction Documents on or before the Closing Date. 
 (b) Computer Files Marked. The Seller shall, at its own expense, on or before the Closing Date, indicate in its computer files that
the Receivables have been sold to the Purchaser pursuant to this Agreement and deliver to the Purchaser the Receivables Schedule, certified by an officer of the Seller to be true, correct and complete. 
 (c) Release of Lenders. The Seller shall obtain executed release agreements and UCC partial releases with respect to the Receivables
from Bank of America, N.A. (and certain other parties) and CarMax Funding II, in each case in form and substance satisfactory to the Purchaser. 
 (d) Documents to be Delivered. The Purchaser shall have received the following, all of which shall be dated as of the Closing Date or such other date as specified: 
 (i) the Receivables Schedule; 
 (ii) an Officer’s Certificate of the Seller, in form and substance previously approved by the Purchaser and its counsel, as to, among other things, the representations and warranties of the Seller
and satisfaction of conditions precedent; 
 (iii) an opinion or opinions of counsel for the Seller, in form and
substance previously approved by the Purchaser and its counsel, addressed to the Purchaser; 
 (iv) [RESERVED];

 (v) copies of resolutions of the manager of the Seller approving the execution, delivery and performance of
the Transaction Documents to which the Seller is a party, and the performance of the transactions contemplated hereunder and thereunder, certified by the Secretary or an Assistant Secretary of the Seller; 
  

 13 

 (vi) copies of the certificate of formation of the Seller, together with all
amendments, revisions and supplements thereto, certified by the Delaware Secretary of State as of a recent date, and a certificate of good standing from the Delaware Secretary of State, dated as of a recent date, to the effect that the Seller has
been duly formed, is in good standing and has a legal existence; 
 (vii) UCC search reports from the appropriate
offices in Delaware as to the Seller; 
 (viii) reliance letters to each opinion of counsel to the Seller or the
Servicer delivered to Standard & Poor’s or Fitch in connection with the purchase of the Receivables hereunder or the issuance or sale of the Notes; 
 (ix) a financing statement to be filed with the Delaware Secretary of State, naming the Seller, as seller or debtor, the
Purchaser, as purchaser or secured party, and the Issuer as assignee, naming the Receivables and the related property described in Section 2.1 as collateral and meeting the requirements of the laws of each such jurisdiction and in such manner
as is necessary to perfect the sale, transfer, assignment and conveyance of the Receivables to the Purchaser; 
 (x) the Bill of Sale; and 
 (xi) such other documents, certificates and opinions as may be reasonably
requested by the Purchaser or its counsel. 
 (e) Execution of Transaction Documents. The Transaction Documents shall
have been executed and delivered by the parties thereto. 
 (f) Rating of the Notes. Fitch and Standard &
Poor’s, respectively, shall have assigned ratings of (i) ”F1+” and “A-1+” to the Class A-1 Notes, (ii) “AAA” and “AAA” to the Class A-2 Notes, the Class A-3 Notes and the
Class A-4 Notes, (iii) “A” and “A” to the Class B Notes and (iv) “BBB+” and “BBB-” to the Class C Notes. 
 (g) No Unsolicited Ratings. There shall not have been issued an unsolicited rating of any Class of Notes by any nationally recognized statistical rating agency at a level that is lower than the
ratings for such Class of Notes from Fitch or Standard & Poor’s specified in Section 4.1(f). 
 (h) Other
Transactions. The transactions contemplated by the Transaction Documents and the Underwriting Agreement shall be consummated on the Closing Date. 
  

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 SECTION 4.2 Conditions to Obligation of the Seller. The obligation of the Seller to
sell the Receivables to the Purchaser on the Closing Date is subject to the satisfaction of the following conditions: 
 (a)
Representations and Warranties True. The representations and warranties of the Purchaser contained herein and in the other Transaction Documents shall be true and correct on the Closing Date with the same effect as if then made, and the
Purchaser shall have performed all obligations to be performed by it hereunder and under the other Transaction Documents on or before the Closing Date. 
 (b) Payment of Receivables Purchase Price. In consideration of the sale of the Receivables from the Seller to the Purchaser as provided in Section 2.1, on the Closing Date the Purchaser shall
have paid to the Seller the Receivables Purchase Price. 
 (c) Opinions of Purchaser. An opinion or opinions of counsel
for the Purchaser addressed to the Seller and the Underwriters shall have been delivered. 
 ARTICLE V 
 COVENANTS OF THE SELLER 
 SECTION 5.1 Protection of Right, Title and Interest in, to and Under the Receivables. 
 (a) The Seller, at its
expense, shall cause all financing statements and continuation statements and any other necessary documents covering the Purchaser’s right, title and interest in, to and under the Receivables and other property conveyed by the Seller to the
Purchaser hereunder to be promptly authorized, recorded, registered and filed, and at all times to be kept recorded, registered and filed, all in such manner and in such places as may be required by law fully to preserve and protect the right, title
and interest of the Purchaser hereunder to the Receivables and such other property. The Seller shall deliver to the Purchaser file-stamped copies of, or filing receipts for, any document recorded, registered or filed as provided above, as soon as
available following such recording, registration or filing. The Purchaser shall cooperate fully with the Seller in connection with the obligations set forth above and will execute any and all documents reasonably required to fulfill the intent of
this subsection. 
 (b) Within five days after the Seller makes any change in its name, identity or organizational structure
which would make any financing statement or continuation statement filed in accordance with Section 4.1(d) seriously misleading within the meaning of the UCC as in effect in the applicable State, the Seller shall give the Purchaser notice of
any such change and, within 30 days after such change, shall authorize and file such financing statements or amendments as may be necessary to continue the perfection of the Purchaser’s security interest in the Receivables and the proceeds
thereof. 
 (c) The Seller shall give the Purchaser written notice within five days of any relocation of the State of
organization of the Seller or any office in which the Seller keeps records concerning the Receivables and whether, as a result of such relocation, the applicable provisions of the UCC would require the filing of any amendment of any previously filed
financing or continuation statement or of any new financing statement and, within 30 days after such relocation, shall authorize and file such financing statements or amendments as may be necessary to continue the perfection of the interest of the
Purchaser in the Receivables and the proceeds thereof. The Seller shall at all times maintain its State of organization, its principal place of business and its chief executive office and the location of the office where the Receivables Files and
any accounts and records relating to the Receivables are kept within the United States. 
  

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 (d) The Seller shall maintain accounts and records as to each Receivable accurately and in
sufficient detail to permit (i) the reader thereof to know at any time the status of such Receivable, including payments and recoveries made and payments owing (and the nature of each) and (ii) reconciliation between payments or recoveries
on (or with respect to) each Receivable. 
 (e) The Seller shall maintain its computer systems so that, from and after the time
of the transfer of the Receivables to the Purchaser pursuant to this Agreement, the Seller’s master computer records (including any back-up archives) that refer to a Receivable shall indicate clearly and unambiguously that such Receivable is
owned by the Purchaser (or, upon transfer of the Receivables to the Issuer, by the Issuer). Indication of the Purchaser’s ownership of a Receivable shall be deleted from or modified on the Seller’s computer systems when, and only when,
such Receivable shall have been paid in full or repurchased by the Seller. 
 (f) If at any time the Seller shall propose to
sell, grant a security interest in or otherwise transfer any interest in any motor vehicle retail installment sale contract to any prospective purchaser, lender or other transferee, the Seller shall give to such prospective purchaser, lender or
other transferee computer tapes, compact disks, records or print-outs (including any restored from back-up archives) that, if they shall refer in any manner whatsoever to any Receivable, shall indicate clearly and unambiguously that such Receivable
has been sold and is owned by the Purchaser (or, upon transfer of the Receivables to the Issuer, the Issuer), unless such Receivable has been paid in full or repurchased by the Seller. 
 (g) The Seller shall permit the Purchaser and its agents at any time during normal business hours to inspect, audit and make copies of and
abstracts from the Seller’s records regarding any Receivable. 
 (h) If the Seller has repurchased one or more Receivables
from the Purchaser or the Issuer pursuant to Section 3.2(f), the Seller shall, upon request, furnish to the Purchaser, within ten days, a list of all Receivables (by receivable number and name of Obligor) then owned by the Purchaser, together
with a reconciliation of such list to the Receivables Schedule. 
 SECTION 5.2 Security Interests. Except for the
conveyances hereunder, the Seller covenants that it will not sell, pledge, assign or transfer to any other Person, or grant, create, incur, assume or suffer to exist any Lien on any Receivable, whether now existing or hereafter created, or any
interest therein; the Seller will immediately notify the Purchaser of the existence of any Lien on any Receivable and, in the event that the interests of the Noteholders in such Receivable are materially and adversely affected, such Receivable shall
be repurchased from the Purchaser by the Seller in the manner and with the effect specified in Section 3.2(f), and the Seller shall defend the right, title and interest of the Purchaser in, to and under the Receivables, whether now existing or
hereafter created, against all claims of third parties claiming through or under the Seller. 
  

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 SECTION 5.3 Delivery of Payments. The Seller covenants and agrees to deliver in kind
upon receipt to the Servicer under the Sale and Servicing Agreement all payments received by the Seller in respect of the Receivables as soon as practicable after receipt thereof by the Seller. 
 SECTION 5.4 No Impairment. The Seller covenants that it shall take no action, nor omit to take any action, which would impair the
rights of the Purchaser in any Receivable, nor shall it, except as otherwise provided in this Agreement or the Sale and Servicing Agreement, reschedule, revise or defer payments due on any Receivable. 
 SECTION 5.5 Costs and Expenses. The Seller shall pay all reasonable costs and expenses incurred in connection with the perfection of
the Purchaser’s right, title and interest in, to and under the Receivables. 
 SECTION 5.6 Hold Harmless. The Seller
shall protect, defend, indemnify and hold the Purchaser and the Issuer and their respective assigns and their attorneys, accountants, employees, officers and directors harmless from and against all losses, costs, liabilities, claims, damages and
expenses of every kind and character, as incurred, resulting from or relating to or arising out of (i) the inaccuracy, nonfulfillment or breach of any representation, warranty, covenant or agreement made by the Seller in this Agreement,
(ii) any legal action, including any counterclaim, that has either been settled by the litigants (which settlement, if the Seller is not a party thereto shall be with the consent of the Seller) or has proceeded to judgment by a court of
competent jurisdiction, in either case to the extent it is based upon alleged facts that, if true, would constitute a breach of any representation, warranty, covenant or agreement made by the Seller in this Agreement, (iii) any actions or
omissions of the Seller or any employee or agent of the Seller occurring prior to the Closing Date with respect to any Receivable or Financed Vehicle or (iv) any failure of a Receivable to be originated in compliance with all requirements of
law. These indemnity obligations shall be in addition to any obligation that the Seller may otherwise have. 
 ARTICLE VI

 MISCELLANEOUS PROVISIONS 
 SECTION 6.1 Amendment. 
 (a) This Agreement may be amended from time to
time by a written amendment duly executed and delivered by the Purchaser and the Seller, without the consent of any Noteholder, to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision
herein or to add any other provision with respect to matters or questions arising under this Agreement which shall not be inconsistent with the provisions of this Agreement or the Sale and Servicing Agreement; provided, however, that
any such amendment shall not, as evidenced by an Opinion of Counsel to the Seller delivered to the Indenture Trustee, adversely affect in any material respect the interests of the Noteholders. 
  

