2007 Stock Incentive Plan



 Exhibit 10.33 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  
 As approved by the Board of Directors 
 on November 1, 2006 and amended 
 by the Board of Directors on May 24, 2007. 







 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 PLAN DOCUMENT 
  

 1. Establishment, Purpose, and Types of Awards 
 Masimo Corporation (the “Company”) hereby establishes this equity-based incentive compensation plan to be known as the “Masimo Corporation 2007 Stock Incentive Plan” (hereinafter referred to as the
“Plan”) in order to provide incentives and awards to select employees, directors, consultants, and advisors of the Company and its Affiliates. 
 (a) Awards. The Plan permits grants of the following types of awards (“Awards”), according to the Sections of the Plan listed here: 
  

			
	Section 6	  	    Options
	Section 7	  	    Share Appreciation Rights
	Section 8	  	    Restricted Shares, Restricted Share Units, and Unrestricted Shares
	Section 9	  	    Deferred Share Units
	Section 10	  	    Performance Awards

 (b) Effect on Other Plans. The Plan is not intended to affect and shall not affect any
stock options, equity-based compensation or other benefits that the Company or its Affiliates may have provided pursuant to any agreement, plan, or program that is independent of this Plan, including but not limited to the following plan: Masimo
Corporation 2004 Incentive Stock Option, Nonqualified Stock Option, and Restricted Stock Purchase Plan (the “2004 Plan”). Upon the effectiveness of this Plan, the Company shall not grant any future equity awards under the
2004 Plan. 
 2. Defined Terms 
 Terms in the Plan that begin with an initial capital letter have the defined meaning set forth in Appendix A, unless defined elsewhere in this Plan or the context of their use clearly indicates a
different meaning. 
 3. Shares Subject to the Plan 
 Subject to the provisions of Section 13: 
 (a) The maximum number of Shares that the Company may issue for all Awards is 1,000,000 Shares, as increased by the number of Shares permitted for issuance under the Plan pursuant to the terms of Section 3(b). 
 (b) For all Awards, the Shares issued pursuant to the Plan may be authorized but unissued Shares, or Shares that the Company has reacquired or otherwise
holds in treasury. Shares that are subject to an Award under this Plan, or to awards issued pursuant to the 2004 Plan, that for any reason expire, are forfeited, are cancelled, or become unexercisable, and Shares that are for any 

  

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other reason not paid or delivered under the Plan shall again, except to the extent prohibited by Applicable Law, be available for subsequent Awards under
this Plan. In addition, the Committee may make future Awards with respect to Shares that the Company retains from otherwise delivering pursuant to an Award under this Plan or the 2004 Plan either (i) as payment of the exercise price of an
Award, or (ii) in order to satisfy the withholding or employment taxes due upon grant, exercise, vesting or distribution of an Award. 
 (c) An annual increase in the number of Shares reserved for issuance pursuant to this Plan shall automatically occur on the first day of each fiscal year of the Company, beginning with fiscal year 2008, and the increase shall be equal to
three percent (3%) of outstanding Shares as of the last day of the immediately preceding fiscal year (rounded down to the nearest whole share). 
 (d) Notwithstanding the foregoing, but subject to adjustments pursuant to Section 13, the number of Shares that are available for ISO Awards shall be determined, to the extent required under applicable tax laws,
by reducing the number of Shares designated in Section 3(a) by the number of Shares issued pursuant to Awards, provided that any Shares that are either issued or purchased under the Plan and forfeited back to the Plan, or surrendered in payment
of the exercise price for an Award, shall be available for issuance pursuant to future ISO Awards. 
 4.
Administration 
 (a) General. The Committee shall administer the Plan in accordance with its terms,
provided that the Board may act in lieu of the Committee on any matter. The Committee shall hold meetings at such times and places as it may determine and shall make such rules and regulations for the conduct of its business as it deems advisable.
In the absence of a duly appointed Committee or if the Board otherwise chooses to act in lieu of the Committee, the Board shall function as the Committee for all purposes of the Plan. 
 (b) Committee Composition. The Board shall appoint the members of the Committee. If and to the extent permitted by Applicable Law, the
Committee may authorize one or more Reporting Persons (or other officers) to make Awards to Eligible Persons who are not Reporting Persons (or other officers whom the Committee has specifically authorized to make Awards). The Board may at any time
appoint additional members to the Committee, remove and replace members of the Committee with or without Cause, and fill vacancies on the Committee however caused. 
 (c) Powers of the Committee. Subject to the provisions of the Plan, the Committee shall have the authority, in its sole discretion: 
 (i) to determine Eligible Persons to whom Awards shall be granted from time to time and the number of Shares, units, or SARs to be covered
by each Award; 
 (ii) to determine, from time to time, the Fair Market Value of Shares; 
 (iii) to determine, and to set forth in Award Agreements, the terms and conditions of all Awards, including any applicable exercise or
purchase price, the installments and conditions under which an Award shall become vested (which may be based on performance), terminated, expired, cancelled, or replaced, and the circumstances for vesting acceleration or waiver of forfeiture
restrictions, and other restrictions and limitations; 
  

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 (iv) to approve the forms of Award Agreements and all other documents, notices and
certificates in connection therewith which need not be identical either as to type of Award or among Participants; 
 (v) to
construe and interpret the terms of the Plan and any Award Agreement, to determine the meaning of their terms, and to prescribe, amend, and rescind rules and procedures relating to the Plan and its administration; 
 (vi) in order to fulfill the purposes of the Plan and without amending the Plan, to modify, cancel, or waive the Company’s rights
with respect to any Awards, to adjust or to modify Award Agreements for changes in Applicable Law, and to recognize differences in foreign law, tax policies, or customs; and 
 (vii) to make all other interpretations and to take all other actions that the Committee may consider necessary or advisable to administer
the Plan or to effectuate its purposes. 
 Subject to Applicable Law and the restrictions set forth in the Plan, the Committee may delegate
administrative functions to individuals who are Reporting Persons, officers, or Employees of the Company or its Affiliates. 
 (d)
Deference to Committee Determinations. The Committee shall have the discretion to interpret or construe ambiguous, unclear, or implied (but omitted) terms in any fashion it deems to be appropriate in its sole discretion, and to make any
findings of fact needed in the administration of the Plan or Award Agreements. The Committee’s prior exercise of its discretionary authority shall not obligate it to exercise its authority in a like fashion thereafter. The Committee’s
interpretation and construction of any provision of the Plan, or of any Award or Award Agreement, shall be final, binding, and conclusive. The validity of any such interpretation, construction, decision or finding of fact shall not be given de novo
review if challenged in court, by arbitration, or in any other forum, and shall be upheld unless clearly made in bad faith or materially affected by fraud. 
 (e) No Liability; Indemnification. Neither the Board nor any Committee member, nor any Person acting at the direction of the Board or the Committee, shall be liable for any act, omission, interpretation,
construction or determination made in good faith with respect to the Plan, any Award or any Award Agreement. The Company and its Affiliates shall pay or reimburse any member of the Committee, as well as any Director, Employee, or Consultant who
takes action in connection with the Plan, for all expenses incurred with respect to the Plan, and, to the full extent allowable under Applicable Law, shall indemnify each and every one of them for any claims, liabilities, and costs (including
reasonable attorneys’ fees) arising out of their good faith performance of duties under the Plan. The Company and its Affiliates may obtain liability insurance for this purpose. 
  

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 5. Eligibility 
 (a) General Rule. The Committee may grant ISOs only to Employees (including officers who are Employees) of the Company or an Affiliate that is a
“parent corporation” or “subsidiary corporation” within the meaning of Section 424 of the Code, and may grant all other Awards to any Eligible Person. A Participant who has been granted an Award may be granted an additional
Award or Awards if the Committee shall so determine, if such person is otherwise an Eligible Person and if otherwise in accordance with the terms of the Plan. 
 (b) Grant of Awards. Subject to the express provisions of the Plan, the Committee shall determine from the class of Eligible Persons those individuals to whom Awards under the Plan may be granted, the number of
Shares subject to each Award, the price (if any) to be paid for the Shares or the Award and, in the case of Performance Awards, in addition to the matters addressed in Section 10, the specific objectives, goals and performance criteria that
further define the Performance Award. Each Award shall be evidenced by an Award Agreement signed by the Company and, if required by the Committee, by the Participant. The Award Agreement shall set forth the material terms and conditions of the Award
established by the Committee, and each Award shall be subject to the terms and conditions set forth in Sections 23, 24, and 26 unless otherwise specifically provided in an Award Agreement. 
 (c) Limits on Awards. During any calendar year, no Participant may receive Options and SARs that relate to more than 1,000,000 Shares. The
Committee will adjust this limitation pursuant to Section 13 below. The Committee will adjust this limitation pursuant to Section 13. 
 (d) Replacement Awards. Subject to Applicable Laws (including any associated stockholder approval requirements), the Committee may, in its sole discretion and upon such terms as it deems appropriate, require as a condition of the
grant of an Award to a Participant that the Participant surrender for cancellation some or all of the Awards that have previously been granted to the Participant under this Plan or otherwise. An Award that is conditioned upon such surrender may or
may not be the same type of Award, may cover the same (or a lesser or greater) number of Shares as such surrendered Award, may have other terms that are determined without regard to the terms or conditions of such surrendered Award, and may contain
any other terms that the Committee deems appropriate. In the case of Options, these other terms may not include an exercise price that is lower than the exercise price of the surrendered Option unless the Company’s stockholders approve the
Option grant itself or the program under which the Option grant is made pursuant to the Plan. 
 6. Option
Awards 
 (a) Types; Documentation. Subject to Section 5(a), the Committee may in its discretion grant Options pursuant to
Award Agreements that are delivered to Participants. Each Option shall be designated in the Award Agreement as an ISO or a Non-ISO, and the same Award Agreement may grant both types of Options. At the sole discretion of the Committee, any Option may
be exercisable, in whole or in part, immediately upon the grant thereof, or only after the occurrence of a specified event, or only in installments, which installments may vary. Options granted under the Plan may contain such terms and provisions
not inconsistent with the Plan that the Committee shall deem advisable in its sole and absolute discretion. 
  

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 (b) ISO $100,000 Limitation. To the extent that the aggregate Fair Market Value of Shares with
respect to which Options designated as ISOs first become exercisable by a Participant in any calendar year (under this Plan and any other plan of the Company or any Affiliate) exceeds $100,000, such excess Options shall automatically be treated as
Non-ISOs. For purposes of determining whether the $100,000 limit is exceeded, the Fair Market Value of the Shares subject to an ISO shall be determined as of the Grant Date. In reducing the number of Options treated as ISOs to meet the $100,000
limit, the most recently granted Options shall be reduced first. In the event that Section 422 of the Code is amended to alter the limitation set forth therein, the limitation of this Section 6(b) shall be automatically adjusted
accordingly. 
 (c) Term of Option. Each Award Agreement shall specify a term at the end of which the Option automatically expires,
subject to earlier termination provisions contained in Section 6(h); provided that the term of any Option may not exceed ten years from the Grant Date. In the case of an ISO granted to an Employee who is a Ten Percent Holder on the Grant Date,
the term of the ISO shall not exceed five years from the Grant Date. 
 (d) Exercise Price. The exercise price of an Option shall be
determined by the Committee in its sole discretion and shall be set forth in the Award Agreement, provided that: 
 (i) if an
ISO is granted to an Employee who on the Grant Date is a Ten Percent Holder, the per Share exercise price shall not be less than 110% of the Fair Market Value per Share on the Grant Date; and 
 (ii) for all other Options, such per Share exercise price shall not be less than 100% of the Fair Market Value per Share on the Grant
Date. 
 Neither the Company nor the Committee shall, without stockholder approval, allow for a repricing of Options within the meaning of
the federal securities laws applicable to proxy statement disclosures. 
 (e) Exercise of Option. The times, circumstances and
conditions under which an Option shall be exercisable shall be determined by the Committee in its sole discretion and set forth in the Award Agreement. The Committee shall have the discretion to determine whether and to what extent the vesting of
Options shall be tolled during any unpaid leave of absence; provided, however, that in the absence of such determination, vesting of Options shall be tolled during any such leave approved by the Company. 
 (f) Minimum Exercise Requirements. An Option may not be exercised for a fraction of a Share. The Committee may require in an Award Agreement that
an Option be exercised as to a minimum number of Shares, provided that such requirement shall not prevent a Participant from purchasing the full number of Shares as to which the Option is then exercisable. 
 (g) Methods of Exercise. Prior to its expiration pursuant to the terms of the applicable Award Agreement, and subject to the times,
circumstances and conditions for exercise contained in the applicable Award Agreement, each Option may be exercised, in whole or in part (provided that the Company shall not be required to issue fractional shares), by delivery of written notice of
exercise to the secretary of the Company accompanied by payment of the full exercise price of the Shares being purchased. The Committee shall determine the acceptable methods of payment for 

  

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exercise of the Option on the Grant Date and it shall be included in the applicable Award Agreement. The methods of payment that the Committee may in its
discretion accept or commit to accept in an Option Award Agreement include: 
 (i) cash or check payable to the Company (in
U.S. dollars); 
 (ii) other Shares that (A) are owned by the Participant who is purchasing Shares pursuant to an Option,
(B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which the Option is being exercised, (C) were not acquired by such Participant pursuant to the exercise of an Option, unless
such Shares have been owned by such Participant for at least six months or such longer period as the Committee may determine, (D) are all, at the time of such surrender, free and clear of any and all claims, pledges, liens and encumbrances, or
any restrictions which would in any manner restrict the transfer of such shares to or by the Company (other than such restrictions as may have existed prior to an issuance of such Shares by the Company to such Participant), and (E) are duly
endorsed for transfer to the Company; 
 (iii) a cashless exercise program that the Committee may approve, from time to time
in its discretion, pursuant to which a Participant may concurrently provide irrevocable instructions (A) to such Participant’s broker or dealer to effect the immediate sale of the purchased Shares and remit to the Company, out of the sale
proceeds available on the settlement date, sufficient funds to cover the exercise price of the Option plus all applicable taxes required to be withheld by the Company by reason of such exercise, and (B) to the Company to deliver the
certificates for the purchased Shares directly to such broker or dealer in order to complete the sale; or 
 (iv) any
combination of the foregoing methods of payment. 
 The Company shall not be required to deliver Shares pursuant to the exercise of an Option
until payment of the full exercise price therefore is received by the Company. 
 (h) Termination of Continuous Service. The Committee
may establish and set forth in the applicable Award Agreement the terms and conditions on which an Option shall remain exercisable, if at all, following termination of a Participant’s Continuous Service. The Committee may waive or modify these
provisions at any time. To the extent that a Participant is not entitled to exercise an Option at the date of his or her termination of Continuous Service, or if the Participant (or other person entitled to exercise the Option) does not exercise the
Option to the extent so entitled within the time specified in the Award Agreement or below (as applicable), the Option shall terminate and the Shares underlying the unexercised portion of the Option shall revert to the Plan and become available for
future Awards. Notwithstanding any other provision in this Plan, in no event may any Option be exercised after the expiration of the Option term as set forth in the Award Agreement. 
 The following provisions shall apply to the extent an Award Agreement does not specify the terms and conditions upon which an Option shall terminate when
there is a termination of a Participant’s Continuous Service: 
 (i) Termination other than Upon Disability or Death
or for Cause. In the event of termination of a Participant’s Continuous Service (other than as a result of Participant’s 

  

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death, disability or termination for Cause), the Participant shall have the right to exercise an Option at any time within 90 days following such termination
to the extent the Participant was entitled to exercise such Option at the date of such termination. 
 (ii) Disability.
In the event of termination of a Participant’s Continuous Service as a result of his or her being Disabled, the Participant shall have the right to exercise an Option at any time within one year following such termination to the extent the
Participant was entitled to exercise such Option at the date of such termination. 
 (iii) Death. In the event of the
death of a Participant either during the period of Continuous Service since the Grant Date of an Option, or within thirty days following termination of the Participant’s Continuous Service for any reason other than due to Cause, the Option may
be exercised, at any time within one year following the date of the Participant’s death, by the Participant’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent the right
to exercise the Option had vested as of the earlier to occur of the date of the Participant’s death or the date the Participant’s Continuous Service terminated. 
 (iv) Cause. If the Committee determines that a Participant’s Continuous Service terminated due to Cause, the Participant shall
immediately forfeit the right to exercise any Option, and any such Option shall be considered immediately null and void. 
 (i) Reverse
Vesting. The Committee in its sole discretion may allow a Participant to exercise unvested Non-ISOs, in which case the Shares then issued shall be Restricted Shares having analogous vesting restrictions to the unvested Non-ISOs. 
 7. Share Appreciate Rights (SARs) 
 (a) Grants. The Committee may in its discretion grant Share Appreciation Rights to any Eligible Person pursuant to Award Agreements, in any of the following forms: 
 (i) SARs Related to Options. The Committee may grant SARs either concurrently with the grant of an Option or with respect to an
outstanding Option, in which case the SAR shall extend to all or a portion of the Shares covered by the related Option. An SAR shall entitle the Participant who holds the related Option, upon exercise of the SAR and surrender of the related Option,
or portion thereof, to the extent the SAR and related Option each were previously unexercised, to receive payment of an amount determined pursuant to Sections 7(e) and 7(f). Any SAR granted in connection with an ISO will contain such terms as may be
required to comply with the provisions of Section 422 of the Code and the regulations promulgated thereunder. 
 (ii)
SARs Independent of Options. The Committee may grant SARs which are independent of any Option subject to such conditions as the Committee may in its discretion determine, which conditions will be set forth in the applicable Award Agreement.

 (iii) Limited SARs. The Committee may grant SARs exercisable only upon or in respect of a Change in Control or any
other specified event, and such limited SARs may relate to or operate in tandem or combination with or substitution for Options or other 

  

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SARs, or on a stand-alone basis, and may be payable in cash or Shares based on the spread between the exercise price of the SAR, and (A) a price based
upon or equal to the Fair Market Value of the Shares during a specified period, at a specified time within a specified period before, after or including the date of such event, or (B) a price related to consideration payable to Company’s
stockholders generally in connection with the event. 
 (b) Exercise Price. The per Share exercise price of an SAR shall be determined
in the sole discretion of the Committee, shall be set forth in the applicable Award Agreement, and shall be no less than 100% of the Fair Market Value of one Share. The exercise price of an SAR related to an Option shall be the same as the exercise
price of the related Option. Neither the Company nor the Committee shall, without stockholder approval, allow for a repricing of any SAR within the meaning of federal securities laws applicable to proxy statement disclosures. 
 (c) Exercise of SARs. Unless the Award Agreement otherwise provides, an SAR related to an Option will be exercisable at such time or times, and to
the extent, that the related Option will be exercisable; provided that the Award Agreement shall not, without the approval of the stockholders of the Company, provide for a vesting period for the exercise of the SAR that is more favorable to
the Participant than the exercise period for the related Option. An SAR may not have a term exceeding ten years from its Grant Date. An SAR granted independently of any other Award will be exercisable pursuant to the terms of the Award Agreement.
Whether an SAR is related to an Option or is granted independently, the SAR may only be exercised when the Fair Market Value of the Shares underlying the SAR exceeds the exercise price of the SAR. 
 (d) Effect on Available Shares. All SARs that are settled in shares of the Company’s stock shall be counted in full against the number of
shares available for award under the Plan, regardless of the number of shares actually issued upon settlement of the SARs. 
 (e) Payment.
Upon exercise of an SAR related to an Option and the attendant surrender of an exercisable portion of any related Award, the Participant will be entitled to receive payment of an amount determined by multiplying: 
 (i) the excess of the Fair Market Value of a Share on the date of exercise of the SAR over the exercise price per Share of the SAR, by

 (ii) the number of Shares with respect to which the SAR has been exercised. 
 Notwithstanding the foregoing, an SAR granted independently of an Option (i) may limit the amount payable to the Participant to a percentage
specified in the Award Agreement but not exceeding 100% of the amount determined pursuant to the preceding sentence, and (ii) shall be subject to any payment or other restrictions that the Committee may at any time impose in its discretion,
including restrictions intended to conform the SARs with Section 409A of the Code. 
 (f) Form and Terms of Payment.
Subject to Applicable Law, the Committee may, in its sole discretion, settle the amount determined under Section 7(e) solely in cash, solely in Shares (valued at their Fair Market Value on the date of exercise of the SAR), or partly in cash and
partly in Shares, with cash paid in lieu of fractional shares. Unless otherwise provided in an Award Agreement, all SARs shall be settled in Shares as soon as practicable after exercise. 
  

