Document:

CONSULTING SERVICES AGREEMENT

This Consulting Services Agreement ("Agreement"), dated September
6, 2000, is made by and between Richard Epstein, an individual
("Consultant"), whose address is 12147 N.W. 9th Drive, Coral
Springs, Florida 33071, and eConnect, a Nevada corporation
("Client"), having its principal place of business at 2500 Via
Cabrillo Marina, Suite 112, San Pedro, California 90731.

WHEREAS, Consultant has knowledge and expertise in the areas of
ecommerce, strategic alliances, and investment bankers;

WHEREAS, Consultant desires to be engaged by Client to provide
information, evaluation and consulting services to the Client in
his areas of knowledge and expertise on the terms and subject to
the conditions set forth herein;

WHEREAS, Client is a publicly held corporation with its common
stock shares trading on the Over the Counter Bulletin Board under
the ticker symbol "ECNC," and desires to further develop its
business and increase it's common stock share's value by
enhancing public awareness of the business of the Client and its
image; and

WHEREAS, Client desires to engage Consultant to provide
information, evaluation and consulting services to the Client in
his areas of knowledge and expertise on the terms and subject to
the conditions set forth herein.

NOW, THEREFORE, in consideration for those services Consultant
provides to Client, the parties agree as follows:

1.  Services of Consultant.

Consultant agrees to perform for the Client all services and
consulting related to targeting, contracting, and developing
ecommerce, strategic alliances for Client, and investment banking
relationships for Client.  As such, the Consultant will be
providing bona fide services to the Client.  The services to be
provided by Consultant will not be in connection with the offer
or sale of securities in a capital-raising transaction, and will
not directly or indirectly promote or maintain a market for the
Client's securities.

2.  Consideration.

Client agrees to pay Consultant, as his fee and as consideration
for services provided, Six Hundred Thousand (600,000) shares of
S-8 free trading common stock in Client. Shares are due and
payable immediately upon the effectiveness of the Form S-8
Registration Statement with the U.S. Securities and Exchange
Commission and with any appropriate states securities
administrator.

3.  Confidentiality.

Each party agrees that during the course of this Agreement,
information that is confidential or of a proprietary nature may
be disclosed to the other party, including, but not limited to,
product and business plans, software, technical processes and
formulas, source codes, product designs, sales, costs and other
unpublished financial information, advertising revenues, usage
rates, advertising relationships, projections, and marketing data
("Confidential Information"). Confidential Information shall not
include information that the receiving party can demonstrate (a)
is, as of the time of its disclosure, or thereafter becomes part
of the public domain through a source other than the receiving
party, (b) was known to the receiving party as of the time of its
disclosure, (c) is independently developed by the receiving party,
or (d) is subsequently learned from a third party not under a
confidentiality obligation to the providing party.

4.  Late Payment.

Client shall pay to Consultant all fees within fifteen (15) days
of the due date. Failure of Client to finally pay any fees within
fifteen (15) days after the applicable due date shall be deemed a
material breach of this Agreement, justifying suspension of the
performance of the "Services" provided by Consultant, will be
sufficient cause for immediate termination of this Agreement by
Consultant. Any such suspension will in no way relieve Client
from payment of fees, and, in the event of collection
enforcement, Client shall be liable for any costs associated with
such collection, including, but not limited to, legal costs,
attorneys' fees, courts costs, and collection agency fees.

5.  Indemnification.

(a)  Client.

Client agrees to indemnify, defend, and shall hold harmless
Consultant and /or his agents, and to defend any action brought
against said parties with respect to any claim, demand, cause of
action, debt or liability, including reasonable attorneys' fees
to the extent that such action is based upon a claim that: (i) is
true, (ii) would constitute a breach of any of Client's
representations, warranties, or agreements hereunder, or (iii)
arises out of the negligence or willful misconduct of Client, or
any Client Content to be provided by Client and does not violate
any rights of third parties, including, without limitation,
rights of publicity, privacy, patents, copyrights, trademarks,
trade secrets, and/or licenses.

(b)  Consultant.

Consultant agrees to indemnify, defend, and shall hold harmless
Client, its directors, employees and agents, and defend any
action brought against same with respect to any claim, demand,
cause of action, debt or liability, including reasonable
attorneys' fees, to the extent that such an action arises out of
the gross negligence or willful misconduct of Consultant.

(c)  Notice.

In claiming any indemnification hereunder, the indemnified party
shall promptly provide the indemnifying party with written notice
of any claim, which the indemnified party believes falls within
the scope of the foregoing paragraphs. The indemnified party may,
at its expense, assist in the defense if it so chooses, provided
that the indemnifying party shall control such defense, and all
negotiations relative to the settlement of any such claim. Any
settlement intended to bind the indemnified party shall not be
final without the indemnified party's written consent, which
shall not be unreasonably withheld.

6.  Limitation of Liability.

Consultant shall have no liability with respect to Consultant's
obligations under this Agreement or otherwise for consequential,
exemplary, special, incidental, or punitive damages even if
Consultant has been advised of the possibility of such damages.
In any event, the liability of Consultant to Client for any
reason and upon any cause of action, regardless of the form in
which  the legal or equitable action may be brought, including,
without limitation, any action in tort or contract, shall not
exceed ten percent (10%) of the fee paid by Client to Consultant
for the specific service provided that is in question.

7.  Termination and Renewal.

(a)  Term.

This Agreement shall become effective on the date appearing next
to the signatures below and terminate one (1) year thereafter.
Unless otherwise agreed upon in writing by Consultant and Client,
this Agreement shall not automatically be renewed beyond its
Term.

(b)  Termination.

Either party may terminate this Agreement on thirty (30) calendar
days written notice, or if prior to such action, the other party
materially breaches any of its representations, warranties or
obligations under this Agreement. Except as may be otherwise
provided in this Agreement, such breach by either party will
result in the other party being responsible to reimburse the non-
defaulting party for all costs incurred directly as a result of
the breach of this Agreement, and shall be subject to such
damages as may be allowed by law including all attorneys' fees
and costs of enforcing this Agreement.

(c)  Termination and Payment.

Upon any termination or expiration of this Agreement, Client
shall pay all unpaid and outstanding fees through the effective
date of termination or expiration of this Agreement. And upon
such termination, Consultant shall provide and deliver to Client
any and all outstanding services due through the effective date
of this Agreement.

8.  Miscellaneous.

(a)  Independent Contractor.

This Agreement establishes an "independent contractor"
relationship between Consultant and Client.

(b)  Rights Cumulative; Waivers.

The rights of each of the parties under this Agreement are
cumulative.  The rights of each of the parties hereunder shall
not be capable of being waived or varied other than by an express
waiver or variation in writing.  Any failure to exercise or any
delay in exercising any of such rights shall not operate as a
waiver or variation of that or any other such right.  Any
defective or partial exercise of any of such rights shall not
preclude any other or further exercise of that or any other such
right.  No act or course of conduct or negotiation on the part of
any party shall in any way preclude such party from exercising
any such right or constitute a suspension or any variation of any
such right.

(c)  Benefit; Successors Bound.

This Agreement and the terms, covenants, conditions, provisions,
obligations, undertakings, rights, and benefits hereof, shall be
binding upon, and shall inure to the benefit of, the undersigned
parties and their heirs, executors, administrators,
representatives, successors, and permitted assigns.

(d)  Entire Agreement.

This Agreement contains the entire agreement between the parties
with respect to the subject matter hereof.  There are no
promises, agreements, conditions, undertakings, understandings,
warranties, covenants or representations, oral or written,
express or implied, between them with respect to this Agreement
or the matters described in this Agreement, except as set forth
in this Agreement.  Any such negotiations, promises, or
understandings shall not be used to interpret or constitute this
Agreement.

(e)  Assignment.

Neither this Agreement nor any other benefit to accrue hereunder
shall be assigned or transferred by either party, either in whole
or in part, without the written consent of the other party, and
any purported assignment in violation hereof shall be void.

(f)  Amendment.

This Agreement may be amended only by an instrument in writing
executed by all the parties hereto.

(g)  Severability.

