Document:

Sales and Distribution Agreement, dated 01/01/2005 with Masimo Americas, Inc.

 Exhibit 10.17 
 SALES AND DISTRIBUTION AGREEMENT 
 THIS SALES AND DISTRIBUTION AGREEMENT (this
“Agreement”) is made and entered into as of 12:01 a.m. the 1st day of January, 2005, by and between Masimo Corporation, a Delaware corporation (“Masimo”), and Masimo Americas, a Delaware corporation (“Masimo
Americas”). 
 RECITALS 
 WHEREAS, Masimo is a corporation that manufactures read-through motion and low perfusion pulse oximetry technologies and products throughout the world
(collectively, the “Product(s)”). 
 WHEREAS, Masimo is the parent of Masimo Americas and has contributed its sales,
distribution and marketing operations to Masimo Americas (the “Acquired Operations”). 
 WHEREAS, as a result of the
transfer of the Acquired Operations, Masimo desires to engage Masimo Americas to sell, distribute and promote the Products. 
 WHEREAS,
Masimo is willing to appoint Masimo Americas as a non-exclusive distributor of the Products in the territory defined herein and to sell to Masimo Americas all Products for which orders are received, and Masimo Americas is willing to accept such
appointment and to purchase the Products manufactured by Masimo subject to certain terms and conditions set forth herein. It is further acknowledged that Masimo Americas is undertaking the obligations herein subject to certain covenants and
assurances provided by Masimo, such covenants and assurances being deemed necessary by Masimo Americas in view of the risks associated with the sale and distribution of the Products and in view of the unique resources available to Masimo Americas.

 NOW, THEREFORE, for good and valuable consideration of the mutual covenants and agreements set forth herein, the receipt of which is
hereby acknowledged, the parties agree as follows: 
 ARTICLE I 
 APPOINTMENT OF MASIMO AMERICAS 
 Section 1.1 Appointment and
Acceptance. Masimo hereby appoints Masimo Americas as its non-exclusive distributor throughout North America, Central America and South America (which may be modified from time to time by written acknowledgment of the parties; said
territory, as modified, being referred to as the “Territory”) of all Products manufactured by Masimo. Masimo shall have the right to establish terms and limitations under which Masimo Americas may distribute the Products, subject to
applicable laws. Masimo Americas hereby accepts such appointment and agrees to fully perform and discharge its duties in accordance with this Agreement. Masimo Americas has the right to appoint sub-distributors and agents to sell and distribute the
Products within the Territory. 

 Section 1.2 Territory for OEM’s. The parties hereby acknowledge that Masimo
Americas shall have the right to distribute certain Products to original equipment manufacturers (“OEM(s)”) for incorporation into the OEMs’ products (“OEM Products”), and to distribute such OEM Products along with Masimo
Products for use with the OEM Products on a non-exclusive worldwide basis. 
 ARTICLE II 
 TERM, RENEWAL AND TERMINATION 
 Section 2.1 Term and Renewal. Unless sooner terminated pursuant to Section 2.3 hereof, this Agreement shall remain in full force and effect commencing on January 1, 2005. The initial term of the Agreement is for one
year and shall automatically be extended thereafter for additional, consecutive one year terms, each of which shall be on the terms and conditions set forth in this Agreement (the initial term and any renewal term shall be referred to herein as the
“Term” or “Terms”). Notwithstanding the foregoing either party may terminate this Agreement by giving written notice to the other party of its intention not to renew the Agreement beyond the then current Term thirty
(30) days prior to the expiration of such Term. In such event, this Agreement shall terminate at the end of such Term. 
 Section 2.2 Rights and Obligations upon Termination. All orders from Masimo Americas not accepted by Masimo on the date that notice of termination of this Agreement is delivered or upon the date that this Agreement
otherwise terminates shall be deemed cancelled; provided, however, that Masimo may choose, in Masimo’s sole discretion, to honor outstanding unfilled orders on the condition that, notwithstanding anything to the contrary contained in this or
any other agreement with respect to such orders, Masimo Americas immediately shall pay Masimo for such Products against delivery of such Products. Upon demand by Masimo Americas, Masimo agrees to repurchase from Masimo Americas at cost any Product,
which is held in inventory by Masimo Americas as of the effective date of termination and shall reimburse Masimo Americas for any expenses incurred in performing the services contemplated hereunder through the effective date of termination. Upon
termination of this Agreement, Masimo Americas shall cease acting or holding itself out in any manner as the distributor of the Products, including, without limitation, removing all signs and ceasing to use any advertising materials related to the
Products. 
 Section 2.3 Termination. In addition to termination as provided in Section 2.1, this Agreement may be
terminated as follows: 
 2.3.1 By either party upon notice to the other in the event at any time such other party (i) ceases to conduct
its business, or (ii) breaches any provision of this Agreement and such breach, if curable, is not cured by the breaching party within thirty (30) days of the breaching party’s receipt of notice thereof from the nonbreaching party; or

 2.3.2 By either party without notice in the event the other party becomes insolvent or makes a general assignment for the benefit of
creditors or if a petition of bankruptcy is filed by such other party or by any third party against such other party, or if such other party is adjudicated a bankrupt, or if a receiver or other custodian, either permanent or temporary, is appointed
by any court with respect to the assets or business of such party, or if a proceeding for the relief of creditors under any foreign, state or federal law is instituted by or against such party. 
  

