Document:

Shelter Labor Services Agreement, dated 12/27/2000

 Exhibit 10.11 
 *** Text Omitted and Filed Separately 
 Confidential Treatment Requested 
 Under 17 C.F.R. §§ 200.80(b)(4) 
 and 230.406 
 SHELTER LABOR SERVICES AGREEMENT 
 This Agreement is made and entered into this 27th day of December, 2000, by and between Industrial Vallera de Mexicali, S.A. de C.V., a Mexican Corporation (IVEMSA) and MASIMO CORPORATION (MASIMO) a Delaware
Corporation, which will be in force once at least five employees had been hired, and which is executed in accordance with the following: 
 Recitals 
  

	First.	That Industrial Vallera de Mexicali, S.A. de C.V. is a mercantile corporation duly incorporated under Mexican laws, and that its business purpose is to offer administrative,
accounting, customs and traffic, and human resources services to foreign companies that want to have a maquiladora process in this city of Mexicali, B.C 

  

	Second.	That Mr. Sergio Tagliapietra N., has enough faculties to act and enter this shelter agreement on behalf of IVEMSA. 

  

	Third.	MASIMO states that it is an American Corporation duly incorporated under the laws of the State of Delaware, in the United States of America, and that Mr. Gary L. Waite is
empowered to act as legal representative of such corporation. 

  

	Fourth.	MASIMO declares that it desires to contract the services offered by IVEMSA, according to the following 

 CLAUSES 
  

	I.	SCOPE OF AGREEMENT. Pursuant to this Agreement, IVEMSA agrees to render the administrative services for the Maquila operation to MASIMO or to those third parties that MASIMO
may indicate, under the terms of this agreement. Therefore, MASIMO will operate under the IVEMSA quality system until notified to operate under MASIMO quality system, according to this agreement. IVEMSA will be responsible for the following
functions: general management and administration of Maquiladora operations including personnel recruiting, employee relations, import/export. supervision and documentation, general accounting and all payroll services. In addition, IVEMSA will serve
as project manager in planning and executing the transfer of the new company into Mexico, including the coordination of building improvements as required by MASIMO for the manufacturing site that has been previously selected and approved, according
to the layout and building improvements list herein attached as exhibit “A.” 

 MASIMO will be responsible not only
for any and all payment herein established, but also for the direct supervision of personnel within the facility, supervision and guard of raw material, equipment and operational control. 
  

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	II.	LABOR PROVISIONS. IVEMSA shall make its best effort to supply MASIMO with all personnel needed, to be hired under the following provisions: 

  

	 	a.	Upon each written request by MASIMO, IVEMSA shall employ and make available to MASIMO the requested number of personnel, who meet the basic qualifications. 

 

	 	b.	Basic qualifications as established in every job description, for assembly line personnel will be supplied to IVEMSA at the time of this Agreement. 

  

	 	c.	IVEMSA will screen and hire all prospective employees for assembly operations, according to the number or employees determined by MASIMO. In relation to Administrative and Director
Positions MASIMO will decide not only the number of employees, but also the background they shall meet, and MASIMO will have the final hiring decision. 

  

	 	d.	Any salaried or Management personnel requested by MASIMO and supplied by IVEMSA will be at a mutually agreed daily salary rate. Such personnel will be billed for on a weekly basis.

  

	 	e.	The agreed daily salary rates shall include all fringe costs such as taxes, insurance, and other normal employee costs for this type of personnel. 

  

	 	f.	As used in this contract, the term “fringe” shall mean those benefits required under Mexican law or benefits required to maintain a stable work force, as determined
by MASIMO. (Exhibit “C” articles from the Mexican Federal Labor Law GLW 27 Dec 00) 

  

	 	g.	IVEMSA shall prepare. each individual labor proposal for indirect labor in order to prepare the corresponding agreement for each employee. The Labor Proposal shall be previously
approved by MASIMO, even though IVEMSA appears as and is the employer, and which shall contain a confidentiality clause. 

  

	 	h.	IVEMSA agrees to terminate any employee upon the written request of MASIMO, and MASIMO hereby assumes responsibility regarding severance pay as pass through expense

  

	 	i.	The labor billings and fringes will be invoiced weekly on a pass through basis based on hours paid, and shall be billed in U.S. Dollars at the exchange rate prevailing at the time
of payment, for the sale of dollars in the Mexican Banking Institution instructed by IVEMSA. 

  

	 	j.	The administrative service charge as quoted hereunder will be invoiced weekly using the listed Hourly Rate Schedule. 

  

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	III.	HOURLY RATE SCHEDULE. The administrative service charge will be invoiced weekly as follows: 

 [...***...] 
 For the
above purposes the following policies shall be observed: 
  

	1.	IVEMSA agrees to maintain, at all times, complete accounting, administrative, payroll, tax and book-keeping records pertaining to such personnel. 

  

	2.	Wages and salaries, authorized overtime, taxes, profit sharing, special bonuses, rate premiums and fringe benefits approved by MASIMO for the personnel assigned to its operation
will be billed as a “pass through”, including severance or termination payments for employees terminated by IVEMSA during such period due to instructions from MASIMO. 

  

	3.	Efficiency/productivity programs and bonuses may be implemented at MASIMO requests. The cost of such programs and bonuses will be treated as a “pass through” expense.

  

	4.	Authorized overtime hours will be billed as a pass through. 

  

	5.	For second shift operations, IVEMSA will bill MASIMO and pay employees for forty-eight (48) hours per week, while, pursuant to the labor laws of Mexico, the employees will only
work forty-five (45) hours per week. The same obligation will be observed for the third shift, even though the employees will work only 42 hours, as provided by Mexican Labor Law. 

 * Confidential Treatment Requested 
  

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	6.	The above rates are binding for the first 36 months of the term of this Agreement, as said term is set forth hereunder. Such rates will be adjusted every year in accordance with any
changes in the minimum or professional wages, as well as any inflationary change that may affect he operations of IVEMSA. No employees of IVEMSA shall be deemed employees of MASIMO under Mexican law. All personnel policies of IVEMSA, with respect to
any changes to those policies must be approved by MASIMO in advance of implementation to insure production programs and/or quality of product are not degraded. Delays due to lack of prompt authorization will not be attributable to IVEMSA.IVEMSA
shall immediately notify MASIMO of any labor disputes between IVEMSA and its workers and/or the union or coalition which represents them in the event that such disputes or disagreements may result in IVEMSA’s receiving a strike notice or in
having raw materials or equipment in IVEMSA’s possession property of MASIMO which may be subjected to liens or attachments of any nature. 

  

	7.	MASIMO responsibilities for labor claims or lawsuits and due to MASIMO direct supervision of personnel shall include the payment of obligations derived from Mexican Federal Labor
Law, Infonavit Income Tax and Federal Payroll Tax Laws. Attending Conciliatory will be IVEMSA’s responsibility. 

  

	8.	IVEMSA will be responsible for any liability arising from the failure to act as per item III above or by negligence from any of IVEMSA’s administrative personnel (including
central services: Overall General Management, Accounting, Human Resources, Customs and Traffic and Project Management personnel only). 

  

	IV.	IVEMSA RESPONSIBILITIES. The hourly rate schedule includes the following services that are provided by IVEMSA: 

  

	 	A.	OVERALL GENERAL MANAGEMENT 

  

	 	•	 	Active non - monetary participation on MASIMO’s behalf within the National Maquiladora Association. 

  

	 	•	 	Active non - monetary participation on MASIMO’s behalf within the local Maquiladora Association. 

  

	 	•	 	Active non - monetary participation on MASIMO’s behalf within the Chamber of Industry. 

  

	 	•	 	Customs interface when it is needed. 

  

	 	•	 	Maintain a close relationship with government officials, etc. 

  

	 	•	 	Supervision of the Accounting, Human Resource, Customs and Traffic and Project departments. 

  

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	 	B.	ACCOUNTING DEPARTMENT 

  

	 	•	 	Submit monthly declarations of: State & Federal Taxes (Income Tax, Value Added Tax, Assets Tax, the corresponding contributions to the National Fund for the Workers
Housing, to the Retirement Savings System, to the Mexican Institute of Social Security, etc.) 

  

	 	•	 	Submit monthly reports to the Federal and State government agencies. 

  

	 	•	 	Submit monthly adjustments to the Mexican Institute of Social Security. 

  

	 	•	 	Weekly payroll and Work Order Reports. 

  

	 	•	 	Review and authorize purchase orders. 

  

	 	•	 	Review local suppliers. 

  

	 	•	 	Pay suppliers, taxes and others. 

  

	 	•	 	Invoicing. 

  

	 	C.	CUSTOMS AND TRAFFIC DEPARTMENT 

  

	 	•	 	Analysis of customs documentation 

  

	 	•	 	Import permits, balances, reports, etc. 

  

	 	•	 	Preparation of invoices for raw material, machinery and equipment. 

  

	 	•	 	Raw materials inventory and control. Once IVEMSA receives the raw material, IVEMSA shall advice MASIMO about the quantities of kits received, within the following five working days,
in order to MASIMO be able to know if there were losses. 

  

	 	•	 	Control balances on import permits. 

  

	 	•	 	Follow up of shipments through customs. 

  

	 	•	 	Preparation of invoices for finished product, and scrap returns. 

  

	 	•	 	Coordination with U.S. and Mexican Customs Brokers. 

  

	 	•	 	Supervision of loading and unloading of goods. 

  

	 	•	 	According to your needs, we can negotiate and contract transportation for your merchandise, obtaining the best price and service. 

  

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	 	•	 	Expand the Maquiladora program when assembling new products, including machinery and raw materials permits. 

  

	 	•	 	Provide information to the accounting department for the preparation of the SECOFI/INEGI questionnaire, whenever they are needed. 

  

	 	D.	HUMAN RESOURCES 

  

	 	•	 	Recruitment, interviews and selection of personnel (candidate’s analysis, reference verification, general facts). 

  

	 	•	 	Develop files for each employee with the proper documentation, individual labor agreement, IMSS registration number, etc. 

  

	 	•	 	Induction of new personnel. 

  

	 	•	 	Seniority acknowledgement letter, rights and obligations within the Labor Board. 

  

	 	•	 	Development of policies and procedures manual (vacations, Christmas bonus, uniforms, safety equipment, work hours, breaks, etc.) 

  

	 	•	 	Direct communication with personnel and management to detect problems or concerns regarding salary, promotions with supervisor, leaders, etc.) 

  

	 	•	 	Social security: registration, interface employee/ company/ social security, modifications (salary, status, etc) 

  

	 	•	 	Weekly personnel report: turnover, absenteeism, personnel increase or decrease, promotions, personnel requirements, individual control. 

  

	 	•	 	Social and sport activities according to calendar: Rosca de Reyes, candies, barbecues, volley-ball and basquet-ball tournaments, children’s day, mother’s day, Halloween,
Christmas party. 

  

	 	•	 	Hygiene and. Safety: Integration of the Hygiene and Safety Commission, Safety or Hygiene courses from IMSS, company audits, the use of fire extinguishers, fire drills, monthly
reports to the Labor Board, enforce of the Hygiene and Safety requirements. IVEMSA is liable to have established a pest control at the facility, which should be in force at least once monthly. 

  

	 	•	 	Monthly meetings: support general management preparing the different topics to be discussed, educational talks. 

  

	 	•	 	Filing for and attaining Mexican Immigration work permits (Any fees required are MASIMO responsibility). 

  

	 	•	 	Attend any conciliatory action exercised by a worker. 

  

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	 	E.	PROJECT DEVOLPEMENT SUPERVISION 

  

	 	•	 	At the initial stage, interface between MASIMO and the IVEMSA group 

  

	 	•	 	Site selection assistance 

  

	 	•	 	Building improvements coordination 

  

	 	•	 	Coordination with the different departments (accounting, human resources and customs and traffic) to have the proper documentation and permits to begin operations.

  

	 	•	 	Assistance in filing for the Functioning License with the Baja California State Ecology Department (any fees required are MASIMO responsibility). 

  

	 	•	 	Assistance in acquiring any information required for the development of the project. 

  

	 	F.	CAPITAL EQUIPMENT. While in IVEMSA’s possession, IVEMSA will maintain an accurate control log of all of MASIMO’s capital equipment and assets which will contain,
but not be limited to: 

  

	 	1.	Description of asset 

  

	 	2.	Serial numbers 

  

	 	3.	Model numbers and manufacturer. 

  

	 	4.	Value, if available. 

 MASIMO agrees to provide IVEMSA with
a list of all assets in order to facilitate this record keeping. A Bailment Agreement reflecting title and other pertinent information will be attached to this ocuments as Exhibit “B” 
 MASIMO will have the obligation to pay for maintenance of the assets and equipment used in the services contracted hereunder. 
  

	V.	MANUFACTURING FACILITY TO BE PROVIDED BY IVEMSA. IVEMSA agrees to provide MASIMO, with a manufacturing facility under this agreement, and if the facility meets the following
criteria, such facility will be guaranteed by MASIMO as may be provided for in the Lease Agreement and hereunder. Delays in starting operation due to lack of approval or guaranty for facility by MASIMO will not be a responsibility to IVEMSA.

  

	 	A.	The plant space shall be located in Mexicali, Baja California, Mexico or any other site mutually agreed upon by IVEMSA and MASIMO. 

  

	 	B.	The building will be inspected and pre-approved by MASIMO before any final purchase or lease contracts are signed. 

  

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	 	C.	All MASIMO required improvements to the building will be made at MASIMO’s expense. All such improvements will be pre-approved in writing by MASIMO. 

  

	 	D.	IVEMSA agrees to make its best effort to expedite the start up of the plant in the most timely manner possible, further, MASIMO will exert its best efforts whenever its approval is
required. 

  

	 	E.	Rental payment will be the obligation of MASIMO or as may otherwise be agreed in this agreement, but at all times guaranteed by MASIMO. 

  

	 	F.	In the event IVEMSA does not want to be responsible for the lease agreement any more, a subrogation may take place, in which MASIMO will take the place of IVEMSA, appearing as
Lessee. This situation shall be expressly allowed in the lease agreement. 

  

	VI.	MASIMO’S RESPONSIBILITIES. 

  

	 	A.	MASIMIO will be responsible for the following: 

  

	 	1.	All components, materials, supplies, tools, fixtures, workbenches, machines and data processing equipment necessary to produce MASIMO products. 

  

	 	2.	All required office equipment, supplies and costs for on site MASIMO’s and IVEMSA personnel. 

  

	 	3.	All required “product specific” safety supplies. 

  

	 	4.	All required material handling equipment and packaging including pallets, containers and bags. 

  

	 	5.	Insurance on building, equipment, transportation and materials provided, leased or guaranteed by MASIMO. The building insurance will not be in force whenever an act of nature or God
takes place. The insurance on building refers in this paragraph shall only cover any damage arisen from the nature of the manufacturing activities and/or any material, chemical or product used. 

  

	 	6.	Capital equipment maintenance. 

  

	 	7.	Facility maintenance per the attached lease agreement. 

  

	 	8.	Execution of Lease Agreement and/or guaranties therefore. 

  

	 	B.	MASIMO will be responsible for payment of: 

  

	 	1.	Any expenses incurred due to performance, on its own risk and expense, of any improvements needed to carry on in its operation. 

  

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	 	2.	Expenses for moving equipment. 

  

	 	3.	Legal fees to incorporate the new company in Mexico, if MASIMO exercises its option to operate independently of IVEMSA. 

  

	 	4.	Costs for U.S. duties on labor, materials and equipment during the term of this Agreement and extensions therefore, including final exportation due to termination of Agreement,
shall be MASIMO’s responsibility. MASIMO will be the importer or record at U.S. Customs. 

  

	 	5.	Facility and U.S. warehouse rent. 

  

	 	6.	Expenses for electrical hookup and usage. 

  

	 	7.	Expenses for telephone hookup and usage. 

  

	 	8.	Expenses for water hookup and usage. 

  

	 	9.	Purified drinking water, janitorial supplies, toilet supplies. 

  

	 	10.	Hazardous waste disposal. 

  

	 	11.	Miscellaneous: Trash collection, medical services (as established by the Mexican Labor Law and the Social Security Law), security services. 