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 (b) This Agreement may also be amended from time to time for any other purpose by a written
amendment duly executed and delivered by the Seller and by the Purchaser; provided, however, that any such amendment that materially adversely affects the interests of the Noteholders under the Indenture, the Sale and Servicing
Agreement or the Trust Agreement must be consented to by the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class. 
 (c) Promptly after the execution of any amendment to this Agreement, the Seller shall furnish written notification of the substance of such amendment to the Owner Trustee, the Indenture Trustee and the
Rating Agencies. 
 SECTION 6.2 Termination. The respective obligations and responsibilities of the Seller and the
Purchaser created hereby shall terminate, except for the indemnity obligations of the Seller as provided herein, upon the termination of the Issuer as provided in the Trust Agreement. 
 SECTION 6.3 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE
TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 SECTION 6.4 Notices. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly
given if personally delivered at or sent by telecopier, overnight courier or mailed by registered mail, return receipt requested, in the case of (i) the Purchaser, to CarMax Auto Funding LLC, 12800 Tuckahoe Creek Parkway, Suite 400, Richmond,
Virginia 23238, Attention: Treasurer, and (ii) the Seller, to CarMax Business Services, LLC, 12800 Tuckahoe Creek Parkway, Richmond, Virginia 23238, Attention: Treasury Department; or, as to either of such Persons, at such other address as
shall be designated by such Person in a written notice to the other Person. 
 SECTION 6.5 Severability of Provisions. If
any one or more of the covenants, agreements, provisions or terms of this Agreement shall for any reason whatsoever be held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants,
agreements, provisions and terms of this Agreement and shall in no way affect the validity or enforceability of the other covenants, agreements, provisions and terms of this Agreement or any amendment or supplement hereto. 
 SECTION 6.6 Further Assurances. The Seller and the Purchaser agree to do and perform, from time to time, any and all acts and to
execute any and all further instruments required or reasonably requested by the other party hereto or by the Issuer or the Indenture Trustee more fully to effect the purposes of this Agreement, including the execution of any financing statements,
amendments, continuation statements or releases relating to the Receivables for filing under the provisions of the UCC or other law of any applicable jurisdiction. 
  

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 SECTION 6.7 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Purchaser, the Issuer or the Seller, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and
privileges provided by law. 
 SECTION 6.8 Counterparts. This Agreement may be executed in two or more counterparts (and
by different parties on separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument. 
 SECTION 6.9 Third-Party Beneficiaries. This Agreement will inure to the benefit of and be binding upon the parties hereto, the Issuer and the Indenture Trustee for the benefit of the Noteholders,
who shall be considered to be third-party beneficiaries hereof. Except as otherwise provided in this Agreement, no other Person will have any right or obligation hereunder. 
 SECTION 6.10 Headings and Table of Contents. The Table of Contents and headings herein are for purposes of reference only and shall
not otherwise affect the meaning or interpretation of any provision hereof. 
 SECTION 6.11 Representations, Warranties and
Agreements to Survive. The respective agreements, representations, warranties and other statements by the Seller and by the Purchaser set forth in or made pursuant to this Agreement shall remain in full force and effect and will survive the
closing hereunder of the transfers and assignments by the Seller to the Purchaser and by the Purchaser to the Issuer and shall inure to the benefit of the Purchaser, the Trustees and the Noteholders. 
 SECTION 6.12 No Proceedings. The Seller covenants and agrees that so long as this Agreement is in effect, and for one year plus one
day following its termination, it will not file any involuntary petition or otherwise institute, or cooperate with or encourage others to institute, any bankruptcy, reorganization arrangement, insolvency or liquidation proceeding or other
proceedings under any federal or State bankruptcy law or similar law against the Issuer or the Owner Trustee. 
 SECTION 6.13
Accountant’s Letters. 
 (a) The Seller shall cause a firm of independent certified public accountants (who may also
render other services to the Seller) to perform certain procedures regarding the characteristics of the Receivables described in the Receivables Schedule and to compare those characteristics to the information with respect to the Receivables
contained in the Prospectus. The Seller shall cooperate with the Purchaser and such accountants in making available all information and taking all steps reasonably necessary to permit such accountants to complete such procedures and to deliver the
letters required of them under the Underwriting Agreement. 
  

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 (b) The Seller shall cause a firm of independent certified public accountants (who may also
render other services to the Seller) to deliver to the Purchaser a letter dated February 9, 2010 in the form previously agreed to by the Seller and the Purchaser, with respect to the financial and statistical information contained in the
Prospectus under the caption “CarMax—Delinquency, Credit Loss and Recovery Information” and with respect to such other information as may be agreed in the forms of such letters. 
 SECTION 6.14 Obligations of Purchaser. The obligations of the Purchaser under this Agreement shall not be affected by reason of any
invalidity, illegality or irregularity of any Receivable. 
 [SIGNATURE PAGE FOLLOWS] 
  

 20 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective officers as of the day and year first above written. 
  

			
	 CARMAX BUSINESS SERVICES, LLC,
as Seller

		
	By:	 	/s/ Keith D. Browning
		 	 Name: Keith D. Browning
 Title: Chief Financial Officer

  

			
	 CARMAX AUTO FUNDING LLC,
as Purchaser

		
	By:	 	/s/ Thomas W. Reedy
		 	 Name: Thomas W. Reedy
 Title: Treasurer

  

 S-1 
 Receivables Purchase AgreementDevelopment, Supply and Distribution Agreement

 Exhibit 10.1 
 [***] A CONFIDENTIAL PORTION OF THIS EXHIBIT HAS BEEN OMITTED AND 
 FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 DEVELOPMENT, SUPPLY AND DISTRIBUTION AGREEMENT 
 THIS DEVELOPMENT, SUPPLY AND DISTRIBUTION AGREEMENT (this
“Agreement”) is made effective as of June 22, 2009 (the “Effective Date”) between Cambridge Heart, Inc. (“CHI”), a Delaware corporation having its principal place of business at 100 Ames Pond
Road, Tewksbury, MA 01876, and Cardiac Science Corporation (the “Distributor”), a Delaware corporation having its principal place of business at 3303 Monte Villa Parkway, Bothell, WA, 98021. CHI and Distributor are each referred to
individually as a “Party” and together as the “Parties.”  
 WHEREAS, Distributor is
engaged in the design, development, manufacture and sale of a cardiac stress test system known as the Stress System (the “Stress System”); 
 WHEREAS, CHI is engaged in the design, development, manufacture and sale of medical devices, equipment, related hardware, software and accessories used to perform CHI’s Analytic Spectral Method, a
proprietary Microvolt T-Wave Alternans (“MTWA”) test for the purpose of identifying patients at risk for Sudden Cardiac Arrest (the “MTWA Test”); 
 WHEREAS, Distributor desires to sell CHI’s MTWA Test initially as a stand-alone module for use in connection with Distributor’s
Stress System and, upon completion of the Integrated ASM Development Plan (as defined below) and receipt of any and all applicable regulatory approvals and clearances, as an integrated component of Distributor’s Stress MTWA System, and
Distributor desires to obtain from CHI a supply of the software, related hardware and Sensor Test Kits necessary to conduct a MTWA Test with the Stress MTWA System; and 
 WHEREAS, CHI desires to supply to Distributor such software, related hardware and Sensor Test Kits pursuant to the terms and conditions set forth herein; 
 NOW, THEREFORE, CHI and Distributor, intending to be legally bound, hereby agree as follows: 
 1. DEFINITIONS. As used in this Agreement, the following capitalized terms shall have the following meanings: 
 (a) “Act” means the United States Food, Drug and Cosmetic Act and the regulations promulgated thereunder, as amended from
time to time. 
 (b) “Analytic Spectral Method Software” means CHI’s MTWA measurement software application
using CHI’s proprietary Analytical Spectral Method for the purpose of identifying patients at risk for Sudden Cardiac Arrest, CHI’s proprietary data formats, and CHI’s methods for unpacking data from CHI’s proprietary data
formats. 

 (c) “Annual Forecast Report” shall have the meaning ascribed thereto in
Section 3(a). 
 (d) “ASM Software” means the Analytic Spectral Method Software as customized pursuant to
the terms of this Agreement for installation on and use with the Stress MTWA System. ASM Software also includes all modifications, derivative works, changes and improvements made to the ASM Software by CHI, including all error corrections, bug
fixes, new versions, releases, updates, and upgrades thereto. 
 (e) “Business Day” means any day other than a
Saturday, Sunday, or other day on which most or all commercial banks are closed in New York, New York. 
 (f) “CHI
Intellectual Property” means the Intellectual Property rights of CHI used by CHI in the development, manufacture, distribution or sale of the Products. 
 (g) “Cost of Goods Sold” means the cost of goods sold recognized by Distributor from the sale of Products to Stress MTWA System Purchasers in accordance with the terms of this Agreement,
calculated in accordance with GAAP, except, however, that cost of goods for the purposes of Section 3(j) will include any third party distribution costs Distributor may incur in the sale of Products. 
 (h) “Development Work” means the development work carried out pursuant to the Non-Integrated Product Development Plan or
the Integrated ASM Development Plan, as the case may be. 
 (i) “Event of Bankruptcy” shall have the meaning
ascribed thereto in Section 14(c). 
 (j) “FDA” means the Food and Drug Administration of the United
States Department of Health and Human Services, or any successor thereto having administrative authority to regulate the marketing of medical devices in the United States of America. 
 (k) “FDA Approval” means clearance for marketing by the FDA under Section 510(k) of the Act, 21 U.S.C. §360(k),
and 21 C.F.R. Part 807, Subpart E, or FDA premarket approval granted in accordance with 21 U.S.C. § 360e and 21 C.F.R. Part 814. 
 (l) “Field” means cardiac stress testing, including without limitation, exercise, pharmacology, nuclear and pacing. 
 (m) “Gross Profit” means Net Sales minus Cost of Good Sold. 
 (n)
“Installation Training Service” shall have the meaning ascribed thereto in Section 8(c). 
 (o)
“Integrated ASM Development Plan” shall have the meaning ascribed to such term in Section 2(e). 
 (p)
“Intellectual Property” means any U.S. or foreign patents and patent applications (including any substitutions, extensions, reissues, renewals, divisionals, or

 
continuations); trademarks, service marks and registrations thereof and applications therefore; copyrights and copyright registrations and applications; mask works and registrations thereof; all
discoveries, innovations, ideas, inventions, technology, techniques, methods, know-how, trade secrets, processes, formulas, specifications, drawings and designs, computer programs or software, including all amendments, modifications, and
improvements to any of the foregoing, and any other proprietary information. 
 (q) “MTWA Test Module” means
all components necessary to use CHI’s MTWA Test with Distributor’s Stress System as a stand-alone or integrated component, as the case may be, including the Patient Cable, the PDAM and the ASM Software but excluding the Sensors.

 (r) “NDA” means that certain non-disclosure agreement between CHI and Distributor dated as of
September 5, 2008. 
 (s) “Net Sales” means the invoiced sales price charged for the Products sold by
Distributor to end-users of MTWA Test Modules sold by Distributor in accordance with the terms of this Agreement, minus allowances, returns, refunds, rebates, credits, discounts, taxes, tariffs and duties, and non-reimbursable shipping and handling
charges. For the avoidance of doubt, “Net Sales” shall accrue no earlier than the date that the customer’s payment of the invoiced amount clears to Distributor’s bank account. In cases where Products are bundled or integrated
with other products or services, “Net Sales” shall be the proportionate contribution of the Products to the total invoiced sales price for the bundled or integrated offering. 
 (t) “Non-Integrated Product Development Plan” means the document attached hereto as Appendix B. 
 (u) “Patient Cable” means the Sensor connector cabling used to acquire the electrocardiogram (“ECG”) and
other signals from the Sensors and to transmit the signals to the PDAM. 
 (v) “PDAM” means the active patient
data acquisition module used to record the ECG and other signals of patients for measurement of MTWA and to send the signal to the host cardiac stress test system via an integrated data cable. 
 (w) “Products” means the MTWA Test Module, Sensor Test Kits and any other product that can be ordered by Distributor as
listed in Appendix A (CHI Products and Purchase Prices). 
 (x) “Product Launch Date” means the date on
which Distributor introduces the MTWA Test Module on the Stress MTWA System for purchase generally by end-user customers. 
 (y)
“Purchase Order” means a purchase order released by Distributor for Products, including the MTWA Test Module and Sensor Test Kits. 
 (z) “Purchase Prices” shall have the meaning ascribed thereto in Section 4(a). 