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 2.3.3 Upon any such termination provided above, the parties shall have the rights set forth in
Section 2.2. 
 ARTICLE III 
 TRADEMARKS AND TRADE NAMES 
 Section 3.1 Masimo hereby grants to Masimo Americas the nonexclusive right and
license to use the Masimo trademarks and trade names in connection with the promotion, sale and distribution of the Products in the Territory. 
 Section 3.2 Masimo Americas acknowledges and agrees that the non-exclusive rights to Masimo’s trademarks and trade names are and shall remain valuable, proprietary information belonging to Masimo and that Masimo is
retaining non-exclusive rights to its trademarks and trade names. Masimo Americas shall not at any time do or cause to be done, or fail to do or cause to be done, any act or thing, directly or indirectly, contesting or in any way impairing
Masimo’s rights in Masimo’s trademarks and trade names. Masimo Americas additionally agrees that the Masimo trademarks and trade names may be used by Masimo Americas only in connection with the promotion, sale, and distribution of the
Products in the Territory as set forth herein. 
 Section 3.3 Masimo Americas specifically acknowledges that it does not possess,
and shall not acquire, any interest in any of Masimo’s trademarks or trade names appearing on the labels or packaging materials for the Products and that any enhancement in the value thereof resulting from the use contemplated by this Agreement
inures to Masimo. 
 ARTICLE IV 
 OBLIGATIONS OF MASIMO AMERICAS 
 During the Term of this Agreement, Masimo Americas’ obligations shall, without
limitation, include the following: 
 Section 4.1 Best Efforts to Promote and Sell the Products. Masimo Americas shall exercise
its best efforts to sell and distribute the Products and to promote the goodwill of Masimo and the market reputation of the Products. In connection with the foregoing, Masimo Americas shall provide promptly to Masimo any information it obtains with
respect to the Products, including feedback from consumers, retailers, and distributors, and activities of competitors. Masimo Americas shall conduct marketing and distribution activities of Products pursuant to the strategy set forth by Masimo.
Furthermore, Masimo Americas shall conduct its activities in a professional manner and in accordance with the terms of this Agreement. 
 Section 4.2 Staffing and Vehicles. Masimo Americas shall maintain an adequate and aggressive staff of sales and marketing personnel, which is sufficiently trained and knowledgeable to enable such staff to effectively promote
sales of Products and solicit orders for 
  

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 Products. Masimo Americas shall maintain and make available to its sales personnel such other equipment and supplies as
are necessary to Masimo Americas to fulfill its obligations under this Agreement. 
 Section 4.3 Taxes. Masimo Americas shall
be solely responsible for the collection and payment of all taxes payable in connection with its resale of the Products and the performance of its services as contemplated herein. 
 Section 4.4 Expenses. Masimo Americas assumes full responsibility for all costs and expenses that it incurs in carrying out its
obligations under this Agreement. This shall include, without limitation, payment of all salaries and benefits for persons employed to perform Masimo Americas’s responsibilities hereunder, all expenses incurred in connection with the
advertising and promotion of the Products, all expenses relating to any permits or licenses required in connection with the performance of Masimo Americas’s responsibilities, and all expenses relating to vehicles used by sales representatives
and other travel and accommodation expenses incurred by such persons. It is acknowledged and understood that Masimo Americas may utilize third parties to perform certain administrative services incident to the services performed hereunder.

 Section 4.5 Forecast of Product Requirements. Within 15 days of the effective date of this Agreement, Masimo Americas
shall provide Masimo with a forecast of its Product requirements by month for the initial twelve (12) month period. (Such a forecast for the following calendar year shall be provided prior to January 1st of each year during which this Agreement remains in effect.) Masimo Americas will provide Masimo with an update of this twelve (12) month
forecast at least once each calendar quarter. These forecasts, which may be revised by Masimo Americas from time to time, are not binding but are estimates of Masimo Americas’s projected requirements for the Products and are provided to Masimo
for its use in the planning and procurement of materials as needed in support of Masimo Americas’s requirements. 
 Section 4.6
Improvements. Masimo Americas agrees to assign and hereby does assign to Masimo all rights, title and interest it has or acquires in any inventions, adaptations, modifications or changes relating to the Products. 
 ARTICLE V 
 OBLIGATIONS OF MASIMO

 During the Term of this Agreement and subject to the terms and conditions hereof, Masimo shall have the following obligations:

 Section 5.1 Satisfaction of Orders. Masimo shall fill orders for Products submitted by Masimo Americas in
accordance with an agreed upon schedule for delivery. 
 Section 5.2 Masimo Support. Masimo shall provide, in the
Territory, such support and assistance, including promotional support, as Masimo, in its sole discretion, deems appropriate and necessary. 
  