  

	 	12.	Any and all sums that are applicable under the terms of clause II, concerning labor liabilities. 

  

	 	13.	U.S. and Mexican Custom’s Brokers Fees. 

  

	 	14.	U.S. and Mexican duties, taxes and bonds. 

  

	 	15.	Freight to and from Mexicali, Baja California. 

  

	 	16.	Government licenses. 

  

	VII.	PASS THROUGH COSTS. Pass Through Costs are any and all costs and expenses related to operation activities, labor payments and raw material, equipment and machinery guarding. All
pass through expenses stipulated hereunder, that are paid by IVEMSA in Mexican Pesos will be billed to MASIMO in U.S. Dollars, currency of the United States of America, at the exchange rate in force at the billing date for the sale of dollars , in
the Mexican Banking Institution with which IVEMSA operates regularly. 

 All pass-through expenses to be billed and paid by
MASIMO mustbe regularly scheduled and set forth in a budget approved by MASIMO. 
 It is expressly understood and so agreed by MASIMO that
upon signature of this Agreement, and prior to the initiation of services independently of the obligation set forth in the 

  

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following clause, MASIMO will deposit the amount indicated by IVEMSA which represents the initial amount to be disbursed by MASIMO for payroll. Such sum will
be adjusted once the actual invoice for services corresponding to such period is produced and sent to MASIMO in a monthly basis. 
  

	VIII.	INVOICING. Invoices for labor, indirect personnel, administrative fees and all other expenses to be paid by MASIMO shall be submitted by IVEMSA to MASIMO in accordance with
the normal billing practices and invoiced by IVEMSA on a weekly basis to MASIMO to the Accounts Payable Department. Invoices shall be supported by documentation satisfactory to MASIMO and shall be approved by a MASIMO representative prior to
payment. 

 MASIMO shall pay all invoices to an account designated in writing by IVEMSA. In the event of a dispute with respect
to the charges submitted in an invoice, the undisputed portion of the invoice shall be paid by MASIMO within the terms specified herein, and payments of the disputed portion will be withheld pending resolution of such dispute. IVEMSA shall maintain
accounts and complete records of all hours of direct labor employees engaged in the manufacturing for which payment under this agreement is to be computed on the basis of actual time paid, and charges of any kind payable by MASIMO under this
agreement. Such records shall be maintained in accordance with recognized commercial accounting practices as to provide prompt and reasonable accounting information to MASIMO agreed hereunder. MASIMO has the right to audit records specific to MASIMO
such as, but not limited to, payroll and time keeping records. 
  

	IX.	OTHER TERMS OF PROPOSAL. 

  

	 	A.	MASIMO will provide full assistance in the training of quality assurance, manufacturing and assembly personnel as well as providing clear and specific quality - control requirements
and timely feedback on workmanship quality. 

  

	 	B.	Any termination of seniority benefits required by Mexican law and owed to employees due to a special work force reduction requested by MASIMO will be paid by IVEMSA and billed to
MASIMO at cost. IVEMSA will negotiate the lowest benefits payment possible and will provide MASIMO the opportunity to participate in such negotiations directly or through MASIMO appointed agent. MASIMO shall create a special fund for severance
payments as stated, to be adjusted annually, the base for the severance includes the following: 

  

	 	a)	Three months severance pay, (for unjustified layoffs according to Mexican Labor Law) 

  

	 	b)	One day for every month of work completed, 

  

	 	c)	Vacation and Christmas bonus time due, 

  

	 	d)	If the layoffs are without justified cause according to article 47 of Mexican Labor Law, twenty days wages per year of seniority will be due. 

  

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 The obligation to create a fund will be executed and complied with by means of an additional sum in an amount equal to
ten percent of the weekly payroll that will be added to the invoice or billed separately as may be applicable under Mexican Tax Laws. The 10% as mentioned above will be paid until such time that it represents full payment of termination pay and
benefits to all workers then hired, and shall continue to be updated if such becomes necessary due to increase in hand labor. Such obligation may be substituted by means of a bond sufficient to pay for termination of up to 70 (seventy) employees.
Once such number of personnel is reached, MASIMO will substitute or increase the value of the bond to cover any additional number of workers hired or contemplated to be hired within a period of six months. Such bond shall be placed in favor of
IVEMSA through a legal Mexican Institution authorized to issue such bonds. 
 Any amount integrated in the fund referred in this clause, shall be
MASIMO’s property, even though the fund will be managed by IVEMSA. This fund shall be created through an account in a Bank Institution designated by IVEMSA, and any interest this account may earned, shall be on benefit of MASIMO. 
 MASIMO shall deliver to IVEMSA prior to the initiation of services, evidence of any and all bonds, insurance or other documents to assure IVEMSA that all obligations
have been complied with, within a period of thirty days as of the date of signature of this agreement, or immediately after following request by IVEMSA. not to exceed seven calendar days. 
  

	 	C.	Terms of payments of Administrative services billing is net seven days. Invoices can be telefaxed to MASIMO weekly to commence payment processing to the following fax number:
(001) (949) 250-9686. Hard originals will follow by mail. 

 A deposit will be required in order to expedite the pre
– operation expenses payments, and a wire transfer will be required for the payment of pass - through expenses. Both the deposit and the wire transfer shall be made by MASIMO within ten (10) days following the enter of this agreement, at
the bank institution called Wells Fargo Bank branch number 0275 addressed at 250 Fourth St. Calexico, CA. 92231, account number 219476272 and ABA number 121000248 at the name of Industrial Vallera de Mexicali, S.A. de C.V. 
 MASIMO will send a written notification when a deposit would be made to this account, and IVEMSA will return to MASIMO either an invoice or Memo as proof
of the receipt of the monies. 
  

	 	D.	All U.S. Customs tariffs and Mexican duties and any similar payments to the government of the United States or Mexico under this Agreement shall be paid by MASIMO.

  

	 	E.	IVEMSA shall be responsible for obtaining all necessary city, state or federal Mexican importation and exportation permits needed to import and export equipment, production tools,
raw materials and components into Mexico. IVEMSA agrees to assist MASIMO in gathering the proper information and documentation necessary for all permits. MASIMO agrees to supply to the best of its ability, all information required for such permits.

  

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	X.	COMMUNICATIONS. Both MASIMO and IVEMSA agree that clear communication lines between them are vital to this agreement. Accordingly, the following provisions are agreed upon:

  

	 	A.	All changes in this agreement or other subsequent agreements will be in writing and signed by the parties to this agreement at the time of such change or subsequent agreement.

  

	 	B.	MASIMO and IVEMSA each agree to designate a Program Manager who will be responsible for all activities under this agreement. All communications under this agreement will be directed
to these persons. For this purpose, MASIMO appoints Mr. Gary L. Waite as Program Manager to supervise and make any decision toward to the compliance of this agreement. 

  

	 	C.	Each Program Manager will be clearly indicated by name and will designate which address and phone number should be used to communicate all business maters. 

 

	 	D.	MASIMO will provide IVEMSA with a list of personnel authorized to make purchases or contracts on its behalf. The list should indicate each person’s name in addition to what
type of purchases or contracts he or she is allowed to signed and the dollar limits for each contract. 

  

	XI.	TERM OF AGREEMENT AND OPTION TO EXTEND. This agreement shall be effective upon execution, for a period of thirty six (36) months. 

 Providing that MASIMO is current with all its contractual obligations under this agreement, IVEMSA agrees to grant successive options to extend this
agreement on the same terms and conditions with the exception of adjustment of cost and fees for additional twelve months periods; provided that such option shall be exercised by MASIMO in writing at least (90) ninety days prior to the
expiration of this agreement or any extensions thereof. 
  

	XII.	TERMINATION FOR CAUSE 

  

	 	A.	Either party shall give the other ninety days prior written notice of termination of this agreement based on clauses XII paragraphs D.1, and D.3 below, and thirty days prior written
notice of termination for cause of this agreement based on clause XII paragraph D.2, D.4, D.5 and D.6 below. 

  

	 	B.	In the event of termination for cause on ninety days notice by MASIMO, this agreement shall terminate immediately upon the expiration of said ninety days provided that MASIMO is
current in payment of all invoices to IVEMSA; the termination shall be effective immediately upon the 91st day or immediately thereafter upon payment of all invoices that are outstanding on the 90th day. In the event some invoices are in dispute on
the 90th day, the termination shall be effective on the 91st day notwithstanding those outstanding invoices provided written notice by MASIMO to IVEMSA of the disputed invoices has been given prior thereto and all non -disputed invoices have been
paid. 

  

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	 	C.	In the event of termination by MASIMO for cause on thirty days notice, this agreement shall terminate as provided, however, such termination shall be subject to the condition that
MASIMO is current in payment of all invoices to IVEMSA, and any and all additional monies due hereunder. In any such event, MASIMO shall have the right to give NEMSA notice of termination of this agreement as provided without any responsibility,
liability or obligation on the part of MASIMO for the remaining term of this agreement, nor for the payment of rent, except for labor obligations that deal with severance provisions under Mexican law. The termination for cause on thirty days
notice, shall be effective immediately upon the 31st day or immediately thereafter upon payment of all invoices that are outstanding on the 30th day. In the event some invoices are in dispute on the 30th day, the termination shall be effective on
the 31st day notwithstanding those outstanding invoices provided written notice by MASIMO to IVEMSA of the disputed invoices has been given prior thereto and all non -disputed invoices have been paid. 

  

	 	D.	Causes for termination of this agreement are as follows: 

  

	 	•	 	ONE PARTY’S DEFAULT 

  

	 	1.	Either party fails to perform any material provision of this agreement and fails to cure such default in performance within a thirty day period of time following its receipt of
notice from the other party specifying such a default exists. 

  

	 	2.	If either party becomes insolvent, or makes an assignment for the benefit of creditors, or is adjudicated bankrupt in any voluntary or involuntary bankruptcy proceeding, this
agreement will be terminated thirty days from receipt of insolvency notice. 

  

	 	3.	Either party is delinquent in the fulfillment of its normal business obligations such as payment of taxes, labor or civil obligations to the extent that such obligations represent a
real and present danger to the interest of the other party, and if such delinquency is not cured within thirty calendar days of notice given by the non—delinquent party. 

  

	 	•	 	MAYOR FORCE 

  

	 	4.	In the event of any act of the United States or Mexican authorities, whether administrative, executive or judicial, which may effect a significant or material change in the
Maquiladora Program, or result in the appropriation, forcible purchase or surrender in any other manner, of the assets of the business of IVEMSA or MASIMO, or may otherwise result in the prevention of IVEMSA or its Mexican subsidiary from doing
business in Mexico. 

  

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	 	5.	Theft of MASIMO’s equipment, materials and/or inventories under the custody and/or control of IVEMSA provided such theft is substantial and/or continuous. Substantial and/or
continuous theft, for purpose of this provision, shall be defined as thefts cumulatively totaling U.S. $20,000.00 (Twenty thousand dollars U.S. currency) in value during any consecutive twelve months period. 

  

	 	6.	Political an/or civil unrest or commotion, strikes, walkouts, riots, vandalism, malicious, mischief, if these prevent the efficient production of process in the plant or seriously
affect employer/employee relations. 

  

	 	E.	In the event that any provision, term or condition of this agreement is in conflict with any law, rule, regulation, or guideline of the government of the United States or Mexico, or
any state or political subdivision of either, or of any department or agency of either, or is in conflict with any judgment, whether by good faith consent or otherwise, of any court of the United States of Mexico, or if either party has received
notification of any proposed official action by any such government, agency, department, or court with respect to any such conflict, then, in such event, either party hereto may propose to the other, appropriate modifications to this agreement in
order to cure or avoid such conflict or the effect thereof, and if agreement regarding such modification can not be reached within forty -five days from the making of such proposal, the parties agree to submit this dispute to arbitration under the
rules of the American Arbitration Association as provided below. 

 In the event described before, the remaining provisions
shall be in all legal forces and shall not be at any time considered as null. 
  

	XIII.	TERMINATION WITHOUT CAUSE 

  

	 	A.	In the event that MASIMO wishes to terminate this agreement without cause at any time during the first year of this agreement, MASIMO shall be subject, independently of the
obligation of payment for any outstanding amounts hereunder, [...***...]. If termination without cause arises at any time during the second year of this agreement, MASIMO shall be subject to pay [...***...]. This penalty shall be
sufficient to compensate IVEMSA for damages caused due to early termination or termination without cause, in addition to (I) any amounts due and payable for services rendered hereunder, (II) additional pass through expenses as agreed and (III)
seniority payments made by IVEMSA as a consequence of such earlier termination as provided or in clause IX, paragraph B). Such amounts shall be considered to indemnify IVEMSA for any investment made regarding hiring or administrative personnel,
software, equipment, consulting assistance and all other items related specifically to this area. 

 * Confidential Treatment
Requested 
  

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 However, in the event of termination of this agreement by MASIMO during the first year hereof, MASIMO
will be released of any such penalty fee, provided that MASIMO is able to transfer this Agreement to any third party at IVEMSA’s satisfaction, and such third party contracts IVEMSA’s services for the remaining two years, under the terms
and provisions of Section XII - A and B below. 
 For the purposes of termination as stated. on the first paragraph of this letter A, the
right of termination during the second year may be exercised exclusively after six months have elapsed as of the conclusion of the first year of business. If IVEMSA decides to terminate this agreement without any cause, IVEMSA shall give a one
hundred twenty - days prior notice to MASIMO, period in which MASIMO would be able to seek another Shelter supplier and make any arrangement in order to continue as Lessee of the facility. 
 If IVEMSA decides to terminate this agreement without any cause, IVEMSA shall be subject to payment of [...***...], sufficient to compensate MASIMO
for damages caused due to early termination or termination without cause by IVEMSA. In such event, MASIMO will assume any and all operations conducted by IVEMSA as well as any and all liabilities derived from such operations, including employees
hiring and conditions. 
  

	XIV.	ASSIGNMENT 

  

	 	A.	This contract shall not be assigned or in any other fashion conveyed, in whole or in part by IVEMSA, to any third party, without first obtaining MASIMO’s written consent in
each and every such instance. 

  

	 	B.	MASIMO shall have the right to assign this agreement and to assign its rights and delegate its duties under this agreement either in whole or in part (an “assignment”) at
any time with the prior written consent by IVEMSA no consent is required if the assignment is for the benefit of a MASIMO subsidiary, successor, affiliated or related legal entity, including any portion or substantially all of the assets of MASIMO.

 If MASIMO wants to assign this agreement to a different legal entity from such mentioned above, MASIMO must submit this
situation to the approval of IVEMSA, and provide IVEMSA with all documentation an information related to such legal entity, in order to be able to make a decision in a reasonable time. IVEMSA shall not withhold the authorization unreasonably.

 * Confidential Treatment Requested 
  

 - 15 - 

	XV.	NEW COMPANY 

 LOS DOS PARRAFOS ANTERIORES SON
CONTRADICTORIOS CON EL PARRAFO SIGUIENTE. 
  

	 	A.	MASIMO may after the eighteenth month, initiate any proceeding toward the establishment of its owned subsidiary in Mexico. As established in the preceding paragraph, the
“incubator” phase shall continue until the termination of the three - year term, herein agreed, at which time IVEMSA and MASIMO shall agree on terms and conditions under which the incubator phase shall operate. 

  

	 	B.	Once MASIMO has incorporated the Mexican Company and the Mexican Company has obtained a Maquiladora Program issued by the Mexican Ministry of Commerce and Industrial Development
(SECOFI) or the corresponding authority at such time, pursuant to Mexican Law, IVEMSA agrees to assist and collaborate with MASIMO and its Mexican Company, in order to have MASIMO Mexican Company take over IVEMSA’s manufacturing of the products
herein contemplated, subject to the terms and conditions of paragraph A above. 

  

	 	C.	MASIMO at any time may instruct IVEMSA to incorporate its own MASIMO Mexican Company, notwithstanding the fact that MASIMO will continue to be under the
“incubator-shelter” system as specified in item A above. 