Each part of this Agreement is intended to be severable.  In the
event that any provision of this Agreement is found by any court
or other authority of competent jurisdiction to be illegal or
unenforceable, such provision shall be severed or modified to the
extent necessary to render it enforceable and as so severed or
modified, this Agreement shall continue in full force and effect.

(h)  Section Headings.

The Section headings in this Agreement are for reference purposes
only and shall not affect in any way the meaning or
interpretation of this Agreement.

(i)  Construction.

Unless the context otherwise requires, when used herein, the
singular shall be deemed to include the plural, the plural shall
be deemed to include each of the singular, and pronouns of one or
no gender shall be deemed to include the equivalent pronoun of
the other or no gender.

(j)  Further Assurances.

In addition to the instruments and documents to be made, executed
and delivered pursuant to this Agreement, the parties hereto
agree to make, execute and deliver or cause to be made, executed
and delivered, to the requesting party such other instruments and
to take such other actions as the requesting party may reasonably
require to carry out the terms of this Agreement and the
transactions contemplated hereby.

(k)  Notices.

Any notice which is required or desired under this Agreement
shall be given in writing and may be sent by personal delivery or
by mail (either a. United States mail, postage prepaid, or b.
Federal Express or similar generally recognized overnight
carrier), addressed as follows (subject to the right to designate
a different address by notice similarly given):

To Client:

Mr. Thomas S. Hughes
eConnect
2500 Via Cabrillo Marina, Suite 112
San Pedro, California 90731

To Consultant:

Richard Epstein
12147 N.W. 9th Drive
Coral Springs, Florida 33071

(l)  Governing Law.

This Agreement shall be governed by the interpreted in accordance
with the laws of the State of California without reference to its
conflicts of laws rules or principles.  Each of the parties
consents to the exclusive jurisdiction of the federal courts of
the State of California in connection with any dispute arising
under this Agreement and hereby waives, to the maximum extent
permitted by law, any objection, including any objection based on
forum non coveniens, to the bringing of any such proceeding in
such jurisdictions.

(m)  Consents.

The person signing this Agreement on behalf of each party hereby
represents and warrants that he has the necessary power, consent
and authority to execute and deliver this Agreement on behalf of
such party.

(n)  Survival of Provisions.

The provisions contained in paragraphs 3, 5, 6, and 8 of this
Agreement shall survive the termination of this Agreement.

(o)  Execution in Counterparts.

This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original and all of which
together shall constitute one and the same agreement.

IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed and have agreed to and accepted the terms herein on the
date written above.

eConnect

By :  /s/  Thomas S. Hughes
Thomas S. Hughes, President

Richard Epstein

/s/  Richard Epstein<PAGE>   1
                                                                    EXHIBIT 10.1

PURCHASING AND LICENSING AGREEMENT, DATED SEPTEMBER 9, 1997, BETWEEN ATOM
MEDICAL CORPORATION AND MASIMO CORPORATION.

CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION.
<PAGE>   2

                       PURCHASING AND LICENSING AGREEMENT
                                     BETWEEN
                            ATOM MEDICAL CORPORATION
                                       AND
                               MASIMO CORPORATION

                             DATED SEPTEMBER 9, 1997

<PAGE>   3

                                   EXHIBITS

Exhibit A.     MASIMO SET(R) Definition
Exhibit B.     Trademarks, Legend, Logos
Exhibit C.     List of Patents and Patent Applications
Exhibit D.     Price of Products
Exhibit E.     Specifications for Products
Exhibit F.     End-User License Agreement

<PAGE>   4

                       PURCHASING AND LICENSING AGREEMENT

       THIS PURCHASING AND LICENSING AGREEMENT ("Agreement") is made and entered
into as of this 9th day of September, 1997, by and between ATOM Medical
Corporation, a Japanese corporation ("ATOM"), and MASIMO CORPORATION, a Delaware
corporation ("MASIMO"), with reference to the following:

R E C I T A L S:

       A. MASIMO has developed a new technology known as Signal Extraction
Technology ("MASIMO SET" as defined in Exhibit A) MASIMO SET(R) incorporates
circuitry and software which, among other things, acquires and detects signals
generated by red and infrared LEDs, and which is designed to extract arterial
oxygen saturation and pulse rate values from such signals.

       B. ATOM is a manufacturer of medical equipment and desires to incorporate
MASIMO SET for SpO(sub 2) into its medical equipment for distribution by ATOM
throughout the world.

       C. MASIMO has acquired substantial Know-How (as defined below) in
extracting signals from signals contaminated by noise.

       D. MASIMO has acquired and expects to continue to acquire a reputation
for excellence, and its Trademark has and will continue to acquire valuable
goodwill.

       NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, ATOM and MASIMO hereby agree as follows:

       1. DEFINITIONS. As used in this Agreement, the following terms, whether
used in the singular or the plural shall have the following meaning:

               1.1 Accessory means cables (including, but not limited to the
        MASIMO PC08 and PC12, 8 ft. and 12 ft. patient cables) or any other
        accessory manufactured by MASIMO and used with any of the SpO(sub 2)
        Sensors or Licensed Devices.

              1.2 Distributor means a party that markets Licensed Devices to
       End-Users on behalf of ATOM or a customer of ATOM that buys Licensed
       Devices from ATOM, private labels such devices, and markets such Licensed
       Devices to End-Users.

              1.3 End User is a direct user of Licensed Devices in a clinical
       environment for medical diagnostic purposes on patients (OEM and medical
       equipment manufacturers are specifically excluded).

              1.4 Improvement means any invention, adaptation, modification or
       change relating to MASIMO Technology.

               1.5 Licensed Devices means ATOM's completed patient monitor
        devices incorporating MASIMO SET whether made in circuit board, software
        or integrated circuit form for SpO(sub 2) Measurements. Licensed Devices
        shall not include any methods other than MASIMO SET for calculating
        arterial blood oxygen saturation. Licensed Devices specifically excludes
        all Fetal Oximetry applications and venous oxygen saturation
        applications.

              1.6 Licensed Trademarks means the MASIMO SET product designation
       and word mark(s) set forth on Exhibit B.

              1.7 MASIMO Confidential Information means information and
       proprietary material of MASIMO disclosed to ATOM and includes, but is not
       limited to, the following types of information and

                                       1
<PAGE>   5

       other information of a similar nature: ideas, concepts, materials,
       techniques, models, data, designs, documentation, flow charts, budgets,
       projections, forecasts, marketing and development plans, the Masimo
       Technology, the Software, communication protocols, and testing
       procedures.

              1.8 MASIMO Technology means technical information, inventions,
       concepts, techniques, products, components, concepts, trade secrets,
       know-how, techniques, designs, processes, communications protocols, the
       Software, whether patentable or not, patent applications, copyright
       applications, the Patent Rights, and copyrights and all other
       intellectual property rights relating to MASIMO SET alone or incorporated
       in MS Boards, SpO(sub 2) Sensors, Improvements and related documentation
       generated prior to or pursuant to this Agreement.

              1.9 MS Boards means MASIMO's standard circuit board or chip set
       which contains MASIMO SET and algorithms necessary to process the
       information transmitted from the SpO(sub 2) Sensor and convert it into
       SpO(sub 2) Measurements.

              1.10 Party means ATOM or MASIMO; Parties means ATOM and MASIMO.

              1.11 Patent Rights means all patents owned by MASIMO on technology
       developed by MASIMO which cover SpO(sub 2) Measurement in Licensed
       Devices. The present patent numbers and patent application are set forth
       on Exhibit C to this Agreement.

              1.12 Products are MS Boards, SpO(sub 2) Sensors and Accessories.

              1.13 Purchase Orders has the meaning set forth in Section 4.1
       ("Purchase Orders").

              1.14 Software means any and all computer/instrument software
       and/or firmware developed by MASIMO that is used or useful in connection
       with MASIMO Technology.

              1.15 SpO(sub 2) Measurements means noninvasive measurement of
       arterial oxygen saturation (accounting for Hb and HbO(sub 2) only) and/or
       pulse rate from neonate, pediatric and adult subjects (excludes fetal
       measurement and venous oxygen saturation).