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 Section 5.3 Compliance with Law. Masimo shall comply with all applicable laws,
statutes, rules and regulations concerning the manufacture and packaging of the Products. 
 ARTICLE VI 
 ORDERS 
 Section 6.1 Terms
and Conditions. Orders by Masimo Americas shall be subject to acceptance by Masimo at its principal place of business or such other place(s) as may be designated by Masimo. Masimo will endeavor to fill all purchase orders tendered by Masimo
Americas promptly in accordance with such time periods, as the parties shall deem appropriate. 
 Section 6.2 Inability to Fill
Orders. If Products are ordered by Masimo Americas and Masimo does not have sufficient stock to fill such order, or if for any reason Masimo cannot fill such order in the usual course of business, prompt notice thereof shall be provided to
Masimo Americas and Masimo shall be liable for any loss, cost or expense incurred by Masimo Americas as a result of the inability to fill such order promptly. 
 Section 6.3 Cancellation of Orders by Masimo Americas. Masimo Americas may cancel any order, which has not yet been accepted by Masimo and may cancel orders previously accepted by Masimo with the
prior consent of Masimo. 
 Section 6.4 Delivery of Products. Masimo shall use its best efforts to deliver Products to
Masimo Americas in response to orders from Masimo Americas in accordance with the time periods agreed upon. 
 ARTICLE VII 

TITLE TO PRODUCT AND RISK OF LOSS 
 Section 7.1 Delivery of Products. 
 7.1.1 Title to Product and risk of loss shall pass from Masimo to Masimo
Americas immediately upon availability to Masimo Americas, Ex Works facility located at 40 Parker, Irvine, California. 
 7.1.2 Masimo
assumes full responsibility for loss or damage of products while in Masimo’s possession, except for any claims arising out of Masimo Americas’ instructions. 
 Section 7.2 Returned Products. 
 7.2.1 For Products that do not satisfy the Product
warranty provisions set forth in this Agreement, Masimo’s sole liability, and Masimo Americas’ sole remedy under any warranty obligation is, at Masimo’s sole discretion, to repair or replace the Product or to refund the purchase price
paid and accept return of the Product.. 
 7.2.2 Products returned by Masimo Americas shall be shipped to such location as designated by
Masimo. 
  

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 7.2.3 Masimo is not responsible to Masimo Americas for warranty services for any products that were not
originally sold by Masimo. Upon receipt of returned goods from its customers, Masimo Americas agrees to make a good faith and reasonable effort to identify and distinguish goods that were not purchased from Masimo. Such goods are not subject to
terms and conditions of this Agreement. 
 ARTICLE VIII 
 PRODUCT PRICES, PAYMENT TERMS AND RETURNS 
 Section 8.1 Product Prices.

 8.1.1 The prices for the Products shall be set at arm’s length and calculated using the formula shown in Exhibit A. Masimo Americas is
free to establish prices for the sale of Products, as applicable, to End Users, OEMs and Distributors. 
 8.1.2 Such prices are subject to
change from time to time as the parties mutually agree. The parties agree to cooperate and act in good faith with respect to price increases, which become necessary in the event of increased manufacturing costs. Masimo may request such price
increases by providing to Masimo Americas reasonably satisfactory evidence confirming the amounts of such increased costs, and in such event Masimo Americas agrees not to withhold unreasonably its consent to reasonable increase in prices.

 Section 8.2 Product Invoicing and Payment Terms. 
 8.2.1 Masimo shall invoice Masimo Americas for all Products on a monthly basis in accordance with the terms and conditions specified herein. Masimo
Americas agrees to pay each invoice within sixty (60) days of issuance. 
 8.2.2 Interest shall accrue on amounts not paid when due at a
rate equal to 10 percent per annum until payment in full is received. 
 8.2.3 The price and payment terms contained in this Agreement shall
apply to all purchase orders between Masimo and Masimo Americas from the effective date of this Agreement forward. 
 ARTICLE IX

 MISCELLANEOUS 
 Section 9.1 Records. 
 9.1.1 Masimo and Masimo Americas shall each have the right, at their own expense, to
inspect at reasonable times the relevant accounting records to verify the accuracy of such books and records under the terms of this Agreement. 
  