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 (g) Termination of Employment or Consulting Relationship. The Committee shall establish and
set forth in the applicable Award Agreement the terms and conditions on which an SAR shall remain exercisable, if at all, following termination of a Participant’s Continuous Service. The provisions of Section 6(h) shall apply to the extent
an Award Agreement does not specify the terms and conditions upon which an SAR shall terminate when a Participant’s Continuous Service terminates. 
 8. Restricted Shares, Restricted Share Units and Unrestricted Shares 
 (a) Grants. The
Committee may in its sole discretion grant restricted shares (“Restricted Shares”) to any Eligible Person and shall evidence such grant in an Award Agreement that is delivered to the Participant and that sets forth the number
of Restricted Shares, the purchase price for such Restricted Shares (if any), and the terms upon which the Restricted Shares may become vested. In addition, the Company may in its discretion grant to any Eligible Person the right to receive Shares
after certain vesting requirements are met (“Restricted Share Units”), and shall evidence such grant in an Award Agreement that is delivered to the Participant and that sets forth the number of Shares (or formula, that may be
based on future performance or conditions, for determining the number of Shares) that the Participant shall be entitled to receive upon vesting and the terms upon which the Shares subject to a Restricted Share Unit may become vested. The Committee
may condition any Award of Restricted Shares or Restricted Share Units to a Participant on receiving from the Participant such further assurances and documents as the Committee may require to enforce the restrictions. In addition, the Committee may
grant Awards hereunder in the form of unrestricted shares (“Unrestricted Shares”), which shall vest in full upon the date of grant or such other date as the Committee may determine or which the Committee may issue pursuant to
any program under which one or more Eligible Persons (selected by the Committee in its sole discretion) elect to pay for such Shares or to receive Unrestricted Shares in lieu of cash bonuses that would otherwise be paid. 
 (b) Vesting and Forfeiture. The Committee shall set forth in an Award Agreement granting Restricted Shares or Restricted Share Units, the terms
and conditions under which the Participant’s interest in the Restricted Shares or the Shares subject to Restricted Share Units will become vested and non-forfeitable. Except as set forth in the applicable Award Agreement or the Committee
otherwise determines, upon termination of a Participant’s Continuous Service for any other reason, the Participant shall forfeit his or her Restricted Shares and Restricted Share Units; provided that if a Participant purchases the
Restricted Shares and forfeits them for any reason, the Company shall return the purchase price to the Participant only if and to the extent set forth in an Award Agreement. 
 (c) Issuance of Restricted Shares Prior to Vesting. The Company shall issue stock certificates that evidence Restricted Shares pending the lapse
of applicable restrictions, and that bear a legend making appropriate reference to such restrictions. Except as set forth in the applicable Award Agreement or as the Committee otherwise determines, the Company or a third party that the Company
designates shall hold such Restricted Shares and any dividends that accrue with respect to Restricted Shares pursuant to Section 8(e) below. 
 (d) Issuance of Shares upon Vesting. As soon as practicable after vesting of a Participant’s Restricted Shares (or Shares underlying Restricted Share Units) and the Participant’s satisfaction of applicable tax withholding
requirements, the Company shall release to the Participant, free from the 

  

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vesting restrictions, one Share for each vested Restricted Share (or issue one Share free of the vesting restriction for each vested Restricted Share Unit),
unless an Award Agreement provides otherwise. No fractional shares shall be distributed, and cash shall be paid in lieu thereof. 
 (e)
Dividends Payable on Vesting. Unless otherwise provided in an Award Agreement, whenever Unrestricted Shares are issued to a Participant pursuant to Section 8(d) above, the Participant shall also receive, with respect to each Share
issued, (i) a number of Shares equal to the stock dividends which were declared and paid to the holders of Shares between the Grant Date and the date such Share is issued, and (ii) a number of Shares having a Fair Market Value equal to any
cash dividends that were paid to the holders of Shares based on a record date between the Grant Date and the date such Share is issued. 
 (f) Section 83(b) Elections. A Participant may make an election under Section 83(b) of the Code (the “Section 83(b) Election”) with respect to Restricted Shares. If a Participant who has received
Restricted Share Units provides the Committee with written notice of his or her intention to make a Section 83(b) Election with respect to the Shares subject to such Restricted Share Units, the Committee may in its discretion convert the
Participant’s Restricted Share Units into Restricted Shares, on a one-for-one basis, in full satisfaction of the Participant’s Restricted Share Unit Award. The Participant may then make a Section 83(b) Election with respect to those
Restricted Shares. Shares with respect to which a Participant makes a Section 83(b) Election shall not be eligible for deferral pursuant to Section 9. 
 (g) Deferral Elections. At any time within the 30-day period (or other shorter or longer period that the Committee selects in its sole discretion) in which a Participant who is a member of a select group of
management or highly compensated employees (within the meaning of the Code) receives an Award of either Restricted Shares or Restricted Share Units (or before the calendar year in which such a Participant receives a subsequent Award, subject to
adjustments by the Committee in accordance with Code Section 409A), the Committee may permit the Participant to irrevocably elect, on a form provided by and acceptable to the Committee, to defer the receipt of all or a percentage of the Shares
that would otherwise be transferred to the Participant upon the vesting of such Award. If the Participant makes this election, the Shares subject to the election, and any associated dividends and interest, shall be credited to an account established
pursuant to Section 9 on the date such Shares would otherwise have been released or issued to the Participant pursuant to Section 8(d) and no vesting shall occur (other than for death or Disability if provided pursuant to the Award
Agreement) within the 12-month period following the date of the Participant’s election. 
 9. Deferred Share
Units 
 (a) Elections to Defer. The Committee may permit any Eligible Person who is a Director, Consultant or member of a
select group of management or highly compensated employees (within the meaning of the Code) to irrevocably elect, on a form provided by and acceptable to the Committee (the “Election Form”), to forego the receipt of cash or
other compensation (including the Shares deliverable pursuant to any Award other than Restricted Shares for which a Section 83(b) Election has been made), and in lieu thereof to have the Company credit to an internal Plan account (the
“Account”) a number of deferred share units (“Deferred Share Units”) having a Fair Market Value equal to the Shares and other compensation deferred. These credits will be made at the end of each
calendar month during which compensation is deferred. Each Election Form shall take effect on the first day of the next calendar year (or on the first day of the next calendar month in the 

  

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case of an initial election by a Participant who first becomes eligible to defer hereunder, subject to adjustments by the Committee in accordance with Code
Section 409A) after its delivery to the Company, subject to Section 8(g) regarding deferral of Restricted Shares and Restricted Share Units and to Section 10(e) regarding deferral of Performance Awards, unless the Company sends the
Participant a written notice explaining why the Election Form is invalid within five business days after the Company receives it. Notwithstanding the foregoing sentence: (i) Election Forms shall be ineffective with respect to any compensation
that a Participant earns before the date on which the Company receives the Election Form, and (ii) the Committee may unilaterally make awards in the form of Deferred Share Units, regardless of whether or not the Participant foregoes other
compensation. 
 (b) Vesting. Unless an Award Agreement expressly provides otherwise, each Participant shall be 100% vested at all
times in any Shares subject to Deferred Share Units. 
 (c) Issuances of Shares. The Company shall provide a Participant with one
Share for each Deferred Share Unit in five substantially equal annual installments that are issued before the last day of each of the five calendar years that end after the date on which the Participant’s Continuous Service terminates,
unless: 
 (i) the Participant has properly elected a different form of distribution, on a form approved by the
Committee, that permits the Participant to select any combination of a lump sum and annual installments that are completed within ten years following termination of the Participant’s Continuous Service, and 
 (ii) the Company received the Participant’s distribution election form at the time the Participant elects to defer the receipt of
cash or other compensation pursuant to Section 9(a), provided that such election may be changed through any subsequent election that (i) is delivered to the Company at least one year before the date on which distributions are otherwise
scheduled to commence pursuant to the Participant’s election, and (ii) defers the commencement of distributions by at least five years from the originally scheduled commencement date. 
 Fractional shares shall not be issued, and instead shall be paid out in cash. 
 (d) Crediting of Dividends. Unless otherwise provided in an Award Agreement, whenever Shares are issued to a Participant pursuant to
Section 9(c), the Participant shall also receive, with respect to each Share issued, (i) a number of Shares equal to any stock dividends which were declared and paid to the holders of Shares between the Grant Date and the date such Share
is issued, and (ii) a number of Shares having a Fair Market Value equal to any cash dividends that were paid to the holders of Shares based on a record date between the Grant Date and the date such Share is issued. 
 (e) Emergency Withdrawals. In the event a Participant suffers an unforeseeable emergency within the contemplation of this Section and
Section 409A of the Code, the Participant may apply to the Company for an immediate distribution of all or a portion of the Participant’s Deferred Share Units. The unforeseeable emergency must result from a sudden and unexpected illness or
accident of the Participant, the Participant’s spouse, or a dependent (within the meaning of Section 152(a) of the Code) of the Participant, casualty loss of the Participant’s property, or other similar extraordinary 

  

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and unforeseeable conditions beyond the control of the Participant. Examples of purposes which are not considered unforeseeable emergencies include
post-secondary school expenses or the desire to purchase a residence. In no event will a distribution be made to the extent the unforeseeable emergency could be relieved through reimbursement or compensation by insurance or otherwise, or by
liquidation of the Participant’s nonessential assets to the extent such liquidation would not itself cause a severe financial hardship. The amount of any distribution hereunder shall be limited to the amount necessary to relieve the
Participant’s unforeseeable emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution. The Committee shall determine whether a Participant has a qualifying unforeseeable emergency and the amount which
qualifies for distribution, if any. The Committee may require evidence of the purpose and amount of the need, and may establish such application or other procedures as it deems appropriate. 
 (f) Unsecured Rights to Deferred Compensation. A Participant’s right to Deferred Share Units shall at all times constitute an
unsecured promise of the Company to pay benefits as they come due. The right of the Participant or the Participant’s duly-authorized transferee to receive benefits hereunder shall be solely an unsecured claim against the general assets of the
Company. Neither the Participant nor the Participant’s duly-authorized transferee shall have any claim against or rights in any specific assets, shares, or other funds of the Company. 
 10. Performance Awards 
 (a) Performance Units. Subject to the limitations set forth in Section 10(c), the Committee may in its discretion grant Performance Units to any Eligible Person and shall evidence such grant in an Award
Agreement that is delivered to the Participant which sets forth the terms and conditions of the Award. 
 (b) Performance Compensation
Awards. Subject to the limitations set forth in Section 10(c), the Committee may, at the time of grant of a Performance Unit, designate such Award as a “Performance Compensation Award” (payable in cash or Shares) in order that
such Award constitutes “qualified performance-based compensation” under Code Section 162(m), in which event the Committee shall have the power to grant such Performance Compensation Award upon terms and conditions that qualify it as
“qualified performance-based compensation” within the meaning of Code Section 162(m). With respect to each such Performance Compensation Award, the Committee shall establish, in writing within the time required under Code
Section 162(m), a “Performance Period,” “Performance Measure(s)”, and “Performance Formula(e)” (each such term being hereinafter defined). Once established for a Performance Period, the Performance Measure(s) and
Performance Formula(e) shall not be amended or otherwise modified to the extent such amendment or modification would cause the compensation payable pursuant to the Award to fail to constitute qualified performance-based compensation under Code
Section 162(m). 
 A Participant shall be eligible to receive payment in respect of a Performance Compensation Award only to the extent
that the Performance Measure(s) for such Award is achieved and the Performance Formula(e) as applied against such Performance Measure(s) determines that all or some portion of such Participant’s Award has been earned for the Performance Period.
As soon as practicable after the close of each Performance Period, the Committee shall review and certify in writing whether, and to what extent, the Performance Measure(s) for the Performance Period have been achieved and, if so, determine and
certify in writing the amount of the Performance Compensation Award to be paid to the Participant and, in so doing, may use negative discretion to decrease, but not increase, the amount of the Award otherwise payable to the Participant based upon
such performance. 
  

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 (c) Limitations on Awards. The maximum Performance Unit Award and the maximum Performance
Compensation Award that any one Participant may receive for any one Performance Period shall not together exceed 1,000,000 Shares and $1,000,000 in cash. The Committee shall have the discretion to provide in any Award Agreement that any amounts
earned in excess of these limitations will either be credited as Deferred Share Units, or as deferred cash compensation under a separate plan of the Company (provided in the latter case that such deferred compensation either bears a reasonable rate
of interest or has a value based on one or more predetermined actual investments). Any amounts for which payment to the Participant is deferred pursuant to the preceding sentence shall be paid to the Participant in a future year or years not earlier
than, and only to the extent that, the Participant is either not receiving compensation in excess of these limits for a Performance Period, or is not subject to the restrictions set forth under Section 162(b) of the Code. 
 (d) Definitions. 
 (i) “Performance Formula” means, for a Performance Period, one or more objective formulas or standards established by the Committee for purposes of determining whether or the extent to which an Award has been earned
based on the level of performance attained or to be attained with respect to one or more Performance Measure(s). Performance Formulae may vary from Performance Period to Performance Period and from Participant to Participant and may be established
on a stand-alone basis, in tandem or in the alternative. 
 (ii) “Performance Measure” means one or
more of the following selected by the Committee to measure Company, Affiliate, and/or business unit performance for a Performance Period, whether in absolute or relative terms (including, without limitation, terms relative to a peer group or index):
basic, diluted, or adjusted earnings per share; sales or revenue; earnings before interest, taxes, and other adjustments (in total or on a per share basis); basic or adjusted net income; returns on equity, assets, capital, revenue or similar
measure; economic value added; working capital; total shareholder return; and product development, product market share, research, licensing, litigation, human resources, information services, mergers, acquisitions, sales of assets of Affiliates or
business units. Each such measure shall be, to the extent applicable, determined in accordance with generally accepted accounting principles as consistently applied by the Company (or such other standard applied by the Committee) and, if so
determined by the Committee, and in the case of a Performance Compensation Award, to the extent permitted under Code Section 162(m), adjusted to omit the effects of extraordinary items, gain or loss on the disposal of a business segment,
unusual or infrequently occurring events and transactions and cumulative effects of changes in accounting principles. Performance Measures may vary from Performance Period to Performance Period and from Participant to Participant, and may be
established on a stand-alone basis, in tandem or in the alternative. 
 (iii) “Performance Period”
means one or more periods of time (of not less than one fiscal year of the Company), as the Committee may designate, over which the attainment of one or more Performance Measure(s) will be measured for the purpose of determining a Participant’s
rights in respect of an Award. 
  

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 (e) Deferral Elections. At any time prior to the date that is at least six months before the close
of a Performance Period (or shorter or longer period that the Committee selects) with respect to an Award of either Performance Units or Performance Compensation, the Committee may permit a Participant who is a member of a select group of management
or highly compensated employees (within the meaning of the Code) to irrevocably elect, on a form provided by and acceptable to the Committee, to defer the receipt of all or a percentage of the cash or Shares that would otherwise be transferred to
the Participant upon the vesting of such Award. If the Participant makes this election, the cash or Shares subject to the election, and any associated interest and dividends, shall be credited to an account established pursuant to Section 9 on
the date such cash or Shares would otherwise have been released or issued to the Participant pursuant to Section 10(a) or Section 10(b). 
 11. Taxes 
 (a) General. As a condition to the issuance or distribution of Shares
pursuant to the Plan, the Participant (or in the case of the Participant’s death, the person who succeeds to the Participant’s rights) shall make such arrangements as the Company may require for the satisfaction of any applicable federal,
state, local or foreign withholding tax obligations that may arise in connection with the Award and the issuance of Shares. The Company shall not be required to issue any Shares until such obligations are satisfied. If the Committee allows the
withholding or surrender of Shares to satisfy a Participant’s tax withholding obligations, the Committee shall not allow Shares to be withheld in an amount that exceeds the minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes. 
 (b) Default Rule for Employees. In the absence of any other arrangement, an Employee shall be deemed to
have directed the Company to withhold or collect from his or her cash compensation an amount sufficient to satisfy such tax obligations from the next payroll payment otherwise payable after the date of the exercise of an Award. 
 (c) Special Rules. In the case of a Participant other than an Employee (or in the case of an Employee where the next payroll payment is not
sufficient to satisfy such tax obligations, with respect to any remaining tax obligations), in the absence of any other arrangement and to the extent permitted under Applicable Law, the Participant shall be deemed to have elected to have the Company
withhold from the Shares or cash to be issued pursuant to an Award that number of Shares having a Fair Market Value determined as of the applicable Tax Date (as defined below) or cash equal to the amount required to be withheld. For purposes of this
Section 11, the Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined under the Applicable Law (the “Tax Date”). 
 (d) Surrender of Shares. If permitted by the Committee, in its discretion, a Participant may satisfy the minimum applicable tax withholding and
employment tax obligations associated with an Award by surrendering Shares to the Company (including Shares that would otherwise be issued pursuant to the Award) that have a Fair Market Value determined as of the applicable Tax Date equal to the
amount required to be withheld. In the case of Shares previously acquired from the Company that are surrendered under this Section 11, such Shares must have been owned by the Participant for more than six months on the date of surrender (or
such longer period of time the Company may in its discretion require). 
  

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 (e) Income Taxes and Deferred Compensation. Participants are solely responsible and liable for the
satisfaction of all taxes and penalties that may arise in connection with Awards (including any taxes arising under Section 409A of the Code), and the Company shall not have any obligation to indemnify or otherwise hold any Participant harmless
from any or all of such taxes. The Committee shall have the discretion to organize any deferral program, to require deferral election forms, and to grant or to unilaterally modify any Award in a manner (i) that conforms with the requirements of
Section 409A of the Code with respect to compensation that is deferred and that vests after December 31, 2004, (ii) that voids any Participant election to the extent it would violate Section 409A of the Code, and (iii) for
any distribution election that would violate Section 409A of the Code, to make distributions pursuant to the Award at the earliest to occur of a distribution event that is allowable under Section 409A of the Code or any distribution event
that is both allowable under Section 409A of the Code and is elected by the Participant, subject to any valid second election to defer, provided that the Committee permits second elections to defer in accordance with Section 409A(a)(4)(C)
of the Code. The Committee shall have the sole discretion to interpret the requirements of the Code, including Section 409A, for purposes of the Plan and all Awards. 
 12. Non-Transferability of Awards 
 (a) General. Except as set forth in this Section 12, or as otherwise approved by the Committee, Awards may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than
by will or by the laws of descent or distribution, or in the case of an option other than an ISO, pursuant to a domestic relations order as defined under Rule 16a-12 under the Exchange Act. The designation of a beneficiary by a Participant will not
constitute a transfer. An Award may be exercised, during the lifetime of the holder of an Award, only by such holder, the duly-authorized legal representative of a Participant who is Disabled, a transferee permitted by this Section 12, or
except as would cause an ISO to lose such status, by a bankruptcy trustee. 
 (b) Limited Transferability Rights.
Notwithstanding anything else in this Section 12, the Committee may in its discretion provide in an Award Agreement that an Award relating to non-ISOs, SARs settled only in Shares, Restricted Shares, or Performance Shares may be
transferred, on such terms and conditions as the Committee deems appropriate, either (i) by instrument to the Participant’s “Immediate Family” (as defined below), (ii) by instrument to an inter vivos or
testamentary trust (or other entity) in which the Award is to be passed to the Participant’s designated beneficiaries, or (iii) by gift to charitable institutions. Each share of restricted stock shall be non-transferable until such share
becomes non-forfeitable. Any transferee of the Participant’s rights shall succeed and be subject to all of the terms of the applicable Award Agreement and the Plan. “Immediate Family” means any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall include adoptive relationships. 
 13. Adjustments Upon Changes in Capitalization, Dissolution, Liquidation or a Change in Control 
 (a) Changes in Capitalization. The Committee shall equitably adjust the number of Shares covered by each outstanding Award, and the number of
Shares that have been authorized for issuance under the Plan but as to which no Awards have yet been granted or that have been returned to the Plan upon cancellation, forfeiture, or expiration of an Award, as well as the price per Share covered by
each such outstanding Award, to reflect any increase or decrease in the number of 

  

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issued Shares resulting from a stock split, reverse stock split, stock dividend, combination, recapitalization or reclassification of the Shares, or any
other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company, in each case effected at any time after this Plan is approved by the Board (even though prior to the IPO Date). In the event of any
such transaction or event, the Committee may provide in substitution for any or all outstanding Awards under the Plan such alternative consideration (including securities of any surviving entity) as it may in good faith determine to be equitable
under the circumstances and may require in connection therewith the surrender of all Awards so replaced. In any case, such substitution of securities shall not require the consent of any person who is granted Awards pursuant to the Plan. Except as
expressly provided herein, or in an Award Agreement, if the Company issues for consideration shares of stock of any class or securities convertible into shares of stock of any class, the issuance shall not affect, and no adjustment by reason thereof
shall be required to be made with respect to the number or price of Shares subject to any Award. 
 (b) Dissolution or Liquidation. In
the event of the dissolution or liquidation of the Company other than as part of a Change in Control, each Award will terminate immediately prior to the consummation of such action, subject to the ability of the Committee to exercise any discretion
authorized in the case of a Change in Control. 
 (c) Change in Control. In the event of a Change in Control, the Committee may in its
sole and absolute discretion and authority, without obtaining the approval or consent of the Company’s stockholders or any Participant with respect to his or her outstanding Awards, take one or more of the following actions: 
 (i) cause or otherwise provide that each outstanding Award shall be assumed through the continuation of the Plan and the assumption of the
agreements covering the Award or substituted for a substantially similar award issued by a successor entity or a parent or subsidiary of such successor entity (the “Successor Entity”), in each case with appropriate
adjustments as to the number and kind of shares subject to the Award, the exercise price of such Award and such other terms deemed appropriate, as applicable; 
 (ii) arrange or otherwise provide for the payment of cash or other consideration to Participants in exchange for the satisfaction and
cancellation of outstanding Awards; 
 (iii) accelerate in part or in full to a date prior to the effective time of such
Change in Control as the Committee shall determine (or, if the Committee shall not determine such a date, to the date that is three days prior to the effective time of the Change in Control) the vesting of Awards so that Awards shall vest (and, to
the extent applicable, become exercisable) as to the Shares that otherwise would have been unvested and provide that repurchase rights of the Company with respect to Shares issued upon exercise of an Award shall lapse as to the Shares subject to
such repurchase right; or 
 (iv) make such other modifications, adjustments or amendments to outstanding Awards or this Plan
as the Committee deems necessary or appropriate, subject, however, to the terms of Section 15(a). 
  