              1.16 SpO(sub 2) Sensor means reusable and disposable MASIMO
       standard adult, pediatric or neonatal sensors for use with making SpO(sub
       2) Measurements. Standard SpO(sub 2) Sensors currently manufactured by
       MASIMO have the following model numbers:

               LNOP(R) - Neo-Pt;  Disposable Neonatal Sensor (Pre-Term)
               LNOP(R) - Neo;     Disposable Neonatal Sensor
               LNOP(R) - Adt;     Disposable Adult Sensor
               LNOP(R) - Pdt      Disposable Pediatric/Slender Digit Sensor
               LNOP(R) - DC1;     Reusable Adult/Pediatric Digit Clip Sensor

              MASIMO intends to produce additional standard models of the
       SpO(sub 2) Sensors. As MASIMO produces such additional models, the
       Parties agree to negotiate in good faith their inclusion in this
       agreement

              1.17 ATOM Confidential Information means information and
       proprietary material designated by ATOM as Confidential Information and
       which MASIMO may obtain as a result of MASIMO's relationship with ATOM or
       access to its premises. Confidential Information includes, but is not
       limited to, the following types of information and other information of a
       similar nature: ideas, concepts, materials, techniques, models, data,
       designs, documentation, flow charts, budgets, projections, forecasts,
       marketing and development plans, communication protocols and testing
       procedures.

                                        2
<PAGE>   6

              1.18 Subsidiary means any majority owned or wholly owned
       subsidiary, or any entity over which a Party has control.

       2. LICENSES GRANTED

              2.1 Licenses Granted to Licensee.

                     2.1.1 MASIMO grants to ATOM a personal, non-transferable,
              and non-exclusive worldwide license to incorporate the MS Boards
              into the Licensed Devices, to demonstrate Licensed Devices, and to
              distribute Licensed Devices to (i) End User customers and (ii)
              ATOM Distributors. This license includes the right to ATOM to have
              the Licensed Devices manufactured by a third party for ATOM;
              however, such Licensed Devices may only be supplied to the
              marketplace with ATOM's or ATOM's and ATOM's Distributors' private
              label and logo exclusively and distributed exclusively through
              ATOM distribution channels. In addition, a third party making
              Licensed Devices for ATOM may not also be a Distributor.

                     2.1.2 ATOM agrees that it will not reproduce or disclose to
              any third party any portion of the Software and that it may
              transfer copies of the Software in object code form only, and only
              in conjunction with a transfer of a Licensed Device to End Users
              and Distributors. ATOM agrees to include a copy of the End-User
              License Agreement attached hereto as Exhibit F with all Licensed
              Devices, and agrees that it will require all Distributors to
              include a copy of the End-User License Agreement attached as
              Exhibit F with the transfer of Licensed Devices to End Users. If
              ATOM enters a signed agreement with the End User customer or
              Distributor, ATOM also agrees to attach the End-User License
              Agreement as an exhibit and include the following clause or a
              substantially similar clause in the signed agreement:

                     The end-user agrees to comply with the terms of the
                     attached License Agreement. MASIMO is a beneficiary of this
                     agreement between ATOM and the end-user, and has a right to
                     enforce the provisions of the License Agreement.

                     2.1.3 MASIMO retains all rights, title, and interest in the
              Masimo Technology and Improvements, including, without limitation,
              all patents, copyright, trade secret, and any other intellectual
              property and proprietary rights. Nothing in this Agreement should
              be construed as a sale of the Software or any copy of the
              Software.

                     2.1.4 ATOM agrees that the Masimo Technology contains trade
              secrets and proprietary information belonging to MASIMO. ATOM
              agrees to maintain the confidential nature of such trade secrets
              and proprietary information and agrees not to use, print, copy,
              provide, or otherwise make available, in whole or in part, any
              portion of the Software or related materials except in accordance
              with this Agreement. ATOM will not be provided access to source
              code for MASIMO Technology. ATOM agrees not to attempt to
              decipher, decompile, or modify the Software or develop source code
              for the Software or allow others to do so.

              2.2 Limitation of Licenses Granted

                     2.2.1 No license is granted under this Agreement with
              respect to the MS Boards and Masimo Technology other than as
              integrated parts of the Licensed Devices. ATOM shall not have the
              right to manufacture MS Boards, SpO(sub 2) Sensors or Accessories
              or any circuity or software that performs the functions of the MS
              Boards for the Licensed Devices.

                                        3
<PAGE>   7

                     2.2.2 Except for a transfer of Licensed Devices to end-user
              customers and Distributors accompanied by the End-User License
              Agreement, no right to grant sublicenses is granted under this
              Agreement.

                     2.2.3 Nothing in this Agreement shall be construed to grant
              any rights to ATOM in fetal oximetry, venous oximetry or any other
              application of MASIMO SET other than the use of LICENSED Devices
              to make SpO(sub 2) Measurements, and nothing in this Agreement
              shall be construed to grant any rights to ATOM to distribute or
              otherwise market MS Boards or MASIMO SET separate from Licensed
              Devices.

              2.3 Trademarks, Legends and Logos.

                     2.3.1 No Implied License. ATOM agrees to include the
              following legend on the exterior of Licensed Devices:

                     NO IMPLIED LICENSE
                     Possession or purchase of this device does not convey any
                     express or implied license to use the device with
                     replacement parts which would, alone, or in combination
                     with this device, fall within the scope of one or more of
                     the patents relating to this device.

              Initial quantities of labels containing this legend are available
              from MASIMO upon request.

                     2.3.2 Grant by Masimo. MASIMO hereby grants to ATOM a
              non-exclusive license to use the Licensed Trademarks with the
              Licensed Devices for identification purpose and for publicity and
              promotional purposes when it is advertising one of its Licensed
              Devices.

                     2.3.3 Quality Control. In order for ATOM to maintain its
              trademark license hereunder, ATOM agrees that the Licensed Devices
              bearing the Licensed Trademark shall be of a high standard of
              quality, at least as high as ATOM's historical products, so as to
              protect and enhance the goodwill pertaining to the MS Boards and
              SpO(sub 2) Sensors. MASIMO has the right to inspect the
              manufacturing and distribution points of ATOM for the Licensed
              Devices, at any reasonable time, to ensure the ongoing quality of
              the Licensed Devices. Should MASIMO at any time determine that the
              quality of any Licensed Device does not adhere to MASIMO's quality
              standards, MASIMO will provide written notice to ATOM. ATOM shall
              have three months from such notice to bring the quality of such
              Licensed Device up to standard or to cease any further use of the
              Licensed Trademark in connection with the promotion or sale of
              such Licensed Device until MASIMO has indicated that it is
              satisfied that the deficiencies in quality of the Licensed Device
              have been corrected.

                     2.3.4 Trademark Marking. ATOM agrees that it shall use the
              MASIMO Product Designation set forth in Exhibit B on all Licensed
              Devices standing independently on the front or face of the unit in
              a plainly visible site. Prior to any such use, ATOM shall obtain
              consent from MASIMO as to the use and location of the Licensed
              Trademark, which consent shall not unreasonably be withheld.

                     2.3.5 Advertising. All advertising for Licensed Devices
              must include one or more of the Licensed Trademarks. Prior to any
              use or publication, all advertising copy shall be forwarded to
              MASIMO for its approval, which approval shall not be unreasonably
              withheld.

                     2.3.6 The Licensed Trademarks may not be used on or in
              reference to any products other than Licensed Devices.

                                        4
<PAGE>   8

                     2.3.7 Except for the ATOM trademark and/or trade names, the
              Licensed Trademarks may not be used in direct combination with
              other trade names, trademarks or symbols. Moreover, the trade
              names, trademarks, or symbols of one party may not be used in any
              way which may suggest that one party is a division, affiliate, or
              subsidiary of the other party.

                     2.3.8 ATOM acknowledges the validity and exclusive
              ownership of the Licensed Trademarks by MASIMO. ATOM agrees not to
              use the Licensed Trademarks in any way which might endanger
              MASIMO's rights in and ownership of the Licensed Trademarks.