 (aa) “Quarterly Forecast Amount” shall have the meaning ascribed thereto in
Section 3(a). 
 (bb) “Sensor” means a single-use disposable Micro-V Alternans sensor for the surface
recording of a patient’s ECG and other signals and used with the MTWA Test Module. 
 (cc) “Sensor Test
Kit” means a package of Sensors and related accessories developed and manufactured by or for CHI for use in a single MTWA Test. 
 (dd) “Shipping Point” means (i) the common carrier designated by Distributor in the Purchase Order or (ii) if CHI does not use Distributor’s designated carrier,
Distributor’s facility at the address set forth in the Purchase Order. 
 (ee) “Specifications” means the
product uses, characteristics, design requirements, processing, labeling and packaging requirements, protocols and standards pertaining to the manufacture, supply or use of the MTWA Test Module contained in the Non-Integrated Product Development
Plan or the Integrated ASM Development Plan, as the case may be, in each case as may be modified and supplemented from time to time by the mutual written agreement of the Parties. 
 (ff) “Starter Test Kit” means a package of ten (10) Sensor Test Kits. 
 (gg) “Steering Committee” shall have the meaning ascribed thereto in Section 2(c). 
 (hh) “Stress MTWA System” means the version of Distributor’s Stress System or alternative, derivative or successor
stress system that includes the MTWA Test Module. 
 (ii) “Stress MTWA System Purchasers” means end-user
customers who purchase a Stress MTWA System and/or a MTWA Test Module from Distributor, its distributors or sub-distributors in accordance with the terms of this Agreement. 
 (jj) “Territory” means worldwide. 
 2. PROJECT DEVELOPMENT. 
 (a) CHI Responsibilities. CHI shall
use its commercially reasonable efforts (i) to design, develop, and test the MTWA Test Module according to the Specifications and on the development schedule set forth in the Non-Integrated Product Development Plan, (ii) to carry out the
other activities assigned to CHI in the Non-Integrated Product Development Plan and (iii) upon the Parties’ mutual execution of the Integrated ASM Development Plan, to meet CHI’s obligations under the Integrated ASM Development Plan
on the development schedule set forth in the Integrated ASM Development Plan. 
 (b) Distributor Responsibilities.
Distributor shall use its commercially reasonable efforts (i) to assist CHI in performing its activities under the Non-Integrated Product Development Plan, and (ii) to furnish to CHI in accordance with the schedule set forth in the
Non-Integrated Product Development Plan, the design requirements and other data as may be necessary to allow CHI to develop the MTWA Test Module and to interface the MTWA Test

 
Module with the Stress System, (iii) to carry out the other activities assigned to Distributor in the Non-Integrated Product Development Plan, and (iv) upon the Parties’ mutual
execution of the Integrated ASM Development Plan, to meet Distributor’s obligations under the Integrated ASM Development Plan on the development schedule set forth in the Integrated ASM Development Plan. 
 (c) Steering Committee. The Parties shall establish a Steering Committee consisting of two (2) members, one representative
designated by each Party. The proposed initial representatives are Ali Haghighi-Mood (CHI) and Bob Odell (Distributor). The Steering Committee shall, unless agreed otherwise in writing by the Parties, be responsible for: (i) updating or
modifying by mutual written agreement, as may be required from time to time, the Non-Integrated Product Development Plan, including the Specifications contained therein, and the Integrated ASM Non-Integrated Product Development Plan, including the
Specifications contained therein; (ii) monitoring the conduct of the Development Work and the progress and results according to the Non-Integrated Product Development Plan and the Integrated ASM Development Plan; (iii) mutually agreeing in
writing to corrections or modifications to the Specifications; (iv) deciding other issues of importance on behalf of each of the Parties relating to the Development Work under the Non-Integrated Product Development Plan or the Integrated ASM
Development Plan. The Steering Committee shall meet regularly based on the project needs and status of the Development Work to discuss and resolve any issues or problems. These meetings may be held in person or by teleconference. Each Party shall
bear its own communication and travel costs in connection with the Development Work. 
 (d) Product Launch. It is
estimated that the Development Work under the Non-Integrated Product Development Plan will be completed and the Product Launch Date will take place on or before September 30, 2010. 
 (e) Integrated ASM Development Plan. Following the Product Launch Date and subject to Distributor’s determination of the market
need and customer demand, the Parties will work together in good faith to prepare a mutually agreeable plan for the development of an alternative version of the ASM Software that will be fully integrated with the Stress MTWA System software platform
(the “Integrated ASM Development Plan”). Distributor will have primary responsibility, with reasonable assistance from CHI, for the development of a software interface between the ASM Software and the Stress MTWA System allowing for
the integration of the ASM Software with the Stress MTWA System. The Integrated ASM Development Plan in the form approved and signed by the Parties will be attached to this Agreement as Appendix C. Until such time, this appendix shall remain
empty other than the Appendix title page. In the event that the Parties are unable to reach an agreement regarding the terms of the Integrated ASM Development Plan, the remaining terms of this Agreement shall continue in full force and effect
without change. The Parties contemplate that the Integrated ASM Development Plan will, among other things: 
 (i)
define the responsibilities of each of the Parties in developing the integrated ASM Software and the schedule for performing such activities, including timing, milestone schedules, scope of work, specifications, allocation of development costs,
general quality and regulatory requirements and other relevant terms and information, including the Parties respective ownership rights in the work product contemplated by the Integrated ASM Development Plan; 

 (ii) specify the obligations of CHI to provide Distributor with access to
the ASM Software source code necessary to create the user interfaces to the Stress MTWA System (excluding the formulaic algorithm code contained in the ASM Software); 
 (iii) specify the obligations of CHI to provide technical support during the development of the integrated ASM Software,
including at least two trips to Distributor’s development center and two man-weeks of onsite engineering support if reasonably requested by Distributor; and 
 (iv) specify the obligations of CHI to provide a reasonable number of MTWA Test Modules necessary to facilitate
Distributor’s development efforts under the Integrated ASM Development Plan. 
 (f) Escrow. The Parties shall enter
into a technology escrow agreement (the “Escrow Agreement”) within ninety (90) days of the Effective Date with a mutually acceptable independent escrow agent in the United States. The Escrow Agreement shall require CHI to
deposit and maintain a complete and current copy of the following deposit materials (the “Deposit Materials”): (i) the formulaic algorithm code (in object and source code form) contained in the ASM Software and (ii) the
specifications and Intellectual Property related to the Sensors (in each case suitable to enable Distributor to manufacture or have manufactured the Products) in the escrow semiannually. The following events shall be triggering events with respect
to the release of the Deposit Materials under the Escrow Agreement (a “Triggering Event”): 
 (i) CHI ceases to do business and no successor has agreed to assume CHI’s obligations to Distributor, 
 (ii) CHI is in material breach of any of the Product manufacturing, supply, or warranty provisions of Sections 3(b) or 7 of this Agreement and fails to cure that breach within sixty (60) days after written notice thereof, 

(iii) CHI files for liquidation under the U.S. Bankruptcy Code or other similar legislation in another jurisdiction, or

 (iv) CHI files for reorganization under the U.S. Bankruptcy Code or other similar legislation in another
jurisdiction and does not remain debtor in possession or trustee of the estate. 
 If a Triggering Event occurs and there is a release of
Deposit Materials to Distributor in accordance with the terms and conditions of the Escrow Agreement, Distributor shall have the right to use the Deposit Materials solely in accordance with the terms and conditions of Section 3(i) of this
Agreement and Distributor agrees not to exercise its rights under Section 3(i) of this Agreement unless and until the occurrence of a Triggering Event. 

 (g) Development Expenses. Except as otherwise set forth in this Agreement, including
the Development Plan and the Integrated ASM Development Plan, each Party shall bear its own expenses with respect to the Development Work. 
 3. PURCHASE AND SALE OBLIGATIONS. 
 (a) Forecasts. At least 60 days before the Product Launch Date and
thereafter at least 60 days before each calendar quarter, Distributor shall provide to CHI a rolling forecast of its anticipated Product needs for the next year (the “Annual Forecast Report”), including Distributor’s forecast
for the next calendar quarter and each of the subsequent three (3) calendar quarters. The Annual Forecast Report shall not create any binding obligation on the part of Distributor to purchase the amount of Product forecast in such report. In
any calendar quarter, CHI shall not be required to supply hereunder more than the lower of (i) the quantity of Products for the calendar quarter forecast in the most recent Annual Forecast Report delivered at least 60 days before such calendar
quarter and (ii) 125% of the quantity of such Products purchased by Distributor in the preceding quarter (the “Quarterly Forecast Amount”). 
 (b) Manufacture and Supply. Upon completion of the Development Work under the Non-Integrated Product Development Plan, subject to the terms and conditions of this Agreement, CHI agrees to
manufacture (or have manufactured on its behalf) and supply to Distributor the Products. Lead times for the Products are set forth in Appendix A. 
 (c) Third Party Manufacturers. CHI may use a third party manufacturer to manufacture any Product, with or without the approval of Distributor. If CHI uses a third party manufacturer to manufacture
any Product, CHI shall enter into a binding written agreement with such manufacturer (a “Third Party Agreement”) prior to the provision of any Distributor Confidential Information to such third party. Such Third Party Agreement
shall (i) provide for the protection of any Distributor Confidential Information provided to such third party manufacturer on substantially equivalent terms to those contained in this Agreement and (ii) provide limitations on the
disclosure and use of such Distributor Confidential Information that are substantially equivalent to those contained in this Agreement. CHI shall be responsible for any acts or omissions of such third parties in breach of CHI’s representations,
warranties and obligations under this Agreement to the same extent as if CHI had committed the breach itself. CHI shall use commercially reasonable efforts to monitor and enforce its Third Party Agreements as required to ensure the adequate
protection of Distributor’s rights and Distributor’s Confidential Information and shall promptly notify Distributor of any actual or suspected breach thereof. 
 (d) Resale of Products. Distributor may resell the Products in accordance with the terms of this Agreement through both its direct sales force and through its distributors and sub-distributors in
its distribution network. Distributor shall only sell CHI approved parts (i.e., cables, sensors, etc.) for use in connection with any MTWA Test Module. 
 (e) Commitment to Purchase. Distributor’s commitment to purchase Products from CHI shall be limited to Purchase Orders released by Distributor and accepted by CHI pursuant to Section 5.
Unless agreed otherwise in writing by the Parties, Distributor shall not be responsible or in any way liable to CHI or any third party with respect to any material commitments or production arrangements in excess of the amounts or in advance of the
times necessary to meet Distributor’s delivery schedules set forth in its accepted Purchase Orders. 