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 Notwithstanding the above, (i) to the extent that an Award is not exercised prior to consummation of
a transaction, including a Change in Control, in which the Award is not being assumed or substituted for in such transaction, such Award shall automatically terminate as of immediately prior to the consummation of such transaction; and (ii) in
the event a Participant holding an Award assumed or substituted by the Successor Entity in a Change in Control is Involuntarily Terminated by the Successor Entity in connection with, or within 12 months following consummation of, the Change in
Control, then any assumed or substituted Award held by the terminated Participant at the time of termination shall accelerate and become fully vested (and exercisable in full in the case of Options and SARs), and any repurchase right applicable to
any Shares shall lapse in full, unless an Award Agreement provides for a more restrictive acceleration or vesting schedule or more restrictive limitations on the lapse of repurchase rights or otherwise places additional restrictions, limitations and
conditions on an Award. The acceleration of vesting and lapse of repurchase rights provided for in the previous sentence shall occur immediately prior to the effective time of the Participant’s termination, unless an Award Agreement provides
otherwise. 
 (d) Certain Distributions. In the event of any distribution to the Company’s stockholders of securities of any
other entity or other assets (other than dividends payable in cash or stock of the Company) without receipt of consideration by the Company, the Committee may, in its discretion, appropriately adjust the price per Share covered by each outstanding
Award to reflect the effect of such distribution. 
 14. Time of Granting Awards. 
 The date of grant (“Grant Date”) of an Award shall be the date on which the Committee makes the determination granting such Award
or such other date as is determined by the Committee and set forth in the Award Agreement, provided that in the case of an ISO, the Grant Date shall be the later of the date on which the Committee makes the determination granting such ISO or the
date of commencement of the Participant’s employment relationship with the Company. 
 15. Modification of Awards
and Substitution of Options. 
 (a) Modification, Extension, and Renewal of Awards. Within the limitations of the Plan, the
Committee may modify an Award to accelerate the rate at which an Option or SAR may be exercised (including without limitation permitting an Option or SAR to be exercised in full without regard to the installment or vesting provisions of the
applicable Award Agreement or whether the Option or SAR is at the time exercisable, to the extent it has not previously been exercised), to accelerate the vesting of any Award, to extend or renew outstanding Awards or to accept the cancellation of
outstanding Awards to the extent not previously exercised. However, the Committee may not cancel an outstanding option that is underwater for the purpose of reissuing the option to the participant at a lower exercise price or granting a replacement
award of a different type. Notwithstanding the foregoing provision, no modification of an outstanding Award shall materially and adversely affect such Participant’s rights thereunder, unless either the Participant provides written consent or
there is an express Plan provision permitting the Committee to act unilaterally to make the modification. 
 (b) Substitution of
Options. Notwithstanding any inconsistent provisions or limits under the Plan, in the event the Company or an Affiliate acquires (whether by purchase, merger or otherwise) all or substantially all of outstanding capital stock or assets of
another corporation or in 

  

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the event of any reorganization or other transaction qualifying under Section 424 of the Code, the Committee may, in accordance with the provisions of
that Section, substitute Options for options under the plan of the acquired company provided (i) the excess of the aggregate fair market value of the shares subject to an option immediately after the substitution over the aggregate option price
of such shares is not more than the similar excess immediately before such substitution and (ii) the new option does not give persons additional benefits, including any extension of the exercise period. 
 16. Term of Plan. 
 The Plan shall continue in effect for a term of ten years from its effective date as determined under Section 20, unless the Plan is sooner terminated under Section 17. 
 17. Amendment and Termination of the Plan. 
 (a) Authority to Amend or Terminate. Subject to Applicable Laws, the Board may from time to time amend, alter, suspend, discontinue, or terminate
the Plan. 
 (b) Effect of Amendment or Termination. No amendment, suspension, or termination of the Plan shall materially and
adversely affect Awards already granted unless either it relates to an adjustment pursuant to Section 13, or it is otherwise mutually agreed between the Participant and the Committee, which agreement must be in writing and signed by the
Participant and the Company. Notwithstanding the foregoing, the Committee may amend the Plan to eliminate provisions which are no longer necessary as a result of changes in tax or securities laws or regulations, or in the interpretation thereof.

 18. Conditions Upon Issuance of Shares. 
 Notwithstanding any other provision of the Plan or any agreement entered into by the Company pursuant to the Plan, the Company shall not be obligated, and
shall have no liability for failure, to issue or deliver any Shares under the Plan unless such issuance or delivery would comply with Applicable Law, with such compliance determined by the Company in consultation with its legal counsel. 

19. Reservation of Shares. 
 The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. Neither the Company nor the Committee
shall, without stockholder approval, allow for a repricing within the meaning of the federal securities laws applicable to proxy statement disclosures. 
 20. Effective Date and Contingencies. 
 The Plan shall become effective on the IPO Date;
provided that this Plan shall be submitted to the Company’s stockholders for approval, and shall be contingent on the Company’s successful completion of an initial public offering of its shares of common stock. If such an initial
public offering does not occur, or if this Plan is not approved by the stockholders in accordance with Applicable Laws (as determined by the Committee in its sole discretion) within one year from the date of approval by the Board, this Plan and any
Awards shall be null, void, and of no force and effect. Awards granted under this Plan before approval of this Plan by the stockholders shall be 

  

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granted subject to such approval, and no Shares shall be distributed before such approval. If an initial public offering of the Company’s shares of
common stock is not completed within one year of the effective date of this Plan, the Board may unilaterally cancel any outstanding Awards for any reason. 
 21. Controlling Law.  
 This Plan shall be governed by the laws of the State of Delaware (without regard to conflicts of laws principles), to the extent not preempted by United States federal law. If any provision of this Plan is held by a court of competent
jurisdiction to be invalid and unenforceable, the remaining provisions shall continue to be fully effective. 
 22.
Laws and Regulations. 
 (a) U.S. Securities Laws. This Plan, the grant of Awards, and the exercise of Options and SARs
under this Plan, and the obligation of the Company to sell or deliver any of its securities (including, without limitation, Options, Restricted Shares, Restricted Share Units, Deferred Share Units, and Shares) under this Plan shall be subject to all
Applicable Law. In the event that the Shares are not registered under the Securities Act of 1933, as amended (the “Act”), or any applicable state securities laws prior to the delivery of such Shares, the Company may require,
as a condition to the issuance thereof, that the persons to whom Shares are to be issued represent and warrant in writing to the Company that such Shares are being acquired by him or her for investment for his or her own account and not with a view
to, for resale in connection with, or with an intent of participating directly or indirectly in, any distribution of such Shares within the meaning of the Act, and a legend to that effect may be placed on the certificates representing the Shares.

 (b) Other Jurisdictions. To facilitate the making of any grant of an Award under this Plan, the Committee may provide for such
special terms for Awards to Participants who are foreign nationals or who are employed by the Company or any Affiliate outside of the United States of America as the Committee may consider necessary or appropriate to accommodate differences in local
law, tax policy or custom. The Company may adopt rules and procedures relating to the operation and administration of this Plan to accommodate the specific requirements of local laws and procedures of particular countries. Without limiting the
foregoing, the Company is specifically authorized to adopt rules and procedures regarding the conversion of local currency, taxes, withholding procedures and handling of stock certificates which vary with the customs and requirements of particular
countries. The Company may adopt sub-plans and establish escrow accounts and trusts as may be appropriate or applicable to particular locations and countries. 
 23. No Stockholder Rights. Neither a Participant nor any transferee of a Participant shall have any rights as a stockholder of the Company with respect to any Shares underlying any Award until the date of issuance of a share
certificate to a Participant or a transferee of a Participant for such Shares in accordance with the Company’s governing instruments and Applicable Law. Prior to the issuance of Shares pursuant to an Award, a Participant shall not have the
right to vote or to receive dividends or any other rights as a stockholder with respect to the Shares underlying the Award, notwithstanding its exercise in the case of Options and SARs. No adjustment will be made for a dividend or other right that
is determined based on a record date prior to the date the stock certificate is issued, except as otherwise specifically provided for in this Plan. 
  

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 24. No Employment Rights. The Plan shall not confer upon any Participant any right to continue an
employment, service or consulting relationship with the Company, nor shall it affect in any way a Participant’s right or the Company’s right to terminate the Participant’s employment, service, or consulting relationship at any time,
with or without Cause. 
 25. References. All references herein to sections and appendices shall be deemed to be references to sections and
appendices, respectively, of this Plan unless the context shall otherwise require. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. Unless
otherwise expressly provided herein, any agreement, instrument or statute defined or referred to herein or in any agreement or instrument defined or referred to herein means such agreement, instrument or statute as from time to time amended,
modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes, and references to all attachments thereto and instruments incorporated
therein. 
 26. Termination, Rescission and Recapture of Awards. Notwithstanding any other provision of the Plan, but subject to any contrary
terms set forth in any Award Agreement, this Section shall only apply to a Participant who is, on the Award Date, an Employee of the Company or its Affiliates, and shall automatically cease to apply to any Participant from and after his or her
termination of Continuous Service after a Change in Control. 
 (a) Each Award under the Plan is intended to align the Participant’s
long-term interest with those of the Company. If the Participant engages in certain activities discussed below, either during employment or after employment with the Company terminates for any reason, the Participant is acting contrary to the
long-term interests of the Company. Accordingly, except as otherwise expressly provided in the Award Agreement, the Company may terminate any outstanding, unexercised, unexpired, unpaid, or deferred Awards (“Termination”),
rescind any exercise, payment or delivery pursuant to the Award (“Rescission”), or recapture any Common Stock (whether restricted or unrestricted) or proceeds from the Participant’s sale of Shares issued pursuant to the
Award (“Recapture”), if the Participant does not comply with the conditions of subsections (b) and (c) hereof (collectively, the “Conditions”). 
 (b) A Participant shall not, without the Company’s prior written authorization, disclose to anyone outside the Company, or use in other than the
Company’s business, any proprietary or confidential information or material, as those or other similar terms are used in any applicable patent, confidentiality, inventions, secrecy, or other agreement between the Participant and the Company
with regard to any such proprietary or confidential information or material. 
 (c) Pursuant to any agreement between the Participant and the
Company with regard to intellectual property (including but not limited to patents, trademarks, copyrights, trade secrets, inventions, developments, improvements, proprietary information, confidential business and personnel information), a
Participant shall promptly disclose and assign to the Company or its designee all right, title, and interest in such intellectual property, and shall take all reasonable steps necessary to enable the Company to secure all right, title and interest
in such intellectual property in the United States and in any foreign country. 
 (d) Upon exercise, payment, or delivery of cash or Common
Stock pursuant to an Award, the Participant shall certify on a form acceptable to the Company that he or she is in 

  

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compliance with the terms and conditions of the Plan and, if a severance of Continuous Service has occurred for any reason, shall state the name and address
of the Participant’s then-current employer or any entity for which the Participant performs business services and the Participant’s title, and shall identify any organization or business in which the Participant owns a
greater-than-five-percent equity interest. 
 (e) If the Company determines, in its sole and absolute discretion, that (i) a Participant
has violated any of the Conditions or (ii) during his or her Continuous Service, or within one (1) year after Participant’s termination for any reason, a Participant (a) has rendered services to or otherwise directly or
indirectly engaged in or assisted, any organization or business that, in the judgment of the Company in its sole and absolute discretion, is or is working to become competitive with the Company; (b) has solicited any non-administrative employee
of the Company to terminate employment with the Company; or (c) has engaged in activities which are materially prejudicial to or in conflict with the interests of the Company, including any breaches of fiduciary duty or the duty of loyalty,
then the Company may, in its sole and absolute discretion, impose a Termination, Rescission, and/or Recapture with respect to any or all of the Participant’s relevant Awards, Shares, and the proceeds thereof. 
 (f) Within ten days after receiving notice from the Company of any such activity, the Participant shall deliver to the Company the Shares acquired
pursuant to the Award, or, if Participant has sold the Shares, the gain realized, or payment received as a result of the rescinded exercise, payment, or delivery; provided that if the Participant returns Shares that the Participant purchased
pursuant to the exercise of an Option (or the gains realized from the sale of such Common Stock), the Company shall promptly refund the exercise price, without earnings, that the Participant paid for the Shares. Any payment by the Participant to the
Company pursuant to this Section 26 shall be made either in cash or by returning to the Company the number of Shares that the Participant received in connection with the rescinded exercise, payment, or delivery. It shall not be a basis for
Termination, Rescission or Recapture if after termination of a Participant’s Continuous Service, the Participant purchases, as an investment or otherwise, stock or other securities of such an organization or business, so long as (i) such
stock or other securities are listed upon a recognized securities exchange or traded over-the-counter, and (ii) such investment does not represent more than a five percent (5%) equity interest in the organization or business. 

(g) Notwithstanding the foregoing provisions of this Section, the Company has sole and absolute discretion not to require Termination, Rescission
and/or Recapture, and its determination not to require Termination, Rescission and/or Recapture with respect to any particular act by a particular Participant or Award shall not in any way reduce or eliminate the Company’s authority to require
Termination, Rescission and/or Recapture with respect to any other act or Participant or Award. Nothing in this Section shall be construed to impose obligations on the Participant to refrain from engaging in lawful competition with the Company after
the termination of employment that does not violate subsections (b) or (c) of this Section, other than any obligations that are part of any separate agreement between the Company and the Participant or that arise under applicable law.

 (h) All administrative and discretionary authority given to the Company under this Section shall be exercised by the most senior human
resources executive of the Company or such other person or committee (including without limitation the Committee) as the Committee may designate from time to time. 
  

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 (i) Notwithstanding any provision of this Section, if any provision of this Section is determined to be
unenforceable or invalid under any applicable law, such provision will be applied to the maximum extent permitted by applicable law, and shall automatically be deemed amended in a manner consistent with its objectives to the extent necessary to
conform to any limitations required under applicable law. Furthermore, if any provision of this Section is illegal under any applicable law, such provision shall be null and void to the extent necessary to comply with applicable law. 
 27. Pre-IPO Provisions. 
 Subject to any contrary terms set forth in any Award Agreement, for any period preceding the date on which the Shares are not listed for trading on the New York Stock Exchange, the American Stock Exchange, the Nasdaq
Stock Market, Inc., or a successor to one of them, this Section shall be applicable to any Shares subject to or issued pursuant to Awards. 
 (a) Stockholders’ Agreement. As a condition for the delivery of any Shares pursuant to any Award, the Committee may require the Participant to execute and be bound by any agreement that generally exists between the Company and
similarly-situated stockholders of the Company. 
 (b) Repurchase Rights. The Committee in its discretion may provide that the
Company may repurchase Shares issued pursuant to the Plan upon a Participant’s termination of Continuous Service; provided, however that any such repurchase right shall be set forth in the applicable Award Agreement or in another
agreement referred to in such agreement and, provided further, that to the extent required by Section 260.140.41 and Section 260.140.42 of Title 10 of the California Code of Regulations, any such repurchase right granted prior to the date
on which the Shares become publicly-traded to a person who is not an Officer, Director or Consultant shall be upon the following terms: (i) if the repurchase option gives the Company the right to repurchase the shares upon termination of
Continuous Service at not less than the Fair Market Value of the Shares to be purchased on the date of termination of Continuous Service, then (A) the right to repurchase shall be exercised for cash or cancellation of purchase money
indebtedness for the shares within ninety (90) days of termination of Continuous Service (or in the case of shares issued upon exercise of Options or SARs after such date of termination, within ninety (90) days after the date of the
exercise) or such longer period as may be agreed to by the Committee and the Plan participant, and (B) the right terminates when the shares become publicly traded; and (ii) if the repurchase option gives the Company the right to repurchase
the Shares upon termination of the Participant’s Continuous Service at the original purchase price for such Shares, then (A) the right to repurchase at the original purchase price shall lapse at the rate of at least twenty percent
(20%) of the Shares per year over five (5) years from the Grant Date (without respect to the date the Option or SAR was exercised or became exercisable), and (B) the right to repurchase shall be exercised for cash or cancellation of
purchase money indebtedness for the Shares within ninety (90) days of termination of Continuous Service (or, in the case of shares issued upon exercise of Options or SARs, after such date of termination, within ninety (90) days after the
date of the exercise) or such longer period as may be agreed to by the Company and the Participant. 
 (c) Market Stand-Off. In
connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the federal securities laws, including the Company’s initial public offering, Participants
shall not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or 

  

 - 22 - 








 
other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose or transfer, or agree to engage in any of the
foregoing transactions with respect to, any Shares acquired under this Agreement without the prior written consent of the Company or its underwriters. Such restriction (the “Market Stand-Off”) shall be in effect for such
period of time, not exceeding one hundred eighty (180) days from the date of the final prospectus for the offering as may be requested by the Company or such underwriters; provided that, for the purposes of allowing such underwriters to comply
with NASD Rule 2711(f)(4), as may be amended from time to time, if, under certain circumstances during the 16-day period beginning on the last day of the lock-up period, the Company’s releases earnings results or publicly announces other
material news or material event relating to the Company is publicly announced, then the 180-day lock-up period will be extended until 18 days following the date of release of the earnings results or the announcement of the material news or
material event, as applicable. The Market Stand-Off shall in any event terminate two years after the date of the closing of the Company’s initial public offering. In the event of the declaration of a stock dividend, a spin-off, a stock split,
an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities without receipt of consideration, any new, substituted or additional securities which are by reason of such
transaction distributed with respect to any Shares subject to the Market Stand-Off, or into which such Shares thereby become convertible, shall immediately be subject to such Market Stand-Off. In order to enforce the Market Stand-Off, the Company
may impose stop-transfer instructions with respect to the Shares acquired under this Agreement until the end of the applicable stand-off period. The Company and its underwriters shall be beneficiaries of the agreement set forth in this paragraph.
This paragraph shall not apply to Shares registered in a public offering under the federal securities laws, and the Participant shall be subject to this paragraph only if the directors and officers of the Company are subject to similar arrangements.

  

 - 23 - 








 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Appendix A: Definitions 
  

 As used in the Plan, the following definitions shall apply: 
 “Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls or is controlled by or under
common control with such Person. For the purposes of this definition, “control,” when used with respect to any Person, means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of such Person or the power to elect directors, whether through the ownership of voting securities, by contract or otherwise; and the terms “affiliated,” “controlling” and
“controlled” have meanings correlative to the foregoing. 
 “Applicable Law” means the legal
requirements relating to the administration of options and share-based plans under applicable U.S. federal and state laws, the Code, any applicable stock exchange or automated quotation system rules or regulations, and the applicable laws of any
other country or jurisdiction where Awards are granted, as such laws, rules, regulations and requirements shall be in place from time to time. 
 “Award” means any award made pursuant to the Plan, including awards made in the form of an Option, an SAR, a Restricted Share, a Restricted Share Unit, an Unrestricted Share, a Deferred Share Unit, and a Performance
Award, or any combination thereof, whether alternative or cumulative, authorized by and granted under this Plan. 
 “Award
Agreement” means any written document setting forth the terms of an Award that has been authorized by the Committee. The Committee shall determine the form or forms of documents to be used, and may change them from time to time for any
reason. 
 “Board” means the Board of Directors of the Company. 
 “Cause” for termination of a Participant’s Continuous Service will have the meaning set forth in any unexpired
employment, consulting or service agreement between the Company and the Participant. In the absence of such an agreement, “Cause” will exist if the Participant is terminated from employment or other service with the Company
or an Affiliate for any of the following reasons: (i) the Participant’s willful failure to substantially perform his or her duties and responsibilities to the Company or deliberate violation of a material Company policy; (ii) the
Participant’s commission of any material act or acts of fraud, embezzlement, dishonesty, or other willful misconduct; (iii) the Participant’s material unauthorized use or disclosure of any proprietary information or trade secrets of
the Company or any other party to whom the Participant owes an obligation of nondisclosure as a result of his or her relationship with the Company; or (iv) Participant’s willful and material breach of any of his or her obligations under
any written agreement or covenant with the Company. 
 The Committee shall in its discretion determine whether or not a Participant is being
terminated for Cause. The Committee’s determination shall, unless arbitrary and capricious, be final 

  

 Appendix-1 








 
and binding on the Participant, the Company, and all other affected persons. The foregoing definition does not in any way limit the Company’s ability to
terminate a Participant’s employment, consulting or service relationship at any time, and the term “Company” will be interpreted herein to include any Affiliate or successor thereto, if appropriate. 
 “Change in Control” shall mean the occurrence during the term of the Plan of any of the following events, subject however to the
Committee’s determination (to the extent required to conform with Section 409A of the Code) that any occurrence listed below is a permissible distribution event within the meaning of Section 409A of the Code (it being the intention of
the Company to set forth, interpret and apply the following provisions in a manner conforming with Section 409A insofar as applicable): (i) the acquisition, directly or indirectly, by any person or group (within the meaning of
Section 13(d)(3) of the Exchange Act of the beneficial ownership of securities of the Company possessing more than fifty percent (50%) of the combined voting power of all outstanding securities of the Company; (ii) a merger or
consolidation in which the Company is not the surviving entity, except for a transaction in which the holders of the outstanding voting securities of the Company immediately prior to such merger or consolidation hold, in the aggregate, securities
possessing more than fifty percent (50%) of the total combined voting power of all outstanding voting securities of the surviving entity immediately after such merger or consolidation; (iii) the sale, transfer or other disposition (in one
or more transactions or series of related transactions) of all or substantially all of the assets of the Company; (iv) a complete liquidation or dissolution of the Company; or (v) any reverse merger in which the Company is the surviving
entity but in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding voting securities are transferred to or acquired by one or more Persons different from the Persons
holding those securities immediately prior to such merger. 
 Notwithstanding the foregoing, a “Change in Control”
shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or
series of transactions have substantially the same proportionate ownership in an entity which owns all or substantially all of the former assets or capital stock of the Company immediately following such transaction or series of transactions.

 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 
 “Committee” means one or more committees or subcommittees of the Board appointed by the Board to administer the Plan in
accordance with Section 4. With respect to any decision involving an Award intended to satisfy the requirements of Section 162(m) of the Code, the Committee shall consist of two or more Directors of the Company who are “outside
directors” within the meaning of Section 162(m) of the Code. With respect to any decision relating to a Reporting Person, the Committee shall consist of two or more Directors who are disinterested within the meaning of Rule 16b-3.

 “Company” means Masimo Corporation, a Delaware corporation; provided, however, that in the event the Company
reincorporates to another jurisdiction, all references to the term “Company” shall refer to the Company in such new jurisdiction. 
 “Consultant” means any person, including an advisor, who is engaged by the Company or any Affiliate to render services and is compensated for such services. 
  

 Appendix-2 








 “Continuous Service” means the absence of any interruption or termination of
service as an Employee, Director, or Consultant. Continuous Service shall not be considered interrupted in the case of: (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the Committee, provided that
such leave is for a period of not more than 90 days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; (iv) changes in
status from Director to advisory director or emeritus status; or (iv) in the case of transfers between locations of the Company or between the Company, its Affiliates or their respective successors. Changes in status between service as an
Employee, Director, and a Consultant will not, by itself, constitute an interruption of Continuous Service. 
 “Director” means a member of the Board, or a member of the board of directors of an Affiliate. 
 “Disabled” or “Disability” means a condition under which a Participant: 
 (d) is
unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or

 (e) has, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected
to last for a continuous period of not less than 12 months, received income replacement benefits for a period of not less than 3 months under an accident or health plan covering employees of the Company. 
 “Eligible Person” means any Consultant, Director or Employee and includes non-Employees to whom an offer of employment has been
extended by the Company or an Affiliate. 
 “Employee” means any person whom the Company or any Affiliate classifies
as an employee (including an officer) for employment tax purposes, whether or not that classification is correct. The payment by the Company of a director’s fee to a Director shall not be sufficient to constitute
“employment” of such Director by the Company. 
 “Exchange Act” means the Securities Exchange
Act of 1934, as amended. 
 “Fair Market Value” means, as of any date (the “Determination
Date”) means: (i) the closing price of a Share on the New York Stock Exchange, the American Stock Exchange or the Nasdaq Stock Market, Inc. (as applicable, the “Exchange”), on the Determination Date, or, if
shares were not traded on the Determination Date, then on the nearest preceding trading day during which a sale occurred; or (ii) if such stock is not traded on an Exchange, but is otherwise traded on the Over-the-Counter Bulletin Board or the
“pink sheets,” the mean between the representative bid and asked prices on the Determination Date; or (iii) if subsections (i) and (ii) do not apply, the fair market value established in good faith by the Board. 