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 9.1.2 Masimo agrees to comply with all statutes, regulations and ordinances of all federal, state, or
local governmental agencies with respect to any performance required under this provision. 
 Section 9.2 Product
Warranty. Masimo’s Product warranty shall be as set forth in the applicable warranty certificate that accompanies the Product. 
 Section 9.3 Indemnification. 
 9.3.1 Notice. Recognizing the objectives of this Agreement, Masimo
Americas agrees that if it knows of or becomes aware of any patents that may be infringed by the manufacture and sale of the Masimo Products, it will promptly disclose such information to Masimo. 
 9.3.2 By Masimo – Bodily Injury. Masimo will defend, indemnify and hold Masimo Americas harmless against any and all liability, loss,
damages, costs or expenses which Masimo Americas may hereafter incur, as a result of any injury, illness or death of any person which is caused by any Masimo Product, to the extent that such injury, illness or death resulted from
(i) Masimo’s design or manufacture of the standard Masimo Products or (ii) failure of the Masimo Products at the time of shipment to Masimo Americas to materially comply with published specifications. Masimo shall have no liability or
responsibility of any kind to Masimo Americas under this Section unless Masimo Americas (a) promptly notifies Masimo of such claims, (b) gives Masimo an adequate opportunity to defend, including complete control of such defense, and
(c) provides reasonable assistance to Masimo, at Masimo’s expense, in connection with the defense and settlement of any such claim. Masimo shall have no liability for settlements made without Masimo’s express written consent. Should
Masimo Americas desire to have its own counsel participate in any such action, the cost of such counsel shall be exclusively Masimo Americas’s. 
 9.3.3 By Masimo – Infringement. .Masimo will defend, indemnify and hold Masimo Americas harmless against infringement or alleged infringement directly resulting from standard Masimo Products
furnished under this Agreement, of any patent, copyright, trademark, trade secret, or any other proprietary right of any third party. Masimo shall have no liability or responsibility of any kind to Masimo Americas under this Section unless Masimo
Americas (a) promptly notifies Masimo of such claim, (b) gives Masimo an adequate opportunity to defend, including complete control of such defense, and (c) provides reasonable assistance to Masimo, at Masimo’s expense, in
connection with the defense and settlement of any such claim including, but not limited to, where practical, modifying the Masimo Products to make them non-infringing or, where practical, obtaining licenses under such intellectual property rights.
Masimo shall have no liability for settlements made without its express written consent. Should Masimo Americas desire to have its own counsel participate in any such action, the cost of such counsel shall be exclusively Masimo Americas’s.
Masimo may, at its sole discretion, modify the particular Masimo Product to make it non-infringing, obtain a license to allow the continued use of the Masimo Product, or discontinue shipment of the Masimo Product to Masimo Americas. 
 9.3.4 By Masimo Americas. Masimo Americas will defend, indemnify and hold Masimo harmless against any and all liability, loss, damages,
costs or expenses which Masimo 
  

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 may hereafter incur, as a result of any injury, illness or death of any person which is caused by any Masimo Product, or
as a result of infringement or claims of infringement related to the Masimo Products of any patent, copyright, trademark, trade secret, or any other proprietary right of any third party, to the extent that such injury, illness or death or
infringement results from (i) any combination of the Masimo Product with items not furnished by Masimo (except where such combination is approved by Masimo (e.g. use of Masimo circuit boards in OEM product), (ii) any inadequacy of the
labeling or use-manuals for such Masimo Product (unless such inadequacy consists of inaccurate information supplied by Masimo), or (iii) any modifications to the Masimo Products made by Masimo Americas, by others, or by Masimo at Masimo
Americas’s request. Masimo Americas shall have no liability or responsibility of any kind to Masimo under this Section unless Masimo (a) promptly notifies Masimo Americas of such claims, (b) gives Masimo Americas an adequate
opportunity to defend, including complete control of such defense and (c) provides reasonable assistance to Masimo Americas, at Masimo Americas’s expense, in connection with the defense and settlement of such claim. Masimo Americas shall
have no liability for settlements made without its express written consent. Should Masimo desire to have its own counsel participate in any such action, the cost of such counsel shall be exclusively Masimo’s. 
 9.3.5 Indemnity Exclusions. Notwithstanding the above, Masimo shall not be liable for any infringement of intellectual property rights of
third parties or for any liability, loss, damages, costs or expenses which Masimo Americas may incur as a result of any injury, illness or death resulting from (a) modifications to the Masimo Products made by Masimo Americas, by others, or by
Masimo at Masimo Americas’s request, (b) electrical/electronics, software/firmware, sensors, or product interface not furnished by Masimo, (c) combination of the Masimo Products with other apparatus not furnished by Masimo,
(d) use of products or components not supplied by Masimo, (e) use of Masimo Products in a manner not permitted by this Agreement, or (f) for any claims not related directly to the Masimo Products, (g) any alterations or
modifications to the Masimo Products which are requested by Masimo Americas. 
 9.3.6 Patent Defense. Masimo Americas agrees
that it shall notify Masimo of any claim by a third party that such third party believes any Masimo patents are invalid. Masimo Americas agrees to promptly notify Masimo of any such claim whether or not such claim is asserted in court by such third
party. 
 Section 9.4 Insurance. 
 9.4.1 Masimo Americas shall maintain Comprehensive General Liability insurance to cover the activities to be performed by it as contemplated by this Agreement, including, but not limited to, contractual liability and
liability specifically assumed under this agreement. Such insurance shall be written to cover claims incurred, discovered, manifested or made during or after the expiration of this Agreement. Masimo Americas shall comply with applicable statutory
workers’ compensation and employers’ liability requirements covering all employees who perform work under this Agreement. It is understood and agreed that such insurance shall not cover product liability claims made against Masimo by third
parties. 
 9.4.2 The parties to this Agreement shall cooperate with each other to provide supporting documentation as may be required to
prove any claim. 
  