  

	XVI.	MAQUILADORA TRANSFER 

  

	 	A.	Upon organization and under the terms of paragraph A) of Clause XV above, MASIMO shall cause its Mexican Company to carry out with IVEMSA, and IVEMSA shall carry out with the
Mexican Company, the transfer of all machinery, equipment, inventory, work in process, materials, components and any other asset property of MASIMO or consigned by MASIMO to IVEMSA, from the Mexican Customs manifests (pedimentos) under IVEMSA, to
manifests under MASIMO Mexican Company (hereinafter the “Maquiladora Transfer”). Said Maquiladora transfer shall be carried out in an orderly fashion, pursuant to the provision for such effect set forth under Mexican Customs Law and the
Decree. 

  

	 	B.	MASIMO will notify IVEMSA of the time in which the Maquiladora transfer is to take place between IVEMSA and MASIMO Mexican Company pursuant to the legal provisions contained in the
decree, the Mexican Customs law and its regulations, and paragraph A) of Clause XV above. 

  

	 	C.	IVEMSA shall be responsible to pay all of the tariffs, duties, customs broker fees or any other expenses that it may incur in order to carry out the maquiladora transfer from IVEMSA
to MASIMO Mexican Company on an export basis. Theses expenses shall be treated as pass through expense and will be invoiced to MASIMO in accordance with section VIII of this Agreement. 

  

 - 16 - 

	XVII.	TRANSFER OF OPERATION TO MASIMO MEXICAN COMPANY. 

  

	 	A.	Starting the third year of operations under this Agreement or the terms stipulated in paragraph paragraph A) of Clause XV above, MASIMO and its Mexican Company shall have the right
to take over the Manufacturing operations conducted by IVEMSA on behalf of MASIMO and its Mexican Company. 

  

	 	B.	MASIMO and its Mexican Company shall notify IVEMSA in writing, at least 90 days, prior to the date on which MASIMO Mexican Company shall take the manufacturing conducted by IVEMSA
as per paragraph A) immediately preceding. 

  

	 	C.	As soon as MASIMO and/or its Mexican Company takes over the manufacturing conducted by IVEMSA, IVEMSA shall assign in favor of MASIMO Mexican Company all of IVEMSA’s rights and
obligations as lessee under the lease agreement, as well as all of the utilities connected to the facility consequently MASIMO and/or its Mexican Company will be solely responsible to lessor. 

  

	 	D.	IVEMSA commits itself to obtain the consent of the lessor under the facility’s lease agreement, to assign the lease in favor of MASIMO Mexican Company.

  

	 	E.	Prior to the transfer of IVEMSA’s operation to MASIMO Mexican Company, IVEMSA shall deliver to MASIMO Mexican Company all of the control records referred to in this agreement.

  

	 	F.	The whole incubator process will not produce at any moment, any kind of penalty to MASIMO, except as specified in item XIII.A above. 

  

	XVIII.	SUBSTITUTION OF EMPLOYER. 

  

	 	A.	Prior to the transfer of the operation from IVEMSA to MASIMO Mexican Company under the terms of this agreement, as set forth in section XIV, MASIMO shall cause the Mexican Company
to carry out a substitution of employer procedure, and at the request of MASIMO Mexican Company and/or MASIMO, IVEMSA agrees to carry out such substitution of employer procedure involving all of the personnel working for IVEMSA under this agreement.

 The substitution of employer shall be carried out through agreement signed between IVEMSA and MASIMO Mexican Company where
MASIMO Mexican Company will assume all rights and obligations which IVEMSA has over IVEMSA’s employees hired for MASIMO under the provisions set forth in this agreement. Said substitution of employer agreement shall be presented before the
local labor board for approval. There shall not be any severance payment obligations for MASIMO and/or its Mexican Company related or as a result of the employer substitution agreement provided that, in accordance with Mexican Labor Law, MASIMO
and/or its Mexican Company do not modify the labor conditions under which the employees were hired by IVEMSA. In the event any conflicts arises with such employees due to employer substitution, modifications in the labor conditions by MASIMO and/or
its Mexican Company, MASIMO and/or its Mexican Company will be 

  

 - 17 - 

 
solely responsible for any and all severance payments, and IVEMSA will exert its best efforts in assisting MASIMO and/or its Mexican Company in any such
negotiations. IVEMSA consequently shall not be liable for any suits or claims brought about by any IVEMSA employees hereunder, as a result or as a consequence of the employee substitution agreement, nor expenses arising for it (such as
attorney’s fee, indemnification, etc.), and MASIMO and/or its Mexican Company shall solely assume such risks and shall keep IVEMSA free and clear of any such claims and/or liabilities. 
  

	XIX.	WARRANTS. IVEMSA warrants and agrees to support MASIMO to the best of its ability and experience utilizing its best efforts through the term, including utilization of qualified
sources and contracts representing all services necessary to perform the functions required to operate this agreement successfully and to ensure that MASIMO’s desires in this project will be met in all phases. 

  

	XX.	CONFIDENTIALITY. IVEMSA will use its best efforts to maintain MASIMO’s identity in confidence. IVEMSA will hold in confidence all information, documents and other materials
designated by MASIMO as being proprietary. IVEMSA will also protect MASIMO’s trade secrets including all matters specified in this agreement and all procedures involved with MASIMO’s products, and any and all other information that MASIMO
may acquire as a consequence of this agreement. For the compliance of this obligation, the parties agree to enter the Confidentiality Agreement herein attached as Exhibit “        ,” as may be
approved by IVEMSA, and which provided for protection of both parties rights to confidentiality and secrecy 

 MASIMO will use
its best effort to maintain IVEMSA’s identity in confidence. MASIMO will hold in confidence all information, documents and other materials designated by IVEMSA as being proprietary. MASIMO will also protect IVEMSA’ s trade secrets
including all matters specified in this agreement and all procedures involved with IVEMSA’s know-how, techniques and any and all other information that MASIMO may acquire as a consequence of this agreement. 
  

	XXI.	CONFLICT OF INTEREST. IVEMSA, including its successors and/or principles, agrees that, during the term of this contract and any extensions thereof, it will not enter into any
agreements, contracts, oral or written, or associations with any company, corporation or individuals that are associated in any way competitive with MASIMO products, manufacturing, distribution or sales, as disclosed to IVEMSA.

  

	XXII.	IVEMSA ADDITIONAL RESPONSIBILITIES. 

  

	 	A.	IVEMSA will perform all interface relations with local, State and Federal governments and will obtain all necessary approvals, licenses and permits required to import equipment and
materials into Mexico and operate under Mexico’s Maquiladora Programs, including but not limited to compliance with all Mexican Environmental Laws, rules, regulations and treaties and all applicable U.S. Environmental Laws, rules, regulations
and treaties. 

  

 - 18 - 

	 	B.	It is understood that IVEMSA will coordinate with MASIMO to ensure the importation of product and equipment to Mexico and subsequent export back to the U.S. of finished product,
waste and any equipment in conformance with existing U.S. and Mexican government procedures and laws. 

  

	XXIII.	ASSISTANCE BY MASIMO. It is expressly understood that MASIMO shall have the sole responsibility of carrying out the maquila operation to be performed hereunder, and that the
obligation of IVEMSA is limited solely to the administrative management and initial start up operations of MASIMO. Consequently, MASIMO shall undertake at its sole direction, through its authorized qualified personnel, the direction, training,
quality control and supervision of personnel at IVEMSA’s plant to manufacture MASIMO’s products. MASIMO agrees to pay directly for all costs for such assistance, in addition to all those hereinafter agreed upon. 

 

	XXIV.	MANUFACTURING STANDARDS. IVEMSA shall not be obligated to, nor be liable for the quality and design contained in the manufacturing information. Therefore, it should be the express
responsibility of MASIMO to establish guidelines and policies to provide for quality control. MASIMO shall have the right to free access to the plant and offices of IVEMSA precisely at the site where the operation for MASIMO is conducted, at all
times during working hours, for the purpose of reviewing the manufacturing and production facilities and the manufacturing methods being employed by IVEMSA in the manufacturing of the products. 

 STORAGE FACILITIES AND DELIVERY OF COMPLETED PRODUCTS.- IVEMSA, without being obligated to, shall reasonably assist MASIMO in securing and maintaining
adequate facilities for all raw material received from MASIMO as well as work in progress and completed products in such manner as to prevent loss or damage of any kind of raw materials, work in progress and completed products. IVEMSA shall also
further assist MASIMO in maintaining adequate records of the same, including inventory, work in progress, completed products and any other records and reports reasonably required by MASIMO. Delivery of completed products shall be made by IVEMSA to
MASIMO or its designee at such time and place with such carriers as may be designated by MASIMO and in accordance with shipping instructions received from the latter. IVEMSA agrees to adhere to all shipping and handling procedures requested by
MASIMO for which the latter shall prepare forms and operating procedures to be furnished by MASIMO. 
  

	XXV.	INSURANCE. Insurance for all raw materials of MASIMO in the possession of IVEMSA shall be obtained with an insurer approved by MASIMO, and for the account and benefits of MASIMO.
Said insurance shall be in an amount sufficient to cover risks indicated by MASIMO and subject to terms and conditions satisfactory to MASIMO. Costs for such insurance shall be paid by MASIMO. If obtained from a Mexican Company, insurance coverage
shall provide for dollar replacement value, or as otherwise determined by MASIMO. 

 For such purpose, and if IVEMSA is to
obtain such insurance on behalf of MASIMO, then MASIMO will provide to IVEMSA a written statement certifying under oath, the value of 

  

 - 19 - 

 
the raw materials and all property of MASIMO in possession of IVEMSA, so as to allow IVEMSA to obtain the insurance in an amount sufficient to cover such
properties. From time to time MASIMO shall update any such information to duly support such insurance. Consequently, IVEMSA is hereby released of any responsibility regarding losses or damages to the raw materials as indicated herein. Further MASIMO
shall pay for any insurance that may be required under the lease agreement and/or shall compensate IVEMSA for any such insurance that it may have procured or paid on behalf of MASIMO, which shall be billed as pass through to MASIMO. Notwithstanding
the above mentioned, IVEMSA shall put its best efforts to secure the guarding of those materials and equipment owned by MASIMO, as if they were of its own property as may be reasonably possible. Furthermore, MASIMO, under the terms of the Bailment
Agreement executed or to be executed with IVEMSA assumes responsibility for providing each and every piece of machinery, equipment, tool, utensils, and items necessary to implement the production process. In this regard, MASIMO shall be bound to
obtain any and all insurance necessary to protect such items from loss or damages, thereby releasing IVEMSA from any and all responsibilities in connection therewith. 
  

	XXVI.	INDEMNITY 

  

	 	A.	Neither party shall be liable to the other for any delay resulting from the circumstance that it is temporarily unable to perform its obligation under this agreement because of
fire, flood, strikes, labor troubles or other industrial disturbances, freight embargoes, governmental restrictions or regulations, war (declared or undeclared), riots, insurrections, or other causes beyond its control. 

  

	 	B.	 In view of the fact that IVEMSA will use machinery, equipment and materials imported temporarily into Mexico, under permits to be granted in each case by the
Mexican authorities, and since all of such operations shall be subject to the laws, regulations and rulings concerning the Maquiladora industries, the parties hereto expressly agree that neither party shall be liable to the other in the event of a
failure to receive the necessary permits for importation of such machinery, equipment and materials, or by virtue of any orders given by the Mexican authorities which are not consequence of the fault of either of the parties hereto, which results in
the delay, interruption, prevention or impossibility of performance part or all of the manufacturing operations of this agreement. MASIMO shall be. responsible for any and all liabilities as a result of claims or suits due to, because of, or arising
out of, any and all personal injuries, and/or property damage arising out of the operation and/or the manufacture, handling, storage and delivery of the raw materials and/ or the products referred to in this Agreement, considering that IVEMSA will
only be rendering administrative services as specified hereunder. IVEMSA shall indemnify and hold MASIMO harmless against and in respect of any and all claims, demands, losses, liabilities, costs, expenses, obligations and damages, including
reasonable attorneys’ fees, suffered or incurred by MASIMO which arise, result from or relate to any breach of or failure by IVEMSA and/or its employees, agents or representatives, to perform any of its representations, warranties, covenants or
agreements in this Agreement or in any exhibit or agreement attached to this Agreement or referenced or 

  

 - 20 - 

	 	 
related thereto, or which arise, result from or relate to any liability or obligation of MASIMO resulting from the negligent actions of IVEMSA, as may be
duly proven by MASIMO. 

  

	XXVII.	MISCELLANEOUS. 

  

	 	A.	IVEMSA agrees that MASIMO may inspect all personnel records under MASIMO project during reasonable working hours. Furthermore, to the extent that IVEMSA maintains any legal, or
other records in any way related to MASIMO or its business, such records shall be made available to MASIMO for review and inspection on a reasonable basis. 

  

	 	B.	IVEMSA shall obtain and retain during the terms of this agreement and all contract and all required licenses and permits, and shall provide MASIMO copies of all licenses and
permits, including but not limited to all customs permits. In addition, IVEMSA shall provide copies of such records to MASIMO’s Mexican legal counsel as requested by MASIMO from time to time. 

  

	 	C.	IVEMSA covenants and warrants that the performance of its obligations under this agreement will comply with all applicable laws, rules regulations and order of the United States and
Mexico and of any state or political subdivision thereof, as well as all treaties an agreements between the United States and Mexico. IVEMSA agrees to indemnify and hold MASIMO free and harmless against any loss, cost, expense, damage,
attorney’s fee’s and cost or any other liability incurred by reason of failure to do so. 

  

	 	D.	In carrying out its responsibilities under this agreement, IVEMSA on behalf of itself, agrees not to pay or agree to pay, directly or indirectly, any funds or anything of value to
any public official in Mexico for the purpose of influencing such official’s acts or decisions. If IVEMSA directly offers, pays, promises gives or authorizes payment of any money or of anything of value to any government or public official for
the purpose of influencing any official act or decision of such official in the course of carrying out this agreement, this agreement will be void ab initio and IVEMSA will surrender any claim for payment under this agreement and will refund any
payments received under this agreement. 

  

	 	E.	IVEMSA shall immediately give written notice to MASIMO of any governmental regulatory action, labor suit or claim filed with the labor board or any suit or claim filed in
California, United States, or Baja California, Republic of Mexico. 

  

	 	F.	Nothing in this agreement whether expressed or implied is intended to confer any right or remedies under or by reason of this agreement on any person other than IVEMSA and MASIMO,
the parties hereto. 

  

	 	G.	Any dispute arising due to the interpretation or application of any covenant herein contained, the parties agree to submit it to arbitration, under the rules of the American
Arbitration Association (AAA), according to the following statements: 

  

 - 21 - 

	 	a.	This agreement is made and entered into in the State of California and shall be governed by and construed and enforced in accordance with the laws of the State of California.
Therefore this legal frame should be use whenever a disputed is submit under arbitration. 

  

	 	b.	Each party will chose an arbitrator from the list of arbitrators of the AAA, whose fees shall be paid by each party. 

  

	 	c.	In the event those two arbitrators may not get a common final resolution, a third arbitrator shall be appointed, whose fees will be paid by the parties in the same proportion to
each one. 

  

	 	d.	If an appeal process is allowed by the AAA, the losing party may be able to exercise this option. In the event that the AAA does not stipulate anything about appeal’ expenses,
they will be at first paid by the appellant and shall be reimbursed by the other party in case the appellant wins in this first appeal. 

  

	 	e.	Any other expense, such as copies, expert or/and appraiser’ fees, etc, shall be covered by the party that asks for the appeal. 

  

	 	f.	If there is a general fee established by the AAA, this will be paid by both parties in the same proportion. 

  

	 	g.	The arbitration hearing will be held in Orange County in the State of California, U.S.A. and the language to be used shall be English. 

  

	 	H.	The language in all parts of this agreements shall in all cases be construed according to its fair meaning and not strictly for or against any of the parties hereto.

  

	 	I.	This agreement may be executed in any number of identical counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the
same instrument when each party has signed one such counterpart. 

  

	 	J.	This agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, oral and written, between the parties hereto with respect
to the subject matter hereof and the transactions contemplated hereby. 

