Exhibit 10.3

 

 

AMENDMENT TO SETTLEMENT AGREEMENT
AND RELEASE OF CLAIMS

This Amendment to the January 17, 2006 Settlement Agreement and Release of
Claims (“the Agreement”) is made this 24th day of January 2006 between Masimo
Corporation and Masimo Laboratories, Inc. (hereinafter “Masimo”), and Nellcor
Puritan Bennett, Inc., Mallinckrodt, Inc., Tyco Healthcare Group LP, Tyco
International Ltd., and Tyco International (US) Inc. (collectively “Nellcor”)
(each individually as a “Party” or collectively the “Parties”).

RECITALS

A.            Whereas the Parties entered into the Agreement on January 17,
2006.

B.            Whereas the Parties wish to amend Section 5.2 of the Agreement to
more accurately reflect their agreement and intent.

AMENDMENT

Therefore in consideration of the mutual covenants and promises contained herein
and in the Agreement, and other good and valuable consideration, receipt and
sufficiency are hereby acknowledged, the Parties agree that Section 5.2 of the
Agreement is amended to read in its entirety as follows:

Section 5.2 (as amended)

5.2           For the 2006 advance royalty payment, if Nellcor’s Pulse Oximetry
Revenues exceed $320,833,000 from February 1, 2006 through December 31, 2006
related to the 13% running royalty in Section 5.1, then Nellcor will pay 13% of
the revenue over this amount by March 30, 2007.  If Nellcor’s Pulse Oximetry
Revenues are less than $320,833,000 for this same time period, then Nellcor will
receive a credit of 13% of the revenue under this amount to be applied to future
royalty payments.  Additionally, if Nellcor’s Pulse Oximetry Revenues exceed
$350,000,000 for calendar year 2006 related to the additional 7% running royalty
in Section 5.1, then Nellcor will pay 7% of the revenue over this amount by
March 30, 2007.  If Nellcor’s Pulse Oximetry Revenues are less than $350,000,000
for this same time period, then Nellcor will receive a credit of 7% of the
revenue under this amount to be applied to future royalty payments.  Nellcor
shall deliver to Masimo within 60 days of the end of each quarter, an accounting
of Pulse Oximetry Revenue by product category.

--------------------------------------------------------------------------------

In Witness Whereof, the Parties have duly authorized and caused this Amendment
to be executed:

 

 

MASIMO CORPORATION

 

 

 

 

 

Dated:  1/24/06

 

By:

/s/ Joe Kiani

 

 

 

 

 

 

 

 

Name:

Joe Kiani

 

 

 

 

 

 

 

 

Title:

CEO

 

 

 

 

 

 

 

 

MASIMO LABORATORIES

 

 

 

 

 

Dated:  1/24/06

 

By:

/s/ Joe Kiani

 

 

 

 

 

 

 

 

Name:

Joe Kiani

 

 

 

 

 

 

 

 

Title:

CEO

 

 

 

 

 

 

 

 

TYCO HEALTHCARE GROUP LP

 

 

 

 

 

Dated:  1/24/06

 

By:

/s/ Richard J. Meelia

 

 

 

 

 

 

 

 

Name:

Richard J. Meelia

 

 

 

 

 

 

 

 

Title:

President

 

 

 

 

 

 

 

 

MALLINCKRODT INC.

 

 

 

 

 

Dated:  1/24/06

 

By:

/s/ Richard J. Meelia

 

 

 

 

 

 

 

 

Name:

Richard J. Meelia

 

 

 

 

 

 

 

 

Title:

President

 

 

 

 

 

 

 

 

NELLCOR PURITAN BENNETT INC.

 

 

 

 

 

Dated:  1/24/06

 

By:

/s/ Richard J. Meelia

 

 

 

 

 

 

 

 

Name:

Richard J. Meelia

 

 

 

 

 

 

 

 

Title:

President

 

 

 

 

 

 

 

2

--------------------------------------------------------------------------------

 

 

 

TYCO INTERNATIONAL LTD.

 

 

 

 

 

Dated:  1/24/06

 

By:

/s/ William B. Lytton

 

 

 

 

 

 

 

 

Name:

William B. Lytton

 

 

 

 

 

 

 

 

Title:

EVP & General Counsel

 

 

 

 

 

 

 

 

TYCO INTERNATIONAL (US) INC.

 

 

 

 

 

Dated:  1/24/06

 

By:

/s/ Richard J. Meelia

 

 

 

 

 

 

 

 

Name:

Richard J. Meelia

 

 

 

 

 

 

 

 

Title:

Vice President

 

 

 

 

 

 

 

3

--------------------------------------------------------------------------------