“Incentive Share Option” or “ISO” hereinafter means an Option intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code, as designated in the applicable Award Agreement. 
  

 Appendix-3 








 “Involuntarily Terminated” means a Participant’s Continuous Service is
terminated under the following circumstances occurring in connection with, or within 12 months following consummation of, a Change in Control: (i) termination without Cause by the Company or an Affiliate or successor thereto, as appropriate; or
(ii) voluntary termination by the Participant within 60 days following (A) a material reduction in the Participant’s job responsibilities, provided that neither a mere change in title alone nor reassignment to a substantially similar
position shall constitute a material reduction in job responsibilities; (B) an involuntary relocation of the Participant’s work site to a facility or location more than 50 miles from the Participant’s principal work site as of
immediately prior to the Change in Control; or (C) a material reduction in Participant’s total compensation other than as part of a reduction by the same percentage amount in the compensation of all other similarly-situated Employees,
Directors or Consultants. 
 “IPO Date” means the date of the underwriting agreement between the Company and the
underwriter(s) managing the initial public offering of the Common Stock, pursuant to which the Common Stock is priced for the initial public offering. 
 “Non-ISO” means an Option not intended to qualify as an ISO, as designated in the applicable Award Agreement. 
 “Option” means any stock option granted pursuant to Section 6. 
 “Participant” means any holder of one or more Awards, or the Shares issuable or issued upon exercise of such Awards, under the Plan. 
 “Performance Awards” mean Performance Units and Performance Compensation Awards granted pursuant to Section 10. 
 “Performance Compensation Awards” mean Awards granted pursuant to Section 10(b). 
 “Performance Unit” means Awards granted pursuant to Section 10(a) that may be paid in cash, in Shares, or such combination
of cash and Shares as the Committee in its sole discretion shall determine. 
 “Person” means any natural person,
association, trust, business trust, cooperative, corporation, general partnership, joint venture, joint-stock company, limited partnership, limited liability company, real estate investment trust, regulatory body, governmental agency or
instrumentality, unincorporated organization or organizational entity. 
 “Plan” means this Masimo Corporation 2007
Stock Incentive Plan. 
 “Reporting Person” means an officer, Director, or greater than ten percent stockholder of
the Company within the meaning of Rule 16a-2 under the Exchange Act, who is required to file reports pursuant to Rule 16a-3 under the Exchange Act. 
 “Restricted Share Units” mean Awards pursuant to Section 8. 
 “Restricted
Shares” mean Shares subject to restrictions imposed pursuant to Section 8. 
  

 Appendix-4 








 “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as amended from
time to time, or any successor provision. 
 “SAR” or “Share Appreciation Right” means Awards
granted pursuant to Section 7. 
 “Share” means a share of common stock of the Company, as adjusted in
accordance with Section 13. 
 “Ten Percent Holder” means a person who owns stock representing more than 10% of
the combined voting power of all classes of stock of the Company or any Affiliate. 
 “Unrestricted Shares” mean
Shares awarded pursuant to Section 8. 
  

 Appendix-5 








 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Stock Option Award Agreement 
  

 Award No.              
 You (the “Participant”) are hereby awarded the following stock option (the “Option”) to purchase Shares
of Masimo Corporation (the “Company”), subject to the terms and conditions set forth in this Stock Option Award Agreement (the “Award Agreement”) and in the Masimo Corporation 2007 Stock Incentive Plan
(the “Plan”), which is attached hereto as EXHIBIT A. A summary of the Plan appears in its Prospectus, which is attached hereto as EXHIBIT B. You should carefully review these
documents, and consult with your personal financial advisor, in order to fully understand the implications of this Award, including your tax alternatives or their consequences. This Award is conditioned on your execution of this Award Agreement.

 By executing this Award Agreement, you agree to be bound by all of the Plan’s terms and conditions as if they had been set out
verbatim in this Award Agreement. In addition, you recognize and agree that all determinations, interpretations, or other actions respecting the Plan and this Award Agreement will be made by the Board of Directors (the
“Board”) of Masimo Corporation (the “Company”) or the Committee pursuant to Section 4 of the Plan, and that such determinations, interpretations or other actions shall (in the absence of manifest
bad faith or fraud) be final, conclusive and binding upon all parties, including you and your heirs, representatives and successors-in-interest. Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Plan.

 1. Variable Terms. This Option shall have, and be interpreted according to, the following terms, subject to the provisions of the Plan in
all instances: 
  

			
	Name of Participant:	  	                                      
                                        
                                  
		
	Type of Stock Option:	  	  ̈     Incentive Stock
Option (ISO)1
  
  ̈     Non-Incentive Stock Option2




	 1
	 If an ISO is awarded to a person owning more than 10% of the voting power of all classes of stock of the
Company or of any Subsidiary, then the term of the Option cannot exceed 5 years and the exercise price must be at least 110% of the Fair Market Value (100% for any other employee who is receiving ISO awards). 



	 2
	 The exercise price of a non-ISO must be at least 100% of the Fair Market Value.



  

 - 1 - 









 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  


			
	Number of Shares subject to Option:	  	                                      
                                        
                                  
		
	Option Exercise Price per Share:	  	                                      
                                        
                                  
		
	Grant Date:	  	                                      
                                        
                                  
		
	Reverse Vesting (early exercise):	  	  ̈ Allowed in accordance with Section 6 of
the Plan.
  
  ̈ Not allowed.


  

			
	Vesting Schedule:	  	(Establishes the Participant’s rights to exercise this Option with respect to the Number of Shares stated above, subject to acceleration per Section 2 below and to any
stockholder approval requirement set forth in the Plan.)

  

					
		  	 ̈	  	         % on Grant Date.
			
		  	 ̈	  	         % on each of the first      [monthly][quarterly][annual] anniversary dates of the Participant’s
Continuous Service after the Grant Date
			
		  	Lifetime Transfer:	  	  ̈        Allowed pursuant to Section 9 below only for Non-Incentive Stock Option.

			
		  	Expiration Date:	  	  ̈                 years after Grant Date; or

		
		  	  ̈        10 years after Grant Date


 2. Accelerated Vesting; Change In Corporate Control. To the extent you have not previously vested in
your rights with respect to this Award, your Award will become: 
  

	 	 ̈	         % vested if your Continuous Service ends due to your death or “disability” within the meaning of Section 409A
of the Code; 

  

	 	 ̈	         % vested if your Continuous Service ends due to your retirement at or after you have attained the age of
             and completed at least              full years of Continuous Service; 

  

	 	 ̈	according to the following schedule if your Continuous Service ends due to an Involuntary Termination that occurs in connection with or within the one-year period following a Change
in Control: 

  

				
	 Date on which Your Involuntary Termination
 Occurs (by reference to Date of Award)
	  	 Portion of Your Award
 As to which Vesting Accelerates
	 
	 Before 1st Anniversary
	  	0	%
	 Between 1st and 2nd Anniversary
	  	    	%
	 After 2nd Anniversary
	  	    	%

  

 - 2 - 









 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 3. Term of Option. The term of the Option will expire at 5:00 p.m. (P.D.T. or P.S.T., as
applicable) on the Expiration Date. 
 4. Manner of Exercise. The Option shall be exercised in the manner set forth in the Plan, using the
exercise form attached hereto as Exhibit C. The amount of Shares for which the Option may be exercised is cumulative; that is, if you fail to exercise the Option for all of the Shares vested under the Option during any period set forth above, then
any Shares subject to the Option that are not exercised during such period may be exercised during any subsequent period, until the expiration or termination of the Option pursuant to Sections 2 and 6 of this Award Agreement and the terms of the
Plan. Fractional Shares may not be purchased. 
 5. Special ISO Provisions. If designated as an ISO, this Option shall be treated
as an ISO to the extent allowable under Section 422 of the Code, and shall otherwise be treated as a Non-ISO. If you sell or otherwise dispose of Shares acquired upon the exercise of an ISO within 1 year from the date such Shares were acquired or 2
years from the Grant Date, you agree to deliver a written report to the Company within 10 days following the sale or other disposition of such Shares detailing the net proceeds of such sale or disposition. 
 6. Termination of Continuous Service. If your Continuous Service is terminated for any reason, this Option shall terminate on the date on
which you cease to have any right to exercise the Option pursuant to the terms and conditions set forth in Section 6 of the Plan. 
 7.
Long-term Consideration for Award. The Participant recognizes and agrees that the Company’s key consideration in granting this Award is securing the long-term commitment of the Participant to serve as a
[                    ] [include job title or description of the Participant] who will advance and promote the business interests
and objectives of the Company and/or its Affiliates (the “Company Group”). Accordingly, the Participant agrees that this Award shall be subject to the terms and conditions set forth in Section 26 of the Plan (relating to the
termination, rescission, and recapture if you violate certain commitments made therein to the Company Group), as well as to the following terms and conditions as material and indivisible consideration for this Award: 
 (a) Fiduciary Duty. During his or her service with the Company Group the Participant shall devote his or her full energies, abilities, attention
and business time to the performance of his or her service responsibilities and shall not engage in any activity which conflicts or interferes with, or in any way compromises, his or her performance of such responsibilities. 
 (b) Confidential Information. The Participant recognizes that by virtue of his or her service with the Company Group, he or she will be granted
otherwise prohibited access to confidential information and proprietary data which are not known, and not readily accessible to the Company Group’s competitors. This information (the “Confidential Information”) includes,
but is not limited to, current and prospective customers; the identity of key contacts at such customers; customers’ particularized preferences and needs; marketing strategies and plans; financial data; personnel data; compensation data;
proprietary procedures and processes; and other unique and specialized practices, programs and plans of the Company Group and their respective customers and prospective customers. The Participant recognizes that this Confidential Information
constitutes a 

  

 - 3 - 









 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 
valuable property of the Company Group, developed over a significant period of time and at substantial expense. Accordingly, the Participant agrees that he
or she shall not, at any time during or after his or her service with the Company Group, divulge such Confidential Information or make use of it for his or her own purposes or the purposes of any person or entity other than the Company Group.

 (c) Non-Solicitation of Customers. The Participant recognizes that by virtue of his or her service with the Company Group he or she
will be introduced to and involved in the solicitation and servicing of existing customers of the Company Group and new customers obtained by the Company Group during his or her service. The Participant understands and agrees that all efforts
expended in soliciting and servicing such customers shall be for the permanent benefit of the Company Group. The Participant further agrees that during his or her service with the Company Group the Participant will not engage in any conduct which
could in any way jeopardize or disturb any of the Company Group’s customer relationships. The Participant also recognizes the Company Group’s legitimate interest in protecting, for a reasonable period of time after his or her service with
the Company Group, the Company Group’s customers. Accordingly, the Participant agrees that, for a period beginning on the date hereof and ending five (5) years after termination of Participant’s service with the Company Group,
regardless of the reason for such termination, the Participant shall not, directly or indirectly, without the prior written consent of the Chief Executive Officer or Chairman of the Company, solicit any actual or potential customer or supplier of
the Company Group for any business that competes, directly or indirectly, with the Company Group. 
 (d) Non-Solicitation of
Employees. The Participant recognizes the substantial expenditure of time and effort which the Company Group devotes to the recruitment, hiring, orientation, training and retention of its employees. Accordingly, the Participant agrees that, for
a period beginning on the date hereof and ending five (5) years after termination of Participant’s service with the Company Group, regardless of the reason for such termination, the Participant shall not, directly or indirectly, for
himself or herself or on behalf of any other person or entity, solicit, offer employment to, hire or otherwise retain the services of any employee of the Company Group. 
 (e) Survival of Commitments; Potential Recapture of Award and Proceeds. The Participant acknowledges and agrees that the terms and conditions of this Section regarding confidentiality and
non-solicitation shall survive both (i) the termination of Participant’s service with the Company Group for any reason, and (ii) the termination of the Plan, for any reason. The Participant acknowledges and agrees that the grant of
Options in this Award Agreement is just and adequate consideration for the survival of the restrictions set forth herein, and that the Company Group may pursue any or all of the following remedies if the Participant either violates the terms of this
Section or succeeds for any reason in invalidating any part of it (it being understood that the invalidity of any term hereof would result in a failure of consideration for the Award): 
  

 - 4 - 









 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  


	 	(i)	declaration that the Award is null and void and of no further force or effect; 

  

	 	(ii)	recapture of any cash paid or Shares issued to the Participant, or any designee or beneficiary of the Participant, pursuant to the Award; and 

  

	 	(iii)	recapture of the proceeds, plus reasonable interest, with respect to any Shares that are both issued pursuant to this Award and sold or otherwise disposed of by the Participant, or
any designee or beneficiary of the Participant. 

 The remedies provided above are not intended to be exclusive, and the Company Group may seek
such other remedies as are provided by law, including equitable relief. 
 (f) Acknowledgement. The Participant acknowledges and
agrees that his or her adherence to the foregoing requirements will not prevent him or her from engaging in his or her chosen occupation and earning a satisfactory livelihood following the termination of his or her service with the Company Group.

 8. Designation of Beneficiary. Notwithstanding anything to the contrary contained herein or in the Plan, following the
execution of this Award Agreement, you may expressly designate a beneficiary (the “Beneficiary”) to your interest in the Option awarded hereby. You shall designate the Beneficiary by completing and executing a designation of
beneficiary agreement substantially in the form attached hereto as EXHIBIT D (the “Designation of Beneficiary”) and delivering an executed and notarized copy of the Designation of Beneficiary to the Company.

 9. Restrictions on Transfer. Except as set forth in the Plan, this Award Agreement may not be sold, pledged, or otherwise
transferred without the prior written consent of the Committee. Notwithstanding the foregoing, the Participant may transfer this Option if allowed under Section 1 hereof for a Non-Incentive Stock Option (i) by instrument to an inter vivos or
testamentary trust (or other entity) in which each beneficiary is a permissible gift recipient, as such is set forth in clause (ii) of this Section, or (ii) by gift to charitable institutions or by gift or transfer for consideration to any of your
relatives as follows (or to an inter vivos trust, testamentary trust or other entity primarily for the benefit of any of your relatives): any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, domestic partner,
sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships. Any transferee of the Participant’s rights shall succeed and be subject to all of the terms
of this Award Agreement and the Plan. 
 10. Income Taxes and Deferred Compensation. The Participant is solely responsible and liable
for the satisfaction of all taxes and penalties that may arise in connection with this Award (including any taxes arising under Section 409A of the Code), and the Company shall not have any obligation to indemnify or otherwise hold any Participant
harmless from any or all of such taxes. The Committee shall have the discretion to unilaterally modify this Award in a manner that (i) conforms with the requirements of Section 409A of the Code, (ii) that voids any election of the Participant to the
extent it would violate Section 409A of the Code, and (iii) for any distribution election that would violate Section 409A of the Code, to make distributions pursuant to the Award at the earliest to occur of a distribution event that is allowable
under Section 409A of the Code or any distribution 
  

 - 5 - 









 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 
event that is both allowable under Section 409A of the Code and is elected by the Participant, subject to any valid second election to defer, provided
that the Committee permits second elections to defer in accordance with Section 409A(a)(4)(C). The Committee shall have the sole discretion to interpret the requirements of the Code, including Section 409A, for purposes of the Plan and
this Award Agreement. 
 11. Notices. Any notice or communication required or permitted by any provision of this Award Agreement
to be given to you shall be in writing and shall be delivered personally or sent by certified mail, return receipt requested, addressed to you at the last address that the Company had for you on its records. Each party may, from time to time, by
notice to the other party hereto, specify a new address for delivery of notices relating to this Award Agreement. Any such notice shall be deemed to be given as of the date such notice is personally delivered or properly mailed. 
 12. Binding Effect. Except as otherwise provided in this Award Agreement or in the Plan, every covenant, term, and provision of this Award
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees, and assigns. 
 13. Modifications. This Award Agreement may be modified or amended at any time, in accordance with Section 15 of the Plan, provided that you must consent in writing to any modification that adversely
alters or impairs any of your rights or obligations under this Award Agreement, unless there is an express Plan provision that permits the Committee to unilaterally make the modification. 
 14. Headings. Section and other headings contained in this Award Agreement are for reference purposes only and are not intended to describe,
interpret, define or limit the scope or intent of this Award Agreement or any provision hereof. 
 15. Severability. Every
provision of this Award Agreement and of the Plan is intended to be severable. If any term hereof is illegal or invalid for any reason, such illegality or invalidity shall not affect the validity or legality of the remaining terms of this Award
Agreement. 
 16. Counterparts. This Award Agreement may be executed by the parties hereto in separate counterparts, each of
which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. 
 17. Plan
Governs. By signing this Award Agreement, you acknowledge that you have received a copy of the Plan and that your Award Agreement is subject to all the provisions contained in the Plan, the provisions of which are made a part of this
Award Agreement, and that your Award is subject to all interpretations, amendments, rules and regulations which from time to time may be promulgated and adopted pursuant to the Plan. In the event of a conflict between the provisions of this Award
Agreement and those of the Plan, the provisions of the Plan shall control. 
 18. Governing Law. The laws of the State of
Delaware (without regard to conflicts of laws principles) shall govern the validity of this Award Agreement, the construction of its terms, and the interpretation of the rights and duties of the parties hereto. 
  

 - 6 - 









 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 19. Not a Contract of Employment. By executing this Award Agreement you acknowledge and
agree that (i) any person whose service is terminated before full vesting of an award, such as the one granted to you by this Award Agreement, could claim that he or she was terminated to preclude vesting; (ii) you promise never to make such a
claim; (iii) nothing in this Award Agreement or the Plan confers on you any right to continue an employment, service or consulting relationship with the Company Group, nor shall it affect in any way your right or the Company Group’s right to
terminate your employment, service, or consulting relationship at any time, with or without Cause; and (iv) the Company would not have granted this Award to you but for these acknowledgements and agreements. 
 20. [Employment Agreement Provision [OPTIONAL IF EMPLOYEE HAS AN EMPLOYMENT AGREEMENT] By executing this Award, you acknowledge and agree
that your rights upon a termination of employment before full vesting of this Award will be determined under Section              of that certain employment agreement between you and
the Company, dated as of                         
            , 20    .] 
 21. Investment
Purposes. You represent and warrant to the Company that you are acquiring the Options for investment for your own account and not with a view to, for resale in connection with, or with an intent of participating directly or indirectly in,
any distribution of such Options within the meaning of the Securities Act of 1933, as amended. 
 <Signature Page Follows>

  

 - 7 - 









 Stock Option Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you and the
Company agree that the Option is awarded under and governed by the terms and conditions of this Award Agreement and the Plan. 
  

			
	MASIMO CORPORATION
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	PARTICIPANT
	
	The undersigned Participant hereby accepts the terms of this Award Agreement and the Plan.
		
	By:	 	  




					
		
	Name of Participant:	 	  



  

 - 8 - 








 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  

  







 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 

  







 EXHIBIT C 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Form of Exercise of Stock Option
Award Agreement 
  

  

			
		  	Masimo Corporation
	Attention:	  	[Insert Address]

 Dear Sir or Madam: 
 The undersigned elects to exercise his/her [Incentive][Non-qualified] Stock Option to purchase
             shares of Common Stock of Masimo Corporation (the “Company”) under and pursuant to a Stock Option Agreement dated as of
                        . 
 1.  ̈ Delivered herewith is a certified or bank cashier’s or teller’s check and/or shares of Common
Stock held by the undersigned for at least six months*, valued at the closing sale price of the stock on the business day prior to the date of exercise, as follows: 
  

								
		  	$	            	  		  	in cash or check
		  	 	 	  		  	
		  	$	            	  		  	in the form of          shares of Common Stock,
		  	 	 	  		  	
		  			  		  	valued at $              per share
		  	$	            	  	Total	  	
		  	 	 	  		  	

 2.  ̈ Delivered herewith are irrevocable instructions to a broker approved by the Company to deliver promptly to the Company the amount of sale or loan proceeds to pay the exercise price.** 
 If method 1 is chosen, the name or names to be on the stock certificate or certificates and the address and Social Security Number of such person(s) is
as follows: 
  

	
	Name:                                     
                                        
                                        
                                        
                                        
                                        
       
	
	Address:                                     
                                        
                                        
                                        
                                        
                                        
   
	
	Social Security
Number                                       
                                        
                                        
                                        
                                        
            

  

					
		 		 	Very truly yours,
			
	  
	 		 	  

	Date	 		 	Optionee



	*	The Committee may waive the six months’ requirement in its discretion. 


	**	The Committee must approve this method in writing before your election 








 EXHIBIT D 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Designation of Beneficiary

  

 In connection
with Award Agreements between Masimo Corporation (the “Company”) and                     , an individual residing at
                     (the “Recipient”), the Recipient hereby designates the person specified below as the beneficiary
of the Recipient’s interest in Awards as defined in the Company’s 2007 Stock Incentive Plan (the “Plan”). This designation shall remain in effect until revoked in writing by the Recipient. 
  

			
		
	Name of Beneficiary:	  	  

		
	Address:	  	  

		
		  	  

		
		  	  

		
	Social Security No.:	  	  


 This beneficiary designation relates to any and all of Recipient’s rights under the following
Award or Awards: 
  

	 	 ̈	any Award that Recipient has received under the Plan. 

  

	 	 ̈	the
                                 Award that Recipient received pursuant to an
award agreement dated                     ,         ,
             between Recipient and the Company. 

 The
Recipient understands that this designation operates to entitle the above-named beneficiary to the rights conferred by an Award from the date this form is delivered to the Company until such date as this designation is revoked in writing by the
Recipient, including by delivery to the Company of a written designation of beneficiary executed by the Recipient dated as of a later date. 
  