  

	 	K.	Except as otherwise provided in this agreement, IVEMSA and MASIMO shall not be responsible for any loss or breach due to delay in delivery or performance hereunder caused by third
parties, governmental regulations, controls or directions, outbreak of a state of emergency, acts of God, war, hostilities, civil commotion, riots, epidermis, perils of the sea or other natural casualties, fires, strikes, walkouts or other similar
cause or causes beyond the control of the parties. 

  

	 	L.	When necessary herein all terms used in the singular shall apply to the plural and all terms used in the masculine or feminine gender shall apply to the neuter.

  

 - 22 - 

	 	M.	All notices and demands of any kind which either party hereto may be required or desire to serve upon the other party under the terms of this agreement shall in writing and shall be
served upon the other party by personal service upon such other party or by leaving a copy of such notice or demand at the address hereinafter set forth, whereupon service shall be deemed complete, or by mailing a copy thereof by certified United
States mail, postage prepaid with return receipt requested, addressed as follows: 

  

			
	1. To IVEMSA -	  	 Attention to Mr. Sergio Tagliapietra
 233 Paulin Avenue,
PMB 5765,
 Calexico, CA. 92231-2646.

		
	2. To MASIMO -	  	 Attention to Mr. Gary L. Waite
 2852 Kelvin
Avenue
 Irvine, CA. 92614
 Phone: (949) 250-9688
 Fax: (949) 250-9686

		
	With copy to:	  	 Arter & Hadden LLP
 Attention to: Mr. Chriss
Kilpatrick
 Jamboree Center
 Five Park Plaza, Suite
1000
 Irvine, California 92614 – 8528
 Phone: (949)
252-7500
 Fax (949) 833-9604

		
	With copy to:	  	 Bufete Enriquez de Rivera, S.C.
 Attention to: Yissel
Vidal
 Lerdo 1595, Col. Nueva
 Mexicali, B.C., 21100

Phone: (6) 552-5060
 Fax: (6) 554-8180

 In case of service by United States mail, it shall be deemed complete on the day actual delivery
is made, as shown by the addressee’s registry or certification received or by the expiration of the third day after the date of mailing, whichever occurs first. The address to which notices or demand should be delivered or sent may be changed
from time to time by notice served, as hereinabove provided, by either party upon the other party. 
  

	 	N.	Each individual executing this agreement on behalf of the partnership or corporation represents and warrants that he is duly authorized to execute and deliver this agreement on
behalf of such partnership or corporation, by a its partners or board of directors, and binding upon such partnership or corporation its terms. 

  

	 	O.	Subject to the restrictions against contained, this agreement shall insure be binding upon permitted assigns and of each of the parties hereto. 

  

 - 23 - 

	 	P.	Time is of the essence for the performance satisfaction of all conditions of this agreement. 

  

	 	Q.	The waiver by one party of the performance condition or promise shall not invalidate it be considered as a waiver by such party condition or promise. The delay in pursuing insisting
upon full performance for any covenant, condition or promise shall later pursuing any remedies or insisting the same or any similar breach or failure. 

  

	 	R.	IVEMSA agrees that it shall treat as confidential relating to any processes utilized by and shall not reveal such information authorized in writing by MASIMO to do

  

	 	S.	All exhibits to which reference is made deemed to be incorporated here in by each forth. 

 In the city of Calexico, California, this 27th day of December, 2000. 
  

	
	INDUSTRIAL VALLERA D MEXICALI, S.A. DE. C.V.,
	
	 /s/ Sergio Tagliapietra

	Mr. Sergio Tagliapietra
	President

  

					
	MASIMO CORPORATION
			
	 /s/ Joe Kiani
	 		 	 /s/ Gary L. Waite

	Joe Kiani	 		 	Mr. Gary L. Waite
	President, CEO	 		 	Vice – President

  

 - 24 - 

 Exhibit “A” 
 Layout and building improvement lists to be added when suitable site is selected. 
  

	
	 /s/ Gary Waite

	Masimo
	VP Manufacturing
	
	27 Dec 2000

  

 A-1 

 Exhibit “B” 
 Batment Agreement, or list or Masimo assets transferred to IVEMSA under the Shelter Labor Agreement. 
 List to be established and maintained upon initial production transfer. This is a Masimo responsibility. 
  

	
	 /s/ G. L. Waite

	 Masimo
 VP Manufacturing

 27 Dec 00 
  

 B-1 

 Exhibit “C” 
 These are the main articles from the Mexican Federal Labor Law, that will help you in the understanding of some concepts established in the shelter agreement. We are editing our English version of the whole
labor law. 
 Salary 
 Article 84. The salary, includes
cash payments for daily wage, bonuses, receipts, housing, premiums, commissions, benefits in kind and any other amount or benefit given to the worker for his work. 
 Article 87. Workers shall be entitled to a Christmas bonus equal to at least fifteen days for salary, which shall be paid before December 20. 
 Those who have not completed one year of service, even when they are or not working at the date which it is paid, shall be entitled to be paid in proportion to the time worked. 
 Article 88. The period for payment of salaries shall never exceed one week for individual who perform manual labor, and fifteen days for other workers. 
 Article 89. To determine the amount of the indemnification that should be paid to the workers, the salary for the day on which the right to the indemnification
arises shall be used as the basis, including therein the daily, wage and, the proportion of benefits mentioned in Article 84. 
 To determine the daily
salary when the salary is established by the week or by the month, it shall be divided by seven or by thirty, as the case may be. 
 Termination of labor relationship 
 Article 48. The worker may, at his election, request from the Conciliation and Arbitration Board to be
reinstated in his job or to receive and indemnification equal to three months’ salary. 
 If the employer fails to show the cause of rescission in the
proceedings, the worker shall be entitled, in addition to whatever the action exercised might have been, to be paid the salaries accrued from the date of dismissal to the effective date of the award. 
 Article 49. The employer shall be exempt from the obligation to reinstate the worker, if he pays the indemnification determined in Article 50, in the following
cases: 
  

	I.	When the worker have been employed for less than a year; 

  

	II.	If he shows before the Conciliation and Arbitration Board that the worker, because of the work he performs or the characteristics of his job, is in direct and permanent contact with
him and the Board considers, taking into account the circumstances of the case, that a normal relationship is not possible; 

  

 C -1 

	III.	In the case of confidential employees; 

  

	IV.	In the case of domestic service; and 

  

	V.	In the case of occasional workers. 

 Article 50. The
indemnification referred to in the preceding article shall consist of: 
  

	I.	An amount equal to the amount of salaries for one-half of the period of services rendered, if the employment contract were for a definite period of less than one year; if it
exceeded one year, an amount equal to the amount of salaries for six months for the first year, plus an amount equal to twenty days of salary for each of the .succeeding years during which services were rendered; 

  

	II.	The salary of twenty days for each year of services rendered, if the employment contract were for an indefinite period; and 

  

	III.	In addition to the indemnification referred to in, the preceding paragraphs, n amount equal to three months’ salary, plus the salaries. accrued from the date of dismissal until
the indemnification are paid. 

 Article 51. The following are causes for rescission of the employment contract, without responsibility
of the worker: 
  

	I.	If the employer or the employers’ association deceives him with respect to the conditions of the job at the time the job is offered to him. This cause for rescission shall
cease to be effective after the worker has been working for thirty days. 

  

	II.	If the employer, his family, his officers or administrative personnel, during working hours, commit dishonest or violent acts, make threats, offend or mistreat the worker, his
spouse, parents, children of brothers and sisters; 

  

	III.	If the employer, his family or employees, outside or working hours; commit any of the offenses listed in the preceding paragraph, and the offense is of such serious nature that it
makes the work relationship impossible; 

  

	IV.	If the employer reduces the worker’s salary; 

  

	V.	If the worker fails to receive his salary on the usual or agreed date or place; 

  

	VI.	If the employer maliciously causes damage to his working tools or utensils; 

  

	VII.	If there is serious danger for the security of health of the worker. or his family, due either to the lack of hygienic conditions in the establishment or to failure to comply with
the preventive and safety measures established by the laws; 

  

 C-2 

	VIII.	If the employer, through negligence or inexcusable carelessness, endangers .the safety of the establishment or of the persons in it; and 

  

	IX.	Causes similar to those set forth in the preceding paragraphs, of equal seriousness and of similar consequences insofar as the work is concerned. 

 Article 52. The worker may terminate his employment within thirty days following the date on which any of the causes listed in the preceding article arises, and
shall be entitled to be indemnified by the employer in the terms of Article 50. 
 Article 53. The following are causes of termination of employment
contracts: 
  

	I.	Mutual consent of the parties; 

  

	II.	Death of the worker; 

  

	III.	The termination of the work or the expiration of the period or the expenditure of capital, according to Articles 36, 37 and 38; 

  

	IV.	The physical or mental disability or the manifest inability of the worker which makes the performance of the work impossible; and 

  

	V.	The cases to which Article 434 refers. 

 Article 54. In the case of
paragraph IV of the preceding article, if the disability results from a nonoccupational hazard, the worker shall be entitled to be paid one month’s salary plus twelve days for each year of service, according to the provisions of Article 162,
or, if possible, if he so desires, to be given another job compatible with his ability, regardless of any benefits to which he may be entitled according to the laws. 
 Article 55. If, in the proceeding, the employer fails to prove the cause of termination, the worker shall have the rights indicated in Article 48. 
 Seniority 
 Article 162. Permanent workers are entitled to a seniority premium, according to the following rules:

  

	I.	The seniority premium shall be an amount equal to twelve days of salary for each year of services. 

  

	II.	In determining the amount of the salary, the provisions of Articles 485 and 486 shall. apply. 

  

	III.	The seniority premium shall be. paid to workers, ‘who voluntarily resign, provided that they have completed, at least, fifteen years of service. It shall also be paid to those
who cease to work for. a justifiable reason and those who are terminated, regardless or whether the, termination is justified or not; 

  

 C-3 

	IV.	In cases of voluntary retirement of the workers, the following rules for the payment of the premium shall be observed: 

  

	 	a.	If the number of workers to be retired within one year does not exceed ten percent of the total number. of workers of the enterprise or establishment, or the number of workers. in a
specific category, the payment shall. be made at the time of retirement. 

  

	 	b.	If the number of workers to be retired exceeds ten percent, those retiring first shall be paid, and payment to workers exceeding such percentage may be deferred to the following
year. 

  

	 	c.	If a number of workers in excess of such percentage retires at the same time, the premium shall be paid to those with the greatest seniority, and payment to the remaining workers
may be deferred to the following year; 

  

	V.	In case of death of the worker, whatever his seniority may be, the premium payable shall be paid to the persons mentioned in Article 501; and 

  

	VI.	The seniority premium to which this article refers shall be paid to the workers of their beneficiaries, in addition to any other benefit to which they may be entitled.

 Vacations 
 Article 76. Workers with more than one year of service shall enjoy an annual period of paid vacations that shall, in no event, are less than six working days. It shall be increased by two working days, up to twelve, for each subsequent year
of service. Following the fourth year, the vacations period shall be increased by two working days each subsequent five-year period. 
 Article 77. Workers
who do not perform continuous services, and seasonal workers, shall be entitled to an annual vacation period in proportion to the number of days worked during the year. 
 Article 78. The workers shall enjoy at least six consecutive days of vacation. 
 Article 79. Monetary compensation may not be given in lieu of vacations. If the work relationship ends before the first year of service is completed, the worker shall be
entitled to remuneration in proportion to the length of service. 
 Article 80. The workers shall be entitled to a premium of not less than twenty-five
percent over their salaries for the vacation period. 
 Article 81. Vacation time shall be granted to the workers within six months following completion of
the first year of service. Employers shall give to each employee, annually, a statement showing the employee’s seniority and, according to such seniority, the vacation time to which he is entitled and the date when his vacation should be taken.

  

 C-4 

 Article 117. Workers shall participate in the profits of the enterprises, according to the percentage determined by the
National Commission for the Participation of the Workers in the Profits of the Enterprises. 
 Article 118. In determining the percentage to which the
preceding article refers, the National Commission shall carry out the investigations and the appropriate and necessary studies to -learn the. general conditions of the national economy, and, shall take into consideration the need to encourage the
industrial development of the country, the right of capital to obtain reasonable return and the necessary reinvestment of capital. 
 Article 122. The
distribution of profits among the workers shall be made within sixty days following the date on which the annual tax must be paid, even though the objection of the workers is pending. 
 When the Ministry of. Finance and Public Credit increase the amount of taxable income, without and objection from the workers or without been resolved it, an additional distribution will be made within the 30 days
following the date in which the resolution is notified. 
 Just in case of the resolution is impugning by the employer, it will be suspended the payment of
the additional distribution until the final resolution, guaranteeing the interest of the workers. 
 The amount of the profits not claimed in the year in
which they are payable, shall be added to the distributable profits of the following year. 
 Article 123. The distributable profits shall be divided into
two equal portions: the first shall be distributed equally among all the workers, taking into consideration the number of days worked by each one during the year, regardless of the amount of the salary. The second shall be distributed inn proportion
to. the amount of the salaries earned for work performed during the year. 
 Article 124. For purposes of this chapter, salary is the amount received in cash
by each worker as daily wage. Bonuses, receipts, and other benefits to which Article 84 refers, as well as the amounts received by the worker for overtime work, are not considered part of the salary. 
 In cases of salary per unit of work. and,. in general, when the remuneration is variable, average receipts obtained during the year shall be taken -as the daily wage.

 Christmas Bonus 
 Article 87.
Workers shall be entitled to a Christmas bonus equal to at least fifteen days for salary, which shall be paid before December 20. 
 Those who have not
completed one year of service, even when they are or not working at the date which it is paid, shall be entitled to be paid in proportion to the time worked. 
 Minimum Salary 
 Article 90. Minimum salary
is the lowest amount in cash that- a worker should receive for services rendered in a work period. 
  

 C-5 

 The minimum salary shall be sufficient to satisfy the ordinary material, social and cultural needs of a head of
household, and to provide for the compulsory education of the children. 
 It is considered as social utility, the establishing of institutions and measures
to protect the acquisitive salary’s capacity and to facilitate the access to the workers to obtain their satisfactories. 
 Article 91. The minimum
salaries may be general, for one or more geographic areas, which may comprise one, or more Federated Entities, for a particular branch of the economic activity, or for specific professions, trades or woks, within one or several geographic areas.

 Article 94. The minimum salaries shall be established by a National Commission integrated by workers’, employers’, and government’s
representatives, which could be helped by the Special Commissions. that it consider indispensable for its work, with Consultative character. 
 INFONAVIT 
 Article 136. Agricultural, industrial, mining or any other kind of enterprises are required to provide
comfortable and hygienic housing to their workers. To comply with this requirement the enterprises should contribute to the National Fund for Housing, 5% of the workers’ salaries. 
 Article 137. The National Fund for Workers Housing, will have as purpose to create financing systems that allow the workers to obtain cheap housing loan, to acquire, build, repair, or improve their houses and to pay
the credits granted to them for theses concepts. 
 Article 138. The resources of the National Fund for Workers Housing will be administrated by an organism
integrated in a tripartite way with representatives of the Federal government, workers and employers. 
 Article 139. The Law created by such organism, sill
rule the processes and manners according with which the workers will be able to acquire the property of houses and obtain the credits referred in Article 137. 
 EMPLOYER’S SUBSTITUTION 
 Article 41.
The substitution of employer shall not affect the work relationships of the Enterprise or establishment. The substituted employer shall. be jointly and severally liable with the new employer for the obligations derived from the work relationship and
from this Law which arose prior to the date of the substitution, for a period of up to six months. After this period has expired, liability rests exclusively with the new employer. 
 The six-month period referred to in the preceding paragraph shall be counted from the date that notice of the substitution is given to the union or to the workers. 
  

