SAN JOSE, CALIF. — Former Safeway CEO Steve Burd said on Tuesday that his company knew it was taking a risk by partnering with blood-testing start-up Theranos, and he acknowledged that a deal would have been good for the grocery chain’s stock price.

His second day testifyingElizabeth Holmes, founder of Theranos, was accused in a criminal fraud case. Burd claimed that Safeway had conducted an independent investigation into Safeway’s claims regarding its technology prior to signing a contract in 2010.

Nearly $400 million was spent on the deal. 969 Safeway locations were remodeled to prepare for blood-testing machines. Two years after Burd’s retirement, Safeway ended its relationship with Theranos and dissolved the partnership in 2015.

Burd was summoned as a witness, but defense attorney Kevin Downey representing Holmes took Burd to task about what he knew regarding Theranos at the time he made the deal.

“You were aware that she was young and entrepreneurial at the time,” Downey spoke of Holmes who was in her 20s at the time. Burd answered, “Correct.”

Downey added, “Is… fair to say that Safeway spent hundreds of hours due diligence in order to make a deal?”

Burd added, “At minimum 100”, and that he was “personally responsible” for the execution of the agreement.

Holmes rose to prominence in Silicon Valley thanks to his invention of technology that could run thousands of diagnostic tests using just one finger. Holmes, however, has realized these aspirations. charged with 12 counts of wire fraud and conspiracyShe was charged with deceiving investors and patients. She pleaded not guilty.

Lance Wade, the defense attorney, told jurors during opening statements that even though she made mistakes in her start-up, it didn’t make her criminal. Holmes can face up to twenty years imprisonment if she’s convicted.

Burd being present, the defense tried showing that Safeway was not a national chain and wasn’t being duped in the negotiations.

Burd was told by Downey that he believed he would have spoken almost every day with Theranos for over a year. Burd replied that they were both on the same path in order to make the deal happen and do our due diligence.

Theranos hadn’t deployed its products in a physical shop. Theranos announced later a partnership with WalgreensIt also failed to perform.

“So, you understand that Safeway and Walgreens were the companies being talked to. This would be their first consumer-based deployment of technology. Downey was curious. You said that they understood this because they hadn’t scaled up the technology in a large way.

Burd explained, “I knew that they didn’t had a lot customers.”

Downey also highlighted Safeway’s problems. The stock price of the company had dropped from $19 to $14 in January 2012, while Safeway and Theranos worked to make it work.

“Did your communication with Holmes via text or email indicate that you believed the stock prices of Safeway would rise if Safeway announced the launch of Theranos products in Safeway shops?” Downey was curious. Burd stated that he doesn’t recall ever saying this, but that Safeway stock would have increased if it had happened.

Some emails that Burd sent during this period of 2012 were seen in court and showed his frustration with Theranos.

Burd sent Holmes an email with the subject “Becoming discouraged” in one of his messages. Burd stated, “I am one of most positive people you will ever meet. I don’t become discouraged.”

Burd further told jurors about Safeway’s trial testing of employees on corporate campuses. But the results of these tests proved to be inaccurate.

Burd stated, “I believe that when you begin something new there are going to be some rough spots.” “We lost samples and had no results.”

Wade Miquelon was the ex-walgreens finance chief. He took the stand on Tuesday night. In testimony, he spoke about meetings with Holmes, her finance chief, and Ramesh Balwani, the top executive of Walgreens.

Miquelon said that the company was among the “most exciting” companies he had ever seen. He also stated that the partners were “very excited about the formation of this partnership.”

Walgreens had at one time over 40 Theranos Blood-Testing Centers in its stores. Miquelon continues to testify Wednesday.

WATCH: More details emerge in Theranos trial