			
	 Date:
	 	  

		
	 By:
	 	  

		 	[Recipient Name]


  

	
	Sworn to before me this
	         day of             , 20    
	                                      
                                        
                         
	Notary Public
	County of                                    
                                        
        
	State of                                    
                                        
            








 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 SAR Award Agreement 
  

 Award No.              
 You (the “Participant”) are hereby awarded Stock Appreciation Rights subject to the terms and conditions set forth in this
agreement (the “Award Agreement”) and in the Masimo Corporation 2007 Stock Incentive Plan (“Plan”). A copy of the Plan is attached hereto as EXHIBIT A. A summary of the Plan
appears in its Prospectus, which is attached hereto as EXHIBIT B. You should review carefully these documents, and consult with your personal financial advisor, in order to fully understand the implications of this Award,
including your tax alternatives or their consequences. This Award is conditioned on your execution of this Award Agreement. 
 By executing
this Award Agreement, you agree to be bound by all of the Plan’s terms and conditions as if they had been set out verbatim in this Award Agreement. In addition, you recognize and agree that all determinations, interpretations, or other actions
respecting the Plan and this Award Agreement will be made by the Board of Directors (the “Board”) of Masimo Corporation (the “Company”) or the Committee pursuant to Section 4 of the Plan, and that
such determinations, interpretations or other actions shall (in the absence of manifest bad faith or fraud) be final, conclusive and binding upon all parties, including you and your heirs, representatives and successors-in-interest. Capitalized
terms used but not otherwise defined herein shall have the meanings set forth in the Plan. 
 1. Individualized Terms. This portion of your
Award is being granted pursuant to Section 7 of the Plan, and shall have the following terms: 
  

			
	Name of Participant	  	  

		
	Date of Award	  	  

		
	Number of Shares measuring the value of this SAR	  	                     Shares (“SAR Shares”).
		
	Base Price for SARs	  	$        .         per Share.
		
	Vesting	  	At the rate of         % on each of the next      [monthly] [quarterly] [annual] anniversaries of the Award
Date; subject to acceleration as provided in the Plan and in Section 2 below, and to your Continuous Service not ending before the vesting date.

 2. Accelerated Vesting; Change in Corporate Control. To the extent you have not previously vested in
your rights with respect to this Award, your Award will become: 
  

 - 1 - 









 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

  ̈          % vested if your Continuous Service ends due to your death or “disability” within the meaning of Section 409A of the Code; 
  ̈
         % vested if your Continuous Service ends due to your retirement at or after you have attained the age of             and completed at
least              full years of Continuous Service; 
  ̈     according to the following schedule if your Continuous Service ends due to an Involuntary Termination that occurs in connection
with or within the one-year period following a Change in Control: 
  

				
	 Date on which Your Involuntary Termination
 Occurs (by reference to Date of Award)
	  	 Portion of Your Award
 As to which Vesting Accelerates
	 
	Before 1st Anniversary	  	0	%
	Between 1st and 2nd Anniversary	  	    	%
	After 2nd Anniversary	  	    	%

 3. Vesting and Exercise of Your Award. No Shares will be issued and no cash will be paid to you
before your Award vests in accordance with Section 1 or 2 above and is exercised. To the extent you have vested in this Award, you may exercise it at any time and from time to time in accordance with the Plan, using the exercise form attached
hereto as EXHIBIT C. The amount you receive upon exercise will equal the product of: 
 (a) the number of SAR
Shares that you designate for exercise, and 
 (b) the excess of 100% of the Fair Market Value of a Share on the date of exercise over the
Base Price stated in Section 1 above. 
 4. Form of Payments to You. The Company will make any payment to you under this Award in the form
of Shares, with cash paid in lieu of fractional Shares. Any Shares that you receive will be free from vesting restrictions (but subject to such legends as the Company determines to be appropriate). Notwithstanding the foregoing, the Company will not
issue Share certificates to you unless you have made arrangements satisfactory to the Committee to satisfy any applicable tax-withholding obligations. 
 5.
Failure of Vesting Restrictions. By executing this Award, you acknowledge and agree that if your Continuous Service terminates under circumstances that do not result in accelerated vesting pursuant to Section 2 above, you will
irrevocably forfeit any and all unvested rights under this Award, and this Award will immediately become null, void, and unenforceable. 
 6. Long-term
Consideration for Award. The Participant recognizes and agrees that the Company’s key consideration in granting this Award is securing the long-term commitment of the Participant to serve as a
                 [include job title or description of the Participant] who will advance and promote the business interests and objectives of the
Company and/or its Affiliates (the “Company Group”). Accordingly, the Participant agrees that this Award shall be subject to the terms and conditions set forth in Section 26 of the Plan (relating to the termination,
rescission, and recapture if you violate certain commitments made therein to the Company Group), as well as to the following terms and conditions as material and indivisible consideration for this Award: 
  

 - 2 - 









 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 (a) Fiduciary Duty. During his or her service with the Company Group, the Participant shall
devote his or her full energies, abilities, attention and business time to the performance of his or her service responsibilities and shall not engage in any activity which conflicts or interferes with, or in any way compromises, his or her
performance of such responsibilities. 
 (b) Confidential Information. The Participant recognizes that by virtue of his or her service
with the Company Group, he or she will be granted otherwise prohibited access to confidential information and proprietary data which are not known, and not readily accessible to the Company Group’s competitors. This information (the
“Confidential Information”) includes, but is not limited to, current and prospective customers; the identity of key contacts at such customers; customers’ particularized preferences and needs; marketing strategies and
plans; financial data; personnel data; compensation data; proprietary procedures and processes; and other unique and specialized practices, programs and plans of the Company Group and their respective customers and prospective customers. The
Participant recognizes that this Confidential Information constitutes a valuable property of the Company Group, developed over a significant period of time and at substantial expense. Accordingly, the Participant agrees that he or she shall not, at
any time during or after his or her service with the Company Group, divulge such Confidential Information or make use of it for his or her own purposes or the purposes of any person or entity other than the Company Group. 
 (c) Non-Solicitation of Customers. The Participant recognizes that by virtue of his or her service with the Company Group he or she will be
introduced to and involved in the solicitation and servicing of existing customers of the Company Group and new customers obtained by the Company Group during his or her service. The Participant understands and agrees that all efforts expended in
soliciting and servicing such customers shall be for the permanent benefit of the Company Group. The Participant further agrees that during his or her service with the Company Group the Participant will not engage in any conduct which could in any
way jeopardize or disturb any of the Company Group’s customer relationships. The Participant also recognizes the Company Group’s legitimate interest in protecting, for a reasonable period of time after his or her service with the Company
Group, the Company Group’s customers. Accordingly, the Participant agrees that, for a period beginning on the date hereof and ending five (5) years after termination of Participant’s service with the Company Group, regardless of the
reason for such termination, the Participant shall not, directly or indirectly, without the prior written consent of the Chief Executive Officer or Chairman of the Company, solicit any actual or potential customer or supplier of the Company Group
for any business that competes, directly or indirectly, with the Company Group. 
 (d) Non-Solicitation of Employees. The Participant
recognizes the substantial expenditure of time and effort which the Company Group devotes to the recruitment, hiring, orientation, training and retention of its employees. Accordingly, the Participant agrees that, for a period beginning on the date
hereof and ending five (5) years after termination of Participant’s service with the Company Group, regardless of the reason for such termination, the Participant shall not, directly or indirectly, for himself or herself or on behalf of
any other person or entity, solicit, offer employment to, hire or otherwise retain the services of any employee of the Company Group. 
  

 - 3 - 









 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 (e) Survival of Commitments; Potential Recapture of Award and Proceeds. The Participant
acknowledges and agrees that the terms and conditions of this Section regarding confidentiality and non-solicitation shall survive both (i) the termination of Participant’s service with the Company Group for any reason, and (ii) the
termination of the Plan for any reason. The Participant acknowledges and agrees that the grant of Stock Appreciation Rights in this Award Agreement is just and adequate consideration for the survival of the restrictions set forth herein, and that
the Company Group may pursue any or all of the following remedies if the Participant either violates the terms of this Section or succeeds for any reason in invalidating any part of it (it being understood that the invalidity of any term hereof
would result in a failure of consideration for the Award): 
  

	 	(i)	declaration that the Award is null and void and of no further force or effect; 

  

	 	(ii)	recapture of any cash paid or Shares issued to the Participant, or any designee or beneficiary of the Participant, pursuant to the Award; and 

  

	 	(iii)	recapture of the proceeds, plus reasonable interest, with respect to any Shares that are both issued pursuant to this Award and sold or otherwise disposed of by the Participant, or
any designee or beneficiary of the Participant. 

 The remedies provided above are not intended to be exclusive, and the Company Group may seek
such other remedies as are provided by law, including equitable relief. 
 (f) Acknowledgement. The Participant acknowledges and
agrees that his or her adherence to the foregoing requirements will not prevent him or her from engaging in his or her chosen occupation and earning a satisfactory livelihood following the termination of his or her service with the Company Group.

 7. Investment Purposes. By executing this Award, you represent and warrant to the Company that any Shares issued to you pursuant to this
Award will be for investment for your own account and not with a view to, for resale in connection with, or with an intent of participating directly or indirectly in, any distribution of such Shares within the meaning of the Securities Act of 1933,
as amended. 
 8. Designation of Beneficiary. Notwithstanding anything to the contrary contained herein or in the Plan, following the execution
of this Award Agreement, you may expressly designate a beneficiary (the “Beneficiary”) to your interest in the SAR awarded hereby. You shall designate the Beneficiary by completing and executing a designation of beneficiary
agreement substantially in the form attached hereto as EXHIBIT D (the “Designation of Beneficiary”) and delivering an executed and notarized copy of the Designation of Beneficiary to the Company.

 9. Restrictions on Transfer. Except as set forth in the Plan, this Award Agreement may not be sold, pledged, or otherwise transferred
without the prior written consent of the Committee. Notwithstanding the foregoing, you may transfer this Award Agreement (i) by instrument to an inter vivos or testamentary trust (or other entity) in which each beneficiary is a permissible gift
recipient, as such is set forth in clause (ii) of this Section, or (ii) by gift to charitable institutions or by gift or transfer for consideration to any of your relatives as follows (or to an inter vivos trust, testamentary 

  

 - 4 - 









 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 
trust or other entity primarily for the benefit of your relatives as follows): any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, domestic partner, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships. Any transferee of your rights shall succeed and be subject
to all of the terms of this Award Agreement and the Plan. 
 10. Income Taxes and Deferred Compensation. The Participant is solely responsible
and liable for the satisfaction of all taxes and penalties that may arise in connection with this Award (including any taxes arising under Section 409A of the Code), and the Company shall not have any obligation to indemnify or otherwise hold
any Participant harmless from any or all of such taxes. The Committee shall have the discretion to unilaterally modify this Award in a manner that (i) conforms with the requirements of Section 409A of the Code, (ii) that voids any
election of the Participant to the extent it would violate Section 409A of the Code, and (iii) for any distribution election that would violate Section 409A of the Code, to make distributions pursuant to the Award at the earliest to
occur of a distribution event that is allowable under Section 409A of the Code or any distribution event that is both allowable under Section 409A of the Code and is elected by the Participant, subject to any valid second election to
defer, provided that the Committee permits second elections to defer in accordance with Section 409A(a)(4)(c). The Committee shall have the sole discretion to interpret the requirements of the Code, including Section 409A, for purposes of
the Plan and this Award Agreement. 
 11. Notices. Any notice or communication required or permitted by any provision of this Award Agreement
to be given to you shall be in writing and shall be delivered personally or sent by certified mail, return receipt requested, addressed to you at the last address that the Company had for you on its records. Each party may, from time to time, by
notice to the other party hereto, specify a new address for delivery of notices relating to this Award Agreement. Any such notice shall be deemed to be given as of the date such notice is personally delivered or properly mailed. 
 12. Binding Effect. Except as otherwise provided in this Award Agreement or in the Plan, every covenant, term, and provision of this Award Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees, and assigns. 
 13. Modifications. This Award Agreement may be modified or amended at any time, in accordance with Section 15 of the Plan, provided that you must consent in writing to any modification that adversely alters or impairs any
of your rights or obligations under this Award Agreement, unless there is an express Plan provision that permits the Committee to unilaterally make the modification. 
 14. Headings. Section and other headings contained in this Award Agreement are for reference purposes only and are not intended to describe, interpret, define or limit the scope or intent of this Award
Agreement or any provision hereof. 
 15. Severability. Every provision of this Award Agreement and of the Plan is intended to be severable. If
any term hereof is illegal or invalid for any reason, such illegality or invalidity shall not affect the validity or legality of the remaining terms of this Award Agreement. 
  

 - 5 - 









 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 16. Counterparts. This Award Agreement may be executed by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. 
 17.
Plan Governs. By signing this Award Agreement, you acknowledge that you have received a copy of the Plan and that your Award Agreement is subject to all the provisions contained in the Plan, the provisions of which are made a part of
this Award Agreement, and that your Award is subject to all interpretations, amendments, rules and regulations which from time to time may be promulgated and adopted pursuant to the Plan. In the event of a conflict between the provisions of this
Award Agreement and those of the Plan, the provisions of the Plan shall control. 
 18. Governing Law. The laws of the State of Delaware
(without regard to conflicts of laws principles) shall govern the validity of this Award Agreement, the construction of its terms, and the interpretation of the rights and duties of the parties hereto. 
 19. Not a Contract of Employment. By executing this Award Agreement you acknowledge and agree that (i) any person whose service is terminated before
full vesting of an award, such as the one granted to you by this Award, could claim that he or she was terminated to preclude vesting; (ii) you promise never to make such a claim; (iii) nothing in this Award Agreement or the Plan confers
on you any right to continue an employment, service or consulting relationship with the Company Group, nor shall it affect in any way your right or the Company Group’s right to terminate your employment, service, or consulting relationship at
any time, with or without Cause; and (iv) the Company would not have granted this Award to you but for these acknowledgements and agreements. 
 20.
[Employment Agreement Provision [OPTIONAL IF EMPLOYEE HAS AN EMPLOYMENT AGREEMENT] By executing this Award, you acknowledge and agree that your rights upon a termination of employment before full vesting of this Award will be
determined under Section              of that certain employment agreement between you and the Company, dated as of
                                 , 20    .]

 [Signature Page Follows] 
  

 - 6 - 









 SAR Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you and the
Company agree that this Award is being made under and governed by the terms and conditions of this Award and the Plan. 
  

			
	MASIMO CORPORATION
		
	By:	 	  

	Name:	 	  

	Its:	 	  

	
	PARTICIPANT
	
	The undersigned Participant hereby accepts the terms of this Award and the Plan.
		
	By:	 	  




					
	Name of Participant:	 	  



  

 - 7 - 








 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  








 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 








 EXHIBIT C 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 

 Form of Stock Appreciation Rights Exercise 
  

 Attention: Masimo Corporation  
 [INSERT ADDRESS HERE] 
 Dear Sir or Madam: 
 The undersigned elects to exercise his/her Stock Appreciation Rights with respect to
             shares of Common Stock of Masimo Corporation (the “Company”) under and pursuant to an SAR Agreement dated as of
                            . 
 The undersigned recognizes and agrees that the Company will satisfy its obligations arising from this exercise notice through issuing shares of its
Common Stock, with the name or names to be on the stock certificate or certificates and the address and Social Security Number of such person(s) to be as follows: 
  

	
	 Name:                                     
                                        
                                        
                                        
                                        
                                        
       

	
	 Address:                                     
                                        
                                        
                                        
                                        
                                        
   

	
	
	 Social Security Number
:                                        
                                        
                                        
                                        
                                        
         

	

  

			
	                                      
                                       
                                        
           	 	                                      
                                        
                                        
           
	Date	 	SAR Holder










 EXHIBIT D 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Designation of Beneficiary

  

 In connection
with Award Agreements between Masimo Corporation (the “Company”) and                 , an individual residing at
             (the “Recipient”), the Recipient hereby designates the person specified below as the beneficiary of the Recipient’s interest in Awards as
defined in the Company’s 2007 Stock Incentive Plan (the “Plan”). This designation shall remain in effect until revoked in writing by the Recipient. 
  

							
		 	Name of Beneficiary:	 	  
	 	
		 	Address:	 	  
	 	
		 		 	  
	 	
		 		 	  
	 	
		 	Social Security No.:	 	  
	 	

 This beneficiary designation relates to any and all of Recipient’s rights under the following
Award or Awards: 
  

	 	 ̈	any Award that Recipient has received under the Plan. 

  

	 	 ̈	the                          Award that Recipient
received pursuant to an award agreement dated                  ,              between
Recipient and the Company. 

 The Recipient understands that this designation operates to entitle the above-named beneficiary
to the rights conferred by an Award from the date this form is delivered to the Company until such date as this designation is revoked in writing by the Recipient, including by delivery to the Company of a written designation of beneficiary executed
by the Recipient dated as of a later date. 
  

			
	Date:	 	  

	By:	 	  

		 	[Recipient Name]


  

	
	Sworn to before me this
	         day of                     ,
20    
	
	Notary Public
	County of
                                       
 
	State of
                                        
    








 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Restricted Share Award Agreement 
  

 Award No.              
 You (the “Participant”) are hereby awarded Restricted Shares (“Restricted Shares”) subject to the terms
and conditions set forth in this Restricted Share Award Agreement (“Award Agreement”), and in the Masimo Corporation 2007 Stock Incentive Plan (the “Plan”), which is attached hereto as
EXHIBIT A. A summary of the Plan appears in its Prospectus, which is attached hereto as EXHIBIT B. You should review carefully these documents, and consult with your
personal financial advisor, in order to fully understand the implications of this Award Agreement, including your tax alternatives and their consequences. This Award is conditioned on your execution of this Award Agreement. 
 By executing this Award Agreement, you agree to be bound by all of the Plan’s terms and conditions as if they had been set out verbatim in this
Award Agreement. In addition, you recognize and agree that all determinations, interpretations, or other actions respecting the Plan and this Award Agreement will be made by the Board of Directors (the “Board”) of Masimo
Corporation (the “Company”) or the Committee pursuant to Section 4 of the Plan, and that such determinations, interpretations or other actions shall (in the absence of manifest bad faith or fraud) be final, conclusive
and binding upon all parties, including you and your heirs, representatives and successors-in-interest. Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Plan. 
  

	1.	Specific Terms. Your Restricted Shares have the following terms: 

  

			
	Name of Participant	  	                                      
                                        
                                        
                                        
                                        
               
		
	Number of Shares Subject to Award	  	                                      
                                        
                                        
                                        
                                        
               
		
	Purchase Price per Share (if applicable)	  	 ̈     Not
applicable              ̈ $
             per share
		
	Award Date	  	                                      
                                        
                                        
                                        
                                        
               
		
	Vesting	  	At the rate of         % on each of the next          [monthly] [quarterly] [annual]
anniversaries of the Award Date; subject to acceleration as provided in the Plan and in Section 2 below, and to your Continuous Service not ending before the vesting date.
		
	Transfer of Award	  	You may transfer your Restricted Shares only pursuant to Section 10 hereof.
		
	Deferral Elections	  	 ̈  Allowed in accordance with Section 8(g) of the Plan.  ̈  Not allowed.

  

 - 1 - 









 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 2. Accelerated Vesting; Change in Corporate Control. To the extent you have not previously vested in
your rights with respect to this Award, your Award will become: 
  

	 	 ̈	        % vested if your Continuous Service ends due to your death or “disability” within the meaning of Section 409A
of the Code; 

  

	 	 ̈	        % vested if your Continuous Service ends due to your retirement at or after you have attained the age of
         and completed at least          full years of Continuous Service; 

  

	 	 ̈	according to the following schedule if your Continuous Service ends due to an Involuntary Termination that occurs in connection with or within the one-year period following a Change
in Control: 

  

				
	 Date on which Your Involuntary Termination
 Occurs (by reference to Date of Award)
	  	 Portion of Your Award
 As to which Vesting Accelerates
	 
	 Before 1st Anniversary
	  	0	%
	 Between 1st and 2nd Anniversary
	  	    	%
	 After 2nd Anniversary
	  	    	%

 3. Dividends. When Shares are delivered to you or your duly-authorized transferee pursuant to the
vesting of the Shares, you or your duly-authorized transferee shall also be entitled to receive, with respect to each Share issued, an amount equal to any cash dividends (plus simple interest at a rate of 5% per annum, or such other reasonable
rate as the Committee may determine) and a number of Shares equal to any stock dividends, which were declared and paid to the holders of Shares between the Grant Date and the date such Shares are issued. 
 4. Investment Purposes. By executing this Agreement, you represent and warrant to the Company that you are acquiring your Restricted Shares for investment
purposes only and not with a view to, for resale in connection with, or with an intent of participating directly or indirectly in, any distribution of such Restricted Shares within the meaning of the Securities Act of 1933, as amended. 