 C-6Lease Agreement, effective as of 02/01/2001

 Exhibit 10.12 
 *** Text Omitted and Filed Separately 
 Confidential Treatment Requested 
 Under 17 C.F.R. §§ 200.80(b)(4) 
 and 230.406 
 LEASE AGREEMENT entered into by and between INDUSTRIAS ASOCIADAS MAQUILADORAS, S. A. de C. V. (hereinafter
referred to as IAMSA), herein represented by Mr. Jaime Roberts Vildosola) and INDUSTRIAL VALLERA DE MEXICALI, S. A. DE C. V., (hereinafter referred to as COMPANY), herein represented by Mr. Sergio Tagliapietra Nassri, Legal Representative,
pursuant to the following RECITALS and CLAUSES. 
 RECITALS 
 I.- IAMSA declares that: 
 A.- It is a
Company organized and existing under Mexican General Corporation Law, as per Public Instrument No. 13,602 dated August 8, 1955, before Notary Public Number One of the City of Mexicali, Baja California, Attorney Macedonio R. Gutierrez,
registered under number 2900, pages 339, Volume XII, on November 3, 1955; this public Instrument was later amended through other instruments, including Public Instrument Number 229,855, dated August 14, 1987, before Notary Public as
Associate in Protocol of Notary Ten of the Federal District, Attorney Francisco Lozano Noriega, wherein the actual denomination of INDUSTRIAS ASOCIADAS MAQUILADORAS, S. A. DE C. V. was adopted. IAMSA has as its corporate object the development and
operation of Industrial Parks in the City of Mexicali, Baja California, Mexico, including that known as Las Californias Industrial Park. 
 B. Mr. Jaime
Roberts Vildosola is its Legal Representative, as evidenced by in Public Instrument No. 230,465, volume 8965, dated September 28, 1987, executed before Attorney Francisco Lozano Noriega y Tomas Lozano Molina, Notary Public No. 87 of
Mexico City. 
 C. IAMSA’s registration number at the Federal Registry of Tax Payers is: IAM-870622-MF4. 
 D. The address at which it has its principal place of business is Km. 10.5 on Highway to San Luis, Rio Colorado, Sonora, Mexicali, Baja California, Mexico. 

E. IAMSA has established the “Palaco Industrial Park”, hereinafter referred to as the Industrial Park, and more specifically shown described on Exhibit
“A”, which is attached hereto and made a part hereof. 
 F. The parties desire to enter into a lease regarding lot number 5, block number 3 &
lot number 6 block East, with a total area of 20,892.22 square meters and a portion of the building located at Calzada del Oro #2001 int. 5 Parque Industrial Palaco, Mexicali, B.C. Zip Code 21600. The portion of the building which is subject of this
Lease Agreement is constructed as a basic shell with warehouse area of approximately 95,000 square feet, which consists of a portion of the warehouse of the “Scotsdale” building module 5 with a total area of 17,000 square feet (see Exhibit
“B”). This area includes production & warehouse (14,000 s.f.), parking, offices (1,500 s.f.), mezzanine (1,500 s.f.) and access to 2 loading docks. The property subject matter of this lease and the improvements, together shall
hereinafter be referred to as Leased Property. 
 G. IAMSA has previously applied for and obtained financial loans through Mexican and Foreign Banking and
Lending Institutions, with which funds, buildings and improvements located in the Industrial Park, are being constructed. 
 II.-COMPANY declares that: 
 A. It is organized under the Mexican General Corporation Law as per Public Instrument No. 22,079, Volume 349
executed on June 30, 1982, before Attorney Fernando Diaz Ceballos, Notary Public Number Four of the City of Mexicali, Baja California, properly registered in the Public Registry of Property and Commerce of this City of Mexicali, under number
2,039, on August 30, 1982. Such document was amended by means of Public Instrument Number 26,551, volume 511, dated January 8, 1987, before Attorney Eduardo Illades Villafana, Notary Public Number Six of the City of Tijuana, Baja
California, duly registered in the Public Registry of Property and Commerce of this City of Mexicali, Baja California, under number 5,339, pages 457, of volume XIII, First Book, Commerce Section, that contains the change of denomination to
INDUSTRIAL VALLERA DE MEXICALI, S. A. DE C. V. 
  

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 B. Mr. Sergio Tagliapietra Nassri verifies his capacity as attorney-in-fact of COMPANY as per the Public Instrument
No. 28,902 Volume 552 executed on November 27, 1987, before Attorney J. Eduardo Illades Moreno, Notary Public No. Six of the City of Tijuana, Baja California, properly registered in the Public Registry of Property and Commerce. 

C. Company’s registration number at the Federal Registry of Taxpayers is IVM-861027-KH1. 
 D. The address at which it has its principal place of business is precisely the Leased Property subject matter of this Agreement. 
 CLAUSES 
 I. SCOPE OF LEASE
AGREEMENT 
 On the express terms and conditions set forth hereinafter, the scope of this Lease Agreement is as follows: IAMSA hereby leases to COMPANY, and
COMPANY hereby leases from IAMSA the building in the Industrial Park as precisely described in Exhibit “B”, referred to above, which is attached hereto and made a part hereof, and the improvements as more specifically described in Exhibit
“C”. 
 It is expressly understood that COMPANY enters this agreement with the intention of fabricating “disposable medical products”.

 II. CONSTRUCTION BY IAMSA 
 A. All improvements to the Leased Property have been constructed in accordance with specifications approved by IAMSA and COMPANY. 
 B. IAMSA shall
perform all future improvements in accordance with all laws, ordinances, regulations, and orders of governmental authorities, and the Industrial Park Regulations which are attached hereto as Exhibit “D”. 
 C. IAMSA will proceed diligently with construction and completion of the improvements, so as to allow the use of previously designated areas for the purposes
contemplated and in accordance with the Specifications. 
 D. COMPANY shall have the right to require changes in the Specifications during the course of
construction provided that such changes do not unreasonably delay completion of Improvements and provided that COMPANY reimburses IAMSA upon demand for any additional costs incurred by IAMSA by reason of changes required by COMPANY. COMPANY hereby
waives the right to object to any delay in completion caused by said changes in Specifications. 
 E. The Leased Property shall be considered ready for
occupancy as of February 1st, 2001, on which date COMPANY will be able to use the Leased Property for those
purposes previously contemplated and in accordance with the Specifications. 
 IAMSA shall diligently complete or repair, as soon as possible, any items or
corrections not completed when the Leased Property is ready for occupancy. 
 F. Upon prior written consent of IAMSA, COMPANY may, at any time prior to the
commencement of the term hereof, at its sole risk, enter upon and install such trade fixtures and equipment in the Leased Property as it may elect. 
 G.
IAMSA hereby acknowledges that any and all construction improvements to be completed by IAMSA hereunder, either during the pre-lease term of afterwards, either with IAMSA’s employees or third parties contracted by IAMSA, will be the sole
responsibility of IAMSA and therefore guarantees and warrants to COMPANY that such employees and third parties will be in full compliance with all pertinent construction and Social Security, tax, labor and other applicable Mexican laws and
regulations. 
 III. INSTALLATIONS BY COMPANY 
 A. COMPANY may, at its expense, install on the Leased Property, such trade fixtures, equipment and furniture as it may deem necessary; provided that such items are installed and are removable without damage to the
structural integrity of the Building and Improvements. Said trade fixtures, equipment and furniture shall remain COMPANY’s property and unless COMPANY is in default hereunder, shall be removed by COMPANY upon expiration of the term hereof, or
earlier termination of this Lease. COMPANY may also install temporary improvements in the interior of the Building, provided that such improvements are installed and removed without damage to the structure of the Improvements. COMPANY shall repair,
at its sole expense, all damage caused by the installation or removal of such trade fixtures, equipment, furniture or temporary improvements. 
  

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 B. COMPANY shall perform all installations in accordance with all laws, ordinances, regulations, orders of government
authorities, and the Industrial Park Regulations which are attached hereto as Exhibit “D”. 
 IV. LEASE TERM AND COMMENCEMENT DATE. 
 A.- Lease Agreement. Commencement Date, February 1st, year 2001 until January 31, year 2006. 
 B.- Term.- The term of this Lease shall be for five years, binding for the parties,
commencing on the date stated in item A) above, and shall end on the last day of the last month of the 5th year of
the term, full lease year, as said term is hereafter defined. 
 C. Lease Year. The term “Lease Year” as used herein, shall mean a period of twelve
(12) consecutive full calendar months. The first Lease Year shall begin on the date of commencement of the term hereof or at occupancy of the Leased Property, if the date of commencement of the term hereof shall occur on the first day of a
calendar month; if not then the first Lease Year shall commence upon the first day of the calendar month following the date of commencement of the term hereof. 
 D. Renewal of Lease Agreement. It is understood that LESSEE shall have the right to extend the term of this lease agreement after termination of the original term. LESSEE shall notify LESSOR in writing, at least 180 days prior to the
termination of the original term, regarding it’s intention to exercise this option. If no written notice is received prior to such period, it is understood that the LESSEE has no intention to renew the lease and consequently shall immediately
proceed to vacate the premises was stated hereunder. It is also agreed that the payment rent during the first year of the extension period, will be the same in force during the last year of the original lease term, reflecting only the annual
increasing as established in Clause V, paragraph A of this lease agreement. 
 V. RENT. 
 A. Lease.- As fixed rent for the Lease of the Leased Premises during the Lease Term hereof, COMPANY shall pay to IAMSA the amount equivalent to [...***...] currency of the United States of America) equivalent to
[...***...] currency of the United States of America), plus the Value Added Tax, per square foot per month for Module 5 (17,000 s.f.), payable precisely in such currency or its equivalent in Mexican Currency at the rate of exchange prevailing
at the time of payment for the sale of dollars at Banco BITAL, Las Californias Branch. Such amount shall be payable in advance on the first day of each month, as of the first day of February of the year two thousand and one, at the address of IAMSA.
Said rent shall be adjusted annually to reflect the increase of the Los Angeles-Anaheim-Riverside Consumer Price Index on each anniversary of the lease term. 
 B. Maintenance fee. COMPANY shall pay a monthly maintenance fee for the building, which covers the costs of landscaping, public lighting, street up-keep, security guard, common area litter removal and external building maintenance, at the
rate of [...***...] per square feet plus the Value Added Tax, payable jointly with the monthly rent. Such fee shall be adjusted annually to reflect the increase of the Los Angeles-Anaheim-Riverside Consumer Price Index on each anniversary of
the lease term. 
 If such rent and maintenance fee are not paid within (5) days after the first day of any given month, it shall become delinquent and
late payment penalty will be applied of 5% of the monthly rent. 
 IAMSA and COMPANY hereby agree that maintenance for specific equipment such as A/C units,
compressors, electrical transformers, will be COMPANY’s sole responsibility. For such purpose, COMPANY will obtain a maintenance policy covering said specific equipment property of IAMSA and COMPANY shall assume all liabilities concerning
it’s own equipment. Further, COMPANY shall obtain an insurance on such equipment and improvements property of IAMSA, in an amount sufficient to provide for their replacement in the event of damage, naming IAMSA as the beneficiary. 

C. Notwithstanding the above statements, COMPANY will pay the rent provided for in the above, at the address of IAMSA as set forth in this Agreement, or at the
address of the banking financial institution or to any assignee of IAMSA, as IAMSA may direct, under the terms of Clause XIII of this Lease Agreement. 
 * Confidential Treatment Requested 
  

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 D. Prorate.- The rent for any partial month shall be prorated. 
 E. Liquidated Damages. Termination by IAMSA of this Lease Agreement due to a default of COMPANY, prior to or during the first six (6) months of the Lease Term, or
termination by COMPANY without cause, entitles IAMSA to apply as liquidated damages all sums paid or deposited by COMPANY, as prepaid rent or as a security deposit, in addition to any other rights of IAMSA provided for herein. 
 F. Setoff. The payment of any rent due under this Lease, shall not be withheld or reduced for any reason whatsoever, and COMPANY agrees to assert any claim, demand, or
other right against IAMSA only by way of an independent proceeding. 
 VI. USE. 
 The Leased Property shall be used and occupied for any Lawful industrial purpose not in violation of the Industrial Park Regulations attached hereto as Exhibit “D”. COMPANY shall promptly and adequately
comply with all laws, ordinances and orders of all governmental authorities affecting the Leased Property or that may be a menace to other occupants of the Industrial Park. 
 VII. INSURANCE. 
 A. Fire and Other Insurance.- Effective as of the date of commencement of the Lease, COMPANY will obtain
insurance covering the building, building improvements, its contents and third parties damages, in an amount sufficient to provide for their replacement. All insurance policies will name IAMSA as the beneficiary. If such policies are not obtained on
or before the commencement date, IAMSA will contract an insurance policy equivalent to cover such contingencies and COMPANY will be responsible to reimburse IAMSA the amount for the corresponding premiums immediately upon demand. 
 B. Form and Delivery of Policies.- Each insurance policy referred to in the preceding paragraphs shall be in a form approved by the Department of Finance and Public
Credit and written with one or more companies licensed to do insurance in Mexicali, Baja California, Mexico, and shall provide that it shall not be subject to cancellation or change, except after at least 30 days prior written notice to IAMSA. Prior
to the Commencement Date of the Lease Term, each of the parties shall procure and maintain such Insurance deemed necessary to cover its liabilities and property. COMPANY shall deliver to IAMSA the corresponding policies within thirty
(30) days following the date of signature of the agreement. 
 VIII. TAXES AND ASSESSMENTS. 
 With the exception of the income tax and fixed asset tax imposed on IAMSA, which shall be borne by IAMSA, COMPANY shall pay all taxes and assessments of every kind, which
are or may be at any time during the Leased Term levied against the Leased Property, the Lease Agreement, or COMPANY. All such taxes and assessments shall be paid by COMPANY, and receipt showing their payment delivered to IAMSA before such taxes and
assessments become delinquent. 
 All taxes which shall become due for the first and last years of the Lease Term shall be distributed proportionally between
IAMSA and COMPANY in accordance with the respective numbers of months during which each party shall be in possession of the Leased Property. COMPANY also agrees to pay all taxes and assessments of every kind levied upon any and all personal property
of COMPANY, its successors and assigns, whether same shall or may become a lien upon the Leased Property. All such taxes and assessments shall be paid by COMPANY before the same become delinquent. 
 IX. REPAIRS, ALTERATIONS AND IMPROVEMENTS. 
 A. IAMSA 
 1. After receipt of written notice from COMPANY, IAMSA, at its expense shall, with minimum interference of COMPANY’s normal use of
the Leased Property, diligently proceed to repair any structural defects in the roof or exterior bearing walls, as constructed by IAMSA, excepting normal use, wear and damage. IAMSA shall not be liable for any damages, and shall not be obligated to
make any repairs due to damages caused by any negligent act or omissions of COMPANY, its employees, agents, invitees or contractors. IAMSA shall have no other obligation to maintain or repair any other portion of the Leased Property, except for the
repair of those improvements constructed by IAMSA for COMPANY for a period of one year after its completion. IAMSA shall not be liable to COMPANY for any damage resulting from IAMSA’s failure to make repairs, unless COMPANY has notified IAMSA
of the need for such repairs, and IAMSA has failed to commence such repairs within seven (7) working days after said notice has been given and has failed to complete the same in a diligent manner in the case of urgent matters. 
  