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 Section 9.5 Confidentiality. Masimo Americas and Masimo each agree to retain in
confidence all information, knowledge, technology and trade secrets related to the manufacturing, processing, testing and distribution of the Products disclosed to it by or on behalf of the other party or discovered by such party in the course of
performing services pursuant to the terms hereof and that it will not, without the written consent of the disclosing party, use information supplied or disclosed hereunder for any purpose other than that indicated herein. In view of the proprietary
and valuable nature of this information and the injury, which would arise in the event of a disclosure of such information, the parties agree that this shall be a continuing obligation that shall survive the termination of this Agreement. This
restriction shall not apply to information: 
 (i) that is or becomes public knowledge (through no fault of the receiving party), or

 (ii) that is made lawfully available to the receiving party by an independent third party, or 
 (iii) that is required by law, regulation, rule, act, or order of any governmental authority or agency to be disclosed by the receiving party; provided,
however, that such receiving party gives the other party hereto sufficient advance written notice to permit it to seek a protective order or other similar order with respect to such information and thereafter discloses only the minimum information
required to be disclosed in order to comply. 
 Section 9.6 Notices. Any and all notices permitted or required to be given
hereunder shall be sent by (i) registered or certified mail, postage and fees paid, with return receipt requested, addressed as below, (ii) hand delivery, or (iii) by facsimile, receipt confirmed. Notice shall be deemed given as of
the date of mailing, of receipt of hand delivery, or of receipt of any facsimile transmission. 
 Section 9.7 Entire Agreement;
Amendment. This Agreement together with exhibits hereto (and as such exhibits may be amended from time to time in accordance with this Agreement) constitute the entire Agreement between Masimo and Masimo Americas with respect to the subject
matter hereof and no prior or collateral promises or conditions in connection with or with respect to the subject matter hereof not incorporated herein shall be binding upon the parties hereto. This Agreement is subject to such modifications,
extensions, or waivers as the parties may agree. 
 Section 9.8 Controlling Law; Consent to Jurisdiction. This Agreement
shall be construed and enforced in accordance with the laws of the State of California without giving effect to any provisions thereof relating to conflict of laws. 
 Section 9.9 Waiver. The failure of any of the parties hereto to enforce any provision of this Agreement cannot be construed to be a waiver of such provision or of the right thereafter to enforce the
same, and no waiver of any breach shall be construed as an agreement to waive any subsequent breach of the same or any other provision. 
 Section 9.10 Binding Agreement; Severability. This Agreement shall be binding upon and inure to the benefit of each party hereto and their respective permitted successors and assigns. If any provision of this Agreement is
determined to be invalid or unenforceable in whole or in part, the remaining provisions shall be enforceable to the greatest extent possible. 
  

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 Section 9.11 Successors and Assigns. Neither party shall assign this Agreement in
whole or in part without the prior written consent of the other. Once assigned, all of the provisions of this Agreement and all rights and obligations of the parties hereunder shall be binding upon and inure to the benefit of and be enforceable by
the successors and permitted assigns of Masimo Americas and Masimo. 
 Section 9.12 Legal Relationship. Masimo Americas
agrees that, regarding all matters relating to this Agreement, Masimo Americas shall be an independent contractor and not an agent or employee of Masimo and shall not hold itself out as a legal representative, agent, joint venturer, or partner of
Masimo for any purpose whatsoever. Masimo Americas has no right or authority to assume or create any obligations of any kind or to make any representations or warranties, whether express or implied, on behalf of Masimo or to bind Masimo in any
respect whatsoever (and shall not hold itself out as having such authority). It is understood that Masimo Americas’ sales representatives are employees of Masimo Americas, and not Masimo, and that Masimo has no responsibility or obligation with
respect to said persons. 
 Section 9.13 Force Majeure. 
 9.13.1 Neither party shall be responsible for any failure to comply with the terms of this Agreement where such failure is due to force majeure,
which shall include, without limitation, fire, flood, explosion, strike, labor disputes, labor shortages, picketing, lockout, transportation embargo or failures or delays in transportation, strikes or labor disputes affecting supplies, or acts of
God, civil riot or insurrection, acts of the Federal Government or any agency thereof, or judicial action. Specifically excluded from this definition are those acts of the Federal Government or any agency thereof or judicial action which could have
been avoided by compliance with such laws or regulations as are publicly available and reasonably expected to be known by either party. 
 9.13.2 Upon the cessation of any cause operating to excuse performance of either party under this Section 9.12, this Agreement shall continue in full force and effect unless or until otherwise terminated pursuant to this Agreement. If
one or more of said causes is asserted by either party as a basis of that party’s nonperformance, the other party shall have the right to terminate this Agreement forthwith by giving written notice to that effect prior to the resumption of
performance. 
 Section 9.14 Headings. The section and paragraph headings used in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
 Section 9.15
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and when taken together shall constitute one and the same instrument. 
 [signature page follows] 
  