                     2.3.9 Patent Marking. ATOM agrees to mark each Licensed
              Device manufactured or sold by it in accordance with the Statutes
              of the United States relating to marking of patented articles.
              MASIMO will, from time to time, update its patent numbers for ATOM
              as patents issue. When MASIMO updates its patent numbers, ATOM's
              obligation to update its product marking shall occur upon the
              earlier of the exhaustion of labels for Licensed Devices bearing
              the current patent numbers or one year from the update by MASIMO.
              Initial Patent marking is shown in Exhibit B.

       3. ATOM COMMITMENTS/LICENSE FEE

              3.1 ATOM agrees to purchase all Products from MASIMO.

              3.2 Best Efforts. ATOM agrees to use its best efforts to make
       MASIMO SET its primary pulse oximetry technology, including, but not
       limited to integrating MASIMO SET into its products for SpO(sub 2)
       Measurement and by solely promoting the sale of such Licensed Devices
       over devices for SpO(sub 2) Measurement which do not incorporate MASIMO
       SET.

              3.3 Integration Commitment. Except for ATOM products in which
       Nellcor SpO(sub 2) technology is specifically requested by ATOM's
       customers, ATOM will exclusively integrate Masimo SET into all of its
       future instruments which require SpO(sub 2) Measurements. In no event
       will the percentage of ATOM Instruments exclusively containing Masimo SET
       fall below 80% of the total instruments containing SpO(sub 2)
       Measurements from Atom.

              3.4 Sensor Commitment. ATOM agrees that it will not sell or
       otherwise market any products for SpO(sub 2) Measurement with License
       Devices except SpO(sub 2) Sensors and Accessories purchased from MASIMO.

              3.5 Stand-Alone Pulse Oximeter. Masimo agrees to use its best
       efforts to provide ATOM a source to purchase a private labeled Masimo SET
       stand-alone pulse oximeter thru its other OEM partners. When such a
       stand-alone Licensed Device is available to ATOM, ATOM will cease all
       shipments of non-Masimo SET stand-alone pulse oximetry instruments.

              3.6 Product Lines. Prior to the launch of each Licensed Device,
       ATOM agrees to inform MASIMO of a description and model number of the
       product, and agrees to provide MASIMO with all customer product
       literature and technical specifications on each Licensed Device.

              3.7 Engineering Support. MASIMO will provide customary and
       reasonable integration support without charge, at its discretion. At
       ATOM's request and with MASIMO's approval, MASIMO shall provide
       additional engineering support to ATOM for the integration of MASIMO SET
       into Licensed Devices, at a cost of $150.00 per hour. Such support and
       payment by ATOM shall be authorized in advance, in writing by ATOM. Such
       services shall be provided at MASIMO's facility unless travel is
       required, in which event ATOM shall additionally pay for necessary travel
       expenses.

                                        5
<PAGE>   9

              3.8 Delivery of ATOM Systems to MASIMO. ATOM agrees to deliver
       free of charge, one (1) complete system to MASIMO which demonstrates the
       final integration of the MS Board into each Licensed Device, MASIMO may
       test and make recommendations for improvements to the Licensed Devices
       for compliance with the specifications of Exhibit E. MASIMO makes no
       warranties or representations with respect to this testing. Such Licensed
       Devices shall remain with MASIMO for further technical assistance and as
       a demonstration unit. Title to such systems shall transfer to MASIMO.

              3.9 License Fee. ATOM shall pay a license fee to MASIMO in the
       amount of [*] payable upon execution of this Agreement.

              3.10 Training. ATOM agrees to allow Masimo to support ATOM's sales
       training on MASIMO SET, with appropriate prior notice and mutual
       agreement of the Parties to the training agenda and time requirements.

              3.11 Quarterly Accounting. ATOM agrees to provide MASIMO with a
       Quarterly Accounting of total pulse oximetry product shipments, its
       shipments containing MASIMO MS Boards exclusively and other shipments
       containing other means of providing pulse oximetry.

              3.12 Audit Rights. MASIMO shall have the right to verify, at its
       expense, and not more frequently than once per year and upon not less
       than ten (10) business days prior written notice to ATOM, the accuracy of
       the accounting reports provided by ATOM hereunder, through inspection of
       ATOM's pertinent records and books of accounts maintained in the ordinary
       course of business. Such audit shall be conducted by a certified public
       accountant (the "CPA") chosen by MASIMO in its reasonable discretion, and
       which CPA is reasonably acceptable to ATOM. ATOM shall pay all costs,
       expenses and fees of the CPA if (i) ATOM has overstated its Integration
       Commitment to be eighty percent (80%) or greater, and (ii) audit shows
       the Integration Commitment is less than eighty percent (80%) for the
       entire annual period audited.

       4. PURCHASE AND SALE

              4.1 Purchase Orders. During the term of this Agreement and in
       accordance with its provisions, the purchase and sale of Products between
       the Parties shall be made by means of purchase orders placed by ATOM or
       its designee to MASIMO ("Purchase Orders"). The minimum quantity of
       Products that may be purchased on a Purchase Order is 50 units of a
       cable-part number (e.g., PC08) or a reusable sensor (e.g., LNOP-DC1) or
       MS Boards or 500 units of a disposable sensor (e.g., LNOP-Neo). Purchase
       Orders and change orders may be placed by facsimile or mail. A Purchase
       Order issued before normal expiration of this Agreement may provide for
       delivery for a period of up to ninety (90) days following normal
       expiration of this Agreement and all terms and conditions of this
       Agreement shall govern. No Purchase Order must be accepted by MASIMO
       after the expiration or the termination of this Agreement. Any Purchase
       Order issued for any firm commitment or purchase hereunder shall be
       non-cancelable, and ATOM shall be responsible for taking deliveries of
       and paying for all Products set forth in such Purchase Order.

              4.2 Confirmation. MASIMO will notify ATOM of receipt of Purchase
       Orders within five (5) working days after receipt. Confirmation of
       receipt and acceptance by MASIMO may be by facsimile or mail.

              4.3 Contents. All Purchase Orders submitted by ATOM shall state
       the following: (i) price, (ii) the quantities ordered, (iii) the
       requested delivery dates, (iv) destination, (v) requested method of
       shipment, and (vi) model number of the Products in accordance with the
       terms and conditions hereof. Any language on the Purchase Order of ATOM
       or acknowledging form of MASIMO which is inconsistent with any term or
       provision hereof shall be void and without any force or effect.

* Confidential material redacted and filed separately with the Commission.

                                        6
<PAGE>   10
              4.4 Initial Commitment. The first Purchase Order submitted by
       ATOM, will include firm quantities for the first six (6) months of
       shipment which are contemplated to begin in April, 1998

              4.5 Ongoing Purchase Orders. After the initial Purchase Order,
       ATOM's Purchase Orders issued to MASIMO calling for delivery in ninety
       (90) days or less are non-cancelable. Purchase Orders to MASIMO calling
       for delivery in more than 90 days shall be alterable and cancelable by
       ATOM up until ninety days prior to the shipment date, after which such
       Purchase Orders become binding.

              4.6 Emergency Orders. Purchase Orders placed by ATOM shall not
       prevent ATOM from placing emergency orders for units of the Products for
       delivery in less than ninety (90) days. MASIMO agrees to use reasonable
       efforts to deliver such units of Products on the requested schedule.
       MASIMO may require a price modification for emergency orders.

       5. PRICES AND PAYMENT

              5.1 Price. MASIMO's transfer prices for the Products delivered to
       ATOM in accordance with the terms of this Agreement shall be as set forth
       on Exhibit D attached hereto. All prices are F.O.B. MASIMO's shipping
       dock. The transfer price for SpO(sub 2) Sensors and Accessories includes
       packaging and labeling with ATOM-supplied artwork and logos complying
       with MASIMO's Standard Packaging Guidelines. The transfer price does not
       include custom packaging or labeling for SpO(sub 2) Sensors, Accessories
       or MS Boards. If custom labeling for SpO(sub 2) Sensors or Accessories is
       desired and feasible as determined by Masimo, all costs associated with
       such labeling will be paid by ATOM. Payment by ATOM to MASIMO shall be
       made thirty (30) days following receipt of invoice by ATOM.