 (f) Field and Territory. The MTWA Test Module and the components thereof purchased by
Distributor from CHI under this Agreement shall only be used or sold by Distributor as components in, incorporated into, or integrated with Distributor’s Stress Systems for use in the Field by end-user customers in the Territory. Distributor
shall use commercially reasonable efforts to ensure that the MTWA Test Module and the components thereof shall only be resold, leased, rented, licensed or otherwise transferred by Distributor, its distributors or its sub-distributors to end-user
customers located in the Territory for use as part of a Stress System. The MTWA Test Module may be sold by Distributor, its distributors or its sub-distributors separately in the form of an upgrade to Stress Systems that have previously been
installed with end-user customers or as a component of a new Stress MTWA System. Distributor shall use commercially reasonable efforts to ensure that the Sensor Test Kits shall only be sold or otherwise transferred to Stress MTWA System Purchasers.
For the avoidance of doubt, nothing in this Agreement or this Section shall be construed as a limitation on the market segment or customer type to whom Distributor is permitted to sell Products. Distributor is expressly authorized hereby to sell
Products to any customer located in the Territory that has or is purchasing a Stress System. 
 (g) CHI Distribution
Rights. Distributor acknowledges and agrees that its right to resell CHI’s MTWA Test Modules pursuant to the terms and conditions of this Agreement is non-exclusive and that CHI may, whether through its direct sales force, distributors
and/or sub-distributors or otherwise, sell, distribute and license to other third parties both generic and customized versions of CHI’s MTWA Test Modules (including CHI’s Analytic Spectral Method Software, PDAM, Patient Cables and Sensors)
to meet the needs of other OEM customers and end-users. Nothing in this Agreement shall prohibit CHI from continuing to sell, distribute or license these products or components thereof to distributors or customers other than Distributor. CHI shall
not sell Sensors or Sensor Test Kits for use with a Stress System. 
 (h) Sensors. Sensor Test Kits sold by CHI to
Distributor for use with MTWA Test Modules and Stress MTWA Systems shall bear the name of both CHI and Distributor on the packaging and shall be marked with a unique part number for sales tracking purposes. The Sensor Test Kits sold by CHI to
Distributor hereunder shall be customized such that the Sensors in any Sensor Test Kit only function when used for or conjunction with the components of a Distributor Stress System. Other sensors produced or sold for or by CHI that are not intended
for use with Stress MTWA System must be engineered and sold in a form or configuration that will not function when used for or in conjunction with the MTWA Test Modules sold to Distributor under this Agreement for use with a Stress MTWA System.

 (i) Alternative Manufacture and Supply. In the event that a Triggering Event occurs and there is a release of Deposit
Materials to Distributor in accordance with the terms and conditions of the Escrow Agreement, then (A) Distributor may elect to purchase Products directly from any third party manufacturer of the Products in lieu of purchasing them from CHI
hereunder, (B) at Distributor’s request, CHI shall provide Distributor with the Specifications relating to the Products and any Intellectual Property in CHI’s possession or control necessary to manufacture the Products, and
(C) CHI automatically grants to Distributor a non-exclusive,

 
non-transferable license to use any CHI Intellectual Property necessary to manufacture or have manufactured the Products solely for the purpose of manufacturing, selling, servicing and repairing
the Products for Stress MTWA System Purchasers in the Territory, in each case, subject to the payment by Distributor to CHI of the commissions set forth in Section 3(j). Except with respect to the manufacture and sale of the Sensors and Sensor
Test Kits, Distributor’s rights under this Section 3(i) shall terminate upon the expiration or termination of this Agreement or (y) the expiration of the Initial Term (whichever occurs later). Distributor shall treat the Deposit
Materials and any other CHI Intellectual Property provided to Distributor under this Section 3(i) as CHI Confidential Information in accordance with the terms of Section 16 of this Agreement. 
 (j) CHI Sensor Commission. To the extent that Distributor exercises its right pursuant to Section 3(i) to manufacture or have
manufactured any Products for sale to Stress MTWA System Purchasers in the Territory, Distributor shall pay CHI a commission equal to [***] percent ([***]%) of the Gross Profit realized by Distributor for such Products. Distributor shall pay such
commissions to CHI on a calendar quarterly basis. With such quarterly payments, Distributor shall provide to CHI a list of Distributor customers to which such sales were made, the number of Sensors and Sensor Test Kits and other Products sold in
that quarter, and the calculation of the Gross Profit realized from the sale of Sensors and Sensor Test Kits and other Products by Distributor. All such information shall be treated as Distributor Confidential Information in accordance with the
terms of this Agreement. This quarterly payment shall be provided to CHI no later than 30 days following the end of each calendar quarter. Distributor shall keep full and accurate records and books of account containing all necessary information to
calculate the commission due hereunder. Distributor shall permit an independent certified public accountant selected by the mutual agreement of the Parties to examine its records and books of account for the two (2) year period prior to the
date of the audit to determine compliance with Section 3(j). Any examination shall be at the expense of CHI, shall occur during regular business hours at Distributor’s offices after reasonable notice, and shall not interfere unreasonably
with Distributor’s regular activities. Distributor agrees to pay to CHI any amounts owing as a result of Distributor’s non-compliance with the payment provisions of Section 3(j), and CHI shall return any amounts overpaid by
Distributor, within thirty (30) days of the date of the examination report, which details such non-compliance. In the event the amount owed by Distributor to CHI during the audited period exceeds five percent (5%) of total commissions due,
Distributor shall pay the reasonable out of pocket costs of such examination. 
 (k) Branding. All Products sold to
Distributor hereunder shall be packaged, labeled and branded in accordance with the Specifications contained in the Non-Integrated Product Development Plan or the Integrated ASM Development Plan, as the case may be. 
 4. PRICES. 
 (a)
Purchase Prices. The prices of the Products purchased by Distributor hereunder (the “Purchase Prices”) shall be as set forth in Appendix A. The Purchase Price for the MTWA Test Module set forth in Appendix A
includes the Installation Training Service and Starter Test Kit described in Section 8(c). The Purchase Prices are exclusive of any shipping charges or any tax, duties, excise or governmental charges that CHI may be required to collect or pay
upon shipment or delivery of the Products, which shall appear as a separate line item on CHI’s invoice for the Products. 

 (b) Purchase Price Changes. The Purchase Prices set forth in Appendix A shall
be reviewed twelve (12) months following the first delivery of Products by CHI hereunder (“First Delivery Date”) and annually thereafter. Except as expressly provided herein, any price adjustment shall become effective only
upon the mutual agreement of the Parties. Twelve (12) months after the First Delivery Date, and annually thereafter during the Term, CHI shall furnish to Distributor a schedule of its costs associated with the production and delivery of each
Product as of the date of the schedule (the “Cost Schedule”), the accuracy and completion of which shall be certified by an officer of CHI. CHI shall be available to meet with Distributor and discuss matters related to the Cost
Schedule promptly following Distributor’s request. The parties agree that the Purchase Price for each Product shall be reduced or increased by 50% of the dollar value of CHI’s reduced or increased cost, if any, relating to each such
Product, as shown by comparing the then-current Cost Schedule with the previous Cost Schedule. Any such Purchase Price reductions or increases shall be effective as of the first day of the next calendar month. For example, cost reductions or
increases reflected in the first Cost Schedule delivered on June 30, 2010 and the second Cost Schedule delivered on June 30, 2011 shall change the Purchase Prices of Products effective July 1, 2011. If the parties are unable to
mutually agree on such pricing adjustments, the supply of Products shall continue unabated at the then-current Purchase Prices and any pricing adjustment shall be resolved in accordance with the dispute resolution provisions contained in this
Agreement. 
 (c) CHI Software License. The Purchase Price for the Products includes a perpetual, paid-up, non-exclusive
license to Distributor and its distributors, sub-distributors and end-users of the Products, or Distributor’s products containing the Products, to use in the operation of the Products any software and/or firmware supplied by CHI to Distributor
or incorporated into the Products, including the ASM Software. CHI hereby grants to Distributor license rights required to sell the Products in accordance with the terms of this Agreement. All rights granted hereunder shall survive any termination
of this Agreement as long as the applicable party remains in compliance with the terms for use of such Products. Title to and ownership of any and all proprietary rights in or related to such software and firmware shall at all times remain with CHI
or its licensor(s). Nothing in this Agreement shall be construed as a sale of any rights in such software or firmware, including ASM Software or the related documentation. Distributor shall not disassemble, decompile or otherwise reverse engineer
the software or any part thereof, except if CHI is required under applicable law to permit such reverse engineering. In such event, Distributor may reverse engineer the software but only to the extent CHI is required to permit such reverse
engineering. Distributor shall retain and shall not alter or obscure any notices, markings or other insignia affixed to the ASM Software, the documentation related thereto or any part thereof at the time it receives such ASM Software or related
documentation (so long as such notices, markings or other insignia are not inconsistent with the branding specifications set forth in the Non-Integrated Product Development Plan or Integrated ASM Development Plan, as applicable). 
 5. PURCHASE ORDERS AND TERMS OF SALE. 
 (a) Order Contents. Purchase Orders released by Distributor to CHI shall be in the form attached hereto as Appendix D and shall include (i) reference to this Agreement,
(ii) identification of Products ordered, (ii) quantity of each Product, (iii) requested delivery date consistent with the lead times specified in Appendix A, and (iv) shipping instructions and shipping address. 

 (b) Order Acceptance. CHI shall accept Purchase Orders if they are placed by
Distributor under agreed prices and other conditions of this Agreement. CHI may reject any Purchase Order of Distributor if the requested delivery time is shorter than the agreed upon lead time, the quantity ordered exceeds the Quarterly Forecast
Amount or the Purchase Order is not otherwise in compliance with this Agreement. Purchase Orders shall be acknowledged by CHI within five (5) days after receipt of the Purchase Order, provided that the Purchase Order is technically correct and
that the requested delivery time is within the agreed lead time and the Quarterly Forecast Amount. The terms and conditions of this Agreement shall govern and supersede any additional or contrary terms set forth in Distributor’s purchase order
or any CHI acceptance, acknowledgment, invoice or other document, unless the specific additional or contrary terms are stated in writing and duly signed by an officer of Distributor and an officer of CHI. 
 (c) Modification of Orders. Upon acceptance by CHI, no Purchase Order may be modified or canceled except upon the mutual agreement of
the Parties. Mutually agreed change orders shall be subject to all of the provisions of this Agreement, whether or not the changed Purchase Order so states. 
 (d) Content of Invoice. CHI’s invoices shall contain the Purchase Order release number, invoice quantity by Product, Product unit price, total invoice amount, name of CHI, phone number,
address to which remittance should be sent, shipping, insurance and tax charges, if any (separately itemized), and such other information as may reasonably be required by Distributor. 
 (e) Payment. Unless otherwise agreed in writing, payment for all Products shall be made by Distributor in the currency specified in
Appendix A within 30 days after the date of Distributor’s receipt of CHI’s correct and undisputed invoice, provided that the quantity and quality of the Products delivered conforms to this Agreement and the respective Purchase
Order. Any late payments of undisputed amounts shall bear interest at one percent (1.5%) per month. 
 (f) Shipment.
All Products sold by CHI to Distributor shall be shipped by CHI free on board (F.O.B.) the Shipping Point. CHI shall be responsible for ensuring that Products are packaged in accordance with industry standard practices and in a manner reasonably
calculated to ensure that they arrive in undamaged condition. CHI shall bear all risk of loss prior to CHI’s delivery of the Products, in good condition, to the Shipping Point and shall have no further risk of loss for the Products after it has
delivered the Products to the Shipping Point. Distributor assumes all risk of loss upon CHI’s delivery of the Products to the Shipping Point. Distributor shall pay all shipping, insurance, taxes, and all other similar charges applicable to the
Products after they are delivered by CHI to the common carrier. All such charges shall be passed along by CHI without markup or premium, and no additional handling or packaging or similar charges shall be assessed by CHI in connection with any
order. All shipping insurance shall name Distributor as the sole loss beneficiary in the event that the risk of loss has been assumed by Distributor (i.e., CHI ships the Products using Distributor’s designated carrier) and shall name CHI as the
sole loss beneficiary in the event that risk of loss has not been assumed by Distributor (i.e., CHI ships the Products using a carrier other than that designated by Distributor). Any claims for shipping damage shall be submitted by Party that is the
named loss beneficiary to the common carrier, and upon request the other Party will provide reasonable assistance in filing claims with the carrier. 