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 2. If IAMSA fails to make the repairs described in Clause IX, “A”, COMPANY may, but shall not be required to,
make or cause such repairs to be made, and IAMSA shall, on demand, immediately pay to COMPANY the cost of the repairs. 
 B.
COMPANY 
 1. COMPANY, at its expense, shall keep and maintain in good order and repair, except for normal use and wear, all of the Leased Property, including
improvements, except for those obligations of IAMSA stated in paragraph “A”, 1, of this Clause including but not limited to, all plumbing, sewage and other utility facilities that are within the Leased Property, as well as fixtures,
partitions, walls (interior and exterior, including painting as often as necessary), floors, ceilings, signs, air conditioning, electric installations, heating, and similar equipment, doors, windows, plate glass and all other repairs to the Leased
Property. COMPANY at its expense, shall repair all leaks except those caused by structural defects in the roof and exterior walls. The plumbing facilities shall not be used for any other purpose than that for which they were constructed. The expense
of any breakage, stoppage or damage resulting from a violation of this provision, shall be borne by COMPANY. COMPANY shall store all trash only temporarily within Leased Property, and shall arrange for the regular pick-up of trash at COMPANY’s
expense. COMPANY shall not burn any trash of any kind in or about the Leased Property or the Industrial Park or near it. 
 2. COMPANY shall require
IAMSA’s written consent to make any alterations, improvements or additions to the exterior walls and roof of the Leased Property with a cost exceeding US$5,000.00 (FIVE THOUSAND DOLLARS 00/100 CURRENCY OF THE UNITED STATES OF AMERICA). COMPANY
shall not damage any floors, walls, ceilings, partitions, or any wood, stone or ironwork on or about the Leased Property in connection with the construction of any such alterations or improvements. 
 3. COMPANY shall keep the Leased Property free and clear of all encumbrances and liens arising out of acts or omissions of COMPANY, including those arising out of acts
or construction done or ordered by COMPANY. However, if by reason of any work performed, materials furnished or obligations incurred by COMPANY with any third party, or any other act or omission by COMPANY, IAMSA is made liable or involved in
litigation, COMPANY shall hold harmless and indemnify IAMSA including any costs and expenses, and attorney’s fee incurred by reason thereof. Should COMPANY fail fully to discharge any such encumbrances or liens within thirty (30) days
after the date the same appears of record or fail to provide a bond acceptable to IAMSA in case of litigation, IAMSA at its option, may pay all or any part thereof. If IAMSA pays any such lien or encumbrances or any part thereof, COMPANY shall, on
demand, immediately pay IAMSA the amount so paid, together with interest at the rate of 30 percent (30%) per annum from the date of payment. No lien or encumbrance any character whatsoever created by and act or omission by COMPANY shall in any
way attach or affect the rights of IAMSA over the Leased Property. Although, if COMPANY by any reason of any work performed, materials furnished or obligations incurred by IAMSA with any third party, or any other act or omission by IAMSA, COMPANY is
made liable or involved in litigation, IAMSA shall hold harmless and indemnify COMPANY including any costs and expenses, and attorney’s fee incurred by reason thereof. Should IAMSA fail fully to discharge any such encumbrances or leins within
thirty (30) days after the date the same appears or record or fail to provide a bond acceptable to COMPANY in case of litigation, COMPANY its option, may pay all or any part thereof. If COMPANY pays any such lien or encumbrances or any part
thereof, IAMSA shall, on demand, immediately pay COMPANY the amount so paid, together with interest at the rate of 30 percent (30%) per annum form the date of payment. 
 4. As stated in this Lease Agreement, COMPANY, at its expense, shall have active all the time (immediately after guaranties expire), a maintenance policy, for the all the equipment provided by IAMSA such as air
conditioning units and restrooms extractors; COMPANY shall deliver to IAMSA a copy of the existing maintenance policies, within twenty (20) days following the date of signature of this agreement. 
 5. LESSOE guarantees that all plumbing, sewage and other utility facilities that are within the Leased property and all the items referred on the above paragraph are
duly working at the time the COMPANY moves in. 
 X. UTILITY SERVICES 
 During the term of this Lease Agreement, COMPANY shall promptly pay for any and all public and other utilities services furnished to the Leased Property, including but
not limited to, water, gas, electricity, telephone and trash pick-up charges, and hook-up services. IAMSA will assist COMPANY in obtaining all such utility services if such becomes necessary. All contracts necessary for the installation of any
services to the leased property such as water, drainage and telephone hook up fees if any, as well as any KVA installation fees by the Mexican Federal Electric Commission and the electricity hook up fees usage charged will be totally paid by
COMPANY. 
  

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 XI. RIGHT-OF-WAY. 
 IAMSA is hereby granted a right-of-way upon, across, and under the Leased Property for ingress, egress, installations, replacing, repairing and maintaining all utilities, including but not limited to water, gas,
telephone, all electricity and any television or radio antenna system serving the Leased Property. By virtue of this right-of-way it shall be expressly permissible for the electrical and/or telephone companies to erect and maintain the necessary
poles and other necessary equipment on the Leased Property; provided, that in exercising any right IAMSA may have under Clause XI, IAMSA agrees to cause only a minimum interference with COMPANY’s use and possession by COMPANY of the Leased
Property. 
 XII. ASSIGNMENT AND SUBLETTING. 
 A. COMPANY shall
have the right, upon prior written authorization from IAMSA, to assign or transfer or sublease this Lease Agreement or any interest therein or to permit the use of the Leased Property to any person or company, provided however that in the event of
any such assignment, transfer or sublease, COMPANY shall remain liable for all its obligations under this Lease Agreement. It is expressly agreed by the parties, that taking into account that the guaranty letter herein attached is duly signed by
MASIMO Corporation, a Delaware Corporation, the above mentioned written authorization form IAMSA to assign to transfer or sublease this lease agreement, will not be necessary whenever the assignee or transferee is a company controlled or subsidiary
or pertaining to the same business group of MASIMO Corporation. In this event, the assign, transfer or sublease of this lease agreement will produce no extra charge, and shall be done under the same covenants herein agreed. 
 B. IAMSA shall have the right to assign and reassign, from time to time, any or all of the rights and obligations of IAMSA in this Lease Agreement or any interest
therein, without COMPANY’s consent, provided that no such assignment or reassignment shall impair any of the rights of COMPANY herein, and provided further, that IAMSA shall remain liable for all of its obligations under this Lease Agreement,
asserting directly against such assignee any defense, setoff, or counterclaims which COMPANY may have against IAMSA or any other person. However, COMPANY hereby specifically waives, with respect to withholding of rent, any preventive measures
intended to guarantee payment of such claim, as provided by the Code of Civil Procedures. 
 XIII. SUBORDINATION. 
 During the term of this Lease Agreement, IAMSA shall have the right to encumber its interest in the Leased Property or in this Lease Agreement for any purpose it deems
convenient and COMPANY shall and hereby does subordinate its interest in this Lease Agreement and in the Leased Property to such encumbrances. However, in the event such encumbrances are foreclosed upon or judicially enforced, the one who holds the
encumbrance shall agree to respect this Lease Agreement and accept the performance by COMPANY of its obligation hereunder. COMPANY shall execute any agreement which may be required by IAMSA in regard with such subordination and submit whatever
public finance data may reasonable be requested by any trust insurance company, bank or other recognized lending institution. 
 Once IAMSA notifies COMPANY
in writing that the former has assigned its interest in this Lease Agreement to any lending institution as security for a debt or other obligation of IAMSA, IAMSA shall not have the power to amend this Lease Agreement so as to reduce the rent,
decrease the term or modify or negate any substantial obligation of COMPANY in the terms hereof, or agree to rescind this Lease Agreement without the written consent of such lending institution. Such obligation shall continue until the lending
institution has notified COMPANY in writing that such assignment has been terminated, in the understanding that if IAMSA fails to obtain such lending institution’s approval to carry out the foregoing, the amendment of the terms above mentioned
shall have no effect whatsoever as against such lending institution. In addition, if the lending institution shall notify COMPANY in writing requiring the payment of rents hereunder directly to such lending institution or its representative, then
COMPANY shall be obligated to pay such lending institution or its representative each subsequent rental coming due under this Lease Agreement (together with any unpaid rent then past due), until the date on which such lending institution notifies
COMPANY authorizing payment of rent to IAMSA or other party entitled thereto. COMPANY understands and agrees that except for the advanced security deposit provided for in the Miscellaneous Section hereunder, at the request of IAMSA, shall provide a
statement that no advanced payment has been made; such document shall be binding upon COMPANY as against the lending institution to which this Lease Agreement may be assigned. In addition, the lending institution shall not be bound to recognize
those payments made to IAMSA after the COMPANY has received notice requiring payments to be made to such lending institutions. 
  

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 XIV. ACCESS TO LEASED PROPERTY. 
 Without undue interference to COMPANY’s operation, IAMSA or its authorized representatives shall have the right to enter the Leased Property during all COMPANY
business hours, and in emergencies at all times, to inspect the Leased Property and to make repairs, additions or alterations to the Leased Property. For a period commencing ninety (90) days prior to the termination of this Lease Agreement,
IAMSA shall have access to the Leased Property for the purpose of exhibiting it to prospective tenants and may post usual “For Sale” or “For Lease” signs upon the Leased Property and COMPANY shall have the right to accompany any
representatives of IAMSA and prospective tenants. 
 XV. DAMAGE OR DESTRUCTION. 
 A. Total.- In the event that the whole or a substantial part of the Leased Property is damaged or destroyed by fire, act of nature, or any other cause, so as to make COMPANY unable to continue the operation of its
business, IAMSA and COMPANY shall, within ten (10) days from such destruction, determine whether the Leased Property can be restored within the following four (4) months. If IAMSA and COMPANY determine that the Leased Property cannot be
restored within four (4) months, either IAMSA or COMPANY shall have the right and option to immediately terminate this Lease Agreement, by advising the other thereof by written notice. If IAMSA and COMPANY determine that the Leased Property can
be restored within said four (4) months, IAMSA shall proceed diligently to reconstruct the Leased Property, without obligation to COMPANY for payment of rents during such reconstruction period and until such time that the Leased Property is
delivered to COMPANY. In the event of total damage occurs, and a reconstruction period take place, IAMSA will put its best efforts to re-locate COMPANY to another IAMSA property as it may be available, only for the reconstruction period, and in
order to help COMPANY with its continuing operations. 
 B. Partial.- In the event the said damages were caused only to a portion of the Leased Property and
that said destruction does not prevent COMPANY from continuing the normal operation of its business on the Leased Property, IAMSA and COMPANY shall repair said damage, each party reconstructing that portion of the Improvements for which it was
responsible in the original construction, providing that during the period corresponding for the repair and restoration of IAMSA’s Improvements, the rent payable hereunder by COMPANY shall be equitably prorated to the interference with
COMPANY’s use and possession of the Leased Property caused by such damage and repairs. 
 XVI. LIMITATION OF LIABILITY. 
 Except for intentional or negligent acts or omissions of IAMSA, its agents or employees, IAMSA shall not be liable to COMPANY or to any other person whatsoever for any
loss or damage of any kind or nature caused by the intentional or negligent acts or omissions of COMPANY or other occupants of the Industrial Park or of adjacent property, or the public, and other causes beyond the control of IAMSA, including but
not limited to any, failure to furnish or any interruption of any utility or other services in or about the Leased Property. COMPANY recognizes that additions, replacements and repairs to the Industrial Park will be made from time to time, provided
that the same shall not substantially interfere with COMPANY’s use and enjoyment of the Leased Property. 
 XVII. INDEMNIFICATION. 
 COMPANY agrees to indemnify and save IAMSA harmless from any injury or damage, or lawsuit of any kind or nature whatsoever, arising from any negligent acts or omissions
of COMPANY, or its contractors, licensees, agents, invitees or employees, or arising from any accident, injury or damage whatsoever caused to any person or property occurring in or about the Leased Property, or the areas adjoining the Leased
Property, and from and against all costs and expenses, including attorney’s fees, incurred thereby. 
 IAMSA indemnifies and holds COMPANY harmless from
any injury or damage to COMPANY or its agents or employees, and from any and all liability for injury to third persons, or damage to the property by third persons while lawfully upon the Leased Property, occurring by reason of any negligent acts or
omissions of IAMSA, its agents or employees, and from and against all costs, and expenses, including attorney’s fees, incurred thereby. 
 XVIII.
NOTICES. 
 All notices under this Lease Agreement shall be forwarded to the addresses of the parties mentioned in the Recitals above or such other address as
may from time to time be furnished by the parties hereto. Said notices shall be in writing and shall be deemed given fourteen (14) days after the date sent by mail, or personal delivery if applicable. Duplicate notices shall be sent by
certified airmail, postage prepaid, to such additional addresses as may from time to time be requested in writing by the parties hereto. 
  

 - 7 - 

 XIX. COMPANY’s DEFAULT. 
 A. Each of the following shall be a default of COMPANY: 
 1. Vacating or abandonment of the Leased Property. IAMSA shall consider the building abandoned when COMPANY closes its operation, terminates all employees and stops making payment of rent for one or more months. Under
such circumstances IAMSA may proceed to take over the building after notifying COMPANY under the terms hereunder provided, and no answer is received for a period of fifteen (15) days following such notice. For such purpose, IAMSA is hereby
expressly authorized by COMPANY to request the competent Court under a voluntary jurisdiction procedure to be given possession of the building using any legal means provided by Law, and expressly waiving COMPANY the right to be notified due to prior
notice of abandonment. This procedure shall be observed independently of any other remedies of IAMSA as provided hereunder. Consequently COMPANY hereby expressly consents and submits to such action, waiving expressly any action to file any claim
against IAMSA and/or its representatives for any such taking over. 
 2. Failure to pay any installment of rent due and payable hereunder
upon the date when said payment is due, as provided for in clause “V”, paragraph “A” hereunder, following fourteen days after COMPANY receives written notice. 
 3. Default in the performance of any covenant, agreement or obligation hereunder, said default, except for default in the payment of rents, continuing
for fifteen (15) days after written notice thereof is given by IAMSA to COMPANY (or for any reasonable period necessary for COMPANY to cure said default given by IAMSA); 
 4. A general assignment by COMPANY for the benefit of creditors; 
 5. The filing of a voluntary petition in bankruptcy by COMPANY or the filing of an involuntary petition by COMPANY’s creditors, said petition remaining undischarged for a period of ninety (90) days;

 6. The appointment of a Receiver to take possession of substantially all of COMPANY’s assets or of the Lease Property, said
receivership remaining undissolved or unstayed for a period of thirty (30) days; or 
 7. Failure by COMPANY to comply with any and all
applicable laws and regulations of any Environmental Agency of the Government of Mexico, in connection with the use or operation of any equipment by COMPANY that may be considered as contaminating by such Governmental Office, and failure to comply
with any and all recommendations so given by said Governmental Office in connection therewith. 
 B. Upon the occurrence of any of the foregoing defaults,
IAMSA shall have the right, at its option, and in addition to other rights or remedies granted by law, including the right to claim damage, to immediately rescind this Lease Agreement and evict COMPANY from the Leased Property, independently of the
right granted under paragraph A-1) of this Clause. 
 XX. RIGHT TO CURE DEFAULTS. 
 In the event of COMPANY’s breach of any term or provision herein, (except payment of rents and maintenance fee) IAMSA may, without any obligation to do so, at any time after ten (10) days written notice,
cure such breach or default or make repairs to the Leased Property, for the account and at the expense of COMPANY. If IAMSA, by reason of such breach or default, pays any money or is compelled to incur any expense including attorney’s fees, the
sums so paid or incurred with all interest, cost and damages, shall be paid by COMPANY to IAMSA on the first day of the month after such expenses are incurred. 
 If any installment of rent or any other payment is not paid promptly when due, it shall bear interest of five percent (5%) percent per month from the date on which it becomes delinquent until paid in full. This provision is not
intended to release COMPANY from any defaults in the making of any payment at the time and in the manner herein specified. The foregoing interest, expenses and damages shall be recoverable from COMPANY by exercise of IAMSA’s right to recover
damages under this Clause XX. Nothing in this Clause XX affects the right of IAMSA to indemnification by COMPANY in accordance with Clause XVII above, for liability arising prior to the termination of this Lease for personal injuries or property
damage. 
 XXI. WAIVER. 
 In the event IAMSA or COMPANY does not
compel the other to comply with any of the obligations hereunder, such action or omission shall not be construed as a waiver of a subsequent breach of the same or any other provision. Any consent or approval shall not be deemed to waive or render
unnecessary the consent or approval of any subsequent or similar act by COMPANY or IAMSA. 
  