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 IN WITNESS WHEREOF, the parties have executed this Sales and Distribution Agreement as of the date first
above written. 
  

									
	“Masimo”	 		 	“Masimo Americas”
			
	MASIMO CORPORATION	 		 	MASIMO AMERICAS, INC.
					
	By:	 	 /s/ Brad Langdale
	 		 	By:	 	 /s/ Joe Kiani

	Name:	 	BRAD LANGDALE	 		 	Name:	 	JOE KIANI
	Title	 	EVP & CFO	 		 	Title	 	CEO

  

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 Exhibit A 
 PRODUCT PRICES 
 Masimo Americas Net Sales: A 
 Masimo Americas Intercompany Cost of Goods Sold: B 
 Masimo Americas Operating Expenses (Budget): C 
 (A-B-C)/A = X, 
 Where X shall be a value within the arm’s length
interquartile range of operating margins as determined annually in the transfer pricing study. 
 The transfer price B is therefore equivalent to:

 B=A(1-X)-COccupancy Agreement, dated 01/01/2005, with Masimo Americas, Inc.

 Exhibit 10.18 
 OCCUPANCY AGREEMENT 
 This OCCUPANCY AGREEMENT is made as of 12:01 a.m. the 1st day of January
2005, (the “Effective Date”) by and between MASIMO CORPORATION, a Delaware corporation, a having an office at 40 Parker Drive, Irvine, California (hereinafter called “Licensor”), and MASIMO AMERICAS, INC., a
Delaware corporation, having an office at 40 Parker Drive, Irvine, California (hereinafter called “Licensee”). 
 W I T N
E S S E T H : 
 A. Licensor is the subtenant of a building of approximately 70,205 rentable square feet located at 40 Parker Drive,
Irvine, California (“Premises”) pursuant to the terms and conditions of that certain Sublease Between Multilayer Technology, Inc., Sublandlord, and Masimo Corporation, Subtenant, dated January 31, 2004
(“Sublease”). 
 B. Multilayer Technology, Inc., a California corporation (“Sublandlord”), leases the
Premises from The Northwestern Mutual Life Insurance Company, a Wisconsin corporation (“Prime Landlord”), pursuant to certain “American Industrial Real Estate Association Standard Industrial/Commercial Single Tenant
Lease-Net” dated as of July 20, 1999 (“Prime Lease”). 
 C. Licensor desires to grant Licensee the right to occupy
a portion of the Premises pursuant to the terms and conditions of this License. 
 NOW, THEREFORE, in consideration of the mutual covenants
contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Licensor and Licensee, the parties, intending to be legally bound, agree as follows: 
 1. License. Licensor grants the Licensee the right to use and occupy the portion of the Premises depicted on Exhibit “A” attached
hereto (the “Licensed Premises”) for general office, warehouse and distribution purposes, subject to the limitations on use and the other covenants set forth in the Prime Lease and the Sublease. From time to time, but no more
frequently than once per month, Licensor may elect to increase or decrease the size of the Licensed Premises, in which case the License Fee and Licensee’s Share of Sublease Expenses shall be adjusted as provided in Sections 2 and 3 below. In
addition to the Licensed Premises, Licensee shall have the nonexclusive right to use the main entrance to the Premises and common means of ingress and egress designated by Licensor, subject to those rules and regulations as may be adopted by
Licensor from time to time. Licensee has inspected the Licensed Premises and accepts the Licensed Premises in its “AS IS, WHERE IS” condition, with all faults, without representation or warranty of any kind, express or implied, and
acknowledges and agrees that Licensor has no obligation to construct, build-out or further improved any port of the Licensed Premises or the Premises (including all common areas therein). 
 2. License Fee. As consideration for Licensee’s right to use and occupy the Licensed Premises, Licensee shall pay a monthly fee to Licensor
(“License Fee”), due and 
  