              5.2 Pricing Adjustments. MASIMO shall have the right to adjust
       prices for the Products annually, provided that any annual price increase
       shall be limited to the percentage increase in the prior year's U.S.
       Consumer Price Index.

              5.3 Currency Basis. Prices for the Products to ATOM shall be in
       U.S. Dollars.

              5.4 F.O.B. Point. Risk of loss for Products shall pass to ATOM,
       F.O.B. MASIMO's manufacturing facility or distribution point, as selected
       by MASIMO.

              5.5 Taxes and Levies. All payments by ATOM to MASIMO under this
       Agreement are exclusive of taxes and ATOM shall be responsible for paying
       all taxes (except taxes based on MASIMO'S income), including but not
       limited to, all sales, use, personal property, customs, duties,
       assessments, levies and other governmental impositions of any nature.

              5.6 Obsolete Packaging Inventory. Should ATOM request changes to
       ATOM's current packaging materials for Products (including but not
       limited to SPO(sub 2) Sensor pouches, boxes and directions for use), ATOM
       will reimburse MASIMO for the direct cost of the obsoleted packaging
       materials, up to a total of [*].

       6. DELIVERY

              6.1 Transportation. The method of transportation and carrier
       selected shall be as specified by ATOM in its Purchase Orders. Unless
       otherwise agreed, all transportation charges, including insurance, levies
       and taxes, shall be paid by ATOM.

* Confidential material redacted and filed separately with the Commission.

                                        7
<PAGE>   11

              6.2 Packaging. MASIMO shall package the Products for shipment.
       Each shipment shall include a packing list containing: (i) Purchase Order
       number, (ii) model number of the Products, (iii) quantity, (iv) serial
       number or lot code of shipped products, and (v) certificates of
       compliance for the applicable quality assurance tests performed for the
       Products being shipped.

              6.3 Delivery. MASIMO shall use reasonable commercial efforts to
       fill all Purchase Orders by delivery dates and in the quantities
       specified by ATOM in its Purchase Orders. Notwithstanding the above,
       MASIMO shall have no obligation to deliver in less than ninety (90) days
       from confirmation. If a Purchase Order by ATOM calls for more than a 25%
       increase as compared to the previous 3-month average of Products ordered,
       on a product-by-product basis, MASIMO shall use reasonable commercial
       efforts to deliver an amount at least equal to the previous three month
       average within ninety (90) days, and shall use reasonable commercial
       efforts to ship the remainder within 120 days of receipt of the Purchase
       Order.

       7. COMPATIBILITY

              7.1 Sensor Compatibility. ATOM agrees that its Licensed Devices
       will not be configured to operate with oximetry sensors other than Masimo
       SpO(sub 2) Sensors specifically authorized by MASIMO for use with
       Licensed Devices of ATOM.

              7.2 Instrument Compatibility. ATOM agrees that it will not market
       oximetry instrument(s), or any other device(s) or accessory(ies), except
       Licensed Devices, that operate with or are compatible with any MASIMO
       SpO(sub 2) Sensors.

              7.3 Entire Board. ATOM agrees that by incorporating the MS Board
       and MASIMO SET into its Licensed Devices it will use the MS Board for its
       full functionality of pulse oximetry and that it will not modify the
       functionality of the MS Board. ATOM agrees that it will accept all future
       upgrades or changes to products as long as the upgrades or changes remain
       compatible with previous versions in connections and functionality and
       the upgrades do not increase the transfer price.

              7.4 MASIMO Probes. ATOM agrees that the MS Boards are designed to
       be used with SpO(sub 2) Sensors only, and that if ATOM uses sensors by
       other manufacturers the MS Board may yield different results.
       Accordingly, MASIMO SET will be enabled for SpO(sub 2) Sensors only. ATOM
       agrees to use its best efforts to provide that its customers not use
       SpO(sub 2) Sensors with technology other than MS Boards in Licensed
       Devices. ATOM agrees not to configure or to instruct others how to
       configure any devices other than Licensed Devices to be used in
       connection with SpO(sub 2) Sensors.

       8. INSPECTION AND ACCEPTANCE

              8.1 MASIMO Inspection. MASIMO shall provide and maintain an
       inspection procedure and quality assurance program for the Products and
       its production processes. Complete records of all inspection and quality
       assurance work done by MASIMO shall be made available to ATOM upon its
       request at reasonable times during the term of this Agreement.

              8.2 ATOM Inspection

                     8.2.1 ATOM may inspect the Products upon receipt. Products
              which fail (as defined only as a failure under statistical lot
              sampling standard ANSI/ASQC Z1.4:1993 AQL 1.0, General Inspection
              Level I). Any of the Products or lots of Products ("Lot") which
              materially fail to meet the specifications set forth in Exhibit E
              may be rejected by ATOM and returned to MASIMO for replacement.
              Prior to returning any Products to MASIMO, ATOM shall notify
              MASIMO by facsimile that ATOM has rejected the Products, inclusive
              of the reason or basis of such rejection. Within five (5) working
              days of the receipt of the notification, MASIMO will issue a
              "Return to

                                        8
<PAGE>   12

              Vendor" ("RTV") number to ATOM by facsimile, which RTV number will
              be ATOM's authorization to return the Products.

                     8.2.2 ATOM shall promptly notify MASIMO of any incoming Lot
              failure. Products which do not conform to MASIMO's specifications
              shall be returned by ATOM to MASIMO freight collect and insured
              for full replacement value. Within twenty (20) days after the date
              of receipt of the nonconforming Products by MASIMO, replacement
              Product will be shipped to ATOM at MASIMO's expense. Should MASIMO
              fail to replace rejected Products by shipping conforming Products
              to ATOM within thirty (30) days of its receipt of the
              nonconforming Products, ATOM shall have the option to cancel
              without cost or liability the purchase of such Products and
              receive, at ATOM's option, a credit or rebate if payment has been
              made. ATOM shall pay freight charges, insurance and other
              customary charges for transportation for improperly rejected
              Products.

                     8.2.3 All costs to replace including transportation with
              respect to the defective Products shall be the sole responsibility
              of MASIMO.

                     8.2.4 If ATOM attempts to correct deficiencies to the
              Products purchased under this Agreement without prior written
              authorization from MASIMO, then MASIMO shall have no further
              obligations with respect to such Products.

              8.3 Nonconforming Acceptance. ATOM may choose to accept the
       Products which fail to conform in a minor aspect to the specifications
       established by this Agreement without prejudice to its right to reject
       nonconforming items in the future. If ATOM so chooses, ATOM will notify
       MASIMO of its intent to accept nonconforming items. However, MASIMO
       accepts no responsibility for nonconforming items accepted by ATOM.

       9. CONFIDENTIALITY

              9.1 MASIMO's Confidential Information. ATOM shall not use MASIMO's
       Confidential Information for any purpose other than performance of this
       Agreement or the maintenance or repair of the Products in accordance with
       this Agreement. ATOM shall not disclose MASIMO's Confidential Information
       to any third party without the prior written consent of MASIMO.

              9.2 ATOM's Confidential Information. Except as otherwise expressly
       provided in this Agreement, MASIMO shall not use ATOM's Confidential
       Information for any purpose other than performance of this Agreement,
       without the prior written consent of ATOM. MASIMO shall not disclose
       ATOM's Confidential Information to any third party without the prior
       written consent of ATOM.

              9.3 Confidentiality Exemptions. Neither party's obligations under
       Section 9.1 or 9.2 shall apply to information that:

                     9.3.1 prior to the transmittal was of general public
              knowledge;

                     9.3.2 becomes a matter of general public knowledge
              otherwise than as a consequence of a breach under this Agreement;

                     9.3.3 is rightfully communicated to the Party free of any
              obligation of confidence subsequent to the time of communication
              thereof;

                     9.3.4 is made public by the Party claiming confidentiality
              or

                                        9
<PAGE>   13

                     9.3.5 is required to be disclosed by applicable law;
              provided however, that the Party who may be required to disclose
              such information shall notify the other Party in sufficient time
              for the owner of such Confidential Information to file the
              appropriate documents with the court to obtain a protective order
              to enforce the confidentiality requirements of this Agreement;

                     9.3.6 information which the receiving Party can establish
              by competent proof was in its possession at the time of disclosure
              by the disclosing Party and was not acquired, directly or
              indirectly, from the disclosing Party; or

                     9.3.7 information which is received from a third party;
              provided, however, that the receiving Party has no reason to know
              such information was obtained by said third party, directly or
              indirectly, from the other Party under a nondisclosure agreement.