 (g) Inspection; Returns. CHI shall test or qualify Products (including all component
parts where such parts are subject to separate authorization or qualification) to meet all applicable Specifications prior to shipment. All Products are subject to inspection and acceptance at destination, notwithstanding any prior payments or
inspection. Distributor shall be deemed to have accepted the Products only in the event that Distributor: (A) fails to accept or reject the Products within ten (10) Business Days of delivery to Distributor; (B) explicitly accepts the
Products in writing; or (C) delivers the Products to any customer. 
 (i) Distributor may perform such tests
it deems necessary to determine if the Products are acceptable. If, upon inspection, Distributor reasonably determines that the Products are defective or otherwise fail to comply with the Specifications, Distributor may reject an entire lot based
upon a sampling or inspect all units of the lot. Any such lot may be returned to CHI for one hundred percent (100%) retesting or requalification within five (5) days of delivery at CHI’s cost. After the retesting or requalification by
CHI, the lot may be re-inspected by Distributor. 
 (ii) Distributor’s acceptance of any Products shall in
no way be construed as a representation by Distributor that Distributor has completely tested the Products or that such Products comply with their Specifications or conform to any other warranties made by CHI under this Agreement. Distributor’s
acceptance of any Product shall in no way negate any warranty provided under this Agreement or affect any other provision of this Agreement. Acceptance is only to be used to determine whether CHI is entitled to receive payment for the Products.

 (h) Quarterly Sales Report. Within thirty (30) days following the end of each calendar quarter, Distributor shall
provide to CHI a report indicating the number of Stress MTWA Systems and/or MTWA Test Modules and the number of Sensor Test Kits sold during the calendar quarter, including the name and location of the customer to which the system, modules or kits
were sold, the shipment and installation dates, the purchase price for the MTWA Test Module and/or Stress MTWA System (including the resale price attributable to the MTWA Test Module) or the Sensor Test Kits, the serial numbers for each of the
components included in the MTWA Test Module. All such information shall be treated as Distributor Confidential Information in accordance with the terms of this Agreement. CHI acknowledges that some Products will be sold by Distributor via
third-party distributors and that Distributor will not be responsible for the accuracy of information provided to CHI by Distributor under this Section 5(h) based upon reports from such third-party distributors. 
 6. DOCUMENTATION. 
 (a)
Product Documentation. CHI agrees to provide Distributor with such product literature, operations and maintenance manuals, and other information as is reasonably necessary to enable Distributor to properly sell and maintain Products, provided
that in no event shall the source code of any software of CHI be required to be disclosed or provided by CHI to

 
Distributor pursuant to this Section 6(a). CHI shall be responsible for ensuring that all shipments of Product to Distributor include the applicable product literature, warranties, licenses,
operations and maintenance manuals, and other documentation for the customer’s use as set forth in the Specifications in the Non-Integrated Development Plan or the Integrated ASM Development Plan, as applicable. CHI hereby grants to Distributor
the right to use or reproduce its user documentation for incorporation into Distributor’s documentation (excluding source code as previously mentioned) without charge. Such documentation shall be provided in electronic format. CHI shall be
given the opportunity to review and approve Distributor documentation that incorporates CHI documentation prior to publication. 
 (b) Changes to Documentation. If any change in the Product or change in agency or regulatory requirement requires a change in the documentation, CHI shall promptly notify Distributor of the change and provide a revised copy of such
documentation without charge. 
 7. PRODUCT WARRANTY. 
 (a) General. CHI warrants solely to Distributor that the Products (including the ASM Software) delivered hereunder (i) shall perform substantially in accordance with the applicable
Specifications and all other applicable product specifications as published by CHI in effect at the time of delivery of such Product (including the ASM Software), (ii) shall be free from defects in design, materials and workmanship, when given
normal, proper and intended usage thirteen (13) months from the date of in-service of the MTWA Test Module at Distributor’s end-user customer’s site, and (iii) shall not infringe or violate any third party’s Intellectual
Property rights. The warranty set forth in clauses (i) and (ii) above shall not apply to disposable items such as a Sensor or Sensor Test Kit after the expiration date marked on the Sensor or Sensor Test Kit packaging. The warranty set
forth in clause (iii) above shall not apply to any infringement or violation of any third party’s intellectual property rights by Distributor Products (as defined below), if such infringement or violation would not have occurred in the
absence of such combination. CHI shall not have any obligation under this Agreement to make repairs or replacements that are required by normal wear and tear, or which result, in whole or in part, from catastrophe, fault or negligence of
Distributor, or anyone claiming through or on behalf of Distributor, or from improper or unauthorized use of the Products, or use of the Products in a manner for which they were not designed, or by causes external to the Products such as, but not
limited to, power surges or failure. 
 (b) Warranty Procedures.  
 (i) Stress MTWA System Purchasers shall be directed to contact Distributor or its distributors, as the case may be, for
initial warranty support. 
 (ii) Distributor shall notify CHI of any Products that it believes to be defective
or nonconforming during the applicable warranty period and that are covered by the warranties set forth in Sections 7(a)(i) or (ii). At CHI’s option, such Products shall be returned by Distributor to CHI’s designated facility for
examination and testing, or may be repaired on site by CHI. CHI shall either repair or replace within thirty (30) days of receipt by CHI, any such Product found to be defective and promptly return such Products to Distributor without cost
(including shipping and insurance) to Distributor.

 
Should CHI’s examination and testing not disclose any defect covered by the foregoing warranty, CHI shall so advise Distributor and dispose of or return the Product in accordance with
Distributor’s instructions and at Distributor’s sole expense, and Distributor shall reimburse CHI for its reasonable out of pocket shipping and insurance costs without premium or markup. 
 (iii) Distributor shall notify CHI of any Products that it believes to be covered by the warranty set forth in
Section 7(a)(iii). In the event that it is reasonably likely that the Products infringe or violate any third party’s Intellectual Property rights, CHI shall as expeditiously as reasonably practicable and at its sole expense:
(i) obtain a license that allows the continued use, manufacture, import, support, sale and distribution of the Products, or (ii) replace or modify the Products so as to be non-infringing, or (iii) in the event that CHI cannot achieve
either (i) or (ii) above after exercising commercially reasonable efforts, refund to Distributor the price of Products returned to CHI together with the costs for such return. The obligations of CHI under this Section 7 shall be in
addition to its obligations of indemnity under Section 15. 
 (c) DISCLAIMER OF WARRANTIES. THE WARRANTIES SET FORTH IN
THIS AGREEMENT 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).  
 (d) Records. CHI and Distributor shall each maintain such serial and part number and date and location of shipment records for all
Products as are necessary so that, for tracing or recall purposes, the manufacturing and delivery of the Products can be identified. 
 8.
TRAINING AND SUPPORT. 
 (a) Distributor Training Materials. Except as otherwise provided in Section 8(b),
Distributor shall be responsible for preparing the training materials related to the Products for use by Distributor’s sales and service personnel. Distributor shall provide a copy of any such training materials to CHI in advance of using such
materials. 
 (b) Clinical and Technical Training and Support. During the term of this Agreement, (i) CHI shall
provide two (2) all-day training sessions to assist Distributor with its training of a mutually agreed upon number, but not less than 50, of Distributor’s sales and service personnel in the United States prior to the Launch Date of the
MTWA Test Module, and (ii) after the Launch Date of the MTWA Test Module CHI shall, upon request by Distributor, provide an annual training session for mutually agreed upon Distributor sales and service personnel in the United States.

 (c) End-User Training. Distributor shall be responsible for providing in-service training to Stress MTWA System
Purchasers regarding the use of the Stress MTWA System (except as otherwise provided in this Section 8(c). CHI agrees to provide a Starter Test Kit as well as CHI’s standard in-service training session regarding the use of the MTWA Test
Module (the “Installation Training Service”) to each Stress MTWA System Purchaser located in the United States of America. In order to facilitate such training, Distributor shall provide to CHI a

 
notice of the sale of each Stress MTWA System in the United States of America within ten (10) Business Days of the date of sale, which notice shall include the location of the Stress MTWA
System and the date of installation. CHI shall use its commercially reasonable efforts to provide the Installation Training Service within 21 days, but not later than 45 days (the “Installation Training Window”), following the later
of (i) the date of installation of the Stress MTWA System as set forth in the applicable notice from Distributor, (ii) the date that CHI receives Distributor’s notice of sale of the Stress MTWA System and (iii) the training date
specified by the end-user, provided that CHI shall not be required to provide the Installation Training Services within the Installation Training Window to the extent (A) that the number of Stress MTWA Systems in a fiscal quarter exceeds the
applicable Quarterly Forecast Amount or (B) that the delay is due to the action or inaction of the end-user customer. Notwithstanding the foregoing, the Installation Training Service provided hereunder shall be comparable to the standard
installation training that CHI offers its own end-user customers or the end-user customers of CHI’s other OEM customers, if any. 
 (d) End-User Service and Support. Except as otherwise provided herein, Distributor shall be responsible for providing to its end-user customers installation, customer training, service and support (including repair service) for
Products Distributor sells to such customers, and Distributor shall bear all related costs to perform such service and support, including costs for labor, parts or travel. Distributor shall have the exclusive right to sell and manage service
contract arrangements with Stress MTWA System Purchasers. 
 (e) CHI Extended Warranty and Repair Service. During the
term of this Agreement and, if longer, for seven (7) years after the date of installation of the applicable MTWA Test Module, CHI agrees to provide to Distributor central repair service (as opposed to field service) or, at CHI’s sole
discretion, exchange units for the Products sold hereunder at CHI’s then current prices for such repair services or exchange units. During the term of this Agreement and, if longer, for seven (7) years after the date of installation of the
applicable MTWA Test Module, Distributor will have the opportunity to purchase from CHI extended warranty contracts with respect to the MTWA Test Module sold hereunder on CHI’s then current prices and other terms and conditions. CHI’s
prices for repair services, exchange units and extended warranty contracts shall be (a) competitive with market rates for such services as offered by comparable service providers in the industry and (b) no higher than the prices charged by
CHI to any of its other customers for comparable services. 
 (f) Additional Support Service. During the term of this
Agreement, CHI will provide such additional training and technical support services with respect to the Products in the United States of America as Distributor shall reasonably request at CHI’s then current prices for such services. CHI’s
prices for such additional training and technical support services shall be no higher than the prices then currently charged by CHI to any of its other customers for comparable services. During the term of this Agreement, CHI shall maintain and
provide to Distributor a dedicated customer service telephone number that may be used by Distributor to access clinical and technical support regarding the Products. 