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 payable in advance on the first (1st) day of each month during the Term, without offset, abatement or deduction, in
an amount equal to the Licensee’s Share (defined below) multiplied by the Sublease Fixed Rent (as defined in the Sublease) owed by Licensor to Sublessor for such month. In the event that the Sublease is terminated and the Prime Landlord (or its
assignee) recognizes or attorns to Sublessee upon the terms and conditions of the Prime Lease, then the License Fee shall be adjusted to an amount equal to the Licensee’s Share multiplied by the monthly base or minimum rent due and payable to
the Prime Landlord (or its assignee). If the commencement date of this License is other than the first day of a calendar month, or if the termination date of this License is other than the last day of a calendar month, the License Fee shall be
prorated on a daily basis, based on the number of days in the applicable calendar month. As used in this License, “Licensee’s Share” shall mean a fraction, the numerator of which is the number of rentable square feet of the
Licensed Premises as reasonable determined by Licensor, and the denominator of which is 70,205 (the size of the Premises). 
 3.
Licensee’s Share of Expenses. In addition to the License Fee, Licensee shall pay to Licensor concurrently with the License Fee, without offset, abatement or deduction, Licensee’s Share of the Sublease Additional Rent (as defined in
the Sublease) owed by Licensor to Sublandlord. Further, to the extent not already included in the services compensated by the Sublease Additional Rent, within ten (10) days after Licensor’s delivery of an invoice therefor, Licensee shall
pay to Licensor, without offset, abatement or deduction, Licensee’s Share of all utilities (e.g., electricity, water, sewer, natural gas, trash and refuse pickup, etc.) consumed at the Premises. In addition, within ten (10) days after
Licensor’s written demand therefor, Licensee shall pay to Licensor, without offset, abatement or deduction, Licensee’s Share of all (i) janitorial expenses for janitorial services provided to the Premises and the Licensed Premises, and
(ii) all insurance expenses for insurance required to be carried by Licensor under the Sublease and the applicable provisions of the Prime Lease. 
 4. Term. This License and Licensee’s right to use and occupy the Licensed Premises shall commence on January 1, 2005, and shall automatically terminate upon the termination of the Sublease, unless
earlier terminated by Licensor as provided below. Licensee acknowledges and agrees that Licensor shall have no liability to Licensee in the event that the Sublease is terminated prior to its scheduled expiration date. Said period shall be referred
to herein as the “Term.” Upon the expiration or earlier termination of the Term, Licensee shall surrender the Licensed Premises to the Licensor in the condition required under the Prime Lease and the Sublease. 
 5. Compliance With Sublease and Prime Lease. Except for the insurance coverage required under the Sublease and the Prime Lease, which coverage
shall be obtained by Licensor subject to reimbursement as provided in Section 3 above, for the benefit of Sublandlord and the Prime Landlord, Licensee hereby assumes the covenants of the Sublease and the Prime Lease applicable to the Licensed
Premises and agrees to perform such covenants. Licensee shall not use the Licensed Premises, or any other portion of the Premises, for any purpose that would conflict with or otherwise would constitute a breach or default of the Sublease or the
Prime Lease. In addition, to the extent that any consents or approvals of Sublandlord or the Prime Landlord are required as a condition or prerequisite to Licensee’s undertaking of any activity permitted under this License, Licensee shall first
obtain the consent of Licensor before obtaining the consent of Sublandlord or the Prime Landlord, as may be applicable. Licensor may consent 
  