 - 8 - 

 XXII. CERTIFICATES. 
 Within ten (10) days of receipt of a written request made by IAMSA, COMPANY shall deliver to IAMSA a statement in writing certifying that this Lease Agreement is unmodified and in full force and effect (or if
there have been modifications, that the same are in full force and effect as modified); the dates to which the rent and any other charges have been paid in advance; and that IAMSA’s Improvements have been satisfactorily completed. It is
intended that any such statement may be relied upon by any person, prospective purchaser or lending institution interested in the Leased Property. 
 XXIII.
HOLDING OVER. 
 If COMPANY should remain in possession of the Leased Property, due to COMPANY’s omission or negligence, after the expiration of this
agreement, COMPANY shall pay IAMSA a conventional monthly penalty equal to one hundred and twenty percent (120%) of the amount of the monthly rent, as of the expiration date of the Lease Agreement until COMPANY has delivered to IAMSA possession
of the Leased property or executed a new Lease Agreement. This provision shall not be construed as granting any right to COMPANY to remain in possession of the Leased Property after the expiration of the Lease Term. COMPANY shall indemnify IAMSA
against any loss or liability resulting from the delay by COMPANY in surrendering the Leased Property, at the expiration of this Lease Agreement, waving any right granted by law. 
 XXIV. SURRENDER. 
 On the last day of the term of this Lease Agreement, or the sooner termination thereof pursuant to other
provisions hereof, COMPANY shall quit and surrender the Leased Property, broom clean, in good condition together with all alterations, additions and improvements that may have been made to the same, except furniture, machinery and equipment owned by
COMPANY. Upon the termination of this Lease Agreement, COMPANY, unless it is in default hereunder, shall immediately remove all of its property, and all property not removed shall be deemed abandoned by COMPANY. At all times COMPANY shall
immediately repair any and all damage caused to the Leased Property by the removal of COMPANY’s property. 
 XXV. QUIET ENJOYMENT. 
 IAMSA agrees that COMPANY, upon paying the rent and all other charges provided for herein and upon complying with all of the terms and provisions of the Lease Agreement,
shall lawfully and quietly occupy and enjoy the Leased Property during the Lease Term. 
 XXVI. MISCELLANEOUS. 
 A. This document contains all of the agreements and conditions made between the parties, and may not be modified orally or in any matter other than by a written agreement
signed by the authorized representatives of the parties. 
 B. If any term, covenant, condition or provision of this Lease, or the application thereof to any
person or circumstance, shall to any extent be held by a court of competent jurisdiction, to be invalid, void or unenforceable, the remaining terms, covenants, conditions or provisions of this Lease or the application thereof to any person or
circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 
 C. In the event that either party should
bring an action against the other party for the possession of the Leased Property, or for the recovery of any sum due hereunder, or because of the breach of default of any covenant in this Lease Agreement, the prevailing party shall have the right
to collect from the other party its relevant costs and expenses, including attorney’s fees. 
 D. Every payment and obligation required by this Lease
Agreement, shall be paid and performed on the date specified for such payment or performance and no delay or extension thereof shall be permitted. 
 E. The
titles and subtitles to the Clauses of this document shall have no effect on the interpretation of the terms and provisions contained in this Lease Agreement. 
 F. Advanced Payment. IAMSA hereby acknowledges having received from COMPANY the amount of $[...***...] as a three month security deposit and $[...***...] for first month rent. Deposit will not be applied to the last month’s
rent and will be returned in full after COMPANY has no payments due at the end of the lease contract. 
 G. The parties agree that this Lease Agreement shall
be governed by the Laws of the State of Baja California. For everything pertaining to the interpretation and compliance of this Lease Agreement, the parties thereby expressly submit to the 
 * Confidential Treatment Requested 
  

 - 9 - 

 
jurisdiction of the Civil Courts of the City of Mexicali, Baja California, expressly waiving any other jurisdiction which might be applicable by reason of
their present or future domiciles or otherwise. 
 H. Whenever the prior consent of either party, written or otherwise, is required as a condition for the
execution of any act by the other party, such party agrees not arbitrarily to withhold such consent. 
 I. Each party shall execute such further documents as
shall be requested by the other party, but only to the extent that the execution of said documents is to give legal effect to the rights set forth in this Lease Agreement. 
 J. Submission of this instrument for examination or signature by COMPANY does not constitute a reservation of or option to lease, and it is not effective as a Lease Agreement until execution and delivery by both IAMSA
and COMPANY. 
 K. This Lease and each of its covenants and conditions shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors or assignees, subject to the provisions hereof. Whenever in this Lease a reference is made to IAMSA, such reference shall be deemed to refer to the person in whom the interest of the lessor hereunder shall be vested. Any
successor or assignee of COMPANY who accepts an assignment of the benefit of this Lease and enters into possession of enjoyment hereunder, shall thereby assume and agree to perform and be bound by the covenants and conditions hereof. 
 L. This Agreement and each and all of its stipulations as drafted, are for the sole and exclusive use by IAMSA with its lessees. Its contents shall not be disclosed to
or used by other parties, for any other purpose whatsoever. 
 M. All Exhibits mentioned hereunder shall be signed by all parties involved, and shall be
enforceable together with Lease Agreement. 
 N. COMPANY shall assure that a GUARANTY (see Exhibit “E”) is given by “MASIMO Corporation”
to insure the adherence by COMPANY of all of the conditions, covenants, obligations, liabilities and agreements set forth in this Lease Agreement. 
 O. This
Lease Agreement shall be executed in both English and Spanish, and that in case of any controversy arises, the Spanish version will prevail over the English one. 
 IN WITNESS WHEREOF, the parties have executed this Lease Agreement in the City of Mexicali, State of Baja California, Mexico, on the        day of January, year two thousand and one. 

 

					
	 INDUSTRIAS ASOCIADAS
 MAQUILADORAS, S.A. DE
C.V.
	 		  	 INDUSTRIAL VALLERA DE
 MEXICALI, S.A. DE
C.V.

			
	 /s/ Ing. Jaime Roberts
	 		  	 /s/ Ing. Sergio Tagliapietra Nassri

	Ing. Jaime Roberts	 		  	Ing. Sergio Tagliapietra Nassri
	Legal Representative	 		  	Legal Representative
			
		 	WITNESSES:	  	
			
	 /s/ Juses Gutiz
	 		  	  

  

 - 10 - 

 

 
 EXHIBIT C 
 BUILDING IMPROVEMENTS 
 OFFICE AREA: 
  

	 	•	 	Lighting 

  

	 	•	 	A/C Unit 

  

	 	•	 	Vinyl tile floors 

  

	 	•	 	Drop ceiling 

  

	 	•	 	Restrooms 

 PRODUCTION AREA: 
  

	 	•	 	Restrooms (up to 75 employees) 

  

	 	•	 	A/C 

  

	 	•	 	225 KVA electrical substation w/transformer 

  

	 	•	 	Lighting 

  

	 	•	 	One drinking fountain w/sink 

 BUILDING FEATURES 
  

	 	•	 	1,500 s.f. of mezzanine space 

  

	 	•	 	15,000 s.f. office space with two private rooms and one open area 

  

	 	•	 	Two loading docks in production area 

  

	 	•	 	R-19 roof insulation in all of module 

  

	 	•	 	Sealed floor with Ashford sealer 

  

 C-1 

 EXHIBIT D 
 01/10/01 
 INDUSTRIAL PARK REGULATIONS 
 INDUSTRIAS ASOCIADAS MAQUILADORAS, S.A. DE C.V. 
  

 D-1 

 I. OBJECTIVE 
 This document has been prepared to assure proper development and use of the land at IAMSA INDUSTRIAL PARK. It is intended to defend the benefits offered to companies that arrive to form a part of the community of our
Park. The information as presented does not interfere and shall be incorporated to the rules and regulations established by Governmental Authorities that rule regulate the development and services in the City of Mexicali, Baja California.

 All designs for amendments concerning remodeling or adaptations of new elements to the building, offices, signs and symbols, landscaping, parking spaces,
pavements, subdivisions, location and relocation of equipment, loading and unloading zones, exterior illumination, etc., must be submitted for review before such changes are made, to the Park Administrator for approval and if such be necessary, for
the approval of the corresponding governmental office. 
 II. CRITERIA FOR USE OF LAND 
  

	A.	Acceptable Uses.- Light industry (research and development) or warehousing subject to the following restrictions: 

  

	 	1.	Use or operation must be performed or executed within the building. 

  

	 	2.	No user or operations, or uses that produce or cause the following effects will be allowed: 

  

	 	a)	Intense noise, sounds or vibration 

  

	 	b)	Unpleasant or repulsive odors. 

  

	 	c)	Dust, dirt, ashes, smoke or any other source of environmental contamination. 

  

	 	d)	Unusual fire or hazardous explosives 

  

	 	e)	Electromagnetic interference 

  

	 	f)	Residual contaminated water or hard to recycle. 

  

	B.	Special uses.- The following uses are a support to the Industrial Park and shall be submitted to our Group to be approved if such are justified: 

  

	 	1.	Office Buildings related with, or as support to the activities generated within the Industrial Park. 

  

	 	2.	Places designed for the consumption and retail sale of food to the general public. 

  

	 	3.	Prohibited Uses of land.- The following uses are not permitted: 

  

	 	4.	Residential 

  

	 	5.	Haul yards for mobile houses and recreational vehicles. 

  

	 	6.	Bus Terminals 

  

	 	7.	Deposit yards for dismantling of vehicles or machinery or business for automobile used parts, etc. 

  

	 	8.	Commercial excavating for extraction of construction materials. 

  

	 	9.	Drilling for extraction of petroleum, gas, or other carbohydrate substances. 

  

	 	10.	Raising of Livestock or other animals 

  

	 	11.	Activities related to the reproduction, incubation, storage and sacrifice of animals as well as processing of fat, bones, meat or remains of this same activity.

  

	 	12.	Refining of petroleum and its derivatives. 

  

	 	13.	Auctions or sales to the public in general, except prior approval from IAMSA Group in writing in the Agreement. 

  

	 	14.	Production or manufacture of cement, lime, asphalt, gypsum, fireworks, natural resins, etc. 

  

	 	15.	Processing of sugar and its derivatives 

  

	 	16.	Cemeteries 

  

	C.	IAMSA will establish the mechanisms to regulate unpleasant odors, noses, smoke, residues, residual water, remains, and in general waste materials, and other problems that may affect
the operation of the Park, its image or property. 

 III. SPACE ALLOCATION AND DIMENSIONAL STANDARS

  

	A.	Lot sizes.- The size of the lots was determined by IAMSA and shall not be subdivided under any circumstances without approval. 

  

	B.	Construction Factors.- The ratio of the areas constructed as to the site is as follows: 

  

 D-2 

	 	1.	Maximum area constructed 60% 

  

	 	2.	Minimum open area 40% 

  

	 	3.	Parking: as per architectural project 

  

	C.	Heights.- Maximum height of any structure is 12 meters (approximately = 40 feet) 

  

	D.	Limits.- The following measures are minimal and are originated at the limit of the property. 

  

	 	1.	The front yard is established in 6 meters approximately (approximately 20 feet). This space is for landscaping, decorative fence (optional), sidewalks, driveway and company logos.

  

	 	2.	Side yard: 6.0 meters 

  

	 	3.	Back yard: 6.0 meters 

  

	E.	Loading Areas and Outdoor Storage 

  

	 	1.	Loading areas: Each building has been allotted sufficient space for truck parking within each lot. The streets may be used only for maneuvering. 

  

	 	2.	Outdoor storage.- Must be approved by IAMSA and if so authorized, must preferably be located in the back yard. This area must be protected with a visual screen approved by IAMSA.

  

	 	3.	Wastes and trash.- There may not be visible accumulation of trash and waste materials. The areas designated to store, accumulate and pick up trash shall be behind a visual screen,
as well as the area so as to prevent to be visible from the streets. 

  

	 	4.	Rest areas.- Each occupant shall provide an open green are for their employees. 

  

	 	5.	Non-specified areas.- Any area without any specific use will be allowed as green are or covered with gravel. 

  

	F.	Parking areas.- No parking will be allowed in the street, consequently each construction project shall provide with adequate space for parking outside the street for specific need
of each user. 

  

	  	The user has the obligation to mark visitors and employees parking spaces. The parking areas shall have adjacent space for landscaping and screens to minimize its visual impact.

  

	G.	Design Characteristics.- Design characteristics shall be considered as an environmental element. All characteristics of design including installations for outside lighting must be
approved by IAMSA. Designs include benches, shades, canopies, signs, posts, fountains, sculptures, etc. 

 IV.
BUILDING DESIGN 
  

	A.	Concept of Site Plan 

  

	  	A wide variety of architectural designs and materials are permitted, provided that there is harmony with the exterior design of the building, excluding all constructions that
disrupt the environmental harmony. 

  

	B.	Facades 

  

	  	The colors, materials, exterior finishing, and forms used in the building shall be in the same height levels. The exterior walls may be concrete block without finishing, smooth
concrete finishing, “pre-cast” concrete or a similar approved material. Corrugated or metal sheets, asbestos, or similar materials will be restricted for walls, except with the approval of IAMSA. 

  

	C.	Mechanic Equipment 

  

	  	All mechanic equipment such as ducts, ventilators, extractors, air-conditioning units and ventilators, including those on the roof, shall be hidden with screen that forms a part of
the architectural design to minimize visibility. 

  

	D.	Non-decorative Fences, block and brick walls. 

  

	  	These may only be used in the limits with adjacent and/or rear lots. May be used only if necessary in restricted green areas. The use of tin, wood, smooth concrete, chain link wire,
etc. is restricted. It is required to use materials with architectural criteria similar to the existing buildings. It is permitted to use chain link fences only in side and rear limits. 

  

	E.	Signs 

  

	  	The installation or alteration of exterior signs including traffic sign, shall be submitted and approved by IAMSA. Under no circumstances or purpose will be authorized the placing
of advertising or canvas signs in the exterior of the building, on the fence or in any manner that alter the image of the building or its surroundings. For such purpose, the occupant, owner or lessee of the building shall at all times, request
authorization from IAMSA prior to the execution of such actions. 

  

 D-3 

	F.	Exterior installation of the Name of the Company 

  

	  	It is the obligation of each lessee, to install for its own account the name of the Company in the area designated for such purpose. Such shall be of individuals acrylic letters,
with the following measures: 32 inches height, and width proportional to the letter. Thickness, 2 inches. 

 V. MAINTENANCE 
 Fees.- A maintenance fee will be charged to all occupants of the Park, as may be established in the Lease, Sublease, Sales
Agreements, or any other type of agreement. The total cost will include maintenance of the streets, landscaping, public lighting and sport areas. 
 VI. SUPERVISORY COMMITTEE 
 IAMSA has organized a Supervisory Committee consisting of three members, one an OCCUPANT of the
Park and two representatives of IAMSA, with all Supervisory faculties regarding compliance with these Regulations, and to assure that the installations of their establishments do not represent a nuisance to occupants, or that cause deterioration to
such property and to the Park installations. 
 The Supervisory Committee will have the following functions and faculties:

  

	 	a)	Supervise the exact compliance of the obligations established in these Regulations. 

  

	 	b)	Notify IAMSA of any deficiencies and violations to the stipulations of these Regulations. 

  

	 	c)	Impose the corresponding sanctions. 

  

	 	d)	The Committee will notify IAMSA any violations to the Regulations as well as the sanctions imposed so as to allow IAMSA to take the necessary measures to enforce such sanctions.

  

	 	e)	The faculties established by the Committee will be exercised by any two members of the Committee. 

  

	 	f)	Once the Committee notifies an occupant, with a copy to IAMSA regarding any violation of the rules established in these Regulations or in the Agreement executed between the parties,
IAMSA through its representatives, shall proceed to request the occupant to remedy such violation within a period of three to thirty days, as established hereinafter. 

 VII. SANCTIONS FOR VIOLATION TO THE OBLIGATIONS IN THESE REGULATIONS. 
  

	A.	For the imposition of the sanctions the following procedure will be observed: 

  

	 	1.	The Committee through its representatives upon becoming aware of any violation to the Regulations, shall request the occupant of the Park to remedy the violation within the term
that such Committee establishes, considering the nature of the violation, by means of a written notice specifying the violation and in such case the term to remedy the same. 

  

	 	  	If the occupant does not remedy the violation within the term established by the Committee, the occupant will be imposed the sanctions established in section 3 of this Chapter VII.

  

	 	2.	The penalties or sanctions will vary depending on the nature of the action or the omission of the occupant, as follows: 

  

	 	a)	For establishing without prior authorization from IAMSA office buildings related with or as support for activities generated in the Industrial Park and/or spaces for the consumption
and sale of food to the public, 30 minimum wages 

  

	 	b)	For prohibited uses of the building, as established in Chapter II, C of these Park Regulations, 40 to 60 minimum wages; 

  

	 	c)	For outdoor storage, garbage and trash, and allow street parking of automobiles, as provided for in Chapter III, fractions 3, 4 and 7 of these Park Regulations, 40 minimum wages;

  

	 	d)	Independently of the sanctions established in the preceding paragraphs, the occupants will be imposed the following sanctions: 

  

	 	i.	For non-compliance with the stipulations of Chapter II of these Regulations, with no specific sanction, 30 to 90 minimum wages per day following the time limit established to remedy
such violation by the Supervisory Committee. 