 9. PRODUCT MARKETING AND SUPPORT. 
 (a) Sales and Marketing. Distributor will use its commercially reasonable efforts to promote the sale of the Products in accordance
with the terms of this Agreement. Without limiting the foregoing, Distributor shall use commercially reasonable efforts to promote CHI’s Analytic Spectral Method in the Field in the United States. Distributor shall develop and produce brochures
and other marketing and sales literature for the marketing and sale of the Products, including adaptation or modification of CHI’s sales and marketing materials. CHI will cooperate with Distributor in the preparation of Distributor’s
marketing materials for the Products. Distributor shall provide copies of all sales and marketing material to CHI at least two (2) weeks prior to the date on which such materials are scheduled for final approval by Distributor. 
 (b) Sales Force. During the term of this Agreement, Distributor shall maintain a diagnostic cardiology sales organization, shall
provide its sales force and distributors with reasonably appropriate training and support regarding the use of the Products and shall reward its sales force for the promotion and sale of the MTWA Test Module and Sensor Test Kits with such incentives
as Distributor shall determine in its sole and absolute discretion. 
 (c) Promotional Activities. During the term of
this Agreement, Distributor shall use commercially reasonable efforts to promote the Products via channels and methods in Distributor’s sole discretion, which may include industry tradeshows, through advertising campaigns, relationships with
clinical luminaries and other promotional activities. 
 (d) CHI Support. During the term of this Agreement, CHI shall
use commercially reasonable efforts to continue its current MTWA Test product development programs that shall include the development of such software upgrades and general product enhancements as CHI shall determine in its sole discretion. CHI will
use its commercially reasonable efforts upon request by Distributor to facilitate the introduction of Distributor to thought leaders in the Field for training and public speaking opportunities regarding the CHI’s Analytic Spectral Method at
Distributor’s expense. 
 (e) Expenses. Except as otherwise set forth in this Agreement, each Party shall bear its
own expenses with respect to promotion, sales and distribution of the Products, as well as administrative and overhead expenses. 
 10.
COVENANTS OF THE PARTIES. 
 (a) Compliance with Law. Each Party shall at all times fulfill its obligations under
this Agreement and conduct related activities in compliance with all applicable laws and regulations, including without limitation, all federal and state laws, as well as the laws of any other country included in the Territory, regarding the sales
and marketing of medical devices, the reporting of fees paid to healthcare professionals, and the reporting of clinical research information. Without limiting the generality of the foregoing, in connection with its sales and marketing efforts each
Party shall not (i) publish or employ, or cooperate in the publication or employment of any misleading or deceptive sales or marketing materials or practices with respect to the Products or (ii) make any representations, warranties,
guarantees or claims to third parties with respect to the Products or uses of such Products unless contained in CHI’s 510(k) for the Analytic Spectral Method Software or in such training and sales and marketing materials as are approved by CHI.

 
As further provided in Section11(b), Distributor shall be responsible for obtaining and shall maintain any additional clearances or approvals to market and sell the Stress MTWA System (including
the combination of the Stress System with the MTWA Test Module) within the Territory. 
 (b) Change of Control of CHI. If
CHI shall receive a bona fide offer for the merger of CHI with or into a third party, the sale of all or substantially all of CHI’s assets to a third party, or the exclusive licensing of all or substantially all of CHI’s Intellectual
Property to a third party, or if a third party announces an offer to acquire, or has acquired, more than 51% of CHI’s outstanding voting securities (a “Change of Control Transaction”), CHI must give prompt written notice of
such offer to Distributor within two (2) Business Days of CHI’s receipt of such offer or CHI’s receiving notice of such announcement; provided that CHI shall only be required to notify Distributor that there has been an offer with
respect to a Change of Control Transaction and shall not be required to disclose to Distributor either the identity of the party making the offer or the terms of the offer. 
 (c) Insurance. Each Party shall maintain commercially reasonable product and general liability insurance coverage or maintain
sufficient reserves or document self-insurance as appropriate. 
 11. REGULATORY MATTERS. 
 (a) MTWA Test Module. CHI shall maintain regulatory responsibility for its MTWA Test Module, including the Analytic Spectral Method
Software, on a stand-alone basis (not in combination with Distributor products). CHI has received FDA Approval for the Analytic Spectral Method Software (K003492). CHI shall use commercially reasonable efforts to maintain FDA Approval in the United
States and all other regulatory and governmental registrations and approvals necessary to sell CHI’s MTWA Test products on a stand-alone basis (not in combination with Distributor products) in the United States. 
 (b) Stress MTWA System. Distributor shall have regulatory responsibility for the Stress MTWA System (including the combination of the
Stress System with the MTWA Test Module). Distributor shall use its commercially reasonable efforts to obtain and maintain, at its expense, any regulatory approvals required to distribute the Stress MTWA System with the MTWA Test Module in the
Territory, including FDA Approval in the United States. Distributor’s obligations under this Section 11(b) shall include the preparation and filing of any required submissions and the establishment and oversight of any required clinical
investigations and clinical follow-up. CHI shall provide such support as is reasonably requested by Distributor in connection with the regulatory filings contemplated by this Section 11(b), including providing clinical and technical data in
CHI’s possession, provided that Distributor shall reimburse CHI for any reasonable out-of-pocket expenses incurred by CHI in order to provide such support at the request of Distributor. 
 (c) Quality Program and Inspections. Each Party agrees to maintain an objective quality program for all Products applicable to all of
its respective activities and duties under this Agreement. Each Party’s quality program will comply with all regulatory requirements applicable to its respective duties under this Agreement in the jurisdictions where regulatory

 
approvals for the Products have been obtained. CHI will give Distributor reasonable access to its facilities, quality system and associated manufacturing processes related to the Products for the
purpose of auditing manufacturing compliance with the applicable Specifications as well as quality and regulatory compliance. All such audit activities will be conducted after two (2) weeks prior written notice by Distributor to CHI and at
times mutually agreed to by the parties during CHI’s normal business hours. Upon request by Distributor, CHI shall seek in good faith to secure similar right of inspection by Distributor at the facilities of any vendor or subcontractor of CHI
responsible for manufacturing Products sold to Distributor under this Agreement. CHI will, upon Distributor’s request, provide to Distributor copies of CHI’s quality program and supporting test documentation related to Products sold to
Distributor under this Agreement. CHI shall maintain device history records for each Product shipped, including the date of manufacture, identifying lot codes and serial numbers, and provide that information to Distributor upon request. 

(d) ISO Compliance. CHI shall maintain ISO 13485 in good standing. CHI shall furnish Distributor with documentation establishing
its compliance with the requirements of this paragraph within five (5) Business Days after the Effective Date, as well as with reasonable promptness upon written request by Distributor. 
 (e) Complaint Handling and Duty to Report Incidents. Distributor will be responsible for the coordination of customer complaints. CHI
will investigate customer complaints and supply Distributor with a written report summarizing the cause for the complaint and any corrective actions required within 14 days of receipt by CHI of such complaint. Distributor and CHI shall inform each
other in writing within 5 days of becoming aware of (a) facts or circumstances that constitute or are reasonably likely to constitute a reportable event pursuant to U.S. federal laws and regulations or (b) all incidents relating to the
subject matter of the Agreement that must be reported to the FDA or other regulatory authority in the Territory, including without limitation, incidents involving death or serious injury, malfunctions that, if recurrent, may cause or contribute to
death or serious injury or other material quality problems or concerns. CHI will be responsible for reporting such incidents to the appropriate regulatory authority. Upon request, each Party shall cooperate with the other Party as may be reasonably
necessary to comply with any reporting obligation regarding such incidents or quality concerns. 
 (f) Recalls and Field
Corrections. In the event of any recall, product withdrawal or field correction of any Product that is required by a governmental agency, by CHI, or by Distributor for safety or efficacy reasons, the Parties agree that (i) they shall
promptly notify each other and (ii) they shall fully cooperate with each other concerning the necessity and nature of such action. CHI shall be responsible for making any and all applicable regulatory authority contacts and for coordination of
any recall or field correction activities involving Products. CHI shall promptly notify Distributor of all determinations, notices or other actions pursuant to this Section. In the event that any Product requires field correction or is recalled or
withdrawn as a result of (a) CHI’s or a Product’s failure to comply with applicable laws or regulations, (b) CHI’s reasonable determination to effectuate such correction or recall for business, safety, or efficacy reasons,
(c) CHI’s failure to provide Products that fail to comply with the applicable warranty hereunder, or (d) any defect in design, material or workmanship of any Product, then CHI shall bear all costs and expenses incurred by the Parties,
including but not limited to the costs and expenses related to such recall, withdrawal or field correction, communications and meetings

 
with all required regulatory agencies, replacement stock, service labor, installation, travel, notifying customers of such recall and any replacement product to be delivered to those same
customers, including shipping costs. Notwithstanding any other provision, to the extent that any such recall, product withdrawal, field correction or any similar or related event or any such claims, costs, liabilities or expenses is due in whole or
in part to the negligent or intentional acts or omissions of Distributor, Distributor shall be responsible for such costs and expenses equitably in proportion to any such fault or failure by or on behalf of it. 
 12. INTELLECTUAL PROPERTY. 
 (a) All Intellectual Property which prior to the Effective Date is either owned by or licensed to a Party shall continue to be owned or controlled exclusively by such Party. 
 (b) Subject to CHI’s rights pursuant to Section 12(a) above, Distributor shall own all Intellectual Property arising from the
Non-Integrated Development Plan and arising from the Integrated ASM Development Plan that is developed using Distributor Intellectual Property. For the avoidance of doubt, Distributor shall own all Intellectual Property arising from the Development
Work pertaining to that portion of the interface between Distributor’s Stress System and the ASM Software that is unique to Distributor’s Stress System. If for any reason any such Intellectual Property is not owned by Distributor
automatically upon its creation pursuant to this Section, CHI agrees to assign, and hereby does assign to Distributor at no additional cost and without further action by either Party, all rights, title and interest in and to such Intellectual
Property, including the right to sue for past, present, and future infringements thereof and to recover damages therefor. 
 (c)
Notwithstanding anything to the contrary contained herein (including in Section 12(b) above), CHI shall continue to exclusively own all Intellectual Property related to the Analytic Spectral Method Software, and CHI shall further own any
Intellectual Property arising from the Non-Integrated Development Plan and arising from the Integrated ASM Development Plan that is developed by CHI without using Distributor Intellectual Property, including, without limitation, any improvements in
the Analytic Spectral Method Software or the ASM Software. 
 (d) Notwithstanding anything to the contrary, no rights, title or
licenses are granted to CHI under any Distributor Intellectual Property, except as may be expressly stated herein or agreed to in a written document signed by Distributor. Under no circumstances will any such rights, title or licenses be implied.

 (e) Notwithstanding anything to the contrary, no rights, title or licenses are granted to Distributor under any CHI
Intellectual Property, except as may be expressly stated herein or agreed to in a written document signed by CHI. Under no circumstances will any such rights, title or licenses be implied. 
 (f) The Parties acknowledge that CHI currently sells and in the future will sell medical devices, equipment, related hardware, software and
accessories used to perform CHI’s Analytic Spectral Method. The Parties further acknowledge that CHI currently and in the future may develop and integrate its Analytic Spectral Method, including but not limited to its Analytic Spectral Method
Software, into products of other manufacturers, including, without limitation, 

 
competitors of Distributor, and that such products may be similar to the Products. Accordingly, nothing in this Agreement will prohibit CHI from developing products or services that might be
similar to and/or compete with the Products, for itself or others. 
 (g) The Parties agree that all copyrightable material,
notes, records, drawings and designs made or discovered by either Party as part of the Development Work that is intended to become the other Party’s Intellectual Property pursuant to Sections 12(b) or (c) above shall be deemed a “work
made for hire” under United States copyright laws and shall be the sole property of the applicable Party. Each Party further agrees to assist the owner, or its designee, at the owner’s expense, in every proper way to secure the
owner’s rights in its Intellectual Property in any and all countries, including the disclosure to the owner of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and
all other instruments which the owner shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to the owner, its successors, assigns and nominees the sole and exclusive right, title and interest in and to
such Intellectual Property rights. This Section shall survive after the termination of this Agreement. 
 13. REPRESENTATIONS AND WARRANTIES.