5. Issuance of Restricted Shares. Until all vesting restrictions lapse, any certificates that you receive for Restricted Shares will include a legend
stating that they are subject to the restrictions set forth in the Plan and this Award Agreement. The Company may, in its discretion, hold such Restricted Shares in escrow until vesting occurs. Certificates shall not be delivered to you unless you
have made arrangements satisfactory to the Committee to satisfy your tax-withholding obligations. The certificates evidencing such Restricted Shares that will be issued will bear the following legend that shall remain in place and effective until
all other vesting restrictions lapse and new certificates are issued: 
 “The sale or other transfer of the Stock represented by this
certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer set forth in the Masimo Corporation 2007 Stock Incentive Plan, and in any rules and administrative 

  

 - 2 - 









 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 
procedures adopted pursuant to such Plan and in a related Award Agreement. A copy of the Plan, such rules and procedures and such Award Agreement may be
obtained from the Secretary of Masimo Corporation.” 
 6. Unvested Restricted Shares. You will be reflected as the owner of record on the
Company’s books and records of any Shares issued pursuant to this Award Agreement. The Company will hold the stock certificates for safekeeping until such Shares have become vested and non-forfeitable. You must deliver to the Company, as soon
as practicable after the date any Shares are issued, a stock power, endorsed in blank, with respect to any such Shares. If you forfeit any Shares, the stock power will be used to return the certificates for the forfeited Shares to the Company’s
transfer agent for cancellation. As the owner of record of any Restricted Shares you qualify to receive pursuant to this Award Agreement, you will be entitled to all rights of a stockholder of the Company, including the right to vote Shares and the
right to the payment of any cash dividends and other distributions (including those paid in stock) following the date of issuance of such Shares and to the extent paid in stock, such stock shall be subject to the same restrictions contained in
Section 1 hereof, subject in each case to the treatment of the Award upon termination of service with the Company and/or an Affiliate (the “Company Group”) before the particular record date for determining stockholders
of record entitled to the payment of the dividend or distribution. 
 7. Termination of Continuous Service. Subject to Section 2
above, this Award shall be canceled and become automatically null and void immediately after termination of your Continuous Service for any reason, but only to the extent you have not become vested, pursuant to the foregoing terms, on or at the time
your Continuous Service ends. 
 8. Performance-based Acceleration. [OPTIONAL] Your Restricted Shares shall be subject to
accelerated vesting following the second anniversary of the Award Date if the Committee determines that the following performance conditions have been satisfied:
                .] 
 9. Long-term Consideration for
Award. The Participant recognizes and agrees that the Company’s key consideration in granting this Award is securing the long-term commitment of the Participant to serve as a
                 [include job title or description of the Participant] who will advance and promote the Company Group’s business interests and
objectives. Accordingly, the Participant agrees that this Award shall be subject to the terms and conditions set forth in Section 26 of the Plan (relating to the termination, rescission, and recapture if you violate certain commitments made
therein to the Company Group), as well as to the following terms and conditions as material and indivisible consideration for this Award: 
 (a) Fiduciary Duty. During his or her service with the Company Group, the Participant shall devote his or her full energies, abilities, attention and business time to the performance of his or her service responsibilities and
shall not engage in any activity which conflicts or interferes with, or in any way compromises, his or her performance of such responsibilities. 
 (b) Confidential Information. The Participant recognizes that by virtue of his or her service with the Company Group, he or she will be granted otherwise prohibited access to confidential information and proprietary data which are
not known and not readily accessible to the Company Group’s competitors. This information (the “Confidential Information”) includes, but 

  

 - 3 - 









 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 
is not limited to, current and prospective customers; the identity of key contacts at such customers; customers’ particularized preferences and needs;
marketing strategies and plans; financial data; personnel data; compensation data; proprietary procedures and processes; and other unique and specialized practices, programs and plans of the Company Group and their respective customers and
prospective customers. The Participant recognizes that this Confidential Information constitutes a valuable property of the Company Group, developed over a significant period of time and at substantial expense. Accordingly, the Participant agrees
that he or she shall not, at any time during or after his or her service with the Company Group, divulge such Confidential Information or make use of it for his or her own purposes or the purposes of any person or entity other than the Company
Group. 
 (c) Non-Solicitation of Customers. The Participant recognizes that by virtue of his or her service with the Company Group he
or she will be introduced to and involved in the solicitation and servicing of existing customers of the Company Group and new customers obtained by the Company Group during his or her service. The Participant understands and agrees that all efforts
expended in soliciting and servicing such customers shall be for the permanent benefit of the Company Group. The Participant further agrees that during his or her service with the Company Group the Participant will not engage in any conduct which
could in any way jeopardize or disturb any of the Company Group’s customer relationships. The Participant also recognizes the Company Group’s legitimate interest in protecting, for a reasonable period of time after his or her service with
the Company Group, the Company Group’s customers. Accordingly, the Participant agrees that, for a period beginning on the date hereof and ending five (5) years after termination of Participant’s service with the Company Group,
regardless of the reason for such termination, the Participant shall not, directly or indirectly, without the prior written consent of the Chief Executive Officer or Chairman of the Company, solicit any actual or potential customer or supplier of
the Company Group for any business that competes, directly or indirectly, with the Company Group. 
 (d) Non-Solicitation of
Employees. The Participant recognizes the substantial expenditure of time and effort which the Company Group devotes to the recruitment, hiring, orientation, training and retention of its employees. Accordingly, the Participant agrees that, for
a period beginning on the date hereof and ending five (5) years after termination of Participant’s service with the Company Group, regardless of the reason for such termination, the Participant shall not, directly or indirectly, for
himself or herself or on behalf of any other person or entity, solicit, offer employment to, hire or otherwise retain the services of any employee of the Company Group. 
 (e) Survival of Commitments; Potential Recapture of Award and Proceeds. The Participant acknowledges and agrees that the terms and conditions of this Section regarding confidentiality and
non-solicitation shall survive both (i) the termination of Participant’s service with the Company Group for any reason, and (ii) the termination of the Plan for any reason. The Participant acknowledges and agrees that the grant of the
Restricted Shares pursuant to this Award Agreement is just and adequate consideration for the survival of the restrictions set forth herein, and that the Company Group may pursue any or all of the following remedies if the Participant either
violates the terms of this Section or succeeds for any reason in invalidating any part of it (it being understood that the invalidity of any term hereof would result in a failure of consideration for the Award): 
  

 - 4 - 









 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  


	 	(i)	declaration that the Award is null and void and of no further force or effect; 

  

	 	(ii)	recapture of any cash paid or Shares issued to the Participant, or any designee or beneficiary of the Participant, pursuant to the Award; and 

  

	 	(iii)	recapture of the proceeds, plus reasonable interest, with respect to any Shares that are both issued pursuant to this Award and sold or otherwise disposed of by the Participant, or
any designee or beneficiary of the Participant. 

 The remedies provided above are not intended to be exclusive, and the Company Group may seek
such other remedies as are provided by law, including equitable relief. 
 (f) Acknowledgement. The Participant acknowledges and agrees
that his or her adherence to the foregoing requirements will not prevent him or her from engaging in his or her chosen occupation and earning a satisfactory livelihood following the termination of his or her service with the Company Group.

 10. Section 83(b) Election Notice. If you make an election under Section 83(b) of the Internal Revenue Code of 1986, as amended,
with respect to the Shares underlying your Restricted Shares (a “Section 83(b) Election”), you agree to provide a copy of such election to the Company within 10 days after filing that election with the Internal Revenue
Service. EXHIBIT C attached hereto contains a suggested form of Section 83(b) Election. 
 11. Designation of
Beneficiary. Notwithstanding anything to the contrary contained herein or in the Plan, following the execution of this Award Agreement, you may expressly designate a beneficiary (the “Beneficiary”) to your interest,
if any, in the Restricted Shares awarded hereby. You shall designate the Beneficiary by completing and executing a designation of beneficiary agreement substantially in the form attached hereto as EXHIBIT D (the
“Designation of Beneficiary”) and delivering an executed and notarized copy of the Designation of Beneficiary to the Company. 
 12.
Restrictions on Transfer. Except as set forth in the Plan, this Award Agreement may not be sold, pledged, or otherwise transferred without the prior written consent of the Committee. Notwithstanding the foregoing, you may transfer
this Award Agreement (i) by instrument to an inter vivos or testamentary trust (or other entity) in which each beneficiary is a permissible gift recipient, as such is set forth in clause (ii) of this Section, or (ii) by gift to
charitable institutions or by gift or transfer for consideration to any of your relatives as follows (or to an inter vivos trust, testamentary trust or other entity primarily for the benefit of your relatives as follows): any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, domestic partner, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships. Any
transferee of your rights shall succeed and be subject to all of the terms of this Award Agreement and the Plan. 
 13. Income Taxes and Deferred
Compensation. The Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with this Award 

  

 - 5 - 









 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 
(including any taxes arising under Section 409A of the Code), and the Company shall not have any obligation to indemnify or otherwise hold any
Participant harmless from any or all of such taxes. The Committee shall have the discretion to unilaterally modify this Award in a manner that (i) conforms with the requirements of Section 409A of the Code, (ii) that voids any
election of the Participant to the extent it would violate Section 409A of the Code, and (iii) for any distribution election that would violate Section 409A of the Code, to make distributions pursuant to the Award at the earliest to
occur of a distribution event that is allowable under Section 409A of the Code or any distribution event that is both allowable under Section 409A of the Code and is elected by the Participant, subject to any valid second election to
defer, provided that the Committee permits second elections to defer in accordance with Section 409A(a)(4)(C). The Committee shall have the sole discretion to interpret the requirements of the Code, including Section 409A, for purposes of
the Plan and this Award Agreement. 
 14. Notices. Any notice or communication required or permitted by any provision of this Award Agreement
to be given to you shall be in writing and shall be delivered personally or sent by certified mail, return receipt requested, addressed to you at the last address that the Company had for you on its records. Each party may, from time to time, by
notice to the other party hereto, specify a new address for delivery of notices relating to this Award Agreement. Any such notice shall be deemed to be given as of the date such notice is personally delivered or properly mailed. 
 15. Binding Effect. Except as otherwise provided in this Award Agreement or in the Plan, every covenant, term, and provision of this Award Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees, and assigns. 
 16. Modifications. This Award Agreement may be modified or amended at any time, in accordance with Section 15 of the Plan, provided that you must consent in writing to any modification that adversely alters or impairs any
of your rights or obligations under this Award Agreement, unless there is an express Plan provision that permits the Committee to unilaterally make the modification. 
 17. Headings. Section and other headings contained in this Award Agreement are for reference purposes only and are not intended to describe, interpret, define or limit the scope or intent of this Award
Agreement or any provision hereof. 
 18. Severability. Every provision of this Award Agreement and of the Plan is intended to be severable. If
any term hereof is illegal or invalid for any reason, such illegality or invalidity shall not affect the validity or legality of the remaining terms of this Award Agreement. 
 19. Counterparts. This Award Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall
together constitute one and the same instrument. 
 20. Plan Governs. By signing this Award Agreement, you acknowledge that you have received a
copy of the Plan and that your Award Agreement is subject to all the provisions contained in the Plan, the provisions of which are made a part of this Award Agreement, and that your Award is subject to all interpretations, amendments, rules and
regulations which from time to time may be promulgated and adopted pursuant to the Plan. In the event of a conflict between the provisions of this Award Agreement and those of the Plan, the provisions of the Plan shall control. 
  

 - 6 - 









 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 21. Governing Law. The laws of the State of Delaware (without regard to conflicts of laws principles)
shall govern the validity of this Award Agreement, the construction of its terms, and the interpretation of the rights and duties of the parties hereto. 
 22. Not a Contract of Employment. By executing this Award Agreement you acknowledge and agree that (i) any person whose service is terminated before full vesting of an award, such as the one granted to you by this Award,
could claim that he or she was terminated to preclude vesting; (ii) you promise never to make such a claim; (iii) nothing in this Award Agreement or the Plan confers on you any right to continue an employment, service or consulting
relationship with the Company Group, nor shall it affect in any way your right or the Company Group’s right to terminate your employment, service, or consulting relationship at any time, with or without Cause; and (iv) the Company would
not have granted this Award to you but for these acknowledgements and agreements. 
 23. [Employment Agreement Provision [OPTIONAL IF EMPLOYEE HAS
AN EMPLOYMENT AGREEMENT] By executing this Award, you acknowledge and agree that your rights upon a termination of employment before full vesting of this Award will be determined under Section
             of that certain employment agreement between you and the Company, dated as of
                                 ,
20    .] 
 <Signature Page Follows> 
  

 - 7 - 









 Restricted Share Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you and the
Company agree that the Restricted Shares are awarded under and governed by the terms and conditions of this Award Agreement and the Plan. 
  

			
	MASIMO CORPORATION
		
	By:	 	  

	Name:	 	  

	Its:	 	  

	
	PARTICIPANT
	
	The undersigned Participant hereby accepts the terms of this Award and the Plan.
		
	By:	 	  

	Name of Participant:                                 
                              


  

 - 8 - 








 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  








 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 








 EXHIBIT C 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Section 83(b) Election Form

  

 Attached is an
Internal Revenue Code Section 83(b) Election Form. IF YOU WISH TO MAKE A SECTION 83(B) ELECTION, YOU MUST DO SO WITHIN 30 DAYS AFTER THE DATE THE RESTRICTED SHARES COVERED BY THE ELECTION WERE TRANSFERRED TO YOU. In order to make the
election, you must completely fill out the attached form and file one copy with the Internal Revenue Service office where you file your tax return. In addition, one copy of the statement also must be submitted with your income tax return for the
taxable year in which you make this election. Finally, you also must submit a copy of the election form to the Company within 10 days after filing that election with the Internal Revenue Service. A Section 83(b) Election normally cannot be
revoked. 







 EXHIBIT C 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
 Election to Include Value of Restricted Shares in Gross Income 
 in Year of Transfer Under Internal Revenue Code Section 83(b) 
 Pursuant to Section 83(b)
of the Internal Revenue Code, I hereby elect within 30 days after receiving the property described herein to be taxed immediately on its value specified in item 5 below. 
 1. My General Information: 
  

							
		 	Name:	  	  
	  	
		 	Address:	  	  
	  	
		 	  
	  	
		 	S.S.N.	  	
		 	or T.I.N.:	  	                                      
                                        
                           	  	

 2. Description of the property with respect to which I am making this election: 
                                       
   shares of common stock of Masimo Corporation 
 (the “Restricted Shares”). 

3. The Restricted Shares were transferred to me on
                    , 20    . This election relates to the 20     calendar taxable year.

 4. The Restricted Shares are subject to the following restrictions: 
 The Restricted Shares are forfeitable until they is are earned in accordance with Section 1 of the Masimo Corporation 2007 Stock Incentive Plan (“Plan”) Restricted Share Award Agreement
(“Award Agreement”) or other Award Agreement or Plan provisions. The Restricted Shares generally are not transferable until my interest becomes vested and nonforfeitable, pursuant to the Award Agreement and the Plan.

 5. Fair market value: 
 The fair market value
at the time of transfer (determined without regard to any restrictions other than restrictions which by their terms never will lapse) of the Restricted Shares with respect to which I am making this election is
$             per share. 
 6. Amount paid for Restricted Shares: 
 The amount I paid for the Restricted Shares is $             per share. 
  

 - 1 - 








 7. Furnishing statement to employer: 
 A copy of this statement has been furnished to my employer,             . If the transferor of the Restricted Shares is not my employer, that entity
also has been furnished with a copy of this statement. 
 8. Award Agreement or Plan not affected: 
 Nothing contained herein shall be held to change any of the terms or conditions of the Award Agreement or the Plan. 
  

			
	Dated:                                     ,
20    	  	  

		  	Taxpayer

  

 - 2 - 








 EXHIBIT D 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Designation of Beneficiary

  

 In connection
with Award Agreements between Masimo Corporation (the “Company”) and                         , an
individual residing at                          (the “Recipient”), the Recipient hereby designates
the person specified below as the beneficiary of the Recipient’s interest in Awards, as defined in the Company’s 2007 Stock Incentive Plan (the “Plan”). This designation shall remain in effect until revoked in
writing by the Recipient. 
  

							
		 	Name of Beneficiary:	 	  
	 	
		 	Address:	 	  
	 	
		 		 	  
	 	
		 		 	  
	 	
		 	Social Security No.:	 	  
	 	

 This beneficiary designation relates to any and all of Recipient’s rights under the following
Award or Awards: 
  

	 	 ̈	any Award that Recipient has received under the Plan. 

  

	 	 ̈	the                          Award that Recipient
received pursuant to an award agreement dated                      ,          between
Recipient and the Company. 

 The Recipient understands that this designation operates to entitle the above-named beneficiary
to the rights conferred by an Award from the date this form is delivered to the Company until such date as this designation is revoked in writing by the Recipient, including by delivery to the Company of a written designation of beneficiary executed
by the Recipient dated as of a later date. 
  

			
	Date:	 	  

		
	By:	 	  

		 	[Recipient Name]


  

	
	Sworn to before me this
	             day of
                         , 20    
	                                      
                                        
                         
	Notary Public
	County
of                                       
                                        
    
	State
of                                       
                                        
         








 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Restricted Share Unit Award Agreement 
  

 Award No.              
 You (the “Participant”) are hereby awarded Restricted Share Units (the “RSUs”) subject to the terms and
conditions set forth in this Restricted Share Unit Award Agreement (“Award Agreement”), and in the Masimo Corporation 2007 Stock Incentive Plan (the “Plan”), which is attached hereto as
EXHIBIT A. A summary of the Plan appears in its Prospectus, which is attached hereto as EXHIBIT B. You should review carefully these documents, and consult with your personal financial advisor, in
order to fully understand the implications of this Award Agreement, including your tax alternatives and their consequences. This Award is conditioned on your execution of this Award Agreement. 
 By executing this Award Agreement, you agree to be bound by all of the Plan’s terms and conditions as if they had been set out verbatim in this
Award Agreement. In addition, you recognize and agree that all determinations, interpretations, or other actions respecting the Plan and this Award Agreement will be made by the Board of Directors (the “Board”) of Masimo
Corporation (the “Company”) or the Committee pursuant to Section 4 of the Plan, and that such determinations, interpretations or other actions shall (in the absence of manifest bad faith or fraud) be final, conclusive
and binding upon all parties, including you and your heirs, representatives and successors-in-interest. Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Plan. 
 1. Specific Terms. Your RSUs have the following terms: 
  

			
	Name of Participant	  	                                      
                                        
                                        
                                        
                                        
 
		
	Number of Restricted Share Units Subject to Award	  	                                      
                                        
                                        
                                        
                                        
 
		
	Purchase Price per Share	  	 ̈     Not
applicable              ̈    
$         per share
	(if applicable)	  	
		
	Award Date	  	                                      
                                        
                                        
                                        
                                        
 
		
	Vesting	  	At the rate of     % on each of the next      [monthly] [quarterly] [annual] anniversaries of the Award Date; subject to
acceleration as provided in the Plan and in Section 2 below, and to your Continuous Service not ending before the vesting date.
		
	Deferral Elections	  	  ̈  Allowed in accordance with
Section 8(g) of the Plan.
  ̈  Not
allowed.


  

 - 1 - 









 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 2. Accelerated Vesting; Change in Corporate Control. To the extent you have not previously vested in
your rights with respect to this Award, your Award will become: 
  

	 	 ̈	        % vested if your Continuous Service ends due to your death or “disability” within the meaning of Section 409A
of the Code; 

  

	 	 ̈	        % vested if your Continuous Service ends due to your retirement at or after you have attained the age of
         and completed at least          full years of Continuous Service; 

  

	 	 ̈	according to the following schedule if your Continuous Service ends due to an Involuntary Termination that occurs in connection with or within the one-year period following a Change
in Control: 

  

				
	 Date on which Your Involuntary Termination
 Occurs (by reference to Date of Award)
	  	 Portion of Your Award
 As to which Vesting Accelerates
	 
	 Before 1st Anniversary
	  	0	%
	 Between 1st and 2nd Anniversary
	  	    	%
	 After 2nd Anniversary
	  	    	%

 3. Dividends. When Shares are delivered to you or your duly-authorized transferee pursuant to
the vesting of the Shares underlying your RSUs, you or your duly-authorized transferee shall also be entitled to receive, with respect to each Share issued, an amount equal to any cash dividends (plus simple interest at a rate of 5% per annum,
or such other reasonable rate as the Committee may determine) and a number of Shares equal to any stock dividends, which were declared and paid to the holders of Shares between the Grant Date and the date such Share is issued. 
 4. Investment Purposes. By executing this Agreement, you represent and warrant to the Company that any Shares issued to you pursuant to your RSUs will be
for investment for your own account and not with a view to, for resale in connection with, or with an intent of participating directly or indirectly in, any distribution of such Shares within the meaning of the Securities Act of 1933, as amended.

 5. Termination of Continuous Service. Subject to Section 2 hereof, this Award shall be canceled and become automatically null and void
immediately upon termination of your Continuous Service for any reason, but only to the extent you have not become vested, pursuant to the foregoing terms, on or at the time your Continuous Service ends. 
 6. Satisfaction of Vesting Restrictions. No Shares will be issued before you complete the requirements that are necessary for you to vest in the Shares
underlying your RSUs. As soon as practicable after the date on which your RSUs vest in whole or in part, the Company will issue to you or your duly-authorized transferee, free from vesting restrictions (but subject to such legends as the Company
determines to be appropriate), one Share for each vested RSU. Fractional shares will not be issued, and cash will be paid in lieu thereof. Certificates shall not be delivered to you unless you have made arrangements satisfactory to the
Committee to satisfy tax-withholding obligations. 
  

 - 2 - 









 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 7. [Performance-based Acceleration. [OPTIONAL] Your RSUs shall be subject to accelerated
vesting following the second anniversary of the Award Date if the Committee determines that the following performance conditions have been satisfied:
                .] 
 8. Long-term Consideration for
Award. The Participant recognizes and agrees that the Company’s key consideration in granting this Award is securing the long-term commitment of the Participant to serve as a
                 [include job title or description of the Participant] who will advance and promote the business interests and objectives of the
Company and/or its Affiliates (the “Company Group”). Accordingly, the Participant agrees that this Award shall be subject to the terms and conditions set forth in Section 26 of the Plan (relating to the termination,
rescission, and recapture if you violate certain commitments made therein to the Company Group), as well as to the following terms and conditions as material and indivisible consideration for this Award: 
 (a) Fiduciary Duty. During his or her service with the Company Group, the Participant shall devote his or her full energies, abilities, attention
and business time to the performance of his or her service responsibilities and shall not engage in any activity which conflicts or interferes with, or in any way compromises, his or her performance of such responsibilities. 
 (b) Confidential Information. The Participant recognizes that by virtue of his or her service with the Company Group, he or she will be granted
otherwise prohibited access to confidential information and proprietary data which are not known, and not readily accessible to the Company Group’s competitors. This information (the “Confidential Information”) includes,
but is not limited to, current and prospective customers; the identity of key contacts at such customers; customers’ particularized preferences and needs; marketing strategies and plans; financial data; personnel data; compensation data;
proprietary procedures and processes; and other unique and specialized practices, programs and plans of the Company Group and their respective customers and prospective customers. The Participant recognizes that this Confidential Information
constitutes a valuable property of the Company Group, developed over a significant period of time and at substantial expense. Accordingly, the Participant agrees that he or she shall not, at any time during or after his or her service with the
Company Group, divulge such Confidential Information or make use of it for his or her own purposes or the purposes of any person or entity other than the Company Group. 
 (c) Non-Solicitation of Customers. The Participant recognizes that by virtue of his or her service with the Company Group he or she will be introduced to and involved in the solicitation and servicing of
existing customers of the Company Group and new customers obtained by the Company Group during his or her service. The Participant understands and agrees that all efforts expended in soliciting and servicing such customers shall be for the permanent
benefit of the Company Group. The Participant further agrees that during his or her service with the Company Group the Participant will not engage in any conduct which could in any way jeopardize or disturb any of the Company Group’s customer
relationships. The Participant also recognizes the Company Group’s legitimate interest in protecting, for a reasonable period of time after his or her service with the Company Group, the Company Group’s customers. Accordingly, the
Participant agrees that, for a period beginning on the date hereof and ending five (5) years after termination of Participant’s 

  

 - 3 - 









 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 
service with the Company Group, regardless of the reason for such termination, the Participant shall not, directly or indirectly, without the prior written
consent of the Chief Executive Officer or Chairman of the Company, solicit any actual or potential customer or supplier of the Company Group for any business that competes, directly or indirectly, with the Company Group. 
 (d) Non-Solicitation of Employees. The Participant recognizes the substantial expenditure of time and effort which the Company Group devotes to
the recruitment, hiring, orientation, training and retention of its employees. Accordingly, the Participant agrees that, for a period beginning on the date hereof and ending five (5) years after termination of Participant’s service with
the Company Group, regardless of the reason for such termination, the Participant shall not, directly or indirectly, for himself or herself or on behalf of any other person or entity, solicit, offer employment to, hire or otherwise retain the
services of any employee of the Company Group. 
 (e) Survival of Commitments; Potential Recapture of Award and Proceeds. The
Participant acknowledges and agrees that the terms and conditions of this Section regarding confidentiality and non-solicitation shall survive both (i) the termination of Participant’s service with the Company Group for any reason, and
(ii) the termination of the Plan, for any reason. The Participant acknowledges and agrees that the grant of RSUs in this Award Agreement is just and adequate consideration for the survival of the restrictions set forth herein, and that the
Company Group may pursue any or all of the following remedies if the Participant either violates the terms of this Section or succeeds for any reason in invalidating any part of it (it being understood that the invalidity of any term hereof would
result in a failure of consideration for the Award): 
  

	 	(i)	declaration that the Award is null and void and of no further force or effect; 

  

	 	(ii)	recapture of any cash paid or Shares issued to the Participant, or any designee or beneficiary of the Participant, pursuant to the Award; and 

  

	 	(iii)	recapture of the proceeds, plus reasonable interest, with respect to any Shares that are both issued pursuant to this Award and sold or otherwise disposed of by the Participant, or
any designee or beneficiary of the Participant. 