              9.4 Injunctive Relief. The Parties acknowledge that (a) the
       covenants set forth in this Article 9 ("CONFIDENTIALITY") are essential
       elements of this Agreement and that, but for the agreement of the parties
       to comply with such covenants, the Parties would not have entered
       Agreement; (b) neither party will have any adequate remedy at law if the
       other party violates the terms of this Article 9 ("CONFIDENTIALITY"); and
       (c) each party shall have the right, in addition to any other rights it
       may have, to obtain in any court of competent jurisdiction temporary,
       preliminary and permanent injunctive relief to restrain any breach,
       threatened breach, or otherwise to specifically enforce any of the
       covenants in this Article 9 ("CONFIDENTIALITY") if the other party fails
       to perform any of such covenants under this Article 9
       ("CONFIDENTIALITY").

              9.5 Press Release. Within 15 days of the execution of this
       Agreement, MASIMO and ATOM agree to issue a joint press release
       announcing the existence and general content of the Agreement. Except for
       the press release, neither Party shall, without the other's prior written
       approval, disclose any terms of this Agreement. This provision shall not
       be interpreted to bar either Party from making any disclosure required of
       it by law, but if such disclosure includes the terms or provisions of
       this Agreement, then the other Party shall be given the opportunity to
       review the disclosure prior to its release.

       10. PROPRIETARY RIGHTS

              10.1 MASIMO Inventions and Improvements. Any Improvement made by
       ATOM, made jointly by ATOM and MASIMO, or made solely by MASIMO shall be
       the sole property of MASIMO, and MASIMO has the right to apply for
       copyrights, patents (including utility and design patents), or other
       protection for intellectual property rights anywhere in the world under
       its own name and at its own expense. If such invention or Improvement is
       owned by MASIMO and is applicable to the MS Boards for SpO(sub 2)
       Measurement only, SpO(sub 2) Sensors or Accessories, and if ATOM has, and
       continues to meet the Integration Commitment and its obligations under
       Section 3.2 ("Best Efforts"), MASIMO will grant ATOM, without additional
       compensation, a non-exclusive, non-transferable license to use such
       Improvement to incorporate the MS Boards having the Improvement into the
       Licensed Devices, to demonstrate Licensed Devices and to distribute
       Licensed Devices to (i) End User customers and (ii) to ATOM Distributors.

                                       10
<PAGE>   14
              10.2 ATOM Inventions. Subject to the license rights granted to
       ATOM herein, MASIMO retains all right, title and interest in and to
       Masimo Technology and all Improvements. If ATOM makes any Improvement,
       ATOM shall, and hereby does, transfer all right, title and interest in
       and to all such Improvements, whether or not they have application to
       MASIMO. ATOM agrees that it shall promptly notify MASIMO of any
       Improvement and disclose such Improvement in detail. ATOM agrees that it
       shall take all actions and execute all documents, at MASIMO's expense and
       as MASIMO may reasonably request, to effectuate the acknowledgment of
       MASIMO's ownership contained herein and the vesting in MASIMO of complete
       and exclusive ownership of any Improvement. ATOM shall, at MASIMO's
       expense, secure, maintain and defend for MASIMO's benefit all rights
       therein, including the right to submit any patent, copyright or trademark
       application or registration.

       11. WARRANTY

              11.1 MASIMO Warranty

                     11.1.1 MASIMO warrants the MS Boards supplied by MASIMO to
              ATOM under normal use and care for a period of [*] following
              receipt by ATOM to be free from defects in workmanship or material
              and to be in material conformity with MASIMO's specifications.
              Masimo bears all replacement costs if MASIMO reasonably determines
              that the unit must be replaced under this Warranty. Units returned
              to MASIMO for warranty repairs shall be shipped to MASIMO freight
              collect according to MASIMO's instruction. Within thirty (30) days
              of the receipt of MS Boards, MASIMO shall replace or repair such
              units and shall ship them to ATOM's designated return destination
              freight prepaid. The foregoing warranties extend to the MS Boards
              returned by ATOM's customers.

                     11.1.2 MASIMO warrants that for a period of [*] following
             receipt by ATOM, the re-usable probes LNOP-DCl, the PC08 and PC12
             product cables supplied by MASIMO to ATOM will be, under normal use
             and care, free to ATOM from any defect in workmanship or material
             and to be in material conformity with MASIMO's specifications.
             MASIMO bears all replacement costs under this warranty if MASIMO
             reasonably determines that the unit must be replaced under this
             Warranty. Units returned to MASIMO for warranty repairs shall be
             shipped to MASIMO freight collect according to MASIMO's
             instruction. Within thirty (30) days of the receipt of reusable
             probes MASIMO shall replace or repair such units and shall ship
             them to ATOM's designated return destination freight prepaid. The
             foregoing warranties extend to the covered items returned by ATOM's
             customers.

                     11.1.3 MASIMO warrants that for a period of [*] following
              receipt by ATOM, and only on first use, the disposable probes
              (e.g., LNOP-Neo, LNOP-NeoPt, LNOP-Pdt and LNOP-Adt) supplied by
              MASIMO to ATOM hereunder will be, under normal use and care, and
              only upon first use, free from any defect in workmanship or
              material and to be in material conformity with MASIMO's
              specifications therefor. Masimo bears all replacement costs under
              this warranty if MASIMO reasonably determines that the unit must
              be replaced under this Warranty. Units returned to MASIMO for
              warranty repairs shall be shipped to MASIMO freight collect
              according to MASIMO's instruction. Within thirty (30) days of the
              receipt of disposable probes. MASIMO shall replace or repair such
              units and shall ship them to ATOM's designated return destination
              freight prepaid. The foregoing warranties extend to the covered
              items returned by ATOM's customers.

                     11.1.4 This warranty does not extend to any unit that has
              been subject to misuse, neglect or accident; that has been damaged
              by causes external to the unit; that has been used in violation of
              MASIMO's instructions; that has been affixed to any nonstandard
              Accessory attachment; that has been modified, disassembled, or
              reassembled by anyone other than MASIMO.

* Confidential material redacted and filed separately with the Commission.

                                       11
<PAGE>   15

              11.2 Limitation of Liability. EXCEPT FOR THE EXPRESS WARRANTIES
       SET FORTH ABOVE, MASIMO GRANTS NO WARRANTIES, EITHER EXPRESS OR IMPLIED,
       ON THE PRODUCTS, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND
       FITNESS FOR A PARTICULAR PURPOSE, AND THE STATED EXPRESS WARRANTY IS IN
       LIEU OF ALL LIABILITIES OR OBLIGATIONS OF MASIMO FOR DAMAGES, INCLUDING
       BUT NOT LIMITED TO, CONSEQUENTIAL DAMAGES OCCURRING OUT OF OR IN
       CONJUNCTION WITH THE USE OR PERFORMANCE OF SUCH UNIT OF PRODUCTS. IN NO
       EVENT SHALL MASIMO BE RESPONSIBLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL
       DAMAGES, LOSS OF PROFIT, OR EXPENSE SUFFERED BY THE OTHER PARTY IN
       CONNECTION WITH THIS AGREEMENT.

       12. INDEMNIFICATION

              12.1 Notice. Recognizing the objectives of this Agreement, ATOM
       agrees that if it knows of or becomes aware of any patents that may be
       infringed by the manufacture and sale of the Products, it will promptly
       disclose such information to MASIMO.