 (a) CHI Representations and Warranties. CHI represents and warrants to Distributor, as of the date of this
Agreement, that: 
 (i) it is a corporation duly organized, validly existing and in good standing under the laws
of the state of Delaware; 
 (ii) it has full power and authority to execute and deliver this Agreement, and to
perform its obligations hereunder; 
 (iii) this Agreement constitutes the valid and legally binding obligation
of CHI, enforceable in accordance with its terms and conditions; 
 (iv) neither the entering into of this
Agreement nor the performance of any of its obligations hereunder will conflict with or constitute a breach under any obligation of CHI or under any agreement, contract or instrument to which CHI is a party or any other obligation, law or regulation
by which CHI is bound; 
 (v) CHI owns (or will own) or possesses (or will possess) licenses or other rights to
use all Intellectual Property necessary for the manufacture and sale of the Products contemplated by this Agreement, and to CHI’s knowledge, the CHI Intellectual Property and the Products to not infringe upon or violate the valid Intellectual
Property rights of any third party; 
 (vi) no claim is pending or, to the best of CHI’s knowledge,
threatened to the effect that the Products or CHI’s use of the CHI Intellectual Property necessary for the manufacture or sale of the Products contemplated by this Agreement infringes upon or violates the valid Intellectual Property rights of
any third party; 

 (vii) no claim is pending or, to the best of CHI’s knowledge,
threatened to the effect that any CHI Intellectual Property necessary for the manufacture or sale of the Products contemplated by this Agreement is invalid or unenforceable by CHI; and 
 (viii) CHI’s manufacturing facility is in compliance in all material respects with all applicable FDA 21 CFR Part 820
Good Manufacturing Practices/Quality System Regulations promulgated under the Act, and has obtained applicable ISO 13485-2003 certifications. 
 (b) Distributor Representations and Warranties. Distributor represents and warrants to CHI as of the date of this Agreement that: 
 (i) it is a corporation duly organized and validly existing and in good standing under the laws of the State of Delaware;

 (ii) it has full power and authority to execute and deliver this Agreement and to perform its obligations
hereunder; 
 (iii) this Agreement constitutes the valid and legally binding obligation of Distributor,
enforceable in accordance with its terms and conditions; 
 (iv) neither the entering into of this Agreement nor
the performance of any of its obligations hereunder will conflict with or constitute a breach under any obligation of Distributor or under any agreement, contract or instrument to which Distributor is a party or any other obligation, law or
regulation by which Distributor is bound; and 
 (v) Distributor owns (or will own) or possesses (or will
possess) licenses or other rights to use all Intellectual Property necessary for the manufacture and sale of the Stress MTWA System (other than the MTWA Test Module) contemplated by this Agreement, and to Distributor’s knowledge, the
Distributor Intellectual Property, the Stress System and the Stress MTWA System do not infringe upon or violate the valid Intellectual Property rights of any third party; 
 (vi) no claim is pending or, to the best of Distributor’s knowledge, threatened to the effect that Distributor’s
Stress System or Distributor’s use of the Distributor Intellectual Property necessary for the manufacture or sale of the Distributor Stress System infringes upon or violates the valid Intellectual Property rights of any other person;

 (vii) no claim is pending or, to the best of Distributor’s knowledge, threatened to the effect that any
Distributor Intellectual Property necessary for the manufacture or sale of the Stress MTWA System contemplated by this Agreement is invalid or unenforceable by Distributor; and 
 (viii) Distributor’s manufacturing facility is in compliance in all material respects with all applicable FDA 21 CFR
Part 820 Good Manufacturing Practices/Quality System Regulations promulgated under the Act, and has obtained applicable ISO 13485-2003 certifications. 

 14. TERM AND TERMINATION. 
 (a) Term. This Agreement shall commence on the Effective Date and continue in force until the fifth anniversary of the Effective Date
(the “Initial Term” and, as extended pursuant to Section 14(b) or Section 14(c), terminated pursuant to Section 14(d), or otherwise extended or terminated by agreement of the parties, the “Term”).

 (b) Renewal. After the Initial Term, this Agreement will automatically renew with no further action by the parties for
a period of one year (a “Renewal Period”) upon the expiration of (i) the Initial Term, or (ii) any Renewal Period, unless this Agreement is terminated in accordance with Section 14(c). 
 (c) Termination. This Agreement may be terminated: 
 (i) by either Party in the event that (A) the other party has committed a material breach of its obligations hereunder,
(B) the terminating party has given written notice of such material breach to the other Party, and (C) such other Party has failed to correct such material breach within sixty (60) days of such written notice; 
 (ii) by either Party if (A) the other Party shall be unable to pay its debts as they become due, (B) the other
Party makes or seeks to make an arrangement with or an assignment for the benefit of creditors, (C) if proceedings in voluntary or involuntary bankruptcy are instituted by, on behalf of or against, such other Party, or (D) if a receiver or
trustee of the other Party’s property is appointed (each, an “Event of Bankruptcy”); 
 (iii) by either Party effective at the expiration of the Initial Term or a Renewal Period, if any, only upon such Party by giving written notice to the other Party of its intention to terminate this Agreement at least ninety (90) days
prior to the expiration of the Initial Term or the Renewal Period; 
 (iv) by CHI, upon thirty (30) days
prior written notice to Distributor, in the event that the Product Launch Date has not occurred on or before September 30, 2010; and 
 (v) by either Party, upon twelve (12) months prior written notice to the other Party. 
 (d) Effect of Expiration or Termination. In the event of expiration or termination of this Agreement for any reason, the respective rights and obligations of the Parties shall terminate, except
that notwithstanding such termination the Parties shall have the following rights and obligations: 
 (i)
termination of this Agreement shall not release either Party from the obligation to make payment of all amounts then due and payable or accrued (which are not the subject of a good faith dispute); 

 (ii) CHI shall continue to fulfill its obligations under any purchase orders
submitted by Distributor in accordance with the terms of this Agreement on the date of termination; 
 (iii) CHI
shall continue to provide warranty services pursuant to Section 7 to Distributor’s existing MTWA Test Module end-user customers as of the date of termination; 
 (iv) CHI shall continue to provide support services pursuant to Section 8(e) to Distributor’s existing MTWA Test
Module end-user customers as of the date of termination until the expiration or termination of such customer’s support and maintenance contract period; 
 (v) for a period of seven (7) years following termination of this Agreement, CHI shall manufacture (or have manufactured
on its behalf) and sell Sensor Test Kits to Distributor’s existing MTWA Test Module end-user customers; and 
 (vi) the obligations of CHI and Distributor pursuant to Sections 3(i), 3(j), 4(c), 8(c), 11(e), 11(f), 12, 14, 15, 16 and 17 of this Agreement will survive any expiration or termination of this Agreement. 
 Nothing herein will limit any remedies which a Party may have for the other Party’s default, except as expressly provided herein.
Neither Party shall be liable to the other for any damage in connection with that Party’s termination of this Agreement by written notice in accordance with Section 14(c). 
 15. INDEMNIFICATION. 
 (a) Indemnity by CHI. CHI agrees to
indemnify, defend and hold harmless Distributor and its directors, officers, employees, agents and representatives (the “Distributor Parties”) from and against and in respect of any and all demands, claims, actions, damages,
liabilities, costs and expenses (including attorneys’ fees) (“Losses”) arising out of third party claims against any of the Distributor Parties incurred by reason of (i) any breach of the representations, warranties or
covenants of CHI under this Agreement; (ii) any personal injury or property damages resulting from the failure of the Products to meet any Specification or due to a defect in materials or workmanship; and (iii) any claim by a third party
that the CHI Intellectual Property or the Products infringe or violate the Intellectual Property rights of a third party (other than the Distributor Parties). Notwithstanding the foregoing, CHI shall not be obligated hereunder to indemnify the
Distributor Parties to the extent Losses result from (A) any breach of representation, warranty, or agreement on the part of Distributor under this Agreement, (B) the negligence or willful misconduct of any Distributor Party, (C) a
defect in design, materials or workmanship in any Distributor product, (D) modification, alteration, transport, storage or use of the Products after the date of shipment by CHI hereunder in a manner inconsistent with the Specifications, if such
Loss would not have occurred in the absence of such modification, alteration, transport, storage or use, (E) any claim that Distributor’s products incorporating, or sold by Distributor or its distributors or sub-distributors together with,
the Products, including the Stress System, the Stress MTWA System and any software interface between the Stress

 
MTWA System and the ASM Software (collectively, the “Distributor Products”), infringe or misappropriate the Intellectual Property of a third party, as determined by a court of
competent jurisdiction, on a stand alone basis and irrespective of the combination of the Products with Distributor Products, (F) failure of Distributor to obtain FDA or other applicable regulatory clearance or approval, or
(G) Distributor’s sales and marketing activities. 
 (b) Indemnity by Distributor. Distributor agrees to
indemnify, defend and hold harmless CHI and its directors, officers, employees, agents and representatives (the “CHI Parties”) from and against and in respect of any and all Losses arising out of third party claims against any of
the CHI Parties incurred by reason of (i) any breach of the representations, warranties or covenants of Distributor under this Agreement; (ii) any personal injury and property damages resulting from a defect in design, materials or
workmanship of a Distributor product; (iii) any claim that the Distributor Intellectual Property or the Distributor products infringe or violate the Intellectual Property rights of a third party (other than CHI); or (iv) the modification,
alteration, transport, storage or use by Distributor of the Products after the date of shipment to Distributor hereunder in a manner in conflict in any material respect with the Specifications. Notwithstanding the foregoing, Distributor shall not
have any obligation to indemnify CHI with respect to any matters for which Distributor Parties are entitled to indemnification pursuant to Section 16(a). 
 (c) Third Party Claims. If a claim by a third party is made against an indemnified Party and if the indemnified Party intends to seek indemnity with respect thereto under this Section 15, such
indemnified Party shall promptly notify the indemnifying Party of such claim, provided, however, that the failure to give timely notice shall not affect the rights of the indemnified Party so long as such failure to give timely notice does not
adversely affect the indemnifying Party’s ability to defend such claim against the third party. The indemnifying Party shall have control of the defense of any such action, including any appeals and negotiations for settlement or compromise
thereof and shall have full authority to enter into a binding settlement or compromise, provided, that the indemnifying Party shall not enter into any settlement or compromise which may adversely affect the indemnified Party without the indemnified
Party’s consent, which consent shall not be unreasonably withheld. If the indemnifying Party assumes the defense of such claim, the indemnifying Party shall not be responsible for any legal or other expenses subsequently incurred by such
indemnified Party in connection with the defense thereof. The indemnified Party may participate at its own cost and expense in the defense of the claim, provided that such defense shall be controlled by the indemnifying Party. 
 16. CONFIDENTIAL INFORMATION. 
 (a) Confidential Information. During the term of this Agreement, a Party (the “Receiving Party”) may receive or have access to certain information of the other Party (the “Disclosing Party”) that is
Confidential Information of the Disclosing Party. For purposes of this Agreement, “Confidential Information” shall mean any information disclosed by the Disclosing Party to the Receiving Party, whether technology-related or
business-related, whether furnished before or after the Effective Date and irrespective of the form of communication, that is considered competitive, confidential or proprietary in nature including, though not limited to, information or data
concerning the Disclosing Party’s products or product plans, business operations, strategies, customers and related business information, design documents, drawings,