 The remedies provided above are not intended to be exclusive, and the Company Group may seek
such other remedies as are provided by law, including equitable relief. 
 (f) Acknowledgement. The Participant acknowledges and
agrees that his or her adherence to the foregoing requirements will not prevent him or her from engaging in his or her chosen occupation and earning a satisfactory livelihood following the termination of his or her service with the Company Group.

 9. Section 83(b) Election Notice. If you provide the Company with prior written notice of your intention to make an election
under Section 83(b) of the Internal Revenue Code of 1986, as amended, with respect to the Shares underlying your RSUs (a “Section 83(b) Election”), the Committee may in its discretion convert your RSUs into Restricted
Shares, on a one-for-one basis, in full satisfaction of this Award Agreement. You agree to provide a copy of such election to the Company within 10 days after filing that election with the Internal Revenue Service. EXHIBIT C
attached hereto contains a suggested form of Section 83(b) Election. Any Restricted Shares issued 

  

 - 4 - 









 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 
to you pursuant to this Section 9 shall bear such legends as the Company determines to be appropriate until all vesting restrictions lapse and
certificates are issued to you pursuant to Section 4 of this Award. 
 10. Designation of Beneficiary. Notwithstanding anything to the
contrary contained herein or in the Plan, following the execution of this Award Agreement, you may expressly designate a beneficiary (the “Beneficiary”) to your interest, if any, in the RSUs awarded hereby. You shall
designate the Beneficiary by completing and executing a designation of beneficiary agreement substantially in the form attached hereto as EXHIBIT D (the “Designation of Beneficiary”) and delivering an
executed and notarized copy of the Designation of Beneficiary to the Company. 
 11. Restrictions on Transfer. Except as set forth in the Plan,
this Award Agreement may not be sold, pledged, or otherwise transferred without the prior written consent of the Committee. Notwithstanding the foregoing, you may transfer this Award Agreement (i) by instrument to an inter vivos or
testamentary trust (or other entity) in which each beneficiary is a permissible gift recipient, as such is set forth in clause (ii) of this Section, or (ii) by gift to charitable institutions or by gift or transfer for consideration to any
of your relatives as follows (or to an inter vivos trust, testamentary trust or other entity primarily for the benefit of any of your relatives as follows): any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse,
domestic partner, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships. Any transferee of your rights shall succeed to and be subject to all of the
terms of this Award Agreement and the Plan. 
 12. Income Taxes and Deferred Compensation. The Participant is solely responsible and liable for
the satisfaction of all taxes and penalties that may arise in connection with this Award (including any taxes arising under Section 409A of the Code), and the Company shall not have any obligation to indemnify or otherwise hold any Participant
harmless from any or all of such taxes. The Committee shall have the discretion to unilaterally modify this Award in a manner that (i) conforms with the requirements of Section 409A of the Code, (ii) that voids any election of the
Participant to the extent it would violate Section 409A of the Code, and (iii) for any distribution election that would violate Section 409A of the Code, to make distributions pursuant to the Award at the earliest to occur of a
distribution event that is allowable under Section 409A of the Code or any distribution event that is both allowable under Section 409A of the Code and is elected by the Participant, subject to any valid second election to defer, provided
that the Committee permits second elections to defer in accordance with Section 409A(a)(4)(C). The Committee shall have the sole discretion to interpret the requirements of the Code, including Section 409A, for purposes of the Plan and
this Award Agreement. 
 13. Notices. Any notice or communication required or permitted by any provision of this Award Agreement to be given to
you shall be in writing and shall be delivered personally or sent by certified mail, return receipt requested, addressed to you at the last address that the Company had for you on its records. Each party may, from time to time, by notice to the
other party hereto, specify a new address for delivery of notices relating to this Award Agreement. Any such notice shall be deemed to be given as of the date such notice is personally delivered or properly mailed. 
 14. Binding Effect. Except as otherwise provided in this Award Agreement or in the Plan, every covenant, term, and provision of this Award Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees, and assigns. 
  

 - 5 - 









 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 15. Modifications. This Award Agreement may be modified or amended at any time, in accordance with
Section 15 of the Plan, provided that you must consent in writing to any modification that adversely alters or impairs any of your rights or obligations under this Award Agreement, unless there is an express Plan provision that permits the
Committee to unilaterally make the modification. 
 16. Headings. Section and other headings contained in this Award Agreement are for
reference purposes only and are not intended to describe, interpret, define or limit the scope or intent of this Award Agreement or any provision hereof. 
 17. Severability. Every provision of this Award Agreement and of the Plan is intended to be severable. If any term hereof is illegal or invalid for any reason, such illegality or invalidity shall not affect the validity or
legality of the remaining terms of this Award Agreement. 
 18. Counterparts. This Award Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. 
 19. Plan Governs. By signing this Award Agreement, you acknowledge that you have received a copy of the Plan and that your Award Agreement is subject to all the provisions contained in the Plan, the
provisions of which are made a part of this Award Agreement, and that your Award is subject to all interpretations, amendments, rules and regulations which from time to time may be promulgated and adopted pursuant to the Plan. In the event of a
conflict between the provisions of this Award Agreement and those of the Plan, the provisions of the Plan shall control. 
 20. Governing Law.
The laws of the State of Delaware (without regard to conflicts of laws principles) shall govern the validity of this Award Agreement, the construction of its terms, and the interpretation of the rights and duties of the parties hereto. 

21. Not a Contract of Employment. By executing this Award Agreement you acknowledge and agree that (i) any person whose service is terminated
before full vesting of an award, such as the one granted to you by this Award, could claim that he or she was terminated to preclude vesting; (ii) you promise never to make such a claim; (iii) nothing in this Award Agreement or the Plan
confers on you any right to continue an employment, service or consulting relationship with the Company Group, nor shall it affect in any way your right or the Company Group’s right to terminate your employment, service, or consulting
relationship at any time, with or without Cause; and (iv) the Company would not have granted this Award to you but for these acknowledgements and agreements. 
 22. [Employment Agreement Provision [OPTIONAL IF EMPLOYEE HAS AN EMPLOYMENT AGREEMENT] By executing this Award, you acknowledge and agree that your rights upon a termination of employment before full vesting of this Award will
be determined under Section          of that certain employment agreement between you and the Company, dated as of
                                 , 20    .]

 Signature Page Follows 
  

 - 6 - 









 Restricted Share Unit Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you
and the Company agree that the RSUs hereby awarded under and governed by the terms and conditions of this Award Agreement and the Plan. 
  

			
	MASIMO CORPORATION
		
	By:	 	  

	Name:	 	  

	Its:	 	  

	
	PARTICIPANT
	
	The undersigned Participant hereby accepts the terms of this Award and the Plan.
		
	By:	 	  




					
	Name of Participant:	 	  



  

 - 7 - 








 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  








 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 








 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Section 83(b) Election Form 
  

 Attached is an Internal Revenue Code Section 83(b) Election Form. IF YOU WISH TO MAKE A SECTION 83(B) ELECTION, YOU MUST DO SO WITHIN 30 DAYS AFTER THE DATE THE
RESTRICTED SHARES COVERED BY THE ELECTION WERE TRANSFERRED TO YOU. In order to make the election, you must completely fill out the attached form and file one copy with the Internal Revenue Service office where you file your tax return. In
addition, one copy of the statement also must be submitted with your income tax return for the taxable year in which you make this election. Finally, you also must submit a copy of the election form to the Company within 10 days after filing that
election with the Internal Revenue Service. A Section 83(b) Election normally cannot be revoked. 







 EXHIBIT C 
 MASIMO CORPORATION 2007 STOCK INCENTIVE PLAN 
  

 Election to Include Value of Restricted Shares in Gross Income 
 in Year of Transfer Under Internal Revenue Code Section 83(b) 
  

 Pursuant to Section 83(b) of the Internal Revenue Code, I hereby elect within 30 days after receiving the property described herein to be taxed
immediately on its value specified in item 5 below. 
 1. My General Information: 
  

							
		 	Name:	 	  
	 	
		 	Address:	 	  
	 	
		 	 S.S.N.
 or T.I.N.:
	 	  
	 	

 2. Description of the property with respect to which I am making this election: 
  

					
		 	                    
shares of common stock of Masimo Corporation
		 	(the “Restricted Shares”).	 	

 3. The Restricted Shares were transferred to me on
                    , 20    . This election relates to the 20     calendar taxable year.

 4. The Restricted Shares are subject to the following restrictions: 
 The Restricted Shares are forfeitable until they is are earned in accordance with Section 1 of the Masimo Corporation 2007 Stock Incentive Plan
(“Plan”) Restricted Share Unit Award Agreement (“Award Agreement”) or other Award Agreement or Plan provisions. The Restricted Shares generally are not transferable until my interest becomes vested and
nonforfeitable, pursuant to the Award Agreement and the Plan. 
 5. Fair market value: 
 The fair market value at the time of transfer (determined without regard to any restrictions other than restrictions which by their terms never will
lapse) of the Restricted Shares with respect to which I am making this election is $         per share. 
  

 - 1 - 








 6. Amount paid for Restricted Shares: 
 The amount I paid for the Restricted Shares is $         per share. 
 7. Furnishing statement to employer: 
 A
copy of this statement has been furnished to my employer,                         . If the transferor of the Restricted
Shares is not my employer, that entity also has been furnished with a copy of this statement. 
 8. Award Agreement or Plan not affected:

 Nothing contained herein shall be held to change any of the terms or conditions of the Award Agreement or the Plan. 
  

			
	Dated:                          ,
20    .	  	  

		  	Taxpayer

  

 - 2 - 








 EXHIBIT D 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Designation of Beneficiary

  

 In connection
with Award Agreements between Masimo Corporation (the “Company”) and                 , an individual residing at
                     (the “Recipient”), the Recipient hereby designates the person specified below as the beneficiary
of the Recipient’s interest in Awards, as defined in the Company’s 2007 Stock Incentive Plan (the “Plan”). This designation shall remain in effect until revoked in writing by the Recipient. 
  

					
	Name of Beneficiary:	 	  
	 	
	Address:	 	  
	 	
		 	  
	 	
		 	  
	 	
	Social Security No.:	 	  
	 	

 This beneficiary designation relates to any and all of Recipient’s rights under the following
Award or Awards: 
  

	 	 ̈	any Award that Recipient has received under the Plan. 

  

	 	 ̈	the                      Award that Recipient received pursuant to an
award agreement dated                              ,
         between Recipient and the Company. 

 The Recipient understands that
this designation operates to entitle the above-named beneficiary to the rights conferred by an Award from the date this form is delivered to the Company until such date as this designation is revoked in writing by the Recipient, including by
delivery to the Company of a written designation of beneficiary executed by the Recipient dated as of a later date. 
  

			
	Date:	 	  

	By:	 	[Recipient Name]


  

	
	Sworn to before me this
	             day of
                         , 20    
	                                      
                                        
                         
	Notary Public
	County
of                                       
                                        
    
	State
of                                       
                                        
         










 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Deferral Election Agreement for Deferred Share Units 
  

 THIS DEFERRAL ELECTION AGREEMENT FOR DEFERRED SHARE UNITS (the “Deferral Agreement”) is made this
     day of         ,         , by and between
                     (the “Participant”), and Masimo Corporation (the “Company”). 

WHEREAS, the Company has established the Masimo Corporation 2007 Stock Incentive Plan (the “Plan”), a copy of which is
attached hereto as EXHIBIT A, and a summary of which appears in its Prospectus attached hereto as EXHIBIT B; 
 WHEREAS, the Participant is eligible to participate in said Plan; 
 WHEREAS, Section 9(a)
of the Plan permits the Committee to authorize deferral compensation elections with any deferred compensation being credited to Deferred Share Units (“DSUs”) in accordance with Section 9 of the Plan; 
 NOW, THEREFORE, it is mutually agreed as follows: 
 1.
Term of Election. This Deferral Agreement and the provisions of the Plan constitute the entire agreement between the parties, and will continue in full force and effect until the Participant executes a superseding Deferral Agreement,
or until revoked by the Participant in a writing sent to and approved by the Committee, or until the Participant ceases service with the Company or an Affiliate, or until the Plan is terminated by appropriate corporate action, whichever shall first
occur. This Deferral Agreement will become effective: 
  

	 	a.	on the January 1st following the execution of this Deferral Agreement; or 

  

	 	b.	on the first day of the next calendar month following the execution of this Deferral Agreement, but only if this Deferral Agreement is executed within the 30-day period after the
Participant first becomes eligible for Plan participation. 

 2. Compensation being Deferred. The Participant makes the following
election (which shall supersede any prior election only to the extent of an election made affirmatively herein) to defer the following amount of fees/compensation for as long as this Deferral Agreement is in effect: 
  

	 	a.	         percent (        %) of the amount otherwise payable in cash.


  

	 	b.	         percent (        %) of the amount otherwise payable in shares of the
Company’s common stock. 

  

	 	c.	         percent (        %) of any Restricted Share Units
(“RSUs”) in which the Participant earns a vested interest (but only if the underlying Award Agreement specifically authorizes deferral elections). 

  

 - 1 - 









 Deferral Election Agreement for Deferred Share Units 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 3. Crediting, Vesting, and Distribution of Deferred Compensation. The Company agrees to make DSU
credits in accordance with Section 9 of the Plan and the elections that the Participant makes in the Distribution Election Agreement that is attached hereto as EXHIBIT C. 
 4. Taxes. The Participant, by the execution hereof, agrees to be solely responsible for the satisfaction of any taxes that may arise (including
taxes arising under Sections 409A or 4999 of the Code), and further agrees that neither the Company nor the Committee shall have any obligation whatsoever to pay such taxes. The Committee shall nevertheless have the discretion – 
  

	 	(a)	to condition any issuance of Shares on the Participant’s satisfaction of applicable employment and withholding taxes; and 

  

	 	(b)	to unilaterally modify this Deferral Agreement in any manner that (i) conforms with the requirements of Section 409A of the Code, (ii) that voids any election of the
Participant to the extent it would violate Section 409A of the Code, and (iii) for any distribution election that would violate Section 409A of the Code, that defers distributions pursuant to the Award until the earliest to occur of a
distribution event that is allowable under Section 409A of the Code or any distribution event that is both allowable under Section 409A of the Code and is elected by the Participant, subject to any valid second election to defer, that the
Committee permits second elections to defer in accordance with Section 409A(a)(4)(C). 

 The Committee shall have the sole discretion to
interpret the requirements of the Code, including Section 409A, for purposes of the Plan and this Deferral Agreement. 
 5. Designation of
Beneficiary. Notwithstanding anything to the contrary contained herein or in the Plan, following the execution of this Deferral Agreement, you may expressly designate a beneficiary (the “Beneficiary”) to your rights
and interest under this Deferral Agreement. You shall designate the Beneficiary by completing and executing a designation of beneficiary agreement substantially in the form attached hereto as ATTACHMENT 1 to
EXHIBIT C (“Designation of Beneficiary”) and delivering an executed and notarized copy of the Designation of Beneficiary to the Company. 
 6. Restrictions on Transfer. This Deferral Agreement may not be sold, pledged, or otherwise transferred without the prior written consent of the Committee. Notwithstanding the foregoing, you may transfer
this Deferral Agreement (i) by instrument to an inter vivos or testamentary trust (or other entity) in which each beneficiary is a permissible gift recipient, as such is set forth in clause (ii) of this Section, or (ii) by gift to
charitable institutions or by gift or transfer for consideration to any of your relatives as follows (or to an inter vivos trust, testamentary trust or other entity primarily for the benefit of any of your relatives as follows): any child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, domestic partner, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships.
Any transferee of your rights shall succeed to and be subject to all of the terms of this Deferral Agreement and the Plan. 
  

 - 2 - 









 Deferral Election Agreement for Deferred Share Units 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 7. Notices. Any notice or communication required or permitted by any provision of this Deferral
Agreement to be given to you shall be in writing and shall be delivered personally or sent by certified mail, return receipt requested, addressed to you at the last address that the Company had for you on its records. Each party may, from time to
time, by notice to the other party hereto, specify a new address for delivery of notices relating to this Deferral Agreement. Any such notice shall be deemed to be given as of the date such notice is personally delivered or properly mailed.

 8. Binding Effect. Except as otherwise provided in this Deferral Agreement or in the Plan, every covenant, term, and provision of this
Deferral Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees, and assigns. 
 9. Modifications. This Deferral Agreement may be modified or amended at any time, in accordance with Section 15 of the Plan, provided that you must consent in writing to any modification that
adversely alters or impairs any of your rights or obligations under this Deferral Agreement, unless there is an express Plan provision that permits the Committee to unilaterally make the modification. 
 10. Headings. Section and other headings contained in this Deferral Agreement are for reference purposes only and are not intended to describe, interpret,
define or limit the scope or intent of this Deferral Agreement or any provision hereof. 
 11. Severability. Every provision of this Deferral
Agreement and of the Plan is intended to be severable. If any term hereof is illegal or invalid for any reason, such illegality or invalidity shall not affect the validity or legality of the remaining terms of this Deferral Agreement. 
 12. Counterparts. This Deferral Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered
shall be an original, but all such counterparts shall together constitute one and the same instrument. 
 13. Plan Governs. By signing this
Deferral Agreement, you acknowledge that you have received a copy of the Plan and that your Deferral Agreement, including the Distribution Election Agreement attached as EXHIBIT C hereto, is subject to all the provisions
contained in the Plan, the provisions of which are made a part of this Deferral Agreement, and that your Deferral Agreement is subject to all interpretations, amendments, rules and regulations which from time to time may be promulgated
and adopted pursuant to the Plan. In the event of a conflict between the provisions of this Deferral Agreement and those of the Plan, the provisions of the Plan shall control. 
 14. Governing Law. The laws of the State of Delaware (without regard to conflicts of laws principles) shall govern the validity of this Deferral Agreement, the construction of its terms, and the
interpretation of the rights and duties of the parties hereto. 
 15. Not a Contract of Employment. By executing this Deferral Agreement you
acknowledge and agree that nothing in this Deferral Agreement or the Plan confers on you any right to continue an employment, service or consulting relationship with the Company, nor shall it affect in any way your right or the Company’s right
to terminate your employment, service, or consulting relationship at any time, with or without Cause; and the Company would not have executed this Deferral Agreement but for these acknowledgements and agreements. 
 <Signature Page Follows> 
  

 - 3 - 









 Deferral Election Agreement for Deferred Share Units 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands the day and year first
above-written. 
  

			
	MASIMO CORPORATION
		
	By:	 	  

	Name:	 	  

	Its:	 	  

	
	PARTICIPANT
		
	By:	 	  




			
	Name of Participant:	 	  



  

 - 4 - 








 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  

  







 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 

  







 EXHIBIT C 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Distribution Election Agreement
regarding Deferred Share Units 
  

 THIS DISTRIBUTION ELECTION AGREEMENT (the “Distribution Agreement”) is made this          day of
        ,         , by and between
                             (the “Participant”), and Masimo Corporation (the
“Company”), with respect to compensation that the Participant defers pursuant to the terms and conditions of the Deferral Agreement (the “Deferral Agreement”) dated
                    ,         ,         between
the Participant and the Company. 
 WHEREAS, the Company has established the Masimo Corporation 2007 Stock Incentive Plan (the
“Plan”), and the Participant has elected to defer compensation and thereby to participate in said Plan and to accrue Deferred Share Units (“DSUs”) in accordance with Section 9 of the Plan;

 NOW, THEREFORE, it is mutually agreed as follows: 
 1. This Distribution Agreement, the Deferral Agreement and the Plan constitute the entire agreement between the parties with respect to the Company’s distribution to any and all benefits to which the Participant
becomes entitled pursuant to Section 9 of the Plan. The elections made in Section 2 below shall be irrevocable. The Participant’s beneficiary designation shall remain in full force and effect until revoked or changed by the
Participant in a writing sent to the Committee. 
 2. The Participant, by the execution hereof, agrees to participate in the Plan upon the terms and
conditions set forth therein, and, in accordance therewith, makes the following elections, subject to the requirement that the Participant must collect all Plan benefits not later than December 31st of the tenth (10th) year after the year
in which the Participant ceases service with the Company or an Affiliate: 
  

	 	a.	The Company shall commence issuing shares in satisfaction of DSU credits deferred and any related accumulated income on the first to occur of: 

 (        ) January 1st of the calendar year immediately following the year in which the Participant
ceases service with the Company. 
 (        ) January 1st of the year that is
             years after the Participant ceases service with the Company. 
 Notwithstanding the foregoing, the Participant hereby elects to collect          % of his or her account balance as soon as practicable after a Change in Control (as defined in the Plan),
subject to any applicable provisions of the Plan and the Participant’s Deferral Agreement. 
  

	 	b.	The Participant hereby elects to have the Company distribute the DSUs and any related accumulated earnings as follows: 

  

 - 1 - 









 Distribution Election Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 (        ) in substantially equal installments over a
period of              years (must be less than 10 years). 
 (        ) in a lump sum. 
  

	 	c.	All distributions made pursuant to the Plan and this Agreement will be made in whole shares of the Company’s common stock, with cash paid in lieu of fractional shares.