              12.2 By Masimo--Bodily Injury. MASIMO will defend, indemnify and
       hold ATOM harmless against any and all liability, loss, damages, costs or
       expenses which ATOM may hereafter incur, as a result of any injury,
       illness or death of any person which is caused by any Product, to the
       extent that such injury, illness or death resulted from (i) MASIMO's
       design or manufacture of the Masimo Products or (ii) failure of the
       Masimo Products at the time of shipment to ATOM to materially comply with
       the specification of Exhibit E. MASIMO shall have no liability or
       responsibility of any kind to ATOM under this Section unless ATOM (a)
       promptly notifies MASIMO of such claims, (b) gives MASIMO an adequate
       opportunity to defend, including complete control of such defense, and
       (c) provides reasonable assistance to MASIMO, at MASIMO's expense, in
       connection with the defense and settlement of any such claim. MASIMO
       shall have no liability for settlements made without MASIMO's express
       written consent. Should ATOM desire to have its own counsel participate
       in any such action, the cost of such counsel shall be exclusively ATOM's.

              12.3 By Masimo--Infringement. MASIMO will defend, indemnify and
       hold ATOM harmless against infringement or alleged infringement by
       standard Products furnished under this Agreement, of any patent,
       copyright, trademark, trade secret, or any other proprietary right of any
       third party. MASIMO shall have no liability or responsibility of any kind
       to ATOM under this Section unless ATOM (a) promptly notifies MASIMO of
       such claim, (b) gives MASIMO an adequate opportunity to defend, including
       complete control of such defense, and (c) provides reasonable assistance
       to MASIMO, at MASIMO's expense, in connection with the defense and
       settlement of any such claim including, but not limited to, where
       practical, to modify the Products to make them noninfringing or, where
       practical, to obtain licenses under such intellectual property rights.
       MASIMO shall have no liability for settlements made without its express
       written consent. Should ATOM desire to have its own counsel participate
       in any such action, the cost of such counsel shall be exclusively ATOM's.
       MASIMO may, at its sole discretion, modify the particular Product to make
       it noninfringing, obtain a license to allow the continued use of the
       Product, or discontinue shipment of the Product to ATOM.

              12.4 By ATOM. ATOM will defend, indemnify and hold MASIMO harmless
       against any and all liability, loss, damages, costs or expenses which
       MASIMO may hereafter incur, as a result of any injury, illness or death
       of any person which is caused by any Licensed Device, or as a result of
       infringement or claims of infringement related to the Licensed Devices of
       any patent copyright, trademark, trade secret, or any other proprietary
       right of any third party, to the extent that such injury, illness or
       death or infringement results from (i) any portion of the Licensed
       Devices which is supplied to ATOM by any person other than MASIMO, (ii)
       any combination of the Product with items not furnished by MASIMO, (iii)
       any inadequacy of the labeling or use-manuals for such Licensed Device or
       SpO(sub 2) Sensors (unless such inadequacy consists of inaccurate
       information supplied by MASIMO), (iv) any act or omission to act of ATOM
       or any party other than MASIMO who designed or manufactured any portion
       of the Licensed

                                       12
<PAGE>   16
       Devices, or (v) any modifications to the Products or MASIMO Technology
       made by ATOM, by others or by MASIMO at ATOM's request. ATOM shall have
       no liability or responsibility of any kind to MASIMO under this Section
       unless MASIMO (a) promptly notifies ATOM of such claims, (b) gives ATOM
       an adequate opportunity to defend, including complete control of such
       defense and (c) provides reasonable assistance to ATOM, at ATOM's
       expense, in connection with the defense and settlement of such claim.
       ATOM shall have no liability for settlements made without its express
       written consent. Should MASIMO desire to have its own counsel participate
       in any such action, the cost of such counsel shall be exclusively
       MASIMO's.

              12.5 Notwithstanding the above, MASIMO shall not be liable for any
       infringement of intellectual property rights of third parties or for any
       liability, loss, damages, costs or expenses which ATOM may incur as a
       result of any injury, illness or death resulting from (a) modifications
       to Masimo Technology or the Products made by ATOM, by others, or by
       MASIMO at ATOM's request, (b) electrical/electronics, software/firmware,
       sensors, or product interface not furnished by MASIMO, (c) combination of
       the Products with other apparatus not furnished by MASIMO, (d) use of
       products or components not supplied by MASIMO, (e) use of MASIMO
       technology and Products not permitted by the License granted herein, (f)
       the combination of Masimo Technology with other technology not furnished
       by MASIMO, or (g) for any claims not related directly to Masimo
       Technology or the MASIMO Products, (h) any alterations or modifications
       to the Products which are requested by ATOM.

              12.6 Patent Defense. ATOM agrees that it shall notify MASIMO any
       claim by a third party that such third party believes that MASIMO Patents
       or Patent Rights are invalid. ATOM agrees to promptly notify MASIMO of
       any such claim whether or not such claim is asserted in court by such
       third party.

                     12.6.1 During and after the term of this Agreement, ATOM
              agrees not to challenge the validity of any of the Patent Rights.
              During the term of this Agreement, ATOM agrees to disclose to
              MASIMO any prior art or any other information that is material to
              the validity of any Licensed Patent or to the patentability of any
              pending MASIMO patent application of which ATOM is aware.

       13. REGULATORY COMPLIANCE

              13.1 ATOM shall be solely responsible for identifying and
       obtaining, at its sole cost and expense, all FDA and United States safety
       agency approvals and any other agency or regulatory approvals which are
       required for the development manufacture or sale of the ATOM Products.
       MASIMO will reasonably cooperate with ATOM by providing at no charge to
       ATOM any MASIMO data in its possession that is reasonably required to
       obtain the regulatory approvals, including but not limited to 510(k)
       application materials submitted by MASIMO for its own products that
       incorporate MASIMO SET. Disclosure by ATOM of any such data shall be
       subject to the confidentiality provisions of Article 9
       ("CONFIDENTIALITY").

              13.2 ATOM shall be solely responsible, at its sole cost and
       expenses, (i) for identifying and obtaining any necessary approvals or
       certifications by any non-U.S. governmental, safety or regulatory entity,
       including testing or other procedures, for the sale by ATOM of ATOM
       Products, (ii) for identifying and complying with any safety precautions,
       safety markings, labels or consumer notices required for ATOM Product
       sales in any country other then the United States, and (iii) for
       assessing the appropriateness of the ATOM Product for any particular
       Customer application. MASIMO will cooperate with ATOM by providing any
       data in its possession that is reasonably required to obtain such
       approvals or certifications. Disclosure by ATOM of any such data to any
       third party shall be subject to the confidentiality provisions of Article
       9 ("CONFIDENTIALITY").

                                       13
<PAGE>   17

              13.3 In the event of any recall of any product incorporating
       Products, the parties shall cooperate to the extent reasonably necessary
       to conduct such recall in accordance with ATOM's policies and procedures.

              13.4 Regardless of any disclosure to MASIMO by ATOM of an ultimate
       destination of the Licensed Devices or the Software, ATOM shall not
       transfer or re-export, whether directly or indirectly, the Software, the
       Products or Licensed Devices containing the Software, the related
       documentation, or other related proprietary information to anyone outside
       the U.S. as to which export may be in violation of the United States
       Export Laws or regulations without first obtaining the appropriate
       license from the U.S. Department of Commerce and/or any agency or
       department of the U.S. government, as required.

       14. INCIDENT REPORTING

              14.1 MASIMO Reporting. MASIMO represents and warrants that all
       Products manufactured and sold to ATOM pursuant to this Agreement shall
       be manufactured materially in conformance with all applicable
       requirements of the FDA and in accordance with all United States federal,
       state and local statutes, ordinances and regulations, including, but not
       limited to, the Federal Food, Drug and Cosmetic Act (21 U.S.C. 301 at
       seq.).

              14.2 ATOM Reporting. ATOM represents that in addition to being
       responsible for all regulatory approvals that should any incidents of
       failure of the Products or injury be reported to ATOM that it will
       promptly (i.e., within two (2) business days) notify MASIMO of any such
       field performance problems or deficiencies.