 Page 2 of 6 

 to the amendment or modification of the Sublease or the Prime Lease without the prior written consent of Licensee, and
Licensee shall comply with the modified provisions of the Sublease and the Prime Lease as the same are applicable to the Licensed Premises. 
 6. Personal; Non-transferable. This License is personal to Licensee and not may be transferred or sold by Licensee, nor may Licensee permit any person or party to occupy the Licensed Premises, without the prior written consent of
Licensor, which may be withheld in Licensor’s sole and absolute discretion. 
 7. Default. Each of the following shall constitute
an “Event of Default”: (a) Licensee has failed to pay any sum when due hereunder and within three (3) days after receipt of written notice of such failure to pay; (b) Licensee has failed to observe its non-monetary
covenants hereunder (except for the covenants in Section 6); (c) Licensee has assigned or transferred its interest in the Premises in violation of Section 6; and (d) Licensee files a petition for bankruptcy, or fails to cause the
dismissal of an involuntary petition for bankruptcy within sixty (60) days after the filing thereof, or otherwise admits its insolvency or ability to pay its debts as they come due. Upon the occurrence of an Event of Default, Licensor may
exercise any and all remedies available at law or in equity, including without limitation, to terminate this License and Licensee’s right to use and occupy the Premises. No election of remedies by Licensor shall be deemed exclusive but shall,
wherever possible, be cumulative with all other remedies in law or in equity. Licensee acknowledges and agrees that the notice and cure rights afforded to Licensee or in lieu of, and not in addition to, any notice and cure right which may be
afforded to Licensee by statute or case law, and all such statutory and case law notice and cure rights are hereby waived and disclaimed by Licensee. 
 8. Maintenance. During the Term, Licensee shall maintain and repair the Licensed Premises in good condition and repair, reasonable wear and tear excepted. Licensee shall not have any obligation to maintain or
repair the common areas of the Premises used by Licensee for ingress and egress. 
 9. Alterations. Except with the prior written
consent of Licensor, which consent may be withheld in Licensor’s sole and absolute discretion, Licensee shall not install fixtures or otherwise modify building systems, walls, floor coverings, ceilings or the building structure. Licensee shall
have no building or interior signage rights. 
 10. Parking. During the Term, at no additional charge, Licensee shall have the right
to use Licensee’s Share of the all parking spaces. Notwithstanding the foregoing, Licensee shall not have the right to use any of the reserved parking spaces on or about the Premises unless Licensor allocated reserved parking spaces to
Licensee, which allocation may be made in Licensor’s sole and absolute discretion. 
 11. Environmental. Licensee shall not
maintain any hazardous substances or materials on or about the Licensed Premises, except for office and janitorial supplies in reasonable quantities used and stored in compliance with applicable laws. Licensee shall comply with all covenants in the
Sublease and the Prime Lease pertaining to hazardous substances, materials and all laws related thereto with respect to Licensee’s activities in the Licensed Premises. 
  

 Page 3 of 6 

 12. Indemnity. Licensee shall indemnify, protect, defend and hold Licensor harmless from any and
all actions, claims, costs, expenses and losses arising from or related to (a) Licensee’s actual or alleged breach of the provisions of this License; (b) Licensee’s actual or alleged breach of the provisions of the Sublease or the
Prime Lease; and (c) Licensee’s failure to timely surrender the Premises upon the expiration or earlier termination of the Term in accordance with Section 4 above. The obligations of Licensee under this Section 12 shall survive
the expiration or earlier termination of this License. 
 13. Miscellaneous. 
 13.1 Brokers. Licensor and Licensee each represent and warrant to the other that it has not engaged any broker or finder in connection with the
procural or negotiation of this License. 
 13.2 Notices. All notices or communications required or permitted under this License shall
be in writing, and shall be delivered to the Premises by personal delivery to the Chief Financial Officer of Licensor or Licensee, as may be applicable. Notices shall be deemed delivered upon actual receipt of refusal of delivery. 
 13.3 Modification. This License may not be changed orally, but only by an agreement in writing signed by the party against whom enforcement of any
waiver, change, modification or discharge is sought. 
 13.4 Contingencies. The effectiveness of this License is subject to all
consents of the Sublandlord and the Prime Landlord required under the Sublease and the Prime Lease, as may be applicable. 
 13.5 Entire
Agreement. This License constitutes the entire agreement between the parties with respect to Licensee’s use of the Licensed Premises and all representations and understandings have been merged herein. Subject to the express restrictions on
transfer herein, this License shall inure to the benefit of all of the parties hereto, their successors and (subject to the provisions hereof) their assigns. 
 13.6 Attorneys’ Fees. In the event of any dispute, arbitration or other proceeding between the parties regarding the construction or enforcement of this License, the prevailing party shall be entitled to
collect from the nonprevailing party its attorneys’ fees and legal expenses incurred in connection with such dispute, arbitration or other proceeding. 
 13.7 Governing Law. This License shall be governed by and construed in accordance with the laws of the State of Delaware. 
 13.8 Counterparts. This License may be executed in multiple counterparts, all of which when taken together shall constitute one and the same instrument. 
 [Signature Page Follows] 
  

 Page 4 of 6 

 IN WITNESS WHEREOF, the parties have hereunto set their hands and seals as of the day and year first
above written. 
  

					
	LICENSOR:	 	 MASIMO CORPORATION,
 a Delaware
corporation

			
		 	By:	 	 /s/ Brad Langdale

		 	Name:	 	BRAD LANGDALE
		 	Title:	 	EVP & CFO
		
	LICENSEE:	 	 MASIMO AMERICAS, INC.,
 a Delaware
corporation

			
		 	By:	 	 /s/ Joe Kiani

		 	Name:	 	JOE KIANI
		 	Title:	 	CEO

  

 Page 5 of 6 

 EXHIBIT A 
 DEPICTION OF INITIAL LICENSED PREMISES 
 (To Be Attached) 

 EXHIBIT A 
 [Photo of headquarters appears here] 
  

			
	 Our New Address:
 40 Parker
 Irvine, California 92618
 Phone: 949.297.7000

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