 
engineering information, financial analysis, forecasts, formulae, hardware configuration information, know-how, ideas, inventions, market information, marketing plans, processes, products,
product plans, research, specifications, software, source code and trade secrets. The Receiving Party will protect the confidentiality of Confidential Information with the same degree of care as the Receiving Party uses for its own similar
information, but no less than a reasonable degree of care. Confidential Information may only be used by those employees of the Receiving Party who have a need to know such information for the purposes related to this Agreement, and the Receiving
Party shall inform such employees of the confidential nature of such Confidential Information and the obligations of the Receiving Party hereunder. The Receiving Party agrees to be responsible for any breach of this Agreement by it or its employees
to the same extent as though such employees were parties hereto. Without limiting the foregoing, CHI may disclose such Confidential Information to third party manufacturers pursuant to Section 3(c) of this Agreement. If Distributor exercises
its rights to have the Products manufactured by a third party manufacturer under Section 3(i), Distributor may disclose such Confidential Information to the manufacturer subject to a confidentiality agreement regarding such Confidential
Information with such manufacturer. The parties acknowledge that all forecasts and the terms of this Agreement are deemed Confidential Information to be protected for a term of three years from the date of disclosure and that all other Confidential
Information shall be protected indefinitely. 
 (b) Exclusions. The foregoing confidentiality obligations will not apply
to any information that is (a) already known by the Receiving Party prior to disclosure other than pursuant to another agreement between the parties and the Receiving Party can so prove, (b) independently developed by the Receiving Party
prior to or independent of the disclosure and the Receiving Party can so prove, (c) publicly available through no fault of the Receiving Party, (d) rightfully received from a third party with no duty of confidentiality, (e) disclosed
by the Receiving Party with the Disclosing Party’s prior written approval, (f) with respect to the terms of this Agreement, required to be disclosed by law, including pursuant to the federal securities laws, or disclosed pursuant to a
confidentiality agreement to existing and potential investors, strategic partners or acquirers, or (g) disclosed in response to a valid order of a court or other governmental body in the United States or any political subdivision thereof, but
only to the extent of and for the purposes of such order; provided, however, that if the Receiving Party receives an order or request to disclose any Confidential Information by a court of competent jurisdiction or a governmental body, then the
Receiving Party agrees to the following: (i) if not prohibited by the request or order, immediately to inform the Disclosing Party in writing of the existence, terms, and circumstances surrounding the request or order; (ii) to consult with
the Disclosing Party on what steps should be taken to avoid or restrict the disclosure of Confidential Information; (iii) to give the Disclosing Party the chance to defend, limit or protect against the disclosure; and (iv) if disclosure of
Confidential Information is lawfully required, to supply only that portion of the Confidential Information which is legally necessary and try to obtain confidential treatment for any Confidential Information required to be disclosed. 
 (c) Use of Confidential Information. Each Party shall not, and each Party shall ensure that its officers and employees will not,
whether during the term or after the termination of this Agreement, use any Confidential Information of the other Party for other purposes than the fulfillment of such Party’s obligations hereunder. 

 (d) Trademarks; Publicity. Except as expressly authorized herein or in the
Non-Integrated Product Development Plan or Integrated ASM Development Plan, neither party shall use, or authorize to be used, the other party’s name, logo, trademarks or service marks without the prior written approval of the party owning the
same, such approval not to be unreasonably withheld, conditioned or delayed. Neither party will make any public announcement of this Agreement or the relationship contemplated hereunder (including, but not limited to, any press release, client list,
advertisement or any promotional material) without the prior written approval of the other party, which approval shall not be unreasonably withheld, except as may be required by applicable law or securities exchange rule and except to the extent
that any such public announcement is consistent with prior public announcements approved by the other party and remains accurate. 
 17.
GENERAL PROVISIONS. 
 (a) Independent Contractors. Distributor and CHI are independent contractors and are engaged
in the operation of their own businesses. Except as set forth herein, neither Party is to be considered the agent of the other Party for any purpose whatsoever, and neither Party has any authority to enter into any contracts or assume any
obligations for the other Party or make any warranties or representations on behalf of the other Party unless agreed to in writing by the other Party. 
 (b) Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York, excluding the United Nations Convention on Contracts for the
International Sale of Goods, including all matters of construction, validity, performance and enforcement, without giving effect to principles of conflict of laws. 
 (c) Jurisdiction and Venue. Each Party submits to the exclusive jurisdiction of any state or federal court located in King County, Washington, U.S.A or in Suffolk County or Middlesex County,
Massachusetts, U.S.A., over any suit, action or proceeding (“Action”) arising out of or relating to this Agreement or the relationship between the Parties. Each Party waives any objection to the venue of any Action brought in such
court and any claim that the Action has been brought in an inconvenient forum. Each Party agrees that a final judgment in any Action brought in such court shall be conclusive and binding upon it and may be enforced in any other courts to whose
jurisdiction it may be subject. 
 (d) Entire Agreement. This Agreement represents the entire agreement and understanding
of CHI and Distributor with respect to the development, supply and distribution of the Products and supersedes all previous agreements and understandings related thereto. 
 (e) Amendments. This Agreement may only be amended or modified in writing signed by authorized representatives of Distributor and CHI. 
 (f) Severability. In the event that any provision of this Agreement is held to be invalid or unenforceable, this Agreement will
continue in full force and effect without said provision and will be interpreted to reflect the original intent of the Parties. In such event, the Parties shall in good faith attempt to negotiate a substitute clause for any provision declared
invalid or unenforceable, which substitute clause shall most nearly approximate the intent of the Parties in agreeing to such invalid or unenforceable provision, without itself being invalid or unenforceable. 

 (g) Construction Against Waiver. Waiver by either Party of a breach of any provision
of this Agreement or the failure by either party to exercise any right hereunder will not operate or be construed as a waiver of any subsequent breach of that provision or as a waiver of any other right. 
 (h) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of
which together shall constitute one instrument. A facsimile signature of this Agreement shall be valid and have the same force and effect as a manually signed original. 
 (i) Assignment. Neither CHI nor Distributor may assign any of its rights or obligations pursuant to this Agreement without the prior written consent of the other party, except to a successor to
substantially all of the business of either party by merger, sale of assets, or other form of reorganization; provided, however, that Distributor may assign its rights, interests or obligations hereunder to any of its controlled affiliates without
the prior consent of CHI, so long as Distributor guarantees to CHI the performance of Distributor’s obligations under this Agreement by such controlled affiliate. 
 (j) Notices. All notices under this Agreement must be in writing and will be deemed given if sent by facsimile (except for legal process), certified or registered mail or commercial courier (return
receipt or confirmation of delivery requested), or by personal delivery to the Party to receive the notice or other communications called for by this Agreement at the addresses set forth below (or at another address for a Party as specified by a
Party by like notice). Notwithstanding the foregoing, the following communications may be transmitted electronically by computer access (i.e., email): (i) Purchase Orders delivered hereunder as well as CHI’s acceptance thereof and any
correspondence related thereto, (ii) Quarterly Sales Reports pursuant to Section 5(g), and (iii) notices of sale of Stress MTWA Systems delivered by Distributor to CHI pursuant to Section 8(c). Electronic communications shall be
considered signed by a party if they contain an agreed upon electronic identification symbol or code. Electronic documents shall be deemed received by a party when accessible by the Receiving Party on its computer system. 
  

			
	 CHI
	  	 Distributor

	 Cambridge Heart, Inc.
 100 Ames
Pond Road
 Tewksbury, MA 01876
	  	 Cardiac Science Corporation
 3303 Monte Villa Parkway
 Bothell, WA 98021
 ATTN: Chief Financial Officer

		
	with a copy to (which shall not constitute notice):	  	with a copy to:
		
	 Nutter McClennen & Fish LLP
 155 Seaport Boulevard
 Boston, MA 02210
 Attn. Michelle L. Basil
	  	 Cardiac Science Corporation
 3303 Monte Villa Parkway
 Bothell, WA 98021
 ATTN: Director, Corporate Development

 (k) Force Majeure. Each of the Parties hereto will be excused from its performance of
its obligations hereunder if the performance is prevented by force majeure, and that excuse will continue so long as the condition constituting that force majeure continues plus fifteen (15) days after the termination of the condition, but will
not in any event exceed one hundred twenty (120) days. Either Party, if excused from such compliance as aforesaid under this Section 17(k), agrees to give prompt notice to the other Party of the relevant circumstances, to use its
commercially reasonable efforts to overcome the obstacles of such performance, and to resume performance as soon as practicable. For the purposes of this Agreement, “force majeure” is defined to include causes beyond the control of
Distributor or CHI, including without limitation acts of God, acts, regulations or laws of any government, war, warlike activity, acts of terrorism, insurrection, civil commotion, transportation delay, governmental action (whether or not with proper
authority) destruction of production facilities or materials by fire, flood, earthquake or storm, or medical epidemics. 
 (l)
No Strict Construction. This Agreement has been prepared with the participation of each Party and will not be strictly construed against either Party. Each Party acknowledges that it has consulted with, or has had the opportunity to consult
with, counsel of its choice, and that in executing this Agreement it has not relied upon any statements, representations or agreements of any other person other than those contained herein. 
 (m) Headings; Interpretation. The captions to the several sections hereof are not a part of this Agreement, but are included for
convenience of reference only and shall not affect its meaning or interpretation. Each reference to “include” or “including” or “includes” shall be deemed to be followed by the words “without limitation.”

 To witness their agreement, the parties have caused this Agreement to be signed below by
their respective officers. 
  

									
	CAMBRIDGE HEART, INC.	 		 	CARDIAC SCIENCE CORPORATION
					
	By:	 	 /s/ Ali Haghighi-Mood
	 		 	By:	 	 /s/ Dave Marver

			
	 Ali Haghighi-Mood
	 		 	 [Dave Marver

	(Print Name)	 		 	(Print Name)
					
	Title:	 	 President & Chief Executive Officer
	 		 	Title:	 	 CEO

 [Signature Page to Development, Supply and Distribution Agreement] 

 Appendix A 
 Products and Transfer Prices 
 I. MTWA Test Module and Sensor Test
Kit: 
  

	 	A.	Transfer price for MTWA Test Module is: 

 [***] for the first [***] units purchased in any calendar year and, 
 [***] for any additional units purchased in the
same calendar year. 
  

	 	B.	Transfer price for Sensor Test Kit is [***]. 

  

	 	C.	Lead time for the MTWA Test Module is 30 days. 

  

	 	D.	Lead time for Sensor Test Kit is 30 days. 

 II. Spare Parts: 
  

	 	A.	Transfer price for the following replacement components will be equal CHI’s current list price for such components, as determined by CHI from time to time.

  

	 	B.	Lead time for replacement components is 30 days 

 III. Currency: All prices are in United States Dollars. 

 Appendix B 
 Non-Integrated Product Development Plan 
 Time and
Responsibilities 
  

					
	 #
	  	 Task
	  	 Due Date

			
	1	  	Distributor to provide to CHI a Stress System and required information concerning printer drivers, data storage structure, and treadmill communication protocol	  	[***] days following Effective Date
			
	2	  	CHI to deliver to Distributor disk containing ASM Software for installation on Stress System and related instructions	  	[***] days following completion of item 1
			
	3	  	Distributor to perform quality assurance protocol and provide feedback to CHI, and CHI to address and respond to Distributor feedback	  	Prior to September 30, 2010
			
	4	  	Distributor to obtain regulatory approvals, if determined to be required by Distributor	  	Prior to September 30, 2010
			
	5	  	Product Launch	  	Prior to September 30, 2010

 Product Specifications 
  

	1.	See Exhibit A. 

  

	2.	Translations, if required by Distributor: English, Spanish, German, Italian, French. 

  

	3.	Each OEM Test Module will include a CD-ROM, which contains the following product documentation: MTWA User Manual, MTWA Service Manual, Physicians’ Guide,
and MTWA Interpretation Training Program. The MTWA User Manual includes Warranty and Software License. Each Sensor Test Kit will include Instructions for Use. 

 Product Branding 
  

	1.	The Stress MTWA System hardware will include only Distributor branding. 

	2.	The PDAM included in the MTWA Test Module will be co-branded with both CHI and Distributor branding. 

  

	3.	The ASM Software will, upon launch by the customer, contain CHI’s standard copyright notification along with the branding “Analytic Spectral MTWA Application
powered by Cambridge Heart, Inc.” 

  

	4.	The patient report generated by the ASM Software shall include the branding “Analytic Spectral Method powered by Cambridge Heart, Inc.”

  

	5.	Sensor Test Kits shall be co-branded with both the CHI and Distributor branding. 

 Appendix C 
 Integrated ASM Development Plan 
 [Intentionally left
blank and to be determined pending the mutual agreement of the parties pursuant to 
 Section 2(e) of the Agreement.]

  Exhibit A 
 Cambridge Heart 
 Analytic Spectral Method

 Non-Integrated OEM Specification 
 [***]

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