              14.3 Recall. If for any reason MASIMO determines that a recall of
       Product(s) is (are) necessary, MASIMO shall notify ATOM of the
       possibility of Product recall. If MASIMO notifies ATOM that the Product
       must be recalled, ATOM agrees that it shall as expediently as possible
       issue a recall notice to all its customers recalling the Products in
       question. Provided that the Products meet the specifications specified in
       Exhibit E, MASIMO's liability for a Product recall shall be the repair or
       replacement of the part that causes the recall. If the Products fail to
       meet MASIMO's specifications as set forth in Exhibit E, then MASIMO's
       sole responsibility shall be the cost which it incurs for repairing
       and/or replacing the Product in question and for the payment of all
       freight or shipping charges involved with such recall.

       15. TERM AND TERMINATION

              15.1 Term. This Agreement shall become effective as of the
       effective date first set forth above, and shall remain in effect for ten
       (10) years. Thereafter, this Agreement is renewable for one-year periods
       with mutual consent.

              15.2 Termination for Breach. The default by one Party on a
       material obligation of such Party under this Agreement shall entitle the
       other Party to give the Party in default written notice describing such
       default in detail (including all supporting documentation) and requiring
       it to remedy such default. If such default is not fully remedied within
       ninety (90) days after the date of such notice, the notifying Party shall
       be entitled to, in addition to all other remedies available to such
       party, terminate this Agreement by a written notice to the defaulting
       Party.

                                       14
<PAGE>   18

              15.3 Termination on Insolvency. Either Party may terminate this
       Agreement at any time upon or after the filing against the other Party by
       any third party of a petition in bankruptcy or insolvency, or upon or
       after any adjudication that the other Party is insolvent, or upon or
       after the filing by the other Party of any petition or answer seeking
       reorganization, readjustment or arrangement of the business of the other
       Party under any law relating to bankruptcy or insolvency, or upon or
       after the appointment of a receiver for all or substantially all of the
       property of the other Parry of any assignment or attempted assignment for
       the benefit of creditors, or upon or after the institution of any
       proceedings for the liquidation or winding up of the other Party's
       business.

              15.4 Rights Upon Termination. In the event of any valid
       termination of this Agreement under Section 15.2 hereof ("Termination"),
       all of ATOM's rights under this Agreement shall be terminated. The
       termination of ATOM's rights shall include the termination of any rights
       of ATOM to continue to use MASIMO Technology, even though such technology
       may have entered the public domain prior to or subsequent to termination.
       This restraint is agreed to be reasonable as consideration for MASIMO's
       disclosing know-how to ATOM prior to it entering the public domain. No
       termination shall impact MASIMO's rights to collect for accrued royalties
       and payment for ordered Product, or either Party's rights to pursue all
       available remedies in addition to those stated herein.

       16. DISPUTE

              If any dispute or difference shall arise between the parties
       concerning the construction of this Agreement or the rights or
       obligations of either Party, the Parties shall strive to settle the same
       amicably, but if they are unable to do so within ninety (90) days after
       such dispute or difference has arisen and any claim or cause of action
       shall be filed in any court in Orange County, California, U.S.A. MASIMO
       and ATOM each consents to personal jurisdiction in any action brought in
       the United States District Court for the Central District of California
       and to service of process upon it in the manner set forth in Section 17.5
       ("Notice"). In the event that such action should be brought in a state
       court, ATOM and MASIMO each consents to personal jurisdiction in any
       action brought in Municipal Court or Superior Court of the State of
       California in the County of Orange and to service of process upon it in
       the manner set forth in Section 17.5 ("Notice") of this Agreement.

       17. MISCELLANEOUS

              17.1 Nonassignability. Except in connection with the sale of all
       or substantially all of the assets or business of ATOM, ATOM may not
       assign, transfer or sublicense any of the rights or obligations under
       this Agreement, without the prior written consent of MASIMO. For any
       successor or assign of ATOM that is in the pulse oximetry business, ATOM
       shall promptly notify MASIMO of such successor and such successor shall
       acquire ATOM'S interest in this Agreement, unless MASIMO objects to such
       successor within 30 days of notice. MASIMO may freely assign this
       Agreement. This Agreement will inure to the benefit of and bind each
       Party's successors and assigns.

              17.2 Failure to Enforce. The failure of either Party to enforce at
       any time or for any period of time the provisions of this Agreement shall
       not be construed to be a waiver of such provisions or of the right of
       such Parry to enforce each and every such provision.

              17.3 Governing Law. This Agreement shall be deemed to have been
       made in the State of California, United States of America, and shall be
       governed by and construed according to the laws of the State of
       California.

              17.4 Severability. In the event that any of the provisions of this
       Agreement shall be held by a court or other tribunal of competent
       jurisdiction to be unenforceable, such provisions shall be deleted from
       this Agreement and the remaining portions of this Agreement shall remain
       in full force and effect, except where economic equity of both parties
       hereto is materially affected by such unenforceability.

                                       15
<PAGE>   19

              17.5 Notice. Except as either Party may hereafter notify the other
       with respect to itself, the addresses of the Parties for all purposes of
       this Agreement shall be:

             MASIMO:              MASIMO CORPORATION
                                  2852 Kelvin Avenue
                                  Irvine, CA 92614
                                  Attention: Chief Executive Officer

             ATOM:                ATOM MEDICAL CORPORATION
                                  3-18-15, Hongo, Bunkyo-Ku
                                  Tokyo, Japan
                                  Attention: Chief Executive Officer

       All notices and communications pursuant to this Agreement shall be
       addressed as set forth above and shall be delivered to the Party for whom
       intended by hand or by postage prepaid, first class, registered or
       certified mail, return receipt requested. Such notices and
       recommendations shall be deemed to have been given and delivered as of
       the date of receipt.

              17.6 Force Majeure. Neither Party shall be liable to the other
       Party hereto for any loss, injury, delay, damages or other casualties
       suffered or incurred by such other Party due to strikes, riots, storms,
       fires, acts of God, or war or any other cause beyond the reasonable
       control of either Party.

              17.7 Headings. Headings to paragraphs and sections of this
       Agreement are to facilitate reference only, do not form a part of this
       Agreement, and shall not in any way affect the interpretation hereof.

              17.8 Survival From This Agreement. The rights and obligations of
       the parties hereto under Articles 9-14 of this Agreement shall survive
       and continue after any expiration or termination of this Agreement and
       shall bind the Parties and their representatives, successors, heirs and
       assignees.

              17.9 Exhibits. All exhibits to which this Agreement refers are
       hereby incorporated into and made a part of this Agreement.

              17.10 Entire Agreement. This Agreement constitutes the entire
       agreement between ATOM and MASIMO, and there are no other understandings,
       agreements or representations, express or implied, written or oral, not
       specified herein. This Agreement may only be amended by express written
       agreement and signed by authorized representatives of both Parties.

       IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date set forth above.

MASIMO CORPORATION                          ATOM MEDICAL CORPORATION

By: /s/ WILLIAM H. MARKLE                  By: /s/ KAZUO MATSUBARA
   ----------------------                     ----------------------------------
   William H. Markle                          Kazuo Matsubara, President and CEO
   Vice President, Business Development
   and Marketing

                                       16
<PAGE>   20

                                   EXHIBIT D
                               PRICE OF PRODUCTS

Price for MS-1 Boards: MASIMO's transfer price to ATOM for the MS-1 Boards
(including the Masimo MS-3 Boards) delivered in accordance with this Agreement
will be [*] each.

Transfer Price for Sensors and Accessories: MASIMO's transfer prices to ATOM
for the SpO2 Sensors and Accessories delivered in accordance with this
Agreement are as follows:

Product                                              Part #   Price Each
-------                                              ------   ----------

LNOP(R).Adt (Adult Disposable Probe)                  1001        [*]
LNOP(R).Pdt (Pediatric Disposable Probe)              1025        [*]
LNOP(R).Neo (Neonatal Disposable Probe)               1002        [*]
LNOP(R).NeoPt (Pre-Term Neonatal Disposable Probe)    1003        [*]
LNOP(R).DC-1 (Adult Re-usable Probe)                  1004        [*]
PC-08 (8 Ft. Patient Cable)                           1005        [*]
PC-12 (12 Ft. Patient Cable)                          1006        [*]

                                      [*]

* Confidential material redacted and filed separately with the Commission.

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