  

 D-4 

	 	ii.	For non-compliance with the stipulations of Chapter III of these Regulations, with no specific sanction, 40 to 90 minimum wages per day following the time limit established to
remedy such violation by the Supervisory Committee. 

  

	 	iii.	For non-compliance with the stipulations of Chapter IV of these Regulations, with no specific sanction, 40 to 90 minimum wages per day following the time limit established to remedy
such violation by the Supervisory Committee 

  

	 	e)	If the occupant fails to remedy the violation within the specified term, a penalty will be imposed that shall not be less than twice the initial sanction determined.

  

	 	f)	In the event that the occupant, notwithstanding request made, and sanctions and penalties imposed, fails to remedy the violation and pay the amount of sanctions imposed within the
specified term, IAMSA is authorized to: 

  

	 	i.	Remedy the situation omitted by occupant, and 

  

	 	ii.	Execute any actions that may legally proceed to obtain reimbursement of expenses that IAMSA may have incurred, as well as the amounts for penalties due to noncompliance, including
attorney’s expenses and fees due to such actions. 

  

	 	g)	The occupant agrees that the sanction imposed due to any noncompliance, will not be enforced provided that such violation is remedied within the period of time determined by the
Committee, otherwise the occupant in the same manner agrees, for the purposes of the preceding paragraph f), that such sanction be increased in 200% for each ten (10) days elapsed as of the expiration of the time due for payment of sanctions.
In the event of continuance in delay for more than thirty (30) days, IAMSA will proceed to exercise any actions to obtain compliance, if necessary through judicial procedures, as stated above, in which case occupant will be obligated to pay
attorney’s fees and any other expenses generated. 

  

	 	h)	It is perfectly understood that sanctions are established taking into account that noncompliance by the occupants of the Industrial Park represent an additional expenses to the
PARK. If the delinquent party does not proceed under the terms required, IAMSA will reasonably proceed to remedy such noncompliance on behalf of defaulting party, and to enforce the penalty imposed, in addition to obtaining reimbursement of any
expenses incurred thereby. 

  

	 	i)	It is understood that the amounts received as sanctions or any remaining amounts will be applied to cover costs originated in the correction or repair of any violation.

 VIII. DAYCARE CENTER 
 A fee will be applied for each child that the company has using the services of the Day Care Center (“Guarderia Infantil Las Californias”). This fee ** will be determined by the Board of the Civil Association which is formed by
one member of each company located in the Park. 
 IX. AMENDMENTS 
 This document will be amended eventually by the management of IAMSA together with the Committee, in order to keep it updated, due to changes that may become necessary.

 The amendments will be delivered to occupants within ten (10) days following such amendment. The occupant expressly agrees to submit and act under
the terms of these Regulations and its amendments, and to submit to the determinations of the Committee for the benefit of its property, its security and that of its employees and neighbors. Further, the occupant agrees to perform in accordance with
such rules in order to improve its installations and maintain the value of its property. 
  

			
	INDUSTRIAS ASOCIADAS MAQUILADORAS, S. A. DE C. V.
		
	By:	 	 /s/ J. Ruiz

	
	APPROVED AND EXPRESSLY ACCEPTED:
		
	By:	 	 /s/ Gary Waite

		 	Gary Waite 08 Feb 2001

  

 D-5 

 

 
 EXHIBIT E 
 GUARANTY 
 The Undersigned MASIMO Corporation, a Delaware Corporation, (hereinafter referred to as
“Guarantor”), in consideration of the leasing of the Premises described in that certain Lease (hereinafter referred to as “Lease”) dated 1st day of February year 2001, between Industrias Asociadas Maquiladoras, S.A. de
C.V., a Mexican corporation, whose address Km. 10.5 Carretera a San Luis R.C., Mexicali, B.C., México, as Landlord (hereinafter referred to as “Landlord”), and Industrial Vallera de Mexicali, S.A. de C.V., a mexican
corporation, as tenant (hereinafter referred to as “Tenant”), does hereby convenant and agree as follows. 
  

	A)	The undersigned does hereby guarantee the full, faithful and timely payment and performance by Tenant of all of the payments, covenants and other obligations of Tenant under the
pursuant of the Lease. If Tenant shall fail at any time in the payment of any rent or any other sums, costs, or changes whatsoever or in the performance of any of the other convenants and obligations of Tenant under or pursuant to the Lease and fail
to cure such default with 14 day notice the time provided in the Lease, then the guarantor, at its expense, shall on demand of Landlord fully and promptly, and well and truly, pay all rent, sums, costs and charges to be paid by Tenant under or
pursuant to the Lease as obligations to be performed by Tenant under or pursuant to the Lease and, in addition, shall on Landlord’s demand pay to Landlord any and all sums due to Landlord pursuant to the lease including all interest and late
charges on past charges on past due obligations of Tenant, reasonable costs advanced by Landlord, and all damages and reasonable expenses (including attorney fees and litigation costs), that may arise in consequence of Tenant’s default.

  

	B)	The obligations of the guarantor hereunder are independent of, the obligations of Tenant. A separate action or actions may, at Landlord’s option, be brought and prosecuted
against the guarantor undersigned, whether or not any action is first or subsequently brought against Tenant, or whether or not Tenant is joined in any such action, and undersigned may be joined in any action or proceeding commenced by Landlord
against Tenant arising out of, in connection with or based upon the Lease. The undersigned waives any right to require Landlord to proceeding against Tenant or pursue any other remedy in Landlord’s power whatsoever, any right to complain of
delay in the enforcement of Landlord and/or prior action by Landlord of any nature whatsoever against Tenant, or otherwise. 

  

	C)	This Guaranty shall remain and continue in full force and effect and shall not be discharged in whole or in part notwithstanding (whether prior or subsequent to the execution
hereof) any alteration, renewal, extension, modification, amendment or assignment of or subletting permitted under, the Lease. The undersigned hereby waives notices of the any of the foregoing, and agrees that the liability of the undersigned
hereunder shall debased upon the obligations, of Tenant set forth in the Lease as the same may be altered, renewed, extended, modified, amended or assigned. For the purpose of this Guaranty and the obligations and liabilities of the undersigned
hereunder, “Tenant” shall be deemed to include any and all assignees, subtenants, permittees or other directly or indirectly operating or conducting a business in or from the Premises, as fully as if any of the same were the named Tenant
under the Lease. 

  

	D)	The undersigned’s obligations hereunder shall remain fully binding although Landlord may have waived one or more defaults by Tenant, extended the time of performance by Tenant,
released, returned or misapplied other collateral at any time given as security for Tenant’s obligations. 

  

 E-1 

 

 
 E) This Guaranty shall remain in full force and effect notwithstanding the institution by or against Tenant of bankruptcy,
reorganization, readjustment, receivership, or insolvency proceedings of any nature, or the disaffirmance of the Lease in any such proceedings or otherwise. 
 F) If this Guaranty is signed by more than one party, their obligations shall be joint and several, and the release of one or such guarantors shall not release any other such guarantors. 
 G) Neuter terms should also refer, where applicable, to the feminine gender and the masculine gender; and the singular reference shall also include the plural of any
word if the context so requires. 
 H) This Guaranty shall be applicable to, binding upon and inure to the benefit of the heirs, executors, administrators,
representatives, successors and assigns of Landlords and the undersigned Landlord may, without notice, assign this Guaranty in whole or in part in connection with Landlord’s assignment of its inters under the Lease. 
 I) In the event the Landlord should institute any suite against the undersigned for violation of or to enforce any the convenants or conditions of this Guaranty or to
enforce any right of Landlord hereunder, or should the undersigned institute any suit against Landlord arising out of in connection with this Guaranty, or should either party institute a suit against the other for a declaration of rights hereunder,
or should either party intervene in any suit in which the other is a party to enforce or protect its interest or rights hereunder, the prevailing party in any such suit shall be entitled to the fees of its attorney(s) in the reasonable amount
thereof, to be determined, by the court and taxed as a part of the costs therein. 
 J) The execution of this Guaranty prior to execution of the Lease shall
not invalidate this Guaranty or lessen the obligations of Guarantor(s) hereunder. 
 K) This Guaranty is made pursuant to, and shall be interpreted and
applied in accordance with, the Laws of the State of California. 
 L) This Guaranty supercedes and replaces any and all
previous letters of guaranty. 
 IN THE WITNESS WHEREOF, the undersigned has executed this Guaranty this 1st day of February 2001. 
  

	
	GUARANTOR
	
	 /s/ Gary Waite

	Gary Waite
	
	Vice-President
	WITNESSES
	A        Corporation

  

 E-2 

 [LOGO OF MASIMO] 
 March 14, 2006 
 Mr. Jose Luis Faus 
 Legal
Representative 
 Industrias Asociadas Maquiladoras, S.A. de C.V. 
 P.O. Box 3159 
 Calexico, CA   92231 
 Dear
Mr. Faus: 
 The following letter documents the agreement of Industrias Asociadas Maquiladoras, S.A. de C.V. (“IAMSA”) and Industrial
Vallera de Mexicali, S.A. de C.V. (“IVEMSA”), to renew the Lease Agreement signed between IAMSA and IVEMSA on February 1, 2001 (the “Agreement”), for one additional year ending January 31, 2007, per Section IV(D) of
the Agreement. The leased premises under the Agreement are described as follows: 
 Lot 5, block number 3 and 6 block East, with a total area
of 20,892.22 square meters (224,881.76 square feet) and a portion of the building located at Calzada del Oro #2001 of Palaco Industrial Park in the city of Mexicali, Baja California, and of the building located thereon, as a shell building, with a
constructed area of 8,825.79 square meters (95,000 square feet), which consist of a portion of the warehouse of the Scottsdale building Module 5 with a total area of 1,579.35 square meters (17,000 square feet) and the improvements thereon.

 All other terms stipulated in the Agreement will remain valid and unchanged. 
 Best regards, 
  

									
					
	/S/    GARY WAITE        	 	 	 	14 Mar 2006	 		 	 
	 Gary Waite
 V.P. Manufacturing
 Masimo Corporation
	 		 		 		 	
	
	Accepted and agreed by the parties to the Agreement:
					
	/S/    SERGIO TAGLIAPIETRA        	 	 	 	15 Mar 2006	 		 	/s/    JOSE LUIS FAUS
	 Sergio Tagliapietra
 Legal Representative
	 		 		 		 	 Jose Luis Faus
 Legal
Representative

 LEASE AMENDMENT 
 THIS AMENDMENT to Lease Agreement (“Amendment”) is entered into as of December 19, 2006, by and between INDUSTRIAS ASOCIADAS MAQUILADORAS S.A. DE C.V., hereinatter referred to as
“LESSOR”, represented by Mr. Jose Luis Faus Sotelo, and INDUSTRIAL VALLERA DE MEXICALI S.A DE C.V., hereinafter referred to as “LESSEE”, represented by its legal representative, Mr. Sergio
Tagliapietra Nassri, pursuant to the following recitals and clauses: 
 RECITALS: 
 Both parties declare: 
  

	 	I.	That LESSOR and the LESSEE have entered into a Lease Agreement dated on February 1, 2001 (hereinafter referred to, as amended, as the “Lease Agreement), whereby LESSOR
leased a portion of an existing building to LESSEE, located in lot number 5, block number 3 & lot number 6 block East, identified as portion of the warehouse of the “Scottsdale” building module 5 with a total area of 17,000 square
feet, hereinafter referred to as “Leased Property.” 

  

	 	 II.
	 That on the Clause IV of such agreement, identified as “Lease Term and Commencement Date”, both parties agreed
in an original 5 (five) years “Lease term”, binding for the parties; according to this, such term started on last February 1st, 2003 and shall end in January 31st of 2006. 

  

	 	III.	That on March 14, 2006 LESSOR and LESSEE expressly amended the referred “Lease Agreement” by the execution of a Letter of Renewal that extended the “Lease
Term” for 1 (one) additional year to expire or end on January 31, 2007 (described as follows as “Expiration Date”). A true and correct copy of the Lease Agreement (including all amendments and modifications thereto) is attached
hereto as Exhibit “A”. 

  

	 	IV.	That it is their intention to execute this Amendment to amend the Lease Agreement described in the last paragraph, pursuant to the terms and conditions set forth below, according to
the intention of the parties of extending the “Lease Term” and to consider an early termination option of the Lease Agreement. 

  

	 	V.	That the powers of attorney under which they represented LESSOR and LESSEE are still in effect, and that such have not been revoked or limited in any manner, and consequently they
mutually acknowledge their capacity for all legal purposes; 

 Pursuant to the above the parties agree as follows: 
 CLAUSES: 
 FIRST: LESSOR and LESSEE
expressly agree to amend the “Lease Term” and the “Expiration Date” of the Lease Agreement as follows: The Lease Term and the Expiration Date shall be extended by fifteen (15) months, with a resulting “Expiration
Date” of June 30, 2008. 
 SECOND: It is perfectly understood and so accepted by LESSEE that the Guaranty granted under the terms of
Clause XXVI, paragraph N) of the Lease Agreement executed, will be understood to be extended so as to cover the extended Lease Term as provided in this 

  

 20 

 
Amendment, without any need to amend said Guaranty. Guarantor in this act acknowledges and accepts full responsibility for this amendment to the Lease
Agreement. 
 THIRD: LESSOR and LESSEE expressly agree to amend and modify clause IV of the “Lease Agreement” identified as “Lease Term
and Commencement Date”, to add a final paragraph as follows: 
 “....E.- Early Termination of Lease Agreement. In the event that LESSOR and
LESSEE enter into a new lease for additional premises in any LESSOR development (the “Additional Premises”), LESSEE shall have the right to terminate this Lease Agreement upon the delivery of written notice to LESSOR.
LESSEE’s termination right under this paragraph may be exercised at any time after LESSEE’s commencement of beneficial occupancy of the Additional Premises and shall be effective upon delivery to LESSOR, at which time this Lease Agreement
shall terminate.” 
 FOURTH: All other terms and conditions of the Lease Agreement, including the Rent terms, the date of commencement,
guaranty and all stipulations contained therein will remain and continue in full force and effect as contained in the Lease Amendment, as the same is modified by this Amendment. Accordingly, except as expressly amended by this Amendment, the Lease
Agreement shall remain unmodified and in full force and effect. 
 FIFTH: This document referrers to all of the amendments made previously to the
Lease Agreement, and forms part of the same as one whole document; both contain the conditions and promises made between the parties, and may not be modified orally or in any manner other than by a written agreement signed by the authorized
representatives of the parties. 
 SIXTH: As provided for in the Lease Agreement, the parties hereunder agree that with respect to all matters related
to the interpretation and compliance of this Amendment and the Lease Agreement, the parties expressly submit to the jurisdiction of the Civil Courts of the City of Mexicali, State of Baja California, expressly waiving any other jurisdiction which
might be applicable by reason of their present or future domiciles or otherwise. 
 IN WITNESS WHEREOF this document is signed in duplicate in this
City of Mexicali, Baja California, on this 19th day of December of the year two thousand and six. 
  

							
	 INDUSTRIAS ASOCIADAS
 MAQUILADORAS S.A. DE C.V.
	 	 INDUSTRIAL VALLERA DE MEXICALI
 S.A. DE C.V.

				
	 /s/ Jose Luis Faus Sotelo
	 		 	 /s/ Sergio Tagliapietra Nassri
	 	
	 Jose Luis Faus Sotelo
 Legal Representative
	 		 	 Sergio Tagliapietra Nassri
 Legal Representative
	 	

  

							
		 	 GUARANTOR:
 Masimo Corporation
	 		  	
				
		 	 /s/ Gary Waite
	 	 19 Dec 2006
	  	
		 	Gary Waite	 		  	
		 	Vice President of Manufacturing	 		  	

  

									
	WITNESSES:                        
					
	 /s/ EUGENIO LAGARDE
	 		 		 	 /s/ Mónica Villalobos Escobar
	 	

  

 21

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