  

	 	d.	Notwithstanding the foregoing, all distributions made to Directors shall be made pursuant to Section 9 of the Plan and shall be settled in cash only (or, subject to Applicable
Laws, in newly issued Shares or Shares obtained through open market purchase). 

 3. The Participant hereby designates See Attachment 1 to be
his or her beneficiary or beneficiaries and to receive the balance of any unpaid deferred compensation and related earnings. 
 4. The Company agrees to
issue shares in satisfaction of DSU credits in accordance with the terms of the Plan and the elections by the Participant made herein and subject to the specific terms for deferrals by Directors as set forth in Section 9 of the Plan.

 5. The terms of Sections 7 through 14 of the Deferral Agreement are incorporated herein by reference, and shall apply to this Distribution Agreement based
on the understanding that references in such Sections to the Deferral Agreement shall refer to this Distribution Agreement for purposes hereof. 
 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands the day and year first above-written. 
  

			
	PARTICIPANT
	
	  

	
	Printed
Name:                                       
                                    
	
	MASIMO CORPORATION
		
	By:	 	  

		
	Name:	 	  

		
	Its:	 	  



  

 - 2 - 








 ATTACHMENT 1 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 DESIGNATION OF BENEFICIARY

  

 In connection
with Award Agreements between Masimo Corporation (the “Company”) and                     , an individual residing at
                     (the “Recipient”), the Recipient hereby designates the person specified below as the beneficiary
of the Recipient’s interest in Awards as defined in the Company’s 2007 Stock Incentive Plan (the “Plan”). This designation shall remain in effect until revoked in writing by the Recipient. 
  

			
	Name of Beneficiary:	  	  

	Address:	  	  

		  	  

		  	  

	Social Security No.:	  	  


 This beneficiary designation relates to any and all of Recipient’s rights under the following
Award or Awards: 
  ̈ any Award that
Recipient has received under the Plan. 
  ̈ the                              Award that Recipient received pursuant to an award
agreement dated                              ,
         between Recipient and the Company. 
 The Recipient understands that this designation
operates to entitle the above-named beneficiary to the rights conferred by an Award from the date this form is delivered to the Company until such date as this designation is revoked in writing by the Recipient, including by delivery to the Company
of a written designation of beneficiary executed by the Recipient dated as of a later date. 
  

			
	Date:	 	  

		
	By:	 	  

		 	[Recipient Name]


  

	
	Sworn to before me this
	         day of                     ,
20    
	  

	Notary Public
	County of                                    
                                        
       
	State of                                    
                                        
            








 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Performance Unit and Performance Stock Award Agreement 
  

 Award No.                 
 You (the “Participant”) are hereby awarded Performance Units and Performance Stock subject to the terms and conditions set forth
in this agreement (“Award Agreement”), and in the Masimo Corporation 2007 Stock Incentive Plan (the “Plan”), which is attached hereto as EXHIBIT A. A summary of the Plan appears
in its Prospectus, which is attached hereto as EXHIBIT B. You should review carefully these documents, and consult with your personal financial advisor, in order to fully understand the implications of this Award, including
your tax alternatives and their consequences. This Award is conditioned on your execution of the Award Agreement. 
 By executing this Award
Agreement, you agree to be bound by all of the Plan’s terms and conditions as if they had been set out verbatim in this Award Agreement. In addition, you recognize and agree that all determinations, interpretations, or other actions respecting
the Plan and this Award Agreement will be made by the Board of Directors (the “Board”) of Masimo Corporation (the “Company”) or the Committee pursuant to Section 4 of the Plan, and that such
determinations, interpretations or other actions shall (in the absence of manifest bad faith or fraud) be final, conclusive and binding upon all parties, including you and your heirs, representatives and successors-in-interest. Capitalized terms
used but not otherwise defined herein shall have the meanings set forth in the Plan. 
 1. General Terms of Your Award. 
  

			
	Name of Participant	 	  

		
	Date of Award	 	  


 2. Performance Unit. The Performance Unit portion of your Award is being granted pursuant to
Section 10 of the Plan, and shall have the terms set forth in the table below, subject, absolutely, to the terms of the Plan and to the Committee’s discretion to interpret the Plan and this Award Agreement in any manner that the Committee
may deem reasonably necessary or appropriate in order for this Award to satisfy the requirements for “performance-based compensation” within the meaning of Section 162(m)(4) of the Code, and associated tax regulations and rulings. The
Performance Unit portion of your Award provides that you may qualify to receive an amount of cash that falls within the range specified in the table below, such amount to be determined based on the extent to which, if at all, the Performance
Measures for Determining Qualification have been satisfied and in accordance with the weights assigned thereto. 
  

 1 









 Performance Unit and Performance Stock Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  


					
	Range in Amount of Cash	  	Threshold:	  	$            
		  	Target:	  	$            
		  	Maximum:	  	$            
		
	Performance Period	  	  

		
	Performance Measures	  	See Schedule         , attached hereto as EXHIBIT C.
		
	Qualification	  	  


 3. Performance Stock. The Performance Stock portion of your Award provides that you may qualify to
receive, subject to further vesting, a number of Shares (“Performance Stock”) with a value that falls within the range of values specified in the table below, such value to be determined based on the extent to which, if at
all, the Performance Measures for Determining Qualification have been satisfied and the weights assigned thereto. The Performance Stock portion of your Award is being granted pursuant to Section 10 of the Plan, and shall have the terms set
forth in the table below; subject, absolutely, to the terms of the Plan and to the Committee’s discretion to interpret the Plan and this Award Agreement in any manner that the Committee may deem reasonably necessary or appropriate in order for
this Award to satisfy the requirements for “performance-based compensation” within the meaning of Section 162(m)(4) of the Code, and associated tax regulations and rulings. 
  

					
	 Range in Value of Shares of Performance Stock
	  	Threshold:	  	$            
		  	Target:	  	$            
		  	Maximum:	  	$            
		
	Performance Period for Qualification	  	  

		
	Performance Measures	  	See Schedule         , attached hereto as EXHIBIT D.
		
	Pricing Date to Determine Number of Shares	  	  

		
	Qualification	  	  

		
	Performance Period for Further Vesting	  	  

		
	 Performance Measure for
 Determining Further
Vesting
	  	  

		
	Further Vesting	  	  


  

 2 









 Performance Unit and Performance Stock Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 4. Issuance of Shares of Performance Stock. If you qualify to receive any Shares of Performance Stock
that remain subject to further vesting, the stock certificates evidencing such Shares that will be issued as of the Pricing Date will bear the following legend that shall remain in place and effective until all other vesting restrictions lapse and
new certificates are issued pursuant to Section 6(b) below: 
 “The sale or other transfer of the Stock represented
by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer set forth in the Masimo Corporation 2007 Stock Incentive Plan, and in any rules and administrative procedures adopted
pursuant to such Plan and in a related Award Agreement. A copy of the Plan, such rules and procedures and such Award Agreement may be obtained from the Secretary of Masimo Corporation.” 
 5. Unvested Performance Stock. You will be reflected as the owner of record on the Company’s books and records of any Shares of Performance Stock
issued pursuant to this Award Agreement. The Company will hold the stock certificates for safekeeping until such Shares have become vested and non-forfeitable. You must deliver to the Company, as soon as practicable after the date any Shares of
Performance Stock are issued, a stock power, endorsed in blank, with respect to any such Shares. If you forfeit any Shares of Performance Stock, the stock power will be used to return the certificates for the forfeited Shares to the transfer agent
for cancellation. As the owner of record of any Shares of Performance Stock you qualify to receive pursuant to this Award Agreement, you will be entitled to all rights of a stockholder of the Company, including the right to vote Shares and the right
to the payment of any cash dividends and other distributions (including those paid in stock) following the date of issuance of such Shares and to the extent paid in stock, such stock shall be subject to the same restrictions contained in
Section 3 hereof, subject in each case to the treatment of the Award upon termination of service with the Company or an Affiliate (the “Company Group”) before the particular record date for determining stockholders of
record entitled to the payment of the dividend or distribution. 
 6. Qualification and Vesting. 
 (a) After the Performance Period for the Performance Unit, if you qualify to receive an amount of cash pursuant to the Performance Unit as determined and
calculated by the Committee, you shall be paid such cash amount in conformity with the Company’s bonus payment practices generally applicable to senior executives of the Company. 
 (b) If you qualify to receive any Shares of Performance Stock subject to further vesting, as the further vesting restrictions become satisfied over time
or upon satisfaction of the relevant performance measures, the Company shall cause new stock certificates for the Shares of Performance Stock so vested to be delivered to you, with such legends as the Company determines to be appropriate. New
certificates shall not be delivered to you unless you have made arrangements satisfactory to the Committee to satisfy tax-withholding obligations. 
 7.
Long-term Consideration for Award. The Participant recognizes and agrees that the Company’s key consideration in granting this Award is securing the long-term commitment of the Participant to serve as a
             [include job title or description of the Participant] who will 
  

 3 









 Performance Unit and Performance Stock Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 advance and promote the business interests and objectives of the Company Group. Accordingly, the Participant agrees
that this Award shall be subject to the terms and conditions set forth in Section 26 of the Plan (relating to the termination, rescission, and recapture if you violate certain commitments made therein to the Company Group), as well as to the
following terms and conditions as material and indivisible consideration for this Award: 
 (a) Fiduciary Duty. During his or her
service with the Company Group the Participant shall devote his or her full energies, abilities, attention and business time to the performance of his or her service responsibilities and shall not engage in any activity which conflicts or interferes
with, or in any way compromises, his or her performance of such responsibilities. 
 (b) Confidential Information. The Participant
recognizes that by virtue of his or her service with the Company Group, he or she will be granted otherwise prohibited access to confidential information and proprietary data which are not known, and not readily accessible to the Company
Group’s competitors. This information (the “Confidential Information”) includes, but is not limited to, current and prospective customers; the identity of key contacts at such customers; customers’ particularized
preferences and needs; marketing strategies and plans; financial data; personnel data; compensation data; proprietary procedures and processes; and other unique and specialized practices, programs and plans of the Company Group and their respective
customers and prospective customers. The Participant recognizes that this Confidential Information constitutes a valuable property of the Company Group, developed over a significant period of time and at substantial expense. Accordingly, the
Participant agrees that he or she shall not, at any time during or after his or her service with the Company Group, divulge such Confidential Information or make use of it for his or her own purposes or the purposes of any person or entity other
than the Company Group. 
 (c) Non-Solicitation of Customers. The Participant recognizes that by virtue of his or her service with the
Company Group he or she will be introduced to and involved in the solicitation and servicing of existing customers of the Company Group and new customers obtained by the Company Group during his or her service. The Participant understands and agrees
that all efforts expended in soliciting and servicing such customers shall be for the permanent benefit of the Company Group. The Participant further agrees that during his or her service with the Company Group the Participant will not engage in any
conduct which could in any way jeopardize or disturb any of the Company Group’s customer relationships. The Participant also recognizes the Company Group’s legitimate interest in protecting, for a reasonable period of time after his or her
service with the Company Group, the Company Group’s customers. Accordingly, the Participant agrees that, for a period beginning on the date hereof and ending five (5) years after termination of Participant’s service with the Company
Group, regardless of the reason for such termination, the Participant shall not, directly or indirectly, without the prior written consent of the Chief Executive Officer or Chairman of the Company, solicit any actual or potential customer or
supplier of the Company Group for any business that competes, directly or indirectly, with the Company Group. 
 (d) Non-Solicitation of
Employees. The Participant recognizes the substantial expenditure of time and effort which the Company Group devotes to the recruitment, hiring, orientation, training and retention of its employees. Accordingly, the Participant agrees that, for
a period beginning on the date hereof and ending five (5) years after termination of Participant’s 
  

 4 









 Performance Unit and Performance Stock Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 service with the Company Group, regardless of the reason for such termination, the Participant shall not, directly or
indirectly, for himself or herself or on behalf of any other person or entity, solicit, offer employment to, hire or otherwise retain the services of any employee of the Company Group. 
 (e) Survival of Commitments; Potential Recapture of Award and Proceeds. The Participant acknowledges and agrees that the terms and
conditions of this Section regarding confidentiality and non-solicitation shall survive both (i) the termination of Participant’s service with the Company Group for any reason, and (ii) the termination of the Plan, for any reason. The
Participant acknowledges and agrees that the grant of Performance Units and Performance Stock in this Award Agreement is just and adequate consideration for the survival of the restrictions set forth herein, and that the Company Group may pursue any
or all of the following remedies if the Participant either violates the terms of this Section or succeeds for any reason in invalidating any part of it (it being understood that the invalidity of any term hereof would result in a failure of
consideration for the Award): 
  

	 	(i)	declaration that the Award is null and void and of no further force or effect; 

  

	 	(ii)	recapture of any cash paid or Shares issued to the Participant, or any designee or beneficiary of the Participant, pursuant to the Award; and 

  

	 	(iii)	recapture of the proceeds, plus reasonable interest, with respect to any Shares that are both issued pursuant to this Award and sold or otherwise disposed of by the Participant, or
any designee or beneficiary of the Participant. 

 The remedies provided above are not intended to be exclusive, and the Company Group may seek
such other remedies as are provided by law, including equitable relief. 
 (f) Acknowledgement. The Participant acknowledges and
agrees that his or her adherence to the foregoing requirements will not prevent him or her from engaging in his or her chosen occupation and earning a satisfactory livelihood following the termination of his or her service with the Company Group.

 8. Restrictions on Transfer of Award. Except as set forth in the Plan, this Award Agreement may not be sold, pledged, or otherwise
transferred without the prior written consent of the Committee. Notwithstanding the foregoing, you may transfer Performance Shares that are issued pursuant to this Award Agreement (i) by instrument to an inter vivos or testamentary trust (or
other entity) in which each beneficiary is a permissible gift recipient, as such is set forth in subsection (ii) of this Section, or (ii) by gift to charitable institutions or by gift or transfer for consideration to any of your relatives
as follows (or to an inter vivos trust, testamentary trust or other entity primarily for the benefit of any of your relatives as follows): any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, domestic partner,
sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and including adoptive relationships. Any transferee of your rights shall succeed to and be subject to all of the terms of this
Award Agreement and the Plan. 
  

 5 









 Performance Unit and Performance Stock Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 9. Designation of Beneficiary. Notwithstanding anything to the contrary contained herein or in the
Plan, following the execution of this Award Agreement, you may expressly designate a beneficiary (the “Beneficiary”) to your interest in the Performance Unit and Performance Stock awarded hereby. You shall designate the
Beneficiary by completing and executing a designation of beneficiary agreement substantially in the form attached hereto as EXHIBIT E (the “Designation of Beneficiary”) and delivering an executed and
notarized copy of the Designation of Beneficiary to the Company. 
 10. Income Taxes and Deferred Compensation. The Participant is solely
responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with this Award (including any taxes arising under Section 409A of the Code), and the Company shall not have any obligation to indemnify or
otherwise hold any Participant harmless from any or all of such taxes. The Committee shall have the discretion to unilaterally modify this Award in a manner that (i) conforms with the requirements of Section 409A of the Code with respect
to compensation that is deferred and that vests after December 31, 2004, (ii) that voids any election of the Participant to the extent it would violate Section 409A of the Code, and (iii) for any distribution election that would
violate Section 409A of the Code, to make distributions pursuant to the Award at the earliest to occur of a distribution event that is allowable under Section 409A of the Code or any distribution event that is both allowable under
Section 409A of the Code and is elected by the Participant, subject to any valid second election to defer, provided that the Committee permits second elections to defer in accordance with Section 409A(a)(4)(C). The Committee shall have the
sole discretion to interpret the requirements of the Code, including Section 409A, for purposes of the Plan and this Award Agreement. 
 11.
Notices. Any notice or communication required or permitted by any provision of this Award Agreement to be given to you shall be in writing and shall be delivered personally or sent by certified mail, return receipt requested, addressed
to you at the last address that the Company had for you on its records. Each party may, from time to time, by notice to the other party hereto, specify a new address for delivery of notices relating to this Award Agreement. Any such notice shall be
deemed to be given as of the date such notice is personally delivered or properly mailed. 
 12. Binding Effect. Except as otherwise provided
in this Award Agreement or in the Plan, every covenant, term, and provision of this Award Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors,
transferees, and assigns. 
 13. Modifications. This Award Agreement may be modified or amended at any time, in accordance with Section 15
of the Plan, provided that you must consent in writing to any modification that adversely alters or impairs any of your rights or obligations under this Award Agreement, unless there is an express Plan provision that permits the Committee to
unilaterally make the modification. 
 14. Headings. Section and other headings contained in this Award Agreement are for reference purposes
only and are not intended to describe, interpret, define or limit the scope or intent of this Award Agreement or any provision hereof. 
  

 6 









 Performance Unit and Performance Stock Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 15. Severability. Every provision of this Award Agreement and of the Plan is intended to be severable.
If any term hereof is illegal or invalid for any reason, such illegality or invalidity shall not affect the validity or legality of the remaining terms of this Award Agreement. 
 16. Counterparts. This Award Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall
together constitute one and the same instrument. 
 17. Plan Governs. By signing this Award Agreement, you acknowledge that you have received a
copy of the Plan and that your Award Agreement is subject to all the provisions contained in the Plan, the provisions of which are made a part of this Award Agreement, and that your Award is subject to all interpretations, amendments, rules and
regulations which from time to time may be promulgated and adopted pursuant to the Plan. In the event of a conflict between the provisions of this Award Agreement and those of the Plan, the provisions of the Plan shall control. 
 18. Governing Law. The laws of the State of Delaware (without regard to conflicts of law principles) shall govern the validity of this Award Agreement, the
construction of its terms, and the interpretation of the rights and duties of the parties hereto. 
 19. Not a Contract of Employment. By
executing this Award Agreement you acknowledge and agree that (i) any person whose service is terminated before full vesting of an award, such as the one granted to you by this Award, could claim that he or she was terminated to preclude
vesting; (ii) you promise never to make such a claim; (iii) nothing in this Award Agreement or the Plan confers on you any right to continue an employment, service or consulting relationship with the Company Group, nor shall it affect in
any way your right or the Company Group’s right to terminate your employment, service, or consulting relationship at any time, with or without Cause; and (iv) the Company would not have granted this Award to you but for these
acknowledgements and agreements. 
 20. [Employment Agreement Provision [OPTIONAL IF EMPLOYEE HAS AN EMPLOYMENT AGREEMENT] By executing this
Award, you acknowledge and agree that your rights upon a termination of employment before full vesting of this Award will be determined under Section              of that certain
employment agreement between you and the Company, dated as of                     ,        
20    .] 
 <Signature Page Follows> 
  

 7 









 Performance Unit and Performance Stock Award Agreement 
 Masimo Corporation 
 2007 Stock Incentive Plan 
  

 BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you and the
Company agree that this Award is being made under and governed by the terms and conditions of this Award and the Plan. 
  

			
	MASIMO CORPORATION
		
	By:	 	  

	Name:	 	  

	Its:	 	  

	
	PARTICIPANT
	
	The undersigned Participant hereby accepts the terms of this Award and the Plan.
		
	By:	 	  

	
	Name of Participant:
                                        
                      


  

 8 








 EXHIBIT A 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Document 
  










 EXHIBIT B 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Plan Prospectus 

 










 EXHIBIT C 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Performance Measures to
Determine Qualification for Performance Unit 
  

 SCHEDULE              
  

									
	 Measure
	  	Threshold	  	Target	  	Maximum	  	Weight
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  
 Range of Award Amounts for
Use in Calculation 
  

					
	 Threshold Award Amount
	  	 Target Award Amount
	  	 Maximum Award Amount

		  		  	
		  		  	
		  		  	
		  		  	

 Formula for Calculation 
 Calculate and add the following for each Measure to determine the cash amount Participant qualifies to receive: 









 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Performance Measures to Determine Qualification for Performance Stock 
  

 SCHEDULE              
  

									
	 Measure
	  	Threshold	  	Target	  	Maximum	  	Weight
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

 Range of Award Values for Use in Calculation 
  

					
	 Threshold Award Value
	  	 Target Award Value
	  	 Maximum Award Amount

		  		  	

  
  
 Formula for Calculation 
 Calculate and add the following for each Measure to determine value of
Shares of Performance Stock Participant qualifies to receive: 









 EXHIBIT E 
 MASIMO CORPORATION 
 2007 STOCK INCENTIVE PLAN 
  

 Designation of Beneficiary

  

 In connection
with Award Agreements between Masimo Corporation (the “Company”) and                     , an individual residing at
                     (the “Recipient”), the Recipient hereby designates the person specified below as the beneficiary
of the Recipient’s interest in Awards as defined in the Company’s 2007 Stock Incentive Plan (the “Plan”). This designation shall remain in effect until revoked in writing by the Recipient. 
  

			
	Name of Beneficiary:	  	  

		
	Address:	  	  

		
		  	  

		
		  	  

		
	Social Security No.:	  	  


 This beneficiary designation relates to any and all of Recipient’s rights under the following
Award or Awards: 
  

	 	 ̈	any Award that Recipient has received under the Plan. 

  

	 	 ̈	the                      Award that Recipient received pursuant to an
award agreement dated                          ,          between
Recipient and the Company. 

 The Recipient understands that this designation operates to entitle the above-named beneficiary
to the rights conferred by an Award from the date this form is delivered to the Company until such date as this designation is revoked in writing by the Recipient, including by delivery to the Company of a written designation of beneficiary executed
by the Recipient dated as of a later date. 
  

			
	Date:	 	  

		
	By:	 	  

		 	[Recipient Name]


  

	
	Sworn to before me this
	        day of                     ,
20    
	  

	Notary Public


			
	County of	 	  



			
	State of